<PAGE>
[Front cover]
[Pioneer logo]
[pictures of compass and telescope]
PIONEER
VARIABLE
CONTRACTS
TRUST
CLASS I SHARES
Pioneer Emerging Markets VCT Portfolio
Pioneer Europe VCT Portfolio
Pioneer International Growth VCT Portfolio
Pioneer Science & Technology VCT Portfolio
Pioneer Mid-Cap Value VCT Portfolio
Pioneer Growth Shares VCT Portfolio
Pioneer Real Estate Growth VCT Portfolio
Pioneer Fund VCT Portfolio
Pioneer Equity-Income VCT Portfolio
Pioneer Balanced VCT Portfolio
Pioneer High Yield VCT Portfolio
Pioneer Strategic Income VCT Portfolio
Pioneer Swiss Franc Bond VCT Portfolio
Pioneer America Income VCT Portfolio
Pioneer Money Market VCT Portfolio
SEMIANNUAL REPORT
June 30, 2000
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
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Table of Contents
<TABLE>
<S> <C>
Pioneer Emerging Markets VCT Portfolio
Portfolio and Performance Update 2
Portfolio Management Discussion 3
Pioneer Europe VCT Portfolio
Portfolio and Performance Update 4
Portfolio Management Discussion 5
Pioneer International Growth VCT Portfolio
Portfolio and Performance Update 6
Portfolio Management Discussion 7
Pioneer Science & Technology VCT Portfolio
Portfolio and Performance Update 8
Portfolio Management Discussion 9
Pioneer Mid-Cap Value VCT Portfolio
Portfolio and Performance Update 10
Portfolio Management Discussion 11
Pioneer Growth Shares VCT Portfolio
Portfolio and Performance Update 12
Portfolio Management Discussion 13
Pioneer Real Estate Growth VCT Portfolio
Portfolio and Performance Update 14
Portfolio Management Discussion 15
Pioneer Fund VCT Portfolio
Portfolio and Performance Update 16
Portfolio Management Discussion 17
Pioneer Equity-Income VCT Portfolio
Portfolio and Performance Update 18
Portfolio Management Discussion 19
Pioneer Balanced VCT Portfolio
Portfolio and Performance Update 20
Portfolio Management Discussion 21
Pioneer High Yield VCT Portfolio
Portfolio and Performance Update 22
Portfolio Management Discussion 23
Pioneer Strategic Income VCT Portfolio
Portfolio and Performance Update 24
Portfolio Management Discussion 25
Pioneer Swiss Franc Bond VCT Portfolio
Portfolio and Performance Update 26
Portfolio Management Discussion 27
Pioneer America Income VCT Portfolio
Portfolio and Performance Update 28
Portfolio Management Discussion 29
Pioneer Money Market VCT Portfolio
Portfolio Management Discussion 30
Schedules of Investments
Pioneer Emerging Markets VCT Portfolio 31
Pioneer Europe VCT Portfolio 35
Pioneer International Growth VCT Portfolio 37
Pioneer Science & Technology VCT Portfolio 40
Pioneer Mid-Cap Value VCT Portfolio 42
Pioneer Growth Shares VCT Portfolio 45
Pioneer Real Estate Growth VCT Portfolio 46
Pioneer Fund VCT Portfolio 47
Pioneer Equity-Income VCT Portfolio 50
Pioneer Balanced VCT Portfolio 52
Pioneer High Yield VCT Portfolio 56
Pioneer Strategic Income VCT Portfolio 58
Pioneer Swiss Franc Bond VCT Portfolio 62
Pioneer America Income VCT Portfolio 64
Pioneer Money Market VCT Portfolio 65
Financial Statements 66
Notes to Financial Statements 84
</TABLE>
<PAGE>
PIONEER VARIABLE CONTRACTS TRUST
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LETTER FROM THE CHAIRMAN 6/30/00
--------------------------------------------------------------------------------
Dear Contract Owner,
For over a year, the Federal Reserve has been trying to suppress inflationary
pressures and restrain economic growth in the U.S. by raising short-term
interest rates. Because they represent increased costs, higher interest rates
cut into corporate profits.
With the possibility of a slowing economy and an uncertain profit outlook
overhanging the stock market, investors shifted from sector to sector in the
first half of 2000 looking for attractive opportunities. Heightened stock market
volatility was the result. Bonds also lost luster, because existing,
lower-paying issues could not compete with the higher rates that now prevail. By
summer, we began to see evidence that the Fed's tactics were having some impact,
as key statistics hinted at a contraction of the economy's growth rate.
Volatile markets should not sidetrack your plans for dealing with your essential
financial goals. Whatever your long-range needs may be -- money for a child's
education, funding a comfortable retirement, or some other cherished objective
-- those needs remain in place no matter what the market may do this week or
next month. For that reason, it makes sense to focus your investment strategy
beyond interim ups and downs.
Mid-year is a good time to talk to your financial representative to review what
has been happening and to make sure your strategy is intact. Part of that
discussion should be devoted to your portfolio's diversification. Do you have a
blend of stocks and bonds that you are comfortable with and that can help you
meet your goals? Or is it time to make adjustments? Be sure to include your IRAs
and other retirement vehicles when you evaluate your overall portfolio.
I hope you will take time to read on to learn more about Pioneer Variable
Contracts Trust. The Portfolio Management Discussions will help you to
understand performance during the past six months and learn what expectations
are for the months ahead. If you have questions or would like more information
about Pioneer Variable Contracts Trust, please contact your investment
professional.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
Pioneer Emerging Markets VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
[START PIE CHART]
Sector Distribution
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Technology 34%
Communication Services 26%
Financial 14%
Consumer Staples 10%
Consumer Cyclicals 8%
Energy 3%
Healthcare 2%
Capital Goods 1%
Other 2%
</TABLE>
[END PIE CHART]
[START PIE CHART]
Geographical Distribution
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Asia 52%
Latin America 24%
Other 14%
Israel 6%
Africa 4%
</TABLE>
[END PIE CHART]
--------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Taiwan Semiconductor Manufacturing Co. 2.87%
2. Telefonos de Mexico SA (L Shares) (A.D.R.) 2.41
3. United Microelectronics Corp., Ltd. 2.31
4. Samsung Electronics Co. 2.27
5. Carso Global Telecom 2.09
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $16.99 $18.75
Accumulated Unit Value 1.6921 1.8444
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$ - $ - $0.331
</TABLE>
--------------------------------------------------------------------------------
Performance of a $10,000 Investment
The following chart shows the value of an investment made in Pioneer Emerging
Markets VCT Portfolio at net asset value, compared to the growth of MSCI
Emerging Markets Free Index.
[START LINE CHART]
<TABLE>
<CAPTION>
Pioneer Emerging MSCI Emerging
Markets VCT Portfolio* Markets Free
Index
<S> <C> <C>
10/98 10000 10000
10832 10510
10675 10490
10503 10170
2/99 10605 10050
12003 10990
13487 12550
13409 12620
6/99 14931 14120
14525 13610
14657 12820
14162 12330
10/99 14463 13460
15761 15530
17766 18750
17872 19050
2/00 18108 21520
18197 21150
16472 17910
15791 16260
6/00 16347 17323
</TABLE>
[END LINE CHART]
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
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 38.96%
(10/30/98)
1 Year 22.69%
</TABLE>
All total returns shown assume reinvestment of distributions at net asset value.
* Reflects Portfolio performance only. Does not reflect any applicable
insurance fees or surrender charges.
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>
Pioneer Emerging Markets VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
[SIDEBAR]
International investing may involve special risks, including differences in
accounting and currency, as well as economic and political instability.
The Portfolio's investment adviser, Pioneer Investment Management, Inc., reduced
its management fee and certain other expenses; otherwise, returns would have
been lower.
[END SIDEBAR]
In the following discussion, Mark Madden, manager of Pioneer Emerging Markets
VCT Portfolio, explains the current positioning of the Portfolio and factors
impacting its performance.
Q: How did the the Portfolio perform over the past six months?
A: For the six months ended June 30, 2000, Pioneer Emerging Markets VCT
Portfolio delivered a total return of -7.61% at net asset value. In
comparison, the MSCI Emerging Markets Free Index returned -7.99% for the
same period. The 23 variable annuity emerging markets underlying funds
tracked by Lipper returned an average of -6.76%. (Lipper is an independent
firm that tracks variable annuity portfolio performance.)
Q: Where are you finding attractive investment opportunities in the emerging
markets?
A: As a result of the recoveries in many of the economies in Asia and Latin
America, we are finding numerous companies that we think are poised to
deliver strong earnings growth over the next several years. For example,
Portfolio holding Star Publications, a media company in Malaysia, is
experiencing a sharp recovery in profitability. During the recession,
advertising revenue fell by over 20% because advertising is one of the
easiest expenses for companies to cut during difficult times. Now that the
Malaysian economy has returned to strong growth, advertising revenues are
recovering sharply.
Your Portfolio benefited from the trend of multinational corporations in
the United States and Europe increasingly outsourcing production and
services to companies in developing countries in order to reduce costs and
improve efficiency in bringing new products to the marketplace. Today, the
need for semiconductor outsourcing is particularly strong with the
increasing demand for products such as personal computers, cellular phones
and internet devices. Portfolio holdings Taiwan Semiconductor Manufacturing
and United Microelectronics of Taiwan are among the most competitive
producers of semiconductor wafers in the world and we anticipate they'll
benefit from growth in this industry.
Q: How did the recent correction in the U.S. equity markets affect the
Portfolio's performance?
A: The correction in the U.S. equity markets led to similar corrections in
nearly all equity markets worldwide. The primary cause for investor concern
has been the potential for higher global inflation which would lead to an
increase in U.S. interest rates. Despite the improving prospects of the
countries and companies in which the Portfolio is invested, many of these
holdings saw significant corrections in March and April. We believe that
the current uncertainty relating to the prospects of the U.S. economy and
equity markets may continue to weigh on equity markets in the near term.
However, the recent improvement in many emerging market economies and
companies has the potential to provide attractive investment opportunities
for the intermediate to long term.
Q: What is your outlook?
A: We view the recent correction in stock prices as an opportunity to add to
existing positions that have compelling long-term prospects. The companies
in your Portfolio are well established with strong underlying fundamentals,
effective management, dynamic growth prospects and reasonable valuations.
We believe that such companies have limited downside during market
corrections and will reward shareholders who stay the course.
Investing in emerging markets carries its own set of risks, including but
not limited to, currency fluctuations, and social and economic instability.
However, we feel confident that the long-term prospects warrant serious
consideration. Arguably, accelerating economic growth, low inflation,
stable interest rates and declining political risk all point to solid
economic expansion in the years ahead.
3
<PAGE>
Pioneer Europe VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
[START PIE CHART]
Sector Distribution
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Technology 28%
Financial 21%
Communication Services 16%
Healthcare 9%
Consumer Staples 8%
Energy 6%
Consumer Cyclicals 5%
Capital Goods 4%
Other 3%
</TABLE>
[END PIE CHART]
[START PIE CHART]
Geographical Distribution
(As a percentage of equity holdings)
<TABLE>
<S> <C>
United Kingdom 23.8%
France 18.2%
Switzerland 10.5%
Germany 9.6%
Italy 8.0%
Netherlands 7.9%
Finland 6.8%
Sweden 5.4%
Spain 4.5%
Norway 2.0%
United States 1.9%
Belgium 1.0%
Portugal 0.4%
</TABLE>
[END PIE CHART]
--------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Vodafone AirTouch Plc 4.63%
2. Nokia Oyj 4.46
3. Dassault Systemes SA 3.07
4. Telefonaktiebologet LM Ericsson 2.39
5. Banca Fideuram SpA 2.09
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $13.30 $13.61
Accumulated Unit Value 1.3032 1.3396
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.023 $ - $0.010
</TABLE>
--------------------------------------------------------------------------------
Performance of a $10,000 Investment
The following chart shows the value of an investment made in Pioneer Europe VCT
Portfolio at net asset value, compared to the growth of MSCI Europe Index.
[START LINE CHART]
<TABLE>
<CAPTION>
Pioneer Europe MSCI Europe
VCT Portfolio* Index
<S> <C> <C>
10/98 10000 10000
10150 10532
10600 10992
10750 10922
2/99 10260 10644
10220 10761
10480 11081
10180 10549
6/99 10426 10728
10486 10827
10576 10938
10566 10854
10/99 10997 11253
11787 11557
13618 12741
13338 11834
2/00 15600 12451
15159 12751
13909 12188
13118 12089
6/00 13341 12348
</TABLE>
[END LINE CHART]
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
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 18.84%
(10/30/98)
1 Year 27.95%
</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>
Pioneer Europe VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
[SIDEBAR]
International investing may involve special risks, including differences in
accounting and currency, as well as economic and political instability.
[END SIDEBAR]
Rising interest rates and investors' disenchantment with overvalued stocks,
particularly in the technology and telecommunications sectors, triggered a
cathartic retreat in global stock markets this spring. Europe, which held up
relatively well in spite of a weak euro, saw the stirrings of a recovery by the
end of June. In the following interview, manager Patrick M. Smith discusses the
factors that influenced Pioneer Europe VCT Portfolio's performance.
Q: Did the sharp sell off in technology and telecommunications stocks impact
performance?
A: The Portfolio's considerable investment in these sectors succumbed to
market pressures, which began to mount in mid-March. Concerns about the
impact of higher interest rates on corporate profits also took a toll on
financial stocks. However, our decision to avoid the retail, automobile,
steel and paper sectors entirely, allowed the Portfolio to sidestep these
poorly performing industries. Prospects brightened toward the end of the
reporting period, but the spring correction more than erased the gains
achieved up until the sell off. In sum, the Portfolio posted a U.S.
dollar-based total return of -2.04% at net asset value for the six months
ended June 30, 2000. In comparison, the MSCI Europe Index returned -3.08%.
Q: Are you reassessing the Portfolio's technology-related holdings in light of
their recent volatility?
A: In the current environment, we're proceeding cautiously but generally view
the pullback in stock prices as an opportunity to add to existing
positions. Technology stocks, by their very nature, can experience wide
price swings. However, the companies in the Portfolio are large,
well-established businesses that typically weather market downturns more
successfully than their smaller, lesser-known counterparts. We're convinced
of the fundamental strengths of each company and believe their longer-term
growth prospects remain exceptionally strong.
Q: Is the euro's decline tarnishing the performance of European stocks?
A: The euro's descent, from a high of $1.18 just after its launch in January
1999 to today's levels of approximately $0.95, has certainly weakened the
returns of European investments in U.S. dollar terms. Fortunately, however,
the strong performance of European stocks is more than making up for
currency declines. Furthermore, a weaker currency carries advantages --
most notably, the export boom, which is advantageous for many Portfolio
holdings, including Siemens (Germany) and Alcatel (France). Regardless of
where this currency finds its equilibrium, the goal of a single currency is
what made Europe's economic renaissance possible.
Q: Where are you finding new investment opportunities?
A: With Y2K concerns behind them, software companies offer bright promise as
companies big and small retool for Internet business. Companies providing
software and information-technology services should profit from increased
corporate spending on technology and the increasing motivation to outsource
important services. Several holdings are well positioned to benefit from
this opportunity. Framtidsfabriken (Sweden) and TJ Group (Finland) offer
the expertise to help build web sites on the Internet. Intershop
Communications (Germany) provides Internet commerce software.
Beleaguered for months, the anticipation of sequencing the entire human
genetic makeup is boosting prospects for the pharmaceutical industry. In
the next decade, the human genome project will create myriad opportunities
for drug companies investing heavily in the research and development of
gene-derived drugs -- including Portfolio holdings SmithKline Beecham
(United Kingdom) and Roche Holdings (Switzerland). We're also increasing
the weighting of financial stocks, particularly in the banking sector, as
stock valuations are quite compelling. Asset managers, including holdings
Bipop-Carire (Italy) and Marschillek Lautenschlaeger und Patner (Germany)
continue to profit from the region's rising stock markets.
Q: What is your outlook?
A: Europe is experiencing an American-style recovery after a decade of
corporate restructuring and policy reform. Inflation and interest rates
have fallen, productivity is climbing and a technologically driven economy
is emerging -- all of which are energizing profits and sending stock prices
higher. Pending tax and pension reform will also encourage a more efficient
redistribution of capital and invite further investment in the region's
stock markets.
5
<PAGE>
Pioneer International Growth VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
[START PIE CHART]
Sector Diversification
(As a percentage of equtiy holdings)
<TABLE>
<S> <C>
Technology 27%
Communication Services 18%
Consumer Cyclicals 12%
Financial 12%
Consumer Staples 9%
Basic Materials 5%
Energy 5%
Capital Goods 5%
Healthcare 4%
Other 3%
</TABLE>
[END PIE CHART]
[START PIE CHART]
Geographical Distribution
(As a percentage of equtiy holdings)
<TABLE>
<S> <C>
Europe 67%
Japan 17%
Australasia 9%
Americas 4%
Other 3%
</TABLE>
[END PIE CHART]
--------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Nokia Oyj 2.46%
2. Vodafone AirTouch Plc 2.24
3. Telefonica SA 1.98
4. Koninklijke Philips Electronics NV 1.93
5. NTT DoCoMo, Inc. 1.78
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $14.30 $15.38
Accumulated Unit Value 1.5287 1.6434
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.108 $ - $ -
</TABLE>
--------------------------------------------------------------------------------
Performance of a $10,000 Investment
The following chart shows the value of an investment made in Pioneer
International Growth VCT Portfolio at net asset value, compared to the growth of
MSCI EAFE Index.
[START LINE CHART]
<TABLE>
<CAPTION>
Pioneer International MSCI EAFE
Growth VCT Portfolio* Index
<S> <C> <C>
3/95 10000 10000
6/95 10360 10073
11053 10918
6/96 11845 11411
11998 11579
6/97 13888 12877
12581 11784
6/98 12885 13661
12163 14137
6/99 12983 14697
17561 17950
6/00 16451 17222
</TABLE>
[END LINE CHART]
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, Malaysia, 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
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 9.75%
(3/1/95)
5 Years 9.69%
1 Year 26.71%
</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>
Pioneer International Growth VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
[SIDEBAR]
International investing may involve special risks, including differences in
accounting and currency, as well as economic and political instability.
[END SIDEBAR]
Stock markets around the globe retreated in the later months of the period and
given the tremendous appreciation of Internet-related and telecommunications
stocks since last fall, it's not surprising that these sectors would fall the
hardest. Information technology, media and capital goods, however, which
comprise a considerable area of investment for Pioneer International Growth VCT
Portfolio, prospered during the period. In the following interview, Pavlos M.
Alexandrakis, your Portfolio's manager, explains the impact of these and other
events on the Portfolio's performance.
Q: Did the correction in Internet-related and telecommunications stocks affect
the Portfolio dramatically?
A: The pullback in these sectors was considerable and the Portfolio's generous
weighting in technology and telecommunications stocks compounded the
influence of the market's reversal on its performance. Nevertheless, we
remain enthusiastic about prospects for these companies and have been
adding to our positions at these more affordable prices. Portfolio holdings
British Telecom, Vodafone AirTouch (UK), Nippon Telegraph & Telephone
(Japan) and Koninklijke Philips Electronics (Netherlands) are all
world-class companies with strong long-term growth potential.
For the six months ended June 30, 2000, the Portfolio returned -6.32% at
net asset value. The 131 variable annuity international underlying funds
tracked by Lipper, Inc. posted an average of -3.59% for the same period.
(Lipper is an independent firm that tracks annuity portfolio performance.)
Q: Is the global trend toward higher interest rates affecting the Portfolio's
financial holdings?
A: Yes, but the impact was mixed. Bank stocks, including Lloyds TSB Group and
Royal Bank of Scotland in the United Kingdom, were hardest hit. The
Portfolio's investments in asset managers such as Axa (France) directly
benefited from rising stock markets, particularly in Europe. Bipop-Carire
(Italy) is benefiting from Internet banking and e-trading.
The potential for higher inflation has all of the world's central banks on
the defensive. While the Portfolio does not invest in the United States,
we're closely monitoring the Federal Reserve's aggressive monetary policy,
since its interest rate decisions have strong implications internationally.
Q: Is the euro's decline tarnishing the performance of European stocks?
A: The euro's descent, from a high of $1.18 just after its launch in January
1999 to today's levels of approximately $0.95, has certainly weakened the
returns of European investments in U.S. dollar terms. However, a weaker
currency carries some advantages -- most notably, it helps boost exports,
which is advantageous for many Portfolio holdings, including Siemens
(Germany) and Nestle (Switzerland).
Q: Are you seeing further evidence of reform in Japan?
A: Yes. After years of stagnation, Japan is undergoing positive change that
bodes well for its future economic growth. Financial institutions are
restructuring and Japanese companies are eliminating excess capacity and
improving their profitability. As in Europe, the growth of pensions and
mutual funds is creating a shareholder constituency that demands reform in
Japan's corporate-governance structures and a greater role of profitability
standards in business decision-making. A surge in foreign investments and
an explosion of mergers and acquisitions is also changing the landscape,
albeit slowly.
The ability of the Internet economy to revolutionize old business practices
cannot be overstated. Portfolio holding Softbank is creating a whole host
of financial consumer services, including E*Trade Japan and Morningstar
Japan for stock quotations.
Q: What is your outlook?
A: The roller coaster ride of the past six months raises more than a few
eyebrows. However, the correction is producing a tangible shift in investor
psychology -- helping to wring out euphoric speculation and restoring
balance to the financial markets. A more rational mentality is taking hold
that prizes profits over promise and performance over vision --
particularly in the dazzling world of "new economy" dot-com stocks. At
Pioneer, we've always emphasized the bottom line fundamentals and think a
return to the basic tenets of investing bodes well for the companies
comprising your Portfolio.
7
<PAGE>
Pioneer Science & Technology VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
[START PIE CHART]
Portfolio Diversification
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Common Stocks 76%
Short-Term Cash Equivalents 14%
International Common Stocks 8%
Depositary Receipts for International Stocks 2%
</TABLE>
[END PIE CHART]
[START PIE CHART]
Sector Distribution
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Technology 89%
Capital Goods 6%
Healthcare 4%
Communication Services 1%
</TABLE>
[END PIE CHART]
--------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Intel Corp. 4.33%
2. Micron Technology, Inc. 2.85
3. Applied Materials, Inc. 2.45
4. Novellus Systems, Inc. 2.29
5. Oracle Corp. 2.27
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 5/1/00
<S> <C> <C>
Net Asset Value per Share $11.69 $10.00
Accumulated Unit Value 1.1663 1.0000
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(5/1/00 - 6/30/00) 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 Pioneer Science &
Technology VCT Portfolio at net asset value, compared to the growth of the
Nasdaq Composite Index.
[START LINE CHART]
<TABLE>
<CAPTION>
Pioneer Science & Nasdaq Composite
Technology VCT Portfolio* Index
<S> <C> <C>
5/31/00 10000 10000
6/30/00 12318 11662
</TABLE>
[END LINE CHART]
The NASDAQ Composite Index is a capitalization-weighted index based on the total
market value of all the issues that compose it. It reflects the performance of
more than 5,500 companies. 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.
Cumulative
Total Returns
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 16.90%
(5/1/00)
</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>
Pioneer Science & Technology VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
[SIDEBAR]
Companies in the rapidly changing field of science and technology often face
special risks. For example, products may not be commercially successful or may
become obsolete quickly.
The Portfolio invests in small- and medium-capitalization stocks, which may be
more volatile and less liquid than large-cap issues. The Portfolio also invests
in international securities, which are subject to special risks including
fluctuations in currency, differing regulatory and accounting standards, and
periods of illiquidity.
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]
In the following discussion Kenneth G. Fuller, Thomas A. Crowley and Robert C.
Junkin, co-managers of Pioneer Science & Technology VCT Portfolio, describe the
factors that drove the Portfolio's strong performance since its inception.
Q: How did the Portfolio perform during this fairly turbulent period for
technology companies?
A: The Portfolio began operations on May 1, 2000, and the timing was
fortuitous. Two months of volatile markets followed, creating opportunities
for the management team to select stocks and deliver favorable results. The
Portfolio had a return of 16.90% for the period, outdistancing its
benchmark, the NASDAQ Composite Index, which fell 13.27%.
Q: What were some of your strategies?
A: From the outset, we have invested in companies chosen for the attractive
potential of their technologies. Strong cash flows into the Portfolio (as
represented by short-term cash equivalents in the pie chart) enabled us to
add to these positions and invest in promising new issues as they became
available. We avoided dot-com companies, a particularly weak area during
the quarter.
Q: Which of your approaches worked, and which didn't?
A: For one thing, we emphasized semiconductor stocks because of continued high
demand for semiconductors and the machinery that makes them. In that
sector, Intel and Micron Technology, two of the world's largest chip
manufacturers, contributed to performance.
With the global buildout of the Internet far from complete and wireless
communications growing rapidly, makers of communication equipment also
performed well. Sycamore Networks and Ciena both focus on optical switching
and network management, while Power-One, a maker of power supplies for the
communications market, was another strong performer.
Results in software were neutral, overall. Citrix Systems fell after
cutting projections for both earnings and revenues, and Harmonic suffered
acquisition-related problems. But the software products of Ariba and
E.Piphany benefited from growth in the Internet's infrastructure.
Q: The biotech industry has changed over the years. How are you approaching it
today?
A: Biotechnology, perhaps the most dynamic sector of the trillion-dollar
healthcare industry, has matured considerably since the late 1980's and
early 1990's, when promised breakthroughs failed to materialize and stocks
crumbled. Today, many companies are delivering real earnings from products
developed through solid science. Millennium Pharmaceuticals, a genomics
driven healthcare company, and QLT Phototherapeutics, a leader in
developing light-activated treatments for ocular disease, are examples.
Q: Why has the Portfolio tilted more toward technology than to healthcare?
A: We have no preconceived ideas on how much to allocate to each sector. Our
approach is more bottom-up -- we visit companies and talk to engineers,
scientists and physicians. From these conversations we hope to determine
what technology transitions are likely over the next 12-18 months, which
companies can benefit and which might be harmed. But we start by looking
for the most promising technologies across the worlds of technology and
science.
Our current allocation is the result of finding better company fundamentals
and more attractive valuations in technology than in healthcare, at least
for now. This Portfolio is very flexible, however, and if the technology
picture changes we can shift emphasis to healthcare.
Q: What is your outlook for these two areas of the economy?
A: There are trends in place that we believe will drive growth in technology
for the foreseeable future. For most corporations, investing in technology
is no longer discretionary. Companies must exploit the Internet to stay in
touch with customers and suppliers, to remain competitive and to lower
their costs. Other trends that technology serves -- broadband, wireless
communications, increasing explosive worldwide need for Internet access and
infrastructure -- should fuel demand for several years.
Meanwhile, our aging population means that millions of Americans will
require more medicines and other therapies; this demographic trend is
inexorable and should continue for 10 or 15 years. And the human genome
project implies the discovery and development of important new drugs and
treatment of diseases that are not feasible today.
The objective of this Portfolio is to make capital grow. Toward that end,
we will continue to purchase the most attractive stocks we can find in an
effort to capitalize on these important trends.
9
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
[START PIE CHART]
Portfolio Diversification
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Common Stocks 92.5%
International Common Stocks 3.7%
Short-Term Cash Equivalents 3.3%
Depositary Receipts for International Stocks 0.5%
</TABLE>
[END PIE CHART]
[START PIE CHART]
Sector Distribution
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Technology 20%
Financial 15%
Consumer Cyclicals 12%
Utilities 10%
Energy 10%
Consumer Staples 9%
Healthcare 9%
Capital Goods 8%
Basic Materials 5%
Communication Services 2%
</TABLE>
[END PIE CHART]
--------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. NCR Corp. 4.87%
2. Imation Corp. 3.73
3. Columbia/HCA Healthcare Corp. 3.53
4. Financial Security Assurance Holdings, Ltd. 2.78
5. Viacom, Inc. (Class B) (Non-voting) 2.53
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $15.38 $16.26
Accumulated Unit Value 1.7277 1.7054
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.125 $ - $1.089
</TABLE>
--------------------------------------------------------------------------------
Performance of a $10,000 Investment
The following chart shows the value of an investment made in Pioneer Mid-Cap
Value VCT Portfolio at net asset value, compared to the growth of Standard &
Poor's (S&P) 500 Index.
[START LINE CHART]
<TABLE>
<CAPTION>
Pioneer Mid-Cap Value S&P 500
VCT Portfolio* Index
<S> <C> <C>
3/95 10000 10000
6/95 10650 11315
11713 12943
6/96 13527 14247
13473 15906
6/97 15541 19182
16800 21208
6/98 18228 24956
16125 27256
6/99 18814 30620
18241 32978
6/00 18609 32831
</TABLE>
[END LINE CHART]
The S&P 500 Index is an unmanaged measure of 500 widely held common stocks
listed on the New York Stock Exchange, American Stock Exchange and
over-the-counter markets. Index returns 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
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 12.33%
(3/1/95)
5 Years 11.81%
1 Year -1.09%
</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>
Pioneer Mid-Cap Value VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
[SIDEBAR]
On May 1, 2000, the name of Capital Growth Portfolio changed to Pioneer Mid-Cap
Value VCT Portfolio.
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]
In the following interview Rod Wright, the portfolio manager of Pioneer Mid-Cap
Value VCT Portfolio, discusses the market environment and the Portfolio's
performance for the six-month period ended June 30, 2000.
Q: How did the Portfolio perform?
A: For the six-month period ended June 30, 2000, the Portfolio returned 2.02%,
at net asset value. The Portfolio's return surpassed the -0.45% return of
the Standard & Poor's 500 Index and was slightly behind the 3.29% average
return for annuity portfolios in the Lipper growth category. (Lipper is an
independent firm that tracks annuity portfolio performance.) The Portfolio
performed particularly well in the latter part of the period, as investors
turned away from high-valuation technology stocks and began focusing on
stocks of companies with reasonable valuations and strong fundamentals.
Q: What factors influenced the Portfolio's performance?
A: The biggest factors that helped the performance were a healthy weighting in
energy companies and a relative underweighting in technology stocks. In
energy, Portfolio investments in oil, gas and service companies performed
well, while the technology sector in general fell into a sharp correction
starting in mid-March.
Mergers and acquisition activity benefited the Portfolio when larger
companies acquired five portfolio holdings: ETEC Systems; Financial
Security Assurance Holdings; ReliaStar Financial; Young & Rubicam; and
Sterling Commerce. In addition, restructurings at two other holdings,
Borders Group and DPL, supported performance.
Q: While the Portfolio deemphasized technology, tech companies still
represented the largest industry weighting. In what types of technology
companies did you invest?
A: At a time when most industry benchmarks had technology weightings of more
than 30%, the Portfolio ended the fiscal period with about 20% invested in
the industry. Not only was the Portfolio significantly underweighted in
technology, but about half the technology holdings were, what we call,
"value" technology companies. These are companies whose stock performance
is more dependent on company fundamentals than on the direction of the
NASDAQ Composite Index. A good example is Imation, one of the Portfolio's
largest holdings. Imation is debt-free, with strong cash flow, growing
earnings and very reasonably priced stock. The company is involved in the
manufacture and distribution of media storage devices, including tapes for
large technology companies and CDs for computers. The company's strong
fundamentals and low stock price were very attractive.
Q: Outside of technology, what were some of your other industry themes?
A: On June 30, the Portfolio had about 9% of net assets in energy stocks, and
these investments definitely helped. Among the holdings were R & B Falcon
and Transocean Sedco Forex, two offshore drilling companies. Performance
was boosted by holdings in several domestic exploration and production
companies, including Apache, Ocean Energy and Burlington Resources.
Beyond energy, the emphasis on healthcare stocks and deemphasis of
financial services stocks worked well. The consumer cyclicals and consumer
staples sectors were well represented in the Portfolio, at 12% and 9% of
net assets, respectively.
Q: The Portfolio's name changed in May from Capital Growth Portfolio to
Pioneer Mid-Cap Value VCT Portfolio. Why was the name changed?
A: We believed the new name better describes our investment approach. Our
focus is on mid-cap companies, and our approach is value-oriented:
investing in what we believe are reasonably priced companies. We attempt to
buy solid companies with strong fundamentals, but we also pay attention to
valuation to ensure we pay appropriate prices.
Q: What is your outlook for mid-cap value stocks?
A: We are optimistic about the mid-cap value sector and think it has the
potential to be one of the better performing sectors. This is an area that
has underperformed for a number of years and has been very much overlooked.
And yet, if the economy slows down, we think investors will be served well
investing in companies with the types of resources, histories, market
positions, experienced managements, credit lines and established
distribution networks that many mid-cap companies possess. We believe the
recent good performance of mid-cap value stocks is not a short-term
phenomenon.
11
<PAGE>
Pioneer Growth Shares VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
[START PIE CHART]
Portfolio Diversification
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Common Stocks 96%
Depositary Receipts for International Stocks 3%
Short-Term Cash Equivalents 1%
</TABLE>
[END PIE CHART]
[START PIE CHART]
Sector Distribution
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Consumer Staples 31%
Technology 17%
Consumer Cyclicals 13%
Financial 13%
Capital Goods 11%
Healthcare 10%
Basic Materials 3%
Communication Services 2%
</TABLE>
[END PIE CHART]
--------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Sealed Air Corp. 6.75%
2. Infinity Broadcasting Corp. 6.43
3. Dollar General Corp. 6.42
4. Walgreen Co. 5.54
5. Progressive Corp. 4.88
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $19.88 $21.92
Accumulated Unit Value 1.4042 1.4199
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$ - $ - $1.917
</TABLE>
--------------------------------------------------------------------------------
Performance of a $10,000 Investment
The following chart shows the value of an investment made in Pioneer Growth
Shares VCT Portfolio at net asset value, compared to the growth of Standard &
Poor's (S&P) 500 Index.
[START LINE CHART]
<TABLE>
<CAPTION>
Pioneer Growth Shares S&P 500
VCT 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
15010 16944
6/00 14576 16493
</TABLE>
[END LINE CHART]
The S&P 500 Index is an unmanaged measure of 500 widely held common stocks
listed on the New York Stock Exchange, American Stock Exchange and
over-the-counter markets. Index returns 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
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 15.16%
(10/31/97)
1 Year -2.63%
</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>
Pioneer Growth Shares VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
[SIDEBAR]
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]
Equity markets exhibited great volatility during the first six months of 2000,
with technology stocks leading a rally during the first quarter, only to fall
sharply during the second three-month period. The following is an interview with
Jeffrey B. Poppenhagen, the portfolio manager of Pioneer Growth Shares VCT
Portfolio.
Q: How would you characterize the Portfolio's performance during the six-
month period?
A: The Portfolio's defensive positioning helped it avoid the worst of the
technology sell-off during the second quarter. However, our deemphasis of
financial services company stocks, particularly banks and securities firms,
was the primary factor in our underperformance versus our peers. For the
six-month period, the Portfolio returned -0.41% at net asset value; in
comparison, the average return of the 224 variable annuity growth
portfolios tracked by Lipper, Inc. was 3.29%. (Lipper is an independent
firm that tracks annuity portfolio performance.)
Q: Despite making modest additions to your technology investments, you have
continued to place the greatest emphasis on stocks that seem to entail less
risk. Please comment.
A: We believe the stock market has been driven by excessive speculation,
primarily in technology stocks but also in leveraged financial services
stocks such as the banks and securities firms. We are not sure when it will
happen, but we are confident that this excessive speculation will cease and
aggressive investments in technology and financial services will suffer. We
may even have seen the start of this process during the second quarter of
2000, although it is possible the speculation may continue for a number of
months.
We continue to overweight defensive industries that we think can hold up
well -- such as convenience stores and pharmacies, consumer staples and
property-and-casualty insurance companies -- in an effort to shield the
Portfolio against extreme market volatility. Companies in these industries
are more likely to meet the standards of our long-term investment
discipline. We like to invest in companies that are well positioned to take
advantage of market trends, have competitive advantages that they can
defend and have demonstrated an ability to generate superior returns on
invested capital. Currently, we are not finding many companies in the
technology or financial services sector that meet our investment criteria.
Q: What are some of the companies that do meet your criteria?
A: We have been extremely bullish on Berkshire Hathaway. While most people
think of Berkshire Hathaway as an investment company, it remains largely an
insurance company that is extremely well capitalized. It has avoided much
of the temptation that has lured many property-and-casualty insurers into
underwriting business at unprofitable levels. As other
property-and-casualty insurers run into trouble because of their past
underwriting, Berkshire Hathaway will look very attractive to companies
buying insurance. At the same time, the company has about $30 billion in
fixed income securities that it can easily redeploy into stocks when equity
prices become more attractive.
We also like convenience stores such as Walgreen and Dollar General. The
public is time constrained and often looks for convenient outlets to buy
basic products. These chains have generated extraordinary returns on
invested capital, yet each has established a niche that makes it extremely
difficult for new competition. We also are very bullish on Sealed Air, a
leader in the packaging industry, even though it has experienced some
short-term problems.
Q: What is your outlook for the future?
A: We think the investment environment will change. While, historically, we
have been bullish about the potential of technology stocks, we believe
their prices have been driven to excessively high valuations. We will
continue to follow what we believe are the basic principles of investing.
To that end, we avoid market timing and select only those stocks whose
prices reflect the worth of the business. That's why we concentrate the
Portfolio in solid companies that we think have strong growth potential
over the long-term. We believe this investment discipline should bode well
for investors.
13
<PAGE>
Pioneer Real Estate Growth VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
[START PIE CHART]
Portfolio Diversification
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Common Stocks 96%
International Common Stocks 4%
</TABLE>
[END PIE CHART]
[START PIE CHART]
Sector Distribution
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Real Estate Investment Trusts 96%
Real Estate Services 4%
</TABLE>
[END PIE CHART]
--------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Equity Office Properties Trust 6.54%
2. Reckson Associates Realty Corp. 4.45
3. Starwood Hotels & Resorts Trust 4.42
4. AvalonBay Communities, Inc. 4.23
5. Duke-Weeks Realty Corp. 4.13
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $13.11 $11.73
Accumulated Unit Value 1.5946 1.4002
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.340 $ - $ -
</TABLE>
--------------------------------------------------------------------------------
Performance of a $10,000 Investment
The following chart shows the value of an investment made in Pioneer Real Estate
Growth VCT Portfolio at net asset value, compared to the growth of Standard &
Poor's (S&P) 500 Index and Wilshire Real Estate Securities Index.
[START LINE CHART]
<TABLE>
<CAPTION>
Pioneer S&P 500 Wilshire
Real Estate Growth Index Real Estate Securities
VCT Portfolio* Index
<S> <C> <C> <C>
3/95 10000 10000 10000
6/95 10721 10951 10435
11696 12528 11322
6/96 12316 13790 12360
15875 15396 15497
6/97 16875 18566 16507
19235 20527 18565
6/98 18090 24155 17579
15629 26381 15330
6/99 16414 29637 16369
14977 31920 14841
6/00 17203 31777 17099
</TABLE>
[END LINE CHART]
The S&P 500 Index is an unmanaged measure of 500 widely held common stocks
listed on the New York Stock Exchange, American Stock Exchange and the
over-the-counter markets. The Wilshire Real Estate Securities Index is a
market-capitalization weighted measure of the performance of 113 real estate
securities. The Index is 93% REITs (real estate investment trusts) (equity and
hybrid) and 7% 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
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 10.69%
(3/31/95)
5 Years 9.92%
1 Year 4.80%
</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>
Pioneer Real Estate Growth VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
[SIDEBAR]
Effective July 17, 2000 Jeff Caira assumed responsibility for day-to-day
management of the Portfolio.
Real-estate related investments involve specific risks, including those related
to general and local economic conditions and individual properties.
[END SIDEBAR]
As the euphoria over technology and telecommunications stocks waned this spring,
a tangible shift in investor psychology took place. The stock market's steep
retreat and increased volatility humbled performance expectations which, in
turn, renewed an appreciation for the basic principles of investing. Amidst the
correction, many investors sought shelter in bricks and mortar. Undervalued for
some time, real estate investment trusts (REITs) rallied dramatically during the
first half of 2000. In the following interview, Portfolio manager Jeff Caira
discusses the sector's rebound and prospects going forward.
Q: What sparked the rebound in real estate investments?
A: Investors have shifted into a decidedly more value-conscious and
risk-averse mood in recent months. Recognizing that real estate offers an
effective way to diversify away from the stock market, investors moved
assets into undervalued REITs -- pushing prices higher. Positive trends,
including low vacancy rates, rising rents and higher property prices, as
well as the real estate sector's tendency to move independently of other
asset classes, are enhancing its appeal.
For the six months ended June 30, 2000, Pioneer Real Estate Growth VCT
Portfolio climbed 14.86% at net asset value -- surpassing the average
return of 13.79% for the 26 variable annuity real estate portfolios tracked
by Lipper, Inc. (Lipper is an independent firm that tracks annuity
portfolio performance.) The NAREIT Equity REIT Index and the Wilshire Real
Estate Securities Index rose 12.66% and 15.21%, respectively.
Q: How important is geography in your evaluation process?
A: We favor real estate companies with smart managements and strong growth
prospects, but knowing whether a REIT is a timely opportunity often depends
on geography. For instance, REIT holdings in the Portfolio with properties
located in the Northeastern United States, Manhattan or on the West Coast
were big winners, where barriers to new supply are great. Strong demand and
limited supply are contributing to an imbalance, which provides a natural
price support for rents. Portfolio holdings Essex Property Trust and Boston
Properties exemplify this strategy.
Q: Did the Fund's sector emphasis on office/industrial and apartments prove
rewarding?
A: Yes. Office/industrial REITs enjoyed strong growth, particularly in large
metropolitan areas, and this performance is setting a positive tone for the
real estate sector in general. Mission West Properties and Spieker
Properties, the Portfolio's second and third best performers for the
six-month period, have a solid presence in Silicon Valley. As current
leases expire, these REITs are negotiating new contracts for a variety of
properties, many of which are rented by dot-com companies. The rollover of
below-market leases at today's considerably higher market rates is locking
in attractive rents for years to come.
The Portfolio's investments in apartments also proved beneficial. REITs can
quickly pass on inflationary pressure to renters, since they typically
lease by the year. We changed the Portfolio's geographic focus in
apartments a bit to favor the southwest and southeast.
Q: Is the strong economy benefiting hotel REITs?
A: Absolutely. After months of underperformance, hotels delivered strong
results. Starwood Hotels & Resorts was the Portfolio's top performer. First
and second quarter increases in revenue per room, a common measure of hotel
profitability, exceeded Wall Street expectations. Shopping center REITs,
another beneficiary of the strong economy, posted double-digit returns for
the six months. We'll be watching this sector closely, as prospects for
retail REITs depend on the credit quality of the tenants and consumers'
willingness to spend.
Q: What is your outlook?
A: REITs made great strides in recent months, as investors recognized the
industry's fundamental growth possibilities, steady income potential and
diversification advantages. We're heartened by the rally in REITs and
believe they have the potential to perform well in the future. We feel that
the income potential as well as the longer-term growth potential of REITs
provides a solid investment foundation for investors.
15
<PAGE>
Pioneer Fund VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
[START PIE CHART]
Portfolio Diversification
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Common Stocks 94.0%
Depositary Receipts for International Stocks 4.1%
International Common Stocks 1.6%
Short-Term Cash Equivalents 0.3%
</TABLE>
[END PIE CHART]
[START PIE CHART]
Sector Distribution
(As a percentage of total equity holdings)
<TABLE>
<S> <C>
Technology 23%
Financial 15%
Consumer Cyclicals 12%
Consumer Staples 12%
Communication Services 12%
Healthcare 12%
Energy 6%
Capital Goods 3%
Basic Materials 2%
Other 3%
</TABLE>
[END PIE CHART]
--------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. Schering-Plough Corp. 3.33%
2. SBC Communications, Inc. 2.55
3. Intel Corp. 2.48
4. Texas Instruments, Inc. 2.44
5. IBM Corp. 2.37
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $23.38 $22.70
Accumulated Unit Value 1.5431 1.4951
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.080 $0.134 $ -
</TABLE>
--------------------------------------------------------------------------------
Performance of a $10,000 Investment
The following chart shows the value of an investment made in Pioneer Fund VCT
Portfolio at net asset value, compared to the growth of Standard & Poor's (S&P)
500 Index.
[START LINE CHART]
<TABLE>
<CAPTION>
Pioneer Fund VCT 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
15785 16944
6/00 16018 16493
</TABLE>
[END LINE CHART]
The S&P 500 Index is an unmanaged measure of 500 widely held common stocks
listed on the New York Stock Exchange, American Stock Exchange and the
over-the-counter markets. 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
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 19.30%
(10/31/97)
1 Year 8.76%
</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>
Pioneer Fund VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
[SIDEBAR]
On May 1, 2000, the name of Growth and Income Portfolio changed to Pioneer Fund
VCT Portfolio.
[END SIDEBAR]
In the following discussion John Carey, the portfolio manager for Pioneer Fund
VCT Portfolio, discusses the events and factors that influenced the Portfolio's
performance over the last six months.
Q: How would you characterize the market environment over the last six months?
A: The stock market has been extremely volatile. From the beginning of the
year through the end of the first week of March, it seemed investors were
only interested in technology; but the tables turned, and a deep correction
in that sector ensued. In the last week of May, the tables turned yet
again, and technology began to recover; this recovery continued through the
end of the six-month period.
In the meantime, the rest of the market varied greatly. Several sectors
that had lagged during most of 1999 performed relatively well, such as
pharmaceuticals, electric utilities, and some of the financial and food
stocks. Other stocks that should have done better in a period of higher
inflation, such as the basic materials and the large oil stocks, performed
poorly. On the whole, a diversified approach to the market, with an
emphasis on more conservatively valued names, proved a worthwhile strategy.
Q: How did the Portfolio perform during the period?
A: The Portfolio managed to hold its own in a quite difficult period. We
stayed essentially fully invested and maintained a diversified portfolio
that included many stocks that did fairly well. As a result, the
Portfolio's return, 3.94% (at net asset value), outperformed the average
return of the 215 variable annuity growth and income portfolios tracked by
Lipper Inc., -1.13%. (Lipper is an independent firm that monitors annuity
portfolio performance.)
Q: How do you determine if a stock is appropriate for the Portfolio?
A: There are three steps. First, we establish the general suitability of a
company for the Portfolio; we look for financial strength, prominent
industry position, a dynamic of sales and earnings growth and a skilled
management committed to shareholder value. Second, within that universe of
suitable stocks we focus our research on identifying investment
opportunities: companies with the potential to earn more money over the
next three to five years than the stock market is anticipating. We
especially look for companies that can enhance earnings by turning around a
troubled division, successfully executing a change in strategy, introducing
new products, entering new markets or improving productivity through better
management or new technology. Third, we apportion new investments among
different industries and sectors to keep the Portfolio diversified and to
moderate the risk of exposures to the various economic and business cycles.
Here are four examples of companies we have recently found attractive, and
why. Motorola is a leader in three areas: cellular phones,
telecommunications equipment and semiconductors. During the correction in
the technology sector, the share price fell by more than half. We thought
that Wall Street analysts were too closely focused on short-term
"disappointments" instead of the long-term strengths of the company in some
very rapidly expanding industries, so we added to our position. Likewise,
we have maintained our positions in such companies as BellSouth,
Colgate-Palmolive and Bristol-Myers Squibb, despite their rather cool
reception by the stock market so far this year. In each case we can see
"value" in the stock beyond what the market perceives because we are
taking, we think, a more long-term perspective.
Q: Why is patience so important when managing Pioneer Fund VCT Portfolio?
A: We think that everyone will be familiar with the fable of the hare and the
tortoise. It was our founder, Philip L. Carret, who set us on "the tortoise
road to wealth", still the route we ply. "Slow and steady" may win the
race, but along the way one does sometimes wish that the scenery would
change just a bit more quickly. That is where patience -- discipline and an
outlook and interest in the "subtle" changes in detail formed by many
decades of investment experience -- comes in.
Q: What is your outlook for stocks whose underlying values are, in your
opinion, being underestimated by the market?
A: The most striking thing about the stock market over the last few years has
been its infatuation with technology, and not just the Internet but also
everything having to do with computers, telecommunications equipment,
software and semiconductors. At a certain point it seems to us that prices
are no longer being driven by the "fundamentals" of sales, earnings and
shareholder equity but by frenzied demand. Pioneer Fund VCT Portfolio has
benefited from the strength of the technology sector, as we have owned a
number of the popular names that we purchased when they were out of favor.
But every trend in the market reaches a limit. Eventually prices, earnings,
book value and dividends do matter. We think that the rockiness of the
market over the past few months should indicate that we are in a time of
change. Going forward, it is our opinion that the path to success in this
period of transition will be to continue our diversified and value-oriented
approach to investing.
17
<PAGE>
Pioneer Equity-Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
[START PIE CHART]
Portfolio Diversification
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Common Stocks 98%
U.S. Convertible Securities 2%
</TABLE>
[END PIE CHART]
[START PIE CHART]
Sector Distribution
(As a percentage of equity holdings)
<TABLE>
<S> <C>
Financial 18%
Communication Services 16%
Utilities 16%
Consumer Staples 12%
Healthcare 12%
Energy 7%
Technology 6%
Consumer Cyclicals 6%
Capital Goods 3%
Other 4%
</TABLE>
[END PIE CHART]
--------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. SBC Communications, Inc. 5.27%
2. Schering-Plough Corp. 4.81
3. U.S. West Communications Group, Inc. 4.06
4. BestFoods 3.72
5. Exxon Mobil 3.42
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $18.71 $20.72
Accumulated Unit Value 2.1980 2.2192
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.240 $ - $1.741
</TABLE>
--------------------------------------------------------------------------------
Performance of a $10,000 Investment
The following chart shows the value of an investment made in Pioneer
Equity-Income VCT Portfolio at net asset value, compared to the growth of
Standard & Poor's (S&P) 500 Index.
[START LINE CHART]
<TABLE>
<CAPTION>
Pioneer Equity-Income S&P 500
VCT Portfolio* Index
<S> <C> <C>
3/95 10000 10000
6/95 10990 11315
12362 12943
6/96 12881 14247
14240 15906
6/97 16867 19182
19257 21208
6/98 21635 24956
23455 27256
6/99 25207 30620
23739 32978
6/00 23677 32831
</TABLE>
[END LINE CHART]
The S&P 500 Index is an unmanaged measure of 500 widely held common stocks
listed on the New York Stock Exchange, American Stock Exchange and the
over-the-counter markets. 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
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 17.52%
(3/1/95)
5 Years 16.59%
1 Year -6.07%
</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>
Pioneer Equity-Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
In the following discussion John Carey, the portfolio manager of Pioneer
Equity-Income VCT Portfolio, reviews the market environment and the Portfolio's
performance for the 6-month period ended June 30, 2000.
Q: Why have the last six months been rough for investors in dividend-paying
stocks? How did Pioneer Equity-Income VCT Portfolio perform in this
environment?
A: The focus of the stock market on high-growth, technology stocks reached a
fever pitch in the first couple months of 2000. Naturally this was a
difficult period for a distinctly "old economy" investment vehicle like
that of Pioneer Equity-Income VCT Portfolio. However, after the first week
of March, investors grew skittish over the sky-high price-to-earnings
multiples on leading technology stocks -- especially in view of rising
interest rates and somewhat lower earnings expectations -- and a sharp
correction in that sector ensued.
The investment results for the six months ended June 30, 2000 still reflect
the different performances during most of that period between the higher
dividend-paying stocks in the Portfolio and the leading growth stocks that
drive the Standard & Poor's 500 Index. The Portfolio returned -0.26% at net
asset value for the period. The Portfolio's return surpassed the -1.65%
average return for the 44 annuity portfolios in the Lipper, Inc. equity
income universe. (Lipper is an independent firm that tracks annuity
portfolio performance.)
Q: Is it difficult to maintain a consistent approach in today's market?
A: While we are troubled by near-term underperformance, we believe that the
longer-term record of the Portfolio justifies our confidence in the
conservative strategy we have pursued. Of course it is tempting to chase
fads and bend with every beguiling wind that blows through the stock
market. But we do not think that frequently changing course would be
prudent.
Q: What changes did you make in the Portfolio during the period?
A: The six-month period ended June 30 was an active one for the Portfolio. We
took advantage of market volatility to consolidate the Portfolio into a
shorter list of securities. We realized gains in some cases, for instance
in our liquidations of Sprint, The Bank of New York and Minnesota Mining &
Manufacturing. In other cases we took losses, for example in our disposals
of Goodyear Tire & Rubber, Lockheed Martin and Harris. Our Indiana Energy
became Vectren, and we received shares of BP Amoco, which we subsequently
sold, in exchange for our shares of Atlantic Richfield in yet another
corporate merger. Reflecting our aim to focus the Portfolio, we did not add
any positions during the period.
Q: What is your view of the current stock market environment?
A: We are a bit relieved that the "spell" of high tech has been broken and
that investor interest appears to have broadened to include stocks in other
sectors. Risks remain, however -- as they always do. The main concern for
us is the rising level of interest rates and the possibility that rates
will go up more than the stock market has "factored in." Overall, higher
rates can have a dampening effect on economic growth and stock-market
performance.
It is at times like this when experience is a friend. We take comfort from
our 72 years of experience at Pioneer in managing through all kinds of
different markets. We would counsel patience, and remind you to focus on
the long-term investment goals that led to your initial interest in the
Portfolio. We are much appreciative for your support.
19
<PAGE>
Pioneer Balanced VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
[START PIE CHART]
Portfolio Diversification
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Common Stocks 57%
Corporate Bonds 20%
U.S. Government Agency Obligations 14%
U.S. Treasury Obligations 6%
International Stocks 2%
Depositary Receipts for International Stocks 1%
</TABLE>
[END PIE CHART]
[START PIE CHART]
Sector Distribution
(As a percentage of long-term holdings)
<TABLE>
<S> <C>
U.S. Government Securities 20%
Technology 19%
Financial 14%
Consumer Staples 8%
Healthcare 8%
Energy 8%
Consumer Cyclicals 7%
Communication Services 6%
Capital Goods 5%
Utilities 3%
Other 2%
</TABLE>
[END PIE CHART]
--------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of long-term holdings)
<TABLE>
<S> <C>
1. Intel Corp. 3.77%
2. U.S. Treasury Bonds, 8.125%, 8/15/19 3.08
3. Texas Instruments, Inc. 2.94
4. EMC Corp. 2.92
5. Ford Motor Co. 2.80
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $14.45 $14.31
Accumulated Unit Value 1.5878 1.5576
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.240 $ - $ -
</TABLE>
--------------------------------------------------------------------------------
Performance of a $10,000 Investment
The following chart shows the value of an investment made in Pioneer Balanced
VCT Portfolio at net asset value, compared to the growth of Standard & Poor's
(S&P) 500 Index and Lehman Brothers Government/Corporate Bond Index.
[START LINE CHART]
<TABLE>
<CAPTION>
Pioneer Lehman Brothers Government/ S&P 500
Balanced VCT Portfolio* Corporate Bond Index Index
<S> <C> <C> <C>
3/95 10000 10000 10000
6/95 10810 10499 11315
12084 11048 12943
6/96 12686 11025 14247
13806 11495 15906
6/97 15180 11820 19182
16239 12400 21208
6/98 17259 12830 24956
16667 13446 27256
6/99 17136 13367 30620
17089 13498 32978
6/00 17543 13933 32831
</TABLE>
[END LINE CHART]
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 markets. 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
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 11.10%
(3/1/95)
5 Years 10.17%
1 Year 2.37%
</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>
Pioneer Balanced VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
Early in the year, the market was driven primarily by soaring technology stocks.
Most of the gains achieved by these stocks were wiped out in March and April
when the market corrected. At this time, investors turned to value-oriented
stocks. However, in June, growth stocks were back in favor. In the following
discussion, Theresa Hamacher, who supervises the team of portfolio managers and
analysts responsible for the day-to-day management of Pioneer Balanced VCT
Portfolio, and Tin Chan, who focuses on the Portfolio's equity component, review
the factors that affected performance over the past six months.
Q: How did Pioneer Balanced VCT Portfolio perform for the six months ended
June 30, 2000?
A: The Portfolio performed well, returning 2.66% at net asset value for the
six months and outperforming its average Lipper peer. The average return of
the 68 variable annuity balanced underlying funds tracked by Lipper for the
six months ended June 30 was 1.26%. (Lipper is an independent firm that
tracks annuity portfolio performance.)
Q: What equity holdings helped performance?
A: Although the Portfolio is tilted toward value, it did own some familiar,
well-established technology stocks over the period. Over the past six
months, the stock of the Portfolio's largest holding, Intel, rose 62%.
Texas Instruments, a leading provider of semiconductor products, was up
42%. Pharmaceutical holdings were also strong. Allergan, an eye care
product provider, helped performance. The stock was up 50% over the six
months. Global developer and manufacturer of medicines for humans and
animals, Pfizer, saw its stock price increase by 48%.
Q: What holdings hurt the Portfolio?
A: Although value stocks did witness sparks of interest over the period,
growth stocks forged to the head of the pack. Overall, stocks that are
considered traditional value stocks were a drag on Portfolio performance.
The Portfolio's focus on dividend paying stocks also worked against it
because stocks that pay dividends typically fall into the value category.
Equipment and components manufacturer Ingersoll-Rand saw a decline of over
26% over the period. Honeywell International, a producer of automation and
control systems, preannounced lower than estimated earnings and its stock
price fell.
Q: The Portfolio's bond holdings outperformed its equity holdings. Why?
A: The Portfolio benefited from its exposure to Treasury holdings, an asset
class that performed very well over the period. In recent months, the
strong economy led to a substantial budget surplus for the government. The
government used this money to reduce its debt by buying back some of its
long-term Treasuries. In response, the price of these instruments rose and
rates dropped.
Lower quality corporate securities did not fare as well as Treasuries for
most of the six months. The trend over recent months was the lower the
credit quality, the less well a security performed. Many investors were
unwilling to hold higher yielding, lower quality corporate bonds, fearing
that companies would default. However, as the period progressed, and in
view of the continued strength of the U.S. economy, we increased our
corporate bond exposure in order to take advantage of the attractive yields
that they were offering.
Q: What is your outlook for the remainder of the year?
A: Pioneer Balanced VCT Portfolio has the potential to offer investors access
to the best of both worlds by allowing exposure to the benefits of both
stocks and bonds. Although stocks have been favored over bonds by investors
for quite some time, the disparities in the returns between the equity
market and the bond market have narrowed, increasing the attractiveness of
bonds. Going forward, the Portfolio will continue to strive to provide
investors with an attractive level of capital growth and a steady stream of
income.
21
<PAGE>
Pioneer High Yield VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
[START PIE CHART]
Portfolio Diversification
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
Convertible Corporate Bonds 59%
Corporate Bonds 38%
Convertible Preferred Stocks 3%
</TABLE>
[END PIE CHART]
[START PIE CHART]
Maturity Distribution
(Effective life as a percentage of
total investment portfolio)
<TABLE>
<S> <C>
1-3 years 18%
3-4 years 29%
4-6 years 53%
</TABLE>
[END PIE CHART]
--------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of total investment in securities)
<TABLE>
<S> <C>
1. Quantum Corp., 7.0%, 8/1/04 5.60%
2. Getty Images Inc., 5.0%, 3/15/07 (144A) 5.22
3. Azurix Corp., 10.75%, 2/15/10 (144A) 5.18
4. NCI Building Systems, Inc., 9.25%, 5/1/09 5.07
5. Cirrus Logic Inc., 6.0%, 12/15/03 4.82
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 5/1/00
<S> <C> <C>
Net Asset Value per Share $10.34 $10.00
Accumulated Unit Value 1.0456 1.0000
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(5/1/00 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.136 $ - $ -
</TABLE>
--------------------------------------------------------------------------------
Performance of a $10,000 Investment
The following chart shows the value of an investment made in Pioneer High Yield
VCT Portfolio at net asset value, compared to the growth of Merrill Lynch High
Yield Master II Index and the Merrill Lynch Index of Convertible Bonds
(Speculative Quality).
[START LINE CHART]
<TABLE>
<CAPTION>
Pioneer High Yield ML High Yield ML Index of Converitble Bonds
VCT Portfolio* Master II Index (Speculative Quality)
<S> <C> <C> <C>
5/31/00 10000 10000 10000
6/30/00 10692 10193 10511
</TABLE>
[END LINE CHART]
The Merrill Lynch High Yield Master II Index is a broad-based measure of the
performance of the non-investment grade U.S. domestic bond market. The Merrill
Lynch Index of Convertible Bonds (Speculative Quality) is a
market-capitalization weighted index including mandatory and non-mandatory
domestic corporate convertible securities. Merrill Lynch High Yield Master II
Index returns are calculated monthly, while Merrill Lynch Index of Convertible
Bonds (Speculative Quality) returns are calculated weekly. Index returns assume
reinvestment of dividends and, unlike Portfolio returns do not reflect any fees,
expenses or sales charges. You cannot invest directly in the Indices.
Cumulative
Total Return
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 4.80%
(5/1/00)
</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>
Pioneer High Yield VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
[SIDEBAR]
The Portfolio invests in high yield bonds, which may be subject to greater
principal fluctuation than investment grade bonds.
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]
Pioneer High Yield VCT Portfolio commenced operations on May 1, 2000. In the
following discussion, Margaret Patel, a member of Pioneer's fixed-income team,
discusses why the high yield market struggled, and how she was able to post such
strong numbers for the two months ended June 30, 2000.
Q: In a challenging environment for high yield debt, how did the Portfolio
perform?
A: The two-month total return for the Portfolio was 4.80%, at net asset value.
In comparison, the Merrill Lynch High Yield Master II Index returned 4.28%
for the same period.
Q: Why did the Portfolio perform so well?
A: The Portfolio's success was primarily due to its focus on deeply discounted
convertible, non-investment grade bonds, whose prices increased
substantially as the value of the equity securities into which they are
convertible increased. (Convertible bonds may have price movements which
are more volatile than straight corporate bonds.) High yield issues also
helped performance. In addition, the Portfolio also benefited from industry
and security selection and the fact that none of its holdings went into
default.
Q: Which investments performed particularly well? Were there any
disappointments?
A: Cirrus Logic, a semiconductor firm that manufactures storage chips did
well. SBA Communications, a tower company provided strong performance. Pogo
Producing, Key Energy and Parker Drilling on the energy and energy service
side helped boost Portfolio performance. In real estate and construction,
NCI Building Systems fared well.
On the down side, BF Saul, a real estate investment trust, declined,
reflecting the general trend of lower prices for high yield bonds and the
relative underperformance of the real estate sector. In addition, any
holdings related to the old economy did not share in the same kind of price
appreciation as investments associated with the new economy.
Q: Since this is the first report for Pioneer High Yield VCT Portfolio, what
can you tell us about your investment approach?
A: We emphasize high yield securities, with a focus on achieving a high total
return -- that is, income plus capital appreciation. We use a fundamental
value approach, looking for companies or sectors that are unappreciated and
trading at prices below what we think they're fundamentally worth. We
concentrate on companies that have public equity outstanding, are leaders
in an industry with high barriers to entry, and are critically important to
their customers. We prefer to invest in companies that have positive cash
flows. If they don't, we make sure that they have enough funding to carry
them over until they achieve positive cash flow. We also focus on
industries that are growing faster than the economy, or cyclical industries
and companies on the upswing that offer product differentiation.
Q: What is your outlook?
A: In the coming months we believe the backdrop for the high yield market will
be excellent for several reasons. The economy is strong and it looks as if
the Federal Reserve will complete the latest round of interest rate
increases by late summer. Historically, the high yield market has done very
well in an election year. Finally, with yields on junk bonds so high, the
income they provide should outweigh any further price declines. One concern
is that the Fed might act too aggressively and cause some problems for the
economy. As always, investors should bear in mind that below investment
grade bonds may be more volatile and less liquid than more highly rated
bonds.
23
<PAGE>
Pioneer Strategic Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
[START PIE CHART]
Portfolio Diversification
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
Corporate Bonds 54%
Foreign Government Bonds 15%
U.S. Government Agency Obligations 13%
Convertible Corporate Bonds 8%
U.S. Treasury Obligations 4%
Asset-Backed Securities 4%
Supranational Bonds 2%
</TABLE>
[END PIE CHART]
[START PIE CHART]
Quality Distribution
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
Treasury/Agency 17%
AAA 6%
AA 4%
A 4%
BBB 8%
Below BBB 61%
</TABLE>
[END PIE CHART]
--------------------------------------------------------------------------------
Five Largest Holdings
(As a percentage of debt holdings)
<TABLE>
<S> <C>
1. Government of France, 3.0%, 7/25/09 3.90%
2. Republic of Brazil, 14.5%, 10/15/09 3.16
3. Nykredit, 7.0%, 10/1/32 2.93
4. Republic of Argentina, 9.75%, 9/19/27 2.76
5. United Mexican States, 8.25%, 2/24/09 2.62
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $9.48 $9.75
Accumulated Unit Value 1.0049 1.0011
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.371 $ - $ -
</TABLE>
--------------------------------------------------------------------------------
Performance of a $10,000 Investment
The following chart shows the value of an investment made in Pioneer Strategic
Income VCT Portfolio at net asset value, compared to the growth of the Lehman
Brothers Aggregate Bond Index.
[START LINE CHART]
<TABLE>
<CAPTION>
Pioneer Strategic Lehman Brothers
Income VCT Aggregate Bond
Portfolio* Index
<S> <C> <C>
7/99 10000 10000
8/99 9975 9995
9999 10111
10/99 10002 10148
10026 10147
12/99 10070 10099
9992 10065
2/00 10054 10187
10058 10322
4/00 9983 10292
9922 10286
6/00 10180 10500
</TABLE>
[END LINE CHART]
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 Return
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 1.80%
(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.
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>
Pioneer Strategic Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
[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.
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]
During a period in which lower quality fixed income investments generally
underperformed higher quality securities, Pioneer Strategic Income VCT Portfolio
posted positive returns despite its emphasis on high yielding domestic bonds. In
the following discussion, Kenneth J. Taubes, co-head of Pioneer's fixed income
group who oversees the team responsible for the daily management of the
Portfolio, details the factors that influenced the Portfolio's performance
during the six months ended June 30, 2000.
Q: How did the Portfolio perform during a period of change in the market?
A: The Portfolio's income flow overcame the effects of price losses among
lower quality securities, helping generate positive returns for the
six-month period. Performance improved during the final three months of the
period as the fixed income environment stabilized somewhat and emerging
market bonds recovered. For the six-month period, the Portfolio generated a
return of 1.09% at net asset value. In comparison, the Portfolio's
benchmark, the Lehman Brothers Aggregate Bond Index, returned 3.99%.
Q: What were the major factors affecting performance during the six-month
period?
A: The Portfolio's higher weightings in domestic high yield and emerging
market debt, compared to the benchmarks, were primarily responsible for the
relative underperformance. The Portfolio tended to have low weightings in
U.S. Treasury securities, the best performing sector of the fixed income
market. The strong domestic economy increased tax revenues for the federal
government, which was able to buy back higher-coupon, long-term Treasury
bonds as part of a policy to reduce national debt. This resulted in rising
prices and declining interest rates for both intermediate- and long-term
Treasury obligations. Domestic corporate bonds, in general, fell in price
and their yields rose. The worst relative performance occurred among high
yield, low quality securities.
Q: What were your reasons for emphasizing lower quality bonds?
A: We believe they offer the best opportunity after a period of
underperformance. A key to our long-term investment strategy is the search
for relative value in the market. Our approach is to target attractively
priced bonds that we believe can generate solid income and that also have
the potential to appreciate in price. During the second half of 1999, we
had underweighted high yield issues compared to our peer group. However, as
the six-month period progressed, the differences -- or spreads -- between
the yields of U.S. Treasury obligations and the yields of lower-quality
securities became greater. We believe that the wider spreads -- or higher
yields -- made the lower quality bonds more attractive. We increased our
allocation to them, while modestly reducing allocations to U.S. Treasuries,
mortgage-backed and investment-grade corporate securities.
As of the end of the six-month period, on June 30, 2000, 46.8% of net
assets were invested in domestic high yield securities and another 14.3%
were invested in emerging market high yield securities. Overall, the
Portfolio's average credit quality remained BBB. (Ratings apply to the
creditworthiness of the issuer, not Portfolio shares.)
Q: What is your outlook for fixed income investments?
A: We believe high-yielding bonds have the potential to improve in performance
as evidence grows that the Federal Reserve Board may be successful in
moderating the rate of economic growth without causing a severe disruption
to the economy. While we think the Fed still may raise short-term interest
rates further, most of the rate increases probably already have occurred.
We expect that the rate of economic growth may slow somewhat in the coming
months, providing a better opportunity for eventual declines in interest
rates in late 2000 or early 2001. This would support the performance of
fixed income markets in general, especially those sectors, such as high
yield, that underperformed during the past two years.
25
<PAGE>
Pioneer Swiss Franc Bond VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
[START PIE CHART]
Portfolio Diversification
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
Corporate Bonds 72%
Foreign Government Bonds 28%
</TABLE>
[END PIE CHART]
[START PIE CHART]
Quality Distribution
(As a percentage of debt holdings)
<TABLE>
<S> <C>
AAA 33.7%
AA 40.0%
A 26.3%
</TABLE>
[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 5.33%
2. GMAC Canada Ltd., 3.75%, 1/16/01 5.10
3. Transpower Finance Ltd., 4.25%, 6/10/04 5.09
4. AB Spintab, 3.25%, 1/24/02 5.04
5. Citibank Credit Card Master Trust, 3.5%, 11/25/02 4.17
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $10.96 $11.35
Accumulated Unit Value 0.7129 0.7435
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) 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 Pioneer Swiss Franc
Bond VCT Portfolio at net asset value, compared to the growth of Merrill Lynch
Global Bond Index.
[START LINE CHART]
<TABLE>
<CAPTION>
Pioneer Swiss Franc Merrill Lynch
Bond VCT Portfolio* Global Bond
Index
<S> <C> <C>
11/95 10000 10000
12/95 10013 10110
9807 9944
9244 9991
9416 10246
8931 10515
8399 10205
6/97 8379 10543
8372 10740
8313 10845
8100 10968
8079 11196
8978 11935
12/98 9101 12231
8543 11861
8061 11548
8302 11880
7864 11754
7392 11826
6/00 7593 11883
</TABLE>
[END LINE CHART]
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
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio -5.67%
(11/1/95)
1 Year -5.80%
</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.
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>
Pioneer Swiss Franc Bond VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
[SIDEBAR]
International investing may involve special risks, including differences in
accounting and currency, as well as economic and political instability.
[END SIDEBAR]
The U.S. dollar continued to be very strong, while the Swiss franc and the euro
weakened in comparison. In the following discussion, Sal Pramas, a member of
Pioneer's fixed-income investment team, reviews the past six months and the
factors that affected Pioneer Swiss Franc Bond VCT Portfolio's performance.
Q: How did the Portfolio perform over the year?
A: The Portfolio's performance reflected the decline in the Swiss franc,
finishing the first six months of 2000 with a total return of -3.44%. In
comparison the Portfolio's benchmark index, the Merrill Lynch Global Bond
Index, returned -2.66. The Swiss franc also declined over the six months,
returning -2.39%.
Q: Why track the Swiss franc?
A: Historically, the Swiss franc has offered investors insurance against
global calamity. For example, during the Asian crisis in 1998, the Swiss
franc performed very well. In addition, during periods in the past when the
U.S. dollar was weak, the Swiss franc was strong.
Q: How did interest rates affect the Portfolio?
A: Coupled with the weak Swiss franc, rising interest rates in Switzerland
hindered the Portfolio's performance. As a result of rising interest rates,
corporate bond spreads rose. The Portfolio holds a number of corporate
bonds, therefore, this was one of the factors that contributed to its
decline over the period. However, the fact that Pioneer Swiss Franc Bond
VCT Portfolio invests in securities with maturities of 3-5 years, makes it
less susceptible to the erosion of principal that can be a factor for
longer-term bond investments.
Q: How is the Portfolio structured?
A: As stated, the Portfolio's average maturity is kept relatively short,
ranging between 3-5 years. We focus primarily on high-quality issues that
are attractively valued with respect to both price and yield. On June 30,
the average credit quality of the Portfolio was AA. (Ratings apply to the
creditworthiness of the issuer, not Portfolio shares.)
The Portfolio holdings are well diversified across corporate credits,
supranationals, and sovereign bonds. We strive for low turnover in the
Portfolio, typically holding bonds until they reach maturity, a strategy
that helps investors avoid the high transaction costs associated with
frequent trading.
Q: What factors influenced the Swiss franc over the year?
A: Not much has changed since we last reported six months ago. The U.S. dollar
continued to be an extremely strong currency and remains the Swiss franc's
principal competition. No other currency could compete with the strength of
the U.S. dollar. The Swiss franc was no different than many other
currencies, and its value declined over the six months.
Q: What is your outlook for the Swiss franc and the Portfolio?
A: Over the next several months, we believe the Swiss franc will appreciate
and recover much of its recent losses. We expect growth in Europe to
improve relative to growth in the United States, a factor that likely will
lead to an appreciation in the value of the euro. We are confident that as
the euro strengthens, the Swiss franc will follow suit.
27
<PAGE>
Pioneer America Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
[START PIE CHART]
Portfolio Diversification
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
U.S. Government Agency Obligations 77.8%
U.S. Treasury Obligations 22.2%
</TABLE>
[END PIE CHART]
[START PIE CHART]
Portfolio Quality
(As a percentage of debt holdings)
<TABLE>
<S> <C>
Reserves 0.7%
Treasury/Agency 43.6%
Agency Pass Throughs 55.7%
</TABLE>
[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 9.31%
2. U.S. Treasury Notes, 6.25%, 8/15/23 5.35
3. Government National Mortgage Association, 7.0%, 7/15/29 3.84
4. Government National Mortgage Association II, 7.5%, 8/20/29 3.72
5. Government National Mortgage Association II, 8.0%, 4/20/30 3.55
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $9.57 $9.47
Accumulated Unit Value 1.1807 1.1421
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.283 $ - $ -
</TABLE>
--------------------------------------------------------------------------------
Performance of a $10,000 Investment
The following chart shows the value of an investment made in Pioneer America
Income VCT Portfolio at net asset value, compared to the growth of Lehman
Brothers Government Bond Index.
[START LINE CHART]
<TABLE>
<CAPTION>
Pioneer America Lehman Brothers
Income VCT Government
Portfolio* Bond Index
<S> <C> <C>
3/95 10000 10000
6/95 10109 10620
10574 11302
6/96 10339 11098
10712 11615
6/97 10967 11919
11616 12727
6/98 11991 13261
12563 13981
6/99 12240 13664
12246 13667
6/00 12749 14344
</TABLE>
[END LINE CHART]
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
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 4.64%
(3/1/95)
5 Years 4.75%
1 Year 4.16%
</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.
28
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>
Pioneer America Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
[SIDEBAR]
*Credit quality refers to underlying portfolio securities, not to shares of
Pioneer America Income VCT Portfolio.
[END SIDEBAR]
The climate for fixed income investments strayed far from the norm during the
first six months of 2000, yet offered attractive opportunities for bond
investors. In the following conversation, Richard Schlanger, a member of the
team responsible for the daily management of Pioneer America Income VCT
Portfolio, discusses the factors that contributed to the Portfolio's
performance.
Q: The Federal Reserve Board implemented a series of interest rate hikes
during the period. What was the impact on fixed income investments and the
Portfolio?
A: Despite three consecutive short-term interest rate increases, totaling a
full percentage point, the environment for fixed income investments was
surprisingly favorable. Although the economy continued to grow at a brisk
pace, inflation was kept at bay, thanks to the Fed's restrictive monetary
policy. The fixed income market was also bolstered in the early part of the
period by the U.S. Treasury Department's announcement that it was buying
back long-term debt. This created a huge demand for long-term Treasuries,
driving up prices.
Against this backdrop, Pioneer America Income VCT Portfolio rewarded
shareholders with solid performance. For the six months ended June 30,
2000, the Portfolio generated a total return of 4.11% at net asset value.
In comparison, the average return of the 37 variable annuity general U.S.
government underlying funds for the same period, as tracked by Lipper,
Inc., was 4.28%. (Lipper is an independent firm that tracks annuity
portfolio performance.)
Q: During the period, yields on long-term Treasuries fell, resulting in an
inverted yield curve. What effect did this have on the bond market?
A: Yields on long-term Treasury securities fell during the period, dropping
well below yields being offered by shorter-term issues. The yield on
long-term bonds, as measured by the 30-year U.S. Treasury bond, fell from
6.48% on December 31 to 5.90% on June 30. Yields for two-year Treasury
bonds stood at 6.36% at the end of June.
Demand for long-term Treasuries soared and prices rose while yields
dropped. As a result, 30-year U.S. Treasury bonds outperformed all other
fixed-income investments for the six months ended June 30, 2000. With
long-term Treasuries anticipated to be in short supply, due to projected
budget surpluses, GNMA (Government National Mortgage Association)
securities became the investment of choice for many. GNMAs can be subject
to risks associated with investing in mortgage securities, including
prepayment risks.
Q: How did you position the Portfolio in this environment?
A: We increased our exposure to mortgage-backed securities to take advantage
of the relative value they were offering -- a move that benefited the
Portfolio. We also sold some of our discounted collateral holdings
replacing them with collateral offerings with more current coupons. In
addition, we maintained our exposure to longer-term U.S. Treasury
securities, which benefited from declining rates and rising prices.
In addition, we adjusted the Portfolio's duration, increasing it early in
the year as rates were rising and then pulling back slightly as the yield
curve inverted. Duration is a measure of a bond's price sensitivity to
interest rate changes.
Q: What is your near-term outlook for fixed income investments and the
Portfolio?
A: Although the economy has shown some signs of slowing, the general consensus
is that growth has remained strong enough that the Federal Reserve will
raise interest rates at least once more this year. If this happens, we may
begin to see greater economic slowing later in 2000 -- a positive for the
bond market. In our opinion, the Portfolio is an attractive choice for more
conservative investors looking for solid long-term value and competitive
income from the highest credit quality securities available.
29
<PAGE>
Pioneer Money Market VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
Pioneer Money Market VCT Portfolio continued to provide investors with current
income while maintaining a $1 share price during the six-month period ended June
30, 2000. The Portfolio invests exclusively in high-quality money market
instruments issued by the U.S. government, corporations and banks. All issues in
the Portfolio have the highest ratings from the two leading nationally
recognized securities ratings organizations: A1 by Standard & Poor's and P1 by
Moody's Investors Service. (Ratings apply to underlying securities, not
Portfolio shares.)
In the discussion below, Sherman Russ, co-head of Pioneer's fixed-income team,
reviews the investment environment and strategies that affected performance over
the six months.
Q: How did the Portfolio perform during the six-month period?
A: The seven-day effective yield on June 30, 2000 was 5.63%, compared to 5.12%
six months ago and 4.22% one year ago. For the six-month period, the total
return for the Portfolio was 2.68%, at net asset value. In comparison, the
average return of the 106 funds in the Lipper variable annuity money market
instrument underlying funds category was 2.80%, according to Lipper, Inc.
(Lipper is an independent research firm that tracks annuity portfolio
performance.)
Q: During the six months, the U.S. Federal Reserve raised short-term rates
three times. How did this affect the Portfolio?
A: The Federal Reserve Board's actions provided good opportunities for
investing in short-term securities in general and money market instruments
in particular. Since June 1999, the Fed has raised rates six successive
times, by a total of 1.75%. In this environment of steadily rising
short-term rates, we have tried to extend maturities to lock in the greater
income that was available. By the end of the six-month period, the average
maturity of Portfolio holdings had been extended to about 50 days.
Q: What is your outlook?
A: While we believe the Federal Reserve Board may raise short-term rates
again, we think the Fed is approaching the end of its cycle of raising
rates. We have begun to see some signs that the Fed may be successful in
its policy of tightening the money supply to slow the pace of economic
growth. In this environment, it would be prudent to continue to extend
maturities and lock in the higher rates that are available in the
marketplace. Going forward, this strategy has the potential to provide
higher yields for Portfolio shareowners.
--------------------------------------------------------------------------------
Prices and Distributions
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $1.00 $1.00
Accumulated Unit Value 1.1880 1.1651
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.027 $ - $ -
</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
Pioneer Money Market VCT 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
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio 4.74%
(3/1/95)
5 Years 4.69%
1 Year 5.10%
</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.
30
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>
Pioneer Emerging Markets VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
PREFERRED STOCKS - 6.4%
2,190,000 Banco Itau SA $ 192,467
700,000 Eletropaulo Metropolitana SA* 49,293
5,000 Lukoil Oil Co. (A.D.R.)* 100,244
139 Shinsegae Department Store Co.
(New Shares)* 4,912
13,501 Tele Norte Leste Participacoes SA (A.D.R.) 318,961
825 Telecomunicacoes Brasileras SA (A.D.R.) 80,128
1,600 Telecular Sul Participoes SA (A.D.R.)* 72,400
4,100 Telemig Celular Participacoes SA (A.D.R.)* 293,150
2,920 Telesp Celular Participacoes SA (A.D.R.) 131,035
825 Telesp Participacoes SA (A.D.R.) 15,262
165 Tele Sudeste Celular Participacoes SA
(A.D.R.) 5,033
-----------
TOTAL PREFERRED STOCKS
(Cost $1,072,691) $ 1,262,885
-----------
COMMON STOCKS - 93.1%
Basic Materials - 0.4%
Chemicals - 0.2%
9,799 Daelim Industrial Co. $ 46,665
-----------
Construction (Cement & Aggregates) - 0.1%
3,350 Associated Cement Companies Ltd. $ 8,850
-----------
Paper & Forest Products - 0.1%
3,200 Hansol Paper Co. $ 15,095
-----------
Total Basic Materials $ 70,610
-----------
Capital Goods - 1.4%
Electrical Equipment - 0.5%
22,000 Bharat Heavy Electricals Ltd. $ 65,754
112,000 Nanjing Panda Electronics Co., Ltd.
(Class H)* 40,228
-----------
$ 105,982
-----------
Trucks & Parts - 0.9%
25,775 Escorts Ltd. $ 81,683
14,950 Larsen & Toubro Ltd. 82,602
-----------
$ 164,285
-----------
Total Capital Goods $ 270,267
-----------
Communication Services - 21.2%
Cellular/Wireless Telecommunications - 5.5%
7,352 Grupo Iusacell SA (Series V) (A.D.R.) $ 114,877
6,600 MIH Ltd.* 198,206
2,000 Mobile Telesystems (A.D.R.)* 44,750
2,700 Mobinil Ltd.* 87,869
7,537 SK Telecom Co., Ltd. (A.D.R.) 273,687
5,500 Stet Hellas Telecomm SA (A.D.R.)* 109,313
55,000 Technology Resources Industries Bhd. 58,474
2,000 Tele Norte Celular Participacoes (A.D.R.) 101,500
9,000 Total Access Communication Public
Co., Ltd.* 36,180
71,500 United Communication Industry Public
Co., Ltd.* 61,598
-----------
$ 1,086,454
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Telecommunications (Long-Distance) - 1.6%
559,000 Celular CRT Participacoes SA* $ 244,863
1,100 FirstCom Corp.* 16,569
38,000 Keppel Telecom & Transport Ltd. 49,287
-----------
$ 310,719
-----------
Telephone - 14.1%
144,400 Carso Global Telecom* $ 412,111
5,000 Compania Anonima Nacional Telefonos de
Venezuela (A.D.R.) 135,938
10,800 Embratel Participacoes SA (A.D.R.)* 255,150
1,800 Estonian Telecom Ltd. (G.D.R.) (144A) 36,090
10,601 Hellenic Telecommunication Organization SA 259,744
400 Hellenic Telecommunication Organization SA
(A.D.R.) 4,875
5,800 Korea Telecom Corp. (A.D.R.) 280,575
3,750 Matav (A.D.R.) 129,141
4,900 Philippine Long Distance Telephone Co.
(A.D.R.) 86,975
6,700 PT Indosat Indonesian Satellite Corp.
(A.D.R.) 76,213
13,700 Tele Centro Oeste Celular Participacoes SA
(A.D.R.)* 164,400
8,300 Telefonos de Mexico SA (L Shares) (A.D.R.) 474,138
68,600 Telekom Malaysia Bhd. 236,489
15,940 Telekomunikasi Indonesia (A.D.R.) 110,584
6,700 Videsh Sanchar Nigam Ltd. (G.D.R.) (144A) 105,523
-----------
$ 2,767,946
-----------
Total Communication Services $ 4,165,119
-----------
Consumer Cyclicals - 8.0%
Automobiles - 0.9%
938,000 Koc Holdings AS $ 66,520
21,600 Mahindra & Mahindra Ltd. (G.D.R.) 99,900
-----------
$ 166,420
-----------
Auto Parts & Equipment - 0.3%
1,600 Halla Climate Control Co.* $ 53,021
-----------
Household Furnishings & Appliances - 0.2%
153,000 Vestel Elektronik Sanayi ve Ticaret AS* $ 46,237
-----------
Leisure Time (Products) - 1.0%
51,000 Berjaya Sports Toto Bhd. $ 83,210
2,900 Hero Honda Motors, Ltd.* 64,138
8,500 TVS Suzuki Ltd. (144A) 48,240
-----------
$ 195,588
-----------
Lodging - Hotels - 0.2%
5,550 The Indian Hotels Co., Ltd. (G.D.R.) (144A) $ 30,109
-----------
Publishing - 0.6%
5,300,000 Dogan Sirketler Grubu Holding AS* $ 128,134
-----------
Publishing (Newspapers) - 2.1%
9,690,000 Hurriyet Gazetecilile ve Matbaacilik AS* $ 93,707
24,400 Naspers Ltd. 203,183
34,000 Star Publications Inc. 115,421
-----------
$ 412,311
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 31
<PAGE>
Pioneer Emerging Markets VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Retail (Department Stores) - 0.2%
800 Shinsegae Department Store Co. $ 35,156
-----------
Retail (General Merchandise) - 0.7%
2,200 39 Shopping Corp.* $ 72,016
800 LG Home Shopping, Inc.* 76,052
-----------
$ 148,068
-----------
Retail (Specialty) - 0.7%
57,415 Walmart De Mexico SA de CV (Series C)* $ 132,371
-----------
Services (Advertising/Marketing) - 0.8%
850 Cheil Communications, Inc. $ 110,917
900 LG AD, Inc. 57,389
-----------
$ 168,306
-----------
Services (Commercial & Consumer) - 0.1%
4,851 Hansol CSN* $ 20,970
-----------
Textiles (Home Furnishings) - 0.2%
31,000 Far Eastern Textile Ltd. $ 38,542
-----------
Total Consumer Cyclicals $ 1,575,233
-----------
Consumer Staples - 10.1%
Broadcasting (Television/Radio/Cable) - 7.2%
240,900 ABS-CBN Broadcasting Corp. (A.D.R.)* $ 297,992
2,700 Antenna Hungaria Rt.* 78,282
1,025,000 Benpres Holdings Corp* 98,353
700 Benpres Holdings Corp. (G.D.R.) (144A)* 1,400
1,350 Ceske Radiokomunikace AS (G.D.R.)
(144A)* 60,075
11,650 Globo Cabo SA (A.D.R.)* 161,644
12,505 Grupo Radio Centro SA de CV (A.D.R.) 142,244
4,673 Grupo Televisa SA (G.D.R.)* 322,145
6,540 Matav-Cable Systems Media Ltd. 131,665
10,000 TV Azteca, SA de CV (A.D.R.) 131,875
-----------
$ 1,425,675
-----------
Entertainment - 1.1%
24,579 Corporacion Interamericana de
Entretenimiento SA (Series B)* $ 96,109
50,500 Tanjong Public Co., Ltd. 120,934
-----------
$ 217,043
-----------
Foods - 0.7%
2,780 Cheil Jedang Corp. $ 127,404
-----------
Restaurants - 0.8%
113,500 Kentucky Fried Chicken Bhd. $ 161,289
-----------
Retail Stores (Food Chains) - 0.3%
225,000 Migros Turk T.A.S. $ 41,704
6,000 President Chain Store Corp. 22,457
-----------
$ 64,161
-----------
Total Consumer Staples $ 1,995,572
-----------
Energy - 2.5%
Oil (International Integrated) - 1.1%
7,400 Petroleo Brasileiro SA $ 214,183
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Oil & Gas (Production/Exploration) - 0.5%
2,000 Lukoil Holding (A.D.R.) $ 102,500
-----------
Oil & Gas (Refining & Marketing) - 0.9%
2,400 Bharat Petroleum Corp., Ltd. $ 10,366
27,035 Hindustan Petroleum Corp., Ltd. 74,324
4,593 SK Corp. 84,237
-----------
$ 168,927
-----------
Total Energy $ 485,610
-----------
Financial - 12.8%
Banks (Major Regional) - 5.5%
3,188,000 Akbank T.A.S. $ 24,664
2,400 Banco Ganadero SA (A.D.R.) 14,100
5,000 Banco de Galicia y Buenos Aires SA de CV
(A.D.R.)* 74,063
69,000 Bangkok Bank Ltd. (Foreign Shares)* 84,544
2,075,000 Bank International* 23,708
4,800 Commercial International Bank 51,163
52,720 Grupo Financiero Banamex Accival
(Class O)* 221,675
5,291 Kookmin Bank 67,380
17,800 Malayan Banking Bhd. 72,137
636,200 National Finance Public Co., Ltd.* 90,944
4,425 Shinhan Bank 41,669
27,500 Thai Farmers Bank, Ltd.* 23,165
6,700,000 Turkiye Garanti Bankasi AS* 80,990
4,280 Uniao de Bancos Brasileiros SA (G.D.R.) 123,050
8,561,610 Yapi ve Kredi Bankasi AS* 95,214
-----------
$ 1,088,466
-----------
Banks (Money Center) - 0.8%
1,942,000 PT Lippo Bank Tbk* $ 27,735
72,000 PT Lippo Bank Tbk (Certificate
of Entitlement) (144A)* 0
5,852,800 Turkiye Is Bankasi 124,990
-----------
$ 152,725
-----------
Banks (Regional) - 0.2%
750 Alpha Bank SA $ 29,589
-----------
Consumer Finance - 0.4%
56,300 African Bank Investments Ltd.* $ 73,518
-----------
Financial (Diversified) - 3.5%
518,000 Ayala Corp. $ 95,817
40,200 Grupo Financiero Inbursa SA de CV* 134,939
18,500 Housing Development Finance Corp. Ltd. 231,633
11,453 Imperial Holdings Ltd.* 93,180
28,600 Pakistan Investment Fund Inc. 71,500
646,000 SM Prime Holdings, Inc. 77,668
-----------
$ 704,737
-----------
Insurance (Property/Casualty) - 1.0%
86,240 Cathay Life Insurance Co. Ltd. $ 199,285
-----------
</TABLE>
32 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Emerging Markets VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Investment Management - 1.4%
51,500 AMMB Holdings Bhd. $ 172,118
46,000 China Everbright Ltd. 35,995
5,796,000 Haci Omer Sabanci Holding AS 68,195
-----------
$ 276,308
-----------
Total Financial $ 2,524,628
-----------
Healthcare - 1.7%
Biotechnology - 0.5%
3,650 Dr. Reddy's Laboratories Ltd. $ 106,749
-----------
Healthcare (Drugs/Major Pharmaceuticals) - 0.8%
2,300 E Merck (India) Ltd. $ 16,463
2,100 Hoechst Marion Roussel Ltd. 22,526
1,500 Knoll Pharmaceutical Ltd. 11,803
6,100 Ranbaxy Laboratories Ltd. 78,774
800 Sun Pharmaceutical Industries Ltd.* 9,616
1,600 Sun Pharmaceutical Industries Ltd.
(Bonus Shares)* 19,161
-----------
$ 158,343
-----------
Healthcare (Medical Products/Supplies) - 0.3%
6,000 Medison Co., Ltd. $ 65,380
-----------
Total Healthcare $ 330,472
-----------
Technology - 33.9%
Communications Equipment - 3.4%
34,000 China Unicom Ltd.* $ 72,183
5,200 China Unicom Ltd. (A.D.R.)* 110,500
5,000 Datacraft Asia Ltd. 44,000
730 Gilat Satellite Networks Ltd.* 50,644
6,100 Insung Information Co., Ltd. 93,276
400 LG Information & Communication Co. 22,493
1,950 Nice Systems Ltd. (A.D.R.)* 150,516
700 Orckit Communications Ltd.* 21,088
3,800 Radvision Ltd.* 106,161
-----------
$ 670,861
-----------
Computers (Hardware) - 3.5%
45,000 Acer, Co. $ 84,215
24,700 Compal Electronics Corp. 60,695
1,350 Samsung Electronics Co. 446,761
16,000 Synnex Technology International Corp. 85,923
-----------
$ 677,594
-----------
Computers (Networking) - 0.8%
6,000 Radware Ltd.* $ 159,000
-----------
Computers (Peripherals) - 1.3%
32,774 Acer Peripherals, Inc. $ 92,803
8,239 Daou Technology, Inc.* 79,802
235,000 Datacapital SA* 79,718
-----------
$ 252,323
-----------
Computers (Software & Services) - 9.3%
4,550 BFL Software Ltd.* $ 51,976
890 Check Point Software Technologies Ltd.* 188,458
800 Daum Communications Corp.* 76,052
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Computers (Software & Services) - (continued)
2,300 HCL Technologies Ltd.* $ 72,013
50,000 Idion Technology Holdings Ltd.* 82,535
1,255 Infosys Technologies Ltd. 233,822
51,100 Ixchange Technology Holdings Ltd.* 99,790
7,102 Korea Next Education Service Inc.* 44,458
2,500 Mastek Ltd. 90,389
5,800 NIIT Ltd. 287,123
2,400 Satyam Computer Services, Ltd. 160,303
1,400 Silverline Technologies, Ltd. (A.D.R.)* 30,275
48,000 Softline Ltd.* 44,144
47,300 ST Computer Systems Ltd. 102,433
11,530 VocalTec Communications, Ltd.* 265,190
-----------
$ 1,828,961
-----------
Electronics (Semiconductors) - 13.5%
27,131 ACER Sertek, Inc. $ 104,638
32,000 Advanced Semiconductor Engineering Inc. 97,901
5,000 Ambit Microsystems Corp. 49,634
28,560 Asustek Computer, Inc. 236,102
31,500 Elec & Eltek International Co. Ltd. 79,065
16,900 Hana Microelectronics Public Co., Ltd. 128,556
16,000 Hon Hai Precision Industry Co. Ltd. 144,768
17,100 Hyundai Electronics Industries Co.* 337,392
1,725 L.G. Electronics Inc. 48,268
50,776 Phoenixtec Power Co., Ltd. 92,545
1,250 Samsung Corp.* 10,773
8,750 Siliconware Precision Industries Co.
(A.D.R.)* 80,938
119,040 Taiwan Semiconductor Manufacturing Co. 565,658
6,800 Unisem Bhd. 48,316
163,200 United Microelectronics Corp., Ltd. 454,145
4,000 Venture Manufacturing Ltd. 40,764
4,800 Winbond Electronics Corp. (G.D.R.)* 138,720
-----------
$ 2,658,183
-----------
Equipmnent (Semiconductors) - 0.4%
810 Orbotech Ltd.* $ 75,229
-----------
Services (Computer Systems) - 1.4%
28,939 Dimension Data Holdings Ltd.* $ 239,275
98,000 Founder Hong Kong Ltd.* 43,685
-----------
$ 282,960
-----------
Services (Data Processing) - 0.3%
13,000 Shinawatra Computer Co., Plc* $ 68,360
-----------
Total Technology $ 6,673,471
-----------
Transportation - 0.7%
Railroads - 0.4%
41,000 Malaysia International Shipping Bhd. $ 67,974
-----------
Shipping - 0.3%
160,000 Far Eastern Silo & Shipping Corp. $ 67,697
-----------
Total Transportation $ 135,671
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 33
<PAGE>
Pioneer Emerging Markets VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Utilities - 0.4%
Electric Companies - 0.0%
4,200 Manila Electric Co. (Class B) $ 6,166
-----------
Power Producers (Independent) - 0.4%
7,660 Unified Energy System (G.D.R.) (144A)* $ 86,293
-----------
Total Utilities $ 92,460
-----------
TOTAL COMMON STOCKS
(Cost $20,183,694) $18,319,113
-----------
RIGHTS/WARRANTS - 0.5%
72,000 PT Lippo Bank, 4/15/02 (144A)* $ 0
20,600 Queenbee Restaurant, 3/24/03 5,716
635,900 Siam Commercial Bank, 5/10/02* 74,669
32,211 TelecomAsia Public Co. Ltd., 4/13/02
(144A)* 16,094
-----------
TOTAL RIGHTS/WARRANTS
(Cost $191,427) $ 96,479
-----------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $21,447,812) (a) $19,678,477
===========
</TABLE>
* 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 June 30, 2000, the
value of these securities amounted to $383,824 or 2.0% of total net
assets.
<TABLE>
<S> <C>
(a) Distribution of investments by country of issue, as a percentage of
equity holdings, is as follows:
Taiwan 13.3%
South Korea 13.2
Brazil 12.4
Mexico 11.5
India 10.6
Israel 5.8
Malaysia 5.8
South Africa 4.2
Turkey 3.9
Philippines 3.4
Thailand 3.0
Greece 2.1
Russia 1.7
Singapore 1.6
Indonesia 1.2
Hungary 1.1
British Virgin Islands 1.0
Others (individually less than 1%) 4.2
------
100.0%
======
</TABLE>
34 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Europe VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 95.2%
PREFERRED STOCK - 1.4%
1,950 SAP AG $ 358,538
-----------
Total Preferred Stock
(Cost $376,322) $ 358,538
-----------
COMMON STOCKS - 93.8%
Basic Materials - 1.9%
Chemicals (Diversified) - 1.9%
6,625 Aventis SA* $ 477,213
-----------
Total Basic Materials $ 477,213
-----------
Capital Goods - 3.5%
Machinery (Diversified) - 1.7%
68,700 Invensys Plc $ 257,250
2,000 Sidel SA (Bearer Shares) 162,204
-----------
$ 419,454
-----------
Manufacturing (Specialized) - 1.8%
60,000 Pirelli SpA* $ 157,812
11,050 Tomra Systems ASA 293,078
-----------
$ 450,890
-----------
Total Capital Goods $ 870,344
-----------
Communication Services - 15.5%
Cellular/Wireless Telecommunications - 6.4%
6,300 Libertel NV* $ 95,933
5,900 Sonera Group Plc 268,963
28,500 Telecom Italia Mobile SpA 143,391
270,774 Vodafone AirTouch Plc 1,102,006
-----------
$ 1,610,293
-----------
Telecommunications (Long Distance) - 1.6%
10,000 COLT Telecom Group Plc* $ 334,665
1,350 KPNQWest NV* 53,100
-----------
$ 387,765
-----------
Telephone - 7.5%
26,625 British Telecom Plc $ 343,205
30,400 Global Telesystems, Inc. 366,700
9,000 Koninklijke KPN NV* 402,549
300 Swisscom AG 103,902
16,000 Telecom Italia Mobile SpA 162,834
21,522 Telefonica SA* 462,309
468 Telefonica de Espana (A.D.R.) 29,981
-----------
$ 1,871,480
-----------
Total Communication Services $ 3,869,538
-----------
Consumer Cyclicals - 5.2%
Services (Advertising/Marketing) - 1.8%
600 Publigroupe SA $ 448,708
-----------
Services (Commercial & Consumer) - 3.4%
550 Kuoni Reisen Holding AG (Series B)
(Registered Shares) $ 254,544
10,600 TNT Post Group NV 285,885
3,468 Vivendi 306,093
-----------
$ 846,522
-----------
Total Consumer Cyclicals $ 1,295,230
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Consumer Staples - 7.4%
Broadcasting (Television/Radio/Cable) - 2.4%
1,600 Canal Plus $ 268,844
1,800 PT Multimedia.Com* 13,799
1,800 PT Multimedia Servicos* 89,360
3,000 Sogecable* 106,573
4,700 United Pan-Europe Communications NV* 122,901
-----------
$ 601,477
-----------
Entertainment - 1.0%
8,000 Pearson Plc $ 251,755
-----------
Foods - 1.1%
2,000 Groupe Danone* $ 265,407
-----------
Restaurants - 0.9%
17,000 Compass Group Plc $ 223,765
-----------
Retail Stores (Food Chains) - 0.9%
3,400 Carrefour Supermarch SA $ 232,413
-----------
Services (Employment) - 1.1%
330 Adecco SA* $ 280,369
-----------
Total Consumer Staples $ 1,855,186
-----------
Energy - 5.7%
Oil (International Integrated) - 2.9%
30,000 BP Amoco Plc $ 287,763
51,000 Shell Transport & Trading Co. 431,327
-----------
$ 719,090
-----------
Oil & Gas (Refining & Marketing) - 2.8%
47,500 ENI SpA $ 274,357
2,798 Total Fina Elf SA 429,003
-----------
$ 703,360
-----------
Total Energy $ 1,422,450
-----------
Financial - 19.7%
Banks (Major Regional) 7.2%
33,000 Banca Fideuram SpA $ 497,779
24,060 Banco Santander Central Hispano, SA 253,820
50,000 Bipop-Carire SpA 393,337
1,700 Deutsche Pfandbriefbank AG 169,278
120 Julius Baer Holding, Ltd. 474,454
-----------
$ 1,788,668
-----------
Banks (Money Center) - 2.7%
38,000 Lloyds TSB Group Plc $ 361,050
18,500 Royal Bank of Scotland Group 307,326
-----------
$ 668,376
-----------
Financial (Diversified) - 2.7%
11,000 Fortis NV $ 320,198
1,700 Lagardere SCA 129,839
450 Marschillek Lautenschlaeger Und Partner
AG 224,525
-----------
$ 674,562
-----------
Insurance (Multi-Line) - 3.4%
1,690 Axa $ 266,218
17,000 Mediolanum SpA 276,558
10,500 Prudential Corp. Plc 153,459
330 Zurich Allied AG 163,043
-----------
$ 859,278
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 35
<PAGE>
Pioneer Europe VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Insurance (Property/Casualty) - 1.7%
16,500 Skandia Forsakrings AB $ 435,983
-----------
Investment Management - 2.0%
26,500 Amvescap Plc $ 418,172
900 Consors Discount Broker AG* 80,940
-----------
$ 499,112
-----------
Total Financial $ 4,925,979
-----------
Healthcare - 8.6%
Biotechnology - 1.7%
2,500 Celltech Chiroscience Plc* $ 48,036
2,200 Qiagen NV* 382,157
-----------
$ 430,193
-----------
Healthcare (Drugs/Major Pharmaceuticals) - 6.2%
13,100 Glaxo Wellcome Plc $ 381,330
230 Novartis AG 364,312
200 Novartis AG (A.D.R.) 8,000
41 Roche Holdings AG 399,105
30,500 Smithkline Beecham Plc 399,616
-----------
$ 1,552,363
-----------
Healthcare (Medical Products/Supplies) - 0.7%
50,000 Biora AB* $ 178,612
-----------
Total Healthcare $ 2,161,168
-----------
Technology - 25.4%
Communications Equipment - 7.7%
4,500 Alcatel SA $ 295,146
28,800 Telefonaktiebologet LM Ericsson 569,925
20,800 Nokia Oyj 1,061,398
-----------
$ 1,926,469
-----------
Computers (Hardware) - 0.5%
1,500 JUMPtec Industrielle Computertechnik AG* $ 131,749
-----------
Computers (Networking) - 2.0%
4,900 Equant NV* $ 199,097
645 Intershop Communications AG* 294,898
-----------
$ 493,995
-----------
Computers (Software & Services) - 9.2%
2,650 Autonomy Corporation Plc* $ 318,000
2,400 Brokat Infosystems AG* 186,739
1,100 Cap Gemini SA 193,756
7,833 Dassault Systemes SA* 730,617
6,800 Framtidsfabriken AB* 93,695
830 GFT Technologies AG* 146,594
5,100 Lernout & Hauspie Speech Products NV* 224,719
3,000 Ser System AG 113,132
4,500 Tietoenator Oyj (B Shares) 150,151
29,000 TJ Group Oyj* 139,816
-----------
$ 2,297,219
-----------
Electronics (Semiconductors) - 3.4%
1,700 Infineon Technologies AG* $ 135,520
3,300 NXT Plc* 51,425
3,160 STMicroelectronics NV 199,112
3,000 Siemens AG 450,523
-----------
$ 836,580
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Services (Computer Systems) - 1.5%
13,410 Getronics NV $ 206,761
1,800 Ingenico SA 161,192
-----------
$ 367,953
-----------
Services (Data Processing) - 1.1%
10,000 Infonet Services Corp.* $ 119,375
31,880 Merkantildata ASA* 163,906
-----------
$ 283,281
-----------
Total Technology $ 6,337,246
-----------
Utilities - 0.9%
Electric Companies - 0.9%
12,500 Union Electrica Fenosa SA $ 226,145
-----------
Total Utilities $ 226,145
-----------
Total Common Stocks
(Cost $22,725,899) $23,440,499
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $23,102,221) (a) $23,799,037
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 4.8%
Repurchase Agreement - 4.8%
$1,200,000 Credit Suisse First Boston Group, Inc.,
6.5%, dated 6/30/00, repurchase price
of $1,200,000 plus accrued interest on
7/3/00, collateralized by $1,232,000
U.S. Treasury Notes, 5.25%, 5/31/01 $ 1,200,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,200,000) $ 1,200,000
-----------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100.0%
(Cost $24,302,221) $24,999,037
===========
</TABLE>
* Non-income producing security.
(a) Distribution of investments by country of issue, as a percentage of equity
holdings, is as follows:
<TABLE>
<S> <C>
United Kingdom 23.8%
France 18.2
Switzerland 10.5
Germany 9.6
Italy 8.0
Netherlands 7.9
Finland 6.8
Sweden 5.4
Spain 4.5
Norway 2.0
United States 1.9
Belgium 1.0
Portugal 0.4
-----
100.0%
=====
</TABLE>
36 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
PREFERRED STOCKS - 3.3%
76,179 News Corp., Ltd. $ 918,695
10,000 Petrobras Brasileiros SA 302,190
4,500 SAP AG 827,396
3,000 Telemig Celular Participacoes (A.D.R.)* 214,500
-----------
TOTAL PREFERRED STOCKS
(Cost $1,727,163) $ 2,262,781
-----------
COMMON STOCKS - 96.7%
Basic Materials - 5.5%
Chemicals (Diversified) - 2.3%
15,432 Aventis SA $ 1,120,605
100,000 WMC Ltd. 446,923
-----------
$ 1,567,528
-----------
Construction (Cement & Aggregates) - 1.4%
55,002 Cemex, SA $ 257,804
600 Holderbank Financiere Glarus Ltd.
(Bearer Shares) 735,587
-----------
$ 993,391
-----------
Metals Mining - 0.8%
32,000 Rio Tinto Plc $ 522,877
-----------
Paper & Forest Products - 1.0%
27,000 UPM-Kymmene Corp. $ 670,200
-----------
Total Basic Materials $ 3,753,996
-----------
Capital Goods - 5.0%
Electrical Equipment - 1.2%
6,000 ABB Ltd. $ 718,117
4,000 Densei-Lambda KK* 82,363
-----------
$ 800,480
-----------
Engineering & Construction - 0.3%
300 Bouygues SA $ 200,487
-----------
Machinery (Diversified) - 0.7%
130,000 Invensys Plc $ 486,792
-----------
Office Equipment & Supplies - 2.3%
23,000 Canon, Inc. $ 1,144,419
9,000 Societe BIC SA 440,785
-----------
$ 1,585,204
-----------
Trucks & Parts - 0.5%
6,500 Valeo $ 347,511
-----------
Total Capital Goods $ 3,420,474
-----------
Communication Services - 17.8%
Cellular/Wireless Telecommunications - 6.5%
6,000 Ceske Radiokomunikace (G.D.R.) (144A)* $ 267,000
1,000 China Telecom Hong Kong Ltd. (A.D.R.)* 177,813
13,000 Libertel NV* 197,957
45 NTT DoCoMo, Inc. 1,217,076
7,000 SK Telecom Co., Ltd. (A.D.R.) 254,188
18,000 Sonera Group Plc 820,565
376,000 Vodafone AirTouch Plc 1,530,260
-----------
$ 4,464,859
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Telecommunications (Long Distance) - 2.1%
47,000 Cable & Wireless Plc $ 794,996
15,000 COLT Telecom Group Plc* 501,997
4,000 KPNQWest NV* 157,335
-----------
$ 1,454,328
-----------
Telephone - 9.2%
55,514 British Telecom Plc $ 715,594
13,000 Deutsche Telekom AG 738,337
24,000 Global Telesystems, Inc.* 289,500
5,500 Hellenic Telecommunication Organization SA 134,760
11,000 Koninklijke KPN NV* 492,005
4,000 Korea Telecom Corp. (A.D.R.) 193,500
4,000 Mobistar SA* 132,780
60 Nippon Telegraph & Telephone Corp.* 797,248
5,000 NTL Inc.* 299,375
2,000 Philippine Long Distance Telephone Co.
(A.D.R.) 35,500
700 Swisscom AG 242,437
55,000 Telecom Italia SpA 364,934
30,000 Telecom Italia Mobile SpA 305,313
63,000 Telefonica SA* 1,353,288
3,000 Telefonos de Mexico SA (A.D.R.) 171,375
-----------
$ 6,265,946
-----------
Total Communication Services $12,185,131
-----------
Consumer Cyclicals - 10.9%
Auto Parts & Equipment - 0.9%
6,000 AutoLiv Inc. (Swedish Depositary Receipt) $ 146,972
36,000 GKN Plc 458,333
-----------
$ 605,305
-----------
Automobiles - 2.9%
29,000 Bayerische Motoren Werke AG $ 883,193
25,000 Renault SA* 1,136,093
-----------
$ 2,019,286
-----------
Consumer (Jewelry, Novelties & Gifts) - 0.1%
3,000 Bulgari SpA $ 40,097
-----------
Distributors (Durables) - 0.4%
60,000 Itochu Corp.* $ 302,502
-----------
Hardware & Tools - 1.0%
52,000 Makita Corp. $ 495,425
30,000 Wolseley Plc 162,945
-----------
$ 658,370
-----------
Household Furnishings & Appliances - 1.4%
10,000 Sony Corp. $ 932,950
-----------
Leisure Time (Products) - 0.9%
70,000 Berjaya Sports Toto Bhd. $ 114,211
82,000 Tabcorp Holdings Ltd. 470,785
-----------
$ 584,996
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 37
<PAGE>
Pioneer International Growth VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Publishing (Newspapers) - 1.2%
13,800 Naspers Ltd. $ 114,915
80,000 Reed International Plc 696,563
-----------
$ 811,478
-----------
Retail (General Merchandise) - 0.0%
50 Ryohin Keikaku Co., Ltd. $ 6,361
-----------
Retail (Specialty-Apparel) - 0.2%
100,000 Giordano International Ltd. $ 152,011
-----------
Services (Advertising/Marketing) - 0.2%
200 Publigroupe SA $ 149,569
-----------
Services (Commercial & Consumer) - 0.9%
7,000 Vivendi $ 617,834
-----------
Textiles (Apparel) - 0.8%
6,000 Gucci Group NV (NY Shares) $ 568,500
-----------
Total Consumer Cyclicals $ 7,449,259
-----------
Consumer Staples - 8.9%
Beverages (Non-Alcoholic) - 0.8%
80,000 Cadbury Schweppes Plc $ 526,204
-----------
Broadcasting (Television/Radio/Cable) - 3.1%
2,500 Canal Plus $ 420,068
4,000 EM TV & Merchandising AG* 236,766
5,500 Grupo Televisa, SA (A.D.R.)* 379,156
3,000 Nippon Broadcasting System Inc. 184,611
19,000 Reuters Group Plc 325,693
21,000 United Pan-Europe Communications NV* 549,134
-----------
$ 2,095,428
-----------
Entertainment - 0.5%
70,000 Manchester United Plc $ 370,408
-----------
Foods - 3.1%
6,400 Groupe Danone* $ 849,301
164,625 JG Summit Holdings Inc. 12,180
310 Nestle SA 620,437
31,300 Tata Tea Ltd. (G.D.S.) (144A)* 230,838
9,000 Unilever NV (NY Shares) 387,000
-----------
$ 2,099,756
-----------
Household Products (Non-Durables) - 1.1%
25,000 Kao Corp. $ 763,323
-----------
Retail (Drug Stores) - 0.3%
28,000 Boots Company Plc $ 212,660
-----------
Total Consumer Staples $ 6,067,779
-----------
Energy - 4.9%
Oil (International Integrated) - 1.0%
80,000 Shell Transport & Trading Co. $ 676,592
-----------
Oil & Gas (Production/Exploration) - 1.5%
290,000 Lasmo Plc $ 613,161
7,000 Petrochina Co. Ltd. (A.D.R.)* 146,563
42,000 Saipem SpA 248,604
-----------
$ 1,008,328
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Oil & Gas (Refining & Marketing) - 2.4%
96,000 ENI SpA $ 554,490
7,296 Total Fina Elf SA 1,118,660
-----------
$ 1,673,150
-----------
Total Energy $ 3,358,070
-----------
Financial - 11.9%
Banks (Major Regional) - 3.5%
45,000 Banca Popolare di Milano $ 324,359
40,000 Banco Santander Central Hispano, SA 421,978
150,000 Bangkok Bank Ltd. (Foreign Shares)* 183,791
80,000 Bipop-Carire SpA 629,339
29,075 Development Bank of Singapore Ltd. 373,749
12,000 National Australia Bank Ltd. 200,213
18,000 Svenska Handelbanken 261,284
-----------
$ 2,394,713
-----------
Banks (Money Center) - 2.6%
14,000 Barclays Plc $ 346,738
4,000 Credit Lyonnais SA* 190,176
65,000 Lloyds TSB Group Plc 617,587
37,000 Royal Bank of Scotland Group 614,651
-----------
$ 1,769,152
-----------
Financial (Diversified) - 1.5%
20,000 Cheung Kong Holdings Ltd. $ 221,282
11,000 Fortis NV 320,197
9,580 Nichiei Co., Ltd. 157,086
55,000 Swire Pacific Ltd. 321,724
-----------
$ 1,020,289
-----------
Insurance (Multi-Line) - 3.7%
6,500 Axa $ 1,023,916
35,000 Prudential Corp. Plc 511,529
58,000 Riunione Adriatica di Sicurta SpA 637,893
730 Zurich Allied AG 360,671
-----------
$ 2,534,009
-----------
Investment Management - 0.6%
13,000 Ashi Bank Ltd. $ 54,639
27,000 Daiwa Securities Group, Inc. 356,217
-----------
$ 410,856
-----------
Total Financial $ 8,129,019
-----------
Healthcare - 3.6%
Healthcare (Drugs/Major Pharmaceuticals) - 3.1%
22,000 Glaxo Wellcome Plc $ 640,403
300 Novartis AG 475,189
6,000 Schering AG 337,735
50,000 Smithkline Beecham Plc 655,108
-----------
$ 2,108,435
-----------
Healthcare (Medical Products/Supplies) - 0.5%
10,000 Terumo Corp. $ 338,312
-----------
Total Healthcare $ 2,446,747
-----------
</TABLE>
38 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Technology - 25.5%
Computers (Software & Services) - 1.8%
4,000 Check Point Software Technologies Ltd.* $ 847,000
8,000 Lernout & Hauspie Speech Products NV* 352,500
-----------
$ 1,199,500
-----------
Services (Data Processing) - 0.5%
16,000 Infonet Services Corp.* $ 191,000
31,000 Merkantildata ASA 159,382
-----------
$ 350,382
-----------
Communications Equipment - 6.3%
8,000 Alcatel (A.D.R.) $ 532,000
32,000 China Unicom Ltd.* 67,937
5,000 China Unicom Ltd. (A.D.R.)* 106,250
4,000 Matsushita Communication Industrial, Ltd. 466,664
33,000 Nokia Oyj 1,683,948
9,000 Nortel Networks Corp. 624,611
40,000 Telefonaktiebologet LM Ericsson 791,563
-----------
$ 4,272,973
-----------
Computers (Hardware) - 0.8%
83,283 Compal Electronics Corp. $ 204,650
1,000 Samsung Electronics Co. 330,934
-----------
$ 535,584
-----------
Computers (Networking) - 0.8%
8,000 Equant NV* $ 325,056
75,000 Stepstone ASA* 247,450
-----------
$ 572,506
-----------
Computers (Software & Services) - 3.0%
5,000 Autonomy Corp. Plc* $ 600,000
3,000 Dassault Systemes SA 279,823
6,000 FI Systems* 241,157
5,700 Softbank Corp. 773,500
44,000 Sunevision Holdings Ltd.* 35,277
700 Trans Cosmos Inc. 105,018
-----------
$ 2,034,775
-----------
Electronics (Semiconductors) - 11.3%
160,000 Elec & Eltek International Co. Ltd. $ 401,600
15,000 Fujitsu Ltd. 518,777
15,000 Hyundai Electronics Industries Co., Ltd.* 295,957
28,000 Koninklijke Philips Electronics NV 1,320,542
3,000 Rohm Co., Ltd. 876,408
8,000 Siemens AG 1,201,395
15,000 STMicroelectronics NV 945,153
59,008 Taiwan Semiconductor Manufacturing Co. 280,396
8,000 Tokyo Electron, Ltd. 1,094,661
78,000 Toshiba Corp. 879,857
-----------
$ 7,814,746
-----------
Services (Computer Systems) - 1.0%
20,000 Baltimore Technologies Plc* $ 152,127
15,000 Bull SA* 131,462
24,000 Getronics NV 370,042
-----------
$ 653,631
-----------
Total Technology $17,434,097
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Transportation - 1.4%
Railroads - 0.9%
40,000 Railtrack Group Plc $ 620,310
-----------
Shipping - 0.5%
40,000 Peninsular & Orient Steam Navigation Co. $ 341,927
-----------
Total Transportation $ 962,237
-----------
Utilities - 1.3%
Electric Companies - 1.3%
59,125 British Energy Plc $ 160,569
66,000 British Energy Plc (Deferred Shares)
(144A)* 0
20,000 Endesa SA 387,417
40,000 Scottish Power Plc 338,296
-----------
Total Utilities $ 886,282
-----------
TOTAL COMMON STOCKS
(Cost $56,270,153) $66,093,091
-----------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $57,997,316) (a) $68,355,872
===========
</TABLE>
* 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 June 30, 2000, the
value of these securities amounted to $497,838 or 0.7% of total net assets.
(a) Distribution of investments by country of issue, as a percentage of equity
holdings, is as follows:
<TABLE>
<S> <C>
United Kingdom 20.7%
Japan 16.9
France 14.5
Netherlands 6.4
Germany 6.2
Switzerland 4.8
Finland 4.6
Italy 4.5
Spain 3.2
Australia 3.0
Sweden 1.8
United States 1.6
Hong Kong 1.6
South Korea 1.6
Israel 1.2
Mexico 1.2
Singapore 1.1
Others (individually less than 1%) 5.1
-----
100.0%
=====
</TABLE>
The accompanying notes are an integral part of these financial statements. 39
<PAGE>
Pioneer Science & Technology VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 86.1%
Capital Goods - 5.5%
Electrical Equipment - 5.5%
1,500 Kemper Corp.* $ 37,594
300 Power-One, Inc.* 34,181
500 Sanmina Corp.* 42,750
1,600 SCI Systems, Inc.* 62,700
1,400 Solectron Corp.* 58,625
----------
Total Capital Goods $ 235,850
----------
Communication Services - 0.9%
Cellular/Wireless Telecommunications - 0.5%
300 Western Wireless Corp.* $ 16,350
----------
Telephone - 0.4%
400 Qwest Communications International, Inc. $ 19,875
----------
Total Communication Services $ 36,225
----------
Healthcare - 3.3%
Biotechnology - 3.3%
600 ImClone Systems, Inc.* $ 45,863
300 Millennium Pharmaceuticals, Inc.* 33,563
250 Protein Design Labs, Inc.* 41,238
300 QLT Phototherapeutics, Inc.* 23,194
----------
Total Healthcare $ 143,858
----------
Technology - 76.4%
Communications Equipment - 10.9%
300 Centillium Communications Inc.* $ 20,700
250 Ciena Corp.* 41,672
300 Exfo Electro-Optical Engineering, Inc.* 13,163
1,200 Harmonic, Inc.* 29,700
800 Lucent Technologies, Inc.* 47,400
1,050 Motorola Inc. 30,516
300 New Focus, Inc.* 24,638
300 Next Level Communication, Inc.* 25,725
800 Nokia Oyj (A.D.R.) 39,950
1,000 Northern Telecom Ltd. 68,250
400 ONI Systems Corp.* 46,881
450 Qualcomm Inc.* 27,000
600 RF Micro Devices Inc.* 52,575
----------
$ 468,170
----------
Computers (Hardware) - 3.4%
1,500 Compaq Computer Corp. $ 38,344
900 Dell Computer Corp.* 44,381
700 Sun Microsystems, Inc.* 63,656
----------
$ 146,381
----------
Computers (Networking) - 7.2%
2,100 Cabletron Systems, Inc.* $ 53,025
1,000 Cisco Systems, Inc.* 63,563
1,000 EMC Corp.* 76,938
600 Stratos Lightwave, Inc.* 16,725
400 Sycamore Networks Inc.* 44,150
800 Worldgate Communications, Inc.* 14,200
900 Xircom Inc.* 42,750
----------
$ 311,351
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Computers (Software & Services) - 10.9%
500 Ariba, Inc.* $ 49,023
1,300 Citrix Systems, Inc.* 24,619
500 E.Piphany Inc.* 53,594
600 Legato Systems, Inc.* 9,075
1,800 Lernout & Hauspie Speech Products NV* 79,310
200 Microsoft Corp.* 16,000
1,000 Oracle Corp.* 84,063
3,900 Parametric Technology Co.* 42,900
1,200 Synopsys, Inc.* 41,475
300 StorageNetworks, Inc.* 27,075
1,100 Wind River Systems* 41,663
----------
$ 468,797
----------
Electronics (Component Distributors) - 2.7%
700 Flextronics International, Ltd.* $ 48,081
400 Marvell Technology Group Ltd.* 22,800
250 PMC - Sierra Inc.* 44,422
----------
$ 115,303
----------
Electronics (Semiconductors) - 23.3%
2,100 Adaptec, Inc.* $ 47,775
700 Altera Corp.* 71,356
500 Applied Micro Circuits Corp.* 49,375
250 Broadcom Co.* 54,734
450 Cree Inc.* 60,075
2,000 Integrated Circuit Systems, Inc.* 34,250
1,200 Intel Corp. 160,422
500 JDS Uniphase Corp.* 59,938
150 Linear Technology Corp. 9,591
1,200 Micron Technology, Inc.* 105,675
500 Pixelworks, Inc.* 11,375
1,300 Sandisk Corp.* 79,544
600 Semtech Corp* 45,891
1,200 SGC Holding Corp.* 26,250
1,000 Texas Instruments, Inc. 68,688
900 Vitesse Semiconductor Corp.* 66,206
300 Waters Corp.* 37,444
200 Xilinx, Inc.* 16,513
----------
$1,005,102
----------
Equipment (Semiconductors) - 18.0%
1,000 Applied Materials, Inc.* $ 90,625
1,200 ASM Lithography Holdings NV* 52,950
1,000 ATMI, Inc.* 46,500
800 Cymer, Inc.* 38,200
600 DuPont Photomasks, Inc.* 41,100
600 EMCORE Corp.* 72,000
900 HI/FN Inc.* 39,938
300 Infineon Technologies AG (A.D.R.)* 23,775
1,100 Lam Research Corp.* 41,250
1,500 Novellus Systems, Inc.* 84,843
950 Photon Dynamics Inc.* 70,953
1,000 PRI Automation, Inc.* 65,391
600 Teradyne, Inc.* 44,100
</TABLE>
40 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Science & Technology VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Equipment (Semiconductors) - (continued)
850 Veeco Instruments, Inc.* $ 62,262
----------
$ 773,887
----------
Total Technology $3,288,991
----------
TOTAL COMMON STOCKS
(Cost $3,374,512) $3,704,924
----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 13.9%
Repurchase Agreement - 13.9%
$600,000 Chase Manhattan Credit Corp., 6.0%,
dated 6/30/00, repurchase price of
$600,000 plus accrued interest on
7/3/00, collateralized by $608,000
U.S. Treasury Notes, 4.5%, 1/31/01. $ 600,000
----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $600,000) $ 600,000
----------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $3,974,512) $4,304,924
==========
</TABLE>
* Non-income producing security.
The accompanying notes are an integral part of these financial statements. 41
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 96.7%
Basic Materials - 4.4%
Aluminum - 0.7%
28,000 Alcoa, Inc. $ 812,000
------------
Chemicals - 0.8%
30,000 IMC Global Inc. $ 390,000
13,000 Rohm & Haas Co. 448,500
------------
$ 838,500
------------
Chemicals (Specialty) - 1.7%
34,000 Borden Chemicals & Plastics, L.P.* $ 140,250
33,500 Hercules, Inc. 471,094
84,000 Wellman, Inc. 1,359,750
------------
$ 1,971,094
------------
Paper & Forest Products - 1.2%
29,000 Bowater, Inc. $ 1,279,619
------------
Total Basic Materials $ 4,901,213
------------
Capital Goods - 7.6%
Aerospace/Defense - 0.7%
17,000 General Dynamics Corp. $ 888,250
------------
Electrical Equipment - 1.5%
16,800 Molex Inc. $ 808,500
14,500 SCI Systems, Inc.* 568,219
8,300 Vishay Intertechnology, Inc.* 314,881
------------
$ 1,691,600
------------
Machinery (Diversified) - 1.6%
14,500 Deere & Co. $ 536,500
58,600 Kaydon Corp. 1,230,600
------------
$ 1,767,100
------------
Manufacturing (Specialized) - 0.8%
16,500 Sealed Air Corp.* $ 864,188
------------
Metal Fabricators - 1.2%
65,000 Brush Engineered Materials Inc. $ 1,015,625
10,000 Penn Engineering & Manufacturing Corp. 352,500
------------
$ 1,368,125
------------
Waste Management - 1.7%
100,000 Waste Management Inc. $ 1,900,000
------------
Total Capital Goods $ 8,479,263
------------
Communication Services - 1.6%
Telephone - 1.6%
25,200 Century Telephone Enterprises, Inc. $ 724,500
10,000 Telephone and Data Systems, Inc. 1,002,500
------------
Total Communication Services $ 1,727,000
------------
Consumer Cyclicals - 11.8%
Auto Parts & Equipment - 0.7%
16,700 ITT Industries $ 507,263
14,000 Lear Corp.* 280,000
------------
$ 787,263
------------
Household Furnishings & Appliances - 0.7%
31,400 Ethan Allen Interiors, Inc. $ 753,600
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Leisure Time (Products) - 1.6%
129,000 Mattel, Inc. $ 1,701,186
------------
Publishing - 1.0%
50,000 Primedia, Inc.* $ 1,137,500
------------
Retail (Computers & Electronics) - 0.5%
12,000 Radioshack Corp. $ 568,500
------------
Retail (Discounters) - 0.8%
47,000 Family Dollar Stores, Inc. $ 919,440
------------
Retail (General Merchandise) - 0.5%
76,000 Kmart Corp.* $ 517,750
------------
Retail (Specialty) - 3.7%
16,000 Blockbuster, Inc. $ 155,000
84,000 Borders Group, Inc.* 1,307,250
78,000 Cole National Corp. 546,000
104,700 OfficeMax, Inc.* 523,500
165,500 Venator Group, Inc.* 1,696,375
------------
$ 4,228,125
------------
Retail (Specialty-Apparel) - 0.6%
19,000 AnnTaylor Stores Corp.* $ 629,375
------------
Services (Commercial & Consumer) - 1.7%
45,600 Regis Corp. $ 570,000
36,000 Sabre Group Holdings, Inc. 1,026,000
72,500 Stewart Enterprises, Inc. 256,016
------------
$ 1,852,016
------------
Total Consumer Cyclicals $ 13,094,755
------------
Consumer Staples - 9.1%
Broadcasting (Television/Radio/Cable) - 0.7%
33,000 USA Networks Inc.* $ 713,625
------------
Entertainment - 2.5%
39,500 Viacom, Inc. (Class B) (Non-voting)* $ 2,693,406
------------
Foods - 0.3%
15,000 Ralston-Ralston Purina Group $ 299,063
5,300 Tyson Foods, Inc. 46,375
------------
$ 345,438
------------
Housewares - 1.3%
60,000 Newell Co. $ 1,545,000
------------
Restaurants - 1.4%
102,200 Lone Star Steakhouse & Saloon, Inc.* $ 1,034,775
17,000 McDonald's Corp. 559,938
------------
$ 1,594,713
------------
Retail Stores (Food Chains) - 0.7%
33,500 Kroger Co.* $ 739,094
------------
Services (Employment) - 0.9%
111,700 Modis Professional Services Inc.* $ 991,338
------------
Specialty Printing - 1.3%
93,800 John H. Harland Co. $ 1,401,136
------------
Total Consumer Staples $ 10,023,750
------------
Energy - 9.2%
Oil (Domestic Integrated) - 1.0%
47,600 Conoco, Inc. $ 1,047,200
------------
</TABLE>
42 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Oil & Gas (Drilling & Equipment) - 3.8%
75,000 R&B Falcon Corp.* $ 1,767,188
25,000 Transocean Sedco Forex Inc. 1,335,938
27,000 Weatherford International, Inc.* 1,074,938
-----------
$ 4,178,064
-----------
Oil & Gas (Production/Exploration) - 3.8%
20,700 Anadarko Petroleum Corp. $ 1,020,769
19,000 Apache Corp. 1,117,438
27,000 Burlington Resources, Inc. 1,032,750
69,000 Ocean Energy Inc.* 978,938
-----------
$ 4,149,895
-----------
Oil & Gas (Refining & Marketing) - 0.6%
24,900 Tosco Corp. $ 704,979
-----------
Total Energy $10,080,138
-----------
Financial - 14.6%
Banks (Major Regional) - 0.6%
14,000 Comerica, Inc. $ 628,250
-----------
Banks (Regional) - 2.4%
27,000 Marshall & Ilsley Corp. $ 1,120,500
39,800 North Fork Bancorporation, Inc. 601,975
35,200 TCF Financial Corp. 904,200
-----------
$ 2,626,675
-----------
Consumer Finance - 0.9%
31,000 Countrywide Credit Industries, Inc. $ 939,688
-----------
Financial (Diversified) - 1.2%
37,700 Axa Financial, Inc. $ 1,281,800
-----------
Insurance (Multi-Line) - 1.1%
18,800 Nationwide Financial Services, Inc. $ 618,050
11,000 ReliaStar Financial Corp. 576,813
-----------
$ 1,194,863
-----------
Insurance (Property/Casualty) - 6.0%
61,000 Ace Ltd. $ 1,708,000
16,500 Allmerica Financial Corp. 864,188
19,000 Exel Ltd. 1,028,375
39,000 Financial Security Assurance Holdings, Ltd. 2,959,125
-----------
$ 6,559,688
-----------
Investment Banking/Brokerage - 0.8%
21,000 Bear Stearns Companies Inc. $ 874,124
-----------
Savings & Loan Companies - 1.6%
54,000 Charter One Financial, Inc. $ 1,242,000
21,000 Washington Mutual, Inc. 606,375
-----------
$ 1,848,375
-----------
Total Financial $15,953,463
-----------
Healthcare - 8.7%
Healthcare (Drugs - Generic & Other) - 1.7%
21,000 Alza Corp.* $ 1,241,624
31,400 Mylan Laboratories Inc. 573,050
-----------
$ 1,814,674
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare (Hospital Management) - 6.3%
123,650 Columbia/HCA Healthcare Corp. $ 3,755,869
130,700 Health Management Associates, Inc.* 1,707,269
22,000 Lincare Holdings Inc.* 541,750
12,000 Wellpoint Health Networks Inc.* 869,250
-----------
$ 6,874,138
-----------
Healthcare (Medical Products/Supplies) - 0.7%
13,000 Boston Scientific Corp.* $ 285,188
25,000 Sybron International Corp.* 495,313
-----------
$ 780,501
-----------
Total Healthcare $ 9,469,313
-----------
Technology - 19.8%
Communications Equipment - 1.0%
8,000 Alcatel (A.D.R.) $ 532,000
16,000 Andrew Corp.* 537,000
-----------
$ 1,069,000
-----------
Computers (Hardware) - 5.5%
17,000 Gateway 2000 Inc.* $ 964,750
133,000 NCR Corp.* 5,178,688
-----------
$ 6,143,438
-----------
Computers (Networking) - 3.5%
29,000 Cabletron Systems, Inc.* $ 732,250
10,500 Lycos, Inc.* 567,000
12,500 Seagate Technology Inc.* 687,500
112,000 Storage Technology Corp.* 1,225,000
14,500 Xircom Inc.* 688,750
-----------
$ 3,900,500
-----------
Computers (Software & Services) - 0.9%
4,000 Storage Networks, Inc.* $ 361,000
17,000 Synopsys, Inc.* 587,563
-----------
$ 948,563
-----------
Electronics (Semiconductors) - 0.8%
37,100 Adaptec, Inc.* $ 844,024
-----------
Photography/Imaging - 4.4%
15,000 Eastman Kodak Co. $ 892,500
135,000 Imation Corp.* 3,965,627
-----------
$ 4,858,127
-----------
Services (Computer Systems) - 2.6%
8,000 Investment Technology Group, Inc.* $ 340,500
56,000 Keane, Inc.* 1,211,000
41,000 SunGard Data Systems, Inc.* 1,271,000
-----------
$ 2,822,500
-----------
Services (Data Processing) - 1.1%
14,500 Equifax Inc. $ 380,625
16,500 First Data Corp. 818,813
-----------
$ 1,199,438
-----------
Total Technology $21,785,590
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 43
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Utilities - 9.9%
Electric Companies - 5.9%
14,700 Allegheny Energy, Inc. $ 402,413
45,500 Citizens Utilities Co. (Class B)* 784,875
46,100 CMS Energy Corp. 1,019,963
35,600 DPL, Inc. 780,975
17,000 DQE, Inc. 671,500
25,100 DTE Energy Co. 767,119
11,000 Kansas City Power & Light Co. 247,500
29,000 NSTAR 1,179,934
21,000 Houston Industries, Inc. 620,813
------------
$ 6,475,092
------------
Natural Gas - 4.0%
17,000 Dynegy Inc. $ 1,161,313
35,000 El Paso Energy Corp. 1,782,813
35,000 KeySpan Energy Corp. 1,076,250
20,900 Questar Corp. 404,937
------------
$ 4,425,313
------------
Total Utilities $ 10,900,405
------------
TOTAL COMMON STOCKS
(Cost $99,371,449) $106,414,890
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 3.3%
Commercial Paper - 3.3%
$3,624,000 Household Finance Corp., 6.88%, 7/3/00 $ 3,624,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $3,624,000) $ 3,624,000
------------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $102,995,449) $110,038,890
============
</TABLE>
* Non-income producing security.
44 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Growth Shares VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 99.0%
Basic Materials - 3.0%
Chemicals (Specialty) - 3.0%
88,287 Minerals Technologies, Inc. $ 4,061,202
------------
Total Basic Materials $ 4,061,202
------------
Capital Goods - 10.7%
Electrical Equipment - 4.0%
152,980 Molex, Inc. $ 5,354,300
------------
Manufacturing (Specialized) - 6.7%
171,400 Sealed Air Corp.* $ 8,977,075
------------
Total Capital Goods $ 14,331,375
------------
Communication Services - 1.8%
Cellular/Wireless Telecommunications - 1.8%
65,700 Crown Castle International Corp.* $ 2,398,050
------------
Total Communication Services $ 2,398,050
------------
Consumer Cyclicals - 13.2%
Leisure Time (Products) - 1.0%
35,400 Harley-Davidson, Inc. $ 1,362,900
------------
Retail (Discounters) - 6.4%
437,843 Dollar General Corp. $ 8,537,939
------------
Publishing (Newspapers) - 2.8%
70,200 News Corporation Ltd. (A.D.R.) $ 3,825,900
------------
Services (Commercial & Consumer) - 3.0%
109,500 Cintas Corp. $ 4,017,281
------------
Total Consumer Cyclicals $ 17,744,020
------------
Consumer Staples - 30.4%
Beverages (Non-Alcoholic) - 0.8%
20,172 The Coca-Cola Co. $ 1,158,629
------------
Broadcasting (Television/Radio/Cable) - 12.2%
96,400 Comcast Corp (Non-voting)* $ 3,904,200
234,700 Infinity Broadcasting Corp.* 8,551,881
58,600 MediaOne Group, Inc.* 3,886,264
------------
$ 16,342,345
------------
Foods - 4.7%
78,888 Wrigley (Wm.) Jr. Co. $ 6,325,832
------------
Personal Care - 3.2%
121,964 The Gillette Co. $ 4,261,117
------------
Restaurants - 4.0%
163,052 McDonald's Corp. $ 5,370,525
------------
Retail (Drug Stores) - 5.5%
229,014 Walgreen Co. $ 7,371,389
------------
Total Consumer Staples $ 40,829,837
------------
Financial - 12.8%
Insurance (Multi-Line) - 1.7%
19,720 American International Group, Inc. $ 2,317,100
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Insurance (Property/Casualty) - 11.1%
114 Berkshire Hathaway, Inc. (Class A)* $ 6,133,200
1,298 Berkshire Hathaway, Inc. (Class B)* 2,284,480
87,610 Progressive Corp. 6,483,140
------------
$ 14,900,820
------------
Total Financial $ 17,217,920
------------
Healthcare - 10.0%
Biotechnology - 3.8%
99,731 Pharmacia Corp. $ 5,154,846
------------
Healthcare (Drugs/Major Pharmaceuticals) - 6.2%
40,216 Merck & Co., Inc. $ 3,081,551
110,118 Pfizer, Inc. 5,285,664
------------
$ 8,367,215
------------
Total Healthcare $ 13,522,061
------------
Technology - 17.1%
Communications Equipment - 4.5%
144,400 American Tower Corp.* $ 6,019,675
------------
Computers (Hardware) - 0.7%
10,000 Sun Microsystems, Inc.* $ 909,375
------------
Computers (Peripherals) - 2.2%
38,600 EMC Corp.* $ 2,969,786
------------
Computers (Software & Services) - 3.1%
28,924 Microsoft Corp.* $ 2,313,920
22,800 Oracle Corp.* 1,916,625
------------
$ 4,230,545
------------
Electronics (Semiconductors) - 5.9%
86,400 Linear Technology Corp. $ 5,524,200
34,500 Maxim Integrated Products Inc.* 2,343,845
------------
$ 7,868,045
------------
Services (Data Processing) - 0.7%
21,000 Paychex Inc. $ 882,000
------------
Total Technology $ 22,879,426
------------
TOTAL COMMON STOCKS
(Cost $125,289,873) $132,983,891
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 1.0%
Commercial Paper - 1.0%
$1,365,000 Household Finance Corp., 6.88%, 7/3/00 $ 1,365,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,365,000) $ 1,365,000
------------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $126,654,873) $134,348,891
============
</TABLE>
* Non-income producing security.
The accompanying notes are an integral part of these financial statements. 45
<PAGE>
Pioneer Real Estate Growth VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 100.0%
Real Estate Investment Trusts - 95.9%
52,800 Archstone Communities Trust $ 1,112,100
29,400 AvalonBay Communities, Inc. 1,227,450
23,200 Boston Properties, Inc. 896,100
31,200 Brandywine Realty Trust 596,700
25,500 Burnham Pacific Property, Inc. 175,313
26,600 Camden Property Trust 781,375
18,100 Catellus Development Corp.* 271,500
5,100 Centerpoint Properties Corp. 207,825
19,900 Charles E. Smith Residential Realty, Inc. 756,200
2,400 Corporate Office Properties Trust 22,050
30,300 Cousins Properties, Inc. 1,166,550
33,900 Developers Diversified Realty Corp. 506,381
53,500 Duke-Weeks Realty Corp. 1,197,063
20,000 Entertainment Properties Trust 276,250
68,757 Equity Office Properties Trust 1,895,115
23,500 Equity Residential Property Trust 1,081,000
25,400 Essex Property Trust, Inc. 1,066,800
29,600 Franchise Finance Corporation of America 680,800
29,100 Gables Residential Trust 749,325
9,700 General Growth Properties, Inc. 307,975
32,100 Home Properties of New York, Inc. 963,000
64,290 Host Marriott Corp. 602,719
3,800 Kimco Realty Corp. 155,800
24,500 Liberty Property Trust 635,469
50,100 The Macerich Co. 1,105,331
18,300 Manufactured Home Communities Inc. 438,056
32,100 Mission West Properties Inc. 337,050
16,300 Pacific Gulf Properties, Inc. 408,519
18,500 Parkway Properties, Inc. 564,250
8,300 Philips International Realty Corp. 144,213
43,400 Prentiss Properties Trust 1,041,600
37,700 ProLogis Trust 803,481
37,000 Public Storage, Inc. 867,188
1,615 Public Storage, Inc. (Depositary Shares) 33,511
54,300 Reckson Associates Realty Corp. 1,289,625
25,800 Simon Property Group, Inc. 572,438
16,700 Spieker Properties, Inc. 768,200
39,400 Starwood Hotels & Resorts Trust 1,282,963
23,700 Vornado Realty Trust 823,572
-----------
Total Real Estate Investment Trusts $27,810,857
-----------
Real Estate Services - 4.1%
66,400 Trizec Hahn Corp. $ 1,186,900
-----------
Total Real Estate Services $ 1,186,900
-----------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $27,092,890) $28,997,757
===========
</TABLE>
* Non-income producing security.
46 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Fund VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 99.7%
Basic Materials - 2.4%
Aluminum - 0.6%
42,200 Alcoa, Inc. $ 1,223,800
------------
Chemicals - 0.7%
27,354 E.I. du Pont de Nemours & Co. $ 1,196,738
8,000 Rohm & Haas Co. 276,000
------------
$ 1,472,738
------------
Gold & Precious Metals Mining - 0.4%
36,600 Newmont Mining Corp. $ 791,475
------------
Iron & Steel - 0.0%
2,300 Nucor Corp. $ 76,331
------------
Metals Mining - 0.6%
25,000 Phelps Dodge Corp. $ 929,688
29,000 Rio Tinto Plc 473,856
------------
$ 1,403,544
------------
Paper & Forest Products - 0.1%
5,400 Weyerhaeuser Co. $ 232,200
------------
Total Basic Materials $ 5,200,088
------------
Capital Goods - 3.3%
Aerospace Defense - 1.0%
15,600 Boeing Co. $ 652,275
8,800 General Dynamics Corp. 459,800
46,000 Lockheed Martin Corp. 1,141,375
------------
$ 2,253,450
------------
Electrical Equipment - 0.7%
14,000 Emerson Electric Co. $ 845,250
11,100 General Electric Co. 588,300
------------
$ 1,433,550
------------
Machinery (Diversified) - 0.6%
22,200 Deere & Co. $ 821,400
10,200 Ingersoll-Rand Co. 410,550
------------
$ 1,231,950
------------
Manufacturing (Specialized) - 0.6%
7,300 Diebold, Inc. $ 203,488
10,500 Illinois Tool Works, Inc. 598,500
9,200 Johnson Controls, Inc. 472,075
------------
$ 1,274,063
------------
Office Equipment & Supplies - 0.4%
18,600 Canon Inc. (A.D.R.) $ 936,975
------------
Total Capital Goods $ 7,129,988
------------
Communication Services - 11.6%
Cellular/Wireless Telecommunications - 1.3%
5,000 AT&T Wireless Group* $ 139,375
44,800 Sprint Corp. (PCS)* 2,665,600
------------
$ 2,804,975
------------
Telecommunications (Long Distance) - 1.4%
58,500 Sprint Corp. $ 2,983,500
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Telephone - 8.9%
14,123 Alltel Corp. $ 874,743
50,300 Bell Atlantic Corp. 2,555,869
82,600 BellSouth Corp. 3,520,825
40,400 GTE Corp. 2,514,900
127,476 SBC Communications, Inc. 5,513,337
51,200 U.S. West Communications Group, Inc. 4,390,400
------------
$ 19,370,074
------------
Total Communication Services $ 25,158,549
------------
Consumer Cyclicals - 12.2%
Auto Parts & Equipment - 0.1%
8,773 Visteon Corp.* $ 106,367
------------
Automobiles - 1.3%
67,000 Ford Motor Co. $ 2,881,000
------------
Household Furnishings & Appliances - 0.9%
21,000 Sony Corp. (A.D.R.) $ 1,980,563
------------
Publishing - 2.1%
101,000 John Wiley & Sons, Inc. $ 2,272,500
42,600 McGraw-Hill Co., Inc. 2,300,400
------------
$ 4,572,900
------------
Publishing (Newspapers) - 1.5%
19,900 Central Newspapers, Inc. $ 1,258,675
13,300 Dow Jones & Co., Inc. 974,225
15,000 Gannett Co., Inc. 897,188
------------
$ 3,130,088
------------
Retail (Computers & Electronics) - 0.1%
2,200 Best Buy Co., Inc.* $ 139,150
1,000 Circuit City Stores 33,188
------------
$ 172,338
------------
Retail (Department Stores) - 1.6%
14,800 Harcourt General, Inc. $ 804,750
34,000 Kohl's Corp.* 1,891,250
34,400 May Department Stores Co. 825,600
------------
$ 3,521,600
------------
Retail (Discounters) - 0.6%
66,718 Dollar General Corp. $ 1,301,001
------------
Retail (General Merchandise) - 1.8%
38,400 Target Corp. $ 2,227,200
30,300 Wal-Mart Stores, Inc. 1,746,038
------------
$ 3,973,238
------------
Retail (Specialty) - 0.1%
13,000 Barnes & Noble, Inc.* $ 289,250
------------
Retail (Specialty-Apparel) - 0.5%
33,300 Gap Inc. $ 1,040,622
------------
Services (Advertising/Marketing) - 1.6%
28,000 The Interpublic Group of Companies, Inc. $ 1,204,000
25,100 Omnicom Group 2,235,469
------------
$ 3,439,469
------------
Total Consumer Cyclicals $ 26,408,436
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 47
<PAGE>
Pioneer Fund VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Consumer Staples - 11.6%
Beverages (Non-Alcoholic) - 0.8%
37,900 PepsiCo, Inc. $ 1,684,181
------------
Broadcasting (Television/Radio/Cable) - 0.6%
6,800 Cox Communication, Inc.* $ 309,825
16,000 MediaOne Group, Inc.* 1,061,096
------------
$ 1,370,921
------------
Distributors (Food & Health) - 0.5%
25,800 Sysco Corp. $ 1,086,825
------------
Entertainment - 1.4%
44,919 Viacom, Inc. (Class B) (Non-voting)* $ 3,062,914
------------
Foods - 4.0%
46,200 BestFoods $ 3,199,350
29,700 Campbell Soup Co. 865,013
28,600 General Mills, Inc. 1,093,950
31,200 H.J. Heinz Co. 1,365,000
22,000 Hershey Foods Corp. 1,067,000
18,000 Ralston-Ralston Purina Group 358,875
34,000 Sara Lee Corp. 656,625
------------
$ 8,605,813
------------
Household Products (Non-Durables) - 1.5%
38,500 Colgate-Palmolive Co. $ 2,305,188
18,000 Procter & Gamble Co. 1,030,500
------------
$ 3,335,688
------------
Restaurants - 0.3%
19,100 McDonald's Corp. $ 629,106
------------
Retail (Drug Stores) - 1.6%
19,400 CVS Corp. $ 776,000
81,300 Walgreen Co. 2,616,844
------------
$ 3,392,844
------------
Retail Stores (Food Chains) - 0.2%
8,800 Safeway Inc.* $ 397,100
------------
Services (Employment) - 0.7%
58,200 Robert Half International Inc.* $ 1,658,700
------------
Total Consumer Staples $ 25,224,092
------------
Energy - 6.1%
Oil (Domestic Integrated) - 0.5%
18,000 Conoco, Inc. (Class A) $ 396,000
21,950 Conoco, Inc. (Class B) 539,147
------------
$ 935,147
------------
Oil (International Integrated) - 4.6%
48,464 BP Amoco Plc (A.D.R.) $ 2,741,245
31,900 Chevron Corp. 2,705,519
22,700 Texaco, Inc. 1,208,775
42,834 Exxon Mobil Corp. 3,362,469
------------
$ 10,018,008
------------
Oil & Gas (Drilling & Equipment) - 1.0%
14,100 Schlumberger Ltd. $ 1,052,213
10,000 Smith International, Inc.* 728,125
7,929 Transocean Offshore Inc. 423,705
------------
$ 2,204,043
------------
Total Energy $ 13,157,198
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Financial - 15.1%
Banks (Major Regional) - 5.0%
64,100 The Bank of New York Co., Inc. $ 2,980,650
18,750 Comerica, Inc. 841,406
16,265 Fleet Boston Financial Corp. 553,010
14,500 Huntington Bancshares, Inc. 229,281
53,700 Mellon Bank Corp. 1,956,694
81,000 National City Corp. 1,382,063
22,500 State Street Corp. 2,386,406
15,000 Wells Fargo Co. 581,250
------------
$ 10,910,760
------------
Banks (Regional) - 0.5%
25,500 First Tennessee National Corp. $ 422,344
15,400 Zions Bancorporation 706,715
------------
$ 1,129,059
------------
Financial (Diversified) - 1.7%
59,800 Axa Financial, Inc. $ 2,033,200
19,400 Morgan Stanley, Dean Witter and Co. 1,615,050
------------
$ 3,648,250
------------
Insurance (Multi-Line) - 1.2%
16,487 American International Group, Inc. $ 1,937,222
14,100 ReliaStar Financial Corp. 739,369
------------
$ 2,676,591
------------
Insurance (Property/Casualty) - 2.0%
33,000 Chubb Corp. $ 2,029,500
16,400 Exel Ltd. 887,650
9,400 Partnerre Ltd. 333,112
20,900 Safeco Corp. 415,388
17,400 St. Paul Companies, Inc. 593,775
------------
$ 4,259,425
------------
Insurance Brokers - 1.0%
21,150 Marsh & McLennan Co., Inc. $ 2,208,853
------------
Investment Management - 3.5%
17,500 Federated Investors Inc. $ 613,594
17,200 Merrill Lynch & Co., Inc. 1,978,000
51,700 Paine Webber Group Inc. 2,352,350
59,500 T. Rowe Price Associates, Inc. 2,528,750
------------
$ 7,472,694
------------
Savings & Loan Companies - 0.2%
12,524 Washington Mutual, Inc. $ 361,631
------------
Total Financial $ 32,667,263
------------
Healthcare - 11.6%
Healthcare (Diversified) - 3.4%
38,700 Abbott Laboratories $ 1,724,569
49,500 Bristol-Myers Squibb Co. 2,883,375
27,200 Johnson & Johnson 2,771,000
------------
$ 7,378,944
------------
Healthcare (Drugs/Major Pharmaceuticals) - 7.7%
21,400 Eli Lilly & Co. $ 2,137,325
32,400 Merck & Co., Inc. 2,482,650
32,100 Pfizer, Inc. 1,540,800
10,600 Roche Holding AG (A.D.R.) 1,031,181
</TABLE>
48 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Fund VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare (Drugs/Major Pharmaceuticals) -
(continued)
142,700 Schering-Plough Corp. $ 7,206,350
34,600 SmithKline Beecham Plc (A.D.R.) 2,255,488
------------
$ 16,653,794
------------
Healthcare (Medical Products/Supplies) - 0.5%
41,200 Becton, Dickinson & Co. $ 1,181,925
------------
Total Healthcare $ 25,214,663
------------
Technology - 22.7%
Communications Equipment - 3.1%
15,000 ADC Telecommunications, Inc.* $ 1,258,125
32,800 Lucent Technologies, Inc.* 1,943,400
118,800 Motorola Inc. 3,452,625
2,000 Tellabs, Inc.* 136,875
------------
$ 6,791,025
------------
Computers (Hardware) - 5.3%
91,000 Compaq Computer Corp. $ 2,326,187
31,700 Hewlett-Packard Co. 3,958,538
46,800 IBM Corp. 5,127,525
------------
$ 11,412,250
------------
Computers (Networking) - 0.9%
26,000 3COM Corp.* $ 1,498,250
10,100 Lycos, Inc.* 545,400
------------
$ 2,043,650
------------
Computers (Software & Services) - 3.1%
12,100 Adobe Systems, Inc. $ 1,573,000
13,850 BMC Software, Inc.* 505,309
39,300 Microsoft Corp.* 3,144,000
16,500 Peoplesoft Inc.* 276,375
35,300 Synopsys, Inc.* 1,220,056
------------
$ 6,718,740
------------
Electronics (Component Distributors) - 0.6%
25,500 Koninklijke Philips Electronics NV $ 1,211,250
------------
Electronics (Instrumentation) - 6.3%
12,090 Agilent Technologies Inc.* $ 891,664
21,400 Altera Corp.* 2,181,463
40,100 Intel Corp. 5,360,869
76,800 Texas Instruments, Inc. 5,275,200
------------
$ 13,709,196
------------
Equipment (Semiconductors) - 0.8%
15,800 Applied Materials, Inc.* $ 1,431,875
3,500 Novellus Systems, Inc.* 197,969
------------
$ 1,629,844
------------
Photography/Imaging - 0.5%
19,600 Eastman Kodak Co. $ 1,166,200
------------
Services (Computer Systems) - 0.8%
23,000 Computer Sciences Corp.* $ 1,717,813
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Services (Data Processing) - 1.3%
25,600 Automatic Data Processing, Inc. $ 1,371,200
8,200 DST Systems, Inc.* 624,225
12,600 Electronic Data Systems Corp. 519,750
10,500 Fiserv, Inc.* 454,125
------------
$ 2,969,300
------------
Total Technology $ 49,369,268
------------
Transportation - 1.9%
Airlines - 0.8%
11,500 Delta Air Lines, Inc. $ 581,469
52,200 Southwest Airlines Co. 988,537
------------
$ 1,570,006
------------
Railroads - 1.1%
30,400 Burlington Northern, Inc. $ 697,300
80,700 Norfolk Southern Corp. 1,200,413
14,700 Union Pacific Corp. 546,656
------------
$ 2,444,369
------------
Total Transportation $ 4,014,375
------------
Utilities - 1.2%
Electric Companies - 0.8%
34,100 Allegheny Energy, Inc. $ 933,488
35,100 DPL, Inc. 770,004
------------
$ 1,703,492
------------
Natural Gas - 0.2%
23,500 Vectren Corp. $ 405,375
------------
Water Utilities - 0.2%
18,700 American Water Works Co., Inc. $ 467,500
------------
Total Utilities $ 2,576,367
------------
TOTAL COMMON STOCKS
(Cost $186,964,388) $216,120,287
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 0.3%
Commercial Paper - 0.3%
$ 685,000 Household Finance Corp., 6.88%, 7/3/00 $ 685,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $685,000) $ 685,000
------------
TOTAL INVESTMENTS IN SECURITIES - 100.0%
(Cost $187,649,388) $216,805,287
============
</TABLE>
* Non-income producing security.
The accompanying notes are an integral part of these financial statements. 49
<PAGE>
Pioneer Equity-Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
CONVERTIBLE CORPORATE BOND - 0.1%
$ 200,000 Commscope, Inc., 4.0%, 12/15/06 (144A) $ 215,962
------------
TOTAL CONVERTIBLE CORPORATE BOND
(Cost $200,000) $ 215,962
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS - 1.9%
27,000 Cox Communications, Inc.,
7.0%, 8/16/02 $ 1,658,812
15,300 Union Pacific Capital, Inc., 6.25%, 4/1/28 632,395
27,000 Union Pacific Capital, Inc., 6.25%, 4/1/28
(144A) 1,115,991
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $3,262,350) $ 3,407,198
-----------
COMMON STOCKS - 98.0%
Basic Materials - 2.6%
Chemicals - 1.1%
45,441 E.I. du Pont de Nemours & Co. $ 1,988,044
-----------
Iron & Steel - 0.4%
15,450 Roanoke Electric Steel Corp. $ 193,125
50,000 Worthington Industries, Inc. 525,000
-----------
$ 718,125
-----------
Metals Mining - 1.1%
50,400 Phelps Dodge Corp. $ 1,874,250
-----------
Total Basic Materials $ 4,580,419
-----------
Capital Goods - 2.8%
Aerospace/Defense - 0.3%
8,500 General Dynamics Corp. $ 444,125
-----------
Machinery (Diversified) - 0.1%
7,000 The Gorman-Rupp Co. $ 110,250
-----------
Manufacturing (Specialized) - 0.9%
16,400 Diebold, Inc. $ 457,150
24,000 Johnson Controls, Inc. 1,231,500
-----------
$ 1,688,650
-----------
Trucks & Parts - 1.5%
68,500 PACCAR, Inc. $ 2,718,594
-----------
Total Capital Goods $ 4,961,619
-----------
Communication Services - 16.1%
Telephone - 16.1%
31,944 Alltel Corp. $ 1,978,531
31,100 Bell Atlantic Corp. 1,580,269
92,400 BellSouth Corp. 3,938,550
73,500 GTE Corp. 4,575,375
218,331 SBC Communications, Inc. 9,442,816
84,800 U.S. West Communications Group, Inc. 7,271,600
-----------
Total Communication Services $28,787,141
-----------
Consumer Cyclicals - 6.1%
Auto Parts & Equipment - 1.1%
121,971 Delphi Automotive Systems Corp. $ 1,776,203
14,115 Visteon Corp.* 171,139
-----------
$ 1,947,342
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Automobiles - 2.8%
107,800 Ford Motor Corp. $ 4,635,400
7,000 General Motors Corp. 406,438
------------
$ 5,041,838
------------
Publishing - 1.0%
33,700 McGraw-Hill Co., Inc. $ 1,819,800
------------
Publishing (Newspapers) - 0.1%
5,000 Tribune Co. $ 175,000
------------
Retail (Deptartment Stores) - 0.5%
32,825 May Department Stores Co. $ 787,799
------------
Services (Advertising/Marketing) - 0.6%
25,200 The Interpublic Group of Companies, Inc. $ 1,083,600
------------
Total Consumer Cyclicals $ 10,855,379
------------
Consumer Staples - 11.0%
Beverages (Non-Alcoholic) - 0.7%
26,800 PepsiCo, Inc. $ 1,190,925
------------
Entertainment - 1.2%
114,200 Cedar Fair, L.P. $ 2,198,350
------------
Foods - 7.6%
96,200 BestFoods $ 6,661,850
42,800 Campbell Soup Co. 1,246,550
64,000 General Mills, Inc. 2,448,000
58,000 H.J. Heinz Co. 2,537,500
10,000 The Quaker Oats Co. 751,250
------------
$ 13,645,150
------------
Household Products (Non-Durables) - 1.3%
38,000 Colgate-Palmolive Co. $ 2,275,250
------------
Personal Care - 0.2%
10,000 The Gillette Co. $ 349,375
------------
Total Consumer Staples $ 19,659,050
------------
Energy - 6.6%
Oil (Domestic Integrated) - 0.4%
32,919 Conoco Inc. (Class B) $ 808,573
------------
Oil (International Integrated) - 6.2%
59,000 Chevron Corp. $ 5,003,937
77,983 Exxon Mobil Corp. 6,121,666
------------
$ 11,125,603
------------
Total Energy $ 11,934,176
------------
Financial - 18.1%
Banks (Major Regional) - 4.7%
13,000 Comerica, Inc. $ 583,375
24,910 Fleet Boston Financial Corp. 846,940
84,400 Mellon Bank Corp. 3,075,325
84,500 National City Corp. 1,441,781
88,176 Old Kent Financial Corp. 2,358,704
------------
$ 8,306,125
------------
Banks (Regional) - 2.7%
180,600 First Security Corp. $ 2,449,388
58,700 First Tennessee National Corp. 972,219
65,400 SouthTrust Corp. 1,479,674
------------
$ 4,901,281
------------
</TABLE>
50 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Equity-Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Insurance (Life/Health) - 1.0%
32,200 ReliaStar Financial Corp. $ 1,688,488
------------
Insurance (Property/Casualty) - 2.9%
39,000 Chubb Corp. $ 2,398,500
35,500 HSB Group Inc. 1,104,938
51,200 St. Paul Companies, Inc. 1,747,200
------------
$ 5,250,638
------------
Investment Management - 6.1%
40,500 A.G. Edwards, Inc. $ 1,579,500
81,200 Alliance Capital Management L.P. 3,851,925
8,000 Eaton Vance Corp. 370,000
42,300 Paine Webber Group Inc. 1,924,650
75,000 T. Rowe Price Associates, Inc. 3,187,500
------------
$ 10,913,575
------------
Savings & Loan Companies - 0.7%
43,900 Washington Mutual, Inc. $ 1,267,612
------------
Total Financial $ 32,327,719
------------
Healthcare - 12.0%
Healthcare (Diversified) - 4.7%
77,300 Abbott Laboratories $ 3,444,681
45,800 Bristol-Myers Squibb Co. 2,667,850
23,500 Johnson & Johnson 2,394,063
------------
$ 8,506,594
------------
Healthcare (Drugs/Major Pharmaceuticals) - 6.6%
41,900 Merck & Co., Inc. $ 3,210,588
170,400 Schering-Plough Corp. 8,605,200
------------
$ 11,815,788
------------
Healthcare (Medical Products/Supplies) - 0.7%
42,000 Becton, Dickinson & Co. $ 1,204,874
------------
Total Healthcare $ 21,527,256
------------
Technology - 6.2%
Communications Equipment - 1.0%
60,000 Motorola Inc. $ 1,743,750
------------
Computers (Hardware) - 3.1%
29,600 Hewlett-Packard Co. $ 3,696,300
17,000 IBM Corp. 1,862,563
------------
$ 5,558,863
------------
Electronics (Instrumentation) - 0.5%
11,289 Agilent Technologies Inc.* $ 832,596
------------
Photography/Imaging - 1.6%
49,100 Eastman Kodak Co. $ 2,921,450
------------
Total Technology $ 11,056,659
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Transportation - 0.8%
Railroads - 0.8%
25,700 Burlington Northern, Inc. $ 589,494
66,200 Norfolk Southern Corp. 984,725
------------
Total Transportation $ 1,574,219
------------
Utilities - 15.7%
Electric Companies - 10.1%
73,000 Allegheny Energy, Inc. $ 1,998,375
53,000 American Electric Power Co., Inc. 1,570,125
136,000 Constellation Energy Group 4,428,500
80,300 DPL, Inc. 1,761,581
40,000 DQE, Inc. 1,580,000
50,000 Duke Energy Corp. 2,818,750
12,500 FPL Group, Inc. 618,750
62,000 Kansas City Power & Light Co. 1,395,000
50,000 NSTAR 2,034,375
------------
$ 18,205,456
------------
Natural Gas - 4.9%
14,000 Buckeye Partners, L.P. $ 375,375
99,600 KeySpan Energy Corp. 3,062,700
18,475 Kinder Morgan Energy Partners L.P. 737,845
15,000 Lakehead Pipe Line Partners, L.P.
(Preferred Units) 600,938
49,200 Nicor, Inc. 1,605,150
94,600 Questar Corp. 1,832,875
33,200 Vectren Corp. 572,700
------------
$ 8,787,583
------------
Power Producers (Independent) - 0.2%
25,000 Consol Energy Inc. $ 378,125
------------
Water Utilities - 0.5%
32,000 American Water Works Co., Inc. $ 800,000
------------
Total Utilities $ 28,171,164
------------
TOTAL COMMON STOCKS
(Cost $154,196,887) $175,434,801
------------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $157,659,237) $179,057,961
============
</TABLE>
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At June 30, 2000, the
value of these securities amounted to $1,331,953 or 0.7% of total net
assets.
The accompanying notes are an integral part of these financial statements. 51
<PAGE>
Pioneer Balanced VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 59.5%
Basic Materials - 1.2%
Aluminum - 0.6%
12,544 Alcoa, Inc. $ 363,776
-----------
Chemicals - 0.3%
6,100 Rohm & Haas Co. $ 210,450
-----------
Paper & Forest Products - 0.3%
4,300 Weyerhaeuser Co. $ 184,900
-----------
Total Basic Materials $ 759,126
-----------
Capital Goods - 3.5%
Aerospace/Defense - 0.7%
8,100 General Dynamics Corp. $ 423,225
-----------
Engineering & Construction - 0.4%
7,100 Fluor Corp. $ 224,538
-----------
Machinery (Diversified) - 0.6%
9,900 Ingersoll-Rand Co. $ 398,475
-----------
Manufacturing (Diversified) - 1.8%
8,425 Honeywell International, Inc. $ 283,817
11,600 Tyco International Ltd. 549,550
5,700 United Technologies Corp. 335,588
-----------
$ 1,168,955
-----------
Total Capital Goods $ 2,215,193
-----------
Communication Services - 4.7%
Telecommunications (Long Distance) - 1.1%
21,800 AT&T Corp. $ 689,425
-----------
Telephone - 3.6%
5,700 Bell Atlantic Corp. $ 289,631
13,000 BellSouth Corp. 554,125
7,632 SBC Communications, Inc. 330,084
12,400 U.S. West Communications Group, Inc. 1,063,300
-----------
$ 2,237,140
-----------
Total Communication Services $ 2,926,565
-----------
Consumer Cyclicals - 5.6%
Auto Parts & Equipment - 0.1%
5,355 Visteon Corp.* $ 64,931
-----------
Automobiles - 2.8%
40,900 Ford Motor Co. $ 1,758,700
-----------
Homebuilding - 0.3%
7,100 Centex Corp. $ 166,850
-----------
Publishing - 1.1%
13,500 McGraw Hill Co., Inc. $ 729,000
-----------
Retail (Computers & Electronics) - 0.6%
6,100 Best Buy Co., Inc.* $ 385,825
-----------
Retail (General Merchandise) - 0.7%
13,200 Sears Roebuck & Co. $ 430,650
-----------
Total Consumer Cyclicals $ 3,535,956
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Consumer Staples - 5.6%
Distributors (Food & Health) - 1.8%
13,000 SUPERVALU, Inc. $ 247,813
21,000 Sysco Corp. 884,625
-----------
$ 1,132,438
-----------
Entertainment - 0.7%
11,600 The Walt Disney Co., Inc. $ 450,225
-----------
Foods - 1.0%
5,400 H.J. Heinz Co., Inc. $ 236,250
5,400 The Quaker Oats Co. 405,675
-----------
$ 641,925
-----------
Household Products (Non-Durables) - 0.4%
5,000 Kimberly Clark Corp. $ 286,875
-----------
Restaurants - 1.0%
36,600 Darden Restaurants, Inc. $ 594,750
-----------
Specialty Printing - 0.7%
8,800 Deluxe Corp. $ 207,350
10,000 R.R. Donnelley & Sons Co., Inc. 225,625
-----------
$ 432,975
-----------
Total Consumer Staples $ 3,539,188
-----------
Energy - 4.5%
Oil (International Integrated) - 3.8%
4,800 Chevron Corp. $ 407,100
8,600 Exxon Mobil Corp. 675,100
16,000 Royal Dutch Petroleum Co. 985,000
5,700 Texaco Inc. 303,525
-----------
$ 2,370,725
-----------
Oil & Gas (Refining & Marketing) - 0.7%
13,000 Ashland, Inc. $ 455,812
-----------
Total Energy $ 2,826,537
-----------
Financial - 8.0%
Banks (Major Regional) - 1.2%
16,500 Banc One Corp. $ 438,281
8,800 Fleet Boston Financial Corp. 299,200
-----------
$ 737,481
-----------
Banks (Money Center) - 1.9%
14,700 BankAmerica Corp. $ 632,100
11,000 First Union Corp. 272,937
2,800 J.P. Morgan & Co., Inc. 308,350
-----------
$ 1,213,387
-----------
Financial (Diversified) - 1.7%
11,600 American General Corp. $ 707,600
7,400 Federal National Mortgage Association 386,187
-----------
$ 1,093,787
-----------
Insurance (Life/Health) - 1.4%
15,410 Aegon NV (A.D.R.) $ 548,981
8,100 Lincoln National Corp. 292,613
-----------
$ 841,594
-----------
</TABLE>
52 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Balanced VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Insurance (Multi-Line) - 1.4%
9,600 Cigna Corp. $ 897,600
-----------
Insurance (Property/Casualty) - 0.4%
10,600 Safeco Corp. $ 210,675
-----------
Total Financial $ 4,994,524
-----------
Healthcare - 7.1%
Biotechnology - 1.1%
13,699 Pharmacia Corp. $ 708,067
-----------
Healthcare (Diversified) - 0.7%
6,200 Allergan Inc. $ 461,900
-----------
Healthcare (Drugs/Major Pharmaceuticals) - 1.5%
4,100 Eli Lilly & Co. $ 409,488
10,450 Pfizer Inc. 501,600
-----------
$ 911,088
-----------
Healthcare (Hospital Management) - 1.6%
33,600 Columbia/HCA Healthcare Corp. $ 1,020,600
-----------
Healthcare (Managed Care) - 2.2%
16,100 United Healthcare Corp. $ 1,380,575
-----------
Total Healthcare $ 4,482,230
-----------
Technology - 18.3%
Communications Equipment - 1.4%
6,900 Lucent Technologies, Inc. $ 408,825
15,000 Motorola, Inc. 435,938
-----------
$ 844,763
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Computers (Hardware) - 4.6%
16,200 Compaq Computer Corp. $ 414,112
12,800 Hewlett-Packard Co. 1,598,400
8,300 IBM Corp. 909,369
-----------
$ 2,921,881
-----------
Computers (Peripherals) - 2.9%
23,800 EMC Corp.* $ 1,831,112
-----------
Electronics (Component Distributors) - 0.9%
9,600 Avnet Inc. $ 568,800
-----------
Electronics (Instrumentation) - 0.6%
4,896 Agilent Technologies Inc.* $ 361,105
-----------
Electronics (Semiconductors) - 6.7%
17,700 Intel Corp. $ 2,366,268
26,900 Texas Instruments, Inc. 1,847,694
-----------
$ 4,213,962
-----------
Equipment (Semiconductors) - 1.2%
10,400 Teradyne Inc.* $ 764,400
-----------
Total Technology $11,506,023
-----------
Utilities - 1.0%
Electric Companies - 1.0%
6,500 DTE Energy Co. 198,656
10,900 Public Service Enterprise Group, Inc. 377,412
-----------
Total Utilities $ 576,068
-----------
TOTAL COMMON STOCKS
(Cost $33,663,715) $37,361,410
===========
</TABLE>
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
DEBT OBLIGATIONS - 40.5%
Corporate Bonds - 20.2%
Basic Materials - 0.9%
$240,000 CC/Ca AEI Resources, Inc., 11.5%, 12/15/06 (144A) $ 24,000
250,000 B+/B2 Huntsman ICI Chemicals LLC, 10.125%, 7/1/09 251,250
150,000 BB/Ba3 Lyondell Chemical Co., 9.875%, 5/1/07 148,500
135,000 BBB/A3 Phelps Dodge Corp., 7.75%, 1/1/02 134,798
--------
Total Basic Materials $558,548
--------
Capital Goods - 1.6%
125,000 BB/Ba3 Azurix Corp., 10.75%, 2/15/10, (144A) $120,000
150,000 BBB-/Baa3 Lockheed Martin Corp., 6.85%, 5/15/01 149,046
240,000 B+/B2 Metromedia Fiber Network, Inc., 10.0%, 11/15/08 237,600
500,000 BBB/Ba1 Waste Management, Inc., 6.625%, 7/15/02 478,570
--------
Total Capital Goods $985,216
--------
Communication Services - 1.3%
500,000 BBB/Baa2 Comcast Cable Communications Inc., 6.2%, 11/15/08 $450,430
150,000 B/B3 Crown Castle International Inc., 9.0%, 5/15/11 138,000
220,000 B/B2 NEXTLINK Communications Inc., 10.75%, 6/1/09 217,250
--------
Total Communication Services $805,680
--------
</TABLE>
The accompanying notes are an integral part of these financial statements. 53
<PAGE>
Pioneer Balanced VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
Consumer Cyclicals - 1.6%
$ 155,000 BBB/Baa3 Laidlaw Inc., 7.65%, 5/15/06 $ 38,750
1,000,000 BBB-/Baa3 ShopKo Stores, Inc., 6.5%, 8/15/03 955,990
-----------
Total Consumer Cyclicals $ 994,740
-----------
Consumer Staples - 2.4%
500,000 BBB-/Baa2 British Sky Broadcasting, 8.2%, 7/15/09 $ 470,435
225,000 B+/B2 Charter Communications Holdings LLC, 8.25%, 4/1/07 199,125
350,000 B/B2 Echostar DBS Corp., 9.25%, 2/1/06 339,500
125,000 B-/B2 Emmis Communications Corp., 8.125%, 3/15/09 113,750
250,000 B-/B3 Premier Parks Inc., 9.75%, 6/15/07 241,250
200,000 B/B2 Wesco Distribution Inc., 9.125%, 6/1/08 183,000
-----------
Total Consumer Staples $ 1,547,060
-----------
Energy - 3.1%
185,000 BB/Ba2 EOTT Energy Partners L.P., 11.0%, 10/1/09 $ 186,850
500,000 BB-/Ba2 Gulf Canada Resources Ltd., 9.625%, 7/1/05 511,170
300,000 BB-/B2 Pogo Producing, 5.5%, 6/15/06 250,326
225,000 BB-/Ba3 RBF Finance Co., 11.0%, 3/15/06 241,875
240,000 BB+/Ba1 Santa Fe Snyder Corp., 8.05%, 6/15/04 237,583
500,000 BBB/Baa1 Tosco Corp., 9.625%, 3/15/02 515,370
-----------
Total Energy $ 1,943,174
-----------
Financial - 6.2%
250,000 BB+/Baa3 Capital One Financial Corp., 7.125%, 8/1/08 $ 225,250
250,000 BBB-/Baa3 Colonial Realty, L.P., 7.0%, 7/14/07 224,653
425,000 A+/A1 Ford Motor Credit Corp., 9.14%, 12/30/14 434,767
300,000 A/A2 Hartford Financial Services Group, Inc., 6.375%, 11/1/02 291,744
200,000 BBB+/Baa2 Hertz Corp., 7.0%, 7/15/03 196,896
200,000 BBB/Baa3 Mack-Cali Realty Corp., 7.25%, 3/15/09 181,434
220,000 AA-/Aa3 Merrill Lynch & Co., Inc., 6.375%, 9/8/06 206,419
500,000 A+/A1 St. Paul Companies, Inc., 6.38%, 12/15/08 453,290
500,000 BBB/Baa2 Spieker Properties, Inc., 6.875%, 2/1/05 471,695
500,000 A/A2 SunTrust Banks Inc., 6.0%, 2/15/26 460,475
500,000 BBB+/A3 Washington Mutual Capital Inc., 7.25%, 8/15/05 482,290
300,000 AA-/A2 Western National Corp., 7.125%, 2/15/04 294,531
-----------
Total Financial $ 3,923,444
-----------
Healthcare - 0.5%
350,000 BBB-/Ba1 Beckman Instruments, Inc., 7.05%, 6/1/26 $ 327,947
-----------
Total Healthcare $ 327,947
-----------
Technology - 0.3%
175,000 BBB+/Baa1 Sun Microsystems, 7.65%, 8/15/09 $ 173,436
-----------
Total Technology $ 173,436
-----------
Transportation - 0.3%
200,000 BB/Ba2 Northwest Airlines, 8.52%, 4/7/04 $ 186,354
-----------
Total Transportation $ 186,354
-----------
Utilities - 2.0%
300,000 BB/Ba3 CMS Energy Corp., 7.5%, 1/15/09 $ 267,432
350,000 BBB-/Baa3 Great Lakes Power, 8.3%, 3/1/05 345,720
650,000 A/A2 Virginia Electric & Power, 6.75%, 2/1/07 617,708
-----------
Total Utilities $ 1,230,860
-----------
Total Corporate Bonds $12,676,459
-----------
</TABLE>
54 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Balanced VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
U.S. Government Obligations - 6.4%
$1,600,000 U.S. Treasury Bonds, 8.125%, 8/15/19 $ 1,930,544
1,545,000 U.S. Treasury Bonds, 6.125%, 11/15/27 1,540,581
575,000 U.S. Treasury Notes, 5.625%, 5/15/08 554,881
-----------
Total U.S. Government Obligations $ 4,026,006
-----------
U.S. Government Agency Obligations - 13.9%
468,540 Federal Home Loan Mortgage Corp., REMIC Series 1487F, 6.0%, 11/15/20 $ 460,509
1,000,000 Federal Home Loan Mortgage Corp., REMIC Series 1541G, 6.75%, 11/15/21 977,170
473,747 Government National Mortgage Association, 6.5%, 10/15/28 449,558
1,306,709 Government National Mortgage Association, 7.0%, 12/15/28 1,270,945
979,350 Government National Mortgage Association, 7.0%, 7/15/29 952,545
904,440 Government National Mortgage Association II, 7.0%, 2/20/29 876,294
567,305 Government National Mortgage Association II, 7.5%, 7/15/29 563,475
478,926 Government National Mortgage Association II, 7.5%, 8/20/29 473,600
436,995 Government National Mortgage Association II, 7.5%, 9/20/29 432,136
898,710 Government National Mortgage Association II, 8.0%, 4/15/30 908,874
430,039 Government National Mortgage Association, REMIC Series 1998-24A, 6.0%, 11/20/24 417,185
1,000,000 Government National Mortgage Association, REMIC Series 98-13B, 6.5%, 12/20/25 927,290
-----------
Total U.S. Government Agency Obligations $ 8,709,581
-----------
TOTAL DEBT OBLIGATIONS
(Cost $26,666,371) $25,412,046
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $60,330,086) $62,773,456
===========
</TABLE>
* 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 June 30, 2000, the
value of these securities amounted to $144,000 or 0.2% of total net assets.
The accompanying notes are an integral part of these financial statements. 55
<PAGE>
Pioneer High Yield VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P/Moody's
Shares Ratings Value
<S> <C> <C> <C>
CONVERTIBLE PREFERRED STOCK - 2.6%
7,000 BBB-/Baa1 Semco Energy, Inc., 11.0%, 8/16/03 $ 73,063
----------
TOTAL CONVERTIBLE PREFERRED STOCK
(Cost $70,000) $ 73,063
----------
<CAPTION>
Principal
Amount
<S> <C> <C> <C>
CONVERTIBLE CORPORATE BONDS - 59.1%
Capital Goods - 3.3%
Waste Management - 3.3%
$ 100,000 BBB-/Ba3 Waste Management, Inc., 4.0%, 2/1/02 $ 92,090
----------
Total Capital Goods $ 92,090
----------
Consumer Cyclicals - 7.9%
Auto Parts & Equipment - 2.7%
100,000 B+/B1 MascoTech Inc., 4.5%, 12/15/03 $ 75,500
----------
Services (Advertising/Marketing) - 5.2%
175,000 B-/B2 Getty Images Inc., 5.0%, 3/15/07 (144A) $ 145,142
----------
Total Consumer Cyclicals $ 220,642
----------
Energy - 12.5%
Oil & Gas (Drilling & Equipment) - 8.0%
100,000 NR/Caa1 Key Energy Group, 5.0%, 9/15/04 $ 78,948
100,000 B-/B3 Parker Drilling Co., 5.5%, 8/1/04 82,875
100,000 A/A3 Transocean Sedco Forex Inc., 0%, 5/24/20 59,463
----------
$ 221,286
----------
Oil & Gas (Production/Exploration) - 4.5%
150,000 BB-/B2 Pogo Producing Co., 5.5%, 6/15/06 $ 125,163
----------
Total Energy $ 346,449
----------
Healthcare - 2.9%
Biotechnology - 2.9%
100,000 NR/NR Human Genome Sciences, Inc., 3.75%, 3/15/07 (144A) $ 81,281
----------
Total Healthcare $ 81,281
----------
Technology - 32.5%
Computers (Networking) - 8.4%
75,000 B-/B3 At Home Corp., 4.75%, 12/15/06 $ 53,804
100,000 B-/B3 At Home Corp., 4.75%, 12/15/06 (144A) 71,739
150,000 CCC/Caa Digital Island Inc., 6.0%, 2/15/05 107,030
----------
$ 232,573
----------
Computers (Peripherals) - 5.6%
200,000 B+/B2 Quantum Corp., 7.0%, 8/1/04 $ 155,500
----------
Computers (Software & Services) - 7.9%
100,000 B-/NR Aspen Technology, Inc., 5.25%, 6/15/05 $ 96,986
150,000 NR/NR Critical Path Inc., 5.75%, 4/1/05 (144A) 122,812
----------
$ 219,798
----------
Electronics (Component Distributors) - 2.3%
75,000 NR/B1 Adaptec Inc., 4.75%, 2/1/04 $ 63,535
----------
</TABLE>
56 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer High Yield VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
Electronics (Semiconductors) - 8.3%
$150,000 CCC+/NR Cirrus Logic Inc., 6.0%, 12/15/03 $ 134,068
100,000 NR/NR Cypress Semiconductor, 3.75%, 7/1/05 95,804
----------
$ 229,872
----------
Total Technology $ 901,278
----------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $1,568,518) $1,641,740
----------
CORPORATE BONDS - 38.3%
Capital Goods - 8.8%
Electrical Equipment - 3.6%
100,000 B/B2 Hadco Corp., 9.5%, 6/15/08 $ 100,500
----------
Waste Management - 5.2%
150,000 BB/Ba3 Azurix Corp., 10.75%, 2/15/10 (144A) $ 144,000
----------
Total Capital Goods $ 244,500
----------
Consumer Services - 2.5%
Telecommunications (Long Distance) - 2.5%
100,000 NR/NR SBA Communications Corp., 12.0%, 3/1/08 $ 70,500
----------
Total Consumer Services $ 70,500
----------
Consumer Cyclicals - 10.8%
Auto Parts & Equipment - 5.7%
100,000 BB/Ba2 Federal Mogul Corp., 7.5%, 1/15/09 $ 66,500
100,000 BB+/Ba1 Lear Corp., 7.96%, 5/15/05 93,442
----------
$ 159,942
----------
Building Materials - 5.1%
150,000 B/B2 NCI Building Systems, Inc., 9.25%, 5/1/09 $ 141,000
----------
Total Consumer Cyclicals $ 300,942
----------
Consumer Staples - 6.8%
Distributors (Food & Health) - 3.3%
100,000 B/B2 Wesco Distribution Inc., 9.125%, 6/1/08 $ 91,500
----------
Household Products - 3.5%
100,000 B/B2 Playtex Family Products Corp., 9.0%, 12/15/03 $ 97,000
----------
Total Consumer Staples $ 188,500
----------
Financial - 7.5%
Financial (Diversified) - 7.5%
135,000 BB-/Ba3 Forest City Enterprises, Inc., 8.5%, 3/15/08 $ 122,175
100,000 B-/NR BF Saul Real Estate Investment Trust, 9.75%, 4/1/08 86,000
----------
Total Financial $ 208,175
----------
Healthcare - 1.9%
Healthcare (Medical Products/Supplies) - 1.9%
50,000 B/B2 Bio-Rad Labs Inc., 11.625%, 2/15/07 $ 51,500
----------
Total Healthcare $ 51,500
----------
TOTAL CORPORATE BONDS
(Cost $1,073,490) $1,064,117
----------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $2,712,008) $2,778,920
==========
</TABLE>
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At June 30, 2000, the
value of these securities amounted to $564,974 or 20.7% of total net
assets.
The accompanying notes are an integral part of these financial statements. 57
<PAGE>
Pioneer Strategic Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount S&P/Moody's
USD($) Ratings Value
<S> <C> <C> <C>
CONVERTIBLE CORPORATE BONDS - 8.6%
30,000 NR/B1 Adaptec Inc., 4.75%, 2/1/04 $ 25,414
30,000 NR/Caa1 Key Energy Group, 5.0%, 9/15/04 23,684
45,000 B+/B1 Mascotech, Inc., 4.5%, 12/15/03 33,975
40,000 BB-/B2 Pogo Producing Co., 5.5%, 6/15/06 33,377
53,000 B+/B2 Quantum Corp., 7.0%, 8/1/04 41,207
10,000 BBB/Baa3 Thermo Electron Corp., 4.25%, 1/1/03 (144A) 9,187
20,000 BB/NR TVX Gold Inc., 5.0%, 3/28/02 14,800
40,000 BBB-/Ba3 Waste Management Inc., 4.0%, 2/1/02 36,836
----------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $222,917) $ 218,480
----------
ASSET BACKED SECURITIES - 4.4%
DKK 198,000 AA-/Aa3 Nykredit, 6.0%, 10/1/29 $ 23,208
DKK 607,000 AA-/Aa3 Nykredit, 7.0%, 10/1/32 74,370
DKK 125,000 AA-/Aa3 RealKredit Danmark, 7.0%, 10/1/32 15,315
----------
TOTAL ASSET BACKED SECURITIES
(Cost $120,698) $ 112,893
----------
CORPORATE BONDS - 53.7%
Basic Materials - 2.6%
Chemicals - 0.6%
25,000 BB/Ba3 Lyondell Petrochemical Co., 9.875%, 5/1/07 $ 24,750
----------
Chemicals (Diversified) - 1.0%
EURO 15,000 B+/B2 Huntsman ICI Chemicals LLC, 10.125%, 7/1/09 $ 14,822
----------
Metal Mining - 0.4%
10,000 CCC/B3 Alatief Freeport Financial, 9.75%, 4/15/01 $ 9,250
----------
Paper & Forest Products - 0.6%
25,000 CCC+/B3 APP China Group, 14.0%, 3/15/10 $ 15,750
----------
Total Basic Materials $ 64,572
----------
Capital Goods - 5.4%
Electrical Equipment - 1.4%
35,000 B/B2 Hadco Corp., 9.5%, 6/15/08 $ 35,175
----------
Engineering & Construction - 1.3%
35,000 B+/B2 Metromedia Fiber Network, Inc., 10.0%, 11/15/08 $ 34,650
----------
Machinery (Diversified) - 1.2%
30,000 A+/A2 Deere & Co., 7.85%, 5/15/10 $ 30,081
----------
Waste Management - 1.5%
40,000 BB/Ba3 Azurix Corp., 10.75%, 2/15/10 (144A) $ 38,400
----------
Total Capital Goods $ 138,306
----------
Communication Services - 6.7%
Cellular/Wireless Communications - 2.2%
35,000 B/B3 Crown Castle International Corp., 9.0%, 5/15/11 $ 32,200
25,000 B/B2 NEXTLINK Communications, Inc., 10.75%, 6/1/09 24,688
----------
$ 56,888
----------
Telecommunications (Long Distance) - 1.8%
EURO 24,000 BB/Ba1 KPNQwest NV, 7.125%, 6/1/09 $ 21,252
35,000 NR/NR SBA Communications, 12.0%, 3/1/08 24,675
----------
$ 45,927
----------
</TABLE>
58 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Strategic Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount S&P/Moody's
USD($) Ratings Value
<S> <C> <C> <C>
Telephone - 2.7%
35,000 B+/B1 McLeodUSA Inc., 9.25%, 7/15/07 $ 33,775
35,000 B/B2 Williams Communication Group, 10.875%, 10/1/09 34,125
----------
$ 67,900
----------
Total Communication Services $ 170,715
----------
Consumer Cyclicals - 7.2%
Auto Parts & Equipment - 1.8%
25,000 BB+/Ba2 Federal Mogul Co., 7.5%, 1/15/09 $ 16,625
30,000 BB+/Ba1 Lear Corp., 7.96%, 5/15/05 28,033
----------
$ 44,658
----------
Building Materials - 2.0%
30,000 B/B2 NCI Building Systems, Inc., 9.25%, 5/1/09 $ 28,200
25,000 B+/B1 Nortek Inc., 9.125%, 9/1/07 23,188
----------
$ 51,388
----------
Hardware & Tools - 0.6%
15,000 B+/B2 Scott's Corp., 8.625%, 1/15/09 (144A) $ 14,250
----------
Homebuilding - 1.2%
35,000 BB+/Ba2 Toll Corp., 8.125%, 2/1/09 $ 31,500
----------
Retail (Specialty) - 1.1%
30,000 B+/B1 Grupo Elektra SA, 12.0%, 4/1/08 (144A) $ 27,075
----------
Textiles (Apparel) - 0.5%
15,000 BBB-/Baa2 Jones Apparel Group, Inc., 7.875%, 6/15/06 $ 14,595
----------
Total Consumer Cyclicals $ 183,466
----------
Consumer Staples - 7.1%
Broadcasting (Television/Radio/Cable) - 3.2%
20,000 B+/B1 Adelphia Communications, 7.875%, 5/1/09 $ 16,800
35,000 B+/B2 Charter Communications Holdings LLC, 8.25%, 4/1/07 30,975
35,000 B/B2 Echostar DBS Communications Corp., 9.25%, 2/1/06 33,950
----------
$ 81,725
----------
Distributors (Food & Health) - 2.0%
30,000 B-/B3 Fisher Scientific International Inc., 9.0%, 2/1/08 $ 27,825
25,000 B/B2 Wesco Distribution Inc., 9.125%, 6/1/08 22,875
----------
$ 50,700
----------
Entertainment - 0.9%
25,000 B-/B3 Premier Parks, Inc., 9.75%, 6/15/07 $ 24,125
----------
Household Products (Non-Durables) - 1.0%
25,000 B/B2 Playtex Family Products, Inc., 9.0%, 12/15/03 $ 24,250
----------
Total Consumer Staples $ 180,800
----------
Energy - 7.5%
Oil & Gas (Drilling & Equipment) - 2.2%
30,000 B+/B1 Parker Drilling Co., 9.75%, 11/15/06 $ 28,950
25,000 BB-/Ba3 RBF Finance Co., 11.0%, 3/15/06 26,875
----------
$ 55,825
----------
Oil & Gas (Production & Exploration) - 5.3%
30,000 BB/Ba2 EOTT Energy Partners LP, 11.0%, 10/1/09 $ 30,300
25,000 BB-/Ba2 Gulf Canada Resources Ltd., 9.625%, 7/1/05 25,559
25,000 B/B2 HS Resources Inc., 9.25%, 11/15/06 24,375
35,000 B+/B1 Nuevo Energy Co., 9.5%, 6/1/08 34,475
</TABLE>
The accompanying notes are an integral part of these financial statements. 59
<PAGE>
Pioneer Strategic Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount S&P/Moody's
USD($) Ratings Value
<S> <C> <C> <C>
Oil & Gas (Production & Exploration) - (continued)
20,000 B-/B2 Pemex Finance Ltd., 9.69%, 8/15/09 $ 20,760
----------
$ 135,469
----------
Total Energy $ 191,294
----------
Financial - 7.5%
Banks (Major Regional) - 1.5%
20,000 A/A1 Bank of Ireland, 6.45%, 2/10/10 $ 18,960
20,000 A-/A1 HSBC Capital Funding, 8.03%, 12/29/49 (144A) 19,401
----------
$ 38,361
----------
Banks (Money Center) - 1.1%
15,000 A+/A1 Dresdner Funding Trust, 8.151%, 6/30/31 (144A) $ 13,068
15,000 NR/Aaa Skandinaviska Enskilda Bank, 8.125%, 9/6/49 (144A) 14,335
----------
$ 27,403
----------
Consumer Finance - 1.2%
35,000 BB-/B1 Ford Motor Credit Co., 5.8%, 1/12/09 $ 30,551
----------
Financial (Diversified) - 3.7%
30,000 B-/NR BF Saul Real Estate Investment Trust, 9.75%, 4/1/08 $ 25,800
15,000 BBB-/Baa3 Colonial Realty L.P., 7.0%, 7/14/07 13,479
31,000 BB-/Ba3 Forest City Enterprises, 8.5%, 3/15/08 28,055
30,000 BBB/Baa3 Mack-Cali Realty Corp., 7.25%, 3/15/09 27,215
----------
$ 94,549
----------
Total Financial $ 190,864
----------
Healthcare - 3.8%
Healthcare (Diversified) - 0.6%
15,000 B/B3 King Pharmaceutical Inc., 10.75%, 2/15/09 $ 15,525
----------
Healthcare (Hospital Management) - 1.2%
35,000 BB+/Ba2 Columbia/HCA Healthcare Corp., 7.25%, 5/20/08 $ 31,218
----------
Healthcare (Medical Products/Supplies) - 2.0%
15,000 BB+/Ba1 Beckman Instruments, 7.05%, 6/1/26 $ 14,055
35,000 B/B2 Bio-Rad Labs, Inc., 11.625%, 2/15/07 36,050
----------
$ 50,105
----------
Total Healthcare $ 96,848
----------
Technology - 3.6%
Communications (Equipment) - 1.0%
30,000 B/B2 L-3 Communication Holdings Corp., 8.5%, 5/15/08 $ 27,600
----------
Computers (Hardware) - 1.4%
35,000 BBB+/Baa1 Sun Microsystems Inc., 7.65%, 8/15/09 $ 34,687
----------
Electronics (Semiconductors) - 1.2%
30,000 B/B3 Fairchild Semiconductor, 10.375%, 10/1/07 $ 30,300
----------
Total Technology $ 92,587
----------
Transportation - 1.3%
Airlines - 1.3%
25,000 BB/Ba2 Northwest Airlines Inc., 8.52%, 4/7/04 $ 23,294
----------
Total Transportation $ 23,294
----------
Utilities - 1.2%
Electric Companies - 0.6%
15,000 BBB-/Baa3 Great Lakes Power Inc., 8.3%, 3/1/05 $ 14,817
----------
</TABLE>
60 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Strategic Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount S&P/Moody's
USD($) Ratings Value
<S> <C> <C> <C>
Power Producers (Independent) - 0.6%
25,000 BB-/Ba3 AES China Generating Co., 10.125%, 12/15/06 $ 15,562
----------
Total Utilities $ 30,379
----------
TOTAL CORPORATE BONDS
(Cost $1,385,426) $1,363,125
----------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 16.9%
49,284 AAA/Aaa Federal National Mortgage Association, 7.0%, 9/1/29 $ 47,561
25,000 AAA/Aaa Federal National Mortgage Association, 7.5%, 6/1/30 24,638
44,350 AAA/Aaa Government National Mortgage Association, 7.75%, 10/15/26 44,472
24,889 AAA/Aaa Government National Mortgage Association, 7.5%,10/15/29 24,721
54,859 AAA/Aaa Government National Mortgage Association, 7.5%, 11/15/29 54,488
39,847 AAA/Aaa Government National Mortgage Association, 8.0%, 1/15/30 40,297
44,440 AAA/Aaa Government National Mortgage Association, 7.5%, 2/15/30 44,140
49,645 AAA/Aaa Government National Mortgage Association, 8.0%, 3/15/30 50,206
30,000 U.S. Treasury Bonds, 7.875%, 2/15/21 35,635
35,000 U.S. Treasury Notes, 6.25%, 10/31/01 34,898
29,000 U.S. Treasury Notes, 5.625%, 5/15/08 27,985
----------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $426,401) $ 429,041
----------
FOREIGN GOVERNMENT BONDS - 14.7%
110,000 AAA/Aaa Government of France, 3.0%, 7/25/09 $ 99,187
90,000 BB/Ba3 Republic of Argentina, 9.75%, 9/19/27 70,200
75,000 B+/B2 Republic of Brazil, 14.5%, 10/15/09 80,250
25,000 BBB-/Baa3 Republic of Trinidad & Tobago, 9.75%, 7/1/20 (144A) 24,403
30,000 B/B1 Republic of Turkey, 12.375%, 6/15/09 31,800
135,000 BB/Ba1 United Mexican States, 8.25%, 2/24/09 66,462
----------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $377,398) $ 372,302
----------
SUPRANATIONAL BOND - 1.7%
NZD 100,000 AAA/Aaa International Finance Corp., 6.75%, 7/15/09 $ 44,424
----------
TOTAL SUPRANATIONAL BOND
(Cost $47,317) $ 44,424
----------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $2,580,157) $2,540,265
==========
</TABLE>
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At June 30, 2000, the
value of these securities amounted to $160,119 or 6.2% of total net assets.
Note: Principal amounts are denominated in U.S. dollars unless otherwise
denoted.
DKK Danish kroner.
EURO Euro dollar.
NZD New Zealand dollar.
The accompanying notes are an integral part of these financial statements. 61
<PAGE>
Pioneer Swiss Franc Bond VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
Austria - 1.7%
CHF 1,000,000 NR/NR Autobahn Schnell AG, 3.0%, 11/12/01 $ 604,714
-----------
Belgium - 1.7%
1,000,000 NR/NR Societe Nationale Credit a d'Investissement, 7.25%, 10/2/00 $ 619,885
-----------
Canada - 16.2%
3,000,000 AA-/Aa3 GMAC Canada Ltd., 3.75%, 1/16/01 $ 1,837,497
2,000,000 NR/NR Montreal Urban Commission, 5.25%, 6/9/03 1,256,628
2,000,000 AA-/Aa3 Province of Ontario, 6.25%, 1/27/03 1,285,438
1,260,000 NR/A2 Province of Saskatchewan, 7.0%, 8/17/00 775,533
1,200,000 A+/A2 Quebec Province, 3.5%, 9/17/08 679,315
-----------
$ 5,834,411
-----------
Denmark - 6.6%
600,000 NR/Aa1 Great Belt AS, 4.25%, 9/24/04 $ 369,816
1,340,000 AA+/Aa1 Kingdom of Denmark, 0%, 2/17/02 772,532
2,000,000 NR/NR Oresundsfoerbind, 4.375%, 12/1/03 1,236,093
-----------
$ 2,378,441
-----------
France - 11.8%
1,800,000 AAA/Aaa Caisse National d'Autoroutes, 3.375%, 2/27/08 $ 1,037,454
800,000 AAA/Aaa Reseau Ferre de France, 3.25%, 9/12/08 454,102
1,300,000 NR/NR Rhone-Alpes, 6.375%, 11/25/02 833,543
3,000,000 NR/NR Societe Nationale des Chemins de Fer Francais, 5.25%, 2/24/05 1,921,721
-----------
$ 4,246,820
-----------
Germany - 10.3%
2,000,000 NR/Aa3 Bayerische Vereinsbank, 4.25%, 2/21/07 $ 1,196,555
2,000,000 NR/A1 Commerzbank AG, 7.0%, 7/25/01 1,262,329
2,200,000 AAA/Aaa Frankfurter Hypothekenbank Centralboden AG, 3.125%, 4/29/08 1,250,130
-----------
$ 3,709,014
-----------
Ireland - 2.2%
1,300,000 AA+/Aaa Republic of Ireland, 6.5%, 1/15/01 $ 807,246
-----------
Italy - 3.1%
2,315,000 AA/Aa3 Republic of Italy, 0%, 12/11/05 $ 1,136,320
-----------
Netherlands - 11.4%
2,000,000 NR/NR Alliance BV, 3.0%, 8/26/05 $ 1,166,518
1,400,000 NR/A1 BMW Finance NV, 5.0%, 4/21/13 865,694
1,400,000 AA+/Aa1 Deutsche Finance BV, 3.5%, 2/19/03 843,596
2,000,000 NR/Aaa Helaba Finance, 3.75%, 12/28/00 1,226,101
-----------
$ 4,101,909
-----------
New Zealand - 5.1%
3,000,000 AA+/Aa2 Transpower Finance Ltd., 4.25%, 6/10/04 $ 1,835,290
-----------
Norway - 3.7%
2,165,000 AA/Aa2 Statoil, 4.125%, 9/20/01 $ 1,328,847
-----------
Sweden - 5.0%
3,000,000 NR/Aa3 AB Spintab, 3.25%, 1/24/02 $ 1,816,900
-----------
</TABLE>
62 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Swiss Franc Bond VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
United States - 21.2%
CHF 2,500,000 NR/A1 Citibank Credit Card Master Trust, 3.5%, 11/25/02 $ 1,502,590
2,000,000 A+/A1 DaimlerChrysler NA Holdings, Inc., 3.125%, 9/25/02 1,197,781
2,000,000 NR/A1 J.P. Morgan & Co., 2.0%, 12/27/01 1,190,425
2,200,000 AA-/Aa3 Merrill Lynch & Co., 3.0%, 4/8/02 1,323,628
1,000,000 AA+/Aa2 Nationwide Financial Services Corp., 3.0%, 8/18/04 585,098
2,000,000 NR/NR Sony Capital Corp., 3.128%, 12/27/00 1,223,036
1,000,000 AAA/Aa1 Toyota Motor Credit Corp., 4.5%, 9/29/00 614,154
-----------
$ 7,636,712
-----------
TOTAL DEBT OBLIGATIONS
(Cost $42,969,509) $36,056,509
-----------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $42,969,509) $36,056,509
===========
</TABLE>
CHF Swiss franc.
The accompanying notes are an integral part of these financial statements. 63
<PAGE>
Pioneer America Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
U.S GOVERNMENT AND AGENCY OBLIGATIONS - 100.0%
$ 350,000 Federal Farm Credit Bank, Medium Term Note, 6.78%, 12/12/07 $ 337,635
250,000 Federal Home Loan Bank, 7.01%, 1/13/04 247,450
300,000 Federal Home Loan Bank, 7.08%, 11/5/04 297,228
177,171 Federal Home Loan Mortgage Corp., 7.0%, 9/1/27 171,452
450,586 Federal Home Loan Mortgage Corp., 6.5%, 3/1/29 425,119
99,833 Federal Home Loan Mortgage Corp., REMIC Series G031K, 6.5%, 10/25/14 97,837
500,000 Federal Home Loan Mortgage Corp., REMIC Series 1541G, 6.75%, 11/15/21 488,585
660,400 Federal Home Loan Mortgage Corp., REMIC Series 2043DB, 6.5%, 1/15/25 627,004
500,000 Federal Home Loan Mortgage Corp., REMIC Series 2106K, 6.0%, 4/15/25 445,895
125,000 Federal National Mortgage Association, 6.8%, 1/10/03 124,633
849,891 Federal National Mortgage Association, 6.5%, 11/1/28 801,320
840,581 Federal National Mortgage Association, 6.0%, 12/1/28 769,014
325,000 Federal National Mortgage Association, 7.5%, 6/1/30 320,297
300,000 Federal National Mortgage Association, Medium Term Note, 6.84%, 7/17/07 290,970
500,000 Federal National Mortgage Association, REMIC Series 1998-47DA, 6.5%, 5/18/26 451,150
481,491 Government National Mortgage Association, 6.5%, 3/15/26 to 8/15/28 457,333
3,535,767 Government National Mortgage Association, 7.0%, 12/15/25 to 7/15/29 3,440,190
837,930 Government National Mortgage Association, 8.0%, 2/15/08 to 12/15/29 846,454
2,150,461 Government National Mortgage Association, 7.5%, 10/15/22 to 6/15/30 2,136,315
452,526 Government National Mortgage Association I, 6.5%, 8/15/28 429,420
499,652 Government National Mortgage Association I, 8.0%, 5/15/30 505,303
904,440 Government National Mortgage Association II, 7.0%, 2/20/29 876,294
1,500,740 Government National Mortgage Association II, 7.5%, 8/20/27 to 8/20/29 1,484,228
1,304,541 Government National Mortgage Association II, 8.0%, 8/20/25 to 6/20/30 1,313,613
500,000 Government National Mortgage Association, REMIC Series 1998-21VB, 6.5%, 10/20/11 476,375
425,265 Government National Mortgage Association, REMIC Series 1998-24A, 6.5%, 11/20/24 412,554
50,000 Private Export Funding, 7.3%, 1/31/02 50,432
500,000 Private Export Funding, 6.9%, 1/31/03 497,910
250,000 Tennessee Valley Authority, 6.375%, 6/15/05 244,068
300,000 Tennessee Valley Authority, 6.75%, 6/1/28 260,250
2,100,000 U.S. Treasury Bonds, 7.25%, 5/15/16 2,311,281
1,320,000 U.S. Treasury Bonds, 6.25%, 8/15/23 1,327,999
625,000 U.S. Treasury Notes, 6.375%, 9/30/01 624,119
500,000 U.S. Treasury Notes, 7.25%, 5/15/04 515,695
700,000 U.S. Treasury Notes, 7.0%, 7/15/06 725,648
-----------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $25,661,488) $24,831,070
-----------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $25,661,488) $24,831,070
===========
</TABLE>
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.
64 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Money Market VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
COMMERCIAL PAPER - 92.7% $ 1,260,666
$ 1,270,000 American Express Credit Corp., 6.1%, 8/14/00 1,409,455
1,423,000 American General Corp., 6.59%, 8/22/00 1,353,768
1,360,000 Associated Corp., 6.11%, 7/28/00 1,111,511
1,125,000 AT&T Corp., 6.54%, 9/5/00 1,066,212
1,075,000 Citicorp Inc., 6.54%, 8/15/00 1,496,474
1,500,000 The Coca Cola Co., 6.51%, 7/14/00 1,039,121
1,040,000 Deere (John) Capital Corp., 6.08%, 7/6/00 998,982
1,000,000 Dupont (E.I.) De Nemours & Co., 6.11%, 7/7/00 1,560,327
1,572,000 Exxon Project Inv Corp., 6.52%, 8/11/00 927,436
944,000 Ford Motor Credit Corp., 6.58%, 10/5/00 1,485,287
1,500,000 General Electric Capital Corp., 6.42%, 8/25/00 1,114,867
1,120,000 General Motors Acceptance Corp., 6.6%, 7/26/00 1,150,477
1,157,000 Household Finance Corp., 6.15%, 8/3/00 1,246,989
1,250,000 IBM Corp., 6.67%, 7/14/00 1,595,255
1,600,000 Minnesota Mining & Manufacturing Co., 6.28%, 7/18/00 1,475,873
1,500,000 Mortorola Inc., 6.58%, 9/27/00 157,102
158,000 National Rural Utilities Cooperative Finance Corp., 6.2%, 8/3/00 1,387,069
1,400,000 National Rural Utilities Cooperative Finance Corp., 6.52%, 8/21/00 1,038,946
1,040,000 Norwest Financial Inc., 6.08%, 7/7/00 748,506
750,000 Pacific Gas & Electric Co., 6.52%, 7/12/00 1,319,853
1,325,000 Prudential Funding Corp., 6.08%, 7/24/00 1,123,293
1,125,000 SBC Communications Inc., 6.07%, 7/10/00 1,683,105
1,690,000 Southern California Edison Co., 6.12%, 7/25/00 1,616,614
1,620,000 Virginia Electric & Power Co., 6.27%, 7/13/00 1,022,922
1,030,000 Wal-Mart Stores Inc., 6.51%, 8/8/00 -----------
Total Commmercial Paper $30,390,110
REPURCHASE AGREEMENT - 7.3% -----------
2,400,000 First Boston Corp., 6.5%, dated 6/30/00, repurchase price of price of $2,400,000
plus accrued interest on 7/3/00, collateralized by $2,464,000 U.S. Treasury Notes,
5.125%, 5/31/01 $ 2,400,000
-----------
Total Repurchase Agreement $ 2,400,000
TOTAL INVESTMENT IN SECURITIES - 100.0% -----------
$32,790,110
===========
</TABLE>
The accompanying notes are an integral part of these financial statements. 65
<PAGE>
Pioneer Emerging Markets VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00
Class I (unaudited)
<S> <C>
Net asset value, beginning of period $ 18.75
-------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.04)
Net realized and unrealized gain (loss) on investments and foreign currency transactions (1.39)
-------
Net increase (decrease) from investment operations $ (1.43)
Distributions to shareholders:
Net realized gain (0.33)
-------
Net increase (decrease) in net asset value $ (1.76)
-------
Net asset value, end of period $ 16.99
=======
Total return* (7.61)%
Ratio of net expenses to average net assets 1.77%**+
Ratio of net investment income (loss) to average net assets (0.44)%**+
Portfolio turnover rate 135%**
Net assets, end of period (in thousands) $19,305
Ratios assuming no waiver of management fees and assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 1.98%**
Net investment loss ( 0.65)%**
Ratios assuming waiver of management fees and assumption of expenses by PIM and reduction
for fees paid indirectly:
Net expenses 1.75%**
Net investment loss (0.42)%**
<CAPTION>
Year 10/30/98
Ended to
Class I 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 income (loss) $(0.03) $ 0.00(b)
Net realized and unrealized gain (loss) on investments and foreign currency transactions 8.29 0.49
------ --------
Net increase (decrease) from investment operations $ 8.26 $ 0.49
Distributions to shareholders:
Net realized gain - -
------ --------
Net increase (decrease) 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 income (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>
Pioneer Europe VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00
Class I (unaudited)(a)
<S> <C>
Net asset value, beginning of period $ 13.61
-------
Increase (decrease) from investment operations:
Net investment income $ 0.01
Net realized and unrealized gain (loss) on investments and foreign currency transactions (0.29)
-------
Net increase (decrease) from investment operations $ (0.28)
Distributions to shareholders:
Net investment income (0.02)
Net realized gain (0.01)
-------
Net increase (decrease) in net asset value $ (0.31)
-------
Net asset value, end of period $ 13.30
=======
Total return* (2.04)%
Ratio of net expenses to average net assets 1.49%**+
Ratio of net investment income to average net assets 0.14%**+
Portfolio turnover rate 43%**
Net assets, end of period (in thousands) $24,887
Ratios assuming no waiver of management fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 1.49%**
Net investment income (loss) 0.14%**
Ratios assuming waiver of management fees and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.47**
Net investment income 0.16**
<CAPTION>
Year 10/30/98
Ended to
Class I 12/31/99 12/31/98
<S> <C> <C>
Net asset value, beginning of period $ 10.60 $ 10.00
------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.05 $ 0.00(b)
Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.97 0.60
------- -------
Net increase (decrease) from investment operations $ 3.02 $ 0.60
Distributions to shareholders:
Net investment income - -
Net realized gain (0.01) -
------- -------
Net increase (decrease) 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 income (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%**
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
(b) Amount rounds to less than one cent per share.
* 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.
66 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Year
6/30/00 Ended Ended
Class I (unaudited) 12/31/99 12/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 15.38 $ 10.79 $ 12.23
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.02 $ 0.07 $ 0.09
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (0.99) 4.67 (0.45)
------- ------- -------
Net increase (decrease) from investment operations $ (0.97) $ 4.74 $ (0.36)
Distributions to shareholders:
Net investment income (0.11) (0.15) (0.19)
In excess of net investment income - - -
Net realized gain - - (0.89)
------- ------- -------
Net increase (decrease) in net asset value $ (1.08) $ 4.59 $ (1.44)
------- ------- -------
Net asset value, end of period $ 14.30 $ 15.38 $ 10.79
======= ======= =======
Total return* (6.32)% 44.38% (3.32)%
Ratio of net expenses to average net assets+ 1.22%** 1.22% 1.44%
Ratio of net investment income (loss) to average net assets+ 0.40%** 0.01% 1.00%
Portfolio turnover rate 55%** 90% 113%
Net assets, end of period (in thousands) $68,603 $69,192 $51,525
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction for fees
paid indirectly:
Net expenses 1.22%** 1.22% 1.47%
Net investment income (loss) 0.40%** 0.01% 0.97%
Ratios assuming waiver of management fees and assumption
of expenses by PIM and reduction for fees paid indirectly:
Net expenses 1.22%** 1.22% 1.43%
Net investment income 0.40%** 0.01% 1.01%
<CAPTION>
Year Year 3/1/95
Ended Ended to
Class I 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C>
Net asset value, beginning of period $ 11.83 $ 10.93 $10.00
------- ------- ------
Increase (decrease) from investment operations:
Net investment income $ 0.06 $ 0.05 $ -
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 0.53 0.88 1.04
------- ------- ------
Net increase (decrease) from investment operations $ 0.59 $ 0.93 $ 1.04
Distributions to shareholders:
Net investment income (0.03) - -
In excess of net investment income - - (0.02)
Net realized gain (0.16) (0.03) (0.09)
------- ------- ------
Net increase (decrease) in net asset value $ 0.40 $ 0.90 $ 0.93
------- ------- ------
Net asset value, end of period $ 12.23 $ 11.83 $10.93
======= ======= ======
Total return* 4.87% 8.54% 10.42%
Ratio of net expenses to average net assets+ 1.49% 1.52% 2.10%**
Ratio of net investment income (loss) to average net assets+ 0.78% 0.78% (0.25%)**
Portfolio turnover rate 133% 115% 139%**
Net assets, end of period (in thousands) $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 1.71% 3.04% 17.22%**
Net investment income (loss) 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 1.48% 1.50% 1.75%**
Net investment income 0.79% 0.80% 0.10%**
</TABLE>
Pioneer Science & Technology VCT Portfolio(a) PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
5/1/00
to
6/30/00
Class I (unaudited)
<S> <C>
Net asset value, beginning of period $10.00
------
Increase from investment operations:
Net investment income $ 0.00(b)
Net realized and unrealized gain on investments 1.69
------
Net increase from investment operations $ 1.69
------
Net increase in net asset value $ 1.69
------
Net asset value, end of period $11.69
======
Total return* 16.90%
Ratio of net expenses to average net assets 1.25%**
Ratio of net investment loss to average net assets (0.12)%**
Portfolio turnover rate 25%**
Net assets, end of period (in thousands) $3,920
Ratios assuming no waiver of management fees and assumption of expenses by PIM:
Net expenses 3.98%**
Net investment loss (2.85)%**
</TABLE>
(a) Shares of Pioneer Science & Technology VCT Portfolio were first publicly
offered on May 1, 2000.
(b) Amount rounds to less than one cent per share.
* 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.
The accompanying notes are an integral part of these financial statements. 67
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Year
6/30/00 Ended Ended
Class I (unaudited) 12/31/99 12/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 16.26 $ 14.49 $ 16.15
-------- -------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.07 $ 0.13 $ 0.12
Net realized and unrealized gain (loss) on investments 0.27 1.77 (0.65)
-------- -------- --------
Net increase (decrease) from investment operations $ 0.34 $ 1.90 $ (0.53)
Distributions to shareholders:
Net investment income (0.13) (0.13) (0.10)
Net realized gain (1.09) - (1.03)
-------- -------- --------
Net increase (decrease) in net asset value $ (0.88) $ 1.77 $ (1.66)
-------- -------- --------
Net asset value, end of period $ 15.38 $ 16.26 $ 14.49
======== ======== ========
Total return* 2.02% 13.13% (4.02)%
Ratio of net expenses to average net assets+ 0.78%** 0.76% 0.74%
Ratio of net investment income to average net assets+ 0.66%** 0.77% 0.90%
Portfolio turnover rate 103%** 91% 81%
Net assets, end of period (in thousands) $107,284 $120,526 $113,359
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction for fees
paid indirectly:
Net expenses 0.78%** 0.76% 0.74%
Net investment income (loss) 0.66%** 0.77% 0.90%
Ratios assuming waiver of management fees and assumption
of expenses by PIM and reduction for fees paid indirectly:
Net expenses 0.78%** 0.76% 0.74%
Net investment income 0.66%** 0.77% 0.90%
<CAPTION>
Year Year 3/1/95
Ended Ended to
Class I 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C>
Net asset value, beginning of period $ 13.05 $ 11.57 $10.00
-------- ------- ------
Increase (decrease) from investment operations:
Net investment income $ 0.12 $ 0.03 $ 0.02
Net realized and unrealized gain (loss) on investments 3.09 1.71 1.69
-------- ------- ------
Net increase (decrease) from investment operations $ 3.21 $ 1.74 $ 1.71
Distributions to shareholders:
Net investment income - (0.03) (0.02)
Net realized gain (0.11) (0.23) (0.12)
-------- ------- ------
Net increase (decrease) in net asset value $ 3.10 $ 1.48 $ 1.57
-------- ------- ------
Net asset value, end of period $ 16.15 $ 13.05 $11.57
======== ======= ======
Total return* $ 24.69% 15.03% 17.13%
Ratio of net expenses to average net assets+ 0.80% 0.93% 1.56%**
Ratio of net investment income to average net assets+ 1.02% 0.37% 0.48%**
Portfolio turnover rate 50% 41% 46%**
Net assets, end of period (in thousands) $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 0.80% 0.95% 3.95%**
Net investment income (loss) 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 0.79% 0.92% 1.49%**
Net investment income 1.03% 0.38% 0.55%**
</TABLE>
Pioneer Growth Shares VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
6/30/00
Class I (unaudited)
<S> <C>
Net asset value, beginning of period $ 21.92
--------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01)
Net realized and unrealized gain (loss) on investments (0.11)
--------
Net increase (decrease) from investment operations $ (0.12)
Distributions to shareholders:
Net investment income -
Net realized gain (1.92)
--------
Net increase (decrease) in net asset value $ (2.04)
--------
Net asset value, end of period $ 19.88
========
Total return* (0.41)%
Ratio of net expenses to average net assets 0.68%**+
Ratio of net investment income (loss) to average net assets (0.11%)**+
Portfolio turnover rate 57%**
Net assets, end of period (in thousands) $134,802
Ratios assuming no waiver of management fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 0.77%**
Net investment loss (0.20%)**
Ratios assuming waiver of management fees and assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 0.68%**
Net investment income (loss) (0.11%)**
<CAPTION>
Year Year
Ended Ended
Class I 12/31/99 12/31/98
<S> <C> <C>
Net asset value, beginning of period $ 20.34 $ 15.34
-------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.02) $ 0.00(a)
Net realized and unrealized gain (loss) on investments 1.64 5.00
-------- -------
Net increase (decrease) from investment operations $ 1.62 $ 5.00
Distributions to shareholders:
Net investment income (0.01) (0.00)(a)
Net realized gain (0.03) -
-------- -------
Net increase (decrease) in net asset value $ 1.58 $ 5.00
-------- -------
Net asset value, end of period $ 21.92 $ 20.34
======== =======
Total return* 7.93% 32.60%
Ratio of net expenses to average net assets 0.76%+ 0.88%+
Ratio of net investment income (loss) to average net assets (0.08%)+ 0.08%+
Portfolio turnover rate 47% 28%
Net assets, end of period (in thousands) $162,730 $85,670
Ratios assuming no waiver of management fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 0.81% 0.97%
Net investment loss (0.13%) (0.01)%
Ratios assuming waiver of management fees and assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 0.76% 0.88%
Net investment income (loss) (0.08%) 0.08%
<CAPTION>
10/31/97
to
Class I 12/31/97
<S> <C>
Net asset value, beginning of period $15.00
------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.01
Net realized and unrealized gain (loss) on investments 0.33
------
Net increase (decrease) from investment operations $ 0.34
Distributions to shareholders:
Net investment income -
Net realized gain -
------
Net increase (decrease) in net asset value $ 0.34
------
Net asset value, end of period $15.34
======
Total return* 2.27%
Ratio of net expenses to average net assets 1.25%**
Ratio of net investment income (loss) to average net assets 0.60%**
Portfolio turnover rate 16%**
Net assets, end of period (in thousands) $4,646
Ratios assuming no waiver of management fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 6.62%**
Net investment loss (4.77%)**
Ratios assuming waiver of management fees and assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.25%**
Net investment income (loss) 0.60%**
</TABLE>
(a) Amount rounds to less than one cent per share.
* 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.
68 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Real Estate Growth VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Year
6/30/00 Ended Ended
Class I (unaudited) 12/31/99 12/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 11.73 $ 13.07 $ 16.90
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.34 $ 0.66 $ 0.60
Net realized and unrealized gain (loss) on investments 1.38 (1.20) (3.72)
------- ------- -------
Net increase (decrease) from investment operations $ 1.72 $ (0.54) $ (3.12)
Distributions to shareholders:
Net investment income (0.34) (0.60) (0.56)
Net realized gain - (0.12) (0.15)
Tax return of capital - (0.08) -
------- ------- -------
Net increase (decrease) in net asset value $ 1.38 $ (1.34) $ (3.83)
------- ------- -------
Net asset value, end of period $ 13.11 $ 11.73 $ 13.07
======= ======= =======
Total return* 14.86% (4.17)% (18.74)%
Ratio of net expenses to average net assets+ 1.14%** 1.15% 1.19%
Ratio of net investment income to average net assets+ 5.43%** 5.07% 4.06%
Portfolio turnover rate 31%** 54% 18%
Net assets, end of period (in thousands) $29,679 $28,318 $35,579
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction for fees
paid indirectly:
Net expenses 1.14%** 1.30% 1.20%
Net investment income (loss) 5.43%** 4.92% 4.05%
Ratios assuming waiver of management fees and assumption
of expenses by PIM and reduction for fees paid indirectly:
Net expenses 1.13%** 1.14% 1.19%
Net investment income 5.44%** 5.08% 4.06%
<CAPTION>
Year Year 3/31/95
Ended Ended to
Class I 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C>
Net asset value, beginning of period $ 14.46 $ 11.23 $ 10.00
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.47 $ 0.54 $ 0.12
Net realized and unrealized gain (loss) on investments 2.54 3.34 1.55
------- ------- -------
Net increase (decrease) from investment operations $ 3.01 $ 3.88 $ 1.67
Distributions to shareholders:
Net investment income (0.45) (0.53) (0.23)
Net realized gain (0.12) (0.12) (0.03)
Tax return of capital - - (0.18)
------- ------- -------
Net increase (decrease) in net asset value $ 2.44 $ 3.23 $ 1.23
------- ------- -------
Net asset value, end of period $ 16.90 $ 14.46 $ 11.23
======= ======= =======
Total return* 21.16% 35.73% 16.96%
Ratio of net expenses to average net assets+ 1.25% 1.34% 2.10%**
Ratio of net investment income to average net assets+ 3.16% 4.63% 2.68%**
Portfolio turnover rate 28% 41% 1%**
Net assets, end of period (in thousands) $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 1.37% 3.35% 45.96%**
Net investment income (loss) 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 1.24% 1.24% 1.57%**
Net investment income 3.17% 4.73% 3.21%**
</TABLE>
Pioneer Fund VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year
6/30/00 Ended
Class I (unaudited) 12/31/99
<S> <C> <C>
Net asset value, beginning of period $ 22.70 $ 19.76
-------- --------
Increase from investment operations:
Net investment income $ 0.10 $ 0.16
Net realized and unrealized gain on investments 0.79 2.97
-------- --------
Net increase from investment operations $ 0.89 $ 3.13
Distributions to shareholders:
Net investment income (0.08) (0.17)
Net realized gain (0.13) (0.02)
-------- --------
Net increase in net asset value $ 0.68 $ 2.94
-------- --------
Net asset value, end of period $ 23.38 $ 22.70
======== ========
Total return* 3.94% 15.91%
Ratio of net expenses to average net assets 0.71%**+ 0.70%+
Ratio of net investment income to average net assets 0.85%**+ 0.82%+
Portfolio turnover rate 21%** 8%
Net assets, end of period (in thousands) $216,445 $204,927
Ratios assuming no waiver of management fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 0.71%** 0.70%
Net investment income (loss) 0.85%** 0.82%
Ratios assuming waiver of management fees and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 0.71%** 0.70%
Net investment income 0.85%** 0.82%
<CAPTION>
Year 10/31/97
Ended to
Class I 12/31/98 12/31/97
<S> <C> <C>
Net asset value, beginning of period $ 15.80 $15.00
------- ------
Increase from investment operations:
Net investment income $ 0.15 $ 0.01
Net realized and unrealized gain on investments 3.96 0.80
------- ------
Net increase from investment operations $ 4.11 $ 0.81
Distributions to shareholders:
Net investment income (0.15) (0.01)
Net realized gain - -
------- ------
Net increase in net asset value $ 3.96 $ 0.80
------- ------
Net asset value, end of period $ 19.76 $15.80
======= ======
Total return* 26.12% 5.43%
Ratio of net expenses to average net assets 0.86%+ 1.25%**
Ratio of net investment income to average net assets 0.97%+ 1.07%**
Portfolio turnover rate 4% -
Net assets, end of period (in thousands) $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 0.87% 5.30%**
Net investment income (loss) 0.96% (2.98%)**
Ratios assuming waiver of management fees and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 0.86% 1.25%**
Net investment income 0.97% 1.07%**
</TABLE>
* 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.
The accompanying notes are an integral part of these financial statements. 69
<PAGE>
Pioneer Equity-Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year
6/30/00 Ended
Class I (unaudited) 12/31/99
<S> <C> <C>
Net asset value, beginning of period $ 20.72 $ 21.44
-------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.26 $ 0.42
Net realized and unrealized gain (loss) on investments (0.29) (0.15)
-------- --------
Net increase (decrease) from investment operations $ (0.03) $ 0.27
Distributions to shareholders:
Net investment income (0.24) (0.41)
Net realized gain (1.74) (0.58)
-------- --------
Net increase (decrease) in net asset value $ (2.01) $ (0.72)
-------- --------
Net asset value, end of period $ 18.71 $ 20.72
======== ========
Total return* (0.26)% 1.21%
Ratio of net expenses to average net assets+ 0.72%** 0.70%
Ratio of net investment income to average net assets+ 2.46%** 1.97%
Portfolio turnover rate 5%** 23%
Net assets, end of period (in thousands) $176,358 $226,379
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction for fees
paid indirectly:
Net expenses 0.72%** 0.70%
Net investment income (loss) 2.46%** 1.97%
Ratios assuming waiver of management fees and assumption
of expenses by PIM and reduction for fees paid indirectly:
Net expenses 0.72%** 0.70%
Net investment income 2.46%** 1.97%
<CAPTION>
Year Year Year 3/1/95
Ended Ended Ended to
Class I 12/31/98 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 18.14 $ 13.73 $ 12.17 $10.00
-------- -------- ------- ------
Increase (decrease) from investment operations:
Net investment income $ 0.39 $ 0.35 $ 0.29 $ 0.19
Net realized and unrealized gain (loss) on investments 3.52 4.44 1.54 2.16
-------- -------- ------- ------
Net increase (decrease) from investment operations $ 3.91 $ 4.79 $ 1.83 $ 2.35
Distributions to shareholders:
Net investment income (0.39) (0.37) (0.27) (0.18)
Net realized gain (0.22) (0.01) - -
-------- -------- ------- ------
Net increase (decrease) in net asset value $ 3.30 $ 4.41 $ 1.56 $ 2.17
-------- -------- ------- ------
Net asset value, end of period $ 21.44 $ 18.14 $ 13.73 $12.17
======== ======== ======= ======
Total return* 21.80% 35.23% 15.19% 23.62%
Ratio of net expenses to average net assets+ 0.71% 0.77% 0.96% 1.63%**
Ratio of net investment income to average net assets+ 2.04% 2.31% 2.67% 2.89%**
Portfolio turnover rate 19% 15% 18% -
Net assets, end of period (in thousands) $203,976 $124,213 $46,871 $6,914
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction for fees
paid indirectly:
Net expenses 0.71% 0.77% 0.98% 5.32%**
Net investment income (loss) 2.04% 2.31% 2.65% (0.80)%**
Ratios assuming waiver of management fees and assumption
of expenses by PIM and reduction for fees paid indirectly:
Net expenses 0.71% 0.77% 0.95% 1.47%**
Net investment income 2.04% 2.31% 2.68% 3.05%**
</TABLE>
Pioneer Balanced VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Year
6/30/00 Ended Ended
Class I (unaudited) 12/31/99 12/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 14.31 $ 14.47 $ 14.99
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.25 $ 0.51 $ 0.42
Net realized and unrealized gain (loss) on investments 0.13 (0.16) 0.00
------- ------- -------
Net increase from investment operations $ 0.38 $ 0.35 $ 0.42
Distributions to shareholders:
Net investment income (0.24) (0.51) (0.42)
Net realized gain - - (0.52)
------- ------- -------
Net increase (decrease) in net asset value $ 0.14 $ (0.16) $ (0.52)
------- ------- -------
Net asset value, end of period $ 14.45 $ 14.31 $ 14.47
======= ======= =======
Total return* 2.66% 2.53% 2.64%
Ratio of net expenses to average net assets+ 0.82%** 0.78% 0.80%
Ratio of net investment income to average net assets+ 3.37%** 3.58% 2.93%
Portfolio turnover rate 20%** 59% 104%
Net assets, end of period (in thousands) $63,532 $72,669 $66,930
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction for fees
paid indirectly:
Net expenses 0.82%** 0.78% 0.80%
Net investment income (loss) 3.37%** 3.58% 2.93%
Ratios assuming waiver of management fees and assumption
of expenses by PIM and reduction for fees paid indirectly:
Net expenses 0.81%** 0.77% 0.80%
Net investment income 3.38%** 3.59% 2.93%
<CAPTION>
Year Year 3/1/95
Ended Ended to
Class I 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C>
Net asset value, beginning of period $ 13.19 $ 11.87 $10.00
------- ------- ------
Increase (decrease) from investment operations:
Net investment income $ 0.36 $ 0.29 $ 0.20
Net realized and unrealized gain (loss) on investments 1.94 1.39 1.87
------- ------- ------
Net increase from investment operations $ 2.30 $ 1.68 $ 2.07
Distributions to shareholders:
Net investment income (0.36) ( 0.29) (0.20)
Net realized gain (0.14) ( 0.07) -
------- ------- ------
Net increase (decrease) in net asset value $ 1.80 $ 1.32 $ 1.87
------- ------- ------
Net asset value, end of period $ 14.99 $ 13.19 $11.87
======= ======= ======
Total return* 17.62% 14.26% 20.84%
Ratio of net expenses to average net assets+ 0.96% 1.20% 1.76%**
Ratio of net investment income to average net assets+ 2.63% 2.83% 2.99%**
Portfolio turnover rate 63% 74% -
Net assets, end of period (in thousands) $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 0.96% 1.58% 14.77%**
Net investment income (loss) 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 0.95% 1.15% 1.45%**
Net investment income 2.64% 2.88% 3.30%**
</TABLE>
* 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.
70 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer High Yield VCT Portfolio(a) PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
5/1/00
to
6/30/00
Class I (unaudited)
<S> <C>
Net asset value, beginning of period $10.00
------
Increase from investment operations:
Net investment income $ 0.14
Net realized and unrealized gain on investments 0.34
------
Net increase from investment operations $ 0.48
Distributions to shareholders:
Net investment income (0.14)
------
Net increase in net asset value $ 0.34
------
Net asset value, end of period $10.34
======
Total return* 4.80%
Ratio of net expenses to average net assets 1.25%**
Ratio of net investment income to average net assets 8.72%**
Portfolio turnover rate 25%**
Net assets, end of period (in thousands) $2,723
Ratios assuming no waiver of management fees and assumption of expenses by PIM:
Net expenses 4.13%**
Net investment income 5.84%**
</TABLE>
Pioneer Strategic Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended 7/29/99
6/30/00 to
Class I (unaudited) 12/31/99
<S> <C> <C>
Net asset value, beginning of period $ 9.75 $10.00
------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.35 $ 0.28
Net realized and unrealized loss on investments and foreign currency transactions (0.25) (0.21)
------ ------
Net increase from investment operations $ 0.10 $ 0.07
Distributions to shareholders:
Net investment income (0.37) (0.28)
Tax return of capital - (0.04)
------ ------
Net decrease in net asset value $(0.27) $(0.25)
------ ------
Net asset value, end of period $ 9.48 $ 9.75
====== ======
Total return* 1.09% 0.70%
Ratio of net expenses to average net assets 1.38%**+ 1.54%**
Ratio of net investment income to average net assets 7.08%**+ 6.46%**
Portfolio turnover rate 73%** 49%**
Net assets, end of period (in thousands) $2,596 $1,244
Ratios assuming no waiver of management fees and assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 3.51%** 8.68%**
Net investment income (loss) 4.95%** (0.68)%**
Ratios assuming waiver of management fees and assumption of expenses by PIM and reduction
for fees paid indirectly:
Net expenses 1.25%** 1.25%**
Net investment income 7.21%** 6.75%**
</TABLE>
(a) Shares of Pioneer High Yield VCT Portfolio were first publicly offered on
May 1, 2000.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 71
<PAGE>
Pioneer Swiss Franc Bond VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Year
6/30/00 Ended Ended
Class I (unaudited) 12/31/99 12/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 11.35 $ 13.22 $ 12.50
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.16 $ 0.38 $ 0.36
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (0.55) (2.18) 0.82
------- ------- -------
Net increase (decrease) from investment operations $ (0.39) $ (1.80) $ 1.18
Distributions to shareholders:
Net investment income - - (0.46)
Tax return of capital - (0.07) -
------- ------- -------
Net increase (decrease) in net asset value $ (0.39) $ (1.87) $ 0.72
------- ------- -------
Net asset value, end of period $ 10.96 $ 11.35 $ 13.22
======= ======= =======
Total return* (3.44)% (13.59)% 9.48%
Ratio of net expenses to average net assets+ 0.93%** 0.88% 0.91%
Ratio of net investment income to average net assets+ 3.08%** 3.33% 3.41%
Portfolio turnover rate 14%** 12% 29%
Net assets, end of period (in thousands) $36,518 $43,668 $41,174
Ratios assuming no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly:
Net expenses 0.93%** 0.88% 0.91%
Net investment income (loss) 3.08%** 3.33% 3.41%
Ratios assuming waiver of management fees and assumption
of expenses by PIM and reduction for fees paid indirectly:
Net expenses 0.92%** 0.87% 0.90%
Net investment income 3.09%** 3.34% 3.42%
<CAPTION>
Year Year 11/1/95
Ended Ended to
Class I 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C>
Net asset value, beginning of period $ 13.42 $ 15.06 $ 15.00
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.30 $ 0.14 $ 0.04
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (1.22) (1.78) 0.02
------- ------- -------
Net increase (decrease) from investment operations $ (0.92) $ (1.64) $ 0.06
Distributions to shareholders:
Net investment income - - -
Tax return of capital - - -
------- ------- -------
Net increase (decrease) in net asset value $ (0.92) $ (1.64) $ 0.06
------- ------- -------
Net asset value, end of period $ 12.50 $ 13.42 $ 15.06
======= ======= =======
Total return* (6.92)% (10.88)% 0.40%
Ratio of net expenses to average net assets+ 1.23% 1.20% 2.25%**
Ratio of net investment income to average net assets+ 3.22% 3.37% 1.70%**
Portfolio turnover rate 17% 39% -
Net assets, end of period (in thousands) $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 1.25% 2.58% 69.22%**
Net investment income (loss) 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 1.22% 1.15% 1.25%**
Net investment income 3.23% 3.42% 2.70%**
</TABLE>
Pioneer America Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Year
6/30/00 Ended Ended
Class I (unaudited) 12/31/99 12/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 9.47 $ 10.29 $ 10.04
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.28 $ 0.56 $ 0.55
Net realized and unrealized gain (loss) on investments 0.10 (0.81) 0.25
------- ------- -------
Net increase (decrease) from investment operations $ 0.38 $ (0.25) $ 0.80
Distributions to shareholders:
Net investment income (0.28) (0.56) (0.55)
Net realized gain - (0.01) -
------- ------- -------
Net increase (decrease) in net asset value $ 0.10 $ (0.82) $ 0.25
------- ------- -------
Net asset value, end of period $ 9.57 $ 9.47 $ 10.29
======= ======= =======
Total return* 4.11% (2.52)% 8.15%
Ratio of net expenses to average net assets+ 0.89%** 0.81% 0.94%
Ratio of net investment income to average net assets+ 5.98%** 5.64% 5.35%
Portfolio turnover rate 50%** 41% 36%
Net assets, end of period (in thousands) $25,210 $29,779 $28,822
Ratios assuming no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly:
Net expenses 0.89%** 0.81% 0.94%
Net investment income (loss) 5.98%** 5.64% 5.35%
Ratios assuming waiver of management fees and assumption
of expenses by PIM and reduction for fees paid indirectly:
Net expenses 0.87%** 0.79% 0.93%
Net investment income 6.00%** 5.66% 5.36%
<CAPTION>
Year Year 3/1/95
Ended Ended to
Class I 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C>
Net asset value, beginning of period $ 9.78 $10.18 $10.00
------- ------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.54 $ 0.52 $ 0.38
Net realized and unrealized gain (loss) on investments 0.26 (0.40) 0.18
------- ------ ------
Net increase (decrease) from investment operations $ 0.80 $ 0.12 $ 0.56
Distributions to shareholders:
Net investment income (0.54) (0.52) (0.38)
Net realized gain - - -
------- ------ ------
Net increase (decrease) in net asset value $ 0.26 $(0.40) $ 0.18
------- ------ ------
Net asset value, end of period $ 10.04 $ 9.78 $10.18
======= ====== ======
Total return* 8.44% 1.30% 5.68%
Ratio of net expenses to average net assets+ 1.26% 1.31% 1.12%**
Ratio of net investment income to average net assets+ 5.46% 5.25% 5.22%**
Portfolio turnover rate 11% 60% 96%**
Net assets, end of period (in thousands) $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 1.43% 2.24% 11.86%**
Net investment income (loss) 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 1.23% 1.25% 0.99%**
Net investment income 5.49% 5.31% 5.35%**
</TABLE>
* 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.
72 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Money Market VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Year
6/30/00 Ended Ended
Class I (unaudited) 12/31/99 12/31/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
------- -------- -------
Increase from investment operations:
Net investment income $ 0.03 $ 0.04 $ 0.05
------- ------- -------
Distributions to shareholders:
Net investment income (0.03) (0.04) (0.05)
------- ------- -------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Total return* 2.68% 4.38% 4.68%
Ratio of net expenses to average net assets+ 0.76%** 0.79% 0.92%
Ratio of net investment income to average net assets+ 5.33%** 4.34% 4.55%
Net assets, end of period (in thousands) $32,028 $37,347 $21,497
Ratios assuming no waiver of fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 0.76%** 0.79% 0.97%
Net investment income (loss) 5.33%** 4.34% 4.50%
Ratios assuming waiver of fees and assumption of expenses
by PIM and reduction for fees paid indirectly:
Net expenses 0.75%** 0.78% 0.92%
Net investment income 5.34%** 4.35% 4.55%
<CAPTION>
Year Year 3/1/95
Ended Ended to
Class I 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
------- ------- ------
Increase from investment operations:
Net investment income $ 0.05 $ 0.04 $ 0.04
------- ------- ------
Distributions to shareholders:
Net investment income (0.05) (0.04) (0.04)
------- ------- ------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
======= ======= ======
Total return* 4.64% 4.51% 4.35%
Ratio of net expenses to average net assets+ 1.00% 0.97% 0.81%**
Ratio of net investment income to average net assets+ 4.55% 4.43% 5.00%**
Net assets, end of period (in thousands) $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 1.17% 1.29% 8.34%**
Net investment income (loss) 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 0.99% 0.96% 0.74%**
Net investment income 4.56% 4.44% 5.07%**
</TABLE>
* 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.
The accompanying notes are an integral part of these financial statements. 73
<PAGE>
Pioneer Variable Contracts Trust PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
BALANCE SHEETS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pioneer Pioneer
Pioneer Pioneer International Science &
Emerging Markets Europe Growth Technology
VCT Portfolio VCT Portfolio VCT Portfolio VCT Portfolio
<S> <C> <C> <C> <C>
ASSETS:
Investment in securities, at value (cost
$21,447,812, $23,102,221, $57,997,316,
$3,374,512, $99,371,449, $125,289,873,
$27,092,890, $186,964,388, $157,659,237,
and $60,330,086, respectively) $19,678,477 $23,799,037 $68,355,872 $3,704,924
Temporary cash investments (at amortized cost) - 1,200,000 - 600,000
Cash - 65,967 - 98,008
Foreign currencies, at value 226,440 17,667 19,780 -
Receivables -
Investment securities sold 207,852 41,784 961,296 18,699
Fund shares sold 15,269 246,152 389,034 39,425
Dividends, interest and foreign taxes withheld 25,960 37,186 150,617 179
Forward foreign currency settlement contracts, net 457 - - -
Due from Pioneer Investment Management, Inc. - - - 4,882
Other 2,678 315 344 -
----------- ----------- ----------- ----------
Total assets $20,157,133 $25,408,108 $69,876,943 $4,466,117
----------- ----------- ----------- ----------
LIABILITIES:
Payables -
Investment securities purchased $ 380,087 $ 468,475 $ - $ 539,610
Fund shares repurchased 115,239 - - 15
Forward foreign currency settlement contracts, net - 1,316 3,427 -
Due to bank 155,581 - 1,168,057 -
Due to affiliates 19,347 27,003 61,571 1,140
Accrued expenses 1,806 22,648 40,406 5,520
Other - 1,644 - -
----------- ----------- ----------- ----------
Total liabilities $ 672,060 $ 521,086 $ 1,273,461 $ 546,285
----------- ----------- ----------- ----------
NET ASSETS:
Paid-in capital $21,633,619 $24,035,441 $61,151,129 $3,535,950
Accumulated net investment income (loss) (42,196) 16,332 146,184 (362)
Accumulated net realized gain (loss) (337,839) 138,393 (3,050,775) 53,832
Net unrealized gain (loss) on:
Investments (1,769,335) 696,816 10,358,556 330,412
Foreign currency transactions 824 40 (1,612) -
----------- ----------- ----------- ----------
Total net assets $19,485,073 $24,887,022 $68,603,482 $3,919,832
=========== ----------- ----------- ==========
NET ASSET VALUE PER SHARE:
Class I:
(Unlimited number of shares authorized)
Net assets $19,304,516 $24,887,022 $68,603,482 $3,919,832
Shares outstanding 1,136,318 1,871,506 4,796,220 335,326
Net asset value per share 16.99 $ 13.30 $ 14.30 $ 11.69
=========== =========== =========== ==========
Class II:
(Unlimited number of shares authorized)
Net assets $ 180,557
Shares outstanding 10,626
Net asset value per share $ 16.99
===========
</TABLE>
74 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Variable Contracts Trust PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pioneer Pioneer Pioneer Pioneer Pioneer
Mid-Cap Value Growth Shares Real Estate Growth Pioneer Fund Equity-Income Balanced
VCT Portfolio VCT Portfolio VCT Portfolio VCT Portfolio VCT Portfolio VCT Portfolio
<S> <C> <C> <C> <C> <C>
$106,414,890 $132,983,891 $28,997,757 $216,120,287 $179,057,961 $62,773,456
3,624,000 1,365,000 - 685,000 - -
883 3,295 230,250 1,019 - 386,106
- - - - - -
830,019 988,167 299,101 - 590,451 -
15,996 2,488 5,524 96,534 60,820 -
106,127 31,145 216,547 180,433 332,930 470,834
- - - - - -
- - - - - -
6,256 455 316 368 801 331
------------ ------------ ----------- ------------ ------------ -----------
$110,998,171 $135,374,441 $29,749,495 $217,083,641 $180,042,963 $63,630,727
------------ ------------ ----------- ------------ ------------ -----------
$ 2,242,060 $ - $ - $ 236,690 $ - $ -
69,758 379,753 28,710 20,452 368,885 31,023
- - - - - -
- - - - 803,055 -
64,257 76,654 23,715 120,944 105,591 39,032
47,412 26,412 18,005 38,196 35,523 28,880
- - - - - -
------------ ------------ ----------- ------------ ------------ -----------
$ 2,423,487 $ 482,819 $ 70,430 $ 416,282 $ 1,313,054 $ 98,935
------------ ------------ ----------- ------------ ------------ -----------
$100,136,346 $130,394,467 $34,085,699 $179,143,353 $152,768,950 $62,180,214
608,162 (79,989) 75,001 153,464 642,879 68,447
786,735 (3,116,874) (6,386,502) 8,214,643 3,919,356 (1,160,239)
7,043,441 7,694,018 1,904,867 29,155,899 21,398,724 2,443,370
- - - - - -
------------ ------------ ----------- ------------ ------------ -----------
$108,574,684 $134,891,622 $29,679,065 $216,667,359 $178,729,909 $63,531,792
============ ============ =========== ============ ============ ===========
$107,283,703 $134,802,190 $29,679,065 $216,444,982 $176,358,009 $63,531,792
6,975,711 6,780,069 2,263,988 9,257,440 9,426,166 4,397,690
$ 15.38 $ 19.88 $ 13.11 $ 23.38 $ 18.71 $ 14.45
============ ============ =========== ============ ============ ===========
$ 1,290,981 $ 89,432 $ 222,377 $ 2,371,900
83,993 4,467 9,514 126,198
$ 15.37 $ 20.02 $ 23.37 $ 18.80
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements. 75
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
BALANCE SHEETS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pioneer Pioneer Pioneer Pioneer
Pioneer Strategic Swiss Franc America Money
High Yield Income Bond Income Market
VCT Portfolio VCT Portfolio VCT Portfolio VCT Portfolio VCT Portfolio
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in securities, at value (cost
$2,712,008, $2,580,157, $42,969,509,
$25,661,488, and $0, respectively) $2,778,920 $2,540,265 $36,056,509 $24,831,070 $ -
Temporary cash investments
(at amortized cost) - - - - 32,790,110
Cash 263,007 35,995 - 60,232 1,100
Foreign currencies, at value - 30,022 27,409 - -
Receivables -
Investment securities sold - 128 - 103,484 -
Fund shares sold 47,791 - - 23,935 -
Dividends, interest and foreign taxes
withheld 45,945 52,356 730,557 233,157 447
Forward foreign currency portfolio hedge
contracts, net - 246 - - -
Due from Pioneer Investment
Management, Inc. 4,800 17,300 - - -
Other - 304 334 309 2,514
---------- ---------- ----------- ----------- -----------
Total assets $3,140,463 $2,676,616 $36,814,809 $25,252,187 $32,794,171
---------- ---------- ----------- ----------- -----------
LIABILITIES:
Payables -
Investment securities purchased $ 407,755 $ 60,030 $ - $ - $ -
Fund shares repurchased - 82 1,436 15 733,251
Dividends 3,720 3,206 - - 1,209
Forward foreign currency portfolio hedge
contracts, net - - 5,507 - -
Due to bank - - 241,403 - -
Due to affiliates 84 - 23,347 15,660 17,928
Accrued expenses 6,039 16,910 24,909 26,236 13,873
---------- ---------- ----------- ----------- -----------
Total liabilities $ 417,598 $ 80,228 $ 296,602 $ 41,911 $ 766,261
---------- ---------- ----------- ----------- -----------
NET ASSETS:
Paid-in capital $2,636,620 $2,669,124 $44,552,480 $26,814,815 $32,027,910
Accumulated net investment income (loss) 921 (7,783) 176,212 - -
Accumulated net realized gain (loss) 18,412 (25,779) (1,292,032) (774,121) -
Net unrealized gain (loss) on:
Investments 66,912 (39,892) (6,913,000) (830,418) -
Foreign currency transactions - 718 (5,453) - -
---------- ---------- ----------- ----------- -----------
Total net assets $2,722,865 $2,596,388 $36,518,207 $25,210,276 $32,027,910
========== ========== =========== =========== ===========
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Net assets $2,722,865 $2,596,388 $36,518,207 $25,210,276 $32,027,910
Shares outstanding 263,237 274,002 3,332,978 2,633,083 32,027,910
Net asset value per share $ 10.34 $ 9.48 $ 10.96 $ 9.57 $ 1.00
========== ========== =========== =========== ===========
</TABLE>
76 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pioneer Pioneer Pioneer
Emerging Pioneer International Science &
Markets Europe Growth Technology
VCT Portfolio VCT Portfolio VCT Portfolio VCT Portfolio
Six Months Six Months Six Months 5/1/00 to
Ended 6/30/00 Ended 6/30/00 Ended 6/30/00 6/30/00
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of
$14,565, $13,281, $48,135, and $2,
respectively) $ 99,172 $ 145,961 $ 533,127 $ 89
Interest (net of foreign taxes withheld of $974,
$0, $45, and $0, respectively) 35,700 43,852 60,310 3,952
----------- ---------- ------------ --------
Total investment income $ 134,872 $ 189,813 $ 593,437 $ 4,041
----------- ---------- ------------ --------
EXPENSES:
Management fees $ 116,590 $ 116,122 $ 368,386 $ 2,642
Transfer agent fees 182 376 291 1,140
Distribution fees (Class II) 34 - - -
Administrative fees 15,707 14,070 15,707 4,920
Custodian fees 47,782 28,766 45,622 2,220
Professional fees 10,920 8,374 8,736 2,040
Printing 6,006 1,250 4,186 1,140
Fees and expenses of nonaffiliated trustees 182 182 182 60
Miscellaneous 3,508 3,820 5,596 60
----------- ---------- ------------ --------
Total expenses $ 200,911 $ 172,960 $ 448,706 $ 14,222
Less management fees waived and expenses
reimbursed by Pioneer Investment
Management, Inc. (21,015) - - (9,819)
Less fees paid indirectly (2,828) (1,864) (2,017) -
----------- ---------- ------------ --------
Net expenses $ 177,068 $ 171,096 $ 446,689 $ 4,403
----------- ---------- ------------ --------
Net investment income (loss) $ (42,196) $ 18,717 $ 146,748 $ (362)
----------- ---------- ------------ --------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $ (302,942) $ 179,590 $ 4,959,333 $ 53,832
Forward foreign currency contracts and other
assets and liabilities denominated in
foreign currencies (18,691) (10,729) (8,470) -
----------- ---------- ------------ --------
$ (321,633) $ 168,861 $ 4,950,863 $ 53,832
----------- ---------- ------------ --------
Change in net unrealized gain or loss from:
Investments $(3,803,045) $2,145,271) $(10,128,781) $330,412
Forward foreign currency contracts and other
assets and liabilities denominated in
foreign currencies (300) 1,576 (1,260) -
----------- ---------- ------------ --------
$(3,803,345) $2,143,695) $(10,130,041) $330,412
----------- ---------- ------------ --------
Net gain (loss) on investments and foreign
currency transactions $(4,124,978) $1,974,834) $ (5,179,178) $384,244
----------- ---------- ------------ --------
Net increase (decrease) in net assets
resulting from operations $(4,167,174) $1,956,117) $ (5,032,430) $383,882
----------- ---------- ------------ --------
</TABLE>
77
The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pioneer Pioneer Pioneer
Mid-Cap Growth Real Estate Pioneer
Value Shares Growth Fund
VCT Portfolio VCT Portfolio VCT Portfolio VCT Portfolio
Six Months Six Months Six Months Six Months
Ended 6/30/00 Ended 6/30/00 Ended 6/30/00 Ended 6/30/00
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $0,
$465, $1,646, $9,818, $0, $2,678, $0, $0,
$0, $0, and $0, respectively) $ 672,963 $ 283,002 $ 905,137 $ 1,549,630
Interest (net of foreign taxes withheld of $0, $0,
$0, $0, $0, $0, $0, $456, $0, $0, and $0,
respectively) 171,260 139,607 25,585 89,933
---------- ------------ ---------- ------------
Total investment income $ 844,223 $ 422,609 $ 930,722 $ 1,639,563
---------- ------------ ---------- ------------
EXPENSES:
Management fees $ 379,779 $ 519,914 $ 113,179 $ 679,237
Transfer agent fees 348 219 408 364
Distribution fees (Class II) 283 35 - 40
Administrative fees 15,470 14,378 15,707 15,470
Custodian fees 40,053 22,342 16,893 34,953
Professional fees 8,441 6,370 7,644 7,462
Printing 7,546 4,368 2,912 3,822
Fees and expenses of nonaffiliated trustees 182 182 427 235
Miscellaneous 5,398 5,791 4,265 4,827
---------- ------------ ---------- ------------
Total expenses $ 457,500 $ 573,599 $ 161,435 $ 746,410
Less management fees waived and
expenses reimbursed by Pioneer
Investment Management, Inc. - (70,767) - -
Less fees paid indirectly (290) (234) (2,151) (555)
---------- ------------ ---------- ------------
Net expenses $ 457,210 $ 502,598 $ 159,284 $ 745,855
---------- ------------ ---------- ------------
Net investment income (loss) $ 387,013 $ (79,989) $ 771,438 $ 893,708
---------- ------------ ---------- ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $1,728,490 $ (3,093,509) $ (783,854) $ 8,530,153
Forward foreign currency contracts and other
assets and liabilities denominated in
foreign currencies - - - -
---------- ------------ ---------- ------------
$1,728,490 $ (3,093,509) $ (783,854) $ 8,530,153
---------- ------------ ---------- ------------
Change in net unrealized gain or loss from:
Investments $ 581,833 $ 1,333,074 $3,991,933 $ (1,148,521)
Forward foreign currency contracts and other
assets and liabilities denominated in
foreign currencies - - - -
---------- ------------ ---------- ------------
$ 581,833 $ 1,333,074 $3,991,933 $ (1,148,521)
---------- ------------ ---------- ------------
Net gain (loss) on investments and foreign
currency transactions $2,310,323 $ (1,760,435) $3,208,079 $ 7,381,632
---------- ------------ ---------- ------------
Net increase (decrease) in net assets
resulting from operations $2,697,336 $ (1,840,424) $3,979,517 $ 8,275,340
---------- ------------ ---------- ------------
</TABLE>
78
The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pioneer Pioneer Pioneer Pioneer Pioneer
Equity- Pioneer Pioneer Strategic Swiss Franc America Money
Income Balanced High Yield Income Bond Income Market
VCT Portfolio VCT Portfolio VCT Portfolio VCT Portfolio VCT Portfolio VCT Portfolio VCT Portfolio
Six Months Six Months 5/1/00 to Six Months Six Months Six Months Six Months
Ended 6/30/00 Ended 6/30/00 6/30/00 Ended 6/30/00 Ended 6/30/00 Ended 6/30/00 Ended 6/30/00
<S> <C> <C> <C> <C> <C> <C>
$ 2,996,086 $ 341,143 $ - $ - $ - $ - $ -
95,358 1,071,550 32,114 87,451 784,671 920,615 1,006,531
----------- ---------- -------- -------- ----------- ---------- ----------
$ 3,091,444 $1,412,693 $ 32,114 $ 87,451 $ 784,671 $ 920,615 $1,006,531
----------- ---------- -------- -------- ----------- ---------- ----------
$ 633,686 $ 219,295 $ 2,082 $ 6,696 $ 127,303 $ 73,733 $ 82,720
182 419 144 364 367 402 364
756 - - - - - -
21,924 15,706 5,040 15,706 15,423 15,707 15,707
22,393 11,768 2,220 1,548 18,808 10,821 7,811
10,010 16,926 2,220 7,644 7,916 9,798 4,732
9,828 5,096 1,476 2,912 6,566 4,914 7,644
182 182 60 252 730 308 182
4,538 5,589 60 1,150 4,515 4,073 5,877
----------- ---------- -------- -------- ----------- ---------- ----------
$ 703,499 $ 274,981 $ 13,302 $ 36,272 $ 181,628 $ 119,756 $ 125,037
- - (9,298) (22,045) - - -
(1,233) (1,758) - (1,351) (1,158) (2,813) (531)
----------- ---------- -------- -------- ----------- ---------- ----------
$ 702,266 $ 273,223 $ 4,004 $ 12,876 $ 180,470 $ 116,943 $ 124,506
----------- ---------- -------- -------- ----------- ---------- ----------
$ 2,389,178 $1,139,470 $ 28,110 $ 74,575 $ 604,201 $ 803,672 $ 882,025
----------- ---------- -------- -------- ----------- ---------- ----------
$ 3,985,100 $1,275,079 $ 18,412 $ (9,347) $ (756,682) $ (534,537) $ -
- - - (6,789) (87,544) - -
----------- ---------- -------- -------- ----------- ---------- ----------
$ 3,985,100 $1,275,079 $ 18,412 $(16,136) $ (844,226) $ (534,537) $ -
----------- ---------- -------- -------- ----------- ---------- ----------
$(8,459,387) $ (777,093) $ 66,912 $(33,885) $(1,426,234) $ 806,421 $ -
- - - 1,007 72,293 - -
----------- ---------- -------- -------- ----------- ---------- ----------
$(8,459,387) $ (777,093) $ 66,912 $(32,878) $(1,353,941) $ 806,421 $ -
----------- ---------- -------- -------- ----------- ---------- ----------
$(4,474,287) $ 497,986 $ 85,324 $(49,014) $(2,198,167) $ 271,884 $ -
----------- ---------- -------- -------- ----------- ---------- ----------
$(2,085,109) $1,637,456 $113,434 $ 25,561 $(1,593,966) $1,075,556 $ 882,025
----------- ---------- -------- -------- ----------- ---------- ----------
</TABLE>
79
The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pioneer
Emerging Pioneer
Markets VCT Portfolio Europe VCT Portfolio
Six Months Six Months
Ended Year Ended Year
6/30/00 Ended 6/30/00 Ended
(unaudited) 12/31/99 (unaudited) 12/31/99
<S> <C> <C> <C> <C>
FROM OPERATION
Net investment income (loss) $ (42,196) $ (14,131) $ 18,717 $ 42,850
Net realized gain (loss) (321,633) 381,443 168,861 (14,216)
Change in net unrealized gain or loss (3,803,345) 2,029,032 (2,143,695) 2,774,510
------------ ------------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations $ (4,167,174) $ 2,396,344 $ (1,956,117) $ 2,803,144
------------ ------------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income
Class I $ - $ - $ (43,148) $ -
Class II - - - -
Net realized gain
Class I (380,527) - (18,572) (4,510)
Class II (2,989) - - -
Tax return of capital
Class I - - - -
------------ ------------- ------------ ------------
Total distributions to shareholders $ (383,516) $ - $ (61,720) $ (4,510)
------------ ------------- ------------ ------------
FROM FUND SHA
TRANSACTIONS:
Net proceeds from sale of shares $ 19,937,295 $ 8,263,933 $ 19,709,174 $ 10,499,445
Reinvestment of distributions 383,516 - 61,720 4,510
Cost of shares repurchased (5,963,772) (1,114,326) (5,600,723) (2,187,787)
------------ ------------- ------------ ------------
Net increase (decrease) in net assets
resulting from fund share transactions $ 14,357,039 $ 7,149,607 $ 14,170,171 $ 8,316,168
------------ ------------- ------------ ------------
Net increase (decrease) in net assets $ 9,806,349 $ 9,545,951 $ 12,152,334 $ 11,114,802
------------ ------------- ------------ ------------
NET ASSETS:
Beginning of period 9,678,724 132,773 12,734,688 1,619,886
------------ ------------- ------------ ------------
End of period $ 19,485,073 $ 9,678,724 $ 24,887,022 $ 12,734,688
------------ ------------- ------------ ------------
Accumulated net investment income (loss),
end of period $ (42,196) $ - $ 16,332 $ 40,763
------------ ------------- ------------ ------------
<CAPTION>
Pioneer
International
Growth VCT Portfolio
Six Months
Ended Year
6/30/00 Ended
(unaudited) 12/31/99
<S> <C> <C>
FROM OPERATION
Net investment income (loss) $ 146,748 $ 261,533
Net realized gain (loss) 4,950,863 (1,829,192)
Change in net unrealized gain or loss (10,130,041) 22,680,384
------------- -------------
Net increase (decrease) in net assets
resulting from operations $ (5,032,430) $ 21,112,725
------------- -------------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income
Class I $ (514,506) $ (653,271)
Class II - -
Net realized gain
Class I - -
Class II - -
Tax return of capital
Class I - -
------------- -------------
Total distributions to shareholders $ (514,506) $ (653,271)
------------- -------------
FROM FUND SHA
TRANSACTIONS:
Net proceeds from sale of shares $ 19,247,913 $ 10,290,815
Reinvestment of distributions 514,506 653,271
Cost of shares repurchased (14,804,044) (13,736,536)
------------- -------------
Net increase (decrease) in net assets
resulting from fund share transactions $ 4,958,375 $ (2,792,450)
------------- -------------
Net increase (decrease) in net assets $ (588,561) $ 17,667,004
------------- -------------
NET ASSETS:
Beginning of period 69,192,043 51,525,039
------------- -------------
End of period $ 68,603,482 $ 69,192,043
------------- -------------
Accumulated net investment income (loss),
end of period $ 146,184 $ 513,942
------------- -------------
</TABLE>
80
The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pioneer
Science & Pioneer Pioneer Pioneer
Technology Mid-Cap Growth Real Estate
VCT Portfolio Value VCT Portfolio Shares VCT Portfolio Growth VCT Portfolio
5/1/00 Six Months Six Months Six Months
through Ended Year Ended Year Ended Year
6/30/00 6/30/00 Ended 6/30/00 Ended 6/30/00 Ended
(unaudited) (unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99
<S> <C> <C> <C> <C> <C> <C>
$ (362) $ 387,013 $ 883,670 $ (79,989) $ (103,420) $ 771,438 $ 1,580,958
53,832 1,728,490 7,085,784 (3,093,509) 12,406,777 (783,854) (5,736,257)
330,412 581,833 5,641,059 1,333,074 (4,347,904) 3,991,933 2,877,643
---------- ------------- ------------- ------------- ------------- ------------ -------------
$ 383,882 $ 2,697,336 $ 13,610,513 $ (1,840,424) $ 7,955,453 $ 3,979,517 $ (1,277,656)
---------- ------------- ------------- ------------- ------------- ------------ -------------
$ - $ (816,800) $ (973,218) $ - $ (32,449) $ (775,789) $ (1,455,528)
- (9,592) - - - - -
- (7,092,614) - (11,952,406) (196,043) - (296,057)
- (83,291) - (7,803) - - -
- - - - - - (188,957)
---------- ------------- ------------- ------------- ------------- ------------ -------------
$ - $ (8,002,297) $ (973,218) $ (11,960,209) $ (228,492) $ (775,789) $ (1,940,542)
---------- ------------- ------------- ------------- ------------- ------------ -------------
$3,436,405 $ 9,810,922 $ 16,620,793 $ 9,669,992 $ 83,962,925 $ 2,118,505 $ 4,899,901
- 8,002,297 973,218 11,960,209 228,492 775,789 1,940,542
(455) (24,459,797) (23,064,581) (35,668,278) (14,858,324) (4,736,796) (10,883,722)
---------- ------------- ------------- ------------- ------------- ------------ -------------
$3,435,950 $ (6,646,578) $ (5,470,570) $ (14,038,077) $ 69,333,093 $ (1,842,502) $ (4,043,279)
---------- ------------- ------------- ------------- ------------- ------------ -------------
$3,819,832 $ (11,951,539) $ 7,166,725 $ (27,838,710) $ 77,060,054 $ 1,361,226 $ (7,261,477)
---------- ------------- ------------- ------------- ------------- ------------ -------------
100,000 120,526,223 113,359,498 162,730,332 85,670,278 28,317,839 35,579,316
---------- ------------- ------------- ------------- ------------- ------------ -------------
$3,919,832 $ 108,574,684 $ 120,526,223 $ 134,891,622 $ 162,730,332 $ 29,679,065 $ 28,317,839
---------- ------------- ------------- ------------- ------------- ------------ -------------
$ (362) $ 608,162 $ 1,047,541 $ (79,989) $ - $ 75,001 $ 79,352
---------- ------------- ------------- ------------- ------------- ------------ -------------
</TABLE>
81
The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pioneer
Pioneer Fund Equity-Income
VCT Portfolio VCT Portfolio
Six Months Six Months
Ended Year Ended Year
6/30/00 Ended 6/30/00 Ended
(unaudited) 12/31/99 (unaudited) 12/31/99
<S> <C> <C> <C> <C>
FROM OPERATION
Net investment income $ 893,708 $ 1,260,568 $ 2,389,178 $ 4,495,087
Net realized gain (loss) 8,530,153 943,556 3,985,100 15,265,131
Change in net unrealized
gain or loss (1,148,521) 20,385,097 (8,459,387) (17,458,854)
------------- ------------ ------------- -------------
Net increase (decrease)
in net assets resulting
from operations $ 8,275,340 $ 22,589,221 $ (2,085,109) $ 2,301,364
------------- ------------ ------------- -------------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income:
Class I $ (739,870) $ (1,272,868) $ (2,222,183) $ (4,351,482)
Class II (374) - (13,307) (1,074)
Net realized gain
Class I (1,229,510) (166,945) (15,066,697) (6,090,521)
Class II (1,252) - (187,542) -
Tax return of capital
Class I - - - -
------------- ------------ ------------- -------------
Total distributions to
shareholders $ (1,971,006) $ (1,439,813) $ (17,489,729) $ (10,443,077)
------------- ------------ ------------- -------------
FROM FUND SHA
TRANSACTIONS:
Net proceeds from sale of
shares $ 19,521,835 $100,763,579 $ 4,254,118 $ 34,058,957
Reinvestment of distributions 1,971,006 1,439,813 17,489,729 10,443,077
Cost of shares repurchased (16,057,152) (8,285,561) (49,996,091) (13,779,546)
------------- ------------ ------------- -------------
Net increase (decrease)
in net assets resulting
from fund share
transactions $ 5,435,689 $ 93,917,831 $ (28,252,244) $ 30,722,488
------------- ------------ ------------- -------------
Net increase (decrease)
in net assets $ 11,740,023 $115,067,239 $ (47,827,082) $ 22,580,775
------------- ------------ ------------- -------------
NET ASSETS:
Beginning of period 204,927,336 89,860,097 226,556,991 203,976,216
------------- ------------ ------------- -------------
End of period $ 216,667,359 $204,927,336 $ 178,729,909 $ 226,556,991
------------- ------------ ------------- -------------
Accumulated net investment
income (loss), end of
period $ 153,464 $ - $ 642,879 $ 489,191
------------- ------------ ------------- -------------
<CAPTION>
Pioneer Pioneer
Balanced High Yield
VCT Portfolio VCT Portfolio
Six Months 5/1/00
Ended Year through
6/30/00 Ended 6/30/00
(unaudited) 12/31/99 (unaudited)
<S> <C> <C> <C>
FROM OPERATION
Net investment income $ 1,139,470 $ 2,544,230 $ 28,110
Net realized gain (loss) 1,275,079 691,294 18,412
Change in net unrealized
gain or loss (777,093) (1,486,313) 66,912
------------- ------------ ----------
Net increase (decrease)
in net assets resulting
from operations $ 1,637,456 $ 1,749,211 $ 113,434
------------- ------------ ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income:
Class I $ (1,088,134) $ (2,554,424) $ (27,189)
Class II - - -
Net realized gain
Class I - - -
Class II - - -
Tax return of capital
Class I - - -
------------- ------------ ----------
Total distributions to
shareholders $ (1,088,134) $ (2,554,424) $ (27,189)
------------- ------------ ----------
FROM FUND SHA
TRANSACTIONS:
Net proceeds from sale of
shares $ 1,202,675 $ 11,606,417 $2,244,643
Reinvestment of distributions 1,088,134 2,554,424 27,189
Cost of shares repurchased (11,976,946) (7,617,190) (135,212)
------------- ------------ ----------
Net increase (decrease)
in net assets resulting
from fund share
transactions $ (9,686,137) $ 6,543,651 $2,136,620
------------- ------------ ----------
Net increase (decrease)
in net assets $ (9,136,815) $ 5,738,438 $2,222,865
------------- ------------ ----------
NET ASSETS:
Beginning of period 72,668,607 66,930,169 500,000
------------- ------------ ----------
End of period $ 63,531,792 $ 72,668,607 $2,722,865
------------- ------------ ----------
Accumulated net investment
income (loss), end of
period $ 68,447 $ 17,111 $ 921
------------- ------------ ----------
</TABLE>
82
The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pioneer Pioneer Pioneer Pioneer
Strategic Swiss Franc America Money Market
Income VCT Portfolio Bond VCT Portfolio Income VCT Portfolio VCT Portfolio
Six Months Six Months Six Months Six Months
Ended 7/29/99 Ended Year Ended Year Ended Year
6/30/00 to 6/30/00 Ended 6/30/00 Ended 6/30/00 Ended
(unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99 (unaudited) 12/31/99
<S> <C> <C> <C> <C> <C> <C> <C>
$ 74,575 $ 26,171 $ 604,201 $ 1,421,093 $ 803,672 $ 1,697,060 $ 882,025 $ 1,228,155
(16,136) (10,876) (844,226) (1,972,390) (534,537) (239,584) - -
(32,878) (6,296) (1,353,941) (5,879,078) 806,421 (2,217,780) - -
---------- ---------- ------------ ------------- ------------ ------------- ------------- -------------
$ 25,561 $ 8,999 $ (1,593,966) $ (6,430,375) $ 1,075,556 $ (760,304) $ 882,025 $ 1,228,155
---------- ---------- ------------ ------------- ------------ ------------- ------------- -------------
$ (81,099) $ (26,197) $ - $ - $ (803,672) $ (1,697,060) $ (882,025) $ (1,228,155)
- - - - - - - -
- - - - - (26,567) - -
- - - - - - - -
- (4,007) - (282,586) - - - -
---------- ---------- ------------ ------------- ------------ ------------- ------------- -------------
$ (81,099) $ (30,204) $ - $ (282,586) $ (803,672) $ (1,723,627) $ (882,025) $ (1,228,155)
---------- ---------- ------------ ------------- ------------ ------------- ------------- -------------
$2,083,687 $1,145,407 $ 1,072,130 $ 19,177,149 $ 1,639,512 $ 12,694,085 $ 29,785,935 $ 53,414,674
81,099 30,204 - 282,586 803,672 1,723,627 882,025 1,228,155
(756,564) (10,702) (6,628,421) (10,252,079) (7,283,706) (10,976,618) (35,986,721) (38,793,023)
---------- ---------- ------------ ------------- ------------ ------------- ------------- -------------
$1,408,222 $1,164,909 $ (5,556,291) $ 9,207,656 $ (4,840,522) $ 3,441,094 $ (5,318,761) $ 15,849,806
---------- ---------- ------------ ------------- ------------ ------------- ------------- -------------
$1,352,684 $1,143,704 $ (7,150,257) $ 2,494,695 $ (4,568,638) $ 957,163 $ (5,318,761) $ 15,849,806
---------- ---------- ------------ ------------- ------------ ------------- ------------- -------------
1,243,704 100,000 43,668,464 41,173,769 29,778,914 28,821,751 37,346,671 21,496,865
---------- ---------- ------------ ------------- ------------ ------------- ------------- -------------
$2,596,388 $1,243,704 $ 36,518,207 $ 43,668,464 $ 25,210,276 $ 29,778,914 $ 32,027,910 $ 37,346,671
---------- ---------- ------------ ------------- ------------ ------------- ------------- -------------
$ (7,783) $ (1,259) $ 176,212 $ (427,989) $ - $ - $ - $ -
---------- ---------- ------------ ------------- ------------ ------------- ------------- -------------
</TABLE>
83
The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Variable Contracts Trust (the Trust) is a Delaware business trust
registered under the Investment Company Act of 1940 as an open-end management
investment company. The Trust consists of fifteen separate portfolios
(collectively, the Portfolios, individually the Portfolio) as follows:
Pioneer Emerging Markets VCT Portfolio (Emerging Markets Portfolio), Pioneer
Europe VCT Portfolio (Europe Portfolio), Pioneer International Growth VCT
Portfolio (International Growth Portfolio), Pioneer Science & Technology VCT
Portfolio (Science & Technology Portfolio), Pioneer Mid-Cap Value VCT Portfolio
(Mid-Cap Value Portfolio) (formerly Capital Growth Portfolio), Pioneer Growth
Shares VCT Portfolio (Growth Shares Portfolio), Pioneer Real Estate Growth VCT
Portfolio (Real Estate Growth Portfolio), Pioneer Fund VCT Portfolio (Fund
Portfolio) (formerly Growth and Income Portfolio), Pioneer Equity-Income VCT
Portfolio (Equity-Income Portfolio), Pioneer Balanced VCT Portfolio (Balanced
Portfolio), Pioneer High Yield VCT Portfolio (High Yield Portfolio), Pioneer
Strategic Income VCT Portfolio (Strategic Income Portfolio), Pioneer Swiss
Franc Bond VCT Portfolio (Swiss Franc Bond Portfolio), Pioneer America Income
VCT Portfolio (America Income Portfolio), Pioneer Money Market VCT Portfolio
(Money Market Portfolio).
Portfolio shares 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. Science &
Technology Portfolio seeks capital appreciation by investing primarily in
stocks of companies expected to benefit from the development, advancement or
use of science or technology. Mid-Cap Value Portfolio and Growth Shares
Portfolio seek capital appreciation. Real Estate Growth Portfolio pursues
long-term capital growth, with income as a secondary objective. Fund 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. High Yield Portfolio seeks to
maximize total return through a combination of income and capital appreciation.
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 as of 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. Interest income,
including interest on income bearing cash accounts, 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 on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
84
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
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.
Emerging Markets, International Growth and Strategic Income Portfolios'
investments in emerging markets or countries with limited or developing
markets may subject the Portfolios to a greater degree of risk than in a
developed market. Risks associated with these developing markets include
political, social or economic factors and may affect the price of the
Portfolios' investments and income generated by these investments, as well
as the Portfolios' ability to repatriate such amounts. In addition, delays
are common in registering transfers of securities in certain foreign
countries, and the Portfolios may be unable to sell portfolio securities
until the registration process is completed.
In addition, certain Portfolios such as Science & Technology Portfolio,
Real Estate Growth Portfolio and High Yield Portfolio have concentrations
in certain asset types which may subject the Portfolios to additional
risks. Further description of these risks is included in the Trust's
Prospectus.
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 the value of the contracts
may not directly correlate to the changes in the value of the underlying
securities. These risks may decrease the effectiveness of the Portfolios'
hedging strategies and potentially result in a loss. As of June 30, 2000,
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 9).
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 six months ended June 30, 2000, Emerging Markets
Portfolio paid $71,084 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. 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
85
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/00 (UNAUDITED) (continued)
--------------------------------------------------------------------------------
rates and other such factors. As of June 30, 2000, the Portfolios had no
reserves related to capital gains taxes or taxes on the repatriation of
foreign currencies.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with federal income tax
rules. Therefore, the source of each Portfolio's distributions may be shown
in the accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
A portion of the dividend income recorded by the Real Estate Growth
Portfolio is from distributions by publicly traded REITs, and such
distributions for tax purposes may also consist of capital gains and return
of capital. The actual return of capital and capital gains portions of such
distributions will be determined by formal notifications from the REITs
subsequent to the calendar year-end. Distributions received from the REITs
that are determined to be a return of capital, are recorded by the
Portfolio 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
America Income Portfolio 144,699 2007
--------------------------------------------------------------------------------
</TABLE>
F. Portfolio Shares
The Portfolios record sales and repurchases of their fund shares as of
trade date. Certain insurance companies paid Pioneer Funds Distributor,
Inc. (PFD), the principal underwriter for the Trust and an indirect
subsidiary of The Pioneer Group, Inc. (PGI), $862,483 in commissions on the
sale of portfolio shares for the six months ended June 30, 2000. The High
Yield, 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.
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 Trust'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.
86
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
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 the Portfolio's Average
Portfolio Daily Net Assets
--------------------------------------------------------------------------------
<S> <C>
Emerging Markets Portfolio 1.15%
Europe Portfolio 1.00%
International Growth Portfolio 1.00%
Science & Technology Portfolio 0.75%
Mid-Cap Value Portfolio 0.65%
Growth Shares Portfolio 0.70%
Real Estate Growth Portfolio 0.80%
Fund Portfolio 0.65%
Equity-Income Portfolio 0.65%
Balanced Portfolio 0.65%
High Yield 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 has agreed not to impose all or a portion of its management fees and to
assume other operating expenses for certain Portfolios to the extent necessary
to limit expenses of Class I shares to the following percentages of the
Portfolio's average daily net assets attributable to Class I shares:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Expense Limitation as a
Percentage of the Portfolio's
Portfolio Average Daily Net Assets
--------------------------------------------------------------------------------
<S> <C>
Emerging Markets Portfolio 1.75%
Europe Portfolio 1.50%
International Growth Portfolio 1.50%
Science & Technology Portfolio 1.25%
Growth Shares Portfolio 1.25%
Real Estate Growth Portfolio 1.25%
Fund Portfolio 1.25%
High Yield 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>
The portion of the Portfolio-wide expenses attributable to Class II shares will
be reduced only to the extent that such expenses are reduced for Class I
shares. PIM's agreement is voluntary and temporary and may be revised or
terminated at any time.
87
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/00 (UNAUDITED) (continued)
--------------------------------------------------------------------------------
Prior to June 15, 2000, PIM had agreed not to impose a portion of its
management fee to the extent necessary to reduce Growth Shares Portfolio's fee
From 0.70% to 0.65% of the Portfolio's average daily net asset
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Portfolios. At June 30, 2000, 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 $ 19,323
Europe Portfolio 26,923
International Growth Portfolio 61,569
Mid-Cap Value Portfolio 63,912
Growth Shares Portfolio 76,628
Real Estate Growth Portfolio 23,644
Fund Portfolio 120,840
Equity-Income Portfolio 105,202
Balanced Portfolio 38,883
Swiss Franc Bond Portfolio 23,310
America Income Portfolio 15,620
Money Market Portfolio 17,895
</TABLE>
3. Transfer Agent
Pioneering Services Corporation (PSC), a wholly owned subsidiary of PGI,
provides substantially all transfer agent and shareholder services to the Trust
at negotiated rates. The following amounts in transfer agent fees payable to
PSC were included in due to affiliates at June 30, 2000:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Portfolio Amount
--------------------------------------------------------------------------------
<S> <C>
Europe Portfolio $ 80
International Growth Portfolio 2
Science & Technology Portfolio 1,140
Mid-Cap Value Portfolio 109
Real Estate Growth Portfolio 71
Fund Portfolio 69
Balanced Portfolio 149
High Yield Portfolio 84
Swiss Franc Bond Portfolio 37
America Income Portfolio 40
Money Market Portfolio 33
</TABLE>
4. Distribution Plans
The Portfolios have adopted plans of distribution for Class II shares in
accordance with Rule 12b-1 under the Investment Company Act of 1940. Under the
plans, each Portfolio pays PFD a distribution fee of 0.25% of the average daily
net assets attributable to Class II shares. The following amounts of
distribution fees payable to PFD are included in due to affiliates at June 30,
2000:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Portfolio Amount
--------------------------------------------------------------------------------
<S> <C>
Emerging Markets Portfolio $ 24
Mid-Cap Value Portfolio 236
Growth Shares Portfolio 26
Fund Portfolio 35
Equity-Income Portfolio 389
</TABLE>
88
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
5. Expense Offsets
The Trust has entered into certain expense offset arrangements resulting in a
reduction in the Portfolios' total expenses. For the six months ended June 30,
2000, the Portfolios' expenses were reduced under such arrangements as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Portfolio Amount
--------------------------------------------------------------------------------
<S> <C>
Emerging Markets Portfolio $2,828
Europe Portfolio 1,864
International Growth Portfolio 2,017
Mid-Cap Value Portfolio 290
Growth Shares Portfolio 234
Real Estate Growth Portfolio 2,151
Fund Portfolio 555
Equity-Income Portfolio 1,233
Balanced Portfolio 1,758
Strategic Income Portfolio 1,351
Swiss Franc Bond Portfolio 1,158
America Income Portfolio 2,813
Money Market Portfolio 531
--------------------------------------------------------------------------------
</TABLE>
6. Aggregate Unrealized Appreciation and Depreciation
At June 30, 2000, the Portfolios' aggregate unrealized appreciation and
depreciation based on cost for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Gross Gross Net Appreciation/
Tax Cost Appreciation Depreciation (Depreciation)
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Emerging Markets Portfolio $ 21,528,086 $ 1,586,237 $ (3,435,846) $ (1,849,609)
Europe Portfolio 24,377,575 3,079,773 (2,458,311) 621,462
International Growth Portfolio 58,039,069 16,263,987 (5,947,184) 10,316,803
Science & Technology Portfolio 3,974,512 462,115 (131,703) 330,412
Mid-Cap Value Portfolio 105,013,238 15,461,892 (10,436,240) 5,025,652
Growth Shares Portfolio 126,733,117 17,067,894 (9,452,120) 7,615,774
Real Estate Growth Portfolio 27,779,208 2,254,564 (1,036,015) 1,218,549
Fund Portfolio 187,809,716 41,823,474 (12,827,903) 28,995,571
Equity-Income Portfolio 157,659,237 34,945,533 (13,546,809) 21,398,724
Balanced Portfolio 60,340,617 6,661,499 (4,228,660) 2,432,839
High Yield Portfolio 2,712,008 92,596 (25,684) 66,912
Strategic Income Portfolio 2,581,242 14,897 (55,874) (40,977)
Swiss Franc Bond Portfolio 42,969,509 - (6,913,000) (6,913,000)
America Income Portfolio 25,699,584 23,254 (891,768) (868,514)
------------------------------------------------------------------------------------------------------------
</TABLE>
89
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/00 (UNAUDITED) (continued)
--------------------------------------------------------------------------------
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 six months
ended June 30, 2000 were as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Portfolio Purchases Sales
--------------------------------------------------------------------------------
<S> <C> <C>
Emerging Markets Portfolio $27,181,513 $12,293,259
Europe Portfolio 18,480,448 4,638,805
International Growth Portfolio 26,949,884 19,058,763
Science & Technology Portfolio 3,398,425 77,745
Mid-Cap Value Portfolio 56,823,161 67,936,693
Growth Shares Portfolio 41,432,131 60,621,467
Real Estate Growth Portfolio 4,161,826 5,599,914
Fund Portfolio 28,731,857 21,656,406
Equity-Income Portfolio 4,383,772 43,577,186
Balanced Portfolio 3,588,647 12,195,675
High Yield Portfolio 2,778,954 94,250
Strategic Income Portfolio 1,708,477 319,895
Swiss Franc Bond Portfolio 2,563,310 4,750,954
--------------------------------------------------------------------------------
</TABLE>
The cost of purchases and the proceeds from sales of long-term U.S. Government
obligations for the six months ended June 30, 2000 were as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Portfolio Purchases Sales
--------------------------------------------------------------------------------
<S> <C> <C>
Balanced Portfolio $2,873,521 $ 2,970,926
Strategic Income Portfolio 415,677 360,305
America Income Portfolio 6,639,031 10,413,597
--------------------------------------------------------------------------------
</TABLE>
8. Capital Shares
At June 30, 2000, there was an unlimited number of shares of beneficial
interest authorized. Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
'00 Shares '00 Amount
(unaudited) (unaudited) '99 Shares '99 Amount
<S> <C> <C> <C> <C>
Emerging Markets Portfolio
Class I:
Shares sold 935,309 $ 19,755,659 590,026 $ 8,263,933
Reinvestment of distributions 22,347 380,527 - -
Shares repurchased (337,523) (5,963,429) (86,499) (1,114,326)
-------- ------------ ------- ------------
Net increase 620,133 $ 14,172,757 503,527 $ 7,149,607
-------- ------------ ------- ------------
Class II:
Shares sold 10,470 $ 181,636
Reinvestment of distributions 177 2,989
Shares repurchased (21) (343)
-------- ------------
Net increase 10,626 $ 184,282
-------- ------------
Europe Portfolio
Class I:
Shares sold 1,339,272 $ 19,709,174 973,620 $ 10,499,445
Reinvestment of distributions 4,596 61,720 432 4,510
Shares repurchased (407,951) (5,600,723) (191,297) (2,187,787)
--------- ------------ -------- ------------
Net increase 935,917 $ 14,170,171 782,755 $ 8,316,168
--------- ------------ -------- ------------
</TABLE>
90
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
'00 Shares '00 Amount
(unaudited) (unaudited) '99 Shares '99 Amount
<S> <C> <C> <C> <C>
International Growth Portfolio
Class I:
Shares sold 1,262,217 $ 19,247,913 862,802 $ 10,290,815
Reinvestment of distributions 35,854 514,506 57,506 653,271
Shares repurchased (1,001,005) (14,804,044) (1,198,328) (13,736,536)
---------- ------------- ---------- -------------
Net increase (decrease) 297,066 $ 4,958,375 (278,020) $ (2,792,450)
---------- ------------- ---------- -------------
Science & Technology Portfolio
Class I:
Shares sold 325,378 $ 3,436,405
Shares repurchased (52) (455)
---------- -------------
Net increase 325,326 $ 3,435,950
---------- -------------
Mid-Cap Value Portfolio
Class I:
Shares sold 537,577 $ 8,504,967 1,046,011 $ 16,620,793
Reinvestment of distributions 511,605 7,909,414 59,093 973,218
Shares repurchased (1,487,574) (24,457,373) (1,512,021) (23,064,581)
---------- ------------- ---------- -------------
Net decrease (438,392) $ (8,042,992) (406,917) $ (5,470,570)
---------- ------------- ---------- -------------
Class II:
Shares sold 78,132 $ 1,305,955
Reinvestment of distributions 6,008 92,883
Shares repurchased (147) (2,424)
---------- -------------
Net increase 83,993 $ 1,396,414
---------- -------------
Growth Shares Portfolio
Class I:
Shares sold 441,604 $ 9,581,756 3,896,305 $ 83,962,925
Reinvestment of distributions 611,689 11,952,406 10,381 228,492
Shares repurchased (1,696,596) (35,667,006) (694,532) (14,858,324)
---------- ------------- ---------- -------------
Net increase (decrease) (643,303) $ (14,132,844) 3,212,154 $ 69,333,093
---------- ------------- ---------- -------------
Class II:
Shares sold 4,128 $ 88,236
Reinvestment of distributions 397 7,803
Shares repurchased (58) (1,272)
---------- -------------
Net increase 4,467 $ 94,767
---------- -------------
Real Estate Growth Portfolio
Class I:
Shares sold 172,972 $ 2,118,505 386,195 $ 4,899,901
Reinvestment of distributions 62,843 775,789 159,227 1,940,542
Shares repurchased (385,096) (4,736,796) (854,641) (10,883,722)
---------- ------------- ---------- -------------
Net decrease (149,281) $ (1,842,502) (309,219) $ (4,043,279)
---------- ------------- ---------- -------------
Fund Portfolio
Class I:
Shares sold 856,930 $ 19,309,255 4,807,375 $ 100,763,579
Reinvestment of distributions 83,991 1,969,380 67,587 1,439,813
Shares repurchased (712,406) (16,056,921) (392,763) (8,285,561)
---------- ------------- ---------- -------------
Net increase 228,515 $ 5,221,714 4,482,199 $ 93,917,831
---------- ------------- ---------- -------------
</TABLE>
91
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Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/00 (UNAUDITED) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
'00 Shares '00 Amount
(unaudited) (unaudited) '99 Shares '99 Amount
<S> <C> <C> <C> <C>
Class II:
Shares sold 9,455 $ 212,580
Reinvestment of distributions 69 1,626
Shares repurchased (10) (231)
----- -------------
Net increase 9,514 $ 213,975
----- -------------
Equity-Income Portfolio
Class I:
Shares sold 97,648 $ 1,881,864 1,570,521 $ 33,847,223
Reinvestment of distributions 907,383 17,288,880 490,175 10,442,003
Shares repurchased (2,506,535) (49,848,780) (645,785) (13,747,268)
---------- ------------- --------- -------------
Net increase (decrease) (1,501,504) $ (30,678,036) 1,414,911 $ 30,541,958
---------- ------------- --------- -------------
Class II:
Shares sold 114,486 $ 2,372,254 10,044 $ 211,734
Reinvestment of distributions 10,499 200,849 52 1,074
Shares repurchased (7,334) (147,311) (1,549) (32,278)
---------- ------------- --------- -------------
Net increase 117,651 $ 2,425,792 8,547 $ 180,530
---------- ------------- --------- -------------
Balanced Portfolio
Class I:
Shares sold 83,753 $ 1,202,675 803,741 $ 11,606,417
Reinvestment of distributions 74,990 1,088,134 180,360 2,554,424
Shares repurchased (837,920) (11,976,946) (532,051) (7,617,190)
---------- ------------- --------- -------------
Net increase (decrease) (679,177) $ (9,686,137) 452,050 $ 6,543,651
---------- ------------- --------- -------------
High Yield Portfolio
Class I:
Shares sold 224,751 $ 2,244,643
Reinvestment of distributions 2,018 27,189
Shares repurchased (13,532) (135,212)
---------- -------------
Net increase 213,237 $ 2,136,620
---------- -------------
Strategic Income Portfolio
Class I:
Shares sold 219,242 $ 2,083,687 115,515 $ 1,145,407
Reinvestment of distributions 6,541 81,099 3,079 30,204
Shares repurchased (79,286) (756,564) (1,089) (10,702)
---------- ------------- --------- -------------
Net increase 146,497 $ 1,408,222 117,505 $ 1,164,909
---------- ------------- --------- -------------
Swiss Franc Bond Portfolio
Class I:
Shares sold 90,000 $ 1,072,130 1,549,850 $ 19,177,149
Reinvestment of distributions - - 24,680 282,586
Shares repurchased (605,326) (6,628,421) (840,660) (10,252,079)
---------- ------------- --------- -------------
Net increase (decrease) (515,326) $ (5,556,291) 733,870 $ 9,207,656
---------- ------------- --------- -------------
America Income Portfolio
Class I:
Shares sold 172,887 $ 1,639,512 1,278,400 $ 12,694,085
Reinvestment of distributions 84,729 803,672 176,222 1,723,627
Shares repurchased (769,587) (7,283,706) (1,111,630) (10,976,618)
---------- ------------- ---------- -------------
Net increase (decrease) (511,971) $ (4,840,522) 342,992 $ 3,441,094
---------- ------------- ---------- -------------
</TABLE>
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--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
'00 Shares '00 Amount
(unaudited) (unaudited) '99 Shares '99 Amount
<S> <C> <C> <C> <C>
Money Market Portfolio
Class I:
Shares sold 29,785,935 $ 29,785,935 53,414,674 $ 53,414,674
Reinvestment of distributions 882,025 882,025 1,228,155 1,228,155
Shares repurchased (35,986,721) (35,986,721) (38,793,023) (38,793,023)
----------- ------------- ----------- -------------
Net increase (decrease) (5,318,761) $ (5,318,761) 15,849,806 $ 15,849,806
----------- ------------- ----------- -------------
</TABLE>
9. Forward Foreign Currency Contracts
At June 30, 2000, certain Portfolios had entered into various contracts that
obligate the Portfolios to deliver currencies at specified future dates. At the
maturity of a contract, 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 June 30, 2000, the Portfolios' open portfolio hedges were as follows.
Contracts to Deliver:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
Contracts to In Exchange Settlement Net Unrealized
Portfolio Deliver For Date Value Gain
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Strategic Income Portfolio EURO (20,000) $19,446 9/8/00 $19,200 $246
-------------------------------------------------------------------------------------------------------------
</TABLE>
Contracts to Receive:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
Contracts to In Exchange Settlement Net Unrealized
Portfolio Receive For Date Value Loss
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Swiss Franc Bond Portfolio CHF 400,000 $251,467 7/14/00 $245,960 $5,507
-------------------------------------------------------------------------------------------------------------
</TABLE>
Outstanding forward currency settlement contracts as of June 30, 2000, were as
follows:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
Gross Gross Net
Portfolio Receivable Payable Receivable/(Payable)
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Emerging Markets Portfolio $ 30,826 $ 30,369 $ 457
Europe Portfolio 409,040 410,356 (1,316)
International Growth Portfolio 951,590 955,017 (3,427)
-------------------------------------------------------------------------------------------------------------
</TABLE>
93
<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
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
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.
8743-00-0800
