January 22, 1999
PIONEER VARIABLE CONTRACTS TRUST
SUPPLEMENT TO PROSPECTUS
DATED MAY 1, 1998
(SUPERSEDES SUPPLEMENT DATED DECEMBER 28, 1998)
The following information supplements or replaces the corresponding section in
the Prospectus. Please consult the Prospectus for the full text of the revised
section.
INVESTMENT OBJECTIVES AND POLICIES
The Investment Company Act of 1940 (the "1940 Act") requires that the Fund
segregate assets in connection with certain types of transactions. If the Fund
enters into a transaction requiring segregation the custodian or Pioneer
Investment Management, Inc. ("Pioneer Investments") will segregate liquid assets
in an amount required to comply with the 1940 Act. Such segregated assets will
be valued at market daily. If the aggregate value of such segregated assets
declines below the aggregate value required by the 1940 Act, additional liquid
assets will be segregated.
BALANCED PORTFOLIO. The second and third sentences of the second paragraph are
replaced by the following:
Normally, Portfolio assets allocated to bonds (35% to 65% of total assets) will
be invested in (1) investment grade debt securities (those rated "BBB" or higher
by Standard & Poor's Ratings Group or the equivalent by other ratings agencies),
(2) commercial paper of comparable quality and (3) U.S. Government Securities,
GNMA Certificates and CMOs. No more than 10% of the Portfolio's total assets may
be invested in below investment grade debt securities.
MANAGEMENT OF THE FUND
Mr. Russ and Mr. Taubes are jointly responsible for overseeing Pioneer
Investments' U.S. and global fixed income team. Mr. Russ is a senior vice
president of Pioneer Investments. He joined Pioneer Investments in 1983 and has
been an investment professional since 1962. Mr. Taubes joined Pioneer
Investments as a senior vice president in September 1998 and has been an
investment professional since 1986. Prior to joining Pioneer Investments, Mr.
Taubes had served since 1991 as a senior vice president and senior portfolio
manager for several Putnam institutional accounts and mutual funds.
AMERICA INCOME PORTFOLIO. Day-to-day management of the Portfolio is the
responsibility of a team of fixed income portfolio managers and analysts
supervised by Sherman B. Russ and Kenneth J. Taubes.
INTERNATIONAL GROWTH PORTFOLIO. Day-to-day management of the Fund is the
responsibility of Pavlos M. Alexandrakis, a senior vice president of Pioneer
Investments. Mr. Alexandrakis joined Pioneer Investments in 1998 and has been an
investment professional since 1984. Prior to joining Pioneer Investments, Mr.
Alexandrakis was a portfolio manager for Salomon Smith Barney from 1995 to 1998
and a portfolio manager for Lazard Freres Asset Management from 1990 to 1994.
Mr. Alexandrakis is assisted by a team of analysts which focuses on non-U.S.
companies. This team provides research for the fund and other Pioneer mutual
funds with similar investment objectives and styles. Members of the team meet
regularly to discuss holdings, prospective investments and portfolio
composition.
0199-6157
(C) Pioneer Funds Distributor, Inc.
