March 11, 1996
SUPPLEMENT TO THE PROSPECTUS OF
PIONEER VARIABLE CONTRACTS TRUST
REAL ESTATE GROWTH PORTFOLIO
dated March 1, 1995 (revised November 1, 1995)
At a Special Meeting of Shareholders held on March 5, 1996, Boston
Financial Securities, Inc. ("BFS") was approved by Shareholders as the
Portfolio's subadviser with regard to the real estate industry. Pioneering
Management Corporation ("PMC"), as the Portfolio's investment adviser, will act
on the advice provided by BFS. The following information supplements the
corresponding section of the Prospectus. Please consult the Prospectus for the
full text of the section.
THE FUND AND THE PIONEER ORGANIZATION
Real Estate Growth Portfolio Subadviser. BFS is an affiliate of the
Boston Financial Group Limited Partnership, a Massachusetts limited partnership
("Boston Financial"), which together with a predecessor has extensive experience
and expertise in placing, evaluating and providing advice on a variety of real
estate related investments since 1969 for individuals, institutions and real
estate professionals. Several other affiliates of BFS also provide a variety of
financial, consulting and management services to real estate investors and
developers. As one of the largest real estate asset managers in the U.S., Boston
Financial oversees investment in over $5.5 billion of properties in 49 states.
The company serves over 37,000 investors with equity contributions in excess of
$1.7 billion in real estate investments. In its capacity as subadviser to the
Portfolio, BFS (i) identifies and analyzes real estate industry companies,
including real estate properties and other permissible investments for the
Portfolio, (ii) analyzes market conditions affecting the real estate industry
generally and specific geographical and securities markets in which the
Portfolio may invest or is invested, (iii) continuously reviews and analyzes the
investments in the Portfolio's portfolio and (iv) furnishes advisory reports
based on such analysis to PMC.
Mr. Fred N. Pratt, Jr. has the ultimate responsibility for overseeing
the provisions of subadvisory services to the Portfolio. Mr. Pratt is President
and Chief Executive officer of Boston Financial, a Director of BFS and a Trustee
of the Portfolio. Mr. Pratt has worked in the real estate industry since 1969.
Mr. David Carter, a Vice President of BFS, has been primarily responsible for
the day-to-day provision of subadvisory services to the Portfolio since March 6,
1996. Mr. Carter has worked as a real estate analyst since 1992.
FUND MANAGEMENT FEES AND OTHER EXPENSES
Real Estate Growth Subadvisory Fee. As compensation for its subadvisory
services, PMC will pay BFS a subadvisory fee equal to 0.30% per annum of the
Portfolio's average daily net assets. After written notice to BFS, the
subadvisory fee payable by PMC to BFS would be reduced proportionally to the
extent that the net management fee earned by PMC is reduced for any reason,
including the application of PMC's voluntary expense limitation agreement.
The executive offices of BFS are located at 101 Arch Street, Boston,
Massachusetts 02110. BFS has not previously served as an investment adviser or
subadviser to a registered investment company, however, on March 5, 1996, at a
Special Meeting of the Shareholders, BFS was approved as the investment
subadviser to Pioneer Real Estate Shares.
0396-3218
(C) Pioneer Funds Distributor, Inc.
<PAGE>
March 11, 1996
SUPPLEMENT TO THE
STATEMENT OF ADDITIONAL INFORMATION OF
PIONEER VARIABLE CONTRACTS TRUST
REAL ESTATE GROWTH PORTFOLIO
dated March 1, 1995 (revised November 1, 1995)
At a Special Meeting of Shareholders held on March 5, 1996, Boston
Financial Securities, Inc. ("BFS") was approved by Shareholders as the
Portfolio's subadviser with regard to the real estate industry. Pioneering
Management Corporation ("PMC"), as the Portfolio's investment adviser, will act
on the advice provided by BFS. The following information supplements the
corresponding section of the Statement of Additional Information. Please consult
the Statement of Additional Information for the full text of the section.
MANAGEMENT OF THE TRUST
Mr. Fred N. Pratt, Jr., Vice President, Date of Birth: December 1944
Boston Financial, 101 Arch Street, Boston, Massachusetts 02110
President and Chief Executive officer of Boston Financial, Director of
BFS, Trustee of Pioneer Real Estate Shares.
INVESTMENT ADVISER
Real Estate Growth Portfolio Subadviser. Boston Financial Securities, Inc.
("BFS"), 101 Arch Street, Boston, Massachusetts, serves as the Portfolio's
subadviser. The subadvisory agreement among the Portfolio, PMC and BFS expires
on May 31, 1997 but is renewable annually after such date by the vote of a
majority of the Board of Trustees of the Portfolio (including a majority of the
Board of Trustees who are not parties to the contract of interested persons of
any such parties) cast in person at a meeting called for the purpose of voting
on such renewal. This contract terminates if assigned may be terminated with
penalty by either party by vote of its Board of Directors or Trustees or a
majority of its outstanding voting securities and the giving of 60 days' written
notice.
As compensation for its subadvisory services, PMC will pay BFS a
subadvisory fee equal to 0.30% per annum of the Portfolio's average daily net
assets. The fee is normally computed daily and paid monthly. After written
notice to BFS, the subadvisory fee payable by PMC to BFS will be reduced
proportionally to the extent that the net management fee earned by PMC is
reduced for any reason, including PMC's voluntary expense limitation agreement.
As of December 31, 1995, the following individuals owned beneficially
more than 10% of the outstanding common stock of BFS: Randolph G Hawthorne
(10.53%), Fred N. Pratt, Jr. (12.17%), William B Haynsworth (10.96%), Alvin H.
Howell (11.29%). The address for each of these individuals is BFS, 101 Arch
Street, Boston, Massachusetts 02110.
0396-3218-SAI
(C) Pioneer Funds Distributor, Inc.
