<PAGE>
[PIONEER LOGO]
Pioneer
Real Estate
Shares
SEMIANNUAL REPORT 6/30/00
<PAGE>
Table of Contents
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 7
Schedule of Investments 10
Financial Statements 12
Notes to Financial Statements 20
Trustees, Officers and Service Providers 25
Retirement Plans from Pioneer 26
Pioneer Family of Mutual Funds 28
</TABLE>
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
LETTER FROM THE CHAIRMAN 6/30/00
--------------------------------------------------------------------------------
Dear Shareowner,
--------------------------------------------------------------------------------
For over a year, the Federal Reserve has been trying to suppress inflationary
pressures and restrain economic growth in the U.S. by raising short-term
interest rates. Because they represent increased costs, higher interest rates
cut into corporate profits.
With the possibility of a slowing economy and an uncertain profit outlook
overhanging the stock market, investors shifted from sector to sector in the
first half of 2000 looking for attractive opportunities. Heightened stock
market volatility was the result. Bonds also lost luster, because existing,
lower-paying issues could not compete with the higher rates that now prevail.
By summer, we began to see evidence that the Fed's tactics were having some
impact, as key statistics hinted at a contraction of the economy's growth rate.
Volatile markets should not sidetrack your plans for dealing with your
essential financial goals. Whatever your long-range needs may be - money for a
child's education, funding a comfortable retirement, or some other cherished
objective - those needs remain in place no matter what the market may do this
week or next month. For that reason, it makes sense to focus your investment
strategy beyond interim ups and downs.
Mid-year is a good time to talk to your financial representative to review what
has been happening and to make sure your strategy is intact. Part of that
discussion should be devoted to your portfolio's diversification. Do you have a
blend of stocks and bonds that you are comfortable with and that can help you
meet your goals? Or is it time to make adjustments? Be sure to include your
IRAs and other retirement vehicles when you evaluate your overall portfolio.
I hope you will take time to read the following discussion about Pioneer Real
Estate Shares. It's an excellent way to understand the Fund's performance
during the past six months and to learn what the manager's expectations are for
the months ahead. If you have questions or would like more information about
your fund, visit our web site at www.pioneerfunds.com.
Respectfully,
/s/ John F. Cogan, Jr.
----------------------
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
PORTFOLIO SUMMARY 6/30/00
--------------------------------------------------------------------------------
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)
[Start Pie Chart]
<TABLE>
<S> <C>
Real Estate Investment Trust Common Stock 95%
Real-Estate Related Common Stocks 5%
</TABLE>
[End Pie Chart]
S e c t o r A l l o c a t i o n
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[Start Pie Chart]
<TABLE>
<S> <C>
Office/Industrial 39%
Apartments 22%
Retail 15%
Hotels 8%
Diversified 8%
Triple-Net 4%
Storage 4%
</TABLE>
[End Pie Chart]
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. Equity Office Properties 6.84% 6. Cousins Properties, Inc. 4.05%
Trust
2. Reckson Associates 4.44 7. The Macerich Co. 4.03
Realty Corp.
3. Starwood Hotels & 4.35 8. AvalonBay Communities, Inc. 3.99
Resorts Trust
4. Trizec Hahn Corp. 4.24 9. Equity Residential Property 3.86
Trust
5. Duke-Weeks Realty Corp. 4.10 10. Essex Property Trust, Inc. 3.82
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/00 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 6/30/00 12/31/99
$13.64 $12.18
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
$0.310 - -
</TABLE>
I n v e s t m e n t R e t u r n s
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer 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.
Average Annual Total Returns
(As of June 30, 2000)
<TABLE>
<CAPTION>
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund 6.77% 5.83%
(10/25/93)
5 Years 9.12 7.83
1 Year 4.20 -1.78
</TABLE>
* Reflects deduction of the maximum
5.75% sales charge at the beginning
of the period and assumes reinvest-
ment of distributions at net asset
value.
[Start Mountain Chart]
Growth of $10,000+
<TABLE>
<CAPTION>
Pioneer Wilshire
Real Estate S&P 500 Real Estate
Shares* Index Securities Index
<S> <C> <C> <C>
10/93 9425 10000 10000
9184 9701 9884
9206 10175 9709
6/95 9558 12225 10170
10321 13985 11034
10858 15394 12046
14083 17186 15103
14839 20725 16088
12/97 16863 22914 18093
15773 26965 17133
13528 29449 14941
14191 33084 15954
12892 35632 14464
6/00 14787 35472 16665
</TABLE>
[End Mountain Chart]
+ 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 113 real estate securities. The Index is 93% REITs (equity and
hybrid) and 7% real estate operating companies, and its returns are calculated
monthly. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees or expenses. You cannot invest directly in
the Indexes.
Real estate investments may be subject to special risks, including risks
related to general and local economic conditions, and risks related to an
individual property.
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 6/30/00 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 6/30/00 12/31/99
$13.56 $12.11
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
$0.270 - -
</TABLE>
I n v e s t m e n t R e t u r n s
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Real Estate Shares, compared to the growth of the Standard & Poor's
(S&P) 500 Index and the Wilshire Real Estate Securities Index.
Average Annual Total Returns
(As of June 30, 2000)
<TABLE>
<CAPTION>
Period If Held If Redeemed*
<S> <C> <C>
Life-of-Fund 7.55% 7.20%
(1/31/96)
1 Year 3.51 -0.44
</TABLE>
* 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.
[Start Mountain Chart]
<TABLE>
<CAPTION>
Growth of $10,000
Pioneer Wilshire
Real Estate S&P 500 Real Estate
Shares* Index Securities Index
<S> <C> <C> <C>
1/96 10000 10000 10000
10108 10203 10281
10427 10660 10768
11555 10987 11404
13481 11902 13501
13628 12223 13749
6/97 14156 14352 14381
16260 15426 16198
16023 15868 16174
15872 18076 16052
14945 18673 15315
12844 16818 13484
12/98 12761 20393 13356
11903 21407 12893
13329 22910 14261
12174 21482 12900
12065 24675 12930
12338 25236 13293
6/00 13597 24565 14897
</TABLE>
[End Mountain Chart]
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 113 real estate
securities. The Index is 93% REITs (equity and hybrid) and 7% real estate
operating companies, and its returns are calculated monthly. Index returns
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees or expenses. You cannot invest directly in the Indexes.
Real estate investments may be subject to special risks, including risks
related to general and local economic conditions, and risks related to an
individual property.
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 6/30/00 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 6/30/00 12/31/99
$13.58 $12.12
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
$0.270 - -
</TABLE>
I n v e s t m e n t R e t u r n s
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Real Estate Shares, compared to the growth of the Standard & Poor's
(S&P) 500 Index and the Wilshire Real Estate Securities Index.
Average Annual Total Returns
(As of June 30, 2000)
<TABLE>
<CAPTION>
Period If Held If Redeemed*
<S> <C> <C>
Life-of-Fund 7.57% 7.57%
(1/31/96)
1 Year 3.70 3.70
</TABLE>
* Assumes reinvestment of distributions.
The 1% contingent deferred sales charge
(CDSC) applies to redemptions made
within one year of purchase.
[Start Mountain Chart]
<TABLE>
<CAPTION>
Growth of $10,000
Pioneer Wilshire
Real Estate S&P 500 Real Estate
Shares* Index Securities Index
<S> <C> <C> <C>
1/96 10000 10000 10000
10108 10203 10281
10418 10660 10768
11545 10987 11404
13476 11902 13501
13613 12223 13749
6/97 14150 14352 14381
16252 15426 16198
16019 15868 16174
15867 18076 16052
14941 18673 15315
12840 16818 13484
12/98 12754 20393 13356
11897 21407 12893
13312 22910 14261
12158 21482 12900
12064 24675 12930
12326 25236 13293
6/00 13804 24565 14897
</TABLE>
[End Mountain Chart]
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 113 real estate
securities. The Index is 93% REITs (equity and hybrid) and 7% real estate
operating companies, and its returns are calculated monthly. Index returns
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees or expenses. You cannot invest directly in the Indexes.
Real estate investments may be subject to special risks, including risks
related to general and local economic conditions, and risks related to an
individual property.
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
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/00 CLASS Y 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 6/30/00 12/31/99
$13.62 $12.16
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
$0.350 - -
</TABLE>
I n v e s t m e n t R e t u r n s
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Real Estate Shares, compared to the growth of the Standard & Poor's
(S&P) 500 Index and the Wilshire Real Estate Securities Index.
Average Annual Total Returns*
(As of June 30, 2000)
<TABLE>
<CAPTION>
Period If Held If Redeemed
<S> <C> <C>
Life-of-Fund -4.79% -4.79%
(4/9/98)
1 Year 4.96 4.96
</TABLE>
* Assumes reinvestment of distributions.
[Start Mountain Chart]
<TABLE>
<CAPTION>
Growth of $10,000+
Pioneer Wilshire
Real Estate S&P 500 Real Estate
Shares* Index Securities Index
<S> <C> <C> <C>
4/98 10000 10000 10000
9720 10237 9852
8383 9220 8673
12/98 8361 11180 8591
7828 11736 8293
8791 12560 9173
9/99 8059 11777 8298
8018 13527 8317
8219 13835 8550
6/00 9227 13467 9582
</TABLE>
[End Mountain Chart]
+ Index comparison begins 4/30/98. 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 113 real estate securities. The Index is 93% REITs (equity and
hybrid) and 7% real estate operating companies, and its returns are calculated
monthly. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees or expenses. You cannot invest directly in
the Indexes.
Real estate investments may be subject to special risks, including risks
related to general and local economic conditions, and risks related to an
individual property.
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.
6
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
As the euphoria over technology and telecommunications stocks waned this
spring, a tangible shift in investor psychology took place. The stock market's
steep retreat and increased volatility humbled performance expectations, which
in turn renewed an appreciation for the basic principles of investing. Amidst
the correction, many investors sought shelter in bricks and mortar. Undervalued
for some time, real estate investment trusts (REITs) rallied dramatically
during the first half of 2000. In the following interview, portfolio manager
Jeff Caira, who took over management of the Fund on July 17, 2000, discusses
the sector's rebound and prospects going forward.
Q: What sparked the rally in real estate investments?
A. Investors have shifted into a decidedly more value-conscious and risk-averse
mood in recent months. Recognizing that real estate offers an effective way
to diversify a portfolio, investors moved assets into undervalued REITs --
pushing prices higher. Positive trends -- low vacancy rates, rising rents
and higher property prices and increasing dividend streams, as well as the
real estate sector's tendency not to move in step with other asset classes
-- is enhancing its appeal.
For the six months ended June 30, 2000, the Fund's Class A, B and C shares
generated total returns of 14.70%, 14.35% and 14.42%, respectively, at net
asset value -- surpassing more than half of the real estate funds tracked by
Lipper, Inc. (Lipper is an independent firm that measures mutual fund
performance.) The average return of 148 real estate funds followed for the
six-month period was 12.70%. The NAREIT Equity REIT Index and the Wilshire
Real Estate Securities Index rose 12.66% and 15.21%, respectively.
Q: How important is geography in your evaluation process?
A. We favor real estate companies with smart management teams and high quality
assets in markets where there are barriers-to-entry for new supply. For
instance, REIT holdings in the portfolio with properties located in the
Northeastern United States, Manhattan or on the West Coast were big
winners. Fund holdings Essex Property Trust and Boston Properties exemplify
this strategy.
7
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00 (continued)
--------------------------------------------------------------------------------
Q: Did the Fund's sector emphasis on office/industrial and apartments prove
rewarding?
A: Yes. Office/industrial REITs enjoyed strong growth, particularly in large
metropolitan areas, and this performance is setting a positive tone for the
real estate sector in general. Mission West Properties and Spieker
Properties, the portfolio's second and third best performers for the
six-month period, have a solid presence in Silicon Valley. As current leases
expire, these REITs are negotiating new leases, often at dramatically higher
rent levels. This rollover of below-market leases at today's considerably
higher market rates is locking in attractive rents for years to come.
The Fund's investments in apartments likewise proved beneficial. Apartment
REITs can quickly pass on inflationary pressure to renters, since they
typically lease by the year and demand for apartments has been strong.
Q: Is the strong economy benefiting hotel and retail REITs?
A: Absolutely. After months of underperformance, the Fund's hotel REITs
delivered strong results. In fact, Starwood Hotels & Resorts was the Fund's
best performer for the six months ended June 30. The vibrant economy is
contributing to increased bookings for conventions and conferences. As a
result, first and second quarter increases in revenue per room, a common
measure of hotel profitability, exceeded Wall Street expectations. The
concern about the supply of new hotels being developed remains, but, as
supply growth appears to be moderating, this may allow strong demand to bring
the sector back on to firmer ground.
Retail REITs, another beneficiary of strong economic growth, also posted
attractive returns for the six months. This sector has not succumbed to the
threat of retail electronic commerce (also known as e-tailing or
e-commerce), as many had predicted. It was assumed that e-tailers enjoyed a
critical cost advantage over traditional retailers, since they didn't need
to hire large work forces or build stores. Ultimately, however, the goods
must be delivered, and that can be expensive in a period of rising wages
and fuel prices. We will be watching this sector closely, however, as
future growth will depend heavily on the credit quality of tenants and
consumers' willingness to
8
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
spend. Here too, the supply of new retail properties is an area that we
will continue to monitor since oversupply can negatively impact rent growth
at existing properties.
Q: What is your outlook?
A: For several years in the mid-1990s, REITS drove up the prices of the nation's
properties from office buildings to apartment complexes in bidding wars and
paid for their new purchases with their own rising share prices. Fears of
overvaluation and recession as well as a global credit crunch led investors
to flee the REIT market in 1997 -- sparking a retreat in REIT prices for much
of 1998 and 1999 and ultimately ushering in the current, more restrained
industry. Today, the REIT industry is applying the knowledge and discipline
it gained from the difficult capital markets of 1998 and 1999. As a result,
it offers investors a targeted investment with relatively high levels of
current income and the potential for growth.
9
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Real Estate Investment Trusts - 94.8%
129,800 Archstone Communities Trust $ 2,733,913
70,600 AvalonBay Communities, Inc. 2,947,550
56,500 Boston Properties, Inc. 2,182,313
78,800 Brandywine Realty Trust 1,507,050
75,700 Burnham Pacific Property, Inc. 520,438
63,100 Camden Property Trust 1,853,563
13,300 Centerpoint Properties Corp. 541,975
49,200 Charles E. Smith Residential Realty, Inc. 1,869,600
7,000 Corporate Office Properties Trust 64,313
77,600 Cousins Properties, Inc. 2,987,600
82,300 Developers Diversified Realty Corp. 1,229,356
135,400 Duke-Weeks Realty Corp. 3,029,575
40,200 Entertainment Properties Trust 555,263
183,182 Equity Office Properties Trust 5,048,954
61,900 Equity Residential Property Trust 2,847,400
67,100 Essex Property Trust, Inc. 2,818,200
74,400 Franchise Finance Corporation of America 1,711,200
73,800 Gables Residential Trust 1,900,350
25,500 General Growth Properties, Inc. 809,625
77,300 Home Properties of New York, Inc. 2,319,000
164,350 Host Marriott Corp. 1,540,781
10,100 Kimco Realty Corp. 414,100
59,000 Liberty Property Trust 1,530,313
134,700 The Macerich Co. 2,971,819
46,100 Manufactured Home Communities Inc. 1,103,519
96,200 Mission West Properties, Inc. 1,010,100
40,000 Pacific Gulf Properties, Inc. 1,002,500
48,200 Parkway Properties, Inc. 1,470,100
22,500 Philips International Realty Corp. 390,938
110,300 Prentiss Properties Trust 2,647,200
95,300 ProLogis Trust 2,031,081
109,227 Public Storage, Inc. 2,545,422
137,900 Reckson Associates Realty Corp. 3,275,125
65,600 Simon Property Group, Inc. 1,455,500
39,400 Spieker Properties, Inc. 1,812,400
98,700 Starwood Hotels & Resorts Trust 3,213,916
61,000 Vornado Realty Trust 2,119,750
-----------
Total Real Estate Investment Trusts $70,011,802
-----------
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Real Estate Services - 5.2%
45,400 Catellus Development Corp.* $ 681,000
175,000 Trizec Hahn Corp. 3,128,125
-----------
Total Real Estate Services $ 3,809,125
-----------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $66,295,552) (a) $73,820,927
===========
</TABLE>
* Non-income producing security.
(a) At June 30, 2000, the net unrealized gain on investments based on cost for
federal income tax purposes of $67,529,648.
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $9,369,584
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (3,078,305)
----------
Net unrealized gain $6,291,279
==========
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended June 30, 2000, aggregated $7,636,767 and $19,735,839,
respectively.
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
BALANCE SHEET 6/30/00 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (cost $66,295,552) $73,820,927
Cash 406,021
Receivables -
Investment securities sold 615,099
Fund shares sold 234,415
Dividends and interest 543,082
-----------
Total assets $75,619,544
-----------
LIABILITIES:
Payables -
Fund shares repurchased $ 189,353
Due to affiliates 165,653
Accrued expenses 112,439
Other 307
-----------
Total liabilities $ 467,752
-----------
NET ASSETS:
Paid-in capital $85,412,137
Accumulated net investment loss (4,868)
Accumulated net realized loss on investments (17,780,852)
Net unrealized gain on investments 7,525,375
-----------
Total net assets $75,151,792
-----------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $38,237,166/2,802,456 shares) $ 13.64
===========
Class B (based on $29,723,771/2,191,481 shares) $ 13.56
===========
Class C (based on $6,285,696/462,889 shares) $ 13.58
===========
Class Y (based on $905,159/66,445 shares) $ 13.62
===========
MAXIMUM OFFERING PRICE:
Class A $ 14.47
===========
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
--------------------------------------------------------------------------------
For the Six Months Ended 6/30/00
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Dividends (net of foreign taxes withheld of $5,093) $2,437,275
Interest 27,743
----------
Total investment income $2,465,018
----------
EXPENSES:
Management fees $ 299,039
Transfer agent fees
Class A 111,071
Class B 69,227
Class C 10,205
Class Y 128
Distribution fees
Class A 41,263
Class B 150,431
Class C 30,823
Administrative fees 15,707
Custodian fees 10,524
Registration fees 9,550
Professional fees 23,019
Printing 35,571
Fees and expenses of nonaffiliated trustees 9,318
Miscellaneous 4,637
----------
Total expenses $ 820,513
Less fees paid indirectly (6,681)
----------
Net expenses $ 813,832
----------
Net investment income $1,651,186
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $ (741,254)
Change in net unrealized loss on investments 9,052,297
----------
Net gain on investments $8,311,043
----------
Net increase in net assets resulting from operations $9,962,229
==========
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
For the Six Months Ended 6/30/00 and the Year Ended 12/31/99
<TABLE>
<CAPTION>
Six Months Ended
6/30/00 Year Ended
FROM OPERATIONS: (unaudited)
12/31/99
<S> <C> <C>
Net investment income $ 1,651,186 $ 4,432,587
Net realized loss on investments (741,254) (17,501,018)
Change in net unrealized gain (loss) on investments 9,052,297 6,993,707
------------ ------------
Net increase (decrease) in net assets resulting
from operations $ 9,962,229 $ (6,074,724)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.31 and $0.60 per share, respectively) $ (891,489) $ (2,343,384)
Class B ($0.27 and $0.49 per share, respectively) (615,194) (1,575,423)
Class C ($0.27 and $0.48 per share, respectively) (127,589) (318,887)
Class Y ($0.35 and $0.70 per share, respectively) (21,782) (54,605)
Tax return of capital:
Class A ($0.00 and $0.05 per share, respectively) -- (182,770)
Class B ($0.00 and $0.05 per share, respectively) -- (145,798)
Class C ($0.00 and $0.05 per share, respectively) -- (30,935)
Class Y ($0.00 ans $0.05 per share, respectively) -- (3,998)
------------ ------------
Total distributions to shareholders $ (1,656,054) $ (4,655,800)
------------ ------------
FROM FUND SHARE TRANSACTION
Net proceeds from sale of shares $ 6,203,551 $ 16,875,294
Reinvestment of distributions 1,291,758 3,580,646
Cost of shares repurchased (21,304,921) (66,192,745)
------------ ------------
Net decrease in net assets resulting from fund
share transactions $(13,809,612) $(45,736,805)
------------ ------------
Net decrease in net assets $ (5,503,437) $(56,467,329)
NET ASSETS:
Beginning of period 80,655,229 137,122,558
------------ ------------
End of period (including accumulated net investment loss
of $4,868 and $0, respectively) $ 75,151,792 $ 80,655,229
============ ============
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
'00 Shares '00 Amount
(unaudited) (unaudited) '99 Shares '99 Amount
<S> <C> <C> <C> <C>
CLASS A
Shares sold 211,203 $ 2,695,930 623,783 $ 8,422,575
Reinvestment of distributions 60,790 780,555 173,426 2,171,157
Less shares repurchased (762,870) (9,594,727) (2,526,596) (32,864,849)
-------- ----------- ---------- ------------
Net decrease (490,877) $(6,118,242) (1,729,387) $(22,271,117)
======== =========== ========== ============
CLASS B
Shares sold 219,890 $ 2,781,572 527,672 $ 6,976,256
Reinvestment of distributions 31,234 398,671 89,725 1,114,430
Less shares repurchased (789,215) (9,814,878) (2,027,763) (25,979,704)
-------- ----------- ---------- ------------
Net decrease (538,091) $(6,634,635) (1,410,366) $(17,889,018)
======== =========== ========== ============
CLASS C
Shares sold 43,653 $ 545,853 94,553 $ 1,241,257
Reinvestment of distributions 7,105 90,777 19,047 236,429
Less shares repurchased (129,771) (1,602,443) (523,887) (6,726,348)
-------- ----------- ---------- ------------
Net decrease (79,013) $ (965,813) (410,287) $ (5,248,662)
======== =========== ========== ============
CLASS Y
Shares sold 13,989 $ 180,196 17,906 $ 235,206
Reinvestment of distributions 1,686 21,755 4,710 58,630
Less shares repurchased (23,882) (292,873) (49,137) (621,844)
-------- ----------- ---------- ------------
Net decrease (8,207) $ (90,922) (26,521) $ (328,008)
======== =========== ========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00 Year Ended Year Ended Year Ended Year Ended Year Ended
(unaudited) 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 12.18 $ 13.46 $ 17.81 $ 15.52 $ 12.02 $ 11.38
------- ------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.32 $ 0.65 $ 0.56 $ 0.41 $ 0.42 $ 0.32
Net realized and unrealized gain (loss) on investments 1.45 (1.28) (4.05) 2.61 3.82 1.01
------- ------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 1.77 $ (0.63) $ (3.49) $ 3.02 $ 4.24 $ 1.33
Distributions to shareholders:
Net investment income (0.31) (0.60) (0.51) (0.36) (0.40) (0.33)
In excess of net investment income -- -- -- -- -- (0.02)
Net realized gain -- -- (0.27) (0.23) (0.34) --
Tax return of capital -- (0.05) (0.08) (0.14) -- (0.34)
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ 1.46 $ (1.28) $ (4.35) $ 2.29 $ 3.50 $ 0.64
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 13.64 $ 12.18 $ 13.46 $ 17.81 $ 15.52 $ 12.02
======= ======= ======= ======= ======= =======
Total return* 14.70% (4.70)% (19.77)% 19.74% 36.45% 12.11%
Ratio of net expenses to average net assets+ 1.89%** 1.69% 1.69% 1.65% 1.71% 1.77%
Ratio of net investment income to average net assets+ 4.72%** 4.45% 3.29% 2.51% 3.52% 2.73%
Portfolio turnover rate 21%** 39% 11% 28% 47% 10%
Net assets, end of period (in thousands) $38,237 $40,113 $67,619 $115,772 $72,572 $27,491
Ratios assuming no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly:
Net expenses 1.89%** 1.83% 1.69% 1.65% 2.09% 2.59%
Net investment income 4.72%** 4.31% 3.29% 2.51% 3.14% 1.91%
Ratios assuming waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 1.87%** 1.67% 1.67% 1.63% 1.69% 1.75%
Net investment income 4.74%** 4.47% 3.31% 2.53% 3.54% 2.75%
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00 Year Ended Year Ended Year Ended 1/31/96 to
CLASS B (unaudited) 12/31/99 12/31/98 12/31/97 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.11 $ 13.38 $ 17.70 $ 15.45 $ 12.09
------- ------- -------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.25 $ 0.52 $ 0.45 $ 0.28 $ 0.35
Net realized and unrealized gain (loss) on investments 1.47 (1.25) (4.03) 2.60 3.73
------- ------- -------- ------- -------
Net increase (decrease) from investment operations $ 1.72 $ (0.73) $ (3.58) $ 2.88 $ 4.08
Distributions to shareholders:
Net investment income (0.27) (0.49) (0.42) (0.29) (0.35)
In excess of net investment income -- -- -- -- (0.03)
Net realized gain -- -- (0.27) (0.23) (0.34)
Tax return of capital -- (0.05) (0.05) (0.11) --
------- ------- -------- ------- -------
Net increase (decrease) in net asset value $ 1.45 $ (1.27) $ (4.32) $ 2.25 $ 3.36
------- ------- -------- ------- -------
Net asset value, end of period $ 13.56 $ 12.11 $ 13.38 $ 17.70 $ 15.45
======= ======= ======== ======= =======
Total return* 14.35% (5.45)% (20.36)% 18.85% 34.81%
Ratio of net expenses to average net assets+ 2.55%** 2.45% 2.45% 2.39% 2.33%**
Ratio of net investment income to average net assets+ 4.02%** 3.75% 2.77% 1.82% 3.73%**
Portfolio turnover rate 21%** 39% 11% 28% 47%
Net assets, end of period (in thousands) $29,724 $33,069 $ 55,407 $82,695 $26,379
Ratios assuming no waiver of management fees by PIM and
no reduction for fees paid indirectly:
Net expenses 2.55%** 2.59% 2.45% 2.39% 2.45%**
Net investment income 4.02%** 3.61% 2.77% 1.82% 3.61%**
Ratios assuming waiver of management fees by PIM and
reduction for fees paid indirectly:
Net expenses 2.54** 2.44% 2.44% 2.36% 2.30%**
Net investment income 4.03%** 3.76% 2.78% 1.85% 3.76%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00 Year Ended Year Ended Year Ended 1/31/96 to
CLASS C (unaudited) 12/31/99 12/31/98 12/31/97 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.12 $ 13.37 $ 17.70 $ 15.46 $ 12.09
------- ------- -------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.27 $ 0.52 $ 0.45 $ 0.29 $ 0.34
Net realized and unrealized gain (loss) on investments 1.46 (1.24) (4.04) 2.59 3.73
------- ------- -------- ------- -------
Net increase (decrease) from investment operations $ 1.73 $ (0.72) $ (3.59) $ 2.88 $ 4.07
Distributions to shareholders:
Net investment income (0.27) (0.48) (0.42) (0.30) (0.34)
In excess of net investment income -- -- -- -- (0.02)
Net realized gain -- -- (0.27) (0.23) (0.34)
Tax return of capital -- (0.05) (0.05) (0.11) --
------- ------- -------- ------- -------
Net increase (decrease) in net asset value $ 1.46 $ (1.25) $ (4.33) $ 2.24 $ 3.37
------- ------- -------- ------- -------
Net asset value, end of period $ 13.58 $ 12.12 $ 13.37 $ 17.70 $ 15.46
======= ======= ======== ======= =======
Total return* 14.42% (5.41)% (20.38)% 18.86% 34.76%
Ratio of net expenses to average net assets+ 2.42%** 2.52% 2.41% 2.35% 2.35%**
Ratio of net investment income to average net assets+ 4.19%** 3.63% 2.67% 1.88% 3.66%**
Portfolio turnover rate 21%** 39% 11% 28% 47%
Net assets, end of period (in thousands) $ 6,286 $ 6,566 $ 12,735 $24,227 $ 6,699
Ratios assuming no waiver of management fees by PIM and
no reduction for fees paid indirectly:
Net expenses 2.42%** 2.66% 2.41% 2.35% 2.48%**
Net investment income 4.19%** 3.49% 2.67% 1.88% 3.53%**
Ratios assuming waiver of management fees by PIM and
reduction for fees paid indirectly:
Net expenses 2.41%** 2.51% 2.40% 2.32% 2.32%**
Net investment income 4.20%** 3.64% 2.68% 1.91% 3.69%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00 Year Ended 4/9/98 to
(unaudited) 12/31/99 12/31/98
<S> <C> <C> <C>
CLASS Y
Net asset value, beginning of period $ 12.16 $ 13.46 $ 17.52
------- ------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.35 $ 0.70 $ 0.47
Net realized and unrealized gain (loss)
on investments 1.46 (1.25) (3.76)
------- ------- ---------
Net increase (decrease) from investment
operations $ 1.81 $ (0.55) $ (3.29)
Distributions to shareholders:
Net investment income (0.35) (0.70) (0.44)
Net realized gain -- -- (0.27)
Tax return of capital -- (0.05) (0.06)
-------- ------- ---------
Net increase (decrease) in net asset value $ 1.46 $ (1.30) $ (4.06)
-------- ------- ---------
Net asset value, end of period $ 13.62 $ 12.16 $ 13.46
-------- ------- ---------
Total return* 15.08% (4.10)% (18.78)%
Ratio of net expenses to average net assets+ 1.12%** 1.10% 1.21%**
Ratio of net investment income to average
net assets+ 5.51%** 5.14% 4.31%**
Portfolio turnover rate 21%** 39% 11%
Net assets, end of period (in thousands) $ 905 $ 907 $ 1,362
Ratios assuming no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 1.12% 1.24% 1.21%**
Net investment income 5.51% 5.00% 4.31%**
Ratios assuming waiver of management fees by
PIM and reduction for fees paid indirectly:
Net expenses 1.11% 1.10% 1.21%**
Net investment income 5.52% 5.14% 4.31%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/00 (unaudited)
--------------------------------------------------------------------------------
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 four classes of shares - Class A, Class B, Class C and Class Y
shares. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has equal rights to voting, redemptions, dividends
and liquidation, except that the level of transfer agent and distribution fees
may differ among classes. Class A, Class B and Class C shareholders have
exclusive voting rights with respect to the distribution plan for each class.
There is no distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with generally
accepted accounting principles that require the management of the Fund to,
among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts
of revenues and expenses during the reporting periods. Actual results could
differ from those estimates. The following is a summary of significant
accounting policies consistently followed by the Fund, which are in conformity
with those generally accepted in the investment company industry.
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value is
computed once daily, on each day the New York Stock Exchange is open, as of
the close of regular trading on the Exchange. In computing the net asset
value, securities are valued at the last sale price on the principal exchange
where they are traded. Securities that have not traded on the date of
valuation, or securities for which sale prices are not generally reported,
are valued at the mean between the last bid and asked prices. Securities for
which market quotations are not readily available are valued at their fair
values as determined by, or under the direction of, the Board of Trustees.
Dividend income is recorded on the ex-dividend date and interest income,
including interest on income bearing cash accounts, is recorded on the
accrual basis. Temporary cash investments are valued at amortized cost.
20
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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 borrowers or
tenants. REITs depend generally on their ability to generate cash flow to
make distributions to shareowners, 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.
21
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/00 (unaudited) (cont'd)
--------------------------------------------------------------------------------
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and an indirect subsidiary of The Pioneer Group, Inc. (PGI), earned $2,464 in
underwriting commissions on the sale of fund shares during the six months
ended June 30, 2000.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset values
attributable to Class A, Class B and Class C shares of the Fund,
respectively. Class Y shares are not subject to a distribution plan.
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 all classes of shares based on their
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, Class C and Class Y can bear different transfer
agent and distribution fees.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), the Fund's investment adviser,
manages the Fund's portfolio and is a wholly owned subsidiary of PGI. Management
fees are calculated daily at the annual rate of 0.80% of the Fund's average
daily net assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At June 30, 2000, $53,503 was payable to PIM
related to management fees, administrative 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
22
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
in due to affiliates is $75,179 in transfer agent fees payable to PSC at June
30, 2000.
4. Distribution Plans
The Fund adopted Plans of Distribution with respect to Class A, Class B and
Class C 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 average daily net assets
attributable to Class A shares in reimbursement of its actual expenditures to
finance activities primarily intended to result in the sale of Class A shares.
Pursuant to the Class B Plan 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 $36,971 in distribution fees payable to PFD at June 30,
2000.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 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 4.00%, based
on the lower of cost or market value of shares being redeemed. Redemptions of
Class C shares within one year of purchase are subject to a CDSC of 1.00%.
Proceeds from the CDSCs are paid to PFD. For the six months ended June 30,
2000, CDSCs in the amount of $168,647 were paid to PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the six months ended June 30, 2000,
the Fund's expenses were reduced by $6,681 under such arrangements.
6. Line of Credit Facility
The Fund along with certain other funds in the Pioneer Family of Funds (the
Funds) collectively participate in a $50 million committed, unsecured revolving
line of credit facility. Borrowings are used solely for temporary or emergency
purposes. The Fund may borrow up to the lesser of $50 million or the limits set
by its prospectus for borrowings. Interest on collective borrowings of up to
$25 million is payable at the Federal Funds Rate plus
23
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/00 (unaudited) (cont'd)
--------------------------------------------------------------------------------
3/8% on an annualized basis, or at the Federal Funds Rate plus 1/2% if the
borrowing exceeds $25 million at any one time. The Funds pay an annual
commitment fee for this facility. The commitment fee is allocated among such
Funds based on their respective borrowing limits. For the six months ended June
30, 2000, the Fund had no borrowings under this agreement.
24
<PAGE>
Pioneer Real Estate Shares
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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. Eric W. Reckard, Treasurer
Margaret B.W. Graham Joseph P. Barri, Secretary
Marguerite A. Piret
David D. Tripple
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
25
<PAGE>
Pioneer Real Estate Shares
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RETIREMENT PLANS FROM PIONEER
--------------------------------------------------------------------------------
Pioneer has a long history of helping people work toward their retirement
goals, offering plans suited to the individual investor and businesses of all
sizes. For more information on Pioneer retirement plans, contact your
investment professional, or call Pioneer at 1-800-622-0176.
Individual Retirement Account (IRA)
An IRA is a tax-favored account that allows anyone under age 70 1/2 with earned
income to contribute up to $2,000 annually. Spouses may contribute up to $2,000
annually into a separate IRA, for a total of $4,000 per year for a married
couple. Earnings are tax-deferred, and contributions may be tax-deductible.
Roth IRA
The Roth IRA came about as part of the Taxpayer Relief Act of 1997 and became
available to investors in 1998. Contributions, up to $2,000 a year, are not
tax-deductible, but earnings are tax-free for qualified withdrawals.
401(k) Plan
The traditional 401(k) plan allows employees to make pre-tax contributions
through payroll deduction, up to $10,500 per year or 25% of pay, whichever is
less. Employers may contribute.
SIMPLE (Savings Incentive Match PLan for Employees)--IRA Plan
Businesses with 100 or fewer eligible employees can establish the plan; it
resembles the traditional 401(k), but has no administration costs. Employees
can make pre-tax contributions of up to $6,000 per year, and an employer
contribution is required.
403(b) Plan
Also known as a Tax-Sheltered Account (TSA), a 403(b) plan is available only to
employees of public schools, not-for-profit hospitals and certain other tax-
exempt organizations. A 403(b) plan lets employees set aside a portion of their
salary, before taxes, through payroll deduction.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
26
<PAGE>
Pioneer Real Estate Shares
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Simplified Employee Pension Plan (SEP)
SEPs let self-employed people and small-business owners make tax-deductible
contributions of up to 15% of their income. Generally, employers must
contribute the same percentage of pay for themselves and any eligible
employees; contributions are made directly to employees' IRAs. SEPs are easy to
administer and can be an especially good choice for firms with few or no
employees.
Profit Sharing Plan
Profit sharing plans offer companies considerable flexibility, allowing them to
decide each year whether a contribution will be made and how much, up to 15% of
each participant's pay. These plans can include provisions for loans and
vesting schedules.
Age-Weighted Profit Sharing Plan
Like traditional profit sharing plans, employer contributions are flexible, but
age-weighted plans allocate contributions based on both age and salary.
Age-weighted plans are designed for employers who want to maximize their own
contributions while keeping contributions to employees affordable.
Money Purchase Pension Plan (MPP)
Money purchase plans are similar to profit sharing plans, but allow for higher
annual contributions--up to 25% of pay. MPPs aren't as flexible as profit
sharing plans; a fixed percentage of pay must be contributed each year,
determined when the plan is established. Businesses often set up both MPPs and
profit sharing plans.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
27
<PAGE>
--------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
--------------------------------------------------------------------------------
For information about any Pioneer mutual fund, please contact your investment
professional, or call Pioneer at 1-800-225-6292. Ask for a free fund
information kit, which includes a fund prospectus. Please read the prospectus
carefully before you invest or send money.
Growth Funds Income Funds
United States Taxable
Pioneer Growth Shares Pioneer America Income Trust
Pioneer Micro-Cap Fund Pioneer Bond Fund
Pioneer Mid-Cap Fund Pioneer High Yield Fund
Pioneer Mid-Cap Value Fund Pioneer Limited Maturity Bond Fund
Pioneer Science & Technology Fund Pioneer Strategic Income Fund
Pioneer Small Company Fund
Pioneer Tax-Managed Fund
Tax-Free
International/Global Pioneer Tax-Free Income Fund
Pioneer Emerging Markets Fund
Pioneer Europe Fund Money Market Fund
Pioneer Indo-Asia Fund
Pioneer International Growth Fund Pioneer Cash Reserves Fund*
Pioneer World Equity Fund
Growth and Income Funds
Pioneer Fund
Pioneer II
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Real Estate Shares
* An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1 per share, it is possible to
lose money by investing in the Fund.
28
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This page is for your notes.
29
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HOW TO CONTACT PIONEER
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We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
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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
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This report must be preceded or accompanied by a current
Fund prospectus.
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[PIONEER LOGO] Pioneer Investment Management, Inc.
60 State Street 8640-00-0800
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com (RECYCLE LOGO) Printed on Recycled Paper
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