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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08786
Pioneer Equity Income VCT Portfolio Class I Shares
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Joseph P. Barri, Hale and Dorr LLP, 60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: June 30
Date of reporting period: January 1, 2003 through June 30, 2003
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
<Page>
[PIONEER INVESTMENTS(R) LOGO]
PIONEER VARIABLE CONTRACTS TRUST
PIONEER EQUITY INCOME VCT PORTFOLIO -- CLASS I SHARES
SEMIANNUAL REPORT
JUNE 30, 2003
<Page>
PIONEER VARIABLE CONTRACTS TRUST
TABLE OF CONTENTS
<Table>
Pioneer Equity Income VCT Portfolio
Portfolio and Performance Update 2
Portfolio Management Discussion 3
Schedule of Investments 4
Financial Statements 7
Notes to Financial Statements 11
</Table>
<Page>
PIONEER EQUITY INCOME VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
PORTFOLIO AND PERFORMANCE UPDATE 6/30/03
[CHART]
PORTFOLIO DIVERSIFICATION
(As a percentage of total investment portfolio)
<Table>
U.S. Common Stocks 91.6%
U.S. Convertible Securities 3.0%
Temporary Cash Investments 5.4%
</Table>
[CHART]
SECTOR DISTRIBUTION
(As a percentage of equity holdings)
<Table>
Financials 23.2%
Utilities 15.3%
Industrials 12.0%
Consumer Discretionary 11.6%
Energy 11.0%
Consumer Staples 8.2%
Health Care 7.4%
Telecommunication Services 5.1%
Materials 4.1%
Information Technology 2.1%
</Table>
FIVE LARGEST HOLDINGS
(As a percentage of equity holdings)
<Table>
1. Paccar, Inc. 4.32%
2. ChevronTexaco Corp. 4.12
3. ConocoPhillips, Inc. 3.56
4. Exxon Mobil Corp. 3.36
5. Constellation Energy Group 2.86
</Table>
Holdings will vary for other periods. They exclude money market instruments.
PRICES AND DISTRIBUTIONS
<Table>
<Caption>
6/30/03 12/31/02
Net Asset Value per Share $ 16.15 $ 15.11
</Table>
<Table>
<Caption>
DISTRIBUTIONS PER SHARE SHORT-TERM LONG-TERM
(1/1/03 - 6/30/03) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
$ 0.180 $ - $ -
</Table>
PERFORMANCE OF A $10,000 INVESTMENT
The following chart shows the change in value of an investment made in PIONEER
EQUITY INCOME VCT PORTFOLIO at net asset value, compared to that of the Russell
1000 Value Index. Portfolio returns are based on net asset value and do not
reflect any applicable insurance fees or surrender charges.
[CHART]
<Table>
<Caption>
PIONEER EQUITY INCOME RUSSELL 1000
VCT PORTFOLIO* VALUE INDEX+
3/31/1995 $ 10,000 $ 10,000
$ 12,025 $ 12,632
$ 13,852 $ 15,366
12/31/1997 $ 18,732 $ 20,773
$ 22,816 $ 24,021
12/31/1999 $ 23,092 $ 25,787
$ 26,522 $ 27,597
12/31/2001 $ 24,673 $ 26,054
$ 20,770 $ 22,010
6/30/2003 $ 22,465 $ 24,555
</Table>
+ Index comparison begins 2/28/95. The Russell 1000 Value Index measures the
performance of those Russell 1000 companies with lower price-to-book ratios
and lower forecasted growt values. Index returns assume reinvestment of
dividends and, unlike Portfolio returns, do not reflect any fees, expenses or
sales charges. Portfolio returns are based on net asset value and do not
reflect any annuity-related costs. You cannot invest directly in any Index.
AVERAGE ANNUAL TOTAL RETURNS
(As of June 30, 2003)
NET ASSET VALUE*
<Table>
Life-of-Class
(3/1/95) 10.57%
5 Years 1.31%
1 Year -3.69%
</Table>
All total returns shown assume reinvestment of distributions at net asset value.
* Portfolio performance does not reflect any variable contract fees, expenses
or sales charges. If they had been included, performance would have been
lower. See the pages that comprise the inside cover of this report for
performance net of any contract fees, expenses or sales charges.
Past performance does not guarantee future results. Returns and principal values
fluctuate so that your investment, when redeemed, may be worth more or less than
its original cost. The performance table and graph do not reflect the deduction
of taxes that a shareowner would pay on distributions or the redemption of
shares.
2
<Page>
PIONEER EQUITY INCOME VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
PORTFOLIO MANAGEMENT DISCUSSION 6/30/03
In the following discussion, John Carey, portfolio manager of Pioneer Equity
Income VCT Portfolio, reviews the Portfolio's performance and the investment
environment over the first half of 2003.
Q: HOW DID PIONEER EQUITY INCOME VCT PORTFOLIO PERFORM OVER THE SIX-MONTH PERIOD
ENDED JUNE 30, 2003?
A: For the six months ended June 30, 2003, Pioneer Equity Income VCT Portfolio
returned 8.16% at net asset value. The Portfolio's benchmark, the Russell
1000 Value Index returned 11.57% over the same period.
Q: PLEASE DESCRIBE THE INVESTMENT BACKDROP OVER THE PERIOD.
A: While the first quarter of the year was marked by the war in Iraq and
declining equity markets, the second quarter looked much brighter. Heartened
by the U.S. success in Iraq, continued low interest rates, new Federal tax
cuts and improved corporate earnings, investors flocked back to the stock
market in the second quarter. Prices rose sharply from the depressed levels
of earlier in the year. At the margins there was intense speculative activity
in many "deep value" and "turnaround" stocks, and an increase in
merger-and-acquisition transactions also captivated investors.
Q: WHAT HELPED AND WHAT HINDERED RESULTS?
A: For the six months ended June 30, 2003, the greatest contributor to
performance was our security selection in industrials. PACCAR, the
heavy-truck manufacturer, contributed to relative performance by returning
48% year-to-date.
Also contributing positively to relative performance during the period was
our security selection in the energy sector. Our overweight in ConocoPhillips
helped as the company returned over 15% during the first six months of the
year. Our position in Exxon Mobil also contributed to performance.
Our security selection in the consumer discretionary sector detracted from
relative performance. Eastman Kodak lost almost 20% during the period, on
reduced profit forecasts due to the SARS epidemic in Asia, which detracted
from film sales. Our low weighting and security selection within the
strong-performing information technology sector also detracted from
performance. Diebold, one of the world's largest producers of ATMs and
related software, performed poorly.
Other weak performers included Johnson & Johnson, Roanoke Electric Steel and
Sara Lee. Also, not owning tobacco stocks in a quarter in which they
outperformed detracted from performance.
Q: WHAT CHANGES DID YOU MAKE TO THE PORTFOLIO OVER THE PERIOD?
A: Following Microsoft's new focus on dividends, we added shares of that
dominant software company. Rising farm income also led us to initiate a
position in Deere, the most important agricultural-equipment manufacturer.
Other securities added in the six-month period were Coca-Cola, Charter One
Financial and Simon DeBartolo Group.
Sold during the first six months of the year were 3M and Fifth Third Bancorp,
both of which reached our price targets. Less happy were our experiences with
Schering-Plough, Duke Energy, Dell and Nicor, all of which we sold following
disappointing corporate developments. In the case of American Water Works, we
sold at a profit in a cash acquisition offer.
Q: WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF THE YEAR?
A: We are optimistic for the rest of the year, though we have several concerns.
The high prices of oil and natural gas may become a drag on corporate
profitability as the year progresses. We are also watching the bond market
closely and are wondering about the effects of rising longer-term rates on
housing, mortgage-finance companies and insurance companies with large bond
portfolios. Finally, we expect the dollar to stabilize and even strengthen
somewhat against the euro and so do not think that a boost to earnings from
the weak dollar will persist.
THE PRECEDING INFORMATION IS THE OPINION OF FUND MANAGEMENT. PAST PERFORMANCE IS
NO GUARANTEE OF FUTURE RESULTS, AND THERE IS NO GUARANTEE THAT MARKET FORECASTS
DISCUSSED WILL BE REALIZED.
[SIDENOTE]
The Portfolio's investment adviser, Pioneer Investment Management, Inc., reduced
its management fee and certain other expenses; otherwise, returns would have
been lower.
3
<Page>
PIONEER EQUITY INCOME VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
SCHEDULE OF INVESTMENTS 6/30/03 (UNAUDITED)
<Table>
<Caption>
SHARES VALUE
CONVERTIBLE PREFERRED STOCKS - 2.6%
TRANSPORTATION - 0.8%
RAILROADS - 0.8%
29,347 Union Pacific Capital Trust, 6.25%, 4/1/28 (144A) $ 1,471,018
------------
TOTAL TRANSPORTATION $ 1,471,018
------------
AUTOMOBILES & COMPONENTS - 0.7%
AUTOMOBILE MANUFACTURERS - 0.7%
2,600 General Motors, 5.25%, 3/6/32 $ 57,850
25,600 Ford Capital Trust, 6.5%, 1/15/32 1,108,736
------------
TOTAL AUTOMOBILES & COMPONENTS $ 1,166,586
------------
SOFTWARE & SERVICES - 1.1%
DATA PROCESSING & OUTSOURCED SERVICES - 1.1%
94,700 Electronic Data, 7.625%, 8/17/04 $ 2,071,563
------------
TOTAL SOFTWARE & SERVICES $ 2,071,563
------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $7,228,993) $ 4,709,167
------------
<Caption>
PRINCIPAL
AMOUNT
CONVERTIBLE CORPORATE BONDS - 0.4%
RETAILING - 0.1%
APPAREL RETAIL - 0.1%
$ 200,000 Gap Inc., 5.75%, 3/15/09 $ 268,750
------------
TOTAL RETAILING $ 268,750
------------
TECHNOLOGY HARDWARE & EQUIPMENT - 0.3%
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.3%
480,000 Veeco Instruments, 4.125%, 12/21/08 $ 439,200
------------
TOTAL TECHNOLOGY HARDWARE & EQUIPMENT $ 439,200
------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $696,442) $ 707,950
------------
<Caption>
SHARES
COMMON STOCKS - 91.6%
ENERGY - 10.4%
INTEGRATED OIL & GAS - 10.4%
98,300 ChevronTexaco Corp. $ 7,097,260
111,865 CononcoPhillips, Inc. 6,130,202
161,066 Exxon Mobil Corp. 5,783,880
------------
TOTAL ENERGY $ 19,011,342
------------
MATERIALS - 3.9%
COMMODITY CHEMICALS - 2.2%
50,300 Air Products & Chemicals, Inc. $ 2,092,480
25,000 Dow Chemical Co. 774,000
27,341 E.I. du Pont de Nemours and Co. 1,138,479
------------
$ 4,004,959
------------
DIVERSIFIED CHEMICALS - 0.7%
25,300 PPG Industries, Inc. $ 1,283,722
------------
PAPER PRODUCTS - 0.4%
25,800 Meadwestvaco Corp. $ 637,260
------------
STEEL - 0.6%
19,600 Nucor Corp. $ 957,460
20,050 Roanoke Electric Steel Corp. 150,175
------------
$ 1,107,635
------------
TOTAL MATERIALS $ 7,033,576
------------
CAPITAL GOODS - 7.8%
AEROSPACE & DEFENSE - 2.7%
51,600 Boeing Co. $ 1,770,912
43,200 General Dynamics Corp. 3,132,000
------------
$ 4,902,912
------------
ELECTRICAL COMPONENTS & EQUIPMENT - 1.2%
43,900 Emerson Electric Co. $ 2,243,290
------------
INDUSTRIAL CONGLOMERATES - 2.6%
10,300 Illinois Tool Works, Inc. $ 678,255
27,900 Johnson Controls, Inc. 2,388,240
22,200 United Technologies Corp. 1,572,426
------------
$ 4,638,921
------------
INDUSTRIAL MACHINERY - 1.3%
25,000 Deere & Co. $ 1,142,500
22,000 Gorman-Rupp Co. 528,000
37,200 The Timken Co. 651,372
------------
$ 2,321,872
------------
TOTAL CAPITAL GOODS $ 14,106,995
------------
TRANSPORTATION - 1.6%
RAILROADS - 1.6%
26,500 Burlington Northern, Inc. $ 753,660
42,500 Norfolk Southern Corp. 816,000
56,800 Philadelphia Suburban Corp. 1,384,784
------------
TOTAL TRANSPORTATION $ 2,954,444
------------
AUTOMOBILES & COMPONENTS - 4.1%
AUTOMOBILE MANUFACTURERS - 4.1%
110,450 PACCAR, Inc. $ 7,446,539
------------
TOTAL AUTOMOBILES & COMPONENTS $ 7,446,539
------------
CONSUMER DURABLES & APPAREL - 0.4%
PHOTOGRAPHIC PRODUCTS - 0.4%
27,800 Eastman Kodak Co. $ 760,330
------------
TOTAL CONSUMER DURABLES & APPAREL $ 760,330
------------
MEDIA - 4.2%
MOVIES & ENTERTAINMENT - 2.0%
132,400 Cedar Fair, L.P. $ 3,707,200
------------
PUBLISHING - 2.2%
40,500 McGraw-Hill Co., Inc. $ 2,511,000
29,900 Tribune Co. 1,444,170
------------
$ 3,955,170
------------
TOTAL MEDIA $ 7,662,370
------------
</Table>
The accompanying notes are an integral part of these financial statements.
4
<Page>
<Table>
<Caption>
SHARES VALUE
RETAILING - 1.5%
DEPARTMENT STORES - 0.8%
62,825 May Department Stores Co. $ 1,398,485
------------
GENERAL MERCHANDISE STORES - 0.7%
40,300 Sears, Roebuck and Co. $ 1,355,692
------------
TOTAL RETAILING $ 2,754,177
------------
FOOD, BEVERAGE & TOBACCO - 6.5%
PACKAGED FOODS & MEATS - 4.7%
147,500 Campbell Soup Co. $ 3,613,750
22,200 General Mills, Inc. 1,052,502
64,100 H.J. Heinz Co., Inc. 2,114,018
96,900 Sara Lee Corp. 1,822,689
------------
$ 8,602,959
------------
SOFT DRINKS - 1.8%
12,900 The Coca-Cola Co. $ 598,689
58,600 PepsiCo, Inc. 2,607,700
------------
$ 3,206,389
------------
TOTAL FOOD, BEVERAGE & TOBACCO $ 11,809,348
------------
HOUSEHOLD & PERSONAL PRODUCTS - 1.2%
HOUSEHOLD PRODUCTS - 1.2%
39,200 Colgate-Palmolive Co. $ 2,271,640
------------
TOTAL HOUSEHOLD & PERSONAL PRODUCTS $ 2,271,640
------------
HEALTH CARE EQUIPMENT & SERVICES - 4.4%
HEALTH CARE DISTRIBUTORS & SERVICES - 3.6%
88,900 Abbott Laboratories $ 3,890,264
50,600 Johnson & Johnson Co. 2,616,020
------------
$ 6,506,284
------------
HEALTH CARE EQUIPMENT - 0.8%
38,200 Becton, Dickinson & Co. $ 1,484,070
------------
TOTAL HEALTH CARE EQUIPMENT & SERVICES $ 7,990,354
------------
PHARMACEUTICALS & BIOTECHNOLOGY - 2.6%
PHARMACEUTICALS - 2.6%
27,900 Eli Lilly & Co. $ 1,924,263
47,300 Merck & Co., Inc. 2,864,015
------------
TOTAL PHARMACEUTICALS & BIOTECHNOLOGY $ 4,788,278
------------
BANKS - 11.0%
DIVERSIFIED BANKS - 4.1%
154,900 Charter One Financial, Inc. $ 4,829,782
53,700 Wells Fargo & Co. 2,706,480
------------
$ 7,536,262
------------
REGIONAL BANKS - 6.3%
62,200 First Tennessee National Corp. $ 2,731,202
87,300 National City Corp. 2,855,583
75,200 SouthTrust Corp. 2,045,440
63,000 SunTrust Banks, Inc. 3,738,420
------------
$ 11,370,645
------------
THRIFTS & MORTGAGE FINANCE - 0.6%
24,800 Washington Mutual, Inc. $ 1,024,240
------------
TOTAL BANKS $ 19,931,147
------------
DIVERSIFIED FINANCIALS - 5.7%
ASSET MANAGEMENT & CUSTODY BANKS - 2.4%
26,800 Eaton Vance Corp. $ 846,880
93,700 T. Rowe Price Associates, Inc. 3,537,175
------------
$ 4,384,055
------------
INVESTMENT BANKING & BROKERAGE - 1.6%
43,100 A.G. Edwards, Inc. $ 1,474,020
32,500 Merrill Lynch & Co., Inc. 1,517,100
------------
$ 2,991,120
------------
OTHER DIVERSIFIED FINANCE SERVICES - 1.7%
83,800 Alliance Capital Management L.P. $ 3,058,700
------------
TOTAL DIVERSIFIED FINANCIALS $ 10,433,875
------------
INSURANCE - 3.3%
PROPERTY & CASUALTY INSURANCE - 3.3%
51,600 Chubb Corp. $ 3,096,000
26,800 Safeco Corp. 945,504
53,900 St. Paul Companies, Inc. 1,967,889
------------
TOTAL INSURANCE $ 6,009,393
------------
REAL ESTATE - 2.0%
REAL ESTATE INVESTMENT TRUSTS - 2.0%
62,000 Equity Office Properties Trust $ 1,674,620
51,600 Simon DeBartolo Group, Inc. 2,013,948
------------
TOTAL REAL ESTATE $ 3,688,568
------------
SOFTWARE & SERVICES - 0.4%
APPLICATION SOFTWARE - 0.4%
31,000 Microsoft Corp. $ 793,910
------------
TOTAL SOFTWARE & SERVICES $ 793,910
------------
TECHNOLOGY HARDWARE & EQUIPMENT - 1.3%
COMPUTER HARDWARE - 1.3%
44,300 Diebold, Inc. $ 1,915,975
6,200 IBM Corp. * 511,500
------------
TOTAL TECHNOLOGY HARDWARE & EQUIPMENT $ 2,427,475
------------
TELECOMMUNICATION SERVICES - 4.8%
INTEGRATED TELECOMMUNICATION SERVICES - 4.8%
36,100 Alltel Corp. $ 1,740,742
98,500 BellSouth Corp. 2,623,055
169,800 SBC Communications, Inc. 4,338,390
------------
TOTAL TELECOMMUNICATION SERVICES $ 8,702,187
------------
</Table>
The accompanying notes are an integral part of these financial statements.
5
<Page>
<Table>
<Caption>
SHARES VALUE
UTILITIES - 14.4%
ELECTRIC UTILITIES - 9.3%
55,800 American Electric Power Co., Inc. $ 1,664,514
143,500 Constellation Energy Group 4,922,050
41,300 Consolidated Edison, Inc. 1,787,464
33,000 FPL Group, Inc. 2,206,050
90,900 Great Plains Energy, Inc. 2,625,192
64,000 NSTAR 2,915,200
23,700 Southern Co. 738,492
-------------
$ 16,858,962
-------------
GAS UTILITIES - 4.8%
105,900 KeySpan Energy Corp. $ 3,754,155
105,900 Questar Corp. 3,544,473
61,100 Vectren Corp. 1,530,554
-------------
$ 8,829,182
-------------
MULTI-UTILITIES & UNREGULATED POWER - 0.3%
25,800 Consol Energy Inc. $ 586,692
-------------
TOTAL UTILITIES $ 26,274,836
-------------
TOTAL COMMON STOCKS
(Cost $150,869,607) $ 166,850,784
-------------
<Caption>
PRINCIPAL
AMOUNT VALUE
TEMPORARY CASH INVESTMENTS - 5.4%
REPURCHASE AGREEMENT - 3.7%
$6,800,000 Bear Stearns & Co., Inc.,
dated 6/30/03, repurchase price of
$6,800,000 plus accrued interest
on 7/1/03 collateralized by $6,481,000
U.S. Treasury Bonds, 11.875%, 11/15/03 $ 6,800,000
-------------
SECURITY LENDING COLLATERAL - 1.7%
$3,166,730 Securities Lending Investment Fund, 1.21% $ 3,166,730
-------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $9,966,730) $ 9,966,730
-------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $168,761,773) $ 182,234,631
=============
</Table>
* Non-income producing security.
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At June 30, 2003, the
value of these securities amounted to $1,471,018 or 0.8% of total net
assets.
The accompanying notes are an integral part of these financial statements.
6
<Page>
PIONEER EQUITY INCOME VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
SIX MONTHS
ENDED
6/30/03 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
CLASS I (UNAUDITED) 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98
Net asset value, beginning of period $ 15.11 $ 18.40 $ 21.28 $ 20.72 $ 21.44 $ 18.14
-------- -------- -------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.19 $ 0.42 $ 0.40 $ 0.51 $ 0.42 $ 0.39
Net realized and unrealized gain (loss)
on investments 1.03 (3.30) (1.86) 2.28 (0.15) 3.52
-------- -------- -------- -------- -------- --------
Net increase (decrease) from investment
operations $ 1.22 $ (2.88) $ (1.46) $ 2.79 $ 0.27 $ 3.91
Distributions to shareowners:
Net investment income (0.18) (0.41) (0.36) (0.49) (0.41) (0.39)
Net realized gain - - (1.06) (1.74) (0.58) (0.22)
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ 1.04 $ (3.29) $ (2.88) $ 0.56 $ (0.72) $ 3.30
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 16.15 $ 15.11 $ 18.40 $ 21.28 $ 20.72 $ 21.44
======== ======== ======== ======== ======== ========
Total return* 8.16% (15.82)% (6.97)% 14.85% 1.21% 21.80%
Ratio of net expenses to average net assets+ 0.72%** 0.80% 0.75% 0.71% 0.70% 0.71%
Ratio of net investment income (loss) to
average net assets+ 2.18%** 2.48% 2.07% 2.40% 1.97% 2.04%
Portfolio turnover rate 14%** 12% 13% 13% 23% 19%
Net assets, end of period (in thousands) $139,905 $133,258 $164,019 $181,920 $226,379 $203,976
Ratios with no waiver of management fees and
assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 0.72%** 0.80% 0.75% 0.71% 0.70% 0.71%
Net investment income (loss) 2.18%** 2.48% 2.07% 2.40% 1.97% 2.04%
Ratios with waiver of management fees and
assumption of expenses by PIM and reduction
for fees paid indirectly:
Net expenses 0.72%** 0.80% 0.75% 0.71% 0.70% 0.71%
Net investment income (loss) 2.18%** 2.48% 2.07% 2.40% 1.97% 2.04%
</Table>
* 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 with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
7
<Page>
PIONEER EQUITY INCOME VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
BALANCE SHEET 6/30/03 (UNAUDITED)
<Table>
<Caption>
PIONEER
EQUITY INCOME
VCT PORTFOLIO
ASSETS:
Investment in securities, at value, (including securities
loaned of $3,039,048) (cost $168,761,773) $ 182,234,631
Cash 83,530
Cash held as collateral for futures contracts -
Foreign currencies, at value -
Receivables -
Investment securities sold -
Fund shares sold 513,540
Variation margin -
Dividends, interest and foreign taxes withheld 314,067
Forward foreign currency settlement contracts, net -
Forward foreign currency portfolio hedge contracts, open-net -
Due from Pioneer Investment Management, Inc. -
Other 493
-------------
Total assets $ 183,146,261
-------------
LIABILITIES:
Payables -
Investment securities purchased $ -
Fund shares repurchased 143,403
Dividends -
Upon return for securities loaned 3,166,730
Variation margin -
Forward foreign currency settlement contracts, net -
Forward foreign currency portfolio hedge contracts, -
Due to bank
Due to affiliates 114,964
Accrued expenses 66,809
Other - -
-------------
Total liabilities $ 3,491,906
-------------
NET ASSETS:
Paid-in capital $ 180,837,354
Accumulated net investment income (loss) 1,250,792
Accumulated undistributed net realized gain (loss) (15,906,649)
Net unrealized gain (loss) on:
Investments 13,472,858
Futures contracts -
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies -
-------------
Total net assets $ 179,654,355
-------------
NET ASSET VALUE PER SHARE:
CLASS I:
(Unlimited number of shares authorized)
Net assets $ 139,904,568
Shares outstanding 8,661,488
=============
Net asset value per share $ 16.15
CLASS II:
(Unlimited number of shares authorized)
Net assets $ 39,749,787
Shares outstanding 2,450,165
=============
Net asset value per share $ 16.22
</Table>
The accompanying notes are an integral part of these financial statements.
8
<Page>
PIONEER EQUITY INCOME VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
STATEMENT OF OPERATIONS (UNAUDITED)
<Table>
<Caption>
PIONEER
EQUITY INCOME
VCT PORTFOLIO
SIX MONTHS
ENDED
6/30/03
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $0) $ 2,628,343
Interest (net of foreign taxes withheld of $0) 70,465
Income on securities loaned, net 1,297
Other -
-------------
Total investment income $ 2,700,105
-------------
EXPENSES:
Management fees $ 520,165
Transfer agent fees 1,022
Distribution fees (Class II) 39,191
Administrative fees 32,049
Custodian fees 20,059
Professional fees 11,081
Printing 76,718
Fees and expenses of nonaffiliated trustees 1,389
Miscellaneous 6,444
-------------
Total expenses $ 708,118
Less management fees waived and expenses assumed
by Pioneer Investment Management, Inc. -
Less fees paid indirectly -
-------------
Net expenses $ 708,118
-------------
Net investment income (loss) $ 1,991,987
-------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FUTURES CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $ (1,143,505)
Futures contracts -
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies -
-------------
$ (1,143,505)
-------------
Change in net unrealized gain or loss from:
Investments $ 12,277,967
Futures contracts -
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies -
-------------
$ 12,277,967
-------------
Net gain (loss) on investments, futures contracts
and foreign currency transactions $ 11,134,462
=============
Net increase (decrease) in net assets resulting
from operations $ 13,126,449
=============
</Table>
The accompanying notes are an integral part of these financial statements.
9
<Page>
PIONEER EQUITY INCOME VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
PIONEER EQUITY INCOME
VCT PORTFOLIO
SIX MONTHS
ENDED YEAR
6/30/03 ENDED
(UNAUDITED) 12/31/02
FROM OPERATIONS:
Net investment income (loss) $ 1,991,987 $ 4,268,983
Net realized gain (loss) on investments (1,143,505) (8,261,714)
Change in net unrealized gain or loss on investments, futures
contracts and foreign currency transactions 12,277,967 (27,486,806)
------------- -------------
Net increase (decrease) in net assets resulting from
operations $ 13,126,449 $ (31,479,537)
------------- -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income
Class I $ (1,538,543) $ (3,650,009)
Class II (351,917) (551,010)
Net realized gain
Class I - -
Class II - -
Tax return of capital
Class I - -
Class II - -
------------- -------------
Total distributions to shareowners $ (1,890,460) $ (4,201,019)
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 24,000,663 $ 49,351,660
Reinvestment of distributions 1,890,691 4,201,019
Cost of shares repurchased (17,814,481) (39,497,483)
------------- -------------
Net increase (decrease) in net assets resulting from
fund share transactions $ 8,076,873 $ 14,055,196
------------- -------------
Net increase (decrease) in net assets $ 19,312,862 $ (21,625,360)
------------- -------------
NET ASSETS:
Beginning of period $ 160,341,493 $ 181,966,853
------------- -------------
End of period $ 179,654,355 $ 160,341,493
============= =============
Accumulated undistributed/(distributions in excess of) net
investment income (loss) $ 1,250,792 $ 1,149,345
============= =============
</Table>
The accompanying notes are an integral part of these financial statements.
10
<Page>
PIONEER EQUITY INCOME VCT PORTFOLIO
NOTES TO FINANCIAL STATEMENTS 6/30/03 (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Pioneer Variable Contracts Trust (the Trust) is a Delaware business trust
registered under the Investment Company Act of 1940 as an open-end management
investment company. The Trust consists of sixteen separate portfolios
(collectively, the Portfolios, individually the Portfolio) as follows:
PORTFOLIOS:
Pioneer Emerging Markets VCT Portfolio (Emerging Markets Portfolio)
Pioneer Europe VCT Portfolio (Europe Portfolio)
Pioneer International Value VCT Portfolio (International Value Portfolio)
Pioneer Small Cap Value VCT Portfolio (Small Cap Value Portfolio)
Pioneer Small Company VCT Portfolio (Small Company Portfolio
Pioneer Mid Cap Value VCT Portfolio (Mid-Cap Value Portfolio)
Pioneer Growth Shares VCT Portfolio (Growth Shares Portfolio)
Pioneer Real Estate Shares VCT Portfolio (Real Estate Shares Portfolio)
Pioneer Fund VCT Portfolio (Fund Portfolio)
Pioneer Equity Income VCT Portfolio (Equity-Income Portfolio)
Pioneer Balanced VCT Portfolio (Balanced Portfolio)
Pioneer High Yield VCT Portfolio (High Yield Portfolio)
Pioneer Strategic Income VCT Portfolio (Strategic Income Portfolio)
Pioneer America Income VCT Portfolio (America Income Portfolio)
Pioneer Money Market VCT Portfolio (Money Market Portfolio)
Pioneer Value VCT Portfolio (Value Portfolio) (Class II only)
Portfolio shares may be purchased by insurance companies for the purpose of
Equity Income variable annuity or variable life insurance contracts, and may
also be purchased by qualified pension and retirement plans.
The investment objective of Equity Income Portfolio is to seek capital
appreciation.
The Trust's financial statements have been prepared in conformity with
accounting principles generally accepted in the United States that require the
management of the Trust to, among other things, make estimates and assumptions
that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements, and
the reported amounts of revenues and expenses during the reporting periods.
Actual results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by the Trust, which are in
conformity with those generally accepted in the investment company industry:
A. SECURITY VALUATION
Security transactions are recorded as of trade date. Net asset values for the
portfolios are 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 values, 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.
Trading in foreign equity securities is substantially completed each day at
various times prior to the close of the New York Stock Exchange. The value of
such securities used in computing the net asset value of the Portfolio's
shares, based on the last sale price on the principal exchange where they
traded, are determined as of such times.
Fixed income securities are valued at prices supplied by independent pricing
services, which consider such factors as Treasury spreads, yields, maturities
and ratings. Valuations may be supplemented by dealers and other sources, as
required. 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. Temporary cash investments are valued at amortized
cost.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Portfolio is informed of the ex-dividend data in
the exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis, net of
unrecoverable foreign taxes withheld at the applicable country rates. All
discounts/premiums are accreted/amortized for financial reporting purposes.
Gains and losses from sales on investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. FUTURES CONTRACTS
The Portfolios may enter into futures transactions to hedge against changes
in interest rates, securities prices, and currency rates or to seek to
increase total return. Upon entering into a futures contract, the Portfolios
are required to deposit with a broker an amount of cash or securities equal
to the minimum "initial margin" requirements of the associated futures
exchange. Subsequent payments for futures contracts ("variation margin") are
paid or received by the
11
<Page>
Portfolios, depending on the daily fluctuation in the value of the contracts,
and are recorded by the Portfolios as unrealized gains or losses. When the
contract is closed, the Portfolios realize a gain or loss equal to the
difference between the opening and closing value of the contract. The use of
futures contracts involves, to varying degrees, elements of market risk which
may exceed the amounts recognized by the Portfolios. Changes in the value of
the contracts may not directly correlate to the changes in the value of the
underlying securities. These risks may decrease the effectiveness of the
Portfolio's hedging and trading strategies and potentially result in a loss.
As of June 30, 2003, Equity Income Portfolio had no open contracts.
C. FOREIGN CURRENCY TRANSLATION
The books and records of the Portfolio are maintained in U.S. dollars.
Amounts denominated in foreign currencies are translated into U.S. dollars
using current exchange rates.
Net realized gains and losses on foreign currency transactions represent, the
net realized gains and losses on foreign currency contracts, disposition of
foreign currencies, and the difference between the amount of income accrued
and the U.S. dollar actually received. Further, the effects of changes in
foreign currency exchange rates on investments are not segregated in the
statement of operations from the effects of changes in market price of those
securities but are included with the net realized and unrealized gain or loss
on investments.
D. FORWARD FOREIGN CURRENCY CONTRACTS
The Portfolio enters into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are recorded in the Portfolios'
financial statements. The Portfolio records realized gains and losses at the
time a portfolio hedge is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering into
these contracts from the potential inability of counterparties to meet the
terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar.
E. TAXES
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
The characterization of distributions to shareowners for financial reporting
purposes is determined in accordance with income tax rules. Therefore, the
source of each Portfolio's distributions may be shown in the accompanying
financial statements as either from or in excess of net investment income or
net realized gain on investment transactions, or from paid-in capital,
depending on the type of book/tax differences that may exist.
Capital loss carryforwards are available to offset future realized capital
gains. At December 31, 2002, Equity Income VCT Portfolio had a capital loss
carryforward of $12,735,231, which will expire between 2009 and 2010 if not
utilized.
The Portfolio elected to defer $2,027,913 of capital losses recognized
between November 1, 2002 and December 31, 2002 to its fiscal year ending
December 31, 2003.
12
<Page>
The following chart shows the components of distributable earnings
(accumulated losses) as of December 31, 2002 and the distributions paid
during the year ended December 31, 2002 on a tax basis as of December 31,
2002. The tax character of current year distributions will be determined at
the end of the current fiscal year. These amounts do not include the capital
loss carryforward detailed above.
<Table>
<Caption>
PIONEER
STRATEGIC
INCOME
VCT PORTFOLIO
2002
- ---------------------------------------------------------------
DISTRIBUTIONS PAID FROM:
Ordinary Income $ 4,201,019
Long-Term capital gain -
-----------
$ 4,201,019
Return of Capital -
-----------
Total distributions $ 4,201,019
-----------
DISTRIBUTABLE EARNINGS
(ACCUMULATED LOSSES):
Undistributed ordinary income $ -
Undistributed long-term gain -
Unrealized appreciation/(depreciation) 2,344,156
-----------
Total $ 2,344,156
-----------
</Table>
The difference between book-basis and tax-basis unrealized appreciation
(depreciation) is primarily attributable to the tax deferral of losses on
wash sales, returns of capital on REITs, and the recognition of unrealized
gains or losses on certain futures contracts.
F. PORTFOLIO SHARES
The Portfolio records sales and repurchases of its shares as of trade date.
Certain insurance companies paid Pioneer Funds Distributor, Inc. (PFD), the
principal underwriter for the Trust and a wholly owned indirect subsidiary of
UniCredito Italiano S.p.A. (UniCredito Italiano), $30,371 in commissions on
the sale of portfolio shares for the six months ended June 30, 2003.
Dividends and distributions to shareowners are recorded on the ex-dividend
date.
G. SECURITIES LENDING
The Portfolio lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Portfolios' custodian acting as the
lending agent. When entering into a loan, the Portfolio receives collateral
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Portfolio also continues to receive interest or
dividends on the securities loaned, and gain or loss in the fair value of the
securities loaned that may occur during the term of the loan, will be for
account of the Portfolio. The loans are secured by collateral of at least
102%, at all times, of the fair value of the securities loaned. The fair
value of the collateral will be adjusted daily to reflect any price
fluctuation in the value of the loaned securities. The value of loaned
securities and cash collateral at period end are disclosed on the balance
sheet. The Trust invests cash collateral in the Securities Lending Investment
Fund which is managed by Brown Brothers Harriman & Co., the Trust's
custodian.
H. REPURCHASE AGREEMENTS
With respect to repurchase agreements entered into by the Portfolio, the
value of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of purchase. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Portfolio's custodian, or subcustodian. The
Trust's investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at least
equal to the repurchase price.
2. MANAGEMENT AGREEMENT
PIM manages the Portfolio, and is a wholly owned indirect subsidiary of
UniCredito Italiano. Management fees are calculated daily at the following
annual rate of 0.65% of the Portfolios' average daily net assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Portfolio. At June 30, 2003, $106,200 was payable to
PIM related to management fees, administrative fees and certain other services.
3. TRANSFER AGENT
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly owned
indirect subsidiary of UniCredito Italiano provides substantially all transfer
agent and shareowner services to the Trust at negotiated rates. Included in due
to affiliates is $258 in transfer agent fees payable to PIMSS at June 30, 2003.
4. DISTRIBUTION PLANS
The Portfolio has adopted a plan of distribution for Class II shares in
accordance with Rule 12b-1 under the Investment Company Act of 1940. Under the
plan, the Portfolio pays PFD a distribution fee of 0.25% of the average daily
net assets attributable to Class II shares. Included in due to affiliates is
$8,506 payable to PFD at June 30, 2003.
13
<Page>
5. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION
At June 30, 2003, the Portfolios' aggregate unrealized appreciation and
depreciation based on cost for federal income tax purposes was as follows:
<Table>
<Caption>
GROSS GROSS NET APPRECIATION/
TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
- ---------------------------------------------------------------------------------------------------------------------------------
Equity Income Portfolio $167,612,508 $24,201,527 $(9,579,404) $14,622,123
</Table>
6. PORTFOLIO TRANSACTIONS
The cost of purchases and the proceeds from sales of investments other than U.S.
Government obligations and temporary cash investments for the six months ended
June 30, 2003, were $20,956,502 and $12,849,080, respectively.
7. CAPITAL SHARES
At June 30, 2003, there were an unlimited number of shares of beneficial
interest authorized. Transactions in capital shares were as follows:
<Table>
<Caption>
'03 SHARES '03 AMOUNT '02 SHARES '02 AMOUNT
- -----------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME PORTFOLIO
CLASS I:
Shares sold 791,250 $ 11,969,323 1,395,275 $ 23,429,706
Reinvestment of distributions 101,678 1,538,774 223,712 3,650,009
Shares repurchased (1,049,892) (15,570,237) (1,716,186) (27,000,779)
------------------------------------------------------------------------------------
Net increase (decrease) (156,964) $ (2,062,140) (97,199) $ 78,936
====================================================================================
CLASS II:
Shares sold 792,849 $ 12,031,340 1,549,025 $ 25,921,954
Reinvestment of distributions 23,075 351,917 34,034 551,010
Shares repurchased (150,369) (2,244,244) (769,373) (12,496,704)
------------------------------------------------------------------------------------
Net increase 665,555 $ 10,139,013 813,686 $ 13,976,260
====================================================================================
</Table>
14
<Page>
THIS PAGE FOR YOUR NOTES.
15
<Page>
THIS PAGE FOR YOUR NOTES.
16
<Page>
[PIONEER INVESTMENTS(R) LOGO]
PIONEER VARIABLE CONTRACTS TRUST
OFFICERS
JOHN F. COGAN, JR., PRESIDENT
OSBERT M. HOOD, EXECUTIVE VICE PRESIDENT*
VINCENT NAVE, TREASURER
JOSEPH P. BARRI, SECRETARY
TRUSTEES
JOHN F. COGAN, JR., CHAIRMAN
MARY K. BUSH
RICHARD H. EGDAHL, M.D.
MARGARET B.W. GRAHAM
OSBERT M. HOOD*
STEPHEN K. WEST
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
PIONEER INVESTMENT MANAGEMENT SHAREHOLDER SERVICES, INC.
*MR. HOOD WAS ELECTED TRUSTEE AND EXECUTIVE VICE PRESIDENT ON JUNE 3, 2003.
DANIEL T. GERACI RESIGNED AS TRUSTEE AND EXECUTIVE VICE PRESIDENT OF THE FUND ON
APRIL 30, 2003.
THIS REPORT MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS, WHICH INCLUDES MORE
INFORMATION ABOUT CHARGES AND EXPENSES. PLEASE READ THE PROSPECTUS CAREFULLY
BEFORE YOU INVEST OR SEND MONEY.
13957-00-0803
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
Not applicable for semiannual reports; to be answered on annual submissions
after July 15, 2003.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable for semiannual reports; to be answered on annual submissions
after July 15, 2003.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
Not applicable for semiannual reports; to be answered on annual submissions
after December 15, 2003.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation of
these controls and procedures as of a date within 90 days prior to the filing
date of this report.
(b) There were no significant changes in the registrants internal controls
or in other factors that could significantly affect these controls subsequent
to the date of their evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
Not applicable.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Equity Income VCT Portfolio Class I Shares
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date August 25, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date August 25, 2003
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date August 25, 2003
* Print the name and title of each signing officer under his or her signature.