EXPENSE LIMIT AND REIMBURSEMENT AGREEMENT

                                 EXPENSE LIMIT
                                      AND
                            REIMBURSEMENT AGREEMENT

Expense Limit and  Reimbursement  Agreement  made as of April 15, 1999,  between
Pioneer Investment Management, Inc. and Pioneer Strategic Income Fund.

Whereas PIM wishes to reduce the expenses of the Fund until the Fund  achieves a
certain level of assets; and

Whereas the Fund wishes to have PIM enter into such an agreement and is prepared
to repay such expenses if the Fund  subsequently  achieves a sufficient level of
asset;

Now therefor the parties agree as follows:

1) PIM  agrees  to reduce  its fees or to  reimburse  the Fund for its  ordinary
operating  expenses  in order that the total  expenses  of the Fund  (other than
extraordinary expenses, such as litigation) with respect to Class A shares do 
not exceed 1.50% per annum of average daily net assets  attributable  to Class 
A shares. PIM also agrees to reduce the portion the Fund's expenses  
attributable to Class B, Class C and Class Y shares to the extent such 
expenses are reduced for Class A shares.

2) PIM may  discontinue  such  expense  limitation  at any time by notice to the
Board of Trustees  of the Fund.  Such  limitation  will  terminate  without any
action by PIM in the event  that the net  assets of the Fund are $75  million or
more.

3) PIM shall  keep a record of the amount of  expenses  for each Class of shares
that it waived or reduced pursuant to Section 1 hereof ("Prior Expenses"). If at
any future date the total  expenses of the Fund  attributable  to Class A shares
are less than 1.50% of the Fund's  average daily net assets,  PIM shall be 
entitled to be reimbursed for such Prior Expenses  attributable to Class A, 
provided that such  reimbursement  does not cause the Fund's total  expenses to 
exceed 1.50%. PIM shall also be entitled to  reimbursement  of the  
corresponding  Prior  Expenses attributable  to  Class B,  Class C and  Class Y
shares.  If the  Fund's  total expenses  subsequently  exceed 1.50%, the  
reimbursement of Prior Expenses shall be suspended  and,  if still in  effect, 
the  limitations  in  Section  1 shall be applied.

4) It is not  intended by PIM or the Fund that the  reimbursement  agreement  in
Section 3 is  considered  an  obligation  of the Fund unless and until the total
expenses of the Fund  attributable to Class A shares are less than 1.50% of 
average daily net assets.  PIM  understands  that the Fund total  expenses  may
never be reduced to such level and there is no assurance that the Prior 
Expenses shall be reimbursed.  In  addition,  the Fund  shall  have the  right 
to  terminate  this Agreement,  including its obligation to reimburse  Prior  
Expenses,  at any time upon notice to PIM.

5) This Agreement shall be governed by the laws of the State of Delaware.






In witness  whereof,  the parties hereto have caused this Agreement to be signed
as of the 15th day of April 1999.


PIONEER STRATEGIC                             PIONEER INVESTMENT
INCOME FUND                                   MANAGEMENT, INC.


BY:                                           BY:









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