<PAGE>
[PIONEER LOGO]
Pioneer Variable Contracts Trust
Pioneer Mid-Cap Value VCT Portfolio
SEMIANNUAL REPORT
June 30, 2000
<PAGE>
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
Schedule of Investments
Pioneer Mid-Cap Value VCT Portfolio 4
Financial Statements 7
Notes to Financial Statements 11
</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%
Utilities 10%
Energy 10%
Consumer Staples 9%
Healthcare 9%
Capital Goods 8%
Basic Materials 5%
Communication Services 2%
[END PLOT POINTS]
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Five Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C>
-------------------------------------------------------------
1. NCR Corp. 4.87%
-------------------------------------------------------------
2. Imation Corp. 3.73
-------------------------------------------------------------
3. Columbia/HCA Healthcare Corp. 3.53
-------------------------------------------------------------
4. Financial Security Assurance Holdings, Ltd. 2.78
-------------------------------------------------------------
5. Viacom, Inc. (Class B) (Non-voting) 2.53
-------------------------------------------------------------
</TABLE>
Holdings will vary for other periods.
--------------------------------------------------------------------------------
Prices and Distributions -- Class II Shares
<TABLE>
<CAPTION>
6/30/00 5/1/00
<S> <C> <C>
Net Asset Value per Share $ 15.37 $ 16.89
</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>
$ 0.125 $ - $ 1.089
</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 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 Mid-Cap Value S&P 500
VCT Portfolio* Index
<S> <C> <C>
5/1/00 10000 10000
5/31/00 10053 9675
6/30/00 9815 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
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 Return
(As of June 30, 2000)
--------------------------------------------------------------------------------
Net Asset Value*
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Period
Life-of-Portfolio -1.85%
(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.
2
Past performance does not guarantee future results. Return and share prices
fluctuate so that your investment, when redeemed, may be worth more or less than
its original cost.
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
[BEGIN SIDE BAR]
On May 1, 2000, the name of Capital Growth Portfolio changed to Pioneer Mid-Cap
Value VCT Portfolio.
Mid-capitalization stocks, while offering the potential for higher returns, may
be subject to greater short-term price fluctuation than securities of larger
companies.
[END SIDE BAR]
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. 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 did the Portfolio perform?
A: For the two-month period ended June 30, 2000, the Portfolio returned -1.85%,
at net asset value. In comparison, the Standard & Poor's 500 Index returned
0.43% for the same period.
Q: What factors influenced the Portfolio's performance?
A: The biggest factors that helped performance were a healthy weighting in
energy companies and a relative underweighting in technology stocks. In
energy, Portfolio investments in oil, gas and service companies performed
well, while the technology sector in general fell into a sharp correction
starting in mid-March.
Mergers and acquisition activity benefited the Portfolio when larger
companies acquired five portfolio holdings: ETEC Systems; Financial Security
Assurance Holdings, Inc.; 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 19% of net assets,
respectively.
Q: The Portfolio's name changed in May from Capital Growth Portfolio to Pioneer
Mid-Cap Value VCT Portfolio. Why was the name changed?
A: We believed the new name better describes our investment approach. Our focus
is on mid-cap companies, and our approach is value-oriented: investing in
what we believe are reasonably priced companies. We attempt to buy solid
companies with strong fundamentals, but we also pay attention to valuation to
ensure we pay appropriate prices.
Q: What is your outlook for mid-cap value stocks?
A: We are optimistic about the mid-cap value sector and think it has the
potential to be one of the better performing sectors. This is an area that
has underperformed for a number of years and has been very much overlooked.
And yet, if the economy slows down, we think investors will be served well
investing in companies with the types of resources, histories, market
positions, experienced managements, credit lines and established distribution
networks that many mid-cap companies possess. We believe the recent good
performance of mid-cap value stocks is not a short-term phenomenon.
3
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Pioneer Mid-Cap Value VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
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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
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Household Furnishings & Appliances - 0.7%
31,400 Ethan Allen Interiors, Inc. $ 753,600
-----------
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 Ann Taylor 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>
4 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
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SCHEDULE OF INVESTMENTS 6/30/00 (unaudited) (continued)
--------------------------------------------------------------------------------
<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
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare (Hospital Management) - 6.3%
123,650 Columbia/HCA Healthcare Corp. $ 3,755,869
130,700 Health Management Associates, Inc.* 1,707,269
22,000 Lincare Holdings Inc.* 541,750
12,000 Wellpoint Health Networks Inc.* 869,250
-----------
$ 6,874,138
-----------
Healthcare (Medical Products/Supplies) - 0.7%
13,000 Boston Scientific Corp.* $ 285,188
25,000 Sybron International Corp.* 495,313
-----------
$ 780,501
-----------
Total Healthcare $ 9,469,313
-----------
Technology - 19.8%
Communications Equipment - 1.0%
8,000 Alcatel (A.D.R.) $ 532,000
16,000 Andrew Corp.* 537,000
-----------
$ 1,069,000
Computers (Hardware) - 5.5%
17,000 Gateway 2000 Inc.* $ 964,750
133,000 NCR Corp.* 5,178,688
-----------
$ 6,143,438
-----------
Computers (Networking) - 3.5%
29,000 Cabletron Systems, Inc.* $ 732,250
10,500 Lycos, Inc.* 567,000
12,500 Seagate Technology Inc.* 687,500
112,000 Storage Technology Corp.* 1,225,000
14,500 Xircom Inc.* 688,750
-----------
$ 3,900,500
-----------
Computers (Software & Services) - 0.9%
4,000 Storage Networks, Inc.* $ 361,000
17,000 Synopsys, Inc.* 587,563
-----------
$ 948,563
-----------
Electronics (Semiconductors) - 0.8%
37,100 Adaptec, Inc.* $ 844,024
-----------
Photography/Imaging - 4.4%
15,000 Eastman Kodak Co. $ 892,500
135,000 Imation Corp.* 3,965,627
-----------
$ 4,858,127
-----------
Services (Computer Systems) - 2.6%
8,000 Investment Technology Group, Inc.* $ 340,500
56,000 Keane, Inc.* 1,211,000
41,000 SunGard Data Systems, Inc.* 1,271,000
-----------
$ 2,822,500
-----------
Services (Data Processing) - 1.1%
14,500 Equifax Inc. $ 380,625
16,500 First Data Corp. 818,813
-----------
$ 1,199,438
-----------
Total Technology $21,785,590
-----------
Utilities - 9.9%
Electric Companies - 5.9%
14,700 Allegheny Energy, Inc. $ 402,413
45,500 Citizens Utilities Co. (Class B)* 784,875
46,100 CMS Energy Corp. 1,019,963
</TABLE>
The accompanying notes are an integral part of these financial statements. 5
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
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SCHEDULE OF INVESTMENTS 6/30/00 (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Electric Companies - (continued)
35,600 DPL, Inc. $ 780,975
17,000 DQE, Inc. 671,500
25,100 DTE Energy Co. 767,119
11,000 Kansas City Power & Light Co. 247,500
29,000 NSTAR 1,179,934
21,000 Houston Industries, Inc. 620,813
------------
$ 6,475,092
------------
Natural Gas - 4.0%
17,000 Dynegy Inc. $ 1,161,313
35,000 El Paso Energy Corp. 1,782,813
35,000 KeySpan Energy Corp. 1,076,250
20,900 Questar Corp. 404,937
------------
$ 4,425,313
------------
Total Utilities $ 10,900,405
------------
TOTAL COMMON STOCKS
(Cost $99,371,449) $106,414,890
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 3.3%
Commercial Paper - 3.3%
$3,624,000 Household Finance Corp., 6.88%, 7/3/00 $ 3,624,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $3,624,000) $ 3,624,000
------------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $102,995,449) $110,038,890
------------
</TABLE>
* Non-income producing security.
6 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio PIONEER VARIABLE CONTRACTS TRUST
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FINANCIAL HIGHLIGHTS 6/30/00 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
5/1/00
to
6/30/00
CLASS II(a) (unaudited)
<S> <C>
Net asset value, beginning of period $ 16.89
--------
Increase (decrease) from investment operations:
Net investment income $ 0.02
Net realized and unrealized loss on investments (0.32)
--------
Net decrease from investment operations $ (0.30)
Distributions to shareholders:
Net investment income (0.13)
Net realized gain (1.09)
--------
Net decrease in net asset value $ (1.52)
--------
Net asset value, end of period $ 15.37
--------
Total return* (1.85)%
Ratio of net expenses to average net assets 1.03%**
Ratio of net investment income to average net assets 0.47%**
Portfolio turnover rate 103%**
Net assets, end of period (in thousands) $ 1,291
</TABLE>
(a) Class II shares were first publicly offered on May 1, 2000.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
The accompanying notes are an integral part of these financial statements. 7
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio
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BALANCE SHEET 6/30/00 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (cost $99,371,449) $ 106,414,890
Temporary cash investment, at amortized cost 3,624,000
Cash 883
Receivables -
Investment securities sold 830,019
Fund shares sold 15,996
Dividends and interest 106,127
Other 6,256
-------------
Total assets $ 110,998,171
-------------
LIABILITIES:
Payables -
Investment securities purchased $ 2,242,060
Fund shares repurchased 69,758
Due to affiliates 64,257
Accrued expenses 47,412
-------------
Total liabilities $ 2,423,487
-------------
NET ASSETS:
Paid-in capital $ 100,136,346
Accumulated undistributed net investment income 608,162
Accumulated undistributed net realized gain on investments 786,735
Net unrealized gain on investments 7,043,441
-------------
Total net assets $ 108,574,684
-------------
NET ASSET VALUE PER SHARE:
Class I:
(Unlimited number of shares authorized)
Net assets $ 107,283,703
Shares outstanding 6,975,711
Net asset value per share $ 15.38
-------------
Class II:
(Unlimited number of shares authorized)
Net assets $ 1,290,981
Shares outstanding 83,993
Net asset value per share $ 15.37
-------------
</TABLE>
8 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
6/30/00
<S> <C>
INVESTMENT INCOME:
Dividends $ 672,963
Interest 171,260
----------
$ 844,223
----------
EXPENSES:
Management fees $ 379,779
Transfer agent fees 348
Distribution fees--Class II 283
Administrative fees 15,470
Custodian fees 40,053
Professional fees 8,441
Printing 7,546
Fees and expenses of nonaffiliated trustees 182
Miscellaneous 5,398
----------
Total expenses $ 457,500
Less fees paid indirectly (290)
----------
Net expenses $ 457,210
----------
Net investment income $ 387,013
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $1,728,490
Change in net unrealized gain on investments 581,833
----------
Net gain on investments $2,310,323
----------
Net increase in net assets resulting from operations $2,697,336
----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year
Ended 6/30/00 Ended
(unaudited) 12/31/99
<S> <C> <C>
FROM OPERATION
Net investment income $ 387,013 $ 883,670
Net realized gain on investments 1,728,490 7,085,784
Change in net unrealized gain on investments 581,833 5,641,059
------------- -------------
Net increase in net assets resulting from operations $ 2,697,336 $ 13,610,513
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class I $ (816,800) $ (973,218)
Class II (9,592) -
Net realized gain
Class I (7,092,614) -
Class II (83,291) -
------------- -------------
Total distributions to shareholders $ (8,002,297) $ (973,218)
------------- -------------
FROM FUND SHARE TRANSACTION
Net proceeds from sale of shares $ 9,810,922 $ 16,620,793
Reinvestment of distributions 8,002,297 973,218
Cost of shares repurchased (24,459,797) (23,064,581)
------------- -------------
Net decrease in net assets resulting from
fund share transactions $ (6,646,578) $ (5,470,570)
------------- -------------
Net increase (decrease) in net assets $ (11,951,539) $ 7,166,725
NET ASSETS:
Beginning of period 120,526,223 113,359,498
------------- -------------
End of period $ 108,574,684 $ 120,526,223
------------- -------------
Accumulated undistributed net investment income, end of period $ 608,162 $ 1,047,541
------------- -------------
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio
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NOTES TO FINANCIAL STATEMENTS 6/30/00 (unaudited)
--------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Variable Contracts Trust (the Trust) is a Delaware business trust
registered under the Investment Company Act of 1940 as an open-end management
investment company. The Trust consists of fifteen separate portfolios
(collectively, the Portfolios) 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 the Mid-Cap Value Portfolio
(the Portfolio). The investment objective of the Portfolio is to seek capital
appreciation.
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. The net asset value
for the Portfolio is 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 value, 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.
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 the 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.
C. Portfolio Shares
The Portfolio records sales and repurchases of its 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 Portfolio, 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.
11
<PAGE>
Pioneer Mid-Cap Value VCT Portfolio
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/00 (unaudited) (continued)
--------------------------------------------------------------------------------
2. Management Agreement
PIM manages the Portfolio, and is a wholly owned subsidiary of The Pioneer
Group, Inc. (PGI). Management fees are calculated daily at the annual rate of
0.65% of the Portfolio's average daily net assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Portfolio. At June 30, 2000, $63,912 was payable to
PIM related to management fees, administrative fees, and certain other
services.
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. Included in due to affiliates is $109 in transfer agent
fees payable to PSC at June 30, 2000.
4. Distribution Plan
The Portfolio has adopted a plan of distribution for Class II shares in
accordance with Rule 12b-1 under the Investment Company Act of 1940. Under the
plan, the Portfolio pays to Pioneer Funds Distributor, Inc. (PFD), the
principal underwriter of the Trust and an indirect subsidiary of PGI, a
distribution fee of 0.25% of the average daily net assets attributable to Class
II shares. Included in due to affiliates is $236 in distribution fees payable
to PFD at June 30, 2000.
5. Expense Offsets
The Trust has entered into certain expense offset arrangements resulting in a
reduction in the Portfolio's total expenses. For the six months ended June 30,
2000, the Portfolio's expenses were reduced by $290, under such arrangements.
6. Aggregate Unrealized Appreciation and Depreciation
At June 30, 2000, the Portfolio's aggregate unrealized appreciation and
depreciation based on cost of $105,013,238 for federal income tax purposes were
$15,461,892 and $10,436,240, respectively, resulting in net appreciation of
$5,025,652.
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 $56,823,161 and $67,936,693, respectively.
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>
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
---------- -------------
</TABLE>
12
<PAGE>
[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
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.
8747-00-0800
