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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 Small Cap Value VCT Portfolio Class II 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 SMALL CAP VALUE VCT PORTFOLIO -- CLASS II SHARES
SEMIANNUAL REPORT
JUNE 30, 2003
<Page>
PIONEER VARIABLE CONTRACTS TRUST
TABLE OF CONTENTS
<Table>
Pioneer Small Cap Value VCT Portfolio
Portfolio and Performance Update 2
Portfolio Management Discussion 3
Schedule of Investments 4
Financial Statements 8
Notes to Financial Statements 12
</Table>
<Page>
PIONEER SMALL CAP VALUE 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 90.30%
U.S. Denominated Foreign Stocks 4.00%
Temporary Cash Investment 3.90%
Exchange Traded Fund 1.80%
</Table>
[CHART]
SECTOR DISTRIBUTION
(As a percentage of equity holdings)
<Table>
Industrials 24%
Financials 20%
Consumer Discretionary 15%
Health Care 8%
Energy 8%
Information Technology 7%
Utilities 7%
Materials 6%
Consumer Staples 3%
Telecommunication Services 2%
</Table>
FIVE LARGEST HOLDINGS
(As a percentage of equity holdings)
<Table>
1. PacifiCare Health Systems, Inc. 2.02%
2. Southwestern Energy Co. 1.96
3. R.H. Donnelley Corp. 1.88
4. Swift Energy Co. 1.88
5. Stelmar Shipping Ltd. 1.82
</Table>
Holdings will vary for other periods. They exclude money market instruments.
PRICES AND DISTRIBUTIONS--CLASS II SHARES
<Table>
<Caption>
6/30/03 5/1/03
Net Asset Value per Share $ 10.35 $ 9.11
</Table>
<Table>
<Caption>
DISTRIBUTIONS PER SHARE SHORT-TERM LONG-TERM
(5/1/03 - 6/30/03) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
$ - $ - $ -
</Table>
PERFORMANCE OF A $10,000 INVESTMENT--CLASS II SHARES
The following chart shows the change in value of an investment made in PIONEER
SMALL CAP VALUE VCT PORTFOLIO at net asset value, compared to that of the
Russell 2000 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 SMALL CAP RUSSELL 2000
VALUE VCT PORTFOLIO* VALUE INDEX+
11/30/01 $ 10,000 $ 10,000
$ 10,572 $ 10,612
6/30/2002 $ 8,978 $ 9,400
6/30/2003 $ 10,068 $ 10,950
</Table>
+ Index comparison begins 11/30/01. The Russell 2000 Value Index is a measure
of the performance of the value-oriented stocks in the Russell 2000 Index.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Portfolio returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in the Index.
AVERAGE ANNUAL
TOTAL RETURNS+
(As of June 30, 2003)
<Table>
<Caption>
NET ASSET VALUE*
Life-of-Class 2.12%
1 Year -8.97%
</Table>
All total returns shown assume reinvestment of distributions at net asset value.
+ The performance of Class II shares for the period prior to the commencement
of operations of Class II shares on May 1, 2003 is based on the performance
of Class I shares, reduced to reflect the higher distribution fees of Class I
shares.
* 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 SMALL CAP VALUE VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
PORTFOLIO MANAGEMENT DISCUSSION 6/30/03
Pioneer Small Cap Value VCT Portfolio delivered positive results for shareowners
over the last six months. However, strength in speculative stocks that did not
meet the Portfolio's value criteria caused performance to lag the benchmark. In
the following discussion, portfolio manager David Adams and assistant portfolio
manager Jack McPherson review the changing environment for small-cap value
stocks and some of the investment decisions that affected performance.
Q: HOW DID THE PORTFOLIO PERFORM OVER THIS PERIOD?
A: For the six-month period ended June 30, 2003, Class II Shares of Pioneer
Small Cap Value VCT Portfolio returned 12.13%, at net asset value. These
results trailed the 16.49% return on the Russell 2000 Value Index, the
Portfolio's benchmark, for the same period.
Q: WHAT WERE CONDITIONS LIKE OVER THE PAST SIX MONTHS AND HOW DID YOU RESPOND?
A: Last fall, it appeared that the U.S. economy might be poised to expand.
However, uncertainties surrounding the war in Iraq and the protracted,
severe winter took a toll on business activity. But investor confidence
recovered as the war progressed.
In early March, stocks began a vigorous rally that continued through the end
of the period, with speculative issues recording the largest gains. In the
meantime, the economy has been moving in fits and starts, with unemployment
levels stubbornly high. Nevertheless, we have been structuring the Portfolio
for the possibility of a better economy, in part by purchasing slightly
larger companies and weeding out smaller holdings that disappointed.
Q: WHICH AREAS HAD THE MOST IMPACT ON RESULTS?
A: An overweight position and successful stock selection among energy issues
made a positive contribution to performance. Shares of coal producer Massey
Energy rose after the company resolved its operational problems. Swift
Energy, which produces oil and natural gas in and around the Gulf of Mexico,
delivered good earnings, giving evidence that production is on track after a
period of shortfalls. Another Gulf-area driller, Texas-based Southwestern
Energy, exploited new production areas and appears well situated to profit
from potentially higher natural gas prices.
Strong performers among financial companies included bank holding company
Irwin Financial, which saw its mortgage business expand as homeowners took
advantage of low interest rates. Title insurer Stewart Information Systems
was another direct beneficiary of the mortgage-refinancing boom. Medallion
Financial, which lends money to finance the purchase of taxi medallions in
New York and other large cities, emerged from a post-9/11 slump. Medallion
also operates the nation's largest taxi-top advertising company and is
setting up a bank in order to gather low-interest deposits that it can then
lend out.
Q: WHICH AREAS HELD BACK PERFORMANCE?
A: A significant portion of the Portfolio's underperformance compared to its
benchmark can be tied to health care stocks. We kept the Portfolio
underweighted in biotechnology, a sector characterized by high valuations
and modest profitability. As the market became less risk averse, several
biotech companies did well, hurting relative performance. Among portfolio
holdings, RITA Medical Systems makes laparoscopic devices for treating liver
cancer by means of thermal energy. Shares fell when the company's CEO
resigned. However, conversations with management have reaffirmed our
confidence in the company's prospects. We also remain optimistic about the
potential for Haemonetics, whose shares suffered when demand for its
automated blood-processing technology weakened.
Pediatrix has grown by acquiring neonatal and maternal-fetal medical
practices in several states. Shares dropped when the Federal Trade
Commission sought additional information about an acquisition it had
approved earlier. In addition, the CEO resigned unexpectedly, and the firm's
founder assumed that role. Coming on the heels of accounting scandals at
HealthSouth (not part of the Portfolio), these problems caused widespread
selling of Pediatrix. We bought shares on this weakness; prices had
recovered substantially by the end of the period.
Q: PLEASE GIVE US YOUR OUTLOOK FOR THE ECONOMY AND FOR SMALL STOCKS.
A: For the first time in years, small cap companies lagged large caps during
the troubling period that preceded the war. With the war resolved, small
companies began to outperform large companies once again. However, many
small-cap issues are still available at valuations that could attract
investors if the economy shows renewed signs of growth. Right now, business
conditions no longer seem to be worsening, but improvement is coming
grudgingly. If investors gain confidence that better economic times lay
ahead, small caps have the potential to produce strong returns.
Our energies remain focused on finding companies with solid finances whose
share prices appear to understate their potential to produce growing
earnings over the next few years.
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]
Small-capitalization stocks, while offering the potential for higher returns,
may be subject to greater short-term price fluctuations than securities of
larger companies.
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 SMALL CAP VALUE VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
SCHEDULE OF INVESTMENTS 6/30/03 (UNAUDITED)
<Table>
<Caption>
SHARES VALUE
COMMON STOCKS - 94.3%
ENERGY - 9.7%
OIL & GAS DRILLING - 1.9%
1,475 Atwood Oceanics, Inc.* $ 40,046
9,236 Key Energy Services Inc.* 99,010
----------
$ 139,056
----------
OIL & GAS EQUIPMENT & SERVICES - 3.0%
5,300 Gulfmark Offshore, Inc.* $ 89,464
1,130 Lufkin Industries, Inc. 27,515
5,265 Maverick Tube Corp.* 100,825
----------
$ 217,804
----------
OIL & GAS EXPLORATION & PRODUCTION - 4.2%
2,025 Penn Virginia Corp. $ 87,075
11,970 Swift Energy Co.* 131,670
516 Tom Brown, Inc.* 14,340
3,694 Unit Corp.* 77,242
----------
$ 310,327
----------
OIL & GAS REFINING, MARKETING &
TRANSPORTATION - 0.6%
1,612 St. Mary Land & Exploration Co. $ 44,008
----------
TOTAL ENERGY $ 711,195
----------
MATERIALS - 3.9%
DIVERSIFIED METALS & MINING - 1.7%
9,164 Massey Energy Co. $ 120,507
----------
PAPER PRODUCTS - 1.2%
5,693 Domtar Inc. $ 62,908
5,255 Mercer International, Inc.* 23,385
----------
$ 86,293
----------
SPECIALTY CHEMICALS - 0.4%
1,450 Great Lakes Chemical Corp. $ 29,580
----------
STEEL - 0.6%
8,293 Graftech International Ltd.* $ 45,197
----------
TOTAL MATERIALS $ 281,577
----------
CAPITAL GOODS - 9.3%
CONSTRUCTION, FARM MACHINERY &
HEAVY TRUCKS - 1.3%
6,925 Wabtec Corp. $ 96,327
----------
CONSTRUCTION & ENGINEERING - 2.3%
2,270 Granite Construction, Inc. $ 43,493
6,875 Insituform Technologies, Inc.* 121,550
----------
$ 165,043
----------
ELECTRICAL COMPONENTS & EQUIPMENT - 0.4%
4,654 Power-One, Inc.* $ 33,276
----------
INDUSTRIAL CONGLOMERATES - 2.0%
6,460 Cornell Companies, Inc.* $ 97,804
3,796 N N Ball & Roller, Inc. 48,057
----------
$ 145,861
----------
INDUSTRIAL MACHINERY - 2.3%
6,362 Joy Global, Inc.* $ 93,967
1,219 NACCO Industries, Inc. 71,848
----------
$ 165,815
----------
TRADING COMPANIES & DISTRIBUTORS - 1.0%
3,478 Applied Industrial Technologies, Inc. $ 73,386
----------
TOTAL CAPITAL GOODS $ 679,708
----------
COMMERCIAL SERVICES & SUPPLIES - 7.1%
COMMERCIAL PRINTING - 1.1%
3,068 John H. Harland Co. $ 80,259
----------
DIVERSIFIED COMMERCIAL SERVICES - 5.1%
5,700 Central Parking Corp. $ 70,452
1,832 FTI Consulting, Inc.* 45,733
6,560 Profit Recovery Group International* 38,704
9,705 Rent-Way, Inc.* 45,128
2,503 Roto Rooter, Inc. 95,590
3,350 Watson Wyatt & Co. Holdings* 77,653
----------
$ 373,260
----------
EMPLOYMENT SERVICES - 0.9%
6,461 Hall, Kinion & Associates, Inc.* $ 17,703
4,045 Korn/Ferry International* 32,764
1,360 Right Management Consultants, Inc.* 17,204
----------
$ 67,671
----------
TOTAL COMMERCIAL SERVICES & SUPPLIES $ 521,190
----------
TRANSPORTATION - 3.9%
MARINE - 1.8%
7,602 Stelmar Shipping Ltd.* $ 127,410
----------
RAILROADS - 1.7%
6,062 Genesee & Wyoming, Inc.* $ 124,210
----------
TRUCKING - 0.4%
1,693 Dollar Thrifty Automotive GP* $ 31,405
----------
TOTAL TRANSPORTATION $ 283,025
----------
AUTOMOBILES & COMPONENTS - 0.9%
AUTO PARTS & EQUIPMENT - 0.9%
3,695 Federal Signal Corp. $ 64,921
----------
TOTAL AUTOMOBILES & COMPONENTS $ 64,921
----------
CONSUMER DURABLES & APPAREL - 2.3%
APPAREL, ACCESSORIES & LUXURY GOODS - 0.5%
6,868 Charming Shoppes, Inc.* $ 34,134
----------
FOOTWEAR - 1.0%
5,291 Maxwell Shoe Co., Inc.* $ 76,190
----------
</Table>
The accompanying notes are an integral part of these financial statements.
4
<Page>
<Table>
<Caption>
SHARES VALUE
HOUSEWARES & SPECIALTIES - 0.6%
745 Department 56, Inc.* $ 11,421
4,265 Oneida Ltd. 28,789
----------
$ 40,210
----------
TEXTILES - 0.2%
2,545 Quaker Fabric Corp. $ 16,797
----------
TOTAL CONSUMER DURABLES & APPAREL $ 167,331
----------
HOTELS, RESTAURANTS & LEISURE - 0.8%
LEISURE FACILITIES - 0.3%
2,505 Bally Total Fitness Holding Corp.* $ 22,620
----------
RESTAURANTS - 0.5%
369 O'Charley's Inc.* $ 7,945
731 Rare Hospitality International, Inc.* 23,889
----------
$ 31,834
----------
TOTAL HOTELS, RESTAURANTS & LEISURE $ 54,454
----------
MEDIA - 2.9%
ADVERTISING - 2.3%
2,666 Equity Marketing, Inc.* $ 39,457
3,619 R.H. Donnelley Corp.* 131,985
----------
$ 171,442
----------
PUBLISHING - 0.6%
3,315 Advanced Marketing Services, Inc. $ 43,095
----------
TOTAL MEDIA $ 214,537
----------
RETAILING - 7.1%
APPAREL RETAIL - 0.7%
2,145 Stage Stores, Inc.* $ 50,408
----------
CATALOG RETAIL - 1.5%
10,650 Insight Enterprises, Inc.* $ 107,139
----------
COMPUTER & ELECTRONICS RETAIL - 0.2%
2,305 Inter-TAN, Inc.* $ 18,901
----------
GENERAL MERCHANDISE STORES - 0.7%
1,840 Blyth Industries, Inc. $ 50,048
----------
SPECIALTY STORES - 4.0%
3,677 Guitar Center, Inc.* $ 106,633
5,007 Hancock Fabrics, Inc. 80,863
3,698 School Specialty, Inc.* 105,245
----------
$ 292,741
----------
TOTAL RETAILING $ 519,237
----------
FOOD & DRUG RETAILING - 1.9%
FOOD RETAIL - 1.6%
2,958 Fresh Del Monte Produce, Inc.* $ 75,991
935 Hain Celestial Group, Inc.* 14,951
2,500 Wild Oats Markets, Inc.* 27,250
----------
$ 118,192
----------
HYPERMARKETS & SUPERCENTERS - 0.3%
1,100 BJ'S Wholesale Club, Inc.* $ 16,566
----------
TOTAL FOOD & DRUG RETAILING $ 134,758
----------
HOUSEHOLD & PERSONAL PRODUCTS - 1.2%
HOUSEHOLD PRODUCTS - 1.1%
7,604 Nu Skin Enterprises, Inc. $ 79,462
----------
PERSONAL PRODUCTS - 0.1%
1,400 Playtex Products, Inc.* $ 8,988
----------
TOTAL HOUSEHOLD & PERSONAL PRODUCTS $ 88,450
----------
HEALTH CARE EQUIPMENT & SUPPLIES - 8.0%
HEALTH CARE DISTRIBUTORS - 1.7%
1,885 Amerigroup Corp.* $ 70,122
3,975 Cross Country Healthcares, Inc.* 52,430
----------
$ 122,552
----------
HEALTH CARE EQUIPMENT - 1.4%
4,110 Haemonetics Corp.* $ 76,857
7,966 Rita Medical Systems, Inc.* 27,881
----------
$ 104,738
----------
HEALTH CARE FACILITIES - 0.6%
650 Sunrise Senior Living, Inc.* $ 14,547
1,233 Triad Hospitals, Inc.* 30,603
----------
$ 45,150
----------
HEALTH CARE SERVICES - 2.3%
3,302 Pediatrix Medical Group, Inc.* $ 117,716
3,550 Quintiles Transnational Corp.* 50,375
----------
$ 168,091
----------
MANAGED HEALTH CARE - 2.0%
2,865 PacifiCare Health Systems* $ 141,330
----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES $ 581,861
----------
PHARMACEUTICALS & BIOTECHNOLOGY - 0.9%
BIOTECHNOLOGY - 0.9%
9,955 Kendle International, Inc.* $ 61,721
----------
TOTAL PHARMACEUTICALS & BIOTECHNOLOGY $ 61,721
----------
BANKS - 3.1%
DIVERSIFIED BANKS - 1.4%
2,580 BankAtlantic Bancorp, Inc. $ 30,676
1,831 Banner Corp. 37,517
1,550 Provident Financial Services, Inc. 29,527
----------
$ 97,720
----------
REGIONAL BANKS - 0.7%
1,130 Irwin Financial Corp. $ 29,267
705 Whitney Holding Corp. 22,539
----------
$ 51,806
----------
</Table>
The accompanying notes are an integral part of these financial statements.
5
<Page>
<Table>
<Caption>
SHARES VALUE
THRIFTS & MORTGAGE FINANCE - 1.0%
2,800 First Niagara Financial Group, Inc.* $ 39,088
1,825 Staten Island Bancorp, Inc. 35,551
----------
$ 74,639
----------
TOTAL BANKS $ 224,165
----------
DIVERSIFIED FINANCIALS - 3.7%
CONSUMER FINANCE - 3.1%
3,550 Advanta Corp. $ 34,932
2,728 Advanta Corp. (Class B) 27,444
2,600 American Capital Strategies 64,844
2,125 IDine Rewards Network* 29,197
9,731 Medallion Financial Corp. 68,214
----------
$ 224,631
----------
SPECIALIZED FINANCE - 0.6%
1,818 Financial Federal Corp.* $ 44,359
----------
TOTAL DIVERSIFIED FINANCIALS $ 268,990
----------
INSURANCE - 3.7%
LIFE & HEALTH INSURANCE - 0.5%
1,956 FBL Financial Group, Inc. $ 39,413
----------
PROPERTY & CASUALTY INSURANCE - 3.2%
1,951 IPC Holdings Ltd. $ 65,358
2,128 Philadelphia Consolidated Holding Corp.* 85,971
1,800 RLI Corp.* 59,220
749 Stewart Information Services Corp.* 20,860
----------
$ 231,409
----------
TOTAL INSURANCE $ 270,822
----------
REAL ESTATE - 6.9%
REAL ESTATE MANAGEMENT & DEVELOPMENT - 1.6%
2,200 American Financial Realty Trust* $ 32,802
7,840 Trizec Properties, Inc. 89,141
----------
$ 121,943
----------
REAL ESTATE INVESTMENT TRUSTS - 5.3%
2,835 Bedford Property Investors, Inc. $ 80,514
1,028 Entertainment Properties Trust 29,555
1,749 Pennsylvania Real Estate
Investment Trust, Inc. 52,383
2,800 Reckson Associates Realty Corp. 58,408
2,746 Universal Health Realty, Inc. 74,142
5,937 Ventas, Inc. 89,946
----------
$ 389,948
----------
TOTAL REAL ESTATE $ 506,891
----------
SOFTWARE & SERVICES - 4.9%
APPLICATION SOFTWARE - 2.3%
9,274 E.Piphany, Inc.* $ 47,390
7,304 SPSS Inc.* 122,269
----------
$ 169,659
----------
DATA PROCESSING & OUTSOURCED SERVICES - 1.1%
3,003 Lightbridge, Inc.* $ 26,306
3,317 Pegusus Systems, Inc.* 53,901
----------
$ 80,207
----------
HOME ENTERTAINMENT SOFTWARE - 0.1%
725 Plato Learning, Inc.* $ 4,169
----------
SYSTEMS SOFTWARE - 1.4%
8,425 Borland Software Corp.* $ 82,312
4,945 WatchGuard Technologies, Inc.* 22,747
----------
$ 105,059
----------
TOTAL SOFTWARE & SERVICES $ 359,094
----------
TECHNOLOGY HARDWARE & DEVELOPMENT - 2.9%
NETWORKING EQUIPMENT - 0.6%
5,690 Computer Network Tech Corp.* $ 46,089
----------
COMMUNICATIONS EQUIPMENT - 1.1%
10,975 Remec, Inc.* $ 76,386
----------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.5%
3,345 LSI Industries, Inc. $ 37,130
----------
ELECTRONIC MANUFACTURING SERVICES - 0.2%
437 Photon Dynamics, Inc.* $ 12,074
----------
TECHNOLOGY DISTRIBUTORS - 0.5%
1,400 Tech Data Corp.* $ 37,394
----------
TOTAL TECHNOLOGY HARDWARE & DEVELOPMENT $ 209,073
----------
SEMICONDUCTORS - 2.5%
SEMICONDUCTOR EQUIPMENT - 1.8%
1,593 Advanced Energy Industries, Inc.* $ 22,700
1,053 ATMI, Inc.* 26,293
3,337 Brooks Automation, Inc.* 37,842
2,520 Photronics, Inc.* 43,974
----------
$ 130,809
----------
SEMICONDUCTORS - 0.7%
4,995 HI/FN Inc.* $ 44,505
284 Power Integrations, Inc.* 6,907
----------
$ 51,412
----------
TOTAL SEMICONDUCTORS $ 182,221
----------
TELECOMMUNICATION SERVICES - 0.2%
WIRELESS TELECOMMUNICATION SERVICES - 0.2%
1,028 Boston Communications Group, Inc.* $ 17,610
----------
TOTAL TELECOMMUNICATION SERVICES $ 17,610
----------
</Table>
The accompanying notes are an integral part of these financial statements.
6
<Page>
<Table>
<Caption>
SHARES VALUE
UTILITIES - 6.5%
GAS UTILITIES - 6.5%
2,325 AGL Resources, Inc. $ 59,148
2,920 Cascade Natural Gas Corp. 55,772
7,122 NUI Corp. 110,533
2,655 People's Energy Corp. 113,873
9,174 Southwestern Energy Co.* 137,702
----------
$ 477,028
----------
TOTAL UTILITIES $ 477,028
----------
TOTAL COMMON STOCKS
(Cost $6,314,049) $6,879,859
----------
EXCHANGE TRADED FUNDS - 1.8%
900 iShares Russell 2000 Value Fund $ 115,740
575 Nasdaq-100 Index Traded Stock* 17,221
----------
$ 132,961
----------
TOTAL EXCHANGE TRADED FUNDS
(Cost $118,545) $ 132,961
----------
<Caption>
PRINCIPAL
AMOUNT
TEMPORARY CASH INVESTMENT - 3.9%
SECURITY LENDING COLLATERAL - 3.9%
$ 286,331 Securities Lending Investment Fund, 1.21% $ 286,331
----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $286,331) $ 286,331
----------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $6,718,925) $7,299,151
==========
</Table>
* Non-income producing security.
The accompanying notes are an integral part of these financial statements.
7
<Page>
PIONEER SMALL CAP VALUE VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
5/1/03
TO
6/30/03
CLASS II (a) (UNAUDITED)
Net asset value, beginning of period $ 9.11
-------
Increase (decrease) from investment operations:
Net investment income
Net realized and unrealized gain (loss) on investments $ 0.01
and foreign currency transactions 1.23
-------
Net increase (decrease) from investment operations $ 1.24
Distributions to shareowners:
Net investment income -
Net realized gain -
-------
Net increase (decrease) in net asset value $ 1.24
-------
Net asset value, end of period $ 10.35
=======
Total return* 12.13%
Ratio of net expenses to average net assets+ 1.58%**
Ratio of net investment income to average net assets+ 0.73%**
Portfolio turnover rate 151%**
Net assets, end of period (in thousands) $ 76
Ratios with no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.45%**
Net investment income (loss) (0.14)%**
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 1.58%**
Net investment income 0.73%**
</Table>
(a) Class II shares were first publicly offered May 1, 2003.
* 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.
8
<Page>
PIONEER SMALL CAP VALUE VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
BALANCE SHEET 6/30/03 (UNAUDITED)
<Table>
ASSETS:
Investment in securities, at value (including securities loaned of 269,768) (cost $6,718,925) $ 7,299,151
Cash 937,579
Cash held as collateral for futures contracts -
Foreign currencies, at value
Receivables -
Investment securities sold 44,880
Fund shares sold 35,160
Variation margin -
Dividends, interest and foreign taxes withheld 9,069
Forward foreign currency settlement contracts, net -
Forward foreign currency portfolio hedge contracts, open-net -
Due from Pioneer Investment Management, Inc. 417
Other -
-----------
Total assets $ 8,326,673
-----------
LIABILITIES:
Payables -
Investment securities purchased $ -
Fund shares repurchased 9,512
Dividends -
Upon return for securities loaned 286,331
Variation margin -
Forward foreign currency settlement contracts, net -
Forward foreign currency portfolio hedge contracts, -
Due to bank -
Due to affiliates 5,381
Accrued expenses 23,939
Other - -
-----------
Total liabilities $ 325,163
-----------
NET ASSETS:
Paid-in capital $ 8,550,135
Accumulated net investment income (loss) 5,607
Accumulated undistributed net realized gain (loss) (1,134,458)
Net unrealized gain (loss) on:
Investments 580,226
Futures contracts -
Forward foreign currency contracts and other assets and liabilities denominated in foreign currencies -
-----------
Total net assets $ 8,001,510
-----------
NET ASSET VALUE PER SHARE:
CLASS I:
(Unlimited number of shares authorized)
Net assets $ 7,925,270
Shares outstanding 764,834
-----------
Net asset value per share $ 10.36
CLASS II:
(Unlimited number of shares authorized)
Net assets $ 76,240
Shares outstanding 7,364
-----------
Net asset value per share $ 10.35
</Table>
The accompanying notes are an integral part of these financial statements.
9
<Page>
PIONEER SMALL CAP VALUE VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
STATEMENT OF OPERATIONS (UNAUDITED)
<Table>
<Caption>
SIX MONTHS
ENDED
6/30/03
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $19) $ 46,457
Interest (net of foreign taxes withheld of $0) 2,818
Income on securities loaned, net 470
Other -
-----------
Total investment income $ 49,745
-----------
EXPENSES:
Management fees $ 26,513
Transfer agent fees 724
Distribution fees (Class II) 14
Administrative fees 18,632
Custodian fees 13,588
Professional fees 12,183
Printing 14,529
Fees and expenses of nonaffiliated trustees 361
Miscellaneous 4,666
-----------
Total expenses $ 91,210
Less management fees waived and expenses assumed by Pioneer Investment Management, Inc. (47,071)
Less fees paid indirectly -
-----------
Net expenses $ 44,139
-----------
Net investment income (loss) $ 5,606
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FUTURES CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $ (433,779)
Futures contracts 4,001
Forward foreign currency contracts and other assets and liabilities denominated in foreign currencies -
-----------
$ (429,778)
-----------
Change in net unrealized gain or loss from:
Investments $ 1,327,215
Futures contracts 4,882
Forward foreign currency contracts and other assets and liabilities denominated in foreign currencies
-----------
$ 1,332,097
-----------
Net gain (loss) on investments, futures contracts and foreign currency transactions $ 902,319
===========
Net increase (decrease) in net assets resulting from operations $ 907,925
===========
</Table>
The accompanying notes are an integral part of these financial statements.
10
<Page>
PIONEER SMALL CAP VALUE VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
SIX MONTHS
ENDED YEAR
6/30/03 ENDED
(UNAUDITED) 12/31/02
FROM OPERATIONS:
Net investment income (loss) $ 5,606 $ (2,200)
Net realized gain (loss) on investments (429,778) (704,976)
Change in net unrealized gain or loss on investments, futures contracts and
foreign currency transactions 1,332,097 (768,908)
------------- --------------
Net increase (decrease) in net assets resulting from operations $ 907,925 $ (1,476,084)
------------- --------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income
Class I $ - $ (188)
Class II - -
Net realized gain
Class I - (62)
Class II - -
Tax return of capital
Class I - -
Class II - -
------------- --------------
Total distributions to shareowners $ - $ (250)
------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 14,800,238 $ 11,382,894
Reinvestment of distributions - 247
Cost of shares repurchased (14,309,864) (3,807,810)
------------- --------------
Net increase (decrease) in net assets resulting from fund share transactions $ 490,374 $ 7,575,331
------------- --------------
Net increase (decrease) in net assets $ 1,398,299 $ 6,098,997
------------- --------------
NET ASSETS:
Beginning of period $ 6,603,211 $ 504,214
------------- --------------
End of period $ 8,001,510 $ 6,603,211
============= ==============
Accumulated undistributed/(distributions in excess of) net investment income (loss) $ 5,607 $ 1
============= ==============
</Table>
The accompanying notes are an integral part of these financial statements.
11
<Page>
PIONEER SMALL CAP VALUE 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
funding variable annuity or variable life insurance contracts, and may also be
purchased by qualified pension and retirement plans.
The investment objective of Small Cap Value 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 years. 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.
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.
Temporary cash investments are valued at amortized cost.
Gains and losses from sales on investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
Small-capitalization stocks, while offering the potential for higher returns,
may be subject to greater short-term price fluctuations than securities of
larger companies.
B. FUTURES CONTRACTS
The Portfolio 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 Portfolio is
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 Portfolio, depending on the daily fluctuation in the value of
the contracts, and are recorded by the Portfolio as unrealized gains or
losses. When the contract is closed, the Portfolio realizes a gain or loss
equal to the difference between the opening and closing value of the
12
<Page>
contract. The use of futures contracts involves, to varying degrees, elements
of market risk which may exceed the amounts recognized by the Portfolio.
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, the portfolio had no open
futures 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 (See Note 8).
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, Small Cap Value VCT Portfolio had a capital loss
carryforward of $508,261, which will expire in 2010 if not utilized.
The Portfolio elected to defer $79,212 in capital losses recognized between
November 1, 2002 and December 31, 2002 to its fiscal year ending
December 31, 2003.
13
<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
SMALL CAP VALUE
VCT PORTFOLIO
2002
- -----------------------------------------------------------
DISTRIBUTIONS PAID FROM:
Ordinary Income $ 188
Long- Term capital gain 62
----------
$ 250
Return of Capital -
----------
Total distributions $ 250
----------
DISTRIBUTABLE EARNINGS
(ACCUMULATED LOSSES):
Undistributed ordinary income $ -
Undistributed long-term gain -
Unrealized appreciation/(depreciation) (864,578)
----------
Total $ (864,578)
==========
</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. SECURITY 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 year 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 0.75% of the Portfolios' average daily net assets.
PIM has agreed not to impose all or portion of its management fee and to assume
other operating expenses of the Trust to the extent necessary to limit Class I
expenses to 1.25% of the average daily net assets attributable to Class I
shares; the portion of the Trust-wide expenses attributable to Class II shares
will be reduced only to the extent that such expenses are reduced for Class I
shares.
In addition, under the management and administration agreement, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Portfolio. At June 30, 2003, $2,971 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 $2,396 in transfer agent fees payable to PIMSS at June 30,
2003.
14
<Page>
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 $14
payable to PFD at June 30, 2003.
5. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION
At June 30, 2003, the Portfolio's aggregate unrealized appreciation and
depreciation based on cost for federal income tax purposes was as follows:
<Table>
<Caption>
NET
GROSS GROSS APPRECIATION/
TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------------------------
Small Cap Value Portfolio $ 6,841,013 $ 639,783 $ (181,645) $ 458,138
</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 $4,801,013 and 4,580,487, 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
- -----------------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE PORTFOLIO
CLASS I:
Shares sold 1,406,109 $ 14,720,476 1,077,831 $ 11,383,141
Reinvestment of distributions - - 23 -
Shares repurchased (1,357,054) (14,303,755) (408,459) (3,807,810)
----------------------------------------------------------------------------------
Net increase (decrease) 49,055 $ 416,721 669,395 $ 7,575,081
==================================================================================
CLASS II:
Shares sold 7,962 $ 79,762 - $ -
Reinvestment of distributions - - - -
Shares repurchased (598) (6,109) - -
----------------------------------------------------------------------------------
Net increase 7,364 $ 73,653 - $ -
==================================================================================
</Table>
8. FORWARD FOREIGN CURRENCY CONTRACTS
At June 30, 2003, certain Portfolios had entered into various contracts that
obligate the Portfolios to deliver currencies at specified future dates. At the
maturity of a contract, the Portfolios must make delivery of the foreign
currency. Alternatively, prior to the settlement date of a portfolio hedge, the
Portfolio may close out such contracts by entering into an offsetting hedge
contract. As of June 30, 2003, the Portfolio had no open portfolio hedges or
outstanding forward currency settlement contracts.
15
<Page>
THIS PAGE FOR YOUR NOTES.
16
<Page>
THIS PAGE FOR YOUR NOTES.
17
<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.
14054-00-0803
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 Small Cap Value VCT Portfolio Class II 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.