<PAGE>
[Pioneer logo]
Pioneer
Small Company
Fund
- -------------------------
SEMIANNUAL REPORT 4/30/99
- -------------------------
<PAGE>
Table of Contents
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 16
Notes to Financial Statements 22
Report of Independent Public Accountants 27
Trustees, Officers and Service Providers 28
The Pioneer Family of Mutual Funds 29
</TABLE>
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
LETTER FROM THE CHAIRMAN 4/30/99
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
I am pleased to introduce this semiannual report for Pioneer Small Company
Fund, covering the six months ended April 30, 1999. On behalf of your
investment team, I thank you for your interest and this opportunity to comment
on today's investing environment.
Amid much fanfare, in March the Dow Jones Industrial Average roared above
10,000 for the first time in its 103-year history. Although considered a
momentous event by some, in actuality the Dow measures the progress of only 30
large company stocks. Most other stocks have not participated in this explosive
rise, but languished in 1998 and early 1999. That may be starting to change,
however. Even as the Dow pushed on toward 11,000 in April, prices of smaller,
value-oriented stocks noticeably improved. This is welcome news for investors
of the Fund.
For those of you who are interested in new Pioneer products, we are pleased to
introduce Pioneer Strategic Income Fund. The Fund will hold a portfolio of
several bond sectors, such as high yield, international and U.S. investment
grade.
To receive a prospectus for the Fund - which you should read carefully before
you invest or send any money - or if you have questions regarding Pioneer Small
Company Fund, please contact your investment professional. Or call Pioneer at
1-800-225-6292. You can also visit Pioneer's web site at www.pioneerfunds.com.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 4/30/99
- --------------------------------------------------------------------------------
P o r t f o l i o D i v e r s i f i c a t i o n
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
- -----------------------------[PIE CHART]----------------------------------------
U.S. Common Stocks 92%
International Common Stocks 5%
Short-Term Cash Equivalents 3%
- ----------------------------[END PIE CHART]-------------------------------------
S e c t o r D i s t r i b u t i o n
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
- -----------------------------[PIE CHART]----------------------------------------
Financial 19%
Technology 17%
Capital Goods 14%
Consumer Cyclicals 13%
Consumer Staples 12%
Basic Materials 11%
Energy 6%
Healthcare 3%
Transportation 3%
Other 2%
- ----------------------------[END PIE CHART]-------------------------------------
1 0 L a r g e s t H o l d i n g s
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<S> <C> <C> <C>
1. Anacomp, Inc. 5.20% 6. The Learning Company, Inc. 2.51%
2. Morrison Knudsen Corp. 3.79 7. U.S. Industries, Inc. 2.39
3. John H. Harland Co. 3.26 8. Plains Resources, Inc. 2.33
4. Capital RE Corp. 3.08 9. Louis Dreyfus Natural Gas 2.22
Corp.
5. Uniroyal Technology Corp. 2.77 10. Leucadia National Corp. 1.93
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/99 CLASS A SHARES
- --------------------------------------------------------------------------------
S h a r e P r i c e s a n d D i s t r i b u t i o n s
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 4/30/99 10/31/98
$ 10.57 $ 10.68
Distributions per Share Income Short-Term Long-Term
(10/31/98 - 4/30/99) Dividends Capital Gains Capital Gains
- - $ 0.405
</TABLE>
I n v e s t m e n t R e t u r n s
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer Small Company Fund at public offering price, compared to the growth of
the Russell 2000 Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of April 30, 1999)
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund 9.04% 7.20%
(11/2/95)
1 Year -23.83 -28.21
</TABLE>
- ---------------------------[MOUNTAIN CHART]-------------------------------------
Growth of $10,000+
<TABLE>
<CAPTION>
Russell Pioneer
2000 Small Company
Index Fund*
<S> <C> <C>
11/30/95 10000 9425
10253 9860
4/96 11365 11383
10339 10908
10/96 11192 11338
12198 12600
4/97 11373 11638
13792 13966
10/97 14476 14726
14402 13921
4/98 16193 15868
14108 14020
10/98 12759 11753
14448 12395
4/99 14693 12087
</TABLE>
- ------------------------[END MOUNTAIN CHART]------------------------------------
* Reflects deduction of the maximum 5.75% sales charge at the beginning of
the period and assumes reinvest-ment of distributions at net asset value.
+ Index comparison begins 11/30/95. The Russell 2000 Index is an unmanaged
measure of the 2,000 smallest stocks, based on capitalization, in the
Russell 3000 Index. Stocks in the Index trade on the New York Stock
Exchange, American Stock Exchange and over-the-counter market. Index
returns are calculated monthly, assume reinvestment of dividends and,
unlike Fund returns, do not reflect any fees, charges or expenses. You
cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share
prices fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost.
3
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/99 CLASS B SHARES
- --------------------------------------------------------------------------------
S h a r e P r i c e s a n d D i s t r i b u t i o n s
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 4/30/99 10/31/98
$ 10.29 $ 10.44
Distributions per Share Income Short-Term Long-Term
(10/31/98 - 4/30/99) Dividends Capital Gains Capital Gains
- - $ 0.405
</TABLE>
I n v e s t m e n t R e t u r n s
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer Small Company Fund, compared to the growth of the Russell 2000 Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of April 30, 1999)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 8.29% 7.58%
(11/2/95)
1 Year -24.31 -27.22
</TABLE>
- ---------------------------[MOUNTAIN CHART]-------------------------------------
Growth of $10,000+
<TABLE>
<CAPTION>
Russell Pioneer
2000 Small Company
Index Fund*
<S> <C> <C>
11/30/95 10000 10000
10253 10442
4/96 11365 12036
10339 11504
10/96 11192 11941
12198 13238
4/97 11373 12199
13792 14624
10/97 14476 15389
14402 14524
4/98 16193 16522
14108 14570
10/98 12759 12198
14448 12833
4/99 14693 12213
</TABLE>
- ------------------------[END MOUNTAIN CHART]------------------------------------
* Reflects deduction of the maximum applicable contingent deferred sales
charge (CDSC) at the end of the period and assumes reinvestment of
distributions. The maximum CDSC of 4% declines over six years.
+ Index comparison begins 11/30/95. The Russell 2000 Index is an unmanaged
measure of the 2,000 smallest stocks, based on capitalization, in the
Russell 3000 Index. Stocks in the Index trade on the New York Stock
Exchange, American Stock Exchange and over-the-counter market. Index
returns are calculated monthly, assume reinvestment of dividends and,
unlike Fund returns, do not reflect any fees, charges or expenses. You
cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share
prices fluctuate, and your shares, when redeemed, may be worth more or
less than their original cost.
4
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/99 CLASS C SHARES
- --------------------------------------------------------------------------------
S h a r e P r i c e s a n d D i s t r i b u t i o n s
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 4/30/99 10/31/98
$ 10.27 $ 10.44
Distributions per Share Income Short-Term Long-Term
(10/31/98 - 4/30/99) Dividends Capital Gains Capital Gains
- - $ 0.405
</TABLE>
I n v e s t m e n t R e t u r n s
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer Small Company Fund, compared to the growth of the Russell 2000 Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of April 30, 1999)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 5.64% 5.64%
(1/31/96)
1 Year -24.51 -24.51
</TABLE>
- ---------------------------[MOUNTAIN CHART]-------------------------------------
Growth of $10,000
<TABLE>
<CAPTION>
Russell Pioneer
2000 Small Company
Index Fund*
<S> <C> <C>
1/31/96 10000 10000
4/96 11085 11526
10084 11026
10/96 10916 11435
11897 12687
4/97 11092 11692
13452 14005
10/97 14119 14747
14047 13918
4/98 15793 15832
13761 13952
10/98 12444 11681
14092 12289
4/99 14331 11951
</TABLE>
- ------------------------[END MOUNTAIN CHART]------------------------------------
* Assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to redemptions made within one year of purchase.
The Russell 2000 Index is an unmanaged measure of the 2,000 smallest stocks,
based on capitalization, in the Russell 3000 Index. Stocks in the Index trade on
the New York Stock Exchange, American Stock Exchange and over-the-counter
market. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, charges or expenses. You
cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
5
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/99
- --------------------------------------------------------------------------------
In the following discussion, Theresa Hamacher discusses the market environment
and Pioneer Small Company Fund's strategy for the six months ending April 30,
1999. An investment professional for more than 15 years, Ms. Hamacher is
Pioneer's chief investment officer and oversees the team responsible for the
Fund's daily management.
Q: Large stocks continued to perform best. How did small-cap value stocks fare
over the six-month period?
A: It was a very difficult period for small stocks overall, and small-cap value
stocks had an even tougher time. In fact, the difference in returns for small
growth and small value stocks was huge. While the Fund's benchmark, the
Russell 2000 Index, generated a total return of 15.16%, the growth component
of the Index returned 25.74%, far above the value component's 4.39% return.
This disparity between growth and value continued through the beginning of
1999. But in the last two months, the market shifted and the performance of
value stocks and the Fund improved.
Q: How did Pioneer Small Company Fund perform?
A: The Fund's Class A shares posted a 2.84% return, Class B shares 2.51% and
Class C shares 2.32%, all at net asset value. In comparison, the average
small-cap mutual fund returned 14.68%, as tracked by Lipper Inc. (Lipper is
an independent research firm that tracks mutual fund performance.)
The main factor in the Fund's underperformance was its value orientation.
While there are periods of time when the market does not recognize the
opportunities we see in small value stocks, we believe investors will be
well-served over the long term by sticking with our strategy.
Q: Why have small-company value stocks had such a tough time?
A: Two main reasons. First, large 'mega cap' stocks were the main drivers of the
stock market. Smaller stocks had trouble gaining investors attention. In
addition, when the market rebounded during the last three
6
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
months of 1998, growth stocks were the place to be. On the other hand value
stocks languished--not performing as well. The momentum behind large growth
stocks was exemplified by the booming Internet sector. Although many Internet
stocks have produced extraordinary short-term results, we tend to focus on
companies with earnings and whose future prospects are more predictable.
Q: What contributed to, or hurt, performance over the period?
A: The Fund's largest holding, Anacomp, was also one of the best performing
stocks in the portfolio. Technology companies Signal Technology and In Focus
Systems also performed well. Our restaurant holdings Luby's Cafeterias and
Uno Restaurant showed strong results for the period.
The most disappointing group for the portfolio was the basic materials area.
Alico, BWay and Uniroyal Technology were among those with negative returns.
Long-time holding Jan Bell Marketing also suffered during the period after
the company lost a large account.
Q: Where are you finding value?
A: Recently, we've been emphasizing industries that are fairly cyclical, such as
basic materials, capital goods and energy. We think stocks in these sectors
will benefit from the renewed strength in the global economy. Technology is
an area we expanded after stock prices dropped to very attractive levels.
Financial stocks now make up about a fifth of the portfolio, compared to only
4% six months ago. Surprisingly, the Fund is still modestly underweighted in
this area, relative to the Russell 2000 Index. Many new financial holdings
are real estate investment trusts, and we are pleased they have performed
well so far. We also added to some interest-rate sensitive sectors, including
utilities, although these, too, remain a smaller position than in the Index.
7
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/99 (continued)
- --------------------------------------------------------------------------------
Q: What is your outlook for small-cap stocks and the Fund?
A: We are very enthusiastic about the prospects for small companies, especially
since we believe the economy will remain strong. Over the last year, large
company stocks, as measured by the Standard & Poor's 500 Index, outperformed
small stocks by an extraordinary margin of 31 percentage points. As a result,
valuations for small-cap stocks relative to large-cap stocks are now very
attractive.
We continue to focus on financially sound companies with strong franchises.
Last year's momentum-driven market unfairly punished many of these companies'
stocks. We believe the Fund is well positioned and are encouraged by the
performance of portfolio holdings since smaller stocks began to attract
investors' attention. We think we may be seeing the start of a market shift
as investors look to a more fundamental approach to selecting stocks, but
only time will tell. As we've said in the past, regardless of the timing of
any turn in the market, we think small company value stocks have an important
place in a long-term investor's portfolio.
8
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 96.9%
Basic Materials - 10.9%
Agricultural Products - 0.6%
100,000 Alico, Inc. $ 1,625,000
--------------
Chemicals (Specialty) - 2.7%
836,600 Uniroyal Technology Corp.*+ $ 7,058,813
--------------
Containers & Packaging (Paper) - 1.5%
260,200 BWay Corp.* $ 3,903,000
--------------
Gold & Precious Metals Mining - 2.5%
496,000 Cambior, Inc. $ 2,015,000
150,000 Euro-Nevada Mining Corp. 2,566,872
75,000 Stillwater Mining Co.* 2,123,438
--------------
$ 6,705,310
--------------
Iron & Steel - 1.1%
209,500 Schnitzer Steel Industries, Inc. $ 2,998,469
--------------
Metals Mining - 1.7%
504,900 Inco, Ltd. (VBN Shares) $ 4,400,515
--------------
Paper & Forest Products - 0.8%
62,000 Chesapeake Corp. $ 2,015,000
--------------
Total Basic Materials $ 28,706,107
--------------
Capital Goods - 13.6%
Engineering & Construction - 3.7%
887,600 Morrison Knudsen Corp.* $ 9,652,650
--------------
Manufacturing (Diversified) - 2.3%
328,000 U.S. Industries, Inc. $ 6,088,500
--------------
Manufacturing (Specialized) - 1.6%
479,200 The York Group, Inc.+ $ 4,282,850
--------------
Metal Fabricators - 0.3%
109,000 Keystone Consolidated Industries, Inc.* $ 742,563
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Office Equipment & Supplies - 5.7%
814,120 Anacomp, Inc.*+ $ 13,229,450
165,600 Nashua Corp.* 1,780,200
--------------
$ 15,009,650
--------------
Total Capital Goods $ 35,776,213
--------------
Communication Services - 0.8%
Telecommunications - 0.8%
284,556 Salient 3 Communications Inc.*+ $ 2,169,739
--------------
Total Communication Services $ 2,169,739
--------------
Consumer Cyclicals - 12.4%
Consumer (Jewelry, Novelties & Gifts) - 2.9%
153,700 Enesco Group, Inc. $ 3,227,700
1,418,200 Jan Bell Marketing, Inc.* 4,343,237
--------------
$ 7,570,937
--------------
Hardware & Tools - 1.7%
162,500 WD-40 Co. $ 4,346,875
--------------
Leisure Time (Products) - 1.2%
96,000 Huffy Corp. $ 1,278,000
50,000 Polaris Industries, Inc. 1,884,375
--------------
$ 3,162,375
--------------
Retail (Computers & Electronics) - 0.8%
200,000 InterTAN, Inc.* $ 2,175,000
--------------
Retail (Home Shopping) - 2.8%
175,900 Blair Corp. $ 3,210,175
252,500 Micro Warehouse, Inc.* 4,276,719
--------------
$ 7,486,894
--------------
Retail (Specialty) - 0.7%
646,000 Jenny Craig, Inc.* $ 1,857,250
--------------
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Textiles (Apparel) - 2.3%
498,000 Chic by H.I.S., Inc.*+ $ 1,587,375
100,000 Nautica Enterprises, Inc.* 1,356,250
256,800 The Stride Rite Corp. 3,001,350
--------------
$ 5,944,975
--------------
Total Consumer Cyclicals $ 32,544,306
--------------
Consumer Staples - 12.1%
Beverages (Non-Alcoholic) - 0.0%
11,236 Buenos Aires Embotelladora SA (A.D.R.)* $ 0
--------------
Foods - 2.8%
350,000 Chiquita Brands International, Inc. $ 3,500,000
400,000 Maple Leaf Foods, Inc. 3,566,529
41,486 WLR Foods, Inc. 274,845
--------------
$ 7,341,374
--------------
Household Products (Non-Durables) - 1.9%
885,800 EKCO Group, Inc.* $ 2,989,575
58,800 National Presto Industries, Inc. 2,054,325
--------------
$ 5,043,900
--------------
Restaurants - 3.0%
90,000 Cheesecake Factory, Inc.* $ 2,520,000
275,000 Luby's Cafeterias, Inc. 4,606,250
100,000 Uno Restaurant Corp.* 787,500
--------------
$ 7,913,750
--------------
Retail Stores (Drug Stores) - 0.1%
67,500 Phar-Mor, Inc.* $ 295,313
--------------
Services (Facilities & Environment) - 0.9%
190,600 Dames & Moore Group $ 2,239,550
--------------
Services (Rentals) - 0.2%
29,700 Dollar Thrifty Automotive Group, Inc.* $ 553,162
--------------
Specialty Printing - 3.2%
500,000 John H. Harland Co. $ 8,281,250
--------------
Total Consumer Staples $ 31,668,299
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Energy - 5.8%
Oil & Gas (Exploration/Production) - 5.8%
352,300 Forest Oil Corp.* $ 3,523,000
295,500 Louis Dreyfus Natural Gas Corp.* 5,651,438
347,500 Plains Resources, Inc.* 5,929,219
--------------
Total Energy $ 15,103,657
--------------
Financial - 18.0%
Banks (Regional) - 1.3%
48,800 CNB Bancshares Inc. $ 2,070,950
50,000 Commercial Federal Bank Corp. 1,212,500
--------------
$ 3,283,450
--------------
Financial (Diversified) - 7.3%
100,000 Camden Property Trust $ 2,700,000
150,000 FelCor Suite Hotels, Inc. 3,590,625
160,000 Leucadia National Corp.* 4,920,000
125,000 MGI Properites, Inc. 3,453,125
15,900 Reckson Associates Realty Corp. 357,750
1,006,000 Transmedia Network Inc.*+ 4,212,625
--------------
$ 19,234,125
--------------
Insurance (Life/Health) - 1.7%
200,700 American Annuity Group, Inc. $ 4,415,400
--------------
Insurance (Property/Casualty) - 4.3%
400,000 Capital RE Corp. $ 7,825,000
60,000 Financial Security Assurance Holdings Ltd. 3,427,500
--------------
$ 11,252,500
--------------
Savings & Loan Companies - 3.4%
85,000 Queens County Bancorp, Inc. $ 2,985,625
180,000 Staten Island Bancorp, Inc. 3,251,250
90,000 Webster Financial Corp. 2,767,500
--------------
$ 9,004,375
--------------
Total Financial $ 47,189,850
--------------
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare - 3.0%
Healthcare (Hospital Management) - 0.5%
25,000 Universal Health Services Inc. (Class B)* $ 1,295,312
--------------
Healthcare (Managed Care) - 1.2%
100,000 Trigon Healthcare, Inc.* $ 3,175,000
--------------
Healthcare (Medical Products/Supplies) - 1.3%
220,000 Haemonetics Corp.* $ 3,451,250
--------------
Total Healthcare $ 7,921,562
--------------
Technology - 16.5%
Communications Equipment - 1.8%
565,000 PictureTel Corp.* $ 4,661,250
--------------
Computers (Peripherals) - 2.4%
100,000 Hutchinson Technology Inc.* $ 2,206,250
390,000 In Focus Systems, Inc.* 4,046,250
--------------
$ 6,252,500
--------------
Computers (Software & Services) - 4.3%
40,000 Check Point Software Technologies Ltd.* $ 1,410,000
135,000 Platinum Technology International Inc.* 3,442,500
205,700 The Learning Company, Inc.* 6,376,700
39,000 WorkGroup Technology Corp.* 53,625
--------------
$ 11,282,825
--------------
Electronics (Component Distributors) - 2.7%
32,500 Espey Manufacturing & Electronics Corp. $ 414,375
631,700 Signal Technology Corp.*+ 3,434,869
240,000 Smart Modular Technologies Inc.* 3,210,000
--------------
$ 7,059,244
--------------
Electronics (Semiconductors) - 1.7%
75,000 Dallas Semiconductor Corp. $ 3,187,500
98,000 Varian Semiconductor Equipment Associates, Inc.* 1,274,000
--------------
$ 4,461,500
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Equipment (Semiconductors) - 2.8%
150,000 BMC Industries, Inc. $ 1,340,625
75,000 Cymer, Inc.* 1,368,750
75,000 DuPont Photomasks, Inc.* 3,281,250
35,000 Veeco Instruments Inc.* 1,347,500
--------------
$ 7,338,125
--------------
Services (Data Processing) - 0.8%
377,200 National Processing, Inc.* $ 2,216,050
--------------
Total Technology $ 43,271,494
--------------
Transportation - 2.9%
Air Freight - 1.7%
500,000 Pittston BAX Group $ 4,468,750
--------------
Airlines - 0.8%
100,000 America West Holdings Corp. (Class B)* $ 2,087,500
--------------
Railways - 0.4%
60,000 Yellow Corp.* $ 1,065,000
--------------
Total Transportation $ 7,621,250
--------------
Utilities - 0.9%
225,000 Unisource Energy Corp.* $ 2,432,813
--------------
Total Utilities $ 2,432,813
--------------
TOTAL COMMON STOCKS
(Cost $256,759,261) $ 254,405,290
--------------
Principal
Amount
TEMPORARY CASH INVESTMENT - 3.1%
Commercial Paper - 3.1%
$8,253,000 Exxon Asset Management Co., 4.92%, 5/3/99 $ 8,253,000
--------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $8,253,000) $ 8,253,000
--------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $265,012,261) (a) $ 262,658,290
==============
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
* Non-income producing security.
+ Investment held by the Fund representing 5% or more of the outstanding
voting stock of such company.
(a) At April 30,1999, the net unrealized loss on investments based on cost for
federal income tax purposes of $265,012,261 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $33,161,918
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (35,515,889)
-----------
Net unrealized loss $(2,353,971)
===========
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 1999, aggregated $98,356,119 and $166,266,318,
respectively.
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
BALANCE SHEET 4/30/99
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities (including temporary cash
investment of $8,253,000) (cost $265,012,261) $262,658,290
Cash 745
Receivables -
Investment securities sold 5,552,926
Fund shares sold 108,625
Dividends and interest 209,882
Organizational costs - net 14,435
Other 3,653
-------------
Total assets $268,548,556
-------------
LIABILITIES:
Payables -
Investment securities purchased $ 3,021,625
Fund shares repurchased 1,102,111
Due to affiliates 449,629
Accrued expenses 51,137
-------------
Total liabilities $ 4,624,502
-------------
NET ASSETS:
Paid-in capital $297,100,483
Accumulated net investment loss (1,001,597)
Accumulated net realized loss on investments (29,820,861)
Net unrealized loss on investments (2,353,971)
-------------
Total net assets $263,924,054
=============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $128,108,419/12,119,963 shares) $ 10.57
=============
Class B (based on $127,718,197/12,414,049 shares) $ 10.29
=============
Class C (based on $8,097,438/788,105 shares) $ 10.27
=============
MAXIMUM OFFERING PRICE:
Class A $ 11.21
=============
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/99
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Dividends (net of foreign taxes withheld of $7,926) $1,701,086
Interest 413,895
----------
Total investment income $ 2,114,981
------------
EXPENSES:
Management fees $1,311,894
Transfer agent fees
Class A 352,388
Class B 319,093
Class C 23,515
Distribution fees
Class A 173,421
Class B 762,391
Class C 51,019
Administrative fees 67,635
Custodian fees 27,493
Registration fees 14,845
Professional fees 18,377
Printing 12,715
Organizational costs 4,856
Fees and expenses of nonaffiliated trustees 14,838
Miscellaneous 7,583
----------
Total expenses $ 3,162,063
Less fees paid indirectly (45,485)
------------
Net expenses $ 3,116,578
------------
Net investment loss $ (1,001,597)
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments (including net gain of
$925,855 from affiliated companies) $(29,817,957)
Change in net unrealized loss on investments 37,349,803
------------
Net gain on investments $ 7,531,846
------------
Net increase in net assets resulting from operations $ 6,530,249
============
</TABLE>
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/99 and the Year Ended 10/31/98
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
4/30/99 10/31/98
<S> <C> <C>
FROM OPERATIONS:
Net investment loss $ (1,001,597) $ (4,281,195)
Net realized gain (loss) on investments (29,817,957) 12,637,156
Change in net unrealized gain or loss on investments 37,349,803 (104,048,427)
------------ -------------
Net increase (decrease) in net assets resulting from
operations $ 6,530,249 $ (95,692,466)
------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain:
Class A ($0.41 and $1.83 per share, respectively) $ (5,859,412) $ (29,848,737)
Class B ($0.41 and $1.83 per share, respectively) (6,344,415) (32,228,495)
Class C ($0.41 and $1.83 per share, respectively) (440,438) (2,149,245)
------------ -------------
Total distributions to shareholders $(12,644,265) $ (64,226,477)
------------ -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 31,155,196 $ 79,726,950
Reinvestment of distributions 10,988,813 55,328,290
Cost of shares repurchased (120,436,472) (164,397,741)
------------ -------------
Net decrease in net assets resulting from
fund share transactions $(78,292,463) $ (29,342,501)
------------ -------------
Net decrease in net assets $(84,406,479) $(189,261,444)
NET ASSETS:
Beginning of period 348,330,533 537,591,977
------------ -------------
End of period (including accumulated net investment loss
of $1,001,597 and $0, respectively) $263,924,054 $ 348,330,533
============ =============
</TABLE>
<TABLE>
<CAPTION>
CLASS A '99 Shares '99 Amount '98 Shares '98 Amount
<S> <C> <C> <C> <C>
Shares sold 2,015,202 $ 21,511,905 3,506,941 $ 43,713,957
Reinvestment of distributions 524,503 5,423,363 2,150,568 27,355,224
Less shares repurchased (5,639,504) (58,981,272) (6,910,403) (87,677,518)
---------- ------------ ---------- ------------
Net decrease (3,099,799) $(32,046,004) (1,252,894) $(16,608,337)
========== ============ ========== ============
CLASS B
Shares sold 796,898 $ 8,173,633 2,374,376 $ 29,821,612
Reinvestment of distributions 518,993 5,236,643 2,107,745 26,367,892
Less shares repurchased (5,578,849) (56,351,876) (5,520,410) (68,017,968)
---------- ------------ ---------- ------------
Net decrease (4,262,958) $(42,941,600) (1,038,289) $(11,828,464)
========== ============ ========== ============
CLASS C
Shares sold 141,653 $ 1,469,658 481,456 $ 6,191,381
Reinvestment of distributions 32,587 328,807 128,209 1,605,174
Less shares repurchased (506,868) (5,103,324) (675,543) (8,702,255)
---------- ------------ ---------- ------------
Net decrease (332,628) $ (3,304,859) (65,878) $ (905,700)
========== ============ ========== ============
</TABLE>
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 4/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months 11/2/95
Ended Year Ended Year Ended to
4/30/99(a) 10/31/98 10/31/97 10/31/96
<S> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 10.68 $ 15.31 $ 12.66 $ 10.00
-------- -------- -------- --------
Increase (decrease) from investment
operations:
Net investment income (loss) $ (0.01) $ (0.07) $ (0.11) $ 0.05
Net realized and unrealized gain (loss)
on investments 0.31 (2.73) 3.67 2.63
-------- -------- -------- --------
Net increase (decrease) from
investment operations $ 0.30 $ (2.80) $ 3.56 $ 2.68
Distributions to shareholders:
Net investment income - - - (0.02)
Net realized gain (0.41) (1.83) (0.91) -
-------- -------- -------- --------
Net increase (decrease) in net asset
value $ (0.11) $ (4.63) $ 2.65 $ 2.66
-------- -------- -------- --------
Net asset value, end of period $ 10.57 $ 10.68 $ 15.31 $ 12.66
======== ======== ======== ========
Total return* 2.84% (20.19)% 29.88% 26.87%
Ratio of net expenses to average net
assets 1.68%**+ 1.45%+ 1.49%+ 1.54%**+
Ratio of net investment income (loss) to
average net assets (0.31)%**+ (0.54)%+ (0.76)%+ 0.34%**+
Portfolio turnover rate 17%** 45% 57% 43%**
Net assets, end of period (in thousands) $128,108 $162,536 $252,177 $221,601
Ratios assuming no waiver of management
fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 1.68%** 1.45% 1.49% 1.55%**
Net investment income (loss) (0.31)%** (0.54)% (0.76)% 0.33%**
Ratios assuming waiver of management
fees and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.65%** 1.44% 1.48% 1.51%**
Net investment income (loss) (0.28)%** (0.53)% (0.75)% 0.37%**
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 4/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months 11/2/95
Ended Year Ended Year Ended to
4/30/99 10/31/98 10/31/97 10/31/96
<S> <C> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 10.44 $ 15.10 $ 12.59 $ 10.00
-------- -------- -------- --------
Increase (decrease) from investment
operations:
Net investment loss $ (0.10) $ (0.18) $ (0.20) $ (0.01)
Net realized and unrealized gain (loss) on
investments 0.36 (2.65) 3.62 2.62
-------- -------- -------- --------
Net increase (decrease) from
investment operations $ 0.26 $ (2.83) $ 3.42 $ 2.61
Distributions to shareholders:
In excess of net investment income - - - (0.02)
Net realized gain (0.41) (1.83) (0.91) -
-------- -------- -------- --------
Net increase (decrease) in net asset value $ (0.15) $ (4.66) $ 2.51 $ 2.59
-------- -------- -------- --------
Net asset value, end of period $ 10.29 $ 10.44 $ 15.10 $ 12.59
======== ======== ======== ========
Total return* 2.51% (20.73)% 28.88% 26.09%
Ratio of net expenses to average net assets 2.38%**+ 2.15%+ 2.19%+ 2.26%**+
Ratio of net investment loss to average net
assets (1.01)%**+ (1.24)%+ (1.46)%+ (0.42)%**+
Portfolio turnover rate 17%** 45% 57% 43%**
Net assets, end of period (in thousands) $127,718 $174,097 $267,489 $217,346
Ratios assuming no waiver of management
fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 2.38%* * 2.15% 2.19% 2.27%**
Net investment loss (1.01)%** (1.24)% (1.46)% (0.43)%**
Ratios assuming waiver of management
fees and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 2.35%* * 2.14% 2.18% 2.23%**
Net investment loss (0.98)%** (1.23)% (1.45)% (0.39)%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 4/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months 1/31/96
Ended Year Ended Year Ended to
4/30/99 10/31/98 10/31/97 10/31/96
<S> <C> <C> <C> <C>
CLASS C
Net asset value, beginning of period $ 10.44 $ 15.11 $ 12.59 $ 11.01
------- ------- ------- -------
Increase (decrease) from investment
operations:
Net investment loss $ (0.12) $ (0.18) $ (0.21) $ (0.03)
Net realized and unrealized gain (loss) on
investments 0.36 (2.66) 3.64 1.61
------- ------- ------- -------
Net increase (decrease) from
investment operations $ 0.24 $ (2.84) $ 3.43 $ 1.58
Distributions to shareholders:
Net realized gain (0.41) (1.83) (0.91) -
------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.17) $ (4.67) $ 2.52 $ 1.58
------- ------- ------- -------
Net asset value, end of period $ 10.27 $ 10.44 $ 15.11 $ 12.59
======= ======= ======= =======
Total return* 2.32% (20.79)% 28.96% 14.35%
Ratio of net expenses to average net assets 2.42%**+ 2.16%+ 2.17%+ 2.25%**+
Ratio of net investment loss to average net
assets (1.05)%**+ (1.24)%+ (1.44)%+ (0.45)%**+
Portfolio turnover rate 17%** 45% 57% 43%**
Net assets, end of period (in thousands) $ 8,097 $11,697 $17,927 $16,811
Ratios assuming reduction for fees paid
indirectly:
Net expenses 2.39%** 2.14% 2.16% 2.21%**
Net investment loss (1.02)%** (1.22)% (1.43)% (0.41)%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 21
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/99
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Small Company Fund (the Fund) is a Delaware business trust registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is to seek capital
appreciation.
The Fund offers three classes of shares--Class A, Class B and Class C shares.
Shares of Class A, Class B and Class C each represent an interest in the same
portfolio of investments of the Fund and have equal rights to voting,
redemptions, dividends and liquidation, except that each class of shares can
bear different transfer agent and distribution fees and have exclusive voting
rights with respect to the distribution plans that have been adopted by Class
A, Class B and Class C shareholders, respectively.
The Fund's financial statements have been prepared in conformity with generally
accepted accounting principles that require the management of the Fund 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 Fund, which are in conformity
with those generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded on trade date. The net asset value 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 Trustees. Dividend
income is recorded on the ex-dividend date and interest income is recorded on
the accrual basis. Temporary cash investments are valued at amortized cost.
22
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 Fund'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 Fund'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 Fund'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. Fund Shares
The Fund records sales and repurchases of its shares on trade date. Net
losses, if any, as a result of cancellations, are absorbed by Pioneer Funds
Distributor, Inc. (PFD), the principal underwriter for the Fund and an
indirect subsidiary of The Pioneer Group, Inc. (PGI). PFD earned $22,058 in
underwriting commissions on the sale of fund shares during the six months
ended April 30, 1999.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively. Shareholders of each class share all expenses and fees paid to
the transfer agent, Pioneering Services Corporation (PSC), for their
services, which are allocated based on the number of accounts in each class
and the ratable allocation of related out-of-pocket expense (see Note 3).
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning of
the day.
23
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/99 (continued)
- --------------------------------------------------------------------------------
Distributions to shareholders are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution fees.
E. Deferred Organization Costs
The costs incurred by the Fund in connection with its organization have been
deferred and are amortized on a straight-line basis over a period of up to
five years. If Pioneer Investment Management, Inc. (PIM) redeems any of its
initial investment prior to the end of the amortization period, the
redemption proceeds will be decreased by the pro rata share of the
unamortized expenses as of the date of redemption. The pro rata share is
derived by dividing the number of original shares redeemed by the total
number of original shares outstanding at the time of redemption.
2. Management Agreement
PIM, the Fund's investment adviser, manages the Fund's portfolio and is a wholly
owned subsidiary of PGI. Management fees are calculated daily at the annual rate
of 0.85% of the Fund'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 Fund. At April 30, 1999, $189,818 was payable to PIM
related to management fees, administrative and certain other services.
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer agent
and shareholder services to the Fund at negotiated rates. Included in due to
affiliates is $135,234 in transfer agent fees payable to PSC at April 30, 1999.
4. Distribution Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan,
Class B Plan and Class C Plan) in accordance with Rule 12b-1 of the Investment
Company Act of 1940. Pursuant to the Class A Plan, the Fund pays PFD a service
fee of up to 0.25% of the Fund's average daily net assets in reimbursement of
its actual expenditures to finance activities primarily intended to result in
the sale of Class A shares. Pursuant to the Class B Plan and the Class C Plan,
the Fund pays PFD 1.00% of
24
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
the average daily net assets attributable to each class of shares. The fee
consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class B and Class C shares. Included in due
to affiliates is $124,577 in distribution fees payable to PFD at April 30, 1999.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within one year of purchase.
Class B shares that are redeemed within six years of purchase are subject to a
CDSC at declining rates beginning at 4.0%, based on the lower of cost or market
value of shares being redeemed. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. Proceeds from the CDSCs are paid to
PFD. For the six months ended April 30, 1999, CDSCs in the amount of $679,132
were paid to PFD.
5. Expense Offsets
The Fund has entered into certain directed brokerage and expense offset
arrangements resulting in a reduction in the Fund's total expenses. For the six
months ended April 30, 1999, the Fund's expenses were reduced by $45,485 under
such arrangements.
6. Line Of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $50 million committed, unsecured revolving
line of credit facility. Borrowings are used solely for temporary or emergency
purposes. The Fund may borrow up to the lesser of $50 million or the limits set
by its prospectus for borrowings. Interest on collective borrowings of up to $25
million is payable at the Federal Funds Rate plus 3/8% on an annualized basis,
or at the Federal Funds Rate plus 1/2% if the borrowing exceeds $25 million at
any one time. The Funds pay an annual commitment fee for this facility. The
commitment fee is allocated among such Funds based on their respective borrowing
limits. For the six months ended April 30, 1999, the Fund had no borrowings
under this agreement.
25
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/99 (continued)
- --------------------------------------------------------------------------------
7. Affiliated Companies
The Fund primarily invests in smaller capitalized company securities that tend
to be more sensitive to changes in earnings expectations and have lower trading
volumes than mid to large capitalized company securities, and as a result, they
may experience more abrupt and erratic price movements. The Fund's investment
in these smaller capitalized companies may exceed 5% of the outstanding voting
stock. Such companies are deemed affiliates of the Fund for financial reporting
purposes. The following summarizes transactions with affiliates of the Fund as
of April 30, 1999:
<TABLE>
<CAPTION>
Dividend
Affiliates Purchases Sales Income Value
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Anacomp, Inc. - $3,709,730 $ - $13,229,450
Chic by H.I.S., Inc. - - - 1,587,375
Salient 3 Communications Inc. - 1,212,691 - 2,169,739
Signal Technology Corp. - - - 3,434,869
Transmedia Network Inc. - - - 4,212,625
Uniroyal Technology Corp. - 2,504,047 - 7,058,813
The York Group, Inc. - 428,676 41,816 4,282,850
----------- ---------- ------- -----------
- $7,855,144 $41,816 $35,975,721
=========== ========== ======= ===========
- -----------------------------------------------------------------------------------------
</TABLE>
26
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareowners and the Board of Trustees of Pioneer Small Company Fund:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer Small Company Fund (the Fund) as of April 30, 1999, and
the related statement of operations, the statements of changes in net assets,
and the financial highlights for the periods presented. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1999 by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Small Company Fund as of April 30, 1999, the results of its operations,
the changes in its net assets, and the financial highlights for the periods
presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
June 4, 1999
27
<PAGE>
Pioneer Small Company Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Trustees Officers
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice President
Margaret B.W. Graham John A. Boynton, Treasurer
John W. Kendrick Joseph P. Barri, Secretary
Marguerite A. Piret
David D. Tripple
Stephen K. West
John Winthrop
</TABLE>
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Public Accountants
Arthur Andersen LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
28
<PAGE>
- --------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
For information about any Pioneer mutual fund, please contact your investment
representative, or call Pioneer at 1-800-225-6292. Ask for a free fund
information kit, which includes a fund prospectus. Please read the prospectus
carefully before you invest or send money.
<TABLE>
<S> <C>
Growth Funds Income Funds
United States Taxable
Pioneer Capital Growth Fund Pioneer America Income Trust
Pioneer Growth Shares Pioneer Bond Fund
Pioneer Micro-Cap Fund Pioneer Short-Term Income Trust
Pioneer Mid-Cap Fund Pioneer Strategic Income Fund
Pioneer Small Company Fund
Tax-Free
Pioneer Tax-Free Income Fund
International/Global
Pioneer Emerging Markets Fund
Pioneer Europe Fund Money Market Fund
Pioneer Indo-Asia Fund Pioneer Cash Reserves Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
Growth and Income Funds
Pioneer Fund
Pioneer II
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Real Estate Shares
</TABLE>
29
<PAGE>
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
<TABLE>
<S> <C>
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
</TABLE>
This report must be preceded or accompanied by a current
Fund prospectus.
[Pioneer logo] Pioneer Investment Management, Inc.
60 State Street
Boston, Massachusetts 02109
www.pioneerfunds.com
0699 - 6553
(C) Pioneer Funds Distributor, Inc.
[Recycle symbol] Printed on Recycled Paper
