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PIONEER VISION-SM-
PIONEER VISION 2-SM-
PIONEER C-VISION-SM-
VARIABLE ANNUITY
PIONEER VARIABLE CONTRACTS TRUST
Emerging Markets Portfolio
Europe Portfolio
International Growth Portfolio
Capital Growth Portfolio
Growth Shares Portfolio
Real Estate Growth Portfolio
Growth and Income Portfolio
Equity-Income Portfolio
Balanced Portfolio
Swiss Franc Bond Portfolio
America Income Portfolio
Money Market Portfolio
SEMIANNUAL REPORT
JUNE 30, 1999
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
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TABLE OF CONTENTS
Emerging Markets Portfolio
Portfolio and Performance Update 2
Portfolio Management Discussion 3
Europe Portfolio
Portfolio and Performance Update 4
Portfolio Management Discussion 5
International Growth Portfolio
Portfolio and Performance Update 6
Portfolio Management Discussion 7
Capital Growth Portfolio
Portfolio and Performance Update 8
Portfolio Management Discussion 9
Growth Shares Portfolio
Portfolio and Performance Update 10
Portfolio Management Discussion 11
Real Estate Growth Portfolio
Portfolio and Performance Update 12
Portfolio Management Discussion 13
Growth and Income Portfolio
Portfolio and Performance Update 14
Portfolio Management Discussion 15
Equity-Income Portfolio
Portfolio and Performance Update 16
Portfolio Management Discussion 17
Balanced Portfolio
Portfolio and Performance Update 18
Portfolio Management Discussion 19
Swiss Franc Bond Portfolio
Portfolio and Performance Update 20
Portfolio Management Discussion 21
America Income Portfolio
Portfolio and Performance Update 22
Portfolio Management Discussion 23
Money Market Portfolio
Portfolio Management Discussion 24
Schedules of Investments
Emerging Markets Portfolio 25
Europe Portfolio 28
International Growth Portfolio 31
Capital Growth Portfolio 34
Growth Shares Portfolio 37
Real Estate Growth Portfolio 39
Growth and Income Portfolio 40
Equity-Income Portfolio 44
Balanced Portfolio 47
Swiss Franc Bond Portfolio 51
America Income Portfolio 53
Money Market Portfolio 54
Financial Statements 55
Notes to Financial Statements 72
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
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LETTER FROM THE CHAIRMAN 6/30/99
- --------------------------------------------------------------------------------
DEAR CONTRACT OWNER,
I am pleased to introduce this semiannual report for Pioneer Variable Contracts
Trust, covering the six months ended June 30, 1999. On behalf of your investment
team, I thank you for your interest and this opportunity to comment on today's
investing environment.
With six months left in the twentieth century, it was refreshing to see the
stock market broadening once again. Smaller-company stocks handily outperformed
large-company stocks in the most recent quarter. Real estate investment trusts
(REITs) returned to investors' radar screens and value stocks outperformed
growth in the Standard & Poor's 500 over the last six months.
The change is, I believe, an indication of the inherent good sense of the open
marketplace. The large "blue chip" stocks that have dominated the marketplace
for several years have reached such high price levels that many investors are
beginning to look elsewhere for opportunities. What they're seeing is a variety
of stocks with strong fundamentals, low prices and, we believe, some real
potential. The market shift reminds us that the 1990s have not remade investing
completely, and that no sector of the market is ready for the moniker of "sure
thing."
Overseas, many of the stock markets that languished with the "Asian flu" have
shown signs of recovery. Emerging markets particularly benefited from a strong
dose of fiscal responsibility on the part of both governments and corporations,
as well as higher investor tolerance for risk. Stronger economic growth numbers
posted by several emerging market nations, so far this year, lent credence to
those countries bid for a comeback. The numbers tell the story as emerging
markets (represented by the 39.87% return of the Morgan Stanley Capital
International (MSCI) Emerging Markets Free Index) left the more established U.S.
and European stock markets far behind for the six months ended June 30. The
Standard and Poor's 500 Index, a broad-based representation of the U.S. stock
market returned 12.38% and the MSCI Europe declined -2.41%.
Bonds continued to slump as an environment of higher interest rate fears and
investors' greater tolerance for risk drove bond prices down and yields up. The
yield on the benchmark 30-year Treasury bond was up to 5.97% by period end
compared to 5.09% at the beginning of the year. To blame was a strong economy
and the Federal Reserve's pledge to cut inflation off at the knees with rate
hikes -- which culminated in a 0.25 point hike in short-term interest rates in
late June.
Six months from the new year and a new era, we are reminded of investing's
oldest lesson: Diversification benefits long-term investors. This truism is also
known as not putting all your eggs in one basket. Pioneer Variable Contracts
Trust provides a wide variety of investment products -- from the conservative
Money Market Portfolio to the potentially volatile and rewarding Emerging
Markets Portfolio.
I encourage you to read on to learn more about Pioneer Variable Contracts Trust
to see how its spectrum of investment opportunities may help you reach your
long-term investing goals. We've recently added to your diversification
opportunities with Strategic Income Portfolio. This new portfolio combines
high-yield and investment-grade bonds from the United States and around the
world in pursuit of high potential income and lower overall volatility than
high-yield bonds or stocks. If you have further questions, please contact your
investment professional.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
EMERGING MARKETS PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO AND PERFORMANCE UPDATED 6/30/99
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PORTFOLIO DIVERSIFICATION
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
International Common Stocks 67.9%
International Preferred Stocks 3.4%
Depositary Receipts for
International Stocks 28.5%
Warrants 0.2%
</TABLE>
GEOGRAPHICAL DISTRIBUTION
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Asia 53%
Latin America 25%
Israel 7%
Europe 7%
Africa 4%
Other 4%
</TABLE>
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FIVE LARGEST HOLDINGS
(As a percentage of equity holdings)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
1. PT Astra International Tbk 2.36%
2. PT Modern Photo Tbk (Local Shares) 2.30
3. Grupo Carso Global Telecom 2.13
4. Development Bank of Singapore Ltd. 2.01
5. PT Komatsu Indonesia Tbk (Local Shares) 2.00
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
<TABLE>
<CAPTION>
6/30/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $14.12 $10.49
Accumulation Unit Value 1.3988 1.0465
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
$ - $ - $ -
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE OF A $10,000 INVESTMENT
The following chart shows the value of an investment made in EMERGING MARKETS
PORTFOLIO at net asset value, compared to the growth of MSCI EAFE Index.
<TABLE>
<CAPTION>
Emerging Markets MSCI Emerging
Portfolio* Markets Free Index
<S> <C> <C>
10/98 $10,000 $10,000
11/98 $10,510 $10,832
12/98 $10,490 $10,675
1/99 $10,170 $10,503
2/99 $10,050 $10,605
3/99 $10,990 $12,003
4/99 $12,550 $13,487
5/99 $12,620 $13,409
6/99 $14,120 $14,931
</TABLE>
The Morgan Stanley Capital International (MSCI) Emerging Markets Free Index is
an unmanaged, capitalization-weighted measure of 1,009 securities trading in 25
emerging markets; it reflects only those securities available to foreign
investors. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Portfolio returns, do not reflect any fees or expenses.
Portfolio returns are based on net asset value and do not reflect any
annuity-related costs. You cannot invest directly in the Index.
<TABLE>
<CAPTION>
CUMULATIVE TOTAL RETURNS
(As of June 30, 1999)
<S> <C> <C>
- --------------------------------------------------------------------------------
NET ASSET VALUE*
- --------------------------------------------------------------------------------
PERIOD
Life-of-Portfolio
(10/30/98) 41.20%
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE PIONEER C-VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(10/30/98) 39.88% 39.88%
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE PIONEER VISION 2
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(10/30/98) 39.88% 32.88%
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ACCUMULATION UNIT VALUE PIONEER VISION
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IF IF
PERIOD HELD** SURRENDERED***
Life
(10/30/98) 39.88% 32.88%
</TABLE>
All total returns shown assume reinvestment of distributions at net asset value.
* Reflects Portfolio performance only. Does not reflect any applicable
insurance fees or surrender charges.
** Reflects deduction of a 1.25% mortality and expense risk charge and a 0.15%
administrative expense charge. Does not reflect any applicable surrender
charges.
*** Reflects deduction of a 1.25% mortality and expense risk charge, a 0.15%
administrative expense charge and the applicable contingent deferred sales
charge (CDSC), as if the contract were surrendered at the end of each
period. There is no CDSC for C-Vision. For Vision and Vision 2, the maximum
CDSC of 7% declines over seven years; it is deducted only while the contract
is in the surrender charge period. Returns do not reflect a $30 annual
contract fee applied only until contract value reaches $50,000 ($35 and
$75,000 for C-Vision).
2 Past performance does not guarantee future results. Returns and share prices
fluctuate so that your investment, when redeemed, may be worth more or less
than its original cost.
<PAGE>
EMERGING MARKETS PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/99
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Emerging markets posted decisive gains during the six months ended June 30, 1999
- -- two years after the onset of Asia's economic crisis. What's particularly
reassuring is the fact that the correction is widespread, with the most
politically and economically challenged countries delivering the most dramatic
returns over the last six months. The following discussion with Mark H. Madden,
who leads your Portfolio's investment team, explains the factors and events that
influenced their strategy and the Portfolio's performance.
Q: DID THE PORTFOLIO BENEFIT FROM THE RALLY?
A: Yes, it was a very successful period. The Portfolio posted a total return of
34.60% at net asset value. A timely decision to increase holdings in Brazil
and Indonesia helped the portfolio outpace the 33.90% average annual total
return for the 23 variable annuity emerging markets underlying funds tracked
by Lipper, Inc. (Lipper is an independent firm that tracks annuity portfolio
performance.)
Q: WHAT ACCOUNTS FOR INVESTORS' RENEWED CONFIDENCE IN THESE MARKETS?
A: Investors, sensing a genuine turnaround in the fortunes of emerging markets,
have made a wholesale shift back into emerging markets. The trigger is the
growing belief that the worst of the crisis is over, with Asian countries
making a long-term commitment to reform and restructuring their way to a
recovery. While we are upbeat about recent headway, we are alert to the risks
of investing in emerging markets, including, among others, currency
fluctuations and social and economic instability.
Q: WHY DID BRAZIL PERFORM SO WELL?
A: After devaluing its currency -- the real -- in January, Brazil continued to
surprise observers with its resilience and ability to manage through a severe
recession. Gross domestic product grew a higher-than-expected 1% in the first
quarter, helped in large part by the agricultural sector. A weaker currency
made Brazil's exports more competitive in the world economy. Local interest
rates declined, and inflation remained in check. Anticipating only modest
inflation as opposed to a resurgence of "hyper-inflation," we began adding to
holdings in early March -- focusing investments in telecommunications and
banking. Portfolio holdings TELE SUDESTE CELULAR PARTICIPACOES and UNIAO DE
BANCOS BRASILEIROS both rose more than 50%.
Q: HOW DID THE PORTFOLIO BENEFIT FROM ASIA'S RALLY?
A: Seeing stocks in Asia at 10-year low valuation and price levels, we began to
reposition the Portfolio's allocation to certain Asian markets early in the
period. We trimmed holdings in South Korea and Thailand, which were further
along in their reform efforts and had already achieved large gains in stock
prices. We reallocated assets to Indonesia, Malaysia and the Philippines.
Crippled by political and economic instability for some time, these three
countries are beginning to show strong promise. Our decision proved
fortuitous, for these same countries delivered some of the best performance
for the latter half of the period. On June 30, Pacific Rim holdings
represented 53% of equity assets.
Indonesia was the best performing market, climbing 122% in U.S. dollar terms
over the last three months. Its currency appreciated and its gross domestic
product is recovering. TELEKOMUNIKASI INDONESIA, one of the Portfolio's
holdings, is a fixed-line telecommunications operator benefiting from the
expectations of an improving economy and stronger consumer confidence.
Q: WHAT'S IN STORE FOR THE REST OF 1999?
A: To their credit, many emerging nations have made great strides in stabilizing
their economies. However, governments must continue to press the private
sector for further reform to boost the chances of full recovery. Equally
important is the fundamental shift in investors' outlook. In 1998, investors
were defensive -- refusing to buy stocks regardless of their bargain prices.
Today, investors appear ready to take limited risk. Sentiment has clearly
turned and stock prices in emerging markets should benefit.
- --------------------------------------------------------------------------------
International investing may involve special risks, including differences in
accounting and currency, as well as economic and political instability. These
risks may be magnified in emerging markets.
The Portfolio's investment adviser, Pioneer Invest-ment Management, Inc.,
reduced its management fee and certain other expenses; otherwise, returns would
have been lower.
3
<PAGE>
EUROPE PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO AND PERFORMANCE UPDATE 6/30/99
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PORTFOLIO DIVERSIFICATION
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
International Common Stocks 86%
Short-Term Cash Equivalents 7%
Depositary Receipts for
International Stocks 5%
International Preferred Stocks 1%
U.S. Common Stocks 1%
</TABLE>
GEOGRAPHICAL DISTRIBUTION
(As a percentage of equity holdings)
<TABLE>
<S> <C>
United Kingdom 28%
France 17%
Switzerland 11%
Germany 10%
Italy 9%
Netherlands 8%
Spain 6%
Finland 4%
Sweden 3%
Other 4%
</TABLE>
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FIVE LARGEST HOLDINGS
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Sidel, SA (Bearer Shares) 3.60%
2. Mannesman AG 2.10
3. Shell Transport & Trading Co. 1.99
4. Getronics NV 1.75
5. Hoechst AG 1.74
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
<TABLE>
<CAPTION>
6/30/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $10.42 $10.60
Accumulation Unit Value 1.0329 1.0575
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
$ - $0.006 $ -
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE OF A $10,000 INVESTMENT
The following chart shows the value of an investment made in EUROPE PORTFOLIO at
net asset value, compared to the growth of MSCI Europe Index.
<TABLE>
<CAPTION>
Europe Portfolio* MSCI Europe Index
<S> <C> <C>
10/98 $10,000 $10,000
$10,150 $10,532
12/98 $10,600 $10,992
$10,750 $10,922
$10,260 $10,644
3/99 $10,220 $10,761
$10,480 $11,081
$10,180 $10,549
6/99 $10,426 $10,728
</TABLE>
The Morgan Stanley Capital International (MSCI) Europe Index is a
capitalization-weighted index of 15 European Country indexes included in the
MSCI EAFE (Europe, Australasia, Far East) Index. The countries are: Austria,
Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway,
Portugal, Spain, Sweden, Switzerland and the United Kingdom. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Portfolio
returns, do not reflect any fees or expenses. Portfolio returns are based on net
asset value and do not reflect any annuity-related costs. You cannot invest
directly in the Index.
<TABLE>
<CAPTION>
CUMULATIVE
TOTAL RETURNS
(As of June 30, 1999)
<S> <C> <C>
- --------------------------------------------------------------------------------
NET ASSET VALUE*
- --------------------------------------------------------------------------------
PERIOD
Life-of-Portfolio
(10/30/98) 4.26%
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER C-VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(10/30/98) 3.29% 3.29%
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION 2
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(10/30/98) 3.29% -2.85%
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(10/30/98) 3.29% -3.21%
</TABLE>
All total returns shown assume reinvestment of distributions at net asset value.
* Reflects Portfolio performance only. Does not reflect any applicable
insurance fees or surrender charges.
** Reflects deduction of a 1.25% mortality and expense risk charge and a 0.15%
administrative expense charge. Does not reflect any applicable surrender
charges.
*** Reflects deduction of a 1.25% mortality and expense risk charge, a 0.15%
administrative expense charge and the applicable contingent deferred sales
charge (CDSC), as if the contract were surrendered at the end of each
period. There is no CDSC for C-Vision. For Vision and Vision 2, the maximum
CDSC of 7% declines over seven years; it is deducted only while the contract
is in the surrender charge period. Returns do not reflect a $30 annual
contract fee applied only until contract value reaches $50,000 ($35 and
$75,000 for C-Vision).
4 Past performance does not guarantee future results. Returns and share prices
fluctuate so that your investment, when redeemed, may be worth more or less
than its original cost.
<PAGE>
EUROPE PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/99
- --------------------------------------------------------------------------------
We are pleased to provide this semiannual report for Europe Portfolio, which
covers the six months ended June 30, 1999. Europe's economies are still
languishing, leading many of the sectors in which your Portfolio invests
- -service, pharmaceuticals and insurance -- to deliver lackluster performance.
Reflecting this, the Portfolio generated a total return at net asset value of
- -1.64% -- slightly better than the Morgan Stanley Capital International (MSCI)
Europe Index, which returned -2.41%.
Q: WITH EUROPE'S SLUGGISH ECONOMY, ARE YOU STICKING WITH YOUR STOCK CHOICES?
A: We still have confidence in the companies in the Portfolio, and believe they
have the management talent and product strength to regain their footing in
the months ahead. For example, bio-technology firm BIORA (Sweden) makes a
protein gel that is applied after gum surgery to promote reconstructive bone
and tissue growth. With the gel approved for distribution in Europe, the
United States, Canada and Japan, we are very optimistic about the prospects
for this novel product, despite its slow start. In the service sector, we
look for COMPASS GROUP (United Kingdom) -- which operates company cafeterias,
vending machines and canteens -- to rebound when Europe's economy
strengthens. TNT POST GROUP (Netherlands) offers traditional mail, express
and international postal service and should also benefit from trends in
corporate outsourcing. SIEMENS (Germany) is a well-diversified company whose
stock is selling well below the break-up value of its parts. In our
estimation, this stock is undervalued and poised for a rebound.
Q: WHICH SECTORS PERFORMED WELL FOR THE PORTFOLIO?
A: Technology and telecommunication are two sectors that served the Portfolio
well during the period. Personal computing, communications technology and the
internet are revolutionizing business and consumer behavior -- providing
open-ended growth. Semiconductor-producer STMICROELECTRONICS (France) and
software leader SAP (Germany) reflect our investments here. NOKIA (Finland),
one of the Portfolio's largest holdings, rose dramatically in price.
Considered the leading-edge innovator and provider of cellular phones, this
dynamic company continues to increase market share worldwide.
In the machinery sector, we think, SIDEL (France) represents a one-of-a-kind
opportunity. This company makes high-speed machines for the production of
plastic bottles. In the second quarter, the company announced a new procedure
for making plastic bottles suitable for holding beer. In addition to selling
the machinery to make the bottles, Sidel has patented the process and will
earn a licensing fee for every plastic bottle made. Shares climbed
dramatically on the announcement.
Q: WHAT DO YOU SEE AHEAD FOR EUROPE AND THE PORTFOLIO?
A: Continental Europe is in the midst of economic doldrums, with sluggish job
growth and high unemployment. While the Pacific Rim is recovering, Asian
demand for European goods remains weak -- suppressing factory production and
business confidence. We expect these conditions to be temporary and think
improvement will come later this year. The euro, which was down 11.67%
against the U.S. dollar since its launch on January 1, should provide
European exporters with a competitive edge.
Given the wholesale shift of assets into Japanese and U.S. stocks in recent
months, European markets appear to be out-of-favor at the moment, generally
making them a good value. We continue to see a shift in the corporate value
system, which is increasingly focused on stockholders and profitability. This
new culture is underscored by a series of mergers and restructurings designed
to increase Europe's global competitiveness. Given the coordinated interest
rate cuts and myriad structural reforms aimed at tax and labor reform, we
believe Europe has the key ingredients for an economic recovery later this
year.
- --------------------------------------------------------------------------------
International investing may involve special risks, including differences in
accounting and currency, as well as economic and political instability.
The Portfolio's investment adviser, Pioneer Investment Management, Inc., reduced
its management fee and certain other expenses; otherwise, returns would have
been lower.
5
<PAGE>
INTERNATIONAL GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/99
- --------------------------------------------------------------------------------
PORTFOLIO DIVERSIFICATION
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
International Common Stocks 90%
Short-Term Cash Equivalents 5%
Depositary Receipts for
International Stocks 3%
International Preferred Stocks 1%
International Convertible
Corporate Bonds 1%
</TABLE>
GEOGRAPHICAL DISTRIBUTION
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Europe 66.8%
Japan 18.0%
Asia 7.8%
Latin America 2.8%
Other 4.6%
</TABLE>
- --------------------------------------------------------------------------------
FIVE LARGEST HOLDINGS
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Shohkoh Fund 1.90%
2. Nokia AB 1.64
3. Rohm Co., Ltd. 1.60
4. Mannesman AG 1.52
5. Vodafone Group Plc 1.45
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
<TABLE>
<CAPTION>
6/30/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $11.37 $10.79
Accumulation Unit Value 1.2236 1.1544
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
$0.147 $ - $ -
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE OF A $10,000 INVESTMENT
The following chart shows the value of an investment made in INTERNATIONAL
GROWTH PORTFOLIO at net asset value, compared to the growth of MSCI EAFE Index.
<TABLE>
<CAPTION>
INTERNATIONAL
GROWTH PORTFOLIO* MSCI EAFE INDEX
<S> <C> <C>
3/95 $10,000 $10,000
6/95 $10,360 $10,073
$11,051 $10,494
$11,053 $10,918
$11,407 $11,233
6/96 $11,845 $11,411
$11,592 $11,398
$11,998 $11,579
$12,515 $11,398
6/97 $13,888 $12,877
$14,125 $12,786
$12,581 $11,784
$14,824 $13,518
6/98 $12,885 $13,661
$10,123 $11,718
$12,163 $14,137
$12,028 $14,333
6/99 $12,983 $14,697
</TABLE>
Index comparison begins 3/31/95. The Morgan Stanley Capital International (MSCI)
EAFE (Europe, Australasia, Far East) Index is an unmanaged,
capitalization-weighted index of international stock markets. The Index includes
Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong,
Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal,
Singapore, Spain, Sweden, Switzerland and the United Kingdom. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Portfolio
returns, do not reflect any fees or expenses. Portfolio returns are based on net
asset value and do not reflect any annuity-related costs. You cannot invest
directly in the Index.
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURNS
(As of June 30, 1999)
<S> <C> <C>
- --------------------------------------------------------------------------------
NET ASSET VALUE*
- --------------------------------------------------------------------------------
PERIOD
Life-of-Portfolio
(3/1/95) 6.19%
1 Year 0.76
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER C-VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 4.72% 4.72%
1 Year -0.65 -0.65
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION 2
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 4.72% 4.12%
1 Year -0.65 -5.71
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 4.72% 3.71%
1 Year -0.65 -6.90
</TABLE>
All total returns shown assume reinvestment of distributions at net asset value.
* Reflects Portfolio performance only. Does not reflect any applicable
insurance fees or surrender charges.
** Reflects deduction of a 1.25% mortality and expense risk charge and a 0.15%
administrative expense charge. Does not reflect any applicable surrender
charges.
*** Reflects deduction of a 1.25% mortality and expense risk charge, a 0.15%
administrative expense charge and the applicable contingent deferred sales
charge (CDSC), as if the contract were surrendered at the end of each
period. There is no CDSC for C-Vision. For Vision and Vision 2, the maximum
CDSC of 7% declines over seven years; it is deducted only while the contract
is in the surrender charge period. Returns do not reflect a $30 annual
contract fee applied only until contract value reaches $50,000 ($35 and
$75,000 for C-Vision).
6 Past performance does not guarantee future results. Returns and share prices
fluctuate so that your investment, when redeemed, may be worth more or less
than its original cost.
<PAGE>
INTERNATIONAL GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/99
- --------------------------------------------------------------------------------
The performance of international markets improved during the six months ended
June 30, 1999. Following is an interview with Pavlos M. Alexandrakis, who took
over the reins of International Growth Portfolio and its investment team in
January of this year. He discusses the turnaround in many overseas markets and
its impact on the investment team's strategy for the Portfolio.
Q: AS INTERNATIONAL MARKETS RALLIED OVER THE FIRST HALF OF THE CALENDAR YEAR,
HOW DID THE PORTFOLIO PERFORM?
A: The Portfolio performed well in the latter months of the period. However, its
reduced weighting in emerging markets limited its participation in the rally.
The 127 variable annuity international underlying funds tracked by Lipper,
Inc. returned an average of 8.10% while your portfolio returned 6.74% at net
asset value. (Lipper is an independent firm that tracks annuity portfolio
performance.)
Q: WILL THE REDUCED ROLE OF EMERGING MARKETS IN THE PORTFOLIO CONTINUE?
A: Yes. Increasing large European and Japanese holdings and reducing smaller
company and emerging market investments lowered the Portfolio's risk profile
in an effort to help protect its net asset value in periods of declining
markets. However, this strategy may limit upside potential. We believe it is
constructive given recent volatility and the inherent risks associated with
international investing, including currency fluctuations and political and
economic uncertainties. In the future, we will continue fine-tune the
Portfolio in response to changing market conditions.
Q: DO YOU CONSIDER THE TURNAROUND IN THE PACIFIC RIM A FULL RECOVERY?
A: Southeast Asia has been on the mend for several months now, and stock prices
have risen dramatically. It's a good start, but a full recovery will take
some time. The region's businesses must continue to restructure and reduce
their debt to compete effectively in the world economy. In addition, China's
economic stability is in question. Major difficulties there could choke the
region's fragile recovery.
Asia's economic superpower, Japan, is making its own comeback. New growth
initiatives there are having a positive effect on stock prices. We bought
SOFTBANK, a local internet company, and ORIENTAL LAND, which operates Disney
World in Japan. In Australia, low inflation, strong domestic demand and
falling unemployment contributed to rising stock prices. Portfolio holdings
NEWS CORP., Rupert Murdoch's multimedia conglomerate, and WMC, one of the
world's lowest-cost producers of nickel and aluminum, both benefited.
Q: WHY HAVE EUROPEAN STOCKS BEEN SO LACKLUSTER?
A: The euro has declined 11.67% against the U.S. dollar since its introduction
in January. Although this situation is helping European exporters, including
Portfolio holdings SIEMENS (Germany) and PHILIPS ELECTRONICS (Netherlands),
it is holding back their stock prices.
In continental Europe, growth was sluggish. Germany's economy in particular
suffered disproportionately as a result of the emerging markets crisis, but
there has been good news of late. Economic output rose faster than expected
in the first quarter of this year. Falling interest rates, job growth and
consumer confidence should become a driving force for further economic
recovery throughout Europe next year.
Q: ARE YOU FINDING ANY VALUE OPPORTUNITIES IN EUROPE?
A: We've found several promising restructuring candidates in Europe that we
think offer tremendous value. These companies are taking steps to improve
returns and boost global competitiveness by merging, spinning off
unprofitable subsidiaries or reducing costs. BARCLAYS (U.K.), ELF AQUITAINE
(France) and HOECHST (Germany) all fit this profile.
Q: WHAT'S IN STORE FOR THE BALANCE OF 1999?
A: If emerging markets remain strong, investors are likely to remain interested.
However, in the aftermath of recent stellar gains, we would not be surprised
to see profit-taking break the momentum of Southeast Asia's rally in the
second half of 1999. In Europe, we expect to see signs of a full-fledged
economic recovery early next year. In the meanwhile, the ability of the
United States to maintain its economic growth will be a decisive factor in
the continued improvement of international stock prices and your Portfolio's
holdings.
- --------------------------------------------------------------------------------
International investing may involve special risks, including differences in
accounting and currency, as well as economic and political instability.
7
<PAGE>
CAPITAL GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/99
- --------------------------------------------------------------------------------
PORTFOLIO DIVERSIFICATION
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Common Stocks 92%
Short-Term Cash Equivalents 6%
International Common Stocks 1%
Depositary Receipts for
International Stocks 1%
</TABLE>
SECTOR DISTRIBUTION
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Technology 18%
Financial 15%
Consumer Cyclicals 13%
Consumer Staples 12%
Capital Goods 10%
Utilities 10%
Basic Materials 6%
Healthcare 5%
Energy 5%
Other 6%
</TABLE>
- --------------------------------------------------------------------------------
FIVE LARGEST HOLDINGS
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. NCR Corp. 3.66%
2. Imation Corp. 3.08
3. Frontier Corp. 2.67
4. McDonald's Corp. 2.38
5. Columbia/HCA Healthcare Corp. 2.21
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
<TABLE>
<CAPTION>
6/30/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $16.77 $14.49
Accumulation Unit Value 1.7715 1.5300
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
$0.134 $ - $ -
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE OF A $10,000 INVESTMENT
The following chart shows the value of an investment made in CAPITAL GROWTH
PORTFOLIO at net asset value, compared to the growth of Standard & Poor's (S&P)
500 Index.
<TABLE>
<CAPTION>
CAPITAL
GROWTH PORTFOLIO* S&P 500 INDEX
<S> <C> <C>
3/95 $10,000 $10,000
$9,910 $10,332
6/95 $10,650 $11,316
$11,980 $12,215
$11,713 $12,949
$12,624 $13,644
6/96 $13,527 $14,254
$13,141 $14,693
$13,473 $15,917
$14,268 $16,345
6/97 $15,541 $19,195
$17,559 $20,631
$16,800 $21,224
$18,652 $24,182
6/98 $18,228 $24,984
$14,411 $22,502
$16,125 $27,290
$16,503 $28,968
6/99 $18,814 $30,668
</TABLE>
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
over-the-counter markets. Index returns assume reinvestment of dividends and,
unlike Portfolio returns, do not reflect any fees or expenses. Portfolio returns
are based on net asset value and do not reflect any annuity-related costs. You
cannot invest directly in the Index.
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURNS
(As of June 30, 1999)
<S> <C> <C>
- --------------------------------------------------------------------------------
NET ASSET VALUE*
- --------------------------------------------------------------------------------
PERIOD
Life-of-Portfolio
(3/1/95) 15.71%
1 Year 3.21
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER C-VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 14.12% 14.12%
1 Year 1.77 1.77
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION 2
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 14.12% 13.67%
1 Year 1.77 -3.42
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 14.12% 13.36%
1 Year 1.77 -4.64
</TABLE>
All total returns shown assume reinvestment of distributions at net asset value.
* Reflects Portfolio performance only. Does not reflect any applicable
insurance fees or surrender charges.
** Reflects deduction of a 1.25% mortality and expense risk charge and a 0.15%
administrative expense charge. Does not reflect any applicable surrender
charges.
*** Reflects deduction of a 1.25% mortality and expense risk charge, a 0.15%
administrative expense charge and the applicable contingent deferred sales
charge (CDSC), as if the contract were surrendered at the end of each
period. There is no CDSC for C-Vision. For Vision and Vision 2, the maximum
CDSC of 7% declines over seven years; it is deducted only while the contract
is in the surrender charge period. Returns do not reflect a $30 annual
contract fee applied only until contract value reaches $50,000 ($35 and
$75,000 for C-Vision).
8 Past performance does not guarantee future results. Returns and share prices
fluctuate so that your investment, when redeemed, may be worth more or less
than its original cost.
<PAGE>
CAPITAL GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/99
- --------------------------------------------------------------------------------
The first half of Capital Growth Portfolio's fiscal year ended on June 30, 1999.
In the following discussion Rod Wright, the Portfolio's manager, provides an
update on the economic environment and investment strategies that shaped the
Portfolio's improved performance over the period.
Q: THE STOCK MARKET BROADENED OVER THE LAST SIX MONTHS. DID THIS HELP THE
PORTFOLIO?
A: Yes. The Portfolio is positioned as a mid-cap value fund and both mid-caps
and value enjoyed a resurgence. As a result, I am pleased to say that the
Portfolio's 16.60% return at net asset value for the period outperformed both
the Standard & Poor's 500 Index's 12.38% return and the 12.61% average return
of the 187 variable annuity growth underlying funds, as tracked by Lipper,
Inc. (Lipper is an independent firm that tracks annuity portfolio
performance.) In addition, the Portfolio significantly outperformed the
Standard & Poor's MidCap 400 Index, which returned 6.87% over the period.
Q: IN YOUR LAST REPORT YOU TALKED ABOUT A FOCUS ON MID-CAP STOCKS. WHY ARE YOU
FOCUSING ON MID-CAPS?
A: We are focused on mid-cap companies because we believe that not only are
mid-caps attractively valued relative to the broader market, but they are
also attractive investments in their own right. Typically, they are big
enough to be strong, stable competitors with the financial wherewithal to
withstand recessions and market turmoil and yet are nimble enough to compete
aggressively. Frequently, they are attractive acquisitions for larger
companies.
Q: WHEN EVALUATING INDIVIDUAL STOCKS, WHAT DO YOU LOOK FOR?
A: Our value investment orientation leads us to the stocks of companies that are
selling at a discount to their intrinsic value. We like to buy companies that
have minimal downside risk and substantial upside potential, which we believe
provides us with a favorable risk/reward ratio. We focus on companies that
have strong franchises, healthy balance sheets and creative managements.
Finding these is an intensive process and one significant advantage we have
is the depth of Pioneer's strong research staff.
Q: HOW DID THE MARKET ROTATION TOWARD VALUE STOCKS HELP THE PORTFOLIO?
A: The Portfolio owns a relatively high percentage of stocks in the consumer
cyclical and capital goods sectors. They tend to be cyclical and are
sensitive to the ups and downs of the world economy. As confidence in the
global economy rose, stocks in these sectors boosted performance. Also
helping the Portfolio were a number of technology positions, including FIRST
DATA, which processes credit card transactions, FRONTIER, a communications
company, and ANALOG DEVICES, a manufacturer of integrated circuits.
Retailers, including the automotive supply store PEP BOYS -- MANNY, MOE &
JACK and VENATOR GROUP, the operator of Foot Locker and Champs Sports, also
contributed to the Portfolio's return.
Among the weaker sectors were the healthcare and utility sectors. Weak
earnings and regulatory uncertainty in the healthcare sector caused
healthcare stocks to fall out of the market's favor. Fortunately, we were
significantly underweighted in this sector. Utilities are very interest-rate
sensitive and were hurt by the rate increase, although we remain excited
about the prospects for this rapidly deregulating industry.
Q: WHAT IS YOUR OUTLOOK FOR THE REST OF THE YEAR?
A: Looking forward, we are excited by the potential we see in mid-cap value
stocks, and by the quality and range of the Portfolio's holdings. For the
most part, we believe the companies in the Portfolio have strong balance
sheets, market positions, managements and solid growth prospects. The
Portfolio continues to be selective about stock prices and we are mindful of
value, growth prospects and preserving capital. We strive to avoid the crowd,
separating the inexpensive from the cheap with poor prospects, always trying
to identify solid, long-term value investments for our shareholders.
9
<PAGE>
GROWTH SHARES PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/99
- --------------------------------------------------------------------------------
PORTFOLIO DIVERSIFICATION
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Common Stocks 90%
Short-Term Cash Equivalents 8%
Depositary Receipts for International Stocks 1%
International Preferred Stocks 1%
</TABLE>
SECTOR DISTRIBUTION
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Consumer Staples 37%
Financial 21%
Technology 16%
Capital Goods 9%
Consumer Cyclicals 7%
Healthcare 6%
Basic Materials 3%
Communication Services 1%
</TABLE>
- --------------------------------------------------------------------------------
FIVE LARGEST HOLDINGS
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Progressive Corp. 6.73%
2. Infinity Boadcasting Corp. 5.81
3. Sealed Air Corp. 5.41
4. Comcast Corp. (Non-voting) 5.36
5. Berkshire Hathaway, Inc. (Class A) 5.28
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
<TABLE>
<CAPTION>
6/30/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $22.42 $20.34
Accumulation Unit Value 1.4627 1.3329
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
$0.005 $0.029 $ -
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE OF A $10,000 INVESTMENT
The following chart shows the value of an investment made in GROWTH SHARES
PORTFOLIO at net asset value, compared to the growth of Standard & Poor's (S&P)
500 Index.
<TABLE>
<CAPTION>
Growth Shares
Portfolio* S&P 500 Index
<S> <C> <C>
10/97 $10,000 $10,000
11/97 $10,160 $10,463
12/97 $10,227 $10,643
1/98 $10,460 $10,760
2/98 $11,527 $11,536
3/98 $11,773 $12,126
4/98 $12,273 $12,250
5/98 $12,080 $12,039
6/98 $12,574 $12,528
7/98 $12,374 $12,395
8/98 $10,687 $10,604
9/98 $11,094 $11,284
10/98 $12,041 $12,200
11/98 $12,621 $12,940
12/98 $13,561 $13,685
1/99 $13,961 $14,257
2/99 $13,727 $13,814
3/99 $14,761 $14,526
4/99 $14,894 $15,089
5/99 $14,514 $14,732
6/99 $14,970 $15,379
</TABLE>
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
over-the-counter market. Index returns assume reinvestment of dividends and,
unlike Portfolio returns, do not reflect any fees or expenses. Portfolio returns
are based on net asset value and do not reflect any annuity-related costs. You
cannot invest directly in the Index.
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURNS
(As of June 30, 1999)
<S> <C> <C>
- --------------------------------------------------------------------------------
NET ASSET VALUE*
- --------------------------------------------------------------------------------
PERIOD
Life-of-Portfolio
(10/31/97) 27.52%
1 Year 19.06
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER C-VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(10/31/97) 25.74% 25.74%
1 Year 17.40 17.40
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION 2
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(10/31/97) 25.74% 22.61%
1 Year 17.40 11.41
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(10/31/97) 25.74% 22.08%
1 Year 17.40 10.40
</TABLE>
All total returns shown assume reinvestment of distributions at net asset value.
* Reflects Portfolio performance only. Does not reflect any applicable
insurance fees or surrender charges.
** Reflects deduction of a 1.25% mortality and expense risk charge and a 0.15%
administrative expense charge. Does not reflect any applicable surrender
charges.
*** Reflects deduction of a 1.25% mortality and expense risk charge, a 0.15%
administrative expense charge and for Pioneer Vision and Pioneer Vision 2
the applicable contingent deferred sales charge (CDSC), as if the contract
were surrendered at the end of each period. There is no CDSC for C-Vision.
For Vision and Vision 2, the maximum CDSC of 7% declines over seven years;
it is deducted only while the contract is in the surrender charge period.
Returns do not reflect a $30 annual contract fee applied only until contract
value reaches $50,000 ($35 and $75,000 for C-Vision).
10 Past performance does not guarantee future results. Returns and share prices
fluctuate so that your investment, when redeemed, may be worth more or less
than its original cost.
<PAGE>
GROWTH SHARES PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/99
- --------------------------------------------------------------------------------
Stock market trends in the United States shifted starting in April of this year.
Small company stocks outperformed large company stocks and the long ignored
value stocks outperformed growth stocks. The following is an interview with
Jeffrey B. Poppenhagen who leads the Growth Shares Portfolio investment team. He
discusses the events and factors that influenced your Portfolio's performance
over the recent six-month period.
Q: HOW DID THE PORTFOLIO PERFORM?
A: In absolute terms, the Portfolio performed well for the first half of the
year, returning 10.40% at net asset value. However, the Portfolio
underperformed compared to the 12.61% average return of the 187 variable
annuity growth underlying funds tracked by Lipper, Inc. (Lipper is an
independent firm that tracks annuity portfolio performance.)
Q: WHY DIDN'T THE PORTFOLIO KEEP PACE WITH THE S&P 500 THIS PERIOD?
A: One reason was our position in consumer staples, especially multinational
companies like COCA-COLA and GILLETTE. Gillette was down nearly 14% for the
period and represents 3.97% of the portfolio as of June 30, 1999. The company
issued a profit warning for the second quarter, announcing that they expected
earnings per share to be down 20%, not 10% as previously reported. We believe
that Gillette's earnings will improve following a rebound in emerging market
economies, and as their new Mach 3 razor continues to gain market share.
Coca-Cola's net income dropped 21% in the second quarter due to a drink
contamination scare in Europe and weak sales in other overseas markets. While
these multinational companies hurt the Portfolio's short-term performance, we
believe their long-term roles as leaders in their respective industries will
remain unchanged.
Q: WERE THERE ANY SIGNIFICANT CHANGES IN THE PORTFOLIO?
A: Yes. We sold many of the Portfolio's big name technology stocks, such as DELL
COMPUTERS. We are concerned with the quality of reported earnings from many
technology companies. Increasingly, companies are issuing stock options to
employees as part of their compensation. Issuing stock options is not a
particularly troubling issue by itself. However, because stock options are
not counted as an expense against revenue like all other forms of
compensation, accounting for them is becoming a very large issue. We think
the current methodology may be causing earnings to be overstated, especially
among technology and financial services companies.
Considering the returns on invested capital being generated by many
technology companies, and adjusting for their options-for-compensation
expenses, we think technology stocks are a less attractive investment today.
As we move away from this sector, we're shifting assets to
telecommunications, where we think an increasingly networked world will
provide the potential for strong growth.
Q: ARE THERE ANY OTHER CHANGES OF NOTE TO THE PORTFOLIO?
A: We sold many stocks that had performed exceptionally well in the past. We
redirected proceeds into other stocks we think have their best performance
potential ahead of them, not behind. For instance, while we have eliminated
positions in INTEL and DELL, we have increased our holdings in INFINITY
BROADCASTING and COMCAST.
Q: HOW DO YOU SEE THE REST OF THE YEAR UNFOLDING?
A: The difficulties inherent in economic forecasting aside, we continue to
believe that the consumer-based multinational companies like Coca-Cola,
Gillette and MCDONALD'S are among the finest franchises in the world, with
plenty of growth potential for the future. If overseas economies continue to
improve, these and other holdings in the Portfolio should benefit.
11
<PAGE>
REAL ESTATE GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/99
- --------------------------------------------------------------------------------
PORTFOLIO DIVERSIFICATION
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Common Stocks 93%
International Common Stocks 5%
Short-Term Cash Equivalents 2%
</TABLE>
SECTOR DISTRIBUTION
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Real Estate Investment Trusts 92%
Real Estate Services 7%
Services 1%
</TABLE>
- --------------------------------------------------------------------------------
FIVE LARGEST HOLDINGS
(As a percentage of equity holdings)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
1. Equity Residential Property Trust 4.84%
2. Equity Office Properties Trust 4.84
3. Trizec Hahn Corp. 4.67
4. AvalonBay Communities, Inc. 4.24
5. Mack-Cali Realty Corp. 4.16
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
<TABLE>
<CAPTION>
6/30/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $13.27 $13.07
Accumulation Unit Value 1.5455 1.4819
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
$0.310 $0.005 $0.119
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE OF A $10,000 INVESTMENT
The following chart shows the value of an investment made in REAL ESTATE GROWTH
PORTFOLIO at net asset value, compared to the growth of Standard & Poor's (S&P)
500 Index and Wilshire Real Estate Securities Index.
<TABLE>
<CAPTION>
Real Estate Wilshire Real Estate
Growth Portfolio* S&P 500 Index Securities Index
<S> <C> <C> <C>
3/95 $10,000 $10,000 $10,000
6/95 $10,721 $10,953 $10,435
$11,564 $11,823 $10,930
$11,696 $12,533 $11,322
$12,020 $13,206 $11,800
6/96 $12,316 $13,796 $12,360
$13,548 $14,221 $13,090
12/96 $15,875 $15,406 $15,497
$16,178 $15,820 $15,781
$16,875 $18,579 $16,507
$19,340 $19,969 $18,592
6/98 $19,235 $20,543 $18,565
$19,105 $23,406 $18,425
$18,090 $24,182 $17,579
$15,670 $21,780 $15,477
12/98 $15,629 $26,414 $15,330
$14,616 $28,038 $14,798
6/99 $16,414 $29,683 $16,369
</TABLE>
Index comparison begins 3/31/95. 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 markets. The Wilshire Real Estate
Securities Index is a market-capitalization weighted measure of the performance
of real estate securities. The Index is 94% REITs (real estate investment
trusts) (equity and hybrid) and 6% real estate operating companies. Index
returns are calculated monthly, assume reinvestment of dividends and, unlike
Portfolio returns, do not reflect any fees, expenses or sales charges. You
cannot invest directly in the Indexes.
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURNS
(As of June 30, 1999)
<S> <C> <C>
- --------------------------------------------------------------------------------
NET ASSET VALUE*
- --------------------------------------------------------------------------------
PERIOD
Life-of-Portfolio
(3/1/95) 12.12%
1 Year -9.26
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER C-VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 10.57% 10.57%
1 Year -10.59 -10.59
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION 2
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 10.57% 10.07%
1 Year -10.59 -15.15
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 10.57% 9.73%
1 Year -10.59 -16.22
</TABLE>
All total returns shown assume reinvestment of distributions at net asset value.
* Reflects Portfolio performance only. Does not reflect any applicable
insurance fees or surrender charges.
** Reflects deduction of a 1.25% mortality and expense risk charge and a 0.15%
administrative expense charge. Does not reflect any applicable surrender
charges.
*** Reflects deduction of a 1.25% mortality and expense risk charge, a 0.15%
administrative expense charge and the applicable contingent deferred sales
charge (CDSC), as if the contract were surrendered at the end of each
period. There is no CDSC for C-Vision. For Vision and Vision 2, the maximum
CDSC of 7% declines over seven years; it is deducted only while the contract
is in the surrender charge period. Returns do not reflect a $30 annual
contract fee applied only until contract value reaches $50,000 ($35 and
$75,000 for C-Vision).
12 Past performance does not guarantee future results. Returns and share prices
fluctuate so that your investment, when redeemed, may be worth more or less
than its original cost.
<PAGE>
REAL ESTATE GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/99
- --------------------------------------------------------------------------------
Real estate stocks rallied this spring, as fears of the U.S. stock market's
lofty prices sent value-conscious investors in search of out-of-favor stocks. In
the interview that follows, Matthew Ostrower, the Portfolio's new manager and
leader of the Portfolio's management team, discusses the real estate market's
improving prospects and its impact on Real Estate Growth Portfolio's
performance.
Q: WHAT FACTORS CONTRIBUTED TO THE TURNAROUND IN REAL ESTATE INVESTMENT TRUST
(REIT) STOCKS?
A: A rising tide of optimism about the sector and undervalued stocks in general
helped REITs recover. The past three months of the period were particularly
rewarding for the Portfolio, which achieved double-digit gains. This more
sanguine environment contrasts sharply with the first half of the period,
which was overshadowed by fears of recession and higher interest rates. All
told, the Portfolio returned 5.02% at net asset value for the six months
ended June 30, 1999, while the 17 variable annuity underlying real estate
funds tracked by Lipper, Inc. averaged 5.98%. (Lipper is an independent firm
that tracks annuity portfolio performance.)
Q: HAS THE PORTFOLIO'S STRATEGY CHANGED SINCE YOU ASSUMED MANAGEMENT
RESPONSIBILITIES IN APRIL?
A: No, but we are in the process of expanding the Portfolio's focus on growth
companies, since REITs offer both income and capital appreciation potential.
I'm drawn to large, high-quality companies with good earnings potential.
Three new holdings exemplify this increased emphasis on growth. RECKSON
ASSOCIATES REALTY is an office and industrial REIT geographically focused in
and around New York City. VORNADO REALTY TRUST owns a variety of property
types nationally, but is particularly well-positioned in Manhattan. AVALONBAY
COMMUNITIES is regarded as one of the best developers of top-quality
apartments.
Q: WILL YOUR INCREASED EMPHASIS ON GROWTH AFFECT THE PORTFOLIO'S YIELD?
A: We do not foresee any significant impact on the Portfolio's yield. REITs pay
out 95% of their taxable earnings in dividends in return for their corporate
tax-free status helping them maintain relatively high yields for stocks as an
asset class. Reflecting this, on June 30, the Portfolio's annualized
distribution yield of 4.75% compared favorably with the 1.22% yield for the
Standard & Poor's 500 Index. The Portfolio's 30-day current yield as of June
30, 1999 was 5.38%.
Q: WHICH SECTORS CURRENTLY OFFER THE GREATEST POTENTIAL?
A: I believe the outlook for the apartment, office and diversified sectors is
particularly promising. Since apartment REITs have relatively short-term
leases typically one year rental increases can be adjusted quickly to account
for inflation. The sector outperformed during the latter half of the period
including holding CHARLES E. SMITH RESIDENTIAL REALTY.
The Portfolio's holdings in office REITs tend to be geographically focused
in central business districts, with high barriers to entry for new
competitors. We have high expectations for the New England-based MACK-CALI
REALTY and TRIZECHAHN, a non-REIT with a large portfolio of office towers
nationwide. The diversified sector includes REITs that invest in multiple
property types and are not limited to a single geographic region. COUSINS
PROPERTIES builds office buildings, as well as power centers, which are
comprised of a few major tenants that can attract destination shoppers
rather than browsers.
We have some trepidation about the hotel sector, after four years of strong
increases in room rates. We trimmed some holdings and will continue to
monitor the sector closely.
Q: WHAT IS YOUR OUTLOOK?
A: I'm optimistic about REITs in the months ahead. In 1998, investors overly
discounted the impact of overbuilding, tighter credit and a potential
economic slowdown. Share prices of REITs suffered, making it difficult for
companies to raise capital for acquisition or development. Our research
efforts will continue to focus on the dominant REITs, which can generate
internal growth from effective management of the properties they own,
regardless of market conditions.
- --------------------------------------------------------------------------------
Effective March 31, 1999, Robert Benson stepped down as the portfolio manager of
Real Estate Growth Portfolio. His successor, Matthew Ostrower, assumed the daily
management of the Portfolio as new manager and leader of the Portfolio's
investment management team. Mr. Ostrower is a three-year veteran of the
Portfolio's management team.
Real estate related investments involve specific risks, including those related
to general and local economic conditions and individual properties.
13
<PAGE>
GROWTH AND INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/99
- --------------------------------------------------------------------------------
PORTFOLIO DIVERSIFICATION
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Common Stocks 92%
Short-Term Cash Equivalents 3%
Depositary Receipts for International Stocks 3%
International Common Stocks 2%
</TABLE>
SECTOR DISTRIBUTION
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Financial 19%
Technology 18%
Communication Services 13%
Healthcare 11%
Consumer Cyclicals 11%
Consumer Staples 10%
Capital Goods 6%
Energy 6%
Basic Materials 3%
Other 3%
</TABLE>
- --------------------------------------------------------------------------------
FIVE LARGEST HOLDINGS
(As a percentage of equity holdings)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
1. Schering-Plough Corp. 4.07%
2. IBM Corp. 3.13
3. Sun Microsystems, Inc. 2.19
4. SBC Communications, Inc. 2.13
5. BellSouth Corp. 2.00
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
<TABLE>
<CAPTION>
6/30/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $21.79 $19.76
Accumulation Unit Value 1.4390 1.3108
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
$0.070 $0.019 $0.005
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE OF A $10,000 INVESTMENT
The following chart shows the value of an investment made in GROWTH AND INCOME
PORTFOLIO at net asset value, compared to the growth of Standard & Poor's (S&P)
500 Index.
<TABLE>
<CAPTION>
Growth and S&P 500
Income Portfolio* Index
<S> <C> <C>
10/97 $10,000 $10,000
$10,473 $10,463
12/97 $10,543 $10,643
$10,790 $10,760
$11,490 $11,536
$11,944 $12,126
$11,944 $12,250
$11,663 $12,039
6/98 $11,964 $12,528
$11,877 $12,395
$10,315 $10,604
$10,985 $11,284
$11,986 $12,200
$12,557 $12,940
12/98 $13,296 $13,685
$13,505 $14,257
$13,256 $13,814
$13,525 $14,526
$14,266 $15,089
$14,037 $14,732
6/99 $14,728 $15,379
</TABLE>
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
over-the-counter market. Index returns assume reinvestment of dividends and,
unlike Portfolio returns, do not reflect any fees or expenses. Portfolio returns
are based on net asset value and do not reflect any annuity-related costs. You
cannot invest directly in the Index.
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURNS
(As of June 30, 1999)
<S> <C> <C>
- --------------------------------------------------------------------------------
NET ASSET VALUE*
- --------------------------------------------------------------------------------
PERIOD
Life-of-Portfolio
(10/31/97) 26.27%
1 Year 23.10
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER C-VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(10/31/97) 24.52% 24.52%
1 Year 21.39 21.39
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION 2
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(10/31/97) 24.52% 21.36%
1 Year 21.39 15.39
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(10/31/97) 24.52% 20.83%
1 Year 21.39 14.39
</TABLE>
All total returns shown assume reinvestment of distributions at net asset value.
* Reflects Portfolio performance only. Does not reflect any applicable
insurance fees or surrender charges.
** Reflects deduction of a 1.25% mortality and expense risk charge and a 0.15%
administrative expense charge. Does not reflect any applicable surrender
charges.
*** Reflects deduction of a 1.25% mortality and expense risk charge, a 0.15%
administrative expense charge and the applicable contingent deferred sales
charge (CDSC), as if the contract were surrendered at the end of each
period. There is no CDSC for C-Vision. For Vision and Vision 2, the maximum
CDSC of 7% declines over seven years; it is deducted only while the contract
is in the surrender charge period. Returns do not reflect a $30 annual
contract fee applied only until contract value reaches $50,000 ($35 and
$75,000 for C-Vision).
14 Past performance does not guarantee future results. Returns and share prices
fluctuate so that your investment, when redeemed, may be worth more or less
than its original cost.
<PAGE>
GROWTH AND INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/99
- --------------------------------------------------------------------------------
In the following discussion John A. Carey, Growth and Income Portfolio's
manager, provides an update on the economic environment and investment
strategies that shaped performance over the period.
Q: VALUE STOCKS MADE A STRONG COMEBACK IN THE SECOND QUARTER. WHAT SPARKED THE
SHIFT IN INVESTOR DEMAND?
A: One of the intriguing aspects of the stock market is its changeability. What
is "hot" one quarter may be "cold" the next, for reasons hard to discern from
any actual business fundamentals such as sales and earnings growth.
The rotation into value stocks resulted from better earnings reports from
many of the more economically sensitive stocks. In addition, earnings
disappointments for some of the large companies, particularly some of the
technology issues that were driving the market, began to appear in March and
April. But the important thing, we think, is to focus on the longer term
prospects for companies and to invest on that basis.
Q: DID THE BROADENING OF THE MARKET HELP THE PORTFOLIO'S PERFORMANCE?
A: Yes, it was a definite plus, especially during the second quarter when it
helped the Portfolio outperform the broad market, as the Portfolio gained
8.90% at net asset value versus 7.05% for the Standard & Poor's 500 Index.
For the six-month period as a whole, the Portfolio returned 10.77%, while the
average variable annuity growth and income underlying fund returned 11.70% as
reported by Lipper, Inc. (Lipper is an independent firm that reports annuity
portfolio performance.)
Q: PLEASE REVIEW THE PORTFOLIO'S INVESTMENT STRATEGY.
A: We work at assembling a representative selection of the very best - generally
larger - companies, usually based in the United States. We attempt to buy
stocks when the price is favorable for good, longer-term gains. We generally
emphasize well-established companies with significant public operating
records, strong finances and evidence of management commitment to
stockholders. The portfolio is diversified across sectors and industries and
among companies in the various sectors and industries. Moderation of risk and
volatility and preservation of capital are important considerations of our
management style. All in all, it is a value-based approach to the blue-chip
market.
Q: YOU ADDED A NUMBER OF NEW HOLDINGS OVER THE PERIOD. WHAT WERE THEY? WHAT
OTHER CHANGES WERE MADE?
A: We've been quite active, adding a number of new stocks and also selling
others. Included among the larger purchases were BOEING, one of the two
principal commercial aerospace companies in the world, HASBRO, a manufacturer
of toys, and KROGER, an operator of grocery stores. We also added BANKBOSTON,
which expects soon to be merged into Fleet Financial, and DOW JONES,
publisher of THE WALL STREET JOURNAL.
Sales, all at profits, were completed in NOVARTIS, BANC ONE, UNITED
HEALTHCARE and GENERAL MOTORS (CLASS H). Of course, we can't guarantee that
what we have bought will do better than what we have sold. However, we must
make decisions every day about relative total return prospects. In the
instances just cited, we believe that we found more attractive situations in
which to deploy Portfolio assets.
Q: CORPORATIONS CONTINUE TO POST STRONG EARNINGS. DO YOU THINK THIS WILL
CONTINUE FOR THE REMAINDER OF THE YEAR?
A: While we are naturally wary of forecasts that ignore risks, we do find lots
of reasons for hope that American business will continue doing very well over
the next several years. The economic cycle we're in has been extraordinarily
long and robust. Part of the story is technology: the United States is
undergoing one of the most far-reaching transformations of our industrial and
service base ever. Technology is not only enhancing productivity throughout
the economy, but it is also a major growth engine on its own, as our computer
and software companies sell their products both here and around the world. We
recognize that growth won't come without interruption in this or any year but
we are optimistic about the long-term prospects for the U.S. stock market.
15
<PAGE>
EQUITY-INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/99
- --------------------------------------------------------------------------------
PORTFOLIO DIVERSIFICATION
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Common Stock 99%
U.S. Convertible Preferred Stocks 1%
</TABLE>
SECTOR DISTRIBUTION
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Financial 21%
Communication Services 13%
Healthcare 11%
Utilities 11%
Consumer Cyclicals 9%
Basic Materials 8%
Consumer Staples 7%
Energy 7%
Technology 6%
Other 7%
</TABLE>
- --------------------------------------------------------------------------------
FIVE LARGEST HOLDINGS
(As a percentage of equity holdings)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
1. Schering-Plough Corp. 4.01%
2. Ameritech Corp. 3.58
3. GTE Corp. 2.81
4. Ford Motor Co. 2.44
5. SBC Communications, Inc. 2.40
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
<TABLE>
<CAPTION>
6/30/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $22.25 $21.44
Accumulation Unit Value 2.3733 2.2300
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
$0.180 $0.034 $0.550
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE OF A $10,000 INVESTMENT
The following chart shows the value of an investment made in EQUITY-INCOME
PORTFOLIO at net asset value, compared to the growth of Standard & Poor's (S&P)
500 Index.
<TABLE>
<CAPTION>
Equity-Income
Portfolio* S&P 500 Index
<S> <C> <C>
3/95 $10,000 $10,000
$10,280 $10,332
6/95 $10,990 $11,316
$12,290 $12,215
$12,362 $12,949
$12,778 $13,644
6/96 $12,881 $14,254
$13,189 $14,693
$14,240 $15,917
$14,745 $16,345
6/97 $16,867 $19,195
$18,202 $20,631
$19,257 $21,224
$21,434 $24,182
6/98 $21,635 $24,984
$20,388 $22,502
$23,455 $27,290
$22,711 $28,968
6/99 $25,207 $30,668
</TABLE>
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
over-the-counter market. Index returns assume reinvestment of dividends and,
unlike Portfolio returns, do not reflect any fees or expenses. Portfolio returns
are based on net asset value and do not reflect any annuity-related costs. You
cannot invest directly in the Index.
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURNS
(As of June 30, 1999)
<S> <C> <C>
- --------------------------------------------------------------------------------
NET ASSET VALUE*
- --------------------------------------------------------------------------------
PERIOD
Life-of-Portfolio
(3/1/95) 23.80%
1 Year 16.51
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER C-VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 22.09% 22.09%
1 Year 14.89 14.89
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION 2
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 22.09% 21.73%
1 Year 14.89 9.03
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 22.09% 21.49%
1 Year 14.89 7.89
</TABLE>
All total returns shown assume reinvestment of distributions at net asset value.
* Reflects Portfolio performance only. Does not reflect any applicable
insurance fees or surrender charges.
** Reflects deduction of a 1.25% mortality and expense risk charge and a 0.15%
administrative expense charge. Does not reflect any applicable surrender
charges.
*** Reflects deduction of a 1.25% mortality and expense risk charge, a 0.15%
administrative expense charge and the applicable contingent deferred sales
charge (CDSC), as if the contract were surrendered at the end of each
period. There is no CDSC for C-Vision. For Vision and Vision 2, the maximum
CDSC of 7% declines over seven years; it is deducted only while the contract
is in the surrender charge period. Returns do not reflect a $30 annual
contract fee applied only until contract value reaches $50,000 ($35 and
$75,000 for C-Vision).
16 Past performance does not guarantee future results. Returns and share prices
fluctuate so that your investment, when redeemed, may be worth more or less
than its original cost.
<PAGE>
EQUITY-INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/99
- --------------------------------------------------------------------------------
In the following discussion Equity-Income Portfolio's manager, John A. Carey,
provides an update on the economic environment and investment strategies that
shaped performance over the period.
Q: HAS THE STOCK MARKET CHANGED MUCH SINCE YOUR LAST REPORT?
A: Yes. The global economy improved as the year progressed and, in turn, a
greater cross-section of stocks turned in better earnings. This was a sharp
change from the trend of having a limited focus on a few large growth stocks.
Right now, like everyone else, we are watching interest rates, hoping they do
not increase much more.
Q: HOW DID THE PORTFOLIO PERFORM IN THIS ENVIRONMENT?
A: The Portfolio generated a total return of 7.47% at net asset value. In
comparison the average variable annuity equity-income underlying fund
returned 10.75% as reported by Lipper, Inc. (Lipper is an independent firm
that reports annuity portfolio performance.) The Portfolio's strategy is
conservative, with the vast majority of holdings required to pay a dividend.
So, we were pleased to generate a solid return, especially since most
high-flying growth stocks aren't eligible for the Portfolio.
Q: HOW DO YOU DEAL WITH THE CHALLENGE OF FINDING STOCKS THAT PAY A CONSISTENT
DIVIDEND, ESPECIALLY WHEN INVESTORS DO NOT SEEM AS INTERESTED IN DIVIDENDS AS
THEY ONCE WERE?
A: First of all, dividends and their reinvestment remain very important.
Long-term calculations show that reinvested dividends generally make up a
large part of the total investment return available in the stock market. As a
component of an overall financial strategy, dividends and dividend policy
convey information to investors about a company's expectations for future
earnings and cash flows. Dividends, especially their regular payment over a
period of years, are also a sign of financial discipline on the part of the
company paying them as well as a confirmation of its commitment to
stockholders. So we think dividends still provide a pretty good gauge by
which to measure companies and are somewhat baffled that they seem to have
slipped from favor in some investment circles.
Q: WHAT WORKED FOR THE PORTFOLIO OVER THE PERIOD? WHAT DIDN'T WORK?
A: Telephone stocks were very strong as investors recognized the growth
potential in the industry. Also, banks, oil companies and cyclical stocks in
industries ranging from chemicals to autos and producer goods did well. The
more positive economic outlook led investors back to many stocks they had
sold during the negative mood of last summer.
On the other hand, insurance and food stocks were weak since investors
remained concerned about earnings in those industries. Utilities were down
slightly as fears grew about rising interest rates.
Q: WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO?
A: Looking for value across many industries, we made new purchases in regional
banking, defense and aerospace, auto parts and equipment. New positions
included BANKBOSTON in banking, GENERAL DYNAMICS and LOCKHEED MARTIN in
defense and DELPHI AUTOMOTIVE SYSTEMS and GOODYEAR TIRE & RUBBER in auto
parts. We also added to existing holdings in several other industries,
including paper and forest products, diversified manufacturing and
advertising, among other industries.
We sold stocks we believed had reached their potential and replaced those
for which we could find more attractive alternatives. Among the stocks we
sold were GENERAL ELECTRIC, BELL ATLANTIC, DAIMLERCHRYSLER and U.S. BANCORP.
Q: HOW WOULD YOU ASSESS THE STOCK MARKET FOR THE NEXT SIX MONTHS?
A: We are optimistic as we look forward and see the tremendous potential for
growth in earnings and dividends at the companies in the Portfolio. Of
course, the business cycle will most likely turn down some day, and probably
not when anyone is expecting it. But for now there are lots of opportunities,
we think, to pursue good returns, and we are working hard to seize them and
make them work for you.
17
<PAGE>
BALANCED PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/99
- --------------------------------------------------------------------------------
PORTFOLIO DIVERSIFICATION
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Common Stocks 48%
Corporate Bonds 22%
U.S. Government Agency Obligations 17%
U.S. Treasury Obligations 12%
International Common Stocks 1%
</TABLE>
SECTOR DISTRIBUTION
(As a percentage of total investment in securities)
<TABLE>
<S> <C>
U.S. Government Securities 29%
Financial 16%
Consumer Cyclicals 9%
Consumer Staples 9%
Energy 7%
Communication Services 7%
Technology 7%
Capital Goods 7%
Healthcare 3%
Other 6%
</TABLE>
- --------------------------------------------------------------------------------
FIVE LARGEST HOLDINGS
(As a percentage of total investment in securities)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
1. U.S. Treasury Bonds, 6.5%, 10/15/06 6.30%
2. Ford Motor Co. 2.22
3. Lucent Technologies, Inc. 2.14
4. Government National Mortgage Association, 6.5%, 3/15/29 2.12
5. U.S. Treasury Bonds, 6.125%, 11/15/27 2.11
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
<TABLE>
<CAPTION>
6/30/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $14.63 $14.47
Accumulation Unit Value 1.5730 1.5407
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
$0.240 $ - $ -
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE OF A $10,000 INVESTMENT
The following chart shows the value of an investment made in BALANCED PORTFOLIO
at net asset value, compared to the growth of the Standard & Poor's (S&P) 500
Index and Lehman Brothers Government/Corporate Bond Index.
<TABLE>
<CAPTION>
Lehman Brothers Government/
Balanced Portfolio S&P 500 Index Corporate Bond Index
<S> <C> <C> <C>
3/95 $10,000 $10,000 $10,000
6/95 $10,598 $10,953 $10,649
$11,774 $11,823 $10,853
12/95 $11,847 $12,533 $11,359
$12,206 $13,206 $11,093
6/96 $12,437 $13,796 $11,144
$12,700 $14,221 $11,340
12/96 $13,536 $15,406 $11,687
$13,523 $15,820 $11,586
6/97 $14,882 $18,579 $12,007
$16,120 $19,969 $12,428
12/97 $15,920 $20,543 $12,827
$17,058 $23,406 $13,022
6/98 $16,921 $24,182 $13,362
$15,851 $21,780 $14,023
12/98 $16,341 $26,414 $14,042
$16,250 $28,038 $13,874
6/99 $16,800 $29,683 $13,723
</TABLE>
Index comparisons begin 3/31/95. 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 over-the-counter market. The Lehman Brothers
Government/Corporate Bond Index is an unmanaged measure of investment-grade
domestic and Yankee bonds. Bonds in the Index must be publicly issued,
fixed-rate and non-convertible. Index returns assume reinvestment of dividends
and, unlike Portfolio returns, do not reflect any fees or expenses. Portfolio
returns are based on net asset value and do not reflect any annuity-related
costs. You cannot invest directly in the Indexes.
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURNS
(As of June 30, 1999)
<S> <C> <C>
- --------------------------------------------------------------------------------
NET ASSET VALUE*
- --------------------------------------------------------------------------------
PERIOD
Life-of-Portfolio
(3/1/95) 13.24%
1 Year -0.71
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER C-VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 11.68% 11.68%
1 Year -2.10 -2.10
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION 2
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 11.68% 11.19%
1 Year -2.10 -7.09
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 11.68% 10.87%
1 Year -2.10 -8.27
</TABLE>
All total returns shown assume reinvestment of distributions at net asset value.
* Reflects Portfolio performance only. Does not reflect any applicable
insurance fees or surrender charges.
** Reflects deduction of a 1.25% mortality and expense risk charge and a 0.15%
administrative expense charge. Does not reflect any applicable surrender
charges.
*** Reflects deduction of a 1.25% mortality and expense risk charge, a 0.15%
administrative expense charge and the applicable contingent deferred sales
charge (CDSC), as if the contract were surrendered at the end of each
period. There is no CDSC for C-Vision. For Vision and Vision 2, the maximum
CDSC of 7% declines over seven years; it is deducted only while the contract
is in the surrender charge period. Returns do not reflect a $30 annual
contract fee applied only until contract value reaches $50,000 ($35 and
$75,000 for C-Vision).
18 Past performance does not guarantee future results. Returns and share prices
fluctuate so that your investment, when redeemed, may be worth more or less
than its original cost.
<PAGE>
BALANCED PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/99
- --------------------------------------------------------------------------------
As investors showed renewed signs of interest in small-company and other
neglected stock choices, Balanced Portfolio continued to rely on the time-tested
method of value investing for a balanced outcome of growth and income. In the
following discussion, the Portfolio's management team - Eric Weigel and Tin
Chan, with Ken Taubes speaking for the fixed-income team - review the
performance of your Portfolio and the factors that affected it over the past six
months. Mr. Weigel focuses on asset allocation decisions for the portfolio,
while Mr. Chan is responsible for stock selection.
Q: HOW DID BALANCED PORTFOLIO PERFORM FOR THE SIX MONTHS ENDED JUNE 30?
A: Performance has improved since our last report with the Portfolio providing a
2.81% total return at net asset value, although it still trailed the average
6.12% return of the 63 variable annuity balanced underlying funds tracked by
Lipper, Inc. The Portfolio's investors received a total of $0.24 in dividend
income distributions. (Lipper is an independent firm that tracks annuity
portfolio performance.)
Q: ERIC, WHAT FACTORS CONTRIBUTED TO THE PORTFOLIO'S PERFORMANCE IN COMPARISON
TO OTHER FUNDS?
A: The Portfolio's focus on dividend-paying stocks worked against it because
investors were more interested in growth stocks. In addition, the Portfolio's
assets were conservatively allocated -- with a higher allotment to bonds than
our peers. Finally, your Portfolio is value-oriented, and value stocks had
been out of favor. It was only in the most recent quarter that value and
dividend-paying stocks came back and helped boost Portfolio returns.
Q: TIN, WHAT EQUITY HOLDINGS HELPED THE PORTFOLIO'S PERFORMANCE?
A: There were several contributors including AT&T and WAL-MART STORES, that
stand out. Other department stores simply cannot compete with Wal-Mart and
the reputation that it has established. Recently, the company entered the
financial services arena with its purchase of Federal BankCentre, a bank
based in Oklahoma. AT&T is now positioning itself to benefit from tremendous
growth with its goal of becoming a "one-stop-shop" for cable, internet and
telephone access.
Q: KEN, HAVE THERE BEEN MANY CHANGES IN THE BOND PORTFOLIO DURING THE LAST SIX
MONTHS?
A: We've continued to invest in mortgage-backed and corporate bond issuers as we
look to maximize the Portfolio's income. We added chemical company HUNTSMAN
ICI CHEMICALS, a high-yield issuer we think is well positioned against its
competitors. New holding RBF FINANCE, an oil rig engineering construction
firm, also did quite well over the six months. We've found value in several
high-yielding issues and, as a result, that sector's weighting has been
increased. (The prospectus allows a maximum of 10% of the Portfolio's assets
in high-yield investments. These investments carry more risk than
lower-yielding issues.)
Q: KEN, DO YOU ALSO USE A VALUE APPROACH TO BONDS FOR THE PORTFOLIO?
A: Yes. Our research team carefully analyzes potential holdings, in pursuit of
securities we believe can provide stable high-yielding results at attractive
prices. At the same time, we strive to maintain an investment-grade credit
rating for the bond portfolio as a whole. (Ratings apply to underlying
securities, not Portfolio shares.) Over time, compounding the income from
these types of holdings should, we believe, provide shareowners with good
dividends and a strong total return.
Q: ERIC AND TIN, GOING FORWARD HOW WILL YOU MANAGE THE PORTFOLIO?
A: The Portfolio is designed to appeal to investors seeking regular income who
also want to maintain a relatively stable portfolio, one without a lot of
volatility. Going forward, we'll strive to move the Portfolio's investment
allocation to 55% stocks and 45% bonds for the near future at least. We
believe this mix will help take advantage of equities, benefiting from
positive earnings results, while also taking into consideration the potential
for the return of inflation to the economy. Our focus will remain on value
stocks with low price-to-earnings and low price-to-book ratios, and Ken will
continue to include value-based fixed-income instruments in the bond portion
of the Portfolio.
19
<PAGE>
SWISS FRANC BOND PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/99
- --------------------------------------------------------------------------------
PORTFOLIO DIVERSIFICATION
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
Corporate Bonds 63%
Foreign Government Bonds 24%
Short-Term Cash Equivalents 13%
</TABLE>
PORTFOLIO QUALITY
(As a percentage of debt holdings)
<TABLE>
<S> <C>
AAA 39%
AA 42%
A 19%
</TABLE>
- --------------------------------------------------------------------------------
FIVE LARGEST HOLDINGS
(As a percentage of debt holdings)
<TABLE>
<S> <C>
1. Transpower Finance Ltd., 4.25%, 6/10/04 5.80%
2. GMAC Canada Ltd., 3.75%, 1/16/01 5.59
3. AB Spintab, 3.25%, 1/24/02 5.56
4. Asian Development Bank, 7.375%, 11/27/00 5.54
5. J.P. Morgan & Co. Inc., 2.0%, 12/27/01 5.42
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
<TABLE>
<CAPTION>
6/30/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $11.71 $13.22
Accumulation Unit Value 0.7676 0.8726
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
$ - $ - $ -
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE OF A $10,000 INVESTMENT
The following chart shows the value of an investment made in SWISS FRANC BOND
PORTFOLIO at net asset value, compared to the growth of Merrill Lynch Global
Bond Index.
<TABLE>
<CAPTION>
Swiss Franc Merrill Lynch
Bond Portfolio* Global Bond Index
<S> <C> <C>
11/95 $10,000 $10,000
$10,013 $10,110
$9,807 $9,944
6/96 $9,244 $9,991
$9,416 $10,246
$8,931 $10,515
$8,399 $10,205
6/97 $8,379 $10,543
$8,372 $10,740
$8,313 $10,845
$8,100 $10,968
6/98 $8,079 $11,196
$8,978 $11,935
$9,101 $12,231
$8,543 $11,861
6/99 $8,061 $11,548
</TABLE>
Index comparison begins 11/30/95. The Merrill Lynch Global Bond Index is an
unmanaged measure of nearly 3,000 global government securities and Eurobonds.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Portfolio returns, do not reflect any fees or expenses. Portfolio returns
are based on net asset value and do not reflect any annuity-related costs. You
cannot invest directly in the Index.
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURNS
(As of June 30, 1999)
<S> <C> <C>
- --------------------------------------------------------------------------------
NET ASSET VALUE*
- --------------------------------------------------------------------------------
PERIOD
Life-of-Portfolio
(11/1/95) -5.65%
1 Year -0.23
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER C-VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(11/1/95) -6.97% -6.97%
1 Year -1.62 -1.62
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION 2
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(11/1/95) -6.97% -7.85%
1 Year -1.62 -6.64
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(11/1/95) -6.97% -8.37%
1 Year -1.62 -7.82
</TABLE>
All total returns shown assume reinvestment of distributions at net asset value.
* Reflects Portfolio performance only. Does not reflect any applicable
insurance fees or surrender charges.
** Reflects deduction of a 1.25% mortality and expense risk charge and a 0.15%
administrative expense charge. Does not reflect any applicable surrender
charges.
*** Reflects deduction of a 1.25% mortality and expense risk charge, a 0.15%
administrative expense charge and the applicable contingent deferred sales
charge (CDSC), as if the contract were surrendered at the end of each
period. There is no CDSC for C-Vision. For Vision and Vision 2, the maximum
CDSC of 7% declines over seven years; it is deducted only while the contract
is in the surrender charge period. Returns do not reflect a $30 annual
contract fee applied only until contract value reaches $50,000 ($35 and
$75,000 for C-Vision).
20 Past performance does not guarantee future results. Returns and share prices
fluctuate so that your investment, when redeemed, may be worth more or less
than its original cost.
<PAGE>
SWISS FRANC BOND PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/99
- --------------------------------------------------------------------------------
In the first half of calendar 1999, surging stock markets in the United States,
Japan and emerging markets around the world established a confident investing
environment. Investors' tolerance for risk rose with the world's stock markets
and Swiss Franc Bond Portfolio suffered accordingly. The following is a
discussion with the Portfolio's manager and leader of its investment team, Sal
Pramas.
Q: HOW DID THE PORTFOLIO PERFORM IN THIS DIFFICULT ENVIRONMENT?
A: The Portfolio declined 11.42% at net asset value for the six months ended
June 30, 1999. In comparison, the Merrill Lynch Global Bond Index returned
5.20%. The Portfolio, although close, did not quite meet its investment goal
of tracking the return of the Swiss franc, down 12.66% against the U.S.
dollar for the period.
Your portfolio attempts to track the value of the Swiss franc, by investing
in Swiss franc-denominated bonds with a maturity of three to five years.
While interest rates stayed steady for the first five months of the period,
they rose significantly in June hurting the price of many of the bonds held
by the Portfolio -- leading to the Portfolio's inability to match the return
of the Swiss franc. As of June 30, 1999, the average maturity of the bonds in
the Portfolio dropped slightly over the course of the six months to 3.17
years.
Q: WHY TRACK THE SWISS FRANC?
A: Historically, the Swiss franc has been a strong currency in times of economic
volatility. A haven for conservative investors, the Swiss franc rewarded
investors during 1998's volatile markets while in the first half of 1999
strong global equity markets have dimmed its appeal. The Swiss franc's
competitive advantage relies on the stability of Switzerland's internal
affairs in relation to the rest of the world, especially other global market
participants. Bad loans, inflation, poor trade balances and civil strife are
symptoms that affect the value of a country's currency. Across wars and
economic hard times, Switzerland's political neutrality and tight economic
controls have established the Swiss franc as a traditional safe haven against
the world's economic uncertainties.
Q: HOW DID A STRONG U.S. DOLLAR AND A WEAK EURO HURT THE SWISS FRANC?
A: Over the first half of the year, the Portfolio's performance suffered from
the strength of the U.S. dollar -- the Swiss franc's principal competition.
The dollar benefited from the United States' attractive high yields relative
to inflation, its economic strength and the record bull market that continues
to march on. This balance of stability and return is attracting capital from
around the world.
The perception that the euro, with its own independent central bank, might
be strong competition for the U.S. dollar did not pan out in the first half
of 1999. As the euro weakened against the dollar, Switzerland's central bank
attempted to keep the Swiss franc close to the euro to protect the country's
exporters. Consequently the Swiss franc has suffered with the new currency in
its first year.
Q: LOOKING FORWARD, HOW DO YOU SEE THE SWISS FRANC AND THE PORTFOLIO FARING IN
THE REST OF 1999?
A: With inflation and further interest hikes a strong possibility in the United
States, global volatility could return before the year-end. The prospect of
Y2K problems may also be a potential negative factor. Should global economic
problems arise, we believe Swiss Franc Bond Portfolio may do well in the
latter half of 1999 as investors seek shelter. However, if economic
volatility remains low and the world's stock markets strong, the Swiss franc
and consequently the Portfolio would most likely not fare as well. Either
way, we believe Swiss Franc Bond Portfolio is a viable hedge for long-term
conservative investors.
- --------------------------------------------------------------------------------
International investing may involve special risks, including differences in
accounting and currency, as well as economic and political instability.
21
<PAGE>
AMERICA INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/99
- --------------------------------------------------------------------------------
PORTFOLIO DIVERSIFICATION
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Government Agency Obligations 77%
U.S. Treasury Obligations 23%
</TABLE>
PORTFOLIO MATURITY
(Effective life as a percentage of total investment portfolio)
<TABLE>
<C> <S>
0-2 years 11%
2-5 years 29%
5-7 years 12%
7-10 years 36%
10-20 years 4%
20+ years 8%
</TABLE>
- --------------------------------------------------------------------------------
FIVE LARGEST HOLDINGS
(As a percentage of debt holdings)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
1. U.S. Treasury Bonds, 7.25%, 5/15/16 7.87%
2. U.S. Treasury Notes, 7.0%, 7/15/06 7.21
3. U.S. Treasury Bonds, 6.25%, 8/15/23 7.16
4. Government National Mortgage Association II, 6.5%, 2/20/29 4.89
5. Government National Mortgage Association, 6.0%, 10/15/28 4.74
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
<TABLE>
6/30/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $9.75 $10.29
Accumulation Unit Value 1.1497 1.1878
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
$0.271 $ - $0.009
</TABLE>
- --------------------------------------------------------------------------------
PERFORMANCE OF A $10,000 INVESTMENT
The following chart shows the value of an investment made in AMERICA INCOME
PORTFOLIO at net asset value, compared to the growth of Lehman Brothers
Government Bond Index.
<TABLE>
<CAPTION>
Lehman Brothers
America Income Government
Portfolio* Bond Index
<S> <C> <C>
3/95 $10,000 $10,000
6/95 $10,109 $10,620
$10,432 $10,809
12/95 $10,574 $11,302
$10,320 $11,046
6/96 $10,339 $11,098
$10,479 $11,285
12/96 $10,712 $11,615
$10,615 $11,520
6/97 $10,967 $11,919
$11,288 $12,318
12/97 $11,616 $12,727
$11,758 $12,919
6/98 $11,991 $13,261
$12,560 $13,994
12/98 $12,563 $13,981
$12,429 $13,781
6/99 $12,240 $13,664
</TABLE>
Index comparison begins 3/31/95. The Lehman Brothers Government Bond Index is an
unmanaged performance measure of U.S. Treasury debt, all publicly issued debt of
U.S. government agencies and quasi-federal corporations and corporate debt
guaranteed by the U.S. government. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Portfolio returns, do not reflect any fees
or expenses. Portfolio returns are based on net asset value and do not reflect
any annuity-related costs. You cannot invest directly in the Index.
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURNS
(As of June 30, 1999)
<S> <C> <C>
- --------------------------------------------------------------------------------
NET ASSET VALUE*
- --------------------------------------------------------------------------------
PERIOD
Life-of-Portfolio
(3/1/95) 4.77%
1 Year 2.08
- --------------------------------------------------------------------------------
ACCUMUULATION UNIT VALUE
PIONEER C-VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 3.36% 3.36%
1 Year 0.65 0.65
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION 2
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 3.36% 2.74%
1 Year 0.65 -4.48
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 3.36% 2.31%
1 Year 0.65 -5.69
</TABLE>
All total returns shown assume reinvestment of distributions at net asset value.
* Reflects Portfolio performance only. Does not reflect any applicable
insurance fees or surrender charges.
** Reflects deduction of a 1.25% mortality and expense risk charge and a 0.15%
administrative expense charge. Does not reflect any applicable surrender
charges.
*** Reflects deduction of a 1.25% mortality and expense risk charge, a 0.15%
administrative expense charge and the applicable contingent deferred sales
charge (CDSC), as if the contract were surrendered at the end of each
period. There is no CDSC for C-Vision. For Vision and Vision 2, the maximum
CDSC of 7% declines over seven years; it is deducted only while the contract
is in the surrender charge period. Returns do not reflect a $30 annual
contract fee applied only until contract value reaches $50,000 ($35 and
$75,000 for C-Vision).
22 Past performance does not guarantee future results. Returns and share prices
fluctuate so that your investment, when redeemed, may be worth more or less
than its original cost.
<PAGE>
AMERICA INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/99
- --------------------------------------------------------------------------------
Challenge and opportunity swept the bond market in the first half of 1999, as
interest rates reversed course and investors braced for price swings. The
following discussion with Richard M. Schlanger, details the investment
environment and portfolio strategies that influenced America Income Portfolio's
performance during that time. Mr. Schlanger is a member of the team responsible
for the daily management of America Income Portfolio.
Q: WITH INTEREST RATES RISING, HOW DID THE PORTFOLIO PERFORM?
A: The Portfolio produced an attractive level of income, but declined in share
price by $0.54. This decline in share price, plus the reinvestment of
dividends, generated a total return of -2.56%, at net asset value, for the
first half of the Portfolio's fiscal year. While we never like to see a
decline in total return, we believe the Portfolio's performance reflected the
rising interest rate environment that affected all fixed-income investors.
The Portfolio slightly underperformed the -2.35% average return of the 36
variable annuity general U.S. government underlying funds, as tracked by
Lipper, Inc. (Lipper is an independent firm that tracks annuity portfolio
performance.)
Q: WHAT CAUSED INTEREST RATES TO RISE?
A: There was a dramatic change in sentiment from the atmosphere that existed
early in the period. Investors faced a situation that seemed unlikely only
six months earlier - that the U.S. economy could overheat and reignite
inflation. Investors monitored strong labor and housing markets, rising stock
prices and high levels of consumer confidence and spending - and determined
that economic growth could become excessive. Concerns began to mount that the
Federal Reserve would initiate a series of rate hikes to cool inflationary
pressures. As the country's watchdog against inflation, the Fed did raise
short-term interest rates by 0.25 percentage points in June. However, after
this move, the Fed announced a "neutral" stance, suggesting that it does not
see a need to raise rates again in the very near future. We would not be
surprised if the Fed raised interest rates again, despite these remarks, so
we are taking a "wait and see" attitude.
Q: HOW DID RISING INTEREST RATES AFFECT THE PORTFOLIO'S INVESTMENTS?
A: As interest rates increased, investors began to move away from Treasurys.
Instead, they looked to higher yielding, more aggressive bonds.
Mortgage-backed securities are an example. They have the potential to pay
more income and their risk decreases as higher rates reduced the likelihood
of mortgage refinancing. As demand for these increased, mortgage-backed
securities began to rebound and outperform Treasurys.
Q: WHAT STRATEGIES DID YOU USE TO TAKE ADVANTAGE OF THESE OPPORTUNITIES?
A: Our strategy focuses on income, relative value and total return, while
maintaining the Portfolio's high standards of quality and diversification. We
increased holdings in mortgage-backed securities. With their yield advantages
over Treasurys, these securities enhanced the Portfolio's income stream. We
also looked to mortgage-backed securities to boost total return potential, as
we anticipate the difference in yields between mortgage-backed securities and
other bonds to return to more historical standards. We increased the
Portfolio's position in mortgage-backed securities from 42% on December 31 to
60% on June 30.
Q: HOW DOES THE BOND MARKET LOOK, GOING FORWARD?
A: Overall, the U.S. bond market is attractive with relatively high yields in a
low inflation environment. We believe there are many signs that the economy
could begin to slow. For example, in anticipation of Year 2000 issues, many
businesses increased capital spending early in 1999. This should slow in the
latter part of the year. On the consumer side, the rise in rates should put a
damper on housing and other interest rate-sensitive areas of the economy. If
economic growth doesn't slow on its own, we think the Fed will help it along
in the form of higher interest rates, despite their declared "neutral"
position.
23
<PAGE>
MONEY MARKET PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/99
- --------------------------------------------------------------------------------
Q: HOW DID THE PORTFOLIO PERFORM FOR THE PERIOD?
A: For the six months ended June 30, Money Market Portfolio provided current
income and a stable $1 share price. The Portfolio generated a total of $0.020
per share in dividends over the period. At the end of the period, it offered
shareowners a 7-day effective yield of 4.22%. Overall, total return was 1.97%
at net asset value for the period, which slightly trailed the 2.21% average
return for the 110 funds in the Lipper variable annuity money market
instrument underlying funds category. (Lipper is an independent research firm
that tracks annuity portfolio performance.)
Q: ON JUNE 30, THE FEDERAL RESERVE RAISED SHORT-TERM INTEREST RATES 0.25
PERCENTAGE POINTS. WHAT EFFECT WILL THIS HAVE ON THE ECONOMY AND MONEY MARKET
PORTFOLIO?
A: This is the first increase in over two years and was prompted by the Federal
Reserve's need to temper the rapidly growing U.S. economy. We think the
increase should be positive for shareowners, since your Portfolio holds
fixed-income instruments that have short maturities of one year or less,
typically six months. In the aggregate the Portfolio's average maturity must
be 90 days or less. When these short-term instruments mature, we have the
opportunity to take advantage of the rise in rates by replacing those
holdings that have reached maturity with higher-yielding instruments.
Q: WHAT STRATEGIES DID YOU USE IN MANAGING THE PORTFOLIO?
A: The Portfolio is conservative, but one of its investment objectives is to
provide income for shareowners. Over the period, we adjusted the maturity of
the Portfolio's securities to make the most of prevailing interest rates.
Typically, the Portfolio's average maturity is between 30 and 50 days. As
always, we worked to keep the portfolio liquid. At the end of the six-month
period, the Portfolio's average maturity was 34 days, slightly shorter than
the 39 days it was in April, reflecting our strategy to be ready to lock in
higher rates.
Q: WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF THE YEAR?
A: The interest rate increase on June 30 was much anticipated, although there
was some surprise at the Federal Reserve's statement that it was adopting a
neutral bias, suggesting it does not see a need to raise rates in the very
near future. Despite the Fed's comments, we would not be shocked to see
another increase in rates before the end of the year, especially if the
economy continues to grow at a heated pace.
Going forward, we will continue to focus on high-quality money market
instruments. We continue to believe that money market investments are an
important component in a diversified investment portfolio.
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
<TABLE>
<CAPTION>
6/30/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $1.00 $1.00
Accumulation Unit Value 1.1464 1.1317
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
$0.020 $ - $ -
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL
TOTAL RETURNS
(As of June 30, 1999)
<S> <C> <C>
- --------------------------------------------------------------------------------
NET ASSET VALUE*
- --------------------------------------------------------------------------------
PERIOD
Life-of-Portfolio
(3/1/95) 4.66%
1 Year 4.34
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER C-VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 3.20% 3.20%
1 Year 2.89 2.89
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION 2
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 3.20% 2.59%
1 Year 2.89 -2.36
- --------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE
PIONEER VISION
- --------------------------------------------------------------------------------
IF IF
PERIOD HELD** SURRENDERED***
Life
(3/1/95) 3.20% 2.15%
1 Year 2.89 -3.60
</TABLE>
All total returns shown assume reinvestment of distributions at net asset value.
* Reflects Portfolio performance only. Does not reflect any applicable
insurance fees or surrender charges.
** Reflects deduction of a 1.25% mortality and expense risk charge and a 0.15%
administrative expense charge. Does not reflect any applicable surrender
charges.
*** Reflects deduction of a 1.25% mortality and expense risk charge, a 0.15%
administrative expense charge and the applicable contingent deferred sales
charge (CDSC), as if the contract were surrendered at the end of each
period. There is no CDSC for C-Vision. For Vision and Vision 2, the maximum
CDSC of 7% declines over seven years; it is deducted only while the contract
is in the surrender charge period. Returns do not reflect a $30 annual
contract fee applied only until contract value reaches $50,000 ($35 and
$75,000 for C-Vision).
The Portfolio's investment adviser, Pioneer Investment Management, Inc. reduced
its management fee and certain other expenses, otherwise, returns would have
been lower. Past performance does not guarantee future results. An investment
in Money Market Portfolio is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Portfolio seeks to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Portfolio.
24
<PAGE>
EMERGING MARKETS PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
INVESTMENT IN SECURITIES - 100%
PREFERRED STOCKS - 8.3%
26,000 Banco Itau SA $ 13,290
200 Companhia Energetica de Minas Gerais
(A.D.R.) 4,200
350 Lukoil Holding (A.D.R.) 2,581
100,000 Petroleo Brasileiras SA 15,561
2,900 Siam Commercial Bank* 4,129
600 Tele Norte Leste Participacoes (A.D.R.) 11,138
370 Telesp Celular Participacoes SA (A.D.R.) 9,898
541 Telesp Participacoes SA (A.D.R.) 12,375
235 Tele Sudeste Celular Participacoes SA
(A.D.R.)* 6,815
--------
TOTAL PREFERRED STOCKS
(Cost $75,721) $ 79,987
--------
COMMON STOCKS - 91.5%
BASIC MATERIALS - 2.8%
AGRICULTURAL PRODUCTS - 0.1%
115 Grupo Industrial Maseca, SA de CV
(A.D.R.) $ 1,028
--------
CHEMICALS (SPECIALTY) - 0.4%
1,000 Reliance Industries Ltd. $ 4,073
--------
CONSTRUCTION (CEMENT &
AGGREGATES) - 2.3%
37 Cemex SA de CV (CPO) $ 183
1,975 Cemex SA de CV (Class B) 9,776
20,000 PT Jaya Real Property Tbk (Local
Shares)* 3,105
2,057 Siam City Cement Co., Ltd.* 8,479
--------
$ 21,543
--------
TOTAL BASIC MATERIALS $ 26,644
--------
CAPITAL GOODS - 4.1%
ELECTRICAL EQUIPMENT - 2.1%
1,000 Bharat Heavy Electricals Ltd.* $ 5,671
21,000 Pacific Electric Wire & Cable Co.* 14,628
--------
$ 20,299
--------
MACHINERY (DIVERSIFIED) - 2.0%
86,000 PT Komatsu Indonesia Tbk (Local Shares) $ 19,249
--------
TOTAL CAPITAL GOODS $ 39,548
--------
COMMUNICATION SERVICES - 16.8%
CELLULAR / WIRELESS
COMMUNICATIONS - 3.9%
130 Ceske Radiokomunikace (G.D.R.)* $ 4,485
1,040 Grupo Iusacell SA (Series L) (A.D.R.)* 13,520
12 SK Telecom Co., Ltd. (A.D.R.) 204
4,000 Smartone Telecommunications Holdings
Ltd. 14,229
6,000 Technology Resources Industries Bhd. 4,895
--------
$ 37,333
--------
TELEPHONE - 12.9%
330 Compania Anonima Nacional Telefonos de
Venezuela (A.D.R.) $ 8,992
500 Embratel Participacoes (A.D.R.)* 6,937
3,250 Grupo Carso Global Telecom* 20,564
<CAPTION>
SHARES VALUE
<C> <S> <C>
TELEPHONE - (CONTINUED)
201 Hellenic Telecommunication Organization
SA $ 4,303
400 Hellenic Telecommunication Organization
SA (A.D.R.) 4,425
250 Mahanagar Telephone Nigam Ltd. (G.D.R.) 2,537
275 Philippine Long Distance Telephone Co.
(A.D.R.) 8,284
400 PT Indosat Tbk (A.D.R.) 7,800
1,285 Rostelecom (A.D.R.) 12,609
450 Telefonica de Argentina SA (Class B)
(A.D.R.) 14,119
550 Telefonica del Peru SA (Class B)
(A.D.R.) 8,319
3,000 Telekom Malaysia Bhd. 11,211
540 Telekomunikasi Indonesia (A.D.R.) 6,716
610 Videsh Sanchar Nigam Ltd. (G.D.R.) 7,762
--------
$124,578
--------
TOTAL COMMUNICATION SERVICES $161,911
--------
CONSUMER CYCLICALS - 10.5%
AUTOMOBILES - 2.7%
58,000 Koc Holdings AS $ 3,641
50,000 PT Astra International Tbk* 22,744
--------
$ 26,385
--------
LEISURE TIME (PRODUCTS) - 2.0%
400 Bajaj Auto Ltd. $ 4,988
6,000 Berjaya Sports Toto Bhd. 13,895
--------
$ 18,883
--------
LODGING (HOTELS) - 0.7%
850 The Indian Hotels Co., Ltd. (G.D.R.) $ 6,481
--------
RETAIL (DEPARTMENT STORES) - 3.5%
1,000 Edgars Stores Ltd. $ 7,773
70,000 PT Matahari Putra Prima (Local Shares)* 9,097
3,500 PT Ramayana Lestari Sentosa (Local
Shares) 2,477
200 Shinsegae Department Store Co. 14,238
--------
$ 33,585
--------
RETAIL (SPECIALTY) - 0.6%
3,215 Cifra, SA de CV (Series C)* $ 5,881
--------
SERVICES (COMMERCIAL & CONSUMER) - 1.0%
200 Hansol CSN $ 9,814
--------
TOTAL CONSUMER CYCLICALS $101,029
--------
CONSUMER STAPLES - 11.0%
BROADCASTING
(TELEVISION / CABLE / RADIO) - 6.3%
60,000 Benpres Holdings Corp. $ 14,191
700 Benpres Holdings Corp. (G.D.R.) * 3,238
3,455 Grupo Radio Centro SA de CV (A.D.R.)* 18,139
373 Grupo Televisa SA (A.D.R.)* 16,715
1,600 TV Azteca, SA de CV (A.D.R.)* 8,300
--------
$ 60,583
--------
ENTERTAINMENT - 0.4%
1,200 Corporacion Interamericana de
Entretenimiento SA (Series B)* $ 3,905
--------
</TABLE>
The accompanying notes are an integral part of these financial statements. 25
<PAGE>
EMERGING MARKETS PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
FOODS - 2.2%
150 Cheil Jedang Corp. $ 11,806
5,000 Daya Guna Samudera (Local Shares) 2,870
1,800 Thai Union Frozen Products Public Co.
Ltd. 6,346
--------
$ 21,022
--------
HOUSEHOLD PRODUCTS (NON-DURABLES) - 0.3%
100,000 Arcelik AS* $ 3,554
--------
RESTAURANTS - 1.8%
13,500 Kentucky Fried Chicken Bhd. $ 17,266
--------
TOTAL CONSUMER STAPLES $106,330
--------
ENERGY - 1.9%
OIL & GAS (REFINING & MARKETING) - 1.9%
600 Bharat Petroleum Corp., Ltd. $ 3,638
1,370 Hindustan Petroleum Corp., Ltd. 7,848
244 SK Corp. 7,020
--------
TOTAL ENERGY $ 18,506
--------
FINANCIAL - 21.7%
BANKS (MAJOR REGIONAL) - 13.0%
344,000 Akbank T.A.S. $ 5,053
425 Banco de Galicia y Buenos Aires SA de CV
(A.D.R.) 8,606
616 Banco Frances Del Rio Plata SA (A.D.R.) 11,704
150 Creditcorp Ltd. 1,650
1,585 Development Bank of Singapore Ltd. 19,370
4,100 Grupo Financiero Banamex Accival (Class
O)* 10,364
600 Kookmin Bank 12,181
1,500 Malayan Banking Bhd. 4,500
1,597 Overseas-Union Bank Ltd. 7,694
250,000 PT Bank Internasional Indonesia 7,220
20,000 PT Lippo Bank Tbk* 1,083
825 Shinhan Bank 9,266
250 State Bank of India (G.D.R.) 3,044
292,600 Turkiye Is Bankasi 5,199
580 Uniao de Bancos Brasileiros SA (G.D.R.) 13,956
346,464 Yapi ve Kredi Bankasi AS (Receipts)* 4,679
--------
$125,569
--------
BANKS (MONEY CENTER) - 0.9%
1,500 Korea Exchange Bank* $ 8,423
--------
FINANCIAL (DIVERSIFIED) - 7.0%
2,000 DBS Land Ltd. $ 3,995
29,700 Grupo Financiero Bancomer (B Shares) 10,734
1,500 Henderson Land Development 8,623
150 Housing Development Finance Corp. Ltd. 7,683
1,000 Imperial Holdings Ltd.* 9,944
23,000 Land & General Bhd.* 8,958
2,200 Pakistan Investment Fund Inc. 4,537
4,000 Public Finance Bhd. 4,211
1,300 WEBS - Malaysia Index Series 8,937
--------
$ 67,622
--------
<CAPTION>
SHARES VALUE
<C> <S> <C>
INSURANCE (LIFE / HEALTH) - 0.1%
30 Interamerican SA* $ 666
--------
INSURANCE (MULTI-LINE) - 0.2%
2,000 Pacific Century Insurance Ltd.* $ 1,619
--------
INVESTMENT BANKING / BROKERAGE - 0.5%
2,000 AMMB Holdings Bhd. $ 5,105
--------
TOTAL FINANCIAL $209,004
--------
HEALTHCARE - 0.3%
HEALTHCARE (DRUGS & MAJOR
PHARMACEUTICALS) - 0.3%
100 Cipla Ltd. $ 3,300
--------
TOTAL HEALTHCARE $ 3,300
--------
TECHNOLOGY - 17.5%
COMMUNICATIONS EQUIPMENT - 1.6%
94 ECI Telecommunications Ltd. $ 3,120
125 Gilat Satellite Networks Ltd.* 6,562
200 Nice Systems Ltd. (A.D.R.)* 5,512
--------
$ 15,194
--------
COMPUTERS (NETWORKING) - 1.0%
4,000 D-Link Corp.* $ 9,598
--------
COMPUTERS (SOFTWARE & SERVICES) - 6.8%
335 Check Point Software Technologies Ltd.* $ 17,964
190 Formula Systems Ltd. (A.D.R.)* 5,831
300 Mastek Ltd. 4,136
320 NIIT Ltd. 14,997
280 Satyam Computer Services 8,184
800 Tecnomatix Technologies Ltd.* 14,000
--------
$ 65,112
--------
ELECTRONICS (COMPONENT
DISTRIBUTORS) - 2.9%
2,100 KCE Electronics Public Co., Ltd.* $ 5,268
225 L.G. Electronics 6,220
4,000 Phoenixtec Power Co., Ltd.* 7,988
350 Samsung Corp.* 8,225
--------
$ 27,701
--------
EQUIPMENT (SEMICONDUCTORS) - 1.1%
210 Orbotech Ltd.* $ 10,946
--------
SERVICES (COMPUTER SYSTEMS) - 1.8%
4,000 Dimension Data Holdings Ltd.* $ 17,700
--------
PHOTOGRAPHY / IMAGING - 2.3%
62,000 PT Modern Photo Tbk (Local Shares)* $ 22,159
--------
TOTAL TECHNOLOGY $168,410
--------
UTILITIES - 4.9%
ELECTRIC COMPANIES - 3.1%
300 BSES Ltd. $ 1,030
100 BSES Ltd. (G.D.R.) 1,013
707,000 Centrais Electricas Brasileiras SA 13,337
1,750 Mosenergo (A.D.R.) 7,844
3,650 Tata Power Co. Ltd. 6,458
--------
$ 29,682
--------
</TABLE>
26 The accompanying notes are an integral part of these financial statements.
<PAGE>
EMERGING MARKETS PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
POWER PRODUCERS (INDEPENDENT) - 1.8%
7,000 First Philippine Holdings Corp. $ 7,910
1,000 Unified Energy Systems (G.D.R.)* 9,685
--------
$ 17,595
--------
TOTAL UTILITIES $ 47,277
--------
TOTAL COMMON STOCKS
(Cost $739,374) $881,959
--------
WARRANTS - 0.2%
2,900 Siam Commercial Bank, 5 / 10 / 02* $ 1,868
--------
TOTAL WARRANTS
(Cost $0) $ 1,868
--------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $815,095)(a) $963,814
--------
</TABLE>
* Non-income producing security.
(a) Distribution of investments by country, as a percentage of total equity
holdings, is as follows:
<TABLE>
<S> <C>
Mexico 12.4%
Indonesia 10.8
Brazil 11.2
India 9.6
South Korea 9.1
Malaysia 8.2
Israel 6.6
South Africa 3.7
Argentina 3.6
Philippines 3.5
Russia 3.4
Taiwan 3.3
Singapore 3.2
Thailand 2.7
Hong Kong 2.5
Turkey 2.3
Peru 1.0
Greece 1.0
Others (individually less than 1%) 1.9
-----------
100.0%
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 27
<PAGE>
EUROPE PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
INVESTMENT IN SECURITIES - 93.1%
PREFERRED STOCK - 1.4%
250 SAP AG $ 99,815
-----------
TOTAL PREFERRED STOCK
(Cost $83,805) $ 99,815
-----------
COMMON STOCKS - 91.7%
BASIC MATERIALS - 2.4%
CHEMICALS - 0.8%
1,300 BASF AG $ 57,396
-----------
CHEMICALS (DIVERSIFIED) - 1.6%
2,600 Hoechst AG $ 117,604
-----------
TOTAL BASIC MATERIALS $ 175,000
-----------
CAPITAL GOODS - 11.8%
AEROSPACE / DEFENSE - 1.0%
11,200 British Aerospace Plc $ 73,098
-----------
ENGINEERING & CONSTRUCTION - 2.9%
17,100 Ashtead Group Plc $ 47,169
900 IHC Caland NV 35,238
350 Suez Lyonnaise des Eaux 63,073
360 Technip 40,357
300 VA Technologies AG 27,155
-----------
$ 212,992
-----------
MACHINERY (DIVERSIFIED) - 4.4%
16,700 Invensys Plc $ 79,323
2,000 Sidel, SA (Bearer Shares) 242,956
-----------
$ 322,279
-----------
MANUFACTURING (DIVERSIFIED) - 2.0%
950 Mannesmann AG $ 141,637
-----------
OFFICE EQUIPMENT & SUPPLIES - 0.5%
2,130 Koninklijke Ahrend NV $ 36,980
-----------
TRUCKS & PARTS - 1.0%
900 Valeo $ 74,185
-----------
TOTAL CAPITAL GOODS $ 861,171
-----------
COMMUNICATION SERVICES - 10.3%
CELLULAR / WIRELESS
TELECOMMUNICATIONS - 3.7%
1,700 Libertel NV (144A)* $ 33,280
3,000 Sonera Group Plc 67,725
10,500 Telecom Italia Mobile SpA* 38,623
4,000 Telecom Italia Mobile SpA Di Risp 23,863
5,500 Vodafone Group Plc 108,887
-----------
$ 272,378
-----------
TELECOMMUNICATIONS (LONG
DISTANCE) - 1.9%
7,000 British Telecom Plc $ 117,178
100 British Telecom Plc (A.D.R.) 17,125
-----------
$ 134,303
-----------
<CAPTION>
SHARES VALUE
<C> <S> <C>
TELEPHONE - 4.7%
500 Gobal Telesystems Group, Inc.* $ 40,500
1,000 Portugal Telecom SA (A.D.R.) 41,187
160 Swisscom AG* 60,177
4,500 Telecom Italia SpA 46,737
9,000 Telecom Italia SpA Di Risp 48,777
1,674 Telefonica SA 80,566
153 Telefonica de Espana 22,510
-----------
$ 340,454
-----------
TOTAL COMMUNICATION SERVICES $ 747,135
-----------
CONSUMER CYCLICALS - 9.2%
AUTOMOBILES - 0.9%
560 DaimlerChrysler AG $ 48,468
150 DaimlerChrysler AG (NY Shares) 13,331
-----------
$ 61,799
-----------
CONSUMER (JEWELRY, NOVELTIES &
GIFTS) - 0.8%
565 TAG Heuer International SA $ 58,847
-----------
DISTRIBUTORS (DURABLES) - 1.5%
4,000 Buhrman NV $ 64,500
1,290 Hagemeyer NV 42,134
-----------
$ 106,634
-----------
RETAIL (SPECIALTY) - 0.6%
105 Selecta Group $ 41,854
-----------
SERVICES (COMMERCIAL & CONSUMER) - 4.8%
6,000 Hays Plc $ 62,703
18 Kuoni Reisen Holding AG (Series B) 69,378
6,000 Select Appointments Holdings Plc 71,593
600 Select Appointments Holdings Plc
(A.D.R.) 14,400
1,200 TNT Post Group NV 28,623
1,268 Vivendi 102,624
-----------
$ 349,321
-----------
TEXTILES (HOME FURNISHINGS) - 0.6%
2,400 Industrie Natuzzi SpA (A.D.R.) $ 46,650
-----------
TOTAL CONSUMER CYCLICALS $ 665,105
-----------
CONSUMER STAPLES - 9.8%
BROADCASTING
(CABLE / TELEVISION / RADIO) - 1.5%
3,300 Reuters Group Plc $ 43,746
1,250 United Pan-Europe Communications NV* 67,745
-----------
$ 111,491
-----------
ENTERTAINMENT - 1.3%
4,500 Pearson Plc $ 90,508
-----------
FOODS - 2.6%
350 Group Danone $ 90,156
10,714 Unilever Plc 97,612
-----------
$ 187,768
-----------
PERSONAL CARE - 0.6%
7,000 Safilo $ 42,193
-----------
</TABLE>
28 The accompanying notes are an integral part of these financial statements.
<PAGE>
EUROPE PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
RESTAURANTS - 1.1%
8,000 Compass Group Plc $ 79,380
-----------
RETAIL STORES (FOOD CHAINS) - 1.6%
600 Carrefour Supermarche SA $ 88,095
350 Delhaize-Le Lion 29,769
-----------
$ 117,864
-----------
SERVICES (EMPLOYMENT) - 1.1%
150 Adecco SA* $ 80,333
-----------
TOTAL CONSUMER STAPLES $ 709,537
-----------
ENERGY - 5.2%
OIL (INTERNATIONAL INTEGRATED) - 3.7%
400 Elf Aquitaine SA $ 58,647
400 Elf Aquitaine SA (A.D.R.) 29,425
9,100 Fortum Oyj* 44,068
18,000 Shell Transport & Trading Co. 134,628
-----------
$ 266,768
-----------
OIL & GAS (REFINING & MARKETING) - 1.5%
7,000 ENI SpA $ 41,760
300 ENI SpA (A.D.R.) 18,000
1,500 Repsol SA (L Shares) 30,601
900 Repsol SA (A.D.R.) 18,281
-----------
$ 108,642
-----------
TOTAL ENERGY $ 375,410
-----------
FINANCIAL - 19.5%
BANKS (MAJOR REGIONAL) - 9.1%
9,000 Banca Fideuram SpA $ 52,393
2,000 Banca Popolare di Brescia 85,622
8,000 Banca Popolare di Milano 61,739
6,060 Banco de Santander SA 63,064
620 Banque Paribas* 69,439
620 Credit Commercial de France 66,948
670 Deutsche Pfandbriefbank AG 60,749
40 Julius Baer Holding AG 113,926
4,800 Svenska Handelbanken 57,680
400 Unidanmark A / S 26,604
-----------
$ 658,164
-----------
BANKS (MONEY CENTER) - 2.8%
5,000 Lloyds TSB Group Plc $ 67,917
3,000 Royal Bank Of Scotland Group 60,906
250 UBS AG 74,579
-----------
$ 203,402
-----------
BANKS (REGIONAL) - 0.8%
3,700 Halifax Plc $ 44,511
4,000 Monte Dei Paschi di Siena* 17,722
-----------
$ 62,233
-----------
FINANCIAL (DIVERSIFIED) - 0.7%
1,000 Internationale Nederlanden Groep NV $ 54,093
-----------
<CAPTION>
SHARES VALUE
<C> <S> <C>
INSURANCE (LIFE / HEALTH) - 1.8%
7,000 Mediolanum SpA $ 53,733
5,000 Prudential Corp. Plc 73,611
-----------
$ 127,344
-----------
INSURANCE (MULTI-LINE) - 3.3%
150 Allianz AG $ 41,575
490 Axa 59,726
300 Axa (A.D.R.) 18,694
7,727 Royal & Sun Alliance Insurance Group Plc 69,424
95 Zurich Versicherungsgesellschaft* 53,992
-----------
$ 243,411
-----------
INVESTMENT MANAGEMENT - 1.0%
8,000 Amvescap Plc $ 71,247
-----------
TOTAL FINANCIAL $ 1,419,894
-----------
HEALTHCARE - 9.2%
BIOTECHNOLOGY - 1.0%
5,000 Celltech Plc* $ 38,618
500 Qiagen NV* 33,229
-----------
$ 71,847
-----------
HEALTHCARE (DRUGS / MAJOR
PHARMACEUTICALS) - 6.1%
1,700 Fabrica Espanola de Productos Quimicos y
Farmaceuticos, SA $ 20,879
2,900 Glaxo Wellcome Plc 80,172
400 Glaxo Wellcome Plc (A.D.R.) 22,650
39 Novartis AG 56,918
200 Novartis AG (A.D.R.) 14,675
8 Roche Holdings AG 82,191
200 Roche Holdings AG (A.D.R.) 20,800
6,500 Smithkline Beecham Plc 84,036
300 Smithkline Beecham Plc (A.D.R.) 19,819
900 UCB SA 38,484
-----------
$ 440,624
-----------
HEALTHCARE (MEDICAL
PRODUCTS / SUPPLIES) - 2.1%
20,000 Biora AB* $ 84,823
3,500 Biora AB (A.D.R.)* 29,969
890 Gehe AG 40,899
-----------
$ 155,691
-----------
TOTAL HEALTHCARE $ 668,162
-----------
TECHNOLOGY - 8.4%
COMMUNICATIONS EQUIPMENT - 2.4%
1,200 Nokia AB $ 107,136
300 Nokia AB (A.D.R.) 27,469
1,200 Telefonaktiebolaget LM Ericsson (Series
B) $ 38,524
-----------
$ 173,129
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 29
<PAGE>
EUROPE PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMPUTERS (SOFTWARE & SERVICES) - 2.2%
2,300 Dassault Systemes SA $ 75,952
700 GFI Informatique 46,088
1,000 Tieto Corp. (B Shares) 41,729
-----------
$ 163,769
-----------
ELECTRONICS (COMPONENT
DISTRIBUTORS) - 1.0%
900 Siemens AG $ 69,363
-----------
ELECTRONICS (SEMICONDUCTORS) - 0.6%
620 STMicroelectronics NV $ 41,268
-----------
SERVICES (COMPUTER SYSTEMS) - 1.6%
3,070 Getronics NV $ 117,986
-----------
SERVICES (DATA PROCESSING) - 0.6%
4,600 Merkantildata ASA $ 44,361
-----------
TOTAL TECHNOLOGY $ 609,876
-----------
TRANSPORTATION - 1.0%
RAILWAYS - 1.0%
20,000 Stagecoach Holdings Plc $ 71,562
-----------
TOTAL TRANSPORTATION $ 71,562
-----------
UTILITIES - 4.9%
ELECTRIC COMPANIES - 3.2%
2,500 Endesa SA $ 53,269
500 Endesa SA (A.D.R.)* 10,625
8,800 Scottish Power Plc 76,221
300 Scottish Power Plc (A.D.R.) 10,500
6,000 Union Electrica Fenosa SA 78,389
-----------
$ 229,004
-----------
WATER UTILITIES - 1.7%
1,100 Aguas De Barcelona $ 57,236
5,500 United Utilities Plc 66,841
-----------
$ 124,077
-----------
TOTAL UTILITIES $ 353,081
-----------
TOTAL COMMON STOCKS
(Cost $6,713,714) $ 6,655,933
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $6,797,519)(a) $ 6,755,748
-----------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
TEMPORARY CASH INVESTMENT - 6.9%
REPURCHASE AGREEMENT - 6.9%
$ 500,000 Credit Suisse First Boston Group, Inc.,
4.7%, dated 6 / 30 / 99, repurchase
price of $500,000 plus accrued interest
on 7 / 1 / 99, collateralized by
$416,000 U.S. Treasury Notes, 11.125%,
8 / 15 / 03 $ 500,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $500,000) $ 500,000
-----------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $7,297,519) $ 7,255,748
-----------
</TABLE>
144A Security is exempt from registration under Rule 144A of the Seurities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At June 30, 1999, the
value of these securities amounted to $33,280 or 0.4% of total net assets.
* Non-income producing security.
(a) Distribution of investments by country of issue, as a percentage of total
equity holdings, is as follows:
<TABLE>
<S> <C>
United Kingdom 28.1%
France 17.3
Switzerland 10.8
Germany 10.2
Italy 8.5
Netherlands 7.6
Spain 6.4
Finland 4.3
Sweden 3.1
Belgium 1.0
Others (individually less than 1%) 2.7
-----------
100.0%
-----------
</TABLE>
30 The accompanying notes are an integral part of these financial statements.
<PAGE>
INTERNATIONAL GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
INVESTMENT IN SECURITIES - 95.1%
CONVERTIBLE CORPORATE BOND - 0.9%
$ 300,000 Finlayson Global Corp., Ltd., 0.00%,
2 / 19 / 04 (144A)* $ 469,500
-----------
TOTAL CONVERTIBLE CORPORATE BOND
(Cost $305,074) $ 469,500
-----------
<CAPTION>
SHARES
<C> <S> <C>
PREFERRED STOCKS - 2.2%
55,179 News Corp. Ltd. $ 419,840
285,000 Petroleo Brasileiras SA 44,267
3,500 Telecomunicacoes Brasileiras (A.D.R.) 315,656
11,600 Tele Sudeste Celular Participacoes SA
(A.D.R.)* 336,400
-----------
TOTAL PREFERRED STOCKS
(Cost $974,670) $ 1,116,163
-----------
COMMON STOCKS - 92.0%
BASIC MATERIALS - 5.9%
CHEMICALS - 0.9%
11,000 BASF AG $ 485,666
-----------
CHEMICALS (DIVERSIFIED) - 2.1%
14,000 Hoechst AG $ 633,253
100,000 WMC Ltd. 429,021
-----------
$ 1,062,274
-----------
CONSTRUCTION (CEMENT &
AGGREGATES) - 1.6%
2,112 Cemex SA de CV (CPO) $ 10,431
55,000 Cemex SA de CV (Class B) 272,231
500 Forbo Holdings AG 198,663
309 Holderbank Financiere Glarus AG (Bearer
Shares) 364,546
-----------
$ 845,871
-----------
PAPER & FOREST PRODUCTS - 1.3%
21,000 Kymmene OY $ 670,758
-----------
TOTAL BASIC MATERIALS $ 3,064,569
-----------
CAPITAL GOODS - 9.1%
AEROSPACE / DEFENSE - 1.7%
78,000 British Aerospace Plc $ 509,077
11,000 Thomson CSF 381,951
-----------
$ 891,028
-----------
ELECTRICAL EQUIPMENT - 1.2%
6,484 ABB AG* $ 610,715
-----------
ENGINEERING & CONSTRUCTION - 0.9%
2,600 Suez Lyonnaise des Eaux $ 468,541
-----------
MACHINERY (DIVERSIFIED) - 0.9%
55,000 Invensys Plc $ 261,243
17,000 Valmet Corp. 187,421
-----------
$ 448,664
-----------
<CAPTION>
SHARES VALUE
<C> <S> <C>
MANUFACTURING (DIVERSIFIED) - 1.4%
5,000 Mannesmann AG $ 745,458
-----------
OFFICE EQUIPMENT & SUPPLIES - 2.1%
21,000 Canon, Inc. $ 604,217
9,000 Societe BIC SA 474,322
-----------
$ 1,078,539
-----------
TRUCKS & PARTS - 0.9%
5,500 Valeo $ 453,354
-----------
TOTAL CAPITAL GOODS $ 4,696,299
-----------
COMMUNICATION SERVICES - 12.7%
CELLULAR / WIRELESS
TELECOMMUNICATIONS - 4.2%
11,200 Libertel NV (144A)* $ 219,258
13 NTT Mobile Communications Network, Inc.* 176,271
52 NTT Mobile Communications Network, Inc.
(New Shares)* 696,486
26,000 Orange Plc 379,908
36,000 Vodafone Group Plc 712,717
-----------
$ 2,184,640
-----------
TELECOMMUNICATIONS (LONG
DISTANCE) - 1.5%
42,000 Cable & Wireless Optus Ltd. $ 535,002
50,000 Telecom Corp. of New Zealand 214,567
-----------
$ 749,569
-----------
TELEPHONE - 7.0%
36,000 British Telecom Plc $ 602,632
5,500 Philippine Long Distance Telephone Co.
(A.D.R.) 165,687
1,200 Swisscom AG 451,331
58,077 Telecom Italia SpA 603,183
105,000 Telecom Italia SpA Di Risp 569,062
13,779 Telefonica SA* 663,151
14,040 Telekomunikasi Indonesia (A.D.R.) 174,623
29,200 Videsh Sanchar Nigam Ltd. (G.D.R.) 371,581
-----------
$ 3,601,250
-----------
TOTAL COMMUNICATION SERVICES $ 6,535,459
-----------
CONSUMER CYCLICALS - 11.5%
AUTOMOBILES - 2.7%
700 Bayerische Motoren Werke AG $ 481,070
4,512 DaimlerChrysler AG 390,511
12,000 Renault SA 521,769
-----------
$ 1,393,350
-----------
BUILDING MATERIALS - 0.6%
46,707 Williams Plc $ 308,384
-----------
DISTRIBUTORS (DURABLES) - 0.9%
29,000 Buhrmann NV $ 467,624
-----------
HARDWARE & TOOLS - 1.0%
45,000 Makita Corp. $ 509,343
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 31
<PAGE>
INTERNATIONAL GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
HOUSEHOLD FURNISHINGS &
APPLIANCES - 2.6%
30,000 Fisher & Paykel Industries Ltd. $ 95,363
2,700 Ryohin Keikaku Ltd. 679,744
5,400 Sony Corp. 582,637
-----------
$ 1,357,744
-----------
LEISURE TIME (PRODUCTS) - 0.6%
70,000 Berjaya Sports Toto Bhd. $ 162,105
1,500 Club Mediterranee SA* 159,035
-----------
$ 321,140
-----------
PUBLISHING (NEWSPAPERS) - 0.9%
70,000 Reed International Plc $ 465,073
-----------
RETAIL (SPECIALTY) - 0.8%
210,000 Cifra SA de CV (Series C)* $ 384,165
-----------
SERVICES (COMMERCIAL & CONSUMER) - 1.0%
6,545 Vivendi $ 529,713
-----------
TEXTILES (APPAREL) - 0.4%
165 Hugo Boss AG $ 197,889
-----------
TOTAL CONSUMER CYCLICALS $ 5,934,425
-----------
CONSUMER STAPLES - 5.2%
BEVERAGES (NON-ALCOHOLIC) - 0.4%
36,000 Cadbury Schweppes Plc $ 229,250
-----------
BROADCASTING
(TELEVISION / RADIO / CABLE) - 1.2%
11,000 United Pan-Europe Communications NV* $ 596,161
-----------
ENTERTAINMENT - 0.6%
5,000 Oriental Land Company, Ltd. $ 304,258
-----------
FOODS - 1.7%
1,800 Groupe Danone $ 463,658
329,250 JG Summit Holding, Inc.+* 29,983
65,000 Tate & Lyle Plc 407,520
-----------
$ 901,161
-----------
HOUSEHOLD PRODUCTS (NON-DURABLES) - 1.3%
23,000 Kao Corp. $ 646,548
-----------
TOTAL CONSUMER STAPLES $ 2,677,378
-----------
ENERGY - 3.5%
OIL (INTERNATIONAL INTEGRATED) - 2.9%
4,300 Elf Aquitaine SA $ 630,461
110,000 Fortum Oyj* 532,691
44,000 Shell Transport & Trading Co. 329,090
-----------
$ 1,492,242
-----------
OIL & GAS (REFINING & MARKETING) - 0.6%
15,000 Repsol SA (L Shares) $ 306,014
-----------
TOTAL ENERGY $ 1,798,256
-----------
FINANCIAL - 20.1%
BANKS (MAJOR REGIONAL) - 5.9%
40,000 Australia & New Zealand Banking Ltd. $ 293,744
13,500 Banco Popolare di Brescia 577,949
55,000 Banco Popolare di Milano 424,453
<CAPTION>
SHARES VALUE
<C> <S> <C>
BANKS (MAJOR REGIONAL) - (CONTINUED)
46,600 Banco de Santander Central Hispano SA $ 484,945
1,400 Credit Suisse Group 242,124
2,300 Deutsche Pfandbriefbank AG 208,543
25,000 Development Bank of Singapore Ltd. 305,523
9,000 Housing & Commercial Bank, Korea 283,801
18,000 Svenska Handelbanken 216,299
-----------
$ 3,037,381
-----------
BANKS (MONEY CENTER) - 2.1%
14,000 Barclays Plc $ 408,690
9,000 Lloyds TSB Group Plc 122,250
27,000 Royal Bank of Scotland Group 548,157
-----------
$ 1,079,097
-----------
BANKS (REGIONAL) - 0.9%
34,000 Halifax Plc $ 409,018
18,000 Monte Dei Paschi di Siena* 79,749
-----------
$ 488,767
-----------
FINANCIAL (DIVERSIFIED) - 4.8%
79,000 Canary Wharf Plc* $ 498,269
20,000 Cheung Kong Holdings Ltd. 177,867
7,180 Nichiei Co., Ltd. 629,252
1,300 Shohkoh Fund 932,948
40,000 Westfield Holdings Ltd. 244,853
-----------
$ 2,483,189
-----------
INSURANCE (LIFE / HEALTH) - 1.0%
27,000 Prudential Corp. Plc $ 397,499
900 Union des Assurances Federal 106,641
-----------
$ 504,140
-----------
INSURANCE (MULTI-LINE) - 5.1%
1,000 Allianz AG $ 277,164
35,000 Allied Zurich Plc 437,957
5,000 Assurances Generales de France 240,587
4,000 Axa 487,562
3,000 Axa Colonia Konzern AG 287,468
88,000 Pacific Century Insurance Ltd.* 71,949
45,454 Royal & Sun Alliance Group Plc 408,387
730 Zurich Allied AG 414,890
-----------
$ 2,625,964
-----------
INVESTMENT BANKING / BROKERAGE - 0.3%
60,000 AMMB Holdings Bhd. $ 153,158
-----------
TOTAL FINANCIAL $10,371,696
-----------
HEALTHCARE - 4.8%
HEALTHCARE (DRUGS / MAJOR
PHARMACEUTICALS) - 3.7%
15,000 Glaxo Wellcome Plc $ 414,683
355 Novartis AG 518,098
9,432 Rhone-Poulenc SA 430,616
50 Roche Holdings AG 513,694
-----------
$ 1,877,091
-----------
</TABLE>
32 The accompanying notes are an integral part of these financial statements.
<PAGE>
INTERNATIONAL GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
HEALTHCARE (MEDICAL
PRODUCTS / SUPPLIES) - 1.1%
26,000 Terumo Corp. $ 579,330
-----------
TOTAL HEALTHCARE $ 2,456,421
-----------
TECHNOLOGY - 12.6%
COMMUNICATIONS EQUIPMENT - 2.6%
7,403 ECI Telecommunications Ltd. $ 245,687
4,000 Matsushita Communication Industrial Co.,
Ltd. 286,068
9,000 Nokia AB 803,518
-----------
$ 1,335,273
-----------
COMPUTERS (NETWORKING) - 1.0%
5,500 Equant NV* $ 506,623
-----------
COMPUTERS (SOFTWARE & SERVICES) - 1.3%
5,500 Check Point Software Technologies Ltd.* $ 294,937
2,000 Softbank Corp. 405,291
-----------
$ 700,228
-----------
ELECTRONICS (COMPONET
DISTRIBUTORS) - 3.3%
5,520 Philips Electronics NV $ 544,012
9,000 Siemens AG 693,631
62,000 Toshiba Corp. 442,381
-----------
$ 1,680,024
-----------
ELECTRONICS (INSTRUMENTATION) - 0.5%
71,200 Elec & Eltek International Co., Ltd. $ 277,680
-----------
ELECTRONICS (SEMICONDUCTORS) - 3.9%
5,000 Rohm Co., Ltd. $ 783,382
5,000 STMicroelectronics NV 332,803
86,100 Taiwan Semiconductor Manufacturing Co.* 329,206
8,000 Tokyo Electron Ltd. 543,034
-----------
$ 1,988,425
-----------
TOTAL TECHNOLOGY $ 6,488,253
-----------
TRANSPORTATION - 2.6%
RAILROADS - 1.3%
160,000 Malaysia International Shipping Bhd. $ 292,632
18,000 Railtrack Group Plc 368,843
-----------
$ 661,475
-----------
SHIPPING - 1.3%
15,000 Brambles Industries Ltd. $ 394,647
20,000 Peninsular & Orient Steam Navigation Co. 304,216
-----------
$ 698,863
-----------
TOTAL TRANSPORTATION $ 1,360,338
-----------
UTILITIES - 4.0%
ELECTRIC COMPANIES - 3.0%
57,000 British Energy Plc $ 484,721
18,500 Electricidade de Portugal, SA 332,814
80,000 HongKong Electric Holdings Ltd. 257,778
53,000 Scottish Power Plc 459,059
-----------
$ 1,534,372
-----------
<CAPTION>
SHARES VALUE
<C> <S> <C>
POWER PRODUCERS (INDEPENDENT) - 1.0%
9,000 Veba AG $ 528,570
-----------
TOTAL UTILITIES $ 2,062,942
-----------
TOTAL COMMON STOCKS
(Cost $42,047,218) $47,446,036
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $43,326,962)(a) $49,031,699
-----------
<CAPTION>
PRINCIPAL
AMOUNT
<C> <S> <C>
TEMPORARY CASH INVESTMENT - 4.9%
COMMERCIAL PAPER - 4.9%
$2,534,000 Household Finance Corp., 5.75%,
7 / 1 / 99 $ 2,534,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $2,534,000) $ 2,534,000
-----------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $45,860,962) $51,565,699
-----------
</TABLE>
* Non-income producing security.
+ Security is restricted for resale until receipt of shares in six month
intervals through January 2000.
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At June 30, 1999, the
value of these securities amounted to $688,758 or 1.3% of total net assets.
(a) Distribution of investments by country of issue, as a percentage of total
equity holdings is as follows:
<TABLE>
<S> <C>
United Kingdom 20.4%
Japan 18.0
France 12.6
Germany 10.1
Switzerland 6.8
Italy 4.6
Finland 4.5
Netherlands 3.7
Australia 3.6
Spain 3.0
Singapore 2.1
Brazil 1.4
Mexico 1.4
Malaysia 1.2
Israel 1.1
Hong Kong 1.0
Others (Individually less than 1%) 4.5
-----------
100.0%
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 33
<PAGE>
CAPITAL GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS - 93.6%
BASIC MATERIALS - 5.5%
CHEMICALS - 1.5%
23,000 The Geon Co. $ 741,750
14,000 IMC Global Inc. 246,750
41,000 Lyondell Chemical Co. 845,625
------------
$ 1,834,125
------------
CHEMICALS (SPECIALTY) - 1.2%
31,000 Borden Chemicals & Plastics, L.P.* $ 220,875
74,000 Wellman, Inc. 1,179,375
------------
$ 1,400,250
------------
GOLD & PRECIOUS METALS MINING - 0.4%
27,800 Barrick Gold Corp. $ 538,625
------------
METALS MINING - 0.6%
15,000 Penn Engineering & Manufacturing Corp. $ 337,500
24,000 USEC Inc. 357,000
------------
$ 694,500
------------
PAPER & FOREST PRODUCTS - 1.8%
17,000 Bowater, Inc. $ 803,250
59,500 Louisiana-Pacific Corp. 1,413,125
------------
$ 2,216,375
------------
TOTAL BASIC MATERIALS $ 6,683,875
------------
CAPITAL GOODS - 9.1%
AEROSPACE / DEFENSE - 0.7%
21,500 Precision Castparts Corp. $ 913,750
------------
ELECTRICAL EQUIPMENT - 3.7%
13,000 CommScope, Inc.* $ 399,750
13,100 Molex, Inc. 412,650
29,500 Molex, Inc. (Non-voting) 1,091,500
25,500 SCI Systems, Inc.* 1,211,250
69,375 Vishay Intertechnology, Inc. 1,456,875
------------
$ 4,572,025
------------
ENGINEERING & CONSTRUCTION - 0.7%
80,000 Morrison Knudsen Corp.* $ 825,000
------------
MACHINERY (DIVERSIFIED) - 1.0%
35,000 Kaydon Corp. $ 1,176,875
------------
MANUFACTURING (SPECIALIZED) - 1.8%
34,000 Sealed Air Corp.* $ 2,205,750
------------
METAL FABRICATORS - 1.2%
17,000 Avondale Industries, Inc. $ 663,000
47,500 Brush Wellman, Inc. 860,937
------------
$ 1,523,937
------------
TOTAL CAPITAL GOODS $ 11,217,337
------------
COMMUNICATION SERVICES - 4.2%
TELEPHONE - 4.2%
13,100 Alltel Corp. $ 936,650
52,000 Frontier Corp. 3,068,000
<CAPTION>
SHARES VALUE
<C> <S> <C>
TELEPHONE - (CONTINUED)
15,000 Telephone and Data Systems, Inc. $ 1,095,937
------------
TOTAL COMMUNICATION SERVICES $ 5,100,587
------------
CONSUMER CYCLICALS - 11.9%
AUTO PARTS & EQUIPMENT - 1.6%
26,200 ITT Industries Inc. $ 998,875
19,500 Lear Corp.* 970,125
------------
$ 1,969,000
------------
HOUSEWARES - 1.5%
40,000 Newell Rubbermaid Co. $ 1,860,000
------------
LEISURE TIME (PRODUCTS) - 2.3%
24,500 Hasbro, Inc. $ 684,468
80,180 Mattel, Inc. 2,119,758
------------
$ 2,804,226
------------
PUBLISHING - 0.6%
45,500 PRIMEDIA, Inc.* $ 770,656
------------
PUBLISHING (NEWSPAPERS) - 0.3%
7,000 Dow Jones & Company, Inc. $ 371,437
------------
RETAIL (GENERAL MERCHANDISE) - 0.3%
23,400 Kmart Corp.* $ 384,637
------------
RETAIL (SPECIALTY) - 4.7%
53,000 Borders Group, Inc. $ 838,062
55,300 Cole National Corp.* 438,943
54,100 Helig-Myers Co. 368,556
80,000 OfficeMax, Inc.* 960,000
91,000 Pep Boys - Manny, Moe & Jack 1,967,875
118,000 Venator Group, Inc.* 1,231,625
------------
$ 5,805,061
------------
TEXTILES (APPAREL) - 0.6%
66,000 The Stride Rite Corp. $ 680,625
------------
TOTAL CONSUMER CYCLICALS $ 14,645,642
------------
CONSUMER STAPLES - 11.7%
ENTERTAINMENT - 2.0%
57,000 Viacom, Inc. (Class B) (Non-voting)* $ 2,508,000
------------
FOODS - 3.1%
18,000 Hershey Foods Corp. $ 1,068,750
26,000 Ralston Purina Co. 791,375
23,000 Sara Lee Corp. 521,813
61,500 Tyson Foods, Inc. 1,383,750
------------
$ 3,765,688
------------
RESTAURANTS - 2.9%
81,500 Lone Star Steakhouse & Saloon, Inc.* $ 792,078
66,000 McDonald's Corp. 2,726,625
------------
$ 3,518,703
------------
SERVICES (EMPLOYMENT) - 0.8%
71,000 Modis Professional Services, Inc.* $ 976,250
------------
</TABLE>
34 The accompanying notes are an integral part of these financial statements.
<PAGE>
CAPITAL GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
RETAIL STORES (FOOD CHAINS) - 1.5%
20,000 The Great Atlantic & Pacific Tea Co.,
Inc. $ 676,250
11,500 Hannaford Brothers Co. 615,250
14,000 Winn-Dixie Stores, Inc. 517,125
------------
$ 1,808,625
------------
SPECIALTY PRINTING - 1.4%
86,000 John H. Harland Co. $ 1,714,625
------------
TOTAL CONSUMER STAPLES $ 14,291,891
------------
ENERGY - 4.7%
OIL (DOMESTIC INTEGRATED) - 0.9%
39,400 Conoco Inc. $ 1,098,275
------------
OIL & GAS (DRILLING EQUIPMENT) - 0.9%
86,700 R&B Falcon Corp.* $ 812,813
9,100 Tidewater Inc. 277,550
------------
$ 1,090,363
------------
OIL & GAS
(EXPLORATION / PRODUCTION) - 2.9%
30,000 Apache Corp. $ 1,170,000
19,700 Burlington Resources, Inc. 852,025
56,000 Ocean Energy Inc.* 539,000
62,250 Union Pacific Resources Group, Inc. 1,015,453
------------
$ 3,576,478
------------
TOTAL ENERGY $ 5,765,116
------------
FINANCIAL - 14.4%
BANKS (REGIONAL) - 3.2%
26,100 Marshall & Ilsley Corp. $ 1,680,188
34,400 North Fork Bancorporation, Inc. 733,150
37,700 SouthTrust Corp. 1,446,738
------------
$ 3,860,076
------------
FINANCIAL (DIVERSIFIED) - 1.9%
16,500 The Equitable Companies, Inc. $ 1,105,500
26,200 SLM Holding Corp. 1,200,288
------------
$ 2,305,788
------------
INSURANCE (LIFE / HEALTH) - 1.5%
54,093 Conseco, Inc. $ 1,646,456
4,000 UNUMProvident Corp. 219,000
------------
$ 1,865,456
------------
INSURANCE (MULTI-LINE) - 0.5%
13,100 Nationwide Financial Services, Inc. $ 592,775
------------
INSURANCE (PROPERTY / CASUALTY) - 3.5%
17,000 Ace Ltd. $ 480,250
27,800 Allmerica Financial Corp. 1,690,588
31,100 Financial Security Assurance Holdings
Ltd. 1,617,200
13,100 HCC Insurance Holdings, Inc. 297,206
13,000 20th Century Industries 245,375
------------
$ 4,330,619
------------
<CAPTION>
SHARES VALUE
<C> <S> <C>
INVESTMENT BANKING / BROKERAGE - 1.4%
6,100 AG Edwards, Inc. $ 196,725
33,000 Paine Webber Group, Inc. 1,542,750
------------
$ 1,739,475
------------
SAVINGS & LOAN COMPANIES - 2.4%
17,000 Astoria Financial Corp. $ 746,938
44,500 Charter One Financial, Inc. 1,237,656
28,000 Washington Mutual, Inc. 990,500
------------
$ 2,975,094
------------
TOTAL FINANCIAL $ 17,669,283
------------
HEALTHCARE - 4.2%
HEALTHCARE (DRUGS GENERIC &
OTHER) - 0.6%
20,000 Watson Pharmaceuticals Inc.* $ 701,250
------------
HEALTHCARE (DRUGS / MAJOR
PHARMACEUTICALS) - 0.9%
20,000 Pharmacia & Upjohn Inc. $ 1,136,250
------------
HEALTHCARE (HOSPITAL MANAGEMENT) - 2.3%
111,400 Columbia / HCA Healthcare Corp. $ 2,541,313
26,000 Health Management Associates, Inc.* 292,500
------------
$ 2,833,813
------------
HEALTHCARE (LONG TERM CARE) - 0.4%
65,500 Integrated Health Services, Inc.* $ 524,000
------------
TOTAL HEALTHCARE $ 5,195,313
------------
TECHNOLOGY - 17.0%
COMMUNICATIONS EQUIPMENT - 2.3%
19,000 ADC Telecommunciations Inc.* $ 865,688
27,000 Alcatel Alsthom (A.D.R.) 766,125
12,000 American Tower Corp.* 288,000
47,800 Andrew Corp.* 905,213
------------
$ 2,825,026
------------
COMPUTERS (HARDWARE) - 3.4%
86,000 NCR Corp.* $ 4,197,875
------------
COMPUTERS (NETWORKING) - 0.8%
23,000 3Com Corp.* $ 613,813
12,000 Adaptec, Inc.* 423,750
------------
$ 1,037,563
------------
COMPUTERS (SOFTWARE & SERVICES) - 1.7%
15,000 Intuit, Inc.* $ 1,351,875
28,000 Novell, Inc.* 742,000
------------
$ 2,093,875
------------
ELECTRONICS (SEMICONDUCTORS) - 2.2%
41,000 Analog Devices Inc.* $ 2,057,688
17,900 Etec Systems, Inc.* 595,175
------------
$ 2,652,863
------------
EQUIPMENT (SEMICONDUCTORS) - 1.3%
22,000 Teradyne, Inc.* $ 1,578,500
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 35
<PAGE>
CAPITAL GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
PHOTOGRAPHY / IMAGING - 2.9%
142,500 Imation Corp.* $ 3,535,781
------------
SERVICES (COMPUTER SYSTEMS) - 0.7%
36,500 Keane Inc.* $ 825,813
------------
SERVICES (DATA PROCESSING) - 1.7%
43,000 First Data Corp. $ 2,104,313
------------
TOTAL TECHNOLOGY $ 20,851,609
------------
TRANSPORTATION - 1.1%
AIRLINES - 0.6%
10,000 AMR Corp.* $ 682,500
------------
RAILROADS - 0.5%
17,000 CNF Transportation Inc. $ 652,375
------------
TOTAL TRANSPORTATION $ 1,334,875
------------
UTILITIES - 9.8%
ELECTRIC COMPANIES - 7.4%
26,500 Allegheny Energy, Inc. $ 849,656
28,500 BEC Energy Co. 1,175,625
63,000 Citizens Utilities Co. (Class B) 700,875
26,200 Constellation Energy Group 776,175
31,500 DPL, Inc. 578,812
19,700 DQE, Inc. 790,462
29,500 DTE Energy Co. 1,180,000
26,500 Florida Progress Corp. 1,094,781
13,100 GPU, Inc. 552,656
23,000 Kansas City Power & Light Co. 586,500
19,700 New Century Energies, Inc. 764,606
------------
$ 9,050,148
------------
NATURAL GAS - 2.4%
26,500 El Paso Energy Corp. $ 932,469
27,300 KeySpan Energy Corp. 720,038
31,200 Questar Corp. 596,700
21,300 Sonat, Inc. 705,563
------------
$ 2,954,770
------------
TOTAL UTILITIES $ 12,004,918
------------
TOTAL COMMON STOCKS
(Cost $101,635,970) $114,760,446
------------
<CAPTION>
PRINCIPAL
AMOUNT
<C> <S> <C>
TEMPORARY CASH INVESTMENTS - 6.4%
COMMERCIAL PAPER - 6.4%
$3,189,000 American Express Credit Corp., 5.25%,
7 / 6 / 99 $ 3,189,000
4,717,000 Household Finance Corp., 5.75%,
7 / 1 / 99 4,717,000
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $7,906,000) $ 7,906,000
------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $109,541,970) $122,666,446
------------
</TABLE>
* Non-income producing security.
The accompanying notes are an integral part of these financial statements.
36
<PAGE>
GROWTH SHARES PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
INVESTMENT IN SECURITIES - 91.9%
PREFERRED STOCK - 0.5%
1,832 SAP AG $ 731,445
------------
TOTAL PREFERRED STOCK
(Cost $898,391) $ 731,445
------------
COMMON STOCKS - 91.4%
BASIC MATERIALS - 3.2%
CHEMICALS (SPECIALTY) - 3.2%
86,987 Minerals Technologies, Inc. $ 4,854,962
------------
TOTAL BASIC MATERIALS $ 4,854,962
------------
CAPITAL GOODS - 8.8%
AEROSPACE / DEFENSE - 2.4%
53,600 Gulfstream Aerospace Corp.* $ 3,621,350
------------
ELECTRICAL EQUIPMENT - 1.4%
8,880 Molex Inc. $ 328,560
60,344 Molex Inc. (Non-voting) 1,900,836
------------
$ 2,229,396
------------
MANUFACTURING (SPECIALIZED) - 5.0%
117,400 Sealed Air Corp.* $ 7,616,325
------------
TOTAL CAPITAL GOODS $ 13,467,071
------------
COMMUNICATION SERVICES - 0.6%
TELECOMMUNICATIONS (LONG
DISTANCE) - 0.6%
16,000 AT&T Corp. $ 893,000
------------
TOTAL COMMUNICATION SERVICES $ 893,000
------------
CONSUMER CYCLICALS - 6.6%
GAMING, LOTTERY & PARIMUTUEL
COMPANIES - 0.6%
58,000 Mirage Resorts, Inc. * $ 971,500
------------
RETAIL (DISCOUNTERS) - 4.8%
255,475 Dollar General Corp. $ 7,408,775
------------
SERVICES (COMMERCIAL & CONSUMER) - 1.2%
26,100 Cintas Corp. $ 1,753,594
------------
TOTAL CONSUMER CYCLICALS $ 10,133,869
------------
CONSUMER STAPLES - 33.8%
BEVERAGES (NON-ALCOHOLIC) - 4.6%
113,072 The Coca-Cola Co. $ 7,067,000
------------
BROADCASTING
(TELEVISION / RADIO / CABLE) - 11.0%
196,400 Comcast Corp. (Non-voting) $ 7,549,125
274,900 Infinity Broadcasting Corp.* 8,178,275
15,000 MediaOne Group, Inc.* 1,115,625
------------
$ 16,843,025
------------
FOODS - 4.0%
68,378 Wrigley (Wm.) Jr. Co. $ 6,154,020
------------
<CAPTION>
SHARES VALUE
<C> <S> <C>
PERSONAL CARE - 3.8%
141,764 The Gillette Co. $ 5,812,324
------------
RESTAURANTS - 4.7%
175,952 McDonald's Corp. $ 7,269,017
------------
RETAIL (DRUG STORES) - 3.4%
179,114 Walgreen Co. $ 5,261,474
------------
RETAIL (FOOD STORES) - 2.3%
124,650 Kroger Co.* $ 3,482,409
------------
TOTAL CONSUMER STAPLES $ 51,889,269
------------
FINANCIAL - 19.0%
BANKS (MAJOR REGIONAL) - 1.3%
29,200 Fifth Third Bancorp $ 1,943,625
------------
FINANCIAL (DIVERSIFIED) - 6.2%
108 Berkshire Hathaway, Inc. (Class A)* $ 7,441,200
938 Berkshire Hathaway, Inc. (Class B)* 2,109,562
------------
$ 9,550,762
------------
INSURANCE (MULTI-LINE) - 4.2%
55,016 American International Group, Inc. $ 6,440,310
------------
INSURANCE (PROPERTY / CASUALTY) - 6.2%
65,400 Progressive Corp. $ 9,483,000
------------
INVESTMENT BANKING / BROKERAGE - 1.1%
14,887 Charles Schwab Corp. $ 1,635,709
------------
TOTAL FINANCIAL $ 29,053,406
------------
HEALTHCARE - 5.3%
BIOTECHNOLOGY - 2.5%
95,721 Monsanto Co. $ 3,774,997
------------
HEALTHCARE (DRUGS / MAJOR
PHARMACEUTICALS) - 2.8%
26,416 Merck & Co., Inc. $ 1,954,784
22,106 Pfizer, Inc. 2,426,134
------------
$ 4,380,918
------------
TOTAL HEALTHCARE $ 8,155,915
------------
TECHNOLOGY - 14.1%
COMMUNCATIONS EQUIPMENT - 1.5%
95,300 American Tower Corp.* $ 2,287,200
------------
COMPUTERS (NETWORKING) - 3.4%
82,184 Cisco Systems, Inc.* $ 5,300,868
------------
COMPUTERS (PERIPHERALS) - 3.3%
91,700 EMC Corp.* $ 5,043,500
------------
COMPUTERS (SOFTWARE & SERVICES) - 5.9%
6,500 America Online, Inc.* $ 718,250
</TABLE>
The accompanying notes are an integral part of these financial statements. 37
<PAGE>
GROWTH SHARES PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMPUTERS (SOFTWARE & SERVICES) -
(CONTINUED)
67,224 Microsoft Corp. * $ 6,062,764
64,800 SAP AG (A.D.R.) 2,243,700
------------
$ 9,024,714
------------
TOTAL TECHNOLOGY $ 21,656,282
------------
TOTAL COMMON STOCKS
(Cost $123,418,982) $140,103,774
------------
TOTAL INVESTMENT IN SECURITIES
(Cost $124,317,373) $140,835,219
------------
<CAPTION>
PRINCIPAL
AMOUNT
<C> <S> <C>
TEMPORARY CASH INVESTMENTS - 8.1%
COMMERCIAL PAPER - 8.1%
$5,584,000 American Express Credit Corp., 5.25%,
7 / 6 / 99 $ 5,584,000
6,839,000 Household Finance Corp., 5.75%,
7 / 1 / 99 6,839,000
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $12,423,000) $ 12,423,000
------------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENTS - 100%
(Cost $136,740,373) $153,258,219
------------
</TABLE>
* Non-income producing security.
The accompanying notes are an integral part of these financial statements.
38
<PAGE>
REAL ESTATE GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
INVESTMENT IN SECURITIES - 98.0%
REAL ESTATE INVESTMENT TRUSTS - 90.0%
28,900 Apartment Investment & Management Co. $ 1,235,475
36,300 AvalonBay Communities, Inc. 1,343,100
29,500 Brandywine Realty Trust 584,469
33,700 Camden Property Trust 935,175
36,500 Charles E. Smith Residential Realty,
Inc. 1,238,719
34,200 Cousins Properties, Inc. 1,156,387
29,600 Crescent Real Estate Equities, Inc. 703,000
70,000 Developers Diversified Realty Corp. 1,163,750
10,000 Duke Realty Investments, Inc. 225,625
20,000 Entertainment Properties Trust 352,500
59,757 Equity Office Properties Trust 1,531,273
34,000 Equity Residential Property Trust 1,532,125
29,000 Essex Property Trust, Inc. 1,025,875
39,200 Felcor Suite Hotels, Inc. 813,400
23,500 Franchise Finance Corporation of America 517,000
30,000 Highwoods Properties, Inc. 823,125
40,800 Home Properties of New York, Inc. 1,127,100
76,090 Host Marriott Corp. 903,569
50,000 The Macerich Co. 1,312,500
42,600 Mack-Cali Realty Corp. 1,317,937
45,700 Mission West Properties, Inc. 377,025
15,800 Pacific Gulf Properties, Inc. 357,475
17,000 Parkway Properties, Inc. 563,125
40,900 Prentiss Properties Trust 961,150
31,800 ProLogis Trust 643,950
46,400 Public Storage, Inc. 1,299,200
42,900 Reckson Associates Realty Corp. 1,008,150
45,000 Simon Property Group, Inc. 1,141,875
21,800 Spieker Properties, Inc. 847,475
35,000 Starwood Hotels & Resorts Trust 1,069,687
17,000 Vornado Realty Trust 600,313
17,300 Walden Residential Properties, Inc. 371,950
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS $29,083,479
-----------
REAL ESTATE SERVICES - 7.2%
53,600 Catellus Development Corp.* $ 830,800
72,600 Trizec Hahn Corp. 1,479,225
-----------
TOTAL REAL ESTATE SERVICES $ 2,310,025
-----------
SERVICES - 0.8%
58,179 Wyndham International Corp.* $ 261,806
-----------
TOTAL SERVICES $ 261,806
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $32,513,706) $31,655,310
-----------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
TEMPORARY CASH INVESTMENT - 2.0%
COMMERCIAL PAPER - 2.0%
$650,000 Household Finance Corp., 5.75%,
7 / 1 / 99 $ 650,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $650,000) $ 650,000
-----------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $33,163,706) $32,305,310
-----------
</TABLE>
* Non-income producing security.
The accompanying notes are an integral part of these financial statements.
39
<PAGE>
GROWTH AND INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS - 96.6%
BASIC MATERIALS - 3.2%
ALUMINUM - 0.7%
16,500 Alcoa, Inc. $ 1,020,937
------------
CHEMICALS - 1.6%
6,200 Dow Chemical Co. $ 786,625
26,400 E.I. du Pont de Nemours & Co. 1,803,450
------------
$ 2,590,075
------------
IRON & STEEL - 0.3%
8,900 Nucor Corp. $ 422,194
7,800 Steel Dynamics, Inc.* 120,656
------------
$ 542,850
------------
METALS MINING - 0.6%
14,500 Phelps Dodge Corp. $ 898,094
------------
TOTAL BASIC MATERIALS $ 5,051,956
------------
CAPITAL GOODS - 5.5%
AEROSPACE / DEFENSE - 1.5%
12,600 Boeing Co. $ 556,763
7,300 General Dynamics Corp. 500,050
35,500 Lockheed Martin Corp. 1,322,375
------------
$ 2,379,188
------------
ELECTRICAL EQUIPMENT - 0.7%
10,000 Emerson Electric Co. $ 628,750
2,700 General Electric Co. 305,100
4,000 Hubbell, Inc. (Class B) 181,500
------------
$ 1,115,350
------------
MACHINERY (DIVERSIFIED) - 2.0%
28,900 Caterpillar, Inc. $ 1,734,000
14,900 Deere & Co. 590,413
11,700 Ingersoll-Rand Co. 756,113
6,000 The Timken Co. 117,000
------------
$ 3,197,526
------------
MANUFACTURING (DIVERSIFIED) - 0.9%
8,500 Illinois Tool Works, Inc. $ 697,000
9,300 Johnson Controls, Inc. 644,606
------------
$ 1,341,606
------------
MANUFACTURING (SPECIALIZED) - 0.1%
7,000 Diebold Inc. $ 201,250
------------
OFFICE EQUIPMENT & SUPPLIES - 0.3%
15,600 Canon Inc. (A.D.R.) $ 454,350
------------
TOTAL CAPITAL GOODS $ 8,689,270
------------
COMMUNICATION SERVICES - 12.8%
CELLULAR / WIRELESS
TELECOMMUNICATIONS - 0.7%
18,100 Sprint Corp. (PCS Group)* $ 1,033,962
------------
<CAPTION>
SHARES VALUE
<C> <S> <C>
TELECOMMUNICATIONS (LONG
DISTANCE) - 1.5%
44,600 Sprint Corp. $ 2,355,437
------------
TELEPHONE - 10.6%
16,900 Aliant Communications Co., Inc. $ 780,569
35,600 Ameritech Corp. 2,616,600
36,900 Bell Atlantic Corp. 2,412,337
64,600 BellSouth Corp. 3,028,125
32,000 GTE Corp. 2,424,000
55,500 SBC Communications, Inc. 3,219,000
38,200 US West Communications Group, Inc. 2,244,250
------------
$ 16,724,881
------------
TOTAL COMMUNICATION SERVICES $ 20,114,280
------------
CONSUMER CYCLICALS - 10.9%
AUTOMOBILES - 2.3%
15,113 DaimlerChrysler AG $ 1,343,168
40,900 Ford Motor Co. 2,308,294
------------
$ 3,651,462
------------
HOUSEHOLD FURNISHINGS &
APPLIANCES - 0.6%
8,500 Sony Corp. (A.D.R.) $ 938,188
------------
LEISURE TIME (PRODUCTS) - 0.2%
10,100 Hasbro, Inc. $ 282,169
------------
PUBLISHING - 1.8%
80,000 John Wiley & Sons, Inc. $ 1,410,000
24,600 McGraw-Hill Co., Inc. 1,326,862
------------
$ 2,736,862
------------
PUBLISHING (NEWSPAPERS) - 0.8%
8,600 Belo (A.H.) Corp. $ 169,313
14,000 Central Newspapers, Inc. 526,750
10,000 Dow Jones & Co., Inc. 530,625
------------
$ 1,226,688
------------
RETAIL (DEPARTMENT STORES) - 1.8%
13,200 Harcourt General, Inc. $ 680,625
13,300 Kohl's Corp.* 1,026,594
28,200 May Department Stores Co. 1,152,675
------------
$ 2,859,894
------------
RETAIL (DISCOUNTERS) - 0.8%
41,375 Dollar General Corp. $ 1,199,875
------------
RETAIL (GENERAL MERCHANDISE) - 2.0%
31,900 Dayton Hudson Corp. $ 2,073,500
22,500 Wal-Mart Stores, Inc. 1,085,625
------------
$ 3,159,125
------------
RETAIL (SPECIALTY) - 0.2%
13,400 Barnes & Noble, Inc.* $ 366,825
------------
RETAIL (SPECIALTY-APPAREL) - 0.1%
1,800 Gap, Inc. $ 90,675
------------
</TABLE>
40 The accompanying notes are an integral part of these financial statements.
<PAGE>
GROWTH AND INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
SERVICES
(ADVERTISING / MARKETING) - 0.3%
6,100 Omnicom Group $ 488,000
------------
TOTAL CONSUMER CYCLICALS $ 16,999,763
------------
CONSUMER STAPLES - 10.1%
BEVERAGES (NON-ALCOHOLIC) - 0.5%
18,700 PepsiCo, Inc. $ 723,456
------------
BROADCASTING
(TELEVISION / RADIO / CABLE) - 1.6%
34,400 CBS Corp. $ 1,494,250
2,400 Hearst-Argyle Television, Inc.* 57,600
12,700 MediaOne Group, Inc.* 944,562
------------
$ 2,496,412
------------
DISTRIBUTORS (FOOD & HEALTH) - 0.4%
19,800 Sysco Corp. $ 590,288
------------
FOODS - 4.5%
23,800 Bestfoods $ 1,178,100
25,000 Campbell Soup Co. 1,159,375
27,200 ConAgra, Inc. 724,200
10,500 General Mills, Inc. 843,938
21,600 H.J. Heinz Co. 1,082,700
14,300 Hershey Foods Corp. 849,063
3,300 Nestle SA (A.D.R.) 300,300
9,800 Ralston-Ralston Purina Group 298,288
30,000 Sara Lee Corp. 680,625
------------
$ 7,116,589
------------
HOUSEHOLD PRODUCTS (NON-DURABLES) - 0.7%
11,700 Colgate-Palmolive Co. $ 1,155,375
------------
RESTAURANTS - 0.4%
14,600 McDonald's Corp. $ 603,163
------------
RETAIL STORES (DRUG STORES) - 1.3%
5,000 CVS Corp. $ 253,750
64,300 Walgreen Co. 1,888,812
------------
$ 2,142,562
------------
RETAIL STORES (FOOD CHAINS) - 0.2%
10,000 Kroger Co.* $ 279,375
------------
SERVICES (EMPLOYMENT) - 0.5%
29,100 Robert Half International, Inc.* $ 756,600
------------
TOTAL CONSUMER STAPLES $ 15,863,820
------------
ENERGY - 5.5%
OIL (DOMESTIC INTEGRATED) - 1.1%
14,900 Atlantic Richfield Co. $ 1,245,081
18,000 Conoco, Inc. 501,750
------------
$ 1,746,831
------------
OIL (INTERNATIONAL INTEGRATED) - 3.5%
24,100 Chevron Corp. $ 2,294,019
13,700 Exxon Corp. 1,056,612
<CAPTION>
SHARES VALUE
<C> <S> <C>
OIL (INTERNATIONAL
INTEGRATED) - (CONTINUED)
14,800 Mobil Corp. $ 1,465,200
10,000 Texaco, Inc. 625,000
------------
$ 5,440,831
------------
OIL & GAS (DRILLING & EQUIPMENT) - 0.9%
12,800 Schlumberger Ltd. $ 815,200
15,500 Smith International, Inc.* 673,281
------------
$ 1,488,481
------------
TOTAL ENERGY $ 8,676,143
------------
FINANCIAL - 17.9%
BANKS (MAJOR REGIONAL) - 6.0%
82,100 The Bank of New York Co., Inc. $ 3,012,044
11,200 BankBoston Corp. 572,600
11,550 Comerica, Inc. 686,503
14,000 Huntington Bancshares, Inc. 490,000
42,400 Mellon Bank Corp. 1,542,300
25,700 National City Corp. 1,683,350
17,200 State Street Corp. 1,468,450
------------
$ 9,455,247
------------
BANKS (REGIONAL) - 0.8%
16,500 First Tennessee National Corp. $ 632,156
9,200 Zions Bancorporation 584,200
------------
$ 1,216,356
------------
FINANCIAL (DIVERSIFIED) - 2.4%
17,720 Associates First Capital Corp. $ 785,218
23,900 The Equitable Companies, Inc. 1,601,300
8,800 Federal National Mortgage Association 601,700
7,700 Morgan Stanley, Dean Witter and Co. 789,250
------------
$ 3,777,468
------------
INSURANCE (LIFE / HEALTH) - 0.5%
16,600 ReliaStar Financial Corp. $ 726,250
------------
INSURANCE (MULTI-LINE) - 0.7%
9,750 American International Group, Inc. $ 1,141,359
------------
INSURANCE (PROPERTY / CASUALTY) - 3.0%
27,000 Chubb Corp. $ 1,876,500
15,900 Exel Ltd. 898,350
10,600 Partnerre Ltd. 396,175
22,100 Safeco Corp. 975,162
17,500 St. Paul Companies, Inc. 556,719
------------
$ 4,702,906
------------
INSURANCE BROKERS - 0.8%
16,450 Marsh & McLennan Co., Inc. $ 1,241,975
------------
INVESTMENT BANKING / BROKERAGE - 1.9%
13,500 Merrill Lynch & Co., Inc. $ 1,079,156
40,900 Paine Webber Group, Inc. 1,912,075
------------
$ 2,991,231
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 41
<PAGE>
GROWTH AND INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
INVESTMENT MANAGEMENT - 1.4%
20,000 Federated Investors, Inc. $ 358,750
47,500 T. Rowe Price Associates, Inc. 1,822,812
------------
$ 2,181,562
------------
SAVINGS & LOAN COMPANIES - 0.4%
15,524 Washington Mutual, Inc. $ 549,162
------------
TOTAL FINANCIAL $ 27,983,516
------------
HEALTHCARE - 11.0%
HEALTHCARE (DIVERSIFIED) - 3.2%
17,400 Abbott Laboratories $ 791,700
32,000 Bristol-Myers Squibb Co. 2,254,000
20,200 Johnson & Johnson 1,979,600
------------
$ 5,025,300
------------
HEALTHCARE (DRUGS / MAJOR
PHARMACEUTICALS) - 6.8%
9,200 Eli Lilly & Co. $ 658,950
14,800 Merck & Co., Inc. 1,095,200
8,100 Roche Holdings AG (A.D.R.) 842,400
116,400 Schering-Plough Corp. 6,169,200
28,600 SmithKline Beecham Plc (A.D.R.) 1,889,387
------------
$ 10,655,137
------------
HEALTHCARE (MANAGED CARE) - 0.4%
6,700 Wellpoint Health Networks Inc.* $ 568,663
------------
HEALTHCARE (MEDICAL
PRODUCTS / SUPPLIES) - 0.6%
35,200 Becton, Dickinson & Co. $ 1,056,000
------------
TOTAL HEALTHCARE $ 17,305,100
------------
TECHNOLOGY - 17.2%
COMMUNICATIONS EQUIPMENT - 3.0%
8,000 General Instrument Corp.* $ 340,000
13,600 Harris Corp. 532,950
26,700 Lucent Technologies, Inc. 1,800,581
21,000 Motorola, Inc. 1,989,750
------------
$ 4,663,281
------------
COMPUTERS (HARDWARE) - 7.7%
79,000 Compaq Computer Corp. $ 1,871,312
21,400 Hewlett-Packard Co. 2,150,700
36,700 IBM Corp. 4,743,475
48,100 Sun Microsystems, Inc.* 3,312,887
------------
$ 12,078,374
------------
COMPUTERS (SOFTWARE & SERVICES) - 0.7%
1,000 Adobe Systems, Inc. $ 82,156
15,300 Aspen Technology, Inc.* 179,775
2,350 BMC Software, Inc.* 126,900
13,250 Oracle Corp.* 491,906
11,500 Peoplesoft, Inc.* 198,375
------------
$ 1,079,112
------------
<CAPTION>
SHARES VALUE
<C> <S> <C>
ELECTRONICS (SEMICONDUCTORS) - 2.9%
14,400 Altera Corp.* $ 530,100
28,300 Intel Corp. 1,683,850
16,100 Texas Instruments, Inc. 2,334,500
------------
$ 4,548,450
------------
EQUIPMENT (SEMICONDUCTORS) - 0.3%
6,400 Applied Materials, Inc.* $ 472,800
------------
PHOTOGRAPHY / IMAGING - 0.8%
18,600 Eastman Kodak Co. $ 1,260,150
------------
SERVICES (COMPUTER SYSTEMS) - 0.6%
14,100 Computer Sciences Corp.* $ 975,544
------------
SERVICES (DATA PROCESSING) - 1.2%
19,600 Automatic Data Processing, Inc. $ 862,400
6,700 DST Systems, Inc.* 421,263
4,900 Electronic Data Systems Corp. 277,156
7,500 Fiserv, Inc.* 234,844
------------
$ 1,795,663
------------
TOTAL TECHNOLOGY $ 26,873,374
------------
TRANSPORTATION - 1.3%
AIRLINES - 0.3%
9,000 Delta Air Lines, Inc. $ 518,625
------------
RAILROADS - 1.0%
14,900 Burlington Northern, Inc. $ 461,900
32,900 Norfolk Southern Corp. 991,112
------------
$ 1,453,012
------------
TOTAL TRANSPORTATION $ 1,971,637
------------
UTILITIES - 1.2%
ELECTRIC COMPANIES - 0.7%
25,100 Allegheny Energy, Inc. $ 804,769
18,500 DPL, Inc. 339,938
------------
$ 1,144,707
------------
NATURAL GAS - 0.2%
16,500 Indiana Energy, Inc. $ 351,656
------------
WATER UTILITIES - 0.3%
13,700 American Water Works Co., Inc. $ 421,275
------------
TOTAL UTILITIES $ 1,917,638
------------
TOTAL COMMON STOCKS
(Cost $130,800,702) $151,446,497
------------
</TABLE>
42 The accompanying notes are an integral part of these financial statements.
<PAGE>
GROWTH AND INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
TEMPORARY CASH INVESTMENT - 3.4%
COMMERCIAL PAPER - 3.4%
$ 5,310,000 Household Finance Corp., 5.75%,
7 / 1 / 99 $ 5,310,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $5,310,000) $ 5,310,000
------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $136,110,702) $156,756,497
------------
</TABLE>
* Non-income producing security.
The accompanying notes are an integral part of these financial statements.
43
<PAGE>
EQUITY-INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
CONVERTIBLE PREFERRED STOCKS - 0.9%
570 Sprint Corp., 8.25%, 3 / 31 / 00 $ 49,590
42,300 Union Pacific Capital Inc., 6.25%,
4 / 01 / 28 2,178,111
------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $1,930,518) $ 2,227,701
------------
COMMON STOCKS - 99.1%
BASIC MATERIALS - 7.7%
ALUMINUM - 1.3%
50,800 Alcoa, Inc. $ 3,143,250
------------
CHEMICALS - 3.1%
29,000 Dow Chemical Co. $ 3,679,375
53,600 E.I. du Pont de Nemours & Co. 3,661,550
------------
$ 7,340,925
------------
CHEMICALS (SPECIALTY) - 0.8%
37,600 Nalco Chemical Co. $ 1,950,500
------------
IRON & STEEL - 0.8%
31,500 AK Steel Holding Corp. $ 708,750
15,450 Roanoke Electric Steel Corp. 268,443
50,000 Worthington Industries, Inc. 821,875
------------
$ 1,799,068
------------
METALS MINING - 1.1%
44,400 Phelps Dodge Corp. $ 2,750,025
------------
PAPER & FOREST PRODUCTS - 0.6%
50,000 Consolidated Papers, Inc. $ 1,337,500
------------
TOTAL BASIC MATERIALS $ 18,321,268
------------
CAPITAL GOODS - 5.6%
AEROSPACE / DEFENSE - 1.5%
40,000 General Dynamics Corp. $ 2,740,000
22,900 Lockheed Martin Corp. 853,025
------------
$ 3,593,025
------------
ELECTRICAL EQUIPMENT - 0.4%
19,000 Hubbell, Inc. (Class B) $ 862,125
------------
MACHINERY (DIVERSIFIED) - 0.5%
7,000 Gorman-Rupp Co. $ 115,500
57,300 The Timken Co. 1,117,350
------------
$ 1,232,850
------------
MANUFACTURING (DIVERSIFIED) - 1.4%
24,000 Johnson Controls, Inc. $ 1,663,500
17,500 Minnesota Mining and
Manufacturing Co. 1,521,406
------------
$ 3,184,906
------------
MANUFACTURING (SPECIALIZED) - 0.4%
31,000 Diebold, Inc. $ 891,250
------------
<CAPTION>
SHARES VALUE
<C> <S> <C>
TRUCKS & PARTS - 1.4%
64,500 PACCAR, Inc. $ 3,442,687
------------
TOTAL CAPITAL GOODS $ 13,206,843
------------
COMMUNICATION SERVICES - 13.5%
TELEPHONE - 13.5%
43,200 Aliant Communications, Inc. $ 1,995,300
116,200 Ameritech Corp. 8,540,700
92,400 BellSouth Corp. 4,331,250
88,500 GTE Corp. 6,703,875
98,412 SBC Communications, Inc. 5,707,896
84,800 US West Communications Group, Inc. 4,982,000
------------
TOTAL COMMUNICATION SERVICES $ 32,261,021
------------
CONSUMER CYCLICALS - 8.6%
AUTOMOBILES - 3.2%
102,800 Ford Motor Co. $ 5,801,775
27,000 General Motors Corp. 1,782,000
------------
$ 7,583,775
------------
AUTO PARTS & EQUIPMENT - 2.4%
198,871 Delphi Automotive Systems Corp. $ 3,691,543
35,000 The Goodyear Tire & Rubber Co. 2,058,438
------------
$ 5,749,981
------------
PUBLISHING - 0.8%
33,700 McGraw-Hill Co., Inc. $ 1,817,694
------------
PUBLISHING (NEWSPAPERS) - 0.1%
2,500 Tribune Co. $ 217,813
------------
RETAIL (DEPARTMENT STORES) - 1.7%
97,825 May Department Stores Co. $ 3,998,597
------------
SERVICES
(ADVERTISING / MARKETING) - 0.4%
12,600 The Interpublic Group of Companies, Inc. $ 1,091,475
------------
TOTAL CONSUMER CYCLICALS $ 20,459,335
------------
CONSUMER STAPLES - 7.4%
BEVERAGES (NON-ALCOHOLIC) - 0.4%
25,000 PepsiCo, Inc. $ 967,188
------------
ENTERTAINMENT - 1.2%
114,200 Cedar Fair, L.P. $ 2,847,863
------------
FOODS - 4.8%
59,700 Bestfoods $ 2,955,150
45,000 Campbell Soup Co. 2,086,875
37,000 General Mills, Inc. 2,973,875
53,000 H.J. Heinz Co. 2,656,625
30,000 Sara Lee Corp. 680,625
------------
$ 11,353,150
------------
HOUSEHOLD PRODUCTS (NON-DURABLES) - 0.8%
19,000 Colgate-Palmolive Co. $ 1,876,250
------------
</TABLE>
44 The accompanying notes are an integral part of these financial statements.
<PAGE>
EQUITY-INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
RETAIL STORES (FOOD CHAINS) - 0.2%
15,000 Winn-Dixie Stores $ 554,063
------------
TOTAL CONSUMER STAPLES $ 17,598,514
------------
ENERGY - 6.6%
OIL (DOMESTIC INTEGRATED) - 1.9%
54,000 Atlantic Richfield Co. $ 4,512,375
------------
OIL (INTERNATIONAL INTEGRATED) - 4.7%
58,800 Chevron Corp. $ 5,597,025
40,000 Exxon Corp. 3,085,000
24,500 Mobil Corp. 2,425,500
------------
$ 11,107,525
------------
TOTAL ENERGY $ 15,619,900
------------
FINANCIAL - 21.0%
BANKS (MAJOR REGIONAL) - 5.0%
118,800 The Bank of New York Co., Inc. $ 4,358,475
25,000 BankBoston Corp. 1,278,125
13,000 Comerica, Inc. 772,688
84,400 Mellon Bank Corp. 3,070,050
36,000 National City Corp. 2,358,000
------------
$ 11,837,338
------------
BANKS (MONEY CENTER) - 0.4%
10,000 The Chase Manhattan Corp. $ 866,250
------------
BANKS (REGIONAL) - 5.2%
130,600 First Security Corp. $ 3,558,850
58,700 First Tennessee National Corp. 2,248,944
6,000 North Fork Bancorporation, Inc. 127,875
87,977 Old Kent Financial Corp. 3,684,053
71,200 SouthTrust Corp. 2,732,300
------------
$ 12,352,022
------------
INSURANCE (LIFE / HEALTH) - 2.8%
23,600 American National Insurance Co. $ 1,681,500
40,500 Hartford Life, Inc. 2,131,312
65,200 ReliaStar Financial Corp. 2,852,500
------------
$ 6,665,312
------------
INSURANCE (PROPERTY / CASUALTY) - 2.3%
29,000 Chubb Corp. $ 2,015,500
35,500 HSB Group Inc. 1,462,156
65,400 St. Paul Companies, Inc. 2,080,537
------------
$ 5,558,193
------------
INVESTMENT BANKING / BROKERAGE - 1.2%
28,500 Edwards (AG), Inc. $ 919,125
42,300 Paine Webber Group, Inc. 1,977,525
------------
$ 2,896,650
------------
INVESTMENT MANAGEMENT - 2.7%
81,200 Alliance Capital Management L.P. $ 2,623,775
29,000 Eaton Vance Corp. 998,687
75,000 T. Rowe Price Associated, Inc. 2,878,125
------------
$ 6,500,587
------------
<CAPTION>
SHARES VALUE
<C> <S> <C>
SAVINGS & LOANS COMPANIES - 1.4%
32,876 Astoria Financial Corp. $ 1,444,489
4,900 Queens County Bancorp, Inc. 158,637
50,400 Washington Mutual, Inc. 1,782,900
------------
$ 3,386,026
------------
TOTAL FINANCIAL $ 50,062,378
------------
HEALTHCARE - 10.7%
HEALTHCARE (DIVERSIFIED) - 4.9%
77,300 Abbott Laboratories $ 3,517,150
50,000 American Home Products Corp. 2,875,000
45,800 Bristol-Myers Squibb Co. 3,226,038
21,000 Johnson & Johnson 2,058,000
------------
$ 11,676,188
------------
HEALTHCARE (DRUGS / MAJOR
PHARMACEUTICALS) - 5.0%
32,400 Merck & Co., Inc. $ 2,397,600
180,400 Schering-Plough Corp. 9,561,200
------------
$ 11,958,800
------------
HEALTHCARE (MEDICAL
PRODUCTS / SUPPLIES) - 0.8%
62,000 Becton, Dickinson & Co. $ 1,860,000
------------
TOTAL HEALTHCARE $ 25,494,988
------------
TECHNOLOGY - 6.0%
COMMUNICATIONS EQUIPMENT - 0.7%
45,000 Harris Corp. $ 1,763,438
------------
COMPUTERS (HARDWARE) - 2.3%
54,200 Hewlett-Packard Co. $ 5,447,100
------------
ELECTRONICS (DEFENSE) - 0.8%
26,000 Raytheon Co. (Class B) $ 1,829,750
------------
EQUIPMENT (SEMICONDUCTORS) - 0.8%
85,000 Helix Technology Corp. $ 2,034,688
------------
PHOTOGRAPHY / IMAGING - 1.4%
49,000 Eastman Kodak Co. $ 3,319,750
------------
TOTAL TECHNOLOGY $ 14,394,726
------------
TRANSPORTATION - 1.2%
RAILROADS - 1.2%
28,000 Burlington Northern Sante Fe Corp. $ 868,000
66,200 Norfolk Southern Corp. 1,994,275
------------
TOTAL TRANSPORTATION $ 2,862,275
------------
UTILITIES - 10.8%
ELECTRIC COMPANIES - 5.5%
73,000 Allegheny Energy, Inc. $ 2,340,563
50,000 BEC Energy 2,062,500
136,000 Constellation Energy Group 4,029,000
80,300 DPL, Inc. 1,475,513
35,000 DQE, Inc. 1,404,375
</TABLE>
The accompanying notes are an integral part of these financial statements. 45
<PAGE>
EQUITY-INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
ELECTRIC COMPANIES - (CONTINUED)
2,500 FPL Group, Inc. $ 136,562
62,000 Kansas City Power & Light Co. 1,581,000
------------
$ 13,029,513
------------
NATURAL GAS - 4.8%
14,000 Buckeye Partners, L.P. $ 385,000
33,750 Consolidated Natural Gas Co. 2,050,312
33,200 Indiana Energy, Inc. 707,575
99,600 KeySpan Energy Corp. 2,626,950
18,475 Kinder Morgan Energy Partners, L.P. 683,575
11,800 Lakehead Pipe Line Partners, L.P. 518,462
49,200 NICOR, Inc. 1,872,675
26,600 Public Service Co. of North Carolina,
Inc. 778,050
94,600 Questar Corp. 1,809,225
------------
$ 11,431,824
------------
POWER PRODUCERS (INDEPENDENT) - 0.1%
25,000 Consol Energy Inc. $ 300,000
------------
WATER UTILITIES - 0.4%
32,000 American Water Works Co., Inc. $ 984,000
------------
TOTAL UTILITIES $ 25,745,337
------------
TOTAL COMMON STOCKS
(Cost $186,943,484) $236,026,585
------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $188,874,002) $238,254,286
------------
</TABLE>
46 The accompanying notes are an integral part of these financial statements.
<PAGE>
BALANCED PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS - 48.6%
BASIC MATERIALS - 1.8%
ALUMINUM - 0.4%
4,200 Reynolds Metals Co. $ 247,800
-----------
CHEMICALS - 0.9%
2,900 Dow Chemical Corp. $ 367,937
5,400 Eastman Chemical Co. 279,450
-----------
$ 647,387
-----------
PAPER & FOREST PRODUCTS - 0.5%
5,700 Weyerhaeuser Co. $ 391,875
-----------
TOTAL BASIC MATERIALS $ 1,287,062
-----------
CAPITAL GOODS - 5.3%
AEROSPACE / DEFENSE - 1.4%
15,000 General Dynamics Corp. $ 1,027,500
-----------
ELECTRICAL EQUIPMENT - 2.4%
11,700 General Electric Co. $ 1,322,100
3,400 Honeywell, Inc. 393,975
-----------
$ 1,716,075
-----------
ENGINEERING & CONSTRUCTION - 0.3%
5,200 Fluor Corp. $ 210,600
-----------
MACHINERY (DIVERSIFIED) - 0.4%
5,000 Ingersoll-Rand Co. $ 323,125
-----------
MANUFACTURING (DIVERSIFIED) - 0.8%
4,100 Tyco International Ltd. $ 388,475
3,000 United Technologies Corp. 215,062
-----------
$ 603,537
-----------
TOTAL CAPITAL GOODS $ 3,880,837
-----------
COMMUNICATION SERVICES - 5.6%
TELECOMMUNICATIONS (LONG
DISTANCE) - 3.5%
4,200 Ameritech Corp. $ 308,700
4,000 Bell Atlantic Corp. 261,500
12,600 BellSouth Corp. 590,625
24,000 US West Communications Group, Inc. 1,410,000
-----------
$ 2,570,825
-----------
TELEPHONE - 2.1%
26,850 AT&T Corp. $ 1,498,566
-----------
TOTAL COMMUNICATION SERVICES $ 4,069,391
-----------
CONSUMER CYCLICALS - 6.4%
AUTOMOBILES - 2.2%
28,500 Ford Motor Co. $ 1,608,469
-----------
HOMEBUILDING - 0.2%
5,100 Centex Corp. $ 191,569
-----------
HOUSEHOLD FURNISHINGS &
APPLIANCES - 0.4%
3,700 Maytag Corp. $ 257,844
-----------
PUBLISHING - 1.4%
18,400 McGraw Hill Co., Inc. $ 992,450
-----------
<CAPTION>
SHARES VALUE
<C> <S> <C>
RETAIL (GENERAL MERCHANDISE) - 1.9%
28,400 Wal-Mart Stores, Inc. $ 1,370,300
-----------
SERVICES
(ADVERTISING / MARKETING) - 0.3%
2,700 Omnicom Group $ 216,000
-----------
TOTAL CONSUMER CYCLICALS $ 4,636,632
-----------
CONSUMER STAPLES - 6.8%
DISTRIBUTORS (FOOD & HEALTH) - 0.3%
9,200 SUPERVALU, Inc. $ 236,325
-----------
ENTERTAINMENT - 0.4%
8,400 The Walt Disney Co., Inc. $ 258,825
-----------
FOODS - 3.5%
11,900 H.J. Heinz Co., Inc. $ 596,488
31,000 Kellogg Co. 1,023,000
4,000 The Quaker Oats Co. 265,500
30,000 Tyson Foods, Inc. 675,000
-----------
$ 2,559,988
-----------
HOUSEHOLD PRODUCTS (NON-DURABLES) - 0.4%
5,000 Kimberly Clark Corp. $ 285,000
-----------
RESTAURANTS - 1.5%
26,900 Darden Restaurants, Inc. $ 586,756
11,400 McDonald's Corp. 470,963
-----------
$ 1,057,719
-----------
SPECIALTY PRINTING - 0.7%
6,500 Deluxe Corp. $ 253,094
7,300 R.R. Donnelley & Sons Co., Inc. 270,556
-----------
$ 523,650
-----------
TOTAL CONSUMER STAPLES $ 4,921,507
-----------
ENERGY - 5.2%
OIL (DOMESTIC INTEGRATED) - 1.0%
11,400 Royal Dutch Petroleum Co. $ 686,850
-----------
OIL (INTERNATIONAL INTEGRATED) - 3.7%
9,200 Chevron Corp. $ 875,725
12,000 Exxon Corp. 925,500
6,700 Mobil Corp. 663,300
4,100 Texaco Inc. 256,250
-----------
$ 2,720,775
-----------
OIL & GAS (REFINING & MARKETING) - 0.5%
9,400 Ashland, Inc. $ 377,175
-----------
TOTAL ENERGY $ 3,784,800
-----------
FINANCIAL - 8.3%
BANKS (MAJOR REGIONAL) - 1.6%
14,400 Banc One Corp. $ 857,700
6,300 Fleet Financial Group, Inc. 279,563
-----------
$ 1,137,263
-----------
BANKS (MONEY CENTER) - 2.3%
12,600 BankAmerica Corp. $ 923,738
</TABLE>
The accompanying notes are an integral part of these financial statements. 47
<PAGE>
BALANCED PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
BANKS (MONEY CENTER) - (CONTINUED)
8,000 First Union Corp. $ 376,000
2,900 J.P. Morgan & Co. Inc. 407,450
-----------
$ 1,707,188
-----------
FINANCIAL (DIVERSIFIED) - 1.4%
8,400 American General Corp. $ 633,150
5,400 Federal National Mortgage Association 369,225
-----------
$ 1,002,375
-----------
INSURANCE (LIFE / HEALTH) - 1.5%
5,600 Lincoln National Corp. $ 292,950
10,800 Transamerica Corp. 810,000
-----------
$ 1,102,950
-----------
INSURANCE (MULTI-LINE) - 1.0%
8,200 Cigna Corp. $ 729,800
-----------
INSURANCE (PROPERTY / CASUALTY) - 0.5%
7,600 Safeco Corp. $ 335,350
-----------
TOTAL FINANCIAL $ 6,014,926
-----------
HEALTHCARE - 2.4%
HEALTHCARE (DIVERSIFIED) - 0.6%
2,300 Allergan Inc. $ 255,300
2,600 Warner-Lambert Co. 180,375
-----------
$ 435,675
-----------
HEALTHCARE (DRUGS / MAJOR
PHARMACEUTICALS) - 1.8%
2,900 Eli Lilly & Co. $ 207,713
20,000 Pharmacia & Upjohn Inc. 1,136,250
-----------
$ 1,343,963
-----------
TOTAL HEALTHCARE $ 1,779,638
-----------
<CAPTION>
SHARES VALUE
<C> <S> <C>
TECHNOLOGY - 5.2%
COMMUNICATIONS EQUIPMENT - 2.6%
23,000 Lucent Technologies, Inc. $ 1,551,063
3,400 Motorola, Inc. 322,150
-----------
$ 1,873,213
-----------
COMPUTERS (HARDWARE) - 1.6%
11,500 Compaq Computer Corp. $ 272,406
8,900 Hewlett-Packard Co. 894,450
-----------
$ 1,166,856
-----------
ELECTRONICS (SEMICONDUCTORS) - 1.0%
12,000 Intel Corp. $ 714,000
-----------
TOTAL TECHNOLOGY $ 3,754,069
-----------
TRANSPORTATION - 0.6%
AIRLINES - 0.6%
15,100 Southwest Airlines Co. $ 469,988
-----------
TOTAL TRANSPORTATION $ 469,988
-----------
UTILITIES - 1.0%
ELECTRIC COMPANIES - 1.0%
6,600 DTE Energy Co. $ 264,000
11,000 Public Service Enterprise Group, Inc. 449,625
-----------
TOTAL UTILITIES $ 713,625
-----------
TOTAL COMMON STOCKS
(Cost $28,822,170) $35,312,475
-----------
</TABLE>
<TABLE>
<CAPTION>
S&P/MOODY'S
PRINCIPAL RATINGS
AMOUNT (UNAUDITED) VALUE
<C> <S> <C> <C>
DEBT OBLIGATIONS - 51.4%
CORPORATE BONDS - 22.3%
BASIC MATERIALS - 1.3%
$ 240,000 B- / Caa1 AEI Resources, Inc., 11.5%, 12 / 15 / 06
(144A) $ 235,800
250,000 B+ / B2 Huntsman ICI Chemicals LLC, 10.125%,
7 / 1 / 09 (144A) 252,187
150,000 BB / Ba3 Lyondell Chemical Co., 9.875%,
5 / 1 / 07 (144A) 153,750
135,000 A- / A2 Phelps Dodge Corp., 7.75%, 1 / 1 / 02 137,682
150,000 B+ / B2 Royster-Clark Inc., 10.25%, 4 / 1 / 09
(144A) 148,500
-----------
TOTAL BASIC MATERIALS $ 927,919
-----------
CAPITAL GOODS - 1.6%
275,000 BB / Ba3 Allied Waste Industries, Inc. , 7.625%,
1 / 1 / 06 $ 256,437
150,000 BBB+ / Baa1 Lockheed Martin Corp., 6.85%,
5 / 15 / 01 150,564
240,000 B / B2 Metromedia Fiber Network, Inc., 10.0%,
11 / 15 / 08 246,600
500,000 BBB+ / Baa2 Waste Management, Inc., 6.625%,
7 / 15 / 02 500,800
-----------
TOTAL CAPITAL GOODS $ 1,154,401
-----------
COMMUNICATIONS SERVICES - 1.0%
500,000 BBB- / Baa3 Comcast Cable Communications Inc., 6.2%,
11 / 15 / 08 $ 465,285
</TABLE>
48 The accompanying notes are an integral part of these financial statements.
<PAGE>
BALANCED PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P/MOODY'S
PRINCIPAL RATINGS
AMOUNT (UNAUDITED) VALUE
<C> <S> <C> <C>
COMMUNICATIONS SERVICES - (CONTINUED)
$ 150,000 B / B3 Crown Castle International Inc., 9.0%,
5 / 15 / 11 $ 146,250
120,000 B / B3 NEXTLINK Communications Inc., 10.75%,
6 / 1 / 09 123,300
-----------
TOTAL COMMUNICATIONS SERVICES $ 734,835
-----------
CONSUMER CYCLICALS - 2.7%
225,000 BBB / Baa3 Laidlaw Inc., 7.65%, 5 / 15 / 06 $ 219,463
300,000 BBB- / Baa3 Levi Strauss & Co., 7.0%, 11 / 1 / 06
(144A) 267,804
250,000 BB+ / Baa3 Saks Inc., 8.25%, 11 / 15 / 08 261,462
250,000 BB+ / Baa3 Saks Inc., 7.5%, 12 / 1 / 10 246,925
1,000,000 BBB- / Baa3 ShopKo Stores, Inc., 6.5%, 8 / 15 / 03 972,410
-----------
TOTAL CONSUMER CYCLICALS $ 1,968,064
-----------
CONSUMER STAPLES - 2.0%
230,000 B / B3 Agrilink Foods Inc., 11.875%,
11 / 1 / 08 $ 237,475
350,000 B- / B3 Ameriserve Food Distributors Inc.,
10.125%, 7 / 15 / 07 297,500
225,000 B+ / B2 Charter Communications Holdings LLC,
8.25%, 4 / 1 / 07 (144A) 214,313
350,000 B / B2 Echostar DBS Corp., 9.25%, 2 / 1 / 06
(144A) 357,000
125,000 B- / B2 Emmis Communications Corp., 8.125%,
3 / 15 / 09 (144A) 117,812
250,000 B- / B3 Premier Parks Inc., 9.75%, 6 / 15 / 07 252,500
-----------
TOTAL CONSUMER STAPLES $ 1,476,600
-----------
ENERGY - 2.1%
500,000 BB- / Ba2 Gulf Canada Resources Ltd., 9.625%,
7 / 1 / 05 $ 516,535
225,000 BB- / Ba3 RBF Finance Co., 11.0%, 3 / 15 / 06
(144A) 229,500
240,000 BB+ / Ba1 Santa Fe Snyder Corp., 8.05%,
6 / 15 / 04 239,594
500,000 BBB / Baa1 Tosco Corp., 9.625%, 3 / 15 / 02 532,900
-----------
TOTAL ENERGY $ 1,518,529
-----------
FINANCIAL - 7.6%
250,000 BBB / Baa3 AT & T Capital Corp., 6.875%,
1 / 16 / 01 $ 249,840
250,000 BB+ / Baa3 Capital One Financial Corp., 7.125%,
8 / 1 / 08 236,640
500,000 A+ / A1 Citicorp, Inc., 7.25%, 9 / 1 / 08 505,850
425,000 A / A1 Ford Motor Credit Corp., 9.14%,
12 / 30 / 14 463,093
300,000 A / A2 Hartford Financial Services Group, Inc.,
6.375%, 11 / 1 / 02 299,814
200,000 BBB+ / Baa2 Hertz Corp., 7.0%, 7 / 15 / 03 202,098
250,000 BBB- / Ba2 Imperial Bank, 8.5%, 4 / 1 / 09 241,485
250,000 A / Baa1 Lehman Brothers Holdings, 6.625%,
4 / 1 / 04 242,985
200,000 BBB / Baa3 Mack-Cali Realty Corp., 7.25%,
3 / 15 / 09 189,826
220,000 AA- / Aa3 Merrill Lynch & Co., Inc., 6.375%,
9 / 8 / 06 211,816
200,000 A / Aa3 Nationsbank Corp., 6.5%, 3 / 15 / 06 193,968
200,000 A / Aa3 Nationsbank Corp., 7.5%, 9 / 15 / 06 205,974
500,000 A+ / A1 St. Paul Companies, Inc., 6.38%,
12 / 15 / 08 478,400
500,000 BBB / Baa2 Spieker Properties, Inc., 6.875%,
2 / 1 / 05 487,370
500,000 A / A2 SunTrust Banks Inc., 6.0%, 2 / 15 / 26 475,760
500,000 BBB+ / A3 Washington Mutual, Inc., 7.25%,
8 / 15 / 05 504,795
300,000 AA- / A2 Western National Corp., 7.125%,
2 / 15 / 04 305,313
-----------
TOTAL FINANCIAL $ 5,495,027
-----------
HEALTHCARE - 0.6%
350,000 BBB- / Ba1 Beckman Instruments, Inc., 7.05%,
6 / 1 / 26 $ 332,682
125,000 B / B3 King Pharmaceutical Inc., 10.75%,
2 / 15 / 09 128,750
-----------
TOTAL HEALTHCARE $ 461,432
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 49
<PAGE>
BALANCED PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
S&P/MOODY'S
PRINCIPAL RATINGS
AMOUNT (UNAUDITED) VALUE
<C> <S> <C> <C>
TECHNOLOGY - 1.4%
$1,000,000 A+ / A1 Motorola Inc., 6.5%, 3 / 1 / 08 $ 981,630
-----------
TOTAL TECHNOLOGY $ 981,630
-----------
TRANSPORTATION - 0.7%
500,000 BBB- / Baa2 Kansas City Southern Industries, Inc.,
7.875%, 7 / 1 / 02 $ 512,910
-----------
TOTAL TRANSPORTATION $ 512,910
-----------
UTILITIES - 1.3%
300,000 BB / Ba3 CMS Energy Corp., 7.5%, 1 / 15 / 09 $ 281,367
650,000 A / A2 Virginia Electric & Power, 6.75%,
2 / 1 / 07 655,687
-----------
TOTAL UTILITIES $ 937,054
-----------
TOTAL CORPORATE BONDS $16,168,401
-----------
U.S. GOVERNMENT OBLIGATIONS - 12.1%
4,425,000 U.S. Treasury Bonds, 6.5%, 10 / 15 / 06 $ 4,570,450
1,000,000 U.S. Treasury Bonds, 8.125%, 8 / 15 / 19 1,207,190
1,545,000 U.S. Treasury Bonds, 6.125%,
11 / 15 / 27 1,532,285
500,000 U.S. Treasury Notes, 5.25%, 5 / 15 / 04 491,250
1,025,000 U.S. Treasury Notes, 5.625%, 5 / 15 / 08 1,004,438
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS $ 8,805,613
-----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS - 17.0%
500,000 Federal Home Loan Mortgage Corp., REMIC
Series 1487F, 6.0%, 11 / 15 / 20 $ 498,330
1,000,000 Federal Home Loan Mortgage Corp., REMIC
Series 1541G, 6.75%, 11 / 15 / 21 1,003,530
1,000,000 Federal Home Loan Mortgage Corp., REMIC
Series 1652PJ, 6.6%, 8 / 15 / 22 999,990
367,057 Federal Home Loan Mortgage Corp., REMIC
Series, 2017C, 6.5%, 11 / 15 / 23 364,642
825,000 Federal National Mortgage Association,
REMIC Series 93-47C, 7.0%, 4 / 25 / 08 833,968
494,065 Government National Mortgage
Association, 6.0%, 4 / 15 / 14 477,682
496,944 Government National Mortgage
Association, 6.5%, 10 / 15 / 28 478,566
1,498,685 Government National Mortgage
Association, 6.0%, 11 / 15 / 28 1,403,114
1,399,999 Government National Mortgage
Association, 7.0%, 12 / 15 / 28 1,383,549
496,341 Government National Mortgage
Association, 6.0%, 1 / 15 / 29 464,689
1,600,000 Government National Mortgage
Association, 6.5%, 3 / 15 / 29 1,540,832
482,038 Government National Mortgage Association
I, 6.0%, 11 / 15 / 13 466,054
978,579 Government National Mortgage Association
II, 7.0%, 2 / 20 / 29 967,080
474,103 Government National Mortgage
Association, REMIC Series 1998-24A, 6.0%
11 / 20 / 24 466,712
1,000,000 Government National Mortgage
Association, REMIC Series 98-13B, 6.5%,
12 / 20 / 25 966,110
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS $12,314,848
-----------
TOTAL DEBT OBLIGATIONS
(Cost $38,215,122) $37,288,862
-----------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $67,037,292) $72,601,337
-----------
</TABLE>
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At June 30, 1999, the
value of these securities amounted to $1,976,666 or 2.7% of total net
assets.
50 The accompanying notes are an integral part of these financial statements.
<PAGE>
SWISS FRANC BOND PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED)
<TABLE>
<CAPTION>
S&P/MOODY'S
PRINCIPAL RATINGS
AMOUNT (UNAUDITED) VALUE
<C> <S> <C> <C>
DEBT OBLIGATIONS - 87.0%
AUSTRALIA - 1.6%
$1,000,000 NR / NR Shell Australia, 6.0%, 1 / 14 / 00 $ 656,423
-----------
AUSTRIA - 3.2%
1,000,000 Autobahn Schnell AG, 3.0%,
NR / NR 11 / 12 / 01 $ 654,494
1,000,000 NR / NR City of Vienna, 4.25%, 1 / 31 / 00 651,922
-----------
$ 1,306,416
-----------
BELGIUM - 1.7%
1,000,000 Societe Nationale Credit a
d'Investissement, 7.25%,
NR / NR 10 / 2 / 00 $ 684,068
-----------
CANADA - 12.4%
3,000,000 GMAC Canada Ltd., 3.75%,
AA- / Aa3 1 / 16 / 01 $ 1,976,019
2,000,000 Province of Ontario, 4.0%,
AA- / Aa3 6 / 29 / 01 1,442,073
1,260,000 Province of Saskatchewan, 7.0%,
NR / A2 8 / 17 / 00 856,661
1,200,000 A+ / A2 Quebec Province, 3.5%, 9 / 17 / 08 763,405
-----------
$ 5,038,158
-----------
DENMARK - 3.0%
600,000 NR / Aa1 Great Belt AS, 4.25%, 9 / 24 / 04 $ 412,176
1,340,000 Kingdom of Denmark, 0.0%,
AA+ / Aa1 2 / 17 / 02 808,101
-----------
$ 1,220,277
-----------
FRANCE - 8.0%
1,800,000 Caisse National d'Autoroutes,
AAA / Aaa 3.375%, 2 / 27 / 08 $ 1,167,674
1,800,000 Reseau Ferre de France, 3.25%,
AAA / Aaa 9 / 12 / 08 1,150,894
1,300,000 NR / NR Rhone-Alpes, 6.375%, 11 / 25 / 02 931,497
-----------
$ 3,250,065
-----------
GERMANY - 10.2%
2,000,000 Bayerische Vereinsbank, 4.25%,
NR / Aa3 2 / 21 / 07 $ 1,338,241
2,000,000 NR / A1 Commerzbank AG, 7.0%, 7 / 25 / 01 1,398,354
2,200,000 Frankfurter Hypothekenbank
Centralboden AG, 3.125%,
AAA / Aaa 4 / 29 / 08 1,395,332
-----------
$ 4,131,927
-----------
IRELAND - 2.2%
1,300,000 Republic of Ireland, 6.5%,
AA+ / Aaa 1 / 15 / 01 $ 890,543
-----------
NETHERLANDS - 9.5%
1,400,000 NR / A1 BMW Finance NV, 5.0%, 4 / 21 / 13 $ 942,844
1,000,000 De Nationale Investeringsbank NV,
NR / Aa3 3.25%, 12 / 20 / 99 647,743
1,400,000 Deutsche Finance BV, 3.5%,
AA+ / Aa1 2 / 19 / 03 929,343
2,000,000 NR / Aaa Helaba Finance, 3.75%, 12 / 28 / 00 1,324,418
-----------
$ 3,844,348
-----------
NEW ZEALAND - 5.0%
3,000,000 Transpower Finance Ltd., 4.25%,
AA+ / Aa2 6 / 10 / 04 $ 2,052,205
-----------
NORWAY - 3.6%
2,165,000 AA / Aa2 Statoil, 4.125%, 9 / 20 / 01 $ 1,450,038
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 51
<PAGE>
SWISS FRANC BOND PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
S&P/MOODY'S
PRINCIPAL RATINGS
AMOUNT (UNAUDITED) VALUE
<C> <S> <C> <C>
SWEDEN - 5.0%
$3,000,000 NR / Aa3 AB Spintab, 3.25%, 1 / 24 / 02 $ 1,967,822
100,000 City of Gothenberg, 6.375%,
NR / A1 12 / 10 / 99 65,449
-----------
$ 2,033,271
-----------
PHILIPPINES - 4.8%
2,000,000 Asian Development Bank,
AAA / Aaa 7.375%,11 / 27 / 00 $ 1,957,668
-----------
UNITED KINGDOM - 0.8%
500,000 Abbey National Treasury Services,
AA / Aa2 4.0%, 12 / 30 / 99 $ 325,158
-----------
UNITED STATES - 16.0%
2,500,000 Citibank Credit Card Master Trust,
NR / A1 3.5%, 11 / 25 / 02 $ 1,648,290
300,000 General Electric Capital Corp.,
NR / Aaa 3.5%, 5 / 29 / 00 195,770
3,000,000 J.P. Morgan & Co. Inc., 2.0%,
NR / A1 12 / 27 / 01 1,915,263
2,200,000 Merrill Lynch & Co., 3.0%,
AA- / Aa3 4 / 8 / 02 1,437,765
2,000,000 Toyota Motor Credit Corp., 4.5%,
AAA / Aa1 9 / 29 / 00 1,325,704
-----------
$ 6,522,792
-----------
TOTAL DEBT OBLIGATIONS
(Cost $39,495,740) $35,363,357
-----------
TEMPORARY CASH INVESTMENTS - 13.0%
COMMERCIAL PAPER - 13.0%
1,626,000 American Express Credit Corp.,
5.2%, 7 / 2 / 99 $ 1,626,000
1,182,000 Citigroup Inc., 5.26%, 7 / 7 / 99 1,182,000
1,000,000 Household Finance Corp., 5.75%,
7 / 1 / 99 1,000,000
1,480,000 Prudential Funding Corp., 5.25%,
7 / 6 / 99 1,480,000
-----------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $5,288,000) $ 5,288,000
-----------
TOTAL INVESTMENT IN
SECURITIES - 100%
(Cost $44,783,740) $40,651,357
-----------
</TABLE>
52 The accompanying notes are an integral part of these financial statements.
<PAGE>
AMERICA INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
U.S GOVERNMENT AND AGENCY
OBLIGATIONS - 100%
$300,000 Federal Farm Credit Bank, Medium Term
Note, 6.38%, 11 / 27 / 06 $ 300,249
350,000 Federal Farm Credit Bank, Medium Term
Note, 6.78%, 12 / 12 / 07 345,205
400,000 Federal Home Loan Bank, 6.02%,
3 / 17 / 08 384,452
110,000 Federal Home Loan Mortgage Corp., 6.55%,
1 / 4 / 00 110,626
300,000 Federal Home Loan Mortgage Corp.,
7.125%, 11 / 18 / 02 310,104
600,000 Federal Home Loan Mortgage Corp., 6.54%,
11 / 6 / 07 588,444
179,148 Federal Home Loan Mortgage Corp., 7.0%,
9 / 1 / 27 177,514
498,483 Federal Home Loan Mortgage Corp., 6.5%,
3 / 1 / 29 481,794
139,975 Federal Home Loan Mortgage Corp., REMIC
Series G031K, 6.5%, 10 / 25 / 14 138,076
32,696 Federal Home Loan Mortgage Corp., REMIC
Series 1142H, 7.95%, 12 / 15 / 20 32,700
500,000 Federal Home Loan Mortgage Corp., REMIC
Series 1541G, 6.75%, 11 / 15 / 21 501,765
660,400 Federal Home Loan Mortgage Corp., REMIC
Series 2043DB, 6.5%, 1 / 15 / 25 657,184
500,000 Federal Home Loan Mortgage Corp., REMIC
Series 2106K, 6.0%, 4 / 15 / 25 466,875
225,000 Federal National Mortgage Association,
6.8%, 1 / 10 / 03 229,748
1,504,250 Federal National Mortgage Association,
6.5%, 5 / 18 / 26 to 11 / 1 / 28 1,454,469
993,760 Federal National Mortgage Association,
6.0%, 12 / 1 / 28 933,786
300,000 Federal National Mortgage Association,
Medium Term Note, 6.84%, 7 / 17 / 07 298,221
300,000 Federal National Mortgage Association,
Medium Term Note, 6.44%, 8 / 14 / 07 299,556
350,000 Federal National Mortgage Association,
Medium Term Note, 6.59%, 9 / 17 / 07 352,769
230,228 Government National Mortgage
Association, 8.0%, 2 / 15 / 08 238,530
144,481 Government National Mortgage
Association, 7.5%, 10 / 15 / 22 to
9 / 15 / 23 146,401
2,083,390 Government National Mortgage
Association, 6.0%, 3 / 15 / 26 to
1 / 15 / 29 1,950,716
2,998,544 Government National Mortgage
Association, 6.5%, 1 / 15 / 28 to
2 / 15 / 29 2,887,969
2,759,857 Government National Mortgage
Association, 7.0%, 12 / 15 / 25 to
6 / 15 / 29 2,727,770
490,277 Government National Mortgage Association
I, 6.5%, 8 / 15 / 28 472,146
36,654 Government National Mortgage Association
II, 8.0%, 8 / 20 / 25 37,713
669,154 Government National Mortgage Association
II, 7.5%, 8 / 20 / 27 676,916
2,081,655 Government National Mortgage Association
II, 6.5%, 8 / 20 / 28 to 2 / 20 / 29 2,004,674
978,579 Government National Mortgage Association
II, 7.0%, 2 / 20 / 29 967,080
500,000 Government National Mortgage
Association, REMIC Series 1998-21VB,
6.5%, 10 / 20 / 11 487,995
474,103 Government National Mortgage
Association, REMIC Series 1998-24A,
6.5%, 11 / 20 / 24 466,712
250,000 Private Export Funding, 7.3%,
1 / 31 / 02 257,487
500,000 Private Export Funding, 6.9%,
1 / 31 / 03 509,925
200,000 Student Loan Marketing Association,
7.5%, 3 / 8 / 00 202,716
250,000 Tennessee Valley Authority, 6.375%,
6 / 15 / 05 251,722
300,000 Tennessee Valley Authority, 6.75%,
6 / 1 / 28 289,500
2,100,000 U.S. Treasury Bonds, 7.25%, 5 / 15 / 16 2,312,163
2,100,000 U.S. Treasury Bonds, 6.25%, 8 / 15 / 23 2,106,195
200,000 U.S. Treasury Notes, 7.875%,
11 / 15 / 04 218,656
2,000,000 U.S. Treasury Notes, 7.0%, 7 / 15 / 06 2,120,920
-----------
TOTAL INVESTMENTS IN SECURITIES
(Cost $30,436,561) $29,397,443
-----------
</TABLE>
Note: The Portfolio's investments in mortgage-backed securities of the
Government National Mortgage Association (GNMA) are interests in separate
pools of mortgages. All separate investments in the issuer which have the
same coupon rate have been aggregated for the purpose of presentation in
the schedule of investments.
The accompanying notes are an integral part of these financial statements. 53
<PAGE>
MONEY MARKET PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6 / 30 / 99 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
COMMERCIAL PAPER - 72.6%
$1,030,000 Abbott Laboratories, 4.92%, 7 / 20 / 99 $ 1,027,461
638,000 American Express Credit Corp., 4.78%,
8 / 24 / 99 633,426
908,000 American General Finance Corp., 4.83%,
7 / 20 / 99 905,685
1,015,000 BellSouth Capital Funding Corp., 4.96%,
9 / 2 / 99 1,006,190
1,150,000 Chevron USA, Inc., 4.78%, 7 / 9 / 99 1,148,779
965,000 The Coca Cola Co., 4.93%, 8 / 17 / 99 958,789
758,000 Commercial Credit Co., 4.84%,
7 / 15 / 99 756,573
1,125,000 Deere (John) Capital Corp., 4.79%,
8 / 12 / 99 1,118,713
1,095,000 E. I. Du Pont de Nemours & Co., 4.86%,
8 / 20 / 99 1,087,609
1,042,000 Ford Motor Credit Corp., 4.83%,
7 / 19 / 99 1,039,484
1,124,000 General Electric Capital Corp., 4.81%,
7 / 12 / 99 1,122,348
1,025,000 General Motors Acceptance Corp., 4.87%,
8 / 26 / 99 1,017,235
1,250,000 Household Finance Corp., 4.78%,
7 / 16 / 99 1,247,510
1,020,000 IBM Corp., 4.8%, 7 / 6 / 99 1,019,320
520,000 J.P. Morgan & Co. Inc., 4.77%,
9 / 15 / 99 514,763
990,000 Norwest Financial Inc., 4.96%,
7 / 13 / 99 988,363
1,100,000 Pfizer, Inc., 4.78%, 7 / 14 / 99 1,098,101
1,094,000 Prudential Funding Corp., 4.92%,
8 / 23 / 99 1,086,076
1,065,000 Shell Oil Co., 4.92%, 7 / 19 / 99 1,062,380
970,000 Walt Disney Co., 4.74%, 10 / 12 / 99 956,845
1,120,000 Warner-Lambert Inc., 5.05%, 7 / 30 / 99 1,115,444
-----------
$20,911,094
-----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS - 13.9%
1,000,000 Federal Farm Credit Bank, 4.77%,
7 / 1 / 99 $ 1,000,000
1,000,000 Federal Farm Credit Bank, 4.875%,
9 / 1 / 99 1,000,000
1,000,000 Federal Farm Credit Bank, 5.06%,
10 / 1 / 99 1,000,000
1,000,000 Federal Farm Credit Bank, 4.77%,
11 / 1 / 99 1,000,000
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS $ 4,000,000
-----------
REPURCHASE AGREEMENT - 13.5%
3,900,000 Credit Suisse First Boston Group, Inc.,
4.7%, dated 6 / 30 / 99, repurchase
price of $3,900,000 plus accrued
interest on 7/1/99, collateralized by
$3,245,000 U.S. Treasury Notes, 11.125%,
8/15/03 $ 3,900,000
-----------
TOTAL REPURCHASE AGREEMENT $ 3,900,000
-----------
TOTAL INVESTMENT IN SECURITIES - 100% $28,811,094
-----------
</TABLE>
54 The accompanying notes are an integral part of these financial statements.
<PAGE>
EMERGING MARKETS PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6 / 30 / 99
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6 / 30 / 99 10 / 30 / 98 TO
(UNAUDITED) 12 / 31 / 98
<S> <C> <C>
Net asset value, beginning of period $10.49 $ 10.00
----------- ---------------
Increase from investment operations:
Net investment income $ 0.01 $ 0.00
Net realized and unrealized gain on investments
and foreign currency transactions 3.62 0.49
----------- ---------------
Net increase in net asset value $ 3.63 $ 0.49
----------- ---------------
Net asset value, end of period $14.12 $ 10.49
----------- ---------------
Total return* 34.60% 4.90%
Ratio of net expenses to average net assets 1.96%**+ 1.75%**
Ratio of net investment loss to average net assets (0.04)%**+ (0.01)%**
Portfolio turnover rate 137%** 60%**
Net assets, end of period (in thousands) $1,057 $ 133
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 16.71%** 104.83%**
Net investment loss (14.79)%** (103.09)%**
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 1.75%** 1.75%**
Net investment income (loss) 0.17%** (0.01)%**
</TABLE>
EUROPE PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6 / 30 / 99
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6 / 30 / 99 10 / 30 / 98 TO
(UNAUDITED) 12 / 31 / 98
<S> <C> <C>
Net asset value, beginning of period $10.60 $ 10.00
----------- ---------------
Increase (decrease) from investment operations:
Net investment income $ 0.08 $ 0.00
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (0.25) 0.60
----------- ---------------
Net increase (decrease) from investment
operations $(0.17) $ 0.60
Distributions to shareholders:
Net realized gain (0.01) --
----------- ---------------
Net increase (decrease) in net asset value $(0.18) $ 0.60
----------- ---------------
Net asset value, end of period $10.42 $ 10.60
----------- ---------------
Total return* (1.64)% 6.00%
Ratio of net expenses to average net assets 1.55%**+ 1.50%**
Ratio of net investment income to average net
assets 2.21%**+ 0.00%**
Portfolio turnover rate 46%** 6%**
Net assets, end of period (in thousands) $7,438 $ 1,620
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 3.08%** 16.56%**
Net investment income (loss) 0.68%** (15.06)%**
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 1.50%** 1.50%**
Net investment income 2.26%** 0.00%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 55
<PAGE>
INTERNATIONAL GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6 / 30 / 99
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6 / 30 / 99 YEAR ENDED YEAR ENDED YEAR ENDED 3 / 1 / 95 TO
(UNAUDITED) 12 / 31 / 98 12 / 31 / 97 12 / 31 / 96 12 / 31 / 95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.79 $ 12.23 $ 11.83 $ 10.93 $ 10.00
----------- ----------- ----------- ----------- -------------
Increase (decrease) from investment operations:
Net investment income $ 0.08 $ 0.09 $ 0.06 $ 0.05 $ -
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.65 (0.45) 0.53 0.88 1.04
----------- ----------- ----------- ----------- -------------
Net increase (decrease) from investment
operations $ 0.73 $ (0.36) $ 0.59 $ 0.93 $ 1.04
Distributions to shareholders:
Net investment income (0.15) (0.19) (0.03) - -
In excess of net investment income - - - - (0.02)
Net realized gain - (0.89) (0.16) (0.03) (0.09)
----------- ----------- ----------- ----------- -------------
Net increase (decrease) in net asset value $ 0.58 $ (1.44) $ 0.40 $ 0.90 $ 0.93
----------- ----------- ----------- ----------- -------------
Net asset value, end of period $ 11.37 $ 10.79 $ 12.23 $ 11.83 $ 10.93
----------- ----------- ----------- ----------- -------------
Total return* 6.74% (3.32)% 4.87% 8.54% 10.42%
Ratio of net expenses to average net assets 1.24%**+ 1.44%+ 1.49%+ 1.52%+ 2.10%**+
Ratio of net investment income (loss) to average
net assets 1.27%**+ 1.00%+ 0.78%+ 0.78%+ (0.25)%**+
Portfolio turnover rate 127%** 113% 133% 115% 139%**
Net assets, end of period (in thousands) $51,418 $51,525 $49,412 $24,770 $ 2,967
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.24%** 1.47% 1.71% 3.04% 17.22%**
Net investment income (loss) 1.27%** 0.97% 0.56% (0.74)% (15.37)%**
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 1.24%** 1.43% 1.48% 1.50% 1.75%**
Net investment income 1.27%** 1.01% 0.79% 0.80% 0.10%**
</TABLE>
CAPITAL GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6 / 30 / 99
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6 / 30 / 99 YEAR ENDED YEAR ENDED YEAR ENDED 3 / 1 / 95 TO
(UNAUDITED) 12 / 31 / 98 12 / 31 / 97 12 / 31 / 96 12 / 31 / 95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.49 $ 16.15 $ 13.05 $ 11.57 $ 10.00
----------- ----------- ----------- ----------- -------------
Increase (decrease) from investment operations:
Net investment income $ 0.07 $ 0.12 $ 0.12 $ 0.03 $ 0.02
Net realized and unrealized gain (loss) on
investments 2.34 (0.65) 3.09 1.71 1.69
----------- ----------- ----------- ----------- -------------
Net increase (decrease) from investment
operations $ 2.41 $ (0.53) $ 3.21 $ 1.74 $ 1.71
Distributions to shareholders:
Net investment income (0.13) (0.10) - (0.03) (0.02)
Net realized gain - (1.03) (0.11) (0.23) (0.12)
----------- ----------- ----------- ----------- -------------
Net increase (decrease) in net asset value $ 2.28 $ (1.66) 3.10 $ 1.48 $ 1.57
----------- ----------- ----------- ----------- -------------
Net asset value, end of period $ 16.77 $ 14.49 $ 16.15 $ 13.05 $ 11.57
----------- ----------- ----------- ----------- -------------
Total return* 16.60% (4.02)% 24.69% 15.03% 17.13%
Ratio of net expenses to average net assets 0.76%**+ 0.74%+ 0.80%+ 0.93%+ 1.56%**+
Ratio of net investment income to average net
assets 0.81%**+ 0.90%+ 1.02%+ 0.37%+ 0.48%**+
Portfolio turnover rate 88%** 81% 50% 41% 46%**
Net assets, end of period (in thousands) $124,612 $113,359 $105,476 $48,572 $ 9,357
Ratio assuming no waiver of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.76%** 0.74% 0.80% 0.95% 3.95%**
Net investment income (loss) 0.81%** 0.90% 1.02% 0.35% (1.91)%**
Ratio assuming waiver of management fees and
assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 0.76%** 0.74% 0.79% 0.92% 1.49%**
Net investment income 0.81%** 0.90% 1.03% 0.38% 0.55%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
56 The accompanying notes are an integral part of these financial statements.
<PAGE>
GROWTH SHARES PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6 / 30 / 99
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6 / 30 / 99 YEAR ENDED 10 / 31 / 97 TO
(UNAUDITED) 12 / 31 / 98 12 / 31 / 97
<S> <C> <C> <C>
Net asset value, beginning of period $ 20.34 $ 15.34 $ 15.00
----------- ----------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.02) $ 0.00 $ 0.01
Net realized and unrealized gain on investments 2.14 5.00 0.33
----------- ----------- -------
Net increase from investment operations $ 2.12 $ 5.00 $ 0.34
Distributions to shareholders:
Net investment income (0.01) (0.00) -
Net realized gain (0.03) - -
----------- ----------- -------
Net increase in net asset value $ 2.08 $ 5.00 $ 0.34
----------- ----------- -------
Net asset value, end of period $ 22.42 $ 20.34 $ 15.34
----------- ----------- -------
Total return* 10.40% 32.60% 2.27%
Ratio of net expenses to average net assets 0.76%**+ 0.88%+ 1.25%**
Ratio of net investment income (loss) to average
net assets (0.17)%**+ 0.08%+ 0.60%**
Portfolio turnover rate 43%** 28% 16%**
Net assets, end of period (in thousands) $151,007 $85,670 $ 4,646
Ratio assuming no waiver of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.76%** 0.92% 6.57%**
Net investment income (loss) (0.17)%** 0.04% (4.72)%**
Ratio assuming waiver of management fees and
assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 0.76%** 0.88% 1.25%**
Net investment income (loss) (0.17)%** 0.08% 0.60%**
</TABLE>
REAL ESTATE GROWTH PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6 / 30 / 99
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6 / 30 / 99 YEAR ENDED YEAR ENDED YEAR ENDED 3 / 31 / 95 TO
(UNAUDITED) 12 / 31 / 98 12 / 31 / 97 12 / 31 / 96 12 / 31 / 95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.07 $ 16.90 $ 14.46 $ 11.23 $ 10.00
----------- ----------- ----------- ----------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.32 $ 0.60 $ 0.47 $ 0.54 $ 0.12
Net realized and unrealized gain (loss) on
investments 0.31 (3.72) 2.54 3.34 1.55
----------- ----------- ----------- ----------- -------
Net increase (decrease) from investment
operations $ 0.63 $ (3.12) $ 3.01 $ 3.88 $ 1.67
Distributions to shareholders:
Net investment income (0.31) (0.56) (0.45) (0.53) (0.23)
Tax return of capital - - - - (0.18)
Net realized gain (0.12) (0.15) (0.12) (0.12) (0.03)
----------- ----------- ----------- ----------- -------
Net increase (decrease) in net asset value $ 0.20 $ (3.83) $ 2.44 $ 3.23 $ 1.23
----------- ----------- ----------- ----------- -------
Net asset value, end of period $ 13.27 $ 13.07 $ 16.90 $ 14.46 $ 11.23
----------- ----------- ----------- ----------- -------
Total return* 5.02% (18.74)% 21.16% 35.73% 16.96%
Ratio of net expenses to average net assets 1.19%**+ 1.19%+ 1.25%+ 1.34%+ 2.10%**+
Ratio of net investment income to average net
assets 4.77%**+ 4.06%+ 3.16%+ 4.63%+ 2.68%**+
Portfolio turnover rate 54%** 18% 28% 41% 1%**
Net assets, end of period (in thousands) $32,405 $35,579 $42,187 $11,115 $ 512
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 1.29%** 1.20% 1.37% 3.35% 45.96%**
Net investment income (loss) 4.67%** 4.05% 3.04% 2.62% (41.18)%**
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 1.18%** 1.19% 1.24% 1.24% 1.57%**
Net investment income 4.78%** 4.06% 3.17% 4.73% 3.21%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 57
<PAGE>
GROWTH AND INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6 / 30 / 99
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6 / 30 / 99 YEAR ENDED 10 / 31 / 97 TO
(UNAUDITED) 12 / 31 / 98 12 / 31 / 97
<S> <C> <C> <C>
Net asset value, beginning of period $ 19.76 $ 15.80 $ 15.00
----------- ----------- -------
Increase from investment operations:
Net investment income $ 0.08 $ 0.15 $ 0.01
Net realized and unrealized gain on investments 2.04 3.96 0.80
----------- ----------- -------
Net increase from investment operations $ 2.12 $ 4.11 $ 0.81
Distributions to shareholders:
Net investment income (0.07) (0.15) (0.01)
Net realized gain (0.02) - -
----------- ----------- -------
Net increase in net asset value $ 2.03 $ 3.96 $ 0.80
----------- ----------- -------
Net asset value, end of period $ 21.79 $ 19.76 $ 15.80
----------- ----------- -------
Total return* 10.77% 26.12% 5.43%
Ratio of net expenses to average net assets 0.75%**+ 0.86%+ 1.25%**
Ratio of net investment income to average net
assets 0.89%**+ 0.97%+ 1.07%**
Portfolio turnover rate 12% 4% -
Net assets, end of period (in thousands) $156,901 $89,860 $ 4,493
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.75%** 0.87% 5.30%**
Net investment income (loss) 0.89%** 0.96% (2.98)%**
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 0.75%** 0.86% 1.25%**
Net investment income 0.89%** 0.97% 1.07%**
</TABLE>
EQUITY-INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6 / 30 / 99
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6 / 30 / 99 YEAR ENDED YEAR ENDED YEAR ENDED 3 / 1 / 95 TO
(UNAUDITED) 12 / 31 / 98 12 / 31 / 97 12 / 31 / 96 12 / 31 / 95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 21.44 $ 18.14 $ 13.73 $ 12.17 $ 10.00
----------- ----------- ----------- ----------- -------
Increase from investment operations:
Net investment income $ 0.19 $ 0.39 $ 0.35 $ 0.29 $ 0.19
Net realized and unrealized gain on investments 1.38 3.52 4.44 1.54 2.16
----------- ----------- ----------- ----------- -------
Net increase from investment operations $ 1.57 $ 3.91 $ 4.79 $ 1.83 $ 2.35
Distributions to shareholders:
Net investment income (0.18) (0.39) (0.37) (0.27) (0.18)
Net realized gain (0.58) (0.22) (0.01) - -
----------- ----------- ----------- ----------- -------
Net increase in net asset value $ 0.81 $ 3.30 $ 4.41 $ 1.56 $ 2.17
----------- ----------- ----------- ----------- -------
Net asset value, end of period $ 22.25 $ 21.44 $ 18.14 $ 13.73 $ 12.17
----------- ----------- ----------- ----------- -------
Total return* 7.47% 21.80% 35.23% 15.19% 23.62%
Ratio of net expenses to average net assets 0.71%**+ 0.71%+ 0.77%+ 0.96%+ 1.63%**+
Ratio of net investment income to average net
assets 1.86%**+ 2.04%+ 2.31%+ 2.67%+ 2.89%**+
Portfolio turnover rate 31%** 19% 15% 18% -
Net assets, end of period (in thousands) $238,843 $203,976 $124,213 $46,871 $ 6,914
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.71%** 0.71% 0.77% 0.98% 5.32%**
Net investment income (loss) 1.86%** 2.04% 2.31% 2.65% (0.80)%**
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 0.71%** 0.71% 0.77% 0.95% 1.47%**
Net investment income 1.86%** 2.04% 2.31% 2.68% 3.05%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
58 The accompanying notes are an integral part of these financial statements.
<PAGE>
BALANCED PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6 / 30 / 99
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6 / 30 / 99 YEAR ENDED YEAR ENDED YEAR ENDED 3 / 1 / 95 TO
(UNAUDITED) 12 / 31 / 98 12 / 31 / 97 12 / 31 / 96 12 / 31 / 95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.47 $ 14.99 $ 13.19 $ 11.87 $ 10.00
----------- ----------- ----------- ----------- ---------------
Increase from investment operations:
Net investment income $ 0.25 $ 0.42 $ 0.36 $ 0.29 $ 0.20
Net realized and unrealized gain on investments 0.15 0.00 1.94 1.39 1.87
----------- ----------- ----------- ----------- ---------------
Net increase from investment operations $ 0.40 $ 0.42 $ 2.30 $ 1.68 $ 2.07
Distributions to shareholders:
Net investment income (0.24) (0.42) (0.36) (0.29) (0.20)
Net realized gain - (0.52) (0.14) (0.07) -
----------- ----------- ----------- ----------- ---------------
Net increase (decrease) in net asset value $ 0.16 $ (0.52) $ 1.80 $ 1.32 $ 1.87
----------- ----------- ----------- ----------- ---------------
Net asset value, end of period $ 14.63 $ 14.47 $ 14.99 $ 13.19 $ 11.87
----------- ----------- ----------- ----------- ---------------
Total return* 2.81% 2.64% 17.62% 14.26% 20.84%
Ratio of net expenses to average net assets 0.78%**+ 0.80%+ 0.96%+ 1.20%+ 1.76%**+
Ratio of net investment income to average net
assets 3.47%**+ 2.93%+ 2.63%+ 2.83%+ 2.99%**+
Portfolio turnover rate 52%** 104% 63% 74% -
Net assets, end of period (in thousands) $72,905 $66,930 $44,008 $16,783 $ 2,661
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.78%** 0.80% 0.96% 1.58% 14.77%**
Net investment income (loss) 3.47%** 2.93% 2.63% 2.45% (10.02)%**
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 0.78%** 0.80% 0.95% 1.15% 1.45%**
Net investment income 3.47%** 2.93% 2.64% 2.88% 3.30%**
</TABLE>
SWISS FRANC BOND PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6 / 30 / 99
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6 / 30 / 99 YEAR ENDED YEAR ENDED YEAR ENDED 11 / 1 / 95 TO
(UNAUDITED) 12 / 31 / 98 12 / 31 / 97 12 / 31 / 96 12 / 31 / 95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.22 $ 12.50 $ 13.42 $ 15.06 $ 15.00
----------- ----------- ----------- ----------- ---------------
Increase (decrease) from investment operations:
Net investment income $ 0.21 $ 0.36 $ 0.30 $ 0.14 $ 0.04
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (1.72) 0.82 (1.22) (1.78) 0.02
----------- ----------- ----------- ----------- ---------------
Net increase (decrease) from investment
operations $ (1.51) $ 1.18 $ (0.92) $ (1.64) $ 0.06
Distributions to shareholders:
Net investment income - (0.46) - - -
----------- ----------- ----------- ----------- ---------------
Net increase (decrease) in net asset value $ (1.51) $ 0.72 $ (0.92) $ (1.64) $ 0.06
----------- ----------- ----------- ----------- ---------------
Net asset value, end of period $ 11.71 $ 13.22 $ 12.50 $ 13.42 $ 15.06
----------- ----------- ----------- ----------- ---------------
Total return* (11.42)% 9.48% (6.92)% (10.88)% 0.40%
Ratio of net expenses to average net assets 0.90%**+ 0.91%+ 1.23%+ 1.20%+ 2.25%**+
Ratio of net investment income to average net
assets 3.32%**+ 3.41%+ 3.22%+ 3.37%+ 1.70%**+
Portfolio turnover rate 5%** 29% 17% 39% -
Net assets, end of period (in thousands) $41,198 $41,174 $22,088 $13,079 $ 189
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.90%** 0.91% 1.25% 2.58% 69.22%**
Net investment income (loss) 3.32%** 3.41% 3.20% 1.99% (65.27)%**
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 0.89%** 0.90% 1.22% 1.15% 1.25%**
Net investment income 3.33%** 3.42% 3.23% 3.42% 2.70%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 59
<PAGE>
AMERICA INCOME PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6 / 30 / 99
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6 / 30 / 99 YEAR ENDED YEAR ENDED YEAR ENDED 3 / 1 / 95 TO
(UNAUDITED) 12 / 31 / 98 12 / 31 / 97 12 / 31 / 96 12 / 31 / 95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.29 $ 10.04 $ 9.78 $ 10.18 $ 10.00
----------- ----------- ----------- ----------- ---------------
Increase (decrease) from investment operations:
Net investment income $ 0.27 $ 0.55 $ 0.54 $ 0.52 $ 0.38
Net realized and unrealized gain (loss) on
investments (0.53) 0.25 0.26 (0.40) 0.18
----------- ----------- ----------- ----------- ---------------
Net increase (decrease) from investment
operations $ (0.26) $ 0.80 $ 0.80 $ 0.12 $ 0.56
Distributions to shareholders:
Net investment income (0.27) (0.55) (0.54) (0.52) (0.38)
Net realized gain (0.01) - - - -
----------- ----------- ----------- ----------- ---------------
Net increase (decrease) in net asset value $ (0.54) $ 0.25 $ 0.26 $ (0.40) $ 0.18
----------- ----------- ----------- ----------- ---------------
Net asset value, end of period $ 9.75 $ 10.29 $ 10.04 $ 9.78 $ 10.18
----------- ----------- ----------- ----------- ---------------
Total return* (2.56)% 8.15% 8.44% 1.30% 5.68%
Ratio of net expenses to average net assets 0.82%**+ 0.94%+ 1.26%+ 1.31%+ 1.12%**+
Ratio of net investment income to average net
assets 5.44%**+ 5.35%+ 5.46%+ 5.25%+ 5.22%**+
Portfolio turnover rate 48%** 36% 11% 60% 96%**
Net assets, end of period (in thousands) $29,885 $28,822 $14,519 $ 6,872 $ 3,514
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 0.82%** 0.94% 1.43% 2.24% 11.86%**
Net investment income (loss) 5.44%** 5.35% 5.29% 4.32% (5.52)%**
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 0.81%** 0.93% 1.23% 1.25% 0.99%**
Net investment income 5.45%** 5.36% 5.49% 5.31% 5.35%**
</TABLE>
MONEY MARKET PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6 / 30 / 99
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6 / 30 / 99 YEAR ENDED YEAR ENDED YEAR ENDED 3 / 1 / 95 TO
(UNAUDITED) 12 / 31 / 98 12 / 31 / 97 12 / 31 / 96 12 / 31 / 95
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- ---------------
Increase from investment operations:
Net investment income $ 0.02 $ 0.05 $ 0.05 $ 0.04 $ 0.04
----------- ----------- ----------- ----------- ---------------
Distributions to shareholders:
Net investment income (0.02) (0.05) (0.05) (0.04) (0.04)
----------- ----------- ----------- ----------- ---------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- ---------------
Total return* 1.97% 4.68% 4.64% 4.51% 4.35%
Ratio of net expenses to average net assets 0.86%**+ 0.92%+ 1.00%+ 0.97%+ 0.81%**+
Ratio of net investment income to average net
assets 3.96%**+ 4.55%+ 4.55%+ 4.43%+ 5.00%**+
Net assets, end of period (in thousands) $27,322 $21,497 $13,739 $11,744 $ 3,416
Ratios assuming no waiver of fees and assumption
of expenses by PIM and no reduction for fees paid
indirectly:
Net expenses 0.86%** 0.97% 1.17% 1.29% 8.34%**
Net investment income (loss) 3.96%** 4.50% 4.38% 4.11% (2.53)%**
Ratios assuming waiver of fees and assumption of
expenses by PIM and reduction for fees paid
indirectly:
Net expenses 0.86%** 0.92% 0.99% 0.96% 0.74%**
Net investment income 3.96%** 4.55% 4.56% 4.44% 5.07%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
60 The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
THIS PAGE FOR YOUR NOTES.
The accompanying notes are an integral part of these financial statements. 61
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
- ------------------------------------------------------------
BALANCE SHEETS 6 / 30 / 99 (UNAUDITED)
<TABLE>
<CAPTION>
EMERGING MARKETS EUROPE INTERNATIONAL GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
ASSETS:
Investment in
securities, at value
(cost $815,095,
$6,797,519,
$43,326,962,
$101,635,970,
$124,317,373,
$32,513,706,
$130,800,702,
$188,874,002, and
$67,037,292,
respectively) $ 963,814 $ 6,755,748 $49,031,699
Temporary cash
investments (at
amortized cost) - 500,000 2,534,000
Cash 49,330 36,658 -
Foreign currencies, at
value 39,477 15,455 139,552
Receivables -
Investment securities
sold 2,752 151,613 346,816
Fund shares sold 44,183 20,887 -
Dividends, interest
and foreign taxes
withheld 2,351 12,905 164,595
Forward foreign
currency settlement
contracts, net - 203 -
Due from Pioneer
Investment
Management, Inc. 6,214 11,282 -
Other - - 198
----------------- ------------- ---------------------
Total assets $1,108,121 $ 7,504,751 $52,216,860
----------------- ------------- ---------------------
LIABILITIES:
Payables -
Investment securities
purchased $ 33,887 $ 48,562 $ 523,819
Fund shares
repurchased - - 36,043
Forward foreign
currency settlement
contracts, net 98 - 679
Due to bank - - 82,612
Due to affiliates 70 2 50,468
Accrued expenses 13,494 18,319 42,922
Reserve for repatriation
and capital gains
taxes 3,359 - 61,904
----------------- ------------- ---------------------
Total liabilities $ 50,908 $ 66,883 $ 798,447
----------------- ------------- ---------------------
NET ASSETS:
Paid-in capital $ 888,657 $ 7,412,073 $56,308,837
Accumulated net
investment income
(loss) 415 56,078 162,773
Accumulated net realized
gain (loss) on
investments and
foreign currency
transactions 22,969 11,709 (10,691,767)
Net unrealized gain
(loss) on:
Investments (net of
reserve for
repatriation and
capital gains taxes) 145,360 (41,771) 5,642,833
Other assets and
liabilities
denominated in
foreign currencies (188) (221) (4,263)
----------------- ------------- ---------------------
Total net assets $1,057,213 $ 7,437,868 $51,418,413
----------------- ------------- ---------------------
NET ASSET VALUE PER
SHARE:
(Unlimited number of
shares authorized)
Shares outstanding 74,851 713,941 4,521,968
Net asset value per
share $ 14.12 $ 10.42 $ 11.37
----------------- ------------- ---------------------
</TABLE>
62 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
- ------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL GROWTH GROWTH SHARES REAL ESTATE GROWTH GROWTH AND INCOME EQUITY-INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in
securities, at value
(cost $815,095,
$6,797,519,
$43,326,962,
$101,635,970,
$124,317,373,
$32,513,706,
$130,800,702,
$188,874,002, and
$67,037,292,
respectively) $114,760,446 $140,835,219 $31,655,310 $151,446,497 $238,254,286
Temporary cash
investments (at
amortized cost) 7,906,000 12,423,000 650,000 5,310,000 -
Cash 941 537 603 294 -
Foreign currencies, at
value - - - - -
Receivables -
Investment securities
sold 1,215,760 102,252 243,905 - 1,033,566
Fund shares sold 2,284,414 - 72,739 513,716 264,302
Dividends, interest
and foreign taxes
withheld 117,570 35,668 204,538 135,434 361,610
Forward foreign
currency settlement
contracts, net -- -- -- -- --
Due from Pioneer
Investment
Management, Inc. -- -- -- -- --
Other 544 457 421 465 -
--------------- -------------- ------------------- ------------------ --------------
Total assets $126,285,675 $153,397,133 $32,827,516 $157,406,406 $239,913,764
--------------- -------------- ------------------- ------------------ --------------
LIABILITIES:
Payables -
Investment securities
purchased $ 1,580,652 $ 765,571 $ 377,025 $ 394,020 $ -
Fund shares
repurchased - 1,505,165 - - 273,416
Forward foreign
currency settlement
contracts, net - - - - -
Due to bank - - - - 637,962
Due to affiliates 74,308 87,793 28,005 93,178 140,316
Accrued expenses 18,404 31,227 17,585 18,536 19,298
Reserve for repatriation
and capital gains
taxes - - - - -
--------------- -------------- ------------------- ------------------ --------------
Total liabilities $ 1,673,364 $ 2,389,756 $ 422,615 $ 505,734 $ 1,070,992
--------------- -------------- ------------------- ------------------ --------------
NET ASSETS:
Paid-in capital $107,014,508 $129,689,384 $36,519,639 $134,149,982 $176,570,061
Accumulated net
investment income
(loss) 615,955 (100,057) 120,664 83,060 560,842
Accumulated net realized
gain (loss) on
investments and
foreign currency
transactions 3,857,372 4,900,204 (3,377,006) 2,021,835 12,331,585
Net unrealized gain
(loss) on:
Investments (net of
reserve for
repatriation and
capital gains taxes) 13,124,476 16,517,846 (858,396) 20,645,795 49,380,284
Other assets and
liabilities
denominated in
foreign currencies - - - - -
--------------- -------------- ------------------- ------------------ --------------
Total net assets $124,612,311 $151,007,377 $32,404,901 $156,900,672 $238,842,772
--------------- -------------- ------------------- ------------------ --------------
NET ASSET VALUE PER
SHARE:
(Unlimited number of
shares authorized)
Shares outstanding 7,430,315 6,736,589 2,442,681 7,201,168 10,732,368
Net asset value per
share $ 16.77 $ 22.42 $ 13.27 $ 21.79 $ 22.25
--------------- -------------- ------------------- ------------------ --------------
<CAPTION>
BALANCED
PORTFOLIO
<S> <C>
ASSETS:
Investment in
securities, at value
(cost $815,095,
$6,797,519,
$43,326,962,
$101,635,970,
$124,317,373,
$32,513,706,
$130,800,702,
$188,874,002, and
$67,037,292,
respectively) $ 72,601,337
Temporary cash
investments (at
amortized cost) -
Cash 273,544
Foreign currencies, at
value -
Receivables -
Investment securities
sold 486,780
Fund shares sold 110,474
Dividends, interest
and foreign taxes
withheld 573,504
Forward foreign
currency settlement
contracts, net --
Due from Pioneer
Investment
Management, Inc. --
Other 1,691
------------
Total assets $ 74,047,330
------------
LIABILITIES:
Payables -
Investment securities
purchased $ 1,083,794
Fund shares
repurchased -
Forward foreign
currency settlement
contracts, net -
Due to bank -
Due to affiliates 45,881
Accrued expenses 12,906
Reserve for repatriation
and capital gains
taxes -
------------
Total liabilities $ 1,142,581
------------
NET ASSETS:
Paid-in capital $ 70,511,907
Accumulated net
investment income
(loss) 50,113
Accumulated net realized
gain (loss) on
investments and
foreign currency
transactions (3,221,316)
Net unrealized gain
(loss) on:
Investments (net of
reserve for
repatriation and
capital gains taxes) 5,564,045
Other assets and
liabilities
denominated in
foreign currencies -
------------
Total net assets $ 72,904,749
------------
NET ASSET VALUE PER
SHARE:
(Unlimited number of
shares authorized)
Shares outstanding 4,982,628
Net asset value per
share $ 14.63
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 63
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
- ------------------------------------------------------------
BALANCE SHEETS 6 / 30 / 99 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SWISS FRANC AMERICA INCOME MONEY MARKET
BOND PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C>
ASSETS:
Investment in securities, at value
(cost $39,495,740, $30,436,561,
and $0, respectively) $35,363,357 $29,397,443 $ -
Temporary cash investments (at
amortized cost) 5,288,000 - 28,811,094
Cash 626 321,637 33,770
Receivables --
Fund shares sold 79,210 - -
Dividends, interest and foreign
taxes withheld 683,936 317,315 24,230
Other 434 425 42
--------------- --------------- -------------
Total assets $41,415,563 $30,036,820 $28,869,136
--------------- --------------- -------------
LIABILITIES:
Payables --
Investment securities purchased $ - $ - $ 1,000,000
Fund shares repurchased - 115,033 514,417
Forward foreign currency
portfolio contracts, net 175,711 - -
Due to affiliates 28,378 19,435 15,658
Accrued expenses 13,965 17,168 17,402
--------------- --------------- -------------
Total liabilities $ 218,054 $ 151,636 $ 1,547,477
--------------- --------------- -------------
NET ASSETS:
Paid-in capital $46,561,708 $30,886,099 $27,321,659
Accumulated undistributed net
investment income 450,538 - -
Accumulated net realized gain
(loss) on investments and
foreign currency transactions (1,461,329) 38,203 -
Net unrealized loss on:
Investments (4,132,383) (1,039,118) -
Other assets and liabilities
denonminated in foreign
currencies (221,025) - -
--------------- --------------- -------------
Total net assets $41,197,509 $29,885,184 $27,321,659
--------------- --------------- -------------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares
authorized)
Shares outstanding 3,519,598 3,064,981 27,321,659
Net asset value per share $ 11.71 $ 9.75 $ 1.00
--------------- --------------- -------------
</TABLE>
64 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
- ------------------------------------------------------------
STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
EMERGING MARKETS EUROPE INTERNATIONAL GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
6 / 30 / 99 6 / 30 / 99 6 / 30 / 99
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes
withheld of $359, $7,209, and
$55,172, respectively) $ 4,146 $ 78,798 $ 568,127
Interest (net of foreign taxes
withheld of $4, $0, and $37,
respectively) 47 13,744 58,077
---------------- ---------------- --------------------
Total investment income $ 4,193 $ 92,542 $ 626,204
EXPENSES:
Management fees $ 2,481 $ 24,453 $ 249,376
Transfer agent fees 432 487 500
Administrative fees 17,644 17,660 20,832
Custodian fees 4,626 24,352 25,787
Professional fees 6,511 6,018 8,688
Printing 2,896 1,846 2,720
Fees and expenses of nonaffiliated
trustees 355 355 227
Miscellaneous 1,543 529 369
---------------- ---------------- --------------------
Total expenses $ 36,488 $ 75,700 $ 308,499
Less management fees waived
and expenses assumed by
Pioneer Investment
Management, Inc. (32,204) (37,563) -
Less fees paid indirectly (508) (1,458) (349)
---------------- ---------------- --------------------
Net expenses $ 3,776 $ 36,679 $ 308,150
---------------- ---------------- --------------------
Net investment income $ 417 $ 55,863 $ 318,054
---------------- ---------------- --------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $ 23,033 $ 12,169 $(4,993,292)
Forward foreign currency
contracts and other assets and
liabilities denominated in
foreign currencies (64) (478) 66,281
---------------- ---------------- --------------------
$ 22,969 $ 11,691 $(4,927,011)
---------------- ---------------- --------------------
Change in net unrealized gain or
loss from:
Investments $139,558 $ (107,811) $ 7,838,380
Forward foreign currency
contracts and other assets and
liabilities denominated in
foreign currencies (188) (222) (6,411)
---------------- ---------------- --------------------
$139,370 $ (108,033) $ 7,831,969
---------------- ---------------- --------------------
Net gain (loss) on investments
and foreign currency
transactions $162,339 $ (96,342) $ 2,904,958
---------------- ---------------- --------------------
Net increase (decrease) in net
assets resulting from
operations $162,756 $ (40,479) $ 3,223,012
---------------- ---------------- --------------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 65
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
- ------------------------------------------------------------
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
CAPITAL GROWTH GROWTH SHARES REAL ESTATE GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
6 / 30 / 99 6 / 30 / 99 6 / 30 / 99
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of
foreign taxes withheld
of $1,905, $2,538,
$1,290, $8,516, $0,
$1,519, $0, $0, and
$0, respectively) $ 741,647 $ 178,602 $ 966,770
Interest (net of foreign
taxes withheld of $0,
$0, $0, $0, $0, $0,
$759, $0, and $0,
respectively) 132,879 168,681 15,270
---------------- ---------------- ------------------
Total investment
income $ 874,526 $ 347,283 $ 982,040
EXPENSES:
Management fees $ 362,974 $ 382,646 $ 164,690
Transfer agent fees 428 362 394
Administrative fees 18,784 18,784 18,455
Custodian fees 28,764 31,887 15,225
Professional fees 5,618 7,240 7,061
Printing 1,267 1,991 2,201
Fees and expenses of
nonaffiliated trustees 181 396 245
Miscellaneous 4,773 4,157 4,554
---------------- ---------------- ------------------
Total expenses $ 422,789 $ 447,463 $ 212,825
Less management
fees waived by
Pioneer Investment
Management, Inc. - - (17,188)
Less fees paid
indirectly (347) (212) (1,055)
---------------- ---------------- ------------------
Net expenses $ 422,442 $ 447,251 $ 194,582
---------------- ---------------- ------------------
Net investment
income (loss) $ 452,084 $ (99,968) $ 787,458
---------------- ---------------- ------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss)
from:
Investments $ 4,709,006 $ 5,266,628 $(3,376,720)
Forward foreign
currency contracts
and other assets and
liabilities
denominated in
foreign currencies - - -
---------------- ---------------- ------------------
$ 4,709,006 $ 5,266,628 $(3,376,720)
---------------- ---------------- ------------------
Change in net unrealized
gain or loss from:
Investments $12,303,927 $ 5,808,998 $ 4,106,313
Forward foreign
currency contracts
and other assets and
liabilities
denominated in
foreign currencies - - -
---------------- ---------------- ------------------
$12,303,927 $ 5,808,998 $ 4,106,313
---------------- ---------------- ------------------
Net gain (loss) on
investments and
foreign currency
transactions $17,012,933 $11,075,626 $ 729,593
---------------- ---------------- ------------------
Net increase
(decrease) in net
assets resulting
from operations $17,465,017 $10,975,658 $ 1,517,051
---------------- ---------------- ------------------
</TABLE>
66 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
- ------------------------------------------------------------
<TABLE>
<CAPTION>
AMERICA INCOME
GROWTH AND INCOME EQUITY-INCOME BALANCED SWISS FRANC BOND PORTFOLIO
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO SIX MONTHS
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED ENDED
6 / 30 / 99 6 / 30 / 99 6 / 30 / 99 6 / 30 / 99 6 / 30 / 99
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of
foreign taxes withheld
of $1,905, $2,538,
$1,290, $8,516, $0,
$1,519, $0, $0, and
$0, respectively) $ 889,188 $ 2,635,975 $ 325,211 $ - $ -
Interest (net of foreign
taxes withheld of $0,
$0, $0, $0, $0, $0,
$759, $0, and $0,
respectively) 98,832 119,351 1,136,766 876,503 943,710
----------------- ---------------- ---------------- ---------------- --------------
Total investment
income $ 988,020 $ 2,755,326 $1,461,977 $ 876,503 $ 943,710
EXPENSES:
Management fees $ 390,580 $ 698,922 $ 223,473 $ 135,040 $ 81,555
Transfer agent fees 370 587 404 330 356
Administrative fees 21,543 18,950 18,784 19,359 18,473
Custodian fees 22,439 20,983 14,275 17,800 10,571
Professional fees 7,995 7,340 5,915 7,533 6,586
Printing 2,819 2,983 2,395 2,529 2,670
Fees and expenses of
nonaffiliated trustees 256 355 420 257 263
Miscellaneous 4,233 9,256 3,851 4,427 3,776
----------------- ---------------- ---------------- ---------------- --------------
Total expenses $ 450,235 $ 759,376 $ 269,517 $ 187,275 $ 124,250
Less management
fees waived by
Pioneer Investment
Management, Inc. - - - - -
Less fees paid
indirectly (400) (598) (1,561) (1,546) (1,849)
----------------- ---------------- ---------------- ---------------- --------------
Net expenses $ 449,835 $ 758,778 $ 267,956 $ 185,729 $ 122,401
----------------- ---------------- ---------------- ---------------- --------------
Net investment
income (loss) $ 538,185 $ 1,996,548 $1,194,021 $ 690,774 $ 821,309
----------------- ---------------- ---------------- ---------------- --------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss)
from:
Investments $ 2,040,022 $12,460,086 $ (100,640) $ (217,578) $ 38,235
Forward foreign
currency contracts
and other assets and
liabilities
denominated in
foreign currencies - - - (1,007,302) -
----------------- ---------------- ---------------- ---------------- --------------
$ 2,040,022 $12,460,086 $ (100,640) $(1,224,880) $ 38,235
----------------- ---------------- ---------------- ---------------- --------------
Change in net unrealized
gain or loss from:
Investments $10,726,472 $ 2,063,319 $ 857,269 $(4,417,736) $(1,620,059)
Forward foreign
currency contracts
and other assets and
liabilities
denominated in
foreign currencies - - - (250,238) -
----------------- ---------------- ---------------- ---------------- --------------
$10,726,472 $ 2,063,319 $ 857,269 $(4,667,974) $(1,620,059)
----------------- ---------------- ---------------- ---------------- --------------
Net gain (loss) on
investments and
foreign currency
transactions $12,766,494 $14,523,405 $ 756,629 $(5,892,854) $(1,581,824)
----------------- ---------------- ---------------- ---------------- --------------
Net increase
(decrease) in net
assets resulting
from operations $13,304,679 $16,519,953 $1,950,650 $(5,202,080) $ (760,515)
----------------- ---------------- ---------------- ---------------- --------------
<CAPTION>
MONEY MARKET
PORTFOLIO
SIX MONTHS ENDED
6 / 30 / 99
<S> <C>
INVESTMENT INCOME:
Dividends (net of
foreign taxes withheld
of $1,905, $2,538,
$1,290, $8,516, $0,
$1,519, $0, $0, and
$0, respectively) $ -
Interest (net of foreign
taxes withheld of $0,
$0, $0, $0, $0, $0,
$759, $0, and $0,
respectively) 593,801
----------------
Total investment
income $593,801
EXPENSES:
Management fees $ 60,624
Transfer agent fees 388
Administrative fees 18,643
Custodian fees 10,932
Professional fees 9,312
Printing 2,194
Fees and expenses of
nonaffiliated trustees 248
Miscellaneous 3,887
----------------
Total expenses $106,228
Less management
fees waived by
Pioneer Investment
Management, Inc. (118)
Less fees paid
indirectly (332)
----------------
Net expenses $105,778
----------------
Net investment
income (loss) $488,023
----------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss)
from:
Investments $ -
Forward foreign
currency contracts
and other assets and
liabilities
denominated in
foreign currencies -
----------------
$ -
----------------
Change in net unrealized
gain or loss from:
Investments $ -
Forward foreign
currency contracts
and other assets and
liabilities
denominated in
foreign currencies -
----------------
$ -
----------------
Net gain (loss) on
investments and
foreign currency
transactions $ -
----------------
Net increase
(decrease) in net
assets resulting
from operations $488,023
----------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 67
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
- ------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
EMERGING MARKETS EUROPE
PORTFOLIO PORTFOLIO
SIX MONTHS SIX MONTHS
ENDED ENDED
6 / 30 / 99 10 / 30 / 98 TO 6 / 30 / 99 10 / 30 / 98 TO
(UNAUDITED) 12 / 31 / 98 (UNAUDITED) 12 / 31 / 98
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income
(loss) $ 417 $ (11) $ 55,863 $ 50
Net realized gain (loss)
on investments and
foreign currency
transactions 22,969 3 11,691 4,693
Change in net unrealized
gain or loss on
investments and other
assets and liabilities
denominated in foreign
currencies 139,370 5,802 (108,033 ) 66,041
----------- --------------- ----------- ---------------
Net increase
(decrease) in net
assets resulting
from operations $ 162,756 $ 5,794 $ (40,479 ) $ 70,784
----------- --------------- ----------- ---------------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income $ - $ - $ - $ -
Net realized gain - - (4,510 ) -
----------- --------------- ----------- ---------------
Total distributions
to shareholders $ - $ - $ (4,510 ) $ -
----------- --------------- ----------- ---------------
FROM FUND SHARE
TRANSACTIONS:
Net proceeds from sale of
shares $ 915,713 $ 27,691 $6,262,477 $1,449,191
Reinvestment of
distributions - - 4,510 -
Cost of shares
repurchased (154,029 ) (712) (404,016 ) (89)
----------- --------------- ----------- ---------------
Net increase
(decrease) in net
assets resulting
from fund share
transactions $ 761,684 $ 26,979 $5,862,971 $1,449,102
----------- --------------- ----------- ---------------
Net increase
(decrease) in net
assets $ 924,440 $ 32,773 $5,817,982 $1,519,886
NET ASSETS:
Beginning of period 132,773 100,000 1,619,886 100,000
----------- --------------- ----------- ---------------
End of period $1,057,213 $132,773 $7,437,868 $1,619,886
----------- --------------- ----------- ---------------
Accumulated net
investment income
(loss), end of period $ 415 $ (2) $ 56,078 $ 215
----------- --------------- ----------- ---------------
CAPITAL SHARE ACTIVITY:
Shares sold by
subscription 73,986 2,726 599,526 142,843
Shares issued for
distributions reinvested - - 432 -
Shares redeemed (11,793 ) (68) (38,851 ) (9)
----------- --------------- ----------- ---------------
Net increase (decrease)
in fund shares 62,193 2,658 561,107 142,834
----------- --------------- ----------- ---------------
</TABLE>
68 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
- ------------------------------------------------------------
<TABLE>
<CAPTION>
REAL ESTATE
INTERNATIONAL GROWTH CAPITAL GROWTH GROWTH SHARES GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
6 / 30 / 99 YEAR ENDED 6 / 30 / 99 YEAR ENDED 6 / 30 / 99 YEAR ENDED 6 / 30 / 99
(UNAUDITED) 12 / 31 / 98 (UNAUDITED) 12 / 31 / 98 (UNAUDITED) 12 / 31 / 98 (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income
(loss) $ 318,054 $ 543,956 $ 452,084 $ 1,051,109 $ (99,968) $ 32,441 $ 787,458
Net realized gain (loss)
on investments and
foreign currency
transactions (4,927,011 ) (4,898,778 ) 4,709,006 (850,768) 5,266,628 (166,314 ) (3,376,720)
Change in net unrealized
gain or loss on
investments and other
assets and liabilities
denominated in foreign
currencies 7,831,969 1,646,390 12,303,927 (6,899,238) 5,808,998 10,684,079 4,106,313
----------- ------------ ------------ ------------ ------------ ----------- -----------
Net increase
(decrease) in net
assets resulting
from operations $3,223,012 $(2,708,432 ) $ 17,465,017 $ (6,698,897) $ 10,975,658 $10,550,206 $1,517,051
----------- ------------ ------------ ------------ ------------ ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income $ (653,271 ) $ (902,674 ) $ (973,218) $ (732,912) $ (32,449) $ (1,864 ) $ (762,561)
Net realized gain - (4,137,337 ) - (7,620,510) (196,043) - (296,343)
----------- ------------ ------------ ------------ ------------ ----------- -----------
Total distributions
to shareholders $ (653,271 ) $(5,040,011 ) $ (973,218) $ (8,353,422) $ (228,492) $ (1,864 ) $(1,058,904)
----------- ------------ ------------ ------------ ------------ ----------- -----------
FROM FUND SHARE
TRANSACTIONS:
Net proceeds from sale of
shares $3,704,163 $17,420,739 $ 7,560,888 $ 30,338,387 $ 57,461,694 $77,029,470 $3,216,958
Reinvestment of
distributions 653,271 5,040,011 973,218 8,353,422 228,492 1,864 1,058,904
Cost of shares
repurchased (7,033,801 ) (12,599,547 ) (13,773,092) (15,756,228) (3,100,253) (6,555,882 ) (7,908,424)
----------- ------------ ------------ ------------ ------------ ----------- -----------
Net increase
(decrease) in net
assets resulting
from fund share
transactions $(2,676,367) $ 9,861,203 $ (5,238,986) $ 22,935,581 $ 54,589,933 $70,475,452 $(3,632,562)
----------- ------------ ------------ ------------ ------------ ----------- -----------
Net increase
(decrease) in net
assets $ (106,626 ) $ 2,112,760 $ 11,252,813 $ 7,883,262 $ 65,337,099 $81,023,794 $(3,174,415)
NET ASSETS:
Beginning of period 51,525,039 49,412,279 113,359,498 105,476,236 85,670,278 4,646,484 35,579,316
----------- ------------ ------------ ------------ ------------ ----------- -----------
End of period $51,418,413 $51,525,039 $124,612,311 $113,359,498 $151,007,377 $85,670,278 $32,404,901
----------- ------------ ------------ ------------ ------------ ----------- -----------
Accumulated net
investment income
(loss), end of period $ 162,773 $ 497,990 $ 615,955 $ 1,137,089 $ (100,057) $ 32,360 $ 120,664
----------- ------------ ------------ ------------ ------------ ----------- -----------
CAPITAL SHARE ACTIVITY:
Shares sold by
subscription 340,933 1,390,758 477,347 1,855,115 2,657,538 4,273,575 246,029
Shares issued for
distributions reinvested 57,506 445,231 58,590 515,961 10,381 99 83,320
Shares redeemed (653,645 ) (1,099,900 ) (926,642) (1,082,203) (142,548) (365,376 ) (609,156)
----------- ------------ ------------ ------------ ------------ ----------- -----------
Net increase (decrease)
in fund shares (255,206 ) 736,089 (390,705) 1,288,873 2,525,371 3,908,298 (279,807)
----------- ------------ ------------ ------------ ------------ ----------- -----------
<CAPTION>
YEAR ENDED
12 / 31 / 98
<S> <C>
FROM OPERATIONS:
Net investment income
(loss) $1,628,898
Net realized gain (loss)
on investments and
foreign currency
transactions 438,016
Change in net unrealized
gain or loss on
investments and other
assets and liabilities
denominated in foreign
currencies (10,520,943)
-----------
Net increase
(decrease) in net
assets resulting
from operations $(8,454,029)
-----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income $(1,518,501)
Net realized gain (402,383 )
-----------
Total distributions
to shareholders $(1,920,884)
-----------
FROM FUND SHARE
TRANSACTIONS:
Net proceeds from sale of
shares $16,784,581
Reinvestment of
distributions 1,920,884
Cost of shares
repurchased (14,937,948)
-----------
Net increase
(decrease) in net
assets resulting
from fund share
transactions $3,767,517
-----------
Net increase
(decrease) in net
assets $(6,607,396)
NET ASSETS:
Beginning of period 42,186,712
-----------
End of period $35,579,316
-----------
Accumulated net
investment income
(loss), end of period $ 95,767
-----------
CAPITAL SHARE ACTIVITY:
Shares sold by
subscription 1,106,588
Shares issued for
distributions reinvested 134,409
Shares redeemed (1,015,334 )
-----------
Net increase (decrease)
in fund shares 225,663
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 69
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
- ------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
GROWTH AND INCOME EQUITY-INCOME
PORTFOLIO PORTFOLIO
SIX MONTHS SIX MONTHS
ENDED ENDED
6 / 30 / 99 YEAR ENDED 6 / 30 / 99 YEAR ENDED
(UNAUDITED) 12 / 31 / 98 (UNAUDITED) 12 / 31 / 98
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 538,185 $ 366,288 $ 1,996,548 $ 3,336,915
Net realized gain (loss)
on investments and
foreign currency
transactions 2,040,022 148,757 12,460,086 6,127,770
Change in net unrealized
gain or loss on
investments and other
assets and liabilities
denominated in foreign
currencies 10,726,472 9,848,566 2,063,319 22,790,102
------------ ----------- ------------ ------------
Net increase
(decrease) in net
assets resulting
from operations $ 13,304,679 $10,363,611 $ 16,519,953 $ 32,254,787
------------ ----------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income $ (457,309) $ (364,104 ) $ (1,834,231) $ (3,318,604)
Net realized gain (166,944) - (6,090,521) (1,835,100)
------------ ----------- ------------ ------------
Total distributions
to shareholders $ (624,253) $ (364,104 ) $ (7,924,752) $ (5,153,704)
------------ ----------- ------------ ------------
FROM FUND SHARE
TRANSACTIONS:
Net proceeds from sale of
shares $ 54,955,313 $76,560,984 $ 23,554,259 $ 59,078,823
Reinvestment of
distributions 624,253 364,104 7,924,752 5,153,704
Cost of shares
repurchased (1,219,417) (1,557,989 ) (5,207,656) (11,570,695)
------------ ----------- ------------ ------------
Net increase in net
assets resulting
from fund share
transactions $ 54,360,149 $75,367,099 $ 26,271,355 $ 52,661,832
------------ ----------- ------------ ------------
Net increase in net
assets $ 67,040,575 $85,366,606 $ 34,866,556 $ 79,762,915
NET ASSETS:
Beginning of period 89,860,097 4,493,491 203,976,216 124,213,301
------------ ----------- ------------ ------------
End of period $156,900,672 $89,860,097 $238,842,772 $203,976,216
------------ ----------- ------------ ------------
Accumulated net
investment income
(loss), end of period $ 83,060 $ 2,184 $ 560,842 $ 398,525
------------ ----------- ------------ ------------
CAPITAL SHARE ACTIVITY:
Shares sold by
subscription 2,682,750 4,333,802 1,092,726 3,004,720
Shares issued for
distributions reinvested 30,021 20,228 367,597 257,547
Shares redeemed (58,329) (91,682 ) (240,714) (595,292)
------------ ----------- ------------ ------------
Net increase (decrease)
in fund shares 2,654,442 4,262,348 1,219,609 2,666,975
------------ ----------- ------------ ------------
</TABLE>
70 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
- ------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED SWISS FRANC BOND AMERICA INCOME MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
6 / 30 / 99 YEAR ENDED 6 / 30 / 99 YEAR ENDED 6 / 30 / 99 YEAR ENDED 6 / 30 / 99 YEAR ENDED
(UNAUDITED) 12 / 31 / 98 (UNAUDITED) 12 / 31 / 98 (UNAUDITED) 12 / 31 / 98 (UNAUDITED) 12 / 31 / 98
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $1,194,021 $1,639,851 $ 690,774 $ 923,374 $ 821,309 $1,176,895 $ 488,023 $ 871,632
Net realized gain (loss)
on investments and
foreign currency
transactions (100,640 ) (3,114,995 ) (1,224,880 ) (146,396 ) 38,235 93,570 - -
Change in net unrealized
gain or loss on
investments and other
assets and liabilities
denominated in foreign
currencies 857,269 2,423,530 (4,667,974 ) 1,877,261 (1,620,059 ) 356,054 - -
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
Net increase
(decrease) in net
assets resulting
from operations $1,950,650 $ 948,386 $(5,202,080) $2,654,239 $ (760,515 ) $1,626,519 $ 488,023 $ 871,632
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income $(1,165,277) $(1,636,233) $ - $(1,234,457) $ (821,309 ) $(1,176,895) $ (488,023 ) $ (871,632 )
Net realized gain - (1,935,738 ) - - (26,571 ) - - -
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
Total distributions
to shareholders $(1,165,277) $(3,571,971) $ - $(1,234,457) $ (847,880 ) $(1,176,895) $ (488,023 ) $ (871,632 )
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
FROM FUND SHARE
TRANSACTIONS:
Net proceeds from sale of
shares $7,361,027 $28,239,062 $11,527,760 $23,761,111 $8,661,291 $25,038,916 $22,721,594 $47,281,170
Reinvestment of
distributions 1,165,277 3,571,971 - 1,234,457 847,880 1,176,895 488,023 871,632
Cost of shares
repurchased (3,337,097 ) (6,264,939 ) (6,301,940 ) (7,329,504 ) (6,837,343 ) (12,362,571) (17,384,823 ) (40,395,275 )
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
Net increase in net
assets resulting
from fund share
transactions $5,189,207 $25,546,094 $5,225,820 $17,666,064 $2,671,828 $13,853,240 $ 5,824,794 $ 7,757,527
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
Net increase in net
assets $5,974,580 $22,922,509 $ 23,740 $19,085,846 $1,063,433 $14,302,864 $ 5,824,794 $ 7,757,527
NET ASSETS:
Beginning of period 66,930,169 44,007,660 41,173,769 22,087,923 28,821,751 14,518,887 21,496,865 13,739,338
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
End of period $72,904,749 $66,930,169 $41,197,509 $41,173,769 $29,885,184 $28,821,751 $27,321,659 $21,496,865
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
Accumulated net
investment income
(loss), end of period $ 50,113 $ 21,369 $ 450,538 $ (240,236 ) $ - $ - $ - $ -
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
CAPITAL SHARE ACTIVITY:
Shares sold by
subscription 506,123 1,876,280 909,444 1,826,041 860,292 2,456,812 22,721,594 47,281,170
Shares issued for
distributions reinvested 81,456 237,908 - 94,026 84,947 115,530 488,023 871,632
Shares redeemed (229,768 ) (425,293 ) (504,280 ) (573,102 ) (682,320 ) (1,216,873 ) (17,384,823 ) (40,395,275 )
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
Net increase in fund
shares 357,811 1,688,895 405,164 1,346,965 262,919 1,355,469 5,824,794 7,757,527
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 71
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
- ------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6 / 30 / 99 (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
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 investment company. The Trust consists of twelve separate portfolios
(collectively, the Portfolios): Emerging Markets Portfolio, Europe Portfolio,
International Growth Portfolio, Capital Growth Portfolio, Growth Shares
Portfolio, Real Estate Growth Portfolio, Growth and Income Portfolio,
Equity-Income Portfolio, Balanced Portfolio, Swiss Franc Bond Portfolio, America
Income Portfolio, and Money Market Portfolio. Shares of each Portfolio may only
be purchased by insurance companies for the purpose of funding variable annuity
or variable life insurance contracts.
The investment objective of Emerging Markets Portfolio, Europe Portfolio and
International Growth Portfolio is to seek long-term capital growth. Capital
Growth Portfolio and Growth Shares Portfolio seek capital appreciation. Real
Estate Growth Portfolio pursues long-term capital growth, with income as a
secondary objective. Growth and Income Portfolio seeks reasonable income and
growth of capital. Equity-Income Portfolio seeks current income and long-term
capital growth. Balanced Portfolio's investment objectives are capital growth
and current income. Swiss Franc Bond Portfolio invests to approximate the
performance of the Swiss franc relative to the U.S. dollar while earning
reasonable income. America Income Portfolio seeks a high level of current income
as consistent with preservation of capital. Money Market Portfolio invests for
current income consistent with preserving capital and providing liquidity.
The Trust's financial statements have been prepared in conformity with generally
accepted accounting principles that require the management of the Trust 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 Trust, which are in conformity with those
generally accepted in the investment company industry:
A. SECURITY VALUATION
Security transactions are recorded on trade date. Net asset values for the
portfolios are 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 values, 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.
Fixed income securities are valued at prices supplied by independent pricing
services, which consider such factors as Treasury spreads, yields, maturities
and ratings, and valuations may be supplemented by dealers and other sources,
as required. Market discount and premium are accreted and amortized daily on a
straight-line basis.
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, except that
certain dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Portfolio is informed of the ex-dividend
data in the exercise of reasonable diligence. Income is recorded on the
accrual basis, net of unrecoverable foreign taxes withheld at the applicable
country rates. Temporary cash investments are valued at amortized cost.
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 that have
the highest cost and also qualify for long-term capital gain or loss treatment
for tax purposes.
Because the Real Estate Growth Portfolio may invest a substantial portion of
its assets in Real Estate Investment Trusts (REITs), the Portfolio 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 shareholders, and certain REITs
have self-liquidation provisions by which mortgages held may be paid in full
and distributions of capital returns may be made at any time. In addition, the
performance of a REIT may be affected by its failure to qualify for tax-free
pass-through of income under the Internal Revenue Code or its failure to
maintain exemption from registration under the Investment Company Act of 1940.
The Emerging Markets and International Growth Portfolios' investments in
emerging markets or countries with limited or developing markets may subject
the Portfolios to a greater degree of risk than in a developed market. Risks
associated with these developing markets include political, social or economic
factors and may affect the price of the Portfolios' investments and income
generated by these investments, as well as the Portfolios' ability to
repatriate such amounts. In addition, delays are
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PIONEER VARIABLE CONTRACTS TRUST
- ------------------------------------------------------------
common in registering transfers of securities in certain foreign countries,
such as India, and the Portfolios may be unable to sell portfolio securities
until the registration process is completed.
B. FOREIGN CURRENCY TRANSLATION
The books and records of the Portfolios are maintained in U.S. dollars.
Amounts denominated in foreign currencies are translated into U.S. dollars
using current exchange rates.
Net realized gains and losses on foreign currency transactions 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 actually received. Further, the
effects of changes in foreign currency exchange rates on investments 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 investments.
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
exchange 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 (see Note 7).
D. 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 its
shareholders. Therefore, no federal income tax provision is required.
In addition to the requirements of the Internal Revenue Code, the Portfolios
may also be required to pay local taxes on the recognition of capital gains
and/or the repatriation of foreign currencies in certain countries. During the
six months ended June 30, 1999, Emerging Markets Portfolio paid $935 in taxes
related to capital gains.
In determining the daily net asset value, the Portfolios estimate the reserve
for such taxes, if any, associated with investments in certain countries. The
estimated reserve for capital gains is based on the net realized and
unrealized appreciation on certain portfolio securities, the holding period of
such securities and the related tax rates, tax loss carry-forward (if
applicable) and other such factors. As of June 30, 1999, Emerging Markets
Portfolio had a reserve of $1,754 related to capital gains. The estimated
reserve for repatriation of foreign currencies is based on principal balances
and/or unrealized appreciation of applicable securities, the holding period of
such investments and the related tax rates and other such factors. As of June
30, 1999, Emerging Markets Portfolio and International Growth Portfolio had
reserves of $1,605 and $61,904, respectively, related to taxes on the
repatriation of foreign currencies.
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 paid-in capital,
depending on the type of book/tax differences that may exist.
A portion of the dividend income recorded by the Real Estate Growth Portfolio
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 Trust as a reduction of the cost basis
of the securities held.
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PIONEER VARIABLE CONTRACTS TRUST
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NOTES TO FINANCIAL STATEMENTS 6 / 30 / 99 (UNAUDITED) (CONTINUED)
Capital loss carryovers are available to offset future realized capital gains.
At December 31, 1998, certain
Portfolios had capital loss carryovers as follows:
<TABLE>
<CAPTION>
YEAR OF
PORTFOLIO AMOUNT EXPIRATION
<S> <C> <C>
International Growth Portfolio $5,379,184 2006
Capital Growth Portfolio 597,627 2006
Balanced Portfolio 3,120,676 2006
Swiss Franc Bond Portfolio 159,801 2005/2006
</TABLE>
E. FUND SHARES
The Portfolios record sales and repurchases of their fund shares on trade
date. Net losses, if any, as a result of cancellations are absorbed by Pioneer
Funds Distributor, Inc. (PFD), the principal underwriter for the Trust and an
indirect subsidiary of The Pioneer Group, Inc. (PGI). 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 a
monthly basis. Short-term capital gain distributions, if any, may be declared
with the daily dividends. Dividends and distributions to shareholders are
recorded on the ex-dividend date.
F. REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Portfolios, the
value of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in excess
of the value of the repurchase agreement at the time of purchase. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian, or subcustodians. The Trust's
investment adviser, Pioneer Investment Management, Inc. (PIM), is responsible
for determining that the value of the collateral remains at least equal to the
repurchase price.
2. MANAGEMENT AGREEMENT
PIM manages the Portfolios, and is a wholly owned subsidiary of PGI. Management
fees are calculated daily at
the following annual rates:
<TABLE>
<CAPTION>
MANAGEMENT
FEE AS A
PERCENTAGE
OF
EACH
PORTFOLIO'S
AVERAGE
DAILY
NET
PORTFOLIO ASSETS
<S> <C>
Emerging Markets Portfolio 1.15%
Europe Portfolio 1.00%
International Growth Portfolio 1.00%
Capital Growth Portfolio 0.65%
Growth Shares Portfolio 0.65%
Real Estate Growth Portfolio 1.00%
Growth and Income Portfolio 0.65%
Equity-Income Portfolio 0.65%
Balanced Portfolio 0.65%
Swiss Franc Bond Portfolio 0.65%
America Income Portfolio 0.55%
Money Market Portfolio 0.50%
</TABLE>
PIM has appointed Boston Financial Securities, Inc. (BFS) as Real Estate Growth
Portfolio's subadviser. As compensation for its subadvisory services, PIM pays
BFS a management fee at the annual rate of 0.30% of the Portfolio's average
daily net assets.
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PIONEER VARIABLE CONTRACTS TRUST
- ------------------------------------------------------------
PIM has agreed not to impose a portion of its management fees and to assume
other operating expenses for certain Portfolios to the extent necessary to limit
expenses of each Portfolio to the following percentage of its average daily net
assets:
<TABLE>
<CAPTION>
EXPENSE
LIMITATION
AS A
PERCENTAGE
OF EACH
PORTFOLIO'S
AVERAGE
DAILY
NET
PORTFOLIO ASSETS
<S> <C>
Emerging Markets Portfolio 1.75%
Europe Portfolio 1.50%
International Growth Portfolio 1.50%
Growth Shares Portfolio 1.25%
Real Estate Growth Portfolio 1.25%
Growth and Income Portfolio 1.25%
Swiss Franc Bond Portfolio 1.25%
America Income Portfolio 1.25%
Money Market Portfolio 1.00%
</TABLE>
Effective April 1, 1999, PIM has agreed not to impose a portion of its
management fee for Real Estate Growth Portfolio to the extent necessary to
reduce the fee from 1.00% to 0.80% of the Portfolio's average daily net assets.
This agreement is voluntary and temporary and may be revised or terminated at
any time.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Portfolios. At June 30, 1999, the following amounts
were payable to PIM related to management fees, administrative and certain other
services:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT
<S> <C>
International Growth Portfolio $50,277
Capital Growth Portfolio 74,265
Growth Shares Portfolio 87,667
Real Estate Growth Portfolio 27,930
Growth and Income Portfolio 93,121
Equity-Income Portfolio 140,053
Balanced Portfolio 45,798
Swiss Franc Bond Portfolio 28,376
America Income Portfolio 19,389
Money Market Portfolio 15,582
</TABLE>
3. TRANSFER AGENT
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer agent
and shareholder services to the Trust at negotiated rates. At June 30, 1999 the
following transfer agent fees payable to PSC were included in due to affiliates:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT
<S> <C>
Emerging Markets Portfolio $70
Europe Portfolio 2
International Growth Portfolio 191
Capital Growth Portfolio 43
Growth Shares Portfolio 126
Real Estate Growth Portfolio 75
Growth and Income Portfolio 57
Equity-Income Portfolio 263
Balanced Portfolio 83
Swiss Franc Bond Portfolio 2
America Income Portfolio 46
Money Market Portfolio 76
</TABLE>
75
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PIONEER VARIABLE CONTRACTS TRUST
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NOTES TO FINANCIAL STATEMENTS 6 / 30 / 99 (UNAUDITED) (CONTINUED)
4. EXPENSE REDUCTIONS
The Trust has entered into certain expense offset arrangements resulting in a
reduction in the Portfolios' total expenses. For the six months ended June 30,
1999, the Portfolios' expenses were reduced under such arrangements as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT
<S> <C>
Emerging Markets Portfolio $508
Europe Portfolio 1,458
International Growth Portfolio 349
Capital Growth Portfolio 347
Growth Shares Portfolio 212
Real Estate Growth Portfolio 1,055
Growth and Income Portfolio 400
Equity-Income Portfolio 598
Balanced Portfolio 1,561
Swiss Franc Bond Portfolio 1,546
America Income Portfolio 1,849
Money Market Portfolio 332
</TABLE>
5. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION
At June 30, 1999, the Portfolios' aggregate unrealized appreciation and
depreciation based on cost for federal
income tax purposes was as follows:
<TABLE>
<CAPTION>
UNREALIZED UNREALIZED NET APPRECIATION /
PORTFOLIO TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
<S> <C> <C> <C> <C>
Emerging Markets Porfolio $ 817,113 $ 167,246 $ (20,545) $ 146,701
Europe Porfolio 7,297,519 386,627 (428,398) (41,771)
International Growth Portfolio 45,901,664 8,109,141 (2,445,106) 5,664,035
Capital Growth Portfolio 110,267,817 18,042,264 (5,643,635) 12,398,629
Growth Shares Portfolio 136,935,713 19,286,356 (2,963,850) 16,322,506
Real Estate Growth Portfolio 33,235,411 2,051,516 (2,981,617) (930,101)
Growth and Income Portfolio 136,110,702 23,476,861 (2,831,066) 20,645,795
Equity-Income Portfolio 188,874,002 52,436,162 (3,055,878) 49,380,284
Balanced Portfolio 67,037,292 6,961,030 (1,396,985) 5,564,045
Swiss Franc Bond Portfolio 44,783,740 - (4,132,383) (4,132,383)
America Income Portfolio 30,474,124 8,637 (1,085,318) (1,076,681)
</TABLE>
6. PORTFOLIO TRANSACTIONS
The cost of purchases and the proceeds from sales of investments other than U.S.
Government obligations and temporary cash investments for the six months ended
June 30, 1999 were as follows:
<TABLE>
<CAPTION>
PORTFOLIO PURCHASES SALES
<S> <C> <C>
Emerging Markets Portfolio $ 953,596 $ 279,343
Europe Portfolio 6,330,784 1,004,394
International Growth Portfolio 30,143,435 34,278,073
Capital Growth Portfolio 46,548,631 53,047,092
Growth Shares Portfolio 71,144,064 24,187,511
Real Estate Growth Portfolio 8,660,792 11,461,074
Growth and Income Portfolio 56,843,935 6,903,735
Equity-Income Portfolio 54,641,867 33,058,606
Balanced Portfolio 13,294,458 12,734,781
Swiss Franc Bond Portfolio 8,271,578 853,831
</TABLE>
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PIONEER VARIABLE CONTRACTS TRUST
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The cost of purchases and the proceeds from sales of long-term U.S. Government
obligations for the six months ended
June 30, 1999 were as follows:
<TABLE>
<CAPTION>
PORTFOLIO PURCHASES SALES
<S> <C> <C>
Balanced Portfolio $13,285,650 $4,603,510
America Income Portfolio 10,133,313 6,978,319
</TABLE>
7. FORWARD FOREIGN CURRENCY CONTRACTS
At June 30, 1999, certain Portfolios had entered into various contracts that
obligate the Portfolios to deliver currencies at specified future dates. At the
maturity of a contact, the Portfolios must make delivery of the foreign
currency. Alternatively, prior to the settlement date of a portfolio hedge, the
Portfolio may close out such contracts by entering into an offsetting hedge
contract.
At June 30, 1999, the Swiss Franc Bond Portfolio's open portfolio hedges were as
follows:
<TABLE>
<CAPTION>
NET
CONTRACTS TO IN EXCHANGE SETTLEMENT UNREALIZED
CURRENCY RECEIVE FOR DATE VALUE LOSS
<S> <C> <C> <C> <C> <C>
CHF 11,800,000 $7,764,137 7/1/99 $ 7,588,426 $(175,711)
</TABLE>
Outstanding forward currency settlement contracts were as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET RECEIVABLE /
PORTFOLIO RECEIVABLE PAYABLE (PAYABLE)
<S> <C> <C> <C>
Emerging Markets Portfolio $ 9,148 $ 9,246 $ (98)
Europe Portfolio 79,315 79,112 203
International Growth Portfolio 259,129 259,808 (679)
</TABLE>
77
<PAGE>
PIONEER VISIONSM
[LOGO]
PIONEER VISION 2SM
PIONEER C-VISIONSM
VARIABLE ANNUITY
PIONEER VARIABLE CONTRACTS TRUST
OFFICERS
John F. Cogan, Jr., CHAIRMAN AND PRESIDENT
David D. Tripple, EXECUTIVE VICE PRESIDENT
Stephen G. Kasnet, VICE PRESIDENT
Eric W. Reckard, TREASURER
Joseph P. Barri, SECRETARY
TRUSTEES
John F. Cogan, Jr.
Richard H. Egdahl, M.D.
Marguerite A. Piret
David D. Tripple
Stephen K. West
INVESTMENT ADVISER
Pioneer Investment Management, Inc.
CUSTODIAN
Brown Brothers Harriman & Co.
LEGAL COUNSEL
Hale and Dorr LLP
ISSUER
Pioneer Vision and Pioneer Vision 2: Allmerica Financial Life Insurance and
Annuity Company, Contract Form A3025-96 In New York and Hawaii, issued by First
Allmerica Financial Life Insurance Company, Contract Form A3025-96 GRC
Pioneer C-Vision: First Allmerica Financial Life Insurance Company, Contract
Form A3027-98
Presently not approved in New York and Hawaii
GENERAL DISTRIBUTOR
Allmerica Investments, Inc.
440 Lincoln Street
Worcester, MA 01653
This report must be preceded or accompanied by a prospectus for Pioneer Vision
and / or Pioneer Vision 2 Variable Annuity and / or Pioneer C-Vision, which
includes more information about charges and expenses. Please read the prospectus
carefully before you invest or send money.
0899-6834
