<PAGE>
[PIONEER LOGO]
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
Strategic Income Portfolio
Swiss Franc Bond Portfolio
American Income Portfolio
Money Market Portfolio
ANNUAL REPORT
December 31, 1999
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
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Table of Contents
<TABLE>
<S> <C>
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
Strategic Income Portfolio
Portfolio and Performance Update 20
Portfolio Management Discussion 21
Swiss Franc Bond Portfolio
Portfolio and Performance Update 22
Portfolio Management Discussion 23
America Income Portfolio
Portfolio and Performance Update 24
Portfolio Management Discussion 25
Money Market Portfolio
Portfolio Management Discussion 26
Schedules of Investments
Emerging Markets Portfolio 27
Europe Portfolio 31
International Growth Portfolio 34
Capital Growth Portfolio 37
Growth Shares Portfolio 40
Real Estate Growth Portfolio 41
Growth and Income Portfolio 42
Equity-Income Portfolio 45
Balanced Portfolio 48
Strategic Income Portfolio 52
Swiss Franc Bond Portfolio 55
America Income Portfolio 57
Money Market Portfolio 58
Financial Statements 59
Notes to Financial Statements 76
Report of Independent Public Accountants 83
</TABLE>
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
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LETTER FROM THE CHAIRMAN 12/31/99
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Dear Contract Owner,
In an ever-changing investment environment, it can sometimes be difficult to be
disciplined enough to adhere to your investment goals. We are bombarded every
day with information and advice from a variety of sources. Magazine and
newspaper headlines create a frenzy by shouting - "Top 10 stocks for the year
2000" - sending many investors scrambling to adjust their holdings. But as
history often shows us, yesterday's winners are in no way tomorrow's sure thing.
We know it's challenging to digest all this information. But no one can know
with absolute certainty which stocks or bonds will have good performance. It is
important to keep sight of your own investment goals and to stick to them.
Jumping from one investment to another based upon the latest hot trend may not
help you reach your financial goals. We think a well-reasoned investment plan
will.
The first few months of the year are a practical time to take a step back to
revisit your investment goals and make appropriate adjustments in your personal
portfolio. Scheduling a review session with your financial professional is a
good starting point. A professional acquainted with your individual
circumstances can help you to distill information, examine your current strategy
and make informed decisions that can satisfy your long-term investment needs.
Thank you for your continued support. We appreciate the opportunity to serve
your investment needs.
Respectfully,
/s/ John F. Cogan, Jr.
- ----------------------
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
Emerging Markets Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 12/31/99
- --------------------------------------------------------------------------------
Portfolio Diversification
(As a percentage of total investment portfolio)
[PIE CHART]
International Common Stocks 66.9%
Depositary Receipts for International Stocks 29.6%
U.S. Common Stocks 1.9%
International Preferred Stocks 1.1%
Warrants/Rights 0.5%
[END PIE CHART]
Geographic Distribution
(As a percentage of equity holdings)
[PIE CHART]
Asia 60%
Latin America 20%
Israel 9%
Europe 6%
Africa 4%
Other 1%
[END PIE CHART]
- --------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Cheil Jedang Corp. 2.46%
2. Globo Cabo SA (A.D.R.) 2.42
3. Embratel Participacoes (A.D.R.) 2.08
4. Telefonos de Mexico SA (L Shares) (A.D.R.) 2.02
5. Grupo Radio Centro SA de CV (A.D.R.) 1.73
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
12/31/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $18.75 $10.49
Accumulation Unit Value 1.8444 1.0465
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/98 - 12/31/99) 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 Emerging Markets
Free Index.
[PLOT POINTS FOR LINE CHART]
<TABLE>
<CAPTION>
MSCI Emerging Emerging Markets
Markets Free Portfolio*
Index
<S> <C> <C>
10/98 10000 10000
10832 10510
12/98 10675 10490
10503 10170
10605 10050
3/99 12003 10990
13487 12550
13409 12620
6/99 14931 14120
14525 13610
14657 12820
9/99 14162 12330
14463 13460
15761 15530
12/99 17766 18750
</TABLE>
[END PLOT POINTS]
The Morgan Stanley Capital International (MSCI) Emerging Markets Free Index is
an unmanaged, capitalization-weighted measure of 1,009 securities trading in 26
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.
Average Annual
Total Returns
- -----------------------
Net Asset Value*
- -----------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 71.13%
(10/30/98)
1 Year 78.74%
</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.
2 Past performance does not guarantee future results. Return 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 12/31/99
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Successful investing doesn't come easily. It requires diligent research,
discipline and the patience to allow investments to achieve their full
potential in the face of market fluctuations. For the 12 months ending December
31, 1999, emerging markets proved worth the wait. In the following discussion,
portfolio manager Mark H. Madden explains the factors that influenced Emerging
Markets Portfolio's performance over the past year.
Q: How did the rally in emerging markets impact the Portfolio?
A: The Portfolio had a very successful year. For the 12 months ending December
31, 1999, the Portfolio generated an impressive total return of 78.74%, at
net asset value. In comparison, the 22 variable annuity emerging markets
portfolios tracked by Lipper, Inc. had an average return of 71.27%. (Lipper
is an independent firm that tracks annuity portfolio performance.) The
Portfolio also surpassed its benchmark, the MSCI Emerging Markets Free Index,
which rose 66.41% for the same period.
Q: To what do you attribute the Portfolio's strong performance?
A: We selectively invested in stocks that we believe are taking advantage of
three major themes driving emerging markets: 1) economic recovery following
the 1997-98 crisis; 2) the information technology revolution; and 3)
outsourcing of products and services by developed market enterprises to
emerging market corporations.
Our country selection also contributed to performance, given the Portfolio's
strong presence in top performing countries such as South Korea, India,
Israel and Mexico. We maintained underweighted positions in poorer performing
markets in South Africa and South America.
Q: Why did the Portfolio emphasize technology, telecommunications and media
companies?
A: These companies provide a means for the Portfolio to participate in the
information technology revolution that is just beginning in emerging markets.
We focused the Portfolio on companies involved in building telecommunication
infrastructure and services. Portfolio holding Check Point Software
Technologies (Israel) provides internet security for large corporations. NIIT
(India) is active globally in information technology education, training and
software consulting services.
Our decision to invest in cellular communications proved to be an effective
way to take advantage of the explosive growth of the telecommunications
sector. We have high hopes for SK Telecom (Korea) and Grupo Iusacell
(Mexico), both of which control significant market share in their respective
countries.
Q: Is the corporate trend toward outsourcing significant for emerging markets?
A: We think so, and it's one for which the Portfolio is well positioned.
Multinational companies in the United States, Europe and Japan are
contracting with companies in developing countries to produce a wide range of
hardware for them -- from cellular handsets to shoes to software. Among the
holdings that are capitalizing on this trend are L.G. Electronics (Korea),
which manufactures much of the electronic hardware for the iMac PC and
Datacraft Asia (Singapore), which has contracted with Cisco Systems to
perform the assembly of its computer networks throughout Asia.
Q: What is your outlook?
A: We remain optimistic about the long-term prospects for economic growth,
inflation and interest rates in the global emerging markets. Barring any
negative economic surprises arising from the United States and other major
developed countries, we believe that the economies of many emerging countries
will continue to improve.
The economic crises of 1997-98 served as a catalyst for change in many
emerging markets. Governments of several developing countries implemented
reforms, and many companies pursued restructuring initiatives to become more
efficient and globally competitive. These initiatives should improve
productivity and lead to long-term economic growth.
[SIDEBAR]
International investing may involve special risks, including differences in
accounting and currency, as well as economic and politial instability.
The Portfolio's investment adviser, Pioneer Investment Management, Inc., reduces
its management fee and certain other expenses; otherwise, returns would have
been lower.
[END SIDEBAR]
3
<PAGE>
Europe Portfolio PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO AND PERFORMANCE UPDATE 12/31/99
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Portfolio Diversification
(As a percentage of total investment portfolio)
[PIE CHART]
International Common Stocks 92%
Depositary Receipts for International Stocks 4%
International Preferred Stocks 2%
U.S. Common Stocks 2%
[END PIE CHART]
Geographic Distribution
(As a percentage of equity holdings)
[PIE CHART]
United Kingdom 24%
France 19%
Germany 11%
Netherlands 9%
Switzerland 8%
Italy 7%
Spain 6%
Finland 6%
Sweden 4%
Other 6%
[END PIE CHART]
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Mannesman AG 3.37%
2. Getronics NV 3.06
3. British Telecom Plc 2.87
4. Nokia AB 2.58
5. Dassault Systemes SA 2.42
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
12/31/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $13.61 $10.60
Accumulation Unit Value 1.3396 1.0575
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/98 - 12/31/99) 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.
[PLOT POINTS FOR LINE CHART]
<TABLE>
<CAPTION>
Europe Portfolio* MSCI Europe
<S> <C> <C>
10/98 10000 10000
10150 10532
12/98 10600 10992
10750 10922
10260 10644
3/99 10220 10761
10480 11081
10180 10549
6/99 10426 10728
10486 10827
10576 10938
9/99 10566 10854
10997 11253
11787 11557
12/99 13618 12741
</TABLE>
The Morgan Stanley Capital International (MSCI) Europe Index is an unmanaged,
capitalization-weighted index of the 15 European country indices included in the
MSCI EAFE (Europe, Australasia, Far East) Index. 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.
Average Annual
Total Returns
- ------------------------------
Net Asset Value*
- ------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 30.21%
(10/30/98)
1 Year 28.47%
</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.
4 Past performance does not guarantee future results. Return 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 12/31/99
- --------------------------------------------------------------------------------
Technology and competition are dramatically changing Europe's corporate
landscape. Savvy new companies are emerging, while established businesses are
adapting or merging with competitors to extend their market share. Europe
Portfolio benefited from investments in many high-growth companies during 1999.
In the following interview, portfolio manager Patrick M. Smith highlights the
factors that influenced Portfolio performance.
Q: In recent months, demand for European stocks has been on the rise. What's
been the impact on stock prices?
A: Very positive. Feeling considerably more upbeat about corporate prospects,
Europeans are returning to the region's stock markets in force.
For the 12 months ending December 31, 1999, the Portfolio generated a U.S.
dollar-based total return of 28.47% at net asset value. The Morgan Stanley
Capital International (MSCI) Europe Index lagged significantly with a return
of 15.89%. Investments in undervalued, economically sensitive cyclical stocks
(machinery, metals and mining) and energy stocks were among the best
performers for the period - sectors your Portfolio has traditionally
de-emphasized. Telecommunication stocks, which represented one of the
Portfolio's largest sectors, also were big winners for the year.
Q: The pace of mergers and acquisitions has been brisk. Did it benefit the
Portfolio?
A: Absolutely. The pace of merger and acquisition activity is the result of
deregulation and corporations' efforts to maintain global competitiveness.
Often, buying competitors is a quicker, cheaper way to gain market share.
With its purchase of Mannesmann, Vodafone AirTouch (U.K.) will become the
world's largest provider of wireless service. The oil industry is also seeing
its share of mergers, albeit hostile at times, as producers join forces to
achieve greater economies of scale. French-based Total Fina recently
purchased Elf Aquitaine.
Q: Did higher interest rates weaken financial stocks?
A: Yes. In the aftermath of the Federal Reserve's June increase in short-term
interest rates in the United States, investors sold stocks they perceived
could be hurt by similar monetary action in Europe. In fact, the European
Central Bank subsequently followed suit in October, when it raised the
short-term rate by half a percentage point to 3.0%. Financial and insurance
stocks were hit hardest. Even so, our conviction remains unchanged that these
stocks could benefit from the longer-term trends of increased saving and
investing. Money flows into the European markets have already boosted stock
prices of asset managers Julius Baer Holding (Switzerland) and Mediolanum
(Italy).
Q: What other types of companies did you find attractive?
A: Companies that allow Europe to participate in the rapid pace of technological
progress. Technology is creating a new world economy and is widely credited
with boosting growth and reducing inflation. High-tech companies are also
propelling the growth of many information-dependent industries, including
finance, media and retail.
The internet, in particular, is producing new or more aggressive companies
that offer the necessary equipment and services to build infrastructure. With
their well constructed, sleek phones, telecommunications-equipment provider
Nokia (Finland) is providing cellular access to the internet. Software
industry giant SAP (Germany) is profiting from increased trade on the world
wide web and e-business.
Q: Where do you see Europe in the global economy as it enters the 21st century?
A: Europe is on an exciting path. National efforts to comply with mandates
established by the monetary union are creating a new breed of companies
focused on greater efficiencies, profitability and shareholder
accountability. The wave of cross-border mergers and acquisitions is also
shaping Europe's future. We feel confident that your Portfolio is invested in
cutting-edge companies that will help transform Europe into a dynamic
economic bloc.
[SIDEBAR]
International investing may involve special risks, including differences in
accounting and currency, as well as economic and politial instability.
The Portfolio's investment adviser, Pioneer Investment Management, Inc., reduces
its management fee and certain other expenses; otherwise, returns would have
been lower.
[END SIDEBAR]
5
<PAGE>
International Growth Portfolio PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO AND PERFORMANCE UPDATE 12/31/99
- --------------------------------------------------------------------------------
Portfolio Diversification
(As a percentage of total investment portfolio)
[PIE CHART]
International Common Stocks 89.8%
Short-Term Cash Equivalents 3.9%
Depositary Receipts for International Stocks 3.0%
International Preferred Stocks 1.6
U.S. Common Stocks 1.1%
Convertible Corporate Bond 0.6%
[END PIE CHART]
Geographic Distribution
(As a percentage of equity holdings)
[PIE CHART]
Europe 60%
Japan 25%
Asia 6%
Latin America 3%
Other 6%
[END PIE CHART]
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. NTT Mobile Communication Network, Inc. 2.93%
2. Softbank Corp. 2.77
3. Sony Corp. 2.71
4. Mannesman AG 2.60
5. Nokia AB 2.21
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
12/31/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $15.38 $10.79
Accumulation Unit Value 1.6434 1.1544
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/98 - 12/31/99) 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.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
International Growth MSCI EAFE
Portfolio* Index
<S> <C> <C>
3/95 10000 10000
10360 10073
11051 10494
12/95 11053 10918
11407 11233
11845 11411
11592 11398
12/96 11998 11579
12515 11398
13888 12877
14125 12786
12/97 12581 11784
14824 13518
12885 13661
10123 11718
12/98 12163 14137
12028 14333
12983 14697
13622 15343
12/99 17561 17950
</TABLE>
[END PLOT POINTS]
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.
Average Annual
Total Returns
- ---------------------------------
Net Asset Value*
- ---------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 12.32%
(3/1/95)
1 Year 44.38%
</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.
6 Past performance does not guarantee future results. Return 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
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/99
- --------------------------------------------------------------------------------
A generally sound global economy is inspiring greater confidence throughout
international markets. In the following interview, portfolio manager Pavlos M.
Alexandrakis discusses the factors that influenced International Growth
Portfolio's performance over the 12 months ending December 31, 1999.
Q: Was the rally in international markets widespread?
A: Very much so. From the Pacific Rim to Europe, stock markets made notable
advances - helped in large part by technology and telecommunication stocks.
The Portfolio was well positioned to benefit, given its broad country
diversity and prudent stock picking. For the year ending December 31, 1999,
the Portfolio generated a total return of 44.38%, at net asset value. The
Portfolio's comparative benchmark, the Morgan Stanley Capital International
EAFE (Europe, Australasia, Far East) Index lagged significantly with a return
of 26.96% for the same period.
Q: What accounts for the Portfolio's strong performance relative to its
benchmark?
A: Our emphasis on stock-picking in the top-performing countries of Finland and
Singapore and our decision to dramatically increase Japanese investments
proved wise. Portfolio holding Nokia (Finland), a leader in wireless
technology, climbed 70% for the year. In Singapore, we concentrated holdings
in businesses implementing U.S.-style management techniques to improve
returns on equity, including Development Bank of Singapore. Elsewhere in
Asia's emerging markets, our limited but highly successful investments in
blue-chip telecommunication stocks appreciated handsomely.
Q: Please comment on the Portfolio's current structure.
A: The Portfolio is structured as a core international fund to complement a
well-diversified mix of U.S. investments. About 80% of your Portfolio's
assets are invested in undervalued, high-quality companies that we expect
will be the market leaders in their respective industries or countries for
years to come. The remaining 20% of equity assets is invested a bit more
opportunistically. Here, we are searching for companies that are trying to
capitalize on specific lifestyle trends that may have a much shorter
investment window. We also consider traditional value stocks in economically
sensitive or cyclical industries. We buy these stocks early in their recovery
cycle, when we think prices are bottoming, and sell when we think prices are
peaking.
Q: Is the Portfolio capitalizing on corporate restructuring and deregulation
worldwide?
A: Absolutely. Deregulation has unleashed a wave of mergers and acquisitions as
corporations consolidate to maintain global competitiveness. This development
plays well into our strategy of searching for undervalued companies. We think
lower-profile banks in the United Kingdom offer compelling value and
represent attractive take-over candidates, especially Barclays.
Q: Why do technology and telecommunication stocks represent a third of the
Portfolio's assets?
A: While these sectors are susceptible to sharp swings in prices, we believe
their significant influence on global economic growth is undeniable.
Technology and telecommunication stocks were among the best performers for
the year, and your Portfolio had its fair share of winners. The sectors are
expensive, however, given their wide appeal. In-depth research is especially
critical to identify the best values.
Q: What's in store for 2000?
A: Your Portfolio is well positioned to participate in the dynamic growth
opportunities in international markets. As we enter 2000, we believe
inflation is less of a threat than ever before - thanks in no small part to
technology. Many foreign businesses are turning to U.S. companies to emulate
their successful transition to an era of long-term growth. And, people all
over the world are beginning to adopt an equity culture similar to what has
been established here in the United States. Given the recent progress of
international markets, it's not hard to imagine that the economic prosperity
in the United States could be repeated abroad.
[SIDEBAR]
International investing may involve special risks,
including differences in accounting and currency,
as well as economic and politial instability.
[END SIDEBAR]
7
<PAGE>
Capital Growth Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 12/31/99
- --------------------------------------------------------------------------------
Portfolio Diversification
(As a percentage of investment portfolio)
[PIE CHART]
U.S. Common Stocks 93%
Short-Term Cash Equivalents 4%
International Common Stocks 2%
Depositary Receipts for International Stocks 1%
[END PIE CHART]
Sector Distribution
(As a percentage of equity holdings)
[PIE CHART]
Technology 24%
Consumer Staples 15%
Financial 13%
Consumer Cyclicals 10%
Healthcare 8%
Capital Goods 7%
Utilities 7%
Energy 7%
Basic Materials 6%
Other 3%
[END PIE CHART]
- --------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Imation Corp. 4.52%
2. NCR Corp. 3.81
3. Columbia/HCA Healthcare Corp. 3.33
4. Viacom, Inc. (Class B) (Non-voting) 2.99
5. Newell Rubbermaid Co. 2.24
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
12/31/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $16.26 $14.49
Accumulation Unit Value 1.7054 1.5300
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/98 - 12/31/99) 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.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Capital S&P 500
Portfolio* Index
<S> <C> <C>
3/95 10000 10000
9910 10332
10650 11315
11980 12211
12/95 11713 12943
12624 13636
13527 14247
13141 14684
12/96 13473 15906
14268 16336
15541 19182
17559 20617
12/97 16800 21208
18652 24159
18228 24956
14411 22478
12/98 16125 27256
16503 28610
18814 30620
16783 28711
12/99 18241 32978
</TABLE>
[END PLOT POINTS]
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 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.
Average Annual
Total Returns
- -----------------------------
Net Asset Value*
- -----------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 13.22%
(3/1/95)
1 Year 13.13%
</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.
8 Past performance does not guarantee future results. Return 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 12/31/99
- --------------------------------------------------------------------------------
Following is an interview with Rod Wright, portfolio manager of Capital Growth
Portfolio, providing an update on the economic environment and investment
strategies that shaped the Portfolio's performance during the year.
Q: How would you characterize the market environment for mid-cap value stocks
over the last year?
A: The 12 months ended December 31, 1999 proved to be a very interesting time
for mid-cap value stocks. Investors, once again, were drawn toward
large-company growth stocks, especially technology stocks whose outstanding
performance was the main contributor to the positive returns across all major
market indices. Mid-cap companies, especially those with a value orientation,
did not keep pace with larger, growth-oriented stocks. While it has been a
very unusual, and sometimes frustrating period for value investors, it's
important to understand that, historically, no trend in the securities
markets has continued indefinitely.
Q: How did the Portfolio perform in this environment?
A: For the one-year period, the Portfolio returned 13.13% at net asset value. We
note that the Portfolio markedly outperformed the 2.32% return of the
Standard & Poor's/BARRA MidCap Value Index, an index comprised of
mid-capitalization, value-oriented stocks. However, the Portfolio did trail
the 20.99% return of the Standard & Poor's 500 Index, which was propelled by
the tremendous returns posted by large technology stocks over the year. On
December 31, about 24% of the Portfolio was invested in technology stocks
versus 30% for the S&P 500 Index. Our underweighting in technology reflects
the fact that very few technology stocks fit our value criteria as these
stocks became increasingly expensive.
Q: What specific sectors or holdings helped Portfolio performance?
A: The energy and technology sectors were the strongest contributors, while the
financial and healthcare areas detracted from performance.
Although the prices of energy stocks were depressed in late 1998, they
rebounded sharply in 1999 after oil-producing nations reached an agreement on
production. Conoco, an integrated oil company, and Apache, an exploration
company, are two holdings that performed well. Mergers also affected the
energy sector, and we sold Atlantic Richfield after the announcement that it
would be acquired by British Petroleum. In the technology sector, Imation, a
manufacturer of integrated circuits, was a standout.
Financial companies were hurt as interest rates rose and credit quality
concerns persisted. Conseco and Nationwide Financial Services are two
insurance holding companies that turned in weak results. Many healthcare
service providers were negatively affected by regulatory concerns about
Medicare, and the Portfolio's investment in Health Management Associates
languished.
Q: What is your outlook for mid-cap stocks and the Portfolio?
A: Our outlook is bullish. By our calculations most mid-cap companies are about
as cheap as they've ever been relative to the S&P 500 Index, which is
dominated by large-capitalization stocks. This is particularly true when you
get out of the technology sector, where we believe valuations are very high.
Many fine companies are also selling at low absolute prices, providing us an
opportunity to purchase a wide range of businesses at what we think are
attractive values.
In addition, we find it unusual that mid-cap stocks as a group have
underperformed the broader market to such a degree or for such an extended
period of time. We believe that this aberration will correct itself over
time, although it's impossible to predict exactly when. As a result, we
believe the Portfolio's mid-cap focus, its stable of strong companies, and
its value orientation will serve investors well over time. In the mean- time,
we are comfortable with what we believe is an attractive risk/reward profile.
[SIDEBAR]
Mid-capitalization stocks, while offering the potential for higher returns, may
be subject to greater short-term price fluctuation than securities of larger
companies.
[END SIDEBAR]
9
<PAGE>
Growth Shares Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 12/31/99
- --------------------------------------------------------------------------------
Portfolio Diversification
(As a percentage of investment portfolio)
[PIE CHART]
U.S. Common Stocks 93%
Short-Term Cash Equivalents 7%
[END PIE CHART]
Sector Distribution
(As a percentage of equity holdings)
[PIE CHART]
Consumer Staples 50%
Financial 16%
Capital Goods 11%
Technology 7%
Consumer Cyclicals 7%
Basic Materials 5%
Healthcare 3%
Communication Services 1%
[END PIE CHART]
- --------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Infinity Broadcasting Corp. 6.32%
2. Comcast Corp. (Non-voting) 6.27
3. Sealed Air Corp. 5.77
4. Walgreen Co. 5.55
5. The Coca-Cola Co. 5.30
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
12/31/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $21.92 $20.34
Accumulation Unit Value 1.4199 1.3329
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/98 - 12/31/99) 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.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Growth Shares S&P 500
Portfolio* Index
<S> <C> <C>
10/97 10000 10000
12/97 10227 10654
11773 12137
6/98 12574 12537
11094 11292
12/98 13561 13692
14761 14373
6/99 14970 15382
13314 14423
12/99 14637 16567
</TABLE>
[END PLOT POINTS]
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 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.
Average Annual
Total Returns
- --------------------------------
Net Asset Value*
- --------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 19.19%
(10/31/97)
1 Year 7.93%
</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.
10 Past performance does not guarantee future results. Return 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 12/31/99
- --------------------------------------------------------------------------------
Stock market performance was increasingly limited to a narrow group of
technology and telecommunications companies during 1999. Investors confined
their enthusiasm almost entirely to the Internet and wireless communications.
In the following interview, Jeffrey B. Poppenhagen, the portfolio manager for
Growth Shares Portfolio discusses the events and factors that influenced the
Portfolio's performance.
Q: Why did the Portfolio's performance in 1999 fall short of the major market
indices?
A: The Portfolio avoided the extraordinarily high valuations of most technology
company stocks because of concerns about the ability of these companies to
earn favorable rates of return on invested capital over the long term. As a
result, the Portfolio's performance fell behind the market indices, which
were driven by the upward momentum of technology stock prices. The Portfolio
returned 7.93% at net asset value. In comparison, the average return of the
182 variable annuity growth portfolios tracked by Lipper Inc. was 31.47%,
while the Standard & Poor's 500 Index returned 20.99%. (Lipper is an
independent firm that monitors annuity portfolio performance.)
Q: Why did you maintain an underweighting in technology and telecommunications
stocks through most of the year despite the unusually strong rally in these
industries?
A: We started to sell many of our technology holdings, beginning in May. We
became concerned about the extremely high stock valuations of many technology
companies and the poor returns these companies were earning on invested
capital. The market has become very momentum-oriented. Investors have been
buying technology stocks based upon expectations that the stock prices
inevitably would continue to rise. But that's not the way we invest. We
invest in stocks based upon our calculations of what a business is worth. The
problem with momentum investing is that it tends to miss the inflection
points - the points at which the trends change. In today's market, missing
the inflection point in technology stock momentum could be dangerous. No one
is very good at timing changes in market trends and we believe we are better
off selling early than one day too late.
Q: Where have you invested?
A: We maintained our discipline by investing in companies that are well
positioned to take advantage of market trends, have defensible competitive
advantages, and have demonstrated the ability to generate superior returns on
invested capital. We concentrated our investments in the companies in which
we have the greatest confidence. We have invested in a number of leading
consumer products companies that we believe will prosper in the global
economic expansion, companies such as Coca-Cola, Gillette, McDonald's and
Wrigley. We also like Sealed Air, a highly profitable packaging company that
is a leader in designing new packaging systems and has an excellent record
for rewarding investors.
Q: What do you see happening in 2000?
A: We have invested in good businesses that, we believe, should be able to pay
investors more in the future than what they are paying now. We keep a
long-term perspective and tend to hold stocks for three or four years. We
feel enthusiastic about companies like Coca-Cola and Sealed Air because they
are solid-growth companies with defensible and growing franchises. The
companies we own are ideally positioned to take advantage of global economic
growth. We think they care about their shareholders and offer investors the
best opportunities to earn superior rates of return on invested capital.
11
<PAGE>
Real Estate Growth Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE
- --------------------------------------------------------------------------------
Portfolio Diversification
(As a percentage of investment portfolio)
[PIE CHART]
U.S. Common Stocks 88%
International Common Stocks 4%
Short-Term Cash Equivalents 8%
[END PIE CHART]
Sector Distribution
(As a percentage of equity holdings)
[PIE CHART]
Real Estate Investment Trusts 94%
Real Estate Services 6%
[END PIE CHART]
- --------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Equity Office Properties Trust 6.92%
2. Mack-Cali Realty Corp. 4.58
3. Public Storage, Inc. 4.44
4. Reckson Associates Realty Corp. 4.26
5. The Macerich Co. 4.13
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
12/31/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $11.73 $13.07
Accumulation Unit Value 1.4002 1.4819
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/98 - 12/31/99) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.604+ $0.005 $0.119
</TABLE>
+The Portfolio also paid non-taxable distributions of $0.078 per share.
- --------------------------------------------------------------------------------
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.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Real Estate Wilshire
Growth S&P 500 Real Estate
Portfolio* Index Securities Index
<S> <C> <C> <C>
3/95 10000 10000 10000
10721 10951 10435
11482 11819 10930
12/95 11696 12528 11322
12020 13199 11800
12316 13790 12360
13548 14213 13090
12/96 15875 15396 15497
16178 15811 15781
16875 18566 16507
19340 19956 18592
12/97 19235 20527 18565
19105 23384 18425
18090 24155 17579
15670 21756 15477
12/98 15629 26381 15330
14616 27692 14798
16414 29637 16369
15055 27789 14807
12/99 14977 31920 14841
</TABLE>
[END PLOT POINTS]
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 market. The Wilshire Real Estate
Securities Index is a market-capitalization weighted measure of the performance
of real estate securities. The Index is 92% REITs (real estate investment
trusts) (equity and hybrid) and 8% 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 indices.
Average Annual
Total Returns
- -------------------------------
Net Asset Value*
- -------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 8.70%
(3/31/95)
1 Year -4.17%
</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.
12 Past performance does not guarantee future results. Return 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 12/31/99
- --------------------------------------------------------------------------------
In a year that will be remembered for the record-breaking success of technology
and telecommunications stocks, it comes as no surprise that less prominent
sectors of the economy -- including real estate investments -- turned in
lackluster performances. In the following interview, portfolio manager Matthew
Ostrower explains the factors affecting Real Estate Growth Portfolio's
performance during the last 12 months.
Q: Did real estate investments go the way of other out-of-favor stocks during
1999?
A: Yes. Despite some very positive developments, including low vacancy rates and
rising rents and property prices, the commercial real estate market turned in
sub-par performance for 1999. The fourth quarter was particularly difficult
for the sector, as investors sought to capture tax losses through the sale of
larger, more widely held real estate companies to offset tax gains resulting
from the sale of investments with strong price appreciation. For the year,
the Portfolio generated a total return of -4.17%, at net asset value. In
comparison, the 17 variable annuity real estate portfolios tracked by Lipper,
Inc. retreated, on average, -2.81% for the same period. (Lipper is an
independent firm that monitors annuity portfolio performance.)
Q: Is this performance masking positive developments that could bode well for
the sector's future?
A: Absolutely. Today, we believe the real estate market is healthier than ever
before. Unlike the late 1980s and early 1990s, when overzealous lending led
to over-building, the supply and demand of new properties is balanced. This
equilibrium is the product of cautious lending practices, which make
construction financing harder and more expensive to acquire.
The industry is also benefiting from a wider range of information, which was
not available 10 years ago. During the 1990s, the rising market
capitalization of real estate investment trusts (REITs) prompted Wall Street
to hire REIT analysts to follow the companies. Their research is helping
lenders and investors alike to make better-informed decisions.
Q: How did you manage the Portfolio during the year?
A: Our sector decisions were instrumental. The various sectors that the real
estate industry comprise have their own growth cycles, so it becomes very
important to determine which ones offer the best opportunities for our
shareowners. Our decision to invest heavily in apartments and office space
proved positive for the Portfolio, since they turned in the best comparative
performance in 1999. We've focused on companies with exposure to markets with
less new supply, such as Home Properties of New York, which owns high-end
apartments around New England.
Office REITs represent the largest sector weighting. Demand for office towers
is at an all time high, thanks to a 10-year economic expansion and the rise
of internet-related companies looking to lease huge amounts of space.
Aggressive and entrepreneurial, Reckson Associates Realty epitomizes the best
in the sector, with an attractive portfolio of buildings in greater New York
City and northern New Jersey.
Q: What is your outlook?
A: I'm upbeat about prospects for REITs. Most are trading well below their
underlying real estate asset values, creating attractive buying
opportunities. REIT balance sheets are also in the best condition they've
been in years. As always, the Portfolio may be subject to risks similar to
those associated with the direct ownership of real estate, including changing
general and local economic, financial, competitive and environmental
conditions. However, for value-oriented investors with an appreciation of
growth strategies, it's a great time to gain exposure to a sector of the
stock market that moves independently of other asset classes.
[SIDEBAR]
Real-estate related investments involve specific
risks, including those related to general and local
economic conditions and individual properties.
The Portfolio's investment adviser, Pioneer Investment
Management, Inc., reduced its management fee and
certain other expenses; otherwise, returns would
have been lower.
[END SIDEBAR]
13
<PAGE>
Growth and Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 12/31/99
- --------------------------------------------------------------------------------
Portfolio Diversification
(As a percentage of investment portfolio)
[PIE CHART]
U.S. Common Stocks 94%
Depositary Receipts for International Stocks 4%
Short-Term Cash Equivalents 1%
International Common Stocks 1%
[END PIE CHART]
Sector Distribution
(As a percentage of equity holdings)
[PIE CHART]
Technology 23%
Financial 15%
Communication Services 13%
Consumer Cyclicals 12%
Consumer Staples 11%
Healthcare 10%
Energy 5%
Capital Goods 4%
Basic Materials 4%
Other 3%
[END PIE CHART]
- --------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Sun Microsystems, Inc. 4.11%
2. SBC Communications, Inc. 2.98
3. Schering-Plough Corp. 2.93
4. IBM Corp. 2.45
5. Motorola, Inc. 1.90
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
12/31/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $22.70 $19.76
Accumulation Unit Value 1.4951 1.3108
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/98 - 12/31/99) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.166 $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.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Growth and Income S&P 500
Portfolio* Index
<S> <C> <C>
10/97 10000 10000
12/97 10543 10654
11944 12137
6/98 11964 12537
10985 11292
12/98 13296 13692
13525 14373
6/99 14728 15382
13877 14423
12/99 15411 16567
</TABLE>
[END PLOT POINTS]
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 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.
Average Annual
Total Returns
- --------------------------------
Net Asset Value*
- --------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 22.06%
(10/31/97)
1 Year 15.91%
</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.
14 Past performance does not guarantee future results. Return 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 12/31/99
- --------------------------------------------------------------------------------
In the following interview John Carey, Growth and Income Portfolio's manager,
discusses the events and factors that influenced your Portfolio's performance
during the last year.
Q: The market has changed quite a bit over the past year. What has taken place?
A: The stock market appeared to be very strong during 1999. Yet, upon closer
inspection, the strength was primarily in a few sectors, most notably
technology. Across many other sectors there was little price movement and, in
some cases, there were price declines. It is, we think, fair to say that
large numbers of investors have become enthralled by the possibilities for
new technology, especially as it relates to the Internet, and are focusing
their attention (and investment dollars) on the companies they believe are
well positioned to realize the possibilities. On the other hand, companies in
such traditional businesses as food processing, railway transportation,
banking and insurance, and electrical power supply are having difficulty
attracting any investor attention.
As value-oriented investors, we tend to favor companies with established
operations, substantial sales and earnings, and conservatively priced shares.
Nevertheless, the Portfolio did find itself the beneficiary of the prevailing
market sentiment. Several of our technology stocks, including Sun
Microsystems and Hewlett-Packard, had extraordinary years in the market. In
most cases we had purchased the shares of our technology holdings years
before, when the shares were out of favor and trading at much lower prices.
Similarly, today we are looking for new investments in sectors and securities
that other investors appear to be neglecting. As we have often observed, the
market may overlook attractive opportunities in its rush to get aboard the
fastest moving stocks. But, historically, the tortoises have fared quite well
against the hares, and now as always we are spending the bulk of our time
evaluating the tortoises.
Q: How did the Portfolio perform during the year?
A: The Portfolio returned 15.91% at net asset value for 1999, while the average
variable annuity growth and income annuity portfolio returned only 14.64%,
as reported by Lipper, Inc. (Lipper is an independent firm that reports
annuity portfolio performance.)
Q: In what sectors have you found opportunities in recent months?
A: Over the past year, we have found opportunities in a number of out-of-favor
sectors and have purchased shares of railroads, food processors,
basic-materials producers, and energy companies, among others. Stock-market
volatility has also presented us with opportunities to buy shares in the
changeable technology, financial-services, and pharmaceuticals industries.
The key, we think, is not to approach the market with preconceptions about
where value may be found, but instead to study the market everyday and act
whenever attractive opportunities appear.
Q: The market and the Portfolio have posted strong returns over the last few
years. Do you expect the good times to continue?
A: We are always hopeful about the market and the Portfolio, but can never
provide any guarantees or predictions. Other investors have commented on the
high level of the current market relative to where the market has traded in
preceding years. Many people have also tried to discern the "law" of the
market, which would permit them, with confidence, to forecast its direction.
Unfortunately, that is a demonstrably futile endeavor. At Pioneer, we have
always taken the approach that we would focus on individual companies and
their business prospects -- subjects we think we can learn something about --
and leave the prognosticating to others.
15
<PAGE>
Equity-Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 12/31/99
- --------------------------------------------------------------------------------
[PIE CHART]
U.S. Common Stocks 97%
U.S. Convertible Securities 2%
Short-Term Cash Equivalents 1%
[END PIE CHART]
Sector Distribution
(As a percentage of equity holdings)
[PIE CHART]
Financial 19%
Communication Services 15%
Utilities 13%
Consumer Staples 10%
Healthcare 9%
Consumer Cyclicals 8%
Energy 8%
Basic Materials 6%
Technology 5%
Other 7%
[END PIE CHART]
- --------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. SBC Communications, Inc. 5.50%
2. Schering-Plough Corp. 3.42
3. Hewlett-Packard Co. 2.90
4. Exxon Mobil Corp. 2.82
5. GTE Corp. 2.80
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
12/31/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $20.72 $21.44
Accumulation Unit Value 2.2192 2.2300
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/98 - 12/31/99) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.411 $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.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Equity-Income S&P 500 Index
Portfolio*
<S> <C> <C>
3/95 10000 10000
10280 10332
10990 11315
11785 12211
12/95 12362 12943
12778 13636
12881 14247
13189 14684
12/96 14240 15906
14745 16336
16867 19182
18202 20617
12/97 19257 21208
21434 24159
21635 24956
20388 22478
12/98 23455 27256
22711 28610
25207 30620
23259 28711
12/99 23739 32978
</TABLE>
[END PLOT POINTS]
The S&P 500 Index is an unmanaged measure of 500 widely held common stocks
listed on the New York Exchange and the 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.
Average Annual
Total Returns
- ---------------------------------
Net Asset Value*
- ---------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 19.56%
(3/1/95)
1 Year 1.21%
</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.
16 Past performance does not guarantee future results. Return 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 12/31/99
- --------------------------------------------------------------------------------
Following is an interview with John Carey, portfolio manager of Equity-Income
Portfolio, where he provides an update on the economic environment and
investment strategies that shaped the Portfolio's performance over the year.
Q: Over the past year market conditions have changed quite a bit. What has taken
place, and how has the Portfolio performed in this environment?
A: The last year saw an intensification of investor interest in large growth
stocks, especially in the technology industry. Above all, the internet and
stocks related to it fascinated investors, and some internet share prices
recorded astronomical gains. At the same time, many other stocks had a
difficult time attracting investors, and unfortunately that included many of
the conservative, dividend-paying stocks in the Portfolio.
In fact, this past year was a frustrating period for our style of investing.
For the one-year period the Portfolio returned 1.21% at net asset value. The
Portfolio's return trailed the 9.78% average return for annuity portfolios in
the Lipper, Inc. equity-income universe. (Lipper is an independent firm that
reports annuity portfolio performance.)
Q: The Portfolio's largest concentration is in the financial sector. How have
rising interest rates affected these companies?
A: Higher rates generally create difficulties for the financial sector, cyclical
companies and utilities. The Portfolio invests in all three groups because
stocks of these companies traditionally provide above-average dividend
yields. To moderate risk to the Portfolio from a rise in interest rates, we
have made an effort to identify companies with the potential to increase
their dividend payments.
We also devote much attention to the analysis of companies' balance sheets
and aim to avoid those that might become overburdened by the higher cost of
borrowing. Of course, the stock market may not make such fine distinctions
between companies when rates first rise. Ultimately, we believe, stronger
companies will be sorted out from weaker ones and temporary price weaknesses
will often appear to have been opportunities to buy good-quality stocks at
reasonable prices.
Q: What market sectors do you find particularly attractive now?
A: Transportation, consumer staples, and basic materials. All have been out of
favor with Wall Street, yet we think all include companies with major
opportunities for improved earnings over the next few years. Important
holdings for us in these sectors include Burlington Northern, in
transportation; Campbell Soup and H. J. Heinz, in consumer staples; and E.I.
du Pont de Nemours and Phelps Dodge, in basic materials. All provide goods
and services with constant demand and have the potential for better future
results than what is reflected in their share prices.
Q: What is your view of the current market environment, and what is your outlook
for the future?
A: It has been another strong year, with corporate growth rates well ahead of
last year's estimates. Results in the stock market have been more varied,
with tremendous gains in some areas and lackluster results elsewhere. The
narrow focus of the market on the companies with the fastest earnings growth
has been cited as a cause to worry that the long bull market is cresting.
With so many fine companies having trouble securing investor interest,
commentators point to the possibility of a sell-off if and when the market
leaders tumble. We do not believe that the market can be predicted with any
kind of consistency. However, we do think it is reasonable to expect another
turbulent year with many crosscurrents. But, as always, we shall devote our
major effort to finding and maintaining investments that we believe will help
you pursue your long-term investment goals.
17
<PAGE>
Balanced Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 12/31/99
- --------------------------------------------------------------------------------
Portfolio Diversification
(As a percentage of total investment portfolio)
[PIE CHART]
U.S. Common Stocks 57%
Corporate Bonds 22%
U.S. Government Agency Obligations 13%
U.S. Treasury Obligations 4%
Short-Term Cash Equivalents 2%
International Common Stocks 1%
Depositary Receipts for International Stocks 1%
[END PIE CHART]
Sector Distribution
(As a percentage of total
investment in securities)
[PIE CHART]
U.S. Government Securities 18%
Financial 16%
Technology 14%
Consumer Cyclicals 9%
Consumer Staples 9%
Energy 8%
Communication Services 8%
Healthcare 6%
Capital Goods 5%
Basic Materials 4%
Other 3%
[END PIE CHART]
- --------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of total investment in securities)
<TABLE>
<S> <C>
1. Intel Corp. 4.36%
2. Ford Motor Co. 3.22
3. US West Communications Group, Inc. 2.54
4. Wal-Mart Stores, Inc. 2.29
5. Hewlett-Packard Co. 2.07
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
12/31/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $14.31 $14.47
Accumulation Unit Value 1.5576 1.5407
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/98 - 12/31/99) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.514 $ - $ -
</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 Standard & Poor's (S&P) 500 Index
and Lehman Brothers Government/Corporate Bond Index.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Lehman Brothers
Government/
Balanced Corporate S&P 500
Portfolio* Bond Index Index
<S> <C> <C> <C>
3/95 10000 10000 10000
10200 10067 10332
10810 10720 11315
11655 10925 12211
12/95 12084 11434 12943
12450 11167 13636
12686 11219 14247
12954 11417 14684
12/96 13806 11766 15906
13794 11665 16336
15180 12089 19182
16442 12513 20617
12/97 16239 12914 21208
17399 13110 24159
17259 13453 24956
16168 14119 22478
12/98 16667 17138 27256
16575 13969 28610
17136 13816 30620
16327 13891 28711
12/99 17089 13834 32978
</TABLE>
[END PLOT POINTS]
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 the 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 indices.
Average Annual
Total Returns
- -------------------------------
Net Asset Value*
- -------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 11.71%
(3/1/95)
1 Year 2.53%
</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.
18 Past performance does not guarantee future results. Return 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 12/31/99
- --------------------------------------------------------------------------------
Technology continued to generate a great deal of investor interest over the
year, and it was difficult for any other sector to keep up with the rapid
growth in this area. In the following discussion, Theresa Hamacher, who
supervises the team of portfolio managers and analysts responsible for
day-to-day management of Balanced Portfolio, and Tin Chan, who focuses on the
Portfolio's equity component, review the performance of your Portfolio and the
factors that affected it over the year.
Q: How did Balanced Portfolio perform for the year ended December 31, 1999?
A: The Portfolio returned 2.53%, at net asset value. In comparison, the 63
variable annuity balanced underlying portfolios tracked by Lipper, Inc.
returned an average of 8.67% at net asset value, for the same period. (Lipper
is an independent firm that tracks annuity portfolio performance.)
Q: Why did the Portfolio underperform compared to other funds?
A: There were several reasons. The Portfolio is value-oriented, and for most of
the year this investment style continued to be out of favor. Instead,
investors focused on technology and other growth stocks. Over the year, no
other sector matched the performance of technology stocks. We believe many
technology stocks are over-priced and do not offer much value to shareowners
-- and since the Portfolio had limited exposure to technology investments,
its results suffered when compared to its balanced portfolio peer group.
Also, it has always been our strategy to strive to select stocks that we
believe will produce a higher-than-average dividend yield -- something most
technology stocks don't offer. Lastly, the Portfolio was more conservatively
positioned than some competitor portfolios given its heavier weighting in
bonds. This, too, worked against the Portfolio.
Q: What equity holdings helped the Portfolio's performance?
A: The few technology stocks that we did hold were strong contributors to
performance. Motorola followed the wave of expansion experienced by most
other communications equipment providers and was up over 142%.
Hewlett-Packard and Lucent Technologies also performed well. The technology
stocks in the portfolio were acquired only after we had conducted careful
research of their fundamentals. Basic material holdings, including Dow
Chemical and Reynolds Metals, an aluminum manufacturer, were up between 49%
and 52%, respectively, over the year.
Q: What holdings hurt the Portfolio?
A: Several of the holdings that turned in poor performances over the year shared
a common bond -- their stock prices declined after they had trouble
integrating companies that were acquired in 1998. First Union merged with
CoreStates Financial Corp. and, in response, First Union's share price fell.
Another holding, Bank One, also saw its price decline when it acquired a
credit card company. However, we will continue to hold Bank One and First
Union for two reasons. We believe in their long-term viability, and they both
offer some of the highest dividend yields that we've seen in over a decade.
Q: What bond holdings helped the Portfolio's performance?
A: One of our high yield credits, RBF Finance, an oil rig engineering
construction firm and a Portfolio holding since June, did quite well. We felt
that this issue would benefit from the rebound in energy and our analysis
paid off. A new addition to the portfolio was King Pharmaceutical. We bought
this company's bonds at face value early in the year, and they've since
appreciated in price as its business improved.
Q: Going forward how will you manage the Portfolio?
A: We will continue to apply a value approach. This means maintaining a focus on
stocks with low price-to-book and low price-to-earnings ratios. An investment
portfolio that contains a blend of stocks and bonds can help to smooth out
the ups and downs that are inevitable in the financials markets, as well as
create a comfortable balance between risk and reward. We believe that over
the long term the Portfolio can provide shareowners a mix of the benefits
that both stocks and bonds have to offer.
[SIDEBAR]
Effective October 25, 1999, day-to-day management of the portfolio is the
responsibility of a team of portfolio managers and analysts supervised by
Theresa A. Hamacher, chief investment officer of Pioneer. This team manages and
provides research for the Portfolio and other Pioneer mutual funds with similar
investment objectives or styles.
[END SIDEBAR]
19
<PAGE>
Strategic Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 12/31/99
- --------------------------------------------------------------------------------
Portfolio Diversification
(As a percentage of total investment portfolio)
[PIE CHART]
Corporate Bonds 47%
U.S. Government Agency Obligations 17%
U.S. Treasury Obligations 16%
Convertible Corporate Bonds 9%
Foreign Government Bonds 6%
Asset-Backed Securities 4%
Supernational Bonds 1%
[END PIE CHART]
Portfolio Maturity
(Effective life as a percentage of
total investment portfolio)
[PIE CHART]
0-2 Years 11.0%
2 to 5 Years 10.2%
5 to 7 Years 17.5%
7 to 10 Years 55.8%
20+ Years 5.5%
[END PIE CHART]
- --------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of debt holdings)
<TABLE>
<S> <C>
1. U.S. Treasury Notes, 5.625%, 5/15/08 15.67%
2. Federal National Mortgage Association, 7.0%, 9/1/29 4.25
3. Government National Mortgage Association, 7.75%, 10/15/26 4.13
4. Government National Mortgage Association, 7.0%, 2/15/29 4.10
5. Republic of Argentina, 9.75%, 9/19/27 2.82
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
12/31/99 7/29/99
<S> <C> <C>
Net Asset Value per Share $9.75 $10.00
Accumulation Unit Value 1.0011 1.0000
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(7/29/99 - 12/31/99) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.277+ $ - $ -
</TABLE>
+The Portfolio also paid non-taxable distributions of $0.042 per share.
- --------------------------------------------------------------------------------
Performance of a $10,000 Investment
The following chart shows the value of an investment made in Strategic Income
Portfolio at net asset value, compared to the growth of Lehman Brothers
Aggregate Government Bond Index.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Strategic Income Lehman Aggregate
Portfolio* Bond Index
<S> <C> <C>
7/99 10000 10000
8/99 9975 9995
9/99 9999 10111
10/99 10002 10148
11/99 10026 10147
12/99 10070 10099
</TABLE>
[END PLOT POINTS]
Index comparison begins July 31, 1999. The Lehman Brothers Aggregate Bond Index
is a market value-weighted measure of treasury and agency issues, corporate bond
issues and mortgage-backed securities. 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 Index.
Cumulative
Total Returns
- -------------------------
Net Asset Value*
- -------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 0.70%
(7/29/99)
</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.
20 Past performance does not guarantee future results. Return and share prices
fluctuate so that your investment, when redeemed, may be worth more or less
than its original cost.
<PAGE>
Strategic Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 12/31/99
- --------------------------------------------------------------------------------
Strategic Income Portfolio's first fiscal period closed on December 31, 1999
amidst challenging conditions for bond investors. The following discussion with
members of your investment team -- Kenneth J. Taubes, Salvatore P. Pramas and
Margaret D. Patel -- covers the investment environment and strategies that
affected your Portfolio's performance since its inception on July 29, 1999.
Q: Ken, how is Strategic Income Portfolio's investment team structured?
A: A team of specialists, each responsible for investing in a different area of
the fixed-income market, manages a segment of the Portfolio. The team meets
formally each week to review and evaluate market data. In addition, we meet
informally every day to make security decisions. I oversee the day-to-day
management of the Portfolio and also focus on overall asset allocation. Sal
manages the Portfolio's international investments while Margaret has
responsibility for the high yield component.
Q: The sharp rise in interest rates during 1999 was tough on bonds -- how did
the Portfolio perform?
A: As with most bond investments, the Portfolio's total return reflects the drop
in bond prices. However, the Portfolio's income helped to offset the decline
in price. From its inception on July 29 through December 31, 1999, the
Portfolio generated a total return of 0.70%, at net asset value. In
comparison, the Portfolio's benchmark, the Lehman Brothers Aggregate Bond
Index, returned -0.48% from July 31 through the end of 1999.
Investments in mortgage-backed securities and foreign currencies contributed
positively to performance during the period, offsetting some of the declines
sustained by high yield bonds. Towards the end of the year, high yield bonds
began to turn the corner -- and selective investing in high yield and
emerging market securities helped the Portfolio perform appreciably better
than its benchmark index in the final quarter of 1999.
Q: How does the Portfolio's broad investment parameters benefit shareowners?
A: Shareowners can take advantage of bond market opportunities worldwide from a
single portfolio of bonds. Investment conditions are always in flux, and the
Portfolio's flexibility to invest in a broad mix of bonds can help investors
benefit from changing market conditions. We use the Portfolio's flexible
investment parameters to adjust its security mix, taking advantage of the
relative values between each bond sector.
Q: How do you determine the Portfolio's asset allocation?
A: We apply a value-oriented approach, targeting attractively priced bonds that
we believe are capable of generating solid income as well as the potential
for price appreciation. During the period, this meant underweighting high
yield issues, as compared to our peer group. Rising U.S. interest rates and
concerns that the pace of the U.S. economy was growing at an unsustainable
rate worked against the performance of the high yield sector during the
summer and fall. Consequently, we focused on the higher-quality segments of
the U.S. bond market, such as mortgage-backed securities. Internationally, we
favored Danish mortgage-backed securities and German government bonds. We
also invested opportunistically in emerging markets, particularly in Asia and
Latin America. Overall, the average quality of the securities held in the
Portfolio was BBB. (Credit quality ratings apply to underlying portfolio
securities, not to Strategic Income Portfolio's shares.)
Q: What's in store for the coming months?
A: We think price and yield characteristics are attractive in a number of bond
markets, including Europe, Latin America and Asia. Here in the United States,
we believe high yield corporate bonds, particularly energy and health care
issues, could provide rewarding performance going forward. As always,
thorough credit research will be instrumental in helping us to sort through
opportunities in the bond markets. And, we will closely monitor the
investment landscape, adjusting Portfolio strategy to make the most of market
changes.
[SIDEBAR]
The Portfolio invests in international securities,
including emerging market bonds. These investments
are subject to special risks, including currency
fluctuations and political risks. The Portfolio
also invests in high yield bonds, which may be
subject to greater principal fluctuation than
investment grade bonds.
[END SIDEBAR]
21
<PAGE>
Swiss Franc Bond Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 12/31/99
- --------------------------------------------------------------------------------
Portfolio Diversification
(As a percentage of total investment portolio)
[PIE CHART]
Corporate Bonds 69%
Foreign Government Bonds 27%
Short-Term Cash Equivalents 4%
[END PIE CHART]
Portfolio Quality
(As a percentage of debt holdings)
[PIE CHART]
AA 42%
AAA 39%
A 19%
[END PIE CHART]
- --------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of debt holdings)
<TABLE>
<S> <C>
1. Societe Nationale des Chemins de Fer Francais, 5.25%, 2/24/05 5.07%
2. Transpower Finance Ltd., 4.25%, 6/10/04 4.87
3. GMAC Canada Ltd., 3.75%, 1/16/01 4.73
4. AB Spintab, 3.25%, 1/24/02 4.69
5. DaimlerChrysler NA Holdings, Inc., 3.125%, 9/25/02 4.68
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
12/31/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $11.35 $13.22
Accumulation Unit Value 0.7435 0.8726
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/98 - 12/31/99) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$ - + $ - $ -
</TABLE>
+The Portfolio paid non-taxable distributions of $0.074 per share.
- --------------------------------------------------------------------------------
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.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Swiss Franc Merrill Lynch
Bond Porfolio* Global Bond
Index
<S> <C> <C>
11/95 10000 10000
10013 10110
9807 9944
9244 9991
9416 10246
12/96 8931 10515
8399 10205
8379 10543
8372 10740
12/97 8313 10845
8100 10968
8079 11196
8978 11935
12/98 9101 12231
8543 11861
8061 11548
8302 11880
12/99 7864 11754
</TABLE>
[END PLOT POINTS]
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.
Average Annual
Total Returns
- --------------------------------
Net Asset Value*
- --------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio -5.54%
(11/1/95)
1 Year -13.59%
</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.
22 Past performance does not guarantee future results. Return 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 12/31/99
- --------------------------------------------------------------------------------
In 1999, the U.S. dollar maintained its status as a strong currency, while the
Swiss franc did not have such an easy time, depreciating 13.80% for the year.
In the following discussion, Sal Pramas, Swiss Franc Bond Portfolio's manager
and leader of its investment team, reviews the year and the Portfolio's
performance.
Q: How did the Portfolio perform over the year?
A: Designed to track the performance of the Swiss franc, your Portfolio's
performance reflected the decline in the Swiss franc, finishing 1999 slightly
ahead of the currency with a total return of -13.59%. The Portfolio also
outperformed its benchmark index, the Merrill Lynch Global Bond Index, which
returned -14.21.
Q: Why track the Swiss franc?
A: The Swiss franc is considered by many investors to be a safe haven against
global market volatility. The Portfolio appeals to those investors who are
seeking insurance against a major market setback. Historically the Swiss
franc has performed well when the value of the U.S. dollar is declining.
Q: How did interest rates affect the Portfolio?
A: Interest rates rose throughout the world markets during 1999, with much of
the increase occurring in the second half of the year. Because bond prices
and interest rates move in opposite directions, rising rates hampered the
performance of bonds during the year. The longer the maturity, the more
sensitive a bond's price is to changes in interest rates. Because your
Portfolio invests in securities with maturities of 2-5 years, it escaped the
steep declines sustained by longer-term bond investments.
Q: How is the Portfolio structured?
A: As stated, the Portfolio's average maturity is kept relatively short, about 4
years. We focus primarily on high-quality issues that are attractively valued
with respect to price and yield. On December 31, the average credit quality
of the Portfolio was AA (Ratings apply to Portfolio holdings, not Portfolio
shares).
The Portfolio holdings consist primarily of foreign corporate issues and
government bonds. Over the year, the corporate bond holdings performed very
well compared to government securities.
Q: What factors influenced the Swiss franc over the year?
A: The Swiss franc depreciated against the U.S. dollar over the year for several
reasons. Both strong economic growth in the U.S., which helped fuel a bull
market, and the interest rate increases by the U.S. Federal Reserve increased
the demand for dollars. In addition, the Swiss franc and the euro were strong
going into 1999, due to the high level of optimism investors felt about the
euro at its launch. However, when that optimism faded, and the euro
subsequently declined, the Swiss franc depreciated as well.
Q: What is your outlook for the Swiss franc and the Portfolio?
A: Over the next year, we think the Swiss franc should begin to recover.
Economic growth in the United States should slow as the effects of Fed
tightening take hold. At the same time, growth in Switzerland, and across
Europe, is beginning to accelerate. Also, the European Central Bank and the
Swiss Central Bank will likely continue raising official interest rates. All
of this should lend strength to the Swiss franc in the year ahead.
[SIDEBAR]
International investing may involve special risks, including differences in
accounting and currency, as well as eceonomic and political instability.
[END SIDEBAR]
23
<PAGE>
America Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 12/31/99
- --------------------------------------------------------------------------------
Portfolio Diversification
(As a percentage of total investment portolio)
[PIE CHART]
U.S. Government Agency Obligations 72.6%
U.S. Treasury Obligations 22.7%
Short-Term Cash Equivalents 4.7%
[END PIE CHART]
Portfolio Maturity
(Effective life as a percentage of
total investment portfolio)
[PIE CHART]
0-2 Years 5.3%
2-5 Years 12.3%
5 to 7 Years 14.0%
7 to 10 Years 38.3%
10 to 20 Years 24.0%
20+ Years 6.1%
[END PIE CHART]
- --------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of debt holdings)
<TABLE>
<S> <C>
1. U.S. Treasury Bonds, 7.25%, 5/15/16 7.74%
2. U.S. Treasury Notes, 7.0%, 7/15/06 6.32
3. U.S. Treasury Notes, 6.25%, 8/15/23 5.32
4. Government National Mortgage Association II, 6.5%, 2/20/29 4.81
5. U.S. Treasury Notes, 7.25%, 5/15/04 3.64
</TABLE>
Holdings will vary for other periods.
- --------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
12/31/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $9.47 $10.29
Accumulation Unit Value 1.1421 1.1878
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/98 - 12/31/99) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.556 $ - $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.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
America Income Lehman Brothers
Portfolio* Government
Bond Index
<S> <C> <C>
3/95 10000 10000
10109 10620
10207 10809
12/95 10574 11302
10320 11046
10339 11098
10479 11285
12/96 10712 11615
10615 11520
10967 11919
11288 12318
12/97 11616 12727
11758 12919
11991 13261
12560 13994
12/98 12563 13981
12429 13781
12240 13664
12308 13754
12/99 12246 13667
</TABLE>
[END PLOT POINTS]
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 of 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.
Average Annual
Total Returns
- --------------------------------
Net Asset Value*
- --------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 4.26%
(3/1/95)
1 Year -2.52%
</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.
24 Past performance does not guarantee future results. Return 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 12/31/99
- --------------------------------------------------------------------------------
December 31, 1999 ended a difficult year for most fixed-income securities as
the Federal Reserve Board raised short-term interest rates in an attempt to
slow economic activity. In the following conversation, Richard A. Schlanger
details the events and strategies that shaped America Income Portfolio's
performance during the year.
Q: The past year was challenging for bonds. How did the Portfolio perform?
A: Rising interest rates throughout the year hampered the performance of all
bond investments, your Portfolio included. (By nature, bond prices tend to
fall as interest rates rise.) For the 12 months ending December 31, 1999, the
Portfolio generated a total return of -2.52%, at net asset value. In
comparison, the average return of the 31 variable annuity general U.S.
government portfolios followed by Lipper, Inc. was -2.13% for the same
period. (Lipper is an independent firm that tracks annuity portfolio
performance.)
Q: 1999 was the second worst year for bonds since 1973 -- only 1994 was worse.
What made the investment environment so challenging?
A: A shift in market sentiment and investment conditions, which changed sharply
from the first half of the year to the second, was largely responsible; it
resulted in the rising interest rate climate. At the start of 1999, interest
rates were at extraordinarily low levels in the aftermath of 1998's
international financial crisis. By mid-year, worries about excessive economic
growth and a revival of inflation prompted investors to push yields higher
and bond prices lower. Meanwhile, the Federal Reserve Board raised short-term
interest rates three times in 1999, bringing levels back to where they were
prior to the international crisis.
Q: What strategies did you use to manage the effect of rising interest rates on
the Portfolio?
A: We took measures to emphasize income and limit interest rate risk by
increasing the Portfolio's position in mortgage-backed securities, steps that
worked well. Mortgage-backed securities offered an attractive yield advantage
to U.S. Treasurys. The higher stream of income helped offset some of the
bonds' price declines. In addition, stronger relative demand for
mortgage-backed securities helped them to perform markedly better than U.S.
Treasurys.
During the year, we added to the Portfolio's holdings in GNMAs (Government
National Mortgage Association), favoring securities with higher coupons
(stated rate of interest) to help boost the Portfolio's income. We also
extended the maturities of GNMA holdings, reducing investments in securities
with 15-year maturities to build investments with 30-year maturities.
Longer-term bonds had become attractively priced, and we believe they can
offer the opportunity to increase total return when rates on mortgage-backed
securities begin to descend.
Q: What is your outlook in the months ahead?
A: The Federal Reserve Board already has raised short-term interest rates
three-quarters of a percentage point since June of 1999. We believe the Fed
is still pursuing a goal of economic growth at more sustainable rates, so
further increases cannot be ruled out. However, it appears that current bond
prices already reflect the effect of higher rates, suggesting that prices
have room to improve.
Admittedly, the past year has been difficult for bond investors. All
financial markets experience periods of turbulence -- and while those periods
challenge even the most seasoned investors in the short term, dramatic market
changes often create longer-term opportunities. If the economy slows, as we
think it will, investors could well be rewarded if they rebalance portfolios
whose allocations may have become too heavily tilted toward stocks as stock
prices rose. In our opinion, the Portfolio can offer investors solid
long-term value, competitive income and among the highest credit quality
securities available.*
[SIDEBAR]
*Credit quality refers to underlying portfolio securities, not to shares of
America Income Portfolio.
[END SIDEBAR]
25
<PAGE>
Money Market Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 12/31/99
- --------------------------------------------------------------------------------
Q: How did the Portfolio perform this year?
A: The Portfolio generated a total of $0.043 per share in dividends over the
period. The seven-day effective yield for the Portfolio was 5.12% on December
31, compared to 4.22% six months ago and 4.28% a year ago. For the year, the
total return for the Portfolio was 4.38%, at net asset value. In comparison,
the average portfolio in Lipper's variable annuity underlying portfolios
category returned 4.75%, according to Lipper, Inc. (Lipper is an independent
research firm that tracks annuity portfolio performance.)
Q: The Federal Reserve raised short-term interest rates three times in 1999.
What effect did this have on Money Market Portfolio?
A: In order to prevent the economy from overheating, short-term interest rates
were increased three times over the year. In effect, these increases reversed
the rate cuts engineered by the Fed in 1998, which were instituted in
response to the global economic problems that encompassed many overseas
markets.
Should the Federal Reserve decide to increase short-term rates again, and
there are indications that this may be the case in the months ahead, your
Portfolio stands to benefit because when short-term interest rates rise money
market yields follow suit. The yield on your Portfolio should also increase
in response to the higher rate levels available from short-term money market
obligations.
Money Market Portfolio holds fixed-income instruments that have short
maturities, generally less than six months. The Portfolio's average maturity
must be 90 days or less. Keeping the average maturity short is benefical
because, when these short-term instruments reach maturity, we are able to
take advantage of the rise in rates by replacing these holdings with
instruments that offer higher yields.
Q: What strategies did you use in managing the Portfolio?
A: The Portfolio remained very conservative. One of its investment objectives is
to provide income for shareowners. So, as always, we sought money market
instruments that we believe had the potential to provide attractive yields.
Over the year, we adjusted the maturity of the Portfolio's securities to make
the most of shifting interest rates. Typically, the Portfolio's average
maturity falls between 30 and 50 days. At the end of 1999, the Portfolio's
average maturity was 25 days, significantly shorter than the 34 days it was
in June. This reflects our decision to keep the average maturity very short
in order to take advantage of rising rates.
Q: What is your outlook going forward?
A: Even in light of three rate increases during the course of a year, the
economy still continues its rapid growth. If economic activity does not begin
to cool down, we would anticipate future rate hikes. Continuing to focus on
shorter-maturity instruments in the Portfolio, we believe, will present us
with opportunities to take advantage of any future interest rate increases.
- --------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
12/31/99 12/31/98
<S> <C> <C>
Net Asset Value per Share $1.00 $1.00
Accumulation Unit Value 1.1651 1.1317
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/98 - 12/31/99) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.043 $ - $ -
</TABLE>
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.
Average Annual
Total Returns
- -----------------------------------
Net Asset Value*
- -----------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 4.66%
(3/1/95)
1 Year 4.38%
7-day current yield
(12/31/99) 4.99%**
</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.
** The yield quotation more closely reflects the current earnings of the
Portfolio than the total return quotation.
26 Past performance does not guarantee future results. Return 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
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
PREFERRED STOCKS - 3.6%
1,040,000 Banco Itau SA $ 89,233
139 Shinsegae Department Store Co.
(New Shares)* 7,284
1,600 Tele Norte Leste Participacoes (A.D.R.) 40,800
900 Telecomunicacoes Brasileiras SA (A.D.R.) 115,650
370 Telesp Celular Participacoes SA (A.D.R.) 15,679
1,041 Telesp Participacoes SA (A.D.R.) 25,439
735 Tele Sudeste Celular Participacoes SA
(A.D.R.) 28,527
------------
Total Preferred Stocks
(Cost $204,523) $ 322,612
------------
COMMON STOCKS - 95.9%
Basic Materials - 2.4%
Chemicals - 0.8%
6,098 Daelim Industrial Co. $ 70,083
------------
Chemicals (Specialty) - 0.1%
1,000 Reliance Industries Ltd. $ 5,372
------------
Construction (Cement & Aggregates) - 1.2%
3,350 Associated Cement Companies, Ltd. $ 19,118
7 Cemex, SA (A.D.R.)* 195
11,677 Cemex, SA (Class B) 65,317
180,000 PT Jaya Real Property Tbk (Local Shares)* 26,404
------------
$ 111,034
------------
Paper & Forest Products - 0.3%
3,200 Hansol Paper Co. $ 28,886
------------
Total Basic Materials $ 215,375
------------
Capital Goods - 0.8%
Electrical Equipment - 0.4%
3,200 Bharat Heavy Electricals Ltd.* $ 15,448
64,000 Nanjing Panda Electronics Co. Ltd. (Class H)* 16,055
------------
$ 31,503
------------
Machinery (Diversified) - 0.1%
43,000 PT Komatsu Indonesia Tbk (Local Shares)* $ 12,154
------------
Trucks & Parts - 0.3%
1,950 Larsen & Toubro, Ltd. $ 24,920
------------
Total Capital Goods $ 68,577
------------
Communication Services - 22.2%
Cellular/Wireless Telecommunications - 4.3%
7,752 Grupo Iusacell SA (Series V) (A.D.R.)* $ 115,796
3,514 SK Telecom Co., Ltd. (A.D.R.) 134,864
1,000 Stet Hellas Telecomm SA (A.D.R.)* 30,500
130,000 Technology Resources Industries Bhd. 80,395
4,000 Total Access Communication Public
Company, Ltd.* 15,760
------------
$ 377,315
------------
Telecommunications (Long Distance) - 0.7%
60 Dacom Corp. $ 30,911
20,000 Keppel Telecommunications &
Transportation, Ltd. 32,543
------------
$ 63,454
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Telephone - 17.2%
1,200 Deltathree.com Inc.* $ 30,900
6,800 Embratel Participacoes (A.D.R.) 185,300
15,950 Grupo Carso Global Telecom* 149,821
2,800 Hanaro Telecom Inc.* 48,454
4,401 Hellenic Telecommunication Organization SA 104,217
400 Hellenic Telecommunication Organization
SA (A.D.R.) 4,775
700 Korea Telecom Corp. (A.D.R.) 52,325
1,250 Matav (A.D.R.) 45,000
5,075 Philippine Long Distance Telephone Co. (A.D.R.) 131,316
6,000 PT Indosat Indonesian Satellite Corp. (A.D.R.) 129,750
2,800 RSL Communications, Ltd.* 47,950
22,000 Singapore Telecommunications, Ltd. 45,440
78,000 TelecomAsia Corp. Public Co., Ltd.* 101,474
1,600 Telefonos de Mexico SA (L Shares) (A.D.R.) 180,000
18,000 Telekom Malaysia Bhd. 69,632
12,340 Telekomunikasi Indonesia (A.D.R.) 135,740
3,000 Videsh Sanchar Nigam Ltd. (G.D.R.) (144A) 74,400
------------
$ 1,536,494
------------
Total Communication Services $ 1,977,263
------------
Consumer Cyclicals - 7.1%
Automobiles - 1.5%
133,000 Koc Holdings AS $ 24,521
31,000 PT Astra International Tbk (Local Shares)* 16,637
8,000 Mahindra & Mahindra Ltd. (G.D.R.) 89,200
------------
$ 130,358
------------
Homebuilding - 0.1%
7,500 Land & House Public Co., Ltd.* $ 7,119
------------
Leisure Time (Products) - 0.7%
1,500 Bajaj Auto Ltd. $ 11,345
24,000 Berjaya Sports Toto Bhd. 51,789
------------
$ 63,134
------------
Lodging (Hotels) - 0.4%
4,050 The Indian Hotels Co. Ltd. (G.D.R.) (144A) $ 39,184
------------
Publishing - 0.3%
900,000 Dogan Sirketler Grubu Holding AS* $ 26,549
------------
Publishing (Newspapers) - 0.2%
1,000 Agora SA (G.D.R.)* $ 14,750
------------
Retail (Department Stores) - 1.7%
3,100 Edgars Stores Ltd. $ 39,587
301,000 PT Matahari Putra Prima (Local Shares)* 50,615
1,200 Shinsegae Department Stores Co. 60,661
------------
$ 150,863
------------
Retail (General Merchandise) - 0.1%
4,000 Grupo Sanborns SA (Series B1)* $ 8,865
------------
Retail (Specialty) - 0.5%
23,215 Cifra, SA de CV (Series C)* $ 44,200
------------
Services (Advertising/Marketing) - 0.6%
750 Cheil Communications Inc. $ 56,737
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 27
<PAGE>
Emerging Markets Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Services (Commercial & Consumer) - 0.5%
3,580 Hansol CSN $ 44,297
------------
Textiles (Home Furnishings) - 0.5%
19,000 Far Eastern Textile Ltd. $ 45,404
------------
Total Consumer Cyclicals $ 631,460
------------
Consumer Staples - 14.3%
Broadcasting (Television/Radio/Cable) - 9.6%
118,000 ABS-CBN Broadcasting Corp. (A.D.R.)* $ 146,402
549,000 Benpres Holdings Corp.* 83,099
700 Benpres Holdings Corp. (G.D.R.) (144A)* 2,188
350 Ceske Radiokomunikace (G.D.R.)* 12,775
12,000 Globo Cabo SA (A.D.R.)* 216,000
18,455 Grupo Radio Centro SA de CV (A.D.R.)* 154,561
1,973 Grupo Televisa SA (G.D.R.)* 134,657
1,340 Matav-Cable System Media Ltd. 38,736
7,700 TV Azteca, SA de CV (A.D.R.) 69,300
------------
$ 857,718
------------
Entertainment - 0.5%
10,579 Corporacion Interamericana de
Entretenimiento SA (Series B)* $ 42,260
------------
Foods - 2.6%
1,900 Cheil Jedang Corp. $ 219,199
3,800 Thai Union Frozen Products Public Co. Ltd. 14,427
------------
$ 233,626
------------
Restaurants - 0.6%
43,500 Kentucky Fried Chicken Bhd. $ 57,237
------------
Retail Stores (Food Chains) - 0.3%
6,000 President Chain Store Corp. $ 26,478
------------
Specialty Printing - 0.7%
458,000 Paramount Publishing Group $ 61,864
------------
Total Consumer Staples $ 1,279,183
------------
Energy - 1.1%
Oil & Gas (Refining & Marketing) - 1.1%
2,400 Bharat Petroleum Corp., Ltd. $ 21,661
2,035 Hindustan Petroleum Corp., Ltd. (New Shares)* 8,218
2,293 SK Corp. 69,466
------------
Total Energy $ 99,345
------------
Financial - 13.9%
Banks (Major Regional) - 6.9%
1,594,000 Akbank T.A.S. $ 47,021
6,000 Bangkok Bank Ltd. 15,133
375,000 Bank International* 8,050
11,020 Grupo Financiero Banamex Accival (Class O)* 44,196
36,000 JCG Holdings Ltd. 20,261
3,191 Kookmin Bank 50,022
9,400 Malayan Banking Bhd. 33,395
83,200 National Finance Public Co., Ltd.* 37,000
72,000 PT Lippo Bank Tbk (Certificate of Entitlement)* 0
252,000 PT Lippo Bank Tbk (Local Shares)* 9,016
2,725 Shinhan Bank 29,518
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Banks (Major Regional) - (continued)
3,850 State Bank of India (G.D.R.) (144A) $ 47,548
22,500 Thai Farmers Bank, Ltd.* 37,634
1,426,400 Turkiye Is Bankasi 68,375
3,380 Uniao de Bancos Brasileiros SA (G.D.R.) 101,822
2,096,464 Yapi ve Kredi Bankasi AS 64,741
------------
$ 613,732
------------
Consumer Finance - 0.6%
28,300 African Bank Investments Ltd.* $ 58,393
------------
Financial (Diversified) - 4.9%
168,000 Ayala Corp. $ 48,983
10,000 Bank of East Asia* 27,787
7,100 Great Eagle Holdings Ltd. 12,604
2,300 Henderson Land Development 14,764
7,500 Housing Development Finance Corp. Ltd. 49,310
3,731 Imperial Holdings Ltd.* 40,795
200 Korea Development Investment Finance* 11,273
132,000 Land & General Bhd. 58,358
11,000 New World Development Co., Ltd. 24,764
11,200 Pakistan Investment Fund Inc. 26,600
24,000 Public Finance Bhd. 27,284
13,000 WEBS - Malaysia Index Series 91,812
------------
$ 434,334
------------
Investment Banking/Brokerage - 1.0%
21,600 AMMB Holdings Bhd. $ 51,726
3,900 Korea Technology Banking Co.* 37,781
------------
$ 89,507
------------
Investment Management - 0.5%
760,000 Haci Omer Sabanci Holding AS $ 44,137
------------
Total Financial $ 1,240,103
------------
Healthcare - 1.6%
Biotechnology - 0.9%
2,500 Dr. Reddy's Laboratories Ltd.* $ 82,874
------------
Healthcare (Drugs/Major Pharmaceuticals) - 0.7%
100 Cipla Ltd. $ 3,195
200 Cipla Ltd. (New Shares)* 6,379
1,300 E. Merck (India) Ltd. 19,126
1,500 Knoll Pharmaceutical Ltd.* 18,410
400 Sun Pharmaceutical Industries, Ltd. 15,747
------------
$ 62,857
------------
Total Healthcare $ 145,731
------------
Technology - 31.3%
Communications Equipment - 4.2%
560 AudioCodes Ltd.* $ 51,520
200 Comverse Technology, Inc.* 28,950
5,000 Datacraft Asia Ltd. 41,500
1,225 Gilat Satellite Networks Ltd.* 145,469
470 Insung Information* 16,060
1,310 Nice Systems Ltd. (A.D.R.)* 64,436
700 Orckit Communications Ltd.* 24,019
------------
$ 371,954
------------
</TABLE>
28 The accompanying notes are an integral part of these financial statements.
<PAGE>
Emerging Markets Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Computers (Hardware) - 0.9%
54,000 Great Wall Technology Co. (Class H)* $ 52,447
2,000 Synnex Technology International Corp. 13,127
160 Trigem Computer, Inc. 17,754
------------
$ 83,328
------------
Computers (Networking) - 0.6%
15,000 Accton Technology Corp.* $ 50,900
------------
Computers (Peripherals) - 1.7%
3,312 Acer Periphals, Inc. $ 13,719
500 DSP Group, Inc.* 46,500
1,810 Daou Technology Inc.* 62,963
668 Korea Data System 7,648
3,000 Systex Corp.* 20,456
------------
$ 151,286
------------
Computers (Software & Services) - 15.1%
8,700 Art-In Internet Technologies and Electronic
Commerce, Ltd.* $ 20,689
3,400 BFL Software Ltd.* 86,837
485 Check Point Software Technologies Ltd.* 96,394
5,400 DSQ Software, Ltd.* 103,407
1,890 Formula Systems Ltd. (A.D.R.)* 79,262
3,400 HCL Technologies Ltd.* 45,333
140 Infosys Technologies Ltd. 46,719
74,000 I-ONE.NET International 40,210
12,000 Ixchange Technology Holdings* 50,690
800 Mastek Ltd. 84,703
900 Mastek Ltd. (Bonus Shares)* 95,208
1,600 NIIT Ltd. 121,951
1,480 Satyam Computer Services 74,817
280 Satyam Computer Services (Bonus Shares) 14,143
21,000 Softline Ltd.* 33,607
1,500 Starmedia Network Inc.* 60,094
3,300 Tecnomatix Technologies Ltd.* 94,875
600 VisualSoft Ltd. 107,903
5,500 VocalTec Communications, Ltd.* 92,125
------------
$ 1,348,967
------------
Electronics (Component Distributors) - 3.4%
8,000 ACER Sertek Inc. $ 46,901
3,000 Asustek Computer, Inc. 31,639
7,000 Hana Microelectronics Public Co., Ltd.* 33,453
1,725 L.G. Electronics 71,400
9,621 Phoenixtec Power Co., Ltd. 18,546
1,250 Samsung Corp.* 18,714
119,000 TCL International Holdings, Ltd.* 83,431
------------
$ 304,084
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Electronics (Semiconductors) - 2.3%
2,000 Ambit Microsystems Corp. $ 14,848
1,000 Hon Hai Precision Industry* 7,456
2,000 Hyundai Electronics* 42,448
690 Orbotech Ltd.* 53,475
8,000 Taiwan Semiconductor Manufacturing Co.* 42,568
4,000 Unisem Bhd. 25,684
6,000 United Microelectronics Corporation, Ltd.* 21,411
------------
$ 207,890
------------
Photography/Imaging - 0.2%
62,000 PT Modern Photo Tbk (Local Shares)* $ 21,295
------------
Services (Computer Systems) - 2.2%
22,239 Dimension Data Holdings Ltd.* $ 139,468
44,000 Founder Hong Kong, Ltd.* 53,772
------------
$ 193,240
------------
Services (Data Processing) - 0.7%
6,500 Shinawatra Computer Co., Plc $ 61,436
------------
Total Technology $ 2,794,380
------------
Transportation - 0.8%
Railroads - 0.6%
31,000 Malaysia International Shipping Bhd. $ 50,987
------------
Shipping - 0.2%
43,000 Far Eastern Silo & Shipping Corp. $ 18,359
------------
Total Transportation $ 69,346
------------
Utilities - 0.4%
Electric Companies - 0.4%
300 BSES, Ltd. $ 1,317
1,300 Korea Electric Power (A.D.R.) 21,775
3,500 Manila Electric Co. (B Shares) 9,988
------------
Total Utilities $ 33,080
------------
TOTAL COMMON STOCKS
(Cost $6,550,746) $ 8,553,843
------------
RIGHTS/WARRANTS - 0.5%
592 Acer Peripherals, Inc., 1/20/00* $ 2,245
72,000 PT Lippo Bank, 4/15/02* --
20,000 Queenbee Restaurant, 3/24/03* 8,437
79,900 Siam Commercial Bank, 5/10/02* 37,123
------------
TOTAL RIGHTS/WARRANTS
(Cost $35,208) $ 47,805
------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $6,790,477) (a) $ 8,924,260
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 29
<PAGE>
Emerging Markets Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
* Non-income producing security.
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 December 31, 1999, the
value of these securities amounted to $163,320 or 1.7% of total net assets.
(a) Distribution of investments by country of issue, as percentage of total
equity holdings, is as follows:
<TABLE>
<S> <C>
India 14.9%
South Korea 13.6
Mexico 11.3
Brazil 9.2
Israel 8.5
Malaysia 6.7
Philippines 4.8
Indonesia 4.6
Taiwan 4.2
South Africa 4.1
Thailand 4.0
Hong Kong 3.3
Turkey 3.1
United States 1.9
Singapore 1.8
Greece 1.6
Others (Individually less than 1%) 2.4
------
100.0%
------
</TABLE>
30 The accompanying notes are an integral part of these financial statements.
<PAGE>
Europe Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
PREFERRED STOCK - 1.9%
380 SAP AG $ 229,293
------------
Total Preferred Stock
(Cost $141,363) $ 229,293
------------
COMMON STOCKS - 98.1%
Basic Materials - 0.7%
Chemicals - 0.7%
1,600 BASF AG $ 82,522
------------
Total Basic Materials $ 82,522
------------
Capital Goods - 9.2%
Aerospace/Defense - 1.0%
17,200 British Aerospace Plc $ 113,078
------------
Engineering & Construction - 0.4%
460 Technip $ 47,172
------------
Machinery (Diversified) - 3.1%
22,700 Invensys Plc $ 122,652
2,400 Sidel SA (Bearer Shares) 247,808
------------
$ 370,460
------------
Manufacturing (Diversified) - 3.4%
1,650 Mannesmann AG $ 402,235
------------
Manufacturing (Specialized) - 0.5%
3,800 Tomra Systems ASA $ 64,540
------------
Trucks & Parts - 0.8%
1,300 Valeo $ 100,312
------------
Total Capital Goods $ 1,097,797
------------
Communication Services - 15.3%
Cellular/Wireless Telecommunications - 4.8%
3,800 Libertel NV* $ 99,526
2,700 Sonera Group Plc 189,084
13,500 Telecom Italia Mobile SpA 64,324
44,000 Vodafone AirTouch Plc 217,484
------------
$ 570,418
------------
Telecommunications (Long Distance) - 1.5%
7,000 Cable & Wireless Plc $ 118,272
950 KPNQwest* 63,257
------------
$ 181,529
------------
Telephone - 9.0%
14,125 British Telecom Plc $ 342,014
100 British Telecom Plc (A.D.R.) 23,800
7,400 Global Telesystems Group, Inc.* 256,225
200 Swisscom AG 80,889
4,000 Telecom Italia Mobile SpA 44,686
11,522 Telefonica SA* 287,846
468 Telefonica SA (A.D.R.) 36,898
------------
$ 1,072,358
------------
Total Communication Services $ 1,824,305
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Consumer Cyclicals - 5.0%
Services (Commercial & Consumer) - 5.0%
100 Altran Technologies SA $ 60,441
8,000 Hays Plc 127,673
27 Kuoni Reisen Holding AG (Series B) (Registered) 112,083
2,400 TNT Post Group NV 68,782
2,468 Vivendi 222,883
------------
$ 591,862
------------
Total Consumer Cyclicals $ 591,862
------------
Consumer Staples - 10.7%
Broadcasting (Television/Radio/Cable) - 4.6%
800 Canal Plus $ 116,450
1,600 NDS Group Plc (A.D.R.)* 48,800
1,800 PT Multimedia Servicos* 102,393
1,700 Sogecable* 108,572
1,400 United Pan-Europe Communications NV* 179,107
------------
$ 555,322
------------
Entertainment - 1.4%
5,000 Pearson Plc $ 162,742
------------
Foods - 1.3%
350 Group Danone $ 82,502
9,714 Unilever Plc 71,394
------------
$ 153,896
------------
Restaurants - 1.1%
10,000 Compass Group Plc $ 137,301
------------
Retail Stores (Food Chains) - 1.1%
700 Carrefour Supermarch SA $ 129,112
------------
Services (Employment) - 1.2%
180 Adecco SA $ 140,175
------------
Total Consumer Staples $ 1,278,548
------------
Energy - 4.4%
Oil (International Integrated) - 2.0%
28,000 Shell Transport & Trading Co. $ 232,700
------------
$ 232,700
------------
Oil & Gas (Refining & Marketing) - 2.4%
13,500 ENI SpA $ 74,252
300 ENI SpA (A.D.R.) 16,538
4,250 Polski Koncern Nafto (G.D.R.)* 53,125
798 Total Fina SA 106,512
570 Total Fina SA (A.D.R.)* 39,473
------------
$ 289,900
------------
Total Energy $ 522,600
------------
Financial - 20.5%
Banks (Major Regional) - 8.5%
20,000 Banca Fideuram SpA $ 236,929
3,200 Banca Popolare di Brescia 283,186
12,060 Banco Santander Central Hispano SA 136,551
800 Deutsche Pfandbriefbank AG 59,796
70 Julius Baer Holding AG 211,455
7,000 Svenska Handelbanken 88,024
------------
$ 1,015,941
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 31
<PAGE>
Europe Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Banks (Money Center) - 2.0%
11,000 Lloyds TSB Group Plc $ 136,638
5,500 Royal Bank Of Scotland Group 97,370
------------
$ 234,008
------------
Banks (Regional) - 0.5%
5,000 Halifax Plc $ 55,970
------------
Financial (Diversified) - 2.1%
3,500 Fortis NV $ 126,045
400 Marschollek, Lautenschlaeger Und
Partner AG 120,882
------------
$ 246,927
------------
Insurance (Life/Health) - 2.1%
10,000 Mediolanum SpA $ 130,956
6,500 Prudential Corp. Plc 126,833
------------
$ 257,789
------------
Insurance (Multi-Line) - 2.3%
150 Allianz AG $ 50,468
690 Axa SA 96,198
300 Axa SA (A.D.R.) 21,300
180 Zurich Versicherungsgesellschaft
(Registered Shares) 102,644
------------
$ 270,610
------------
Insurance (Property/Casualty) - 1.2%
4,750 Skandia Forsakrings AB* $ 143,466
------------
Investment Banking/Brokerage - 0.3%
450 Consors Discount Broker AG* $ 37,625
------------
Investment Management - 1.5%
15,500 Amvescap Plc $ 180,267
------------
Total Financial $ 2,442,603
------------
Healthcare - 9.4%
Biotechnology - 1.8%
5,000 Celltech Chiroscience Plc* $ 42,725
2,300 Qiagen NV* 176,571
------------
$ 219,296
------------
Healthcare (Drugs/Major
Pharmaceuticals) - 6.0%
2,925 Aventis SA* $ 169,723
5,100 Glaxo Wellcome Plc 144,495
400 Glaxo Wellcome Plc (A.D.R.) 22,350
60 Novartis AG 88,099
200 Novartis AG (A.D.R.) 14,688
12 Roche Holdings AG 142,435
200 Roche Holdings AG (A.D.R.) 23,738
7,500 Smithkline Beecham Plc 95,101
300 Smithkline Beecham Plc (A.D.R.) 19,331
------------
$ 719,960
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare (Medical Products/Supplies) - 1.6%
30,000 Biora AB* $ 153,014
3,500 Biora AB (A.D.R.)* 31,500
------------
$ 184,514
------------
Total Healthcare $ 1,123,770
------------
Technology - 19.4%
Communications Equipment - 4.9%
500 Alcatel SA $ 114,838
1,600 Ericsson LM Telephone Services (Class B) 102,856
1,700 Nokia AB 307,907
300 Nokia AB (A.D.R.) 57,000
------------
$ 582,601
------------
Computers (Networking) - 0.8%
800 Equant NV* $ 90,823
------------
Computers (Software & Services) - 6.3%
350 Brokat Infosystems AG* $ 72,983
600 Cap Gemini SA 152,311
4,433 Dassault Systemes SA 288,923
470 GFI Informatique 60,555
1,200 Lernout & Hauspie Speech Products NV* 55,500
1,900 Tietoenator Oyj (B Shares) 116,752
------------
$ 747,024
------------
Electronics (Component Distributors) - 2.1%
2,000 Siemens AG $ 255,867
------------
Electronics (Semiconductors) - 0.8%
620 STMicroelectronics NV $ 95,432
------------
Services (Computer Systems) - 3.0%
4,570 Getronics NV $ 364,605
------------
Services (Data Processing) - 1.5%
300 Infonet Services Corp.* $ 7,875
13,880 Merkantildata ASA 168,137
------------
$ 176,012
------------
Total Technology $ 2,312,364
------------
Transportation - 1.3%
Railways - 1.3%
61,766 Stagecoach Holdings Plc $ 158,635
------------
Total Transportation $ 158,635
------------
Utilities - 2.2%
Electric Companies - 1.9%
500 Endesa SA (A.D.R.) $ 10,094
300 Scottish Power Plc (A.D.R.) 8,400
11,500 Union Electrica Fenosa SA 200,876
------------
$ 219,370
------------
Power Producers (Independent) - 0.3%
6,200 Thus Plc* $ 39,158
------------
Total Utilities $ 258,528
------------
</TABLE>
32 The accompanying notes are an integral part of these financial statements.
<PAGE>
Europe Portfolio
PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C> <C>
TOTAL COMMON STOCKS
(Cost $8,939,377) $ 11,693,534
------------
TOTAL INVESTMENT IN SECURITIES
(Cost $9,080,740)(a) $ 11,922,827
------------
* Non-income producing security.
</TABLE>
<TABLE>
<S> <C>
(a) Distribution of investments by country of issue, as a
percentage of total equity holdings, is as follows:
United Kingdom 23.5%
France 18.8
Germany 11.0
Netherlands 9.0
Switzerland 7.7
Italy 7.1
Spain 6.5
Finland 5.6
Sweden 4.4
United States 3.1
Norway 2.0
Others (individually less than 1%) 1.3
------
100.0%
------
</TABLE>
The accompanying notes are an integral part of these financial statements. 33
<PAGE>
International Growth Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE INVESTMENTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 96.1%
CONVERTIBLE CORPORATE BOND - 0.6%
$ 150,000 Finlayson Global Corp., Ltd. 0.0%,
2/19/04 (144A)* $ 391,095
------------
Total Convertible Corporate Bond $ 391,095
------------
(Cost $156,074)
Shares
PREFERRED STOCKS - 2.7%
55,179 News Corp Ltd. $ 472,737
1,000,000 Petrobras Brasileiro SA 254,636
550 SAP AG 331,872
3,500 Telecomunicacoes Brasileiras (A.D.R.) 449,750
8,600 Tele Sudeste Celular Participacoes (A.D.R.) 333,788
------------
Total Preferred Stocks
(Cost $1,323,383) $ 1,842,783
------------
COMMON STOCKS - 92.8%
Basic Materials - 5.0%
Chemicals (Diversified) - 2.6%
21,435 Aventis SA* $ 1,244,682
100,000 WMC Ltd. 551,460
------------
$ 1,796,142
------------
Construction (Cement & Aggregates) - 1.3%
55,002 Cemex SA (RPO) $ 307,663
430 Holderbank Financiere Glarus AG
(Bearer Shares) 588,708
------------
$ 896,371
------------
Paper & Forest Products - 1.1%
18,000 Kymmene OY $ 761,557
------------
Total Basic Materials $ 3,454,070
------------
Capital Goods - 7.8%
Aerospace/Defense - 1.3%
78,000 British Aerospace Plc $ 512,793
11,000 Thomson CSF 363,341
------------
$ 876,134
------------
Electrical Equipment - 0.8%
4,500 ABB Ltd.* $ 550,383
------------
Machinery (Diversified) - 0.6%
69,000 Invensys Plc $ 372,819
------------
Manufacturing (Diversified) - 2.5%
7,000 Mannesmann AG $ 1,706,452
------------
Office Equipment & Supplies - 1.9%
23,000 Canon, Inc. $ 913,967
9,000 Societe BIC SA 409,609
------------
$ 1,323,576
------------
Trucks & Parts - 0.7%
6,500 Valeo $ 501,560
------------
Total Capital Goods $ 5,330,924
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Communication Services - 15.4%
Cellular/Wireless Telecommunications - 6.5%
13,000 Libertel NV* $ 340,485
50 NTT Mobile Communication Network, Inc. 1,923,265
10,000 Orange Plc* 339,052
7,210 SK Telecom., Ltd. (A.D.R.) 276,684
13,500 Sonera Group Plc 945,419
122,500 Vodaphone Group Plc 605,495
------------
$ 4,430,400
------------
Telecommunications (Long Distance) - 1.5%
42,000 Cable & Wireless Optus Plc $ 709,634
6,500 Colt Telecom Group Plc* 335,562
------------
$ 1,045,196
------------
Telephone - 7.4%
35,514 British Telecom Plc $ 859,913
1,400 Deltathree.com, Inc.* 36,050
3,000 Deutsche Telekom* 213,659
20,000 Global Telesystems Group, Inc.* 692,500
2,000 Korea Telecom Corp. (A.D.R.) 149,500
16 Nippon Telegraph & Telephone Corp. 274,053
13,000 Philippine Long Distance Telephone Co. (A.D.R.) 336,375
400 Swisscom 161,779
105,000 Telecome Italia SpA Di Risp 639,919
30,000 Telecom Italia Mobile SPA 335,146
52,837 Telefonica SA* 1,319,990
------------
$ 5,018,884
------------
Total Communication Services $ 10,494,480
------------
Consumer Cyclicals - 10.9%
Auto Parts & Equipment - 0.2%
6,000 Autoliv Inc. (A.D.R.) $ 175,579
------------
Automobiles - 1.9%
22,100 Bayerische Motoren Werke AG $ 690,136
13,000 Renault SA 626,753
------------
$ 1,316,889
------------
Building Materials - 0.3%
46,707 Williams Plc $ 212,003
------------
Consumer (Jewelry, Novelties, & Gifts) - 0.3%
20,000 Bulgari SpA $ 179,711
------------
Hardware & Tools - 0.7%
52,000 Makita Corp. $ 468,239
------------
Household Furnishings & Appliances - 4.0%
30,000 Fisher & Paykel Industries Ltd. $ 114,428
4,150 Ryohin Keikaku Ltd. 833,087
6,000 Sony Corp. 1,779,387
------------
$ 2,726,902
------------
Leisure Time (Products) - 1.5%
70,000 Berjaya Sports Toto Bhd. $ 151,053
4,000 Club Mediterranee SA* 462,575
57,000 Tabcor Holdings Ltd. 385,955
------------
$ 999,583
------------
</TABLE>
34 The accompanying notes are an integral part of these financial statements.
<PAGE>
International Growth Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Publishing (Newspapers) - 0.8%
70,000 Reed International Plc $ 525,780
------------
Services (Commercial & Consumer) - 0.9%
6,545 Vivendi $ 591,072
------------
Textiles (Apparel) - 0.3%
2,000 Gucci Group NV $ 229,000
------------
Total Consumer Cyclicals $ 7,424,758
------------
Consumer Staples - 7.2%
Beverages (Non-Alcoholic) - 0.7%
58,000 Cadbury Schweppes Plc $ $349,454
3,400 Coca-Cola West Japan Co. Ltd. 143,095
------------
$ 492,549
------------
Broadcasting (Television/Radio/Cable) - 3.2%
1,800 Canal Plus $ 262,012
5,500 Grupo Televisa, SA (A.D.R.)* 375,375
2,000 Nippon Broadcasting System 174,219
14,000 Reuters Group Plc 194,482
9,000 United Pan-Europe Communications NV* 1,151,402
------------
$ 2,157,490
------------
Entertainment - 1.0%
8,000 Oriental Land Co., Ltd. $ 687,482
------------
Foods - 0.9%
1,200 Groupe Danone $ 282,864
164,625 JG Summit Holding, Inc. (Series B)+* 15,482
160 Nestle SA 293,111
------------
$ 591,457
------------
Household Products (Non-Durables) - 1.0%
25,000 Kao Corp. $ 713,272
------------
Retail Stores (Drug Stores) - 0.4%
28,000 Boots Company Plc $ 274,084
------------
Total Consumer Staples $ 4,916,334
------------
Energy - 3.7%
Oil (International Integrated) - 1.3%
110,000 Fortum Oyj $ 507,503
44,000 Shell Transport & Trading Co. 365,672
------------
$ 873,175
------------
Oil & Gas (Refining & Marketing) - 2.4%
64,000 Eni SpA $ 352,009
15,000 Repsol SA (L Shares) 347,838
7,296 Total Fina SA 973,827
------------
$ 1,673,674
------------
Total Energy $ 2,546,849
------------
Financial - 14.4%
Banks (Major Regional) - 5.1%
14,000 Banca Popolare di Brescia $ 1,238,941
45,000 Banca Popolare di Milano 350,407
52,000 Banco Santander Central Hispano, SA 588,776
4,500 Deutsche Pfanbriefbank AG 336,354
29,075 Development Bank of Singapore Ltd. 476,582
9,000 Housing & Commercial Bank, Korea 285,337
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Banks (Major Regional) - (continued)
18,000 Svenska Handelbanken $ 226,349
------------
$ 3,502,746
------------
Banks (Money Center) - 1.9%
14,000 Barclays Plc $ 402,307
31,000 Lloyds TSB Group Plc 385,071
27,000 Royal Bank of Scotland Group 478,000
------------
$ 1,265,378
------------
Banks (Regional) - 0.6%
34,000 Halifax Plc $ 380,597
------------
Financial (Diversified) - 1.7%
20,000 Cheung Kong Holdings Ltd. $ 254,068
11,000 Forits NV 396,141
9,580 Nichiei Co., Ltd. 208,159
55,000 Swire Pacific Ltd. 324,757
------------
$ 1,183,125
------------
Insurance (Life/Health) - 1.3%
9,800 Manulife Financial Corp.* $ 125,258
27,000 Prudential Corp. Plc 526,846
2,000 Union des Assurances Federal 234,914
------------
$ 887,018
------------
Insurance (Multi-Line) - 2.5%
700 Allianz AG $ 235,519
35,000 Allied Zurich Plc 412,709
4,500 Axa 627,378
730 Zurich Allied AG 416,278
------------
$ 1,691,884
------------
Investment Banking/Brokerage - 1.2%
60,000 AMMB Holdings $ 143,684
3,000 Consors Discount Broker AG* 250,830
27,000 Daiwa Securities Group, Inc. 422,560
------------
$ 817,074
------------
Investment Management - 0.1%
13,000 Ashi Bank Ltd. $ 80,161
------------
Total Financial $ 9,807,983
------------
Healthcare - 2.9%
Healthcare (Drugs/Major Pharmaceuticals) - 2.0%
15,000 Glaxo Wellcome Plc $ 424,985
200 Novartis AG 293,663
55 Roche Holdings AG 652,829
------------
$ 1,371,477
------------
Healthcare (Medical Products/Supplies) - 0.9%
22,000 Terumo Corp. $ 587,844
------------
Total Healthcare $ 1,959,321
------------
Technology - 21.2%
Communications Equipment - 4.9%
7,403 ECI Telecommunications Ltd. $ 234,120
3,000 Gilat Satellite Networks Ltd.* 356,250
5,000 Matsushita Communication Industrial Ltd. 1,321,327
8,000 Nokia AB 1,448,973
------------
$ 3,360,670
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 35
<PAGE>
International Growth Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Computers (Hardware) - 0.3%
64,064 Compal Electronics Corp. $ 215,350
------------
Computers (Networking) - 0.9%
5,500 Equant NV* $ 624,406
------------
Computers (Peripherals) - 0.1%
3,006 Korea Data Systems $ 34,415
------------
Computers (Software & Services) - 3.5%
2,800 Check Point Software Technologies Ltd.* $ 556,500
1,900 Softbank Corp. 1,818,733
------------
$ 2,375,233
------------
Electronics (Component Distributors) - 3.8%
5,520 Philips Electronics NV $ 750,678
10,000 Siemens AG 1,279,335
78,000 Toshiba Corp. 595,478
------------
$ 2,625,491
------------
Electronics (Instrumentation) - 0.3%
60,000 Elec & Eltek International Co., Ltd. $ 194,400
------------
Electronics (Semiconductors) - 6.2%
15,000 Fujitsu Ltd. $ 684,154
3,500 Rohm Co., Ltd. 1,438,779
5,000 STMicroelectronics NV 769,616
46,100 Taiwan Semiconductor Manufacturing Co.* 245,299
8,000 Tokyo Electron Ltd. 1,096,212
------------
$ 4,234,060
------------
Services (Computer Systems) - 0.6%
5,500 Getronics NV $ 438,802
------------
Services (Data Processing) - 0.6%
31,000 Merkantildata ASA $ 375,523
------------
Total Technology $ 14,478,350
------------
Transportation - 1.9%
Railroads - 0.8%
160,000 Malaysia International Shipping Bhd. $ 263,158
18,000 Railtrack Group Plc 302,384
------------
$ 565,542
------------
Shipping - 1.1%
15,000 Brambles Industries Ltd. $ 414,806
20,000 Peninsular & Orient Steam Navigation Co. 331,783
------------
$ 746,589
------------
Total Transportation $ 1,312,131
------------
Utilities - 2.4%
Electric Companies - 2.0%
59,125 British Energy Plc* $ 339,041
9,000 British Energy Plc (Class A) 7,269
66,000 British Energy Plc (Deferred Shares)* 0
13,000 Endesa SA 258,113
61,700 Enel SpA* 258,559
68,000 Scottish Power Plc 516,250
------------
$ 1,379,232
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Power Producers (Independent) - 0.4%
6,000 Veba AG $ 292,837
------------
Total Utilities $ 1,672,069
------------
Total Common Stocks $ 63,397,269
------------
(Cost $43,665,840)
WARRANTS - 0.0%
3,000 Cemex SA, 12/13/02* $ 2,533
------------
Total Warrants
(Cost $1,046) $ 2,533
------------
TOTAL INVESTMENT IN SECURITIES
(Cost $45,146,343) (a) $ 65,633,680
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 3.9%
Repurchase Agreement - 3.9%
$2,700,000 Credit Suisse First Boston Group, Inc.,
3.0%, dated 12/31/99, repurchase price
of $2,700,000 plus accrued interest on
1/3/00, collateralized by $2,832,000
U.S. Treasury Bills, 5.737%, 6/29/00 $ 2,700,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $2,700,000) $ 2,700,000
-----------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $47,846,343) $68,333,680
-----------
</TABLE>
+ 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 December 31, 1999, the
value of these securities amounted to $391,095 or 0.6% of total net assets.
* Non-income producing security.
<TABLE>
<S> <C>
(a) Distribution of investments by country of issue, as a percentage of total
equity holdings, is as follows:
Japan 24.6%
United Kingdom 15.5
France 12.2
Germany 8.1
Finland 5.6
Italy 5.1
Netherlands 5.0
Switzerland 4.5
Spain 3.8
Australia 2.8
Israel 1.7
Singapore 1.6
Brazil 1.6
South Korea 1.1
Mexico 1.1
United States 1.1
Others (Individually less than 1%) 4.6
-------
100.0%
-------
</TABLE>
36 The accompanying notes are an integral part of these financial statements.
<PAGE>
Capital Growth Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 95.5%
Basic Materials - 5.9%
Chemicals - 1.5%
46,000 IMC Global Inc. $ 753,250
85,000 Lyondell Chemical Co. 1,083,750
------------
$ 1,837,000
------------
Chemicals (Specialty) - 1.9%
36,000 Borden Chemicals & Plastics, L.P. $ 173,250
23,000 Hercules, Inc. 641,125
83,000 Wellman, Inc. 1,545,875
------------
$ 2,360,250
------------
Gold & Precious Metals Mining - 0.4%
25,000 Barrick Gold Corp. $ 442,187
------------
Metals Mining - 0.3%
15,000 Penn Engineering & Manufacturing Corp. $ 347,344
------------
Paper & Forest Products - 1.8%
25,000 Bowater, Inc. $ 1,357,812
15,500 Georgia-Pacific Group 786,625
------------
$ 2,144,437
------------
Total Basic Materials $ 7,131,218
------------
Capital Goods - 7.0%
Aerospace/Defense - 0.6%
19,500 Cordant Technologies, Inc. $ 643,500
2,600 Precision Castparts Corp. 68,250
------------
$ 711,750
------------
Electrical Equipment - 2.6%
20,000 Molex, Inc. $ 1,133,750
6,000 SCI Systems, Inc.* 493,125
49,000 Vishay Intertechnology, Inc.* 1,549,625
------------
$ 3,176,500
------------
Machinery (Diversified) - 1.2%
54,000 Kaydon Corp. $ 1,447,875
------------
Manufacturing (Diversified) - 0.2%
6,800 Hillenbrand Industries, Inc. $ 215,475
------------
Manufacturing (Specialized) - 1.0%
23,000 Sealed Air Corp.* $ 1,191,688
------------
Metal Fabricators - 0.8%
55,000 Brush Wellman, Inc. $ 924,687
------------
Waste Management - 0.6%
40,000 Waste Management, Inc. $ 687,500
------------
Total Capital Goods $ 8,355,475
------------
Communication Services - 2.3%
Telephone - 2.3%
12,000 Alltel Corp. $ 992,250
14,500 Telephone and Data Systems, Inc. 1,827,000
------------
Total Communication Services $ 2,819,250
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Consumer Cyclicals - 9.5%
Auto Parts & Equipment - 1.4%
27,000 ITT Industries $ 902,813
25,000 Lear Corp.* 800,000
------------
$ 1,702,813
------------
Leisure Time (Products) - 1.6%
143,000 Mattel, Inc. $ 1,876,875
------------
Publishing - 0.8%
55,000 PRIMEDIA, Inc.* $ 907,500
------------
Retail (General Merchandise) - 0.6%
77,000 Kmart Corp.* $ 774,813
------------
Retail (Specialty) - 4.2%
54,000 Blockbuster, Inc. $ 722,250
93,000 Borders Group, Inc.* 1,493,812
71,000 Cole National Corp.* 355,000
154,000 OfficeMax, Inc.* 847,000
50,500 Pep Boys - Manny, Moe & Jack 460,813
168,000 Venator Group, Inc.* 1,176,000
------------
$ 5,054,875
------------
Services (Commercial & Consumer) - 0.9%
35,000 Regis Corp. $ 660,625
99,000 Stewart Enterprises, Inc. 470,250
------------
$ 1,130,875
------------
Total Consumer Cyclicals $ 11,447,751
------------
Consumer Staples - 14.3%
Distributors (Food & Health) - 0.4%
53,000 Bergen Brunswig Corp. $ 440,562
------------
Entertainment - 2.9%
57,000 Viacom, Inc. (Class B) (Non-voting)* $ 3,444,938
------------
Foods - 2.7%
19,000 Hershey Foods Corp. $ 902,500
31,000 Ralston-Ralston Purina Group 864,125
29,000 Sara Lee Corp. 639,813
54,000 Tyson Foods, Inc. 877,500
------------
$ 3,283,938
------------
Housewares - 2.1%
89,000 Newell Rubbermaid Co. $ 2,581,000
------------
Restaurants - 2.6%
91,000 Lone Star Steakhouse & Saloon, Inc.* $ 811,891
58,000 McDonald's Corp. 2,338,125
------------
$ 3,150,016
------------
Retail Stores (Food Chains) - 0.7%
43,000 Kroger Co.* $ 811,625
------------
Services (Employment) - 1.4%
123,000 Modis Professional Services, Inc.* $ 1,752,750
------------
Specialty Printing - 1.5%
100,000 John H. Harland Co. $ 1,831,250
------------
Total Consumer Staples $ 17,296,079
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 37
<PAGE>
Capital Growth Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Energy - 6.5%
Oil (Domestic Integrated) - 0.9%
45,000 Conoco Inc. $ 1,113,750
------------
Oil & Gas (Drilling Equipment) - 2.6%
101,000 R&B Falcon Corp.* $ 1,338,250
21,000 Tidewater Inc. 756,000
29,000 Transocean Offshore, Inc. 976,937
------------
$ 3,071,187
------------
Oil & Gas (Exploration/Production) - 2.5%
27,000 Apache Corp. $ 997,312
25,000 Burlington Resources, Inc. 826,562
50,000 Ocean Energy Inc.* 387,500
61,500 Union Pacific Resources Group, Inc. 784,125
------------
$ 2,995,499
------------
Oil & Gas (Refining & Marketing) - 0.5%
24,000 Tosco Corp. $ 652,500
------------
Total Energy $ 7,832,936
------------
Financial - 12.6%
Banks (Regional) - 2.6%
28,000 Marshall & Ilsley Corp. $ 1,758,750
38,000 North Fork Bancorporation, Inc. 665,000
26,000 TCF Financial Corp. 646,750
------------
$ 3,070,500
------------
Insurance (Life/Health) - 3.1%
36,500 Axa Financial, Inc. $ 1,236,437
106,000 Conseco, Inc. 1,894,750
20,000 UNUM Corp. 641,250
------------
$ 3,772,437
------------
Insurance (Multi-Line) - 0.3%
15,000 Nationwide Financial Services, Inc. $ 419,063
------------
Insurance (Property/Casualty) - 3.6%
49,000 Ace Ltd. $ 817,687
25,000 Allmerica Financial Corp. 1,390,625
41,000 Financial Security Assurance Holdings Ltd. 2,137,125
------------
$ 4,345,437
------------
Investment Banking/Brokerage - 1.6%
19,200 AG Edwards, Inc. $ 615,600
33,000 Paine Webber Group, Inc. 1,280,813
------------
$ 1,896,413
------------
Savings & Loan Companies - 1.4%
55,000 Charter One Financial, Inc. $ 1,051,875
27,000 Washington Mutual, Inc. 702,000
------------
$ 1,753,875
------------
Total Financial $ 15,257,725
------------
Healthcare - 7.2%
Healthcare (Drugs/Major Pharmaceuticals) - 0.9%
23,000 Pharmacia & Upjohn Inc. $ 1,035,000
------------
Healthcare (Hospital Management) - 4.7%
131,000 Columbia/HCA Healthcare Corp. $ 3,839,937
140,000 Health Management Associates, Inc.* 1,872,500
------------
$ 5,712,437
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare (Managed Care) - 1.2%
22,000 Wellpoint Health Networks, Inc.* $ 1,450,625
------------
Healthcare (Medical Products/Supplies) - 0.4%
23,000 Boston Scientific Corp.* $ 503,125
------------
Total Healthcare $ 8,701,187
------------
Technology - 22.8%
Communications Equipment - 3.9%
34,000 ADC Telecommunciations Inc.* $ 2,467,125
27,000 Alcatel (A.D.R.) 1,215,000
54,000 Andrew Corp.* 1,022,625
------------
$ 4,704,750
------------
Computers (Hardware) - 3.6%
116,000 NCR Corp.* $ 4,393,500
------------
Computers (Peripherals) - 2.3%
22,000 Seagate Technology, Inc.* $ 1,024,375
93,000 Storage Technology Corp.* 1,714,688
------------
$ 2,739,063
------------
Computers (Software & Services) - 3.0%
8,000 Adobe Systems, Inc. $ 538,000
36,000 Intuit, Inc.* 2,157,750
2,000 MicroStrategy, Inc.* 420,000
19,000 Parametric Technology Co.* 514,188
------------
$ 3,629,938
------------
Electronics (Semiconductors) - 1.5%
8,000 Etec Systems, Inc.* $ 359,000
18,000 Micron Technology Co.* 1,399,500
------------
$ 1,758,500
------------
Photography/Imaging - 4.7%
8,000 Eastman Kodak Co. $ 530,000
155,000 Imation Corp.* 5,202,188
------------
$ 5,732,188
------------
Services (Computer Systems) - 2.8%
27,000 Investment Technology Group, Inc. $ 776,250
60,000 Keane Inc.* 1,905,000
28,000 SunGard Data Systems, Inc.* 665,000
------------
$ 3,346,250
------------
Services (Data Processing) - 1.0%
24,000 First Data Corp. $ 1,183,500
------------
Total Technology $ 27,487,689
------------
Transportation - 0.5%
Air Freight - 0.5%
17,000 CNF Transportation Inc. $ 586,500
------------
Total Transportation $ 586,500
------------
Utilities - 6.9%
Electric Companies - 4.4%
27,000 Allegheny Energy, Inc. $ 727,312
57,000 Citizens Utilities Co. (Class B) 808,687
30,000 DPL, Inc. 519,375
15,000 DQE, Inc. 519,375
33,000 DTE Energy Co. 1,035,375
</TABLE>
38 The accompanying notes are an integral part of these financial statements.
<PAGE>
Capital Growth Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Electric Companies - (continued)
20,000 Kansas City Power & Light Co. $ 441,250
30,000 NSTAR 1,215,000
------------
$ 5,266,374
------------
Natural Gas - 2.5%
45,000 El Paso Energy Corp. $ 1,746,563
32,000 KeySpan Energy Corp. 742,000
36,500 Questar Corp. 547,500
------------
$ 3,036,063
------------
Total Utilities $ 8,302,437
------------
TOTAL COMMON STOCKS
(Cost $108,756,639) $115,218,247
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 4.5%
Repurchase Agreement - 4.5%
$5,400,000 Credit Suisse First Boston Group, Inc.,
3.0%, dated 12/31/99, repurchase price
of $5,400,000 plus accrued interest on
1/3/00, collateralized by $2,685,000 U.S.
Treasury Notes, 6.375%, 8/15/02 and
$2,832,000 U.S. Treasury Bills, 5.737%,
6/29/00 $ 5,400,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $5,400,000) $ 5,400,000
------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $114,156,639) $120,618,247
------------
*Non-income producing security.
</TABLE>
The accompanying notes are an integral part of these financial statements. 39
<PAGE>
Growth Shares Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 93.2%
Basic Materials - 4.3%
Chemicals (Diversified) - 2.2%
100,521 Monsanto Co. $ 3,581,061
------------
Chemicals (Specialty) - 2.1%
88,287 Minerals Technologies, Inc. $ 3,536,998
------------
Total Basic Materials $ 7,118,059
------------
Capital Goods - 9.7%
Aerospace/Defense - 0.7%
22,800 General Dynamics Corp. $ 1,202,700
------------
Electrical Equipment - 3.6%
130,144 Molex Inc. (Non-voting) $ 5,889,016
------------
Manufacturing (Specialized) - 5.4%
171,400 Sealed Air Corp.* $ 8,880,663
------------
Total Capital Goods $ 15,972,379
------------
Communication Services - 1.2%
Telecommunications (Long Distance) - 1.2%
38,000 AT&T Corp. $ 1,928,500
------------
Total Communication Services $ 1,928,500
------------
Consumer Cyclicals - 6.5%
Retail (Discounters) - 4.7%
343,675 Dollar General Corp. $ 7,818,606
------------
Services (Commercial & Consumer) - 1.8%
55,800 Cintas Corp. $ 2,964,375
------------
Total Consumer Cyclicals $ 10,782,981
------------
Consumer Staples - 46.7%
Beverages (Non-Alcoholic) - 4.9%
140,172 The Coca-Cola Co. $ 8,165,019
------------
Broadcasting (Television/Radio/Cable) - 20.1%
107,400 Liberty Media Group* $ 6,094,950
191,000 Comcast Corp. (Non-voting) 9,657,438
268,700 Infinity Broadcasting Corp.* 9,723,581
100,500 MediaOne Group, Inc.* 7,719,656
------------
$ 33,195,625
------------
Foods - 4.7%
92,778 Wrigley (Wm.) Jr. Co. $ 7,694,775
------------
Personal Care - 4.7%
190,564 The Gillette Co. $ 7,848,855
------------
Restaurants - 4.7%
192,952 McDonald's Corp. $ 7,778,377
------------
Retail (Drug Stores) - 5.2%
292,114 Walgreen Co. $ 8,544,335
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Retail Stores (Food Chains) - 2.4%
206,150 Kroger Co.* $ 3,891,081
------------
Total Consumer Staples $ 77,118,067
------------
Financial - 15.0%
Banks (Major Regional) - 1.4%
31,900 Fifth Third Bancorp $ 2,340,662
------------
Insurance (Multi-Line) - 3.5%
53,920 American International Group, Inc. $ 5,830,100
------------
Insurance (Property/Casualty) - 9.9%
114 Berkshire Hathaway, Inc. (Class A)* $ 6,395,400
1,298 Berkshire Hathaway, Inc. (Class B)* 2,375,340
103,100 Progressive Corp. 7,539,188
------------
$ 16,309,928
------------
Investment Banking/Brokerage - 0.2%
8,074 Charles Schwab Corp. $ 309,840
------------
Total Financial $ 24,790,530
------------
Healthcare - 3.0%
Healthcare (Drugs/Major
Pharmaceuticals) - 3.0%
35,716 Merck & Co., Inc. $ 2,395,204
79,818 Pfizer, Inc. 2,589,096
------------
Total Healthcare $ 4,984,300
------------
Technology - 6.8%
Communications Equipment - 4.9%
265,100 American Tower Corp.* $ 8,102,119
------------
Computers (Peripherals) - 0.3%
4,000 EMC Corp.* $ 437,000
------------
Computers (Software & Services) - 1.6%
23,124 Microsoft Corp.* $ 2,699,727
------------
Total Technolgy $ 11,238,846
------------
TOTAL COMMON STOCKS
(Cost $147,572,718) $153,933,662
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 6.8%
Repurchase Agreement- 6.8%
$11,300,000 Credit Suisse First Boston Group, Inc.,
6.375%, dated 12/31/99, repurchase
price of $11,300,000 plus accrued interest
on 1/3/00, collateralized by $11,237,000
U.S. Treasury Notes, 6.375%, 8/15/02 $ 11,300,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $11,300,000) $ 11,300,000
------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $158,872,718) $165,233,662
------------
*Non-income producing security.
</TABLE>
40 The accompanying notes are an integral part of these financial statements.
<PAGE>
Real Estate Growth Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 91.9%
Real Estate Investment Trusts - 86.5%
54,100 Archstone Communities Trust $ 1,109,050
30,200 AvalonBay Communities, Inc. 1,036,238
16,000 Boston Properties, Inc. 498,000
31,200 Brandywine Realty Trust 510,900
25,500 Burnham Pacific Property, Inc. 239,063
30,700 Camden Property Trust 840,413
20,500 Charles E. Smith Residential Realty, Inc. 725,188
2,400 Corporate Office Properties Trust 18,300
31,000 Cousins Properties, Inc. 1,052,063
17,100 Crescent Real Estate Equities, Inc. 314,213
76,800 Developers Diversified Realty Corp. 988,800
53,000 Duke-Weeks Realty Corp. 1,033,500
20,000 Entertainment Properties Trust 263,749
76,557 Equity Office Properties Trust 1,885,215
23,500 Equity Residential Property Trust 1,003,155
27,700 Essex Property Trust, Inc. 941,800
30,500 Franchise Finance Corporation of America 730,094
14,300 General Growth Properties, Inc. 400,400
22,300 Highwoods Properties, Inc. 518,475
30,000 Home Properties of New York, Inc. 823,125
54,890 Host Marriott Corp. 452,843
54,100 The Macerich Co. 1,125,956
47,900 Mack-Cali Realty Corp. 1,248,394
52,600 Mission West Properties Inc. 407,650
16,300 Pacific Gulf Properties, Inc. 330,075
18,500 Parkway Properties, Inc. 533,031
8,300 Phillips International Realty Corp. 136,431
42,100 Prentiss Properties Trust 884,100
53,300 Public Storage, Inc. 1,209,244
56,600 Reckson Associates Realty Corp. 1,160,300
23,500 Simon Property Group, Inc. 539,031
28,000 Spieker Properties, Inc. 1,020,250
39,400 Starwood Hotels & Resorts Trust 925,900
22,100 Vornado Realty Trust 718,250
-----------
Total Real Estate Investment Trusts $25,623,196
-----------
Real Estate Services - 5.4%
43,200 Catellus Development Corp.* $ 553,500
62,700 Trizec Hahn Corp. 1,058,063
-----------
Total Real Estate Services $ 1,611,563
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $29,321,825) $27,234,759
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 8.1%
Repurchase Agreement - 8.1%
$2,400,000 Credit Suisse First Boston Group, Inc.,
3.0%, dated 12/31/99 repurchase price of
$2,400,000 plus accrued interest on
1/3/00 collateralized by $2,517,000 U.S.
Treasury Bills, 5.737%, 6/29/00 $ 2,400,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $2,400,000) $ 2,400,000
------------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $31,721,825) $ 29,634,759
------------
* Non-income producing security.
</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 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 98.6%
Basic Materials - 3.6%
Aluminum - 0.8%
19,900 Alcoa, Inc. $ 1,651,700
------------
Chemicals - 1.4%
8,200 Dow Chemical Co. $ 1,095,725
24,854 E.I. du Pont de Nemours & Co. 1,637,257
5,000 Rohm & Hass Co. 203,438
------------
$ 2,936,420
------------
Gold & Precious Metals Mining - 0.4%
29,100 Newmont Mining Corp. $ 712,950
------------
Iron & Steel - 0.3%
8,400 Nucor Corp. $ 460,425
11,800 Steel Dynamics, Inc.* 188,063
------------
$ 648,488
------------
Metals Mining - 0.7%
20,000 Phelps Dodge Corp. $ 1,342,500
------------
Total Basic Materials $ 7,292,058
------------
Capital Goods - 4.1%
Aerospace/Defense - 1.0%
15,600 Boeing Co. $ 648,375
8,800 General Dynamics Corp. 464,200
41,000 Lockheed Martin Corp. 896,875
------------
$ 2,009,450
------------
Electrical Equipment - 0.5%
12,000 Emerson Electric Co. $ 688,500
2,700 General Electric Co. 417,825
------------
$ 1,106,325
------------
Machinery (Diversified) - 1.6%
34,900 Caterpillar, Inc. $ 1,642,481
15,300 Deere & Co. 663,638
15,200 Ingersoll-Rand Co. 836,950
4,800 The Timken Co. 98,100
------------
$ 3,241,169
------------
Manufacturing (Diversified) - 0.6%
10,500 Illinois Tool Works, Inc. $ 709,406
9,200 Johnson Controls, Inc. 523,250
------------
$ 1,232,656
------------
Manufacturing (Specialized) - 0.1%
3,300 Diebold Inc. $ 77,550
------------
Office Equipment & Supplies - 0.3%
18,600 Canon Inc. (A.D.R.) $ 754,463
------------
Total Capital Goods $ 8,421,613
------------
Communication Services - 12.6%
Cellular/Wireless Telecommunications - 1.1%
21,400 Sprint Corp. (PCS Group)* $ 2,193,500
------------
Telecommunications (Long Distance) - 1.8%
56,500 Sprint Corp. $ 3,803,156
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Telephone - 9.7%
14,123 Alltel Corp. $ 1,167,796
46,300 Bell Atlantic Corp. 2,850,344
77,600 BellSouth Corp. 3,632,650
37,400 GTE Corp. 2,639,037
123,476 SBC Communications, Inc. 6,019,455
48,200 US West Communications Group, Inc. 3,470,400
------------
$ 19,779,682
------------
Total Communication Services $ 25,776,338
------------
Consumer Cyclicals - 11.9%
Automobiles - 2.0%
17,613 DaimlerChrysler AG $ 1,378,217
49,000 Ford Motor Co. 2,618,437
------------
$ 3,996,654
------------
Household Furnishings & Appliances - 1.4%
10,000 Sony Corp. (A.D.R.) $ 2,847,500
------------
Leisure Time (Products) - 0.1%
6,400 Hasbro, Inc. $ 122,000
------------
Publishing - 1.8%
101,000 John Wiley & Sons, Inc. $ 1,691,750
33,600 McGraw-Hill Co., Inc. 2,070,600
------------
$ 3,762,350
------------
Publishing (Newspapers) - 0.8%
6,600 Belo (A.H.) Corp. $ 125,813
19,900 Central Newspapers, Inc. 783,563
11,200 Dow Jones & Co., Inc. 761,600
------------
$ 1,670,976
------------
Retail (Department Stores) - 1.5%
14,800 Harcourt General, Inc. $ 595,700
17,000 Kohl's Corp.* 1,227,187
34,400 May Department Stores Co. 1,109,400
3,254 Neiman Marcus Group Inc.* 87,655
------------
$ 3,019,942
------------
Retail (Discounters) - 0.6%
53,375 Dollar General Corp. $ 1,214,281
------------
Retail (General Merchandise) - 2.4%
38,400 Dayton Hudson Corp. $ 2,820,000
29,000 Wal-Mart Stores, Inc. 2,004,625
------------
$ 4,824,625
------------
Retail (Specialty) - 0.1%
13,000 Barnes & Noble, Inc.* $ 268,125
------------
Retail (Specialty-Apparel) - 0.7%
33,300 Gap, Inc. $ 1,531,800
------------
Services (Advertising/Marketing) - 0.5%
11,100 Omnicom Group $ 1,110,000
------------
Total Consumer Cyclicals $ 24,368,253
------------
Consumer Staples - 10.6%
Beverages (Non-Alcoholic) - 0.6%
37,900 PepsiCo, Inc. $ 1,335,975
------------
</TABLE>
42 The accompanying notes are an integral part of these financial statements.
<PAGE>
Growth and Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Broadcasting (Television/Radio/Cable) - 2.1%
41,400 CBS Corp. $ 2,647,013
6,800 Cox Communication Inc.* 350,200
16,000 MediaOne Group, Inc.* 1,229,000
------------
$ 4,226,213
------------
Distributors (Food & Health) - 0.4%
22,800 Sysco Corp. $ 902,025
------------
Foods - 4.1%
44,200 Bestfoods $ 2,323,261
28,800 Campbell Soup Co. 1,114,200
19,700 ConAgra, Inc. 444,481
25,600 General Mills, Inc. 915,200
28,600 H.J. Heinz Co. 1,138,638
19,800 Hershey Foods Corp. 940,500
2,300 Nestle SA (A.D.R.) 210,666
15,000 Ralston-Ralston Purina Group 418,125
39,000 Sara Lee Corp. 860,437
------------
$ 8,365,508
------------
Household Products (Non-Durables) - 1.0%
29,900 Colgate-Palmolive Co. $ 1,943,500
------------
Restaurants - 0.4%
19,100 McDonald's Corp. $ 769,969
------------
Retail Stores (Drug Stores) - 1.4%
13,400 CVS Corp. $ 535,162
81,300 Walgreen Co. 2,378,025
------------
$ 2,913,187
------------
Retail Stores (Food Chains) - 0.2%
22,700 Kroger Co.* $ 428,463
------------
Services (Employment) - 0.4%
29,100 Robert Half International, Inc.* $ 831,169
------------
Total Consumer Staples $ 21,716,009
------------
Energy - 5.5%
Oil (Domestic Integrated) - 1.4%
22,900 Atlantic Richfield Co. $ 1,980,850
18,000 Conoco, Inc. (Class A) 445,500
16,950 Conoco, Inc. (Class B) 421,631
------------
$ 2,847,981
------------
Oil (International Integrated) - 3.4%
30,700 Chevron Corp. $ 2,659,388
40,834 Exxon Mobil Corp. 3,289,689
17,300 Texaco, Inc. 939,606
------------
$ 6,888,683
------------
Oil & Gas (Drilling & Equipment) - 0.7%
14,100 Schlumberger Ltd. $ 793,125
10,000 Smith International, Inc.* 496,875
7,930 Transocean Offshore Inc. 267,134
------------
$ 1,557,134
------------
Total Energy $ 11,293,798
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Financial - 14.5%
Banks (Major Regional) - 4.8%
76,100 The Bank of New York Co., Inc. $ 3,044,000
13,750 Comerica, Inc. 641,953
16,265 Fleet Boston Financial Corp. 566,225
19,500 Huntington Bancshares, Inc. 465,563
53,700 Mellon Financial Corp. 1,829,156
66,000 National City Corp. 1,563,375
22,500 State Street Corp. 1,643,906
------------
$ 9,754,178
------------
Banks (Regional) - 0.7%
16,500 First Tennessee National Corp. $ 470,250
15,400 Zions Bancorporation 911,487
------------
$ 1,381,737
------------
Financial (Diversified) - 0.8%
12,720 Associates First Capital Corp. $ 349,005
9,700 Morgan Stanley, Dean Witter and Co. 1,384,675
------------
$ 1,733,680
------------
Insurance (Life/Health) - 1.3%
59,800 Axa Financial, Inc $ 2,025,725
14,100 ReliaStar Financial Corp. 552,544
------------
$ 2,578,269
------------
Insurance (Multi-Line) - 0.8%
15,487 American International Group, Inc. $ 1,674,532
------------
Insurance (Property/Casualty) - 2.1%
33,000 Chubb Corp. $ 1,858,313
16,400 Exel Ltd. 850,750
15,100 Partnerre Ltd. 489,806
20,900 Safeco Corp. 519,888
17,400 St. Paul Companies, Inc. 586,162
------------
$ 4,304,919
------------
Insurance Brokers - 0.9%
20,150 Marsh & McLennan Co., Inc. $ 1,928,103
------------
Investment Banking/Brokerage - 1.7%
17,200 Merrill Lynch & Co., Inc. $ 1,436,200
51,700 Paine Webber Group, Inc. 2,006,606
------------
$ 3,442,806
------------
Investment Management - 1.2%
17,500 Federated Investors, Inc. $ 351,094
56,500 T. Rowe Price Associates, Inc. 2,086,969
------------
$ 2,438,063
------------
Savings & Loan Companies - 0.2%
17,524 Washington Mutual, Inc. $ 455,624
------------
Total Financial $ 29,691,911
------------
Healthcare - 9.6%
Healthcare (Diversified) - 3.0%
38,700 Abbott Laboratories $ 1,405,294
39,000 Bristol-Myers Squibb Co. 2,503,313
23,200 Johnson & Johnson 2,160,500
------------
$ 6,069,107
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 43
<PAGE>
Growth and Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare (Drugs/Major Pharmaceuticals) - 6.1%
21,400 Eli Lilly & Co. $ 1,423,100
16,800 Merck & Co., Inc. 1,126,650
15,400 Pfizer, Inc. 499,537
10,600 Roche Holdings AG (A.D.R.) 1,258,088
140,200 Schering-Plough Corp. 5,914,687
34,600 SmithKline Beecham Plc (A.D.R.) 2,229,538
------------
$ 12,451,600
------------
Healthcare (Medical Products/Supplies) - 0.5%
38,200 Becton, Dickinson & Co. $ 1,021,850
------------
Total Healthcare $ 19,542,557
------------
Technology - 23.0%
Communications Equipment - 3.5%
8,000 General Instrument Corp.* $ 680,000
8,300 Harris Corp. 221,506
11,300 Lanier Worldwide Inc.* 43,788
32,800 Lucent Technologies, Inc. 2,453,850
26,000 Motorola, Inc. 3,828,500
------------
$ 7,227,644
------------
Computers (Hardware) - 9.4%
91,000 Compaq Computer Corp. $ 2,462,688
31,700 Hewlett-Packard Co. 3,611,819
45,800 IBM Corp. 4,946,400
107,000 Sun Microsystems, Inc.* 8,285,813
------------
$ 19,306,720
------------
Computers (Software & Services) - 2.3%
12,100 Adobe Systems, Inc. $ 813,725
6,600 Aspen Technology, Inc.* 174,487
10,650 BMC Software, Inc.* 851,334
5,500 Microsoft Corp.* 642,125
17,250 Oracle Corp.* 1,933,078
16,500 Peoplesoft, Inc.* 351,656
------------
$ 4,766,405
------------
Electronics (Semiconductors) - 4.0%
21,400 Altera Corp.* $ 1,060,638
40,100 Intel Corp. 3,300,731
38,400 Texas Instruments, Inc. 3,720,000
------------
$ 8,081,369
------------
Equipment (Semiconductors) - 0.5%
7,900 Applied Materials, Inc.* $ 1,000,831
------------
Photography/Imaging - 0.6%
19,600 Eastman Kodak Co. $ 1,298,500
------------
Services (Computer Systems) - 1.1%
23,000 Computer Sciences Corp.* $ 2,176,375
------------
Services (Data Processing) - 1.6%
25,600 Automatic Data Processing, Inc. $ 1,379,200
8,200 DST Systems, Inc.* 625,762
12,600 Electronic Data Systems Corp. 843,413
10,500 Fiserv, Inc.* 402,281
------------
$ 3,250,656
------------
Total Technology $ 47,108,500
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Transportation - 2.0%
Airlines - 0.7%
11,500 Delta Air Lines, Inc. $ 572,844
47,200 Southwest Airlines Co. 764,050
------------
$ 1,336,894
------------
Railroads - 1.3%
30,400 Burlington Northern, Inc. $ 737,200
68,100 Norfolk Southern Corp. 1,396,050
14,700 Union Pacific Corp. 641,287
------------
$ 2,774,537
------------
Total Transportation $ 4,111,431
------------
Utilities - 1.1%
Electric Companies - 0.7%
34,100 Allegheny Energy, Inc. $ 918,567
35,100 DPL, Inc. 607,669
------------
$ 1,526,236
------------
Natural Gas - 0.2%
23,500 Indiana Energy, Inc. $ 417,125
------------
Water Utilities - 0.2%
18,700 American Water Works Co., Inc. $ 397,375
------------
Total Utilities $ 2,340,736
------------
TOTAL COMMON STOCKS
(Cost $171,358,784) $201,663,204
------------
</TABLE>
<TABLE>
<S> <C> <C>
Principal
Amount
TEMPORARY CASH INVESTMENT - 1.4%
Repurchase Agreement - 1.4%
$2,900,000 Credit Suisse First Boston Group, Inc.,
3.0% dated 12/31/99 repurchase price of
$2,900,000 plus accrued interest on
1/3/00, collateralized by $2,884,000 U.S.
Treasury Notes, 6.375%, 8/15/02 $ 2,900,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $2,900,000) $ 2,900,000
------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $174,258,784) $204,563,204
------------
* Non-income producing security.
</TABLE>
44 The accompanying notes are an integral part of these financial statements.
<PAGE>
Equity-Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 98.4%
CONVERTIBLE CORPORATE BOND - 0.1%
$ 200,000 Commscope, Inc. 4.0%, 12/15/06 (144A) $ 214,212
------------
Total Convertible Corporate Bond
(Cost $200,000) $ 214,212
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS - 1.6%
570 Sprint Corp., 8.25%, 3/31/00 $ 42,322
27,000 Cox Communication, Inc., 7.0%, 8/16/02 1,836,000
15,300 Union Pacific Capital, Inc., 6.25%, 4/1/28 629,243
27,000 Union Pacific Capital, Inc., 6.25%, 4/1/28
(144A) 1,110,429
------------
Total Convertible Preferred Stocks
(Cost $3,280,519) $ 3,617,994
------------
COMMON STOCKS - 96.7%
Basic Materials - 6.1%
Aluminum - 1.9%
50,800 Alcoa, Inc. $ 4,216,400
------------
Chemicals - 1.3%
45,441 E.I. du Pont de Nemours & Co. $ 2,993,426
------------
Iron & Steel - 0.7%
31,500 AK Steel Holding Corp. $ 594,562
15,450 Roanoke Electric Steel Corp. 251,063
50,000 Worthington Industries, Inc. 828,125
------------
$ 1,673,750
------------
Metals Mining - 1.5%
50,400 Phelps Dodge Corp. $ 3,383,100
------------
Paper & Forest Products - 0.7%
50,000 Consolidated Papers, Inc. $ 1,590,625
------------
Total Basic Materials $ 13,857,301
------------
Capital Goods - 4.7%
Aerospace/Defense - 1.1%
40,000 General Dynamics Corp. $ 2,110,000
22,900 Lockheed Martin Corp. 500,938
------------
$ 2,610,938
------------
Machinery (Diversified) - 0.6%
7,000 The Gorman-Rupp Co. $ 122,500
57,300 The Timken Co. 1,171,069
------------
$ 1,293,569
------------
Manufacturing (Diversified) - 1.4%
24,000 Johnson Controls, Inc. $ 1,365,000
17,500 Minnesota Mining and Manufacturing Co. 1,712,813
------------
$ 3,077,813
------------
Manufacturing (Specialized) - 0.3%
31,000 Diebold, Inc. $ 728,500
------------
Trucks & Parts - 1.3%
68,500 PACCAR, Inc. $ 3,035,406
------------
Total Capital Goods $ 10,746,226
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Communication Services - 15.2%
Telecommunications (Long Distance) - .3%
10,000 Sprint Corp. $ 673,125
------------
Telephone - 14.9%
31,944 Alltel Corp $ 2,641,369
33,400 Bell Atlantic Corp. 2,056,187
92,400 BellSouth Corp. 4,325,475
88,500 GTE Corp. 6,244,781
251,331 SBC Communications, Inc. 12,252,386
84,800 US West Communications Group, Inc. 6,105,600
------------
$ 33,625,798
------------
Total Communication Services $ 34,298,923
------------
Consumer Cyclicals - 8.3%
Auto Parts and Equipment - 1.7%
173,871 Delphi Automotive Systems Corp. $ 2,738,468
35,000 The Goodyear Tire & Rubber Co. 986,563
------------
$ 3,725,031
------------
Automobiles - 3.6%
102,800 Ford Motor Co. $ 5,493,375
37,000 General Motors Corp. 2,689,437
------------
$ 8,182,812
------------
Publishing - 0.9%
33,700 McGraw-Hill Co., Inc. $ 2,076,762
------------
Publishing (Newspapers) - 0.1%
5,000 Tribune Co. $ 275,313
------------
Retail (Department Stores) - 1.4%
97,825 May Department Stores Co. $ 3,154,856
------------
Services (Advertising/Marketing) - 0.6%
25,200 The Interpublic Group of Companies, Inc. $ 1,453,725
------------
Total Consumer Cyclicals $ 18,868,499
------------
Consumer Staples - 8.9%
Beverages (Non-Alcoholic) - 0.4%
26,800 PepsiCo, Inc. $ 944,700
------------
Entertainment - 1.0%
114,200 Cedar Fair, L.P. $ 2,212,625
------------
Foods - 5.5%
96,200 Bestfoods $ 5,056,512
45,000 Campbell Soup Co. 1,740,938
74,000 General Mills, Inc. 2,645,500
58,000 H.J. Heinz Co. 2,309,125
30,000 Sara Lee Corp. 661,875
------------
$ 12,413,950
------------
Household Products (Non-Durables) - 1.7%
38,000 Colgate-Palmolive Co. $ 2,470,000
12,000 Procter & Gamble Co. 1,314,750
------------
$ 3,784,750
------------
Personal Care - 0.2%
10,000 The Gillette Co. $ 411,875
------------
Retail Stores (Food Chains) - 0.1%
15,000 Winn-Dixie Stores $ 359,063
------------
Total Consumer Staples $ 20,126,963
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 45
<PAGE>
Equity-Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Energy - 7.5%
Oil (Domestic Integrated) - 2.5%
54,000 Atlantic Richfield Co. $ 4,671,000
32,919 Conoco, Inc. (Class B) 818,860
------------
$ 5,489,860
------------
Oil (International Integrated) - 5.0%
59,000 Chevron Corp. $ 5,110,875
77,983 Exxon Mobil Corp. 6,282,506
------------
$ 11,393,381
------------
Total Energy $ 16,883,241
------------
Financial - 18.8%
Banks (Major Regional) - 5.3%
56,800 The Bank of New York Co., Inc. $ 2,272,000
13,000 Comerica, Inc. 606,937
29,610 Fleet Boston Financial Corp. 1,030,798
84,400 Mellon Bank Corp. 2,874,875
84,500 National City Corp. 2,001,594
87,977 Old Kent Financial Corp. 3,112,186
------------
$ 11,898,390
------------
Banks (Money Center) - 0.3%
8,000 The Chase Manhattan Corp. $ 621,500
------------
Banks (Regional) - 4.0%
180,600 First Security Corp. $ 4,610,944
58,700 First Tennessee National Corp. 1,672,950
11,000 North Fork Bancorporation, Inc. 192,500
71,200 SouthTrust Corp. 2,692,250
------------
$ 9,168,644
------------
Insurance (Life/Health) - 2.2%
8,300 American National Insurance Co. $ 529,125
40,500 Hartford Life, Inc. 1,782,000
65,200 ReliaStar Financial Corp. 2,555,025
------------
$ 4,866,150
------------
Insurance (Property/Casualty) - 2.3%
39,000 Chubb Corp. $ 2,196,187
35,500 HSB Group, Inc. 1,200,344
53,400 St. Paul Companies, Inc. 1,798,913
------------
$ 5,195,444
------------
Investment Banking/Brokerage - 1.3%
40,500 AG Edwards, Inc. $ 1,298,531
42,300 Paine Webber Group, Inc. 1,641,769
------------
$ 2,940,300
------------
Investment Management - 2.5%
81,200 Alliance Capital Management L.P. $ 2,430,925
13,000 Eaton Vance Corp. 494,000
75,000 T. Rowe Price Associates, Inc. 2,770,312
------------
$ 5,695,237
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Savings & Loans Companies - .9%
22,876 Astoria Financial Corp. $ 696,288
4,900 Queens County Bancorp, Inc. 132,913
50,400 Washington Mutual, Inc. 1,310,400
------------
$ 2,139,601
------------
Total Financial $ 42,525,266
------------
Healthcare - 8.4%
Healthcare (Diversified) - 3.5%
77,300 Abbott Laboratories $ 2,806,956
45,800 Bristol-Myers Squibb Co. 2,939,787
23,500 Johnson & Johnson 2,188,438
------------
$ 7,935,181
------------
Healthcare (Drugs/Major Pharmaceuticals) - 4.4%
34,900 Merck & Co., Inc. $ 2,340,481
180,400 Schering-Plough Corp. 7,610,625
------------
$ 9,951,106
------------
Healthcare (Medical Products/Supplies) - 0.5%
42,000 Becton, Dickinson & Co. $ 1,123,500
------------
Total Healthcare $ 19,009,787
------------
Technology - 5.3%
Communications Equipment - 0.5%
38,000 Harris Corp. $ 1,014,125
38,000 Lanier Worldwide, Inc. 147,250
------------
$ 1,161,375
------------
Computers (Hardware) - 3.2%
56,600 Hewlett-Packard Co. $ 6,448,863
7,000 IBM Corp. 756,000
------------
$ 7,204,863
------------
Equipment (Semiconductors) - 0.1%
4,600 Helix Technology Corp. $ 206,138
------------
Photography/Imaging - 1.5%
51,300 Eastman Kodak Co. $ 3,398,625
------------
Total Technology $ 11,971,001
------------
Transportation - 0.9%
Railroads - 0.9%
28,000 Burlington Northern, Inc. $ 679,000
66,200 Norfolk Southern Corp. 1,357,100
------------
Total Transportation $ 2,036,100
------------
Utilities - 12.6%
Electric Companies - 7.4%
73,000 Allegheny Energy, Inc. $ 1,966,438
53,000 American Electric Power Co., Inc. 1,702,625
136,000 Constellation Energy Group 3,944,000
80,300 DPL, Inc. 1,390,194
40,000 DQE, Inc. 1,385,000
50,000 Duke Energy Corp. 2,506,250
12,500 FPL Group, Inc. 535,156
62,000 Kansas City Power & Light Co. 1,367,875
50,000 NSTAR 2,025,000
------------
$ 16,822,538
------------
</TABLE>
46 The accompanying notes are an integral part of these financial statements.
<PAGE>
Equity-Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Natural Gas - 4.8%
14,000 Buckeye Partners, L.P. $ 364,000
36,750 Consolidated Natural Gas Co. 2,386,453
33,200 Indiana Energy, Inc. 589,300
99,600 KeySpan Energy Corp. 2,309,475
18,475 Kinder Morgan Energy Partners, L.P. 765,558
15,000 Lakehead Pipe Line Partners, L.P. 522,187
49,200 NICOR, Inc. 1,599,000
26,600 Public Service Co. of North Carolina, Inc. 859,513
94,600 Questar Corp. 1,419,000
------------
$ 10,814,486
------------
Power Producers (Independent) - 0.1%
25,000 Consol Energy Inc. $ 253,125
------------
Water Utilities - 0.3%
32,000 American Water Works Co., Inc. $ 680,000
------------
Total Utilities $ 28,570,149
------------
Total Common Stocks
(Cost $189,387,032) $218,893,456
------------
TOTAL INVESTMENT IN SECURITIES
(Cost $192,867,551) $222,725,662
------------
Principal
Amount
TEMPORARY CASH INVESTMENT - 1.6%
Repurchase Agreement - 1.6%
$3,700,000 Credit Suisse First Boston Group, Inc.,
3.0%, dated 12/31/99, repurchase $ 3,700,000
------------
price of $3,700,000 plus accrued interest
on 1/3/00, collateralized by $3,881,000
U.S. Treasury Bills, 5.737%, 6/29/00
TOTAL TEMPORARY CASH INVESTMENT $ 3,700,000
------------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH
INVESTMENT - 100%
(Cost $196,567,551) $226,425,662
------------
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 December 31, 1999, the
value of these securities amounted to $1,324,641 or 0.6% of total net
assets.
</TABLE>
The accompanying notes are an integral part of these financial statements. 47
<PAGE>
Balanced Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 58.9%
Basic Materials - 2.6%
Aluminum - 0.5%
4,400 Reynolds Metals Co. $ 337,150
-----------
Chemicals - 1.3%
4,300 Dow Chemical Corp. $ 574,588
7,800 Eastman Chemical Co. 371,963
-----------
$ 946,551
-----------
Paper & Forest Products - 0.8%
8,500 Weyerhaeuser Co. $ 610,406
-----------
Total Basic Materials $ 1,894,107
-----------
Capital Goods - 3.8%
Aerospace/Defense - 0.6%
8,500 General Dynamics Corp. $ 448,375
-----------
Electrical Equipment - 0.7%
8,825 Honeywell, Inc. $ 509,092
-----------
Engineering & Construction - 0.5%
7,500 Fluor Corp. $ 344,062
-----------
Machinery (Diversified) - 0.8%
10,300 Ingersoll-Rand Co. $ 567,144
-----------
Manufacturing (Diversified) - 1.2%
12,100 Tyco International Ltd. $ 470,387
6,100 United Technologies Corp. 396,500
-----------
$ 866,887
-----------
Total Capital Goods $ 2,735,560
-----------
Communication Services - 6.3%
Telecommunications (Long Distance) - 1.6%
23,000 AT&T Corp. $ 1,167,250
-----------
Telephone - 4.7%
6,100 Bell Atlantic Corp. $ 375,531
18,200 BellSouth Corp. 851,987
8,032 SBC Communications, Inc. 391,560
25,000 US West Communications Group, Inc. 1,800,000
-----------
$ 3,419,078
-----------
Total Communication Services $ 4,586,328
-----------
Consumer Cyclicals - 6.9%
Automobiles - 3.2%
42,800 Ford Motor Co. $ 2,287,125
-----------
Homebuilding - 0.3%
7,500 Centex Corp. $ 185,156
-----------
Publishing - 1.2%
14,100 McGraw Hill Co., Inc. $ 868,912
-----------
Retail (General Merchandise) - 2.2%
23,500 Wal-Mart Stores, Inc. $ 1,624,437
-----------
Total Consumer Cyclicals $ 4,965,630
-----------
Consumer Staples - 6.7%
Distributors (Food & Health) - 1.6%
13,700 SUPERVALU, Inc. $ 274,000
21,900 Sysco Corp. 866,419
-----------
$ 1,140,419
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Entertainment - 0.5%
12,300 The Walt Disney Co., Inc. $ 359,775
-----------
Foods - 1.5%
5,700 H.J. Heinz Co., Inc. $ 226,931
5,700 The Quaker Oats Co. 374,062
31,300 Tyson Foods, Inc. 508,625
-----------
$ 1,109,618
-----------
Household Products (Non-Durables) - 0.5%
5,200 Kimberly Clark Corp. $ 339,300
-----------
Restaurants - 1.9%
38,300 Darden Restaurants, Inc. $ 694,187
16,300 McDonald's Corp. 657,094
-----------
$ 1,351,281
-----------
Specialty Printing - 0.7%
9,300 Deluxe Corp. $ 255,169
10,500 R.R. Donnelley & Sons Co., Inc. 260,531
-----------
$ 515,700
-----------
Total Consumer Staples $ 4,816,093
-----------
Energy - 5.1%
Oil (International Integrated) - 4.5%
5,100 Chevron Corp. $ 441,787
18,145 Exxon Mobil Corp. 1,461,807
16,600 Royal Dutch Petroleum Co. 1,003,262
6,100 Texaco Inc. 331,306
-----------
$ 3,238,162
-----------
Oil & Gas (Refining & Marketing) - 0.6%
13,600 Ashland, Inc. $ 447,950
-----------
Total Energy $ 3,686,112
-----------
Financial - 8.3%
Banks (Major Regional) - 1.2%
17,500 Bank One Corp. $ 561,094
9,200 Fleet Boston Financial Corp. 320,275
-----------
$ 881,369
-----------
Banks (Money Center) - 2.1%
15,300 BankAmerica Corp. $ 767,869
11,500 First Union Corp. 377,344
3,000 J.P. Morgan & Co., Inc. 379,875
-----------
$ 1,525,088
-----------
Financial (Diversified) - 2.0%
12,100 American General Corp. $ 918,088
7,800 Federal National Mortgage Association 487,013
-----------
$ 1,405,101
-----------
Insurance (Life/Health) - 1.5%
8,055 Aegon NV (A.D.R.) $ 769,253
8,500 Lincoln National Corp. 340,000
-----------
$ 1,109,253
-----------
Insurance (Multi-Line) - 1.1%
10,000 Cigna Corp. $ 805,625
-----------
Insurance (Property/Casualty) - 0.4%
11,200 Safeco Corp. $ 278,600
-----------
Total Financial $ 6,005,036
-----------
</TABLE>
48 The accompanying notes are an integral part of these financial statements.
<PAGE>
Balanced Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare - 4.7%
Healthcare (Diversified) - 0.9%
6,600 Allergan Inc. $ 328,350
4,000 Warner-Lambert Co. 327,750
-----------
$ 656,100
-----------
Healthcare (Drugs/Major Pharmaceuticals) - 1.2%
4,300 Eli Lilly & Co. $ 285,950
12,100 Pharmacia & Upjohn Inc. 544,500
-----------
$ 830,450
-----------
Healthcare (Hospital Management) - 1.4%
35,500 Columbia/HCA Healthcare Corp. $ 1,040,594
-----------
Healthcare (Managed Care) - 1.2%
16,700 United Healthcare Corp. $ 887,188
-----------
Total Healthcare $ 3,414,332
-----------
Technology - 13.6%
Communications Equipment - 1.7%
7,200 Lucent Technologies, Inc. $ 538,650
4,800 Motorola, Inc. 706,800
-----------
$ 1,245,450
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Computers (Hardware) - 3.8%
16,900 Compaq Computer Corp. $ 457,356
12,900 Hewlett-Packard Co. 1,469,794
7,800 IBM Corp. 842,400
-----------
$ 2,769,550
-----------
Computers (Peripherals) - 1.9%
12,500 EMC Corp.* $ 1,365,625
-----------
Electronics (Semiconductors) - 6.2%
37,600 Intel Corp. $ 3,094,950
14,100 Texas Instruments, Inc. 1,365,938
-----------
$ 4,460,888
-----------
Total Technology $ 9,841,513
-----------
Utilities - 0.9%
Electric Companies - 0.9%
6,900 DTE Energy Co. $ 216,488
11,500 Public Service Enterprise Group, Inc. 400,344
-----------
Total Utilities $ 616,832
-----------
Total Common Stocks
(Cost $37,835,459) $42,561,543
-----------
</TABLE>
<TABLE>
<CAPTION>
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
<S> <C> <C> <C>
DEBT OBLIGATIONS - 39.3%
Corporate Bonds - 21.9%
Basic Materials - 1.2%
$ 240,000 CC/Ca AEI Resources, Inc., 11.5%, 12/15/06 (144A) $ 156,000
250,000 B+/B2 Huntsman ICI Chemicals LLC, 10.125%, 7/1/09 (144A) 256,250
150,000 BB/Ba3 Lyondell Chemical Co., 9.875%, 5/1/07 153,000
135,000 BBB/A3 Phelps Dodge Corp., 7.75%, 1/1/02 134,760
150,000 B+/B2 Royster-Clark Inc., 10.25%, 4/1/09 (144A) 136,500
-----------
Total Basic Materials $ 836,510
-----------
Capital Goods - 1.5%
275,000 B+/B2 Allied Waste Industries, Inc., 10.0%, 8/1/09 (144A) $ 244,750
150,000 BBB-/Baa3 Lockheed Martin Corp., 6.85%, 5/15/01 148,582
240,000 B+/B2 Metromedia Fiber Network, Inc., 10.0%, 11/15/08 246,000
500,000 BBB/Ba1 Waste Management, Inc., 6.625%, 7/15/02 469,945
-----------
Total Capital Goods $ 1,109,277
-----------
Communication Services - 1.1%
500,000 BBB/Baa2 Comcast Cable Communications Inc., 6.2%, 11/15/08 $ 452,575
150,000 B/B3 Crown Castle International Inc., 9.0%, 5/15/11 146,250
220,000 B/B2 NEXTLINK Communications Inc., 10.75%, 6/1/09 228,250
-----------
Total Communication Services $ 827,075
-----------
Consumer Cyclicals - 1.9%
225,000 BBB/Baa3 Laidlaw Inc., 7.65%, 5/15/06 $ 208,474
300,000 BBB-/Ba1 Levi Strauss & Co., 7.0%, 11/1/06 (144A) 223,470
1,000,000 BBB-/Baa3 ShopKo Stores, Inc., 6.5%, 8/15/03 955,900
-----------
Total Consumer Cyclicals $ 1,387,844
-----------
Consumer Staples - 2.2%
500,000 BBB-/Baa2 British Sky Broadcasting, 8.2%, 7/15/09 (144A) $ 480,140
225,000 B+/B2 Charter Communications Holdings LLC, 8.25%, 4/1/07 208,125
350,000 B/B2 Echostar DBS Communications Corp., 9.25%, 2/1/06 352,625
</TABLE>
The accompanying notes are an integral part of these financial statements. 49
<PAGE>
Balanced Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
<S> <C> <C> <C>
Consumer Staples - (continued)
$ 125,000 B-/B2 Emmis Communications Corp., 8.125%, 3/15/09 $ 119,687
250,000 B-/B3 Premier Parks Inc., 9.75%, 6/15/07 250,312
200,000 B/B2 Wesco Distribution, 9.125%, 6/1/08 188,000
-----------
Total Consumer Staples $ 1,598,889
-----------
Energy - 2.4%
500,000 BB-/Ba2 Gulf Canada Resources Ltd., 9.625%, 7/1/05 $ 502,480
300,000 BB-/B2 Pogo Producing, 5.5%, 6/15/06 235,506
225,000 BB-/Ba3 RBF Finance Co., 11.0%, 3/15/06 (144A) 241,312
240,000 BB+/Ba1 Santa Fe Snyder Corp., 8.05%, 6/15/04 232,270
500,000 BBB/Baa1 Tosco Corp., 9.625%, 3/15/02 519,265
-----------
Total Energy $ 1,730,833
-----------
Financial - 7.9%
250,000 A+/A1 AT&T Capital Corp., 6.875%, 1/16/01 $ 250,070
250,000 BB+/Baa3 Capital One Financial Corp., 7.125%, 8/1/08 225,910
500,000 A+/A1 Citicorp, Inc., 7.25%, 9/1/08 489,770
250,000 BBB-/Baa3 Colonial Realty, L.P., 7.0%, 7/14/07 222,525
215,000 B/B3 Delta Financial, 9.5%, 8/1/04 137,600
425,000 A+/A1 Ford Motor Credit Corp., 9.14%, 12/30/14 448,099
300,000 A/A2 Hartford Financial Services Group, Inc., 6.375%, 11/1/02 293,253
200,000 BBB+/Baa2 Hertz Corp., 7.0%, 7/15/03 195,794
250,000 BBB-/Ba2 Imperial Bank, 8.5%, 4/1/09 231,268
250,000 A/A3 Lehman Brothers Holdings, 6.625%, 4/1/04 241,715
200,000 BBB/Baa3 Mack-Cali Realty Corp., 7.25%, 3/15/09 184,302
220,000 AA-/Aa3 Merrill Lynch & Co., Inc., 6.375%, 9/8/06 206,021
200,000 A/Aa3 Nationsbank Corp., 6.5%, 3/15/06 190,328
200,000 A/Aa3 Nationsbank Corp., 7.5%, 9/15/06 200,442
500,000 A+/A1 St. Paul Companies, Inc., 6.38%, 12/15/08 452,035
500,000 BBB/Baa2 Spieker Properties, Inc., 6.875%, 2/1/05 473,845
500,000 A/A2 SunTrust Banks Inc., 6.0%, 2/15/26 462,585
500,000 BBB+/A3 Washington Mutual Capital, Inc., 7.25%, 8/15/05 488,600
300,000 AA-/A2 Western National Corp., 7.125%, 2/15/04 297,723
-----------
Total Financial $ 5,691,885
-----------
Healthcare - 0.8%
350,000 BBB-/Ba1 Beckman Instruments, Inc., 7.05%, 6/1/26 $ 320,947
225,000 B/B3 King Pharmaceutical Inc., 10.75%, 2/15/09 238,500
-----------
Total Healthcare $ 559,447
-----------
Technology - 0.2%
175,000 BBB+/Baa1 Sun Microsystems, 7.65%, 8/15/09 $ 174,104
-----------
Total Technology $ 174,104
-----------
Transportation - 1.0%
500,000 BBB-/Baa2 Kansas City Southern Industries, Inc., 7.875%, 7/1/02 $ 514,160
200,000 BB/Ba2 Northwest Airlines, 8.52%, 4/07/04 188,932
-----------
Total Transportation $ 703,092
-----------
Utilities - 1.7%
300,000 BB/Ba3 CMS Energy Corp., 7.5%, 1/15/09 $ 276,135
350,000 BBB-/Baa3 Great Lakes Power, 8.3%, 3/1/05 342,048
650,000 A/A2 Virginia Electric & Power, 6.75%, 2/1/07 620,341
-----------
Total Utilities $ 1,238,524
-----------
Total Corporate Bonds $15,857,480
-----------
</TABLE>
50 The accompanying notes are an integral part of these financial statements.
<PAGE>
Balanced Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
U.S. Government Obligations - 4.1%
$1,000,000 U.S. Treasury Bonds, 8.125%, 8/15/19 $ 1,138,290
1,545,000 U.S. Treasury Bonds, 6.125%, 11/15/27 1,436,711
400,000 U.S. Treasury Notes, 5.625%, 5/15/08 376,192
-----------
Total U.S. Government Obligations $ 2,951,193
-----------
U.S. Government Agency Obligations - 13.3%
500,000 Federal Home Loan Mortgage Corp., REMIC Series 1487F, 6.0%, 11/15/20 $ 490,030
1,000,000 Federal Home Loan Mortgage Corp., REMIC Series 1541G, 6.75%, 11/15/21 979,600
825,000 Federal National Mortgage Association, REMIC Series 93-47C, 7.0%, 4/25/08 817,575
483,872 Government National Mortgage Association, 6.5%, 10/15/28 455,217
1,362,513 Government National Mortgage Association, 7.0%, 12/15/28 1,318,368
486,803 Government National Mortgage Association, 6.0%, 1/15/29 444,003
995,955 Government National Mortgage Association, 6.5%, 3/15/29 936,974
995,869 Government National Mortgage Association, 7.0%, 7/15/29 962,677
945,666 Government National Mortgage Association II, 7.0%, 2/20/29 912,076
493,203 Government National Mortgage Association II, 7.5%, 8/20/29 486,757
447,914 Government National Mortgage Association II, 7.5%, 9/20/29 442,059
450,690 Government National Mortgage Association, REMIC Series 1998-24A, 6.0%, 11/20/24 434,803
1,000,000 Government National Mortgage Association, REMIC Series 98-13B, 6.5%, 12/20/25 928,650
-----------
Total U.S. Government Agency Obligations $ 9,608,789
-----------
Total Debt Obligations
(Cost $29,923,083) $28,417,462
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $67,758,542) $70,979,005
-----------
TEMPORARY CASH INVESTMENT - 1.8%
Repurchase Agreement - 1.8%
1,300,000 Credit Suisse First Boston Group, Inc., 3.0%, dated 12/31/99, repurchase price
of $1,300,000 plus accrued interest on 1/3/00, collateralized by $1,364,000
U.S. Treasury Bills, 5.737%, 6/29/00 $ 1,300,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,300,000) $ 1,300,000
-----------
TOTAL INVESTMENT IN SECURITIES AND TEMPORARY CASH
INVESTMENT - 100%
(Cost $69,058,542) $72,279,005
-----------
* Non-income producing security.
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 December 31, 1999, the
value of these securities amounted to $1,738,422 or 2.4% of total net
assets.
</TABLE>
The accompanying notes are an integral part of these financial statements. 51
<PAGE>
Strategic Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings
USD($) (unaudited) Value
<S> <C> <C> <C>
CONVERTIBLE CORPORATE BONDS - 9.0%
10,000 NR/NR Advanced Energy Industries Inc., 5.25%, 11/15/06 $ 11,829
15,000 CCC+/Caa1 APP Finance VII, 3.5%, 4/30/03 (144A) 11,012
15,000 B+/B1 Mascotech, Inc., 4.5%, 12/15/03 11,006
15,000 BB-/B2 Pogo Producing Co., 5.5%, 6/15/06 11,775
10,000 BBB/Baaa3 Thermo Electron Corp., 4.25%, 1/1/03 8,423
20,000 NR/B2 Total Access Communication, 2.0%, 5/31/06 19,600
20,000 BB/NR TVX Gold Inc., 5.0%, 3/28/02 15,250
15,000 BBB-/Ba3 Waste Management Inc., 4.0%, 2/1/02 13,061
----------
Total Convertible Corporate Bonds
(Cost $102,260) $ 101,956
----------
ASSET BACKED SECURITIES - 4.5%
DKK 198,000 AA-/Aa3 Nykredit, 6.0%, 10/1/29 $ 24,935
DKK 199,000 AA-/Aa3 Nykredit, 7.0%, 10/1/32 26,065
----------
Total Asset Backed Securities
(Cost $52,640) $ 51,000
----------
CORPORATE BONDS - 46.6%
Basic Materials - 4.0%
Agricultural Products - 1.2%
15,000 B+/B2 Royster-Clark Inc., 10.25%, 4/1/09 (144A) $ 13,650
----------
Chemicals - 2.8%
15,000 BB/Ba3 Lyondell Petrochemical Co., 9.875%, 5/1/07 $ 15,300
EURO 15,000 B+/B2 Huntsman ICI Chemicals LLC, 10.125%, 7/1/09 15,941
----------
$ 31,241
----------
Total Basic Materials $ 44,891
----------
Capital Goods - 2.5%
Engineering & Construction - 1.3%
15,000 B+/B2 Metromedia Fiber Network, Inc., 10.0%, 11/15/08 $ 15,375
----------
Waste Management - 1.2%
15,000 B+/B2 Allied Waste North America Inc., 10.0%, 8/1/09 (144A) $ 13,350
----------
Total Capital Goods $ 28,725
----------
Communication Services - 5.9%
Cellular/Wireless Communications - 2.7%
15,000 B/B3 Crown Castle International Corp., 9.0%, 5/15/11 $ 14,625
15,000 B/B2 NEXTLINK Communications, Inc., 10.75%, 6/1/09 15,563
----------
$ 30,188
----------
Telecommunications (Long Distance) - 2.0%
EURO 14,000 BB/Ba1 KPNQwest NV, 7.125%, 6/1/09 $ 13,821
15,000 NR/NR SBA Communications, 12.0%, 3/1/08 9,150
----------
$ 22,971
----------
Telephone - 1.2%
15,000 B/B2 Intermedia Communications Inc., 8.6%, 6/1/08 $ 13,837
----------
Total Communication Services $ 66,996
----------
Consumer Cyclicals - 9.4%
Building Materials - 2.1%
10,000 B+/B1 Nortek Inc., 9.125%, 9/1/07 $ 9,700
15,000 B/B2 NCI Building Systems, Inc., 9.25%, 5/1/09 14,325
----------
$ 24,025
----------
</TABLE>
52 The accompanying notes are an integral part of these financial statements.
<PAGE>
Strategic Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings
USD($) (unaudited) Value
<S> <C> <C> <C>
Distributors - 3.9%
EURO 15,000 B-/B2 United Pan Europe Communications NV, 11.25%, 11/1/09 (144A) $ 15,488
15,000 B-/B3 Fisher Scientific International Inc., 9.0%, 2/1/08 14,362
15,000 B/B2 Wesco Distribution Inc., 9.125%, 6/1/08 14,100
----------
$ 43,950
----------
Hardware & Tools - 1.3%
15,000 B+/B2 Scott's Corp., 8.625%, 1/15/09 (144A) $ 14,625
----------
Homebuilding - 0.8%
10,000 BB+/Ba2 Toll Corp., 8.125%, 2/1/09 $ 9,275
----------
Textiles (Apparel) - 1.3%
15,000 BBB-/Baa2 Jones Apparel Group, Inc., 7.875%, 6/15/06 $ 14,502
----------
Total Consumer Cyclicals $ 106,377
----------
Consumer Staples - 6.4%
Broadcasting (Television/Radio/Cable) - 3.8%
15,000 B+/B1 Adelphia Communications, 7.875%, 5/1/09 $ 13,537
15,000 B+/B2 Charter Communications Holdings LLC, 8.25%, 4/1/07 13,875
15,000 B/B2 Echostar DBS Communications Corp., 9.25%, 2/1/06 15,112
----------
$ 42,524
----------
Entertainment - 1.3%
15,000 B-/B3 Premier Parks, Inc., 9.75%, 6/15/07 $ 15,019
----------
Household Products (Non-Durables) - 1.3%
15,000 B/B2 Playtex Family Products, Inc., 9.0%, 12/15/03 $ 14,888
----------
Total Consumer Staples $ 72,431
----------
Energy - 2.7%
Oil & Gas - 2.7%
15,000 BB-/Ba3 RBF Finance Co., 11.0%, 3/15/06 $ 16,088
15,000 BB-/Ba2 Gulf Canada Resources Ltd., 9.625%, 7/1/05 15,074
----------
Total Energy $ 31,162
----------
Financial - 8.4%
Banks - 3.9%
15,000 A+/A1 Dresdner Funding Trust, 8.151%, 6/30/31 (144A) $ 14,051
DEM 31,000 NR/Aaa Deutsche Siedlungs Und Lande, 7.25%, 1/10/00 15,999
15,000 BBB-/Ba2 Imperial Bank, 8.5%, 4/1/09 13,876
----------
$ 43,926
----------
Consumer Finance - 2.1%
15,000 BB-/B1 Advanta Corp., 7.0%, 5/1/01 $ 14,437
15,000 B/B3 Delta Financial Corp., 9.5%, 8/1/04 9,600
----------
$ 24,037
----------
Financial (Diversified) - 2.4%
15,000 BBB-/Baa3 Colonial Realty LP, 7.0%, 7/14/07 $ 13,351
15,000 BBB/Baa3 Mack-Cali Realty Corp., 7.25%, 3/15/09 13,823
----------
$ 27,174
----------
Total Financial $ 95,137
----------
Healthcare - 3.4%
10,000 BB+/Ba1 Beckman Instruments, Inc., 7.05%, 6/1/26 $ 9,170
15,000 BB+/Ba2 Columbia HCA/HealthCare Corp., 7.25%, 5/20/08 13,360
15,000 B/B3 King Pharmaceutical Inc., 10.75%, 2/15/09 15,900
----------
Total Healthcare $ 38,430
----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 53
<PAGE>
Strategic Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings
USD($) (unaudited) Value
<S> <C> <C> <C>
Transportation - 1.2%
Airlines - 1.2%
15,000 BB/Ba2 Northwest Airlines Inc., 8.52%, 4/7/04 $ 14,170
----------
Total Transportation $ 14,170
----------
Utilities - 2.7%
Electric Companies - 1.3%
15,000 BBB-/Baa3 Great Lakes Power Inc., 3/1/05 $ 14,659
----------
Power Producers (Independent) - 1.4%
25,000 BB-/Ba3 AES China Generating Co., 10.125%, 12/15/06 $ 16,469
----------
Total Utilities $ 31,128
----------
Total Corporate Bonds
(Cost $535,689) $ 529,447
----------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 32.5%
49,853 Federal National Mortgage Association, 7.0%, 9/1/29 $ 48,231
46,773 Government National Mortgage Association, 7.75%, 10/15/26 46,805
48,069 Government National Mortgage Association, 7.0%, 2/15/29 46,512
25,001 Government National Mortgage Association, 7.5%, 10/15/29 24,752
24,660 Government National Mortgage Association II, 7.5%, 8/20/29 24,338
189,000 U.S. Treasury Notes, 5.625%, 5/15/08 177,751
----------
Total U.S. Government and Agency Obligations
(Cost $374,063) $ 368,389
----------
FOREIGN GOVERNMENT BONDS - 6.1%
35,000 BB/Ba3 Republic of Argentina, 9.75%, 9/19/27 $ 31,938
25,000 B+/B2 Republic of Brazil, 10.125%, 5/15/27 21,281
15,000 BB/Ba1 United Mexican State, 10.375%, 2/17/09 15,923
----------
Total Foreign Government Bonds
(Cost $61,403) $ 69,142
----------
SUPERNATIONAL BONDS - 1.3%
NZD 30,000 AAA/Aaa International Finance Corp., 6.75%, 7/15/09 $ 14,554
----------
Total Supernational Bonds
(Cost $14,440) $ 14,554
----------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,140,495) $1,134,488
----------
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 December 31, 1999,
the value of these securities amounted to $82,176 or 6.6% of total net
assets.
Note: Principal amounts are denominated in U.S. dollars unless otherwise
denoted.
DEM Deutsche marc.
DKK Danish kroner.
EURO Euro dollar.
NZD New Zealand dollar.
</TABLE>
54 The accompanying notes are an integral part of these financial statements.
<PAGE>
Swiss Franc Bond Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
<S> <C> <C> <C>
DEBT OBLIGATIONS - 95.7%
Australia - 1.5%
CHF 1,000,000 NA/NR Shell Australia, 6.0%, 1/14/00 $ 628,776
-----------
Austria - 3.0%
1,000,000 NA/NA Autobahn Schnell AG, 3.0%, 11/12/01 $ 631,476
1,000,000 NA/NR City of Vienna, 4.25%, 1/31/00 628,650
-----------
$ 1,260,126
-----------
Belgium - 1.5%
1,000,000 NR/NR Societe Nationale Credit a d'Investissement, 7.25%, 10/2/00 $ 650,788
-----------
$ 650,788
-----------
Canada - 14.6%
3,000,000 AA-/Aa3 GMAC Canada Ltd., 3.75%, 1/16/01 $ 1,908,560
2,000,000 NA/NA Montreal Urban Community, 5.25%, 6/9/03 1,332,663
2,000,000 AA-/Aa3 Province of Ontario, 7.375%, 1/27/03 1,367,833
1,260,000 NR/A2 Province of Saskatchewan, 7.0%, 8/17/00 813,069
1,200,000 A+/A2 Quebec Province, 3.5%, 9/17/08 719,714
-----------
$ 6,141,839
-----------
Denmark - 5.9%
600,000 NA/Aa1 Great Belt AS, 4.25%, 9/24/04 $ 393,017
1,340,000 AA+/Aa1 Kingdom of Denmark, 0%, 2/17/02 797,789
2,000,000 NA/NA Oresundsfoerbindelsen, 5.375%, 12/1/03 1,311,939
-----------
$ 2,502,745
-----------
France - 12.1%
1,800,000 AAA/Aaa Caisse Nationale d'Autoroutes, 3.375%, 2/27/08 $ 1,099,918
1,800,000 AAA/Aaa Reseau Ferre de France, 3.25%, 9/12/08 1,089,179
1,300,000 NA/NA Rhone-Alpes, 6.375%, 11/25/02 887,050
3,000,000 NA/NA Societe Nationale des Chemins de Fer Francais, 5.25%, 2/24/05 2,047,039
-----------
$ 5,123,186
-----------
Germany - 9.3%
2,000,000 NA/Aa3 Bayerische Vereinsbank, 4.25%, 2/21/07 $ 1,266,093
2,000,000 NA/A1 Commerzbank AG, 7.0%, 7/25/01 1,328,267
2,200,000 AAA/Aaa Frankfurter Hypothekenbank Centralboden AG, 3.125%, 4/29/08 1,311,185
-----------
$ 3,905,545
-----------
Ireland - 2.0%
1,300,000 AA+/Aaa Republic of Ireland, 6.5%, 1/15/01 $ 850,107
-----------
Italy - 2.8%
2,315,000 AA/Aa3 Republic of Italy, 0%, 12/11/05 $ 1,187,813
-----------
Netherlands - 11.7%
3,000,000 NA/NA Allianz Finance BV, 3.0%, 8/26/05 $ 1,860,516
1,400,000 NR/A1 BMW Finance NV, 5.0%, 4/21/13 915,500
1,400,000 AA+/Aa1 Deutsche Finance BV, 3.5%, 2/19/03 884,946
2,000,000 NR/Aaa Helaba Finance, 3.75%, 12/28/00 1,274,257
-----------
$ 4,935,219
-----------
New Zealand - 4.7%
3,000,000 AA+/Aa2 Transpower Finance Ltd., 4.25%, 6/10/04 $ 1,967,908
-----------
Norway - 3.3%
2,165,000 AA/Aa2 Statoil, 4.125%, 9/20/01 $ 1,388,901
-----------
Sweden - 4.5%
3,000,000 NA/Aa3 AB Spintab, 3.25%, 1/24/02 $ 1,893,488
-----------
$ 1,893,488
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 55
<PAGE>
Swiss Franc Bond Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99 (continued)
<TABLE>
<CAPTION>
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
<S> <C> <C> <C>
United States - 18.8%
CHF 2,500,000 NA/A1 Citibank Credit Card Master Trust, 3.5%, 11/25/02 $ 1,580,654
3,000,000 A+/A1 DaimlerChrysler NA Holdings, Inc., 3.125%, 9/25/02 1,891,132
3,000,000 NR/A1 J.P. Morgan & Co., 2.0%, 12/27/01 1,846,386
2,200,000 AA-/Aa3 Merrill Lynch & Co., 3.0%, 4/8/02 1,376,123
1,000,000 AA+/Aa2 Nationwide Financial Services Corp., 3.0%, 8/18/04 614,206
1,000,000 AAA/Aa1 Toyota Motor Credit Corp., 4.5%, 9/29/00 638,856
-----------
$ 7,947,357
-----------
TOTAL DEBT OBLIGATIONS
(Cost $45,870,564) $40,383,798
-----------
TEMPORARY CASH INVESTMENT - 4.3%
Repurchase Agreement - 4.3%
$1,800,000 Credit Suisse First Boston Group, Inc., 3.0%, dated 12/31/99,
repurchase price of $1,800,000 plus accrued interest on 1/3/00,
collateralized by $1,888,000 U.S. Treasury Bills, 5.737%, 6/29/00 $ 1,800,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,800,000) $ 1,800,000
-----------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $47,670,564) $42,183,798
-----------
</TABLE>
CHF Swiss franc.
56 The accompanying notes are an integral part of these financial statements.
<PAGE>
America Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
U.S GOVERNMENT AND AGENCY OBLIGATIONS - 95.3%
$ 300,000 Federal Farm Credit Bank, Medium Term Note, 6.38%, 11/27/06 $ 289,020
350,000 Federal Farm Credit Bank, Medium Term Note, 6.78%, 12/12/07 334,372
250,000 Federal Home Loan Bank, 7.01%, 1/13/04 246,960
300,000 Federal Home Loan Bank, 7.08%, 11/5/04 296,721
400,000 Federal Home Loan Bank, 6.02%, 3/17/08 370,396
110,000 Federal Home Loan Mortgage Corp., 6.55%, 1/4/00 110,001
300,000 Federal Home Loan Mortgage Corp., 7.125%, 11/18/02 303,762
600,000 Federal Home Loan Mortgage Corp., 6.54%, 11/6/07 568,236
178,174 Federal Home Loan Mortgage Corp., 7.0%, 9/1/27 172,711
483,992 Federal Home Loan Mortgage Corp., 6.5%, 3/1/29 457,261
107,608 Federal Home Loan Mortgage Corp., REMIC Series G031K, 6.5%, 10/25/14 105,594
500,000 Federal Home Loan Mortgage Corp., REMIC Series 1541G, 6.75%, 11/15/21 489,800
660,400 Federal Home Loan Mortgage Corp., REMIC Series 2043DB, 6.5%, 1/15/25 630,867
500,000 Federal Home Loan Mortgage Corp., REMIC Series 2106K, 6.0%, 4/15/25 450,755
225,000 Federal National Mortgage Association, 6.8%, 1/10/03 225,072
668,000 Federal National Mortgage Association, 6.375%, 6/15/09 635,942
1,354,753 Federal National Mortgage Association, 6.5%, 5/18/26 to 11/1/28 1,258,010
846,427 Federal National Mortgage Association, 6.0%, 12/1/28 776,233
300,000 Federal National Mortgage Association, Medium Term Note, 6.84%, 7/17/07 288,624
199,160 Government National Mortgage Association, 8.0%, 2/15/08 202,842
1,927,514 Government National Mortgage Association, 6.5%, 3/15/26 to 2/15/29 1,813,957
3,633,154 Government National Mortgage Association, 7.0%, 12/15/25 to 7/15/29 3,514,999
877,263 Government National Mortgage Association, 7.5%, 10/15/22 to 8/15/29 869,100
468,994 Government National Mortgage Association I, 6.5%, 8/15/28 441,220
32,294 Government National Mortgage Association II, 8.0%, 8/20/25 32,548
2,020,986 Government National Mortgage Association II, 6.5%, 8/20/28 to 2/20/29 1,894,998
945,666 Government National Mortgage Association II, 7.0%, 2/20/29 912,076
1,569,294 Government National Mortgage Association II, 7.5%, 8/20/27 to 8/20/29 1,548,971
500,000 Government National Mortgage Association, REMIC Series 1998-21VB, 6.5%, 10/20/11 471,650
450,690 Government National Mortgage Association, REMIC Series 1998-24A, 6.5%, 11/20/24 434,803
250,000 Private Export Funding, 7.3%, 1/31/02 252,792
500,000 Private Export Funding, 6.9%, 1/31/03 499,490
200,000 Student Loan Marketing Association, 7.5%, 3/8/00 200,530
250,000 Tennessee Valley Authority, 6.375%, 6/15/05 242,183
300,000 Tennessee Valley Authority, 6.75%, 6/1/28 259,500
2,100,000 U.S. Treasury Bonds, 7.25%, 5/15/16 2,192,820
1,600,000 U.S. Treasury Bonds, 6.25%, 8/15/23 1,508,496
1,000,000 U.S. Treasury Notes, 7.25%, 5/15/04 1,030,070
200,000 U.S. Treasury Notes, 7.875%, 11/15/04 211,392
1,750,000 U.S. Treasury Notes, 7.0%, 7/15/06 1,790,898
-----------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $29,972,511) $28,335,672
-----------
TEMPORARY CASH INVESTMENT - 4.7%
1,400,000 Credit Suisse First Boston Group, Inc., 3.0%, dated 12/31/99, repurchase price of $1,400,000 plus
accrued interest on 1/3/00, collateralized by $1,468,000 U.S. Treasury Bills 5.737%, 6/29/00 $ 1,400,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,400,000) $ 1,400,000
-----------
TOTAL INVESTMENTS IN SECURITIES AND TEMPORARY CASH INVESTMENT - 100%
(Cost $31,372,511) $29,735,672
-----------
Note: The Portfolio's investments in mortgage-backed securities of the Government National Mortgage Association
(GNMA) and the Federal National Mortgage Association (FNMA) 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.
</TABLE>
The accompanying notes are an integral part of these financial statements. 57
<PAGE>
Money Market Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
COMMERCIAL PAPER - 77.4%
$ 1,000,000 American Express Credit Corp., 6.0%, 2/7/00 $ 993,969
1,085,000 Associated Corp., 5.9%, 2/28/00 1,074,686
1,220,000 AT&T Corp., 5.95%., 1/19/00 1,216,371
1,400,000 BellSouth Capital Funding Corp., 5.87%, 2/24/00 1,387,673
1,500,000 Chevron USA, Inc., 6.0%, 2/10/00 1,490,000
1,295,000 The Coca Cola Co., 6.05%, 2/18/00 1,284,554
1,153,000 Deere (John) Capital Corp., 5.94%, 1/24/00 1,148,624
1,325,000 Exxon Mobil Corp., 5.8%, 1/14/00 1,322,225
1,140,000 Ford Motor Credit Corp., 5.94%, 1/13/00 1,137,743
800,000 Gannett Co., 5.8%, 1/21/00 797,422
1,650,000 General Electric Capital Corp., 6.0%, 1/20/00 1,644,775
1,040,000 General Motors Acceptance Corp., 5.88%, 2/11/00 1,033,036
940,000 Heinz (H.J.) Co., 6.08%, 2/02/00 934,920
1,235,000 Household Finance Corp., 5.86%, 1/10/00 1,233,191
1,507,000 IBM Corp., 5.98%, 2/02/00 1,498,989
1,400,000 Minnesota Mining & Manufacturing Co., 6.05%, 1/27/00 1,393,883
1,620,000 National Rural Utilities Cooperative Finance Corp., 5.63%, 1/26/00 1,613,666
500,000 Pacific Gas & Electric Co., 7.0%, 2/10/00 496,111
1,070,000 Procter & Gamble Co., 6.02%, 2/09/00 1,063,022
1,155,000 Prudential Funding Corp., 5.95%, 1/11/00 1,153,091
1,000,000 Schering Corp., 6.1%, 1/25/00 995,933
1,500,000 Southern California Edison Co., 5.7%, 1/28/00 1,493,587
1,360,000 Texaco Inc., 5.79%, 1/31/00 1,353,438
1,060,000 Walt Disney Co., 5.88%, 1/25/00 1,055,845
-----------
Total Commercial Paper $28,816,754
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 5.4%
1,000,000 Federal Farm Credit Bank, 5.56%, 1/18/00 $ 1,000,000
1,000,000 Federal Farm Credit Bank, 5.3%, 2/1/00 1,000,000
-----------
Total U.S. Government Agency Obligations $ 2,000,000
-----------
REPURCHASE AGREEMENT - 17.2%
6,400,00 Credit Suisse First Boston Group, Inc., 3.0%, dated 12/31/99, repurchase price of $6,400,000 plus
accrued interest on 1/3/00, collateralized by $6,713,000 U.S. Treasury Bills, 5.737%, 6/29/00 $ 6,400,000
-----------
Total Repurchase Agreement $ 6,400,000
-----------
TOTAL INVESTMENT IN SECURITIES - 100% $37,216,754
-----------
</TABLE>
58 The accompanying notes are an integral part of these financial statements.
<PAGE>
Emerging Markets Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year 10/30/98
Ended to
12/31/99 12/31/98
<S> <C> <C>
Net asset value, beginning of period $ 10.49 $ 10.00
------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.03) $ 0.00
Net realized and unrealized gain on investments and foreign currency transactions 8.29 0.49
------- -------
Net increase in net asset value $ 8.26 $ 0.49
------- -------
Net asset value, end of period $ 18.75 $ 10.49
------- -------
Total return* 78.74% 4.90%
Ratio of net expenses to average net assets 1.88%+ 1.75%**
Ratio of net investment loss to average net assets (0.74)%+ (0.01)%**
Portfolio turnover rate 144% 60%**
Net assets, end of period (in thousands) $ 9,679 $ 133
Ratios assuming no waiver of management fees and assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 6.56% 104.83%**
Net investment loss (5.42)% (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 loss (0.61)% (0.01)%**
</TABLE>
Europe Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year 10/30/98
Ended to
12/31/99 12/31/98
<S> <C> <C>
Net asset value, beginning of period $ 10.60 $ 10.00
------- -------
Increase from investment operations:
Net investment income $ 0.05 $ 0.00
Net realized and unrealized gain on investments and foreign currency transactions 2.97 0.60
------- -------
Net increase from investment operations $ 3.02 $ 0.60
Distributions to shareholders:
Net realized gain (0.01) -
------- -------
Net increase in net asset value $ 3.01 $ 0.60
------- -------
Net asset value, end of period $ 13.61 $ 10.60
------- -------
Total return* 28.47% 6.00%
Ratio of net expenses to average net assets 1.53%+ 1.50%**
Ratio of net investment income to average net assets 0.56%+ 0.00%**
Portfolio turnover rate 60% 6%**
Net assets, end of period (in thousands) $12,735 $ 1,620
Ratios assuming no waiver of management fees and assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 2.58% 16.56%**
Net investment loss (0.49)% (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 0.59% 0.00%**
* Assumes initial investment at net asset value at the beginning of each period,
reinvestment of all 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.
</TABLE>
The accompanying notes are an integral part of these financial statements. 59
<PAGE>
International Growth Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year Year Year 3/1/95
Ended Ended Ended Ended to
12/31/99 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 $ 0.07 $ 0.09 $ 0.06 $ 0.05 $ -
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 4.67 (0.45) 0.53 0.88 1.04
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 4.74 $ (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 $ 4.59 $ (1.44) $ 0.40 $ 0.90 $ 0.93
------- ------- ------- ------- -------
Net asset value, end of period $ 15.38 $ 10.79 $ 12.23 $ 11.83 $ 10.93
------- ------- ------- ------- -------
Total return* 44.38% (3.32)% 4.87% 8.54% 10.42%
Ratio of net expenses to average net assets+ 1.22% 1.44% 1.49% 1.52% 2.10%**
Ratio of net investment income (loss) to average net assets+ 0.01% 1.00% 0.78% 0.78% (0.25%)**
Portfolio turnover rate 90% 113% 133% 115% 139%**
Net assets, end of period (in thousands) $69,192 $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 1.22% 1.47% 1.71% 3.04% 17.22%**
Net investment income (loss) 0.01% 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 1.22% 1.43% 1.48% 1.50% 1.75%**
Net investment income 0.01% 1.01% 0.79% 0.80% 0.10%**
</TABLE>
Capital Growth Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year Year Year 3/1/95
Ended Ended Ended Ended to
12/31/99 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 $ 0.13 $ 0.12 $ 0.12 $ 0.03 $ 0.02
Net realized and unrealized gain (loss) on investments 1.77 (0.65) 3.09 1.71 1.69
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 1.90 $ (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 $ 1.77 $ (1.66) $ 3.10 $ 1.48 $ 1.57
------- ------- ------- ------- -------
Net asset value, end of period $ 16.26 $ 14.49 $ 16.15 $ 13.05 $ 11.57
------- ------- ------- ------- -------
Total return* 13.13% (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+ 0.77% 0.90% 1.02% 0.37% 0.48%**
Portfolio turnover rate 91% 81% 50% 41% 46%**
Net assets, end of period (in thousands) $120,526 $113,359 $105,476 $48,572 $ 9,357
Ratios 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) 0.77% 0.90% 1.02% 0.35% (1.91%)**
Ratios 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 0.77% 0.90% 1.03% 0.38% 0.55%**
* Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions and the
complete redemption of the investment at net asset value at the end of each period.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
</TABLE>
60 The accompanying notes are an integral part of these financial statements.
<PAGE>
Growth Shares Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year 10/31/97
Ended Ended to
12/31/99 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 1.64 5.00 0.33
-------- ------- -------
Net increase from investment operations $ 1.62 $ 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 $ 1.58 $ 5.00 $ 0.34
-------- ------- -------
Net asset value, end of period $ 21.92 $ 20.34 $ 15.34
-------- ------- -------
Total return* 7.93% 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 (0.08)%+ 0.08%+ 0.60%**
Portfolio turnover rate 47% 28% 16%**
Net assets, end of period (in thousands) $162,730 $85,670 $4,646
Ratios 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) (0.08)% 0.04% (4.72)% **
Ratios 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) (0.08)% 0.08% 0.60%**
</TABLE>
Real Estate Growth Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year Year Year 3/31/95
Ended Ended Ended Ended to
12/31/99 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 $ 0.66 $ 0.60 $ 0.47 $ 0.54 $ 0.12
Net realized and unrealized gain (loss) on investments (1.20) (3.72) 2.54 3.34 1.55
------- -------- ------- ------- -------
Net increase (decrease) from investment operations $ (0.54) $ (3.12) $ 3.01 $ 3.88 $ 1.67
Distributions to shareholders:
Net investment income (0.60) (0.56) (0.45) (0.53) (0.23)
Net realized gain (0.12) (0.15) (0.12) (0.12) (0.03)
Tax return of capital (0.08) - - - (0.18)
------- -------- ------- ------- -------
Net increase (decrease) in net asset value $ (1.34) $ (3.83) $ 2.44 $ 3.23 $ 1.23
------- -------- ------- ------- -------
Net asset value, end of period $ 11.73 $ 13.07 $ 16.90 $ 14.46 $ 11.23
------- -------- ------- ------- -------
Total return* (4.17)% (18.74)% 21.16% 35.73% 16.96%
Ratio of net expenses to average net assets+ 1.15% 1.19% 1.25% 1.34% 2.10%**
Ratio of net investment income to average net assets+ 5.07% 4.06% 3.16% 4.63% 2.68%**
Portfolio turnover rate 54% 18% 28% 41% 1%**
Net assets, end of period (in thousands) $28,318 $ 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 1.30% 1.20% 1.37% 3.35% 45.96%**
Net investment income (loss) 4.92% 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 1.14% 1.19% 1.24% 1.24% 1.57%**
Net investment income 5.08% 4.06% 3.17% 4.73% 3.21%**
* Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions and the
complete redemption of the investment at net asset value at the end of each period.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
</TABLE>
The accompanying notes are an integral part of these financial statements. 61
<PAGE>
Growth and Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year 10/31/97
Ended Ended to
12/31/99 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 $ 0.16 $ 0.15 $ 0.01
Net realized and unrealized gain on investments 2.97 3.96 0.80
------- ------- -------
Net increase from investment operations $ 3.13 $ 4.11 $ 0.81
Distributions to shareholders:
Net investment income (0.17) (0.15) (0.01)
Net realized gain (0.02) - -
------- ------- -------
Net increase in net asset value $ 2.94 $ 3.96 $ 0.80
------- ------- -------
Net asset value, end of period $ 22.70 $ 19.76 $ 15.80
------- ------- -------
Total return* 15.91% 26.12% 5.43%
Ratio of net expenses to average net assets 0.70%+ 0.86%+ 1.25%**
Ratio of net investment income to average net assets 0.82%+ 0.97%+ 1.07%**
Portfolio turnover rate 8% 4% -
Net assets, end of period (in thousands) $204,927 $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 0.70% 0.87% 5.30%**
Net investment income (loss) 0.82% 0.96% (2.98)%**
Ratios assuming waiver of management fees and assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 0.70% 0.86% 1.25%**
Net investment income 0.82% 0.97% 1.07%**
</TABLE>
Equity-Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year Year Year 3/1/95
Ended Ended Ended Ended to
12/31/99 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 (decrease) from investment operations:
Net investment income $ 0.42 $ 0.39 $ 0.35 $ 0.29 $ 0.19
Net realized and unrealized gain (loss) on investments (0.15) 3.52 4.44 1.54 2.16
-------- ------- ------- ------- ------
Net increase from investment operations $ 0.27 $ 3.91 $ 4.79 $ 1.83 $ 2.35
Distributions to shareholders:
Net investment income (0.41) (0.39) (0.37) (0.27) (0.18)
Net realized gain (0.58) (0.22) (0.01) - -
-------- -------- -------- ------- ------
Net increase (decrease) in net asset value $ (0.72) $ 3.30 $ 4.41 $ 1.56 $ 2.17
-------- -------- -------- ------- ------
Net asset value, end of period $ 20.72 $ 21.44 $ 18.14 $ 13.73 $12.17
-------- -------- -------- ------- ------
Total return* 1.21% 21.80% 35.23% 15.19% 23.62%
Ratio of net expenses to average net assets+ 0.70% 0.71% 0.77% 0.96% 1.63%**
Ratio of net investment income to average net assets+ 1.97% 2.04% 2.31% 2.67% 2.89%**
Portfolio turnover rate 23% 19% 15% 18% -
Net assets, end of period (in thousands) $226,379 $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 0.70% 0.71% 0.77% 0.98% 5.32%**
Net investment income (loss) 1.97% 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 0.70% 0.71% 0.77% 0.95% 1.47%**
Net investment income 1.97% 2.04% 2.31% 2.68% 3.05%**
* Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions and the
complete redemption of the investment at net asset value at the end of each period.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
</TABLE>
62 The accompanying notes are an integral part of these financial statements.
<PAGE>
Balanced Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year Year Year
Ended Ended Ended Ended 3/1/95 to
12/31/99 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 (decrease) from investment operations:
Net investment income $ 0.51 $ 0.42 $ 0.36 $ 0.29 $ 0.20
Net realized and unrealized gain (loss) on investments (0.16) 0.00 1.94 1.39 1.87
------- ------- ------- ------- -------
Net increase from investment operations $ 0.35 $ 0.42 $ 2.30 $ 1.68 $ 2.07
Distributions to shareholders:
Net investment income (0.51) (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 $ 14.31 $ 14.47 $ 14.99 $ 13.19 $ 11.87
-------- -------- ------- ------- -------
Total return* 2.53% 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+ 3.58% 2.93% 2.63% 2.83% 2.99%**
Portfolio turnover rate 59% 104% 63% 74% -
Net assets, end of period (in thousands) $72,669 $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) 3.58% 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 0.77% 0.80% 0.95% 1.15% 1.45%**
Net investment income 3.59% 2.93% 2.64% 2.88% 3.30%**
</TABLE>
Strategic Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
7/29/99
to
12/31/99
<S> <C>
Net asset value, beginning of period $ 10.00
-------
Increase (decrease) from investment operations:
Net investment income $ 0.28
Net realized and unrealized loss on investments and foreign currency transactions (0.21)
-------
Net increase from investment operations $ 0.07
Distributions to shareholders:
Net investment income (0.28)
Tax return of capital (0.04)
-------
Net decrease in net asset value $ (0.25)
-------
Net asset value, end of period $ 9.75
-------
Total return* 0.70%
Ratio of net expenses to average net assets+ 1.54%**
Ratio of net investment income to average net assets+ 6.46%**
Portfolio turnover rate 49%**
Net assets, end of period (in thousands) $ 1,244
Ratios assuming no waiver of management fees and assumption of
expenses by PIM:
Net expenses 8.68%**
Net investment loss (0.68)%**
Ratios assuming waiver of management fees and assumption of
expenses by PIM:
Net expenses 1.25%**
Net investment income 6.75%**
* Assumes initial investment at net asset value at the beginning of each period, reinvestment of
all distributions and the complete redemption of the investment at
net asset value at the end of each period.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
</TABLE>
The accompanying notes are an integral part of these financial statements. 63
<PAGE>
Swiss Franc Bond Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year Year Year 11/1/95
Ended Ended Ended Ended to
12/31/99 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 $ 0.38 $ 0.36 $ 0.30 $ 0.14 $ 0.04
Net realized and unrealized gain (loss) on investments and foreign
currency transactions (2.18) 0.82 (1.22) (1.78) 0.02
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ (1.80) $ 1.18 $ (0.92) $ (1.64) $ 0.06
Distributions to shareholders:
Net investment income - (0.46) - - -
Tax return of capital (0.07) - - - -
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (1.87) $ 0.72 $ (0.92) $ (1.64) $ 0.06
------- ------- ------- ------- -------
Net asset value, end of period $ 11.35 $ 13.22 $ 12.50 $ 13.42 $ 15.06
------- ------- ------- ------- -------
Total return* (13.59)% 9.48% (6.92)% (10.88)% 0.40%
Ratio of net expenses to average net assets+ 0.88% 0.91% 1.23% 1.20% 2.25%**
Ratio of net investment income to average net assets+ 3.33% 3.41% 3.22% 3.37% 1.70%**
Portfolio turnover rate 12% 29% 17% 39% -
Net assets, end of period (in thousands) $43,668 $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 0.88% 0.91% 1.25% 2.58% 69.22%**
Net investment income (loss) 3.33% 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 0.87% 0.90% 1.22% 1.15% 1.25%**
Net investment income 3.34% 3.42% 3.23% 3.42% 2.70%**
</TABLE>
America Income Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year Year Year 3/1/95
Ended Ended Ended Ended to
12/31/99 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 $ 0.56 $ 0.55 $ 0.54 $ 0.52 $ 0.38
Net realized and unrealized gain (loss) on investments (0.81) 0.25 0.26 (0.40) 0.18
------- ------- ------- ------ -------
Net increase (decrease) from investment operations $ (0.25) $ 0.80 $ 0.80 $ 0.12 $ 0.56
Distributions to shareholders:
Net investment income (0.56) (0.55) (0.54) (0.52) (0.38)
Net realized gain (0.01) - - - -
------- ------- ------- ------ -------
Net increase (decrease) in net asset value $ (0.82) $ 0.25 $ 0.26 $(0.40) $ 0.18
------- ------- ------- ------ -------
Net asset value, end of period $ 9.47 $ 10.29 $ 10.04 $ 9.78 $ 10.18
------- ------- ------- ------ -------
Total return* (2.52)% 8.15% 8.44% 1.30% 5.68%
Ratio of net expenses to average net assets+ 0.81% 0.94% 1.26% 1.31% 1.12%**
Ratio of net investment income to average net assets+ 5.64% 5.35% 5.46% 5.25% 5.22%**
Portfolio turnover rate 41% 36% 11% 60% 96%**
Net assets, end of period (in thousands) $29,779 $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 0.81% 0.94% 1.43% 2.24% 11.86%**
Net investment income (loss) 5.64% 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 0.79% 0.93% 1.23% 1.25% 0.99%**
Net investment income 5.66% 5.36% 5.49% 5.31% 5.35%**
* Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions and the
complete redemption of the investment at
net asset value at the end of each period.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
</TABLE>
64 The accompanying notes are an integral part of these financial statements.
<PAGE>
Money Market Portfolio PIONEER VARIABLE CONTRACTS TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Year Year Year 3/1/95
Ended Ended Ended Ended to
12/31/99 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 $ 0.04 $ 0.05 $ 0.05 $ 0.04 $ 0.04
------- ------ ------ ------ -------
Distributions to shareholders:
Net investment income (0.04) (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* 4.38% 4.68% 4.64% 4.51% 4.35%
Ratio of net expenses to average net assets+ 0.79% 0.92% 1.00% 0.97% 0.81%**
Ratio of net investment income to average net assets+ 4.34% 4.55% 4.55% 4.43% 5.00%**
Net assets, end of period (in thousands) $37,347 $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 0.79% 0.97% 1.17% 1.29% 8.34%**
Net investment income (loss) 4.34% 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 0.78% 0.92% 0.99% 0.96% 0.74%**
Net investment income 4.35% 4.55% 4.56% 4.44% 5.07%**
* Assumes initial investment at net asset value at the beginning of each period, reinvestment
of all distributions and the complete redemption of the investment at
net asset value at the end of each period.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
</TABLE>
The accompanying notes are an integral part of these financial statements. 65
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
BALANCE SHEETS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Markets Europe International Growth
Portfolio Portfolio Portfolio
<S> <C> <C> <C>
ASSETS:
Investment in securities, at value (cost $6,790,477, $9,080,740,
$45,146,343, $108,756,639 $147,572,718, $29,321,825,
$171,358,784, and $192,867,551, respectively) $ 8,924,260 $11,922,827 $65,633,680
Temporary cash investments (at amortized cost) - - 2,700,000
Cash 567,262 744,860 268,550
Foreign currencies, at value 350,607 - 17,952
Receivables -
Investment securities sold 196,570 94,533 712,801
Fund shares sold 134,906 15,515 20,326
Dividends, interest and foreign taxes withheld 6,054 17,235 107,444
Forward foreign currency contracts, net - 77 265
Other 3,801 3,936 3,190
----------- ----------- -----------
Total assets $10,183,460 $12,798,983 $69,464,208
----------- ----------- -----------
LIABILITIES:
Payables -
Investment securities purchased $ 366,733 $ 30,056 $ 180,601
Fund shares repurchased - - -
Forward foreign currency settlement contracts, net 1,191 - -
Due to affiliates 2,282 8,347 56,813
Accrued expenses 34,457 25,892 34,751
Reserve for capital gains and repatriation taxes 100,073 - -
----------- ----------- -----------
Total liabilities $ 504,736 $ 64,295 $ 272,165
----------- ----------- -----------
NET ASSETS:
Paid-in capital $ 7,276,580 $ 9,865,270 $56,192,754
Accumulated net investment income (loss) - 40,763 513,942
Accumulated net realized gain (loss) 367,310 (11,896) (8,001,638)
Net unrealized gain (loss) on:
Investments (net of reserve for capital gains and
repatriation taxes) 2,033,710 2,842,087 20,487,337
Foreign currency transactions 1,124 (1,536) (352)
----------- ----------- -----------
Total net assets $ 9,678,724 $12,734,688 $69,192,043
----------- ----------- -----------
NET ASSET VALUE PER SHARE:
Class I:
(Unlimited number of shares authorized)
Net assets $ 9,678,724 $12,734,688 $69,192,043
Shares outstanding 516,185 935,589 4,499,154
Net asset value per share $ 18.75 $ 13.61 $ 15.38
----------- ----------- -----------
Class II:
(Unlimited number of shares authorized)
Net assets
Shares outstanding
Net asset value per share
</TABLE>
66 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>
$115,218,247 $153,933,662 $27,234,759 $201,663,204 $222,725,662
5,400,000 11,300,000 2,400,000 2,900,000 3,700,000
108,324 91,151 53,551 71,923 22,209
- - - - -
653,390 294,782 - 69,316 143,618
- 448 6,977 174,122 10,847
120,483 30,219 227,295 180,669 510,284
- - - -
5,508 5,700 4,400 4,285 3,180
------------ ------------ ----------- ------------ ------------
$121,505,952 $165,655,962 $29,926,982 $205,063,519 $227,115,800
------------ ------------ ----------- ------------ ------------
$ 808,584 $ 2,740,256 $ 1,553,292 $ - $ 252,500
72,194 33,140 17,235 - 151,681
- - - - -
67,641 89,957 21,233 112,052 129,305
31,310 62,277 17,383 24,131 25,323
- - - - -
------------ ------------ ----------- ------------ ------------
$ 979,729 $ 2,925,630 $ 1,609,143 $ 136,183 $ 558,809
------------ ------------ ----------- ------------ ------------
$106,782,924 $144,432,544 $35,928,201 $173,707,664 $181,021,194
1,047,541 - 79,352 - 489,191
6,234,150 11,936,844 (5,602,648) 915,252 15,188,495
6,461,608 6,360,944 (2,087,066) 30,304,420 29,858,111
- - - - -
------------ ------------ ----------- ------------ ------------
$120,526,223 $162,730,332 $28,317,839 $204,927,336 $226,556,991
------------ ------------ ----------- ------------ ------------
$120,526,223 $162,730,332 $28,317,839 $204,927,336 $226,379,052
7,414,103 7,423,372 2,413,269 9,028,925 10,927,670
$ 16.26 $ 21.92 $ 11.73 $ 22.70 $ 20.72
------------ ------------ ----------- ------------ ------------
$ 177,939
8,547
$ 20.82
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 67
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
BALANCE SHEETS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Strategic Swiss Franc America Money
Balanced Income Bond Income Market
Portfolio Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in securities, at value (cost
$67,758,542, $1,140,495, $45,870,564,
$29,972,511, and $0, respectively) $70,979,005 $1,134,488 $40,383,798 $28,335,672 $ -
Temporary cash investments
(at amortized cost) 1,300,000 - 1,800,000 1,400,000 37,216,754
Cash 41,311 98,137 40,251 3,786 88,596
Foreign cash, at value - - 784,636 - -
Receivables -
Fund shares sold - - - 16,680 34,093
Dividends, interest and foreign taxes
withheld 529,148 19,069 847,068 305,242 36,700
Due from Pioneer Investment
Management, Inc. - 19,009 - - -
Other 6,072 1,180 4,599 4,382 4,404
----------- ---------- ----------- ----------- -----------
Total assets $72,855,536 $1,271,883 $43,860,352 $30,065,762 $37,380,547
----------- ---------- ----------- ----------- -----------
LIABILITIES:
Payables -
Investment securities purchased $ - $ 13,922 $ - $ 249,453 $ -
Fund shares repurchased 125,728 - 105,596 - -
Forward foreign currency portfolio
hedge contracts, net - 202 43,291 - -
Due to affiliates 42,758 54 26,835 16,647 16,979
Accrued expenses 18,443 14,001 16,166 20,748 16,897
----------- ---------- ----------- ----------- -----------
Total liabilities $ 186,929 $ 28,179 $ 191,888 $ 286,848 $ 33,876
----------- ---------- ----------- ----------- -----------
NET ASSETS:
Paid-in capital $71,866,351 $1,260,902 $50,108,771 $31,655,337 $37,346,671
Accumulated net investment income (loss) 17,111 (1,259) (427,989) - -
Accumulated net realized loss (2,435,318) (9,643) (447,806) (239,584) -
Net unrealized gain (loss) on:
Investments 3,220,463 (6,007) (5,486,766) (1,636,839) -
Foreign currency transactions - (289) (77,746) - -
----------- ---------- ----------- ----------- -----------
Total net assets $72,668,607 $1,243,704 $43,668,464 $29,778,914 $37,346,671
----------- ---------- ----------- ----------- -----------
NET ASSET VALUE PER SHARE:
Class I:
(Unlimited number of shares authorized)
Net assets $72,668,607 $1,243,704 $43,668,464 $29,778,914 $37,346,671
Shares outstanding 5,076,867 127,505 3,848,304 3,145,054 37,346,671
Net asset value per share $ 14.31 $ 9.75 $ 11.35 $ 9.47 $ 1.00
----------- ---------- ----------- ----------- -----------
</TABLE>
68 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Markets Europe International Growth
Portfolio Portfolio Portfolio
Year Ended Year Ended Year Ended
12/31/99 12/31/99 12/31/99
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $1,803, $12,847, and
$84,102, respectively) $ 19,621 $ 119,641 $ 818,851
Interest (net of foreign taxes withheld of $59, $0, and $75,
respectively) 7,648 29,761 91,228
---------- ---------- -----------
Total investment income $ 27,269 $ 149,402 $ 910,079
---------- ---------- -----------
EXPENSES:
Management fees $ 27,206 $ 71,034 $ 530,396
Transfer agent fees 916 842 795
Distribution fees (Class II) - - -
Administrative fees 33,893 30,525 24,744
Custodian fees 72,575 60,795 61,807
Professional fees 13,580 13,264 15,520
Printing 5,147 4,827 9,729
Fees and expenses of nonaffiliated trustees 539 539 411
Miscellaneous 3,041 2,268 6,285
---------- ---------- -----------
Total expenses $ 156,897 $ 184,094 $ 649,687
Less management fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (111,935) (74,559) -
Less fees paid indirectly (3,562) (2,983) (1,141)
---------- ---------- -----------
Net expenses $ 41,400 $ 106,552 $ 648,546
---------- ---------- -----------
Net investment income (loss) $ (14,131) $ 42,850 $ 261,533
---------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FUTURES CONTRACTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments (net of capital gains taxes paid) $ 383,872 $ (11,914) $(1,899,972)
Futures contracts (2,192) - -
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (237) (2,302) 70,780
---------- ---------- -----------
$ 381,443 $ (14,216) $(1,829,192)
---------- ---------- -----------
Change in net unrealized gain or loss from:
Investments $2,027,908 $2,776,047 $22,682,884
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies 1,124 (1,537) (2,500)
---------- ---------- -----------
$2,029,032 $2,774,510 $22,680,384
---------- ---------- -----------
Net gain on investments and foreign currency transactions $2,410,475 $2,760,294 $20,851,192
---------- ---------- -----------
Net increase in net assets resulting from operations $2,396,344 $2,803,144 $21,112,725
---------- ---------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 69
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Capital Growth Real Estate Growth and
Growth Shares Growth Income
Portfolio Portfolio Portfolio Portfolio
Year Ended Year Ended Year Ended Year Ended
12/31/99 12/31/99 12/31/99 12/31/99
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of
$7,461, $2,538, $2,962, $7,050, $0,
$3,337, $0, $0, $0 and $0, respectively) $ 1,464,774 $ 526,717 $ 1,885,015 $ 2,116,923
Interest (net of foreign taxes withheld of $0,
$0, $0, $0, $0, $0, $0, $759, $0, and $0,
respectively) 296,217 392,426 49,895 216,011
----------- ----------- ----------- -----------
Total investment income $ 1,760,991 $ 919,143 $ 1,934,910 $ 2,332,934
----------- ----------- ----------- -----------
EXPENSES:
Management fees $ 747,637 $ 878,440 $ 311,616 $ 961,059
Transfer agent fees 852 715 806 792
Distribution fees (Class II) - - - -
Administrative fees 31,304 29,717 31,609 31,510
Custodian fees 68,386 80,525 27,512 47,131
Professional fees 16,134 17,920 14,567 16,029
Printing 5,709 8,623 9,937 7,163
Fees and expenses of nonaffiliated trustees 365 580 429 481
Miscellaneous 7,895 6,418 6,934 8,757
----------- ----------- ----------- -----------
Total expenses $ 878,282 $ 1,022,938 $ 403,410 $ 1,072,922
Less management fees waived and
expenses reimbursed by Pioneer
Investment Management, Inc. - - (46,643) -
Less fees paid indirectly (961) (375) (2,815) (556)
----------- ----------- ----------- -----------
Net expenses $ 877,321 $ 1,022,563 $ 353,952 $ 1,072,366
----------- ----------- ----------- -----------
Net investment income (loss) $ 883,670 $ (103,420) $ 1,580,958 $ 1,260,568
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $ 7,085,784 $12,406,777 $(5,736,257) $ 943,556
Forward foreign currency contracts and
other assets and liabilities denominated
in foreign currencies - - - -
----------- ----------- ----------- -----------
$ 7,085,784 $12,406,777 $(5,736,257) $ 943,556
----------- ----------- ----------- -----------
Change in net unrealized gain or loss from:
Investments $ 5,641,059 $(4,347,904) $ 2,877,643 $20,385,097
Forward foreign currency contracts and
other assets and liabilities denominated
in foreign currencies - - - -
----------- ----------- ----------- -----------
$ 5,641,059 $(4,347,904) $ 2,877,643 $20,385,097
----------- ----------- ----------- -----------
Net gain (loss) on investments and foreign
currency transactions $12,726,843 $ 8,058,873 $(2,858,614) $21,328,653
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations $13,610,513 $ 7,955,453 $(1,277,656) $22,589,221
----------- ----------- ----------- -----------
</TABLE>
70 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Equity- Strategic Swiss Franc America Money
Income Balanced Income Bond Income Market
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Year Ended Year Ended 7/29/99 to Year Ended Year Ended Year Ended
12/31/99 12/31/99 12/31/99 12/31/99 12/31/99 12/31/99
<S> <C> <C> <C> <C> <C>
$ 5,897,262 $ 666,776 $ - $ - $ - $ -
189,666 2,427,693 31,036 1,795,113 1,935,334 1,448,401
------------ ----------- -------- ----------- ----------- ----------
$ 6,086,928 $ 3,094,469 $ 31,036 $ 1,795,113 $ 1,935,334 $1,448,401
------------ ----------- -------- ----------- ----------- ----------
$ 1,459,899 $ 461,190 $ 2,530 $ 277,553 $ 163,638 $ 140,152
906 828 310 774 724 756
101 - - - - -
45,919 31,591 13,694 31,576 30,887 31,297
43,555 25,347 7,411 35,058 22,130 23,808
18,199 19,522 6,510 15,353 14,534 15,796
8,034 7,091 2,480 7,685 5,122 7,733
539 604 155 657 448 432
15,714 6,864 561 6,964 5,981 3,151
------------ ----------- -------- ----------- ----------- ----------
$ 1,592,866 $ 553,037 $ 33,651 $ 375,620 $ 243,464 $ 223,125
- - (27,650) - - (118)
(1,025) (2,798) (1,136) (1,600) (5,190) (2,761)
------------ ----------- -------- ----------- ----------- ----------
$ 1,591,841 $ 550,239 $ 4,865 $ 374,020 $ 238,274 $ 220,246
------------ ----------- -------- ----------- ----------- ----------
$ 4,495,087 $ 2,544,230 $ 26,171 $ 1,421,093 $ 1,697,060 $1,228,155
------------ ----------- -------- ----------- ----------- ----------
$ 15,265,131 $ 691,294 $(10,704) $ (791,772) $ (239,584) $ -
- - (172) (1,180,618) - -
------------ ----------- -------- ----------- ----------- ----------
$ 15,265,131 $ 691,294 $(10,876) $(1,972,390) $ (239,584) $ -
------------ ----------- -------- ----------- ----------- ----------
$(17,458,854) $(1,486,313) $ (6,007) $(5,772,119) $(2,217,780) $ -
- - (289) (106,959) - -
------------ ----------- -------- ----------- ----------- ----------
$(17,458,854) $(1,486,313) $ (6,296) $(5,879,078) $(2,217,780) $ -
------------ ----------- -------- ----------- ----------- ----------
$ (2,193,723) $ (795,019) $(17,172) $(7,851,468) $(2,457,364) $ -
------------ ----------- -------- ----------- ----------- ----------
$ 2,301,364 $ 1,749,211 $ 8,999 $(6,430,375) $ (760,304) $1,228,155
------------ ----------- -------- ----------- ----------- ----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 71
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging International
Markets Portfolio Europe Portfolio Growth Portfolio
Year 10/30/98 Year 10/30/98 Year Year
Ended to Ended to Ended Ended
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ (14,131) $ (11) $ 42,850 $ 50 $ 261,533 $ 543,956
Net realized gain (loss) on investments,
futures contracts and foreign currency
transactions 381,443 3 (14,216) 4,693 (1,829,192) (4,898,778)
Change in net unrealized gain or loss on
investments and other assets and
liabilities denominated in foreign
currencies 2,029,032 5,802 2,774,510 66,041 22,680,384 1,646,390
---------- -------- ----------- ---------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations $2,396,344 $ 5,794 $ 2,803,144 $ 70,784 $ 21,112,725 $ (2,708,432)
---------- -------- ----------- ---------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income
Class I $ - $ - $ - $ - $ (653,271) $ (902,674)
Net realized gain
Class I - - (4,510) - - (4,137,337)
Tax return of capital
Class I - - - - - -
---------- -------- ----------- ---------- ------------ ------------
Total distributions to shareholders $ - $ - $ (4,510) $ - $ (653,271) $ (5,040,011)
---------- -------- ----------- ---------- ------------ ------------
FROM FUND SHARE
TRANSACTIONS:
Net proceeds from sale of shares $8,263,933 $ 27,691 $10,499,445 $1,449,191 $ 10,290,815 $ 17,420,739
Reinvestment of distributions - - 4,510 - 653,271 5,040,011
Cost of shares repurchased (1,114,326) (712) (2,187,787) (89) (13,736,536) (12,599,547)
---------- -------- ----------- ---------- ------------ ------------
Net increase (decrease) in net assets
resulting from fund share transactions $7,149,607 $ 26,979 $ 8,316,168 $1,449,102 $ (2,792,450) $ 9,861,203
---------- -------- ----------- ---------- ------------ ------------
Net increase (decrease) in net assets $9,545,951 $ 32,773 $11,114,802 $1,519,886 $ 17,667,004 $ 2,112,760
---------- -------- ----------- ---------- ------------ ------------
NET ASSETS:
Beginning of period 132,773 100,000 1,619,886 100,000 51,525,039 49,412,279
---------- -------- ----------- ---------- ------------ ------------
End of period $9,678,724 $132,773 $12,734,688 $1,619,886 $ 69,192,043 $ 51,525,039
---------- -------- ----------- ---------- ------------ ------------
Accumulated net investment income (loss),
end of period $ - $ (2) $ 40,763 $ 215 $ 513,942 $ 497,990
---------- -------- ----------- ---------- ------------ ------------
CAPITAL SHARE ACTIVITY:
Class I:
Shares sold by subscription 590,026 2,726 973,620 142,843 862,802 1,390,758
Shares issued for distributions reinvested - - 432 - 57,506 445,231
Shares redeemed (86,499) (68) (191,297) (9) (1,198,328) (1,099,900)
---------- -------- ----------- ---------- ------------ ------------
Net increase (decrease) in fund shares 503,527 2,658 782,755 142,834 (278,020) 736,089
---------- -------- ----------- ---------- ------------ ------------
</TABLE>
72 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 and
Portfolio Portfolio Growth Portfolio Income Portfolio
Year Year Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended Ended Ended
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
<S> <C> <C> <C> <C> <C> <C> <C>
$ 883,670 $ 1,051,109 $ (103,420) $ 32,441 $ 1,580,958 $ 1,628,898 $ 1,260,568 $ 366,288
7,085,784 (850,768) 12,406,777 (166,314) (5,736,257) 438,016 943,556 148,757
5,641,059 (6,899,238) (4,347,904) 10,684,079 2,877,643 (10,520,943) 20,385,097 9,848,566
------------ ------------ ------------ ----------- ------------ ------------ ------------ -----------
$ 13,610,513 $ (6,698,897) $ 7,955,453 $10,550,206 $ (1,277,656) $ (8,454,029) $ 22,589,221 $10,363,611
------------ ------------ ------------ ----------- ------------ ------------ ------------ -----------
$ (973,218) $ (732,912) $ (32,449) $ (1,864) $ (1,455,528) $ (1,518,501) $ (1,272,868) $ (364,104)
- (7,620,510) (196,043) - (296,057) (402,383) (166,945) -
- - - - (188,957) - - -
------------ ------------ ------------ ----------- ------------ ------------ ------------ -----------
$ (973,218) $ (8,353,422) $ (228,492) $ (1,864) $ (1,940,542) $ (1,920,884) $ (1,439,813) $ (364,104)
------------ ------------ ------------ ----------- ------------ ------------ ------------ -----------
$ 16,620,793 $ 30,338,387 $ 83,962,925 $77,029,470 $ 4,899,901 $ 16,784,581 $100,763,579 $76,560,984
973,218 8,353,422 228,492 1,864 1,940,542 1,920,884 1,439,813 364,104
(23,064,581) (15,756,228) (14,858,324) (6,555,882) (10,883,722) (14,937,948) (8,285,561) (1,557,989)
------------ ------------ ------------ ----------- ------------ ------------ ------------ -----------
$ (5,470,570) $ 22,935,581 $ 69,333,093 $70,475,452 $ (4,043,279) $ 3,767,517 $ 93,917,831 $75,367,099
------------ ------------ ------------ ----------- ------------ ------------ ------------ -----------
$ 7,166,725 $ 7,883,262 $ 77,060,054 $81,023,794 $ (7,261,477) $ (6,607,396) $115,067,239 $85,366,606
------------ ------------ ------------ ----------- ------------ ------------ ------------ -----------
113,359,498 105,476,236 85,670,278 4,646,484 35,579,316 42,186,712 89,860,097 4,493,491
------------ ------------ ------------ ----------- ------------ ------------ ------------ -----------
$120,526,223 $113,359,498 $162,730,332 $85,670,278 $ 28,317,839 $ 35,579,316 $204,927,336 $89,860,097
------------ ------------ ------------ ----------- ------------ ------------ ------------ -----------
$ 1,047,541 $ 1,137,089 $ - $ 32,360 $ 79,352 $ 95,767 $ -- $ 2,184
------------ ------------ ------------ ----------- ------------ ------------ ------------ -----------
1,046,011 1,855,115 3,896,305 4,273,575 386,195 1,106,588 4,807,375 4,333,802
59,093 515,961 10,381 99 159,227 134,409 67,587 20,228
(1,512,021) (1,082,203) (694,532) (365,376) (854,641) (1,015,334) (392,763) (91,682)
------------ ------------ ------------ ----------- ------------ ------------ ------------ -----------
(406,917) 1,288,873 3,212,154 3,908,298 (309,219) 225,663 4,482,199 4,262,348
------------ ------------ ------------ ----------- ------------ ------------ ------------ -----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 73
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Strategic
Equity-Income Balanced Income
Portfolio Portfolio Portfolio
Year Year Year Year 7/29/99
Ended Ended Ended Ended to
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 4,495,087 $ 3,336,915 $ 2,544,230 $ 1,639,851 $ 26,171
Net realized gain (loss) on investments and foreign
currency transactions 15,265,131 6,127,770 691,294 (3,114,995) (10,876)
Change in net unrealized gain or loss on
investments and other assets and liabilities
denominated in foreign currencies (17,458,854) 22,790,102 (1,486,313) 2,423,530 (6,296)
------------ ------------ ----------- ----------- ----------
Net increase (decrease) in net assets resulting
from operations $ 2,301,364 $ 32,254,787 $ 1,749,211 $ 948,386 $ 8,999
------------ ------------ ----------- ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class I $ (4,351,482) $ (3,318,604) $(2,554,424) $(1,636,233) $ (26,197)
Class II (1,074) - - - -
Net realized gain
Class I (6,090,521) (1,835,100) - (1,935,738) -
Tax return of capital
Class I - - - - (4,007)
------------ ------------ ----------- ----------- ----------
Total distributions to shareholders $(10,443,077) $ (5,153,704) $(2,554,424) $(3,571,971) $ (30,204)
------------ ------------ ----------- ----------- ----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 34,058,957 $ 59,078,823 $11,606,417 $28,239,062 $1,145,407
Reinvestment of distributions 10,443,077 5,153,704 2,554,424 3,571,971 30,204
Cost of shares repurchased (13,779,546) (11,570,695) (7,617,190) (6,264,939) (10,702)
------------ ------------ ----------- ----------- ----------
Net increase in net assets resulting from
fund share transactions $ 30,722,488 $ 52,661,832 $ 6,543,651 $25,546,094 $1,164,909
------------ ------------ ----------- ----------- ----------
Net increase in net assets $ 22,580,775 $ 79,762,915 $ 5,738,438 $22,922,509 $1,143,704
------------ ------------ ----------- ----------- ----------
NET ASSETS:
Beginning of period 203,976,216 124,213,301 66,930,169 44,007,660 100,000
------------ ------------ ----------- ----------- ----------
End of period $226,556,991 $203,976,216 $72,668,607 $66,930,169 $1,243,704
------------ ------------ ----------- ----------- ----------
Accumulated net investment income (loss),
end of period $ 489,191 $ 398,525 $ 17,111 $ 21,369 $ (1,259)
------------ ------------ ----------- ----------- ----------
CAPITAL SHARE ACTIVITY:
Class I:
Shares sold by subscription 1,570,521 3,004,720 803,741 1,876,280 115,515
Shares issued for distributions reinvested 490,175 257,547 180,360 237,908 3,079
Shares redeemed (645,785) (595,292) (532,051) (425,293) (1,089)
------------ ------------ ----------- ----------- ----------
Net increase in fund shares 1,414,911 2,666,975 452,050 1,688,895 117,505
------------ ------------ ----------- ----------- ----------
Class II:
Shares sold by subscription 10,044
Shares issued for distributions reinvested 52
Shares redeemed (1,549)
------------
Net increase in fund shares 8,547
------------
</TABLE>
74 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Swiss Franc America Income Money Market
Bond Portfolio Portfolio Portfolio
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
<S> <C> <C> <C> <C> <C>
$ 1,421,093 $ 923,374 $ 1,697,060 $ 1,176,895 $ 1,228,155 $ 871,632
(1,972,390) (146,396) (239,584) 93,570 - -
(5,879,078) 1,877,261 (2,217,780) 356,054 - -
------------ ----------- ------------ ------------ ------------ ------------
$ (6,430,375) $ 2,654,239 $ (760,304) $ 1,626,519 $ 1,228,155 $ 871,632
------------ ----------- ------------ ------------ ------------ ------------
$ - $(1,234,457) $ (1,697,060) $ (1,176,895) $ (1,228,155) $ (871,632)
- - - - - -
- - (26,567) - - -
(282,586) - - - - -
------------ ----------- ------------ ------------ ------------ ------------
$ (282,586) $(1,234,457) $ (1,723,627) $ (1,176,895) $ (1,228,155) $ (871,632)
------------ ----------- ------------ ------------ ------------ ------------
$ 19,177,149 $23,761,111 $ 12,694,085 $ 25,038,916 $ 53,414,674 $ 47,281,170
282,586 1,234,457 1,723,627 1,176,895 1,228,155 871,632
(10,252,079) (7,329,504) (10,976,618) (12,362,571) (38,793,023) (40,395,275)
------------ ----------- ------------ ------------ ------------ ------------
$ 9,207,656 $17,666,064 $ 3,441,094 $ 13,853,240 $ 15,849,806 $ 7,757,527
------------ ----------- ------------ ------------ ------------ ------------
$ 2,494,695 $19,085,846 $ 957,163 $ 14,302,864 $ 15,849,806 $ 7,757,527
------------ ----------- ------------ ------------ ------------ ------------
41,173,769 22,087,923 28,821,751 14,518,887 21,496,865 13,739,338
------------ ----------- ------------ ------------ ------------ ------------
$ 43,668,464 $41,173,769 $ 29,778,914 $ 28,821,751 $ 37,346,671 $ 21,496,865
------------ ----------- ------------ ------------ ------------ ------------
$ (427,989) $ (240,236) $ - $ - $ - $ -
------------ ----------- ------------ ------------ ------------ ------------
1,549,850 1,826,041 1,278,400 2,456,812 53,414,674 47,281,170
24,680 94,026 176,222 115,530 1,228,155 871,632
(840,660) (573,102) (1,111,630) (1,216,873) (38,793,023) (40,395,275)
------------ ----------- ------------ ------------ ------------ ------------
733,870 1,346,965 342,992 1,355,469 15,849,806 7,757,527
------------ ----------- ------------ ------------ ------------ ------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 75
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/99
- --------------------------------------------------------------------------------
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 thirteen 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, Strategic Income 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. Strategic Income Portfolio seeks to produce a high level of
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. 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
76
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 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. Futures Contracts
The Portfolios may enter into futures transactions to hedge against changes
in interest rates, securities prices, and currency rates or to seek to
increase total return. Upon entering into a futures contract, the
Portfolios are required to deposit with a broker an amount of cash or
securities equal to the minimum "initial margin" requirements of the
associated futures exchange. Subsequent payments for futures contracts
("variation margin") are paid or received by the Portfolios, depending on
the daily fluctuation in the value of the contracts, and are recorded by
the Portfolios as unrealized gains or losses. When the contract is closed,
the Portfolios realize a gain or loss equal to the difference between the
opening and closing value of the contract. The use of futures contracts
involves, to varying degrees, elements of market risk which may exceed the
amounts recognized by the Portfolios. Changes in value of the contracts may
not directly correlate to the changes in value of the underlying
securities. These risks may decrease the effectiveness of the Portfolios'
hedging and trading strategies and potentially result in a loss. As of
December 31, 1999, the Portfolios had no outstanding futures contracts.
C. 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.
D. 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 8).
E. 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 year ended December 31, 1999, the Emerging Markets
Portfolio paid $5,120 in such taxes.
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
unrealized appreciation on certain portfolio securities, the holding period
of such securities and the related tax rates, tax loss carryforward (if
applicable) and other such factors. As of December 31, 1999, the Emerging
Markets Portfolio had a reserve of $99,052 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 December 31, 1999, the Emerging Markets Portfolio had a
reserve of $1,021 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
77
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
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.
Capital loss carryovers are available to offset future realized capital
gains. At December 31, 1999, certain Portfolios had capital loss carryovers
as follows:
<TABLE>
<CAPTION>
Year of
Portfolio Amount Expiration
- -------------------------------------------------------------------------
<S> <C> <C>
International Growth Portfolio $7,959,885 2006 through 2007
Real Estate Growth Portfolio 4,680,724 2007
Balanced Portfolio 2,435,318 2006
Strategic Income Portfolio 1,533 2007
Swiss Franc Bond Portfolio 408,765 2005 through 2007
American Income Portfolio 144,699 2007
</TABLE>
In order to comply with federal income tax regulations, certain Portfolios
have designated the following amounts as capital gains dividends for the
purpose of the dividend paid deduction:
<TABLE>
<CAPTION>
Portfolio Amount
<S> <C>
- -----------------------------------------------
Emerging Markets Portfolio $ 5,987
Europe Portfolio 3,868
Capital Growth Portfolio 3,384,531
Growth Shares Portfolio 6,607,661
Equity Income Portfolio 15,265,131
</TABLE>
At December 31, 1999, certain Portfolios made reclassifications as
described below. These reclassifications have no impact on the net asset
values of the respective Portfolios and are designed to present the
Portfolios' capital accounts on a tax basis.
<TABLE>
<CAPTION>
Accumulated Net Accumulated Realized Paid-in
Portfolio Investment Income/Loss Gain/Loss Capital
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
Emerging Markets Portfolio $ 14,133 $ (14,133) $ -
Europe Portfolio (2,302) 2,302 -
International Growth Portfolio 407,690 (407,690) -
Growth Shares Portfolio 103,509 (103,509) -
Real Estate Growth Portfolio (141,845) 133,609 8,236
Growth and Income Portfolio 10,116 (10,116) -
Equity-Income Portfolio (51,865) 51,865 -
Balanced Portfolio 5,936 (5,936) -
Strategic Income Portfolio (1,233) 1,233 --
Swiss Franc Bond Portfolio (1,608,846) 1,761,033 (152,187)
America Income Portfolio - 28 (28)
</TABLE>
F. 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). Certain
insurance companies paid PFD $2,067,325 in commissions on the sale of trust
shares for the year ended December 31, 1999. The Strategic Income, America
Income and Money Market Portfolios 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.
78
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
G. 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
Portfolio Daily Net 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%
Strategic Income Portfolio 0.65%
Swiss Franc Bond Portfolio 0.65%
America Income Portfolio 0.55%
Money Market Portfolio 0.50%
</TABLE>
PIM had appointed Boston Financial Securities, Inc. (BFS) as the Real Estate
Growth Portfolio's subadviser. As compensation for its subadvisory services,
PIM paid BFS a management fee at the annual rate of 0.30% of the Real Estate
Growth Portfolio's average daily net assets. This agreement has been terminated
effective November 3, 1999.
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
Portfolio Average Daily Net 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%
Strategic 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 to the extent necessary to reduce the fee from 1.00% to 0.80% of
the Real Estate Growth Portfolio's average daily net assets. This agreement is
voluntary and temporary and may be revised or terminated at any time.
79
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
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 December 31, 1999, the following
amounts were payable to PIM related to management fees, administrative fees and
certain other services:
<TABLE>
<CAPTION>
Portfolio Amount
<S> <C>
- --------------------------------------------------------------------------------
Emerging Markets Portfolio $ 2,124
Europe Portfolio 8,263
International Growth Portfolio 56,722
Capital Growth Portfolio 67,500
Growth Shares Portfolio 89,875
Real Estate Growth Portfolio 21,142
Growth and Income Portfolio 111,967
Equity-Income Portfolio 129,119
Balanced Portfolio 42,647
Swiss Franc Bond Portfolio 26,784
America Income Portfolio 16,629
Money Market Portfolio 16,930
</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 December
31, 1999 the following transfer agent fees payable to PSC were included in due
to affiliates:
<TABLE>
<CAPTION>
Portfolio Amount
<S> <C>
- --------------------------------------------------------------------------------
Emerging Markets Portfolio $158
Europe Portfolio 84
International Growth Portfolio 91
Capital Growth Portfolio 141
Growth Shares Portfolio 82
Real Estate Growth Portfolio 91
Growth and Income Portfolio 85
Equity-Income Portfolio 186
Balanced Portfolio 111
Strategic Income Portfolio 54
Swiss Franc Bond Portfolio 51
America Income Portfolio 18
Money Market Portfolio 49
</TABLE>
4. Distribution Plans
The Equity-Income Portfolio has adopted a plan of distribution for Class II
shares in accordance with Rule 12b-1 under the Investment Company Act of 1940.
Under the plan, the Portfolio pays to PFD, a distribution fee of 0.25% of the
average daily net assets attributable to Class II shares.
5. Expense Offsets
The Trust has entered into certain expense offset arrangements resulting in a
reduction in the Portfolios' total expenses. For the year ended December 31,
1999, the Portfolios' expenses were reduced under such arrangements as follows:
80
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Portfolio Amount
<S> <C>
- --------------------------------------------------------------------------------
Emerging Markets Portfolio $3,562
Europe Portfolio 2,983
International Growth Portfolio 1,141
Capital Growth Portfolio 961
Growth Shares Portfolio 375
Real Estate Growth Portfolio 2,815
Growth and Income Portfolio 556
Equity-Income Portfolio 1,025
Balanced Portfolio 2,798
Strategic Income Portfolio 1,136
Swiss Franc Bond Portfolio 1,600
America Income Portfolio 5,190
Money Market Portfolio 2,761
</TABLE>
6. Aggregate Unrealized Appreciation and Depreciation
At December 31, 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 Portfolio $ 6,806,581 $ 2,254,097 $ (136,418) $ 2,117,679
Europe Portfolio 9,111,074 3,106,219 (294,466) 2,811,753
International Growth Portfolio 47,888,097 22,972,571 (2,526,988) 20,445,583
Capital Growth Portfolio 115,095,034 18,473,109 (12,949,896) 5,523,213
Growth Shares Portfolio 158,895,231 19,014,969 (12,676,538) 6,338,431
Real Estate Growth Portfolio 32,384,087 806,363 (3,555,691) (2,749,328)
Growth and Income Portfolio 174,457,523 39,505,216 (9,399,535) 30,105,681
Equity-Income Portfolio 196,567,551 41,751,239 (11,893,128) 29,858,111
Balanced Portfolio 69,058,542 6,293,874 (3,073,411) 3,220,463
Strategic Income Portfolio 1,140,495 16,042 (22,049) (6,007)
Swiss Franc Bond Portfolio 47,670,564 -- (5,486,766) (5,486,766)
America Income Portfolio 31,410,074 -- (1,674,402) (1,674,402)
</TABLE>
7. 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 year ended
December 31, 1999 were as follows:
<TABLE>
<CAPTION>
Portfolio Purchases Sales
<S> <C> <C>
- ----------------------------------------------------------------------
Emerging Markets Portfolio $ 9,662,488 $ 3,382,255
Europe Portfolio 11,579,413 3,945,719
International Growth Portfolio 46,127,612 51,542,664
Capital Growth Portfolio 98,804,502 100,559,072
Growth Shares Portfolio 122,377,865 59,306,137
Real Estate Growth Portfolio 16,149,441 19,680,050
Growth and Income Portfolio 103,561,739 11,966,990
Equity-Income Portfolio 74,268,972 51,497,207
Balanced Portfolio 33,155,016 24,642,208
Strategic Income Portfolio 870,684 96,524
Swiss Franc Bond Portfolio 19,006,290 4,665,051
</TABLE>
81
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
The cost of purchases and the proceeds from sales of long-term U.S. Government
obligations for the year ended December 31, 1999 were as follows:
<TABLE>
<CAPTION>
Portfolio Purchases Sales
<S> <C> <C>
- --------------------------------------------------------------------------------
Balanced Portfolio $16,652,167 $15,994,385
Strategic Income Portfolio 467,050 92,738
America Income Portfolio 14,948,139 11,975,412
</TABLE>
8. Forward Foreign Currency Contracts
At December 31, 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.
As of December 31, 1999, the Portfolio's open portfolio hedges were as follows.
<TABLE>
<CAPTION>
Contracts To In Exchange Settlement Net Unrealized
Portfolio Receive For Date Value Gain/(Loss)
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
Strategic Income Portfolio 54,000,000 $ 54,611 1/10/00 $ 54,404 $ (207)
Strategic Income Portfolio 13,000,000 13,107 1/24/00 13,112 5
Swiss Franc Bond Portfolio 2,900,000 1,867,678 1/14/00 1,824,387 (43,291)
</TABLE>
Outstanding forward currency settlement contracts as of December 31, 1999, were
as follows:
<TABLE>
<CAPTION>
Gross Gross Net Receivable/
Portfolio Receivable Payable (Payable)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
Emerging Markets Portfolio $ 53,209 $ 54,400 $(1,191)
Europe Portfolio 28,069 27,992 77
International Growth Portfolio 713,066 712,801 265
</TABLE>
82
<PAGE>
Pioneer Variable Contracts Trust
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareowners and the Board of Trustees of Pioneer Variable Contracts
Trust:
We have audited the accompanying balance sheets, including the schedules of
investments, of Pioneer Variable Contracts Trust (comprising, respectively, the
Emerging Markets Portfolio, the Europe Portfolio, the International Growth
Portfolio, the Capital Growth Portfolio, the Growth Shares Portfolio, the Real
Estate Growth Portfolio, the Growth and Income Portfolio, the Equity-Income
Portfolio, the Balanced Portfolio, the Strategic Income Portfolio, the Swiss
Franc Bond Portfolio, the America Income Portfolio, and the Money Market
Portfolio) as of December 31, 1999, and the related statements of operations,
the statements of changes in net assets and the financial highlights for the
periods presented. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1999 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Portfolios comprising the Pioneer Variable Contracts Trust as
of December 31, 1999, the results of their operations, the changes in their net
assets, and the financial highlights for the periods presented, in conformity
with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
February 4, 2000
83
<PAGE>
[Pioneer logo] PIONEER
VARIABLE
CONTRACTS
TRUST
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
Independent Public Accountants
Arthur Andersen LLP
This report must be preceded or accompanied by a prospectus for Pioneer
Variable Contracts Trust which includes more information about charges and
expenses. Please read the prospectus carefully before you invest or send money.
7322-00-0200
