November 22, 2000
SUPPLEMENT TO THE PROSPECTUSES FOR
PIONEER VARIABLE CONTRACTS TRUST
DATED MAY 1 AND OCTOBER 5, 2000
(SUPERSEDES APPLICABLE SUPPLEMENTS DATED MAY 26, JULY 24 AND OCTOBER 25, 2000)
The following supplements the information presented under the corresponding
section of the prospectus.
MANAGEMENT
The next paragraph replaces the section entitled "Pioneer Group":
PIONEER GLOBAL ASSET MANAGEMENT
Pioneer is part of Pioneer Global Asset Management, the asset management
subsidiary of UniCredito Italiano S.p.A., one of the largest banking groups in
Italy. Pioneer Global Asset Management provides investment management and
financial services to mutual funds, institutional and other clients. As of
October 25, 2000, Pioneer Global Asset Management has over $100 billion in
assets under management worldwide, including over $23 billion in assets under
management by Pioneer.
THE INVESTMENT ADVISER
Pioneer's main office is at 60 State Street, Boston, Massachusetts 02109.
The firm's U.S. mutual fund investment history includes creating in 1928 one of
the first mutual funds.
PORTFOLIO MANAGER
Pioneer's day-to-day managers and investment and research teams may draw upon
the research and investment management expertise of Pioneer's affiliate, Pioneer
Investment Management Limited.
PROSPECTUSES OFFERING PIONEER REAL ESTATE GROWTH VCT PORTFOLIO:
PORTFOLIO MANAGER
Effective July 17, 2000, day-to-day management of Pioneer Real Estate Growth VCT
Portfolio is the responsibility of Jeffrey P. Caira. Mr. Caira joined Pioneer in
July 2000 as a vice president and analyst and has been an investment
professional since 1998 with a real estate background since 1983. Prior to
joining Pioneer, Mr. Caira was a vice president and senior equity analyst for
Ferris, Baker Watts Incorporated until 2000 and a vice president and senior
equity research analyst for Tucker Anthony from 1998 to 2000. Prior to 1998, he
was a project director for Winn Development Company.
Mr. Caira is supervised by Theresa A. Hamacher, chief investment officer of
Pioneer. She joined Pioneer in 1997 and has been an investment professional
since 1984, most recently as chief investment officer at another investment
adviser.
PROSPECTUS OFFERING PIONEER SCIENCE & TECHNOLOGY VCT PORTFOLIO:
PORTFOLIO MANAGER
Thomas Crowley is the portfolio's lead portfolio manager.
<PAGE>
PROSPECTUS OFFERING PIONEER AMERICA INCOME, HIGH YIELD, MONEY MARKET AND
STRATEGIC INCOME VCT PORTFOLIOS:
PORTFOLIO MANAGER
Sherman Russ intends to retire from Pioneer in December 2000. Kenneth Taubes
remains the head of Pioneer's fixed income team.
PROSPECTUSES OFFERING PIONEER EUROPE VCT PORTFOLIO:
PORTFOLIO MANAGER
Effective December 1, 2000, day-to-day management of the portfolio is the
responsibility of a team of portfolio managers and analysts supervised by
Theresa A. Hamacher, chief investment officer of Pioneer. Ms. Hamacher joined
Pioneer in 1997 and has been an investment professional since 1984, most
recently as chief investment officer at another investment adviser. This team
provides research for the fund and other Pioneer mutual funds with similar
objectives or styles. Ms. Hamacher, assisted by Michael P. Bradshaw, is
responsible for monitoring the portfolio and implementing the team's decisions.
Mr. Bradshaw, a vice president of Pioneer, joined Pioneer in 1997 and has been
an investment professional since 1994. Prior to joining Pioneer, Mr. Bradshaw
was a research associate for CIBC Wood Gundy Securities, Inc. from 1995 to 1997
and a financial analyst for Canadian Imperial Bank of Commerce from 1994 to
1995. The team may draw upon the research and investment management expertise of
Pioneer's affiliate, Pioneer Investment Management Limited.
PROSPECTUSES OFFERING PIONEER GROWTH SHARES VCT PORTFOLIO:
PORTFOLIO MANAGER
Effective November 13, 2000, day-to-day management of the portfolio is the
responsibility of a team of portfolio managers and analysts supervised by
Theresa A. Hamacher, chief investment officer of Pioneer. Ms. Hamacher joined
Pioneer in 1997 and has been an investment professional since 1984, most
recently as chief investment officer at another investment adviser. This team
provides research for the fund and other Pioneer mutual funds with similar
objectives or styles. The analysts on the team are responsible for stock
selection. Eric J. Weigel, a senior vice president of Pioneer, is responsible
for monitoring the portfolio and implementing the team's decisions. Mr. Weigel
joined Pioneer in 1998 and has been an investment professional since 1989. Prior
to joining Pioneer, Mr. Weigel was head of global asset allocation and portfolio
manager at Chancellor LGT Asset Management from 1994 to 1997 and managed
domestic and international portfolios for INVESCO Management and Research from
1993 to 1994. The team may draw upon the research and investment management
expertise of Pioneer's affiliate, Pioneer Investment Management Limited.
9489-00-1100
(C) Pioneer Funds Distributor, Inc.
<PAGE>
PIONEER EUROPE VCT PORTFOLIO
A PORTFOLIO OF PIONEER VARIABLE CONTRACTS TRUST
CLASS II SHARES PROSPECTUS
MAY 1, 2000
<TABLE>
<CAPTION>
INTRODUCTION PORTFOLIO
<S> <C>
Pioneer Variable Contracts Trust is an open-end
investment management company that currently consists STRATEGIC FOCUS
of fifteen distinct portfolios. Pioneer Investment
Management, Inc. is the investment adviser to each EUROPE invests in European issuers for long-term
portfolio. Class II shares of Pioneer Europe VCT growth of capital.
Portfolio are offered through this prospectus. Shares
of the portfolios are offered primarily to insurance CONTENTS
companies to fund the benefits under variable annuity
and variable life insurance contracts (Variable Basic information about the portfolio...........2
Contracts) issued by their companies. You may obtain
certain tax benefits by purchasing a Variable Common portfolio investment policies............5
Contract.
Management......................................5
Each portfolio has its own distinct investment
objective and policies. In striving to meet its
objective, each portfolio will face the challenges of Distributions and
changing business, economic and market conditions. taxes...........................................6
Each portfolio offers different levels of potential
return and risks. These risks are discussed in the Shareholder
description of each portfolio. information.....................................6
No single portfolio constitutes a complete investment An investment in a portfolio is not a bank deposit
plan. Each portfolio's share price, yield and and is not insured or guaranteed by the Federal
total return will fluctuate and an investment in Deposit Insurance Corporation or any other government
a portfolio may be worth more or less than the agency.
original cost when shares are redeemed.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR
Each portfolio complies with various insurance ANY STATE SECURITIES AGENCY HAS APPROVED THE
regulations. Please read your insurance company's PORTFOLIOS' SHARES OR DETERMINED WHETHER THIS
separate account prospectus for more specific PROSPECTUS IS ACCURATE OR COMPLETE. ANY
information relating to insurance regulations and REPRESENTATION TO THE CONTRARY IS A CRIME.
instructions on how to invest among the portfolios
through a Variable Contract.
</TABLE>
<PAGE>
Basic information about Pioneer Europe VCT Portfolio
INVESTMENT OBJECTIVE Long-term growth of capital.
PRINCIPAL INVESTMENT STRATEGIES
The portfolio invests primarily in equity securities of European issuers. For
purposes of the portfolio's investment policies, equity investments include
securities with common stock characteristics such as preferred stocks,
depositary receipts, warrants and debt securities convertible into common stock.
Normally, the fund invests at least 80% of its total assets in equity securities
of European issuers. The portfolio may also purchase forward foreign currency
exchange contracts in European currencies in connection with its investments.
The portfolio uses a "growth at a reasonable price" style of management. The
portfolio seeks to invest in companies with above average potential for earnings
and revenue growth that are also trading at attractive market valuations. To
select stocks, Pioneer, the portfolio's investment adviser, employs due
diligence and fundamental research, an evaluation of the issuer based on its
financial statements and operations. Pioneer relies on the knowledge, experience
and judgment of its own staff who have access to a wide variety of research.
Factors Pioneer looks for in selecting investments include:
|X| Favorable expected returns relative to perceived risk
|X| Low market valuations relative to earnings forecast, book value, cash flow
and sales
|X| Issuer's industry has strong fundamentals, such as increasing or sustainable
demand and barriers to entry
|X| Increasing earnings forecast
PRINCIPAL RISKS OF INVESTING IN THE PORTFOLIO
Even though the portfolio seeks long-term capital growth, you could lose money
on your investment or not make as much as if you invested elsewhere if:
|X| European stock markets go down or perform poorly relative to U.S. markets
(this risk may be greater in the short term)
|X| Securities of European issuers or growth stocks fall out of favor with
investors
|X| The portfolio's investments do not have the growth potential originally
expected
Investing in developed European issuers involves unique risks compared to
investing in securities of U.S. issuers. These risks may include:
|X| Less information about some European issuers or markets may be available due
to less rigorous disclosure and accounting standards or regulatory practices
|X| Many European markets are smaller, less liquid and more volatile than the
U.S. markets. In a changing market, Pioneer may not be able to sell the
portfolio's investments in amounts and at prices Pioneer considers
reasonable
|X| The economies of European countries may grow at slower rates than expected
or suffer a downturn or recession
|X| The U.S. dollar may appreciate against European currencies or European
countries may impose restrictions on currency conversion or trading
|X| Economic and Monetary Union (EMU) and the introduction of a single European
currency may increase the volatility of European markets
[text box: magnifier icon]
EUROPEAN ISSUERS A European issuer:
|X| Is organized and has a principal business office in a European country;
|X| Derives at least 50% of its total revenues from business transacted in
Europe; or
|X| Has equity securities that trade principally on a stock exchange in
Europe.
[end text box]
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THE PORTFOLIO'S PAST PERFORMANCE
The chart shows the performance of the portfolio's Class I shares for each full
calendar year since the portfolio's inception in October 30, 1998. The chart
does not reflect any fees and expenses with respect to a Variable Contract. Such
fees and expenses will reduce your return. Although Class II shares invest in
the same portfolio investments as Class I shares, Class II shares would have the
same investment results except for the difference in class expenses. Class II
shares are subject to a 0.25% distribution fee, which Class I shares do not pay.
Consequently, the performance of Class II shares will be lower.
THE PORTFOLIO'S HIGHEST CALENDAR QUARTERLY RETURN WAS 47.16% (12/31/98 TO
3/31/99).
THE PORTFOLIO'S LOWEST CALENDAR QUARTERLY RETURN WAS 1.34% (6/30/99 TO 9/30/99).
ANNUAL RETURN CLASS I SHARES
(Year ended December 31)
[chart]
'99 28.47
[end chart]
COMPARISON WITH MSCI EUROPE INDEX
The table shows the average annual total returns of the portfolio's Class I
shares over time and compares these returns to the returns of the Morgan Stanley
Capital International (MSCI) Europe Index. This index is a widely recognized
capitalization-weighted index of stocks traded in 15 individual European
countries. Unlike the portfolio, the index is not managed and does not incur
expenses. The performance of Class II shares will be lower than the performance
of Class I shares as explained above. The table assumes:
|X| The sale of the shares at the end of the period
|X| Reinvestment of all dividends and distributions
AVERAGE ANNUAL TOTAL RETURN (%)
(for periods ended December 31, 1999)
------------------------------------------------------------
Since Inception
1 Year Inception Date
------------------------------------------------------------
Class I 28.47 30.21 10/30/98
------------------------------------------------------------
MSCI Europe Index 15.89 22.99 --
------------------------------------------------------------
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OTHER INVESTMENT STRATEGIES
As discussed, the portfolio invests primarily in equity securities of European
issuers to seek long-term capital growth.
This section and "Common portfolio investment policies" describe additional
investments that the portfolio may make or strategies that it may pursue to a
lesser degree to achieve the portfolio's goal. Some of the portfolio's secondary
investment policies also entail risks. To learn more about these investments and
risks, you should obtain and read the statement of additional information (SAI).
INVESTMENT IN OTHER EUROPEAN ISSUERS
The portfolio invests primarily in issuers domiciled in developed European
countries. However, the portfolio may invest up to 10% of its total assets (at
the time of purchase) in securities of European issuers domiciled in Eastern
European nations or emerging European markets.
The risks relating to investment in developed European issuers described above
are more pronounced to the extent the portfolio invests in issuers in Eastern
European nations or emerging European markets. Additional risks include:
|X| Economic, political or social developments may adversely affect European
securities markets
|X| Withholding and other non-U.S. taxes may decrease the portfolio's return
ECONOMIC AND MONETARY UNION (EMU)
On January 1, 1999, 11 European countries adopted a single currency--the Euro.
The conversion to the Euro is being phased in over a three-year period. During
this time, valuation, systems and other operational problems may occur in
connection with the portfolio's investments quoted in the Euro. For
participating countries, EMU will mean sharing a single currency and single
official interest rate and adhering to agreed upon limits on government
borrowing. Budgetary decisions will remain in the hands of each participating
country, but will be subject to each country's commitment to avoid "excessive
deficits" and other more specific budgetary criteria. A European Central Bank is
responsible for setting the official interest rate to maintain price stability
within the Euro zone.
EMU is driven by the expectation of a number of economic benefits, including
lower transaction costs, reduced exchange risk, greater competition and a
broadening and deepening of European financial markets. However, there are a
number of significant risks associated with EMU. Monetary and economic union on
this scale has never been attempted before. There is a significant degree of
uncertainty as to whether participating countries will remain committed to EMU
in the face of changing economic conditions. This uncertainty may increase the
volatility of European markets.
INVESTMENTS OTHER THAN IN EQUITY SECURITIES
The portfolio may invest up to 20% of its total assets (at the time of purchase)
in debt securities of corporate and government issuers with less than 12 months
to maturity. Generally the portfolio acquires debt securities that are
investment grade, but the portfolio may invest up to 5% of its total assets (at
the time of purchase) in below investment grade convertible debt securities. The
portfolio invests in debt securities when Pioneer believes that they are
consistent with the portfolio's investment objective and offer the potential for
capital growth, to diversify the portfolio or for greater liquidity.
Debt securities are subject to the risk of an issuer's inability to meet
principal or interest payments on its obligations. Factors which could
contribute to a decline in the market value of debt securities in the portfolio
include rising interest rates or a reduction in the perceived creditworthiness
of the issuer of the securities. A debt security is investment grade if it is
rated in one of the top four categories by a nationally recognized securities
rating organization or determined to be of equivalent credit quality by Pioneer.
Debt securities rated below investment grade are commonly referred to as "junk
bonds" and are considered speculative. Below investment grade debt securities
involve greater risk of loss, are subject to greater price volatility and are
less liquid, especially during periods of economic uncertainty or change, than
higher quality debt securities.
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MANAGEMENT
PORTFOLIO MANAGER
Day-to-day management of the portfolio is the responsibility of Patrick M.
Smith. Mr. Smith is a senior vice president of Pioneer. He joined Pioneer in
1992 as an international securities analyst and has been an investment
professional since 1986.
Mr. Smith is supported by a team of portfolio managers and analysts who
specialize in international equity securities. This team provides research for
the portfolio and other Pioneer mutual funds with similar investment objectives
or styles. Mr. Smith and his team operate under the supervision of Theresa A.
Hamacher. Ms. Hamacher is chief investment officer of Pioneer. She joined
Pioneer in 1997 and has been an investment professional since 1984, most
recently as chief investment officer at another investment adviser.
MANAGEMENT FEE
The portfolio pays Pioneer a fee for managing the portfolio and to cover the
cost of providing certain services to the portfolio. Pioneer's annual fee is
equal to 1.00% of the portfolio's average daily net assets. The fee is normally
computed daily and paid monthly. Pioneer has agreed not to impose all or a
portion of its fee and will make other arrangements, if necessary, to limit the
portfolio's Class I share total annual operating expenses to 1.50% of the
portfolio's average daily net assets attributable to Class I shares. The
portfolio expenses attributable to Class II shares will be reduced only to the
extent such expenses were reduced for the Class I shares of the portfolio. This
agreement is voluntary and temporary and may be revised or terminated at any
time. For the most recent fiscal year, the portfolio paid a management fee equal
to 0.00% of its average daily net assets.
DISTRIBUTIONS
The portfolio generally makes distributions of any net short- and long-term
capital gains in June. The portfolio generally pays dividends from any net
investment income annually. The portfolio may pay additional distributions and
dividends at other times if necessary for the portfolio to avoid a federal tax.
FINANCIAL HIGHLIGHTS
Class II shares are a new class of shares; financial highlights are not
currently available for Class II shares. Arthur Andersen LLP's report on the
portfolios' audited financial statements as of December 31, 1999, for Class I
shares appears in the portfolios' annual report which is incorporated by
reference into the SAI. The annual report includes more information about the
portfolios' performance and is available upon request.
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<PAGE>
COMMON PORTFOLIO INVESTMENT POLICIES
Some policies of the portfolios are stated as a percentage of assets. These
percentages are applied at the time of purchase of a security and subsequently
may be exceeded because of changes in the value of a portfolio's investments. If
a rating organization downgrades the quality rating assigned to one or more of
the portfolio's portfolio securities, Pioneer will consider what actions, if
any, are appropriate including selling the downgraded security or purchasing
additional securities as soon as it is prudent to do so.
TEMPORARY INVESTMENTS
Normally, each portfolio invests substantially all of its assets to meet its
investment objective. Each portfolio may invest the remainder of its assets in
securities with remaining maturities of less than one year or may hold cash or
cash equivalents. For temporary defensive purposes, a portfolio may depart from
its principal investment strategies and invest part or all of its assets in
these securities or may hold cash. During such periods, the portfolio may not be
able to achieve its investment objective. Each portfolio intends to adopt a
defensive strategy only when Pioneer believes there to be extraordinary risks in
investing in the securities in which a portfolio normally invests due to
political or economic factors.
SHORT-TERM TRADING
The portfolios usually do not trade for short-term profits. Each portfolio will
sell an investment, however, even if it has only been held for a short time, if
it no longer meets the portfolio's investment criteria. If a portfolio does a
lot of trading, it may incur additional operating expenses, which would reduce
performance.
DERIVATIVES
Each portfolio may use futures, options and other derivatives. A derivative is a
security or instrument whose value is determined by reference to the value or
the change in value of one or more securities, currencies, indices or other
financial instruments. The portfolios do not use derivatives as a primary
investment technique and generally limit their use to hedging. However, each
portfolio may use derivatives for a variety of non-principal purposes,
including:
o As a hedge against adverse changes in stock market prices, interest rates
or currency exchange rates
o As a substitute for purchasing or selling securities
o To increase the portfolio's return as a non-hedging strategy that may be
considered speculative
Even a small investment in derivatives can have a significant impact on the
portfolio's exposure to stock market values, interest rates or currency exchange
rates. If changes in a derivative's value do not correspond to changes in the
value of the portfolio's other investments, the portfolio may not fully benefit
from or could lose money on the derivative position. In addition, some
derivatives involve risk of loss if the person who issued the derivative
defaults on its obligation. Certain derivatives may be less liquid and more
difficult to value.
MANAGEMENT
Pioneer, the portfolios' investment adviser, selects each portfolio's
investments and oversees the portfolios' operations.
PIONEER GROUP
The Pioneer Group, Inc. and its subsidiaries are engaged in financial
services businesses in the United States and many foreign countries. As of
December 31, 1999, the firm had more than $24 billion in assets under management
worldwide including more than $23 billion in U.S. mutual funds. The firm's U.S.
mutual fund investment history includes creating in 1928 of one of the first
mutual funds. John F. Cogan, chairman of the board and president of The Pioneer
Group, Inc., owns approximately 14% of the firm. He is also an officer and
director of each of the Pioneer mutual funds.
THE INVESTMENT ADVISER
Pioneer manages a family of U.S. and international stock funds, bond funds
and money market funds. Pioneer is a subsidiary of The Pioneer Group, Inc. Its
main office is at 60 State Street, Boston, Massachusetts 02109.
5
<PAGE>
DISTRIBUTION PLAN
The portfolios have adopted a plan 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 to Pioneer Funds Distributor, Inc. a distribution fee
of 0.25% of the average daily net assets attributable to Class II shares.
Because these fees are an ongoing expense, over time they increase the cost of
an investment and the shares may cost more than shares that are subject to other
types of sales charges.
DISTRIBUTIONS AND TAXES
You should read the prospectus for your insurance company's Variable Contract
for a discussion of the tax status of a Variable Contract, including the tax
consequences of withdrawals or other payments. You should keep all statements
you receive from the insurance company or the portfolios to assist in your
personal recordkeeping. Class II shares of the portfolios are held by life
insurance company separate accounts that fund Variable Contracts or by certain
qualified pension and retirement plans (Qualified Plans). Under the Internal
Revenue Code, a portfolio's dividends and distributions to those accounts of net
short-term capital gain in excess of net long-term capital loss are generally
treated as ordinary income; distributions to those accounts of net long-term
capital gain in excess of net short-term capital loss are generally treated as
long-term gain. Dividends and capital gain distributions are treated as received
by the insurance company rather than the owner of the Variable Contract.
Insurance companies should consult their own tax advisers regarding the tax
treatment of dividends or capital gain distributions they receive from any
portfolio.
Each portfolio is treated as a separate entity for federal income tax purposes
and has elected or intends to elect to be treated, and intends to qualify each
year, as a regulated investment company under Subchapter M of the Code. Each
portfolio must satisfy certain requirements relating to the sources of its
income, diversification of its assets and distribution of its income to
shareholders to qualify as a regulated investment company. As a regulated
investment company, each portfolio will not be subject to federal income tax on
any net investment income and net realized capital gains that are distributed to
its shareholders as required under the Code.
In addition to the above, each portfolio also follows certain portfolio
diversification requirements imposed by the Code on separate accounts of
insurance companies relating to the tax-deferred status of Variable Contracts.
More specific information on these diversification requirements is contained in
the insurance company's separate account prospectus and in the portfolios' SAI.
SHAREHOLDER INFORMATION
NET ASSET VALUES
Each portfolio's net asset value is the value of its portfolio of securities
plus any other assets minus its operating expenses and any other liabilities.
Each portfolio calculates a net asset value for each class of shares every day
the New York Stock Exchange is open when regular trading closes (normally 4:00
p.m. Eastern time).
Each portfolio generally values its portfolio securities based on market prices
or quotations. When market prices are not available or are considered by Pioneer
to be unreliable, the portfolio may use an asset's fair value. Fair value is
determined in accordance with procedures approved by the portfolios' trustees.
International securities markets may be open on days when the U.S. markets are
closed. For this reason, the values of any international securities owned by a
portfolio could change on a day when insurance companies or Qualified Plans
cannot buy or sell shares of the portfolio.
[text box]
SHARE PRICE
The net asset value per share calculated on the day of a transaction is often
referred to as the share price.
[end text box]
6
<PAGE>
INVESTMENTS IN SHARES OF THE PORTFOLIOS
Each portfolio may sell its shares directly to separate accounts established and
maintained by insurance companies for the purpose of funding Variable Contracts
and to Qualified Plans. Shares of the portfolios are sold at net asset value.
Variable Contracts may or may not allow you to allocate your investments in the
Variable Contracts to all the portfolios described in this prospectus.
Investments in each portfolio are expressed in terms of the full and fractional
shares of the portfolio purchased. Investments in a portfolio are credited to an
insurance company's separate account immediately upon acceptance of the
investment by the portfolio. Investments will be processed at the next net asset
value calculated after an order is received and accepted by a portfolio. The
offering of shares of any portfolio may be suspended for a period of time and
each portfolio reserves the right to reject any specific purchase order.
Purchase orders may be refused if, in Pioneer's opinion, they are of a size that
would disrupt the management of a portfolio.
[text box]
SINCE YOU MAY NOT DIRECTLY PURCHASE SHARES OF THE PORTFOLIOS, YOU SHOULD READ
THE PROSPECTUS FOR YOUR INSURANCE COMPANY'S VARIABLE CONTRACT TO LEARN HOW TO
PURCHASE A VARIABLE CONTRACT BASED ON THE PORTFOLIOS.
[end text box]
The interests of Variable Contracts and Qualified Plans investing in the
portfolios could conflict due to differences of tax treatment and other
considerations. The portfolios currently do not foresee any disadvantages to
investors arising out of the fact that each portfolio may offer its shares to
insurance company separate accounts that serve as the investment medium for
their Variable Contracts or that each portfolio may offer its shares to
Qualified Plans. Nevertheless, the portfolios' trustees intend to monitor events
in order to identify any material irreconcilable conflicts which may possibly
arise, and to determine what action, if any, should be taken in response to such
conflicts. If such a conflict were to occur, one or more insurance companies'
separate accounts or Qualified Plans might be required to withdraw their
investments in one or more portfolios and shares of another portfolio may be
substituted. This might force a portfolio to sell securities at disadvantageous
prices. In addition, the trustees may refuse to sell shares of any portfolio to
any separate account or Qualified Plan or may suspend or terminate the offering
of shares of any portfolio if such action is required by law or regulatory
authority or is in the best interests of the shareholders of the portfolio.
SELLING
Shares of a portfolio may be sold on any business day. Portfolio shares are sold
at net asset value next determined after receipt by the portfolio of a
redemption request in good order from the insurance company as described in the
prospectus of the insurance company's Variable Contract. Sale proceeds will
normally be forwarded by bank wire to the selling insurance company on the next
business day after receipt of the sales instructions by a portfolio but in no
event later than 7 days following receipt of instructions. Each portfolio may
suspend transactions in shares or postpone payment dates when trading on the New
York Stock Exchange is closed or restricted, when an emergency exists that makes
it impracticable for the portfolio to sell or value its portfolio securities or
with the permission of the Securities and Exchange Commission.
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PIONEER VARIABLE CONTRACTS TRUST
CLASS II SHARES
YOU CAN OBTAIN MORE FREE INFORMATION about the portfolios by writing to
Pioneering Services Corporation, 60 State Street, Boston, Massachusetts 02109.
You may also call 1-800-225-6292.
SHAREOWNER REPORTS
Annual and semiannual reports to shareowners provide information about the
portfolios' investments. The annual report discusses market conditions and
investment strategies that significantly affected each portfolio's performance
during its last fiscal year.
STATEMENT OF ADDITIONAL INFORMATION
The statement of additional information provides more detailed information about
the portfolios. It is incorporated by reference into this prospectus.
You can also review each portfolio's shareowner reports, prospectus and
statement of additional information at the Securities and Exchange Commission's
Public Reference Room in Washington, D.C. Call 1-202-942-8090 for information.
The Commission charges a fee for copies. You can get the same information free
from the Commission's EDGAR database on the Internet (http://www.sec.gov). You
may also e-mail requests for these documents to [email protected] or make a
request in writing to the Commission's Public Reference Section, Washington,
D.C. 20549-0102.
(Investment Company Act file no. 811-08786)
PIONEER FUNDS DISTRIBUTOR, INC.
60 STATE STREET
BOSTON, MA 02109
WWW.PIONEERFUNDS.COM
9447-00-1200
(C)Pioneer Funds Distributor, Inc.
