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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 High Yield 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 HIGH YIELD VCT PORTFOLIO -- CLASS I SHARES
SEMIANNUAL REPORT
JUNE 30, 2003
<Page>
PIONEER VARIABLE CONTRACTS TRUST
TABLE OF CONTENTS
<Table>
Pioneer High Yield VCT Portfolio
Portfolio and Performance Update 2
Portfolio Management Discussion 3
Schedule of Investments 4
Financial Statements 9
Notes to Financial Statements 13
</Table>
<Page>
PIONEER HIGH YIELD VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
PORTFOLIO AND PERFORMANCE UPDATE 6/30/03
[CHART]
PORTFOLIO DIVERSIFICATION
(As a percentage of total investment in securities)
<Table>
Convertible Corporate Bonds 50.6%
Corporate Bonds 43.2%
Convertible Preferred Stocks 3.3%
Temporary Cash Investments 2.9%
</Table>
[CHART]
MATURITY DISTRIBUTION
(Effective life as a percentage of total debt holdings)
<Table>
0-1 years 2.9%
1-3 years 16.9%
3-4 years 27.3%
4-6 years 38.9%
6-8 years 8.1%
8+ years 5.9%
</Table>
FIVE LARGEST HOLDINGS
(As a percentage of total debt holdings)
<Table>
1. IVAX Corp., 4.5%, 5/15/08 3.45%
2. Freeport-McMoRan Copper & Gold, Inc., 8.25%, 1/31/06 2.84
3. Affymetrix Inc., 4.75%, 2/15/07 2.57
4. Connexant Systems Inc., 4.0%, 2/1/07 2.55
5. Invitrogen Corp., 2.25%, 12/15/06 2.30
</Table>
Holdings will vary for other periods.
PRICES AND DISTRIBUTIONS
<Table>
<Caption>
6/30/03 12/31/02
Net Asset Value per Share $ 10.80 $ 9.27
</Table>
<Table>
<Caption>
DISTRIBUTIONS PER SHARE SHORT-TERM LONG-TERM
(1/1/03 - 6/30/03) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
$ 0.40298 $ - $ -
</Table>
PERFORMANCE OF A $10,000 INVESTMENT
The following chart shows the change in value of an investment made in PIONEER
HIGH YIELD VCT PORTFOLIO at net asset value, compared to that of Merrill Lynch
(ML) High Yield Master II Index and of the ML Index of Convertible Bonds
(Speculative Quality). Portfolio returns are based on net asset value and do not
reflect any applicable insurance fees or surrender charges.
[CHART]
<Table>
<Caption>
PIONEER HIGH YIELD VCT ML HIGH YIELD ML INDEX OF CONVERTIBLE
PORTFOLIO* MASTER II INDEX+ BONDS (SPECULATIVE QUALITY)+
5/31/2000 $ 10,000 $ 10,000 $ 10,000
6/30/2000 $ 10,623 $ 9,770 $ 8,424
6/30/2001 $ 12,387 $ 10,207 $ 7,882
6/30/2002 $ 12,211 $ 10,013 $ 7,744
6/30/2003 $ 14,804 $ 11,803 $ 9,201
</Table>
+ Index comparisons begin on 4/30/00. The ML High Yield Master II Index is a
broad-based measure of the performance of the non-investment grade U.S.
domestic bond market. The ML Index of Convertible Bonds (Speculative Quality)
is a market-capitalization weighted index including mandatory and
non-mandatory domestic corporate convertible securities. Index returns assume
reinvestment of dividends and, unlike Portfolio returns, do not reflect any
fees, expenses or sales charges. You cannot invest directly in any Index.
AVERAGE ANNUAL TOTAL RETURNS
(As of June 30, 2003)
NET ASSET VALUE*
<Table>
Life-of-Class 12.50%
(5/1/00)
1 Year 18.44%
</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 HIGH YIELD VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
PORTFOLIO MANAGEMENT DISCUSSION 6/30/03
High-yield bonds profited from a vibrant rally during the six months ended
June 30, 2003. In the following interview, manager Margaret Patel outlines the
strategy that helped the Portfolio outperform the high-yield market during the
six-month period.
Q: HOW DID THE PORTFOLIO PERFORM?
A: During the six months ended June 30, 2003, the Portfolio had a total return
based on net asset value of 21.23% for the Portfolio's Class I shares. To
compare, the Merrill Lynch High Yield Master II Index returned 17.88%.
Q: WHAT WAS THE ENVIRONMENT LIKE FOR THE HIGH-YIELD MARKET DURING THE PAST SIX
MONTHS?
A: High-yield bonds enjoyed a strong rally, reflecting a substantial decline in
the default rate and sustained, albeit sluggish, economic growth. High-yield
bonds significantly outperformed other segments of the bond market and
equities as well, rebounding from oversold price levels. Investors became
attracted to junk bonds against a backdrop of modest economic growth and
historically low interest rates. Yields offered by Treasuries and other
higher-quality bond sectors were very low, leading many in the markets to
look for opportunities among beaten down high-yield bonds.
Q: WHAT FACTORS HELPED THE PORTFOLIO OUTPERFORM THE MERRILL LYNCH HIGH YIELD
MASTER II INDEX.
A: The main factor was the strong performance of a number of the Portfolio's
investments in convertible securities, which are not part of the Merrill
Lynch Index. Both the bond and the stock markets heavily influence these
securities. Many of the Portfolio's convertible positions rose in concert
with the high-yield bond market, with the rising prices of their underlying
equities helping to advance their prices as well.
Q: WHAT WAS YOUR STRATEGY DURING THE PERIOD?
A: It was unchanged. We continued to focus on companies with business positions
and liquid resources strong enough to survive in a period of limited
economic growth. We also looked to invest in companies that were ready to
benefit from the accelerating economic growth that we expect should occur
during the second half of 2003. To that end, we added investments in
economically sensitive sectors such as basic materials, non-ferrous metals,
chemicals, paper and forest products, and packaging. We also maintained a
significant allocation to the technology sector, as well as to health care.
The steady-growth quality of the Portfolio's health care investments - a
sector that we favor due to its positive demographic trends - worked to
balance the Portfolio with the economic sensitivity found in other parts.
Q: DID YOU MAINTAIN A SPECIAL FOCUS ON CONVERTIBLE SECURITIES?
A: Yes, they are still an important tool for us. Convertible securities are
bonds that are exchangeable for a set number of shares of common stock at a
certain price. When we invest in convertible securities, we try to locate
those that are selling at discounted prices and offering high yields. Our
aim is to invest in convertible securities issued by companies in industries
where generic high-yield bonds are not in strong supply, especially smaller
companies within rapidly growing industries. Discounted convertible
securities are attractive because their prices can appreciate more than
regular bonds if the underlying value of the company's stock rises. At the
same time, holders of convertible bonds can earn the same attractive yields
as those found in the high-yield market. Technology and health care are two
sectors where the Portfolio is heavily invested in convertible securities.
Q: WHICH INVESTMENTS PROVED TO BE SOME OF THE TOP PERFORMERS DURING THE FISCAL
YEAR? WHICH DISAPPOINTED?
A: In such a strong period, many of the Portfolio's holdings enjoyed
particularly healthy gains, and very few lost value. Biotechnology holdings
such as Imclone and Ligand Pharmaceuticals benefited from a change in
investor sentiment brought on by well-publicized drug discoveries and an
expectation that the Food and Drug Administration would speed up its
approval process. Alpharma and IVAX, two generic pharmaceutical
manufacturers, posted improved operating results. Technology was very
strong, with the semiconductor and associated industries showing marked
improvement, reflecting improving demand. Semiconductor manufacturer
Conexant Systems was one Portfolio holding that was part of this trend. In
lodging, Meristar Hospitality - which owns and operates upscale,
full-service hotels - benefited from an expected turnaround in the travel
market. Within basic materials, Freeport-MacMoRan rose in response to
increasing copper prices. On the down side, our very small stake in DDI, a
specialized computer equipment manufacturer, declined due to reduced demand,
and we sold the position. PolyOne, a chemical firm, rose but underperformed
the market as a whole due to pricing pressures.
Q: WHAT IS YOUR OUTLOOK?
A: We believe it is likely that the economy will continue to grow, with a
modest acceleration over the balance of the year and into 2004. With a
stronger economy and a continued, gradual decline in default rates, we think
that high-yield bonds should provide attractive yields relative to
alternatives in more conservative areas of the bond market.
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 invests in high-yield bonds, which may be subject to greater price
fluctuations than investment-grade bonds.
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 HIGH YIELD VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
SCHEDULE OF INVESTMENTS 6/30/03 (UNAUDITED)
<Table>
<Caption>
PRINCIPAL S&P/MOODY'S
AMOUNT RATINGS VALUE
CONVERTIBLE PREFERRED STOCKS - 3.3%
CAPITAL GOODS - 2.3%
CONSTRUCTION & FARM MACHINERY & HIGHWAY TRUCKS - 2.3%
$ 25,000 B+/Ba2 Cummins Capital Trust I, 7.0%, 6/15/31 $ 1,325,000
-----------
TOTAL AUTOMOBILE & COMPONENTS $ 1,325,000
-----------
DIVERSIFIED FINANCIALS - 1.0%
15,000 B/B2 Nuevo Energy, 5.75%, 12/15/26 $ 562,500
-----------
TOTAL DIVERSIFIED FINANCIALS $ 562,500
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $1,705,317) $ 1,887,500
-----------
CONVERTIBLE CORPORATE BONDS - 50.6%
ENERGY - 1.4%
OIL & GAS DRILLING - 0.6%
$ 300,000 BB/Ba2 Pride International Inc., 3.25%, 5/1/33 (144A) $ 328,500
-----------
OIL & GAS EXPLORATION & PRODUCTION - 0.8%
500,000 A+/A1 Schlumberg Ltd., 2.125%, 6/1/23 $ 481,875
-----------
TOTAL ENERGY $ 810,375
-----------
MATERIALS - 3.9%
DIVERSIFIED METALS & MINING - 3.0%
900,000 BB+/Ba1 Freeport McMoRan Copper & Gold, Inc., 8.25%, 1/31/06 $ 1,598,625
100,000 B-/NR Inco Ltd., 3.5%, 3/14/52 104,000
-----------
$ 1,702,625
-----------
SPECIALTY CHEMICALS - 0.9%
1,000,000 BBB/Baa3 RPM International Inc., 1.389%, 5/13/33 (144A) $ 526,250
-----------
TOTAL MATERIALS $ 2,228,875
-----------
CAPITAL GOODS - 5.6%
AEROSPACE & DEFENSE - 0.7%
400,000 NR/NR EDO Corp., 5.25%, 4/15/07 $ 402,000
-----------
ELETRICAL COMPONENTS & EQUIPMENT - 2.0%
1,300,000 B+/Ba3 SCI Systems Inc., 3.0%, 3/15/07 $ 1,140,750
-----------
INDUSTRIAL CONGLOMERATES - 2.0%
1,100,000 BB+/Ba2 Corning Inc., 3.5%, 11/1/08 $ 1,181,125
-----------
INDUSTRIAL MACHINERY - 0.9%
500,000 B/NR Lennox International, 6.25%, 6/1/09 $ 543,750
-----------
TOTAL CAPITAL GOODS $ 3,267,625
-----------
COMMERCIAL SERVICES & SUPPLIES - 1.8%
DATA PROCESSING SERVICES - 1.8%
1,000,000 NR/NR Checkfree Holdings Corp., 6.5%, 12/1/06 $ 1,017,500
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES $ 1,017,500
-----------
HEALTH CARE EQUIPMENT & SERVICES - 0.7%
400,000 B-/B3 Community Health Systems, 4.25%, 10/15/08 $ 399,500
-----------
TOTAL HEALTH CARE EQUIPMENT & SERVICES $ 399,500
-----------
</Table>
The accompanying notes are an integral part of these financial statements.
4
<Page>
<Table>
<Caption>
PRINCIPAL S&P/MOODY'S
AMOUNT RATINGS VALUE
PHARMACEUTICALS & BIOTECHNOLOGY - 19.5%
BIOTECHNOLOGY - 9.7%
$1,600,000 NR/NR Affymetrix Inc., 4.75%, 2/15/07 $ 1,446,000
500,000 NR/NR Affymetrix Inc., 5.0%, 10/1/06 497,500
700,000 NR/NR CV Therapeutics, 4.75%, 3/7/07 661,500
900,000 NR/NR Enzon Inc., 4.5%, 7/1/08 738,000
400,000 B-/NR FEI Co., 5.5%, 8/15/08 397,500
700,000 CCC/NR Human Genome Sciences, 3.75%, 3/15/07 577,500
1,400,000 NR/NR Invitrogen Corp., 2.25%, 12/15/06 1,295,000
-----------
$ 5,613,000
-----------
PHARMACEUTICALS - 9.8%
100,000 B+/B3 Alpharma Inc., 5.75%, 4/1/05 $ 104,125
1,100,000 B/Caal Alpharma Inc., 3.0%, 6/1/06 1,285,625
300,000 NR/NR Cubist Pharmaceuticals, 5.5%, 11/1/08 225,000
2,000,000 NR/NR Ivax Corp., 4.5%, 5/15/08 1,940,000
300,000 NR/NR Ligand Pharmaceuticals, 6.0%, 11/16/07 690,750
1,150,000 CCC+/NR Sepracor Inc., 5.0%, 2/15/07 1,014,875
500,000 NR/NR Vertex Pharmaceutical Inc., 5.0%, 9/19/07 418,125
-----------
$ 5,678,500
-----------
TOTAL PHARMACEUTICALS & BIOTECHNOLOGY $11,291,500
-----------
INSURANCE - 0.3%
PROPERTY & CASUALTY INSURANCE - 0.3%
200,000 BB/Baa3 Ohio Casualty Corp., 5.0%, 3/19/22 $ 200,750
-----------
TOTAL INSURANCE $ 200,750
-----------
SOFTWARE & SERVICES - 1.5%
APPLICATION SOFTWARE - 1.5%
200,000 NR/NR Mentor Graphics, 6.875%, 6/15/07 $ 221,000
670,000 NR/NR Mercury Interactive Corp., 0.0%, 5/1/08 (144A) 667,488
-----------
TOTAL SOFTWARE & SERVICES $ 888,488
-----------
TECHNOLOGY HARDWARE & EQUIPMENT - 15.9%
COMMUNICATIONS EQUIPMENT - 1.7%
1,000,000 B-/NR Adaptec Inc., 3.0%, 3/5/07 (144A) $ 962,500
-----------
COMPUTER STORAGE & PERIPHERALS - 2.6%
200,000 NR/NR Eletronics For Imaging, 1.5%, 6/1/23 $ 206,250
700,000 NR/B2 Maxtor Corp., 6.8%, 4/30/10 (144A) 805,000
500,000 B+/B2 Quantum Corp., 7.0%, 8/1/04 503,750
-----------
$ 1,515,000
-----------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.3%
300,000 NR/NR Flir Systems, 3.0%, 6/1/23 (144A) $ 304,500
500,000 NR/NR Veeco Intruments, 4.125%, 12/21/08 457,500
-----------
$ 762,000
-----------
SEMICONDUCTOR EQUIPMENT - 4.9%
700,000 B-/NR Advanced Energy Industries, Inc., 5.25%, 11/15/06 $ 630,000
200,000 NR/NR Axcelis Technologies, 4.25%, 1/15/07 177,250
700,000 NR/NR Brooks Automation, Inc., 4.75%, 6/1/08 591,500
200,000 B-/NR Cymer Inc., 3.5%, 2/15/09 201,500
1,900,000 NR/NR Emcore Corp., 5.0%, 5/15/06 1,230,250
-----------
$ 2,830,500
-----------
</Table>
The accompanying notes are an integral part of these financial statements.
5
<Page>
<Table>
<Caption>
PRINCIPAL S&P/MOODY'S
AMOUNT RATINGS VALUE
SEMICONDUCTORS - 5.4%
$1,825,000 CCC+/NR Conexant Systems Inc., 4.0%, 2/1/07 $ 1,432,625
49,000 B-/B3 Cypress Semiconductor, 3.75%, 7/1/05 49,061
300,000 B/B2 International Rectifier Corp., 4.25%, 7/15/07 292,125
400,000 B-/NR Nvidia Corp., 4.75%, 10/15/07 397,000
1,155,000 NR/NR Triquint Semiconductor, 4.0%, 3/1/07 955,763
-----------
$ 3,126,574
-----------
TOTAL TECHNOLOGY HARDWARE & EQUIPMENT $ 9,196,574
-----------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $26,180,148) $29,301,187
-----------
CORPORATE BONDS - 43.2%
ENERGY - 2.7%
OIL & GAS EQUIPMENT & SERVICES - 0.9%
200,000 BB-/Ba3 Grant Prideco Escrow, 9.0%, 12/15/09 $ 222,000
235,000 BB/Ba2 Key Energy, 6.375%, 5/1/13 238,525
100,000 B+/B3 Transmontaigne, 9.125%, 6/1/10 (144A) 105,375
-----------
$ 565,900
-----------
OIL & GAS EXPLORATION & PRODUCTION - 0.2%
100,000 B/B2 Nuevo Energy Co., 9.375%, 10/1/10 $ 107,750
-----------
OIL & GAS REFINING, MARKETING & TRANSPORTATION - 1.6%
500,000 B/B3 Tesoro Escrow Co., 9.625%, 4/1/12 $ 457,500
500,000 B/B3 Tesoro Petroleum Corp., 9.625%, 11/1/08 462,500
-----------
$ 920,000
-----------
TOTAL ENERGY $ 1,593,650
-----------
MATERIALS - 9.4%
CONSTRUCTION MATERIALS - 1.0%
525,000 BB-/B1 Texas Industries Inc., 10.25%, 6/15/11 $ 548,625
-----------
METAL & GLASS CONTAINERS - 4.8%
586,000 BB/Ba3 Ball Corp., 6.875%, 12/15/12 $ 621,160
2,000,000 B+/B1 Crown Holdings, 9.5%, 3/1/11 (144A) 2,160,000
-----------
$ 2,781,160
-----------
PAPER PACKAGING - 1.0%
600,000 B+/B2 Fibermark Inc., 10.75%, 4/15/11 $ 600,000
-----------
SPECIALTY CHEMICALS - 2.6%
1,000,000 BB+/Ba2 Nova Chemical Corp., 7.4%, 4/1/09 $ 1,065,000
500,000 BB-/B2 Polyone Corp., 8.875%, 5/1/12 445,000
-----------
$ 1,510,000
-----------
TOTAL MATERIALS $ 5,439,785
-----------
CAPITAL GOODS - 7.0%
BUILDING PRODUCTS - 1.5%
850,000 B/B2 NCI Building Systems, Inc., 9.25%, 5/1/09 $ 909,500
-----------
ELECTRICAL COMPONENT & EQUIPMENT - 1.0%
500,000 BB-/Ba2 Sanmina Corp., 10.375%, 1/15/10 $ 557,500
-----------
</Table>
The accompanying notes are an integral part of these financial statements.
6
<Page>
<Table>
<Caption>
PRINCIPAL S&P/MOODY'S
AMOUNT RATINGS VALUE
INDUSTRIAL MACHINERY - 4.5%
$ 700,000 B+/B2 Intermet Corp. 9.75%, 6/15/09 $ 672,000
900,000 B+/B2 JLG Industries Inc., 8.375%, 6/15/12 819,000
500,000 B+/B2 Manitowoc Company Inc., 10.5%, 8/1/12 555,000
517,000 BB+/Ba3 SPX Corp., 7.5%, 1/1/13 559,653
-----------
$ 2,605,653
-----------
TOTAL CAPITAL GOODS $ 4,072,653
-----------
COMMERCIAL SERVICES & SUPPLIES - 2.2%
DIVERSIFIED COMMERCIAL SERVICES - 2.2%
1,400,000 B-/B3 Wesco Distribution Inc., 9.125%, 6/1/08 $ 1,305,500
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES $ 1,305,500
-----------
TRANSPORTATION - 1.0%
AIR FREIGHT & COURIERS - 1.0%
500,000 BB-/Ba3 Petroleum Helicopters, 9.375%, 5/1/09 $ 560,625
-----------
TOTAL TRANSPORTATION $ 560,625
-----------
AUTOMOBILES & COMPONENTS - 1.6%
AUTO PARTS & EQUIPMENT - 1.6%
500,000 BB+/Ba2 Cummins Capital Trust I, 7.125%, 3/1/28 $ 447,500
500,000 B/B1 RJ Tower Corp., 12.0%, 6/1/13 480,000
-----------
TOTAL AUTOMOBILES & COMPONENTS $ 927,500
-----------
CONSUMER DURABLES & APPAREL - 0.8%
HOMEBUILDING - 0.8%
400,000 BB/Ba2 Beazer Homes USA, 8.375%, 4/15/12 $ 443,000
-----------
TOTAL CONSUMER DURABLES & APPAREL $ 443,000
-----------
MEDIA - 3.6%
ADVERTISING - 3.6%
2,000,000 BB+/Baa3 Interpublic Group Inc., 7.875%, 10/15/05 $ 2,110,000
-----------
TOTAL MEDIA $ 2,110,000
-----------
RETAILING - 2.3%
DEPARTMENT STORES - 2.3%
1,500,000 BB+/Ba3 J.C. Penney Co. Inc., 7.625%, 3/1/97 $ 1,342,500
-----------
TOTAL RETAILING $ 1,342,500
-----------
PHARMACEUTICALS & BIOTECHNOLOGY - 0.4%
PHARMACEUTICALS - 0.4%
204,000 B/Caa1 Alpharma Inc., 8.625%, 5/1/11 (144A) $ 214,200
-----------
TOTAL PHARMACEUTICALS & BIOTECHNOLOGY $ 214,200
-----------
REAL ESTATE - 8.6%
REAL ESTATE MANAGEMENT & DEVELOPMENT - 1.0%
510,000 B+/Ba3 LNR Property Corp., 5.5%, 3/1/23 $ 578,213
-----------
REAL ESTATE INVESTMENT TRUSTS - 7.6%
750,000 B-/B3 BF Saul Real Estate Investment Trust, 9.75%, 4/1/08 $ 750,000
1,300,000 B-/Ba3 Crescent Real Estate, 9.25%, 4/15/09 1,401,790
750,000 BB-/Ba3 Forest City Enterprises, 7.625%, 6/1/15 786,506
1,500,000 B-/B2 Meristar Hospitality, 9.12%, 1/15/11 1,470,000
-----------
$ 4,408,296
-----------
TOTAL REAL ESTATE $ 4,986,509
-----------
</Table>
The accompanying notes are an integral part of these financial statements.
7
<Page>
<Table>
<Caption>
PRINCIPAL S&P/MOODY'S
AMOUNT RATINGS VALUE
TECHNOLOGY HARDWARE & EQUIPMENT - 3.6%
ELETRONIC EQUIPMENT & INSTRUMENTS - 3.6%
$ 750,000 BBB-/Baa3 Arrow Eletronics Inc., 6.875%, 6/1/18 $ 725,829
300,000 BB-/Ba2 Ingram Micro Inc., 9.875%, 8/15/08 324,000
1,000,000 BB-/Ba3 L-3 Communication Corp., 6.125%, 7/15/13 1,010,000
-----------
TOTAL TECHNOLOGY HARDWARE & EQUIPMENT $ 2,059,829
-----------
TOTAL CORPORATE BONDS
(Cost $23,860,211) $25,055,751
-----------
TEMPORARY CASH INVESTMENT - 2.9%
SECURITY LENDING COLLATERAL - 2.9%
1,691,338 Securities Lending Investment Fund, 1.21% $ 1,691,338
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,691,338) $ 1,691,338
-----------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $53,437,014) $57,935,776
-----------
</Table>
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 $6,073,813 or 10.3%
of total net assets.
The accompanying notes are an integral part of these financial statements.
8
<Page>
PIONEER HIGH YIELD VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
SIX MONTHS
ENDED 5/1/00
6/30/03 YEAR ENDED YEAR ENDED TO
CLASS I (UNAUDITED) 12/31/02 12/31/01 12/31/00
Net asset value, beginning of period $ 9.27 $ 10.33 $ 9.82 $ 10.00
---------- ---------- ---------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.40 $ 0.92 $ 0.95 $ 0.61
Net realized and unrealized gain (loss) on investments 1.53 (1.06) 0.62 (0.18)
---------- ---------- ---------- --------
Net increase (decrease) from investment operations $ 1.93 $ (0.14) $ 1.57 $ 0.43
Distributions to shareowners:
Net investment income (0.40) (0.92) (0.95) (0.61)
Net realized gain - - (0.11) -
---------- ---------- ---------- --------
Net increase (decrease) in net asset value $ 1.53 $ (1.06) $ 0.51 $ (0.18)
---------- ---------- ---------- --------
Net asset value, end of period $ 10.80 $ 9.27 $ 10.33 $ 9.82
========== ========== ========== ========
Total return* 21.23% (1.42)% 16.60% 4.12%
Ratio of net expenses to average net assets+ 0.94%** 1.02% 1.15% 1.25%**
Ratio of net investment income (loss) to average net assets+ 8.07%** 9.39% 9.15% 9.18%**
Portfolio turnover rate 47%** 42% 36% 33%**
Net assets, end of period (in thousands) $ 56,208 $ 41,111 $ 32,331 $ 6,849
Ratios with no waiver of management fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 0.94%** 1.02% 1.28% 2.35%**
Net investment income (loss) 8.07%** 9.39% 9.02% 8.08%**
</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.
9
<Page>
PIONEER HIGH YIELD VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
BALANCE SHEET 6/30/03 (UNAUDITED)
<Table>
<Caption>
PIONEER
HIGH
YIELD
VCT PORTFOLIO
ASSETS:
Investment in securities, at value, (including securities loaned
of $1,656,195) (cost $53,437,014) $ 57,935,776
Cash 1,555,939
Cash held as collateral for futures contracts -
Foreign currencies, at value
Receivables -
Investment securities sold 51,031
Fund shares sold 151,926
Variation margin -
Dividends, interest and foreign taxes withheld 830,778
Forward foreign currency settlement contracts, net -
Forward foreign currency portfolio hedge contracts, open-net -
Due from Pioneer Investment Management, Inc. -
Other 356
---------------
Total assets $ 60,525,806
---------------
LIABILITIES:
Payables -
Investment securities purchased $ -
Fund shares repurchased 23,163
Dividends 104
Upon return for securities loaned 1,691,338
Variation margin -
Forward foreign currency settlement contracts, net -
Forward foreign currency portfolio hedge contracts, -
Due to bank -
Due to affiliates 36,205
Accrued expenses 28,109
Other -
---------------
Total liabilities $ 1,778,919
---------------
NET ASSETS:
Paid-in capital $ 55,393,940
Accumulated net investment income (loss) (503)
Accumulated undistributed net realized gain (loss) (1,145,312)
Net unrealized gain (loss) on:
Investments 4,498,762
Futures contracts -
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies -
---------------
Total net assets $ 58,746,887
---------------
NET ASSET VALUE PER SHARE:
CLASS I:
(Unlimited number of shares authorized)
Net assets $ 56,208,316
Shares outstanding 5,205,858
===============
Net asset value per share $ 10.80
CLASS II:
(Unlimited number of shares authorized)
Net assets $ 2,538,571
Shares outstanding 235,114
===============
Net asset value per share $ 10.80
</Table>
The accompanying notes are an integral part of these financial statements.
10
<Page>
PIONEER HIGH YIELD VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
STATEMENT OF OPERATIONS (UNAUDITED)
<Table>
<Caption>
PIONEER
HIGH YIELD
VCT PORTFOLIO
SIX MONTHS
ENDED
6/30/03
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $0) $ 97,589
Interest (net of foreign taxes withheld of $0) 2,099,294
Income on securities loaned, net 7,752
Other -
---------------
Total investment income $ 2,204,635
---------------
EXPENSES:
Management fees $ 159,309
Transfer agent fees 496
Distribution fees (Class II) 292
Administrative fees 18,596
Custodian fees 9,744
Professional fees 13,628
Printing 21,783
Fees and expenses of nonaffiliated trustees 487
Miscellaneous 4,985
---------------
Total expenses $ 229,320
Less management fees waived and expenses assumed
by Pioneer Investment Management, Inc. -
Less fees paid indirectly -
---------------
Net expenses $ 229,320
---------------
Net investment income (loss) $ 1,975,315
---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FUTURES CONTRACTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $ (454,133)
Futures contracts -
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies -
---------------
$ (454,133)
---------------
Change in net unrealized gain or loss from:
Investments $ 7,989,826
Futures contracts -
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies -
---------------
$ 7,989,826
---------------
Net gain (loss) on investments, futures contracts
and foreign currency transactions $ 7,535,693
---------------
Net increase (decrease) in net assets resulting
from operations $ 9,511,008
===============
</Table>
The accompanying notes are an integral part of these financial statements.
11
<Page>
PIONEER HIGH YIELD VCT PORTFOLIO PIONEER VARIABLE CONTRACTS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
PIONEER HIGH YIELD
VCT PORTFOLIO
SIX MONTHS
ENDED YEAR
6/30/03 ENDED
(UNAUDITED) 12/31/02
FROM OPERATIONS:
Net investment income (loss) $ 1,975,315 $ 3,533,031
Net realized gain (loss) on investments (454,133) (323,145)
Change in net unrealized gain or loss on
investments, futures contracts and
foreign currency transactions 7,989,826 (3,825,540)
--------------- ---------------
Net increase (decrease) in net assets
resulting from operations $ 9,511,008 $ (615,654)
--------------- ---------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income
Class I $ (1,966,052) $ (3,519,047)
Class II (9,301) (17,625)
Net realized gain
Class I - -
Class II - -
Tax return of capital
Class I - -
Class II - -
--------------- ---------------
Total distributions to shareowners $ (1,975,353) $ (3,536,672)
--------------- ---------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 13,543,875 $ 23,512,319
Reinvestment of distributions 1,955,112 3,490,787
Cost of shares repurchased (5,626,276) (13,871,749)
--------------- ---------------
Net increase (decrease) in net assets
resulting from fund share transactions $ 9,872,711 $ 13,131,357
--------------- ---------------
Net increase (decrease) in net assets $ 17,408,366 $ 8,979,031
--------------- ---------------
NET ASSETS:
Beginning of period $ 41,338,521 $ 32,359,490
--------------- ---------------
End of period $ 58,746,887 $ 41,338,521
=============== ===============
Accumulated undistributed/(distributions
in excess of) net investment income (loss) $ (503) $ (465)
=============== ===============
</Table>
The accompanying notes are an integral part of these financial statements.
12
<Page>
PIONEER HIGH YIELD 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 Value VCT Portfolio (Value Portfolio) (Class II only)
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 High Yield VCT Portfolio (High Yield Portfolio)
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 High Yield Portfolio is to maximize total return
through a combination of income and 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.
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.
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.
The High Yield Portfolio invests in below investment grade (high yield) debt
securities and preferred stocks. These high yield securities may be
convertible into equity securities of the issuer. Debt securities rated
below investment grade are commonly referred to as "junk bonds" and are
considered speculative. These securities involve greater risk of loss, are
subject to greater price volatility, and are less liquid, especially during
years of economic uncertainty or change, than higher rated debt securities.
13
<Page>
B. 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.
C. 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.
D. 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.
In addition to the requirements of the Internal Revenue Code, the Portfolio
may also be required to pay local taxes on the recognition of capital gains
and/or the repatriation of foreign currencies in certain countries. During
the six months ended June 30, 2003, the no such taxes were paid.
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, High Yield VCT Portfolio had a capital loss
carryforward of $631,431, which will expire between 2009 and 2010 if not
utilized.
The Portfolio elected to defer $59,748 in capital losses recognized between
November 1, 2002 and December 31, 2002 to its fiscal year ending December
31, 2003.
14
<Page>
PIONEER HIGH YIELD VCT PORTFOLIO
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
HIGH YIELD
VCT PORTFOLIO
2002
--------------------------------------------------------
DISTRIBUTIONS PAID FROM:
Ordinary Income $ 3,536,672
Long-Term capital gain -
-------------
$ 3,536,672
Return of capital -
-------------
Total distributions $ 3,536,672
-------------
DISTRIBUTABLE EARNINGS
(ACCUMULATED LOSSES):
Undistributed ordinary income $ -
Undistributed long-term gain -
Unrealized appreciation/(depreciation) (3,491,064)
-------------
Total $ (3,491,064)
=============
</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. All
Dividends are paid on a monthly basis. Short-term capital gain
distributions, if any, may be declared with the daily dividends. 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 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 0.65% 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 1.30% 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, $35,182 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 $857 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
$166 payable to PFD at June 30, 2003.
15
<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>
NET
GROSS GROSS APPRECIATION/
TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
- -------------------------------------------------------------------------------------------------
High Yield Portfolio $ 53,437,014 $ 5,090,758 $ (591,996) $ 4,498,762
</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 $18,411,758 and $11,476,102, 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
- -------------------------------------------------------------------------------------------------
HIGH YIELD PORTFOLIO
CLASS I:
Shares sold 1,102,241 $ 11,035,923 2,364,432 $ 23,267,135
Reinvestment of distributions 192,181 1,945,811 358,882 3,473,162
Shares repurchased (521,982) (5,403,685) (1,419,950) (13,834,156)
----------------------------------------------------------------
Net increase 772,440 $ 7,578,049 1,303,364 $ 12,906,141
================================================================
CLASS II:
Shares sold 232,544 $ 2,507,952 24,056 $ 245,184
Reinvestment of distributions 896 9,301 1,833 17,625
Shares repurchased (22,884) (222,591) (4,051) (37,593)
----------------------------------------------------------------
Net increase 210,556 $ 2,294,662 21,838 $ 225,216
================================================================
</Table>
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.
13958-00-0803
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 High Yield 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.