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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, 2014 through March 31, 2015
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, 2015
--------------------------------------------------------------------------------
Ticker Symbol: MAV
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 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 37
Trustees, Officers and Service Providers 39
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 1
President's Letter
Dear Shareowner,
As mid-year approaches, economic conditions and government policies around the
world are far from homogeneous, and we expect them to continue to diverge. In
the United States, an ongoing economic expansion has brought the unemployment
rate down to levels where wage growth is likely to accelerate. Economic growth
and fiscal austerity have dramatically reduced the Federal budget deficit, while
very accommodative Federal Reserve System policies have kept interest rates
exceptionally low. In Europe and Japan, cyclical economic recoveries/expansions
appear to be gaining traction, buttressed by aggressive quantitative easing
policies of central banks as well as cheaper currencies. China's ongoing
transition from an infrastructure investment-driven to a consumer-driven
economy and the dramatic decline in the price of oil -- largely a result of U.S.
"fracking" -- have benefited some countries while burdening others. On balance,
though, the global economic outlook has continued to improve, although economic
and geopolitical "storm clouds" remain.
Today's market environment presents numerous opportunities as well as challenges
for investors. While we believe that the capital markets may already have priced
in some recent trends, such as the U.S. dollar's appreciation against a basket
of global currencies, it is worth noting that investment risks and opportunities
are not always aligned with the economic outlook.
Since 1928, Pioneer's investment professionals have focused on identifying and
capitalizing on the investment opportunities that present themselves in a
variety of ever-changing economic and market conditions, including those we face
today, while seeking to limit the risk of the permanent impairment of our
clients' capital. Our ongoing goal is to deliver competitive returns consistent
with our strategies' stated style and objectives and consistent with our
shareholders' expectations over a range of market conditions. We believe our
shareowners benefit from the experience and tenure of our investment teams, the
insights generated from extensive research resources, and our commitment to
prudent risk management.
2 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
We encourage you to work with your financial advisor to develop an overall
investment plan that addresses both your short- and long-term goals, and to
implement such a plan in a disciplined manner, as we do when managing the assets
our clients have entrusted to us.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA, Inc.
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 | 3/31/15 3
Portfolio Management Discussion | 3/31/15
Municipal bonds generated healthy returns during the 12-month period ended March
31, 2015, with higher-yielding, lower-rated securities outpacing higher-quality
municipals. In the following interview, David Eurkus and Jonathan Chirunga
discuss the factors that influenced the performance of Pioneer Municipal High
Income Advantage Trust during the 12-month period ended March 31, 2015. Mr.
Eurkus, Director of Municipals, a senior vice president and a portfolio manager
at Pioneer, and Mr. Chirunga, a vice president and portfolio manager at Pioneer,
are responsible for the day-to-day management of the Trust.
Q How did Pioneer Municipal High Income Advantage Trust perform during the 12
months ended March 31, 2015?
A Pioneer Municipal High Income Advantage Trust returned 13.65% at net asset
value and 14.70% at market price during the 12-month period ended March 31,
2015. During the same 12-month period, the Trust's benchmarks, the Barclays
High Yield Municipal Bond Index and the Barclays Municipal Bond Index,
returned 8.69% and 6.62%, respectively. The Barclays High Yield Municipal
Bond Index is an unmanaged measure of the performance of lower-rated
municipal bonds, while the Barclays Municipal Bond Index is an unmanaged
measure of the performance of investment-grade 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 13.12%.
The shares of the Trust were selling at a 22.1% premium to net asset value
at the end of the period, on March 31, 2015.
On March 31, 2015, the standardized 30-day SEC yield of the Trust's shares
was 4.74%*.
Q How would you describe the investment environment in the municipal bond
market during the 12-month period ended March 31, 2015?
A Municipal bonds produced strong results over the 12-month period, with
higher-yielding, lower-quality securities outpacing investment-grade
municipal debt. Both traditional tax-conscious investors and investors who
* 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 | 3/31/15
normally would remain focused on the taxable bond market saw attractive
value in the municipal market, which generated strong interest, while the
supply of new bonds -- especially high-yield municipals -- failed to keep
pace with the rising demand.
The period began amidst the early stages of a rally in the municipal market
that continued almost unabated through the end of the Trust's fiscal year
on March 31, 2015. During 2013, prices of municipal bonds had declined for
two main reasons: general concerns among investors about the strength of
the domestic economy, and specific worries about the credit-worthiness of
municipal bonds, in particular. Highly publicized problems with the debt
issued by the City of Detroit and the Commonwealth of Puerto Rico had
created doubts about the credit quality of the municipal market as a whole,
but the doubts had begun to fade by early 2014 as investors realized that
the overall municipal market was healthy, leading to the rally which has
persisted for the past year. Meanwhile, a decline in market interest rates
helped to accelerate the price gains in the longer-term municipal bond
market, and municipal debt, in general, outperformed the taxable parts of
the fixed-income universe.
Within the municipal market, the supply of new investment-grade bonds did
increase somewhat during the 12-month period, but the new supply of
higher-yielding municipals remained constricted, leading to strong price
performance from the high-yield municipal market, which returned 8.69% over
the Trust's fiscal year ended March 31, 2015.
Q How did you manage the Trust's portfolio during the 12-month period ended
March 31, 2015, and which of your investment decisions had the biggest
effects on the Trust's performance?
A Throughout the 12-month period we continued to focus on investing the
Trust's assets in four core sectors of the market: hospital/health care;
educational institutions; tobacco lawsuit settlement bonds; and
transportation bonds. Consistent with our general philosophy, we focused on
investing almost entirely in securities backed by the revenues of specific
projects. We believe the revenue sources supporting such securities can be
more easily analyzed than the revenues sources of general obligation bonds,
which rely on varied and less-predictable municipal tax revenues.
Investments in hospital/health care securities, which constituted a large
part of the Trust's portfolio, performed particularly well during the
period, as did securities backed by transportation projects such as
turnpikes and
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 5
airport facilities. In addition, holdings of bonds supported by educational
institutions, including colleges and charter schools, performed well for
the Trust during the period.
At the end of the Trust's fiscal year on March 31, 2015, the portfolio's
sector weights were highlighted by: hospital/health care bonds, which
represented the largest allocation of the Trust's total investment
portfolio (roughly 20%); tobacco bonds, at nearly 11% of the Trust's total
investment portfolio; education bonds, at more than 9% of the Trust's total
investment portfolio; and transportation bonds, at more than 6% of the
Trust's total investment portfolio.
Q What were some of the individual investments in the Trust's portfolio that
affected performance, either positively or negatively, during the 12-month
period ended March 31, 2015?
A Several hospital/health care bonds provided notable support to the Trust's
performance during the period, including bonds issued by: Philadelphia
(Pennsylvania) Hospital and Higher Education Authority, which are backed by
revenues from facilities at Temple Medical Center; Jefferson Parish
(Louisiana) Hospital; and a Washington State continuing care retirement
community in Seattle. In the transportation sector, bonds issued by the New
Jersey Transportation Authority, the North Texas Highway Authority and the
Pennsylvania State Turnpike Authority all performed very well for the
Trust.
Among the portfolio's investments that underperformed during the fiscal
year was a Massachusetts Health and Education Authority Bond backed by
revenues from the Quincy (MA) Medical Center.
Q How did the level of leverage in the Trust change during the 12-month
period ended March 31, 2015?
A At the end of the 12-month period on March 31, 2015, 33.3% of the Trust's
total managed assets were financed by leverage (or borrowed funds),
compared with 34.5% of the Trust's total managed assets financed by
leverage at the start of the period on April 1, 2014. The percentage
decrease was due to an increase in the value of securities in which the
Trust had invested.
Q Did you use any derivatives in managing the Trust's portfolio during the
12-month period ended March 31, 2015? If so, did the use of derivatives
affect the Trust's performance?
A No, the Trust had no exposure to derivatives during the period.
6 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
Q What were the principal factors affecting the Trust's yield, or dividend
income, during the 12-month period ended March 31, 2015?
A The 12-month period saw longer-term interest rates, which began the period
at very low levels by historical standards, decline even further. Yields on
longer-term Treasuries fell by about one percentage point (100 basis
points) during the period, with most bonds increasing in price. Most long-
term bonds, including municipal securities, joined in the rally, with their
prices increasing even as distribution yield rates declined. Fortunately,
the Trust's portfolio contained many older bonds that paid relatively high
dividends, and that factor helped the Trust keep its dividend distributions
stable during the period*. Price appreciation by the investments in the
Trust's portfolio, however, resulted in a decline in the yield rate.
Shortly after the end of the period, the Trust's distribution for the month
of May decreased by 15.8% (to $0.0800 per share from the April distribution
of $0.0950 per share). The prolonged low interest-rate environment has
reduced the yields of securities throughout the municipal bond market. As a
result, the Trust's maturing and callable higher-yielding securities have
been replaced with new securities with lower yields, reducing the Trust's
income. This change better aligns the Trust's distribution rate with its
current and projected level of earnings and reserves. In addition, the
Trust has drawn on accumulated net investment income in paying the Trust's
dividend in recent periods, but these reserves will be depleted over time.
Q What is your investment outlook?
A We think municipal bonds, especially higher-yielding municipal securities,
still offer near-term attractive values and represent a good investment
opportunity relative to the taxable bond market. While we have, in recent
months, seen a new supply of investment-grade municipal bonds issued at
lower interest rates, we have not seen a comparable increase in new
issuance in the high-yield municipal market.
In a domestic economy that should continue to expand, we think demand for
higher-yielding municipal bonds should persist, keeping the yield
distributions of lower-rated municipal bonds at more attractive levels than
those of securities of comparable credit quality and maturity in the
taxable bond market. With favorable pricing and strong demand dynamics in
place, we think higher-yielding municipal debt should continue to perform
very well.
* Dividends are not guaranteed.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 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 meet certain regulatory and rating agency asset
coverage requirements in connection with its outstanding preferred shares. In
order to maintain required asset coverage levels, the Trust may be required to
alter the composition of its investment portfolio or take other actions, such as
redeeming preferred shares with the proceeds from portfolio transactions, at
what might be inopportune times in the market. Such actions could reduce the net
earnings or returns to holders of the Trust's common shares over time, which is
likely to result in a decrease in the market value of the Trust's shares.
8 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
Risks of investing in the Trust are discussed in greater detail in the Trust's
original offering documents relating to its common shares and shareowner reports
issued from time to time.
These risks may increase share price volatility.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are state-
ments of opinion as of the date of this report. Past performance is no guarantee
of future results.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 9
Portfolio Summary | 3/31/15
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Insured 15.9%
Revenue Bonds: Health Revenue 19.9%
Other Revenue 14.7%
Tobacco Revenue 10.8%
Development Revenue 9.7%
Education Revenue 9.3%
Facilities Revenue 8.1%
Transportation Revenue 6.3%
Water Revenue 2.0%
Pollution Control Revenue 1.7%
Airport Revenue 1.6%
Portfolio Maturity
--------------------------------------------------------------------------------
(As a percentage of total investments)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
0-2 year 8.0%
2-5 years 32.4%
5-7 years 30.7%
7-10 years 15.1%
10-20 years 6.7%
20+ years 7.1%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. North Texas Tollway Authority, Series F, 5.75%, 1/1/33 2.50%
-----------------------------------------------------------------------------------------------------
2. Lehman Municipal Trust Receipts, RIB, 13.124%, 7/28/31 2.50
-----------------------------------------------------------------------------------------------------
3. Massachusetts Development Finance Agency, WGBH Foundation, Series A, 5.75%, 1/1/42 2.41
-----------------------------------------------------------------------------------------------------
4. New Jersey Transportation Trust Fund Authority, 12/15/27 2.35
-----------------------------------------------------------------------------------------------------
5. Private Colleges & Universities Authority, Emory University, Series A, 5.0%, 10/1/43 2.33
-----------------------------------------------------------------------------------------------------
6. New York State Dormitory Authority, Series C, 5.0%, 3/15/39 2.00
-----------------------------------------------------------------------------------------------------
7. New Jersey Economic Development Authority, Continental Airlines, 5.75%, 9/15/27 1.94
-----------------------------------------------------------------------------------------------------
8. Tobacco Settlement Financing Corp., Asset-Backed, Series A, 6.25%, 6/1/42 1.93
-----------------------------------------------------------------------------------------------------
9. Jefferson Parish Hospital Service District No. 2, East Jefferson General
Hospital, 6.375%, 7/1/41 1.90
-----------------------------------------------------------------------------------------------------
10. Buckeye Tobacco Settlement Financing Authority, Asset-Backed, Series A-2,
6.5%, 6/1/47 1.84
-----------------------------------------------------------------------------------------------------
* 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.
10 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
Prices and Distributions | 3/31/15
Share Prices and Distributions
--------------------------------------------------------------------------------
Market Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
3/31/15 3/31/14
--------------------------------------------------------------------------------
Market Value $15.48 $14.60
--------------------------------------------------------------------------------
Premium 22.1% 21.0%
--------------------------------------------------------------------------------
Net Asset Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
3/31/15 3/31/14
--------------------------------------------------------------------------------
Net Asset Value $12.68 $12.07
--------------------------------------------------------------------------------
Distributions per Common Share*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
4/1/14 - 3/31/15 $1.14 $-- $--
--------------------------------------------------------------------------------
The data shown above represents past performance, which is no guarantee of
future results.
* The amount of distributions made to shareholders 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. A decrease in distributions
may have a negative effect on the market value of the Trust's shares.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 11
Performance Update | 3/31/15
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, 2015)
--------------------------------------------------------------------------------
Barclays
Net Barclays High Yield
Asset Municipal Municipal
Value Market Bond Bond
Period (NAV) Price Index Index
--------------------------------------------------------------------------------
10 Years 6.54% 8.89% 4.85% 5.39%
5 Years 9.62 12.54 5.11 7.77
1 Year 13.65 14.70 6.62 8.69
--------------------------------------------------------------------------------
[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
3/31/2005 $10,000 $10,000 $10,000
3/31/2006 $11,155 $10,381 $10,912
3/31/2007 $12,294 $10,944 $11,986
3/31/2008 $11,494 $11,153 $11,207
3/31/2009 $ 8,229 $11,406 $ 9,060
3/31/2010 $12,982 $12,512 $11,625
3/31/2011 $13,628 $12,715 $12,007
3/31/2012 $17,546 $14,249 $13,866
3/31/2013 $19,120 $14,997 $15,849
3/31/2014 $20,435 $15,056 $15,552
3/31/2015 $23,439 $16,052 $16,904
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV due to such factors as interest rate changes
and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Shares of closed-end funds, unlike open-end funds, are not continuously offered.
There is a one-time public offering and, once issued, shares of closed-end funds
are bought and sold in the open market through a stock exchange, and frequently
trade at prices lower than their NAV. NAV per common share is total assets less
total liabilities, which include preferred shares, divided by the number of
common shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends are
assumed to be reinvested at prices obtained through open-market purchases under
the Trust's dividend reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the sale of Trust shares.
Had these fees and taxes been reflected, performance would have been lower.
The 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 $3 million. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Trust returns, do not
reflect any fees, expenses or sales charges. The indices do not employ leverage.
You cannot invest directly in the indices.
12 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
Schedule of Investments | 3/31/15
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
TAX EXEMPT OBLIGATIONS -- 143.1%
of Net Assets (a)
Alabama -- 1.7%
2,500,000 Alabama Industrial Development Authority,
Pine City Fiber Co., 6.45%, 12/1/23 $ 2,510,500
2,500,000 Huntsville-Redstone Village Special Care
Facilities Financing Authority, Redstone Village
Project, 5.5%, 1/1/43 2,512,175
---------------
$ 5,022,675
---------------------------------------------------------------------------------------------------------------
Arizona -- 0.9%
32,000 County of Pima, AZ, Industrial Development Authority,
Arizona Charter Schools Project, Series C,
6.75%, 7/1/31 $ 32,100
2,640,000(b) County of Pima, AZ, Industrial Development Authority,
Constellation Schools Project, 7.0%, 1/1/38 2,826,120
---------------
$ 2,858,220
---------------------------------------------------------------------------------------------------------------
California -- 16.8%
6,990,000 California County Tobacco Securitization Agency,
Asset-Backed, Gold County Funding Corp., 5.25%, 6/1/46 $ 5,004,421
1,845,000 California Educational Facilities Authority,
Stanford University, 5.25%, 4/1/40 2,603,978
1,550,000 California Enterprise Development Authority,
Sunpower Corp., 8.5%, 4/1/31 1,800,712
5,000,000 California Pollution Control Financing Authority, 5.0%,
7/1/37 (144A) 5,200,250
3,000,000 California School Finance Authority, Classical
Academies Project, Series A, 7.375%, 10/1/43 3,511,620
1,875,000 California Statewide Communities Development
Authority, Lancer Plaza Project, 5.875%, 11/1/43 2,021,512
757,342(c)(d) California Statewide Communities Development
Authority, Microgy Holdings Project, 9.0%, 12/1/38 8
1,500,000 City of Madera, CA, Irrigation Financing Authority,
6.25%, 1/1/31 1,745,280
1,500,000 City of Madera, CA, Irrigation Financing Authority,
6.5%, 1/1/40 1,756,080
2,500,000 City of San Jose, CA, Series B, 5.0%, 3/1/37 2,589,550
25,000,000(d) Inland Empire Tobacco Securitization Authority,
Asset-Backed, Series C-1, 6/1/36 5,005,250
3,140,000(e) Lehman Municipal Trust Receipts, RIB, 13.217%,
9/20/28 (144A) 4,109,224
8,575,000(e)(f) Lehman Municipal Trust Receipts, RIB, 13.124%, 7/28/31 10,752,964
1,000,000 River Islands Public Financing Authority, Community
Facilities, 5.5%, 9/1/45 1,029,950
2,425,000(f) State of California, Various Purposes, 5.75%, 4/1/31 2,842,221
465,000 Tobacco Securitization Authority of Southern
California, Series A-1, 5.125%, 6/1/46 385,866
---------------
$ 50,358,886
---------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 13
Schedule of Investments | 3/31/15 (continued)
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Colorado -- 0.8%
1,500,000 Colorado Educational & Cultural Facilities Authority,
Rocky Mountain Classical Academy Project, 8.0%,
9/1/43 $ 1,536,660
1,000,000 Kremmling Memorial Hospital District, Certificate of
Participation, 7.125%, 12/1/45 827,550
---------------
$ 2,364,210
---------------------------------------------------------------------------------------------------------------
Connecticut -- 2.9%
7,200,000(f) State of Connecticut, Series E, 4.0%, 9/1/30 $ 7,713,360
1,000,000 Town of Hamden, CT, Whitney Center Project,
Series A, 7.75%, 1/1/43 1,032,140
---------------
$ 8,745,500
---------------------------------------------------------------------------------------------------------------
District of Columbia -- 3.4%
2,700,000 District of Columbia Tobacco Settlement Financing
Corp., Asset-Backed, 6.5%, 5/15/33 $ 3,434,319
6,825,000 District of Columbia Tobacco Settlement Financing Corp.,
Asset-Backed, 6.75%, 5/15/40 6,825,955
---------------
$ 10,260,274
---------------------------------------------------------------------------------------------------------------
Florida -- 4.5%
1,500,000 Alachua County Health Facilities Authority,
Terraces Bonita Springs Project, Series A, 8.125%,
11/15/41 $ 1,748,955
1,500,000 Alachua County Health Facilities Authority, Terraces
Bonita Springs Project, Series A, 8.125%, 11/15/46 1,745,100
500,000 Capital Trust Agency, Inc., Million Air One LLC,
7.75%, 1/1/41 483,820
2,500,000 County of Miami-Dade, FL, Aviation Revenue, Series B,
5.5%, 10/1/41 2,872,150
5,000,000 Florida's Turnpike Enterprise, Department of Transportation,
Series A, 4.0%, 7/1/32 5,309,650
1,000,000(b) Hillsborough County Industrial Development Authority,
Various Health Facilities, 8.0%, 8/15/32 1,297,290
---------------
$ 13,456,965
---------------------------------------------------------------------------------------------------------------
Georgia -- 5.6%
4,920,000 Clayton County Development Authority, Delta Air
Lines, Series B, 9.0%, 6/1/35 $ 4,972,103
900,000 DeKalb County Georgia Hospital Authority, DeKalb
Medical Center, Inc. Project, 6.0%, 9/1/30 1,001,664
750,000 DeKalb County Georgia Hospital Authority, DeKalb
Medical Center, Inc. Project, 6.125%, 9/1/40 829,717
8,750,000 Private Colleges & Universities Authority, Emory
University, Series A, 5.0%, 10/1/43 10,054,450
---------------
$ 16,857,934
---------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Guam -- 0.4%
1,000,000 Guam Department of Education, Certificates of
Participation, John F. Kennedy High School, Series A,
6.625%, 12/1/30 $ 1,124,300
---------------------------------------------------------------------------------------------------------------
Idaho -- 0.7%
2,000,000 Power County Industrial Development Corp.,
FMC Corp. Project, 6.45%, 8/1/32 $ 2,004,120
---------------------------------------------------------------------------------------------------------------
Illinois -- 4.9%
1,000,000(f) City of Country Club Hills, IL, Sales Tax, 5.0%, 12/1/31 $ 1,015,230
2,000,000 Illinois Finance Authority Revenue, Northwestern
Memorial Hospital, Series A, 6.0%, 8/15/39 2,333,280
45,000 Illinois Finance Authority, Clare Oaks Project,
Series A-3, 7.0%, 11/15/17 45,019
417,400(e) Illinois Finance Authority, Clare Oaks Project,
Series B, 4.0%, 11/15/52 267,007
261,000(d) Illinois Finance Authority, Clare Oaks Project,
Series C-1, 11/15/52 9,101
52,200(d) Illinois Finance Authority, Clare Oaks Project,
Series C-2, 11/15/52 14,306
52,200(d) Illinois Finance Authority, Clare Oaks Project,
Series C-3, 11/15/52 8,999
3,000,000 Illinois Finance Authority, Greenfields of Geneva
Project, Series A, 8.125%, 2/15/40 3,204,330
2,500,000 Illinois Finance Authority, Greenfields of Geneva
Project, Series A, 8.25%, 2/15/46 2,676,700
1,450,000 Illinois Finance Authority, Memorial Health System,
5.5%, 4/1/39 1,619,287
280,000 Illinois Finance Authority, Swedish Covenant,
Series A, 6.0%, 8/15/38 315,907
1,605,000(b) Illinois Finance Authority, Silver Cross Hospital and
Medical Centers, 6.0%, 8/15/25 1,639,524
1,875,000 Southwestern Illinois Development Authority, Village of
Sauget Project, 5.625%, 11/1/26 1,614,113
---------------
$ 14,762,803
---------------------------------------------------------------------------------------------------------------
Indiana -- 1.0%
250,000 City of Carmel, IN, Barrington Carmel Project,
Series A, 7.0%, 11/15/32 $ 280,172
750,000 City of Carmel, IN, Barrington Carmel Project,
Series A, 7.125%, 11/15/42 836,843
500,000 City of Carmel, IN, Barrington Carmel Project,
Series A, 7.125%, 11/15/47 556,240
1,465,000 City of Vincennes, IN, Southwest Indiana Regional,
6.25%, 1/1/24 1,311,146
---------------
$ 2,984,401
---------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 15
Schedule of Investments | 3/31/15 (continued)
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Kansas -- 0.4%
1,000,000 Kansas Development Finance Authority, Hayes
Medical Center, Inc., Series Q, 5.0%, 5/15/35 $ 1,094,030
---------------------------------------------------------------------------------------------------------------
Louisiana -- 6.0%
7,000,000 Jefferson Parish Hospital Service District No. 2,
East Jefferson General Hospital, 6.375%, 7/1/41 $ 8,201,900
2,500,000 Louisiana Local Government Environmental Facilities
& Community Development Authority, Westlake
Chemical Corp. Project, 6.75%, 11/1/32 2,793,450
6,000,000 Louisiana Public Facilities Authority, Ochsner Clinic
Foundation Project, Series A, 5.5%, 5/15/47 6,292,500
750,000 Opelousas Louisiana General Hospital Authority,
Opelousas General Health System Project, 5.75%,
10/1/23 752,640
---------------
$ 18,040,490
---------------------------------------------------------------------------------------------------------------
Maine -- 1.9%
1,500,000 Maine Health & Higher Educational Facilities Authority,
Maine General Medical Center, 7.5%, 7/1/32 $ 1,829,385
3,500,000 Maine Turnpike Authority, Series A, 5.0%, 7/1/42 3,963,995
---------------
$ 5,793,380
---------------------------------------------------------------------------------------------------------------
Maryland -- 3.7%
2,000,000 Maryland Health & Higher Educational Facilities
Authority, Charlestown Community, 6.25%, 1/1/45 $ 2,262,940
2,245,000 Maryland Health & Higher Educational Facilities
Authority, City Neighbors, Series A, 6.75%, 7/1/44 2,463,955
1,250,000 Maryland Health & Higher Educational Facilities
Authority, Doctor's Community Hospital, 5.75%, 7/1/38 1,325,537
4,500,000 Maryland Health & Higher Educational Facilities
Authority, Maryland University Medical System,
Series A, 5.0%, 7/1/43 4,992,525
---------------
$ 11,044,957
---------------------------------------------------------------------------------------------------------------
Massachusetts -- 5.4%
2,200,000 Massachusetts Development Finance Agency, Partner's
Healthcare System, Series M-4, 5.0%, 7/1/39 $ 2,505,558
8,000,000 Massachusetts Development Finance Agency, WGBH
Foundation, Series A, 5.75%, 1/1/42 10,382,560
2,400,000 Massachusetts Health & Educational Facilities Authority,
Massachusetts Institute of Technology, Series K,
5.5%, 7/1/32 3,305,616
3,420,000(c) Massachusetts Health & Educational Facilities Authority,
Quincy Medical Center, Series A, 6.5%, 1/15/38 8,755
---------------
$ 16,202,489
---------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Michigan -- 3.6%
2,000,000 Flint Michigan Hospital Building Authority,
Hurley Medical Center, 7.375%, 7/1/35 $ 2,299,260
2,235,000 Kent Hospital Finance Authority, Metropolitan
Hospital Project, Series A, 6.25%, 7/1/40 2,249,997
620,000 Michigan Public Educational Facilities Authority,
Crescent Academy, 7.0%, 10/1/36 646,046
5,000,000 Michigan State University, Series A, 5.0%, 8/15/41 5,715,450
---------------
$ 10,910,753
---------------------------------------------------------------------------------------------------------------
Minnesota -- 0.8%
2,000,000 Bloomington Port Authority, Radisson Blu Mall
of America, 9.0%, 12/1/35 $ 2,331,740
---------------------------------------------------------------------------------------------------------------
Montana -- 0.7%
2,445,000 City of Hardin, MT, Tax Allocation, Rocky Mountain
Power, Inc. Project, 6.25%, 9/1/31 $ 1,832,650
1,000,000(c) Two Rivers Authority, Inc., 7.375%, 11/1/27 124,900
---------------
$ 1,957,550
---------------------------------------------------------------------------------------------------------------
Nevada -- 2.3%
4,500,000 City of Reno, NV, Renown Regional Medical Center
Project, Series A, 5.25%, 6/1/41 $ 4,782,780
2,000,000 County of Washoe, NV, Fuel Tax, 5.0%, 2/1/43 2,219,820
---------------
$ 7,002,600
---------------------------------------------------------------------------------------------------------------
New Hampshire -- 0.4%
1,125,000(b) New Hampshire Health & Education Facilities Authority,
Speare Memorial Hospital, 5.875%, 7/1/34 $ 1,140,941
---------------------------------------------------------------------------------------------------------------
New Jersey -- 9.3%
7,500,000 New Jersey Economic Development Authority, Continental
Airlines, 5.75%, 9/15/27 $ 8,338,800
3,500,000 New Jersey Health Care Facilities Financing Authority,
Raritan Bay Medical Center, 7.25%, 7/1/27 3,504,970
3,500,000(e) New Jersey State Turnpike Authority, RIB, 13.848%,
7/1/23 (144A) 5,946,850
15,375,000(d) New Jersey Transportation Trust Fund Authority, 12/15/27 10,133,509
---------------
$ 27,924,129
---------------------------------------------------------------------------------------------------------------
New York -- 9.7%
7,000,000 New York City Industrial Development Agency, British
Airways Plc Project, 5.25%, 12/1/32 $ 7,015,540
3,950,000 New York City Industrial Development Agency, British
Airways Plc Project, 7.625%, 12/1/32 3,974,845
5,000,000 New York State Dormitory Authority, Columbia University,
5.0%, 10/1/41 5,749,700
2,000,000 New York State Dormitory Authority, Orange Medical Center,
6.125%, 12/1/29 2,212,460
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 17
Schedule of Investments | 3/31/15 (continued)
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
New York -- (continued)
7,500,000 New York State Dormitory Authority, Series C,
5.0%, 3/15/39 $ 8,625,750
1,400,463 Westchester County Healthcare Corp., Series A,
5.0%, 11/1/44 1,577,552
---------------
$ 29,155,847
---------------------------------------------------------------------------------------------------------------
Ohio -- 5.4%
3,000,000 Akron Bath Copley Joint Township Hospital District,
Akron General Health System, 5.0%, 1/1/31 $ 3,219,780
2,500,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 5.875%, 6/1/47 2,046,175
8,945,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 6.5%, 6/1/47 7,938,240
3,000,000 Ohio State Water Development Authority, First Energy
Generation Project, Series A, 3.0%, 5/15/19 3,073,290
---------------
$ 16,277,485
---------------------------------------------------------------------------------------------------------------
Oregon -- 0.7%
2,000,000 Oregon State Facilities Authority, Samaritan Health
Services, Series A, 5.25%, 10/1/40 $ 2,184,180
---------------------------------------------------------------------------------------------------------------
Pennsylvania -- 9.3%
1,965,000 Pennsylvania Economic Development Financing Authority,
US Airways Group, Series B, 8.0%, 5/1/29 $ 2,369,358
5,000,000 Pennsylvania Economic Development Financing Authority,
USG Corp. Project, 6.0%, 6/1/31 5,000,400
5,000,000 Pennsylvania Turnpike Commission, Series D, 5.3%, 12/1/41 5,647,650
6,000,000 Philadelphia Authority for Industrial Development, Nueva
Esperanze, Inc., 8.2%, 12/1/43 6,725,580
1,000,000 Philadelphia Authority for Industrial Development,
Performing Arts Charter School Project, 6.5%,
6/15/33 (144A) 1,024,200
2,000,000 Philadelphia Authority for Industrial Development,
Performing Arts Charter School Project, 6.75%,
6/15/43 (144A) 2,054,320
5,000,000 Philadelphia Hospitals & Higher Education Facilities
Authority, Temple University Health System, Series A,
5.0%, 7/1/34 5,054,700
---------------
$ 27,876,208
---------------------------------------------------------------------------------------------------------------
Puerto Rico -- 1.2%
4,500,000(f) Commonwealth of Puerto Rico, Series A, 8.0%, 7/1/35 $ 3,695,760
---------------------------------------------------------------------------------------------------------------
Rhode Island -- 3.5%
1,355,000(c) Central Falls Detention Facility Corp., 7.25%, 7/15/35 $ 338,858
1,500,000 Rhode Island Health & Educational Building Corp.,
Tockwatten Home Issue, 8.375%, 1/1/46 1,733,895
8,285,000 Tobacco Settlement Financing Corp., Asset-Backed,
Series A, 6.25%, 6/1/42 8,311,015
---------------
$ 10,383,768
---------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
South Carolina -- 2.0%
4,400,000(g) Tobacco Settlement Revenue Management Authority,
Series B, 6.375%, 5/15/30 $ 6,078,864
---------------------------------------------------------------------------------------------------------------
South Dakota -- 1.3%
4,000,000 South Dakota Health & Educational Facilities Authority,
Sanford Health, Series B, 4.0%, 11/1/44 $ 4,003,040
---------------------------------------------------------------------------------------------------------------
Tennessee -- 3.0%
5,000,000 Johnson City Health & Educational Facilities Board,
Mountain States Health Alliance, 6.5%, 7/1/38 $ 5,889,100
3,000,000 Sullivan County Health, Educational & Housing
Facilities Board, Wellmont Health System Project,
Series C, 5.25%, 9/1/36 3,127,740
-------------
$ 9,016,840
---------------------------------------------------------------------------------------------------------------
Texas -- 17.2%
1,000,000 Arlington Higher Education Finance Corp., Universal
Academy, Series A, 7.0%, 3/1/34 $ 1,061,830
1,500,000 Arlington Higher Education Finance Corp.,
Universal Academy, Series A, 7.125%, 3/1/44 1,594,890
2,500,000 Central Texas Regional Mobility Authority, Sub Lien,
6.75%, 1/1/41 3,061,150
5,000,000(f) Goose Creek Consolidated Independent School
District, Series C, 4.0%, 2/15/26 5,625,150
2,663,453(c) Gulf Coast Industrial Development Authority, Microgy
Holdings Project, 7.0%, 12/1/36 27
3,000,000 Houston Higher Education Finance Corp., St. John's
School Project, Series A, 5.0%, 9/1/38 3,261,000
315,000 IAH Public Facility Corp. Project, 6.0%, 5/1/16 202,967
1,000,000 IAH Public Facility Corp. Project, 6.0%, 5/1/21 549,340
1,350,000 IAH Public Facility Corp. Project, 6.125%, 5/1/26 741,609
2,000,000 Lubbock Health Facilities Development Corp.,
Carillon Project, Series A, 6.625%, 7/1/36 2,061,020
9,750,000 North Texas Tollway Authority, Series F, 5.75%, 1/1/33 10,789,545
1,500,000 Red River Health Facilities Development Corp.,
MRC Crestview, Series A, 8.0%, 11/15/41 1,775,970
2,000,000(f) Richardson Independent School District, School
Building, 5.0%, 2/15/38 2,293,640
4,000,000 Sanger Industrial Development Corp., Texas Pellets
Project, Series B, 8.0%, 7/1/38 4,538,320
1,000,000 Tarrant County Cultural Education Facilities Finance
Corp., Mirador Project, Series A, 8.125%, 11/15/39 965,390
750,000 Tarrant County Cultural Education Facilities Finance
Corp., Mirador Project, Series A, 8.25%, 11/15/44 728,910
1,000,000(c) Texas Midwest Public Facility Corp., Secure Treatment
Facility Project, 9.0%, 10/1/30 177,000
3,000,000 Texas Private Activity Bond Surface Transportation Corp.,
NTE Mobility Partners LLC, 7.0%, 12/31/38 3,743,520
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 19
Schedule of Investments | 3/31/15 (continued)
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
Texas -- (continued)
2,500,000 Travis County Health Facilities Development Corp.,
Longhorn Village Project, 7.125%, 1/1/46 $ 2,727,850
5,000,000(f) Tyler Independent School District, School Building,
5.0%, 2/15/38 5,734,100
-------------
$ 51,633,228
---------------------------------------------------------------------------------------------------------------
Virginia -- 3.4%
2,000,000 County of Washington, VA, Industrial Development
Authority, Mountain States Health Alliance, Series C,
7.75%, 7/1/38 $ 2,352,320
3,000,000 Tobacco Settlement Financing Corp., Series B-1, 5.0%,
6/1/47 2,165,730
5,000,000 Virginia Public School Authority Revenue, 4.0%, 8/1/25 5,772,650
-------------
$ 10,290,700
---------------------------------------------------------------------------------------------------------------
Washington -- 4.1%
1,500,000(b) Washington State Health Care Facilities Authority,
Kadlec Regional Medical Center, 5.5%, 12/1/39 $ 1,832,115
2,000,000 Washington State Health Care Facilities Authority,
VA Mason Medical, Series A, 6.125%, 8/15/37 2,175,080
2,000,000 Washington State Health Care Facilities Authority,
VA Mason Medical, Series A, 6.25%, 8/15/42 2,175,980
1,100,000 Washington State Housing Finance Commission,
Mirabella Project, Series A, 6.75%, 10/1/47 1,204,819
5,000,000 Washington State Housing Finance Commission,
Skyline at First Hill Project, Series A, 5.625%, 1/1/27 5,038,000
-------------
$ 12,425,994
---------------------------------------------------------------------------------------------------------------
West Virginia -- 0.9%
2,000,000 City of Philippi, WV, Alderson-Broaddus College, Inc.,
Series A, 7.75%, 10/1/44 $ 1,885,760
735,000 West Virginia Hospital Finance Authority, Highland Hospital
Group, 9.125%, 10/1/41 823,803
-------------
$ 2,709,563
---------------------------------------------------------------------------------------------------------------
Wisconsin -- 3.3%
1,500,000 Public Finance Authority, SearStone CCRC Project,
Series A, 8.625%, 6/1/47 $ 1,813,920
260,000 Public Finance Authority, SearStone CCRC Project,
Series B, 8.375%, 6/1/20 260,884
1,500,000(b) Wisconsin Health & Educational Facilities Authority,
Pro Healthcare, Inc. Group, 6.625%, 2/15/39 1,807,920
5,000,000 Wisconsin Public Finance Authority Continuing Care
Retirement Community Revenue, 8.25%, 6/1/46 5,905,600
-------------
$ 9,788,324
---------------------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT OBLIGATIONS
(Cost $391,371,155) $ 429,763,148
---------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
---------------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
---------------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED
DEBT OBLIGATION -- 0.3% of Net Assets
13,000,000(e) Non-Profit Preferred Funding Trust I, Series E,
0.0%, 9/15/37 (144A) $ 969,410
---------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED
DEBT OBLIGATION
(Cost $13,000,000) $ 969,410
---------------------------------------------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET
MUTUAL FUND -- 2.0% of Net Assets
6,000,000 BlackRock Liquidity Funds MuniFund Portfolio $ 6,000,000
---------------------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT MONEY MARKET
MUTUAL FUND
(Cost $6,000,000) $ 6,000,000
---------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 145.4%
(Cost -- $410,371,155) (h) $ 436,732,558
---------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 4.5% $ 13,598,649
---------------------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (49.9)% $(150,000,387)
---------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHAREOWNERS -- 100.0% $ 300,330,820
===============================================================================================================
(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, 2015, the value of these securities amounted to $19,304,254, or 6.4%
of total net assets applicable to common shareowners.
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, 2015.
(a) Consists of Revenue Bonds unless otherwise indicated.
(b) 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.
(c) Security is in default and is non income producing.
(d) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(e) The interest rate is subject to change periodically. The interest rate
shown is the rate at March 31, 2015.
(f) Represents a General Obligation Bond.
(g) Escrow to maturity.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 21
Schedule of Investments | 3/31/15 (continued)
(h) At March 31, 2015, the net unrealized appreciation on investments based
on cost for federal tax purposes of $404,702,854 was as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 54,234,176
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (22,204,472)
------------
Net unrealized appreciation $ 32,029,704
============
For financial reporting purposes net unrealized appreciation on investments was
$26,361,403 and cost of investments aggregated $410,371,155.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended March 31, 2015 aggregated $85,602,089 and $87,472,069, 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 or
broker-dealers) as Level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
22 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
The following is a summary of the inputs used as of March 31, 2015, in valuing
the Trust's investments.
--------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------------------
Tax Exempt Obligations $ -- $429,763,148 $ -- $429,763,148
Municipal Collateralized
Debt Obligation -- 969,410 -- 969,410
Tax Exempt Money Market
Mutual Fund 6,000,000 -- -- 6,000,000
--------------------------------------------------------------------------------------------------------
Total Investments in Securities $6,000,000 $430,732,558 $ -- $436,732,558
========================================================================================================
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
3/31/14 (loss)(1) (depreciation)(2) Purchases Sales premiums Level 3* Level 3* 3/31/15
-----------------------------------------------------------------------------------------------------------------------------------
Tax exempt
obligations $2,955,000 $339,303 $(156,566) $ -- $(3,139,500) $1,763 $ -- $ -- $ --
-----------------------------------------------------------------------------------------------------------------------------------
Total $2,955,000 $339,303 $(156,566) $ -- $(3,139,500) $1,763 $ -- $ -- $ --
-----------------------------------------------------------------------------------------------------------------------------------
* Transfers are calculated on the beginning of period values. During the year
ended March 31, 2015, there were no transfers between Levels 1, 2 and 3.
(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 appreciation (depreciation) of Level 3 investments
still held and considered Level 3 at 3/31/15: $0.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 23
Statement of Assets and Liabilities | 3/31/15
ASSETS:
Investments in securities, at value (cost $410,371,155) $436,732,558
Cash 6,982,557
Receivables --
Interest receivable 6,846,772
Reinvestment of distributions 171,071
--------------------------------------------------------------------------------------------
Total assets $450,732,958
--------------------------------------------------------------------------------------------
LIABILITIES:
Due to affiliates $ 228,136
Administration fee payable 97,523
Accrued expenses 76,092
--------------------------------------------------------------------------------------------
Total liabilities $ 401,751
--------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 6,000
shares, including dividends payable of $387 $150,000,387
--------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $322,011,653
Undistributed net investment income 4,772,758
Accumulated net realized loss on investments (52,814,994)
Net unrealized appreciation on investments 26,361,403
--------------------------------------------------------------------------------------------
Net assets applicable to common shareowners $300,330,820
============================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $300,330,820 / 23,686,670 common shares $ 12.68
============================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
Statement of Operations
For the Year Ended 3/31/15
INVESTMENT INCOME:
Interest $26,119,642
----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 2,676,430
Administrative reimbursements 232,580
Transfer agent fees and expenses 13,700
Shareholder communication expenses 19,602
Auction agent fees 375,429
Custodian fees 6,467
Professional fees 152,152
Printing expenses 12,681
Trustees' fees 13,861
Pricing fees 19,300
Miscellaneous 77,018
----------------------------------------------------------------------------------------------
Total expenses $ 3,599,220
----------------------------------------------------------------------------------------------
Net investment income $22,520,422
----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $(4,419,050)
Change in net unrealized appreciation on Investments 23,056,196
----------------------------------------------------------------------------------------------
Net gain on investments $18,637,146
----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM
NET INVESTMENT INCOME: $ (194,738)
----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $40,962,830
==============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 25
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------
Year Ended Year Ended
3/31/15 3/31/14
--------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 22,520,422 $ 25,294,248
Net realized gain (loss) on investments (4,419,050) 1,349,154
Change in net unrealized appreciation (depreciation)
on investments 23,056,196 (34,120,415)
Distributions to preferred shareowners from net
investment income (194,738) (238,258)
--------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 40,962,830 $ (7,715,271)
--------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income and previously undistributed
net investment income ($1.14 and $1.14 per
share, respectively) $(26,911,733) $(26,754,525)
--------------------------------------------------------------------------------------------
Total distributions to common shareowners $(26,911,733) $(26,754,525)
--------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 2,071,611 $ 1,804,149
--------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners from Trust share transactions $ 2,071,611 $ 1,804,149
--------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners $ 16,122,708 $(32,665,647)
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of year 284,208,112 316,873,759
--------------------------------------------------------------------------------------------
End of year $300,330,820 $284,208,112
--------------------------------------------------------------------------------------------
Undistributed net investment income $ 4,772,758 $ 8,291,054
============================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
3/31/15 3/31/14 3/31/13 3/31/12 3/31/11
--------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of year $ 12.07 $ 13.54 $ 12.87 $ 11.54 $ 12.24
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 0.95 $ 1.08 $ 1.07 $ 1.08 $ 1.18
Net realized and unrealized gain (loss) on investments 0.81 (1.40) 0.76 1.58 (0.79)
--------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareowners from:
Net investment income $ (0.01) $ (0.01) $ (0.02) $ (0.02) $ (0.03)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.75 $ (0.33) $ 1.81 $ 2.64 $ 0.36
--------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income and previously undistributed
net investment income $ (1.14)* $ (1.14)* $ (1.14)* $ (1.31)* $ (1.06)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.61 $ (1.47) $ 0.67 $ 1.33 $ (0.70)
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year (b) $ 12.68 $ 12.07 $ 13.54 $ 12.87 $ 11.54
--------------------------------------------------------------------------------------------------------------------------
Market value, end of year (b) $ 15.48 $ 14.60 $ 15.51 $ 14.72 $ 12.64
==========================================================================================================================
Total return at market value (c) 14.70% 2.59% 13.53% 28.48% 4.97%
Ratios to average net assets of common shareowners:
Total expenses (d) 1.22% 1.19% 1.23% 1.36% 1.35%
Net investment income before preferred share distributions 7.61% 8.81% 8.08% 8.73% 9.54%
Preferred share distributions 0.07% 0.08% 0.14% 0.15% 0.25%
Net investment income available to common shareowners 7.54% 8.73% 7.94% 8.58% 9.29%
Portfolio turnover 20% 24% 14% 15% 10%
Net assets of common shareowners, end of year (in thousands) $300,331 $284,208 $316,874 $299,637 $266,870
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 27
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
3/31/15 3/31/14 3/31/13 3/31/12 3/31/11
---------------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) $150,000 $150,000 $150,000 $150,000 $150,000
Asset coverage per preferred share, end of year $ 75,055 $ 72,367 $ 77,813 $ 74,941 $ 69,479
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 $ 25,000 $ 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 the accumulated net investment income
was distributed to shareowners during the period. A decrease in
distributions may have a negative effect on the market value of the Trust's
shares.
(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 accompanying notes are an integral part of these financial statements.
28 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
Notes to Financial Statements | 3/31/15
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
period. 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 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.
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. 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 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
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 29
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, 2015, there were no securities valued using fair value methods
(in addition to securities valued using prices supplied by independent
pricing services or broker-dealers).
B. Investment Income and Transactions
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
date in the exercise of reasonable diligence.
Interest income, including interest or income bearing cash accounts, is
recorded on an accrual basis.
Discounts and premiums on purchase prices of debt securities are accreted
or amortized, respectively, daily, into interest income on an effective
yield basis with a corresponding increase or decrease in the cost basis of
the security.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
C. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
March 31, 2015, 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. 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 | 3/31/15
At March 31, 2015, the Trust reclassified $1,067,753 to increase
undistributed net investment income and $1,067,753 to increase accumulated
net realized loss on investments 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, 2015, the Trust was permitted to carry forward $1,686,176 of
short term and $10,215,655 of long term capital losses without limitation.
Additionally, at March 31, 2015, 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. Since unlimited losses
are required to be used first, loss carryforwards that are subject to
expiration may be more likely to expire unused.
The Trust has elected to defer $7,034,492 of long-term capital losses
recognized between November 1, 2014 and March 31, 2015 to its fiscal year
ending March 31, 2016.
The tax character of distributions paid to shareowners during the years
ended March 31, 2015 and March 31, 2014 were as follows:
------------------------------------------------------------------------------------
2015 2014
------------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $25,994,001 $25,927,367
Ordinary income 1,112,470 1,065,416
------------------------------------------------------------------------------------
Total $27,106,471 $26,992,783
====================================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at March 31, 2015:
------------------------------------------------------------------------------------
2015
------------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 500,912
Capital loss carryforward (50,928,780)
Late year loss deferrals (7,034,492)
Other book/tax temporary differences 5,667,914
Tax-exempt spillback 3,752,210
Unrealized appreciation 26,361,403
------------------------------------------------------------------------------------
Total $(21,680,833)
====================================================================================
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, book/tax
difference in accrual of income on securities in default, and other book
and tax temporary differences.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 31
D. 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 | 3/31/15
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.
E. 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, 2015, the net management fee was 0.60% of the Trust's average daily
managed assets, which was equivalent to 0.90% 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,
2015, $325,659 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 | 3/31/15 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 calls.
4. Expense Offset Arrangement
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, 2015, 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, 2015 and the year ended March 31, 2014 were as follows:
--------------------------------------------------------------------------------
3/31/15 3/31/14
--------------------------------------------------------------------------------
Shares outstanding at beginning of year 23,543,462 23,406,918
Reinvestment of distributions 143,208 136,544
--------------------------------------------------------------------------------
Shares outstanding at end of year 23,686,670 23,543,462
================================================================================
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, 2015, 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 0.087% to 0.260% during the year ended March
31, 2015.
34 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
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
A monthly dividend was declared on April 2, 2015 from undistributed and
accumulated net investment income of $0.0950 per common share payable April 30,
2015, to common shareowners of record on April 15, 2015.
Subsequent to March 31, 2015, dividends declared and paid on preferred shares
totaled $26,010 in aggregate for the two outstanding preferred share series
through May 14, 2015.
PIM, the Trust's investment adviser, is currently an indirect, wholly-owned
subsidiary of UniCredit. On April 23, 2015, UniCredit announced that it signed a
preliminary and exclusive agreement with Banco Santander and affiliates of
Warburg Pincus and General Atlantic (the "Private Equity Firms") with respect to
Pioneer Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
Pursuant to the preliminary agreement, the Transaction will entail the
establishment of a holding company, with the name Pioneer Investments, to be
owned by UniCredit (50%) and the Private Equity Firms (50% between them). The
holding company will control Pioneer's U.S. operations, including the
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 35
Adviser. The holding company also will own 66.7% of Pioneer's and SAM's combined
operations outside the U.S., while Banco Santander will own directly the
remaining 33.3% stake. The completion of the Transaction is subject to the
signing of a definitive agreement, as well as certain regulatory and corporate
approvals, and other conditions.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Trust's investment advisory agreement with the Adviser to terminate.
In connection with the Transaction, the Trust's Board of Trustees will be asked
to approve a new investment advisory agreement for the Trust. If approved by the
Board, the Trust's new investment advisory agreement will be submitted to the
shareholders of the Trust for their approval.
Pioneer Municipal High Income Advantage Trust's May distribution of $0.0800 per
share represents a 15.8% decrease from the $0.0950 per share distribution paid
in April. The prolonged low interest-rate environment has reduced the yields of
securities throughout the municipal bond market. As a result, the Funds'
maturing and callable higher yielding securities have been replaced with new
securities with lower yields, reducing the Funds' income. This change better
aligns the Funds' distribution rate with its current and projected level of
earnings and reserves.
7. Change in Independent Registered Public Accounting Firm
The Board of Trustees of the Trust, with the approval and recommendation of the
Audit Committee, has appointed Deloitte & Touche LLP to serve as the Trust's
independent registered public accounting firm. Deloitte & Touche LLP replaced
Ernst & Young LLP, which resigned as the Trust's independent registered public
accounting firm effective upon completion of the audit of the Trust's financial
statements for the fiscal year ended March 31, 2014.
During the periods that Ernst & Young LLP served as the Trust's independent
registered public accounting firm, including the Trust's fiscal years ending
March 31, 2014 and March 31, 2013, Ernst & Young LLP's reports on the financial
statements of the Trust have not contained an adverse opinion or disclaimer of
opinion and have not been qualified or modified as to uncertainty, audit scope
or accounting principles. Further, there have been no disagreements with Ernst &
Young LLP on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which, if not resolved to
the satisfaction of Ernst & Young LLP would have caused Ernst & Young LLP to
make reference to the subject matter of the disagreement in connection with its
report on the financial statements. In addition, there have been no reportable
events of the kind described in Item 304(a)(1)(v) of Regulation S-K under the
Securities Exchange Act of 1934.
36 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of
Pioneer Municipal High Income Advantage Trust:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Municipal High Income Advantage Trust
(the "Trust"), as of March 31, 2015, and the related statements of operations,
changes in net assets, and the financial highlights for the year 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 audit. The statement
of changes in net assets of the Fund for the year ended March 31, 2014, and the
financial highlights for the years ended March 31, 2014, 2013, 2012, and 2011
were audited by other auditors. Those auditors expressed an unqualified opinion
on those financial statements and financial highlights in their report dated May
22, 2014.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit 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 Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of March 31, 2015, by correspondence with the custodian,
brokers and agent banks; where replies were not received from brokers and agent
banks, we performed other auditing procedures. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Municipal High Income Advantage Trust as of March 31, 2015, the results
of its operations, changes in its net assets and financial highlights for the
year then ended, in conformity with accounting principles generally accepted in
the United States of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
May 22, 2015
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 37
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. During the period, 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, 2015.
--------------------------------------------------------------------------------
Payable Date Ordinary Income
--------------------------------------------------------------------------------
Common Shareowners 12/10/14 0.046747
Preferred Shareowners 1/6/15 0.720000
Series A 1/13/15 0.720000
1/20/15 0.910000
1/27/15 0.790000
2/3/15 0.600000
2/10/15 0.600000
2/17/15 0.600000
2/24/15 0.600000
3/3/15 0.540000
3/10/15 0.540000
3/17/15 0.480000
3/24/15 0.600000
3/31/15 0.540000
Series B 1/5/15 0.080000
1/12/15 0.600000
1/20/15 1.040000
1/26/15 0.670000
2/2/15 0.600000
2/9/15 0.600000
2/17/15 0.680000
2/23/15 0.510000
3/2/15 0.540000
3/9/15 0.540000
3/16/15 0.480000
3/23/15 0.600000
3/30/15 0.480000
All the other net investment income distributions paid by the Trust qualify as
tax-exempt interest dividends for federal income tax purposes.
38 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Trust's Trustees and officers are listed below, together with their
principal occupations during at least the past five years. Trustees who are
interested persons of the Trust within the meaning of the 1940 Act are referred
to as Interested Trustees. Trustees who are not interested persons of the Trust
are referred to as Independent Trustees. Each of the Trustees serves as a
Trustee of each of the 52 U.S. registered investment portfolios for which
Pioneer serves as investment adviser (the "Pioneer Funds"). The address for all
Trustees and all officers of the Trust is 60 State Street, Boston, Massachusetts
02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 39
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 (64) Class III Trustee since 2006. Private investor (2004 - 2008 Director, Broadridge Financial
Chairman of the Board Term expires in 2015. and 2013 - present); Chairman Solutions, Inc. (investor
and Trustee (2008 - 2013) and Chief communications and securities
Executive Officer (2008 - 2012), processing provider for
Quadriserv, Inc. (technology financial services industry)
products for securities lending (2009 - present); Director,
industry); and Senior Executive Quadriserv, Inc. (2005 -
Vice President, The Bank of New 2013); and Commissioner, New
York (financial and securities Jersey State Civil Service
services) (1986 - 2004) Commission (2011 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (71) Class I Trustee since 2005. Managing Partner, Federal City Director of New York Mortgage
Trustee Term expires in 2016. Capital Advisors (corporate Trust (publicly traded
advisory services company) (1997 mortgage REIT) (2004 - 2009,
- 2004 and 2008 - present); 2012 - present); Director of
Interim Chief Executive Officer, The Swiss Helvetia Fund, Inc.
Oxford Analytica, Inc. (closed-end fund) (2010 -
(privately-held research and present); Director of Oxford
consulting company) (2010); Analytica, Inc. (2008 -
Executive Vice President and present); and Director of
Chief Financial Officer, I-trax, Enterprise Community
Inc. (publicly traded health Investment, Inc.
care services company) (2004 - (privately-held affordable
2007); Executive Vice President housing finance company) (1985
and Chief Financial Officer, - 2010)
Pedestal Inc. (internet-based
mortgage trading company) (2000
- 2002); Private Consultant
(1995 - 1997); Managing
Director, Lehman Brothers (1992
- 1995); and Executive, The
World Bank (1979 - 1992)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (70) Class II Trustee since 2008. William Joseph Maier Professor Trustee, Mellon Institutional
Trustee Term expires in 2017. of Political Economy, Harvard Funds Investment Trust and
University (1972 - present) Mellon Institutional Funds
Master Portfolio (oversaw 17
portfolios in fund complex)
(1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
40 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
------------------------------------------------------------------------------------------------------------------------------------
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 (67) Class II Trustee since 2003. Founding Director, Vice President None
Trustee Term expires in 2017. and Corporate Secretary, The
Winthrop Group, Inc. (consulting
firm) (1982 - present); Desautels
Faculty of Management, McGill
University (1999 - present); and
Manager of Research Operations
and Organizational Learning,
Xerox PARC, Xerox's advance
research center (1990 - 1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (66) Class III Trustee since 2003. President and Chief Executive Director of New America High
Trustee Term expires in 2015. Officer, Newbury, Piret & Company, Income Fund, Inc. (closed-end
Inc. (investment banking firm) investment company) (2004 -
(1981 - present) present); and member, Board
of Governors, Investment
Company Institute (2000 -
2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (68) Class III Trustee since 2014. Consultant (investment company None
Trustee Term expires in 2015. services) (2012 - present);
Executive Vice President, BNY
Mellon (financial and investment
company services) (1969 - 2012);
Director, BNY International
Financing Corp. (financial
services) (2002 - 2012); and
Director, Mellon Overseas
Investment Corp. (financial
services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 41
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (53)* Class I Trustee since 2014. Chair, Director, CEO and None
Trustee, President and Term expires in 2016. President of Pioneer Investment
Chief Executive Officer Management-USA (since September
2014); Chair, Director, CEO and
President of Pioneer Investment
Management, Inc. (since
September 2014); Chair,
Director, CEO and President of
Pioneer Funds Distributor, Inc.
(since September 2014); Chair,
Director, CEO and President of
Pioneer Institutional Asset
Management, Inc. (since
September 2014); and Chair,
Director and CEO of Pioneer
Investment Management
Shareholder Services, Inc.
(since September 2014); Managing
Director, Morgan Stanley
Investment Management (2010 -
2013); and Director of
Institutional Business, CEO of
International, Eaton Vance
Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (56)* Class II Trustee since 2014. Director and Executive Vice None
Trustee Term expires in 2017. President (since 2008) and Chief
Investment Officer, U.S. (since
2010), of PIM-USA; Executive
Vice President of Pioneer (since
2008); Executive Vice President
of Pioneer Institutional Asset
Management, Inc. (since 2009);
and Portfolio Manager of Pioneer
(since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers
or directors of the Trust's investment adviser and certain of its
affiliates.
42 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (58)** Advisory Trustee since 2014. Chief Investment Officer, 1199 None
SEIU Funds (health care workers
union pension Funds) (2001 -
present); Vice President
-International Investments
Group, American International
Group, Inc. (insurance company)
(1993 - 2001); Vice President,
Corporate Finance and Treasury
Group, Citibank, N.A. (1980 -
1986 and 1990 - 1993); Vice
President - Asset/Liability
Management Group, Federal Farm
Funding Corp.
(government-sponsored Issuer of
debt securities) (1988 - 1990);
Mortgage Strategies Group,
Shearson Lehman Hutton, Inc.
(investment bank) (1987 - 1988);
and Mortgage Securities Group,
Drexel Burnham Lambert, Ltd.
(investment bank) (1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
** Ms. Monchak in a non-voting Advisory Trustee.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 43
Trust Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (50) Since 2003. Serves at the Vice President and Associate None
Secretary and Chief Legal discretion of the Board. General Counsel of Pioneer since
Officer January 2008; 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 (54) Since 2010. Serves at the Fund Governance Director of None
Assistant Secretary discretion of the Board. Pioneer since December 2006 and
Assistant Secretary of all the
Pioneer Funds since June 2010;
Manager - Fund Governance of
Pioneer from December 2003 to
November 2006; and Senior
Paralegal of Pioneer from January
2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (52) Since 2010. Serves at the Senior Counsel of Pioneer since None
Assistant Secretary discretion of the Board. May 2013 and Assistant Secretary
of all the Pioneer Funds since
June 2010; and Counsel of Pioneer
from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2008. Serves at the Vice President - Fund Treasury of None
Treasurer and Chief Financial discretion of the Board. Pioneer; Treasurer of all of the
and Accounting Officer Pioneer Funds since March 2008;
of the Trust Deputy Treasurer of Pioneer from
March 2004 to February 2008; and
Assistant Treasurer of all of the
Pioneer Funds from March 2004 to
February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (49) Since 2002. Serves at the Director - Fund Treasury of None
Assistant Treasurer discretion of the Board. Pioneer; and Assistant Treasurer
of all of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
44 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (56) Since 2002. Serves at the Fund Accounting Manager - Fund None
Assistant Treasurer discretion of the Board. Treasury of Pioneer; and
Assistant Treasurer of all of the
Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (35) Since 2009. Serves at the Fund Administration Manager - None
Assistant Treasurer discretion of the Board. Fund Treasury of Pioneer since
November 2008; Assistant
Treasurer of all of the Pioneer
Funds since January 2009; and
Client Service Manager -
Institutional Investor Services
at State Street Bank from March
2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (62) Since 2010. Serves at the Chief Compliance Officer of None
Chief Compliance Officer discretion of the Board. Pioneer and of all the Pioneer
Funds since March 2010; Chief
Compliance Officer of Pioneer
Institutional Asset Management,
Inc. since January 2012; Chief
Compliance Officer of Vanderbilt
Capital Advisors, LLC since July
2012; Director of Adviser and
Portfolio Compliance at Pioneer
since October 2005; and Senior
Compliance Officer for Columbia
Management Advisers, Inc. from
October 2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (44) Since 2006. Serves at the Director - Transfer Agency None
Anti-Money Laundering Officer discretion of the Board. Compliance of Pioneer and
Anti-Money Laundering Officer of
all the Pioneer funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 45
This page for your notes.
46 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
This page for your notes.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 47
This page for your notes.
48 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
This page for your notes.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 49
This page for your notes.
50 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
This page for your notes.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15 51
This page for your notes.
52 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/15
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) 2015 Pioneer Investments 19205-09-0515
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
The audit services provided to the Trust were totaled
approximately $40,803 payable to Deloitte & Touche
LLP for the year ended March 31, 2015 and $38,581
were paid to the former auditor, Ernst & Young LLP
for the year ended March 31, 2014.
(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.
There were no audit related fees and other fees for
the Trust payable to Deloitte & Touche LLP for
the year ended March 31, 2015 and $9,650 were paid to
the former auditor, Ernst & Young LLP for the year
ended March 31, 2014.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Fees for tax compliance services, primarily for tax
returns, totaled approximately $9,876 payable to
Deloitte & Touche LLP for the year ended March 31,
2015 and $8,131 were paid to the former auditor,
Ernst & Young LLP for the year ended March 31, 2014.
(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.
There were no audit related fees and other fees for
the Trust payable to Deloitte & Touche LLP for
the year ended March 31, 2015 and $9,650 were paid to
the former auditor, Ernst & Young LLP for the year
ended March 31, 2014.
(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, 2015
and 2014, 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 were $9,876
payable to Deloitte & Touche LLP for the year ended
March 31, 2015 and $17,781 were paid to the former
auditor, Ernst & Young LLP for the year ended March 31,
2014.
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.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
roxy 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.
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Proxy Voting Procedures
Proxy Voting Service
Pioneer has engaged an independent proxy voting service to assist in the
voting of proxies. The proxy voting service works with custodians to ensure
that all proxy materials are received by the custodians and are processed
in a timely fashion. To the extent applicable, the proxy voting service
votes all proxies in accordance with the proxy voting policies established
by Pioneer. The proxy voting service will refer proxy questions to the
Proxy Coordinator (described below) for instructions under circumstances
where: (1) the application of the proxy voting guidelines is unclear; (2) a
particular proxy question is not covered by the guidelines; or (3) the
guidelines call for specific instructions on a case-by-case basis. The
proxy voting service is also requested to call to the Proxy Coordinator's
attention specific proxy questions that, while governed by a guideline,
appear to involve unusual or controversial issues. Pioneer reserves the
right to attend a meeting in person and may do so when it determines that
the company or the matters to be voted on at the meeting are strategically
important to its clients.
Proxy Coordinator
Pioneer's Director of Investment Operations (the "Proxy Coordinator")
coordinates the voting, procedures and reporting of proxies on behalf of
Pioneer's clients. The Proxy Coordinator will deal directly with the proxy
voting service and, in the case of proxy questions referred by the proxy
voting service, will solicit voting recommendations and instructions from
the Director of Portfolio Management US or, to the extent applicable,
investment sub-advisers. The Proxy Coordinator is responsible for ensuring
that these questions and referrals are responded to in a timely fashion and
for transmitting appropriate voting instructions to the proxy voting
service. The Proxy Coordinator is responsible for verifying with the
Compliance Department whether Pioneer's voting power is subject to any
limitations or guidelines issued by the client (or in the case of an
employee benefit plan, the plan's trustee or other fiduciaries).
Referral Items
From time to time, the proxy voting service will refer proxy questions to
the Proxy Coordinator that are described by Pioneer's policy as to be voted
on a case-by-case basis, that are not covered by Pioneer's guidelines or
where Pioneer's guidelines may be unclear with respect to the matter to be
voted on. Under such certain circumstances, the Proxy Coordinator will seek
a written voting recommendation from the Director of Portfolio Management
US. Any such recommendation will include: (i) the manner in which the
proxies should be voted; (ii) the rationale underlying any such decision;
and (iii) the disclosure of any contacts or communications made between
Pioneer and any outside parties concerning the proxy proposal prior to the
time that the voting instructions are provided. In addition, the Proxy
Coordinator will ask the Compliance Department to review the question for
any actual or apparent conflicts of interest as described below under
"Conflicts of
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Interest." The Compliance Department will provide a "Conflicts of Interest
Report," applying the criteria set forth below under "Conflicts of
Interest," to the Proxy Coordinator summarizing the results of its review.
In the absence of a conflict of interest, the Proxy Coordinator will vote
in accordance with the recommendation of the Director of Portfolio
Management US.
If the matter presents a conflict of interest for Pioneer, then the Proxy
Coordinator will refer the matter to the Proxy Voting Oversight Group for a
decision. In general, when a conflict of interest is present, Pioneer will
vote according to the recommendation of the Director of Portfolio
Management US where such recommendation would go against Pioneer's interest
or where the conflict is deemed to be immaterial. Pioneer will vote
according to the recommendation of its proxy voting service when the
conflict is deemed to be material and the Pioneer's internal vote
recommendation would favor Pioneer's interest, unless a client specifically
requests Pioneer to do otherwise. When making the final determination as to
how to vote a proxy, the Proxy Voting Oversight Group will review the
report from the Director of Portfolio Management US and the Conflicts of
Interest Report issued by the Compliance Department.
Conflicts of Interest
A conflict of interest occurs when Pioneer's interests interfere, or appear
to interfere with the interests of Pioneer's clients. Occasionally, Pioneer
may have a conflict that can affect how its votes proxies. The conflict may
be actual or perceived and may exist when the matter to be voted on
concerns:
o An affiliate of Pioneer, such as another company belonging to
the UniCredito Italiano S.p.A. banking group (a "UniCredito
Affiliate");
o An issuer of a security for which Pioneer acts as a sponsor,
advisor, manager, custodian, distributor, underwriter, broker, or
other similar capacity (including those securities specifically
declared by PGAM to present a conflict of interest for Pioneer);
o An issuer of a security for which UniCredito has informed Pioneer
that a UniCredito Affiliate acts as a sponsor, advisor, manager,
custodian, distributor, underwriter, broker, or other similar
capacity; or
o A person with whom Pioneer (or any of its affiliates) has an
existing, material contract or business relationship that was not
entered into in the ordinary course of Pioneer's business.
o Pioneer will abstain from voting with respect to companies
directly or indirectly owned by UniCredito Italiano Group, unless
otherwise directed by a client. In addition, Pioneer will inform
PGAM Global Compliance and the PGAM Independent Directors before
exercising such rights.
Any associate involved in the proxy voting process with knowledge of any
apparent or actual conflict of interest must disclose such conflict to the
Proxy Coordinator and the Compliance Department. The Compliance Department
will review each item referred to Pioneer to determine whether an actual or
potential conflict of interest with Pioneer exists in connection with the
proposal(s) to be voted upon. The review will be conducted by comparing the
apparent parties affected by the proxy proposal being
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voted upon against the Compliance Department's internal list of interested
persons and, for any matches found, evaluating the anticipated magnitude
and possible probability of any conflict of interest being present. For
each referral item, the determination regarding the presence or absence of
any actual or potential conflict of interest will be documented in a
Conflicts of Interest Report to the Proxy Coordinator.
Securities Lending
In conjunction with industry standards Proxies are not available to be
voted when the shares are out on loan through either Pioneer's lending
program or a client's managed security lending program. However, Pioneer
will reserve the right to recall lent securities so that they may be voted
according to the Pioneer's instructions. If a portfolio manager would like
to vote a block of previously lent shares, the Proxy Coordinator will work
with the portfolio manager and Investment Operations to recall the
security, to the extent possible, to facilitate the vote on the entire
block of shares.
Share-Blocking
"Share-blocking" is a market practice whereby shares are sent to a
custodian (which may be different than the account custodian) for record
keeping and voting at the general meeting. The shares are unavailable for
sale or delivery until the end of the blocking period (typically the day
after general meeting date).
Pioneer will vote in those countries with "share-blocking." In the event a
manager would like to sell a security with "share-blocking", the Proxy
Coordinator will work with the Portfolio Manager and Investment Operations
Department to recall the shares (as allowable within the market time-frame
and practices) and/or communicate with executing brokerage firm. A list of
countries with "share-blocking" is available from the Investment Operations
Department upon request.
Record Keeping
The Proxy Coordinator shall ensure that Pioneer's proxy voting service:
o Retains a copy of the proxy statement received (unless the proxy
statement is available from the SEC's Electronic Data Gathering,
Analysis, and Retrieval (EDGAR) system);
o Retains a record of the vote cast;
o Prepares Form N-PX for filing on behalf of each client that is a
registered investment company; and
o Is able to promptly provide Pioneer with a copy of the voting
record upon its request.
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The Proxy Coordinator shall ensure that for those votes that may require
additional documentation (i.e. conflicts of interest, exception votes and
case-by-case votes) the following records are maintained:
o A record memorializing the basis for each referral vote cast;
o A copy of any document created by Pioneer that was material in
making the decision on how to vote the subject proxy; and
o A copy of any conflict notice, conflict consent or any other
written communication (including emails or other electronic
communications) to or from the client (or in the case of an
employee benefit plan, the plan's trustee or other fiduciaries)
regarding the subject proxy vote cast by, or the vote
recommendation of, Pioneer.
o Pioneer shall maintain the above records in the client's file for a
period not less than ten (10) years.
Disclosure
Pioneer shall take reasonable measures to inform its clients of the process
or procedures clients must follow to obtain information regarding how
Pioneer voted with respect to assets held in their accounts. In addition,
Pioneer shall describe to clients its proxy voting policies and procedures
and will furnish a copy of its proxy voting policies and procedures upon
request. This information may be provided to clients through Pioneer's Form
ADV (Part II) disclosure, by separate notice to the client, or through
Pioneer's website.
Proxy Voting Oversight Group
The members of the Proxy Voting Oversight Group are Pioneer's: Director of
Portfolio Management US, Head of Investment Operations, and Director of
Compliance. Other members of Pioneer will be invited to attend meetings and
otherwise participate as necessary. The Head of Investment Operations will
chair the Proxy Voting Oversight Group.
The Proxy Voting Oversight Group is responsible for developing, evaluating,
and changing (when necessary) Pioneer's Proxy Voting Policies and
Procedures. The group meets at least annually to evaluate and review these
policies and procedures and the services of its third-party proxy voting
service. In addition, the Proxy Voting Oversight Group will meet as
necessary to vote on referral items and address other business as
necessary.
Amendments
Pioneer may not amend its Proxy Voting Policies And Procedures without the
prior approval of the Proxy Voting Oversight Group and its corporate
parent, Pioneer Global Asset Management S.p.A
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.
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o Authorization of the transferring of reserves and allocation of
income.
o Amendments to authorized signatories.
o Approval of accounting method changes or change in fiscal year-end.
o Acceptance of labor agreements.
o Appointment of internal auditors.
Pioneer will vote on a case-by-case basis on other routine business;
however, Pioneer will oppose any routine business proposal if insufficient
information is presented in advance to allow Pioneer to judge the merit of
the proposal. Pioneer has also instructed its proxy voting service to
inform Pioneer of its analysis of any administrative items inconsistent, in
its view, with supporting the value of Pioneer portfolio holdings so that
Pioneer may consider and vote on those items on a case-by-case basis.
Auditors
We normally vote for proposals to:
o Ratify the auditors. We will consider a vote against if we are
concerned about the auditors' independence or their past work for
the company. Specifically, we will oppose the ratification of
auditors and withhold votes from audit committee members if
non-audit fees paid by the company to the auditing firm exceed the
sum of audit fees plus audit-related fees plus permissible tax
fees according to the disclosure categories proposed by the
Securities and Exchange Commission.
o Restore shareholder rights to ratify the auditors.
We will normally oppose proposals that require companies to:
o Seek bids from other auditors.
o Rotate auditing firms, except where the rotation is statutorily
required or where rotation would demonstrably strengthen financial
disclosure.
o Indemnify auditors.
o Prohibit auditors from engaging in non-audit services for the
company.
Board of Directors
On issues related to the board of directors, Pioneer normally supports
management. We will, however, consider a vote against management in
instances where corporate performance has been very poor or where the board
appears to lack independence.
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.
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Compensation
Pioneer supports compensation plans that link pay to shareholder returns
and believes that management has the best understanding of the level of
compensation needed to attract and retain qualified people. At the same
time, stock-related compensation plans have a significant economic impact
and a direct effect on the balance sheet. Therefore, while we do not want
to micromanage a company's compensation programs, we will place limits on
the potential dilution these plans may impose.
Pioneer will vote for:
o 401(k) benefit plans.
o Employee stock ownership plans (ESOPs), as long as shares
allocated to ESOPs are less than 5% of outstanding shares. Larger
blocks of stock in ESOPs can serve as a takeover defense. We will
support proposals to submit ESOPs to shareholder vote.
o Various issues related to the Omnibus Budget and Reconciliation Act
of 1993 (OBRA), including:
o Amendments to performance plans to conform with OBRA;
o Caps on annual grants or amendments of administrative features;
o Adding performance goals; and
o Cash or cash-and-stock bonus plans.
o Establish a process to link pay, including stock-option grants, to
performance, leaving specifics of implementation to the company.
o Require that option repricings be submitted to shareholders.
o Require the expensing of stock-option awards.
o Require reporting of executive retirement benefits (deferred
compensation, split-dollar life insurance, SERPs, and pension
benefits).
o Employee stock purchase plans where the purchase price is equal to
at least 85% of the market price, where the offering period is no
greater than 27 months and where potential dilution (as defined
below) is no greater than 10%.
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We will vote on a case-by-case basis on the following issues:
o Executive and director stock-related compensation plans. We will
consider the following factors when reviewing these plans:
o The program must be of a reasonable size. We will approve plans
where the combined employee and director plans together would
generate less than 15% dilution. We will reject plans with 15% or
more potential dilution.
Dilution = (A + B + C) / (A + B + C + D), where
A = Shares reserved for plan/amendment,
B = Shares available under continuing plans,
C = Shares granted but unexercised and
D = Shares outstanding.
o The plan must not:
o Explicitly permit unlimited option repricing authority or that
have repriced in the past without shareholder approval.
o Be a self-replenishing "evergreen" plan, plans that grant
discount options and tax offset payments.
o We are generally in favor of proposals that increase participation beyond
executives.
o We generally support proposals asking companies to adopt rigorous
vesting provisions for stock option plans such as those that vest
incrementally over, at least, a three- or four-year period with a pro
rata portion of the shares becoming exercisable on an annual basis
following grant date.
o We generally support proposals asking companies to disclose their
window period policies for stock transactions. Window period policies
ensure that employees do not exercise options based on insider
information contemporaneous with quarterly earnings releases and other
material corporate announcements.
o We generally support proposals asking companies to adopt stock holding
periods for their executives.
o All other employee stock purchase plans.
o All other compensation-related proposals, including deferred
compensation plans, employment agreements, loan guarantee programs
and retirement plans.
o All other proposals regarding stock compensation plans, including
extending the life of a plan, changing vesting restrictions,
repricing options, lengthening exercise periods or accelerating
distribution of awards and pyramiding and cashless exercise
programs.
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We will vote against:
o Pensions for non-employee directors. We believe these retirement
plans reduce director objectivity.
o Elimination of stock option plans.
We will vote on a case-by case basis on these issues:
o Limits on executive and director pay.
o Stock in lieu of cash compensation for directors.
Corporate Governance
Pioneer will vote for:
o Confidential Voting.
o Equal access provisions, which allow shareholders to contribute
their opinion to proxy materials.
o Proposals requiring directors to disclose their ownership of shares
in the company.
We will vote on a case-by-case basis on the following issues:
o Change in the state of incorporation. We will support
reincorporations supported by valid business reasons. We will
oppose those that appear to be solely for the purpose of
strengthening takeover defenses.
o Bundled proposals. We will evaluate the overall impact of the
proposal.
o Adopting or amending the charter, bylaws or articles of association.
o Shareholder appraisal rights, which allow shareholders to demand
judicial review of an acquisition price.
We will vote against:
o Shareholder advisory committees. While management should solicit
shareholder input, we prefer to leave the method of doing so to
management's discretion.
o Limitations on stock ownership or voting rights.
o Reduction in share ownership disclosure guidelines.
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Mergers and Restructurings
Pioneer will vote on the following and similar issues on a case-by-case
basis:
o Mergers and acquisitions.
o Corporate restructurings, including spin-offs, liquidations, asset
sales, joint ventures, conversions to holding company and
conversions to self-managed REIT structure.
o Debt restructurings.
o Conversion of securities.
o Issuance of shares to facilitate a merger.
o Private placements, warrants, convertible debentures.
o Proposals requiring management to inform shareholders of merger
opportunities.
We will normally vote against shareholder proposals requiring that the
company be put up for sale.
Mutual Funds
Many of our portfolios may invest in shares of closed-end mutual funds or
exchange-traded funds. The non-corporate structure of these investments
raises several unique proxy voting issues.
Pioneer will vote for:
o Establishment of new classes or series of shares.
o Establishment of a master-feeder structure.
Pioneer will vote on a case-by-case on:
o Changes in investment policy. We will normally support changes
that do not affect the investment objective or overall risk level
of the fund. We will examine more fundamental changes on a
case-by-case basis.
o Approval of new or amended advisory contracts.
o Changes from closed-end to open-end format.
o Authorization for, or increase in, preferred shares.
o Disposition of assets, termination, liquidation, or mergers.
o Classified boards of closed-end mutual funds, but will typically
support such proposals.
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.
ADDITIONAL INFORMATION ABOUT THE PORTFOLIO MANAGER
OTHER ACCOUNTS MANAGED BY THE PORTFOLIO MANAGER
The table below indicates, for the portfolio manager of the fund, information
about the accounts other than the fund over which the portfolio manager has
day-to-day investment responsibility. All information on the number of accounts
and total assets in the table is as of March 31, 2015. 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 $1,994,604 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 $1,994,604 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, 2015 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
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
During the period covered by this report, there were no purchases
made by or on behalf of the registrant or any affiliated purchaser
as defined in Rule 10b-18(a)(3) under the Securities Exchange Act
of 1934 (the Exchange Act), of shares of the registrants equity
securities that are registered by the registrant pursuant to
Section 12 of the Exchange Act.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant)Pioneer Municipal High Income Advantage Trust
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date May 29, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date May 29, 2015
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date May 29, 2015
* Print the name and title of each signing officer under his or her signature.