<PAGE>



                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                            ------------------------

                                   FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                 FOR THE THREE MONTHS ENDED March 31, 2002
                          COMMISSION FILE NO. 0-30889

                            ------------------------

                           HARBOR GLOBAL COMPANY LTD.
            (exact name of registrant as specified in its charter)

                            ------------------------

                  BERMUDA                          52-2256071
    (STATE OR OTHER JURISDICTION OF           (I.R.S. EMPLOYER
    INCORPORATION OR ORGANIZATION)             IDENTIFICATION NO.)

        ONE FANEUIL HALL MARKETPLACE
                4TH FLOOR                          02109-1820
           BOSTON, MASSACHUSETTS                   (ZIP CODE)
  (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

                            ------------------------

                                 (617) 878-1600
              (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
                            ------------------------

                                   NO CHANGES
   (Former name, former address and former fiscal year, if changes since last
                                    report)

                            ------------------------

  Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding twelve months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No []

  As of March 31, 2002, the Registrant had 5,649,311 common shares, par value
$.0025 per share, issued and outstanding.

<PAGE>

                        PART I -- FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                           HARBOR GLOBAL COMPANY LTD.

                          CONSOLIDATED BALANCE SHEETS
                (DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)

<TABLE>
<CAPTION>
                                                                                       March 31,           December 31,
                                                                                         2002                  2001
                                                                                     -------------       ---------------
                                                                                      (Unaudited)
<S>                                                                                    <C>                  <C>
ASSETS
Cash and Cash Equivalents...............................................               $  5,757             $  4,660
Restricted Cash.........................................................                  4,364                4,440
Marketable Securities...................................................                 22,319               19,653
Accounts Receivable.....................................................                    810                  469
Other Current Assets....................................................                  1,010                  940
Net Current Assets of Discontinued Operations...........................                  6,824                6,479
                                                                                       --------             --------
Total Current Assets....................................................                 41,084               36,641

Long-Term Restricted Cash and Investments...............................                  5,000                5,000
Polish Venture Capital Investment.......................................                  1,207                1,235
Marketable Securities...................................................                 24,899               18,800
Long-term Investments...................................................                  6,150                5,322
Building................................................................                 23,203               23,370
Other Long-term Assets..................................................                  1,045                1,022
Note Receivable.........................................................                  7,011                9,229
Goodwill................................................................                    953                  953
                                                                                       --------             --------
Total Assets............................................................               $110,552             $101,572
                                                                                       ========             ========

LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts Payable........................................................               $  2,696             $  1,299
Dividend Payable........................................................                  2,464                2,549
Accrued Expenses........................................................                  2,273                2,403
Accrued Fees Payable to Calypso Management..............................                  1,635                2,160
Amount Due to Officer on Compensation Liability.........................                  1,800                1,800
Foreign Taxes Payable...................................................                  3,247                2,162
                                                                                       --------             --------
Total Current Liabilities...............................................                 14,115               12,373

Deferred Taxes..........................................................                  3,130                2,086
Note Payable............................................................                  5,000                5,000
                                                                                       --------             --------
Total Liabilities.......................................................                 22,245               19,459

Minority Interest.......................................................                 28,641               25,480
                                                                                       --------             --------
STOCKHOLDERS' EQUITY

Common shares, par value $.0025 per share; authorized 48,000,000
 shares; 5,649,311 shares issued and outstanding as of March 31, 2002
 and December 31, 2001..................................................                     14                   14
Preferred shares, par value $.01 per share; authorized 1,000,000
 shares; none issued....................................................                     --                   --
Paid-in Capital.........................................................                 62,768               62,768
Accumulated Deficit.....................................................                 (8,448)              (9,453)
Other Comprehensive Income..............................................
   Net Unrealized Gains on Available for Sale Marketable Securities (Net
    Of Deferred Taxes of $3,130 and 2,086 as of March 31, 2002
    December 31, 2001, respectively).....................................                 5,332                3,304
                                                                                       --------             --------
Total Stockholders' Equity..............................................                 59,666               56,633
                                                                                       --------             --------

Total Liabilities and Stockholders' Equity..............................               $110,552             $101,572
                                                                                       ========             ========
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                statements.

                                      2

<PAGE>

                          HARBOR GLOBAL COMPANY LTD.

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                (DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                            Three Months
                                                                               Ended
                                                                              March 31,
                                                                          ------------------

                                                                            2002       2001
                                                                          -------    -------
<S>                                                                        <C>        <C>
Revenues:
  Real Estate Rental Revenue......................................         $1,879     $1,562
  Interest Income.................................................            730      1,133
  Other Income....................................................            341        432
                                                                          -------    -------
          Total Revenues..........................................          2,950      3,127
                                                                          -------    -------

Operating Expenses:
  Salary and Benefit Expenses.....................................           (680)      (763)
  Facility Expenses...............................................           (304)      (325)
  Building and Property Management Expenses.......................           (505)      (584)
  Management Fee Expense..........................................           (730)      (674)
  Other Expenses..................................................         (1,518)    (1,690)
                                                                          -------    -------
          Total Operating Expenses................................         (3,737)    (4,036)
                                                                          -------    -------

          Operating Loss..........................................           (787)      (909)

Other Income (Expense):
  Net Unrealized and Realized Gain (Loss) on Securities...........          3,878        735
  Write-down of Venture Capital Investments.......................             --     (2,853)
                                                                          -------    -------
          Total Other Income (Expense)............................          3,878     (2,118)
                                                                          -------    -------

          Income (Loss) from Continuing Operations before
            Provision for Income Taxes, Minority Interest and
            Equity Loss on Investment.............................          3,091     (3,027)

Provision for Income Taxes........................................         (1,261)       (21)
                                                                          -------    -------
          Income (Loss) from Continuing Operations before
            Minority Interest and Equity Loss on Investment.......          1,830     (3,006)

Minority Interest (Expense) Income................................         (1,247)     2,630
Equity Loss on Venture Capital Investments........................            (28)        --
                                                                          -------    -------

          Net Income (Loss) from Continuing Operations before
            Discontinued Operations...............................            555       (376)

Discontinued Operations:

Net Loss from Operations..........................................             --       (333)
Reduction in Estimated Loss on Disposal..............................         450         --
                                                                          -------    -------

          Net Income (Loss).......................................         $1,005      ($709)
                                                                          =======    =======
Earnings (Loss) Per Share:
Continuing Operations:
  Basic and Diluted Earnings (Loss) Per Share.....................          $0.10     $(0.07)

Discontinued Operations - Basic and Diluted Earnings (Loss) Per
  Share...........................................................           0.08      (0.06)
                                                                          -------    -------
Basic and Diluted Earnings (Loss) Per Share.......................          $0.18      (0.13)

Weighted Average Basic and Diluted Shares Outstanding.............          5,649      5,643
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                statements.

                                      3

<PAGE>

                          HARBOR GLOBAL COMPANY LTD.

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                (DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                    THREE MONTHS ENDED MARCH 31,
                                                                                    ----------------------------
                                                                                        2002                2001
                                                                                    --------            --------
<S>                                                                                 <C>                  <C>
Cash Flows from Operating Activities:
  Net Income (Loss).............................................                    $  1,005             $  (709)
  Net Income (Loss) from Discontinued Operations................                         450                (333)
                                                                                    --------            --------
        Net Income (Loss) from Continuing Operations............                         555                (376)
  Adjustments to Reconcile Net Loss to Net Cash Used in
Operating Activities --
    Depreciation and Amortization...............................                         196                 269
    Unrealized and Realized (Gains) Losses on Venture Capital,
      Marketable Securities, and Long-term Investments, Net.....                       3,667               2,449
    Minority Interest...........................................                      (1,247)             (2,629)
    Non-cash Interest Income on Note Receivable.................                        (282)               (324)
    Interest Earned on Restricted Cash..........................                          (8)                (25)
Changes in Operating Assets and Liabilities --
    Other Current Assets........................................                      (3,077)            (18,073)
    Other Long-term Assets......................................                         (34)              5,173
    Accrued Expenses and Accounts Payable.......................                       1,827              (2,317)
                                                                                    --------            --------
        Total Adjustments and Changes in Operating Assets
          and Liabilities.......................................                      (3,799)            (15,477)
                                                                                    --------            --------

        Net Cash Used in Continuing Operating Activities........                      (3,244)            (15,853)
                                                                                    --------            --------

        Net Cash Provided By (Used In) Discontinued Operations..                         105                (748)
                                                                                    -------             --------

Cash Flows from Investing Activities:
  Purchase of Long-term Investments and Marketable Securities...                      (5,514)             (3,768)
  Proceeds from Sale of Long-term Investments and Marketable
    Securities..................................................                       7,249               1,117
  Net Cash Flow from Other Investing Activities.................                          --                 517
  Proceeds from Payment on Note Receivable......................                       2,500               2,500
                                                                                    --------            --------

        Net Cash Provided by Investing Activities...............                       4,235                 366
                                                                                    --------            --------

Cash Flows from Financing Activities:
  Dividends Paid................................................                         (85)                 --
  Reclassification of Restricted Cash...........................                          85                 370
                                                                                    --------            --------

        Net Cash Provided by Financing Activities...............                          --                 370
                                                                                    --------            --------
Effect of Foreign Currency Exchange Rate Changes on Cash and
   Cash Equivalents.............................................                          --                  (6)
Net Increase (Decrease) in Cash and Cash Equivalents............                       1,097             (15,871)
                                                                                    --------            --------

Cash and Cash Equivalents, Beginning of Period..................                       4,660              23,786
                                                                                    --------            --------

Cash and Cash Equivalents, End of Period........................                    $  5,757            $  7,915
                                                                                    ========            ========
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                statements.

                                      4

<PAGE>

                           HARBOR GLOBAL COMPANY LTD.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)
                                 March 31, 2002

(1) BACKGROUND AND BASIS OF PRESENTATION

BACKGROUND

        Harbor Global Company Ltd., a Bermuda limited duration company ("Harbor
Global" or the "Company"), was formed in May 2000 as a wholly owned subsidiary
of The Pioneer Group, Inc., a Delaware corporation ("Pioneer"), to facilitate
the merger between Pioneer and UniCredito Italiano, S.p.A., an Italian financial
institution ("UniCredito"). As a condition to closing the merger and pursuant to
a Distribution Agreement dated as of October 24, 2000 by and among the Company,
Pioneer and Harbor Global II Ltd. (the "Distribution Agreement"), Pioneer agreed
to transfer certain of its assets to Harbor Global and to distribute all of the
outstanding Harbor Global common shares to its stockholders. Pioneer transferred
to Harbor Global all of the assets required to be transferred pursuant to the
Merger Agreement and the Distribution Agreement and, on October 24, 2000,
Pioneer distributed all of the outstanding common shares of Harbor Global to its
stockholders (the "Spin-off"). Pioneer stockholders received one Harbor Global
common share for every five shares of Pioneer common stock held on that date.

        The Company's assets primarily consist of the following: Russian real
estate management and investment management operations; real estate management
operations; and its other assets and operations ("Other"). Other includes
approximately $20.6 million in cash and marketable securities held directly by
Harbor Global of which $5 million is restricted to satisfy liabilities
associated with Pioneer's former gold mining operations and $1.8 million is
restricted to satisfy a compensation liability payable to Harbor Global's Chief
Executive Officer. Other also includes a non-interest-bearing promissory note
with an original face value of $13.8 million and a balance outstanding at March
31, 2002 of $8.8 million, payable to Pioglobal Goldfields II Limited, a
wholly-owned subsidiary of the Company ("Pioglobal Goldfields II").

        Harbor Global seeks to liquidate its assets in a timely fashion on
economically advantageous terms and continues to operate its assets as going
concern businesses until they are liquidated. Harbor Global's memorandum of
association provides that the liquidation of its assets must be completed upon
the earlier of October 24, 2005, the fifth anniversary of the date of the
Spin-off, or the distribution by Harbor Global of all its assets to its
shareholders. If Harbor Global has not liquidated all of its assets before
October 24, 2005, the Harbor Global board of directors, in its discretion, may
authorize Harbor Global to continue to operate its assets for up to three
additional one year periods.

BASIS OF PRESENTATION

        In the opinion of management, the accompanying financial statements
contain all adjustments necessary to present fairly the financial position as of
March 31, 2002 and the results of operations and cash flows for the three months
ended March 31, 2002 and 2001. Results for interim periods may not be
necessarily indicative of the results to be expected for the year. These interim
financial statements should be read in conjunction with the Company's 2001
Annual Report on Form 10-K for the year ended December 31, 2001 filed with the
Securities and Exchange Commission.

        The consolidated financial statements included herein have been
prepared using the historical cost basis of the assets and liabilities and
historical results of operations related to the Company's businesses.

        Since Harbor Global is a Bermuda limited duration company, the Company
expects that for United States federal income tax purposes it will be taxed as a
partnership and, as a result, all United States federal income tax expenses have
been and will be borne by its shareholders. The income tax provisions and
deferred

                                      5

<PAGE>

taxes included in the accompanying consolidated financial statements relate to
the Company's corporate subsidiaries that are located primarily in Russia.

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, PRINCIPLES OF CONSOLIDATION

CONSOLIDATION

        The preparation of the consolidated financial statements in conformity
with generally accepted accounting principles in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the consolidated financial statements and the reported amounts of
revenues and expenses. Actual results could differ from those estimates. The
most significant estimates with regard to these consolidated financial
statements relate to the valuation of investments of Open Joint-Stock Company
"PIOGLOBAL Investment Fund" and venture capital investments.

POLISH VENTURE CAPITAL INVESTMENT

        The Company reports its approximately 8% limited partnership interest
in the Pioneer Poland Fund on the equity basis of accounting. No market quotes
are available for the venture capital investments. Most of these investments are
valued at fair value, as determined by Pioneer Poland Fund's management. For the
three months ended March 31, 2002, the Company recorded no write-downs on its
investment. For the three months ended March 31, 2001, the carrying value of
investments in the venture capital portfolio was written down by approximately
$2,853,000. At that time, the Company fully consolidated the Pioneer Poland
Fund. Approximately 92% of the write-downs were attributable to minority
shareholders.

RUSSIAN INVESTMENTS

        Russian investments consist of equity securities held in the portfolio
of the PIOGLOBAL Investment Fund. Such securities are classified as
available-for-sale and recorded at fair value pursuant to Statement of Financial
Accounting Standards ("SFAS") No. 115, "Accounting for Certain Investments in
Debt and Equity Securities."

        Management has determined that for certain of these equity securities
there was sufficient liquidity in the Russian market to account for them as
long-term marketable securities based on quoted prices on the Russian Trading
System. Unrealized gains and losses are recorded directly in stockholders'
equity as other comprehensive income. The cost of securities sold is based on
the specific identification method. Realized gains or losses and any
other-than-temporary declines in value are reported in other income and expense.
The Company continues to classify Russian investments that do not meet its
liquidity threshold as long-term investments and carries such investments at
cost with adjustments made for other-than-temporary impairment.

        Equity investments contained in the Russian investment portfolio and
carried at cost aggregated approximately $6.2 million and $5.3 million at March
31, 2002 and December 31, 2001, respectively. Equity investments carried at
quoted market prices aggregated approximately $24.9 million and $18.8 million at
March 31, 2002 and December 31, 2001, respectively.

CONCENTRATION OF RISK

        The Company's operations are generally concentrated in Russia. The
Company performs ongoing evaluations of its subsidiaries and investments and
endeavors to mitigate its exposure in foreign countries. The Company does not
maintain political risk insurance for any of its businesses.

RECENT ACCOUNTING PRONOUNCEMENTS

        The Company adopted SFAS No. 142, "Goodwill and Other Intangible
Assets" effective January 1, 2002. SFAS No. 142 requires that goodwill no longer
be amortized but rather be tested for possible impairment at least annually at

                                      6

<PAGE>

the reporting unit level. For the three months ended March 31, 2001, the Company
recorded approximately $72,000 of amortization. The Company no longer amortizes
goodwill. There was no transitional adjustment resulting from the intangible
asset impairment test.

        The Company adopted SFAS No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets," effective January 1, 2002. The adoption had no
material impact on the financial statements of the Company.

(3) EARNINGS (LOSS) PER SHARE

        Basic and diluted earnings (loss) per share ("EPS") are computed by
dividing reported earnings by weighted average shares outstanding not including
contingently issuable shares. There are currently no potentially dilutive
securities.

(4) NOTE RECEIVABLE

        As part of the Spin-off, Harbor Global succeeded to Pioneer's rights
and obligations relative to Pioneer's earlier sale of its gold mining operations
in Ghana to Ashanti Goldfields Teberebie Limited ("Ashanti"). In connection with
the sale to Ashanti, each of Pioglobal Goldfields II and Pioneer agreed to
indemnify Ashanti for the breach of any representation or warranty of Pioglobal
Goldfields II contained in the purchase agreement for an amount not to exceed
the total purchase price actually paid by Ashanti to Pioglobal Goldfields II
under the purchase agreement. The representations and warranties contained in
the purchase agreement, other than those relating to tax and environmental
issues, survive until June 19, 2002. The tax and environmental representations
and warranties survive until June 19, 2005. Under the Distribution Agreement,
Harbor Global has agreed to reimburse Pioneer for any liability it incurs in
connection with any claim brought by Ashanti for indemnification under the
purchase agreement.

        In this connection, Pioneer contributed to the Company all proceeds
from the sale of its gold mining operation, including $5.0 million in cash, a
$13.8 million non-interest bearing promissory note and the right to receive
payments of up to $5.0 million, contingent upon prevailing gold prices and
productivity. However, Harbor Global agreed that promptly after the fifth
anniversary of the closing of the purchase agreement with Ashanti, it would
return to Pioneer the lesser of $5.0 million or the proceeds received by
Pioglobal Goldfields II from Ashanti under the purchase agreement less any
indemnification claims paid under the purchase agreement. The foregoing
liability is currently recorded as a $5.0 million note payable insomuch as
management believes that this is the most likely settlement amount as of the
balance sheet date. Additionally, $5.0 million has been set aside to satisfy
this liability and is classified as long term restricted cash and investments.
The terms of the promissory note obligate Ashanti to pay the face value over
five years, with principal amounts of between $2.5 million and $3.75 million due
annually.

        As of March 31, 2002, the Company had received $5.0 million from
Ashanti. For the three months ended March 31, 2002 and 2001, the Company
recognized interest income of approximately $282,000 and $324,000, respectively.

(5) COMPREHENSIVE INCOME (LOSS)

        For the three months ended March 31, 2002 and 2001, the Company
reported changes in stockholders' equity and other comprehensive income as
follows:

                                                                2002      2001
                                                               ------    ------
                                                                (In Thousands)
Net Income (Loss)......................................        $1,005     ($709)
Net Unrealized Gains on Long term Marketable Securities
  (Net of deferred taxes of $1,044 and minority
   interest of $1,914 for the three months ended
   March 31, 2002).....................................         2,028        --

                                      7

<PAGE>

                                                               ------   -------
Total Comprehensive Income (Loss)......................        $3,033     ($709)
                                                               ======   =======

(6) RELATED PARTY TRANSACTIONS

        The Company entered into an administration and liquidation agreement
with Calypso Management LLC ("Calypso Management" or the "Manager"), under which
Calypso Management manages the liquidation of the Company and operates the
Company's assets as going concern businesses until they are liquidated. The
principal executive officers of the Company also serve as the principal
executive officers of the Manager. The Manager is owned and operated by the
Company's President and Chief Executive Officer as well as the Company's Chief
Operating Officer and Chief Financial Officer.

        Under the administration and liquidation agreement, the Company pays
expenses of the Manager incurred in connection with its provision of services
and a percentage of the net proceeds realized from the liquidation of its assets
that are ultimately distributed to the Company's shareholders, generally
according to the following schedule:

      - with respect to the first $36 million in net proceeds available for
        distribution, Calypso Management shall receive a payment equal to 10% of
        such net proceeds;

      - with respect to the next $72 million in net proceeds available for
        distribution, Calypso Management shall receive a payment equal to 7.5%
        of such net proceeds; and

      - with respect to any additional net proceeds, Calypso Management shall
        receive a payment equal to 10% of such net proceeds.

        Net proceeds do not include any unexpended portion of the $19.1 million
contributed by Pioneer to Harbor Global at the time of the Spin-Off. However,
pursuant to Amendment 2 dated as of February 1, 2001 to the administration and
liquidation agreement, the Manager is now entitled to share in distributions of
$5.4 million of the unexpended cash contributed by Pioneer. In addition, the
proceeds received by Pioglobal Goldfields II in connection with the sale of its
Ghanaian gold mine to Ashanti are not subject to the preceding schedule.
Instead, Calypso Management will receive only 5% of any Ashanti proceeds
distributed. Any portion of the net proceeds from the liquidation of Harbor
Global assets to which Calypso Management is entitled prior to the second
anniversary of the distribution date will be aggregated and paid to Calypso
Management on the second anniversary of the distribution date. Harbor Global
accrues such management fees at the earlier of (1) the formal declaration by the
Board of Directors of a distribution or (2) the time when a distributable amount
is estimable following the sale or liquidation of an asset.

        For the three months ended March 31, 2002 and 2001, the Company incurred
management fee expenses of approximately $730,000 and $673,000, respectively
related to the reimbursement of expenses. Of this management fee, approximately
$185,000 and $100,000 was outstanding at March 31, 2002 and 2001, respectively.

        In addition, as of March 31, 2002, the Company has outstanding
$1,450,000 as an accrued expense to reflect the amount owed to Calypso
Management and payable on October 24, 2002 in connection with the distribution
paid to shareholders on November 15, 2001.

(7) COMMITMENTS

        On October 16, 1996, Pioglobal Omega, L.L.C. ("Pioglobal Omega"), a
wholly-owned subsidiary of the Company, and the International Finance
Corporation ("IFC"), an unrelated party, entered into a put and call agreement
with respect to the IFC's shares of the stock of Pioglobal First Russia, Inc.
("Pioglobal First Russia", formerly Pioneer First Russia, Inc.), a
majority-owned subsidiary of the Company.

                                      8

<PAGE>

Under this agreement, from October 2000 to October 2004, upon written notice to
Pioglobal Omega, the IFC will have the right to cause Pioglobal Omega to
purchase all of the IFC's shares of Pioglobal First Russia common stock. From
October 2004 to October 2006, upon written notice to the IFC, Pioglobal Omega
will have the right to purchase all of the IFC's shares of Pioglobal First
Russia common stock.

        Under the administration and liquidation agreement, Harbor Global is
obligated to pay a $1,800,000 signing and retention bonus to Stephen G. Kasnet,
President and Chief Executive Officer of Harbor Global, subject to certain
conditions, on October 24, 2002.

(8) DISCONTINUED OPERATIONS

        On February 5, 2002, the Company's Board of Directors approved the
disposition of the Russian timber operations based on a review of proposed sale
offers. On April 22, 2002, Harbor Global's wholly owned subsidiary, Pioneer
Forest, Inc. entered into a definitive agreement for the sale of its Russian
timber business conducted through Closed Joint-Stock Company "Forest-Starma"
("Forest-Starma"). Pioneer Forest agreed to sell its entire interest in
Pioglobal Forest, L.L.C., the sole shareholder of Forest-Starma, to Successful
Union Limited, a British Virgin Islands company, for an aggregate purchase price
of $7.55 million, $5.55 million of which is payable in cash at the closing and
$2.0 million of which is payable by a twelve month promissory note. The Company
expects the transaction to close during the second quarter of 2002.

        Based on a final estimate of the cost of disposition, the Company
recorded a credit of $450,000 in the first quarter of 2002. The Company
previously estimated the loss on disposal of the Russian timber segment to be
approximately $8,300,000.

        Accordingly, the operating results of the discontinued Russian timber
operations segment have been segregated from the results of continuing
operations and are reported separately on the consolidated statement of
operations for all periods presented. The assets and liabilities from the
Russian timber operations segment are aggregated and reported separately on the
consolidated balance sheet for all periods presented as net assets from
discontinued operations. The remaining assets as of March 31, 2002 consist
principally of cash, trade receivables, timber inventory, timber equipment,
buildings and a self-constructed port facility.

        The following is a summary of the results of the discontinued
operations of the Russian timber segment for the three months ended March 31,
2002 and 2001, respectively:

<TABLE>
<CAPTION>
                                                               THREE MONTHS ENDED MARCH 31,
                                                              -----------------------------
                                                                     2002        2001
                                                                   --------    --------
                                                                  (DOLLARS IN THOUSANDS)
<S>                                                                 <C>         <C>
Revenues from Timber Sales..................................        $   415     $   365
                                                                    -------     -------
Net Loss from Operations....................................           (506)       (333)
Previously Accrued Estimate of Operating Losses.............            506          --
Reduction in Estimated Loss on Disposal of Russian Timber
  Operations................................................            450          --
                                                                    -------     -------
Net Income (Loss) from Discontinued Russian Timber
  Operations................................................        $   450    $  (333)
                                                                    =======     =======
</TABLE>

(9) FINANCIAL INFORMATION BY BUSINESS SEGMENT

        In accordance with SFAS No. 131, "Disclosures about Segments of an
Enterprise and Related Information", the Company presents its segment
information for continuing operations using the management approach. The
management approach is based on the way that management organizes the segments
within a company for making operating decisions and assessing performance. The
Company's operating segments are organized around services and products
provided, as well as geographic regions.

                                      9

<PAGE>

        The Company derives its revenues from the following products and
services by segment:

    .   Russian Real Estate Management and Investment Management Operations:
        investment and management services

    .   Real Estate Management Operations:  real estate management services
        including property management and advisory services

    .   Other:  management services

                              SEGMENT DISCLOSURES

<TABLE>
<CAPTION>
                                                                     Russian
                                                                   Real Estate
                                                                    Management
                                                                       And        Real
                                                                    Investment    Estate
                                                                    Management  Management
                                                                    Operations  Operations    Other       Total
                                                                    ----------  ----------  ----------  ----------
<S>                                                                 <C>         <C>         <C>         <C>
As of and for the three months ended March 31, 2002
---------------------------------------------------
Net Revenues and Sales..........................................    $    2,326  $      195  $      429  $    2,950
                                                                    ----------  ----------  ----------  ----------

Income (Loss) from Continuing Operations before Provision for
 Income Taxes and Minority Interest.............................         2,890        (275)        476       3,091

Provision for Income Taxes......................................        (1,261)         --          --         --

Minority Interest (Expense) Income..............................        (1,247)         --          --      (1,247)

Equity Loss on Venture Capital Investment.......................            --          --         (28)        (28)
                                                                    ----------  ----------  ----------  ----------
Net Income (Loss) from Continuing Operations....................    $      382  $     (275)  $     447   $     555
                                                                    ==========  ==========  ==========  ==========

Depreciation....................................................    $      189  $        7  $       --   $     196
                                                                    ==========  ==========  ==========  ==========

Total Assets....................................................    $   76,531  $      490  $   33,531  $  110,552
                                                                    ==========  ==========  ==========  ==========
</TABLE>

<TABLE>
<CAPTION>
                                                                     Russian
                                                                   Real Estate
                                                                    Management
                                                                       and         Real
                                                                    Investment    Estate
                                                                    Management  Management
                                                                    Operations  Operations    Other       Total
                                                                    ----------  ----------  ----------  ----------
<S>                                                                 <C>         <C>         <C>         <C>
As of and for the three months ended March 31, 2001
---------------------------------------------------
Net Revenues and Sales..........................................    $    2,022  $      390  $      715  $    3,127
                                                                    ----------  ----------  ----------  ----------

Income (Loss) from Continuing Operations before Provision for
 Income Taxes and Minority Interest.............................           275        (390)     (2,911)     (3,026)

Provision for Income Taxes......................................            25          --          (4)         21

Minority Interest (Expense) Income..............................          (274)         --       2,903       2,629
                                                                    ----------  ----------  ----------  ----------
Net (Loss) Income from Continuing Operations....................    $       26  $    (390)  $      (12) $     (376)
                                                                    ==========  ==========  ==========  ==========

Depreciation and Amortization...................................    $      247  $       19  $        3  $      269
                                                                    ==========  ==========  ==========  ==========

Total Assets....................................................    $   55,335  $      836  $   81,683  $  137,854
                                                                    ==========  ==========  ==========  ==========
</TABLE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

OVERVIEW

                                      10

<PAGE>

        A summary of the Company's significant accounting policies is contained
in the Company's 2001 Annual Report on Form 10-K for the year ended December 31,
2001 filed with the Securities and Exchange Commission.

        The consolidated financial statements of Harbor Global's principal
operations include its Russian real estate management and investment management
operations, Polish venture capital investment and management operations, Polish
real estate management operations, and Russian timber operations. Management's
Discussion and Analysis of Financial Condition and Results of Operations is
presented in three sections: Results of Operations for the three months ended
March 31, 2002 and 2001, Liquidity and Capital Resources, and Future Operating
Results.

        Previously the Company reported its Russian timber operations and
Polish venture capital operations as separate segments. Due to the pending sale
of the Russian timber operations segment, the results from the Russian timber
operations have been segregated from continuing operations. In 2001, the Company
sold its general partnership interest in the Polish venture capital operations
and as a result no longer reports these operations as a separate segment. The
segment disclosures previously reported have been reformatted to reflect the
Company's continuing segments.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001

Consolidated Operations.

        Harbor Global reported net income of $1.0 million ($0.18 per share) on
revenues of $2.9 million in the first quarter of 2002 compared with a net loss
of $0.7 million ($0.13 per share) on revenues of $3.1 million for the first
quarter of 2001. Income from continuing operations was $0.6 million in the first
quarter of 2002 compared to a net loss of $0.4 million in the first quarter of
2001. The $1.0 million increase in income from continuing operations was
attributable to a $1.0 million increase in realized portfolio gains from the
Russian real estate management and investment management operations. Income from
discontinued timber operations was $0.4 million in the first quarter of 2002
compared with a loss of $0.3 million in the first quarter of 2001.

        Set forth on the following table are the details of revenues and net
income (loss) by business segment for the three months ended March 31, 2002 and
2001:

                        REVENUES AND NET INCOME OR LOSS
                             (DOLLARS IN MILLIONS)

                                                    NET INCOME
                                     REVENUES         (LOSS)
                                    ----------      ----------
                                   THREE MONTHS    THREE MONTHS
                                       ENDED           ENDED
                                     MARCH 31,       MARCH 31,
                                   ------------    -------------

BUSINESS SEGMENT                     2002   2001    2002    2001
----------------                     ----   ----    ----    ----
Russian Real Estate Management
 and Investment Management
 Operations......................   $ 2.3  $ 2.0   $ 0.4  $  0.0
Real Estate Management Operations     0.2    0.4    (0.3)   (0.4)
Other............................     0.4    0.7     0.5     0.0
                                    -----  -----   -----   -----
Total from continuing
 operations......................   $ 2.9  $ 3.1   $ 0.6   $(0.4)
                                    -----  -----   -----   -----

Income (Loss) from discontinued
 operations......................      --     --     0.4    (0.3)
                                    -----  -----   -----   -----

           Totals................   $ 2.9  $ 3.1   $ 1.0  $ (0.7)
                                    -----  -----   -----   -----

                                      11

<PAGE>

Russian Real Estate Management and Investment Management Operations.

        The Russian real estate management and investment management operations
reported net income of $0.4 million for the first quarter 2002, an increase of
$0.4 million compared with the first quarter of 2001. The increase was
attributable to a $1.0 million increase in realized portfolio gains, net of
minority interest and taxes, and $0.1 million of additional rental income from
Meridian Commercial Tower. These increases were offset partially by increases in
corporate overhead expenses and advertising expenses of $0.5 million and $0.2
million, respectively, compared with the first quarter of 2001.

Real Estate Management Operations.

        The real estate management operations reported a net loss of $0.3
million in the first quarter of 2002 compared with losses of $0.4 million in the
first quarter of 2001. During the first quarter of 2001, the Polish real estate
operations, which are in the process of being liquidated, had a loss of $0.1
million.

Other.

        Harbor Global's other operations reported net income of $0.5 million
for the three months ended March 31, 2002 compared to breaking even for the
three months ended March 31, 2001. The first quarter of 2001 includes losses
from the venture capital operations of $0.5 million, which reflects the
write-down of two investments and the allocation of corporate overhead expenses.

Discontinued Operations.

        On February 5, 2002, the Company's Board of Directors approved the
disposition of the Russian timber operations. Accordingly, the Russian timber
operations segment is reflected as a discontinued operation. During the fourth
quarter of 2001, management made its best estimate of the loss on disposal based
on an estimated selling price and a projection of costs and expenses to be
incurred up to the anticipated date of disposal. On April 22, 2002, the
Company's wholly owned subsidiary, Pioneer Forest, Inc., entered into a
definitive agreement for the sale of its Russian timber operations segment for
an aggregate purchase price of $7.55 million. Based on this purchase price and
estimated costs through the anticipated date of disposal, the Company recorded a
credit of approximately $0.4 million in the first quarter of 2002. The loss of
$0.3 million for the three months ended March 31, 2001 reflects the operating
loss of the Russian timber operations.

LIQUIDITY AND CAPITAL RESOURCES

        Liquid assets held directly by Harbor Global consisting of cash and
cash equivalents and marketable securities maintained for general corporate
purposes were $20.6 million as of March 31, 2002, of which $6.9 million is
restricted. This represents a $0.6 million increase from the 2001 fiscal year
end and is attributable principally to the receipt of $2.5 million from Ashanti
less funding for first quarter operations. Management believes that the cash
available for general corporate purposes is sufficient to fund operations over
the next two years.

        The assets of the Company's majority-owned Russian subsidiary,
PIOGLOBAL Investment Fund, consist of cash and cash equivalents, equity
securities (both liquid and illiquid), marketable securities, real estate
holdings, and other miscellaneous assets.

FUTURE OPERATING RESULTS

        From time to time, management may make forward-looking statements in
this Quarterly Report on Form 10-Q, in other documents that the Company files
with the Securities and Exchange Commission (including those documents
incorporated by reference into the Form 10-Q), in press releases or in other
public discussions. The Private Securities Litigation Reform Act of 1995
provides a "safe harbor" for these statements. For this purpose, a
forward-looking statement is any statement

                                      12

<PAGE>

that is not a statement of historical fact. Forward-looking statements include
those about asset realization plans and strategies, anticipated expenses,
liquidity and capital resources and expectations about market conditions.
Forward-looking statements can be identified by the words "may," "believes,"
"anticipates," "plans," "expects," "estimates" and similar expressions.
Forward-looking statements are based on currently available information and
management's expectations of future results but involve certain assumptions.
Management cautions readers that assumptions involve substantial risks and
uncertainties. Consequently, any forward-looking statement could turn out to be
wrong. Many factors could cause actual results to differ materially from
expectations. Described below are some of the important factors that could
affect revenues or results of operations.

THERE CAN BE NO ASSURANCE THAT SHAREHOLDERS WILL BE ABLE TO SELL THEIR HARBOR
GLOBAL COMMON SHARES.

        Harbor Global common shares are not listed on any securities exchange or
on The Nasdaq Stock Market(R).

     Furthermore, Harbor Global does not intend to:

      - engage the services of any market maker;

      - facilitate the development of an active public trading market in Harbor
        Global common shares, or encourage others to do so;

      - place any advertisements in the media promoting an investment in Harbor
        Global; or

      - except as required by the Securities Exchange Act of 1934, collect or
        publish information about prices at which Harbor Global common shares
        may be traded.

        Harbor Global cannot provide assurances as to the prices at which Harbor
Global common shares may trade or provide assurances that shareholders will be
able to sell their Harbor Global common shares.

THE POTENTIAL VALUES TO BE REALIZED UPON THE SALE OR LIQUIDATION OF MOST OF
HARBOR GLOBAL'S ASSETS, IF ANY, ARE SPECULATIVE.

        The potential values to be realized upon the sale of Harbor Global's
Russian real estate management and investment management operations, if any, are
speculative.

        A significant portion of Harbor Global's Russian real estate management
and investment management operations consists of its approximately 52% interest
in PIOGLOBAL Investment Fund, a company that invests in Russian real estate and,
to a lesser extent, securities of Russian companies. Generally, the Russian real
estate and securities markets are significantly smaller and less liquid than the
markets in the United States, and as a result, a portion of the assets held by
PIOGLOBAL Investment Fund are illiquid. There is also limited liquidity in some
of the publicly traded securities of PIOGLOBAL Investment Fund. Consequently,
Harbor Global may have difficulty selling some of its investment in PIOGLOBAL
Investment Fund or causing PIOGLOBAL Investment Fund to liquidate some of its
underlying assets, and may only be able to do so at prices which may not reflect
the long-term value of its investments.

HARBOR GLOBAL'S BUSINESSES, PARTICULARLY THOSE CONDUCTED IN EMERGING MARKETS,
ARE SUSCEPTIBLE TO NUMEROUS RISKS AND UNCERTAINTIES ASSOCIATED WITH
INTERNATIONAL OPERATIONS.

        Harbor Global conducts business in countries outside of the United
States, primarily in Russia. Harbor Global will continue to operate its
international businesses until those businesses are liquidated and will continue
to be subject to the risks of doing business internationally, including:

      - unexpected changes in regulatory requirements and underdeveloped legal
        systems in some countries;

                                      13

<PAGE>

      - tariffs and other trade barriers;

      - difficulties in staffing and managing foreign operations;

      - political and economic instability;

      - fluctuations in currency exchange rates;

      - restrictions on currency exchange and repatriation;

      - restrictions on foreign investment in its businesses;
        and

      - potentially adverse tax consequences.

        For example, in recent years Russia has undergone substantial
political, economic and social change. As is typical of an emerging market,
Russia does not possess a well-developed business, legal and regulatory
infrastructure that would generally exist in the United States or in a more
mature free market economy. Accordingly, Harbor Global's Russian real estate
management and investment management operations involve significant risks, such
as those listed above, which are not typically associated with developed
markets. The liquidation of these businesses and the businesses Harbor Global
operates in other emerging markets, as well as the successful operation of these
businesses pending their liquidation, will depend on the stability of, and
economic conditions in, these emerging markets.

THE LOSS OF KEY OFFICERS AND MANAGERS COULD IMPAIR THE ABILITY OF HARBOR GLOBAL
TO SUCCESSFULLY OPERATE AND MANAGE ITS ASSETS PRIOR TO THEIR LIQUIDATION.

        Mr. Kasnet is the President and Chief Executive Officer, and Mr.Hunter
is the Chief Operating Officer and Chief Financial Officer of Harbor Global.
Mr. Kasnet previously served as the President, and Mr. Hunter previously served
as the Chief Operating Officer and Senior Vice President of Pioneer Global
Investments, a division of Pioneer. As executive officers of Pioneer Global
Investments, Mr. Kasnet and Mr. Hunter operated substantially all the businesses
that Harbor Global now owns. In addition, Harbor Global has entered into an
administration and liquidation agreement with Calypso Management, an entity
owned and operated by Mr. Kasnet and Mr. Hunter, under which Calypso Management
will manage the liquidation of Harbor Global and operate its assets as going
concern businesses until they are liquidated.

        Because Harbor Global's assets are a diverse range of businesses and
are generally located in countries in which successfully conducting and selling
businesses requires significant experience, Harbor Global believes that its
success in liquidating its assets and operating its assets pending their
liquidation will depend to a significant extent upon the continued efforts of
Mr. Kasnet and Mr. Hunter. The loss of the services of either Mr. Kasnet or Mr.
Hunter could have a material adverse effect upon Harbor Global's results of
operations and financial condition. The services of Mr. Kasnet and Mr. Hunter
may also be critical to Harbor Global's ability to liquidate its assets at
prices that will enable Harbor Global to make meaningful distributions to its
shareholders.

        Mr. Kasnet and Mr. Hunter have both entered into employment agreements
with Calypso Management. Mr. Kasnet's employment agreement provides for a
minimum term of two years and may be terminated by Mr. Kasnet upon 120 days
prior written notice following the second anniversary of the distribution date.
Mr. Hunter's employment agreement provides that Mr. Hunter's employment with
Calypso Management is at will, subject to termination by either Calypso
Management or Mr. Hunter upon 60 days prior written notice. If either Mr.
Kasnet's or Mr. Hunter's employment with Calypso Management is terminated, he
will cease to be an officer of Harbor Global. In addition, if either Mr.
Kasnet or Mr. Hunter terminates his employment before the second anniversary of
the distribution date, he will forfeit his right to receive incentive
compensation under the administration and liquidation agreement and his
employment agreement. Harbor Global has obtained key officer life insurance
policies with benefits payable to Harbor Global for Mr. Kasnet and Mr. Hunter.

                                      14

<PAGE>

HARBOR GLOBAL WILL INDEMNIFY PIONEER FOR SOME LIABILITIES ACCRUING AFTER THE
SPIN-OFF.

        Under the Distribution Agreement, Harbor Global agreed to indemnify
Pioneer for liabilities, other than tax liabilities, incurred by Pioneer
relating to the businesses or operations of the Harbor Global assets. For
example, in connection with the sale of its gold mining operations in Ghana to
Ashanti, Pioneer has agreed to indemnify Ashanti for claims arising under the
purchase agreement before June 19, 2005 relating to its Ghanaian gold mining
operations. Under the Distribution Agreement, Pioneer transferred Pioglobal
Goldfields II, the Pioneer subsidiary through which Pioneer's gold mining
operations in Ghana were conducted, to Harbor Global. As a result of the
transfer, Harbor Global is obligated to reimburse Pioneer in the event that
Ashanti seeks indemnification for any claim. Harbor Global's indemnification
obligations to Pioneer in connection with the Ashanti purchase agreement are
capped at the amount of the total purchase price paid by Ashanti to Pioglobal
Goldfields II under the purchase agreement.

        Additionally, under a tax separation agreement between Harbor Global
and Pioneer, generally, Harbor Global has agreed to indemnify Pioneer for tax
liabilities relating to the Harbor Global businesses. Currently, there are no
suits pending that would require payment by Harbor Global to Pioneer under the
indemnification provisions of the Distribution Agreement or tax separation
agreement. However, Harbor Global cannot provide assurances that no legal
proceeding or other claim will occur that would require Harbor Global to
indemnify Pioneer. Furthermore, Harbor Global and its subsidiaries may be
subject to legal proceedings or other claims arising in the ordinary course of
business, including employment related claims, environmental claims and
regulatory fees or fines associated with its international operations.

AS A RESULT OF HOLDING HARBOR GLOBAL COMMON SHARES, HARBOR GLOBAL'S SHAREHOLDERS
MAY RECOGNIZE TAXABLE INCOME AND BE REQUIRED TO PAY TAX WITHOUT A CORRESPONDING
DISTRIBUTION OF CASH FROM HARBOR GLOBAL TO ITS SHAREHOLDERS.

        For United States federal income tax purposes, Harbor Global is treated
as a partnership. For United States federal income tax purposes, Harbor Global's
shareholders will be treated as partners in a Bermuda partnership and their
Harbor Global common shares will represent partnership interests. Because of its
classification as a partnership for United States federal income tax purposes,
Harbor Global is not itself subject to United States federal income tax.
Instead, items of income, gain, loss, deduction and expense will flow through to
Harbor Global's shareholders, and they will be required to include their
allocable share of these items in computing their own United States federal
income tax for each taxable year of Harbor Global. Cash distributions made by
Harbor Global to its shareholders generally will not be taxable, except to the
extent that those distributions exceed a shareholder's adjusted tax basis in the
Harbor Global common shares.

        Harbor Global believes that one or more of the majority or minority
owned foreign subsidiaries of Harbor Global may be classified as a foreign
personal holding company or passive foreign investment company for United States
federal income tax purposes. If any such subsidiary is classified as a foreign
personal holding company or passive foreign investment company, Harbor Global's
shareholders may be required to recognize taxable income and pay tax with
respect to a portion of the subsidiary's income, even in the absence of the
receipt of any payment of cash or other property from the subsidiary. The tax
rules regarding foreign partnerships, foreign personal holding companies and
passive foreign investment companies are complicated. Harbor Global's
shareholders should consult their tax advisors to determine the tax consequences
to them of holding Harbor Global common shares.

HARBOR GLOBAL WILL BE SUBJECT TO SIGNIFICANT RESTRICTIONS IF IT BECOMES AN
INVESTMENT COMPANY.

        Harbor Global intends to conduct its businesses and operations so as to
avoid being required to register as an investment company. If, nevertheless,
Harbor Global were to be required to register as an investment company, because
Harbor Global is a foreign company, the Investment Company Act would prohibit
Harbor Global and any person deemed to be an underwriter of Harbor Global's
securities from

                                      15

<PAGE>

offering for sale, selling or delivering after sale, in connection with a
public offering, any security issued by Harbor Global in the United States.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

        Harbor Global monitors its exposure to adverse changes in interest
rates, foreign currency exchange rates and market fluctuations.

        The Company's interest rate risk involves the short-term investment of
excess cash. This risk impacts fair values, earnings and cash flows. Excess cash
is primarily invested in foreign government bonds, United States treasury bills
and in overnight repurchase agreements backed by United States government
securities. These short-term investments are reported either as cash and cash
equivalents or marketable securities. The balance of such securities at March
31, 2002 was approximately $1.2 million of cash and cash equivalents and $29.0
million as marketable securities. Earnings from excess cash invested were
approximately $0.4 million for the three months ended March 31, 2002. Based on
excess cash invested at March 31, 2002, a one percent increase or decrease in
current market interest rates would have the effect of causing an approximately
$0.3 million additional pre-tax credit or charge to the statement of operations.

        Harbor Global is exposed to certain changes in foreign currency
exchange rates, primarily as a result of its operations in Russia. Due to the
hyperinflationary economy in the Russian Federation, the United States dollar
(the Company's reporting currency) has been designated as the Company's
functional currency. Translation gains and losses that result from remeasuring
into the US dollar are included in the statements of operations. To mitigate
against currency translation risk the Company primarily transacts in United
States dollars by contracting for most of its costs and revenues in United
States dollars. This acts as a natural hedge to protect against currency
fluctuations from the Company's operations.

        The Russian ruble is not a fully convertible currency outside of the
territory of the Russian Federation. The translation of ruble denominated assets
and liabilities into United States dollars for the purpose of these financial
statements does not indicate that the Company could realize or settle in United
States dollars the reported values of these assets and liabilities. The Company
reports all of its non monetary assets and liabilities held in the Russian
Federation at historical exchange rates, and any fluctuation in foreign exchange
rates would not have any impact on reported non monetary assets and liabilities.

        The table below sets forth in the Company's reporting currency a
summary of the monetary assets and liabilities held in rubles at March 31, 2002.

                                                               (IN THOUSANDS)

Monetary Assets
Cash and Cash Equivalents..................................     $ 5,735
Marketable Securities Held for Sale........................      38,038
Accounts Receivable........................................         938
                                                                -------
                                                                $44,711
                                                                -------

Monetary Liabilities
Accounts Payable...........................................     $10,298
                                                                -------
Net Position...............................................     $34,413
                                                                =======

        The Company indirectly invests in equity instruments of privately-held
companies through its approximately 52% interest in the PIOGLOBAL Investment
Fund and its approximately 8% interest in the Pioneer Poland Fund. Investments
in privately held companies by the PIOGLOBAL Investment Fund are recorded at
cost in long-term investments. With respect to the Company's limited partnership
interest in the Pioneer Poland Fund, such interests are recorded in Polish
Venture Capital Investment using the equity method of accounting. The Company is
exposed to market risk as it relates to the market value of its indirect
investments in privately held

                                      16

<PAGE>

companies. The carrying value of the Company's interest in the Pioneer Poland
Fund was not written-down during the first quarter of 2002.

        The PIOGLOBAL Investment Fund is also invested in equity instruments of
public companies, which are classified as available-for-sale pursuant to SFAS
115. Those publicly traded equity investments that have evinced a sufficient
breadth and scope of market activity are valued based at the quoted price for
such securities according to the Russian Trading System and are recorded in
long-term marketable securities. Otherwise, the investment is recorded in
long-term investments at a fair value equivalent to its original cost basis.
These available-for-sale equity investments, primarily in oil and gas, energy
companies and the telecommunications industry, are subject to significant
fluctuations in fair value due to the volatility of the stock market and the
industries in which these companies participate. As of March 31, 2002, the fair
value of equity investments contained in long-term marketable securities
aggregated $24.9 million. As a result, during the first quarter of 2002, the
Company recorded net unrealized gains after deferred taxes of $2.0 million as a
separate component of stockholder's equity. Although the breadth of industries
represented on the Russian Trading System is severely limited, the Company
attempts to manage its exposure to stock market fluctuations and minimize the
impact of stock market declines to the Company's earnings and cash flow by
increased diversification of the portfolio.

PART II -- OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

 (a) Exhibits:  The Exhibit Index immediately precedes the Exhibits filed herein
and is incorporated by reference.

 (b) On April 30, 2002, the Company filed a Current Report on Form 8-K in
connection with the execution by Pioneer Forest, Inc. of a definitive agreement
to sell its Russian timber business.

                                      17

<PAGE>

                                  SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

Dated: May 8, 2002

                                      HARBOR GLOBAL COMPANY LTD.

                                         /s/ Donald H. Hunter
                               --------------------------------------
                                          Donald H. Hunter
                                      Chief Operating Officer
                                      Chief Financial Officer

                           (Duly authorized officer and principal financial
                                          and accounting officer)

                                      18

<PAGE>

                                INDEX TO EXHIBITS

EXHIBIT
NUMBER                           DESCRIPTION
-------                          -----------
 2.1*      Form of Distribution Agreement by and among The Pioneer Group, Inc.,
           Harbor Global Company Ltd. and Harbor Global II Ltd.
 2.2++     Purchase Agreement dated April 22, 2002 between Successful Union
           Limited and Pioneer Forest, Inc.
 3.1+      Memorandum of Association of Harbor Global Company Ltd.
 3.2+      Bye-Laws of Harbor Global Company Ltd.
 4.1**     Specimen Common Share Certificate
10.1***    Supplemental Agreement No. 6 dated April 17, 2002 to Assignment
           Agreement dated January 23, 2002 among Pioglobal Forest, L.L.C.,
           Pioneer Forest, Inc. and Closed Joint-Stock Company "Forest-Starma"
10.2***    Assignment Agreement dated April 22, 2002 between Pioglobal Forest,
           L.L.C. and FM, LLC
10.3***    Assignment Agreement dated April 22, 2002 among Pioglobal Forest,
           L.L.C., FM, LLC and Closed Joint-Stock Company "Forest-Starma"
10.4***    Assignment Agreement dated April 22, 2002 between Pioglobal Forest,
           L.L.C. and FM, LLC

----------------------

***        Filed herewith.

**         Incorporated by reference to Harbor Global Company Ltd.'s Quarterly
           Report on Form 10-Q (file number 0-30889) filed on November 13,
           2000.

++         Incorporated by reference to Harbor Global's Report on Form 8-K
           (file number 000-30889) filed on April 30, 2002.

*          Incorporated by reference to Amendment No. 1 to Harbor Global
           Company Ltd.'s Registration Statement on Form 10/A (file number
           0-30889) filed on August 8, 2000.

+          Incorporated by reference to Harbor Global Company Ltd.'s
           Registration Statement on Form 10 (file number 0-30889) filed on
           June 26, 2000.

                                      19