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 811-21409
Pioneer Municipal High Income
Advantage Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
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: March 31
Date of reporting period: April 1, 2016 through March 31, 2017
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.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Municipal High
Income Advantage Trust
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Annual Report | March 31, 2017
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Ticker Symbol: MAV
[LOGO] PIONEER
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visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 12
Prices and Distributions 13
Performance Update 14
Schedule of Investments 15
Financial Statements 26
Notes to Financial Statements 31
Report of Independent Registered Public Accounting Firm 39
Approval of New and Interim Management Agreements 41
Trustees, Officers and Service Providers 49
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 1
President's Letter
After an overall strong year for leading market indices in 2016, U.S. markets
continued to generate positive returns over the first calendar quarter of 2017,
with so-called "risk" assets, such as equities and credit-sensitive bonds,
posting solid gains. In the first quarter, U.S. equities, as measured by the
Standard & Poor's 500 Index, returned slightly more than 6%, while high-yield
securities dominated bond market performance.
The transfer of power in Washington, D.C. in January had little or no effect on
the markets in the first quarter, as the post-election momentum we witnessed
late in the fourth quarter of 2016 slowed only when oil prices slumped in March,
due to both higher-than-expected inventories and concerns over whether OPEC
(Organization of Petroleum Exporting Countries) would continue its supply cuts
in June. Not even the Federal Reserve System's (the Fed's) highly anticipated
rate hike during the month of March, its second in three months, nor Britain's
trigger of Article 50 to begin the "Brexit" process caused any dramatic sell-off
of risk assets.
While U.S. gross domestic product (GDP) did slow in the first quarter, the
expectation is for GDP to accelerate in the second quarter, with a strong
consumer leading the way. Pioneer believes the U.S. economy may lead all
developed nations in 2017, with GDP growth in excess of 2% for the year.
President Trump has proposed decidedly pro-business policies, such as lower
taxes, higher infrastructure spending, and less regulation, though we believe
the economy may realize the benefits of those policies, if enacted, more so in
2018 than in 2017. Conversely, the effects of the President's potentially
restrictive trade policies could offset some of the benefits of the pro-growth
fiscal policies.
Even so, we believe solid domestic employment figures should continue to support
consumption and the housing market, and that stronger corporate profits and
increased government spending may contribute to economic growth in 2018 and
beyond. Increasing global Purchasing Manager Indices (PMIs) suggest that growth
in global economies is also improving. (PMIs are used to measure the economic
health of the manufacturing sector.)
There are, as always, some risks to our outlook. First, the market already has
priced in a good deal of the Trump economic reform platform, and that could lead
to near-term disappointment if Congressional follow-through does not happen this
year. The future of the Affordable Care Act is another potential concern. The
first attempt to repeal/replace it failed, but any new proposed
2 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
legislation will undoubtedly have an effect on the health care sector, one of
the largest segments of the US economy. Geopolitical risks, of course, remain a
potential headwind, given ongoing strife in the Middle East and renewed tensions
on the Korean Peninsula.
While our current outlook is generally optimistic, conditions can and often do
change, and while passive investment strategies may have a place in one's
overall portfolio, it is our view that all investment decisions are active
choices.
Throughout Pioneer's history, we have believed in the importance of active
management. The active decisions to invest in equities or fixed-income
securities are made by a team of experienced investment professionals focusing
on identifying value across global markets using proprietary research, careful
risk management, and a long-term perspective. We believe our shareowners can
benefit from the experience and tenure of our investment teams as well as the
insights generated from our extensive research process.
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
March 31, 2017
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 3
Portfolio Management Discussion | 3/31/17
High-yield municipal bonds delivered moderate, positive results over the
12-month period ended March 31, 2017, outperforming investment-grade municipals.
In the following interview, David Eurkus and Jonathan Chirunga discuss the
factors that influenced the performance of Pioneer Municipal High Income
Advantage Trust during the 12-month period. Mr. Eurkus, Director of Municipals,
a senior vice president and a portfolio manager at Pioneer, and Mr. Chirunga, a
vice president and portfolio manager at Pioneer, are responsible for the
day-to-day management of the Trust.
Q How did Pioneer Municipal High Income Advantage Trust perform during the
12-month period ended March 31, 2017?
A Pioneer Municipal High Income Advantage Trust returned 0.28% at net asset
value and -15.92% at market price during the 12-month period ended March
31, 2017. During the same 12-month period, the Trust's benchmarks, the
Bloomberg Barclays U.S. Municipal High Yield Bond Index and the Bloomberg
Barclays Municipal Bond Index, returned 4.31% and 0.15%, respectively. The
Bloomberg Barclays U.S. Municipal High Yield Bond Index is an unmanaged
measure of the performance of lower-rated municipal bonds, while the
Bloomberg Barclays Municipal Bond Index is an unmanaged measure of the
performance of investment-grade municipal bonds. Unlike the Trust, the two
indices do not use leverage. While use of leverage increases investment
opportunity, it also increases investment risk.
During the same 12-month period, the average return (at market price) of
the 11 closed end funds in Lipper's High Yield Municipal Debt Closed End
Funds category (which may or may not be leveraged) was -2.57%.
The shares of the Trust were selling at a 7.34% discount to net asset value
at the end of the period, on March 31, 2017. The shares of the Trust were
selling at a 10.5% premium to net asset value at the end of the previous
12-month period, on March 31, 2016.
On March 31, 2017, the standardized 30-day SEC yield of the Trust's shares
was 4.56%*.
Q How would you describe the investment environment in the municipal bond
market during the 12-month period ended March 31, 2017?
A Early in the 12-month period, performance of both investment-grade and
high-yield municipal bonds benefited from a favorable environment supported
by declining interest rates and the positive outlook of investors in
* The 30-day SEC yield is a standardized formula that is based on the
hypothetical annualized earning power (investment income only) of the
Trust's portfolio securities during the period indicated.
4 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
a growing economy. In the intervening months, however, market sentiment
began to change in response to a variety of factors. In the end,
investment-grade municipal debt turned in slightly positive results over
the 12-month period, as coupon income narrowly overcame price losses driven
by rising interest rates. Meanwhile, high-yield municipal debt generated
somewhat better results, due to improving confidence in the economy and
steady demand from investors attracted to the market by favorable pricing
and generous yields.
One of the first events to cause the aforementioned change in market
sentiment was the announcement in early summer 2016 that the Commonwealth
of Puerto Rico would default on some of its debt. The news had a
particularly strong effect on the high-yield municipal market, as Puerto
Rico-issued debt, at the time, accounted for approximately 23% of the
assets represented in the Bloomberg Barclays U.S. Municipal High Yield Bond
Index. Following the default announcement, those weights adjusted, and
Puerto Rico's representation in that index dropped to about 13%. After a
brief period of high volatility, however, all Puerto Rico-related debt
began outperforming. This bounce-back occurred because negotiations between
bondholders and the Commonwealth signaled a higher restructuring recovery
rate as part of any potential settlement. Moreover, the outperformance of
Puerto Rico's bonds also extended to the debt of other distressed municipal
issuers, including the State of Illinois, the City of Chicago, and the
Chicago Board of Education, whose combined debt securities accounted for 6%
of the Bloomberg Barclays Index.
The second significant event to jar the market and cause a spike in
volatility was the presidential election victory of Donald Trump in
November 2016. Higher-yielding bonds again rallied as investors drew
encouragement from the prospect that Mr. Trump and a Republican-controlled
Congress would bring about pro-growth economic policies, with reducing
corporate and individual tax rates, cutting regulations, increasing
infrastructure spending, and replacing or eliminating the Affordable Care
Act (ACA) high on their agenda. While interest rates tended to rise during
the period, thus eroding the values of most bonds - especially
investment-grade debt - high-yield municipals rallied for the remainder of
the Trust's fiscal year.
Over the full 12-month period, and in late 2016/early 2017 in particular,
municipals bonds in general - and especially high-yield municipals -
improved in performance relative to taxable bonds, as their relative values
compared with taxable debt became more evident. Demand increased as
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 5
well, as municipals drew attention from a wider group of investors,
including non-traditional market participants, and even foreign
institutions.
Q Which of your investment decisions had the biggest effects on the Trust's
benchmark-relative performance during the 12-month period ended March 31,
2017, and how was the Trust positioned at the end of the period?
A The Trust invests in both investment-grade and high-yield municipal bonds.
The Trust's return during the period slightly outperformed that of the
investment-grade Bloomberg Barclays Municipal Bond Index, but lagged the
return of the Bloomberg Barclays U.S. High Yield Municipal Bond Index (the
high-yield municipal index). The underperformance versus the high-yield
municipal index during the period derived primarily from the portfolio's
very low exposure to the debt of the Commonwealth of Puerto Rico - which,
as noted earlier, outperformed after the default announcement and
subsequent renegotiation conversations between the Commonwealth and the
bondholders - and from a complete lack of exposure to the debt of other
troubled issuers that rallied during the period, including the
Illinois-based issuers mentioned previously. Our long-term investment
strategy continues to emphasize intensive credit research and analysis, and
the selection of bonds of issuers that we believe are financially strong
enough to meet their obligations. This strategy, in turn, caused us to
avoid owning the debt of borrowers in financial distress, and that approach
hurt the Trust's returns relative to the high-yield municipal index during
the period.
Another negative factor in the Trust's performance during the period was an
increase in borrowing costs driven by increases in interest rates during
the 12 months, which resulted in a reduction in the Trust's income.
The Trust's relatively longer-duration positioning detracted from
benchmark-relative performance early in the period as market interest rates
rose, but it helped benchmark-relative returns later in the period when
rates on municipal bonds moved lower in early 2017. (Duration is a measure
of the sensitivity of the price, or the value of principal, of a
fixed-income investment to a change in interest rates, expressed as a
number of years.)
On the positive side, the Trust's general exposure to higher-yielding
municipal bonds tended to support benchmark-relative performance during the
period, despite the negative influence of the portfolio's underweights to
the troubled issuers that outperformed. Security selection
6 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
within high-yield municipal debt was particularly helpful for benchmark-
relative returns in late 2016 and the first quarter of 2017, when
high-yield markets rallied and the Trust's performance improved. Our
emphasis on project revenue bonds in the Trust's portfolio also proved
beneficial for benchmark-relative results, including investments in tobacco
bonds -- that is, the debt derived from tobacco Master Settlement
Agreements. At the end of the Trust's fiscal year, tobacco bonds
represented roughly 10% of the Trust's total investment portfolio. The
Trust's exposures to the transportation and education and health care
sectors also aided benchmark-relative returns.
With regard to individual positions, of the top six portfolio holdings that
contributed positively to the Trust's benchmark-relative performance during
the period, five were tobacco bonds, led by two different California bonds,
and an Ohio bond.
Notable among the portfolio's holdings that detracted from
benchmark-relative returns during the period were several "inverse floater"
bonds, which tend to be highly sensitive to changes in interest rates and
whose prices depreciated as market rates rose.
The Trust has typically invested in both high-yield and investment-grade
bonds, usually with more than 50% of its total investment portfolio
allocated to the high-yield municipal sector. At the end of the Trust's
fiscal year on March 31, 2017, below-investment-grade debt represented more
than 33% of the Trust's total investment portfolio (that is, securities
rated by Standard & Poor's as "BBB-" and lower). In addition, we continued
to emphasize owning project revenue bonds in the Trust's portfolio during
the 12-month period. Revenue bonds are supported by income generated from
specific projects or agencies. We believe the income from these projects
and agencies is a more consistent and predictable revenue stream than the
sources supporting general obligation bonds, which rely principally on
state and local tax revenues.
At the end of the fiscal year, revenue bonds represented more than 80% of
the Trust's total investment portfolio.
Q What factors affected the Trust's yield during the 12-month period ended
March 31, 2017?
A The Trust's monthly dividend** distribution decreased in the first half of
the fiscal year, but remained stable over the final six months of the
period.
** Dividends are not guaranteed.
Pioneer Municipal High Income Advantage Trust | Annual Report |3/31/17 7
The primary reason for the dividend reduction in the first half of the year
was the increase in the borrowing costs resulting from the Trust's use of
leverage, which we noted earlier. As the interest rates of municipal debt
increased early in the fiscal year, the Trust's borrowing costs increased
and the money available for dividend distributions declined. The
historically low interest-rate climate also adversely affected the Trust's
current income, as issuers of higher-coupon securities took advantage of
the low rates and refinanced their obligations into lower-coupon debt. As
bonds held by the Trust's portfolio either reached maturity or were called
back by their issuers to be refinanced, the portfolio of investments
produced less current income to be used to pay the monthly dividends.
Q How did the level of leverage in the Trust change during the 12-month
period ended March 31, 2017?
A At the end of the 12-month period on March 31, 2017, 34.6% of the Trust's
total managed assets were financed by leverage obtained through the
issuance of preferred shares, compared with 33.4% of the Trust's total
managed assets financed by leverage at the start of the period on April 1,
2016. While the amount of funds borrowed by the Trust decreased slightly,
the increase in leverage as a percentage of total managed assets was
primarily due to the decline in values of securities in which the Trust had
invested.
Q Did the Trust invest in any derivative securities during the 12-month
period ended March 31, 2017?
A No, the Trust had no investments in any derivative securities during the
period.
Q What is your investment outlook?
A We have a favorable near-term outlook for municipal bonds in an improving
economy, which generally enhances the overall credit-worthiness of
municipal debt issuers. We anticipate that the U.S. Federal Reserve System
(the Fed) is likely to continue raising short-term interest rates this
year. After raising the influential Federal funds rate in March 2017
(following earlier hikes in December 2016 and December 2015), we think the
Fed may very well increase rates twice more during the remainder of 2017.
The rate hikes should not be disruptive to the market, which anticipates
further rate increases.
One uncertainty hovering over the market is the question of whether the
Trump Administration and the Congress can agree on pro-growth legislation
to reform the tax code, increase infrastructure spending, and replace or
repeal the ACA. As more time goes by without major legislation
8 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
passed to address those issues, investors could become less confident about
whether the changes will occur. Resolution of the ACA debate alone could
have a significant impact on hospitals and other health care institutions,
issuers that represent a significant portion of the municipal bond market.
Despite these caveats, we retain a positive view of opportunities in the
municipal bond market. We believe municipal bond prices should continue to
strengthen in an environment where the attractive relative values of
municipals versus taxable bonds become more apparent to both traditional
and non-traditional municipal market participants, and in which an
improving economy strengthens overall credit quality.
As noted earlier, we anticipate that the Fed will continue to raise the
Federal funds rate during 2017. While rising interest rates could increase
the potential for the portfolio to realize greater income, investors should
be aware that higher rates also increase the Trust's cost of borrowing,
which occurred during the past fiscal year. That, in turn, may continue to
lower the amount of funds available for dividend distributions. In
addition, the portfolio's income can come under pressure if bond issuers
continue to recall older, higher-yielding debt and replace those bonds with
securities paying lower yields.
We believe our emphasis on holding better-financed revenue bonds in the
Trust's portfolio may lead to solid performance over the long term. We
intend to continue to focus on maintaining a highly diversified***
portfolio of investments in securities backed by predictable and reliable
revenue sources.
*** Diversification does not assure a profit nor protect against loss.
Pioneer Municipal High Income Advantage Trust | Annual Report |3/31/17 9
Please refer to the Schedule of Investments on pages 15-25 for a full listing of
Trust securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk.
The Trust may invest in securities of issuers that are in default or that are in
bankruptcy.
A portion of income may be subject to state, federal, and/or alternative minimum
tax. Capital gains, if any, are subject to a capital gains tax.
When interest rates rise, the prices of fixed-income securities in the Trust
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Trust will generally rise.
By concentrating in municipal securities, the portfolio is more susceptible to
adverse economic, political or regulatory developments than is a portfolio that
invests more broadly.
Investments in the Trust are subject to possible loss due to the financial
failure of the issuers of the underlying securities and the issuers' inability
to meet their debt obligations.
The Trust currently uses leverage through the issuance of preferred shares.
Leverage creates significant risks, including the risk that the Trust's
incremental income or capital appreciation for investments purchased with the
proceeds of leverage will not be sufficient to cover the cost of leverage, which
may adversely affect the return for the holders of common shares. Since February
of 2008, regularly scheduled auctions for the Trust's preferred shares have
failed and preferred shareowners have not been able to sell their shares at
auction. The Board of Trustees of the Trust has considered, and continues to
consider, this issue.
The Trust is required to meet certain regulatory and rating agency asset
coverage requirements in connection with its outstanding preferred shares. In
order to maintain required asset coverage levels, the Trust may be required to
alter the composition of its investment portfolio or take other actions, such as
redeeming preferred shares with the proceeds from portfolio transactions, at
what might be
10 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
inopportune times in the market. Such actions could reduce the net earnings or
returns to holders of the Trust's common shares over time, which is likely to
result in a decrease in the market value of the Trust's shares.
Risks of investing in the Trust are discussed in greater detail in the Trust's
original offering documents relating to its common shares and shareowner reports
issued from time to time.
These risks may increase share price volatility.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 11
Portfolio Summary | 3/31/17
Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Insured: 14.9%
Revenue Bonds:Other Revenue 25.9%
Health Revenue 15.4%
Education Revenue 11.2%
Tobacco Revenue 9.5%
Development Revenue 6.9%
Facilities Revenue 5.9%
Transportation Revenue 5.0%
Water Revenue 2.7%
Pollution Control Revenue 1.7%
Airport Revenue 0.9%
Portfolio Maturity
--------------------------------------------------------------------------------
(As a percentage of total investments)
5-7 years 0.9%
7-10 years 3.6%
10-20 years 34.6%
20+ years 60.9%
10 Largest Holdings
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(As a percentage of long-term holdings)*
1. New Jersey Transportation Trust Fund Authority, 12/15/27 (BHAC Insured) 2.57%
--------------------------------------------------------------------------------------------------------
2. Massachusetts Development Finance Agency, WGBH Foundation,
Series A, 5.75%, 1/1/42 (AMBAC Insured) 2.45
--------------------------------------------------------------------------------------------------------
3. North Texas Tollway Authority, Series F, 5.75%, 1/1/33 2.36
--------------------------------------------------------------------------------------------------------
4. Buckeye Tobacco Settlement Financing Authority, Asset-Backed, Series A-2, 6.5%, 6/1/47 2.31
--------------------------------------------------------------------------------------------------------
5. Private Colleges & Universities Authority, Emory University, Series A, 5.0%, 10/1/43 2.31
--------------------------------------------------------------------------------------------------------
6. Lehman Municipal Trust Receipts, RIB, 11.827%, 6/1/37 (144A) (AGM Insured) 2.04
--------------------------------------------------------------------------------------------------------
7. New York State Dormitory Authority, Series C, 5.0%, 3/15/39 1.97
--------------------------------------------------------------------------------------------------------
8. New Jersey Economic Development Authority, Continental Airlines, 5.75%, 9/15/27 1.90
--------------------------------------------------------------------------------------------------------
9. State of Connecticut, Series E, 4.0%, 9/1/30 1.76
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10. Jefferson Parish Hospital Service District No. 2, East Jefferson General
Hospital, 6.375%, 7/1/41 1.73
--------------------------------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
12 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
Prices and Distributions | 3/31/17
Share Prices and Distributions
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Market Value per Common Share^
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
3/31/17 3/31/16
--------------------------------------------------------------------------------
Market Value $10.99 $13.87
--------------------------------------------------------------------------------
Premium/(Discount) (7.3)% 10.5%
--------------------------------------------------------------------------------
Net Asset Value per Common Share^
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
3/31/17 3/31/16
--------------------------------------------------------------------------------
Net Asset Value $11.86 $12.55
--------------------------------------------------------------------------------
Distributions per Common Share: 4/1/16 - 3/31/17
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
$0.74 $ -- $ --
--------------------------------------------------------------------------------
Yields
--------------------------------------------------------------------------------
3/31/17 3/31/16
--------------------------------------------------------------------------------
30-Day SEC Yield 4.56% 4.17%
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The data shown above represents past performance, which is no guarantee of
future results.
^ Net asset value and market value are published in Barron's on Saturday, The
Wall Street Journal on Monday and The New York Times on Monday and
Saturday. Net asset value and market value are published daily on the
Trust's website at us.pioneerinvestments.com.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 13
Performance Update | 3/31/17
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in market value, including
reinvestment of dividends and distributions, of a $10,000 investment made in
common shares of Pioneer Municipal High Income Advantage Trust during the
periods shown, compared to that of the Bloomberg Barclays Municipal Bond Index
and the Bloomberg Barclays U.S. Municipal High Yield Bond Index.
Average Annual Total Returns
(As of March 31, 2017)
---------------------------------------------------------------------------------
Bloomberg
Barclays
Bloomberg U.S.
Net Barclays Municipal
Asset Municipal High Yield
Value Market Bond Bond
Period (NAV) Price Index Index
---------------------------------------------------------------------------------
10 Years 5.06% 4.46% 4.33% 4.29%
5 Years 6.04 1.63 3.24 5.64
1 Year 0.28 -15.92 0.15 4.31
---------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Municipal High Bloomberg Barclays Municipal Bloomberg Barclays U.S. Municipal
Income Advantage Trust Bond Index High Yield Bond Index
3/07 $10,000 $10,000 $10,000
3/08 $ 9,349 $10,190 $ 9,351
3/09 $ 6,694 $10,422 $ 7,559
3/10 $10,560 $11,432 $ 9,699
3/11 $11,085 $11,618 $10,018
3/12 $14,271 $13,020 $11,569
3/13 $16,203 $13,703 $13,223
3/14 $16,622 $13,756 $12,976
3/15 $19,065 $14,667 $14,103
3/16 $18,401 $15,250 $14,590
3/17 $15,471 $15,274 $15,218
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV due to such factors as interest rate changes
and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Shares of closed-end funds, unlike open-end funds, are not continuously offered.
There is a one-time public offering and, once issued, shares of closed-end funds
are bought and sold in the open market through a stock exchange, and frequently
trade at prices lower than their NAV. NAV per common share is total assets less
total liabilities, which include preferred shares, divided by the number of
common shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends are
assumed to be reinvested at prices obtained through open-market purchases under
the Trust's dividend reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the sale of Trust shares.
Had these fees and taxes been reflected, performance would have been lower.
The Bloomberg Barclays Municipal Bond Index is an unmanaged, broad measure of
the municipal bond market. The Bloomberg Barclays U.S. Municipal High Yield Bond
Index is unmanaged, totals over $26 billion in market value and maintains over
1,300 securities. Municipal bonds in this index have the following requirements:
maturities of one year or greater, sub investment grade (below Baa or
non-rated), fixed coupon rate, issue date later than 12/31/90, deal size over
$20 million, maturity size of at least $3 million. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Trust returns, do not
reflect any fees, expenses or sales charges. The indices do not employ leverage.
You cannot invest directly in the indices.
14 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
Schedule of Investments | 3/31/17
----------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------------------------
TAX EXEMPT OBLIGATIONS -- 150.6%
of Net Assets (a)
Alabama -- 1.8%
2,500,000 Alabama Industrial Development Authority, Pine City
Fiber Co., 6.45%, 12/1/23 $ 2,499,850
2,500,000 Huntsville-Redstone Village Special Care Facilities
Financing Authority, Redstone Village Project, 5.5%, 1/1/43 2,482,750
------------------
$ 4,982,600
----------------------------------------------------------------------------------------------------------------------
Arizona -- 0.7%
2,000,000 City of Phoenix, AZ, Industrial Development Authority, 3rd &
Indian School Assisted Living Project, 5.4%, 10/1/36 $ 1,825,660
32,000 County of Pima, AZ, Industrial Development Authority,
Arizona Charter Schools Project, Series C, 6.75%, 7/1/31 32,086
------------------
$ 1,857,746
----------------------------------------------------------------------------------------------------------------------
California -- 18.8%
6,990,000 California County Tobacco Securitization Agency,
Asset-Backed, Gold County Funding Corp., 5.25%, 6/1/46 $ 6,717,390
38,610,000(b) California County Tobacco Securitization Agency, Capital
Appreciation, Stanislaus County, Subordinated,
Series A, 6/1/46 5,584,936
1,845,000 California Educational Facilities Authority, Stanford
University, 5.25%, 4/1/40 2,407,559
1,550,000 California Enterprise Development Authority, Sunpower
Corp., 8.5%, 4/1/31 1,697,746
5,000,000 California Pollution Control Financing Authority, 5.0%,
7/1/37 (144A) 5,011,100
3,000,000 California School Finance Authority, Classical Academies
Project, Series A, 7.375%, 10/1/43 3,481,830
1,875,000 California Statewide Communities Development Authority,
Lancer Plaza Project, 5.875%, 11/1/43 1,945,237
757,342(c) California Statewide Communities Development Authority,
Microgy Holdings Project, 9.0%, 12/1/38 8
1,500,000(d) City of Madera, CA, Irrigation Financing Authority,
6.25%, 1/1/31 1,703,400
1,500,000(d) City of Madera, CA, Irrigation Financing Authority,
6.5%, 1/1/40 1,713,510
2,695,000(e) Coast Community College District, Election, Series D,
5.0%, 8/1/31 3,229,068
1,000,000 Golden State Tobacco Securitization Corp., Asset-Backed,
Series A-1, 5.125%, 6/1/47 980,810
8,575,000(e)(f) Lehman Municipal Trust Receipts, RIB, 11.827%,
6/1/37 (144A) (AGM Insured) 8,751,388
3,140,000(f) Lehman Municipal Trust Receipts, RIB, 11.883%,
11/1/39 (144A) (AGM Insured) 3,539,000
2,500,000 Norman Y Mineta San Jose International Airport SJC,
Series B, 5.0%, 3/1/37 (AMBAC Insured) 2,502,975
1,000,000 River Islands Public Financing Authority, Community
Facilities, 5.5%, 9/1/45 1,056,230
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 15
Schedule of Investments | 3/31/17 (continued)
----------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------------------------
California -- (continued)
2,425,000(e) State of California, Various Purposes, 5.75%, 4/1/31 $ 2,650,501
465,000 Tobacco Securitization Authority of Southern California,
Series A-1, 5.125%, 6/1/46 461,833
------------------
$ 53,434,521
----------------------------------------------------------------------------------------------------------------------
Colorado -- 0.6%
1,500,000 Colorado Educational & Cultural Facilities Authority, Rocky
Mountain Classical Academy Project, 8.0%, 9/1/43 $ 1,663,605
----------------------------------------------------------------------------------------------------------------------
Connecticut -- 3.8%
2,235,000 Mohegan Tribal Finance Authority, 7.0%, 2/1/45 (144A) $ 2,330,010
7,200,000(e) State of Connecticut, Series E, 4.0%, 9/1/30 7,537,032
1,000,000 Town of Hamden, CT, Whitney Center Project, Series A,
7.75%, 1/1/43 1,025,340
------------------
$ 10,892,382
----------------------------------------------------------------------------------------------------------------------
District of Columbia -- 3.5%
2,635,000 District of Columbia Tobacco Settlement Financing Corp.,
Asset-Backed, 6.5%, 5/15/33 $ 3,012,807
6,825,000 District of Columbia Tobacco Settlement Financing Corp.,
Asset-Backed, 6.75%, 5/15/40 6,967,301
------------------
$ 9,980,108
----------------------------------------------------------------------------------------------------------------------
Florida -- 4.5%
1,500,000 Alachua County Health Facilities Authority, Terraces Bonita
Springs Project, Series A, 8.125%, 11/15/41 $ 1,725,540
1,500,000 Alachua County Health Facilities Authority, Terraces Bonita
Springs Project, Series A, 8.125%, 11/15/46 1,722,840
2,500,000(d) County of Miami-Dade, FL, Aviation Revenue, Series B,
5.5%, 10/1/41 2,763,625
5,000,000 Florida's Turnpike Enterprise, Department of Transportation,
Series A, 4.0%, 7/1/32 5,237,000
1,000,000(d) Hillsborough County Industrial Development Authority,
Various Health Facilities, 8.0%, 8/15/32 1,167,440
------------------
$ 12,616,445
----------------------------------------------------------------------------------------------------------------------
Georgia -- 4.1%
900,000 DeKalb County Georgia Hospital Authority, DeKalb Medical
Center, Inc. Project, 6.0%, 9/1/30 $ 985,707
750,000 DeKalb County Georgia Hospital Authority, DeKalb Medical
Center, Inc. Project, 6.125%, 9/1/40 812,857
8,750,000 Private Colleges & Universities Authority, Emory University,
Series A, 5.0%, 10/1/43 9,886,713
------------------
$ 11,685,277
----------------------------------------------------------------------------------------------------------------------
Guam -- 0.4%
1,000,000 Guam Department of Education, Certificates of Participation,
John F. Kennedy High School, Series A, 6.625%, 12/1/30 $ 1,049,470
----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
----------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------------------------
Idaho -- 0.7%
2,000,000 Power County Industrial Development Corp., FMC Corp.
Project, 6.45%, 8/1/32 $ 2,003,460
----------------------------------------------------------------------------------------------------------------------
Illinois -- 3.3%
417,400(f) Illinois Finance Authority, Clare Oaks Project, Series B,
4.0%, 11/15/52 $ 293,570
261,000(b) Illinois Finance Authority, Clare Oaks Project,
Series C-1, 11/15/52 9,213
52,200(b) Illinois Finance Authority, Clare Oaks Project,
Series C-2, 11/15/52 14,210
52,200(b) Illinois Finance Authority, Clare Oaks Project,
Series C-3, 11/15/52 8,931
3,000,000(c) Illinois Finance Authority, Greenfields of Geneva Project,
Series A, 8.125%, 2/15/40 1,979,700
2,500,000(c) Illinois Finance Authority, Greenfields of Geneva Project,
Series A, 8.25%, 2/15/46 1,649,750
1,450,000 Illinois Finance Authority, Memorial Health System,
5.5%, 4/1/39 1,530,852
2,000,000 Illinois Finance Authority, Northwestern Memorial Hospital, ,
Series A, 6.0%, 8/15/39 2,202,520
280,000(d) Illinois Finance Authority, Swedish Covenant, Series A,
6.0%, 8/15/38 317,002
1,530,000 Southwestern Illinois Development Authority, Village of
Sauget Project, 5.625%, 11/1/26 1,348,297
------------------
$ 9,354,045
----------------------------------------------------------------------------------------------------------------------
Indiana -- 0.6%
250,000 City of Carmel, IN, Barrington Carmel Project, Series A,
7.0%, 11/15/32 $ 271,370
750,000 City of Carmel, IN, Barrington Carmel Project, Series A,
7.125%, 11/15/42 814,830
500,000 City of Carmel, IN, Barrington Carmel Project, Series A,
7.125%, 11/15/47 541,955
------------------
$ 1,628,155
----------------------------------------------------------------------------------------------------------------------
Kansas -- 0.4%
1,000,000 Kansas Development Finance Authority, Hayes Medical
Center, Inc., Series Q, 5.0%, 5/15/35 $ 1,046,040
----------------------------------------------------------------------------------------------------------------------
Louisiana -- 5.9%
7,000,000 Jefferson Parish Hospital Service District No. 2, East
Jefferson General Hospital, 6.375%, 7/1/41 $ 7,395,290
2,500,000 Louisiana Local Government Environmental Facilities &
Community Development Authority, Westlake Chemical Corp.
Project, 6.75%, 11/1/32 2,562,100
1,650,000(d) Louisiana Public Facilities Authority, Ochsner Clinic
Foundation Project, Series A, 5.5%, 5/15/47 1,659,586
4,350,000 Louisiana Public Facilities Authority, Ochsner Clinic
Foundation Project, Series A, 5.5%, 5/15/47 4,365,747
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 17
Schedule of Investments | 3/31/17 (continued)
----------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------------------------
Louisiana -- (continued)
750,000 Opelousas Louisiana General Hospital Authority, Opelousas
General Health System Project, 5.75%, 10/1/23 $ 752,663
------------------
$ 16,735,386
----------------------------------------------------------------------------------------------------------------------
Maine -- 2.0%
1,500,000 Maine Health & Higher Educational Facilities Authority,
Maine General Medical Center, 7.5%, 7/1/32 $ 1,698,495
3,500,000 Maine Turnpike Authority, Series A, 5.0%, 7/1/42 3,906,000
------------------
$ 5,604,495
----------------------------------------------------------------------------------------------------------------------
Maryland -- 3.9%
2,000,000(d) Maryland Health & Higher Educational Facilities Authority,
Charlestown Community, 6.25%, 1/1/45 $ 2,344,300
2,225,000 Maryland Health & Higher Educational Facilities Authority,
City Neighbors, Series A, 6.75%, 7/1/44 2,427,208
1,250,000(d) Maryland Health & Higher Educational Facilities Authority,
Doctor's Community Hospital, 5.75%, 7/1/38 1,423,000
4,500,000 Maryland Health & Higher Educational Facilities Authority,
Maryland University Medical System, Series A,
5.0%, 7/1/43 4,888,395
------------------
$ 11,082,903
----------------------------------------------------------------------------------------------------------------------
Massachusetts -- 9.6%
7,000,000(b) Massachusetts Bay Transportation Authority,
Series A, 7/1/28 $ 4,932,970
2,575,000 Massachusetts Development Finance Agency, Broad
Institute, Inc., Series A, 5.25%, 4/1/37 2,873,906
975,142 Massachusetts Development Finance Agency, Linden
Ponds, Inc., Series A-1, 5.5%, 11/15/46 886,063
2,200,000 Massachusetts Development Finance Agency, Partner's
Healthcare System, Series M-4, 5.0%, 7/1/39 2,401,762
8,000,000 Massachusetts Development Finance Agency, WGBH
Foundation, Series A, 5.75%, 1/1/42 (AMBAC Insured) 10,477,840
4,325,000 Massachusetts Health & Educational Facilities Authority,
Massachusetts Institute of Technology, Series K,
5.5%, 7/1/32 5,640,232
------------------
$ 27,212,773
----------------------------------------------------------------------------------------------------------------------
Michigan -- 3.0%
2,000,000 Flint Michigan Hospital Building Authority, Hurley Medical
Center, 7.375%, 7/1/35 $ 2,190,220
560,000 Michigan Public Educational Facilities Authority, Crescent
Academy, 7.0%, 10/1/36 576,811
5,000,000 Michigan State University, Series A, 5.0%, 8/15/41 5,640,850
------------------
$ 8,407,881
----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
----------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------------------------
Minnesota -- 2.2%
2,000,000 Bloomington Port Authority, Radisson Blu Mall of America,
9.0%, 12/1/35 $ 2,111,440
3,755,000(e) State of Minnesota, Series B, 4.0%, 8/1/27 4,250,998
------------------
$ 6,362,438
----------------------------------------------------------------------------------------------------------------------
Mississippi -- 1.1%
725,000(f) Mississippi Business Finance Corp., Chevron USA, Inc.
Project, Series B, 0.91%, 12/1/30 $ 725,000
1,000,000(f) Mississippi Business Finance Corp., Chevron USA, Inc.
Project, Series C, 0.88%, 12/1/30 1,000,000
1,515,000(f) Mississippi Business Finance Corp., Chevron USA, Inc.
Project, Series C, 0.88%, 12/1/30 1,515,000
------------------
$ 3,240,000
----------------------------------------------------------------------------------------------------------------------
Montana -- 0.2%
2,445,000(c) City of Hardin, MT, Tax Allocation, Rocky Mountain Power, Inc.
Project, 6.25%, 9/1/31 $ 488,218
1,000,000(c) Two Rivers Authority, Inc., 7.375%, 11/1/27 29,680
------------------
$ 517,898
----------------------------------------------------------------------------------------------------------------------
Nevada -- 2.3%
4,500,000(d) City of Reno, NV, Renown Regional Medical Center Project,
Series A, 5.25%, 6/1/41 $ 4,534,020
2,000,000 County of Washoe, NV, Fuel Tax, 5.0%, 2/1/43 2,116,960
------------------
$ 6,650,980
----------------------------------------------------------------------------------------------------------------------
New Jersey -- 8.8%
7,500,000 New Jersey Economic Development Authority, Continental
Airlines, 5.75%, 9/15/27 $ 8,143,200
3,500,000(f) New Jersey State Turnpike Authority, RIB, 12.382%,
1/1/28 (144A) (AGM Insured) 5,844,090
15,375,000(b) New Jersey Transportation Trust Fund Authority, 12/15/27
(BHAC Insured) 10,994,662
------------------
$ 24,981,952
----------------------------------------------------------------------------------------------------------------------
New York -- 6.9%
5,000,000 New York State Dormitory Authority, Columbia University,
5.0%, 10/1/41 $ 5,585,650
2,000,000(d) New York State Dormitory Authority, Orange Medical Center,
6.125%, 12/1/29 2,167,100
7,500,000 New York State Dormitory Authority, Series C, 5.0%, 3/15/39 8,425,275
1,500,000 New York State Dormitory Authority, Trustees of Columbia
University, 5.0%, 10/1/45 1,958,760
1,357,463 Westchester County Healthcare Corp., Series A,
5.0%, 11/1/44 1,425,798
------------------
$ 19,562,583
----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 19
Schedule of Investments | 3/31/17 (continued)
----------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------------------------
Ohio -- 7.2%
3,000,000(d) Akron Bath Copley Joint Township Hospital District, Akron
General Health System, 5.0%, 1/1/31 $ 3,451,320
2,500,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 5.875%, 6/1/47 2,392,100
9,945,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 6.5%, 6/1/47 9,903,430
2,000,000(f) Ohio Air Quality Development Authority, FirstEnergy Solutions
Corp. Project, Series D, 4.25%, 8/1/29 1,833,480
2,500,000(e) State of Ohio, Common Schools, Series B, 5.0%, 6/15/29 2,876,500
------------------
$ 20,456,830
----------------------------------------------------------------------------------------------------------------------
Oregon -- 1.1%
1,000,000 Oregon Health & Science University, Series A, 5.0%, 7/1/42 $ 1,133,740
2,000,000 Oregon State Facilities Authority, Samaritan Health Services,
Series A, 5.25%, 10/1/40 2,107,620
------------------
$ 3,241,360
----------------------------------------------------------------------------------------------------------------------
Pennsylvania -- 11.1%
3,000,000(f) Beaver County Industrial Development Authority, FirstEnergy
Solutions Corp. Project, Series B, 4.25%, 10/1/47 $ 2,753,880
600,000(f) Geisinger Authority, Geisinger Health System, Series B,
0.87%, 8/1/22 600,000
1,965,000 Pennsylvania Economic Development Financing Authority,
US Airways Group, Series B, 8.0%, 5/1/29 2,209,426
5,000,000 Pennsylvania Economic Development Financing Authority,
USG Corp. Project, 6.0%, 6/1/31 4,959,550
1,555,000(d) Pennsylvania Turnpike Commission, Series D, 5.3%, 12/1/41 1,721,572
3,445,000 Pennsylvania Turnpike Commission, Series D, 5.3%, 12/1/41 3,720,565
500,000 Philadelphia Authority for Industrial Development, Greater
Philadelphia Health Action, Inc. Project, Series A,
6.625%, 6/1/50 513,725
6,000,000 Philadelphia Authority for Industrial Development, Nueva
Esperanze, Inc., 8.2%, 12/1/43 6,826,560
1,000,000 Philadelphia Authority for Industrial Development, Performing
Arts Charter School Project, 6.5%, 6/15/33 (144A) 1,046,840
2,000,000 Philadelphia Authority for Industrial Development, Performing
Arts Charter School Project, 6.75%, 6/15/43 (144A) 2,103,800
5,000,000 Philadelphia Hospitals & Higher Education Facilities
Authority, Temple University Health System, Series
A, 5.0%, 7/1/34 5,012,850
------------------
$ 31,468,768
----------------------------------------------------------------------------------------------------------------------
Puerto Rico -- 1.4%
6,500,000(c)(e) Commonwealth of Puerto Rico, Series A, 8.0%, 7/1/35 $ 4,038,125
----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
----------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------------------------
Rhode Island -- 0.8%
1,355,000(c) Central Falls Detention Facility Corp., 7.25%, 7/15/35 $ 335,295
1,500,000(d) Rhode Island Health & Educational Building Corp.,
Tockwatten Home Issue, 8.375%, 1/1/46 1,857,870
------------------
$ 2,193,165
----------------------------------------------------------------------------------------------------------------------
South Carolina -- 2.1%
4,400,000(g) Tobacco Settlement Revenue Management Authority,
Series B, 6.375%, 5/15/30 $ 5,911,752
----------------------------------------------------------------------------------------------------------------------
South Dakota -- 1.4%
4,000,000 South Dakota Health & Educational Facilities Authority,
Sanford Health, Series B, 4.0%, 11/1/44 $ 3,960,280
----------------------------------------------------------------------------------------------------------------------
Tennessee -- 1.9%
5,000,000 Johnson City Health & Educational Facilities Board,
Mountain States Health Alliance, 6.5%, 7/1/38 $ 5,523,050
----------------------------------------------------------------------------------------------------------------------
Texas -- 20.1%
1,000,000 Arlington Higher Education Finance Corp., Universal
Academy, Series A, 7.0%, 3/1/34 $ 1,003,170
1,500,000 Arlington Higher Education Finance Corp., Universal
Academy, Series A, 7.125%, 3/1/44 1,501,890
2,500,000(d) Central Texas Regional Mobility Authority, Sub Lien,
6.75%, 1/1/41 2,973,750
2,500,000(e) County of Harris, TX, Series A, 5.0%, 10/1/26 3,003,500
5,000,000(e) Goose Creek Consolidated Independent School District,
Series C, 4.0%, 2/15/26 (PSF-GTD Insured) 5,584,550
2,663,453(c) Gulf Coast Industrial Development Authority, Microgy
Holdings Project, 7.0%, 12/1/36 27
1,000,000(f) Harris County Health Facilities Development Corp., The
Methodist Hospital System, Series A-1, 0.96%, 12/1/41 1,000,000
2,155,000(f) Harris County Health Facilities Development Corp., The
Methodist Hospital System, Series A-2, 0.96%, 12/1/41 2,155,000
3,000,000 Houston Higher Education Finance Corp., St. John's School
Project, Series A, 5.0%, 9/1/38 3,230,940
3,355,000 North Texas Tollway Authority, Series A, 5.0%, 1/1/30 3,860,833
9,750,000(d) North Texas Tollway Authority, Series F, 5.75%, 1/1/33 10,104,022
1,500,000(d) Red River Health Facilities Development Corp., MRC
Crestview, Series A, 8.0%, 11/15/41 1,916,790
2,000,000(e) Richardson Independent School District, School Building,
5.0%, 2/15/38 (PSF-GTD Insured) 2,248,180
6,960,000(h) Sanger Industrial Development Corp., Texas Pellets Project,
Series B, 8.0%, 7/1/38 4,176,000
1,000,000 Tarrant County Cultural Education Facilities Finance Corp.,
Mirador Project, Series A, 8.125%, 11/15/39 799,400
750,000 Tarrant County Cultural Education Facilities Finance Corp.,
Mirador Project, Series A, 8.25%, 11/15/44 599,550
1,000,000(c) Texas Midwest Public Facility Corp., Secure Treatment Facility
Project, 9.0%, 10/1/30 749,800
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 21
Schedule of Investments | 3/31/17 (continued)
----------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------------------------
Texas -- (continued)
3,365,000 Texas Private Activity Bond Surface Transportation Corp.,
NTE Mobility Partners LLC, 7.0%, 12/31/38 $ 3,829,976
2,500,000 Travis County Health Facilities Development Corp., Longhorn
Village Project, 7.125%, 1/1/46 2,713,575
5,000,000(e) Tyler Independent School District, School Building, 5.0%,
2/15/38 (PSF-GTD Insured) 5,620,450
------------------
$ 57,071,403
----------------------------------------------------------------------------------------------------------------------
Utah -- 0.4%
1,000,000 Salt Lake City Corp., Airport Revenue, Series B, 5.0%, 7/1/36 $ 1,142,100
----------------------------------------------------------------------------------------------------------------------
Virginia -- 4.2%
2,000,000 County of Washington, VA, Industrial Development Authority,
Mountain States Health Alliance, Series C, 7.75%, 7/1/38 $ 2,166,000
4,550,000 Tobacco Settlement Financing Corp., Series B-1,
5.0%, 6/1/47 4,182,724
5,000,000 Virginia Public School Authority Revenue, 4.0%, 8/1/25
(State Aid Withholding) 5,610,550
------------------
$ 11,959,274
----------------------------------------------------------------------------------------------------------------------
Washington -- 5.6%
3,000,000 City of Seattle, WA, Water System Revenue, 4.0%, 8/1/32 $ 3,203,610
2,500,000(e) King County, Issaquah School District No. 411, 4.0%,
12/1/31 (SCH BD GTY Insured) 2,684,450
2,500,000 University of Washington, Series B, 5.0%, 6/1/29 2,929,825
1,500,000(d) Washington State Health Care Facilities Authority, Kadlec
Regional Medical Center, 5.5%, 12/1/39 1,716,795
2,000,000 Washington State Health Care Facilities Authority, VA Mason
Medical, Series A, 6.125%, 8/15/37 2,030,060
2,000,000 Washington State Health Care Facilities Authority, VA Mason
Medical, Series A, 6.25%, 8/15/42 2,030,840
1,100,000 Washington State Housing Finance Commission, Mirabella
Project, Series A, 6.75%, 10/1/47 (144A) 1,141,547
------------------
$ 15,737,127
----------------------------------------------------------------------------------------------------------------------
West Virginia -- 0.7%
2,000,000(c) City of Philippi, WV, Alderson-Broaddus College, Inc.,
Series A, 7.75%, 10/1/44 $ 1,200,000
725,000(c) West Virginia Hospital Finance Authority, Highland Hospital
Group, 9.125%, 10/1/41 670,335
------------------
$ 1,870,335
----------------------------------------------------------------------------------------------------------------------
Wisconsin -- 3.5%
5,000,000 Public Finance Authority, Glenridge Palmer Ranch, Series A,
8.25%, 6/1/46 $ 5,934,400
750,000 Public Finance Authority, Roseman University Health
Sciences Project, 5.875%, 4/1/45 768,008
The accompanying notes are an integral part of these financial statements.
22 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
----------------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------------------
Wisconsin -- (continued)
1,500,000 Public Finance Authority, SearStone CCRC Project, Series A,
8.625%, 6/1/47 (144A) $ 1,705,125
1,500,000(d) Wisconsin Health & Educational Facilities Authority, Pro
Healthcare, Inc. Group, 6.625%, 2/15/39 1,652,760
-------------------
$ 10,060,293
-----------------------------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT OBLIGATIONS
(Cost $404,999,177) $ 427,187,005
-----------------------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED
DEBT OBLIGATION -- 0.3% of Net Assets
13,000,000(f) Non-Profit Preferred Funding Trust I, Series E, 0.0%,
9/15/37 (144A) $ 765,440
-----------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED DEBT OBLIGATION
(Cost $13,000,000) $ 765,440
-----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 150.9%
(Cost -- $417,999,177) (i) $ 427,952,445
-----------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 2.0% $ 5,561,246
-----------------------------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (52.9)% $ (149,985,815)
-----------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHAREOWNERS -- 100.0% $ 283,527,876
=======================================================================================================================
(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 March 31, 2017, the value of these securities
amounted to $32,238,340, or 11.4% of total net assets applicable to
common shareowners.
RIB Residual Interest Bond is purchased in a secondary market. The
interest rate is subject to change periodically and inversely based
upon prevailing market rates. The interest rate shown is the rate at
March 31, 2017.
(a) Consists of Revenue Bonds unless otherwise indicated.
(b) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(c) Security is in default.
(d) Prerefunded bonds have been collateralized by U.S. Treasury or
U.S. Government Agency securities which are held in escrow to pay
interest and principal on the tax exempt issue and to retire the
bonds in full at the earliest refunding date.
(e) Represents a General Obligation Bond.
(f) The interest rate is subject to change periodically. The interest
rate shown is the rate at March 31, 2017.
(g) Escrow to maturity.
(h) Security is valued using fair value methods (other than prices
supplied by independent pricing services). See Notes to Financial
Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 23
Schedule of Investments | 3/31/17 (continued)
(i) At March 31, 2017, the net unrealized appreciation on investments
based on cost for federal tax purposes of $411,216,222 was as
follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 46,902,681
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (30,166,458)
------------
Net unrealized appreciation $ 16,736,223
============
Purchases and sales of securities (excluding temporary cash investments) for the
year ended March 31, 2017 aggregated $54,293,618 and $39,251,375 respectively.
The Trust is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Pioneer Investment
Management, Inc. (PIM) serves as the investment adviser, as set forth in Rule
17a-7 under the Investment Company Act of 1940, pursuant to procedures adopted
by the Board of Trustees. Under these procedures, cross trades are effected at
current market prices. During the year ended March 31, 2017, the Trust engaged
in purchases and sales pursuant to these procedures amounting to $2,764,945 and
$0, respectively resulting in a gain of $0.
Various inputs are used in determining the value of the Trust's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of March 31, 2017, in valuing
the Trust's investments.
------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------------
Tax Exempt Obligations
Texas $ -- $ 52,895,403 $4,176,000 $ 57,071,403
All Other Tax Exempt Obligations -- 370,115,602 -- 370,115,602
Municipal Collateralized Debt
Obligation -- 765,440 -- 765,440
------------------------------------------------------------------------------------------------
Total $ -- $423,776,445 $4,176,000 $427,952,445
================================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
-------------------------------------------------------------------------------------------------
Tax Exempt
Obligations
-------------------------------------------------------------------------------------------------
Balance as of 3/31/16 $ --
Realized gain (loss)(1) --
Change in unrealized appreciation (depreciation)(2) (2,001,923)
Purchases --
Sales --
Accrued discounts/premiums (2,557)
Changes between Level 3* 6,180,480
-------------------------------------------------------------------------------------------------
Balance as of 3/31/17 $ 4,176,000
=================================================================================================
(1) Realized gain (loss) on these securities is included in the net realized
gain (loss) from investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) on investments in the
Statement of Operations.
* Transfers are calculated on the beginning of period value. During the year
ended March 31, 2017, there were no transfers between Levels 1 and 2. A
security with an aggregate market value of $6,180,480 transferred from
Level 2 to Level 3 as there were no longer observable inputs available to
determine its value.
Net change in unrealized appreciation (depreciation) of investments still
held as of 3/31/17 $ (2,001,923)
-------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 25
Statement of Assets and Liabilities | 3/31/17
ASSETS:
Investments in securities, at value (cost $417,999,177) $ 427,952,445
Receivables --
Interest 6,223,799
Investment securities sold 25,000
-------------------------------------------------------------------------------------------------
Total assets $ 434,201,244
-------------------------------------------------------------------------------------------------
LIABILITIES:
Due to custodian $ 335,459
Payables --
Administration fee 63,746
Trustees' fees 478
Professional fees 39,269
Auction agent fees 7,461
Printing expense 5,524
Pricing fees 4,107
Due to affiliates 210,854
Accrued expenses 20,655
-------------------------------------------------------------------------------------------------
Total liabilities $ 687,553
-------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 6,000
shares, including dividends payable of $14,185 $ 149,985,815
-------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $ 306,599,040
Undistributed net investment income 2,395,648
Accumulated net realized loss on investments (35,420,080)
Net unrealized appreciation on investments 9,953,268
-------------------------------------------------------------------------------------------------
Net assets applicable to common shareowners $ 283,527,876
=================================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $283,527,876 / 23,899,020 common shares $ 11.86
=================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
Statement of Operations
For the Year Ended 3/31/17
INVESTMENT INCOME:
Interest $ 22,373,752
----------------------------------------------------------------------------------------------------
Total investment income $ 22,373,752
----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 2,668,184
Administrative expense 189,871
Transfer agent fees 17,326
Shareholder communications expense 21,905
Auction agent fees 150,715
Custodian fees 6,604
Professional fees 73,998
Printing expense 9,330
Trustees' fees 17,501
Pricing fees 21,992
Miscellaneous 120,776
----------------------------------------------------------------------------------------------------
Total expenses $ 3,298,202
----------------------------------------------------------------------------------------------------
Net investment income $ 19,075,550
----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments: $ (217,084)
Change in net unrealized appreciation (depreciation)
on investments: (16,216,394)
----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ (16,433,478)
----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM
NET INVESTMENT INCOME: $ (1,559,147)
----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 1,082,925
====================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 27
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------------
Year Ended Year Ended
3/31/17 3/31/16
--------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 19,075,550 $ 19,744,618
Net realized gain (loss) on investments (217,084) 463,301
Change in net unrealized appreciation (depreciation)
on investments (16,216,394) (191,741)
Distributions to preferred shareowners from net
investment income (1,559,147) (392,002)
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 1,082,925 $ 19,624,176
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income and previously undistributed
net investment income ($0.74 and $0.96 per
share, respectively) $ (17,540,094) $ (22,682,243)
--------------------------------------------------------------------------------------------------
Total distributions to common shareowners $ (17,540,094) $ (22,682,243)
--------------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 967,385 $ 1,744,907
--------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
common shareowners from Trust share
transactions $ 967,385 $ 1,744,907
--------------------------------------------------------------------------------------------------
Net decrease in net assets applicable to
common shareowners $ (15,489,784) $ (1,313,160)
--------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of year 299,017,660 300,330,820
--------------------------------------------------------------------------------------------------
End of year $ 283,527,876 $ 299,017,660
--------------------------------------------------------------------------------------------------
Undistributed net investment income $ 2,395,648 $ 2,160,740
==================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
3/31/17 3/31/16 3/31/15 3/31/14 3/31/13
--------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 12.55 $ 12.68 $ 12.07 $ 13.54 $ 12.87
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 0.80 $ 0.83 $ 0.95 $ 1.08 $ 1.07
Net realized and unrealized gain (loss) on investments (0.68) 0.02 0.81 (1.40) 0.76
--------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareowners from:
Net investment income $ (0.07) $ (0.02) $ (0.01) $ (0.01) $ (0.02)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.05 $ 0.83 $ 1.75 $ (0.33) $ 1.81
--------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income and previously undistributed
net investment income $ (0.74) $ (0.96)* $ (1.14)* $ (1.14)* $ (1.14)*
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.69) $ (0.13) $ 0.61 $ (1.47) $ 0.67
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.86 $ 12.55 $ 12.68 $ 12.07 $ 13.54
--------------------------------------------------------------------------------------------------------------------------
Market value, end of period $ 10.99 $ 13.87 $ 15.48 $ 14.60 $ 15.51
==========================================================================================================================
Total return at net asset value (b) 0.28% 6.61% 13.65% (2.78)% 13.51%
Total return at market value (b) (15.92)% (3.48)% 14.70% 2.59% 13.53%
Ratios to average net assets of common shareowners:
Total expenses (c) 1.12% 1.21% 1.22% 1.19% 1.23%
Net investment income before preferred share distributions 6.47% 6.72% 7.61% 8.81% 8.08%
Preferred share distributions 0.53% 0.13% 0.07% 0.08% 0.14%
Net investment income available to common shareowners 5.94% 6.59% 7.54% 8.73% 7.94%
Portfolio turnover 9% 11% 20% 24% 14%
Net assets of common shareowners, end of period (in thousands) $283,528 $299,018 $300,331 $284,208 $316,874
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 29
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
3/31/17 3/31/16 3/31/15 3/31/14 3/31/13
---------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) $150,000 $150,000 $150,000 $150,000 $150,000
Asset coverage per preferred share, end of period $ 72,252 $ 74,837 $ 75,055 $ 72,367 $ 77,813
Average market value per preferred share (d) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per preferred share $ 24,998 $ 25,001 $ 25,000 $ 25,001 $ 25,001
======================================================================================================================
* The amount of distributions made to shareowners during the year were in
excess of the net investment income earned by the Trust during the year.
The Trust has accumulated undistributed net investment income which is part
of the Trust's NAV. A portion of the accumulated net investment income was
distributed to shareowners during the year.
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Total investment return is calculated assuming a purchase of common shares
at the current net asset value or market value on the first day and a sale
at the current net asset value or market value on the last day of the
periods reported. Dividends and distributions, if any, are assumed for
purposes of this calculation to be reinvested at prices obtained under the
Trust's dividend reinvestment plan. Total investment return does not
reflect brokerage commissions. Past performance is not a guarantee of
future results.
(c) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(d) Market value is redemption value without an active market.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
Notes to Financial Statements | 3/31/17
1. Organization and Significant Accounting Policies
Pioneer Municipal High Income Advantage Trust (the Trust) was organized as a
Delaware statutory trust on August 6, 2003. Prior to commencing operations on
October 20, 2003, the Trust had no operations other than matters relating to its
organization and registration as a diversified, closed-end management investment
company under the Investment Company Act of 1940, as amended. The investment
objective of the Trust is to seek a high level of current income exempt from
regular federal income tax, and the Trust may, as a secondary objective, also
seek capital appreciation to the extent that it is consistent with its primary
investment objective.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles (U.S. GAAP) that require the management
of the Trust to 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 income,
expenses and gain or loss on investments during the reporting period. Actual
results could differ from those estimates.
The Trust is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Trust in the preparation of its financial
statements:
A. Security Valuation
The net asset value of the Trust is computed once daily, on each day the
New York Stock Exchange (NYSE) is open, as of the close of regular trading
on the NYSE.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 31
pricing services are unable to supply prices, or when prices or market
quotations are considered to be unreliable, the value of that security may
be determined using quotations from one or more broker-dealers.
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such funds' net asset value. Repurchase
agreements are valued at par. Cash may include overnight time deposits at
approved financial institutions.
Securities for which independent pricing services or broker-dealers are
unable to supply prices or for which market prices and/or quotations are
not readily available or are considered to be unreliable are valued by a
fair valuation team comprised of certain personnel of Pioneer Investment
Management, Inc. (PIM), the Trust's investment adviser and wholly owned
indirect subsidiary of UniCredit S.p.A. (UniCredit), pursuant to procedures
adopted by the Trust's Board of Trustees. PIM's fair valuation team uses
fair value methods approved by the Valuation Committee of the Board of
Trustees. PIM's fair valuation team is responsible for monitoring
developments that may impact fair valued securities and for discussing and
assessing fair values on an ongoing basis, and at least quarterly, with the
Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Trust may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Trust's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Trust's securities may differ significantly from exchange prices and
such differences could be material.
At March 31, 2017, one security was valued using fair value methods (in
addition to securities valued using prices supplied by independent pricing
services, broker-dealers or using third party insurance pricing model)
representing 1.5% of net assets. The value of this fair valued security is
$4,176,000.
B. Investment Income and Transactions
Interest income, including interest on income-bearing cash accounts, is
recorded on an accrual basis, net of unrecoverable foreign taxes withheld
at the applicable country rates.
32 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
Discounts and premiums on purchase prices of debt securities are accreted
or amortized, respectively, daily, into interest income on an effective
yield to maturity basis with a corresponding increase or decrease in the
cost basis of the security. Premiums and discounts related to certain
mortgage-backed securities are amortized or accreted in proportion to the
monthly paydowns.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Federal Income 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 net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no federal income tax provision is required. As
of March 31, 2017, the Trust did not accrue any interest or penalties with
respect to uncertain tax positions, which if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax returns filed
within the prior three years remain subject to examination by federal and
state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary overdistributions for financial
statement and tax purposes. Capital accounts within the financial
statements are adjusted for permanent book/tax differences to reflect tax
character, but are not adjusted for temporary differences.
At March 31, 2017, The Trust reclassified $17,813,537 to decrease paid-in
capital, $258,599 to increase undistributed net investment income and
$17,554,938 to decrease accumulated net realized loss on investments to
reflect permanent book/tax differences. These adjustments have no impact on
the net assets or results of operations.
At March 31, 2017, the Trust was permitted to carry forward $1,490,049 of
short-term capital losses and $19,270,346 of long-term capital losses
without limitation. Additionally, at March 31, 2017, the Trust had a net
capital loss carry forward of $20,902,044 of which the following amounts
will expire between 2018 and 2019 if not utilized: $18,242,633 in 2018, and
$2,659,411 in 2019. Since unlimited losses are required to be used first,
loss carry forwards that are subject to expiration may be more likely to
expire unused.
The Trust has elected to defer $599,676 of short-term capital losses
recognized between October 1, 2016 and March 31, 2017, to its fiscal year
ending March 31, 2018.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 33
The tax character of distributions paid to shareowners during the years
ended March 31, 2017 and March 31, 2016 were as follows:
------------------------------------------------------------------------------------
2017 2016
------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $18,477,950 $22,572,825
Ordinary income 621,291 501,420
------------------------------------------------------------------------------------
Total $19,099,241 $23,074,245
====================================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at March 31, 2017:
-------------------------------------------------------------------------------------
2017
-------------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 224,502
Capital loss carryforward (41,662,439)
Late year loss deferrals (599,676)
Other book/tax temporary differences 6,782,955
Tax-exempt spillback 2,230,226
Unrealized appreciation 9,953,268
-------------------------------------------------------------------------------------
Total $(23,071,164)
=====================================================================================
The difference between book-basis and tax-basis unrealized appreciation/
depreciation is primarily attributable to the realization for tax purposes
of unrealized gains on investments in passive foreign investment companies,
the book/tax differences in the accrual of income on securities in default,
the difference between book and tax amortization methods and discounts on
fixed income securities.
D. Automatic Dividend Reinvestment Plan
All shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional shares of
the Trust in lieu of cash. Shareowners may elect not to participate in the
Plan. Shareowners not participating in the Plan receive all dividends and
capital gain distributions in cash. Participation in the Plan is completely
voluntary and may be terminated or resumed at any time without penalty by
notifying American Stock Transfer & Trust Company, the agent for
shareowners in administering the Plan (the Plan Agent), in writing prior to
any dividend record date; otherwise such termination or resumption will be
effective with respect to any subsequently declared dividend or other
distribution.
34 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate in
the Plan on the shareowner's behalf. If the firm or nominee does not offer
the Plan, dividends will be paid in cash to the shareowner of record. A
firm or nominee may reinvest a shareowner's cash dividends in shares of the
Trust on terms that differ from the terms of the Plan.
Whenever the Trust declares a dividend on shares payable in cash,
participants in the Plan will receive the equivalent in shares acquired by
the Plan Agent either (i) through receipt of additional unissued but
authorized shares from the Trust or (ii) by purchase of outstanding shares
on the New York Stock Exchange or elsewhere. If, on the payment date for
any dividend, the net asset value per share is equal to or less than the
market price per share plus estimated brokerage trading fees (market
premium), the Plan Agent will invest the dividend amount in newly issued
shares. The number of newly issued shares to be credited to each account
will be determined by dividing the dollar amount of the dividend by the net
asset value per share on the date the shares are issued, provided that the
maximum discount from the then current market price per share on the date
of issuance does not exceed 5%. If, on the payment date for any dividend,
the net asset value per share is greater than the market value (market
discount), the Plan Agent will invest the dividend amount in shares
acquired in open-market purchases. There are no brokerage charges with
respect to newly issued shares. However, each participant will pay a pro
rata share of brokerage trading fees incurred with respect to the Plan
Agent's open-market purchases. Participating in the Plan does not relieve
shareowners from any federal, state or local taxes which may be due on
dividends paid in any taxable year. Shareowners holding Plan shares in a
brokerage account may be able to transfer the shares to another broker and
continue to participate in the Plan.
E. Risks
The value of securities held by the Trust may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
Interest rates in the U.S. recently have been historically low, so the
Trust faces a heightened risk that interest rates may rise. A general rise
in interest rates may cause investors to move out of fixed income
securities on a large scale, which could adversely affect the price and
liquidity of fixed income securities.
Pioneer Municipal High Income Advantage Trust | Annual Report |3/31/17 35
The municipal bond market can be susceptible to unusual volatility,
particularly for lower-rated and unrated securities. Liquidity can be
reduced unpredictably in response to overall economic conditions or credit
tightening. Municipal issuers may be adversely affected by rising health
care costs, increasing unfunded pension liabilities, and by the phasing out
of federal programs providing financial support. Unfavorable conditions and
developments relating to projects financed with municipal securities can
result in lower revenues to issuers of municipal securities, potentially
resulting in defaults. Issuers often depend on revenues from these projects
to make principal and interest payments. The value of municipal securities
can also be adversely affected by changes in the financial condition of one
or more individual municipal issuers or insurers of municipal issuers,
regulatory and political developments, tax law changes or other legislative
actions, and by uncertainties and public perceptions concerning these and
other factors. Municipal securities may be more susceptible to down-grades
or defaults during recessions or similar periods of economic stress. In
recent periods, an increasing number of municipal issuers in the United
States have defaulted on obligations and commenced insolvency proceedings.
Financial difficulties of municipal issuers may continue or get worse. To
the extent the Trust invests significantly in a single state, including
California, Pennsylvania and Texas, or in securities the payments on which
are dependent upon a single project or source of revenues, or that relate
to a sector or industry, including health care facilities, education,
transportation, special revenues and pollution control, the Trust will be
more susceptible to associated risks and developments.
2. Management Agreement
PIM manages the Trust's portfolio. Management fees payable under the Trust's
Advisory Agreement with PIM are calculated daily at the annual rate of 0.60% of
the Trust's average daily managed assets. "Managed assets" means (a) the total
assets of the Trust, including any form of investment leverage, minus (b) all
accrued liabilities incurred in the normal course of operations, which shall not
include any liabilities or obligations attributable to investment leverage
obtained through (i) indebtedness of any type (including, without limitation,
borrowing through a credit facility or the issuance of debt securities), (ii)
the issuance of preferred stock or other similar preference securities, and/or
(iii) any other means. For the year ended March 31, 2017, the net management fee
was 0.60% of the Trust's average daily managed assets, which was equivalent to
0.91% of the Trust's average daily net assets.
36 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
In addition, under PIM's management and administration agreements, certain other
services and costs are paid by PIM and reimbursed by the Trust. At March 31,
2017, $274,600 was payable to PIM related to management costs, administrative
costs and certain other services is included in "Due to affiliates" and
"Administration fee" on the Statement of Assets and Liabilities.
3. Transfer Agent
American Stock Transfer & Trust Company (AST) serves as the transfer agent with
respect to the Trust's common shares. The Trust pays AST an annual fee, as is
agreed to from time to time by the Trust and AST, for providing such services.
In addition, the Trust reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings and outgoing calls.
Deutsche Bank Trust Company Americas (Deutsche Bank) is the transfer agent,
registrar, dividend-paying agent and auction agent with respect to the Trust's
auction preferred shares (APS). The Trust pays Deutsche Bank an annual fee, as
is agreed to from time to time by the Trust and Deutsche Bank, for providing
such services.
4. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the year ended March
31, 2017 and the year ended March 31, 2016 were as follows:
-----------------------------------------------------------------------------------------
3/31/17 3/31/16
-----------------------------------------------------------------------------------------
Shares outstanding at beginning of year 23,822,909 23,686,670
Reinvestment of distributions 76,111 136,239
-----------------------------------------------------------------------------------------
Shares outstanding at end of year 23,899,020 23,822,909
=========================================================================================
The Trust may classify or reclassify any unissued shares of beneficial interest
into one or more series of preferred shares of beneficial interest. As of March
31, 2017, there were 6,000 APS as follows: Series A -- 3,000 and Series B --
3,000.
Dividends on Series A and Series B are cumulative at a rate which is to be reset
every seven days based on the results of an auction. An auction fails if there
are more APS offered for sale than there are buyers. When an auction fails, the
dividend rate for the period will be the maximum rate on the auction dates
described in the prospectus for the APS. Preferred shareowners are not able to
sell their APS at an auction if the auction fails. Since February 2008, the
Trust's
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 37
auctions related to the APS have failed. The maximum rate for each series is
125% of the 7 day commercial paper rate or adjusted Kenny rate. Dividend rates
on APS ranged from 0.400% to 1.676% during the year ended March 31, 2017.
The Trust may not declare dividends or make other distributions on its common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, the Trust does not comply with the asset coverage
ratios described in the prospectus for the APS.
The APS are redeemable at the option of the Trust, in whole or in part, on any
dividend payment date at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared. The APS are also subject to mandatory
redemption at $25,000 per share plus any accumulated or unpaid dividends,
whether or not declared, if certain requirements relating to the composition of
the assets and liabilities of the Trust as set forth in the Statement of
Preferences are not satisfied.
The holders of APS have voting rights equal to the holders of the Trust's common
shares (one vote per share) and will vote together with holders of the common
shares as a single class. Holders of APS are also entitled to elect two of the
Trust's Trustees. In addition, the Investment Company Act of 1940, as amended,
requires that along with approval by shareowners that might otherwise be
required, the approval of the holders of a majority of any outstanding preferred
shares, voting separately as a class, would be required to (a) adopt any plan of
reorganization that would adversely affect the preferred shares and (b) take any
action requiring a vote of security holders, including, among other things,
changes in the Trust's subclassification as a closed-end management investment
company or changes in its fundamental investment restrictions.
5. Subsequent Events
A monthly dividend was declared on April 4, 2017 from undistributed and
accumulated net investment income of $0.0475 per common share payable April 28,
2017, to common shareowners of record on April 19, 2017.
Subsequent to March 31, 2017, dividends declared and paid on preferred shares
totaled $332,360 in aggregate for the two outstanding preferred share series
through May 18, 2017.
38 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of
Pioneer Municipal High Income Advantage Trust:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Municipal High Income Advantage Trust
(the "Trust"), as of March 31, 2017, and the related statement of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended and the financial highlights for each of the
three years in the period then ended. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights for the years ended March 31,
2014, and 2013, were audited by other auditors. Those auditors expressed an
unqualified opinion on those financial statements and financial highlights in
their report dated May 22, 2014.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Trust
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Trust's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of March 31, 2017, by correspondence with the custodian.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Municipal High Income Advantage Trust as of March 31, 2017, and the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended and the financial highlights
for each of the three years in the period then ended, in conformity with
accounting principles generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
May 26, 2017
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 39
ADDITIONAL INFORMATION
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its shares
in the open market.
Pioneer Investment Management, Inc. (the "Adviser"), the Trust's investment
adviser, is currently an indirect, wholly owned subsidiary of UniCredit S.p.A.
("UniCredit"). On December 12, 2016, UniCredit announced that it has entered
into a binding agreement for the sale of its Pioneer Investments business, which
includes the Adviser, to Amundi (the "Transaction"). Amundi is headquartered in
Paris, France, and, as of September 30, 2016, had more than $1.1 trillion in
assets under management worldwide. The closing of the Transaction is expected to
happen in 2017, subject to certain regulatory and antitrust approvals, and other
conditions.
Under the Investment Company Act of 1940, the closing of the Transaction will
cause the Trust's current investment advisory agreement with the Adviser to
terminate. Accordingly, the Trust's Board of Trustees has approved a new
investment advisory agreement for the Trust, which will be submitted to the
shareholders of the Trust for their approval.
Change in Independent Registered Public Accounting Firm
Deloitte & Touche LLP, the Trust's independent registered public accounting
firm, has informed the Board that it will no longer be independent with respect
to the Trust upon the completion of the Transaction and, accordingly, that it
intends to resign as the Trust's independent registered public accounting firm
upon the completion of the Transaction. The Board will engage a new independent
registered public accounting firm for the Trust upon the completion of the
Transaction.
During the periods that Deloitte & Touche LLP has served as the Trust's
independent registered public accounting firm, including the Trust's two most
recent fiscal years, Deloitte & Touche LLP's reports on the Trust's financial
statements have not contained an adverse opinion or disclaimer of opinion and
have not been qualified or modified as to uncertainty, audit scope or accounting
principles. Further, there have been no disagreements with Deloitte & Touche LLP
on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which, if not resolved to the
satisfaction of Deloitte & Touche LLP, would have caused Deloitte & Touche LLP
to make reference to the subject matter of the disagreement in connection with
its report on the financial statements. In addition, there have been no
reportable events of the kind described in Item 304(a)(1)(v) of Regulation S-K
under the Securities Exchange Act of 1934.
40 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
Approval of New and Interim Management Agreements
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Municipal High Income Advantage Trust (the Trust) pursuant to an
investment management agreement between PIM and the Trust.
PIM is the principal U.S. asset management business of Pioneer Investments, a
group of companies owned by Pioneer Global Asset Management S.p.A. ("PGAM").
PGAM is a wholly-owned subsidiary of UniCredit S.p.A. ("UniCredit"). UniCredit
and PGAM have entered into a binding agreement to sell Pioneer Investments,
including PIM, to Amundi (the "Transaction"). Upon the consummation of the
transaction, PIM will become an indirect wholly-owned subsidiary of Amundi and
Amundi's wholly-owned subsidiary, Amundi USA, Inc. The closing of the
Transaction is expected to happen in 2017.
Under the Investment Company Act of 1940, the Trust's current investment
management agreement (the "Current Management Agreement") will terminate
automatically upon the consummation of the Transaction. In order for PIM to
continue to manage the Trust after the consummation of the Transaction, the
Trustees and shareholders of the Trust must approve a new investment management
agreement for the Trust (the "New Management Agreement"). As discussed below,
the Board of Trustees of the Trust approved the New Management Agreement at a
meeting held on March 6-7, 2017. The New Management Agreement has been submitted
to the shareholders of the Trust for their approval at a meeting to be held on
June 13, 2017. If the shareholders of the Trust do not approve the New
Management Agreement and the Transaction is completed, an interim investment
management agreement between PIM and the Trust (the "Interim Management
Agreement") will take effect upon the closing of the Transaction. The Board of
Trustees of the Trust also approved the Interim Management Agreement at the
March 6-7, 2017 meeting.
Board Evaluation of the New and Interim Management Agreements
The Board evaluated the Transaction and the New Management Agreement and Interim
Management Agreement for the Trust. In connection with their evaluation of the
Transaction and the New Management Agreement for the Trust, the Trustees
requested such information as they deemed reasonably necessary, including: (a)
the structure of the Transaction and the strategy underlying the Transaction;
(b) the anticipated benefits of the Transaction to the Trust and its
shareholders; (c) the post-Transaction plans for PIM, including Amundi's plans
for integration of Pioneer Investments and PIM with its existing asset
management businesses and plans for the future development
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 41
of PIM; (d) the effect of the Transaction on the ongoing services provided to
the Trust, including the need to select a new independent registered public
accounting firm for the Trust, and any plans to modify the operations of the
Trust; (e) the stability and continuity of PIM's management and key employees,
including compensation and benefits to PIM's key employees, and retention plans
and incentive plan structure; (f) the post-Transaction indebtedness and
financial resources of PIM; (g) Amundi's legal and operational structure, its
principal shareholders and senior management, its investment management, risk
management, administrative, legal and compliance functions; (h) certain
regulatory matters relating to Amundi's affiliates; and (i) Amundi's commitment
to the United States, including the role of PIM in the larger Amundi business.
The Trustees also requested and obtained the following information in connection
with their evaluation of the Transaction and the New Management Agreement for
the Trust: (i) memoranda provided by Fund counsel that summarized the legal
standards and other considerations that are relevant to the Trustees in their
deliberations regarding the New Management Agreement; (ii) the qualifications of
the investment management teams for the Trust, as well as the level of
investment by the Trust's portfolio managers in the Trust; (iii) the Trust's
management fees and total expense ratios, the financial statements of PIM and
its pre- and post-Transaction parent companies, profitability analyses from PIM,
and analyses from PIM as to possible economies of scale; (iv) the profitability
of the institutional business of PIM and PIM's affiliate, Pioneer Institutional
Asset Management, Inc. ("PIAM") as compared to that of PIM's fund management
business; and (v) the differences between the fees and expenses of the Trust and
the fees and expenses of PIM's and PIAM's institutional accounts, as well as the
different services provided by Adviser to the Trust and by PIM and PIAM to the
institutional accounts. In addition, the Trustees considered the information
provided at regularly scheduled meetings throughout the year regarding the
Trust's performance and risk attributes, including through meetings with
investment management personnel, and took into account other information related
to the Trust provided to the Trustees at regularly scheduled meetings. The
Trustees also considered information they had received in their review of the
continuance of the Current Management Agreement for the Trust in September 2016.
At meetings held on January 9, 2017 and January 10, 2017, the Trustees met with
representatives of Amundi and PGAM, including separate meetings of the Trustees
who are not "interested persons" of the Fund Complex ("Independent Trustees")
and counsel with representatives of Amundi and PGAM, and subsequently with
representatives of Amundi. In those meetings, they received an extensive
presentation from the representatives of Amundi,
42 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
including the chief executive officer of Amundi, describing Amundi's background
and history, its global asset management activities, the growth of its business,
and its status as the largest asset management firm in Europe and one of the
largest globally; its capital structure and financial resources, including
information as to the financing of the Transaction; its principal investors,
including its majority investor Credit Agricole S.A., and Credit Agricole's
long-term commitment to the asset management business; the philosophy and
strategy underlying the Transaction and the complementarity of Amundi's and
Pioneer Investments' respective asset management businesses; Amundi's various
operating and investment committees and how they would likely interact with PIM;
the proposed integration process, including the progress to date and the
establishment of various integration work streams; Amundi's plans for management
of PIM; Amundi's philosophy as to compensation of key employees and its general
intentions with respect to incentive plans for key employees of PIM; Amundi's
preliminary plans to achieve cost and other synergies; and opportunities to
further develop the business of PIM and PIAM, including in the area of
institutional asset management, and how that would benefit shareholders of the
Pioneer Funds.
In those meetings, the representatives of Amundi confirmed their intention that
the Chief Executive Officer and Chief Investment Officer of PIM would remain in
their current positions, and confirmed that they do not currently foresee major
changes in the day-to-day investment management operations of PIM with respect
to the Trust as a direct result of the Transaction. They discussed incentive
arrangements for key personnel that would continue after the closing of the
Transaction and their plans to establish a new long-term incentive plan
following the closing. They also generally discussed ways in which PIM could
potentially draw on the expanded global resources of Amundi post-Transaction. At
those meetings, the Independent Trustees identified certain areas to which they
requested further information, including as to trading and execution of
securities transactions, research and portfolio management and potential changes
in investment process, particularly where asset classes managed by PIM would
overlap with asset classes managed by Amundi, the continued availability of
resources currently at Pioneer Investments or elsewhere within Amundi to assist
in management of certain Funds, and any anticipated significant changes in
operations. The Independent Trustees considered the uncertainty as to whether
the Trust's independent registered public accounting firm could continue to act
in that capacity after the closing of the Transaction. The Independent Trustees
also met with counsel to review the information they had received to date and to
discuss next steps.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 43
Subsequently, the Trustees received further information from Amundi, including
written responses to questions raised by the Independent Trustees, and received
from PIM the information requested of it. The Independent Trustees reviewed the
information provided with counsel at telephonic meetings held on February 16,
2017 and February 27, 2017. The Trustees held a special in-person Board meeting
on March 6-7, 2017 for further consideration of the New Management Agreements,
the Interim Management Agreements and the Transaction. The Trustees met again
with senior executives of Amundi at the March 6-7, 2017 meeting.
At the March 6-7, 2017 meeting, based on their evaluation of the information
provided by PIM and Amundi, the Trustees including the Independent Trustees
voting separately, approved the New Management Agreement and the Interim
Management Agreement for the Trust. In considering the New Management Agreement
for the Trust, the Trustees considered various factors that they determined were
relevant, including the factors described below. The Trustees did not identify
any single factor as the controlling factor in their determinations. The
Trustees considered the same factors with respect to the Interim Management
Agreement for the Trust.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Trust and that are expected to be provided by PIM to
the Trust following the consummation of the Transaction. The Trustees reviewed
the terms of the New Management Agreement, and noted that such terms are
substantially similar to the terms of the Current Management Agreement, except
for different execution dates, effective dates and termination dates. The
Trustees reviewed PIM's investment approach for the Trust and its research
process. The Trustees considered the resources of PIM and the personnel of PIM
who provide investment management services to the Trust. They also reviewed the
amount of non-investment resources and personnel of PIM that are involved in
PIM's services to the Trust, including PIM's compliance and legal resources and
personnel. The Trustees noted the substantial attention and high priority given
by PIM's senior management to the Pioneer Fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Trust's service providers and provides the Trust with personnel (including Fund
officers) and other resources that are necessary for the Trust's business
management and operations and that PIM would continue to provide those
investment management and research services and resources to the Trust following
the consummation of the Transaction. The Trustees also considered that, as
administrator, PIM would continue to be responsible for the
44 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
administration of the Trust's business and other affairs. The Trustees
considered the fees to be paid to PIM for the provision of administration
services.
The Trustees considered that Deloitte & Touche LLP has informed the Board that
it will no longer be independent with respect to the Trust upon the completion
of the Transaction and, accordingly, that it will be necessary for the Board to
engage a new independent registered public accounting firm for the Trust.
The Trustees considered that the Transaction is not expected to have a material
adverse impact on the nature, scope and overall quality of services provided to
the Trust and its shareholders, including investment management, risk
management, administrative, compliance, legal and other services, as a result of
the Transaction.
In that regard, the Trustees considered that Amundi is one of the largest asset
managers globally, and that PIM may have access to additional research and
portfolio management capabilities as a result of the Transaction and that PIM,
as part of Amundi, is expected to have an enhanced global presence that may
contribute to an increase in the overall scale and resources of PIM.
Furthermore, in considering whether the Transaction would be expected to have a
material adverse impact on the nature, scope and overall quality of services
provided to the Trust and its shareholders, the Trustees considered the
statements by representatives of Amundi that they expect the Chief Executive
Officer and Chief Investment Officer of PIM to remain in their current positions
and that they do not currently foresee major changes in the day-to-day
investment management operations of PIM as a direct result of the Transaction,
or the risk management, legal or compliance services provided by PIM, with
respect to the Trust. They further considered the current incentive arrangements
for key personnel of PIM that would continue after the closing of the
Transaction. They also noted Amundi's stated intention to establish a new
long-term incentive plan following the closing.
The Trustees also took into account their experience in evaluating the proposed
combination of Pioneer Investments and Santander Asset Management, which was
announced in September, 2014 and abandoned in July, 2016. In light of, among
other things, this experience, the Trustees determined that they were not able
to identify any realistic alternatives to approving the New Management Agreement
that would provide the level of services to the Trust and its shareholders that
are expected to be provided by PIM after the closing of the Transaction.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 45
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that PIM would continue to provide to the Trust under
the New Management Agreement would be satisfactory and consistent with the terms
of the New Management Agreement.
Performance of the Trust
In considering the Trust's performance, the Trustees regularly reviewed and
discussed throughout the year data prepared by PIM and information comparing the
Trust's performance with the performance of its peer group of funds, as
classified by each of Morningstar, Inc. (Morningstar) and Lipper, and the
performance of the Trust's benchmark index. They also discussed the Trust's
performance with PIM on a regular basis.
The Trustees' regular reviews and discussions were factored into the Trustees'
deliberations concerning the approval of the New Management Agreement.
Management Fee and Expenses
The Trustees noted that the stated management fees to be paid by the Trust are
identical under the Current Management Agreement and the New Management
Agreement. The Trustees considered information showing the fees and expenses of
the Trust in comparison to the management fees and expense ratios of its peer
group of funds as classified by Morningstar and also to the expense ratios of a
peer group of funds selected on the basis of criteria determined by the
Independent Trustees for this purpose using data provided by Strategic Insight
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Trust's shareowners. To the extent applicable, the Trustees
also considered the impact of transfer agency, sub-transfer agency, and other
non-management fee expenses on the expense ratios of the Trust. The Trustees
noted that they separately review the Trust's transfer agency, sub-transfer
agency and intermediary arrangements and that the results of the most recent
such review were considered in the consideration of the Trust's expense ratio.
The Trustees considered that the Trust's management fee (based on managed
assets) as of September 30, 2016 was in the fourth quintile relative to the
management fees paid by other funds in its Strategic Insight peer group for the
comparable period. The Trustees considered that the Trust's management fee was
approximately five basis points higher than the median management fee paid by
other funds in its Morningstar category. The Trustees considered that the
expense ratio (based on managed assets) of the Trust's common shares as of
September 30, 2016 was in the third quintile relative to its Strategic Insight
peer group for the comparable period.
46 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
The Trustees reviewed management fees charged by PIM and PIAM to institutional
and other clients, including publicly offered European funds sponsored by PIM's
affiliates, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Trust and PIM's and
PIAM's costs in providing services to the other clients and considered the
differences in management fees and profit margins for fund and non-fund
services. In evaluating the fees associated with PIM's and PIAM's client
accounts, the Trustees took into account the respective demands, resources and
complexity associated with the Trust and other client accounts. The Trustees
noted that in some instances the fee rates for those clients were lower than the
management fee for the Trust and considered that, under both the Current
Management Agreement and the New Management Agreement, PIM would perform
additional services for the Trust that it does not provide to those other
clients or services that are broader in scope, including oversight of the
Trust's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Trust is subject. The Trustees
also considered the different risks associated with PIM's management of the
Trust and PIM's and PIAM's management of the other client accounts.
The Trustees concluded that the management fee payable by the Trust to PIM was
reasonable in relation to the nature and quality of the services to be provided
by PIM.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Trust,
including the methodology used by PIM in allocating certain of its costs to the
management of the Trust. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Trust. They further reviewed the
financial results, including the profit margins, realized by PIM and PIAM from
non-fund businesses. The Trustees considered PIM's profit margins with respect
to the Trust in comparison to the limited industry data available and noted that
the profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Trust
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with the Trust and Fund shareholders. The Trustees
recognize that economies of scale are difficult to identify and quantify, and
that, among other factors that may be relevant, are
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 47
the following: fee levels, expense subsidization, investment by PIM in research
and analytical capabilities and PIM's commitment and resource allocation to the
Trust. The Trustees noted that profitability also may be an indicator of the
availability of any economies of scale, although profitability may vary for
other reasons including due to reductions in expenses. The Trustees concluded
that economies of scale, if any, were being appropriately shared with the Trust.
Other Benefits
The Trustees considered the other benefits that PIM enjoys from its relationship
with the Trust. The Trustees considered the character and amount of fees paid or
to be paid by the Trust, other than under the Current Management Agreement or
the New Management Agreement, for services provided by PIM and its affiliates.
The Trustees further considered the revenues and profitability of PIM's
businesses other than the Fund business. To the extent applicable, the Trustees
also considered the benefits to the Trust and to PIM and its affiliates from the
use of "soft" commission dollars generated by the Trust to pay for research and
brokerage services.
The Trustees considered that following the completion of the Transaction, PIM
will be the principal U.S. asset management business of Amundi, and that
Amundi's worldwide asset management business will manage over $1.38 trillion in
assets (including the Pioneer Funds). This may create opportunities for PIM,
PIAM and Amundi that derive from PIM's relationships with the Trust, including
Amundi's ability to market the services of PIM globally. The Trustees noted that
PIM may have access to additional research capabilities as a result of the
Transaction and Amundi's enhanced global presence that may contribute to an
increase of the overall scale of PIM. The Trustees considered that PIM and the
Trust are expected to receive reciprocal intangible benefits from the
relationship, including mutual brand recognition and, for the Trust, direct and
indirect access to the resources of a large global asset manager. The Trustees
concluded that any such benefits received by PIM as a result of its relationship
with the Trust were reasonable.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including the Independent Trustees, concluded that the New Management
Agreement and the Interim Management Agreement for the Trust, including the fees
payable thereunder, were fair and reasonable and voted to approve the New
Management Agreement and the Interim Management Agreement, and to recommend that
shareholders approve the New Management Agreement.
48 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
American Stock Transfer & Trust Company
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Trust's Trustees and officers are listed below, together with their
principal occupations during at least the past five years. Trustees who are
interested persons of the Trust within the meaning of the 1940 Act are referred
to as Interested Trustees. Trustees who are not interested persons of the Trust
are referred to as Independent Trustees. Each of the Trustees serves as a
trustee of each of the 46 U.S. registered investment portfolios for which
Pioneer serves as investment adviser (the "Pioneer Funds"). The address for all
Trustees and all officers of the Trust is 60 State Street, Boston, Massachusetts
02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 49
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (66) Class III Trustee since 2006. Private investor (2004 - 2008 and 2013 - Director, Broadridge
Chairman of the Board Term expires in 2018. present); Chairman (2008 - 2013) and Chief Financial Solutions, Inc.
and Trustee Executive Officer (2008 - 2012), (investor communications
Quadriserv, Inc. (technology products for and securities processing
securities lending industry); and Senior provider for financial
Executive Vice President, The Bank of New services industry) (2009 -
York (financial and securities services) present); Director,
(1986 - 2004) Quadriserv, Inc. (2005 -
2013); and Commissioner,
New Jersey State Civil
Service Commission (2011 -
2015)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (73) Class I Trustee since 2005. Managing Partner, Federal City Capital Director of New York
Trustee Term expires in 2019. Advisors (corporate advisory services Mortgage Trust
company) (1997 - 2004 and 2008 - present); (publicly-traded mortgage
Interim Chief Executive Officer, Oxford REIT) (2004 - 2009, 2012 -
Analytica, Inc. (privately-held research present); Director of The
and consulting company) (2010); Executive Swiss Helvetia Fund, Inc.
Vice President and Chief Financial Officer, (closed-end fund) (2010 -
I-trax, Inc. (publicly traded health care present); Director of
services company) (2004 - 2007); and Oxford Analytica, Inc.
Executive Vice President and Chief (2008 - present); and
Financial Officer, Pedestal Inc. Director of Enterprise
(internet-based mortgage trading company) Community Investment, Inc.
(2000 - 2002); Private consultant (privately-held affordable
(1995-1997), Managing Director, Lehman housing finance company)
Brothers (investment banking firm) (1985 - 2010)
(1992-1995); and Executive, The World Bank
(1979-1992)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (72) Class II Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon
Trustee Term expires in 2017. Economy, Harvard University (1972 - Institutional Funds
present) Investment Trust and
Mellon Institutional Funds
Master Portfolio (oversaw
17 portfolios in fund
complex) (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
50 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
----------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Trust Length of Service Principal Occupation Held by Trustee
----------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (69) Class II Trustee since 2002. Founding Director, Vice President and None
Trustee Term expires in 2017. Corporate Secretary, The Winthrop Group,
Inc. (consulting firm) (1982 - present);
Desautels Faculty of Management, McGill
University (1999 - present); and Manager of
Research Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
----------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (60) Class I Trustee since 2015. Chief Investment Officer, 1199 SEIU Funds None
Advisory Trustee Term expires in 2019. (healthcare workers union pension funds)
(2001 - present); Vice President -
International Investments Group, American
International Group, Inc. (insurance
company) (1993 - 2001); Vice President,
Corporate Finance and Treasury Group,
Citibank, N.A. (1980 - 1986 and 1990 -
1993); Vice President - Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer of
debt securities) (1988 - 1990); Mortgage
Strategies Group, Shearson Lehman Hutton,
Inc. (investment bank) (1987 - 1988); and
Mortgage Strategies Group, Drexel Burnham
Lambert, Ltd. (investment bank) (1986 -
1987)
----------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (68) Class III Trustee since 2002. President and Chief Executive Officer, Director of New America
Trustee Term expires in 2018. Newbury Piret Company (investment banking High Income Fund, Inc.
firm) (1981 - present) (closed-end investment
company) (2004 - present);
and Member, Board of
Governors, Investment
Company Institute (2000 -
2006)
----------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (70) Class III Trustee since 2014. Consultant (investment company services) None
Trustee Term expires in 2018. (2012 - present); Executive Vice President,
BNY Mellon (financial and investment company
services) (1969 - 2012); Director, BNY
International Financing Corp. (financial
services) (2002 - 2012); and Director,
Mellon Overseas Investment Corp. (financial
services) (2009 - 2012)
----------------------------------------------------------------------------------------------------------------------------------
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 51
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (55)* Class I Trustee since 2015. Chair, Director, CEO and President of None
Trustee, President and Term expires in 2019. Pioneer Investment Management-USA
Chief Executive Officer (PIM-USA) (since September 2014); Chair,
Director, CEO and President of Pioneer
Investment Management, Inc. (since
September 2014); Chair, Director, CEO and
President of Pioneer Funds Distributor,
Inc. (since September 2014); Chair,
Director, CEO and President of Pioneer
Institutional Asset Management, Inc.
(since September 2014); and Chair,
Director, and CEO of Pioneer Investment
Management Shareholder Services, Inc.
(since September 2014); Managing Director,
Morgan Stanley Investment Management (2010
- 2013); and Director of Institutional
Business, CEO of International, Eaton
Vance Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (58)* Class II Trustee since 2014. Director and Executive Vice President None
Trustee Term expires in 2017. (since 2008) and Chief Investment Officer,
U.S. (since 2010) of PIM-USA; Executive
Vice President of Pioneer (since 2008);
Executive Vice President of Pioneer
Institutional Asset Management, Inc.
(since 2009); and Portfolio Manager of
Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustee because they are officers
or directors of the Trust's investment adviser and certain of its
affiliates.
52 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
Trust Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Trust Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (52) Since 2003. Serves at the Vice President and Associate General None
Secretary and Chief Legal discretion of the Board. Counsel of Pioneer since January 2008;
Officer Secretary and Chief Legal Officer of all of
the Pioneer Funds since June 2010;
Assistant Secretary of all of the Pioneer
Funds from September 2003 to May 2010; and
Vice President and Senior Counsel of
Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (56) Since 2010. Serves at the Fund Governance Director of Pioneer since None
Assistant Secretary discretion of the Board. December 2006 and Assistant Secretary of
all the Pioneer Funds since June 2010;
Manager - Fund Governance of Pioneer from
December 2003 to November 2006; and Senior
Paralegal of Pioneer from January 2000 to
November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (54) Since 2010. Serves at the Senior Counsel of Pioneer since May 2013 None
Assistant Secretary discretion of the Board. and Assistant Secretary of all the Pioneer
Funds since June 2010; and Counsel of
Pioneer from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (57) Since 2008. Serves at the Vice President - Fund Treasury of Pioneer; None
Treasurer and Chief Financial discretion of the Board. Treasurer of all of the Pioneer Funds since
and Accounting Officer March 2008; Deputy Treasurer of Pioneer
from March 2004 to February 2008; and
Assistant Treasurer of all of the Pioneer
Funds from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (51) Since 2003. Serves at the Director - Fund Treasury of Pioneer; and None
Assistant Treasurer discretion of the Board. Assistant Treasurer of all of the Pioneer
Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (58) Since 2003. Serves at the Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer discretion of the Board. Pioneer; and Assistant Treasurer of all of
the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 53
Trust Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Trust Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (37) Since 2009. Serves at the Fund Administration Manager - Fund Treasury None
Assistant Treasurer discretion of the Board. of Pioneer since November 2008; Assistant
Treasurer of all of the Pioneer Funds since
January 2009; and Client Service Manager -
Institutional Investor Services at State
Street Bank from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (64) Since 2010. Serves at the Chief Compliance Officer of Pioneer and of None
Chief Compliance Officer discretion of the Board. all the Pioneer Funds since March 2010;
Chief Compliance Officer of Pioneer
Institutional Asset Management, Inc. since
January 2012; Chief Compliance Officer of
Vanderbilt Capital Advisors, LLC since July
2012: Director of Adviser and Portfolio
Compliance at Pioneer since October 2005;
and Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003
to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (46) Since 2006. Serves at the Director - Transfer Agency Compliance of None
Anti-Money Laundering Officer discretion of the Board. Pioneer and Anti-Money Laundering Officer
of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
54 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
This page is for your notes.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 55
This page is for your notes.
56 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
This page is for your notes.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 57
This page is for your notes.
58 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
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Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17 59
This page is for your notes.
60 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/17
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-225-6292
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
web site us.pioneerinvestments.com.
The Trust files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2017 Pioneer Investments 19205-11-0517
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.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its 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, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics 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, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its 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 and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its 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,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
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.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(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)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(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.
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.
The audit fees for the Trust were $48,714
payable to Deloitte & Touche LLP for the year ended
March 31, 2017 and $45,823 for the year ended March 31, 2016.
(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.
Audit-Related Fees
There were no fees for audit-related or other services
provided to the Trust during the fiscal years ended
March 31, 2017 and 2016.
(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.
Fees for tax compliance services, primarily for tax
returns, totaled $9,904 in 2017 and $9,876 in 2016.
(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.
Other Fees
There were no fees for audit-related or other services
provided to the Trsut during the fiscal years ended
March 31, 2017 and 2016.
(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.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(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.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Trust's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Trust. For the
years ended March 31 2017 and 2016, there were no
services provided to an affiliate that required the
Trust's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants 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.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
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.
The aggregate non-audit fees for the Trust and
affiliates, as previously defined, totaled approximately
$9,904 in 2017 and $9,876 in 2016.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants 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.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) 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.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
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.
Proxy Voting Policies and Procedures of
Pioneer Investment Management, Inc.
VERSION DATED July, 2004
Overview
Pioneer Investment Management, Inc. ("Pioneer") is a fiduciary that owes
each of its client's duties of care and loyalty with respect to all
services undertaken on the client's behalf, including proxy voting. When
Pioneer has been delegated proxy-voting authority for a client, the duty of
care requires Pioneer to monitor corporate events and to vote the proxies.
To satisfy its duty of loyalty, Pioneer must place its client's interests
ahead of its own and must cast proxy votes in a manner consistent with the
best interest of its clients. Pioneer will vote all proxies presented in a
timely manner.
The Proxy Voting Policies and Procedures are designed to complement
Pioneer's investment policies and procedures regarding its general
responsibility to monitor the performance and/or corporate events of
companies that are issuers of securities held in accounts managed by
Pioneer. Pioneer's Proxy Voting Policies summarize Pioneer's position on a
number of issues solicited by companies held by Pioneer's clients. The
policies are guidelines that provide a general indication on how Pioneer
would vote but do not include all potential voting scenarios.
Pioneer's Proxy Voting Procedures detail monitoring of voting, exception
votes, and review of conflicts of interest and ensure that case-by-case
votes are handled within the context of the overall guidelines (i.e. best
interest of client). The overriding goal is that all proxies for US and
non-US companies that are received promptly will be voted in accordance
with Pioneer's policies or specific client instructions. All shares in a
company held by Pioneer-managed accounts will be voted alike, unless a
client has given us specific voting instructions on an issue or has not
delegated authority to us or the Proxy Voting Oversight Group determines
that the circumstances justify a different approach.
Pioneer does not delegate the authority to vote proxies relating to its
clients to any of its affiliates, which include other subsidiaries of
UniCredito.
Any questions about these policies and procedures should be directed to the
Proxy Coordinator.
1
Proxy Voting Procedures
Proxy Voting Service
Pioneer has engaged an independent proxy voting service to assist in the
voting of proxies. The proxy voting service works with custodians to ensure
that all proxy materials are received by the custodians and are processed
in a timely fashion. To the extent applicable, the proxy voting service
votes all proxies in accordance with the proxy voting policies established
by Pioneer. The proxy voting service will refer proxy questions to the
Proxy Coordinator (described below) for instructions under circumstances
where: (1) the application of the proxy voting guidelines is unclear; (2) a
particular proxy question is not covered by the guidelines; or (3) the
guidelines call for specific instructions on a case-by-case basis. The
proxy voting service is also requested to call to the Proxy Coordinator's
attention specific proxy questions that, while governed by a guideline,
appear to involve unusual or controversial issues. Pioneer reserves the
right to attend a meeting in person and may do so when it determines that
the company or the matters to be voted on at the meeting are strategically
important to its clients.
Proxy Coordinator
Pioneer's Director of Investment Operations (the "Proxy Coordinator")
coordinates the voting, procedures and reporting of proxies on behalf of
Pioneer's clients. The Proxy Coordinator will deal directly with the proxy
voting service and, in the case of proxy questions referred by the proxy
voting service, will solicit voting recommendations and instructions from
the Director of Portfolio Management US or, to the extent applicable,
investment sub-advisers. The Proxy Coordinator is responsible for ensuring
that these questions and referrals are responded to in a timely fashion and
for transmitting appropriate voting instructions to the proxy voting
service. The Proxy Coordinator is responsible for verifying with the
Compliance Department whether Pioneer's voting power is subject to any
limitations or guidelines issued by the client (or in the case of an
employee benefit plan, the plan's trustee or other fiduciaries).
Referral Items
From time to time, the proxy voting service will refer proxy questions to
the Proxy Coordinator that are described by Pioneer's policy as to be voted
on a case-by-case basis, that are not covered by Pioneer's guidelines or
where Pioneer's guidelines may be unclear with respect to the matter to be
voted on. Under such certain circumstances, the Proxy Coordinator will seek
a written voting recommendation from the Director of Portfolio Management
US. Any such recommendation will include: (i) the manner in which the
proxies should be voted; (ii) the rationale underlying any such decision;
and (iii) the disclosure of any contacts or communications made between
Pioneer and any outside parties concerning the proxy proposal prior to the
time that the voting instructions are provided. In addition, the Proxy
Coordinator will ask the Compliance Department to review the question for
any actual or apparent conflicts of interest as described below under
"Conflicts of
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Interest." The Compliance Department will provide a "Conflicts of Interest
Report," applying the criteria set forth below under "Conflicts of
Interest," to the Proxy Coordinator summarizing the results of its review.
In the absence of a conflict of interest, the Proxy Coordinator will vote
in accordance with the recommendation of the Director of Portfolio
Management US.
If the matter presents a conflict of interest for Pioneer, then the Proxy
Coordinator will refer the matter to the Proxy Voting Oversight Group for a
decision. In general, when a conflict of interest is present, Pioneer will
vote according to the recommendation of the Director of Portfolio
Management US where such recommendation would go against Pioneer's interest
or where the conflict is deemed to be immaterial. Pioneer will vote
according to the recommendation of its proxy voting service when the
conflict is deemed to be material and the Pioneer's internal vote
recommendation would favor Pioneer's interest, unless a client specifically
requests Pioneer to do otherwise. When making the final determination as to
how to vote a proxy, the Proxy Voting Oversight Group will review the
report from the Director of Portfolio Management US and the Conflicts of
Interest Report issued by the Compliance Department.
Conflicts of Interest
A conflict of interest occurs when Pioneer's interests interfere, or appear
to interfere with the interests of Pioneer's clients. Occasionally, Pioneer
may have a conflict that can affect how its votes proxies. The conflict may
be actual or perceived and may exist when the matter to be voted on
concerns:
o An affiliate of Pioneer, such as another company belonging to
the UniCredito Italiano S.p.A. banking group (a "UniCredito
Affiliate");
o An issuer of a security for which Pioneer acts as a sponsor,
advisor, manager, custodian, distributor, underwriter, broker, or
other similar capacity (including those securities specifically
declared by PGAM to present a conflict of interest for Pioneer);
o An issuer of a security for which UniCredito has informed Pioneer
that a UniCredito Affiliate acts as a sponsor, advisor, manager,
custodian, distributor, underwriter, broker, or other similar
capacity; or
o A person with whom Pioneer (or any of its affiliates) has an
existing, material contract or business relationship that was not
entered into in the ordinary course of Pioneer's business.
o Pioneer will abstain from voting with respect to companies
directly or indirectly owned by UniCredito Italiano Group, unless
otherwise directed by a client. In addition, Pioneer will inform
PGAM Global Compliance and the PGAM Independent Directors before
exercising such rights.
Any associate involved in the proxy voting process with knowledge of any
apparent or actual conflict of interest must disclose such conflict to the
Proxy Coordinator and the Compliance Department. The Compliance Department
will review each item referred to Pioneer to determine whether an actual or
potential conflict of interest with Pioneer exists in connection with the
proposal(s) to be voted upon. The review will be conducted by comparing the
apparent parties affected by the proxy proposal being
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voted upon against the Compliance Department's internal list of interested
persons and, for any matches found, evaluating the anticipated magnitude
and possible probability of any conflict of interest being present. For
each referral item, the determination regarding the presence or absence of
any actual or potential conflict of interest will be documented in a
Conflicts of Interest Report to the Proxy Coordinator.
Securities Lending
In conjunction with industry standards Proxies are not available to be
voted when the shares are out on loan through either Pioneer's lending
program or a client's managed security lending program. However, Pioneer
will reserve the right to recall lent securities so that they may be voted
according to the Pioneer's instructions. If a portfolio manager would like
to vote a block of previously lent shares, the Proxy Coordinator will work
with the portfolio manager and Investment Operations to recall the
security, to the extent possible, to facilitate the vote on the entire
block of shares.
Share-Blocking
"Share-blocking" is a market practice whereby shares are sent to a
custodian (which may be different than the account custodian) for record
keeping and voting at the general meeting. The shares are unavailable for
sale or delivery until the end of the blocking period (typically the day
after general meeting date).
Pioneer will vote in those countries with "share-blocking." In the event a
manager would like to sell a security with "share-blocking", the Proxy
Coordinator will work with the Portfolio Manager and Investment Operations
Department to recall the shares (as allowable within the market time-frame
and practices) and/or communicate with executing brokerage firm. A list of
countries with "share-blocking" is available from the Investment Operations
Department upon request.
Record Keeping
The Proxy Coordinator shall ensure that Pioneer's proxy voting service:
o Retains a copy of the proxy statement received (unless the proxy
statement is available from the SEC's Electronic Data Gathering,
Analysis, and Retrieval (EDGAR) system);
o Retains a record of the vote cast;
o Prepares Form N-PX for filing on behalf of each client that is a
registered investment company; and
o Is able to promptly provide Pioneer with a copy of the voting
record upon its request.
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The Proxy Coordinator shall ensure that for those votes that may require
additional documentation (i.e. conflicts of interest, exception votes and
case-by-case votes) the following records are maintained:
o A record memorializing the basis for each referral vote cast;
o A copy of any document created by Pioneer that was material in
making the decision on how to vote the subject proxy; and
o A copy of any conflict notice, conflict consent or any other
written communication (including emails or other electronic
communications) to or from the client (or in the case of an
employee benefit plan, the plan's trustee or other fiduciaries)
regarding the subject proxy vote cast by, or the vote
recommendation of, Pioneer.
o Pioneer shall maintain the above records in the client's file for a
period not less than ten (10) years.
Disclosure
Pioneer shall take reasonable measures to inform its clients of the process
or procedures clients must follow to obtain information regarding how
Pioneer voted with respect to assets held in their accounts. In addition,
Pioneer shall describe to clients its proxy voting policies and procedures
and will furnish a copy of its proxy voting policies and procedures upon
request. This information may be provided to clients through Pioneer's Form
ADV (Part II) disclosure, by separate notice to the client, or through
Pioneer's website.
Proxy Voting Oversight Group
The members of the Proxy Voting Oversight Group are Pioneer's: Director of
Portfolio Management US, Head of Investment Operations, and Director of
Compliance. Other members of Pioneer will be invited to attend meetings and
otherwise participate as necessary. The Head of Investment Operations will
chair the Proxy Voting Oversight Group.
The Proxy Voting Oversight Group is responsible for developing, evaluating,
and changing (when necessary) Pioneer's Proxy Voting Policies and
Procedures. The group meets at least annually to evaluate and review these
policies and procedures and the services of its third-party proxy voting
service. In addition, the Proxy Voting Oversight Group will meet as
necessary to vote on referral items and address other business as
necessary.
Amendments
Pioneer may not amend its Proxy Voting Policies And Procedures without the
prior approval of the Proxy Voting Oversight Group and its corporate
parent, Pioneer Global Asset Management S.p.A
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Proxy Voting Policies
Pioneer's sole concern in voting proxies is the economic effect of the
proposal on the value of portfolio holdings, considering both the short-
and long-term impact. In many instances, Pioneer believes that supporting
the company's strategy and voting "for" management's proposals builds
portfolio value. In other cases, however, proposals set forth by management
may have a negative effect on that value, while some shareholder proposals
may hold the best prospects for enhancing it. Pioneer monitors developments
in the proxy-voting arena and will revise this policy as needed.
All proxies that are received promptly will be voted in accordance with the
specific policies listed below. All shares in a company held by
Pioneer-managed accounts will be voted alike, unless a client has given us
specific voting instructions on an issue or has not delegated authority to
us. Proxy voting issues will be reviewed by Pioneer's Proxy Voting
Oversight Group, which consists of the Director of Portfolio Management US,
the Director of Investment Operations (the Proxy Coordinator), and the
Director of Compliance.
Pioneer has established Proxy Voting Procedures for identifying and
reviewing conflicts of interest that may arise in the voting of proxies.
Clients may request, at any time, a report on proxy votes for securities
held in their portfolios and Pioneer is happy to discuss our proxy votes
with company management. Pioneer retains a proxy voting service to provide
research on proxy issues and to process proxy votes.
Administrative
While administrative items appear infrequently in U.S. issuer proxies, they
are quite common in non-U.S. proxies.
We will generally support these and similar management proposals:
o Corporate name change.
o A change of corporate headquarters.
o Stock exchange listing.
o Establishment of time and place of annual meeting.
o Adjournment or postponement of annual meeting.
o Acceptance/approval of financial statements.
o Approval of dividend payments, dividend reinvestment plans and other
dividend-related proposals.
o Approval of minutes and other formalities.
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o Authorization of the transferring of reserves and allocation of
income.
o Amendments to authorized signatories.
o Approval of accounting method changes or change in fiscal year-end.
o Acceptance of labor agreements.
o Appointment of internal auditors.
Pioneer will vote on a case-by-case basis on other routine business;
however, Pioneer will oppose any routine business proposal if insufficient
information is presented in advance to allow Pioneer to judge the merit of
the proposal. Pioneer has also instructed its proxy voting service to
inform Pioneer of its analysis of any administrative items inconsistent, in
its view, with supporting the value of Pioneer portfolio holdings so that
Pioneer may consider and vote on those items on a case-by-case basis.
Auditors
We normally vote for proposals to:
o Ratify the auditors. We will consider a vote against if we are
concerned about the auditors' independence or their past work for
the company. Specifically, we will oppose the ratification of
auditors and withhold votes from audit committee members if
non-audit fees paid by the company to the auditing firm exceed the
sum of audit fees plus audit-related fees plus permissible tax
fees according to the disclosure categories proposed by the
Securities and Exchange Commission.
o Restore shareholder rights to ratify the auditors.
We will normally oppose proposals that require companies to:
o Seek bids from other auditors.
o Rotate auditing firms, except where the rotation is statutorily
required or where rotation would demonstrably strengthen financial
disclosure.
o Indemnify auditors.
o Prohibit auditors from engaging in non-audit services for the
company.
Board of Directors
On issues related to the board of directors, Pioneer normally supports
management. We will, however, consider a vote against management in
instances where corporate performance has been very poor or where the board
appears to lack independence.
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General Board Issues
Pioneer will vote for:
o Audit, compensation and nominating committees composed of
independent directors exclusively.
o Indemnification for directors for actions taken in good faith in
accordance with the business judgment rule. We will vote against
proposals for broader indemnification.
o Changes in board size that appear to have a legitimate business
purpose and are not primarily for anti-takeover reasons.
o Election of an honorary director.
We will vote against:
o Minimum stock ownership by directors.
o Term limits for directors. Companies benefit from experienced
directors, and shareholder control is better achieved through
annual votes.
o Requirements for union or special interest representation on the
board.
o Requirements to provide two candidates for each board seat.
We will vote on a case-by case basis on these issues:
o Separate chairman and CEO positions. We will consider voting with
shareholders on these issues in cases of poor corporate
performance.
Elections of Directors
In uncontested elections of directors we will vote against:
o Individual directors with absenteeism above 25% without valid
reason. We support proposals that require disclosure of director
attendance.
o Insider directors and affiliated outsiders who sit on the audit,
compensation, stock option or nominating committees. For the
purposes of our policy, we accept the definition of affiliated
directors provided by our proxy voting service.
We will also vote against:
o Directors who have failed to act on a takeover offer where the
majority of shareholders have tendered their shares.
o Directors who appear to lack independence or are associated with
very poor corporate performance.
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We will vote on a case-by case basis on these issues:
o Re-election of directors who have implemented or renewed a
dead-hand or modified dead-hand poison pill (a "dead-hand poison
pill" is a shareholder rights plan that may be altered only by
incumbent or "dead " directors. These plans prevent a potential
acquirer from disabling a poison pill by obtaining control of the
board through a proxy vote).
o Contested election of directors.
o Prior to phase-in required by SEC, we would consider supporting
election of a majority of independent directors in cases of poor
performance.
o Mandatory retirement policies.
o Directors who have ignored a shareholder proposal that has been
approved by shareholders for two consecutive years.
Takeover-Related Measures
Pioneer is generally opposed to proposals that may discourage takeover
attempts. We believe that the potential for a takeover helps ensure that
corporate performance remains high.
Pioneer will vote for:
o Cumulative voting.
o Increase ability for shareholders to call special meetings.
o Increase ability for shareholders to act by written consent.
o Restrictions on the ability to make greenmail payments.
o Submitting rights plans to shareholder vote.
o Rescinding shareholder rights plans ("poison pills").
o Opting out of the following state takeover statutes:
o Control share acquisition statutes, which deny large holders voting
rights on holdings over a specified threshold.
o Control share cash-out provisions, which require large holders to
acquire shares from other holders.
o Freeze-out provisions, which impose a waiting period on large
holders before they can attempt to gain control.
o Stakeholder laws, which permit directors to consider interests of
non-shareholder constituencies.
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o Disgorgement provisions, which require acquirers to disgorge profits
on purchases made before gaining control.
o Fair price provisions.
o Authorization of shareholder rights plans.
o Labor protection provisions.
o Mandatory classified boards.
We will vote on a case-by-case basis on the following issues:
o Fair price provisions. We will vote against provisions requiring
supermajority votes to approve takeovers. We will also consider
voting against proposals that require a supermajority vote to
repeal or amend the provision. Finally, we will consider the
mechanism used to determine the fair price; we are generally
opposed to complicated formulas or requirements to pay a premium.
o Opting out of state takeover statutes regarding fair price
provisions. We will use the criteria used for fair price
provisions in general to determine our vote on this issue.
o Proposals that allow shareholders to nominate directors.
We will vote against:
o Classified boards, except in the case of closed-end mutual funds.
o Limiting shareholder ability to remove or appoint directors. We
will support proposals to restore shareholder authority in this
area. We will review on a case-by-case basis proposals that
authorize the board to make interim appointments.
o Classes of shares with unequal voting rights.
o Supermajority vote requirements.
o Severance packages ("golden" and "tin" parachutes). We will support
proposals to put these packages to shareholder vote.
o Reimbursement of dissident proxy solicitation expenses. While we
ordinarily support measures that encourage takeover bids, we
believe that management should have full control over corporate
funds.
o Extension of advance notice requirements for shareholder proposals.
o Granting board authority normally retained by shareholders (e.g.,
amend charter, set board size).
o Shareholder rights plans ("poison pills"). These plans generally
allow shareholders to buy additional shares at a below-market
price in the event of a change in control and may deter some bids.
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Capital Structure
Managements need considerable flexibility in determining the company's
financial structure, and Pioneer normally supports managements' proposals
in this area. We will, however, reject proposals that impose high barriers
to potential takeovers.
Pioneer will vote for:
o Changes in par value.
o Reverse splits, if accompanied by a reduction in number of shares.
o Share repurchase programs, if all shareholders may participate on
equal terms.
o Bond issuance.
o Increases in "ordinary" preferred stock.
o Proposals to have blank-check common stock placements (other than
shares issued in the normal course of business) submitted for
shareholder approval.
o Cancellation of company treasury shares.
We will vote on a case-by-case basis on the following issues:
o Reverse splits not accompanied by a reduction in number of shares,
considering the risk of delisting.
o Increase in authorized common stock. We will make a determination
considering, among other factors:
o Number of shares currently available for issuance;
o Size of requested increase (we would normally approve increases of up to
100% of current authorization);
o Proposed use of the additional shares; and
o Potential consequences of a failure to increase the number of shares
outstanding (e.g., delisting or bankruptcy).
o Blank-check preferred. We will normally oppose issuance of a new
class of blank-check preferred, but may approve an increase in a
class already outstanding if the company has demonstrated that it
uses this flexibility appropriately.
o Proposals to submit private placements to shareholder vote.
o Other financing plans.
We will vote against preemptive rights that we believe limit a company's
financing flexibility.
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Compensation
Pioneer supports compensation plans that link pay to shareholder returns
and believes that management has the best understanding of the level of
compensation needed to attract and retain qualified people. At the same
time, stock-related compensation plans have a significant economic impact
and a direct effect on the balance sheet. Therefore, while we do not want
to micromanage a company's compensation programs, we will place limits on
the potential dilution these plans may impose.
Pioneer will vote for:
o 401(k) benefit plans.
o Employee stock ownership plans (ESOPs), as long as shares
allocated to ESOPs are less than 5% of outstanding shares. Larger
blocks of stock in ESOPs can serve as a takeover defense. We will
support proposals to submit ESOPs to shareholder vote.
o Various issues related to the Omnibus Budget and Reconciliation Act
of 1993 (OBRA), including:
o Amendments to performance plans to conform with OBRA;
o Caps on annual grants or amendments of administrative features;
o Adding performance goals; and
o Cash or cash-and-stock bonus plans.
o Establish a process to link pay, including stock-option grants, to
performance, leaving specifics of implementation to the company.
o Require that option repricings be submitted to shareholders.
o Require the expensing of stock-option awards.
o Require reporting of executive retirement benefits (deferred
compensation, split-dollar life insurance, SERPs, and pension
benefits).
o Employee stock purchase plans where the purchase price is equal to
at least 85% of the market price, where the offering period is no
greater than 27 months and where potential dilution (as defined
below) is no greater than 10%.
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We will vote on a case-by-case basis on the following issues:
o Executive and director stock-related compensation plans. We will
consider the following factors when reviewing these plans:
o The program must be of a reasonable size. We will approve plans
where the combined employee and director plans together would
generate less than 15% dilution. We will reject plans with 15% or
more potential dilution.
Dilution = (A + B + C) / (A + B + C + D), where
A = Shares reserved for plan/amendment,
B = Shares available under continuing plans,
C = Shares granted but unexercised and
D = Shares outstanding.
o The plan must not:
o Explicitly permit unlimited option repricing authority or that
have repriced in the past without shareholder approval.
o Be a self-replenishing "evergreen" plan, plans that grant
discount options and tax offset payments.
o We are generally in favor of proposals that increase participation beyond
executives.
o We generally support proposals asking companies to adopt rigorous
vesting provisions for stock option plans such as those that vest
incrementally over, at least, a three- or four-year period with a pro
rata portion of the shares becoming exercisable on an annual basis
following grant date.
o We generally support proposals asking companies to disclose their
window period policies for stock transactions. Window period policies
ensure that employees do not exercise options based on insider
information contemporaneous with quarterly earnings releases and other
material corporate announcements.
o We generally support proposals asking companies to adopt stock holding
periods for their executives.
o All other employee stock purchase plans.
o All other compensation-related proposals, including deferred
compensation plans, employment agreements, loan guarantee programs
and retirement plans.
o All other proposals regarding stock compensation plans, including
extending the life of a plan, changing vesting restrictions,
repricing options, lengthening exercise periods or accelerating
distribution of awards and pyramiding and cashless exercise
programs.
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We will vote against:
o Pensions for non-employee directors. We believe these retirement
plans reduce director objectivity.
o Elimination of stock option plans.
We will vote on a case-by case basis on these issues:
o Limits on executive and director pay.
o Stock in lieu of cash compensation for directors.
Corporate Governance
Pioneer will vote for:
o Confidential Voting.
o Equal access provisions, which allow shareholders to contribute
their opinion to proxy materials.
o Proposals requiring directors to disclose their ownership of shares
in the company.
We will vote on a case-by-case basis on the following issues:
o Change in the state of incorporation. We will support
reincorporations supported by valid business reasons. We will
oppose those that appear to be solely for the purpose of
strengthening takeover defenses.
o Bundled proposals. We will evaluate the overall impact of the
proposal.
o Adopting or amending the charter, bylaws or articles of association.
o Shareholder appraisal rights, which allow shareholders to demand
judicial review of an acquisition price.
We will vote against:
o Shareholder advisory committees. While management should solicit
shareholder input, we prefer to leave the method of doing so to
management's discretion.
o Limitations on stock ownership or voting rights.
o Reduction in share ownership disclosure guidelines.
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Mergers and Restructurings
Pioneer will vote on the following and similar issues on a case-by-case
basis:
o Mergers and acquisitions.
o Corporate restructurings, including spin-offs, liquidations, asset
sales, joint ventures, conversions to holding company and
conversions to self-managed REIT structure.
o Debt restructurings.
o Conversion of securities.
o Issuance of shares to facilitate a merger.
o Private placements, warrants, convertible debentures.
o Proposals requiring management to inform shareholders of merger
opportunities.
We will normally vote against shareholder proposals requiring that the
company be put up for sale.
Mutual Funds
Many of our portfolios may invest in shares of closed-end mutual funds or
exchange-traded funds. The non-corporate structure of these investments
raises several unique proxy voting issues.
Pioneer will vote for:
o Establishment of new classes or series of shares.
o Establishment of a master-feeder structure.
Pioneer will vote on a case-by-case on:
o Changes in investment policy. We will normally support changes
that do not affect the investment objective or overall risk level
of the fund. We will examine more fundamental changes on a
case-by-case basis.
o Approval of new or amended advisory contracts.
o Changes from closed-end to open-end format.
o Authorization for, or increase in, preferred shares.
o Disposition of assets, termination, liquidation, or mergers.
o Classified boards of closed-end mutual funds, but will typically
support such proposals.
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Social Issues
Pioneer will abstain on stockholder proposals calling for greater
disclosure of corporate activities with regard to social issues. "Social
Issues" may generally be described as shareholder proposals for a company
to:
o Conduct studies regarding certain issues of public concern and
interest;
o Study the feasibility of the company taking certain actions with
regard to such issues; or
o Take specific action, including ceasing certain behavior and
adopting company standards and principles, in relation to issues
of public concern and interest.
We believe these issues are important and should receive management
attention.
Pioneer will vote against proposals calling for substantial changes in the
company's business or activities. We will also normally vote against
proposals with regard to contributions, believing that management should
control the routine disbursement of funds.
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ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
9. PORTFOLIO MANAGEMENT
ADDITIONAL INFORMATION ABOUT THE PORTFOLIO MANAGER
OTHER ACCOUNTS MANAGED BY THE PORTFOLIO MANAGER
The table below indicates, for the portfolio manager of the fund, information
about the accounts other than the fund over which the portfolio manager has
day-to-day investment responsibility. All information on the number of accounts
and total assets in the table is as of March 31, 2017. For purposes of the
table, "Other Pooled Investment Vehicles" may include investment partnerships,
undertakings for collective investments in transferable securities ("UCITS")
and other non-U.S. investment funds and group trusts, and "Other Accounts" may
include separate accounts for institutions or individuals, insurance company
general or separate accounts, pension funds and other similar institutional
accounts but generally do not include the portfolio manager's personal
investment accounts or those which the manager may be deemed to own
beneficially under the code of ethics. Certain funds and other accounts managed
by the portfolio manager may have substantially similar investment strategies.
NUMBER OF ASSETS
ACCOUNTS MANAGED
MANAGED FOR FOR WHICH
WHICH ADVISORY ADVISORY
NUMBER OF FEE IS FEE IS
NAME OF ACCOUNTS TOTAL ASSETS PERFORMANCE- PERFORMANCE-
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED MANAGED (000'S) BASED BASED (000'S)
------------------- ---------------------------------- ----------- ----------------- ---------------- --------------
David Eurkus Other Registered Investment
Companies 3 $2,211,655 N/A N/A
Other Pooled Investment Vehicles 0 $ 0 N/A N/A
Other Accounts 0 $ 0 N/A N/A
------------------- ---------------------------------- ----------- ---------- ---------------- --------------
Jonathan Chirunga Other Registered
Investment Companies 3 $2,211,655 N/A N/A
Other Pooled Investment Vehicles 0 $ 0 N/A N/A
Other Accounts 0 $ 0 N/A N/A
------------------- ---------------------------------- ----------- ---------- ---------------- --------------
POTENTIAL CONFLICTS OF INTEREST
When a portfolio manager is responsible for the management of more than one
account, the potential arises for the portfolio manager to favor one account
over another. The principal types of potential conflicts of interest that may
arise are discussed below. For the reasons outlined below, Pioneer does not
believe that any material conflicts are likely to arise out of a portfolio
manager's responsibility for the management of the fund as well as one or more
other accounts. Although Pioneer has adopted procedures that it believes are
reasonably designed to detect and prevent violations of the federal securities
laws and to mitigate the potential for conflicts of interest to affect its
portfolio management decisions, there can be no assurance that all conflicts
will be identified or that all procedures will be effective in mitigating the
potential for such risks. Generally, the risks of such conflicts of interest
are increased to the extent that a portfolio manager has a financial incentive
to favor one account over another. Pioneer has structured its compensation
arrangements in a manner that is intended to limit such potential for conflicts
of interest. See "Compensation of Portfolio Managers" below.
o A portfolio manager could favor one account over another in allocating new
investment opportunities that have limited supply, such as initial public
offerings and private placements. If, for example, an initial public
offering that was expected to appreciate in value significantly shortly
after the offering was allocated to a single account, that account may be
expected to have better investment performance than other accounts that did
not receive an allocation of the initial public offering. Generally,
investments for which there is limited availability are allocated based upon
a range of factors including available cash and
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consistency with the accounts' investment objectives and policies. This
allocation methodology necessarily involves some subjective elements but is
intended over time to treat each client in an equitable and fair manner.
Generally, the investment opportunity is allocated among participating
accounts on a pro rata basis. Although Pioneer believes that its practices are
reasonably designed to treat each client in an equitable and fair manner,
there may be instances where a fund may not participate, or may participate to
a lesser degree than other clients, in the allocation of an investment
opportunity.
o A portfolio manager could favor one account over another in the order in
which trades for the accounts are placed. If a portfolio manager determines
to purchase a security for more than one account in an aggregate amount that
may influence the market price of the security, accounts that purchased or
sold the security first may receive a more favorable price than accounts
that made subsequent transactions. The less liquid the market for the
security or the greater the percentage that the proposed aggregate purchases
or sales represent of average daily trading volume, the greater the
potential for accounts that make subsequent purchases or sales to receive a
less favorable price. When a portfolio manager intends to trade the same
security on the same day for more than one account, the trades typically are
"bunched," which means that the trades for the individual accounts are
aggregated and each account receives the same price. There are some types of
accounts as to which bunching may not be possible for contractual reasons
(such as directed brokerage arrangements). Circumstances may also arise
where the trader believes that bunching the orders may not result in the
best possible price. Where those accounts or circumstances are involved,
Pioneer will place the order in a manner intended to result in as favorable
a price as possible for such client.
o A portfolio manager could favor an account if the portfolio manager's
compensation is tied to the performance of that account to a greater degree
than other accounts managed by the portfolio manager. If, for example, the
portfolio manager receives a bonus based upon the performance of certain
accounts relative to a benchmark while other accounts are disregarded for
this purpose, the portfolio manager will have a financial incentive to seek
to have the accounts that determine the portfolio manager's bonus achieve
the best possible performance to the possible detriment of other accounts.
Similarly, if Pioneer receives a performance-based advisory fee, the
portfolio manager may favor that account, whether or not the performance of
that account directly determines the portfolio manager's compensation.
o A portfolio manager could favor an account if the portfolio manager has a
beneficial interest in the account, in order to benefit a large client or to
compensate a client that had poor returns. For example, if the portfolio
manager held an interest in an investment partnership that was one of the
accounts managed by the portfolio manager, the portfolio manager would have
an economic incentive to favor the account in which the portfolio manager
held an interest.
o If the different accounts have materially and potentially conflicting
investment objectives or strategies, a conflict of interest could arise. For
example, if a portfolio manager purchases a security for one account and
sells the same security for another account, such trading pattern may
disadvantage either the account that is long or short. In making portfolio
manager assignments, Pioneer seeks to avoid such potentially conflicting
situations. However, where a portfolio manager is responsible for accounts
with differing investment objectives and policies, it is possible that the
portfolio manager will conclude that it is in the best interest of one
account to sell a portfolio security while another account continues to hold
or increase the holding in such security.
COMPENSATION OF PORTFOLIO MANAGER
Pioneer has adopted a system of compensation for portfolio managers that seeks
to align the financial interests of the portfolio managers with those of
shareholders of the accounts (including Pioneer funds) the portfolio managers
manage, as well as with the financial performance of Pioneer. The compensation
program for all Pioneer portfolio managers includes a base salary (determined
by the rank and tenure of the employee) and an annual bonus program, as well as
customary benefits that are offered generally to all full-time employees. Base
compensation is fixed and normally reevaluated on an annual basis. Pioneer
seeks to set base compensation at market rates, taking into account the
experience and responsibilities of
1
the portfolio manager. The bonus plan is intended to provide a competitive
level of annual bonus compensation that is tied to the portfolio manager
achieving superior investment performance and align the interests of the
investment professional with those of shareholders, as well as with the
financial performance of Pioneer. Any bonus under the plan is completely
discretionary, with a maximum annual bonus that may be in excess of base
salary. The annual bonus is based upon a combination of the following factors:
o QUANTITATIVE INVESTMENT PERFORMANCE. The quantitative investment performance
calculation is based on pre-tax investment performance of all of the
accounts managed by the portfolio manager (which includes the fund and any
other accounts managed by the portfolio manager) over a one-year period (20%
weighting) and four-year period (80% weighting), measured for periods ending
on December 31. The accounts, which include the fund, are ranked against a
group of mutual funds with similar investment objectives and investment
focus (60%) and a broad-based securities market index measuring the
performance of the same type of securities in which the accounts invest
(40%), which, in the case of the fund, is the Barclays Capital Municipal
Bond Index and the Barclays Capital High Yield Municipal Bond Index. As a
result of these two benchmarks, the performance of the portfolio manager for
compensation purposes is measured against the criteria that are relevant to
the portfolio manager's competitive universe.
o QUALITATIVE PERFORMANCE. The qualitative performance component with respect
to all of the accounts managed by the portfolio manager includes objectives,
such as effectiveness in the areas of teamwork, leadership, communications
and marketing, that are mutually established and evaluated by each portfolio
manager and management.
o PIONEER RESULTS AND BUSINESS LINE RESULTS. Pioneer's financial performance,
as well as the investment performance of its investment management group,
affect a portfolio manager's actual bonus by a leverage factor of plus or
minus (+/-) a predetermined percentage.
The quantitative and qualitative performance components comprise 80% and 20%,
respectively, of the overall bonus calculation (on a pre-adjustment basis). A
portion of the annual bonus is deferred for a specified period and may be
invested in one or more Pioneer funds.
Certain portfolio managers participate in other programs designed to reward and
retain key contributors. Senior executives or other key employees are granted
performance units based on the stock price performance of UniCredit and the
financial performance of Pioneer Global Asset Management S.p.A., which are
affiliates of Pioneer. Portfolio managers also may participate in a deferred
compensation program, whereby deferred amounts are invested in one or more
Pioneer funds.
SHARE OWNERSHIP BY PORTFOLIO MANAGERS
The following table indicates as of March 31, 2017 the value, within the
indicated range, of shares beneficially owned by the portfolio managers of the
fund.
BENEFICIAL OWNERSHIP
NAME OF PORTFOLIO MANAGER OF THE FUND*
--------------------------- ---------------------
David Eurkus A
--------------------------- ---------------------
A
Jonathan Chirunga
--------------------------- ---------------------
* Key to Dollar Ranges
A. None
B. $1 - $10,000
C. $10,001 - $50,000
D. $50,001 - $100,000
E. $100,001 - $500,000
F. $500,001 - $1,000,000
G. Over $1,000,000
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ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
During the period covered by this report, there were no purchases
made by or on behalf of the registrant or any affiliated purchaser
as defined in Rule 10b-18(a)(3) under the Securities Exchange Act
of 1934 (the Exchange Act), of shares of the registrants equity
securities that are registered by the registrant pursuant to
Section 12 of the Exchange Act.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) 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.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
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 Municipal High Income Advantage Trust
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date May 30, 2017
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/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date May 30, 2017
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date May 30, 2017
* Print the name and title of each signing officer under his or her signature.