December 28, 1998
Supplement to Prospectus for
Pioneer Variable Contracts Trust
Dated May 1, 1998
The following information supplements, or replaces, the corresponding section of
the Prospectus. Please consult the Prospectus for the full text of the revised
section.
INVESTMENT OBJECTIVES AND POLICIES
The Investment Company Act of 1940 (the "1940 Act") requires that the Portfolio
segregate assets in connection with certain types of transactions. If the
Portfolio enters into a transaction requiring segregation, the custodian or
Pioneer Investment Management, Inc. ("Pioneer Investments") will segregate
liquid assets in an amount required to comply with the 1940 Act. Such segregated
assets will be valued at market daily. If the aggregate value of such segregated
assets declines below the aggregate value required to satisfy the 1940 Act,
additional liquid assets will be segregated.
BALANCED PORTFOLIO. The second and third sentences of the second paragraph are
replaced by the following:
Normally, Portfolio assets allocated to bonds (35% to 65% of total assets) will
be invested in (1) investment grade debt securities (those rated "BBB" or higher
by Standard & Poor's Ratings Group or the equivalent by other ratings agencies),
(2) commercial paper of comparable quality and (3) U.S. Government Securities,
GNMA Certificates and CMOs. No more than 10% of the Portfolio's total assets may
be invested in below investment grade debt securities.
MANAGEMENT OF THE TRUST
Mr. Russ and Mr. Taubes are jointly responsible for overseeing Pioneer
Investments' U.S. and global fixed income team. Mr. Russ is a senior vice
president of Pioneer Investments. He joined Pioneer Investments in 1983 and has
been an investment professional since 1962. Mr. Taubes joined Pioneer
Investments as a senior vice president in September 1998 and has been an
investment professional since 1986. Prior to joining Pioneer Investments, Mr.
Taubes had served since 1991 as a senior vice president and senior portfolio
manager for several Putnam institutional accounts and mutual funds.
AMERICA INCOME PORTFOLIO. As of December 2, 1998, day-to-day management of the
Portfolio is the responsibility of a team of fixed income portfolio managers and
analysts supervised by Sherman B. Russ and Kenneth J. Taubes.
1298-5966
(C) Pioneer Funds Distributor, Inc.
