-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HqyFT9H34OBYLvsvQt1OBq4BxurcYolidgjnvCa1bNBQI4bAll/c6FRP0d4yuzwa 9b8y2CX1k96bU1tuo0wH8w== /in/edgar/work/20000616/0000863334-00-000005/0000863334-00-000005.txt : 20000919 0000863334-00-000005.hdr.sgml : 20000919 ACCESSION NUMBER: 0000863334-00-000005 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000430 FILED AS OF DATE: 20000616 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PIONEER MID CAP VALUE FUND CENTRAL INDEX KEY: 0000863334 STANDARD INDUSTRIAL CLASSIFICATION: [0000 ] IRS NUMBER: 043091159 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06106 FILM NUMBER: 656307 BUSINESS ADDRESS: STREET 1: 60 STATE ST - 19TH FL CITY: BOSTON STATE: MA ZIP: 02109-1820 BUSINESS PHONE: 6177427825 MAIL ADDRESS: STREET 1: 60 STATE ST STREET 2: 19TH FLOOR CITY: BOSTON STATE: MA ZIP: 02109-1820 FORMER COMPANY: FORMER CONFORMED NAME: PIONEER CAPITAL GROWTH FUND /MA/ DATE OF NAME CHANGE: 19980630 FORMER COMPANY: FORMER CONFORMED NAME: PIONEER GROWTH TRUST DATE OF NAME CHANGE: 19920703 N-30D 1 0001.txt SEMI-ANNUAL REPORT [Pioneer Logo] Pioneer Mid-Cap Value Fund* - --------------------------- SEMIANNUAL REPORT 4/30/00 - --------------------------- *Formerly Pioneer Capital Growth Fund Table of Contents - ---------------------------------------------------- Letter from the Chairman 1 Portfolio Summary 2 Performance Update 3 Portfolio Management Discussion 7 Schedule of Investments 10 Financial Statements 17 Notes to Financial Statements 24 Trustees, Officers and Service Providers 29
- ---------------------------------------------------- Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- LETTER FROM THE CHAIRMAN 4/30/00 - -------------------------------------------------------------------------------- Dear Shareowner, - -------------------------------------------------------------------------------- As you may know, on May 15, 2000, The Pioneer Group, Inc. and UniCredito Italiano Group announced an agreement under which UniCredito is expected to purchase all of the outstanding stock of Pioneer Group. UniCredito is Italy's second largest banking group and has over $150 billion in assets. We are pleased to be joining with UniCredito not only because of its reputation and breadth, but also because of the similar business strategies shared by the two companies. UniCredito employs many of the same investment philosophies that Pioneer has believed in for over 70 years. In the meantime, your mutual fund will be managed by the same portfolio management team, which is overseen by a Board of Trustees. In addition, the union with UniCredito will give Pioneer Investment Management, your fund's investment adviser, access to greater resources, enabling us to strengthen and support our money management efforts for all Pioneer shareowners. We expect that the transition resulting from the acquisition will not have a direct impact on fund shareowners. At Pioneer we always strive to provide our shareowners with exemplary customer service and a diverse product line. Going forward, we will continue to work as hard as we can to ensure that our investors' needs are met and that you are satisfied in any dealings you have with Pioneer. Soon you will receive a letter and a proxy statement that will contain more information about the transaction along with information about a special shareholder meeting. We are excited about the acquisition (which is subject to regulatory approval) and hope you are as well. I feel confident about prospects for the days ahead and I truly believe that Pioneer Group has entered into a relationship that will be beneficial to you. Please read this report closely, particularly the Portfolio Manager Discussion with Rod Wright. The Q&A in this section gives you the opportunity to read about your Fund and its performance over the period covered in the report. If you have questions, please contact your investment professional or call Pioneer at 1-800-225-6292. You can also visit our web site at www.pioneerfunds.com for more information. Respectfully, /s/ John F. Cogan, Jr. John F. Cogan, Jr. Chairman and President 1 Pioneer Mid-Cap Value Fund PORTFOLIO SUMMARY 4/30/00 Portfolio Diversification - -------------------------------------------------------------------------------- (As a percentage of total investment portfolio) [Beginning of Pie Chart] U.S. Common Stocks 93% Short-Term Cash Equivalents 4% International Common Stocks 2% Depositary Receipts for International Stocks 1% [End of Pie Chart] Sector Distribution - -------------------------------------------------------------------------------- (As a percentage of equity holdings) [Beginning of Pie Chart] Technology 22% Consumer Cyclicals 13% Financial 12% Consumer Staples 11% Healthcare 10% Capital Goods 8% Energy 7% Basic Materials 6% Other 2% [End of Pie Chart] 10 Largest Holdings - -------------------------------------------------------------------------------- (As a percentage of equity holdings) 1. NCR Corp. 4.62% 6. Newell Rubbermaid Inc. 2.39% 2. Columbia/HCA Healthcare 3.78 7. Health Management 1.96 Corp. Associates, Inc. 3. Imation Corp. 3.51 8. Venator Group Inc. 1.85 4. Viacom, Inc. (Class B) 2.68 9. Wellman, Inc. 1.74 (Non-voting) 5. Financial Security 2.66 10. Keane, Inc. 1.59 Assurance Holdings Ltd.
Fund holdings will vary for other periods. 2 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- PERFORMANCE UPDATE 4/30/00 CLASS A SHARES - -------------------------------------------------------------------------------- Share Prices and Distributions - -------------------------------------------------------------------------------- Net Asset Value per Share 4/30/00 10/31/99 $ 19.12 $ 19.90 Distributions per Share Income Short-Term Long-Term (10/31/99 - 4/30/00) Dividends Capital Gains Capital Gains - $ 0.933 $ 1.709
Investment Returns - -------------------------------------------------------------------------------- The mountain chart on the right shows the growth of a $10,000 investment made in Pioneer Mid-Cap Value Fund at public offering price, compared to the growth of the Standard & Poor's 500 Index and Lipper Growth Funds Index. Average Annual Total Returns (As of April 30, 2000)
Net Asset Public Offering Period Value Price* Life-of-Fund 14.14% 13.45% (7/25/90) 5 Years 10.77 9.47 1 Year 5.74 -0.32
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the period and assumes reinvestment of distributions at net asset value. Growth of $10,000 [BEGIN PLOT POINTS]
Pioneer Mid-Cap Standard & Poor's Lipper Growth Value Fund* 500 Index Funds Index 7/25/90 9425 10000 10000 9470 10824 11368 4/92 12315 12346 12414 14341 13484 13621 4/94 16752 14202 14887 20575 16679 16523 4/96 26375 21701 21294 26832 27151 24300 4/98 35327 28284 33976 32453 46631 40510 4/00 34316 51335 49030
[END PLOT POINTS] The Standard & Poor's (S&P) 500 Index is an unmanaged measure of 500 widely held common stocks listed on the New York Stock Exchange, American Stock Exchange and the over-the-counter market. The Lipper Growth Funds Index reflects the performance of mutual funds with similar portfolio characteristics and capitalization. Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees, expenses or sales charges. 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 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- PERFORMANCE UPDATE 4/30/00 CLASS B SHARES - -------------------------------------------------------------------------------- Share Prices and Distributions - -------------------------------------------------------------------------------- Net Asset Value per Share 4/30/00 10/31/99 $ 18.29 $ 19.22 Distributions per Share Income Short-Term Long-Term (10/31/99 - 4/30/00) Dividends Capital Gains Capital Gains - $ 0.933 $ 1.709
Investment Returns - -------------------------------------------------------------------------------- The mountain chart on the right shows the growth of a $10,000 investment made in Pioneer Mid-Cap Value Fund, compared to the growth of the Standard & Poor's 500 Index and Lipper Growth Funds Index. Average Annual Total Returns (As of April 30, 2000)
If If Period Held Redeemed* Life-of-Fund 12.26% 12.26% (4/4/94) 5 Years 9.92 9.79 1 Year 4.88 1.24
* 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. Growth of $10,000 [BEGIN PLOT POINTS]
Pioneer Mid-Cap Standard & Poor's Lipper Growth Value Fund* 500 Index Funds Index 4/30/94 10000 10000 10000 10321 10273 10000 11513 10922 10373 4/95 12589 12065 11099 13633 13802 12861 4/96 16019 15698 14303 15306 17116 15046 4/97 16168 19641 16322 18627 22613 19315 4/98 21137 27694 22822 16882 27585 21996 4/99 19264 33732 27210 18420 34653 28446 4/00 20205 37135 32934
[END PLOT POINTS] The Standard & Poor's (S&P) 500 Index is an unmanaged measure of 500 widely held common stocks listed on the New York Stock Exchange, American Stock Exchange and the over-the-counter market. The Lipper Growth Funds Index reflects the performance of mutual funds with similar portfolio characteristics and capitalization. Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees, expenses or sales charges. 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 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- PERFORMANCE UPDATE 4/30/00 CLASS C SHARES - -------------------------------------------------------------------------------- Share Prices and Distributions - -------------------------------------------------------------------------------- Net Asset Value per Share 4/30/00 10/31/99 $ 18.22 $ 19.16 Distributions per Share Income Short-Term Long-Term (10/31/99 - 4/30/00) Dividends Capital Gains Capital Gains - $ 0.933 $ 1.709
Investment Returns - -------------------------------------------------------------------------------- The mountain chart on the right shows the growth of a $10,000 investment made in Pioneer Mid-Cap Value Fund, compared to the growth of the Standard & Poor's 500 Index and Lipper Growth Funds Index. Average Annual Total Returns (As of April 30, 2000)
If If Period Held Redeemed* Life-of-Fund 7.84% 7.84% (1/31/96) 1 Year 4.84 4.84
* Assumes reinvestment of distributions. The 1% contingent deferred sales charge (CDSC) applies to redemptions made within one year of purchase. Growth of $10,000 [BEGIN PLOT POINTS]
Pioneer Mid-Cap Standard & Poor's Lipper Growth Value Fund* 500 Index Funds Index 1/96 10000 10000 10000 4/96 10931 10340 10459 10054 10173 9971 10449 11274 11002 11359 12631 12074 4/97 11045 12937 11935 12833 15473 14336 12721 14894 14124 12619 16030 14791 4/98 14433 18241 16688 13055 18456 16800 11527 18169 16084 12088 21230 19255 4/99 13144 22218 19897 13669 22177 20152 12567 22825 20800 12941 23419 22778 4/30 13780 24459 24082
[END PLOT POINTS] The Standard & Poor's (S&P) 500 Index is an unmanaged measure of 500 widely held common stocks listed on the New York Stock Exchange, American Stock Exchange and the over-the-counter market. The Lipper Growth Funds Index reflects the performance of mutual funds with similar portfolio characteristics and capitalization. Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees, expenses or sales charges. 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 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- PERFORMANCE UPDATE 4/30/00 CLASS Y SHARES - -------------------------------------------------------------------------------- Share Prices and Distributions - -------------------------------------------------------------------------------- Net Asset Value per Share 4/30/00 10/31/99 $ 19.18 $ 19.91 Distributions per Share Income Short-Term Long-Term (10/31/99 - 4/30/00) Dividends Capital Gains Capital Gains - $ 0.933 $ 1.709
Investment Returns - -------------------------------------------------------------------------------- The mountain chart on the right shows the growth of a $10,000 investment made in Pioneer Mid-Cap Value Fund, compared to the growth of the Standard & Poor's 500 Index and Lipper Growth Funds Index. Average Annual Total Returns* (As of April 30, 2000)
If If Period Held Redeemed Life-of-Fund 0.63% 0.63% (7/2/98) 1 Year 6.27 6.27
* Assumes reinvestment of distributions. Growth of $10,000 [BEGIN PLOT POINTS]
Pioneer Mid-Cap Standard & Poor's Lipper Growth Value Fund* 500 Index Funds Index 7/98 10000 10000 10000 9352 9788 10000 7739 8361 8394 7796 8919 8953 10/98 8287 9635 9573 8391 10205 10144 8719 10815 10992 8724 11259 11461 8461 10895 11069 8921 11352 11549 4/99 9520 11783 11843 9681 11488 11613 10177 12150 12299 9929 11761 11995 9501 11687 11860 9059 11392 11662 10/99 9161 12105 12381 9525 12336 12904 9868 13086 14065 9467 12420 13558 8987 12170 14358 10089 13383 15089 4/00 10116 12971 14334
[END PLOT POINTS] The Standard & Poor's (S&P) 500 Index is an unmanaged measure of 500 widely held common stocks listed on the New York Stock Exchange, American Stock Exchange and the over-the-counter market. The Lipper Growth Funds Index reflects the performance of mutual funds with similar portfolio characteristics and capitalization. Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees, expenses or sales charges. 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. 6 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- PORTFOLIO MANAGEMENT DISCUSSION 4/30/00 - -------------------------------------------------------------------------------- Pioneer Mid-Cap Value Fund ended the first half of its fiscal year on April 30, 2000. In the following discussion, Rod Wright, the Fund's portfolio manager, provides an update on the Fund, the economic environment and investment strategies that influenced the Fund's performance over the six-month period. Q: How did the Fund perform? A: For the six-month period ended April 30, 2000, the Fund's Class A shares returned 10.15%, while Class B shares returned 9.69% and Class C shares had a total return of 9.65%, all at net asset value. During the same six-month period, the Standard & Poor's 500 Index returned 7.15%, and the average return in the Lipper mid-cap value category was 13.46%. (Lipper is an independent company that tracks mutual fund performance.) The Fund performed particularly well in the latter part of the period as investors turned away from high-valuation technology stocks and began focusing on stocks of companies with reasonable valuations and strong fundamentals. Q: What factors influenced the Fund's performance? A: The biggest factors that helped the performance were a healthy weighting in energy companies and a relative underweighting in technology stocks. In energy, Fund 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 Fund when larger companies announced the purchase of five portfolio holdings: ETEC Systems; Financial Security Assurance Holdings; ReliaStar Financial; Young & Rubicam; and Sterling Commerce. In addition, restructurings at two other holdings, Borders Group and Dayton Power & Light, supported performance. 7 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- PORTFOLIO MANAGEMENT DISCUSSION 4/30/00 (continued) - -------------------------------------------------------------------------------- Q: While the Fund de-emphasized 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 Fund ended the fiscal period with about 22% invested in the sector. Not only was the Fund 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 Fund's largest holdings. Imation is debt-free and has strong cash flow, growing earnings and stock selling at a very reasonable price. The company is involved in the manufacture and distribution of media storage devices, including tapes for large technology companies and CDs for computers. It also is the world's largest supplier of floppy discs. In addition, it has developed a new digital system used extensively by printers and on the Internet to reproduce colors. The company's strong fundamentals and low stock price were very attractive. Another example of a value technology holding was NCR, which is involved in many businesses, including automatic teller machines, automatic check-out devices for retail stores, and data warehousing. Q: Outside of technology, what were some of your other industry themes? A: On April 30, the Fund had about 7% of equity holdings in energy stocks, and these investments definitely helped. Among the holdings were R & B Falcon Corp. and Transocean Offshore, two offshore drilling companies. Performance was boosted by holdings in several domestic exploration and production companies, including Apache, Ocean Energy and Burlington Resources. The Fund also held positions in Tosco, a refiner, and Conoco, a diversified company involved in refining, exploration and production. 8 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Beyond energy, the emphasis on healthcare stocks and de-emphasis of financial services stocks worked well. The consumer cyclicals and consumer staples sectors were well represented in the Fund, at 13% and 11% of equity assets, respectively. We invested in consumer cyclicals, primarily retailers, as their stock prices started coming down and their relative value increased. We like consumer staples as a traditional defensive sector with steady cash flow that can be relied upon in different economic environments. Q: The Fund's name changed on February 28 from Pioneer Capital Growth Fund to Pioneer Mid-Cap Value Fund. 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. The technology rally from November through mid-March was an example of classic bubble psychology. In the future, we don't see investors paying extremely high valuations--we expect the market to behave a little more rationally. 9 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS 4/30/00 (unaudited) - --------------------------------------------------------------------------------
Shares Value COMMON STOCKS - 96.2% Basic Materials - 5.5% Aluminium - 0.7% 150,000 Reynolds Metals Co. $ 9,975,000 ------------ Chemicals - 0.9% 425,000 IMC Global Inc. $ 6,560,938 150,000 Rohm & Hass Co. 5,343,750 ------------ $ 11,904,688 ------------ Chemicals (Specialty) - 2.6% 670,000 Borden Chemicals & Plastics, L.P. $ 2,721,875 400,000 Hercules, Inc. 6,225,000 200,000 Millennium Chemicals Inc. 3,987,500 1,075,000 Wellman, Inc. 22,978,125 ------------ $ 35,912,500 ------------ Paper & Forest Products - 1.3% 325,000 Bowater, Inc. $ 17,875,000 ------------ Total Basic Materials $ 75,667,188 ------------ Capital Goods - 7.9% Aerospace/Defense - 0.9% 200,000 General Dynamics Corp. $ 11,700,000 ------------ Electrical Equipment - 2.6% 250,000 Molex, Inc. $ 13,734,375 125,000 SCI Systems, Inc.* 6,656,250 175,000 Vishay Intertechnology, Inc.* 14,678,125 ------------ $ 35,068,750 ------------ Machinery (Diversified) - 1.2% 700,000 Kaydon Corp. $ 16,362,500 ------------ Manufacturing (Specialized) - 0.9% 70,666 Energizer Holdings Inc.* $ 1,205,739 200,000 Sealed Air Corp.* 11,125,000 ------------ $ 12,330,739 ------------ Metal Fabricators - 1.0% 780,000 Brush Wellman, Inc. $ 14,430,000 ------------ Waste Management - 1.3% 1,100,000 Waste Management Inc. $ 17,462,500 ------------ Total Capital Goods $107,354,489 ------------
10 The accompanying notes are an integral part of these financial statements. Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Shares Value Communication Services - 1.4% Telephone - 1.4% 225,000 Century Telephone Enterprises, Inc. $ 5,512,500 30,000 Mpower Communications Corp.* 1,470,000 125,000 Telephone and Data Systems, Inc. 12,750,000 ----------- Total Communication Services $19,732,500 ----------- Consumer Cyclicals - 12.3% Auto Parts & Equipment - 0.8% 200,000 ITT Industries Inc. $ 6,312,500 150,000 Lear Corp.* 4,490,625 ----------- $10,803,125 ----------- Household Furnishings & Appliances - 0.7% 375,000 Ethan Allen Interiors, Inc. $10,007,813 ----------- Leisure Time (Products) - 1.5% 1,700,000 Mattel Inc. $20,825,000 ----------- Publishing - 1.0% 650,000 PRIMEDIA, Inc.* $13,568,750 ----------- Retail (Computer & Electronics) - 0.7% 175,000 Tandy Corp. $ 9,975,000 ----------- Retail (Discounters) - 0.0% 23,000 Family Dollar Stores, Inc. $ 442,520 ----------- Retail (General Merchandise) - 0.7% 1,100,000 Kmart Corp.* $ 8,937,500 ----------- Retail (Specialty) - 4.0% 175,000 Blockbuster Inc. $ 1,815,624 1,035,000 Borders Group, Inc. 16,430,625 910,000 Cole National Corp.+ 5,516,875 1,276,800 OfficeMax, Inc.* 7,182,000 2,050,000 Venator Group Inc.* 24,343,750 ----------- $55,288,874 ----------- Retail (Specialty-Apparel) - 0.1% 68,000 AnnTaylor Stores Corp.* $ 1,429,530 ----------- Services (Advertising/Marketing) - 0.8% 200,000 Young & Rubicam Inc. $11,137,500 -----------
The accompanying notes are an integral part of these financial statements. 11 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS 4/30/00 (unaudited) (continued) - --------------------------------------------------------------------------------
Shares Value Services (Commercial & Consumer) - 1.0% 509,000 Regis Corp. $ 5,948,938 46,000 Sabre Group Holdings, Inc. 1,585,297 1,200,000 Stewart Enterprises, Inc. 5,775,000 ------------ $ 13,309,235 ------------ Textiles (Apparel) - 1.0% 300,000 Nike, Inc. $ 13,031,250 ------------ Total Consumer Cyclicals $168,756,097 ------------ Consumer Staples - 10.9% Broadcasting (Television/Radio/Cable) - 0.5% 307,000 USA Networks Inc.* $ 7,061,000 ------------ Entertainment - 2.6% 650,000 Viacom, Inc. (Class B) (Non-voting)* $ 35,343,750 ------------ Foods - 0.9% 250,000 Ralston Purina Co. $ 4,421,875 250,000 Sara Lee Corp. 3,750,000 400,000 Tyson Foods, Inc. 4,175,000 ------------ $ 12,346,875 ------------ Housewares - 2.3% 1,250,000 Newell Rubbermaid Inc. $ 31,484,375 ------------ Restaurants - 2.1% 1,235,000 Lone Star Steakhouse & Saloon, Inc. $ 14,588,437 350,000 McDonald's Corp. 13,343,750 ------------ $ 27,932,187 ------------ Retail Stores (Food Chain) - 0.4% 300,000 Kroger Co.* $ 5,568,750 ------------ Services (Employment) - 0.7% 1,300,000 Modis Professional Services Inc.* $ 9,831,250 ------------ Specialty Printing - 1.4% 1,250,000 John H. Harland Co. $ 19,218,750 ------------ Total Consumer Staples $148,786,937 ------------ Energy - 7.1% Oil (Domestic Integrated) - 1.0% 575,000 Conoco Inc. $ 13,692,188 ------------
12 The accompanying notes are an integral part of these financial statements. Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Shares Value Oil & Gas (Drilling & Equipment) - 2.7% 1,000,000 R & B Falcon Corp.* $20,750,000 350,000 Transocean Offshore Inc. 16,450,000 ----------- $37,200,000 ----------- Oil & Gas (Production/Exploration) - 2.7% 350,000 Apache Corp. $16,953,125 275,000 Burlington Resources Inc. 10,810,937 700,000 Ocean Energy Inc.* 9,056,250 ----------- $36,820,312 ----------- Oil & Gas (Refining & Marketing) - 0.7% 300,000 Tosco Corp. $ 9,618,750 ----------- Total Energy $97,331,250 ----------- Financial - 11.9% Banks (Major Regional) - 0.4% 150,000 Comerica, Inc. $ 6,356,250 ----------- Banks (Regional) - 2.5% 360,000 Marshall & Ilsley Corp. $16,717,500 475,000 North Fork Bankcorporation, Inc. 7,689,062 425,000 TCF Financial Corp. 9,934,375 ----------- $34,340,937 ----------- Financial (Diversified) - 1.1% 450,000 Axa Financial, Inc. $14,681,250 ----------- Insurance (Life/Health) - 0.4% 125,000 ReliaStar Financial Corp. $ 5,382,813 ----------- Insurance (Multi-Line) - 0.4% 225,000 Nationwide Financial Services, Inc. $ 6,257,813 ----------- Insurance (Property/Casualty) - 3.8% 719,000 Ace Ltd. $17,211,063 475,000 Financial Security Assurance Holdings Ltd. 35,060,938 ----------- $52,272,001 ----------- Investment Banking/Brokerage - 1.7% 250,000 Bear Stearns Companies Inc. $10,718,750 275,000 Paine Webber Group, Inc. 12,065,625 ----------- $22,784,375 -----------
The accompanying notes are an integral part of these financial statements. 13 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS 4/30/00 (unaudited) (continued) - --------------------------------------------------------------------------------
Shares Value Savings & Loan Companies - 1.6% 750,000 Charter One Financial Inc. $ 15,234,374 250,000 Washington Mutual, Inc. 6,390,625 ------------ $ 21,624,999 ------------ Total Financial $163,700,438 ------------ Healthcare - 9.8% Biotechnology - 0.5% 150,000 Pharmacia Corp. $ 7,490,625 ------------ Healthcare (Diversified) - 0.3% 100,000 Elan Corp. Plc (A.D.R.)* $ 4,287,500 ------------ Healthcare (Drugs - Generic & Others) - 1.6% 250,000 Alza Corp.* $ 11,015,625 375,000 Mylan Laboratories Inc. 10,640,625 ------------ $ 21,656,250 ------------ Healthcare (Hospital Management) - 5.5% 1,750,000 Columbia/HCA Healthcare Corp. $ 49,765,624 1,625,000 Health Management Associates, Inc.* 25,898,438 ------------ $ 75,664,062 ------------ Healthcare (Managed Care) - 0.8% 150,000 Wellpoint Health Networks Inc.* $ 11,062,500 ------------ Healthcare (Medical Products/Supplies) - 0.5% 250,000 Boston Scientific Corp.* $ 6,625,000 ------------ Healthcare (Specialized Services) - 0.6% 263,000 Lincare Holdings Inc.* $ 8,021,500 ------------ Total Healthcare $134,807,437 ------------ Technology - 20.9% Communications Equipment - 2.7% 200,000 ADC Telecommunications Inc.* $ 12,150,000 150,000 Alcatel Alsthom (A.D.R.) 6,815,625 600,000 Andrew Corp.* 17,662,500 ------------ $ 36,628,125 ------------ Computers (Hardware) - 5.2% 200,000 Gateway 2000 Inc.* $ 11,050,000 1,575,000 NCR Corp.* 60,834,375 ------------ $ 71,884,375 ------------
14 The accompanying notes are an integral part of these financial statements. Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Shares Value Computers (Networking) - 0.6% 175,000 Lycos, Inc.* $ 8,137,500 ------------ Computers (Peripherals) - 2.7% 225,000 Seagate Technology, Inc.* $ 11,432,813 1,350,000 Storage Technology Corp.* 17,550,000 175,000 Xircom, Inc.* 6,901,563 ------------ $ 35,884,376 ------------ Computers (Software & Services) - 0.5% 175,000 Synopsys, Inc.* $ 7,350,000 ------------ Electronic (Semiconductors) - 1.0% 275,000 Adaptec Inc.* $ 7,425,000 50,000 Micron Technology, Inc.* 6,962,500 ------------ $ 14,387,500 ------------ Photography/Imaging - 4.3% 225,000 Eastman Kodak Co. $ 12,585,938 1,650,000 Imation Corp.* 46,303,124 ------------ $ 58,889,062 ------------ Services (Computer Systems) - 3.1% 200,000 Investment Technology Group, Inc. $ 7,500,000 725,000 Keane, Inc.* 20,934,375 400,000 SunGard Data System, Inc.* 13,825,000 ------------ $ 42,259,375 ------------ Services (Data Processing) - 0.8% 225,000 First Data Corp. $ 10,954,688 ------------ Total Technology $286,375,001 ------------ Transportation - 0.2% Air Freight - 0.2% 75,000 CNF Transportation Inc. $ 2,095,313 ------------ Total Transportation $ 2,095,313 ------------ Utilities - 8.3% Electric Companies - 5.6% 250,000 Allegheny Energy Inc. $ 7,593,750 600,000 Citizens Utilities Co. (Class B)* 9,637,500 550,000 CMS Energy Corp. 10,450,000 425,000 DPL, Inc. 9,881,250 200,000 DQE, Inc. 7,650,000
The accompanying notes are an integral part of these financial statements. 15 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS 4/30/00 (unaudited) (continued) - --------------------------------------------------------------------------------
Shares Value Electric Companies - (continued) 300,000 DTE Energy Co. $ 9,787,500 200,000 Kansas City Power & Light Co. 5,137,500 380,000 NSTAR 16,743,750 -------------- $ 76,881,250 -------------- Natural Gas - 2.7% 450,000 El Paso Energy Corp. $ 19,125,000 416,000 KeySpan Energy Corp. 12,220,000 275,000 Questar Corp. 5,173,437 -------------- $ 36,518,437 -------------- Total Utilities $ 113,399,687 -------------- TOTAL COMMON STOCKS (Cost $1,198,154,936) $1,318,006,337 --------------
Principal Amount TEMPORARY CASH INVESTMENTS - 3.8% Commercial Paper - 3.8% $27,036,000 Citicorp Inc., 5.95%, 5/02/00 $ 27,036,000 25,481,000 Household Finance Corp., 6.0%, 5/01/00 25,481,000 -------------- TOTAL TEMPORARY CASH INVESTMENTS (Cost $52,517,000) $ 52,517,000 -------------- TOTAL INVESTMENT IN SECURITIES - 100% (Cost $1,250,671,936) $1,370,523,337 --------------
* 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, 2000, the net unrealized gain on investments based on cost for federal income tax purposes of $1,250,351,787 was as follows: Aggregate gross unrealized gain for all investments in which there is an excess of value over tax cost $258,064,385 Aggregate gross unrealized loss for all investments in which there is an excess of tax cost over value (137,892,835) ------------ Net unrealized gain $120,171,550 ------------
Purchases and sales of securities (excluding temporary cash investments) for the six months ended April 30, 2000 aggregated $454,938,958 and $727,851,968, respectively. 16 The accompanying notes are an integral part of these financial statements. Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- BALANCE SHEET 4/30/00 (unaudited) - -------------------------------------------------------------------------------- ASSETS: Investment in securities, at value (including temporary cash investments of $52,517,000) (cost $1,250,671,936) $ 1,370,523,337 Cash 421 Receivables - Investment securities sold 23,397,294 Fund shares sold 552,724 Dividends and interest 1,162,355 Other 1,114 --------------- Total assets $ 1,395,637,245 --------------- LIABILITIES: Payables - Investment securities purchased $ 10,030,935 Fund shares repurchased 2,839,834 Due to affiliates 1,868,424 Accrued expenses 165,358 Total liabilities $ 14,904,551 --------------- NET ASSETS: Paid-in capital $ 1,236,927,369 Accumulated undistributed net investment income 4,248,162 Accumulated undistributed net realized gain on investments 19,705,762 Net unrealized gain on investments 119,851,401 --------------- Total net assets $ 1,380,732,694 --------------- NET ASSET VALUE PER SHARE: (Unlimited number of shares authorized) Class A (based on $993,572,602/51,956,251 shares) $ 19.12 --------------- Class B (based on $357,069,178/19,526,628 shares) $ 18.29 --------------- Class C (based on $26,421,715/1,450,182 shares) $ 18.22 --------------- Class Y (based on $3,669,199/191,279 shares) $ 19.18 --------------- MAXIMUM OFFERING PRICE: Class A $ 20.29 ---------------
The accompanying notes are an integral part of these financial statements. 17 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS (unaudited) - -------------------------------------------------------------------------------- For the Six Months Ended 4/30/00
INVESTMENT INCOME: Dividends $9,092,261 Interest 1,055,315 ---------- Total investment income $ 10,147,576 ------------ EXPENSES: Management fees Basic fee $4,753,911 Performance adjustment (721,245) Transfer agent fees Class A 1,585,637 Class B 718,897 Class C 61,881 Class Y 339 Distribution fees Class A 1,283,766 Class B 1,911,228 Class C 142,772 Administrative fees 151,216 Custodian fees 63,904 Registration fees 43,038 Professional fees 30,927 Printing 75,135 Fees and expenses of nonaffiliated trustees 21,335 Miscellaneous 14,215 ---------- Total expenses $ 10,136,956 Less fees paid indirectly (132,552) ------------ Net expenses $ 10,004,404 ------------ Net investment income $ 143,172 ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investments $ 22,927,757 Change in net unrealized gain on investments 112,485,818 ------------ Net gain on investments $135,413,575 ------------ Net increase in net assets resulting from operations $135,556,747 ------------
18 The accompanying notes are an integral part of these financial statements. Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- For the Six Months Ended 4/30/00 and the Year Ended 10/31/99
Six Months Ended Year 4/30/00 Ended FROM OPERATIONS: (unaudited) 10/31/99 Net investment income $ 143,172 $ 2,489,727 Net realized gain on investments 22,927,757 201,617,649 Change in net unrealized gain or loss on investments 112,485,818 (29,027,037) -------------- --------------- Net increase (decrease) in net assets resulting from operations $ 135,556,747 $ 175,080,339 -------------- --------------- DISTRIBUTIONS TO SHAREHOLDERS: Net investment income: Class A ($0.00 and $0.02 per share, respectively) $ -- $ (1,273,056) Class Y ($0.00 and $0.14 per share, respectively) -- (27,357) Net realized gain: Class A ($2.64 and $0.92 per share, respectively) (140,427,174) (61,159,129) Class B ($2.64 and $0.92 per share, respectively) (56,102,297) (27,238,926) Class C ($2.64 and $0.92 per share, respectively) (4,312,421) (2,416,140) Class Y ($2.64 and $0.92 per share, respectively) (523,675) (184,005) -------------- --------------- Total distributions to shareholders $ (201,365,567) $ (92,298,613) -------------- --------------- FROM FUND SHARE TRANSACTIONS: Net proceeds from sale of shares $ 149,041,434 $ 361,192,810 Reinvestment of distributions 176,881,605 81,257,270 Cost of shares repurchased (395,409,540) (945,632,719) -------------- --------------- Net decrease in net assets resulting from fund share transactions $ (69,486,501) $ (503,182,639) -------------- --------------- Net decrease in net assets $ (135,295,321) $ (420,400,913) NET ASSETS: Beginning of period 1,516,028,015 1,936,428,928 -------------- --------------- End of period (including accumulated undistributed net investment income of $4,248,162 and $4,104,990, respectively) $1,380,732,694 $1,516,028,015 -------------- ---------------
'00 Shares '00 Amount CLASS A (unaudited) (unaudited) '99 Shares '99 Amount Shares sold 5,752,722 $107,000,980 13,114,186 $ 265,492,035 Reinvestment of distributions 7,094,650 127,987,583 3,185,587 57,882,157 Less shares repurchased (14,532,871) (266,494,008) (31,430,432) (625,536,208) ----------- ------------ ----------- ------------- Net decrease (1,685,499) $(31,505,445) (15,130,659) $(302,162,016) ----------- ------------ ----------- ------------- CLASS B Shares sold 2,084,872 $ 37,173,405 3,959,590 $ 77,745,833 Reinvestment of distributions 2,642,465 45,741,072 1,230,800 21,748,246 Less shares repurchased (6,647,784) (116,500,619) (14,742,822) (281,730,159) ----------- ------------ ----------- ------------- Net decrease (1,920,447) $(33,586,142) (9,552,432) $(182,236,080) ----------- ------------ ----------- ------------- CLASS C Shares sold 256,877 $ 4,476,926 872,665 $ 17,052,108 Reinvestment of distributions 152,333 2,629,275 80,289 1,415,505 Less shares repurchased (648,634) (11,363,164) (1,959,308) (37,039,840) ----------- ------------ ----------- ------------- Net decrease (239,424) $ (4,256,963) (1,006,354) $ (18,572,227) ----------- ------------ ----------- ------------- CLASS Y Shares sold 21,146 $ 390,123 44,268 $ 902,834 Reinvestment of distributions 28,996 523,675 11,671 211,362 Less shares repurchased (58,521) (1,051,749) (65,741) (1,326,512) ----------- ------------ ----------- ------------- Net decrease (8,379) $ (137,951) (9,802) $ (212,316) ----------- ------------ ----------- -------------
The accompanying notes are an integral part of these financial statements. 19 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 4/30/00 - --------------------------------------------------------------------------------
Six Months Ended 4/30/00 Year Ended (unaudited) 10/31/99 CLASS A Net asset value, beginning of period $ 19.90 $ 19.02 -------- ---------- Increase (decrease) from investment operations: Net investment income $ 0.03 $ 0.12 Net realized and unrealized gain (loss) on investments 1.83 1.70 -------- ---------- Net increase (decrease) from investment operations $ 1.86 $ 1.82 Distributions to shareholders: Net investment income - (0.02) Net realized gain (2.64) (0.92) -------- ---------- Net increase (decrease) in net asset value $ (0.78) $ 0.88 -------- ---------- Net asset value, end of period $ 19.12 $ 19.90 -------- ---------- Total return* 10.15% 10.02% Ratio of net expenses to average net assets+ 1.17%** 1.18% Ratio of net investment income to average net assets+ 0.23%** 0.37% Portfolio turnover rate 65%** 75% Net assets, end of period (in thousands) $993,573 $1,067,562 Ratios assuming reduction for fees paid indirectly: Net expenses 1.15%** 1.16% Net investment income 0.25%** 0.39% Year Ended Year Ended Year Ended Year Ended 10/31/98 10/31/97 10/31/96 10/31/95 CLASS A Net asset value, beginning of period $ 23.23 $ 19.85 $ 19.42 $ 17.26 ---------- ---------- ---------- -------- Increase (decrease) from investment operations: Net investment income $ 0.08 $ 0.15 $ 0.08 $ 0.08 Net realized and unrealized gain (loss) on investments (1.94) 4.17 2.31 3.03 ---------- ---------- ---------- -------- Net increase (decrease) from investment operations $ (1.86) $ 4.32 $ 2.39 $ 3.11 Distributions to shareholders: Net investment income (0.10) (0.06) (0.09) - Net realized gain (2.25) (0.88) (1.87) (0.95) ---------- ---------- ---------- -------- Net increase (decrease) in net asset value $ (4.21) $ 3.38 $ 0.43 $ 2.16 ---------- ---------- ---------- -------- Net asset value, end of period $ 19.02 $ 23.23 $ 19.85 $ 19.42 ---------- ---------- ---------- -------- Total return* (8.74)% 22.67% 13.12% 19.32% Ratio of net expenses to average net assets+ 1.08% 1.00% 1.02% 1.16% Ratio of net investment income to average net assets+ 0.33% 0.64% 0.43% 0.53% Portfolio turnover rate 61% 63% 37% 59% Net assets, end of period (in thousands) $1,308,335 $1,591,655 $1,299,611 $845,415 Ratios assuming reduction for fees paid indirectly: Net expenses 1.07% 0.98% 1.00% 1.14% Net investment income 0.34% 0.66% 0.45% 0.55%
* Assumes initial investment at net asset value at the beginning of each period, reinvestment of all 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. + Ratios assuming no reduction for fees paid indirectly. The accompanying notes are an integral part of these financial statements. 20 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 4/30/00 - --------------------------------------------------------------------------------
Six Months Ended 4/30/00 Year Ended (unaudited) 10/31/99 CLASS B Net asset value, beginning of period $ 19.22 $ 18.52 --------- -------- Increase (decrease) from investment operations: Net investment loss $ (0.09) $ (0.18) Net realized and unrealized gain (loss) on investments 1.80 1.80 --------- -------- Net increase (decrease) from investment operations $ 1.71 $ 1.62 Distributions to shareholders: Net investment income - - Net realized gain (2.64) (0.92) --------- ------- Net decrease (increase) in net asset value $ (0.93) $ 0.70 --------- ------- Net asset value, end of period $ 18.29 $ 19.22 --------- -------- Total return* 9.69% 9.17% Ratio of net expenses to average net assets+ 1.99%** 2.00% Ratio of net investment loss to average net assets+ (0.58)%** (0.44)% Portfolio turnover rate 65%** 75% Net assets, end of period (in thousands) $ 357,069 $412,116 Ratios assuming reduction for fees paid indirectly: Net expenses 1.98%* * 1.99% Net investment loss (0.57)%** (0.43)% Year Ended Year Ended Year Ended Year Ended 10/31/98 10/31/97 10/31/96 10/31/95 CLASS B Net asset value, beginning of period $ 22.73 $ 19.53 $ 19.20 $ 17.20 -------- -------- -------- -------- Increase (decrease) from investment operations: Net investment loss $ (0.10) $ (0.02) $ (0.04) $ (0.01) Net realized and unrealized gain (loss) on investments (1.86) 4.10 2.26 2.96 ------- -------- -------- -------- Net increase (decrease) from investment operations $ (1.96) $ 4.08 $ 2.22 $ 2.95 Distributions to shareholders: Net investment income - - (0.02) - Net realized gain (2.25) (0.88) (1.87) (0.95) ------- -------- -------- -------- Net decrease (increase) in net asset value $ (4.21) $ 3.20 $ 0.33 $ 2.00 ------- -------- -------- -------- Net asset value, end of period $ 18.52 $ 22.73 $ 19.53 $ 19.20 ------- -------- -------- -------- Total return* (9.42)% 21.70% 12.27% 18.42% Ratio of net expenses to average net assets+ 1.85% 1.76% 1.79% 1.93% Ratio of net investment loss to average net assets+ (0.43)% (0.12)% (0.35)% ( 0.18%) Portfolio turnover rate 61% 63% 37% 59% Net assets, end of period (in thousands) $574,259 $745,258 $589,188 $311,672 Ratios assuming reduction for fees paid indirectly: Net expenses 1.84% 1.75% 1.78% 1.88% Net investment loss (0.42)% (0.11)% (0.34)% (0.13)%
* Assumes initial investment at net asset value at the beginning of each period, reinvestment of all 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. + Ratios assuming no reduction for fees paid indirectly. The accompanying notes are an integral part of these financial statements. 21 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 4/30/00 - --------------------------------------------------------------------------------
Six Months Ended 4/30/00 Year Ended Year Ended Year Ended 1/31/96 to (unaudited) 10/31/99 10/31/98 10/31/97(a) 10/31/96 CLASS C Net asset value, beginning of period $ 19.16 $ 18.49 $ 22.69 $ 19.53 $ 18.69 -------- ------- ------- ------- ------- Increase (decrease) from investment operations: Net investment loss $ (0.12) $ (0.21) $ (0.09) $ (0.03) $ (0.02) Net realized and unrealized gain (loss) on investments 1.82 1.80 (1.86) 4.11 0.86 -------- ------- ------- ------- ------- Net increase (decrease) from investment operations $ 1.70 $ 1.59 $ (1.95) $ 4.08 $ 0.84 Distributions to shareholders: Net investment income - - - (0.04) - Net realized gain (2.64) (0.92) (2.25) (0.88) - -------- ------- ------- ------- ------- Net decrease (increase) in net asset value $ (0.94) $ 0.67 $ (4.20) $ 3.16 $ 0.84 -------- ------- ------- ------- ------- Net asset value, end of period $ 18.22 $ 19.16 $ 18.49 $ 22.69 $ 19.53 -------- ------- ------- ------- ------- Total return* 9.65% 9.02% (9.38)% 21.74% 4.50% Ratio of net expenses to average net assets+ 2.05%** 2.09% 1.84% 1.75% 1.79%** Ratio of net investment loss to average net assets+ (0.64)%** (0.52)% (0.43)% (0.15)% (0.39)%** Portfolio turnover rate 65%** 75% 61% 63% 37% Net assets, end of period (in thousands) $ 26,422 $32,373 $49,842 $60,211 $27,202 Ratios assuming reduction for fees paid indirectly: Net expenses 2.03%** 2.07% 1.83% 1.73% 1.74%** Net investment loss (0.62)%** (0.50)% (0.42)% (0.13)% (0.34)%**
(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 all 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. + Ratios assuming no reduction for fees paid indirectly. The accompanying notes are an integral part of these financial statements. 22 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS 4/30/00 - --------------------------------------------------------------------------------
Six Months Ended 4/30/00 Year Ended 7/2/98 to (unaudited) 10/31/99 10/31/98 CLASS Y Net asset value, beginning of period $ 19.91 $ 19.06 $ 23.00 ------- ------- -------- Increase (decrease) from investment operations: Net investment income $ 0.08 $ 0.19 $ 0.04 Net realized and unrealized gain (loss) on investments 1.83 1.72 (3.98) ------- ------- -------- Net increase (decrease) from investment operations $ 1.91 $ 1.91 $ (3.94) Distributions to shareholders: Net investment income $ - $ (0.14) $ - Net realized gain (2.64) (0.92) - -------- -------- -------- Net increase (decrease) in net asset value $ (0.73) $ 0.85 $ (3.94) -------- -------- -------- Net asset value, end of period $ 19.18 $ 19.91 $ 19.06 -------- -------- -------- Total return* 10.43% 10.54% (17.13)% Ratio of net expenses to average net assets+ 0.63%** 0.66% 0.79%* * Ratio of net investment income to average net assets+ 0.77%** 0.88% 0.68%* * Portfolio turnover rate 65%** 75% 61% Net assets, end of period (in thousands) $ 3,669 $ 3,976 $ 3,993 Ratios assuming reduction for fees paid indirectly: Net expenses 0.62%** 0.65% 0.78%* * Net investment income 0.78%** 0.89% 0.69%* *
* Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, and the complete redemption of the investment at net asset value at the end of each period. ** Annualized. + Ratios assuming no reduction for fees paid indirectly. The accompanying notes are an integral part of these financial statements. 23 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS 4/30/00 (unaudited) - -------------------------------------------------------------------------------- 1. Organization and Significant Accounting Policies Pioneer Mid-Cap Value Fund (the Fund), formerly Pioneer Capital Growth 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 by investing in a diversified portfolio of securities consisting primarily of common stocks. The Fund offers four classes of shares--Class A, Class B, Class C, and Class Y shares. Each class of shares represents an interest in the same portfolio of investments of the Fund and has equal rights to voting, redemptions, dividends and liquidation, except that the level of transfer agent and distribution fees may differ among classes. Class A, Class B and Class C shareholders have exclusive voting rights with respect to the distribution plan for each class. There is no distribution plan for Class Y shares. 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 as of 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 Board of 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. 24 Pioneer Mid-Cap Value 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 first to select for sale those securities that have the highest cost and also qualify for long-term capital gain or loss treatment for tax purposes. Settlements from litigation and class action suits are recognized when the fund acquires an enforceable right to such awards. Included in net realized gain from investments is $117,142 of class action settlements received by the Fund during the six months ended April 30, 2000. 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 as of trade date. Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund and an indirect wholly owned subsidiary of The Pioneer Group, Inc. (PGI), earned $134,655 in underwriting commissions on the sale of fund shares during the six months ended April 30, 2000. 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. Class Y shares are not subject to a distribution plan. 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 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 25 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS 4/30/00 (unaudited) (cont.) - -------------------------------------------------------------------------------- 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. Distributions to shareholders are recorded as of the ex-dividend date. Distributions paid by the Fund, if any, with respect to each class of shares are calculated in the same manner, at the same time, on the same day and in the same amount, except that Class A, Class B, Class C, and Class Y shares bear different transfer agent and distribution fees. 2. Management Agreement Pioneer Investment Management, Inc. (PIM), the Fund's investment adviser, manages the Fund's portfolio and is a wholly owned subsidiary of PGI. PIM receives a basic fee that is calculated at the annual rate of 0.70% of the Fund's average daily net assets up to $500 million; 0.65% of the next $500 million, and 0.625% of the excess over $1 billion. Effective May 1, 1999, the basic fee became subject to a performance adjustment up to a maximum of +/- 0.10% based on the Fund's investment performance as compared with the Lipper Growth Funds Index. For the six months ended April 30, 2000 the aggregate performance adjustment resulted in a reduction to the basic fee of $721,245. The net management fee for the period was equivalent to an annualized rate of 0.56% of 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, 2000, $663,188 was payable to PIM related to management fees, administrative fees 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 $698,079 in transfer agent fees payable to PSC at April 30, 2000. 4. Distribution Plans The Fund adopted Plans of Distribution with respect to Class A, Class B, and Class C 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 26 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- to the Class A Plan, the Fund pays PFD a service fee of up to 0.25% of the average daily net assets attributable to Class A shares 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 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 $507,157 in distribution fees payable to PFD at April 30, 2000. In addition, redemptions of each class of shares (except Class Y shares) may be subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on certain net asset value purchases of Class A shares that are redeemed 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 4.00%, 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, 2000, CDSCs in the amount of $1,171,285 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, 2000, the Fund's expenses were reduced by $132,552 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, 2000, the Fund had no borrowings under this agreement. 27 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS 4/30/00 (unaudited) (cont.) - -------------------------------------------------------------------------------- 7. Affiliated Companies The Fund may invest 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, 2000:
- --------------------------------------------------------------------------- Dividend Affiliates Purchases Sales Income Value - ----------------------- ----------- ------- --------- ------------- Cole National Corp. $91,431 $ - $8,900 $5,516,875 ------- ----- ------ ----------
- --------------------------------------------------------------------------- 28 Pioneer Mid-Cap Value Fund - -------------------------------------------------------------------------------- TRUSTEES, OFFICERS AND SERVICE PROVIDERS - -------------------------------------------------------------------------------- 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 Margaret B.W. Graham President Marguerite A. Piret J. Rodman Wright, Vice President David D. Tripple Eric W. Reckard, Treasurer Stephen K. West Joseph P. Barri, Secretary John Winthrop Investment Adviser Pioneer Investment Management, Inc. Custodian Brown Brothers Harriman & Co. Principal Underwriter Pioneer Funds Distributor, Inc. Legal Counsel Hale and Dorr LLP Shareowner Services and Transfer Agent Pioneering Services Corporation 29 - -------------------------------------------------------------------------------- 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: Account information, including existing accounts, new accounts, prospectuses, applications and service forms 1-800-225-6292 FactFoneSM 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 ask.pioneer@piog.com (for general questions about Pioneer only) Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current Fund prospectus. Pioneer Investment Management, Inc. 8276-00-0600 60 State Street (c) Pioneer Funds Distributor, Inc. Boston, Massachusetts 02109 [recycle logo] Printed on Recycled Paper www.pioneerfunds.com -----END PRIVACY-ENHANCED MESSAGE-----