PIONEER VISION [top of graphic]
VARIABLE ANNUITY
PIONEER VARIABLE CONTRACTS TRUST [Pioneer logo]
INTERNATIONAL GROWTH PORTFOLIO
CAPITAL GROWTH PORTFOLIO
REAL ESTATE GROWTH PORTFOLIO
EQUITY-INCOME PORTFOLIO
BALANCED PORTFOLIO
AMERICA INCOME PORTFOLIO
MONEY MARKET PORTFOLIO
[graphic of compass, binoculars, key]
SEMIANNUAL REPORT
JUNE 30, 1995
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
Table Of Contents
PAGE
International Growth Portfolio 1
Capital Growth Portfolio 9
Real Estate Growth Portfolio 16
Equity-Income Portfolio 21
Balanced Portfolio 28
America Income Portfolio 34
Money Market Portfolio 39
Notes to Financial Statements 44
<PAGE>
International Growth Portfolio
Schedule of Investments - June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------------------------------
INVESTMENT IN SECURITIES - 100.0%
CONVERTIBLE CORPORATE BONDS - 1.3%
$ 8,100 Cemex S.A., 4.25%, 11/1/97 $ 6,197
--------
TOTAL CONVERTIBLE CORPORATE BONDS (Cost $6,318) $ 6,197
--------
Shares
------
PREFERRED STOCKS - 9.0%
700 News Corp., Ltd. (Voting) $ 3,908
250 Nokia Oy 14,878
20 SAP AG 25,309
--------
TOTAL PREFERRED STOCKS ( Cost $37,692) $ 44,095
--------
COMMON STOCKS - 89.8%
BASIC INDUSTRIES - 7.5%
Chemicals- 3.2%
80 European Vinyls Corp., Intl.* $ 3,723
1,500 Indogulf Fertilizers (G.D.R.)* 3,300
490 Unitor A.S. 8,502
--------
$ 15,525
--------
Iron & Steel - 2.7%
300 China Steel Corp. (G.D.R.) $ 6,132
180 Koninklijke Hoogovens & Staalfabrienken CVA 7,146
--------
$ 13,278
--------
Metals & Mining - 0.7%
50 Eramet* $ 3,560
--------
Tire & Rubber - 0.9%
3,000 PT Andayani Megah $ 4,266
--------
TOTAL BASIC INDUSTRIES $ 36,629
--------
CAPITAL GOODS - 5.7%
Construction, Building Materials & Engineering - 2.8%
1,000 PT Indocement Tunggal Prakar $ 3,999
85 Metra Oy 3,744
100 Tarkett Aktiengesellschaft 2,592
620 Wolseley Plc 3,427
--------
$ 13,762
--------
Machinery - 1.3%
1,270 Powerscreen International Plc $ 6,485
--------
Producer Goods - 1.6%
150 Autoliv AB $ 8,038
--------
TOTAL CAPITAL GOODS $ 28,285
--------
The accompanying notes are an integral part of these financial statements.
1
<PAGE>
International Growth Portfolio
Schedule of Investments - June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
CONSUMER DURABLES - 4.8%
Motor Vehicles - 4.8%
100 Toyota Motor Corp. 3,975
500 CIA Interamericana De Auto 2,432
1,000 Fiat SpA di Risp (Non-convertible) 2,150
790 AB Volvo (Series B Free) 15,073
--------
TOTAL CONSUMER DURABLES $ 23,630
--------
CONSUMER NON-DURABLES - 7.4%
Agriculture & Food Manufacturing - 0.8%
1,500 Pioneer International, Ltd. $ 3,729
---------
Retail Non - Food - 3.0%
100 Autobacs Seven $ 9,719
200 Vendex International N.V. 5,285
--------
$ 15,004
--------
Retail - General - 0.8%
1,000 Siam Makro Public Co., Ltd. $ 3,910
--------
Textiles/Clothes - 2.8%
70 Chargeurs S.A. $ 13,611
--------
TOTAL CONSUMER NON-DURABLES $ 36,254
--------
FINANCIAL - 25.8%
Commercial Bank - 14.2%
400 Bangkok Bank $ 4,408
500 Bank of Ayudhya, Ltd. 2,431
2,000 Dah Sing Financial Holdings, Ltd. 4,809
1,000 DCB Holdings Bhd. 2,931
1,000 Development Bank of Singapore, Ltd. 11,390
2,000 Guoco Group, Ltd. 9,334
5,500 Krung Thai Bank 22,285
1,500 PT Bank Dagang Nasional Indonesia 2,600
2,500 PT Bank International Indonesia 7,638
1,500 Siam City Bank, Ltd. 2,066
--------
$ 69,892
--------
Finance - Miscellaneous - 4.3%
800 HSBC Holdings Plc $ 10,265
1,000 Jardine Strategic Holdings, Ltd. 3,220
80 Credit Local De France 7,407
--------
$ 20,892
--------
Insurance - General - 3.0%
6,000 National Mutual Asia, Ltd. $ 3,840
560 AB Skandia Forsakrings 10,878
--------
$ 14,718
--------
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
International Growth Portfolio
Schedule of Investments - June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
Real Estate - 4.3%
1,000 DBS Land $ 3,138
4,000 PT Duta Anggada 3,199
3,000 Cheung Kong Holdings 14,855
--------
$ 21,192
--------
TOTAL FINANCIAL $126,694
--------
SERVICES - 2.7%
Pharmaceuticals - 2.7%
220 AB Astra (Series A Free) $ 6,804
1 Roche Holding AG 6,446
--------
TOTAL SERVICES $ 13,250
--------
TECHNOLOGY - 15.1%
Electronics - 14.5%
1,000 Hitachi, Ltd. $ 9,967
65 Kyocera Corp. 10,628
1,000 Ricoh 8,587
290 Philips Electronics N.V. 12,261
14,000 QPL International Holdings, Ltd. 5,475
330 Samsung Electronics 17,738
1,000 Toshiba Corp. 6,334
--------
$ 70,990
--------
Telephone Networks - 0.6%
200 ECI Telecom, Ltd. $ 2,738
--------
TOTAL TECHNOLOGY $ 73,728
--------
TRANSPORTATION - 1.5%
Ships & Shipping - 1.5%
160 Kvaerner Industrier $ 7,264
--------
TOTAL TRANSPORTATION $ 7,264
--------
UTILITIES - 14.4%
Telecommunications - 14.4%
1 DDI Corp. $ 8,021
600 Ericsson Telephone (Class B) 11,985
500 Korea Mobile Telecom Corp. 17,875
100 Nera A.S. 2,838
60 PT Indosat (A.D.R.) 2,295
70 Telecom Argentina Stet France (A.D.R.) 3,185
3,480 Telecom Italia SpA 9,413
300 Portugal Telecom S.A. (A.D.R.) 5,700
2,570 Vodafone Group Plc 9,560
--------
TOTAL UTILITIES $ 70,872
--------
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
International Growth Portfolio
Schedule of Investments - June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
MISCELLANEOUS - 4.9%
Conglomerates & Holding Companies - 4.9%
4 BBC Brown Boveri AG $ 4,142
3,000 First Pacific Corp. 2,676
1,000 Land & General Holdings Bhd. 3,341
1,000 Mitsubishi Heavy Industries, Ltd. 6,794
2,000 Renong Bhd. 3,722
940 Tomkins Plc 3,369
--------
TOTAL MISCELLANEOUS $ 24,044
--------
TOTAL COMMON STOCKS (Cost $431,248) $440,650
--------
TOTAL INVESTMENT IN SECURITIES (Cost $475,258) (a) $490,942
========
*Non-income producing security.
(a) At June 30, 1995, the net unrealized appreciation on investments based on
cost for federal income tax purposes of $475,424 was as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value
over tax cost $ 22,292
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax
cost over value (6,774)
--------
Net unrealized appreciation $ 15,518
========
Purchases and sales of securities (excluding temporary cash investments) for the
four months ended June 30, 1995, aggregated $502,712 and $27,354, respectively.
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
International Growth Portfolio
Balance Sheet
June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
Assets:
Investment in securities,
at value (cost $475,258;
see Schedule of Investments and Note 1) $ 490,942
Cash 66,158
Foreign currencies, at value (Note 1) 7,287
Receivables--
Investment securities sold 15,031
Dividends and interest
(net of foreign taxes withheld) (Note 1) 459
Due from Pioneering Management
Corporation (Note 2) 61,992
Other 736
---------
Total assets $ 642,605
---------
Liabilities:
Payables--
Investment securities purchased $ 56,564
Accrued expenses (Notes 2 and 3) 64,550
---------
Total liabilities $ 121,114
---------
Net Assets:
Paid-in capital (Note 1) $ 505,550
Accumulated undistributed net
investment income (Note 1) 466
Accumulated net realized loss on investments and
foreign currency transactions (Notes 1 and 4) (100)
Net unrealized gain on investments (Note 1) 15,684
Net unrealized loss on other assets and
liabilities denominated in foreign
currencies (Notes 1 and 4) (109)
---------
Total net assets (equivalent to
$10.35 per share on 50,406 trust
shares outstanding) $ 521,491
=========
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
International Growth Portfolio
Statement of Operations
For the Period from March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- -------------------------------------------------------------------------------
Investment Income (Note 1):
Interest (net of foreign taxes withheld of $127) $ 1,772
Dividend 813
-------
Total investment income $ 2,585
-------
Expenses:
Management fees (Note 2) $ 1,059
Transfer agent fees (Note 3) 484
Registration fees 868
Professional fees 18,924
Accounting (Note 2) 21,888
Custodian fees 7,980
Printing 684
Fees and expenses of nonaffliated trustees 1,596
Miscellaneous 16,012
------
Total expenses $69,495
Less management fees waived and expenses assumed by
Pioneering Management Corporation (Note 2) 67,376
-------
Net expenses $ 2,119
-------
Net investment income $ 466
-------
Realized and Unrealized Gain (Loss) on Investment
and Foreign Currency Transactions:
Net realized loss on investments (Note 1) $ (100)
--------
Net unrealized gain (loss) from:
Net unrealized gain on investments (Note 1) 15,684
Net unrealized loss on other assets and liabilities
denominated in foreign currencies (Notes 1 and 4) (109)
--------
$15,575
--------
Net income on investments and other foreign currency
related transactions $15,475
-------
Net increase in net assets resulting from operations $15,941
=======
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
International Growth Portfolio
Statement of Changes in Net Assets
For the Period from March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
From Operations:
Net investment income $ 466
Net realized loss on investments
and foreign currency related
transactions (100)
Net unrealized gain on investments
and foreign currency transactions 15,575
---------
Net increase in net assets
resulting from operations $ 15,941
---------
From Trust Share Transactions:
Shares
---------
Net proceeds from sale of shares 25,458 $ 256,078
Cost of shares repurchased (52) (528)
--------- ---------
Net increase in net assets
resulting from trust share
transactions 25,406 $ 255,550
========= ---------
Net increase in net assets $ 271,491
Net Assets:
Beginning of period (initial
capitalization - 25,000 shares) 250,000
---------
End of period (including accumulated
undistributed net investment income
of $466) $ 521,491
=========
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
International Growth Portfolio
Financial Highlights
Selected Data for a Share Outstanding for the Period
March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.00
-------
Increase from investment operations:
Net investment income $ 0.01
Net realized and unrealized
gain on investments and foreign
currency transactions 0.34
-------
Net increase in net asset value $ 0.35
-------
Net asset value, end of period $ 10.35
=======
Total return* 3.50%
Ratio of net operating expenses to
average net assets 1.91%**
Ratio of net investment income
to average net assets 0.42%**
Portfolio turnover rate 29.10%**
Net assets, end of period
(in thousands) $ 521
Ratios assuming no waiver of fees
or assumption of expenses:
Net operating expenses 62.48%**
Net investment loss (60.16%)**
* 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 period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
Capital Growth Portfolio
Schedule of Investments - June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
INVESTMENT IN SECURITIES - 56.7%
COMMON STOCKS - 54.3%
BASIC INDUSTRIES - 3.5%
Chemicals - 1.4%
800 The Geon Co. $ 23,000
--------
Iron & Steel - 2.1%
5,000 Armco, Inc.* $ 33,750
--------
TOTAL BASIC INDUSTRIES $ 56,750
--------
CAPITAL GOODS - 6.9%
Construction & Engineering - 4.5%
2,400 Justin Industries $ 26,400
4,000 Kasler Holding Co.* 21,000
1,200 Lone Star Industies, Inc. 25,800
--------
$ 73,200
--------
Pollution & Waste - 1.2%
6,000 Catalytica, Inc.* $ 19,500
--------
Producer Goods - 1.2%
2,400 Griffon Corp.* $ 19,200
--------
TOTAL CAPITAL GOODS $111,900
--------
CONSUMER DURABLES - 2.3%
Consumer Luxuries - 2.3%
3,800 Meridian Sports, Inc.* $ 37,525
--------
TOTAL CONSUMER DURABLES $ 37,525
--------
CONSUMER NON-DURABLES - 15.0%
Cosmetics - 1.8%
1,400 Maybelline Inc. $ 28,700
--------
Retail Non-Food - 7.2%
1,600 Fingerhut Co., Inc. $ 25,000
6,000 Genesco, Inc.* 18,750
10,000 Grossman's, Inc.* 24,375
1,500 Kmart Corp. 21,938
2,400 Levitz Furniture, Inc.* 16,800
700 TJX Companies, Inc. 9,275
--------
$116,138
--------
Textiles/Clothes - 6.0%
1,800 Galey & Lord, Inc.* $ 24,975
2,400 Marisa Christina, Inc.* 34,500
3,100 Tultex Corp.* 17,437
1,000 Vista Resouces, Inc.* 20,250
--------
$ 97,162
--------
TOTAL CONSUMER NON-DURABLES $242,000
--------
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
ENERGY - 1.0%
Oil Refining and Drilling - 1.0%
1,000 Arakis Energy Corp.* $ 16,125
--------
TOTAL ENERGY $ 16,125
--------
FINANCIAL - 8.6%
Financial Services - 17%
1,100 Lehman Brothers Holdings, Inc. $ 24,063
100 Salomon, Inc. 4,012
--------
$ 28,075
--------
Insurance - 3.1%
1,500 Capital Guaranty Corp. $ 27,000
1,800 Western National Corp. 22,275
--------
$ 49,275
--------
Real Estate - 3.8%
2,800 Amresco, Inc. $ 26,250
10,800 Patten Corp.* 35,100
--------
$ 61,350
--------
TOTAL FINANCIAL $138,700
--------
SERVICES - 11.9%
Health Services & Personal Care - 2.2%
5,000 Creative BioMolecules, Inc.* $ 15,000
1,500 Tenet Healthcare Corp.* 21,562
--------
$ 36,562
--------
Pharmaceuticals - 9.7%
12,000 Alkermes, Inc.* $ 46,500
9,600 American White Cross, Inc.* 24,000
3,500 Autoimmune, Inc.* 38,063
2,000 Interneuron Pharmaceuticals, Inc.* 20,750
3,300 Ligand Pharmaceutical (Class B)* 27,225
--------
$156,538
--------
TOTAL SERVICES $193,100
--------
TECHNOLOGY - 5.1%
Computer Services & Software - 4.5%
1,600 Banyan Systems, Inc.* $ 22,000
4,100 Dataflex Corp.* 31,262
3,400 Walker Interactive Systems, Inc.* 19,550
--------
$ 72,812
--------
Electronics - 0.6%
1,000 Rexel, Inc.* $ 9,500
--------
TOTAL TECHNOLOGY $ 82,312
--------
TOTAL COMMON STOCKS (Cost $824,169) $878,412
--------
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
Capital Growth Portfolio
Schedule of Investments - June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
UNITS - 2.4%
2,438 Allergan Ligand Retinoid Therapeutics, Inc.* $ 39,008
----------
TOTAL UNITS (Cost $25,430) $ 39,008
----------
TOTAL INVESTMENT IN SECURITIES (Cost $849,599) (a) $ 917,420
----------
Principal
Amount
- -----------------
TEMPORARY CASH INVESTMENTS - 43.3%
$400,000 Repurchase agreement with Chase $ 400,068
Manhattan Corp., dated 6/30/95,
bearing 6.125% to be repurchased
at $400,000 plus accrued interest
on 7/3/95, collateralized by $405,000
U.S. Treasury Notes, 6.125%, 5/15/98
300,000 Repurchase agreement with Lehman Brothers 300,052
Holdings, Inc., dated 6/30/95, bearing
6.15% to be repurchased at $300,000 plus
accrued interest on 7/3/95, collateralized
by $300,000 U.S. Treasury Notes, 6.875%,
4/30/97 ----------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $700,000) $ 700,120
TOTAL INVESTMENT IN SECURITIES
AND TEMPORARY CASH ----------
INVESTMENTS - 100% (Cost $1,549,599) $1,617,540
==========
* Non-income producing security.
(a) At June 30, 1995, the net unrealized
appreciation on investments based
on cost for federal income tax purposes
of $849,599 was as follows:
Aggregate gross unrealized appreciation
for all investments in which there is an
excess of value over tax cost $ 89,677
Aggregate gross unrealized depreciation
for all investments in which there is an
excess of tax cost over value (21,856)
----------
Net unrealized appreciation $ 67,821
==========
Purchases and sales of securities (excluding temporary cash investments) for the
four months ended June 30, 1995 aggregated $887,644 and $42,505, respectively.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
Capital Growth Portfolio
Balance Sheet
June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
Assets:
Investment in securities, at value (including temporary
investments of $700,120) (cost $1,549,599; see $1,617,540
Schedule of Investments and Note 1)
Cash 52,491
Receivables--
Dividends 252
Due from Pioneering Management Corporation (Note 2) 35,723
Other 433
----------
Total assets $1,706,439
----------
Liabilities:
Accrued expenses (Notes 2 and 3) $ 39,529
----------
Total liabilities $ 39,529
----------
Net Assets:
Paid-in capital (Note 1) $1,590,914
Accumulated undistributed net investment income (Note 1) 3,715
Accumulated net realized gain on investments (Note 1) 4,460
Net unrealized gain on investments (Note 1) 67,821
----------
Total net assets (equivalent to $10.65 per share on
156,483 trust shares outstanding) $1,666,910
==========
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
Capital Growth Portfolio
Statement of Operations
For the Period from March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- -------------------------------------------------------------------------------
Investment Income (Note 1):
Interest $ 6,864
Dividend 688
-------
Total investment income $ 7,552
-------
Expenses:
Management fees (Note 2) $ 1,425
Transfer agent fees (Note 3) 484
Registration fees 1,694
Professional fees 16,698
Accounting (Note 2) 11,616
Custodian fees 4,356
Printing 726
Fees and expenses of nonaffliated trustees 1,694
Regulatory reporting 4,235
Miscellaneous 568
-------
Total expenses $43,496
Less management fees waived and expenses assumed by
Pioneering Management Corporation (Note 2) 39,659
-------
Net expenses $ 3,837
-------
Net investment income $ 3,715
-------
Realized and Unrealized Gain on Investments:
Net realized gain on investments (Note 1) $ 4,460
Net unrealized gain on investments (Note 1) 67,821
-------
Net gain on investments $72,281
-------
Net increase in net assets resulting from operations $75,996
=======
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
Capital Growth Portfolio
Statement of Changes in Net Assets
For the Period from March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
From Operations:
Net investment income $ 3,715
Net realized gain on investments 4,460
Net unrealized gain on investments 67,821
----------
Net increase in net assets
resulting from operations $ 75,996
----------
From Trust Share Transactions:
Shares
--------
Net proceeds from sale of shares 154,774 $1,574,565
Cost of shares repurchased (8,291) (83,651)
--------- ----------
Net increase in net assets
resulting from trust share
transactions 146,483 $1,490,914
========= ----------
Net increase in net assets $1,566,910
Net Assets:
Beginning of period (initial
capitalization - 10,000 shares) 100,000
----------
End of period (including accumulated
undistributed net
investment income of $3,715) $1,666,910
==========
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
Capital Growth Portfolio
Financial Highlights
Selected Data for a Share Outstanding for the Period
March 1, 1995 (Commencement
of Operations) to June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.00
--------
Increase from investment operations:
Net investment income $ 0.02
Net realized and unrealized gain on investments 0.63
--------
Net increase in net asset value $ 0.65
--------
Net asset value, end of period $ 10.65
========
Total return* 6.50%
Ratio of net operating expenses to average net assets 1.71% **
Ratio of net investment income to average net assets 1.66% **
Portfolio turnover rate 28.83% **
Net assets, end of period (in thousands) $ 1,667
Ratios assuming no waiver of fees or assumption
of expenses:
Net operating expenses 19.43% **
Net investment loss (16.06%)**
* 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 period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
Real Estate Growth Portfolio
Schedule of Investments - June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
Value
- --------------------------------------------------------------------------------
INVESTMENT IN SECURITIES - 100%
REAL ESTATE INVESTMENT TRUSTS - 93.3%
400 Bradley Real Estate Trust $ 6,450
400 CenterPoint Properties Corp. 8,250
300 Developers Diversified Realty Corp. 8,625
300 Duke Realty Investments, Inc. 8,475
600 Equity Inns, Inc. 6,450
300 Equity Residential Property 8,363
300 Factory Stores of America, Inc. 6,150
400 Gables Residential Trust 8,200
300 Horizon Outlet Centers 6,975
400 JP Realty, Inc. 8,200
300 Merry Land & Investment Co., Inc. 6,113
400 National Golf Properties, Inc. 8,400
300 Oasis Residential, Inc. 6,525
200 Post Properties, Inc. 6,050
300 Spieker Properties, Inc. 6,712
300 Sun Communities, Inc. 7,500
300 Tanger Factory Outlet Centers, Inc. 7,612
300 Trinet Corporate Realty Trust, Inc. 8,400
400 Walden Residential Properties 7,350
200 Weingarten Realty Investors 7,550
400 Wellsford Residential Properties Trust 9,100
--------
TOTAL REAL ESTATE INVESTMENT
TRUSTS (Cost $152,459) $157,450
--------
REAL ESTATE SERVICES - 6.7%
1,200 Amresco, Inc. $ 11,250
--------
TOTAL REAL ESTATE SERVICES
(Cost $8,400) $ 11,250
--------
TOTAL INVESTMENT IN SECURITIES
(Cost $160,859) (a) $168,700
========
(a) At June 30, 1995, the net unrealized
appreciation on investments based on
cost for federal income tax purposes
of $160,859 was as follows:
Aggregate gross unrealized appreciation
for all investments in which there is
an excess of value over tax cost $ 8,452
Aggregate gross unrealized depreciation
for all investments in which there is
an excess of tax cost over value (611)
---------
Net unrealized appreciation $ 7,841
=========
Purchases and sales of securities (excluding temporary cash
investments) for the four months ended June 30, 1995,
aggregated $160,859 and $0, respectively.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
Real Estate Growth Portfolio
Balance Sheet
June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
Assets:
Investment in securities, at value (cost $160,859;
see Schedule of Investments and Note 1) $168,700
Cash 14,295
Receivables--
Dividends 1,621
Due from Pioneer Winthrop Advisers (Note 2) 29,777
Other 512
--------
Total assets $214,905
--------
Liabilities:
Payables--
Investment securities purchased $ 7,274
Accrued expenses (Notes 2 and 3) 30,582
--------
Total liabilities $ 37,856
--------
Net Assets:
Paid-in capital (Note 1) $169,191
Accumulated undistributed net investment income (Note 1) 17
Net unrealized gain on investments (Note 1) 7,841
--------
Total net assets (equivalent to $10.57 per share on
16,755 trust shares outstanding) $177,049
========
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
Real Estate Growth Portfolio
Statement of Operations
For the Period from March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- ----------------------------------------------------------------------------
Investment Income (Note 1):
Dividend $ 3,166
-------
Expenses:
Management fees (Note 2) $ 433
Transfer agent fees (Note 3) 488
Registration fees 1,342
Professional fees 17,080
Accounting (Note 2) 8,052
Custodian fees 2,276
Printing 732
Fees and expenses of nonaffliated trustees 1,708
Regulatory reporting 2,440
Miscellaneous 488
-------
Total expenses $35,039
Less management fees waived and expenses assumed by
Pioneer Winthrop Advisers (Note 2) 34,282
-------
Net expenses $ 757
-------
Net investment income $ 2,409
-------
Unrealized Gain on Investments:
Net unrealized gain on investments (Note 1) $ 7,841
-------
Net increase in net assets resulting from operations $10,250
=======
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
Real Estate Growth Portfolio
Statement of Changes in Net Assets
For the Period from March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- -------------------------------------------------------------------------------
From Operations:
Net investment income $ 2,409
Net unrealized gain on investments 7,841
---------
Net increase in net
assets resulting from
operations $ 10,250
---------
Distributions to Shareholders From:
Net investment income ($0.15 per share) $ (2,392)
---------
From Trust Share Transactions:
Shares
---------
Net proceeds from sale of shares 6,830 $ 69,932
Net asset value of shares issued
to shareholders in
reinvestment of dividends 228 2,392
Cost of shares repurchased (303) (3,133)
--------- ---------
Net increase in net assets
resulting from trust
share transactions 6,755 $ 69,191
========= ---------
Net increase in net assets $ 77,049
Net Assets:
Beginning of period
(initial capitalization -
10,000 shares) 100,000
---------
End of period (including accumulated
undistributed net
investment income of $17) $ 177,049
=========
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
Real Estate Growth Portfolio
Financial Highlights
Selected Data for a Share Outstanding for the Period March 1, 1995 (Commencement
of Operations) to June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.00
-------
Increase from investment operations:
Net investment income $ 0.15
Net unrealized gain on investments 0.57
-------
Total increase from investment operations $ 0.72
Distributions to shareholders from:
Net investment income (0.15)
-------
Net increase in net asset value $ 0.57
-------
Net asset value, end of period $ 10.57
=======
Total return* 7.21%
Ratio of net operating expenses to average net assets 1.73%**
Ratio of net investment income to average net assets 5.51%**
Portfolio turnover rate --
Net assets, end of period (in thousands) $ 177
Ratios assuming no waiver of fees or assumption
of expenses:
Net operating expenses 80.10% **
Net investment loss (72.86%)**
* 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 period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
Equity-Income Portfolio
Schedule of Investments - June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
INVESTMENT IN SECURITIES - 88.0%
CONVERTIBLE PREFERRED STOCKS - 4.0%
100 Delta Air Lines, Inc., $3.50, 2049, (Series C) $ 5,850
100 General Motors Corp., (Class H) 3,950
100 Reynolds Metals, 7.00%, 1997 4,825
570 Sprint, 8.25%, 2000 19,807
---------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $31,631) $ 34,432
---------
COMMON STOCKS - 84.0%
BASIC INDUSTRIES - 4.8%
Chemicals - 1.3%
100 ARCO Chemical Company $ 4,537
100 E.I. du Pont de Nemours and Company 6,875
---------
$ 11,412
---------
Metals & Mining - .7%
100 Phelps Dodge Corp. $ 5,900
---------
Paper Products - 2.8%
700 Louisiana Pacific Corp. $ 18,375
100 Union Camp Corp. 5,787
---------
$ 24,162
---------
TOTAL BASIC INDUSTRIES $ 41,474
---------
CAPITAL GOODS - 1.0%
Producer Goods - 1.0%
300 Manitowoc Company, Inc. $ 8,663
---------
TOTAL CAPITAL GOODS $ 8,663
---------
CONSUMER DURABLES - 8.6%
Motor Vehicles - 8.6%
1,000 Chrysler Corp. $ 47,875
400 Ford Motor Company 11,900
300 General Motors 14,062
---------
TOTAL CONSUMBER DURABLES $ 73,837
---------
CONSUMER NON-DURABLES - 9.6%
Agriculture & Food - 2.1%
100 CPC International, Inc. $ 6,175
350 Quaker Oats Co. 11,506
---------
$ 17,681
---------
Retail Non-Food - 7.5%
450 J.C. Penney Co., Inc. $ 21,600
550 May Department Stores Co. 22,899
450 Mercantile Stores Co., Inc. 20,925
---------
$ 65,424
---------
TOTAL CONSUMBER NON-DURABLES $ 83,105
---------
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
ENERGY - 3.9%
Oil & Gas Extraction - 3.9%
180 Amoco Corp. $ 11,992
300 Brooklyn Union Gas Company 7,875
300 Chevron Corporation 13,987
---------
TOTAL ENERGY $ 33,854
---------
FINANCIAL - 12.6%
Commercial Banks - 12.6%
300 The Bank of New York Company, Inc. $ 12,113
200 Corestates Financial Corp. 6,975
950 FirsTier Financial, Inc. 34,912
900 First Security Corp. 25,200
200 First Tennessee National Corp. 9,275
400 Huntington Bancshares, Inc. 8,300
350 Old Kent Financial Corp. 11,900
---------
TOTAL FINANCIAL $ 108,675
---------
SERVICES - 6.3%
Health & Personal Care - 1.4%
400 U.S. Healthcare $ 12,250
---------
Publishing - 3.9%
500 Dun & Bradstreet Corp. $ 26,250
100 McGraw Hill Companies, Inc. 7,587
---------
$ 33,837
---------
Pharmaceuticals - 1.0%
200 Schering-Plough $ 8,825
---------
TOTAL SERVICES $ 54,912
---------
TECHNOLOGY - 2.8%
Electronics - 1.4%
180 Thomas & Betts Corp. $ 12,307
---------
Photo/Instrumentation - 1.4%
200 Eastman Kodak $ 12,125
---------
TOTAL TECHNOLOGY $ 24,432
---------
TRANSPORTATION - 5.2%
Railroad & Bus - 5.2%
300 Conrail, Inc. $ 16,687
500 Union Pacific Corp. 27,687
---------
TOTAL TRANSPORTATION $ 44,374
---------
UTILITES - 29.2%
Electric Utilities - 0.7%
200 Western Resources $ 6,175
---------
Gas Utilities - 1.9%
600 Pacific Telesis Group $ 16,050
---------
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
Telecommunications - 23.0%
600 Ameritech Corp. $ 26,400
1,600 BellSouth Corp. 101,600
800 Frontier Corp. 19,200
300 Lincoln Telecommunications Co. 4,725
300 NYNEX Corp. 12,075
800 U.S. West, Inc. 33,300
---------
$ 197,300
---------
Utility/Other - 3.6%
400 Aquarion Co. $ 9,200
800 E'Town Corp. 21,700
---------
$ 30,900
---------
TOTAL UTILITIES $ 250,425
---------
TOTAL COMMON STOCKS (Cost $692,377) $ 723,751
---------
TOTAL INVESTMENT IN SECURITIES (Cost $724,008) $ 758,183
---------
Principal
Amount
TEMPORARY CASH INVESTMENT - 12.0%
$ 100,000 Repurchase agreement with Chase Manhattan Corp., $ 100,017
dated 6/30/95, bearing 6.125% to be repurchased
at $100,000 plus accrued interest on 7/3/95,
collateralized by $100,000 U.S. Treasury Notes,
6.125%, 5/15/98
---------
TOTAL TEMPORARY CASH INVESTMENT (Cost $100,000) $ 100,017
TOTAL INVESTMENT IN SECURITIES AND TEMP0RARY ---------
CASH INVESTMENT - 100.0% (Cost $824,008) $ 858,200
=========
(a) At June 30, 1995, the net unrealized appreciation
on investments based on cost for federal income tax
purposes of $724,008 was as follows:
Aggregrate gross unrealized appreciation for all
investments in which there is an excess of value
over tax cost $ 38,752
Aggregrate gross unrealized depreciation for all
investments in which there is an excess tax cost
over value (4,577)
---------
Net unrealized appreciation $ 34,175
=========
Purchases and sales of securities (excluding temporary
cash investments) for the four months ended June 30, 1995
aggregated $724,008 and $0, respectively.
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
Equity-Income Portfolio
Balance Sheet
June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
Assets:
Investment in securities, at value (including
temporary cash investment of $100,017)
(cost $824,008; see Schedule of Investments
and Note 1) $ 858,200
Cash 48,097
Receivables--
Dividends 2,262
Due from Pioneering Management Corporation (Note 37,269
Other 665
---------
Total assets $ 946,493
---------
Liabilities:
Payables--
Investment securities purchased $ 125,592
Accrued expenses (Notes 2 and 3) 39,546
---------
Total liabilities $ 165,138
---------
Net Assets:
Paid-in capital (Note 1) $ 747,788
Accumulated distributions in excess of net investment (608)
Net unrealized gain on investments (Note 1) 34,175
---------
Total net assets (equivalent to $10.92 per share on
71,520 trust shares outstanding) $ 781,355
=========
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
Equity-Income Portfolio
Statement of Operations
For the Period from March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
Investment Income (Note 1):
Dividend $ 5,430
Interest 67
-------
Total investment income $ 5,497
-------
Expenses:
Management fees (Note 2) $ 735
Transfer agent fees (Note 3) 488
Registration fees 1,342
Professional fees 11,712
Accounting (Note 2) 11,754
Custodian fees 4,026
Printing 732
Fees and expenses of nonaffliated trustees 1,708
Regulatory reporting 9,760
Miscellaneous 334
-------
Total expenses $42,591
Less management fees waived and expenses assumed by
Pioneering Management Corporation (Note 2) 40,515
-------
Net expenses $ 2,076
-------
Net investment income $ 3,421
-------
Unrealized Gain on Investments:
Net unrealized gain on investments (Note 1) $34,175
-------
Net increase in net assets resulting from
operations $37,596
=======
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
Equity-Income
Statement of Changes in Net Assets
For the Period from March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
From Operations:
Net investment income $ 3,421
Net unrealized gain on investments 34,175
--------
Net increase in net assets
resulting from $ 37,596
--------
Distributions to Shareholders:
From net investment income ($0.06 per share) $ (3,421)
In excess of net investment income
($0.01 per share) (608)
--------
Net decrease in net assets
resulting from distributions to
shareholders $ (4,029)
--------
From Trust Share Transactions:
Shares
--------
Net proceeds from sale of shares 61,779 $650,330
Net asset value of shares issued
to shareholders in reinvestment
of dividends 367 4,029
Cost of shares repurchased (626) (6,571)
--------- ---------
Net increase in net assets
resulting from trust share
transactions 61,520 $647,788
--------- ---------
Net increase in net assets $681,355
Net Assets:
Beginning of period
(initial capitalization -
10,000 shares) 100,000
--------
End of period (including accumulated
distributions in excess of net
investment income of $608) $781,355
=========
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
Equity-Income Portfolio
Financial Highlights
Selected Data for a Share Outstanding for the Period
March 1, 1995 to June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
Net asset value, beginning of period $10.00
------
Increase from investment operations:
Net investment income $ 0.06
Net unrealized gain on investments 0.93
------
Total increase from investment operations $ 0.99
Distributions to shareholders:
From net investment income (0.06)
In excess of net investment income (0.01)
------
Net increase in net asset value $ 0.92
------
Net asset value, end of period $10.92
======
Total return* 9.90%
Ratio of net operating expenses to average net assets 1.81%**
Ratio of net investment income to average net assets 2.98%**
Portfolio turnover rate --
Net assets, end of period (in thousands) $ 781
Ratios assuming no waiver of fees or
assumption of expenses:
Net operating expenses 37.10%**
Net investment loss (32.31%)**
* 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 period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
Balanced Portfolio
Schedule of Investments - June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
INVESTMENT IN SECURITIES - 100.0%
CONVERTIBLE PREFERRED STOCKS - 16.6%
95 Delta Air Lines Inc., $3.50, 1995 $ 5,557
200 Reading & Bates, $1.625, 1996 5,700
100 Rouse Co., 6.50%, 1996 5,100
780 Sprint, 8.25%, 2000 27,105
---------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $39,808) $ 43,462
---------
COMMON STOCKS - 57.7%
BASIC INDUSTRIES - 1.7%
Chemicals- 1.7%
100 Arco Chemical Co. $ 4,538
---------
TOTAL BASIC INDUSTRIES $ 4,538
---------
CONSUMER DURABLES - 12.8%
Motor Vehicles - 12.8%
450 Chyrsler Corp. 21,543
250 Ford Motor Co. 7,438
100 General Motors Corp. 4,688
---------
TOTAL CONSUMER DURABLES $ 33,669
---------
CONSUMER NON-DURABLES - 4.7%
Retail Food - 1.3%
100 Quaker Oats Co. $ 3,288
---------
Retail Non - Food - 3.4%
100 J.C. Penney Co., Inc. $ 4,800
100 May Department Stores Co. 4,162
---------
$ 8,962
---------
TOTAL CONSUMER NON-DURABLES $ 12,250
---------
ENERGY - 3.6%
Oil and Gas Extraction - 3.6%
200 Chevron Corp. $ 9,325
---------
TOTAL ENERGY $ 9,325
---------
FINANCIAL - 10.2%
Commercial Bank - 10.2%
200 The Bank of New York $ 8,074
100 First Tennessee National Corp. 4,638
200 FirsTier Financial, Inc. 7,350
200 Old Kent Financial Corp. 6,800
---------
TOTAL FINANCIAL $ 26,862
---------
SERVICES - 1.2%
Health Services & Personal Care - 1.2%
220 U.S. Healthcare, Inc. $ 3,063
--------
TOTAL SERVICES $ 3,063
--------
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
- --------------------------------------------------------------------------------
Shares Value
- --------------------------------------------------------------------------------
TRANSPORTATION - 6.4%
Railroad & Bus - 6.4%
200 Conrail, Inc. $ 11,125
100 Union Pacific Corp. 5,537
--------
TOTAL TRANSPORTATION $ 16,662
--------
UTILITIES - 17.1%
Electric Utilities 1.8%
150 Western Resources, Inc. $ 4,631
--------
Telecommunications - 15.3%
400 Ameritech $ 17,600
100 Bellsouth 6,350
500 Frontier Corp. 12,000
100 U.S. West, Inc. 4,163
--------
$ 40,113
--------
TOTAL UTILITIES $ 44,744
--------
TOTAL COMMON STOCKS (Cost $143,661) $151,113
--------
Principal
Amount
U.S. GOVERNMENT SECURITY - 25.7%
$69,000 United States Treasury Note, 5.125%, 1998 67,275
--------
TOTAL U.S. GOVERNMENT SECURITY
(Cost $65,416) 67,275
--------
TOTAL INVESTMENT IN SECURITIES
(Cost $248,885)((a)) $261,850
========
(a) At June 30, 1995, the net unrealized appreciation on
investments based on cost for federal income tax
purposes of $248,885 was as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value
over tax cost $ 14,132
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax
cost over value (1,167)
--------
Net unrealized appreciation $ 12,965
========
Purchases and sales of securities (excluding temporary
cash investments) for the four months ended June 30,
1995, aggregated $248,642 and $0, respectively.
The accompanying notes are an integral part of these financial statements.
29
<PAGE>
Balanced Portfolio
Balance Sheet
June 30, 1995
(Unaudited)
- -------------------------------------------------------------------------------
Assets:
Investment in securities, at value (cost $248,885;
see Schedule of Investments and Note 1) $261,850
Cash 4,196
Receivables--
Dividends 760
Interest 10
Due from Pioneering Management Corporation (Note 2) 34,917
Other 432
--------
Total assets $302,165
--------
Liabilities:
Accrued expenses (Notes 2 and 3) $ 35,966
--------
Total liabilities $ 35,966
--------
Net Assets:
Paid-in capital (Note 1) $252,835
Accumulated undistributed net investment income (Note 1) 399
Net unrealized gain on investments (Note 1) 12,965
--------
Total net assets (equivalent to $10.74 per share on
24,791 trust shares outstanding) $266,199
========
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
Balanced Portfolio
Statement of Operations
For the Period from March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
Investment Income (Note 1):
Dividend $ 1,969
Interest 1,085
-------
Total investment income $ 3,054
-------
Expenses:
Management fees (Note 2) $ 372
Transfer agent fees (Note 3) 484
Registration fees 1,331
Professional fees 15,004
Accounting (Note 2) 11,616
Custodian fees 3,993
Printing 726
Fees and expenses of nonaffliated trustees 1,694
Regulatory reporting 3,025
Miscellaneous 568
-------
Total expenses $38,813
Less management fees waived and expenses
assumed by Pioneering Management
Corporation (Note 2) 37,811
-------
Net expenses $ 1,002
-------
Net investment income $ 2,052
-------
Unrealized Gain on Investments:
Net unrealized gain on investments (Note 1) $12,965
-------
Net increase in net assets resulting from operations $15,017
=======
The accompanying notes are an integral part of these financial statements.
31
<PAGE>
Balanced Portfolio
Statement of Changes in Net Assets
For the Period from March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- -------------------------------------------------------------------------------
From Operations:
Net investment income $ 2,052
Net unrealized gain on investments 12,965
---------
Net increase in net assets
resulting from operations $ 15,017
---------
Distributions to Shareholders From:
Net investment income ($0.07 per share) $ (1,653)
---------
From Trust Share Transactions:
Shares
------
Net proceeds from sale of shares 14,714 $ 151,986
Net asset value of shares issued
to shareholders in
reinvestment of dividends 153 1,653
Cost of shares repurchased (76) (804)
------ ---------
Net increase in net assets
resulting from trust share
transactions 14,791 $ 152,835
====== ---------
Net increase in net assets $ 166,199
Net Assets:
Beginning of period (initial
capitalization - 10,000 shares) 100,000
---------
End of period (including accumulated
undistributed net
investment income of $399) $ 266,199
=========
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
Balanced Portfolio
Financial Highlights
Selected Data for a Share Outstanding for the Period
March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- -------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.00
--------
Increase from investment operations:
Net investment income $ 0.09
Net unrealized gain on investments 0.72
--------
Total increase from investment
operations 0.81
Distributions to shareholders from:
Net investment income (0.07)
--------
Net increase in net asset value $ 0.74
--------
Net asset value, end of period $ 10.74
========
Total return* 8.10%
Ratio of net operating expenses to average net assets 1.73%**
Ratio of net investment income to average net assets 3.54%**
Portfolio turnover rate --
Net assets, end of period (in thousands) $ 266
Ratios assuming no waiver of fees or
assumption of expenses:
Net operating expenses 66.96% **
Net investment loss (61.69%)**
* 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 period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
33
<PAGE>
America Income Portfolio
Schedule of Investments - June 30, 1995 (Unaudited)
- -------------------------------------------------------------------------------
Principal
Amount Value
- -------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES - 100.0%
$ 49,791 Government National Mortgage Association,
7.50%, 2023 $ 50,040
50,000 U.S. Treasury Notes, 6.125%, 1997 50,258
50,000 U.S. Treasury Notes, 6.5%, 2005 51,062
50,000 U.S. Treasury Notes, 7.125%, 2000 52,227
50,000 U.S. Treasury Notes, 7.825%, 1998 52,516
--------
TOTAL INVESTMENT IN SECURITIES
(Cost $257,003)((a)) $256,103
========
(a) At June 30, 1995, the net unrealized depreciation on
investments based on cost for federal income tax
purposes of $257,003 was as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value over
tax cost $ 373
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax cost
over value (1,273)
---------
Net unrealized depreciation $ (900)
=========
Purchases and sales of securities (excluding
temporary cash investments) for the four months ended
June 30, 1995, aggregated $257,049 and $46,
respectively.
The accompanying notes are an integral part of these financial statements.
34
<PAGE>
America Income Portfolio
Balance Sheet
June 30, 1995
(Unaudited)
- -------------------------------------------------------------------------------
Assets:
Investment in securities, at value
(cost $257,003; see Schedule of
Investments and Note 1) $ 256,103
Cash 40,808
Receivables--
Interest 3,100
Due from Pioneering Management
Corporation (Note 2) 47,936
---------
Total Assets $ 347,947
---------
Liabilities:
Accrued expenses (Notes 2 and 3) $ 48,014
---------
Total liabilities $ 48,014
---------
Net Assets:
Paid-in capital (Note 1) $ 300,835
Accumulated net realized loss
(Note 1) (2)
Net unrealized loss on investments
(Note 1) (900)
---------
Total net assets (equivalent to $9.99
per share on 30,032 trust shares
outstanding) $ 299,933
=========
The accompanying notes are an integral part of these financial statements.
35
<PAGE>
America Income Portfolio
Statement of Operations
For the Period from March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
Investment Income (Note 1):
Interest $ 2,464
--------
Expenses:
Management fees (Note 2) $ 257
Transfer agent fees (Note 3) 500
Registration fees 868
Professional fees 18,228
Accounting (Note 2) 13,636
Custodian fees 4,464
Printing 372
Fees and expenses of nonaffliated trustees 1,984
Miscellaneous 8,332
--------
Total expenses $ 48,641
Less management fees waived and expenses assumed by
Pioneering Management Corporation (Note 2) 48,193
--------
Net expenses $ 448
--------
Net investment income $ 2,016
--------
Realized and Unrealized Loss on Investments:
Net realized loss on investments (Note 1) $ (2)
Net unrealized loss on investments (Note 1) (900)
--------
Net loss on investments $ (902)
--------
Net increase in net assets resulting from operations $ 1,114
========
The accompanying notes are an integral part of these financial statements.
36
<PAGE>
America Income Portfolio
Statement of Changes in Net Assets
For the Period from March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- -------------------------------------------------------------------------------
From Operations:
Net investment income $ 2,016
Net realized loss on investments (2)
Net unrealized loss on investments (900)
--------
Net increase in net assets resulting from $ 1,114
--------
Distributions to Shareholders From:
Net investment income ($0.14 per share) $ (2,016)
--------
From Trust Share Transactions:
Shares
------
Net proceeds from sale of shares 19,869 $199,215
Net asset value of shares issued
to shareholders in
reinvestment of dividends 202 2,020
Cost of shares repurchased (39) (400)
------ --------
Net increase in net assets
resulting from trust share
transactions 20,032 $200,835
====== --------
Net increase in net assets $199,933
Net Assets:
Beginning of period
(initial capitalization -
10,000 shares) 100,000
--------
End of period $299,933
========
The accompanying notes are an integral part of these financial statements
37
<PAGE>
America Income Portfolio
Financial Highlights
Selected Data for a Share Outstanding for the Period
March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- -------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.00
--------
Increase from investment operations:
Net investment income $ 0.14
Net realized and unrealized loss on investments (0.01)
--------
Total increase from investment operations $ 0.13
Distributions to shareholders from:
Net investment income (0.14)
--------
Net increase in net asset value $ (0.01)
--------
Net asset value, end of period $ 9.99
========
Total return* 1.29%
Ratio of net operating expenses to average net assets 0.98%**
Ratio of net investment income to average net assets 4.39%**
Portfolio turnover rate --
Net assets, end of period (in thousands) $ 300
Ratios assuming no waiver of fees or
assumption of expenses:
Net operating expenses 106.00 **
Net investment loss (100.63%)**
* 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 period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
38
<PAGE>
Money Market Portfolio
Schedule of Investments - June 30, 1995 (Unaudited)
- -------------------------------------------------------------------------------
Principal
Amount Value
- -------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 100.0%
$ 25,000 Federal Farm Credit Bank, 5.97% 7/26/95 24,905
50,000 Federal Home Loan Bank, 5.90%, 7/17/95 49,885
60,000 Federal Home Loan Mortgage Corp., 5.89%, 7/20/95 59,833
125,000 Federal National Mortgage Association,
5.88%, 7/6/95 124,939
-------
TOTAL INVESTMENT IN SECURITIES 259,562
=======
The accompanying notes are an integral part of these financial statements.
39
<PAGE>
Money Market Portfolio
Balance Sheet
June 30, 1995
(Unaudited)
- -------------------------------------------------------------------------------
Assets:
Investment in securities, at value based on
amortized cost (see Schedule of Investments
and Note 1) $259,562
Cash 307,124
Due from Pioneering Management Corporation (Note 2) 25,579
Other 504
--------
Total assets $592,769
--------
Liabilities:
Accrued expenses (Notes 2 and 3) $ 26,525
--------
Total liabilities $ 26,525
--------
Net Assets:
Trust shares (unlimited number of shares authorized),
amount paid in on 566,244 shares outstanding $566,244
--------
Total net assets (offering and redemption price
of $1.00 per share) $566,244
========
The accompanying notes are an integral part of these financial statements.
40
<PAGE>
Money Market Portfolio
Statement of Operations
For the Period from March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
Investment Income (Note 1):
Interest $ 5,982
-------
Expenses:
Management fees (Note 2) $ 464
Transfer agent fees (Note 3) 496
Registration fees 372
Professional fees 9,920
Accounting (Note 2) 11,904
Custodian fees 3,472
Printing 372
Fees and expenses of nonaffliated trustees 1,736
Miscellaneous 2,356
-------
Total expenses $31,092
Less management fees waived and expenses
assumed by Pioneering Management
Corporation (Note 2) 30,436
-------
Net expenses $ 656
-------
Net investment income $ 5,326
-------
Net increase in net assets
resulting from operations $ 5,326
=======
The accompanying notes are an integral part of these financial statements.
41
<PAGE>
Money Market Portfolio
Statement of Changes in Net Assets
For the Period from March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- -------------------------------------------------------------------------------
From Operations:
Net investment income $ 5,326
----------
Net increase in net assets resulting from $ 5,326
----------
Distributions to Shareholders From:
Net investment income ($0.02 per share) $ (5,326)
----------
From Trust Share Transactions (at $1.00 per share):
Net proceeds from sale of shares $1,441,001
Net asset value of shares issued to
shareholders in reinvestment
of dividends 5,326
Cost of shares repurchased (980,083)
----------
Net increase in net assets
resulting from trust share
transactions $ 466,244
----------
Net increase in net assets $ 466,244
Net Assets:
Beginning of period
(initial capitalization -
100,000 shares) 100,000
----------
End of period $ 566,244
=========
The accompanying notes are an integral part of these financial statements.
42
<PAGE>
Money Market Portfolio
Financial Highlights
Selected Data for a Share Outstanding for the Period
March 1, 1995 (Commencement of Operations) to June 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00
------
Increase from investment operations:
Net investment income $ 0.02
Distributions to shareholders from:
Net investment income (0.02)
------
Net increase in net asset value $ --
------
Net asset value, end of period $ 1.00
======
Total return* 1.81%
Ratio of net operating expenses to average ne 0.71%**
Ratio of net investment income to average n 5.78%**
Net assets, end of period (in thousands) $ 566
Ratios assuming no waiver of fees or
assumption of expenses:
Net operating expenses 33.76%**
Net investment loss (27.27)**
* 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 period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
43
<PAGE>
Notes to Financial Statements - June 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
1. Pioneer Variable Contracts Trust (the Trust) is a Delaware business trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management company. The Trust consists of seven separate portfolios
(collectively, the Portfolios): International Growth Portfolio, Capital Growth
Portfolio, Real Estate Growth Portfolio, Equity-Income Portfolio, Balanced
Portfolio, America Income Portfolio and Money Market Portfolio. The Trust was
organized on February 6, 1995 and commenced operations on March 1, 1995. Prior
to March 1, 1995, the Trust had no operations other than those relating to
organizational matters and the initial capitalization of the Trust by The
Pioneer Group, Inc. (PGI). On February 6, 1995, the Trust was initially
capitalized in the amount of $140,000. Subsequent to February 6, 1995, PGI
contributed an additional $710,000 as part of the initial capitalization. Shares
of each Portfolio may be only purchased by insurance companies for the purpose
of funding variable annuity or variable life insurance contracts.
The following is a summary of significant accounting policies consistently
followed by the Trust, 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, equity 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. Trading in foreign
equity securities is substantially completed each day at various times prior to
the close of the New York Stock Exchange. The value of such securities used in
computing the net asset value of the Portfolio's shares are determined as of
such times.
Taxable and non-taxable fixed income securities are valued based on
valuations furnished by an independent pricing service that utilizes a matrix
system. This matrix system reflects such factors as security prices, yields,
maturities and ratings, and is supplemented by dealer and exchange quotations
and fair market value information from other sources. Market discount is
accreted daily on a straight-line basis.
Securities for which market quotations are not available will be valued at
their fair market value as determined by, or under the direction of, the Board
of Trustees. Temporary cash investments are valued at cost plus accrued
interest, which approximates market value. Dividend income is recorded on the
ex-dividend date, except certain dividends from foreign securities where the
ex-dividend date may have passed are recorded as soon as the Portfolios are
informed of the ex-dividend date. Interest income is recorded on the accrual
basis. Interest income for foreign securities is recorded on the accrual basis
net of unrecoverable foreign taxes withheld at the applicable country rates.
Gains and losses from sales on investments are calculated on the "identified
cost" method for both financial reporting and federal income tax purposes. It is
the Trust's practice to first select for sale those securities which have the
highest cost and also qualify for long-term capital gain or loss treatment for
tax purposes. In addition, net realized gains on securities in certain countries
give rise to capital gains taxes. It is the Trust's policy to provide a reserve
against net unrealized gains for capital gains taxes on certain foreign
securities held by the Trust. During the six months ended June 30, 1995, no
capital gains taxes realized on the sale of certain foreign securities were
paid.
B. Foreign Currency Translation - The books and records of Portfolios are
maintained in U.S. dollars. Amounts denominated in foreign currencies are
translated into U.S. dollars using current exchange rates (see Note 4).
C. Forward Foreign Currency Contracts - Certain Portfolios are authorized to
enter into forward foreign currency contracts (contracts) for the purchase or
sale of a specific foreign currency at a fixed price on a future date as a hedge
or cross-hedge against either specific investment transactions (settlement
hedges) or portfolio positions (portfolio hedges). All contracts are marked to
market daily at the applicable translation rates, and any resulting unrealized
gains or losses are recorded in the Portfolios' financial statements. The
Portfolios record realized gains and losses at the time a portfolio hedge is
offset by entry into a closing transaction or extinguished by delivery of the
currency. Risks may arise upon entering into these contracts from the potential
inability of counterparties to meet the terms of the contract and from
unanticipated movements in the value of foreign currencies relative to the U.S.
dollar. As of June 30, 1995, the Portfolios had no outstanding hedge contracts.
44
<PAGE>
Notes to Financial Statements - June 30, 1995 (Unaudited) - Continued
- --------------------------------------------------------------------------------
D. Federal Taxes - It is the Trust'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
the separate accounts of participating insurance companies. Therefore, no
federal income tax provisions are required.
The characterization of distributions to shareholders for financial reporting
purposes is determined in accordance with income tax rules. Therefore, the
source of each Portfolio'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 capital, depending on the type
of book/tax differences that may exist.
E. Trust Shares - The Portfolios record sales and repurchases of its trust
shares on the trade date. Net losses, if any, as a result of cancellations are
absorbed by Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for
the Fund and an indirect subsidiary of The Pioneer Group, Inc. (PGI). Dividends
and distributions to shareholders are recorded as of the ex-dividend date.
The America Income Portfolio and Money Market Portfolio declare as daily
dividends substantially all of their respective net investment income. All
dividends are paid on the last business day of the month. Short-term capital
gain distributions, if any, may be paid with the daily dividends.
F. Repurchase Agreements - Each Portfolio may enter into repurchase agreements.
At the time the Portfolio enters into a repurchase agreement, the value of the
underlying security (collateral), including accrued interest, will be equal to
or exceed the value of the repurchase agreement, and in the case of repurchase
agreements exceeding one day, the value of the underlying security, including
accrued interest, is required during the term of the agreement to be equal to or
exceed the value of the repurchase agreement. The underlying securities for all
repurchase agreements are held in safekeeping in the customer-only account of
the Trust's custodian, or at the Federal Reserve Bank. If the seller defaults
and the value of the collateral declines, or if bankruptcy proceedings commence
with respect to the seller of the security, realization of the collateral by the
Trust may be delayed or limited.
2. With the exception of Real Estate Growth Portfolio, Pioneering Management
Corporation (PMC) is the Portfolios' investment adviser, manages the Portfolios,
and is a wholly owned subsidiary of PGI. Management fees are calculated at the
following annual rate:
Management Fee as a percentage
of Portfolio's average daily
Portfolio net assets
- -------------------------------------------------------------------------------
International Growth Portfolio 1.00%
Capital Growth Portfolio 0.65%
Equity-Income Portfolio 0.65%
Balanced Portfolio 0.65%
America Income Portfolio 0.55%
Money Market Portfolio 0.50%
PMC has agreed to waive its management fees and to assume other operating
expenses for the Portfolios, except Real Estate Growth Portfolio, to the extent
necessary to limit expenses of the Portfolios to the following percentage of
average daily net assets:
45
<PAGE>
Notes to Financial Statements- June 30, 1995 (Unaudited) - Continued
- -------------------------------------------------------------------------------
Expense Limitation as a
Percentage of Portfolio's
Portfolio Average Daily Net Assets
- -------------------------------------------------------------------------------
International Growth Portfolio 2.00%
Capital Growth Portfolio 1.75%
Equity-Income Portfolio 1.75%
Balanced Portfolio 1.75%
America Income Portfolio 1.00%
Money Market Portfolio 0.75%
PMC's agreement to waive its management fees and to assume certain expenses
of the Portfolios is temporary and voluntary and may be revised or terminated at
any time.
Pioneer Winthrop Advisers (PWA), a joint venture between PGI and Winthrop
Financial Associates (WFA), serves as investment adviser to the Real Estate
Growth Portfolio and is responsible for the overall management of the
Portfolio's business affairs, subject only to the authority of the Trustees. All
of the Portfolio's investment decisions are made by PWA's advisory committee,
which relies on investment subadvisory services provided by PMC and by Winthrop
Advisors Limited Partnership (WALP) pursuant to their investment subadvisory
contracts with the Portfolio. As compensation for its investment advisory
services and certain expenses which it incurs, PWA is entitled to a management
fee equal to 1.00% per annum of the Portfolio's average daily net assets.
PWA has agreed to waive its management fees and to assume other operating
expenses of the Real Estate Growth Portfolio to the extent necessary to limit
Portfolio's expenses to 1.75% of the Portfolio's average daily net assets.
In addition, under the management agreements, certain other services and
costs, including accounting, regulatory reporting and insurance premiums, are
paid by the Portfolios. Included in Accrued expenses are accounting fees payable
to PMC or PWA at June 30, 1995.
Portfolio Amount
- --------------------------------------------------------------------------------
International Growth Portfolio $ 19,402
Capital Growth Portfolio 10,119
Real Estate Growth Portfolio 6,555
Equity-Income Portfolio 10,257
Balanced Portfolio 10,119
America Income Portfolio 14,136
Money Market Portfolio 10,407
On July 17, 1995, the Real Estate Growth Portfolio's management contract with
PWA and subadvisory contracts with WALP and PMC terminated as a result of the
sale by Nomura Securities Co., Ltd. of its interest in the parent company of
WALP. PMC, which had served as the Fund's co-investment subadviser since
inception, has served as the Portfolio's investment adviser pursuant to an
interim management contract since July 17, 1995.
3. PSC, a wholly owned subsidiary of PGI, provides transfer agent and
shareholder services to the Trust at negotiated rates. Included in Accrued
expenses are transfer agent fees payable to PSC at June 30, 1995:
Portfolio Amount
- -------------------------------------------------------------------------------
International Growth Portfolio $ 484
Capital Growth Portfolio 484
Real Estate Growth Portfolio 488
Equity-Income Portfolio 488
Balanced Portfolio 484
America Income Portfolio 484
Money Market Portfolio 496
46
<PAGE>
Notes to Financial Statements - June 30, 1995 (Unaudited) - Continued
- -------------------------------------------------------------------------------
4. In accordance with Statement of Position 93-4 (SOP 93-4): Foreign Currency
Accounting and Financial Statement Presentation for Investment Companies, net
realized gains and losses on forward foreign currency transactions and other
assets and liabilities denominated in foreign currencies represent, among other
things, the net realized gains and losses on foreign currency contracts,
disposition of foreign currencies and the difference between the amount of
income accrued and the U.S. dollar amount actually received. Further, as
permitted under SOP 93-4, the effects of changes in foreign currency exchange
rates on investments in securities are not segregated in the Statement of
Operations from the effects of changes in market price of those securities but
are included with the net realized and unrealized gain or loss on securities.
47
<PAGE>
PIONEER VISION
VARIABLE ANNUITY
PIONEER VARIABLE CONTRACTS TRUST
Officers
John F. Cogan, Jr., Chairman and President
David D. Tripple, Executive Vice President
William H. Keough, Treasurer
Joseph P. Barri, Secretary
Stephen G. Kasnet, Vice President
Trustees
John F. Cogan, Jr.
Richard H. Egdahl, M.D.
Marguerite A. Piret
David D. Tripple
Stephen K. West
Investment Adviser
Pioneering Management Corporation
Custodian
Brown Brothers Harriman & Co.
Legal Counsel
Hale and Dorr
Independent Public Accountants
Arthur Andersen LLP
Issuer
SMA Life Assurance Company, Policy Form A3023-95
In New York and Hawaii, issued by State Mutual Life Assurance Company of
America, Policy Form A3023-95 GRC.
General Distributor
Allmerica Investments, Inc.
440 Lincoln Street
Worcester, MA 01653
Pioneer Vision may not be available in all states.
This report must be preceded or accompanied by a prospectus for Pioneer Vision
variable annuity, which includes more information about charges and expenses.
Please read the prospectus carefully before you invest or send money.
0895-2680
(C) Pioneer Funds Distributor, Inc.
