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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21409
Pioneer Municipal High Income Advantage Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: March 31
Date of reporting period: April 1, 2013 through September 30, 2013
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
--------------------------------------------------------------------------------
Semiannual Report | September 30, 2013
--------------------------------------------------------------------------------
Ticker Symbol: MAV
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Schedule of Investments 11
Financial Statements 23
Notes to Financial Statements 28
Trustees, Officers and Service Providers 37
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 1
President's Letter
Dear Shareowner,
When we look at the U.S. economy heading into the final quarter of 2013, we
continue to see slow, but steady, growth. Employment has also been rising
steadily, but only modestly. Consumer incomes, savings, wealth, and
debt-servicing capacity have been solid buttresses for the recovering housing
and auto industries. Industrial activity is growing only modestly, but current
corporate profits are generally solid and balance sheets appear able to support
needed capital spending and dividend* payouts. The scaled-back "fiscal cliff"
tax increases and spending cuts have meaningfully cut the budget deficit without
driving the economy into recession. In addition, we feel that continuing slack
in labor markets and capacity utilization offers the potential for continuing
growth without bottlenecks and rising inflation.
After observing the strengthening economic trends, the Federal Reserve (the Fed)
hinted that it might begin scaling back its "QE" quantitative easing program
later in 2013 and could terminate its bond purchases altogether sometime in
2014. In September, however, the Fed surprised many market participants by
deciding not to start scaling back QE yet. The Fed has also said that short-term
interest rates are likely to remain near zero for some time to come, given that
inflation remains subdued and unemployment remains too high.
As September ended, Congress had not yet passed a continuing resolution to
prevent a government shutdown, nor had it raised the debt ceiling, and a quick
resolution to the impasse appeared unlikely. The U.S. government's partial
shutdown in October rattled the markets to a degree, but did not immediately
have a significant negative impact on the economy or capital markets.
There are certainly risks and uncertainties that continue to plague the global
economy as we head into the final months of the year. The European economy
remains weak, though it is beginning to show signs of stabilization, and a
number of countries in the emerging markets have experienced difficulties.
Still, a potential ending of the European recession, continuing economic
improvement in Japan in response to the new government's easing policies, and a
"soft landing" of 7% growth in China could very well result in an improving
global outlook over the remainder of 2013 and in 2014.
There are also geopolitical worries abroad and the aforementioned political
fights at home, and while most of the widely recognized risks we've outlined may
already be "priced into" the market, we believe investors should continue to
expect market volatility.
* Dividends are not guaranteed.
2 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
The Fed's aggressive monetary policies and fears about economic growth had
helped drive long-term Treasury yields to unsustainably low levels; the return
to more normal levels has resulted in disappointing returns for bond investors
during the first nine months of 2013, but the stock market has delivered
double-digit returns to equity investors who were willing to brave the "wall of
worry".
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification alone does not assure a
profit or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. Our advice, as
always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs, keeping in mind that there is no single best strategy that
works for every investor.
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in global equity and bond markets, using in-depth research to identify
undervalued individual securities, and using thoughtful risk management to
construct portfolios which balance potential risks and reward in an
ever-changing world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund'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 | Semiannual Report | 9/30/13 3
Portfolio Management Discussion | 9/30/13
Market sentiment toward municipal bonds - especially higher-yielding municipals
- abruptly turned negative in the spring of 2013, undermining the performance of
the asset class during the six-month period ended September 30, 2013. 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 six-month period. Mr. Eurkus, a senior vice president and a portfolio
manager at Pioneer, and Mr. Chirunga, a vice president and a portfolio manager
at Pioneer, are responsible for the day-to-day management of the Trust.
Q How did the Pioneer Municipal High Income Advantage Trust perform during the
six-month period ended September 30, 2013?
A Pioneer Municipal High Income Advantage Trust returned -7.87% at net asset
value and -9.67% at market price during the six-month period ended September
30, 2013. During the same six-month period, the Trust's benchmarks, the
Barclays Municipal Bond Index and the Barclays High Yield Municipal Bond
Index, returned -3.15% and -6.92%, respectively. The Barclays Municipal Bond
Index is an unmanaged measure of the performance of investment-grade
municipal bonds, while the Barclays High Yield Municipal Bond Index is an
unmanaged measure of the performance of lower-rated municipal bonds. Unlike
the Trust, the two Barclays Indices do not use leverage. While use of
leverage increases investment opportunity, it also increases investment
risk. During the same six-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 -6.71%.
The shares of the Trust were selling at a 12.40% premium to net asset value
at the end of the period, on September 30, 2013.
On September 30, 2013, the Trust's standard 30-day SEC yield was 8.76*.
Q How would you describe the investment environment in the municipal bond
market during the six-month period ended September 30, 2013?
A Municipal bonds - and especially high-yielding municipals - had been
enjoying a favorable investment backdrop until a series of events began to
undermine investors' confidence.
One major development was the well-publicized bankruptcy filing by the City
of Detroit, which raised worries about the financial stability and credit
quality of other communities. Those worries only increased after another
* 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 | Semiannual Report | 9/30/13
significant piece of news hit the market--high-profile media warnings about
the financial problems afflicting the Commonwealth of Puerto Rico, which
might have trouble meeting its obligations without additional borrowing.
In the ensuing weeks, the market for municipal bonds became increasingly
volatile, as liquidity dried up when institutional investors moved to sell
their holdings, and buyers, at the same time, held back. Municipal bonds
declined sharply in price, significantly underperforming U.S. Treasuries and
many other segments of the fixed-income market. Because of their greater
sensitivity to credit risk, lower-rated municipal bonds with higher yields
performed much worse than investment-grade municipals during the period.
Q How did the market environment and your investment strategies affect the
Trust's performance during the six-month period ended September 30, 2013?
A The changing market environment hindered the Trust's performance during the
six-month period, despite the facts that the Fed eventually decided not to
taper QE, and that the Trust's portfolio held no bonds issued by the City of
Detroit. The Trust's portfolio also had only minimal exposure to the
Commonwealth of Puerto Rico, holding one small position in AA-rated senior
debt backed by sales tax revenues. In a declining market, the Trust's use of
leverage also hurt performance relative to the two Barclays benchmarks, as
portfolio bond holdings purchased with leverage also declined in price
during the six-month period. At the same time, the Trust experienced
disappointing results from specific portfolio holdings in the
underperforming tobacco bond group (which are backed by revenues from
tobacco liability cases), and in the hospital/health care industry. The
disappointing results came despite our investment discipline, which
emphasizes purchasing only those investments that are backed by
project-specific revenue sources, which are less vulnerable to factors such
as the financial health of issuing agencies or municipalities. Several
portfolio positions in longer-maturity, investment-grade municipal bonds
also declined in price during the period due to the general rise in market
interest rates.
During the six-month period, the Trust's portfolio experienced no defaults,
and shares of the Trust continued to sell at a premium price to net asset
value.
Q How did the level of leverage employed by the Trust change during the
six-month period ended September 30, 2013?
A At the end of the six-month period on September 30, 2013, 34.8% of the
Trust's total managed assets were financed by leverage, compared with 32.1%
of the Trust's total managed assets financed by leverage at the start of the
period on April 1, 2013. The increase was due to a decrease in the value of
securities in which the Trust had invested.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 5
Q What is your investment outlook?
A After one of the more severe corrections in the municipal market in recent
history, we believe the resulting lower prices of municipal bonds represent
a significant opportunity for investors. The investment fundamentals of
municipal debt securities remain strong, and prices are at extremely
attractive levels, especially when compared with the taxable bond market.
We believe the low prices to which municipal bonds have fallen are
inconsistent with the underlying fundamentals of the asset class. The market
continues to have very low default rates, and state revenues generally are
improving. Further, municipal bonds currently are paying high tax-
equivalent yields that should make them more attractive than other segments
of the fixed-income market. We believe that the entire municipal market
($3.7 trillion in debt outstanding) is large enough to absorb problems
experienced by any individual community or agency. In fact, the financial
problems of the City of Detroit and the Commonwealth of Puerto Rico were
well known before the six-month period began, and should have come as no
surprise to informed investors. We believe the credit quality of the sector
is further enhanced because two-thirds of the market consists of revenue
bonds, which are secured by income-producing facilities of the borrower and
are not dependent upon tax revenue generated by municipalities.
Going forward, we intend to keep the Trust's portfolio concentrated almost
exclusively in revenue bonds, and to maintain our focus on intensive,
independent research into the credit-worthiness of individual securities as
well as the issuing agencies or municipalities behind them.
We believe the Trust is very well positioned for solid performance as market
sentiment changes and investors again begin to focus on the underlying
fundamentals and competitive prices of municipal bonds.
Please refer to the Schedule of Investments on pages 11-22 for a full listing of
Trust securities.
6 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
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 income
or capital appreciation will not be sufficient to cover the cost of leverage,
which may adversely affect the return for the holders of common shares. Since
February of 2008, regularly scheduled auctions for the Trust's preferred
shares have failed and preferred shareowners have not been able to sell their
shares at auction. The Board of Trustees of the Trust has considered, and
continues to consider, this issue.
The Trust is required to maintain certain regulatory and rating agency asset
coverage requirements in connection with its outstanding preferred shares. In
order to maintain required asset coverage levels, the Trust may be required to
alter the composition of its investment portfolio or take other actions, such as
redeeming preferred shares with the proceeds from portfolio transactions, at
what might be inopportune times in the market. Such actions could reduce the net
earnings or returns to holders of the Trust's common shares over time.
Risks of investing in the Trust are discussed in greater detail in the Trust's
original offering documents relating to its common shares and shareowner reports
issued from time to time.
These risks may increase share price volatility.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 7
Portfolio Summary | 9/30/13
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Revenue Bonds:
Health Revenue 19.8%
Development Revenue 14.8%
Facilities Revenue 13.1%
Insured 12.1%
Tobacco Revenue 9.3%
Other Revenue 7.2%
Education Revenue 7.0%
Transportation Revenue 6.9%
Airport Revenue 5.7%
Pollution Control Revenue 2.2%
Water Revenue 1.9%
Utilities Revenue 0.0%
Portfolio Maturity
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
20+ years 57.8%
10-20 years 39.5%
7-10 years 1.3%
5-7 years 0.9%
0-2 year 0.4%
2-5 years 0.1%
Quality Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on Standard & Poor's
ratings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Not Rated 37.9%
AA 15.9%
BBB 14.5%
A 10.8%
B 9.2%
BB 8.2%
AAA 2.4%
CCC 1.1%
Bond ratings are ordered highest to lowest in portfolio. Based on Standard &
Poors's measures, AAA (highest possible rating) through BBB are considered
investment grade; BB or lower ratings are considered non-investment grade. Cash
equivalents and some bonds may not be rated.
The portfolio is actively managed and current holdings may be different.
8 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
Prices and Distributions | 9/30/13
Share Prices and Distributions
--------------------------------------------------------------------------------
Market Value per Common Share
--------------------------------------------------------------------------------
9/30/13 3/31/13
--------------------------------------------------------------------------------
$13.43 $15.51
--------------------------------------------------------------------------------
Premium 12.4% 14.6%
--------------------------------------------------------------------------------
Net Asset Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9/30/13 3/31/13
--------------------------------------------------------------------------------
$11.95 $13.54
--------------------------------------------------------------------------------
Distributions per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
4/1/13 - 9/30/13 $0.5700 $-- $--
--------------------------------------------------------------------------------
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Massachusetts Housing Finance Agency Revenue, 5.35%, 12/1/45 2.55%
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2. North Texas Tollway Authority Transportation Revenue, 5.75%, 1/1/33 2.47
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3. Houston Texas Airport System Special Facilities Revenue, 6.75%, 7/1/29 2.39
-------------------------------------------------------------------------------------
4. Lehman Municipal Trust Receipts, General Obligation, 13.031%, 7/28/31 2.17
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5. Massachusetts Development Finance Agency Revenue, 5.75%, 1/1/42 2.09
-------------------------------------------------------------------------------------
6. Regional Transportation District, 5.00%, 11/1/31 1.95
-------------------------------------------------------------------------------------
7. Tobacco Settlement Financing Corp., Revenue, 6.25%, 6/1/42 1.92
-------------------------------------------------------------------------------------
8. New Jersey Transportation Trust Fund Authority Revenue, 0.00%, 12/15/27 1.89
-------------------------------------------------------------------------------------
9. Jefferson Parish Hospital Service District No. 2, 6.375%, 7/1/41 1.76
-------------------------------------------------------------------------------------
10. New Jersey Economic Development Authority Revenue, 5.75%, 9/15/27 1.73
-------------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 9
Performance Update | 9/30/13
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 September 30, 2013)
--------------------------------------------------------------------------------
Net Asset Market
Period Value (NAV) Price
--------------------------------------------------------------------------------
Life-of-Class
(10/17/2003) 6.05% 6.81%
5 Years 9.95 14.96
1 Year -4.73 -9.00
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Market Value of $10,000 Investment
Pioneer Municipal
High Income Barclays Municipal Barclays High Yield
Advantage Trust Bond Index Municipal Bond Index
10/31/2003 $ 10,000 $ 10,000 $ 10,000
9/30/2004 $ 9,965 $ 10,513 $ 10,863
9/30/2005 $ 11,335 $ 10,939 $ 12,031
9/30/2006 $ 12,310 $ 11,425 $ 13,322
9/30/2007 $ 13,392 $ 11,779 $ 13,705
9/30/2008 $ 9,595 $ 11,559 $ 12,329
9/30/2009 $ 12,443 $ 13,275 $ 12,890
9/30/2010 $ 15,558 $ 14,046 $ 14,454
9/30/2011 $ 16,720 $ 14,592 $ 15,058
9/30/2012 $ 21,180 $ 15,805 $ 17,258
9/30/2013 $ 19,274 $ 15,455 $ 17,018
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV due to such factors as interest rate changes
and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Closed-end funds, unlike open-end funds, are not continuously offered. There is
a one-time public offering and, once issued, shares of closed-end funds are sold
in the open market through a stock exchange, and frequently trade at prices
lower than their NAV. NAV per common share is total assets less total
liabilities, which includes preferred shares, divided by the number of common
shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends are
assumed to be reinvested at prices obtained under the Trust's dividend
reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the sale of Trust shares.
Index comparison begins October 31, 2003. 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 $3 million. Index returns
are calculated monthly, assume reinvestment of dividends and, unlike Trust
returns, do not reflect any fees, expenses or sales charges. The indices do not
employ leverage. You cannot invest directly in the indices.
10 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
Schedule of Investments | 9/30/13 (unaudited)
-----------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
-----------------------------------------------------------------------------------------------
TAX EXEMPT OBLIGATIONS -- 146.9%
of Net Assets
Alabama -- 1.6%
2,500,000 NR/B2 Alabama Industrial Development Authority
Solid Waste Disposal Revenue, 6.45%, 12/1/23 $ 2,502,400
2,500,000 NR/NR Huntsville-Redstone Village Special Care
Facilities Financing Authority Nursing Home
Revenue, 5.5%, 1/1/43 2,025,075
--------------
$ 4,527,475
-----------------------------------------------------------------------------------------------
Arizona -- 3.0%
5,000,000 NR/NR Casa Grande Industrial Development Authority
Hospital Revenue, 7.625%, 12/1/29 $ 4,975,500
2,640,000 NR/NR Pima County Industrial Development Authority,
7.0%, 1/1/38 2,576,508
32,000 NR/Baa3 Pima County Industrial Development Authority
Education Revenue, 6.75%, 7/1/31 31,428
1,000,000 NR/NR San Luis Facility Development Corp.,
7.25%, 5/1/27 803,590
--------------
$ 8,387,026
-----------------------------------------------------------------------------------------------
California -- 15.5%
6,990,000 CCC/NR California County Tobacco Securitization
Agency Revenue, 5.25%, 6/1/46 $ 4,505,894
1,550,000 NR/NR California Enterprise Development Authority
Recovery Zone Facility Revenue, 8.5%, 4/1/31 1,675,953
5,000,000 NR/Baa3 California Pollution Control Financing Authority,
5.0%, 7/1/37 4,620,450
3,000,000 BB+/NR California School Finance Authority, 7.375%,
10/1/43 3,023,970
2,425,000 A/A1 California State General Obligation Various
Purpose, 5.75%, 4/1/31 2,693,399
1,875,000 NR/NR California Statewide Communities Development
Authority, 5.875%, 11/1/43 1,624,069
757,342(a) NR/NR California Statewide Communities Development
Authority Environmental Facilities Revenue,
9.0%, 12/1/38 6,573
4,000,000 B+/NR California Statewide Communities Development
Authority Revenue Higher Education Revenue,
7.25%, 10/1/38 (144A) 3,889,560
20,000,000(b) NR/NR Inland Empire Tobacco Securitization Authority,
0.0%, 6/1/36 3,184,400
3,140,000 AA-/WR Lehman Municipal Trust Receipts Revenue,
RIB, 13.124%, 9/20/28 (144A) 3,333,204
8,575,000(c) AA-/NR Lehman Municipal Trust Receipts, General
Obligation, 13.031%, 7/28/31 9,082,040
1,500,000 A-/NR Madera Irrigation Financing Authority Water
Revenue, 6.25%, 1/1/31 1,623,720
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 11
Schedule of Investments | 9/30/13 (unaudited) (continued)
-----------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
-----------------------------------------------------------------------------------------------
California -- (continued)
1,500,000 A-/NR Madera Irrigation Financing Authority Water
Revenue, 6.5%, 1/1/40 $ 1,631,985
2,500,000 A-/A2 San Jose California Airport Revenue, RIB,
5.0%, 3/1/37 2,501,450
--------------
$ 43,396,667
-----------------------------------------------------------------------------------------------
Colorado -- 3.3%
1,000,000 NR/NR Kremmling Memorial Hospital District
Certificate of Participation, 7.125%, 12/1/45 $ 1,021,940
7,500,000 AA+/Aa2 Regional Transportation District, 5.0%, 11/1/31 8,167,800
--------------
$ 9,189,740
-----------------------------------------------------------------------------------------------
Connecticut -- 0.4%
1,000,000 NR/NR Hamden Connecticut Facility Revenue,
7.75%, 1/1/43 $ 1,017,590
-----------------------------------------------------------------------------------------------
District of Columbia -- 3.5%
2,700,000 BBB/Baa1 District of Columbia Tobacco Settlement
Financing Corp., 6.5%, 5/15/33 $ 2,814,453
6,825,000 BBB/Baa1 District of Columbia Tobacco Settlement
Financing Corp., 6.75%, 5/15/40 6,893,114
--------------
$ 9,707,567
-----------------------------------------------------------------------------------------------
Florida -- 4.2%
1,500,000 NR/NR Alachua County Health Facilities Authority
Revenue, 8.125%, 11/15/41 $ 1,634,040
1,500,000 NR/NR Alachua County Health Facilities Authority
Revenue, 8.125%, 11/15/46 1,628,940
500,000 NR/B1 Capital Trust Agency Revenue Bonds,
7.75%, 1/1/41 529,695
2,000,000 NR/NR Florida Development Finance Corp., Educational
Facilities Revenue, 7.625%, 6/15/41 2,021,080
1,000,000(d) NR/WR Hillsborough County Industrial Development
Authority Revenue, 8.0%, 8/15/32 1,356,050
2,200,000 BB/NR Lee County Industrial Development Authority,
5.375%, 6/15/37 2,029,654
2,500,000 A/A2 Miami-Dade County Florida Aviation Revenue,
5.5%, 10/1/41 2,604,875
--------------
$ 11,804,334
-----------------------------------------------------------------------------------------------
Georgia -- 6.5%
5,210,000 AA-/WR Atlanta Georgia Water and Wastewater
Revenue, RIB, 12.752%, 11/1/43 (144A) $ 5,243,552
5,000,000 B/NR Clayton County Development Authority
Revenue, 9.0%, 6/1/35 5,351,600
900,000 NR/NR DeKalb County Georgia Hospital Authority
Revenue, 6.0%, 9/1/30 928,692
The accompanying notes are an integral part of these financial statements.
12 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
-----------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
-----------------------------------------------------------------------------------------------
Georgia -- (continued)
750,000 NR/NR DeKalb County Georgia Hospital Authority
Revenue, 6.125%, 9/1/40 $ 755,198
2,000,000 NR/NR Fulton County Residential Care Facilities for
the Elderly Authority, 5.125%, 7/1/42 1,608,360
3,360,000 NR/NR Fulton County Residential Care Facilities for
the Elderly Authority, 7.0%, 7/1/29 2,724,456
1,650,000 NR/NR Savannah Georgia Economic Development
Authority Revenue, 7.4%, 1/1/34 1,659,537
--------------
$ 18,271,395
-----------------------------------------------------------------------------------------------
Guam -- 1.9%
1,000,000 B/NR Guam Government of Department Education
Certificates of Participation, 6.625%, 12/1/30 $ 1,028,990
4,400,000(d) AA+/B2 Northern Mariana Islands, 6.75%, 10/1/33 4,400,748
--------------
$ 5,429,738
-----------------------------------------------------------------------------------------------
Idaho -- 1.2%
2,000,000 A-/Baa1 Power County Industrial Development Corp.,
Revenue, 6.45%, 8/1/32 $ 2,001,480
1,500,000 A-/Baa1 Power County Pollution Control Revenue,
5.625%, 10/1/14 1,500,075
--------------
$ 3,501,555
-----------------------------------------------------------------------------------------------
Illinois -- 7.0%
1,000,000 NR/Baa1 City of Country Club Hills, General Obligation,
5.0%, 12/1/31 $ 1,001,910
365,400(b) NR/NR Illinois Finance Authority Revenue,
0.0%, 11/15/52 37,792
417,400(c) NR/NR Illinois Finance Authority Revenue,
4.0%, 11/15/52 212,874
1,450,000 A+/A1 Illinois Finance Authority Revenue,
5.5%, 4/1/39 1,487,308
1,605,000 AA-/A3 Illinois Finance Authority Revenue,
6.0%, 8/15/25 1,650,502
280,000 BBB+/NR Illinois Finance Authority Revenue,
6.0%, 8/15/38 297,615
2,000,000 AA+/Aa2 Illinois Finance Authority Revenue,
6.0%, 8/15/39 2,237,320
2,500,000 NR/NR Illinois Finance Authority Revenue,
6.125%, 11/15/25 2,468,275
45,000 NR/NR Illinois Finance Authority Revenue,
7.0%, 11/15/17 43,476
165,000 NR/NR Illinois Finance Authority Revenue,
7.0%, 11/15/27 148,759
6,000,000 NR/NR Illinois Finance Authority Revenue,
8.25%, 5/15/45 5,844,840
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 13
Schedule of Investments | 9/30/13 (unaudited) (continued)
-----------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
-----------------------------------------------------------------------------------------------
Illinois -- (continued)
2,500,000 NR/NR Illinois Finance Authority Revenue,
8.25%, 2/15/46 $ 2,507,550
2,135,000 NR/NR Southwestern Illinois Development Authority
Revenue, 5.625%, 11/1/26 1,673,648
--------------
$ 19,611,869
-----------------------------------------------------------------------------------------------
Indiana -- 1.0%
250,000 NR/NR City of Carmel Indiana Nursing Home
Revenue, 7.0%, 11/15/32 $ 249,190
750,000 NR/NR City of Carmel Indiana Nursing Home
Revenue, 7.125%, 11/15/42 741,292
500,000 NR/NR City of Carmel Indiana Nursing Home
Revenue, 7.125%, 11/15/47 490,220
250,000 NR/Baa3 East Chicago Indiana Exempt Facilities
Revenue, 7.0%, 1/1/14 249,613
1,700,000 NR/NR Vincennes Industrial Economic Development
Revenue, 6.25%, 1/1/24 995,639
--------------
$ 2,725,954
-----------------------------------------------------------------------------------------------
Kansas -- 0.4%
1,000,000 NR/A2 Kansas Development Finance Authority
Revenue, 5.0%, 5/15/35 $ 1,008,720
-----------------------------------------------------------------------------------------------
Louisiana -- 6.0%
7,000,000 BBB-/Baa3 Jefferson Parish Hospital Service District
No. 2, 6.375%, 7/1/41 $ 7,386,190
2,500,000 BBB/Baa3 Louisiana Local Government Environmental
Facilities & Community Development Authority
Revenue, 6.75%, 11/1/32 2,618,400
6,000,000 NR/Baa1 Louisiana Public Facilities Authority Revenue,
5.5%, 5/15/47 6,048,540
750,000 BBB-/NR Opelousas Louisiana General Hospital
Authority Revenue, 5.75%, 10/1/23 758,138
--------------
$ 16,811,268
-----------------------------------------------------------------------------------------------
Maine -- 0.6%
1,500,000 NR/Ba1 Maine Health & Higher Educational Facilities
Authority Revenue, 7.5%, 7/1/32 $ 1,682,085
-----------------------------------------------------------------------------------------------
Maryland -- 2.8%
4,500,000 A-/A2 Maryland Health & Higher Educational
Facilities Authority Revenue, 5.0%, 7/1/43 $ 4,431,150
1,250,000 NR/Baa3 Maryland Health & Higher Educational
Facilities Authority Revenue, 5.75%, 7/1/38 1,211,400
2,000,000 NR/NR Maryland Health & Higher Educational
Facilities Authority Revenue, 6.25%, 1/1/45 2,104,380
--------------
$ 7,746,930
-----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
-----------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
-----------------------------------------------------------------------------------------------
Massachusetts -- 9.2%
8,000,000 A/WR Massachusetts Development Finance Agency
Revenue, 5.75%, 1/1/42 $ 8,742,160
1,800,000 NR/NR Massachusetts Development Finance Agency
Revenue, 7.1%, 7/1/32 1,769,562
2,195,000 BBB-/Baa3 Massachusetts Health & Educational Facilities
Authority Revenue, 5.375%, 7/15/28 2,195,176
2,000,000 AAA/Aaa Massachusetts Health & Educational Facilities
Authority Revenue, 5.5%, 7/1/32 2,449,880
3,420,000(a) NR/NR Massachusetts Health & Educational Facilities
Authority Revenue, 6.5%, 1/15/38 12,688
10,760,000 AA-/Aa3 Massachusetts Housing Finance Agency
Revenue, 5.35%, 12/1/45 10,689,737
--------------
$ 25,859,203
-----------------------------------------------------------------------------------------------
Michigan -- 3.6%
2,000,000 NR/Ba1 Flint Michigan Hospital Building Authority
Revenue, 7.375%, 7/1/35 $ 2,163,260
2,235,000 BB+/NR Kent Hospital Finance Authority Revenue,
6.25%, 7/1/40 2,282,628
675,000 NR/NR Michigan Public Educational Facilities Authority
Revenue, 7.0%, 10/1/36 645,367
5,000,000 AA/Aa1 Michigan State University, 5.0%, 8/15/41 5,169,100
--------------
$ 10,260,355
-----------------------------------------------------------------------------------------------
Minnesota -- 0.4%
1,000,000 NR/NR Port Authority of the City of Bloomington,
Minnesota Recovery Zone Facility Revenue,
9.0%, 12/1/35 $ 1,093,770
-----------------------------------------------------------------------------------------------
Missouri -- 1.2%
1,000,000 NR/NR Kansas City Tax Increment Financing Commission
Tax Increment Revenue, 6.5%, 6/1/25 $ 1,004,490
1,500,000(a) NR/Ca St. Louis Industrial Development Authority
Revenue, 7.2%, 12/15/28 463,095
6,640,000(a) NR/Ca St. Louis Industrial Development Authority
Revenue, 7.25%, 12/15/35 2,049,967
--------------
$ 3,517,552
-----------------------------------------------------------------------------------------------
Montana -- 0.7%
2,445,000(b) NR/NR Hardin Increment Industrial Infrastructure
Development Revenue, 0.0%, 9/1/31 $ 1,934,875
1,000,000(a) NR/NR Two Rivers Authority Inc., Project Revenue,
7.375%, 11/1/27 99,970
--------------
$ 2,034,845
-----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 15
Schedule of Investments | 9/30/13 (unaudited) (continued)
-----------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
-----------------------------------------------------------------------------------------------
Nevada -- 2.3%
2,000,000 A+/A1 Nevada Highway Revenue, 5.0%, 2/1/43 $ 2,008,220
4,500,000 A-/A3 Reno Nevada Hospital Revenue, 5.25%, 6/1/41 4,334,490
--------------
$ 6,342,710
-----------------------------------------------------------------------------------------------
New Hampshire -- 0.4%
1,125,000(d) NR/NR New Hampshire Health & Education Facilities
Authority Revenue, 5.875%, 7/1/34 $ 1,222,301
-----------------------------------------------------------------------------------------------
New Jersey -- 11.0%
1,500,000 NR/NR Burlington County New Jersey Bridge
Commission Revenue, 5.625%, 1/1/38 $ 1,299,795
6,500,000 NR/NR New Jersey Economic Development Authority
Revenue, 10.5%, 6/1/32 (144A) 6,369,285
7,500,000 B/B2 New Jersey Economic Development Authority
Revenue, 5.75%, 9/15/27 7,265,400
3,500,000 NR/NR New Jersey Health Care Facilities Financing
Authority, 7.25%, 7/1/27 3,403,260
3,500,000 AA-/WR New Jersey State Turnpike Authority
Transportation Revenue, RIB, 13.755%,
7/1/23 (144A) 4,728,220
15,375,000(b) AA+/Aa1 New Jersey Transportation Trust Fund
Authority Revenue, 0.0%, 12/15/27 7,925,505
--------------
$ 30,991,465
-----------------------------------------------------------------------------------------------
New York -- 6.8%
1,630,000 NR/NR Dutchess County Industrial Development
Agency, 7.5%, 3/1/29 $ 1,650,131
7,000,000 BB/B2 New York City Industrial Development Agency
Revenue, 5.25%, 12/1/32 6,089,650
3,950,000 BB/B2 New York City Industrial Development Agency
Revenue, 7.625%, 12/1/32 3,980,810
5,000,000 AAA/Aaa New York State Dormitory Authority Revenue,
5.0%, 10/1/41 5,301,350
2,000,000 NR/Ba1 New York State Dormitory Authority Revenue,
6.125%, 12/1/29 2,010,760
--------------
$ 19,032,701
-----------------------------------------------------------------------------------------------
North Carolina -- 2.7%
5,010,000 NR/NR Charlotte North Carolina Special Facilities
Revenue, 7.75%, 2/1/28 $ 5,013,908
2,575,000 NR/NR Charlotte Special Facilities Revenue,
5.6%, 7/1/27 2,460,644
--------------
$ 7,474,552
-----------------------------------------------------------------------------------------------
Ohio -- 1.9%
1,500,000 NR/NR Adams County Hospital Facilities Revenue,
6.5%, 9/1/36 $ 1,186,755
The accompanying notes are an integral part of these financial statements.
16 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
-----------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
-----------------------------------------------------------------------------------------------
Ohio -- (continued)
5,000,000 B-/B3 Buckeye Tobacco Settlement Financing
Authority Revenue, 6.5%, 6/1/47 $ 4,079,800
--------------
$ 5,266,555
-----------------------------------------------------------------------------------------------
Oklahoma -- 1.9%
3,000,000(c) NR/WR Tulsa Airports Improvement Trust,
7.75%, 6/1/35 $ 3,145,590
2,220,000 NR/WR Tulsa Airports Improvement Trust Revenue,
6.25%, 6/1/20 2,172,536
--------------
$ 5,318,126
-----------------------------------------------------------------------------------------------
Oregon -- 0.7%
2,000,000 A-/NR Oregon State Facilities Authority Revenue,
5.25%, 10/1/40 $ 2,019,820
-----------------------------------------------------------------------------------------------
Pennsylvania -- 6.5%
1,965,000 B-/NR Pennsylvania Economic Development
Financing Authority, 8.0%, 5/1/29 $ 2,185,100
5,000,000 B-/Caa2 Pennsylvania Economic Development
Financing Authority Solid Waste Disposal
Revenue, 6.0%, 6/1/31 4,903,550
5,000,000 A-/A3 Pennsylvania Turnpike Commission,
5.3%, 12/1/41 5,069,400
1,000,000 BB-/NR Philadelphia Authority for Industrial
Development, 6.5%, 6/15/33 (144A) 991,110
1,000,000 BB-/NR Philadelphia Authority for Industrial
Development, 6.75%, 6/15/43 (144A) 986,610
5,000,000 BB+/Ba2 Philadelphia Hospitals & Higher Education
Facilities Authority Revenue, 5.0%, 7/1/34 4,099,950
--------------
$ 18,235,720
-----------------------------------------------------------------------------------------------
Puerto Rico -- 1.5%
5,000,000 AA-/Aa3 Puerto Rico Sales Tax Financing Corp.,
5.25%, 8/1/57 $ 4,114,550
-----------------------------------------------------------------------------------------------
Rhode Island -- 3.8%
1,370,000(e) NR/NR Central Falls Rhode Island Detention Facility
Corp., Revenue, 7.25%, 7/15/35 $ 1,031,432
1,500,000 NR/NR Rhode Island Health & Educational Building
Corp., Revenue, 8.375%, 1/1/46 1,649,445
8,285,000 BB/Ba1 Tobacco Settlement Financing Corp., Revenue,
6.25%, 6/1/42 8,058,239
--------------
$ 10,739,116
-----------------------------------------------------------------------------------------------
South Carolina -- 1.9%
4,400,000(f) BBB/WR Tobacco Settlement Revenue Management
Authority, 6.375%, 5/15/30 $ 5,431,184
-----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 17
Schedule of Investments | 9/30/13 (unaudited) (continued)
-----------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
-----------------------------------------------------------------------------------------------
Tennessee -- 3.0%
5,000,000 BBB+/Baa1 Johnson City Health & Educational Facilities
Board Hospital Revenue, 6.5%, 7/1/38 $ 5,478,800
3,000,000 BBB+/NR Sullivan County Health, Educational &
Housing Facilities Board Revenue,
5.25%, 9/1/36 3,003,060
--------------
$ 8,481,860
-----------------------------------------------------------------------------------------------
Texas -- 17.9%
2,500,000 BB+/Baa3 Central Texas Regional Mobility Authority
Revenue, 6.75%, 1/1/41 $ 2,584,925
2,663,453(a) NR/NR Gulf Coast Industrial Development Authority
Revenue, 7.0%, 12/1/36 23,945
10,000,000 B/B2 Houston Texas Airport System Special
Facilities Revenue, 6.75%, 7/1/29 10,025,100
460,000 NR/NR IAH Public Facility Corp., Facilities Revenue,
Series 2006, 6.0%, 5/1/16 346,679
1,000,000 NR/NR IAH Public Facility Corp., Facilities Revenue,
Series 2006, 6.0%, 5/1/21 710,960
1,350,000 NR/NR IAH Public Facility Corp., Facilities Revenue,
Series 2006, 6.125%, 5/1/26 933,444
3,000,000 NR/NR Jefferson County Industrial Development Corp.,
Revenue, 8.25%, 7/1/32 3,081,990
845,000 NR/NR Lubbock Health Facilities Development Corp.,
Nursing Home Revenue, 6.5%, 7/1/26 864,308
2,000,000 NR/NR Lubbock Health Facilities Development Corp.,
Nursing Home Revenue, 6.625%, 7/1/36 2,020,500
9,750,000 BBB+/A3 North Texas Tollway Authority Transportation
Revenue, 5.75%, 1/1/33 10,355,670
1,711,000 NR/Aa1 Panhandle Regional Housing Finance Corp.,
Multifamily Housing Revenue, 6.6%, 7/20/31 1,780,809
1,500,000 NR/NR Red River Health Facilities Development Corp.,
Revenue, 8.0%, 11/15/41 1,597,305
1,000,000 A+/A1 Richardson Hospital Authority Revenue,
6.0%, 12/1/34 1,006,390
2,000,000 AAA/Aaa Richardson Independent School District
Revenue, 5.0%, 2/15/38 2,124,440
4,000,000 NR/NR Sanger Industrial Development Corp., Revenue,
8.0%, 7/1/38 4,000,440
1,000,000 NR/NR Tarrant County Cultural Education Facilities
Finance Corp., Revenue, 8.125%, 11/15/39 1,041,530
1,500,000 NR/NR Tarrant County Cultural Education Facilities
Finance Corp., Revenue, 8.25%, 11/15/44 1,564,665
1,000,000(a) NR/NR Texas Midwest Public Facility Corp. Revenue,
9.0%, 10/1/30 458,190
3,000,000 BBB-/Baa3 Texas Private Activity Bond Surface
Transportation Corp., 7.0%, 12/31/38 3,166,530
The accompanying notes are an integral part of these financial statements.
18 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
-----------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
-----------------------------------------------------------------------------------------------
Texas -- (continued)
2,500,000 NR/NR Travis County Health Facilities Development
Corp., Revenue, 7.125%, 1/1/46 $ 2,416,350
--------------
$ 50,104,170
-----------------------------------------------------------------------------------------------
Virginia -- 0.8%
2,000,000 BBB+/Baa1 Washington County Industrial Development
Authority Revenue, 7.75%, 7/1/38 $ 2,278,820
-----------------------------------------------------------------------------------------------
Washington -- 5.4%
3,000,000 BBB/Baa1 Tobacco Settlement Authority of Washington,
6.625%, 6/1/32 $ 2,992,470
1,025,000 BBB/A3 Tobacco Settlement Authority Revenue,
6.5%, 6/1/26 1,022,427
1,500,000 NR/Baa3 Washington State Health Care Facilities
Authority Revenue, 5.5%, 12/1/39 1,426,125
2,000,000 BBB/Baa2 Washington State Health Care Facilities
Authority Revenue, 6.125%, 8/15/37 2,074,680
2,000,000 BBB/Baa2 Washington State Health Care Facilities
Authority Revenue, 6.25%, 8/15/42 2,076,240
1,100,000 NR/NR Washington State Housing Finance
Commission Revenue, 6.75%, 10/1/47 1,007,193
5,000,000 NR/NR Washington State Housing Finance Commission
Nonprofit Revenue, 5.625%, 1/1/27 4,552,600
--------------
$ 15,151,735
-----------------------------------------------------------------------------------------------
West Virginia -- 1.0%
2,000,000 NR/NR City of Philippi West Virginia, 7.75%, 10/1/44 $ 1,892,920
740,000 NR/NR West Virginia Hospital Finance Authority
Hospital Revenue, 9.125%, 10/1/41 886,468
--------------
$ 2,779,388
-----------------------------------------------------------------------------------------------
Wisconsin -- 3.4%
2,900,000(g)(h) NR/NR Aztalan Township, 7.5%, 5/1/18 $ --
2,500,000 NR/NR Wisconsin Public Finance Authority
Continuing Care Retirement Community
Revenue, 8.25%, 6/1/46 2,755,900
1,000,000(d) NR/NR Wisconsin State Health & Educational
Facilities Authority Revenue, 6.125%, 4/1/24 1,029,420
1,000,000(d) NR/NR Wisconsin State Health & Educational
Facilities Authority Revenue, 6.25%, 4/1/34 1,030,050
1,500,000 A+/A1 Wisconsin State Health & Educational
Facilities Authority Revenue, 6.625%, 2/15/39 1,626,765
1,500,000 NR/NR Wisconsin State Public Finance Authority
Revenue, 8.375%, 6/1/20 1,501,785
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 19
Schedule of Investments | 9/30/13 (unaudited) (continued)
------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
------------------------------------------------------------------------------------------------
Wisconsin -- (continued)
1,500,000 NR/NR Wisconsin State Public Finance Authority
Revenue, 8.625%, 6/1/47 $ 1,552,800
--------------
$ 9,496,720
------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT OBLIGATIONS
(Cost $407,888,010) $ 412,067,131
------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT
OBLIGATION -- 2.5% of Net Assets
13,000,000(c)(e) NR/NR Non-Profit Preferred Funding Trust I, 6.75%,
9/15/37 (144A) $ 7,060,300
------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED
DEBT OBLIGATION
(Cost $13,000,000) $ 7,060,300
------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 149.4%
(Cost $420,888,010) (i)(j) $ 419,127,431
------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 4.1% $ 11,416,726
------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (53.5)% $ (150,000,259)
------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHAREOWNERS -- 100.0% $ 280,543,898
================================================================================================
NR Security not rated by S&P or Moody's.
WR Rating withdrawn by either S&P or Moody's.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
September 30, 2013, the value of these securities amounted to
$32,601,841, or 11.6% 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 September 30, 2013.
(a) Security is in default and is non income producing.
(b) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(c) The interest rate is subject to change periodically. The interest is
shown is the rate at September 30, 2013.
(d) Prerefunded bonds have been collateralized by U.S. Treasury or U.S.
Government Agency securities which are held in escrow to pay interest
and principal on the tax exempt issue and to retire the bonds in full at
the earliest refunding date.
(e) Indicates a security that has been deemed illiquid. As of September 30,
2013 the aggregate cost of illiquid securities in the Trust's portfolio
was $14,370,000. As of that date, the aggregate value of illiquid
securities in the Trust's portfolio of $8,091,732 represented 2.9% of
total net assets applicable to common shareowners.
(f) Escrow to maturity.
(g) Security is valued using fair value methods (other than prices supplied
by independent pricing services). See Notes to Financial Statements -
Note 1A.
The accompanying notes are an integral part of these financial statements.
20 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
(h) The company is scheduled for approval of a reorganization plan.
(i) At September 30, 2013 the concentration of investments by type of
obligation/ market sector was as follows:
Insured
FSA 3.2%
FSA-CR 2.2
AMBAC GO OF INSTN 2.1
BHAC-CR MBIA 1.9
AMBAC 0.6
GO OF INSTN 0.6
PSF-GTD 0.5
ASSURED GTY 0.4
GNMA COLL 0.4
NATL-RE 0.2
Revenue Bonds:
Health Revenue 19.8
Development Revenue 14.8
Facilities Revenue 13.1
Tobacco Revenue 9.3
Other Revenue 7.2
Education Revenue 7.0
Transportation Revenue 6.9
Airport Revenue 5.7
Pollution Control Revenue 2.2
Water Revenue 1.9
Utilities Revenue 0.0*
-------
100.0%
=======
* Amount is less than 0.1%.
(j) At September 30, 2013, the net unrealized depreciation on investments
based on cost for federal tax purposes of $423,004,423 was as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 27,228,644
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (31,105,636)
-------------
Net unrealized depreciation $ (3,876,992)
=============
For financial reporting purposes net unrealized depreciation on investments was
$1,760,579 and cost of investments aggregated $420,888,010.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended September 30, 2013 aggregated $60,932,045 and $76,489,748
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 21
Schedule of Investments | 9/30/13 (unaudited) (continued)
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) are
categorized as Level 3. See Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of September 30, 2013, in
valuing the Trust's investments.
------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------
Tax Exempt Obligations: $ -- $412,067,131 $ --** $412,067,131
Municipal Collateralized
Debt Obligation: -- 7,060,300 -- 7,060,300
------------------------------------------------------------------------------------
Total Investments in Securities $ -- $419,127,431 $ -- $419,127,431
====================================================================================
The following is a reconciliation of assets valued using significant
unobservable inputs (level 3):
----------------------------------------------------------------------------------------------------------------
Change in
Balance Realized Unrealized Accrued Transfers Transfers Balance
as of gain appreciation discounts/ in to out of as of
3/31/13 (loss) (depreciation) Purchases Sales premiums Level 3* Level 3* 9/30/13
----------------------------------------------------------------------------------------------------------------
Tax exempt
obligations $ -- $ -- $ -- $ --** $ -- $ -- $ -- $ -- $ --**
----------------------------------------------------------------------------------------------------------------
Total $ --** $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --**
================================================================================================================
* Transfers are calculated on the end of period value.
** Includes security that is fair valued at $0.
During the six months ended September 30, 2013, there were no transfers between
Levels 1, 2, and 3.
The accompanying notes are an integral part of these financial statements.
22 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
Statement of Assets and Liabilities | 9/30/13 (unaudited)
ASSETS:
Investments in securities, at value (cost $420,888,010) $419,127,431
Cash 3,567,670
Receivables --
Investment securities sold 10,000
Interest receivable 8,107,791
Reinvestment of distributions 150,491
--------------------------------------------------------------------------------
Total assets $430,963,383
--------------------------------------------------------------------------------
LIABILITIES:
Due to affiliates 208,134
Administration fee payable 68,270
Accrued expenses 142,235
Other liabilities 587
--------------------------------------------------------------------------------
Total liabilities $ 419,226
--------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 6,000 shares,
including dividends payable of $259 $150,000,259
--------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $333,197,146
Undistributed net investment income 8,457,708
Accumulated net realized loss on investments (59,350,377)
Net unrealized depreciation on investments (1,760,579)
--------------------------------------------------------------------------------
Net assets applicable to common shareowners $280,543,898
================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $280,543,898 / 23,474,274 common shares $ 11.95
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 23
Statement of Operations (unaudited)
For the Six Months Ended 9/30/13
INVESTMENT INCOME:
Interest $ 14,585,424
---------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,344,153
Administrative reimbursements 103,052
Transfer agent fees and expenses 12,304
Shareowner communications expense 4,812
Auction agent fees 191,387
Custodian fees 3,213
Registration fees 919
Professional fees 43,774
Printing expenses 8,769
Trustees' fees 6,540
Pricing fees 6,363
Miscellaneous 27,279
---------------------------------------------------------------------------------------
Total expenses $ 1,752,565
---------------------------------------------------------------------------------------
Net investment income $ 12,832,859
---------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $ 2,622,553
Change in net unrealized appreciation on investments $ (39,186,201)
---------------------------------------------------------------------------------------
Net loss on investments $ (36,563,648)
---------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM
NET INVESTMENT INCOME: $ (147,118)
---------------------------------------------------------------------------------------
Net decrease in net assets applicable to common
shareowners resulting from operations $ (23,877,907)
=======================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------
Six Months
Ended
9/30/13 Year Ended
(unaudited) 3/31/13
----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 12,832,859 $ 25,500,104
Net realized gain on investments 2,622,553 418,450
Change in unrealized appreciation (depreciation)
on investments (39,186,201) 16,515,110
Distributions to preferred shareowners from net
investment income (147,118) (436,645)
----------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners resulting from operations $ (23,877,907) $ 41,997,019
----------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income ($0.57 and $1.14 per
share, respectively) $ (13,357,122) $ (26,607,280)
----------------------------------------------------------------------------------------
Total distributions to common shareowners $ (13,357,122) $ (26,607,280)
----------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 905,168 $ 1,846,794
----------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners from Trust share transactions $ 905,168 $ 1,846,794
----------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners $ (36,329,861) $ 17,236,533
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period 316,873,759 299,637,226
----------------------------------------------------------------------------------------
End of period $ 280,543,898 $ 316,873,759
----------------------------------------------------------------------------------------
Undistributed net investment income $ 8,457,708 $ 9,129,089
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 25
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
9/30/13 Ended Ended Ended Ended Ended
(unaudited) 3/31/13 3/31/12 3/31/11 3/31/10 3/31/09
------------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 13.54 $ 12.87 $ 11.54 $ 12.24 $ 9.23 $ 13.54
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 0.55 $ 1.07 $ 1.08 $ 1.18 $ 1.18 $ 1.22
Net realized and unrealized gain (loss) on investments (1.56) 0.76 1.58 (0.79) 2.83 (4.43)
Distributions to preferred shareowners from:
Net investment income (0.01) (0.02) (0.02) (0.03) (0.04) (0.20)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.02) $ 1.81 $ 2.64 $ 0.36 $ 3.97 $ (3.41)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income (0.57) (1.14) (1.31) (1.06) (0.96) (0.90)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.59) $ 0.67 $ 1.33 $ (0.70) $ 3.01 $ (4.31)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period(b) $ 11.95 $ 13.54 $ 12.87 $ 11.54 $ 12.24 $ 9.23
------------------------------------------------------------------------------------------------------------------------------------
Market value, end of period(b) $ 13.43 $ 15.51 $ 14.72 $ 12.64 $ 13.10 $ 9.04
====================================================================================================================================
Total return at market value(c) (9.67)% 13.53% 28.48% 4.97% 57.76% (28.40)%
Ratios to average net assets of common shareowners:
Net expenses (d) 1.18%(e) 1.23% 1.36% 1.35% 1.41% 1.38%
Net investment income before preferred share distributions 8.62%(e) 8.08% 8.73% 9.54% 10.66% 10.70%
Preferred share distributions 0.10%(e) 0.14% 0.15% 0.25% 0.33% 1.76%
Net investment income available to common shareowners 8.52%(e) 7.94% 8.58% 9.29% 10.33% 8.94%
Portfolio turnover 14% 14% 15% 10% 8% 24%
Net assets of common shareowners, end of period (in thousands) $280,544 $316,874 $299,637 $266,870 $281,551 $211,147
The accompanying notes are an integral part of these financial statements.
26 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
9/30/13 Ended Ended Ended Ended Ended
(unaudited) 3/31/13 3/31/12 3/31/11 3/31/10 3/31/09
----------------------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) $150,000 $150,000 $150,000 $150,000 $150,000 $150,000
Asset coverage per preferred share, end of period $ 71,757 $ 77,813 $ 74,941 $ 69,479 $ 71,926 $ 60,192
Average market value per preferred share(f) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per
preferred share $ 25,001 $ 25,001 $ 25,001 $ 25,001 $ 25,001 $ 25,001
Ratios to average net assets of common shareowners before
waivers and reimbursement of expenses
Total expenses(d) 1.18%(e) 1.23% 1.36% 1.35% 1.41% 1.38%
Net investment income before preferred share distributions 8.62%(e) 8.08% 8.73% 9.54% 10.66% 10.70%
Preferred share distributions 0.10%(e) 0.14% 0.15% 0.25% 0.33% 1.76%
Net investment income available to common shareowners 8.52%(e) 7.94% 8.58% 9.29% 10.33% 8.94%
==================================================================================================================================
(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) Annualized.
(f) Market value is redemption value without an active market.
The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for the Trust's common shares.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 27
Notes to Financial Statements | 9/30/13 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Municipal High Income Advantage Trust (the Trust) was organized as a
Delaware statutory trust on August 6, 2003. Prior to commencing operations on
October 20, 2003, the Trust had no operations other than matters relating to its
organization and registration as a diversified, closed-end management investment
company under the Investment Company Act of 1940, as amended. The investment
objective of the Trust is to seek a high level of current income exempt from
regular federal income tax, and the Trust may, as a secondary objective, also
seek capital appreciation to the extent that it is consistent with its primary
investment objective.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the reporting
year. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Fixed income securities
with remaining maturity of more than sixty days are valued at prices
supplied by independent pricing services, which consider such factors as
market prices, market events, quotations from one or more brokers, Treasury
spreads, yields, maturities and ratings. Valuations may be supplemented by
dealers and other sources, as required. The values of interest rate swaps
are determined by obtaining dealer quotations. Equity securities that have
traded on an exchange are valued at the last sale price on the principal
exchange where they are traded. Equity securities that have not traded on
the date of valuation, or securities for which sale prices are not
available, generally are valued using the mean between the last bid and
asked prices. Short-term fixed income securities with remaining maturities
of sixty days or less generally are valued at amortized cost. Shares of
money market mutual funds are valued at such funds' net asset value.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by or at the
direction or with the
28 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
approval of the Valuation Committee using fair value methods pursuant to
procedures adopted by the Board of Trustees. The Valuation Committee is
comprised of certain members of the Board of Trustees. The Trust may use
fair value methods if it is determined that a significant event has occurred
after the close of the exchange or market on which the security trades and
prior to the determination of the Trust's net asset value. Examples of a
significant event might include political or economic news, corporate
restructurings, natural disasters, terrorist activity or trading halts.
Thus, the valuation of the Trust's securities may differ significantly from
exchange prices and such differences could be material. Pioneer Investment
Management, Inc. (PIM), the Trust's investment adviser, is responsible for
monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee.
At September 30, 2013, one security was valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services) representing 0.0% of net assets. Inputs used when applying fair
value methods to value a security may include credit ratings, the financial
condition of the company, current market conditions and comparable
securities.
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis with a
corresponding increase or decrease in the cost basis of the security.
Interest income, including interest or income bearing cash accounts, is
recorded on an accrual basis.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Trust becomes aware of the ex-dividend data in
the exercise of reasonable diligence.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. As of
September 30, 2013, the Trust did not have any interest and penalties
related to uncertain tax positions, which if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax years for the
prior three fiscal years remain subject to examination by federal and state
tax authorities.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 29
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable to common and
preferred shareowners will be determined at the end of the current taxable
year. The tax character of distributions paid during the year ended March
31, 2013 was as follows:
----------------------------------------------------------------------------
2013
----------------------------------------------------------------------------
Distribution paid from:
Tax exempt income $25,637,813
Ordinary income 1,406,112
----------------------------------------------------------------------------
Total $27,043,925
============================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at March 31, 2013.
----------------------------------------------------------------------------
2013
----------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 8,909,384
Undistributed ordinary income 980,395
Capital loss carryforward (61,526,320)
Post-October loss deferred (2,049,542)
Dividends payable (5,961)
Unrealized appreciation 38,273,825
----------------------------------------------------------------------------
Total $ (15,418,219)
============================================================================
The difference between book-basis and tax-basis unrealized appreciation is
primarily attributable to the difference between book and tax amortization
methods for premiums and discounts on fixed income securities, the
difference between book and tax accounting for swap agreements, book/tax
difference in accrual of income on securities in default, and other
temporary differences.
C. Automatic Dividend Reinvestment Plan
All common shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional common shares
of
30 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
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 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.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 31
D. Risks
At times, the Trust's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Trust more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. Information regarding the
Trust's principal risks is contained in the Trust's original offering
prospectus, with additional information included in the Trust's shareowner
reports issued from time to time. Please refer to those documents when
considering the Trust's principal risks.
The Trust may invest in both investment grade and below investment grade
(high-yield) municipal securities with a broad range of maturities and
credit ratings. Debt securities rated below investment grade are commonly
referred to as "junk bonds" and are considered speculative. These securities
involve greater risk of loss, are subject to greater price volatility, and
are less liquid, 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 of the
issuance of debt securities), (ii) the issuance of preferred stock or other
similar preference securities, and/or (iii) any other means. For the period
ended September 30, 2013, 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 September 30,
2013, $276,404 was payable to PIM related to management costs, administrative
costs and certain other reimbursements and is included in "Due to affiliates"
and "Administration fee" on the Statement of Assets and Liabilities.
32 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
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. Deutsche Bank Trust Company Americas (Deutsche Bank) is the transfer
agent, registrar, dividend paying agent and auction agent with respect to the
Trust's Auction Preferred Shares (APS). The Trust pays Deutsche Bank an annual
fee, as is agreed to from time to time by the Trust and Deutsche Bank, for
providing such services.
In addition, the Trust reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareowner communications activities such as proxy and
statement mailings and outgoing phone calls.
4. Expense Offset Agreements
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 six months ended September 30, 2013, the
Trust expenses were not reduced under such arrangement.
5. Interest Rate Swaps
The Trust may enter into interest rate swap transactions to attempt to protect
itself from increasing dividend or interest expense on its leverage resulting
from increasing short-term interest rates. The cost of leverage may rise with an
increase in interest rates, generally having the effect of lower yields and
potentially lower dividends to common shareowners. Interest rate swaps can be
used to "lock in" the cost of leverage and reduce the negative impact that
rising short-term interest rates would have on the Trust's leveraging costs.
An interest rate swap is an agreement between two parties, which involves
exchanging floating rate and fixed rate interest payments for a specified period
of time. Interest rate swaps involve the accrual of the net interest payments
between the parties on a daily basis, with the net amount recorded within the
unrealized appreciation/depreciation of interest rate swaps on the Statement of
Assets and Liabilities. Once the interim payments are settled in cash, at the
pre-determined dates specified in the agreement, the net amount is recorded as
realized gain or loss from interest rate swaps on the Statement of Operations.
During the term of the swap, changes in the value of the swap are recognized as
unrealized gains and losses by "marking-to-market" the value of the swap based
on values obtained from dealer quotations. When the swap is terminated, the
Trust will record a realized gain or loss equal to the difference, if any,
between the proceeds from (or cost of) closing the contract and the cost basis
of the contract. The Trust is exposed to credit risk in the event of
non-performance
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 33
by the other party to the interest rate swap. Risk may also arise with regard to
market movements in the value of the swap arrangement that do not exactly offset
the changes in the related dividend requirement or interest expense on the
Trust's leverage.
There were no interest rate swap contracts open during the six months ended
September 30, 2013 or outstanding at September 30, 2013.
6. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the periods ended
September 30, 2013 and March 31, 2013 were as follows:
--------------------------------------------------------------------------------
9/30/13 3/31/13
--------------------------------------------------------------------------------
Shares outstanding at beginning of period 23,406,918 23,282,302
Reinvestment of distributions 67,356 124,616
--------------------------------------------------------------------------------
Shares outstanding at end of period 23,474,274 23,406,918
================================================================================
The Trust may classify or reclassify any unissued shares of beneficial interest
into one or more series of preferred shares of beneficial interest. As of
September 30, 2013, 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 0.94% to 0.429% during the six months ended
September 30, 2013.
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,
34 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
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.
7. Subsequent Events
The Board of Trustees of the Trust declared on October 4, 2013 a dividend from
undistributed net investment income of $0.0950 per common share payable October
31, 2013, to common shareowners of record on October 17, 2013.
Subsequent to September 30, 2013, dividends declared and paid on preferred
shares totaled $30,769 in aggregate for the two outstanding preferred share
series through November 13, 2013.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 35
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.
Results of Shareholder Meeting (unaudited)
At the annual meeting of shareowners held on September 24, 2013, shareowners of
Pioneer Municipal High Income Advantage were asked to consider the proposal
described below. A report of the total votes cast by the Trust's shareholders
follows:
Proposal 1 -- To elect Class I Trustee.
--------------------------------------------------------------------------------
Nominee For Withheld
--------------------------------------------------------------------------------
Daniel K. Kingsbury 20,543,427.000 944,481.000
David R. Bock* 3,517.000 292.000
* Elected by preferred shares only
36 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman John F. Cogan, Jr., President*
David R. Bock Daniel K. Kingsbury, Executive
Benjamin M. Friedman Vice President
Margaret B.W. Graham Mark E. Bradley, Treasurer**
Daniel K. Kingsbury Christopher J. Kelley, Secretary
Marguerite A. Piret
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Legal Counsel
Bingham McCutchen LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc
Shareowner Services and Transfer Agent
American Stock Transfer & Trust Company
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at http://www.sec.gov.
* Chief Executive Officer of the Trust
** Chief Financial and Accounting Officer of the Trust
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 37
This page for your notes.
38 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
This page for your notes.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 39
This page for your notes.
40 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
This page for your notes.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 41
This page for your notes.
42 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
This page for your notes.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13 43
This page for your notes.
44 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/13
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) 2013 Pioneer Investments 19435-07-1113
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.
N/A
(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.
N/A
(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.
N/A
(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.
N/A
(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.
N/A
(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.
N/A
(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 Funds 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.
Not applicable to open-end management investment companies.
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.
Information not required in semi annual reports on form NCSR.
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/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date November 29, 2013
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/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date November 29, 2013
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date November 29, 2013
* Print the name and title of each signing officer under his or her signature.