<PAGE>
[PIONEER LOGO]
Pioneer Variable Contracts Trust
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
SEMIANNUAL REPORT
June 30, 2000
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PIONEER VARIABLE CONTRACTS TRUST
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Table of Contents
<TABLE>
<S> <C>
Pioneer Mid-Cap Value VCT Portfolio
Portfolio and Performance Update 2
Portfolio Management Discussion 3
Pioneer Growth Shares VCT Portfolio
Portfolio and Performance Update 4
Portfolio Management Discussion 5
Pioneer Real Estate Growth VCT Portfolio
Portfolio and Performance Update 6
Portfolio Management Discussion 7
Pioneer Fund VCT Portfolio
Portfolio and Performance Update 8
Portfolio Management Discussion 9
Pioneer Equity-Income VCT Portfolio
Portfolio and Performance Update 10
Portfolio Management Discussion 11
Schedules of Investments
Pioneer Mid-Cap Value VCT Portfolio 12
Pioneer Growth Shares VCT Portfolio 15
Pioneer Real Estate Growth VCT Portfolio 16
Pioneer Fund VCT Portfolio 17
Pioneer Equity-Income VCT Portfolio 20
Financial Statements 22
Notes to Financial Statements 30
</TABLE>
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Pioneer Mid-Cap Value VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
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Portfolio Diversification
(As a percentage of total investment portfolio)
[PIE CHART PLOT POINTS]
U.S. Common Stocks 92.5%
International Common Stocks 3.7%
Short-Term Cash Equivalents 3.3%
Depositary Receipts for
International Stocks 0.5%
[END PLOT POINTS]
Sector Distribution
(As a percentage of equity holdings)
[PIE CHART PLOT POINTS]
Technology 20%
Financial 15%
Consumer Cyclicals 12%
Energy 10%
Utilities 10%
Consumer Staples 9%
Healthcare 9%
Capital Goods 8%
Basic Materials 5%
Communication Services 2%
[END PLOT POINTS]
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.
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Prices and Distributions -- Class I Shares
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $15.38 $16.26
</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>
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Performance of a $10,000 Investment -- Class I Shares
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.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Pioneer S&P 500
Mid-Cap Value Index
VCT Portfolio*
<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
14241 32978
6/00 18609 32831
</TABLE>
[END PLOT POINTS]
The S&P 500 Index is an unmanaged measure of 500 widely held common stocks
listed on the New York Stock Exchange, American Stock Exchange and over-the-
counter 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.
Class I Shares
Average Annual
Total Returns
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period
<S> <C>
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.
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.
2
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Pioneer Mid-Cap Value VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
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[side bar]
On May 1, 2000, the name of Capital Growth Portfolio changed to Pioneer Mid-Cap
Value VCT Portfolio.
[end side bar]
Mid-capitalization stocks, while offering the potential for higher returns, may
be subject to greater short-term price fluctuation than securities of larger
companies.
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; 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 believe the new name better describes our investment approach. Our focus
is on mid-cap companies, and our approach 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.
3
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Pioneer Growth Shares VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
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Portfolio Diversification
(As a percentage of total investment portfolio)
[PIE CHART PLOT POINTS]
U.S. Common Stocks 96%
Depositary Receipts for
International Stocks 3%
Short-Term Cash Equivalents 1%
[END PLOT POINTS]
Sector Distribution
(As a percentage of equity holdings)
[PIE CHART PLOT POINTS]
Consumer Staples 31%
Technology 17%
Financial 13%
Consumer Cyclicals 13%
Capital Goods 11%
Healthcare 10%
Basic Materials 3%
Communication Services 2%
[END PLOT POINTS]
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 -- Class II Shares
<TABLE>
<CAPTION>
6/30/00 5/1/00
<S> <C> <C>
Net Asset Value per Share $20.02 $21.68
</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>
$ - $ - $1.917
</TABLE>
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Performance of a $10,000 Investment -- Class II Shares
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.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Pioneer S&P 500
Growth Shares Index
VCT Portfolio*
<S> <C> <C>
5/1/00 10000 10000
5/31/00 9862 9675
6/30/00 10134 9935
</TABLE>
[END PLOT POINTS]
Index comparsion begins 5/1/00. 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.
Class II Shares
Cumulative
Total Returns
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period
<S> <C>
Life-of-Portfolio 1.33%
(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.
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.
4
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Pioneer Growth Shares VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
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. The Portfolio's Class II shares were first offered on May 1, 2000.
Q: How would you characterize the Portfolio's performance during the two-month
period?
A: The Portfolio's defensive positioning helped it avoid the worst of the
technology sell-off during the second quarter. For the two-month period, the
Portfolio returned 1.33% at net asset value. In comparison, the Standard &
Poor's 500 Index returned 0.43% for the same period.
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.
5
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Pioneer Real Estate Growth VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
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Portfolio Diversification
(As a percentage of total investment portfolio)
[PIE CHART PLOT POINTS]
U.S. Common Stocks 96%
International Common Stocks 4%
[END PLOT POINTS]
Sector Distribution
(As a percentage of equity holdings)
[PIE CHART PLOT POINTS]
Real Estate Investment Trusts 96%
Real Estate Services 4%
[END PLOT POINTS]
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 -- Class I Shares
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $13.11 $11.73
</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 -- Class I Shares
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.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Pioneer Real S&P 500 Wilshire
Estate Growth Index Real Estate
VCT Portfolio* Securities 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 PLOT POINTS]
The S&P 500 Index is an unmanaged measure of 500 widely held common stocks
listed on the New York Stock Exchange, American Stock Exchange and the
over-the-counter 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.
Class I Shares
Average Annual
Total Returns
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period
<S> <C>
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.
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.
6
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Pioneer Real Estate Growth VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
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[side bar]
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 side bar]
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 not move in step with 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.
Q: Did the Portfolio'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. Strong, steady economic growth and
favorable demographic trends bode well for Dallas, Houston and Atlanta in
particular. A new holding, Gables, builds high-end apartments in these
cities as well as in southern Florida.
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.
7
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Pioneer Fund VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
Portfolio Diversification
(As a percentage of total investment portfolio)
[PIE CHART PLOT POINTS]
U.S. Common Stocks 94.0%
Depositary Receipts for
International Stocks 4.1%
International Common Stocks 1.6%
Short-Term Cash Equivalents 0.3%
[END PLOT POINTS]
Sector Distribution
(As a percentage of equity holdings)
[PIE CHART PLOT POINTS]
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%
[END PLOT POINTS]
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 -- Class II Shares
<TABLE>
<CAPTION>
6/30/00 5/1/00
<S> <C> <C>
Net Asset Value per Share $23.37 $23.28
</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>
$0.040 $0.134 $ -
</TABLE>
--------------------------------------------------------------------------------
Performance of a $10,000 Investment -- Class II Shares
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.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Pioneer Fund S&P 500
VCT Portfolio* Index
<S> <C> <C>
5/1/00 10000 10000
5/31/00 10004 9675
6/30/00 10113 9935
</TABLE>
[END PLOT POINTS]
The S&P 500 Index is an unmanaged measure of 500 widely held common stocks
listed on the New York Stock Exchange, American Stock Exchange and the
over-the-counter markets. 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.
Class II Shares
Cumulative
Total Returns
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period
<S> <C>
Life-of-Portfolio 1.13%
(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
<PAGE>
Pioneer Fund VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
[side bar]
On May 1, 2000, the name of Growth and Income Portfolio changed to Pioneer Fund
VCT Portfolio.
[end side bar]
In the following discussion John Carey, the portfolio manager for Pioneer Fund
VCT Portfolio, discusses the events and factors that influenced your
Portfolio's performance. The discussion reviews the past six months and their
impact on the Portfolio. The Portfolio's Class II Shares were first offered on
May 1, 2000.
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 for the two-month period ended June 30, 2000?
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, 1.13% (at net asset value), slightly outperformed the 0.43% average
return of the Standard and Poor's 500 Index.
Q: How do you determine if a stock is appropriate for Pioneer Fund VCT
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 specific 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.
9
<PAGE>
Pioneer Equity-Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
PORTFOLIO AND PERFORMANCE UPDATE 6/30/00
--------------------------------------------------------------------------------
Portfolio Diversification
(As a percentage of total investment portfolio)
[PIE CHART PLOT POINTS]
U.S. Common Stocks 98%
U.S. Convertible Securities 2%
[END PLOT POINTS]
Sector Distribution
(As a percentage of equity holdings)
[PIE CHART PLOT POINTS]
Financial 18%
Communication Services 16%
Utilities 16%
Consumer Staples 12%
Healthcare 12%
Energy 7%
Technology 6%
Consumer Cyclicals 6%
Capital Goods 3%
Other 4%
[END PLOT POINTS]
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 -- Class II Shares
<TABLE>
<CAPTION>
6/30/00 12/31/99
<S> <C> <C>
Net Asset Value per Share $18.80 $20.82
</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>
$0.220 $ - $1.741
</TABLE>
--------------------------------------------------------------------------------
Performance of a $10,000 Investment -- Class II Shares
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.
[LINE CHART PLOT POINTS]
<TABLE>
<CAPTION>
Pioneer Equity-Income S&P 500
VCT Portfolio* Index
<S> <C> <C>
9/14/99 9500 10000
9/30/99 9161 9632
9625 10235
9411 10430
12/31/99 9344 11064
9012 10500
8294 10289
3/31/00 8959 11315
9167 10967
9474 10726
6/30/00 9306 11014
</TABLE>
[END PLOT POINTS]
Index comparison begins 9/14/99. 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 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.
Class II Shares
Cumulative
Total Returns
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period
<S> <C>
Life-of-Portfolio 1.13%
(9/14/99)
</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.
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.
10
<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. The Portfolio's Class
II Shares were first offered on September 14, 1999.
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 -0.40% 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.
11
<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
-----------
<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
-----------
</TABLE>
12 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>
Energy - 9.2%
Oil (Domestic Integrated) - 1.0%
47,600 Conoco, Inc. $ 1,047,200
-----------
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
-----------
<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
-----------
Utilities - 9.9%
Electric Companies - 5.9%
14,700 Allegheny Energy, Inc. $ 402,413
45,500 Citizens Utilities Co. (Class B)* 784,875
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<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>
Electric Companies - (continued)
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
------------
<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.
14 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) (continued)
--------------------------------------------------------------------------------
<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
------------
<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
------------
<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. 15
<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.
16 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
-----------
<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. 17
<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
<CAPTION>
Shares Value
<S> <C> <C>
Oil & Gas (Drilling & Equipment) - (continued)
7,929 Transocean Offshore Inc. $ 423,705
-----------
$ 2,204,043
-----------
Total Energy $13,157,198
-----------
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
-----------
</TABLE>
18 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) - 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
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
------------
<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
============
<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. 19
<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
-----------
Shares
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
-----------
<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
-----------
</TABLE>
20 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>
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
------------
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
------------
<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. 21
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months 3/1/95
Ended 6/30/00 Year Ended Year Ended Year Ended Year Ended to
(Unaudited) 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C> <C> <C> <C>
CLASS I
Net asset value, beginning of period $ 16.26 $ 14.49 $ 16.15 $ 13.05 $ 11.57 $10.00
-------- -------- -------- -------- ------- ------
Increase (decrease) from investment operations:
Net investment income $ 0.07 $ 0.13 $ 0.12 $ 0.12 $ 0.03 $ 0.02
Net realized and unrealized gain (loss) on investments 0.27 1.77 (0.65) 3.09 1.71 1.69
-------- -------- -------- -------- ------- ------
Net increase (decrease) from investment operations $ 0.34 $ 1.90 $ (0.53) $ 3.21 $ 1.74 $ 1.71
Distributions to shareholders:
Net investment income (0.13) (0.13) (0.10) -- (0.03) (0.02)
Net realized gain (1.09) -- (1.03) (0.11) (0.23) (0.12)
-------- -------- -------- -------- ------- ------
Net increase (decrease) in net asset value $ (0.88) $ 1.77 $ (1.66) $ 3.10 $ 1.48 $ 1.57
-------- -------- -------- -------- ------- ------
Net asset value, end of period $ 15.38 $ 16.26 $ 14.49 $ 16.15 $ 13.05 $11.57
======== ======== ======== ======== ======= ======
Total return* 2.02% 13.13% (4.02)% 24.69% 15.03% 17.13%
Ratio of net expenses to average net assets + 0.78%** 0.76% 0.74% 0.80% 0.93% 1.56%**
Ratio of net investment income to average net assets + 0.66%** 0.77% 0.90% 1.02% 0.37% 0.48%**
Portfolio turnover rate 103%** 91% 81% 50% 41% 46%**
Net assets, end of period (in thousands) $107,284 $120,526 $113,359 $105,476 $48,572 $9,357
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction for
fees paid indirectly:
Net expenses 0.78%** 0.76% 0.74% 0.80% 0.95% 3.95%**
Net investment income (loss) 0.66%** 0.77% 0.90% 1.02% 0.35% (1.91%)**
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 0.78%** 0.76% 0.74% 0.79% 0.92% 1.49%**
Net investment income 0.66%** 0.77% 0.90% 1.03% 0.38% 0.55%**
</TABLE>
Pioneer Growth Shares VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
5/1/00
to
6/30/00
(Unaudited)
<S> <C>
CLASS II (a)
Net asset value, beginning of period $ 21.68
--------
Increase (decrease) from investment operations:
Net investment loss $ (0.01)
Net realized and unrealized gain on investments 0.27
--------
Net increase from investment operations $ 0.26
Distributions to shareholders:
Net realized gain (1.92)
--------
Net decrease in net asset value $ (1.66)
--------
Net asset value, end of period $ 20.02
========
Total return* 1.33%
Ratio of net expenses to average net assets 1.02%**
Ratio of net investment loss to average net assets (0.55%)**
Portfolio turnover rate 57%**
Net assets, end of period (in thousands) $ 89
Ratios assuming no waiver of management fees by PIM:
Net expenses 1.05%**
Net investment loss (0.58%)**
</TABLE>
(a) Class II shares of Pioneer Growth Shares VCT Portfolio were first publicly
offered on May 1, 2000.
* 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.
22 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Real Estate Growth VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended 6/30/00 Year Ended Year Ended
(Unaudited) 12/31/99 12/31/98
<S> <C> <C> <C>
CLASS I
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>
3/31/95
Year Ended Year Ended to
12/31/97 12/31/96 12/31/95
<S> <C> <C> <C>
CLASS I
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
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
5/1/00
to
6/30/00
(Unaudited)
<S> <C>
CLASS II (a)
Net asset value, beginning of period $ 23.28
-------
Increase from investment operations:
Net investment income $ 0.00(b)
Net realized and unrealized gain on investments 0.26
-------
Net increase in net asset value $ 0.26
-------
Distributions to shareholders:
Net investment income (0.04)
Net realized gain (0.13)
-------
Net increase in net asset value $ 0.09
-------
Net asset value, end of period $ 23.37
-------
Total return* 1.13%
Ratio of net expenses to average net assets 0.97%**
Ratio of net investment income to average net assets 0.22%**
Portfolio turnover rate 21%**
Net assets, end of period (in thousands) $ 222
</TABLE>
(a) Class II shares of Pioneer Fund 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.
23
The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Equity-Income VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended 9/14/99
6/30/00 to
(Unaudited) 12/31/99
<S> <C> <C>
CLASS II
Net asset value, beginning of period $20.82 $21.29
------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.19 $ 0.08
Net realized and unrealized loss on investments (0.25) (0.43)
------ ------
Net decrease from investment operations $(0.06) $(0.35)
Distributions to shareholders:
Net investment income (0.22) (0.12)
Net realized gain (1.74) -
------ ------
Net decrease in net asset value $(2.02) $(0.47)
------ ------
Net asset value, end of period $18.80 $20.82
------ ------
Total return* (0.40%) (1.65%)
Ratio of net expenses to average net assets 0.99%**+ 0.96%**
Ratio of net investment income to average net assets 1.70%**+ 1.90%**
Portfolio turnover rate 5%** 23%
Net assets, end of period (in thousands) $2,372 $ 178
Ratios assuming reduction for fees paid indirectly:
Net expenses 0.99%** 0.96%**
Net investment income 1.70%** 1.90%**
</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.
+ Ratio assuming no reduction for fees paid indirectly.
24 The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
This page is for your notes.
25
<PAGE>
Pioneer Variable Contracts Trust PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
BALANCE SHEETS 6/3/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pioneer Pioneer Pioneer Pioneer
Mid-Cap Growth Real Estate Pioneer Equity
Value Shares Growth Fund Income
VCT Portfolio VCT Portfolio VCT Portfolio VCT Portfolio VCT Portfolio
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in securities, at value (cost
$99,371,449, $125,289,873,
$27,092,890, $186,964,388 and
$157,659,237, respectively) $106,414,890 $132,983,891 $28,997,757 $216,120,287 $179,057,961
Temporary cash investments
(at amortized cost) 3,624,000 1,365,000 - 685,000 -
Cash 883 3,295 230,250 1,019 -
Receivables -
Investment securities sold 830,019 988,167 299,101 - 590,451
Fund shares sold 15,996 2,488 5,524 96,534 60,820
Dividends, interest and foreign taxes withheld 106,127 31,145 216,547 180,433 332,930
Other 6,256 455 316 368 801
------------ ------------ ----------- ------------ ------------
Total assets $110,998,171 $135,374,441 $29,749,495 $217,083,641 $180,042,963
------------ ------------ ----------- ------------ ------------
LIABILITIES:
Payables -
Investment securities purchased $ 2,242,060 $ - $ - $ 236,690 $ -
Fund shares repurchased 69,758 379,753 28,710 20,452 368,885
Due to bank - - - - 803,055
Due to affiliates 64,257 76,654 23,715 120,944 105,591
Accrued expenses 47,412 26,412 18,005 38,196 35,523
------------ ------------ ----------- ------------ ------------
Total liabilities $ 2,423,487 $ 482,819 $ 70,430 $ 416,282 $ 1,313,054
------------ ------------ ----------- ------------ ------------
NET ASSETS:
Paid-in capital $100,136,346 $130,394,467 $34,085,699 $179,143,353 $152,768,950
Accumulated net investment income (loss) 608,162 (79,989) 75,001 153,464 642,879
Accumulated net realized gain (loss) 786,735 (3,116,874) (6,386,502) 8,214,643 3,919,356
Net unrealized gain on:
Investments 7,043,441 7,694,018 1,904,867 29,155,899 21,398,724
------------ ------------ ----------- ------------ ------------
Total net assets $108,574,684 $134,891,622 $29,679,065 $216,667,359 $178,729,909
------------ ------------ ----------- ------------ ------------
NET ASSET VALUE PER SHARE:
Class I:
(Unlimited number of shares authorized)
Net assets $107,283,703 $134,802,190 $29,679,065 $216,444,982 $176,358,009
Shares outstanding 6,975,711 6,780,069 2,263,988 9,257,440 9,426,166
Net asset value per share $ 15.38 $ 19.88 $ 13.11 $ 23.38 $ 18.71
============ ============ =========== ============ ============
Class II:
(Unlimited number of shares authorized)
Net assets $ 1,290,981 $ 89,432 $ 222,377 $ 2,371,900
Shares outstanding 83,993 4,467 9,514 126,198
Net asset value per share $ 15.37 $ 20.02 $ 23.37 $ 18.80
============ ============ ============ ============
</TABLE>
26 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Variable Contracts Trust PIONEER VARIABLE CONTRACTS TRUST
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS 6/30/00 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pioneer Pioneer Pioneer Pioneer
Mid-Cap Growth Real Estate Pioneer Equity-Income
Value Shares Growth Fund VCT VCT Portfolio
VCT Portfolio VCT Portfolio Portfolio Portfolio Portfolio
Six Months Six Months Six Months Six Months Six Months
Ended Ended Ended Ended Ended
6/30/00 6/30/99 6/30/99 6/30/00 6/30/99
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $0,
$465, $1,646, $9,818, and $0, respectively) $ 672,963 $ 283,002 $ 905,137 $ 1,549,630 $ 2,996,086
Interest 171,260 139,607 25,585 89,933 95,358
---------- ------------ ---------- ------------ ------------
Total investment income $ 844,223 $ 422,609 $ 930,722 $ 1,639,563 $ 3,091,444
---------- ------------ ---------- ------------ ------------
EXPENSES:
Management fees $ 379,779 $ 519,914 $ 113,179 $ 679,237 $ 633,686
Transfer agent fees 348 219 408 364 182
Distribution fees (Class II) 283 35 - 40 756
Administrative fees 15,470 14,378 15,707 15,470 21,924
Custodian fees 40,053 22,342 16,893 34,953 22,393
Professional fees 8,441 6,370 7,644 7,462 10,010
Printing 7,546 4,368 2,912 3,822 9,828
Fees and expenses of nonaffiliated trustees 182 182 427 235 182
Miscellaneous 5,398 5,791 4,265 4,827 4,538
---------- ------------ ---------- ------------ ------------
Total expenses $ 457,500 $ 573,599 $ 161,435 $ 746,410 $ 703,499
Less management fees waived and
expenses reimbursed by Pioneer
Investment Management, Inc. - (70,767) - - -
Less fees paid indirectly (290) (234) (2,151) (555) (1,233)
---------- ------------ ---------- ------------ ------------
Net expenses $ 457,210 $ 502,598 $ 159,284 $ 745,855 $ 702,266
---------- ------------ ---------- ------------ ------------
Net investment income (loss) $ 387,013 $ (79,989) $ 771,438 $ 893,708 $ 2,389,178
---------- ------------ ---------- ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) from investments $1,728,490 $ (3,093,509) $ (783,854) $ 8,530,153 $ 3,985,100
Change in net unrealized gain or loss
from investments 581,833 1,333,074 3,991,933 (1,148,521) (8,459,387)
---------- ------------ ---------- ------------ ------------
Net gain (loss) on investments $2,310,323 $ (1,760,435) $3,208,079 $ 7,381,632 $ (4,474,287)
---------- ------------ ---------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations $2,697,336 $ (1,840,424) $3,979,517 $ 8,275,340 $ (2,085,109)
========== ============ ========== ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements. 27
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS 6/3/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pioneer Pioneer
Mid-Cap Growth
Value VCT Portfolio Shares 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) $ 387,013 $ 883,670 $ (79,989) $ (103,420)
Net realized gain (loss) on investments 1,728,490 7,085,784 (3,093,509) 12,406,777
Change in net unrealized gain or loss on investments 581,833 5,641,059 1,333,074 (4,347,904)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from
operations $ 2,697,336 $ 13,610,513 $ (1,840,424) $ 7,955,453
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class I $ (816,800) $ (973,218) $ - $ (32,449)
Class II (9,592) - - -
Net realized gain
Class I (7,092,614) - (11,952,406) (196,043)
Class II (83,291) - (7,803) -
Tax return of capital
Class I - - - -
------------ ------------ ------------ ------------
Total distributions to shareholders $ (8,002,297) $ (973,218) $(11,960,209) $ (228,492)
------------ ------------ ------------ ------------
FROM FUND SHARE TRANSACTION
Net proceeds from sale of shares $ 9,810,922 $ 16,620,793 $ 9,669,992 $ 83,962,925
Reinvestment of distributions 8,002,297 973,218 11,960,209 228,492
Cost of shares repurchased (24,459,797) (23,064,581) (35,668,278) (14,858,324)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets resulting from
fund share transactions $ (6,646,578) $ (5,470,570) $(14,038,077) $ 69,333,093
------------ ------------ ------------ ------------
Net increase (decrease) in net assets $(11,951,539) $ 7,166,725 $(27,838,710) $ 77,060,054
------------ ------------ ------------ ------------
NET ASSETS:
Beginning of period 120,526,223 113,359,498 162,730,332 85,670,278
------------ ------------ ------------ ------------
End of period $108,574,684 $120,526,223 $134,891,622 $162,730,332
============ ============ ============ ============
Accumulated net investment income (loss), end of period $ 608,162 $ 1,047,541 $ (79,989) $ -
============ ============ ============ ============
</TABLE>
28 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Pioneer Pioneer
Real Estate Pioneer Fund Equity-Income
Growth VCT Portfolio VCT Portfolio VCT Portfolio
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
6/30/00 Ended 6/30/00 Ended 6/30/00 Ended
(Unaudited) 12/31/99 (Unaudited) 12/31/99 (Unaudited) 12/31/99
<S> <C> <C> <C> <C> <C>
$ 771,438 $ 1,580,958 $ 893,708 $ 1,260,568 $ 2,389,178 $ 4,495,087
(783,854) (5,736,257) 8,530,153 943,556 3,985,100 15,265,131
3,991,933 2,877,643 (1,148,521) 20,385,097 (8,459,387) (17,458,854)
------------ ------------- ------------- ------------ ------------- -------------
$ 3,979,517 $ (1,277,656) $ 8,275,340 $ 22,589,221 $ (2,085,109) $ 2,301,364
------------ ------------- ------------- ------------ ------------- -------------
$ (775,789) $ (1,455,528) $ (739,870) $ (1,272,868) $ (2,222,183) $ (4,351,482)
- - (374) - (13,307) (1,074)
- (296,057) (1,229,510) (166,945) (15,066,697) (6,090,521)
- - (1,252) - (187,542) -
- (188,957) - - - -
------------ ------------- ------------- ------------ ------------- -------------
$ (775,789) $ (1,940,542) $ (1,971,006) $ (1,439,813) $ (17,489,729) $ (10,443,077)
------------ ------------- ------------- ------------ ------------- -------------
$ 2,118,505 $ 4,899,901 $ 19,521,835 $100,763,579 $ 4,254,118 $ 34,058,957
775,789 1,940,542 1,971,006 1,439,813 17,489,729 10,443,077
(4,736,796) (10,883,722) (16,057,152) (8,285,561) (49,996,091) (13,779,546)
------------ ------------- ------------- ------------ ------------- -------------
$ (1,842,502) $ (4,043,279) $ 5,435,689 $ 93,917,831 $ (28,252,244) $ 30,722,488
------------ ------------- ------------- ------------ ------------- -------------
$ 1,361,226 $ (7,261,477) $ 11,740,023 $115,067,239 $ (47,827,082) $ 22,580,775
------------ ------------- ------------- ------------ ------------- -------------
28,317,839 35,579,316 204,927,336 89,860,097 226,556,991 203,976,216
------------ ------------- ------------- ------------ ------------- -------------
$ 29,679,065 $ 28,317,839 $ 216,667,359 $204,927,336 $ 178,729,909 $ 226,556,991
============ ============= ============= ============ ============= =============
$ 75,001 $ 79,352 $ 153,464 $ - $ 642,879 $ 489,191
============ ============= ============= ============ ============= =============
</TABLE>
The accompanying notes are an integral part of these financial statements. 29
<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 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 financial statements included herein are for Mid-Cap Value Portfolio,
Growth Shares Portfolio, Real Estate Growth Portfolio, Fund Portfolio, and
Equity-Income Portfolio (collectively, the Portfolios, individually the
Portfolio). The investment objective of Mid-Cap Value Portfolio and Growth
Shares Portfolio is to 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.
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. 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 and interest income, including interest on income bearing
cash accounts, is recorded on the accrual basis. 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.
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.
The Real Estate Growth Portfolio has concentrations in certain asset types
which may subject the Portfolio to additional risks. Further description of
these risks is included in the Trust's prospectus.
B. Federal Income 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.
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
30
<PAGE>
Pioneer Variable Contracts Trust
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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 carryforwards are available to offset future realized capital
gains. At December 31, 1999, Real Estate Growth Portfolio had a capital
loss carryforward of $4,680,724, which will expire in 2007 if not utilized.
C. Portfolio Shares
The Portfolios record sales and repurchases of their shares as of trade
date. Dividends and distributions to shareholders are recorded on the
ex-dividend date.
D. 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.
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>
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%
</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
Portfolios' 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>
Growth Shares Portfolio 1.25%
Real Estate Growth Portfolio 1.25%
Fund Portfolio 1.25%
</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.
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 assets.
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NOTES TO FINANCIAL STATEMENTS 6/30/00 (UNAUDITED) (continued)
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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>
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
</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>
Mid-Cap Value Portfolio $ 109
Real Estate Growth Portfolio 71
Fund Portfolio 69
</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>
Mid-Cap Value Portfolio $ 236
Growth Shares Portfolio 26
Fund Portfolio 35
Equity-Income Portfolio 389
</TABLE>
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>
Mid-Cap Value Portfolio $ 290
Growth Shares Portfolio 234
Real Estate Growth Portfolio 2,151
Fund Portfolio 555
Equity-Income Portfolio 1,233
</TABLE>
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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
Tax Cost Appreciation Depreciation Appreciation
<S> <C> <C> <C> <C>
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
</TABLE>
7. Portfolio Transactions
The cost of purchases and the proceeds from sales of investments other than
U.S. Government obligations and temporary cash investments for the six months
ended June 30, 2000 were as follows:
<TABLE>
<CAPTION>
Portfolio Purchases Sales
<S> <C> <C>
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
</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>
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
---------- -------------
</TABLE>
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NOTES TO FINANCIAL STATEMENTS 6/30/00 (UNAUDITED) (continued)
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<TABLE>
<CAPTION>
'00 Shares '00 Amount
(Unaudited) (Unaudited) '99 Shares '99 Amount
<S> <C> <C> <C> <C>
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
-------- ------------- --------- -------------
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
---------- ------------- --------- -------------
</TABLE>
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[PIONEER LOGO]
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, which includes
more information about charges and expenses. Please read the prospectus
carefully before you invest or send money.
8746-00-0800
