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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21409
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, 2013 through March 31, 2014
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
--------------------------------------------------------------------------------
Annual Report | March 31, 2014
--------------------------------------------------------------------------------
Ticker Symbol: MAV
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Schedule of Investments 13
Financial Statements 24
Notes to Financial Statements 29
Report of Independent Registered Public Accounting Firm 36
Approval of Investment Advisory Agreement 38
Trustees, Officers and Service Providers 42
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 1
President's Letter
Dear Shareowner,
A few months into 2014, we still expect U.S. economic growth for the year to be
in the 2.5% to 3% range, despite some weaker economic data releases during the
winter months driven in large part by harsh weather across much of the
continental U.S. While unemployment remains high, employment has been rising
steadily. Consumer incomes, savings, wealth, and debt-servicing capacity have
been solid buttresses for the recovering housing and auto industries. Industrial
activity is growing only moderately, but current corporate profits are generally
solid and balance sheets appear able to support needed capital spending and
dividend* payouts. A modestly improving European economy and continuing economic
improvement in Japan appear likely to result in improving global growth in 2014,
further supporting the U.S. economy. In addition, we feel that continuing slack
in labor markets and capacity utilization offer the potential for continuing
growth without bottlenecks and rising inflation.
After observing the strengthening economic trends, the Federal Reserve System
(the Fed) has begun scaling back its QE (quantitative easing) program, but
short-term interest rates remain near zero, and while Fed Chair Janet Yellen has
suggested that rates may be raised roughly six months after the QE program is
fully tapered, that would still place the potential rate hike sometime in 2015.
There are certainly risks and uncertainties still facing the global economy as
2014 moves along. The European economy, while improving, remains weak, the
Japanese economy faced a tax hike this spring, and a number of emerging market
countries are experiencing difficulties. There are also geopolitical worries
abroad, such as Russia's aggressive move against the Ukraine, and more potential
political fights at home, especially during a mid-term election year. While most
of the widely recognized risks we have outlined may already be "priced into" the
market, we believe investors should continue to expect market volatility.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. Our advice, as
always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs, keeping in mind that there is no single best strategy that
works for every investor.
* Dividends are not guaranteed.
2 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in equity and bond markets, using in-depth research to identify undervalued
individual securities, and using thoughtful risk management to construct
portfolios which seek to balance potential risks and rewards in an ever-changing
world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
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. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 3
Portfolio Management Discussion | 3/31/14
Investors' confidence in municipal debt strongly rebounded during the second
half of the 12-month period ended March 31, 2014, although the municipal
market's performance for the Trust's full fiscal year remained modest. 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 ended March 31, 2014. Mr. Eurkus, Director of
Municipals, a senior vice president and a portfolio manager a 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, 2014?
A Pioneer Municipal High Income Advantage Trust returned -2.78% at net asset
value and 2.59% at market price during the 12-month period ended March 31,
2014. During the same 12-month period, the Trust's benchmarks, the Barclays
Municipal Bond Index and the Barclays High Yield Municipal Bond Index,
returned 0.39% and -1.87% at net asset value, respectively. The Barclays
Municipal Bond Index is an unmanaged measure of the performance of
investment-grade municipal bonds, while the Barclays High Yield Municipal
Bond Index is an unmanaged measure of the performance of lower-rated
municipal bonds. Unlike the Trust, the two Barclays 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 -4.53%.
The shares of the Trust were selling at a 21.0% premium to net asset value
at the end of the period, on March 31, 2014.
On March 31, 2014, the standardized 30-day SEC yield of the Trust's shares
was 8.40%*.
Q How would you describe the investment environment in the municipal bond
market during the 12-month period ended March 31, 2014?
A Municipal bonds, particularly higher-yielding, lower-rated issues,
rebounded strongly during the second half of the 12-month period, but the
rally was not sufficient to overcome the negative effects of market
volatility
* 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 | 3/31/14
over the first half of the period. The Trust's fiscal year began on April 1,
2013, with municipal bonds, including high-yield securities, performing
well. The environment changed, however, starting in May and June of 2013.
First, then-U.S. Federal Reserve System (the Fed) Chair Ben Bernanke suggested
that the Fed might begin tapering its quantitative easing (QE) bond-buying
program, which had been a key part of the Fed's accommodative monetary policies
that had helped to keep interest rates low and provided a measure of support to
overall economic growth. In response, the fixed-income market, including
municipals, sold off in the second quarter of 2013 on fears of the potential
negative effects of rising interest rates in the wake of any tapering of QE. The
Fed ended up delaying its official announcement regarding the tapering of QE
until December of 2013, and began reducing its monthly bond purchases in 2014,
with the eventual goal being to fully draw down the QE program by the end of the
current calendar year.
Later in the spring of 2013, the municipal market received another blow when the
City of Detroit filed for bankruptcy protection. Then, before the effects of the
Detroit announcement had subsided, new fears arose in the market about the
ability of the Commonwealth of Puerto Rico to pay its debts. As the concerns
grew widespread, the three major bond rating agencies all lowered the credit
ratings of bonds issued by Puerto Rico. This had the effect of undermining the
reputation of municipal bonds in general, but especially of lower-rated
municipals that carried more credit risk than higher-quality municipals. In that
environment, municipal bond prices continued to fall for most of the remainder
of 2013, with higher-yielding municipals underperforming investment-grade
municipal debt.
The sell-off in the municipal bond market continued into the first week of 2014,
before market sentiment abruptly changed and municipal bond prices started
snapping back, led by high-yield municipal debt. The primary factor in the
market's turnaround was the growing recognition by investors that municipal bond
prices had fallen to low levels, and offered relatively low prices combined with
highly attractive yields, especially when compared with other types of
fixed-income investments, including taxable bonds. Non-traditional investors,
including property-and-casualty insurers and other financial institutions, began
buying up municipal bonds. The increased buying activity came as financial
institutions published their calendars of expected new-bond issuance, which
indicated that the number of new municipal bonds issued in 2014 could be as much
as 20% lower than the amount issued in 2013. The imbalance caused by increasing
demand and decreasing supply led to a brisk rally in municipal bond prices
during January, February and March of 2014, with the high-yield sector leading
the
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 5
way. The rally was sustained by a supportive domestic economic backdrop
featuring slow growth and relatively tame inflation. As investors moved
back into the high-yield municipal market, even bonds issued by the
Commonwealth of Puerto Rico saw new demand. In the first three months of
2014, the Barclays Municipal Bond Index returned 3.32%, while the Barclays
High Yield Municipal Bond Index rose by 5.91%.
Q What factors had the most influence on the Trust's performance during the
12-month period ended March 31, 2014?
A During the 12-month period, the Trust's overall performance was hurt in
large part by the municipal market sell-off starting in the spring of 2013
and lasting through the end of the 2013 calendar year. Performance bounced
back significantly as the market environment improved in early 2014. The
portfolio's high-yield investments fared particularly well, led by
securities issued by hospital and health care institutions, and by tobacco
lawsuit settlement bonds. The Trust also invested in derivative securities
known as municipal residual interest rate bonds. The exposure to those
securities had a positive impact on the Trust's performance during the
period.
Two portfolio securities that detracted from the Trust's performance during
the period were project revenue bonds backed by the Illinois State Housing
Finance Authority. Both bonds are backed by continuing care retirement
communities, and each posted a modest negative return over the 12-month
period.
The Trust's use of leverage held back total returns when the market
declined early in the fiscal year, as leverage tends to amplify the effects
of market trends. Conversely, the use of leverage helped boost the Trust's
return during the market's comeback early in 2014.
Consistent with our longer-term investment themes, at the end of the
Trust's fiscal year on March 31, 2014, the bulk of the Trust's portfolio
securities were bonds from four sectors: hospital/health care; education;
power and energy; and transportation. The Trust suffered no defaults during
the 12-month period, had no exposure to City of Detroit bonds, and had only
a small position in Commonwealth of Puerto Rico bonds during the early part
of the period. This Commonwealth of Puerto Rico bond was an investment in
highly-rated senior debt backed by sales tax revenues.
Virtually all of the investments in the Trust's portfolio were securities
backed by the revenues of specific projects, as we believe such bonds have
less risk than general obligation bonds, which are more vulnerable to
changes in the general financial health of a state, municipality, or public
agency. At the end of the period, only 3% of Trust total investment
portfolio was invested in general obligation bonds.
6 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
Q How did the level of leverage employed by the Trust change over the
12-month period ended March 31, 2014?
A At the end of the 12-month period on March 31, 2014, 34.5% of the Trust's
total managed assets were financed by leverage (or borrowed funds),
compared with 32.1% of the Trust's total managed assets financed by
leverage at the start of the period on April 1, 2013. The increase was due
to an decrease in the values of securities in which the Trust had invested.
Q What is your investment outlook?
A We think the outlook is favorable for municipal bonds in general, and
especially for high-yield municipal securities. The supply of new municipal
securities has shrunk from the levels of the previous two years, while
demand is rising. Traditional investors attracted by the tax advantages of
municipal securities are being joined by non-traditional investors who see
attractive values in the tax-exempt market, especially relative to the
taxable bond market. Given the widespread expectation that the Fed will
keep short-term interest rates at near-zero at least through the end of
2014 and into 2015, the yields offered by municipal bonds look even more
compelling.
Going forward, we intend to continue to focus on individual security
selection and to emphasize project revenue bonds in the Trust's portfolio.
We believe project-specific bonds to be more reliable than general
obligation bonds backed by municipal revenues. The segments of the
project-revenue municipal market on which we are currently focused include
bonds backed by charter school revenues, transportation projects, tobacco
settlement lawsuits, and industrial development projects.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 7
Please refer to the Schedule of Investments on pages 13-23 for a full listing of
Trust securities.
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 maintain 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 inopportune times in the market. Such actions could reduce the net
earnings or returns to holders of the Trust's common shares over time.
8 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
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.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
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. These statements should not
be relied upon for any other purposes.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 9
Portfolio Summary | 3/31/14
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Insured:
FSA 3.5%
FSA-CR 2.4%
AMBAC GO OF INSTN 2.2%
BHAC-CR MBIA 2.1%
PSF-GTD 1.8%
AMBAC 0.6%
GO OF INSTN 0.6%
ASSURED GTY 0.4%
GNMA COLL 0.4%
NATL-RE 0.2%
Revenue Bonds:
Health Revenue 20.6%
Development Revenue 15.9%
Facilities Revenue 10.3%
Tobacco Revenue 8.6%
Education Revenue 8.6%
Other Revenue 8.3%
Transportation Revenue 6.0%
Airport Revenue 3.4%
Pollution Control Revenue 2.1%
Water Revenue 2.0%
Portfolio Maturity
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
0-2 years 0.4%
2-5 years 0.1%
5-7 years 0.7%
7-10 years 2.4%
10-20 years 32.8%
20+ years 63.6%
Quality Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on Standard & Poor's
ratings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
AAA 3.7%
AA 15.0%
A 10.4%
BBB 12.0%
BB 10.9%
B 7.0%
CCC 1.2%
Not Rated 39.8%
Bond ratings are ordered highest to lowest in portfolio. Based on Standard &
Poor's measures, AAA (highest possible rating) through BBB are considered
investment grade; BB or lower ratings are considered non-investment grade. Cash
equivalents and some bonds may not be rated.
The portfolio is actively managed and current holdings may be different.
10 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
Prices and Distributions | 3/31/14
Share Prices and Distributions
--------------------------------------------------------------------------------
Market Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
3/31/14 3/31/13
--------------------------------------------------------------------------------
Market Value $14.60 $15.51
--------------------------------------------------------------------------------
Premium 21.0% 14.6%
--------------------------------------------------------------------------------
Net Asset Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
3/31/14 3/31/13
--------------------------------------------------------------------------------
Net Asset Value $12.07 $13.54
--------------------------------------------------------------------------------
Distributions per Common Share*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
4/1/13 - 3/31/14 $1.14 $-- $--
--------------------------------------------------------------------------------
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)**
1. Massachusetts Housing Finance Agency Revenue, 5.35%, 12/1/45 2.56%
-----------------------------------------------------------------------------------------
2. North Texas Tollway Authority Transportation Revenue, 5.75%, 1/1/33 2.51
-----------------------------------------------------------------------------------------
3. Philadelphia Authority for Industrial Development, 8.2%, 12/1/43 2.45
-----------------------------------------------------------------------------------------
4. Lehman Municipal Trust Receipts, General Obligation, 13.06%, 7/28/31 2.38
-----------------------------------------------------------------------------------------
5. Massachusetts Development Finance Agency Revenue, 5.75%, 1/1/42 2.22
-----------------------------------------------------------------------------------------
6. New Jersey Transportation Trust Fund Authority Revenue, 12/15/27 2.07
-----------------------------------------------------------------------------------------
7. Tobacco Settlement Financing Corp., Revenue, 6.25%, 6/1/42 1.93
-----------------------------------------------------------------------------------------
8. New Jersey Economic Development Authority Revenue, 5.75%, 9/15/27 1.82
-----------------------------------------------------------------------------------------
9. Jefferson Parish Hospital Service District No. 2, 6.375%, 7/1/41 1.78
-----------------------------------------------------------------------------------------
10. District of Columbia Tobacco Settlement Financing Corp., 6.75%, 5/15/40 1.61
-----------------------------------------------------------------------------------------
* The amount of distributions made to shareowners during the period was in
excess of the net investment income earned by the Trust during the
period. The Trust has accumulated undistributed net investment income which
is part of the Trust's NAV. A portion of this accumulated net investment
income was distributed to shareowners during the period.
** 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.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 11
Performance Update | 3/31/14
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 Barclays Municipal Bond Index and the
Barclays High Yield Municipal Bond Index.
Average Annual Total Returns
(As of March 31, 2014)
--------------------------------------------------------------------------------
Barclays
Barclays High Yield
Net Municipal Municipal
Asset Bond Bond
Value Market Index Index
Period (NAV) Price (NAV) (NAV)
--------------------------------------------------------------------------------
10 Years 6.19% 7.83% 4.45% 5.44%
5 Years 14.98 19.94 5.71 11.41
1 Year -2.78 2.59 0.39 -1.87
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Municipal
High Income Barclays Municipal Barclays High Yield
Advantage Trust Bond Index Municipal Bond Index
3/31/2004 $ 10,000 $ 10,000 $ 10,000
3/31/2005 $ 10,407 $ 10,267 $ 10,919
3/31/2006 $ 11,609 $ 10,657 $ 11,915
3/31/2007 $ 12,794 $ 11,236 $ 13,088
3/31/2008 $ 11,961 $ 11,450 $ 12,238
3/31/2009 $ 8,564 $ 11,710 $ 9,893
3/31/2010 $ 13,510 $ 12,845 $ 12,694
3/31/2011 $ 14,182 $ 13,054 $ 13,110
3/31/2012 $ 18,259 $ 14,629 $ 15,141
3/31/2013 $ 20,730 $ 15,397 $ 17,306
3/31/2014 $ 21,266 $ 15,457 $ 16,982
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.
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 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 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.
The Barclays Municipal Bond Index is an unmanaged, broad measure of the
municipal bond market. The Barclays High Yield Municipal Bond Index is
unmanaged, totals over $26 billion in market value and maintains over 1300
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 $3 million. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Trust returns, do not
reflect any fees, expenses or sales charges. The indices do not employ leverage.
You cannot invest directly in the indices.
12 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
Schedule of Investments | 3/31/14
---------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
TAX EXEMPT OBLIGATIONS -- 146.8%
of Net Assets
Alabama -- 1.7%
2,500,000 NR/B2 Alabama Industrial Development Authority
Solid Waste Disposal Revenue, 6.45%, 12/1/23 $ 2,506,750
2,500,000 NR/NR Huntsville-Redstone Village Special Care
Facilities Financing Authority Nursing Home
Revenue, 5.5%, 1/1/43 2,196,750
--------------
$ 4,703,500
---------------------------------------------------------------------------------------------------
Arizona -- 3.1%
5,000,000(a) NR/NR Casa Grande Industrial Development Authority
Hospital Revenue, 7.625%, 12/1/29 $ 4,924,850
2,640,000 NR/NR Pima County Industrial Development Authority,
7.0%, 1/1/38 2,984,916
32,000 NR/Baa3 Pima County Industrial Development Authority
Education Revenue, 6.75%, 7/1/31 32,010
1,000,000 NR/NR San Luis Facility Development Corp.,
7.25%, 5/1/27 932,320
--------------
$ 8,874,096
---------------------------------------------------------------------------------------------------
California -- 15.9%
6,990,000 CCC/NR California County Tobacco Securitization
Agency Revenue, 5.25%, 6/1/46 $ 4,874,616
1,550,000 NR/NR California Enterprise Development Authority
Recovery Zone Facility Revenue, 8.5%, 4/1/31 1,688,555
5,000,000 NR/Baa3 California Pollution Control Financing Authority,
5.0%, 7/1/37 (144A) 5,010,000
3,000,000 BB+/NR California School Finance Authority, 7.375%,
10/1/43 3,152,910
2,425,000 A/A1 California State General Obligation Various
Purpose, 5.75%, 4/1/31 2,803,154
1,875,000 NR/NR California Statewide Communities Development
Authority, 5.875%, 11/1/43 1,814,925
757,342(a)(b) NR/NR California Statewide Communities Development
Authority Environmental
Facilities Revenue, 9.0%, 12/1/38 6,574
4,000,000 B+/NR California Statewide Communities Development
Authority Revenue Higher Education Revenue,
7.25%, 10/1/38 (144A) 2,366,000
20,000,000(c) NR/NR Inland Empire Tobacco Securitization Authority
Revenue, 0.0%, 6/1/36 3,525,200
3,140,000(d) AA/WR Lehman Municipal Trust Receipts Revenue,
RIB, 0.0%, 9/20/28 (144A) 3,933,038
8,575,000(d) AA/NR Lehman Municipal Trust Receipts, General
Obligation, 13.06%, 7/28/31 10,002,223
1,500,000 A-/NR Madera Irrigation Financing Authority Water
Revenue, 6.25%, 1/1/31 1,657,125
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 13
Schedule of Investments | 3/31/14 (continued)
---------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
California -- (continued)
1,500,000 A-/NR Madera Irrigation Financing Authority Water
Revenue, 6.5%, 1/1/40 $ 1,668,030
2,500,000 A-/A2 San Jose California Airport Revenue, RIB,
5.0%, 3/1/37 2,538,500
--------------
$ 45,040,850
---------------------------------------------------------------------------------------------------
Colorado -- 0.8%
1,500,000 B+/NR Colorado Educational & Cultural Facilities
Authority, 8.0%, 9/1/43 $ 1,503,765
1,000,000 NR/NR Kremmling Memorial Hospital District
Certificate of Participation, 7.125%, 12/1/45 856,360
--------------
$ 2,360,125
---------------------------------------------------------------------------------------------------
Connecticut -- 0.4%
1,000,000 NR/NR Hamden Connecticut Facility Revenue,
7.75%, 1/1/43 $ 1,028,660
---------------------------------------------------------------------------------------------------
District of Columbia -- 3.4%
2,700,000 BBB/Baa1 District of Columbia Tobacco Settlement
Financing Corp., 6.5%, 5/15/33 $ 2,844,207
6,825,000 BBB/Baa1 District of Columbia Tobacco Settlement
Financing Corp., 6.75%, 5/15/40 6,767,192
--------------
$ 9,611,399
---------------------------------------------------------------------------------------------------
Florida -- 3.5%
1,500,000 NR/NR Alachua County Health Facilities Authority
Revenue, 8.125%, 11/15/41 $ 1,699,410
1,500,000 NR/NR Alachua County Health Facilities Authority
Revenue, 8.125%, 11/15/46 1,695,270
500,000 NR/B1 Capital Trust Agency Revenue Bonds,
7.75%, 1/1/41 508,790
1,000,000(e) NR/WR Hillsborough County Industrial Development
Authority Revenue, 8.0%, 8/15/32 1,338,160
2,200,000 BB/NR Lee County Industrial Development Authority,
5.375%, 6/15/37 2,147,112
2,500,000 A/A2 Miami-Dade County Florida Aviation Revenue,
5.5%, 10/1/41 2,686,050
--------------
$ 10,074,792
---------------------------------------------------------------------------------------------------
Georgia -- 6.7%
5,210,000(d) AA/WR Atlanta Georgia Water and Wastewater
Revenue, RIB, 12.827%, 11/1/43 (144A) $ 5,288,202
5,000,000 B+/NR Clayton County Development Authority
Revenue, 9.0%, 6/1/35 5,292,900
900,000 NR/NR DeKalb County Georgia Hospital Authority
Revenue, 6.0%, 9/1/30 924,498
750,000 NR/NR DeKalb County Georgia Hospital Authority
Revenue, 6.125%, 9/1/40 763,163
The accompanying notes are an integral part of these financial statements.
14 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
---------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
Georgia -- (continued)
3,360,000 NR/NR Fulton County Residential Care Facilities
for the Elderly Authority, 7.0%, 7/1/29 $ 3,370,046
3,100,000 AA/Aa2 Private Colleges & Universities Authority
Revenue, 5.0%, 10/1/43 3,373,699
--------------
$ 19,012,508
---------------------------------------------------------------------------------------------------
Guam -- 0.4%
1,000,000 B+/NR Guam Government of Department Education
Certificates of Participation, 6.625%, 12/1/30 $ 1,028,430
---------------------------------------------------------------------------------------------------
Idaho -- 1.2%
2,000,000 A-/Baa1 Power County Industrial Development Corp.,
Revenue, 6.45%, 8/1/32 $ 2,002,420
1,500,000 A-/Baa1 Power County Pollution Control Revenue,
5.625%, 10/1/14 1,500,675
--------------
$ 3,503,095
---------------------------------------------------------------------------------------------------
Illinois -- 6.4%
1,000,000 NR/Baa1 City of Country Club Hills, General Obligation,
5.0%, 12/1/31 $ 1,010,770
3,000,000 NR/NR Illinois Finance Authority Revenue,
8.125%, 2/15/40 3,057,480
365,400(c) NR/NR Illinois Finance Authority Revenue, 11/15/52 24,665
417,400(d) NR/NR Illinois Finance Authority Revenue,
4.0%, 11/15/52 137,742
1,450,000 A+/A1 Illinois Finance Authority Revenue,
5.5%, 4/1/39 1,514,278
1,605,000 AA/A3 Illinois Finance Authority Revenue,
6.0%, 8/15/25 1,646,585
280,000 BBB+/NR Illinois Finance Authority Revenue,
6.0%, 8/15/38 295,095
2,000,000 AA+/Aa2 Illinois Finance Authority Revenue,
6.0%, 8/15/39 2,287,220
45,000 NR/NR Illinois Finance Authority Revenue,
7.0%, 11/15/17 43,263
160,000 NR/NR Illinois Finance Authority Revenue,
7.0%, 11/15/27 145,079
6,000,000 NR/NR Illinois Finance Authority Revenue,
8.25%, 5/15/45 3,967,500
2,500,000 NR/NR Illinois Finance Authority Revenue,
8.25%, 2/15/46 2,554,525
1,985,000 NR/NR Southwestern Illinois Development
Authority Revenue, 5.625%, 11/1/26 1,572,656
--------------
$ 18,256,858
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 15
Schedule of Investments | 3/31/14 (continued)
---------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
Indiana -- 0.9%
250,000 NR/NR City of Carmel Indiana Nursing Home
Revenue, 7.0%, 11/15/32 $ 259,712
750,000 NR/NR City of Carmel Indiana Nursing Home
Revenue, 7.125%, 11/15/42 775,845
500,000 NR/NR City of Carmel Indiana Nursing Home
Revenue, 7.125%, 11/15/47 515,805
1,585,000 NR/NR Vincennes Industrial Economic Development
Revenue, 6.25%, 1/1/24 966,264
--------------
$ 2,517,626
---------------------------------------------------------------------------------------------------
Kansas -- 0.4%
1,000,000 NR/A2 Kansas Development Finance Authority
Revenue, 5.0%, 5/15/35 $ 1,030,900
---------------------------------------------------------------------------------------------------
Louisiana -- 6.0%
7,000,000 BB+/Ba1 Jefferson Parish Hospital Service District
No. 2, 6.375%, 7/1/41 $ 7,477,750
2,500,000 BBB/Baa3 Louisiana Local Government Environmental
Facilities & Community Development Authority
Revenue, 6.75%, 11/1/32 2,764,200
6,000,000 NR/Baa1 Louisiana Public Facilities Authority Revenue,
5.5%, 5/15/47 6,089,940
750,000 BBB-/NR Opelousas Louisiana General Hospital
Authority Revenue, 5.75%, 10/1/23 755,100
--------------
$ 17,086,990
---------------------------------------------------------------------------------------------------
Maine -- 1.9%
1,500,000 NR/Ba1 Maine Health & Higher Educational Facilities
Authority Revenue, 7.5%, 7/1/32 $ 1,701,165
3,500,000 AA-/Aa3 Maine Turnpike Authority Revenue,
5.0%, 7/1/42 3,753,855
--------------
$ 5,455,020
---------------------------------------------------------------------------------------------------
Maryland -- 3.6%
2,245,000 NR/NR Maryland Health & Higher Educational
Facilities Authority Revenue, 6.75%, 7/1/44 $ 2,293,425
4,500,000 A-/A2 Maryland Health & Higher Educational
Facilities Authority Revenue, 5.0%, 7/1/43 4,600,395
1,250,000 NR/Baa3 Maryland Health & Higher Educational
Facilities Authority Revenue, 5.75%, 7/1/38 1,232,187
2,000,000 NR/NR Maryland Health & Higher Educational
Facilities Authority Revenue, 6.25%, 1/1/45 2,153,400
--------------
$ 10,279,407
---------------------------------------------------------------------------------------------------
Massachusetts -- 9.4%
2,200,000 AA/Aa2 Massachusetts Development Finance Agency
Revenue, 5.0%, 7/1/39 $ 2,370,324
8,000,000 A/WR Massachusetts Development Finance Agency
Revenue, 5.75%, 1/1/42 9,309,840
The accompanying notes are an integral part of these financial statements.
16 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
---------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
1,800,000 NR/NR Massachusetts Development Finance
Agency Revenue, 7.1%, 7/1/32 $ 1,800,072
2,000,000 AAA/Aaa Massachusetts Health & Educational
Facilities Authority Revenue, 5.5%, 7/1/32 2,586,660
3,420,000(a)(b) NR/NR Massachusetts Health & Educational
Facilities Authority Revenue, 6.5%,
1/15/38 9,952
10,760,000 AA-/Aa3 Massachusetts Housing Finance Agency
Revenue, 5.35%, 12/1/45 10,760,969
--------------
$ 26,837,817
---------------------------------------------------------------------------------------------------
Michigan -- 3.7%
2,000,000 NR/Ba1 Flint Michigan Hospital Building Authority
Revenue, 7.375%, 7/1/35 $ 2,123,140
2,235,000 BB+/NR Kent Hospital Finance Authority Revenue,
6.25%, 7/1/40 2,331,485
675,000 NR/NR Michigan Public Educational Facilities
Authority Revenue, 7.0%, 10/1/36 651,348
5,000,000 AA/Aa1 Michigan State University Revenue,
5.0%, 8/15/41 5,411,750
--------------
$ 10,517,723
---------------------------------------------------------------------------------------------------
Minnesota -- 1.4%
3,500,000 NR/NR Port Authority of the City of Bloomington,
Minnesota Recovery Zone Facility Revenue,
9.0%, 12/1/35 $ 3,855,740
---------------------------------------------------------------------------------------------------
Missouri -- 0.9%
1,500,000(a)(b) NR/Ca St. Louis Industrial Development Authority
Revenue, 7.2%, 12/15/28 $ 462,345
6,640,000(a)(b) NR/Ca St. Louis Industrial Development Authority
Revenue, 7.25%, 12/15/35 2,046,647
--------------
$ 2,508,992
---------------------------------------------------------------------------------------------------
Montana -- 0.7%
2,445,000(c) NR/NR Hardin Increment Industrial Infrastructure
Development Revenue, 9/1/31 $ 1,927,467
1,000,000(a)(b) NR/NR Two Rivers Authority Inc., Project Revenue,
7.375%, 11/1/27 79,710
--------------
$ 2,007,177
---------------------------------------------------------------------------------------------------
Nevada -- 2.3%
2,000,000 A+/A1 Nevada Highway Revenue, 5.0%, 2/1/43 $ 2,071,540
4,500,000 A-/A3 Reno Nevada Hospital Revenue, 5.25%, 6/1/41 4,550,625
--------------
$ 6,622,165
---------------------------------------------------------------------------------------------------
New Hampshire -- 0.4%
1,125,000(e) NR/NR New Hampshire Health & Education Facilities
Authority Revenue, 5.875%, 7/1/34 $ 1,203,626
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 17
Schedule of Investments | 3/31/14 (continued)
---------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
New Jersey -- 11.2%
1,500,000 NR/NR Burlington County New Jersey Bridge
Commission Revenue, 5.625%, 1/1/38 $ 1,377,690
5,500,000 NR/NR New Jersey Economic Development Authority
Revenue, 10.5%, 6/1/32 (144A) 5,276,150
7,500,000 B/B2 New Jersey Economic Development Authority
Revenue, 5.75%, 9/15/27 7,625,175
3,500,000 NR/NR New Jersey Health Care Facilities Financing
Authority, 7.25%, 7/1/27 3,500,035
3,500,000(d) AA/WR New Jersey State Turnpike Authority
Transportation Revenue, RIB, 13.52%,
7/1/23 (144A) 5,319,720
15,375,000(c) AA+/Aa1 New Jersey Transportation Trust Fund Authority
Revenue, 12/15/27 8,687,644
--------------
$ 31,786,414
---------------------------------------------------------------------------------------------------
New York -- 6.9%
1,630,000(a) NR/NR Dutchess County Industrial Development
Agency, 7.5%, 3/1/29 $ 1,483,300
7,000,000 BB/B2 New York City Industrial Development Agency
Revenue, 5.25%, 12/1/32 6,733,650
3,950,000 BB/B2 New York City Industrial Development Agency
Revenue, 7.625%, 12/1/32 3,969,790
5,000,000 AAA/Aaa New York State Dormitory Authority Revenue,
5.0%, 10/1/41 5,429,750
2,000,000 NR/Ba1 New York State Dormitory Authority Revenue,
6.125%, 12/1/29 2,017,120
--------------
$ 19,633,610
---------------------------------------------------------------------------------------------------
North Carolina -- 2.7%
5,010,000 NR/NR Charlotte North Carolina Special Facilities
Revenue, 7.75%, 2/1/28 $ 5,015,561
2,575,000 NR/NR Charlotte Special Facilities Revenue,
5.6%, 7/1/27 2,574,871
--------------
$ 7,590,432
---------------------------------------------------------------------------------------------------
Ohio -- 1.5%
5,000,000 B-/B3 Buckeye Tobacco Settlement Financing
Authority Revenue, 6.5%, 6/1/47 $ 4,347,350
---------------------------------------------------------------------------------------------------
Oklahoma -- 1.9%
3,000,000(d) NR/WR Tulsa Airports Improvement Trust,
7.75%, 6/1/35 $ 3,102,930
2,220,000 NR/WR Tulsa Airports Improvement Trust
Revenue, 6.25%, 6/1/20 2,227,326
--------------
$ 5,330,256
---------------------------------------------------------------------------------------------------
Oregon -- 0.7%
2,000,000 BBB+/NR Oregon State Facilities Authority Revenue,
5.25%, 10/1/40 $ 2,033,000
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
---------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
Pennsylvania -- 11.0%
1,965,000 B-/NR Pennsylvania Economic Development
Financing Authority, 8.0%, 5/1/29 $ 2,228,959
5,000,000 B-/Caa2 Pennsylvania Economic Development
Financing Authority Solid Waste Disposal
Revenue, 6.0%, 6/1/31 5,000,400
5,000,000 A-/A3 Pennsylvania Turnpike Commission,
5.3%, 12/1/41 5,263,900
10,000,000 NR/NR Philadelphia Authority for Industrial
Development Revenue, 8.2%, 12/1/43 10,293,000
1,000,000 BB-/NR Philadelphia Authority for Industrial
Development Revenue, 6.5%, 6/15/33 (144A) 1,005,440
3,000,000 BB-/NR Philadelphia Authority for Industrial
Development Revenue, 6.75%, 6/15/43 (144A) 3,017,670
5,000,000 BB+/Ba2 Philadelphia Hospitals & Higher Education
Facilities Authority Revenue, 5.0%, 7/1/34 4,318,000
--------------
$ 31,127,369
---------------------------------------------------------------------------------------------------
Rhode Island -- 3.8%
1,355,000(a) NR/NR Central Falls Rhode Island Detention Facility
Corp., Revenue, 7.25%, 7/15/35 $ 1,016,372
1,500,000 NR/NR Rhode Island Health & Educational Building
Corp., Revenue, 8.375%, 1/1/46 1,676,625
8,285,000 BB/Ba1 Tobacco Settlement Financing Corp.
Revenue, 6.25%, 6/1/42 8,099,582
--------------
$ 10,792,579
---------------------------------------------------------------------------------------------------
South Carolina -- 2.0%
4,400,000(f) BBB/WR Tobacco Settlement Revenue Management
Authority, 6.375%, 5/15/30 $ 5,744,728
---------------------------------------------------------------------------------------------------
Tennessee -- 3.0%
5,000,000 BBB+/Baa1 Johnson City Health & Educational Facilities
Board Hospital Revenue, 6.5%, 7/1/38 $ 5,599,750
3,000,000 BBB+/NR Sullivan County Health, Educational & Housing
Facilities Board Revenue, 5.25%, 9/1/36 3,021,480
--------------
$ 8,621,230
---------------------------------------------------------------------------------------------------
Texas -- 17.0%
1,000,000 BB/NR Arlington Higher Education Finance Corp.
Revenue, 7.0%, 3/1/34 $ 999,920
2,500,000 BB+/Baa3 Central Texas Regional Mobility Authority
Revenue, 6.75%, 1/1/41 2,770,425
2,663,453(a)(b) NR/NR Gulf Coast Industrial Development Authority
Revenue, 7.0%, 12/1/36 23,944
3,000,000 NR/A3 Houston Higher Education Finance Corp.
Revenue, 5.0%, 9/1/38 3,101,880
460,000 NR/NR IAH Public Facility Corp., Facilities Revenue,
Series 2006, 6.0%, 5/1/16 321,867
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 19
Schedule of Investments | 3/31/14 (continued)
---------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
Texas -- (continued)
1,000,000 NR/NR IAH Public Facility Corp., Facilities Revenue,
Series 2006, 6.0%, 5/1/21 $ 649,710
1,350,000 NR/NR IAH Public Facility Corp., Facilities Revenue,
Series 2006, 6.125%, 5/1/26 809,608
3,000,000(a)(g) NR/NR Jefferson County Industrial Development
Corp., Revenue, 8.25%, 7/1/32 2,955,000
2,000,000 NR/NR Lubbock Health Facilities Development Corp.,
Nursing Home Revenue, 6.625%, 7/1/36 2,042,080
9,750,000 BBB+/A3 North Texas Tollway Authority Transportation
Revenue, 5.75%, 1/1/33 10,560,518
1,711,000 NR/Aa1 Panhandle Regional Housing Finance Corp.,
Multifamily Housing Revenue, 6.6%, 7/20/31 1,781,493
1,500,000 NR/NR Red River Health Facilities Development
Corp., Revenue, 8.0%, 11/15/41 1,713,735
2,000,000 AAA/Aaa Richardson Independent School District
Revenue, 5.0%, 2/15/38 2,193,440
4,000,000 NR/NR Sanger Industrial Development Corp., Revenue,
8.0%, 7/1/38 4,135,560
1,000,000 NR/NR Tarrant County Cultural Education Facilities
Finance Corp., Revenue, 8.125%, 11/15/39 941,200
1,500,000 NR/NR Tarrant County Cultural Education Facilities
Finance Corp., Revenue, 8.25%, 11/15/44 1,420,260
1,000,000(a)(b) NR/NR Texas Midwest Public Facility Corp., Revenue,
9.0%, 10/1/30 421,200
3,000,000 BBB-/Baa3 Texas Private Activity Bond Surface
Transportation Corp., 7.0%, 12/31/38 3,414,660
2,500,000 NR/NR Travis County Health Facilities Development
Corp., Revenue, 7.125%, 1/1/46 2,592,550
5,000,000 AAA/NR Tyler Independent School District,
5.0%, 2/15/38 5,483,600
--------------
$ 48,332,650
---------------------------------------------------------------------------------------------------
Virginia -- 0.8%
2,000,000 BBB+/Baa1 Washington County Industrial Development
Authority Revenue, 7.75%, 7/1/38 $ 2,298,960
---------------------------------------------------------------------------------------------------
Washington -- 4.1%
1,500,000 NR/Baa3 Washington State Health Care Facilities
Authority Revenue, 5.5%, 12/1/39 $ 1,548,825
2,000,000 BBB/Baa2 Washington State Health Care Facilities
Authority Revenue, 6.125%, 8/15/37 2,080,200
2,000,000 BBB/Baa2 Washington State Health Care Facilities
Authority Revenue, 6.25%, 8/15/42 2,083,480
1,100,000 NR/NR Washington State Housing Finance
Commission Revenue, 6.75%, 10/1/47 1,075,129
5,000,000 NR/NR Washington State Housing Finance
Committee Nonprofit Revenue, 5.625%, 1/1/27 4,731,800
--------------
$ 11,519,434
---------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
---------------------------------------------------------------------------------------------------
Principal S&P/Moody's
Amount Ratings
USD ($) (unaudited) Value
---------------------------------------------------------------------------------------------------
West Virginia -- 0.9%
2,000,000(a) NR/NR City of Philippi WV, 7.75%, 10/1/44 $ 1,934,380
740,000 NR/NR West Virginia Hospital Finance Authority
Hospital Revenue, 9.125%, 10/1/41 723,639
--------------
$ 2,658,019
---------------------------------------------------------------------------------------------------
Wisconsin -- 4.2%
5,000,000 NR/NR Wisconsin Public Finance Authority
Continuing Care Retirement Community
Revenue, 8.25%, 6/1/46 $ 5,615,400
1,000,000(e) NR/NR Wisconsin State Health & Educational
Facilities Authority Revenue,
6.125%, 4/1/24 1,000,000
1,000,000(e) NR/NR Wisconsin State Health & Educational
Facilities Authority Revenue, 6.25%, 4/1/34 1,000,000
1,500,000 A+/A1 Wisconsin State Health & Educational
Facilities Authority Revenue, 6.625%, 2/15/39 1,649,670
920,000 NR/NR Wisconsin State Public Finance Authority
Revenue, 8.375%, 6/1/20 922,226
1,500,000 NR/NR Wisconsin State Public Finance Authority
Revenue, 8.625%, 6/1/47 1,743,719
--------------
$ 11,931,015
---------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT OBLIGATIONS
(Cost $403,622,616) $ 417,164,543
---------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED
DEBT OBLIGATION -- 1.0% of Net Assets
13,000,000(a)(d) NR/NR Non-Profit Preferred Funding Trust I,
0.0%, 9/15/37 (144A) $ 2,763,280
---------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED
DEBT OBLIGATION
(Cost $13,000,000) $ 2,763,280
---------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 147.8%
(Cost -- $416,622,616) (h)(i) $ 419,927,823
---------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 5.0% $ 14,280,518
---------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (52.8)% $ (150,000,229)
---------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHAREOWNERS -- 100.0% $ 284,208,112
===================================================================================================
NR Security not rated by S&P or Moody's.
WR Rating withdrawn by either S&P or Moody's.
(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, 2014, the value of these securities amounted to $33,979,500,
or 12.0% of total net assets applicable to common shareowners.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 21
Schedule of Investments | 3/31/14 (continued)
RIB Residual Interest Bond. 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, 2014.
(a) Indicates a security that has been deemed illiquid. As of March 31, 2014
the aggregate cost of illiquid securities in the Trust's portfolio was
$26,839,186. As of that date, the aggregate value of illiquid securities in
the Trust's portfolio of $18,127,555 represented 6.4% of total net assets
applicable to common shareowners.
(b) Security is in default and is non income producing.
(c) Security issued with a zero coupon. Income is recognized through accretion
of discount.
(d) The interest rate is subject to change periodically. The interest rate
shown is the rate at March 31, 2014.
(e) 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.
(f) Escrow to maturity.
(g) Security is valued using fair value methods (other than prices supplied by
independent pricing services). See Notes to Financial Statements -- Note
1A.
(h) The concentration of investments by type of obligation/ market sector is as
follows:
Insured
FSA 3.5%
FSA-CR 2.4
AMBAC GO OF INSTN 2.2
BHAC-CR MBIA 2.1
PSF-GTD 1.8
AMBAC 0.6
GO OF INSTN 0.6
ASSURED GTY 0.4
GNMA COLL 0.4
NATL-RE 0.2
Revenue Bonds:
Health Revenue 20.6
Development Revenue 15.9
Facilities Revenue 10.3
Tobacco Revenue 8.6
Education Revenue 8.6
Other Revenue 8.3
Transportation Revenue 6.0
Airport Revenue 3.4
Pollution Control Revenue 2.1
Water Revenue 2.0
-----
100.0%
=====
The accompanying notes are an integral part of these financial statements.
22 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
(i) At March 31, 2014, the net unrealized appreciation on investments based on
cost for federal tax purposes of $412,480,181 was as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 39,574,617
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (32,126,975)
------------
Net unrealized appreciation $ 7,447,642
------------
For financial reporting purposes net unrealized appreciation on investments was
$3,305,207 and cost of investments aggregated $416,622,616.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended March 31, 2014 aggregated $103,372,839 and $122,659,673,
respectively.
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.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans are categorized as Level 2, and securities valued using fair
value methods (other than prices supplied by independent pricing services) as
Level 3. See Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of March 31, 2014, in valuing
the Trust's investments.
---------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------
Tax Exempt Obligations $ -- $414,209,543 $2,955,000 $417,164,543
Municipal Collateralized
Debt Obligation -- 2,763,280 -- 2,763,280
---------------------------------------------------------------------------------------
Total Investments in Securities $ -- $416,972,823 $2,955,000 $419,927,823
=======================================================================================
The following is a reconciliation of assets valued using significant
unobservable inputs (level 3):
---------------------------------------------------------------------------------------------------------------------------------
Change in
Balance Realized Unrealized Accrued Transfers Transfers Balance
as of gain appreciation discounts/ in to out of as of
3/31/13 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* Level 3* 3/31/14
---------------------------------------------------------------------------------------------------------------------------------
Tax exempt
obligations $ --** $12,900 $(105,870) $ -- $ (12,900) $4,260 $3,056,610 $ -- $2,955,000
---------------------------------------------------------------------------------------------------------------------------------
Total $ -- $12,900 $(105,870) $ -- $ (12,900) $4,260 $3,056,610 $ -- $2,955,000
---------------------------------------------------------------------------------------------------------------------------------
* Transfers are calculated on the beginning of period values.
** Includes a security that is fair valued fair valued at $0.
(1) Realized gain (loss) on these securities is included in the 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) from investments in
the Statement of Operations.
Net change in unrealized depreciation of Level 3 investments still held and
considered Level 3 at 3/31/14: $(105,870).
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 23
Statement of Assets and Liabilities | 3/31/14
ASSETS:
Investments in securities, at value (cost $416,622,616) $419,927,823
Cash 5,373,295
Receivables --
Investment securities sold 1,033,083
Interest receivable 8,096,203
Reinvestment of distributions 160,770
Prepaid expenses 2,508
----------------------------------------------------------------------------------------
Total assets $434,593,682
----------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Due to affiliates 211,412
Administration fee payable 70,826
Accrued expenses 102,589
Other liabilities 514
----------------------------------------------------------------------------------------
Total liabilities $ 385,341
----------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 6,000 shares,
including dividends payable of $229 $150,000,229
----------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $319,940,042
Undistributed net investment income 8,291,054
Accumulated net realized loss on investments (47,328,191)
Net unrealized appreciation on investments 3,305,207
----------------------------------------------------------------------------------------
Net assets applicable to common shareowners $284,208,112
========================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $284,208,112/23,543,462 common shares $ 12.07
========================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
Statement of Operations
For the Year Ended 3/31/14
INVESTMENT INCOME:
Interest $ 28,720,626
-----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 2,621,830
Administrative reimbursements 213,913
Transfer agent fees and expenses 19,818
Shareholder communications expenses 12,866
Auction agent fees 378,514
Custodian fees 5,939
Professional fees 64,642
Printing expenses 4,233
Trustees' fees 12,563
Pricing fees 22,155
Miscellaneous 69,905
-----------------------------------------------------------------------------------------------
Total expenses 3,426,378
-----------------------------------------------------------------------------------------------
Net investment income $ 25,294,248
-----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on Investments $ 1,349,154
Change in net unrealized depreciation on Investments (34,120,415)
-----------------------------------------------------------------------------------------------
Net loss on investments $(32,771,261)
-----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM
NET INVESTMENT INCOME: $ (238,258)
-----------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (7,715,271)
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 25
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------------
Year Ended Year Ended
3/31/14 3/31/13
-------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 25,294,248 $ 25,500,104
Net realized gain on investments 1,349,154 418,450
Change in unrealized appreciation (depreciation)
on investments (34,120,415) 16,515,110
Distributions to preferred shareowners from net
investment income (238,258) (436,645)
-------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (7,715,271) $ 41,997,019
-------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income and previously undistributed
net investment income ($1.14 and $1.14 per
share, respectively) $ (26,754,525) $ (26,607,280)
-------------------------------------------------------------------------------------------------
Total distributions to common shareowners $ (26,754,525) $ (26,607,280)
-------------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 1,804,149 $ 1,846,794
-------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners from Trust share transactions $ 1,804,149 $ 1,846,794
-------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners $ (32,665,647) $ 17,236,533
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of year 316,873,759 299,637,226
-------------------------------------------------------------------------------------------------
End of year $ 284,208,112 $ 316,873,759
-------------------------------------------------------------------------------------------------
Undistributed net investment income $ 8,291,054 $ 9,129,089
=================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
Financial Highlights
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
3/31/14 3/31/13 3/31/12 3/31/11 3/31/10
---------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 13.54 $ 12.87 $ 11.54 $ 12.24 $ 9.23
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 1.08 $ 1.07 $ 1.08 $ 1.18 $ 1.18
Net realized and unrealized gain (loss) on investments (1.40) 0.76 1.58 (0.79) 2.83
---------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareowners from:
Net investment income (0.01) (0.02) (0.02) (0.03) (0.04)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.33) $ 1.81 $ 2.64 $ 0.36 $ 3.97
---------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income and previously undistributed net
investment income (1.14)* (1.14)* (1.31)* (1.06) (0.96)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.47) $ 0.67 $ 1.33 $ (0.70) $ 3.01
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period(b) $ 12.07 $ 13.54 $ 12.87 $ 11.54 $ 12.24
---------------------------------------------------------------------------------------------------------------------------
Market value, end of period(b) $ 14.60 $ 15.51 $ 14.72 $ 12.64 $ 13.10
===========================================================================================================================
Total return at market value(c) 2.59% 13.53% 28.48% 4.97% 57.76%
Ratios to average net assets of common shareowners:
Net expenses(d) 1.19% 1.23% 1.36% 1.35% 1.41%
Net investment income before preferred share distributions 8.81% 8.08% 8.73% 9.54% 10.66%
Preferred share distributions 0.08% 0.14% 0.15% 0.25% 0.33%
Net investment income available to common shareowners 8.73% 7.94% 8.58% 9.29% 10.33%
Portfolio turnover 24% 14% 15% 10% 8%
Net assets of common shareowners, end of period (in thousands) $284,208 $316,874 $299,637 $266,870 $281,551
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 27
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
3/31/14 3/31/13 3/31/12 3/31/11 3/31/10
-----------------------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) $150,000 $150,000 $150,000 $150,000 $150,000
Asset coverage per preferred share, end of period $ 72,367 $ 77,813 $ 74,941 $ 69,479 $ 71,926
Average market value per preferred share(e) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per preferred share $ 25,001 $ 25,001 $ 25,001 $ 25,001 $ 25,001
===================================================================================================================================
* The amount of distributions made to shareowners during the period were in
excess of the net investment income earned by the Trust during the period.
The Trust has accumulated undistributed net investment income which is part
of the Trust's NAV. A portion of this accumulated net investment income was
distributed to shareowners during the period.
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) 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.
(c) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
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.
(d) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(e) Market value is redemption value without an active market.
The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for the Trust's common shares.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
Notes to Financial Statements | 3/31/14
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 that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the reporting
year. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Fixed income
securities with remaining maturity of more than sixty days are valued at
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. Valuations may
be supplemented by dealers and other sources, as required. The values of
interest rate swaps are determined by obtaining dealer quotations. Equity
securities that have traded on an exchange are valued at the last sale
price on the principal exchange where they are traded. Equity securities
that have not traded on the date of valuation or securities for which sale
prices are not available, generally are valued using the mean between the
last bid and asked prices. Short-term fixed income securities with
remaining maturities of sixty days or less generally are valued at
amortized cost. Shares of money market mutual funds are valued at such
funds' net asset value.
Securities for which independent pricing services 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
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 29
certain personnel of Pioneer Investment Management, Inc. (PIM), the Trust's
investment adviser, 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 valuation team is
responsible for monitoring developments that may impact fair valued
securities and for discussing and assessing fair value on an ongoing basis,
and at least quarterly, with the Valuation Committee of the Board of
Trustees.
At March 31, 2014, one security was valued using fair value methods (in
addition to securities valued using prices supplied by independent pricing
services or broker-dealers) representing 1.0% of net assets applicable to
common shareowners. The value of this fair valued security is $2,955,000.
Discount and premium on debt securities are accreted or amortized,
respectively, daily, into interest income on a yield-to-maturity basis with
a corresponding increase or decrease in the cost basis of the security.
Interest income, including interest or income bearing cash accounts, is
recorded on an accrual basis.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Trust becomes aware of the ex-dividend
data in the exercise of reasonable diligence.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. 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 taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
March 31, 2014, 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. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
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.
30 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
At March 31, 2014, the Trust reclassified $860,500 to decrease undistributed net
investment income, $13,295,585 to increase net realized loss on investments and
$14,156,085 to decrease paid in-capital to reflect permanent book/tax
differences. The reclassification has no impact on the net assets of the Trust
and presents the Trust's capital accounts on a tax basis.
At March 31, 2014, the Trust was permitted to carry forward $1,050,845 of
short-term capital losses and $8,295,018 of long term capital losses without
limitation. Additionally, at March 31, 2014, the Trust had a net capital loss
carryforward of $39,026,949 of which the following amounts will expire between
2016 and 2019 if not utilized: $311,368 in 2016, $17,813,537 in 2017,
$18,242,633 in 2018 and $2,659,411 in 2019. During the year ended March 31,
2014, the Trust had $14,156,085 of capital loss carryforward that expired.
The Trust has elected to defer $606,703 of short-term capital losses and
$2,044,170 of long-term capital gains recognized between November 1, 2013 and
March 31, 2014 to its fiscal year ending March 31, 2015.
The tax character of distributions paid to shareowners during the years ended
March 31, 2014 and March 31, 2013 was as follows:
-------------------------------------------------------------------------------
2014 2013
-------------------------------------------------------------------------------
Distribution paid from:
Tax exempt income $25,927,367 $25,637,813
Ordinary income 1,065,416 1,406,112
-------------------------------------------------------------------------------
Total $26,992,783 $27,043,925
===============================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at March 31, 2014.
--------------------------------------------------------------------------------
2014
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 7,163,321
Undistributed ordinary income 681,021
Capital loss carryforward (48,372,812)
Post-October loss deferred (2,650,873)
Dividends payable (229)
Unrealized appreciation 7,447,642
--------------------------------------------------------------------------------
Total $ (35,731,930)
================================================================================
The difference between book-basis and tax-basis unrealized appreciation is
primarily attributable to the difference between book and tax amortization
methods for premiums and discounts on fixed income securities, the
difference between book and tax accounting for swap agreements, book/tax
difference in accrual of income on securities in default, and other temporary
differences.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 31
C. Automatic Dividend Reinvestment Plan
All common 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 common
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.
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 common shares
of the Trust on terms that differ from the terms of the Plan.
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional
unissued but authorized common shares from the Trust or (ii) by purchase of
outstanding common shares on the New York Stock Exchange or elsewhere. If,
on the payment date for any dividend, the net asset value per common 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 common shares. The number of newly issued
common shares to be credited to each account will be determined by dividing
the dollar amount of the dividend by the net asset value per common 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 common share is greater than the market value (market discount), the
Plan Agent will invest the dividend amount in common shares acquired in
open-market purchases. There are no brokerage charges with respect to newly
issued common 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
32 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
dividends paid in any taxable year. Shareowners holding Plan shares in a
brokerage account may not be able to transfer the shares to another broker
and continue to participate in the Plan.
D. Risks
At times, the Trust's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Trust more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. Information regarding the
Trust's principal risks is contained in the Trust's original offering
prospectus, with additional information included in the Trust's shareowner
reports issued from time to time. Please refer to those documents when
considering the Trust's principal risks.
The Trust may invest in both investment grade and below investment grade
(high-yield) municipal securities with a broad range of maturities and
credit ratings. Debt securities rated below investment grade are commonly
referred to as "junk bonds" and are considered speculative. Below
investment grade securities involve greater risk of loss, are subject to
greater price volatility, and are less liquid and more difficult to value
especially during periods of economic uncertainty or change, than higher
rated debt securities.
2. Management Agreement
PIM, the Trust's investment adviser, a wholly owned indirect subsidiary of
UniCredit S.p.A. (UniCredit), 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, 2014, 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 attributable to the common shareowners.
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,
2014, $289,704 was payable to PIM related to management costs, administrative
costs and certain other services is included in "Due to affiliates" and
"Administration fee payable" on the Statement of Assets and Liabilities.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 33
3. Transfer Agents
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly owned
indirect subsidiary of UniCredit, through a sub-transfer agency agreement with
American Stock Transfer & Trust Company, provides substantially all transfer
agent and shareowner services related to the Trust's common shares at negotiated
rates.
In addition, the Trust reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareowner communications activities such as proxy and
statement mailings and outgoing phone calls.
4. Expense Offset Agreement
The Trust has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Trust's custodian expenses. For the year ended March 31, 2014, the Trust
expenses were not reduced under such arrangement.
5. 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, 2014 and March 31, 2013 were as follows:
--------------------------------------------------------------------------------
3/31/14 3/31/13
--------------------------------------------------------------------------------
Shares outstanding at beginning of year 23,406,918 23,282,302
Reinvestment of distributions 136,544 124,616
--------------------------------------------------------------------------------
Shares outstanding at end of year 23,543,462 23,406,918
================================================================================
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, 2014, 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 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 0.075% to 0.429% during the year ended March
31, 2014.
34 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
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.
6. Subsequent Events
The Board of Trustees of the Trust declared on April 2, 2014 a dividend from
undistributed and accumulated net investment income of $0.095 per common share
payable April 30, 2014, to common shareowners of record on April 16, 2014.
Subsequent to March 31, 2014, dividends declared and paid on preferred shares
totaled $2,503 in aggregate for the two outstanding preferred share series
through April 30, 2014.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 35
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 of Pioneer
Municipal High Income Advantage Trust (the "Trust"), including the schedule of
investments, as of March 31, 2014, 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 five
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.
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. We were
not engaged to perform an audit of the Trust's 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 and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of March 31, 2014, by correspondence with the custodian, and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. 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 at March 31, 2014, 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 five years in the period then ended, in conformity with U.S. generally
accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
May 22, 2014
36 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
ADDITIONAL INFORMATION (unaudited)
During the period, there have been no material changes in the Trust's investment
objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust which has not been
approved by the shareowners. There have been no changes in the principal risk
factors associated with investment in the Trust. There were no changes in the
persons who are primarily responsible for the day-to-day management of the
Trust's portfolio.
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 common
shares in the open market.
IMPORTANT TAX INFORMATION (unaudited)
The following summarizes the taxable per share distributions paid by Pioneer
Municipal High Income Advantage Trust during the taxable year ended March 31,
2014.
--------------------------------------------------------------------------------
Payable Date Ordinary Income
--------------------------------------------------------------------------------
Common Shareowners 12/19/13 0.044827
Preferred Shareowners
Series A 12/17/13 0.5400
12/24/13 0.6400
12/31/13 0.6400
1/7/14 0.3500
Series B 12/16/13 0.5800
12/23/13 0.6400
12/30/13 0.6400
1/6/14 0.3500
All the other net investment income distributions paid by the Trust qualify as
tax-exempt interest dividends for federal income tax purposes.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 37
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Municipal High Income Advantage Trust (the Trust) pursuant to an
investment advisory agreement between PIM and the Trust. In order for PIM to
remain the investment adviser of the Trust, the Trustees of the Trust must
determine annually whether to renew the investment advisory agreement for the
Trust.
The contract review process began in March 2013 as the Trustees of the Trust
agreed on, among other things, an overall approach and timeline for the process.
In July 2013, the Trustees approved the format of the contract review materials
and submitted their formal request to PIM to furnish information necessary to
evaluate the terms of the investment advisory agreement. The contract review
materials were provided to the Trustees in July 2013 and September 2013. After
reviewing and discussing the materials, the Trustees submitted a request for
additional information to PIM, and materials were provided in response to this
request. Meetings of the Independent Trustees of the Trust were held in July,
September, and November, 2013 to review and discuss the contract review
materials. In addition, the Trustees took into account the information related
to the Trust provided to the Trustees at regularly scheduled meetings.
At a meeting held on November 12, 2013, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Trust,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Trust's shareowners. Thus,
highest relative performance would be first quintile and lowest relative
expenses would also be first quintile. The Trustees did not identify any single
factor as the controlling factor in determining to approve the renewal of the
agreement.
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, taking into account the investment objective
and strategy of the Trust. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also 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-Trust assets managed by the portfolio
managers of the Trust. The Trustees
38 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
considered the non-investment resources and personnel of PIM 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 Trust
officers) and other resources that are necessary for the Trust's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Trust's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Trust were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Trust
The Trustees review the Trust's performance on a regular basis, based on
analysis and data prepared by PIM for this purpose and discuss performance
issues with PIM on an ongoing basis. For purposes of their contract renewal
deliberations, the Trustees considered the performance results of the Trust over
various time periods. They reviewed information comparing the Trust's
performance with the performance of its peer group of funds as classified by
Morningstar, Inc. (Morningstar), an independent provider of investment company
data, and with the performance of the Trust's benchmark index. The Trustees
considered that the Trust's annualized total return was in the fourth quintile
of its Morningstar category for the one year period ended June 30, 2013, in the
second quintile of its Morningstar category for the three year period ended June
30, 2013, and in the first quintile of its Morningstar category for the five
year period ended June 30, 2013. The Trustees also considered that the Trust's
yield (for the twelve months ended June 30, 2013) lagged the yield of the
Barclays High Yield Municipal Bond Index and exceeded the yield of the Barclays
Municipal Bond Index for the same period. The Trustees also reviewed data
provided by PIM showing how leverage had benefited the Trust's common
shareholders. The Trustees noted the discussions held throughout the year
regarding the Trust's performance and confirmed that those discussions were
factored into the Trustees' deliberations concerning the renewal of the advisory
agreement. The Trustees indicated that they were satisfied with the discussions
with PIM with respect to the Trust's performance.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 39
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Trust
in comparison to the management fees 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.
The Trustees considered that the Trust's management fee (based on managed
assets) for the twelve months ended June 30, 2013 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 noted that the Trust's
management fee was approximately seven basis points higher than the median
management fee of its Strategic Insight peer group, and that there were only
eight funds in the Strategic Insight peer group. The Trustees also considered
that the Trust's expense ratio (based on managed assets) for the twelve months
ended June 30, 2013 was in the third quintile relative to its Strategic Insight
peer group for the comparable period.
The Trustees reviewed management fees charged by PIM and PIM's affiliate,
Pioneer Institutional Asset Management, Inc. (together with PIM, "Pioneer") to
institutional and other clients, including publicly offered European funds
sponsored by affiliates of Pioneer, 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 Pioneer's costs in providing services to the other
clients and considered the differences in management fees and profit margins for
Trust and non-Trust services. In evaluating the fees associated with Pioneer's
client accounts, the Trustees took into account the respective demands,
resources and complexity associated with the Trust and 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 the
investment advisory agreement with the Trust, PIM performs 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 entrepreneurial risks associated with PIM's management of the Trust
and Pioneer'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 provided by PIM.
40 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
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 realized by PIM and its affiliates 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 the extent to which PIM may realize economies of scale
or other efficiencies in managing and supporting the Trust. Since the Trust is a
closed-end fund that has not raised additional capital, the Trustees concluded
that economies of scale were not a relevant consideration in the renewal of the
investment advisory agreement.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Trust. The Trustees considered the character and amount of fees paid by the
Trust, other than under the investment advisory 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. The Trustees
considered the intangible benefits to PIM by virtue of its relationship with the
Trust and the other Pioneer funds. The Trustees concluded that the receipt of
these benefits was reasonable in the context of the overall relationship between
PIM and the Trust.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Trust, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Trust.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 41
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Legal Counsel
Bingham McCutchen LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Shareowner Services and Sub-Transfer Agent
American Stock Transfer & Trust Company
Preferred Share Auction/Transfer Agent and Registrar
Deutsche Bank Trust Company Americas
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Trust 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 55 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 Trust includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
42 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
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 (63) Class III Trustee since Private investor (2004-2008 and Director, Broadridge
Chairman of the Board 2006. Term expires 2013-present); Chairman (2008 - 2013) and Financial Solutions, Inc.
and Trustee in 2015. Chief 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
- present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (70) Class I Trustee since Managing Partner, Federal City Capital Director of Enterprise
Trustee 2005. Term expires Advisors (corporate advisory services Community Investment,
in 2016. Elected by company) (1997 - 2004 and 2008 - Inc. (privately held
Preferred Shares only. present); Interim Chief Executive Officer, affordable housing finance
Oxford Analytica, Inc. (privately held company) (1985 - 2010);
research and consulting company) (2010); Director of Oxford
Executive Vice President and Chief Analytica, Inc. (2008 -
Financial Officer, I-trax, Inc. (publicly present); Director of The
traded health care services company) Swiss Helvetia Fund, Inc.
(2004 - 2007); and Executive Vice (closed-end fund) (2010 -
President and Chief Financial Officer, present); and Director of
Pedestal Inc. (internet-based mortgage New York Mortgage Trust
trading company) (2000 - 2002) (publicly traded mortgage
REIT) (2004 - 2009, 2012
- present)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (69) Class II Trustee since William Joseph Maier Professor of Trustee, Mellon
Trustee 2008. Term expires Political Economy, Harvard University Institutional Funds
in 2014. (1972 - present) Investment Trust and
Mellon Institutional
Funds Master Portfolio
(oversaw 17 portfolios in
fund complex) (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 43
Independent Trustees (continued)
------------------------------------------------------------------------------------------------------------------------------------
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 (66) Class II Trustee since Founding Director, Vice President and None
Trustee 2003. Term expires Corporate Secretary, The Winthrop Group,
in 2014. 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)
------------------------------------------------------------------------------------------------------------------------------------
Marc O. Mayer (56)+ Class II Trustee since Founding Partner and Chief Executive Trustee, Alliance
Trustee 2014. Term expires Officer, Alignment Financial Services Bernstein Mutual Funds
in 2014. (investment management) (2013- present); (oversaw 92 funds in fund
Chief Executive Officer and Director, GMO complex) (2003-2008);
LLC (investment management) (2009-2011); Board of Overseers,
Executive Vice President, Alliance Columbia Business School
Bernstein LP (investment management) (2010-present); and
(2000-2009); and Executive Vice Director, Alpha Parity
President and Director, Sanford C. LLC (hedge fund)
Bernstein & Co., LLC (investment (2013-present)
management) (1989-2000)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (65) Class III Trustee since President and Chief Executive Officer, Director of New America
Trustee 2003. Term expires Newbury, Piret & Company, Inc. High Income Fund, Inc.
in 2015. Elected by (investment banking firm) (1981 - (closed-end investment
Preferred Shares only. present) company) (2004 -
present); and member,
Board of Governors,
Investment Company
Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
+ Mr. Mayer resigned as a Trustee of the Trust effective May 6, 2014.
44 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (55)* Class I Trustee since Chairman (2013 - present), Director, CEO None
Trustee, President and Chief 2013; Class II Trustee and President of PIM-USA (since February
Executive Officer of the Trust from 2007-2013. Term 2007); Chairman (2013 - present),
expires in 2016. Director and President of Pioneer and
Pioneer Institutional Asset Management,
Inc. (since February 2007); Executive
Vice President of all of the Pioneer
Funds (2007 - 2013); Director of PGAM
(2007 - 2010); Head of New Europe
Division, PGAM (2000 - 2005); and Head
of New Markets Division, PGAM (2005 -
2007)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (55)* Class III Trustee since Director and Executive Vice President None
Trustee 2014. Term expires (since 2008) and Chief Investment
in 2014. 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); Portfolio
Manager of Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Kingsbury and Mr. Taubes are Interested Trustees because they are
officers or directors of the Trust's investment adviser and certain of its
affiliates.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 45
Trust Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Trust Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Mark D. Goodwin (49) Since 2014. Serves Executive Vice President and Chief None
Executive Vice President at the discretion of Operating Officer of Pioneer since 2005
the Board. and Executive Vice President of all the
Pioneer funds since 2014
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (49) Since 2003. Serves Vice President and Associate General None
Secretary and Chief Legal at the discretion of Counsel of Pioneer since January 2008;
Officer the Board. 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 (53) Since 2010. Serves Fund Governance Director of Pioneer None
Assistant Secretary at the discretion of since December 2006 and Assistant
the Board. 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 (51) Since 2010. Serves Senior Counsel of Pioneer since May 2013 None
Assistant Secretary at the discretion of and Assistant Secretary of all the
the Board. Pioneer Funds since June 2010; Counsel
of Pioneer from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (54) Since 2008. Serves Vice President - Fund Treasury of None
Treasurer and Chief Financial at the discretion of Pioneer; Treasurer of all of the Pioneer
and Accounting Officer of the Board. Funds since March 2008; Deputy Treasurer
the Fund of Pioneer from March 2004 to February
2008; and Assistant Treasurer of all of
the Pioneer Funds from March 2004 to
February 2008
------------------------------------------------------------------------------------------------------------------------------------
46 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Trust Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (48) Since 2002. Serves Director - Fund Treasury of Pioneer; and None
Assistant Treasurer at the discretion of Assistant Treasurer of all of the
the Board. Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (55) Since 2002. Serves Fund Accounting Manager - Fund Treasury None
Assistant Treasurer at the discretion of of Pioneer; and Assistant Treasurer of
the Board. all of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (34) Since 2009. Serves Fund Administration Manager - Fund None
Assistant Treasurer at the discretion of Treasury of Pioneer since November 2008;
the Board. 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 (61) Since 2010. Serves Chief Compliance Officer of Pioneer and None
Chief Compliance Officer at the discretion of of all the Pioneer Funds since March
the Board. 2010; 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 (43) Since 2006. Serves Director - Transfer Agency Compliance of None
Anti-Money Laundering Officer at the discretion of Pioneer and Anti-Money Laundering Officer
the Board. of all the Pioneer funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 47
This page for your notes.
48 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
This page for your notes.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 49
This page for your notes.
50 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
This page for your notes.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14 51
This page for your notes.
52 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/14
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) 2014 Pioneer Investments 19205-08-0514
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.
Fees for audit services provided to the Trust, including
fees associated with the filings to update its Form N-2
and issuance of comfort letters, totaled approximately
$38,581 in 2014 and $42,076 in 2013.
(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 for the Trust's audit related services
totaled approximately $9,650 and $9,652 in 2014 and
2013, respectively.
(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.
PFees for tax compliance services, primarily for tax
returns, totaled approximately $8,131 and $8,290 for
2014 and 2013, respectively.
(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.
Audit related fees for the Trust's audit related services
totaled approximately $9,650 and $9,652 in 2014 and
2013, respectively.
(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,
2014 and 2013, 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 $17,781 in
2014 and $17,942 in 2013.
(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 Trust'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
2
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
3
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.
4
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
5
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.
6
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.
7
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.
8
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.
9
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.
10
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.
11
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.
13
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.
14
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.
15
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.
16
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.
DDITIONAL 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, 2014. 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 $1,654,573 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 $1,654,573 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
0
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, 2014 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
2
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/ Daniel K. Kingsbury
Daniel K. Kingsbury, President
Date May 29, 2014
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/ Daniel K. Kingsbury
Daniel K. Kingsbury, President
Date May 29, 2014
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date May 29, 2014
* Print the name and title of each signing officer under his or her signature.