N-30D 1 midcap.txt SEMI ANNUAL REPORT [LOGO] PIONEER INVESTMENTS-Registered Trademark- PIONEER MID-CAP VALUE FUND SEMIANNUAL REPORT 4/30/01 TABLE OF CONTENTS Letter from the President 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 28 The Pioneer Family of Mutual Funds 29
PIONEER MID-CAP VALUE FUND LETTER FROM THE PRESIDENT 4/30/01 DEAR SHAREOWNER, ------------------------------------------------------------------------------- I don't think you could find a better argument for a diversified portfolio than the volatile markets we have experienced in the last several months. The turbulence began when the dot-com bubble burst in the spring of 2000. Then, as higher interest rates began to drain strength from the economy, companies in a wide range of industries issued warnings of declining profits. The result has been a very weak stock market, with high-flying growth and internet-related stocks suffering the most damage. In contrast to these sharp declines, however, less aggressive investments, including many bonds and value stocks, did much better over this painful period. You can never eliminate risk entirely, but you and your financial advisor can work to mitigate it. The first step is to review your portfolio diversification, and modify it as necessary. You will probably want to continue holding a mix of stocks and bonds. A portfolio containing a variety of investments with varying risk and opportunity characteristics may be the most comfortable course for most investors. It could also be the most successful. As professional investors, we view market downturns as opportunities to reposition our funds' portfolios and take advantage of lower prices to purchase attractive securities. For more than 70 years, that strategy has helped Pioneer fund managers and shareowners reach their financial goals. You may want to put your own investment portfolio through the same process: Look past the bad news and try to bring your portfolio in line with current conditions and your own needs. Respectfully, /s/ David Tripple David Tripple Pioneer Investment Management, Inc. 1 PIONEER MID-CAP VALUE FUND PORTFOLIO SUMMARY 4/30/01 PORTFOLIO DIVERSIFICATION ------------------------------------------------------------------------------- (As a percentage of total investment portfolio) [PIE CHART] U.S. Common Stocks 96% Short-Term Cash Equivalents 2% International Common Stocks 2%
[PIE CHART] SECTOR DISTRIBUTION ------------------------------------------------------------------------------- (As a percentage of equity holdings) Technology 17% Financials 15% Utilities 13% Consumer Cyclicals 13% Energy 11% Consumer Staples 9% Capital Goods 8% Health Care 6% Communication Services 4% Basic Materials 4%
10 LARGEST HOLDINGS ------------------------------------------------------------------------------- (As a percentage of equity holdings) 1. Imation Corp. 2.72% 2. Sabre Group Holdings, Inc. 1.80 3. Tricon Global Restaurants Inc. 1.78 4. John H. Harland Co. 1.76 5. Wellpoint Health Networks, Inc. 1.59 6. Mattel, Inc. 1.46% 7. Symantec Corp. 1.40 8. Wellman, Inc. 1.35 9. Adaptec, Inc. 1.31 10. Kaydon Corp. 1.29
Fund holdings will vary for other periods. 2 PIONEER MID-CAP VALUE FUND PERFORMANCE UPDATE 4/30/01 CLASS A SHARES SHARE PRICES AND DISTRIBUTIONS -------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE 4/30/01 10/31/00 $21.32 $20.83 DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM (10/31/00-4/30/01) DIVIDENDS CAPITAL GAINS CAPITAL GAINS - $0.347 $1.522
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 the Lipper Growth Funds Index. AVERAGE ANNUAL TOTAL RETURNS (As of April 30, 2001)
PUBLIC NET ASSET OFFERING PERIOD VALUE PRICE* 10 Years 16.08% 15.40% 5 Years 9.80 8.51 1 Year 22.64 15.57
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the period and assumes reinvestment of distributions at net asset value. [LINE CHART] GROWTH OF $10,000
Pioneer Standard & Mid-Cap Value Poors Lipper Growth Fund* 500 Index Funds Index 4/30/91 $9,425 $10,000 $10,000 4/30/92 $12,260 $11,406 $11,390 $14,277 $12,457 $12,498 $16,677 $13,121 $13,659 4/30/95 $20,483 $15,410 $15,160 $26,257 $20,049 $19,538 $26,712 $25,085 $22,295 4/30/98 $35,169 $35,371 $31,173 $32,308 $43,083 $37,168 $34,163 $47,428 $44,985 4/30/01 $41,897 $41,287 $35,962
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 (excluding sales charges) of mutual funds with similar portfolio characteristics and capitalization. Index returns assume reinvestment of dividends and, unlike Funds returns, do not reflect any fees, expenses or sales charges. You cannot invest directly in either 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 4/30/01 CLASS B SHARES SHARE PRICES AND DISTRIBUTIONS ------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE 4/30/01 10/31/00 $20.13 $19.85
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM (10/31/00-4/30/01) DIVIDENDS CAPITAL GAINS CAPITAL GAINS - $0.347 $1.522
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 the Lipper Growth Funds Index. AVERAGE ANNUAL TOTAL RETURNS (As of April 30, 2001)
IF IF PERIOD HELD REDEEMED* Life-of-Class 13.56% 13.56% (4/4/94) 5 Years 8.94 8.80 1 Year 21.66 17.66
* 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+
Pioneer Standard & Mid-Cap Value Poors Lipper Growth Fund* 500 Index Funds Index 4/4/94 $10,000 $10,000 $10,321 $10,273 $10,000 $11,513 $10,922 $10,374 4/30/95 $12,589 $12,065 $11,099 $13,633 $13,802 $12,861 $16,019 $15,698 $14,304 10/31/96 $15,306 $17,116 $15,046 $16,168 $19,641 $16,323 $18,627 $22,613 $19,315 4/30/98 $21,137 $27,694 $22,822 $16,882 $27,585 $21,996 $19,264 $33,732 $27,211 10/31/99 $18,420 $34,653 $28,446 $20,205 $37,134 $32,934 $21,928 $36,752 $31,861 4/30/01 $24,580 $32,326 $26,328
+ Index comparisons begin 4/30/94. 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 (excluding sales charges) 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 either 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 4/30/01 CLASS C SHARES SHARE PRICES AND DISTRIBUTIONS ------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE 4/30/01 10/31/00 $20.02 $19.76
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM (10/31/00-4/30/01) DIVIDENDS CAPITAL GAINS CAPITAL GAINS - $0.347 $1.522
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 the Lipper Growth Funds Index. AVERAGE ANNUAL TOTAL RETURNS (As of April 30, 2001)
IF IF PERIOD HELD REDEEMED* Life-of-Class 10.32% 10.32% (1/31/96) 5 Years 8.90 8.90 1 Year 21.51 21.51
* Assumes reinvestment of distributions. The 1% contingent deferred sales charge (CDSC) applies to redemptions made within one year of purchase. GROWTH OF $10,000
Pioneer Standard & Mid-Cap Value Poors Lipper Growth Fund* 500 Index Funds Index 1/31/96 $10,000 $10,000 $10,000 $10,931 $10,340 $10,460 10/31/96 $10,449 $11,274 $11,003 $11,045 $12,937 $11,936 $12,721 $14,894 $14,124 4/30/98 $14,433 $18,241 $16,689 $11,527 $18,169 $16,085 $13,144 $22,218 $19,898 10/31/99 $12,567 $22,825 $20,801 $13,780 $24,459 $24,083 $14,945 $24,207 $23,298 4/30/01 $16,745 $21,292 $19,252
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 (excluding sales charges) of mutual funds with similar portfolio characteristics and capitalization. Index returns assume reinvestment of dividends and, unlike Funds returns, do not reflect any fees, expenses or sales charges. You cannot invest directly in either 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 4/30/01 CLASS Y SHARES SHARE PRICES AND DISTRIBUTIONS ------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE 4/30/01 10/31/00 $21.50 $20.94
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM (10/31/00-4/30/01) DIVIDENDS CAPITAL GAINS CAPITAL GAINS - $0.347 $1.522
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 the Lipper Growth Funds Index. AVERAGE ANNUAL TOTAL RETURNS* (As of April 30, 2001)
IF IF PERIOD HELD REDEEMED Life-of-Class 8.09% 8.09% (7/2/98) 1 Year 23.22 23.22
* Assumes reinvestment of distributions. GROWTH OF $10,000+
Pioneer Standard & Mid-Cap Value Poors Lipper Growth Fund* 500 Index Funds Index 7/2/98 $10,000 $10,000 $9,352 $9,788 $10,000 $8,287 $9,635 $9,574 1/31/99 $8,724 $11,259 $11,461 $9,520 $11,783 $11,843 $9,929 $11,761 $11,995 10/31/99 $9,161 $12,104 $12,381 $9,467 $12,420 $13,558 $10,116 $12,971 $14,335 7/31/00 $10,116 $12,815 $14,139 $11,044 $12,838 $13,867 $11,983 $12,305 $12,863 4/30/01 $12,464 $11,292 $11,459
+ Index comparisons begin 7/31/98. 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 (excluding sales charges) 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 either 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 4/30/01 Mid-cap value stocks substantially outperformed both the overall stock market and the average Lipper mid-cap value fund during the six months ended April 30, 2001. In the following discussion, Rod Wright, who is responsible for day-to-day portfolio management of Pioneer Mid-Cap Value Fund, provides an update on the Fund, the economic environment and investment strategies that influenced performance during the six-month period. Q: HOW DID THE FUND PERFORM? A: For the six-month period ended April 30, 2001, the Fund's Class A shares returned 12.57%, while Class B and Class C shares returned 12.09% and 12.04%, respectively, all at net asset value. During the same period, the Standard & Poor's 500 Index had a total return of -12.04%, while the average performance of the funds in Lipper's mid-cap value category was 10.29%. (Lipper, Inc. is an independent firm that tracks mutual fund performance.) Q: WHAT FACTORS INFLUENCED FUND PERFORMANCE? A: In a period of volatility, investors were attracted to stocks with reasonable valuations. Investors avoided technology stocks, especially those with high valuations. Technology was the worst performing sector in the market, pulling down the major indices, such as the S&P 500 and Nasdaq Composite Index. Mid-cap value stocks, however, performed much better than the general market, providing a favorable backdrop for the Fund. Despite the general meltdown in the technology sector, Pioneer Mid-Cap Value Fund's performance was helped by our selections in technology. Starting in November 2000, we took advantage of the sell-off in technology companies to add stocks to the portfolio that had fallen to attractive valuations. With strong performance by many of the Fund's tech holdings, the technology industry was the largest single contributor to performance. IMATION, a leader in data storage and information management and the Fund's largest position, was among the technology investments that performed particularly well. It appreciated by 16% over the six months. STORAGE TECHNOLOGY, which produces tape drives and data storage equipment, rose 31%, while SYMANTEC, a manufacturer of security 7 PIONEER MID-CAP VALUE FUND PORTFOLIO MANAGEMENT DISCUSSION 4/30/01 (CONTINUED) technology for the Internet, was up 65%. THE SABRE GROUP HOLDINGS, an on-line airline reservation system, gained 49% and SYNOPSYS, which supplies electronic design automation systems, appreciated 65%. Other tech companies that contributed to performance included AVAYA, AMERICAN POWER CONVERSION and NCR. Q: ASIDE FROM TECHNOLOGY STOCKS, WHAT OTHER TYPES OF INVESTMENTS CONTRIBUTED TO THE FUND'S PERFORMANCE? A: Consumer stocks, particularly consumer staples, energy investments and utilities all supported the Fund's performance. We had several larger positions in the consumer staples industry that performed well. They included TRICON GLOBAL RESTAURANTS, which rose 47% during the six months. Tricon, a spin-off from Pepsi-Cola, operates several well-known restaurant chains, including Pizza Hut, Kentucky Fried Chicken and Taco Bell. Other consumer staples holdings that contributed included MATTEL, which climbed 25% and JOHN H. HARLAND, a check-printing company that has begun diversifying its business. In the energy industry, we had a number of top performers among exploration and production companies and services firms, including OCEAN ENERGY, which was up 34%; APACHE, which rose 16%; and NOBLE DRILLING, which climbed 16%. Among utility investments, top performers included: DYNEGY, which gained 25%; CALPINE, which climbed 44%; DPL, which was up 11%; DTE ENERGY, which rose by 19%; and CMS ENERGY, which was up 17%. Q: WHAT OTHER FACTORS INFLUENCED FUND PERFORMANCE? A: Four holdings were acquired by larger companies at premiums to their stock prices. Xircom, a technology position, was acquired at a 44% gain for the Fund in the period. Ralston Purina was taken over for a 32% gain for the Fund. Other holdings that were acquired included Tosco, a refining company, which was up 46% in the period, and CIT Group, a financial company, which gained 32%. 8 PIONEER MID-CAP VALUE FUND Q: DID ANY AREAS PROVE DISAPPOINTING? A: Some of our tech holdings did not fare well in the general industry slump. Among the disappointing performers were 3-Com, Cabletron Systems and ENTRUST. Our underweighted position in the transportation industry also was a minor detractor from performance, as the industry did well during the period. Q: WHAT IS YOUR OUTLOOK? A: We still think the mid-cap value arena remains a very good place to be invested, although it may not replicate its strong outperformance of recent months. As the economy continues to slow, high priced stocks create volatility in the market and present risks to investors. In a period of economic uncertainty, we expect to maintain our strategy of investing in companies with strong fundamentals and low stock valuations. 9 PIONEER MID-CAP VALUE FUND SCHEDULE OF INVESTMENTS 4/30/01 (UNAUDITED)
SHARES VALUE COMMON STOCKS - 97.5% BASIC MATERIALS - 3.6% ALUMINUM - 1.1% 375,000 Alcoa, Inc. $ 15,525,000 ------------- CHEMICALS - 0.3% 400,000 IMC Global Inc. $ 4,800,000 ------------- CHEMICALS (SPECIALTY) - 1.3% 1,000,000 Wellman, Inc. $ 18,650,000 ------------- PAPER & FOREST PRODUCTS - 0.9% 250,000 Bowater, Inc. $ 12,125,000 ------------- TOTAL BASIC MATERIALS $ 51,100,000 ------------- CAPITAL GOODS - 7.6% AEROSPACE/DEFENSE - 1.0% 200,000 General Dynamics Corp. $ 15,416,000 ------------- ELECTRICAL EQUIPMENT - 2.0% 575,000 American Power Conversion Corp.* $ 8,136,250 400,000 SCI Systems, Inc.* 10,220,000 425,000 Vishay Intertechnology, Inc.* 10,603,750 ------------- $ 28,960,000 ------------- MACHINERY (DIVERSIFIED) - 1.9% 225,000 Deere & Co. $ 9,240,750 700,000 Kaydon Corp. 17,934,000 ------------- $ 27,174,750 ------------- METAL FABRICATORS - 1.0% 675,000 Brush Engineered Materials Inc. $ 13,500,000 ------------- WASTE MANAGEMENT - 1.7% 500,000 Republic Services Inc.* $ 9,000,000 600,000 Waste Management Inc. 14,646,000 ------------- $ 23,646,000 ------------- TOTAL CAPITAL GOODS $108,696,750 ------------- COMMUNICATION SERVICES - 3.9% TELEPHONE - 3.9% 250,000 Alltel Corp. $ 13,652,500 650,000 Broadwing Inc.* 16,120,000 425,000 Century Telephone Enterprises, Inc. 11,551,500 125,000 Telephone and Data Systems, Inc. 13,125,000
The accompanying notes are an integral part of these financial statements. 10 PIONEER MID-CAP VALUE FUND
SHARES VALUE TELEPHONE - (CONTINUED) 226,160 William Communications Group, Inc.* $ 1,022,242 ------------- $ 55,471,242 ------------- TOTAL COMMUNICATION SERVICES $ 55,471,242 ------------- CONSUMER CYCLICALS - 13.1% AUTO PARTS & EQUIPMENT - 0.9% 275,000 ITT Industries, Inc. $ 12,119,250 ------------- GAMING & LOTTERY COMPANIES - 0.2% 200,000 Park Place Entertainment Corp.* $ 2,224,000 ------------- HOUSEHOLD FURNISHINGS & APPLIANCES - 0.6% 250,000 Ethan Allen Interiors, Inc. $ 8,875,000 ------------- LEISURE TIME (PRODUCTS) - 1.4% 1,250,000 Mattel, Inc. $ 20,187,500 ------------- PUBLISHING (NEWSPAPERS) - 0.4% 100,000 Dow Jones & Company, Inc. $ 5,427,000 ------------- RETAIL (COMPUTERS & ELECTRONICS) - 1.0% 500,000 Radioshack Corp. $ 15,315,000 ------------- RETAIL (DEPARTMENT STORES) - 1.1% 750,000 J.C. Penney Co., Inc. $ 15,195,000 ------------- RETAIL (DISCOUNTERS) - 0.9% 500,000 Family Dollar Stores, Inc. $ 12,755,000 ------------- RETAIL (SPECIALTY) - 1.9% 250,000 Borders Group, Inc.* $ 4,650,000 930,000 Cole National Corp.+ 8,649,000 1,000,000 Venator Group, Inc. 13,240,000 ------------- $ 26,539,000 ------------- SERVICES (COMMERCIAL & CONSUMER) - 3.8% 400,000 IMS Health Inc. $ 10,980,000 650,000 Regis Corp. 12,025,000 500,000 Sabre Group Holdings, Inc. 24,930,000 1,387,300 Service Corporation International 6,478,691 ------------- $ 54,413,691 ------------- TEXTILES (APPAREL) - 0.9% 325,000 Jones Apparel Group, Inc.* $ 12,915,500 ------------- TOTAL CONSUMER CYCLICALS $185,965,941 -------------
The accompanying notes are an integral part of these financial statements. 11 PIONEER MID-CAP VALUE FUND SCHEDULE OF INVESTMENTS 4/30/01 (UNAUDITED)(CONTINUED)
SHARES VALUE CONSUMER STAPLES - 9.0% BROADCASTING (CABLE/TELEVISION/RADIO) - 2.1% 100,000 Cablevision Systems Corp.* $ 6,875,000 250,000 Echostar Communications Corp.* 7,490,000 650,000 USA Networks Inc.* 16,282,500 ------------- $ 30,647,500 ------------- FOODS - 1.2% 300,000 ConAgra, Inc. $ 6,243,000 175,000 Hershey Foods Corp. 10,571,750 ------------- $ 16,814,750 ------------- RESTAURANTS - 2.8% 1,200,000 Lone Star Steakhouse & Saloon, Inc. $ 14,460,000 550,000 Tricon Global Restaurants, Inc.* 24,651,000 ------------- $ 39,111,000 ------------- RETAIL STORES (FOOD CHAINS) - 0.5% 300,000 Kroger Co.* $ 6,777,000 ------------- SERVICES (EMPLOYMENT) - 0.7% 1,800,000 Modis Professional Services, Inc.* $ 9,360,000 ------------- SPECIALTY PRINTING - 1.7% 1,125,000 John H. Harland Co. $ 24,435,000 ------------- TOTAL CONSUMER STAPLES $127,145,250 ------------- ENERGY - 10.4% OIL & GAS (DRILLING & EQUIPMENT) - 4.6% 400,000 ENSCO International, Inc. $ 15,560,000 325,000 Noble Drilling Corp.* 15,762,500 300,000 Transocean Offshore Inc. 16,284,000 300,000 Weatherford International, Inc.* 17,469,000 ------------- $ 65,075,500 ------------- OIL & GAS (PRODUCTION/EXPLORATION) - 3.3% 75,000 Apache Corp. $ 4,797,000 225,000 Burlington Resources, Inc. 10,622,250 200,000 Newfield Exploration Co.* 7,200,000 775,000 Ocean Energy Inc. 14,345,250 500,000 Pioneer Natural Resources Co. 9,555,000 ------------- $ 46,519,500 -------------
The accompanying notes are an integral part of these financial statements. 12 PIONEER MID-CAP VALUE FUND
SHARES VALUE OIL & GAS (REFINING & MARKETING) - 1.0% 150,000 Ultramar Diamond Shamrock Corp. $ 6,766,500 150,000 Valero Energy Corp. 7,224,000 -------------- $ 13,990,500 -------------- OIL (DOMESTIC INTEGRATED) - 1.5% 125,000 Amerada Hess Corp. $ 10,937,500 375,000 Conoco, Inc. 11,358,750 -------------- $ 22,296,250 -------------- TOTAL ENERGY $ 147,881,750 -------------- FINANCIALS - 14.3% BANKS (MAJOR REGIONAL) - 1.2% 230,000 BB&T Corp. $ 8,146,600 200,000 SouthTrust Corp. 9,510,000 -------------- $ 17,656,600 -------------- BANKS (REGIONAL) - 3.5% 375,000 First Tennessee National Corp. $ 12,251,250 250,000 Marshall & Ilsley Corp. 12,615,000 450,000 North Fork Bancorporation, Inc 11,947,500 350,000 TCF Financial Corp. 13,310,500 -------------- $ 50,124,250 -------------- CONSUMER FINANCE - 1.8% 300,000 Countrywide Credit Industries, Inc. $ 12,801,000 200,000 The PMI Group, Inc. 12,860,000 -------------- $ 25,661,000 -------------- FINANCIAL (DIVERSIFIED) - 1.5% 200,000 Indymac Bancorp, Inc. $ 4,580,000 175,000 John Hancock Financial Services, Inc. 6,501,250 150,000 SLM Holdings Corp. 10,665,000 -------------- $ 21,746,250 -------------- INSURANCE (LIFE/HEALTH) - 0.5% 150,000 Jefferson - Pilot Corp. $ 6,999,000 -------------- INSURANCE (PROPERTY-CASUALTY) - 3.8% 300,000 Ace Ltd.* $ 10,710,000 125,000 Allmerica Financial Corp. 6,312,500 300,000 Arch Capital Group Ltd.* 4,755,000 140,000 Exel Ltd. 9,912,000 75,000 Markel Corp.* 14,718,750
The accompanying notes are an integral part of these financial statements. 13 PIONEER MID-CAP VALUE FUND SCHEDULE OF INVESTMENTS 4/30/01 (UNAUDITED) (CONTINUED)
SHARES VALUE INSURANCE (PROPERTY-CASUALTY) - (CONTINUED) 150,000 Partnerre Ltd. $ 7,354,500 -------------- $ 53,762,750 -------------- INVESTMENT BANK/BROKERAGE - 1.2% 775,000 E*Trade Group, Inc.* $ 7,285,000 130,000 Lehman Brothers Holdings, Inc. 9,457,500 -------------- $ 16,742,500 -------------- SAVINGS & LOAN COMPANIES - 0.8% 375,000 Charter One Financial, Inc. $ 10,987,500 -------------- TOTAL FINANCIALS $ 203,679,850 -------------- HEALTH CARE - 5.8% BIOTECHNOLOGY - 0.3% 70,000 Biogen, Inc.* $ 4,526,200 -------------- HEALTH CARE (DRUGS - GENERIC & OTHER) - 1.1% 150,000 Alpharma, Inc. $ 3,393,000 475,000 Mylan Laboratories Inc. 12,701,500 -------------- $ 16,094,500 -------------- HEALTH CARE (HOSPITAL MANAGEMENT) - 1.5% 350,000 HCA - The Healthcare Company $ 13,545,000 475,000 Health Management Associates, Inc.* 8,512,000 -------------- $ 22,057,000 -------------- HEALTH CARE (MANAGED CARE) - 1.6% 225,000 Wellpoint Health Networks Inc.* $ 22,106,250 -------------- HEALTH CARE (MEDICAL PRODUCTS/SUPPLIES) - 1.3% 600,000 Apogent Technologies, Inc.* $ 13,800,000 200,000 Sybron Dental Specialities* 4,000,000 -------------- $ 17,800,000 -------------- TOTAL HEALTH CARE $ 82,583,950 -------------- TECHNOLOGY - 16.6% COMMUNICATIONS EQUIPMENT - 3.2% 750,000 ADC Telecommunications, Inc.* $ 5,632,500 1,200,000 Avaya Inc.* 17,748,000 375,000 CommScope, Inc.* 7,080,000 525,000 Harris Corp. 15,093,750 -------------- $ 45,554,250 --------------
The accompanying notes are an integral part of these financial statements. 14 PIONEER MID-CAP VALUE FUND
SHARES VALUE COMPUTER (HARDWARE) - 1.6% 400,000 Gateway 2000 Inc.* $ 7,600,000 325,000 NCR Corp.* 15,278,250 -------------- $ 22,878,250 -------------- COMPUTERS (PERIPHERALS) - 1.2% 1,325,000 Storage Technology Corp.* $ 16,946,750 -------------- COMPUTERS (SOFTWARE & SERVICES) - 2.3% 200,000 Entrust Technologies Inc.* $ 1,258,000 200,000 Macromedia, Inc.* 4,532,000 300,000 Symantec Corp.* 19,443,000 125,000 Synopsys, Inc.* 7,178,750 -------------- $ 32,411,750 -------------- ELECTRONICS (SEMICONDUCTORS) - 3.9% 1,611,200 Adaptec, Inc.* $ 18,109,888 1,275,000 Atmel Corp.* 17,709,750 400,000 Cypress Semiconductor Corp.* 9,040,000 325,000 Fairchild Semiconductor Corp.* 5,882,500 100,000 Micron Technology, Inc.* 4,538,000 -------------- $ 55,280,138 -------------- EQUIPMENT (SEMICONDUCTOR) - 0.3% 150,000 Lam Research Corp.* $ 4,440,000 -------------- PHOTOGRAPHY/IMAGING - 2.7% 1,640,000 Imation Corp.* $ 37,834,800 -------------- SERVICES (COMPUTER SYSTEMS) - 0.5% 125,000 SunGard Data Systems, Inc.* $ 6,908,750 -------------- SERVICES (DATA PROCESSING) - 0.9% 400,000 Equifax Inc. $ 13,228,000 -------------- TOTAL TECHNOLOGY $ 235,482,688 -------------- UTILITIES - 13.2% ELECTRIC COMPANIES - 8.6% 250,000 Allegheny Energy, Inc. $ 12,790,000 525,000 CMS Energy Corp. 16,432,500 300,000 Constellation Energy Group 14,322,000 425,000 DPL, Inc. 13,170,750 150,000 DQE, Inc. 4,564,500 300,000 DTE Energy Co. 12,576,000 175,000 Exelon Corp. 12,083,750
The accompanying notes are an integral part of these financial statements. 15 PIONEER MID-CAP VALUE FUND SCHEDULE OF INVESTMENTS 4/30/01 (UNAUDITED) (CONTINUED)
SHARES VALUE ELECTRIC COMPANIES - (CONTINUED) 150,000 Kansas City Power & Light Co. $ 3,915,000 800,000 Montana Power Co. 9,968,000 200,000 Houston Industries, Inc. 9,910,000 350,000 UtiliCorp United Inc. 12,355,000 -------------- $ 122,087,500 -------------- NATURAL GAS - 3.3% 100,000 Dynegy Inc. $ 5,785,000 200,000 El Paso Energy Corp. 13,760,000 416,000 KeySpan Energy Corp. 16,515,200 275,000 Williams Companies, Inc. 11,596,750 -------------- $ 47,656,950 -------------- POWER PRODUCERS (INDEPENDENT) - 1.3% 125,000 Calpine Corp.* $ 7,123,750 350,000 Orion Power Holdings, Inc.* 11,270,000 -------------- $ 18,393,750 -------------- TOTAL UTILITIES $ 188,138,200 -------------- TOTAL COMMON STOCKS (Cost $1,194,235,512) $1,386,145,621 -------------- PRINCIPAL AMOUNT TEMPORARY CASH INVESTMENTS - 2.5% COMMERCIAL PAPER - 2.5% $34,856,000 Travelers Corp., 4.69%, 05/01/01 $ 34,856,000 -------------- TOTAL COMMERCIAL PAPER $ 34,856,000 -------------- TOTAL TEMPORARY CASH INVESTMENTS (Cost $34,856,000) $ 34,856,000 -------------- TOTAL COMMON STOCKS AND TEMPORARY CASH INVESMENTS - 100.0% (Cost $1,229,091,512)(a)(b) $1,421,001,621 ==============
* 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, 2001, the net unrealized gain on investments based on cost for federal income tax purposes of $1,235,660,922 was as follows: Aggregate gross unrealized gain for all investments in which there is an excess of value over tax cost $ 243,415,893 Aggregate gross unrealized loss for all investments in which there is an excess of tax cost over value (58,075,194) -------------- Net unrealized gain $ 185,340,699 ==============
(b) Purchases and sales of securities (excluding temporary cash investments) for the period ended April 30, 2001, aggregated $627,256,907 and $640,221,285, respectively. The accompanying notes are an integral part of these financial statements. 16 PIONEER MID-CAP VALUE FUND BALANCE SHEET 04/30/01 (UNAUDITED) ASSETS: Investment in securities, at value (including temporary cash investments of $34,856,000) (cost $1,229,091,512) $1,421,001,621 Cash 98,076 Receivables - Investment securities sold 29,050,897 Fund shares sold 934,386 Dividends and interest 785,020 Other 7,661 -------------- Total assets $1,451,877,661 -------------- LIABILITIES: Payables - Investment securities purchased $ 23,246,527 Fund shares repurchased 1,256,643 Due to affiliates 1,798,413 Accrued expenses 237,047 Other 7,709 -------------- Total liabilities $ 26,546,339 -------------- NET ASSETS: Paid-in capital $1,129,144,972 Accumulated net investment loss (643,809) Accumulated undistributed net realized gain on investments 104,920,050 Net unrealized gain on investments 191,910,109 -------------- Total net assets $1,425,331,322 ============== NET ASSET VALUE PER SHARE: (Unlimited number of shares authorized) Class A (based on $1,026,260,087/48,124,744 shares) $ 21.32 ============== Class B (based on $366,116,565/18,189,246 shares) $ 20.13 ============== Class C (based on $28,659,800/1,431,487 shares) $ 20.02 ============== Class Y (based on $4,294,870/199,724 shares) $ 21.50 ============== MAXIMUM OFFERING PRICE: Class A $ 22.62 ==============
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 04/30/01 INVESTMENT INCOME: Dividends $6,890,684 Interest 1,702,517 ---------- Total investment income $ 8,593,201 ------------ EXPENSES: Management fees Basic fee $4,423,064 Performance adjustment (240,400) Transfer agent fees Class A 1,166,865 Class B 575,097 Class C 63,656 Class Y 102 Distribution fees Class A 1,189,685 Class B 1,695,899 Class C 126,937 Administrative fees 132,997 Custodian fees 66,726 Registration fees 61,540 Printing 57,920 Professional fees 16,159 Fees and expenses of nonaffiliated trustees 15,756 Miscellaneous 13,057 ---------- Total expenses $ 9,365,060 Less fees paid indirectly (128,050) ------------ Net expenses $ 9,237,010 ------------ Net investment loss $ (643,809) ------------ REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investments $109,004,556 Change in net unrealized gain on investments 50,242,277 ------------ Net gain on investments $159,246,833 ------------ Net increase in net assets resulting from operations $158,603,024 ------------
The accompanying notes are an integral part of these financial statements. 18 PIONEER MID-CAP VALUE FUND STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX MONTHS ENDED 4/30/01 AND THE YEAR ENDED 10/31/00
SIX MONTHS ENDED 4/30/01 YEAR ENDED (UNAUDITED) 10/31/00 FROM OPERATIONS: Net investment income (loss) $ (643,809) $ 937,967 Net realized gain on investments 109,004,556 112,047,965 Change in net unrealized gain on investments 50,242,277 134,302,249 -------------- ------------- Net increase in net assets resulting from operations $ 158,603,024 $ 247,288,181 -------------- ------------- DISTRIBUTIONS TO SHAREOWNERS: Net realized gain: Class A ($1.87 and $2.64 per share, respectively) $ (83,967,625) $ (140,424,250) Class B ($1.87 and $2.64 per share, respectively) (31,398,820) (56,102,637) Class C ($1.87 and $2.64 per share, respectively) (2,293,880) (4,312,421) Class Y ($1.87 and $2.64 per share, respectively) (295,692) (523,675) -------------- ------------- Total distributions to shareowners $ (117,956,017) $ (201,362,983) -------------- ------------- FROM FUND SHARE TRANSACTIONS Net proceeds from sale of shares $ 100,692,183 $ 227,659,223 Reinvestment of distributions 105,134,694 176,883,593 Cost of shares repurchased (130,897,550) (656,741,041) -------------- ------------- Net increase (decrease) in net assets resulting from fund share transactions $ 74,929,327 $ (252,198,225) -------------- ------------- Net increase (decrease) in net assets $ 115,576,334 $ (206,273,027) NET ASSETS: Beginning of period 1,309,754,988 1,516,028,015 -------------- ------------- End of period (including accumulated net investment loss of $643,809 and $0, respectively) $1,425,331,322 $1,309,754,988 -------------- ------------- '01 SHARES '01 AMOUNT (UNAUDITED) (UNAUDITED) '00 SHARES '00 AMOUNT CLASS A Shares sold 3,297,349 $ 65,322,261 8,474,512 $ 161,016,644 Reinvestment of distributions 4,137,341 77,451,015 7,094,649 127,987,560 Less shares repurchased (4,703,659) (93,601,143) (23,817,198) (450,115,630) --------- ----------- ---------- ------------- Net increase (decrease) 2,731,031 $ 49,172,133 (8,248,037) $ (161,111,426) ========= =========== ========== ============= CLASS B Shares sold 1,551,558 $ 28,976,627 3,178,671 $ 57,786,895 Reinvestment of distributions 1,461,242 25,922,425 2,642,581 45,743,083 Less shares repurchased (1,769,846) (33,371,282) (10,322,035) (185,658,540) --------- ----------- ---------- ------------- Net increase (decrease) 1,242,954 $ 21,527,770 (4,500,783) $ (82,128,562) ========= =========== ========== ============= CLASS C Shares sold 300,742 $ 5,593,640 458,115 $ 8,281,129 Reinvestment of distributions 83,059 1,465,987 152,333 2,629,275 Less shares repurchased (191,981) (3,596,365) (1,060,387) (19,141,108) --------- ----------- ---------- ------------- Net increase (decrease) 191,820 $ 3,463,262 (449,939) $ (8,230,704) ========= =========== ========== ============= CLASS Y Shares sold 39,188 $ 799,655 30,474 $ 574,555 Reinvestment of distributions 15,672 295,267 28,996 523,675 Less shares repurchased (16,333) (328,760) (97,931) (1,825,763) --------- ----------- ---------- ------------- Net increase (decrease) 38,527 $ 766,162 (38,461) $ (727,533) ========= =========== ========== =============
The accompanying notes are an integral part of these financial statements. 19 PIONEER MID-CAP VALUE FUND FINANCIAL HIGHLIGHTS 4/30/01
SIX MONTHS ENDED 4/30/01 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) 10/31/00 10/31/99 10/31/98 10/31/97 10/31/96 CLASS A Net asset value, beginning of period $ 20.83 $ 19.90 $ 19.02 $ 23.23 $ 19.85 $ 19.42 --------- ------- --------- --------- --------- --------- Increase (decrease) from investment operations: Net investment income $ 0.00(a) $ 0.11 $ 0.12 $ 0.08 $ 0.15 $ 0.08 Net realized and unrealized gain (loss) on investments 2.36 3.46 1.70 (1.94) 4.17 2.31 --------- ------- --------- --------- --------- --------- Net increase (decrease) from investment operations $ 2.36 $ 3.57 $ 1.82 $ (1.86) $ 4.32 $ 2.39 Distributions to shareowners: Net investment income -- -- (0.02) (0.10) (0.06) (0.09) Net realized gain (1.87) (2.64) (0.92) (2.25) (0.88) (1.87) --------- ------- --------- --------- --------- --------- Net increase (decrease) in net asset value $ 0.49 $ 0.93 $ 0.88 $ (4.21) $ 3.38 $ 0.43 --------- ------- --------- --------- --------- --------- Net asset value, end of period $ 21.32 $ 20.83 $ 19.90 $ 19.02 $ 23.23 $ 19.85 ========= ======= ========= ========= ========= ========= Total return* 12.57% 20.00% 10.02% (8.74)% 22.67% 13.12% Ratio of net expenses to average net assets+ 1.18%** 1.13% 1.18% 1.08% 1.00% 1.02% Ratio of net investment income to average net assets+ 0.12%** 0.27% 0.37% 0.33% 0.64% 0.43% Portfolio turnover rate 98%** 70% 75% 61% 63% 37% Net assets, end of period (in thousands) $1,026,260 $945,583 $1,067,562 $1,308,335 $1,591,655 $1,299,611 Ratios assuming reduction for fees paid indirectly: Net expenses 1.16%** 1.11% 1.16% 1.07% 0.98% 1.00% Net investment income 0.14%** 0.29% 0.39% 0.34% 0.66% 0.45%
(a) Amount rounds to less than one cent per share. * Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, 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 4/30/01
SIX MONTHS ENDED 4/30/01 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) 10/31/00 10/31/99 10/31/98 10/31/97 10/31/96 CLASS B Net asset value, beginning of period $ 19.85 $ 19.22 $ 18.52 $ 22.73 $ 19.53 $ 19.20 ------- ------- ------- ------- ------- ------- Increase (decrease) from investment operations: Net investment loss $ (0.02) $ (0.20) $ (0.18) $ (0.10) $ (0.02) $ (0.04) Net realized and unrealized gain (loss) on investments 2.17 3.47 1.80 (1.86) 4.10 2.26 ------- ------- ------- ------- ------- ------- Net increase (decrease) from investment operations $ 2.15 $ 3.27 $ 1.62 $ (1.96) $ 4.08 $ 2.22 Distributions to shareowners: Net investment income -- -- -- -- -- (0.02) Net realized gain (1.87) (2.64) (0.92) (2.25) (0.88) (1.87) ------- ------- ------- ------- ------- ------- Net increase (decrease) in net asset value $ 0.28 $ 0.63 $ 0.70 $ (4.21) $ 3.20 $ 0.33 ------- ------- ------- ------- ------- ------- Net asset value, end of period $ 20.13 $ 19.85 $ 19.22 $ 18.52 $ 22.73 $ 19.53 ======= ======= ======= ======= ======= ======= Total return* 12.09% 19.04% 9.17% (9.42)% 21.70% 12.27% Ratio of net expenses to average net assets+ 2.03%** 1.91% 2.00% 1.85% 1.76% 1.79% Ratio of net investment loss to average net assets+ (0.73)%** (0.52)% (0.44)% (0.43)% (0.12)% (0.35)% Portfolio turnover rate 98%** 70% 75% 61% 63% 37% Net assets, end of period (in thousands) $366,117 $336,301 $412,116 $574,259 $745,258 $589,188 Ratios assuming reduction for fees paid indirectly: Net expenses 2.01%** 1.90% 1.99% 1.84% 1.75% 1.78% Net investment loss (0.71)%** (0.51)% (0.43)% (0.42)% (0.11)% (0.34)%
* 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. 21 PIONEER MID-CAP VALUE FUND FINANCIAL HIGHLIGHTS 4/30/01
SIX MONTHS ENDED 4/30/01 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 1/31/96 TO (UNAUDITED) 10/31/00 10/31/99 10/31/98 10/31/97(a) 10/31/96 CLASS C Net asset value, beginning of period $ 19.76 $ 19.16 $ 18.49 $ 22.69 $ 19.53 $ 18.69 ------ ------ ------ ------ ------- ------ Increase (decrease) from investment operations: Net investment income (loss) $ 0.02 $ (0.26) $ (0.21) $ (0.09) $ (0.03) $ (0.02) Net realized and unrealized gain (loss) on investments 2.11 3.50 1.80 (1.86) 4.11 0.86 ------ ------ ------ ------ ------- ------ Net increase (decrease) from investment operations $ 2.13 $ 3.24 $ 1.59 $ (1.95) $ 4.08 $ 0.84 Distributions to shareowners: Net investment income -- -- -- -- (0.04) -- Net realized gain (1.87) (2.64) (0.92) (2.25) (0.88) -- ------ ------ ------ ------ ------- ------ Net increase (decrease) in net asset value $ 0.26 $ 0.60 $ 0.67 $ (4.20) $ 3.16 $ 0.84 ------ ------ ------ ------ ------- ------ Net asset value, end of period $ 20.02 $ 19.76 $ 19.16 $ 18.49 $ 22.69 $ 19.53 ====== ====== ====== ====== ======= ====== Total return* 12.04% 18.92% 9.02% (9.38)% 21.74% 4.50% Ratio of net expenses to average net assets+ 2.19%** 2.01% 2.09% 1.84% 1.75% 1.79%** Ratio of net investment loss to average net assets+ (0.89)%** (0.61)% (0.52)% (0.43)% (0.15)% (0.39)%** Portfolio turnover rate 98%** 70% 75% 61% 63% 37% Net assets, end of period (in thousands) $28,660 $24,495 $32,373 $49,842 $ 60,211 $27,202 Ratios assuming reduction for fees paid indirectly: Net expenses 2.17%** 1.98% 2.07% 1.83% 1.73% 1.74%** Net investment loss (0.87)%** (0.58)% (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. 22 PIONEER MID-CAP VALUE FUND FINANCIAL HIGHLIGHTS 4/30/01
SIX MONTHS ENDED 4/30/01 YEAR ENDED YEAR ENDED 7/2/98 TO (UNAUDITED) 10/31/00 10/31/99 10/31/98 CLASS Y Net asset value, beginning of period $ 20.94 $ 19.91 $ 19.06 $ 23.00 ------ ------ ------ ------ Increase (decrease) from investment operations: Net investment income $ 0.01 $ 0.20 $ 0.19 $ 0.04 Net realized and unrealized gain (loss) on investments 2.42 3.47 1.72 (3.98) ------ ------ ------ ------ Net increase (decrease) from investment operations $ 2.43 $ 3.67 $ 1.91 $ (3.94) Distributions to shareowners: Net investment income -- -- (0.14) -- Net realized gain (1.87) (2.64) (0.92) -- ------ ------ ------ ------ Net increase (decrease) in net asset value $ 0.56 $ 1.03 $ 0.85 $ (3.94) ------ ------ ------ ------ Net asset value, end of period $ 21.50 $ 20.94 $ 19.91 $ 19.06 ====== ====== ====== ====== Total return* 12.86% 20.56% 10.54% (17.13)% Ratio of net expenses to average net assets+ 0.70%** 0.63% 0.66% 0.79%** Ratio of net investment income to average net assets+ 0.60%** 0.77% 0.88% 0.68%** Portfolio turnover rate 98%** 70% 75% 61% Net assets, end of period (in thousands) $ 4,295 $ 3,376 $ 3,976 $ 3,993 Ratios assuming reduction for fees paid indirectly: Net expenses 0.69%** 0.61% 0.65% 0.78%** Net investment income 0.61%** 0.79% 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. 23 PIONEER MID-CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS 4/30/01 (UNAUDITED) 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Pioneer Mid-Cap Value 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 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 shareowners 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 accounting principles generally accepted in the United States 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, including interest on income bearing cash accounts, is recorded on the accrual basis. Temporary cash investments are valued at amortized cost. Gains and losses on sales of investments are calculated on the identified cost method for both financial reporting and federal income tax purposes. 24 PIONEER MID-CAP VALUE FUND 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 $108,272 of class action settlements received by the Fund during the six months ended April 30, 2001. 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 shareowners. Therefore, no federal income tax provision is required. The characterization of distributions to shareowners 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 a majority owned indirect subsidiary of UniCredito Italiano, S.p.A. (UniCredito Italiano), earned $115,971 in underwriting commissions on the sale of Fund shares during the six months ended April 30, 2001. D. CLASS ALLOCATIONS Distribution fees are calculated based on the average daily net asset values attributable to Class A, Class B and Class C shares of the Fund, respectively. Class Y shares are not subject to a distribution plan. Shareowners of each class share all expenses and fees paid to the transfer agent, Pioneer Investment Management Shareholder Services, Inc. (PIMSS), for its 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 calculated at the Fund level and allocated daily to each class of shares based on its respective percentage of adjusted net assets at the beginning of the day. Distributions to shareowners 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 can bear different transfer agent and distribution fees. 25 PIONEER MID-CAP VALUE FUND NOTES TO FINANCIAL STATEMENTS 4/30/01 (UNAUDITED)(CONTINUED) 2. MANAGEMENT AGREEMENT Pioneer Investment Management, Inc. (PIM), the Fund's investment adviser, manages the Fund's portfolio and is a majority owned indirect subsidiary of UniCredito Italiano. 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. The performance comparison is made for a rolling 36-month period. For the six months ended April 30, 2001, the aggregate performance adjustment resulted in a decrease to the basic fee of $240,400. The management fee was equivalent to 0.63% of average daily net assets for the period. 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, 2001, $993,144 was payable to PIM related to management fees, administrative fees and certain other services. 3. TRANSFER AGENT PIMSS, a majority owned indirect subsidiary of UniCredito Italiano, provides substantially all transfer agent and shareowner services to the Fund at negotiated rates. Included in due to affiliates is $300,610 in transfer agent fees payable to PIMSS at April 30, 2001. 4. DISTRIBUTION PLANS The Fund adopted a Plan of Distribution with respect to each of 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 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 $504,659 in distribution fees payable to PFD at April 30, 2001. 26 PIONEER MID-CAP VALUE FUND 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, 2001, CDSCs in the amount of $218,343 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, 2001, the Fund's expenses were reduced by $128,050 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, 2001, the Fund had no borrowings under this agreement. 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, 2001:
DIVIDEND AFFILIATES PURCHASES SALES INCOME VALUE Cole National Corp. $- $- $- $8,649,000
27 PIONEER MID-CAP VALUE FUND TRUSTEES, OFFICERS AND SERVICE PROVIDERS TRUSTEES John F. Cogan, Jr., Chairman Mary K. Bush Richard H. Egdahl, M.D. Margaret B.W. Graham Marguerite A. Piret David D. Tripple Stephen K. West John Winthrop OFFICERS John F. Cogan, Jr., President David D. Tripple, Executive Vice President Vincent Nave, Treasurer Joseph P. Barri, Secretary 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 Pioneer Investment Management Shareholder Services, Inc. 28 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. GROWTH FUNDS UNITED STATES Pioneer Growth Shares Pioneer Micro-Cap Fund Pioneer Mid-Cap Fund Pioneer Mid-Cap Value Fund Pioneer Small Company Fund Pioneer Tax-Managed Fund INTERNATIONAL/GLOBAL Pioneer Emerging Markets Fund Pioneer Europe Fund Pioneer Europe Select Fund Pioneer Indo-Asia Fund Pioneer International Growth Fund Pioneer World Equity Fund SECTOR FUNDS Pioneer Global Financials Fund Pioneer Global Health Care Fund Pioneer Global Telecoms Fund Pioneer Real Estate Shares Pioneer Science & Technology Fund GROWTH AND INCOME FUNDS Pioneer Fund Pioneer Balanced Fund Pioneer Equity-Income Fund Pioneer Value Fund (formerly Pioneer II) INCOME FUNDS TAXABLE Pioneer America Income Trust Pioneer Bond Fund Pioneer High Yield Fund Pioneer Limited Maturity Bond Fund Pioneer Strategic Income Fund TAX-FREE Pioneer Tax-Free Income Fund MONEY MARKET FUND Pioneer Cash Reserves Fund* * An investment in the Fund is not insured or guaranteed by the Federal Deposit insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the Fund. 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 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: PIMSS, Inc. P.O. Box 7014 Boston, Massachusetts 02205-9014 OUR TOLL-FREE FAX 1-800-225-4240 OUR INTERNET E-MAIL ADDRESS ask.pioneer@pioneerinvest.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. [LOGO PIONEER INVESTMENTS] PIONEER INVESTMENT MANAGEMENT, INC. 60 STATE STREET BOSTON, MASSACHUSETTS 02109 www.pioneerfunds.com 1270-00-0601 -C-PIONEER FUNDS DISTRIBUTOR, INC. UNDERWRITER OF PIONEER MUTUAL FUNDS [RECYCLED LOGO]PRINTED ON RECYCLED PAPER