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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, 2010 through March 31, 2011
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 SHAREOWNERS.
Pioneer Municipal High
Income Advantage Trust
--------------------------------------------------------------------------------
Annual Report | March 31, 2011
--------------------------------------------------------------------------------
Ticker Symbol: MAV
[LOGO] PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Schedule of Investments 12
Financial Statements 23
Notes to Financial Statements 28
Report of Independent Registered Public Accounting Firm 36
Approval of Investment Advisory Agreement 38
Trustees, Officers and Service Providers 42
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 1
President's Letter
Dear Shareowner,
In 2010, the U.S. economy moved forward on a slow path to recovery. But with
the memory of a deep recession still lingering, businesses and consumers
remained cautious about both investing and spending. While business
fundamentals showed signs of improvement, there was still a reluctance to hire,
and high unemployment remained a problem throughout the year. Wary investors,
concerned about risk, gravitated towards cash and bonds for most of 2010, until
better economic news in the final few months of the year caused a slight shift
in investor sentiment back towards stocks, thus lifting equity returns.
Pioneer remains generally optimistic about the prospects for economic recovery.
The recovery process may occur more slowly than many would like, and may be
accompanied by short-term market swings. But our investment professionals are
finding what we believe are good opportunities to invest in both equities and
bonds.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. The strategy has generally performed well for many
investors. For instance, bond markets certainly rewarded investors for most of
2010, while equity markets barely budged, even though equity valuations were
inexpensive relative to bonds and compared with historic levels -- conditions
which represented potentially good value for long-term investors. Ultimately,
many of those long-term investors were rewarded when the equity markets finally
rallied over the last few months of 2010.
Pioneer has not changed the basic approach to investing that we have used for
more than 80 years. We remain focused on company fundamentals and risk
management. Our investment process is based on careful research into individual
companies, quantitative analysis, and active portfolio management. This
three-pillared process, which we apply to each of our portfolios, is supported
by an integrated team approach and is designed to carefully balance risk and
reward. Our experienced professionals devote themselves to the careful research
needed to identify investment opportunities in markets around the world.
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
2 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
your individual needs. There is no single best strategy that works for every
investor.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
www.pioneerinvestments.com. We greatly appreciate your trust in us and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Trust's historical or future performance are
statements of the opinion of the Trust's management as of the date of this
report. These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 3
Portfolio Management Discussion | 3/31/11
Municipal bonds produced modestly positive returns over the 12 months ended
March 31, 2011, although the overall results masked the dramatic changes in the
investment environment during the period. Municipals generated solid, positive
returns during the first six months of the period, only to suffer the effects
of a severe reversal in investor sentiment in the final three months of 2010,
as the supply of tax-exempt securities increased. The situation somewhat
stabilized in the first quarter of 2011 -- the final three months of the
12-month period -- when supply and demand appeared to come into balance. In the
following interview, David Eurkus discusses the factors that influenced the
performance of Pioneer Municipal High Income Advantage Trust over the 12 months
ended March 31, 2011. Mr. Eurkus is a member of Pioneer's fixed-income team,
which is responsible for the daily management of the Trust.
Q How did Pioneer Municipal High Income Advantage Trust perform during the 12
months ended March 31, 2011?
A Pioneer Municipal High Income Advantage Trust produced a total return of
2.57% at net asset value, and 4.97% at market price, during the 12 months
ended March 31, 2011, with common shares of the Trust selling at a 9.5%
premium to net asset value at the end of the period. During the same 12
months, the Trust's benchmarks, the Barclays Capital Municipal Bond Index
and the Barclays Capital High Yield Municipal Bond Index, returned 1.63%
and 3.28%, respectively. The Barclays Capital Municipal Bond Index is
designed to track the performance of investment-grade municipal bonds,
while the High Yield Municipal Bond Index is designed to track the
performance of lower-rated municipal bonds. Unlike the Trust, the two
Barclays Capital indices do not use leverage. On March 31, 2011, the 30-day
SEC yield on the Trust's shares was 9.19%.
Q Could you describe the investment environment for municipal bonds over the 12
months ended March 31, 2011, and how the environment influenced the Trust's
performance?
A Municipal securities in general struggled in the final quarter of 2010, after
producing healthy returns when demand for tax-advantaged investments
steadily increased during the previous six months. Demand for municipal
bond investments dramatically fell during the last three months of 2010, as
a heavy issuance of new, tax-exempt municipal bonds entered the market. The
inflow of new bonds came after it became clear that the Federal government
would not extend the Build America Bonds (BAB) program, which had
authorized the issuance of taxable municipal securities subsidized by the
U.S. Treasury. At the same time that supply was increasing, demand for
4 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
municipals shrank markedly as many investors fled the market. Among the
factors that changed during the final quarter of 2010 was a new perception
that the Federal Reserve System (the Fed) was not likely to undertake a
third round of quantitative easing, which had been designed to help
stimulate the economy and had helped support the performance of municipal
bonds (among other fixed-income securities).
The election of many new Republican members of Congress also had reduced
the likelihood that the federal government would authorize further stimulus
spending, either to spur the economy or to assist state and local
governments. In addition, well-publicized remarks by one analyst predicting
the possibility of widespread defaults by municipal securities in the
following 12 months helped drive many individual investors from the market.
The result was that the municipal market performed extremely poorly in the
final quarter of 2010. Municipals fared only somewhat better in the first
quarter of 2011 -- the final quarter of the Trust's fiscal year -- with the
general municipal market producing slightly positive results and high-yield
municipals generating slightly negative results on a total return basis.
Over the full 12 months ended March 31, 2011, both high-yield and
investment-grade municipals generated modestly positive performance, with
high-yielding bonds outperforming higher-quality securities.
In that environment, the Trust outperformed the Barclays Capital Municipal
Bond Index, which measures performance of the general municipal market, but
trailed the Barclays Capital High Yield Municipal Bond Index, which tracks
the high-yield segment of the municipal market. The performance was
consistent with the Trust's overall positioning, with exposure to both
high-yield and investment-grade municipals. At the end of the period (March
31, 2011), for example, 41.5% of the Trust's total investment portfolio was
invested in high-yield, below-investment-grade debt, with the remaining
58.5% of the Trust's total investment portfolio held in higher-quality
municipals.
Q How did you position the Trust's portfolio over the 12 months ended March 31,
2011?
A We maintained a very consistent positioning during the 12 months ended March
31, 2011, keeping the Trust's portfolio fully invested, well diversified
and with an emphasis on credit-worthy assets. We focus on producing
generous current income for shareowners through investments in securities
that we believe, as a result of our credit research, are backed by issuers
that have the ability to pay out consistent, reliable income. We invested
the Trust almost exclusively in revenue bonds during the 12-month period.
Revenue bonds rely on revenues from specific funding sources, such as
hospital health care facilities or colleges/universities or water treatment
plants, that produce their own fees and revenues. In contrast, general
obligation bonds
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 5
do not require a dedicated stream of tax revenues to cover that specific
debt issuance and are more likely to experience downgrades in credit
quality by various rating agencies due to the current financial problems
facing many state and local governments. At the end of the Trust's fiscal
year, only 0.6% of the Trust's total investment portfolio was invested in
general obligation bonds. Revenue bonds also tend to be issued by sectors
that are vital to the domestic economy, such as hospitals, universities,
power generating stations and airports. The two largest groups in the
Trust's portfolio were bonds backed by health care institutions, which
represented 33.4% of the Trust's total investment portfolio, and bonds
backed by transportation facilities -- including airports -- which
represented 11.2% of the Trust's total investment portfolio.
Q Could you describe how leverage is used in managing the Trust?
A The Trust employs leverage provided by auction-preferred shares to invest the
Trust in additional longer-maturity municipal securities that typically pay
higher dividends than the dividend rates payable on the preferred shares,
thereby increasing the Trust's yield. The use of leverage can increase the
Trust's potential to pay higher yields to its shareowners than would
generally be paid by an unleveraged portfolio. During periods of low market
interest rates and modest borrowing costs, the use of leverage can have a
significant positive effect on the Trust's yield. However, just as the use
of leverage provides the potential to enhance yield, it also can increase
investment risk. During periods when municipal bond prices tend to change,
the use of leverage can magnify the effect of changing prices on the
Trust's total return, which is the combination of yield and price change.
When bond prices rise, the use of leverage can further enhance the Trust's
total return; when bond prices decline, the use of leverage can magnify the
price loss to the Trust.
Q How did the level of leverage employed by the Trust change over the Trust's
fiscal year?
A During the 12 months ended March 31, 2011, bond prices tended to rise during
the first six months of the period, and then tended to decline over the
second six months. At the end of the Trust's fiscal year on March 31, 2011,
36.0% of the Trust's total managed assets were financed by leverage,
compared with 34.8% of the Trust's total managed assets being financed by
leverage at the beginning of the Trust's fiscal year on April 1, 2010. The
absolute amount of leverage used by the Trust was unchanged over the 12
months ended March 31, 2011.
6 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
Q What types of investments most affected the Trust's performance during the 12
months ended March 31, 2011?
A The Trust's municipal bond holdings generally performed in line with
expectations. Most of the areas in which we invested the Trust's assets
produced positive results during the period. The one area that tended to
detract from the Trust's performance results were some investments in
AAA-rated, zero-coupon bonds in the transportation sector. Because
zero-coupon bonds tend to decline in price more than regular coupon bonds
when interest rates rise, those holdings suffered greater price loss when
market interest rates rose in the second half of the Trust's fiscal year.
Q What is your investment outlook?
A We think there are good opportunities in the tax-exempt municipal market,
where bonds are very attractively priced relative to the taxable market.
We think that the supply of new municipal bonds is likely to be limited,
based on the extreme reduction in new issuance in the first quarter of
2011, as state and local governments across the nation embarked on
austerity programs. At the same time, yields in the municipal market are
very attractive. Indeed, at the start of the Trust's new fiscal year
tax-exempt yields were often higher than the yields offered by
comparable-maturity, comparable-quality taxable bonds. At some point, we
expect that investors will recognize these values.
We believe that the general economic backdrop also should support
investments in municipal securities. The combination of a recovering
economy, continued low inflation and the Fed's continued accommodative
monetary policy all should support municipal bonds, including high-yield
municipal securities.
Please refer to the Schedule of Investments on pages 12-22 for a full listing
of Trust securities.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. The Trust may invest in securities of issuers that
are in default or that are in bankruptcy.
A portion of income may be subject to state, federal, and/or alternative
minimum tax. Capital gains, if any, are subject to a capital gains tax. When
interest rates rise, the prices of fixed-income securities in the Trust will
generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Trust will generally rise. By concentrating in
municipal securities, the portfolio is more susceptible to adverse economic,
political or regulatory developments than is a portfolio that invests more
broadly. Investments in the Trust are subject to possible loss due to the
financial failure of the issuers of the underlying securities and the issuers'
inability to meet their debt obligations.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 7
The Trust 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 the opinion of Trust management as of the date of this report.
These statements should not be relied upon for any other purposes.
8 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
Portfolio Summary | 3/31/11
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Health Revenue 33.4%
Tobacco Revenue 11.1%
Development Revenue 10.1%
Airport Revenue 8.9%
Insured 8.7%
Other Revenue 8.6%
Pollution Control Revenue 6.0%
Housing Revenue 2.8%
Transportation Revenue 2.3%
Facilities Revenue 2.2%
Education Revenue 2.1%
Power Revenue 1.8%
Water Revenue 1.2%
Gaming Authority Revenue 0.5%
Airline Revenue 0.3%
Utilities Revenue* 0.0%
* Amount is less than 0.1%
Portfolio Maturity
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
0-1 year 9.9%
1-3 years 11.5%
3-6 years 9.0%
6-8 years 9.9%
8-10 years 13.5%
10+ years 46.2%
Quality Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on Standard & Poor's
ratings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
AAA 5.7%
AA 9.6%
A 7.4%
BBB 23.7%
BB 6.3%
B 6.8%
CCC 5.0%
CC 0.2%
Not Rated 35.3%
Bond ratings are ordered highest to lowest in portfolio. Based on Standard &
Poor's measures AAA (highest possible rating) through BBB are considered
investment grade; BB or lower ratings are considered non-investment grade. Cash
equivalents and some bonds may not be rated.
The portfolio is actively managed and current holdings may be different.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 9
Prices and Distributions | 3/31/11
Share Prices and Distributions
--------------------------------------------------------------------------------
Market Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
3/31/11 3/31/10
--------------------------------------------------------------------------------
$12.64 $13.10
--------------------------------------------------------------------------------
Premium 9.5% 7.0%
--------------------------------------------------------------------------------
Net Asset Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
3/31/11 3/31/10
--------------------------------------------------------------------------------
$11.54 $12.24
--------------------------------------------------------------------------------
Distributions per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
4/1/10-3/31/11 $1.0600 $ -- $ --
--------------------------------------------------------------------------------
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. New Jersey Economic Development Authority Revenue, 6.25%, 9/15/29 2.9%
-------------------------------------------------------------------------------------------------
2. Indiana State Development Finance Authority Revenue, 5.75%, 10/1/11 2.5
-------------------------------------------------------------------------------------------------
3. Houston Texas Airport System Special Facilities Revenue, 6.75%, 7/1/29 2.4
-------------------------------------------------------------------------------------------------
4. Massachusetts Housing Finance Agency, 5.35%, 12/1/45 2.4
-------------------------------------------------------------------------------------------------
5. North Texas Tollway Authority Revenue, 5.75%, 1/1/33 2.3
-------------------------------------------------------------------------------------------------
6. University of California, RIB, 10.994%, 5/15/38 2.1
-------------------------------------------------------------------------------------------------
7. South Carolina Jobs Economic Development Authority Revenue, 6.375%, 8/1/34 2.0
-------------------------------------------------------------------------------------------------
8. Non-Profit Preferred Funding Trust I, Series E, 12.0%, 9/15/37 (144A) 2.0
-------------------------------------------------------------------------------------------------
9. Massachusetts Development Finance Agency, 5.75%, 1/1/42 1.8
-------------------------------------------------------------------------------------------------
10. Knox County Health Educational & Housing Facilities Board Hospital Revenue, 6.5%,
4/15/31 1.8
-------------------------------------------------------------------------------------------------
* This list excludes temporary cash investments. The portfolio is actively
managed, and currently holdings may be different. The holdings listed should
not be considered recommendations to buy or sell any security listed.
10 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
Performance Update | 3/31/11
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, compared to
that of the Barclays Capital Municipal Bond Index and the Barclays Capital High
Yield Municipal Bond Index.
Cumulative Total Returns
(As of March 31, 2011)
------------------------------------------------------
Net Asset Market
Period Value (NAV) Price
------------------------------------------------------
Life-of-Trust
(10/17/2003) 39.51% 45.98%
5 Years 11.17 22.17
1 Year 2.57 4.97
------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Municipal Barclays Capital
High Income Barclays Capital High Yield
Advantage Trust Municipal Bond Index Municipal Bond Index
--------------- -------------------- --------------------
10/03 10,000 10,000 10,000
3/04 10,293 10,364 10,740
3/05 10,712 10,641 11,728
3/06 11,949 11,046 12,796
3/07 13,169 11,645 14,056
3/08 12,312 11,867 13,143
3/09 8,815 12,137 10,625
3/10 13,906 13,313 13,633
3/11 14,598 13,530 14,081
Call 1-800-225-6292 or visit www.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 Capital Municipal Bond
Index is a broad measure of the municipal bond market. Barclays Capital High
Yield Municipal Bond Index 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 are
not leveraged. You cannot invest directly in the indices.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 11
Schedule of Investments | 3/31/11
-----------------------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
-----------------------------------------------------------------------------------------------------
TAX-EXEMPT OBLIGATIONS -- 149.8% of Net Assets
Alabama -- 0.7%
$ 2,500,000 NR/NR Huntsville-Redstone Village Special Care Facilities
Financing Authority, 5.5%, 1/1/43 $ 1,753,225
-----------------------------------------------------------------------------------------------------
Arizona -- 3.4%
5,000,000 NR/NR Casa Grande Industrial Development Authority Hospital
Revenue, 7.625%, 12/1/29 $ 4,541,800
1,512,000 NR/Baa3 Pima County Industrial Development Authority,
6.75%, 7/1/31 1,392,400
2,640,000 NR/NR Pima County Industrial Development Authority,
7.0%, 1/1/38 2,321,299
1,000,000 NR/NR San Luis Facility Development Corp., 7.25%, 5/1/27 929,380
-----------
$ 9,184,879
-----------------------------------------------------------------------------------------------------
California -- 10.5%
3,140,000(a) AA+/WR California State University Revenue, RIB, 10.442%,
11/1/39 (144A) $ 2,263,783
2,425,000 A-/A1 California State Various Purpose, 5.75%, 4/1/31 2,487,468
8,575,000(a) AA+/NR California State Various Purpose, RIB, 10.442%,
6/1/37 (144A) 6,384,774
3,000,000 BB+/NR California Statewide Communities Development
Authority, 7.25%, 10/14/38 3,002,580
803,175(b) NR/NR California Statewide Communities Development
Authority, 9.0%, 12/1/38 45,138
2,680,000+ AAA/Aaa Golden State Tobacco Securitization Corp.,
6.75%, 6/1/39 3,017,466
2,500,000 A/A2 San Jose California Airport Revenue, 5.0%, 3/1/37 2,203,025
10,500,000(a) AA+/NR University of California, RIB, 10.994%, 5/15/38 8,481,795
-----------
$27,886,029
-----------------------------------------------------------------------------------------------------
Colorado -- 1.4%
2,850,000+ NR/WR Denver Health & Hospital Authority Healthcare
Revenue, 6.0%, 12/1/31 $ 2,955,992
1,000,000 NR/NR Kremmling Memorial Hospital District,
7.125%, 12/1/45 912,250
-----------
$ 3,868,242
-----------------------------------------------------------------------------------------------------
Connecticut -- 3.0%
7,750,000 BBB/Baa1 Connecticut State Development Authority Revenue,
5.75%, 11/1/37 $ 7,091,482
1,000,000 NR/NR Hamden Connecticut Facility Revenue, 7.75%, 1/1/43 1,009,920
-----------
$ 8,101,402
-----------------------------------------------------------------------------------------------------
District of Columbia -- 3.4%
2,700,000 BBB/Baa3 District of Columbia Tobacco Settlement Financing
Corp., 6.5%, 5/15/33 $ 2,628,801
The accompanying notes are an integral part of these financial statements.
12 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
------------------------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
------------------------------------------------------------------------------------------------------
District of Columbia -- (continued)
$ 6,825,000 BBB/Baa3 District of Columbia Tobacco Settlement Financing
Corp., 6.75%, 5/15/40 $ 6,389,292
-----------
$ 9,018,093
------------------------------------------------------------------------------------------------------
Florida -- 4.2%
1,000,000 NR/NR Florida Development Finance Corp., 6.0%, 9/15/40 $ 831,989
4,500,000 BBB/Baa1 Hillsborough County Industrial Development Authority
Pollution Control Revenue, 5.5%, 10/1/23 4,553,505
1,980,000 NR/NR Hillsborough County Industrial Development Authority
Revenue, 6.75%, 7/1/29 1,759,448
1,000,000+ NR/WR Hillsborough County Industrial Development Authority
Revenue, 8.0%, 8/15/32 1,364,520
500,000 NR/NR Miami Beach Health Facilities Authority,
5.375%, 11/15/28 415,630
2,500,000 A-/A2 Miami-Dade County Florida Aviation Revenue,
5.5%, 10/1/41 2,359,275
-----------
$11,284,367
------------------------------------------------------------------------------------------------------
Georgia -- 4.4%
5,210,000(a) NR/Aa3 Atlanta Georgia Water and Wastewater Revenue, RIB,
10.442%, 11/1/43 (144A) $ 3,943,397
1,000,000 CCC+/NR Clayton County Development Authority Special
Facilities Revenue, 9.0%, 6/1/35 1,053,670
900,000 NR/NR DeKalb County Georgia Hospital Authority Revenue,
6.0%, 9/1/30 853,551
750,000 NR/NR DeKalb County Georgia Hospital Authority Revenue,
6.125%, 9/1/40 688,575
1,065,000 NR/Ba3 Effingham County Industrial Development Authority,
6.5%, 6/1/31 1,048,205
3,360,000 NR/NR Fulton County Residential Care Facilities,
7.0%, 7/1/29 2,559,648
1,650,000 NR/NR Savannah Georgia Economic Development Authority
Revenue, 7.4%, 1/1/34 1,541,841
-----------
$11,688,887
------------------------------------------------------------------------------------------------------
Guam -- 2.2%
1,000,000 B/NR Guam Government of Department Education
Certificates of Participation, 6.625%, 12/1/30 $ 920,420
4,400,000+ AAA/NR Northern Mariana Islands, 6.75%, 10/1/33 5,031,356
-----------
$ 5,951,776
------------------------------------------------------------------------------------------------------
Idaho -- 1.3%
2,000,000 BBB+/Baa1 Power County Industrial Development Corp.,
6.45%, 8/1/32 $ 2,003,520
1,500,000 BBB+/Baa1 Power County Pollution Control Revenue,
5.625%, 10/1/14 1,500,570
-----------
$ 3,504,090
------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 13
Schedule of Investments | 3/31/11 (continued)
-------------------------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
-------------------------------------------------------------------------------------------------------
Illinois -- 8.6%
$ 3,000,000(c) NR/NR Centerpoint Intermodal Center, 8.5%,
6/15/23 (144A) $ 2,996,580
2,000,000 NR/Caa2 City of Chicago Illinois, 5.5%, 12/1/30 1,432,680
1,450,000 A+/A1 Illinois Finance Authority Revenue, 5.5%, 4/1/39 1,317,687
2,000,000 AA+/NR Illinois Finance Authority Revenue, 6.0%, 8/15/25 2,043,220
1,000,000 NR/NR Illinois Finance Authority Revenue, 6.0%, 11/15/27 669,620
2,000,000 AA+/Aa2 Illinois Finance Authority Revenue, 6.0%, 8/15/39 2,062,160
2,500,000 NR/NR Illinois Finance Authority Revenue, 6.125%, 11/15/25 2,154,250
6,000,000 NR/NR Illinois Finance Authority Revenue, 8.25%, 5/15/45 5,693,220
2,500,000 NR/NR Illinois Finance Authority Revenue, 8.25%, 2/15/46 2,351,075
1,500,000(b) NR/NR Illinois Health Facilities Authority Revenue,
6.9%, 11/15/33 556,500
2,440,000 NR/NR Southwestern Illinois Development Authority Revenue,
5.625%, 11/1/26 1,638,850
-----------
$22,915,842
-------------------------------------------------------------------------------------------------------
Indiana -- 6.1%
250,000 NR/Baa3 East Chicago Indiana Exempt Facilities Revenue,
7.0%, 1/1/14 $ 238,930
10,000,000 BBB-/WR Indiana State Development Finance Authority Revenue,
5.75%, 10/1/11 10,047,000
5,000,000 NR/Ba3 Jasper County Industrial Economic Development
Revenue, 5.6%, 4/1/29 4,511,900
1,900,000 NR/NR Vincennes Industrial Economic Development Revenue,
6.25%, 1/1/24 1,607,381
-----------
$16,405,211
-------------------------------------------------------------------------------------------------------
Kansas -- 0.3%
1,000,000 NR/A2 Kansas Development Finance Authority,
5.0%, 5/15/35 $ 887,250
-------------------------------------------------------------------------------------------------------
Kentucky -- 1.4%
4,390,000 BB-/NR Kentucky Economic Development Finance Authority
Hospital System Revenue, 5.875%, 10/1/22 $ 3,758,059
-------------------------------------------------------------------------------------------------------
Louisiana -- 5.1%
2,500,000 BBB-/Ba2 Louisiana Local Government Environmental Facilities
Development Authority Revenue, 6.75%, 11/1/32 $ 2,546,225
6,000,000 NR/Baa1 Louisiana Public Facilities Authority Revenue,
5.5%, 5/15/47 4,871,760
750,000 BBB+/NR Opelousas Louisiana General Hospital Authority
Revenue, 5.75%, 10/1/23 750,938
5,915,000 A-/Baa3 Tobacco Settlement Financing Corp.,
5.875%, 5/15/39 5,383,360
-----------
$13,552,283
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
-----------------------------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
-----------------------------------------------------------------------------------------------------------
Maryland -- 1.5%
$ 460,000 NR/NR Maryland Health & Higher Educational Facilities
Authority Revenue, 5.25%, 1/1/27 $ 357,057
1,250,000 NR/NR Maryland Health & Higher Educational Facilities
Authority Revenue, 5.3%, 1/1/37 832,338
1,250,000 NR/Baa3 Maryland Health & Higher Educational Facilities
Authority Revenue, 5.75%, 7/1/38 1,008,363
2,000,000 NR/NR Maryland Health & Higher Educational Facilities
Authority Revenue, 6.25%, 1/1/45 1,900,380
-----------
$ 4,098,138
-----------------------------------------------------------------------------------------------------------
Massachusetts -- 9.5%
755,000 BB/NR Massachusetts Development Finance Agency,
5.25%, 10/1/18 $ 696,299
8,000,000 A/WR Massachusetts Development Finance Agency,
5.75%, 1/1/42 7,538,640
1,930,000 NR/NR Massachusetts Development Finance Agency,
7.1%, 7/1/32 1,719,977
2,195,000 BBB-/Baa3 Massachusetts Health & Educational Facilities
Authority Revenue, 5.375%, 7/15/28 1,899,597
1,000,000+ NR/Baa3 Massachusetts Health & Educational Facilities
Authority Revenue, 6.35%, 7/15/32 1,081,840
3,420,000 NR/NR Massachusetts Health & Educational Facilities
Authority Revenue, 6.5%, 1/15/38 2,761,718
10,760,000 AA-/Aa3 Massachusetts Housing Finance Agency,
5.35%, 12/1/45 9,643,327
-----------
$25,341,398
-----------------------------------------------------------------------------------------------------------
Michigan -- 0.4%
500,000 NR/Ba1 Flint Michigan Hospital Building Authority Revenue,
7.375%, 7/1/35 $ 476,250
735,000 NR/NR Michigan Public Educational Facilities Authority
Revenue, 7.0%, 10/1/36 630,240
-----------
$ 1,106,490
-----------------------------------------------------------------------------------------------------------
Missouri -- 1.6%
1,500,000(b)(d) NR/Ca St. Louis Industrial Development Authority Revenue,
7.2%, 12/15/28 $ 767,190
6,640,000(b)(d) NR/Ca St. Louis Industrial Development Authority Revenue,
7.25%, 12/15/35 3,383,744
-----------
$ 4,150,934
-----------------------------------------------------------------------------------------------------------
Montana -- 0.6%
2,445,000(e) NR/NR Hardin Increment Industrial Infrastructure Development
Revenue, 0.0%, 9/1/31 $ 1,443,186
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 15
Schedule of Investments | 3/31/11 (continued)
-------------------------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
-------------------------------------------------------------------------------------------------------
Montana -- (continued)
$ 1,000,000(b)(d) NR/NR Two Rivers Authority, Inc., Project Revenue,
7.375%, 11/1/27 $ 152,890
-----------
$ 1,596,076
-------------------------------------------------------------------------------------------------------
Nevada -- 2.1%
1,500,000 A/A2 Henderson Nevada Health Care Facilities Revenue,
5.625%, 7/1/24 $ 1,512,900
1,600,000(b)(d) NR/NR Nevada State Department of Business & Industry,
7.25%, 1/1/23 16
1,000,000(b)(d) NR/NR Nevada State Department of Business & Industry,
7.375%, 1/1/30 10
1,320,000(b)(d) NR/NR Nevada State Department of Business & Industry,
7.375%, 1/1/40 13
5,000,000 A-/A3 Reno Nevada Hospital Revenue, 5.25%, 6/1/41 3,984,750
-----------
$ 5,497,689
-------------------------------------------------------------------------------------------------------
New Hampshire -- 0.4%
1,125,000 NR/NR New Hampshire Health & Educational Facilities
Authority Revenue, 5.875%, 7/1/34 $ 1,015,043
-------------------------------------------------------------------------------------------------------
New Jersey -- 12.8%
2,500,000 NR/NR Burlington County New Jersey Bridge Commission
Revenue, 5.625%, 1/1/38 $ 1,970,225
13,000,000 B/B3 New Jersey Economic Development Authority Revenue,
6.25%, 9/15/29 11,798,280
3,500,000(a) NR/Aa3 New Jersey State Turnpike Authority, RIB, 11.063%,
1/1/28 (144A) 4,154,360
15,375,000 AA+/Aa1 New Jersey Transportation Trust Fund Authority
Revenue, 0.0%, 12/15/27 5,801,603
1,000,000+ AAA/Aaa Tobacco Settlement Financing Corp., 6.25%, 6/1/43 1,118,890
3,250,000+ AAA/Aaa Tobacco Settlement Financing Corp., 6.75%, 6/1/39 3,671,265
5,000,000+ AAA/Aaa Tobacco Settlement Financing Corp., 7.0%, 6/1/41 5,673,800
-----------
$34,188,423
-------------------------------------------------------------------------------------------------------
New York -- 10.0%
1,730,000 NR/NR Dutchess County Industrial Development Agency,
7.5%, 3/1/29 $ 1,624,816
3,000,000 NR/NR Nassau County New York Industrial Development
Agency Revenue, 6.7%, 1/1/43 2,724,450
5,000,000 BB-/B1 New York City Industrial Development Agency,
5.25%, 12/1/32 3,857,450
3,950,000 BB-/B1 New York City Industrial Development Agency,
7.625%, 12/1/32 3,957,821
3,000,000 B-/Caa2 New York City Industrial Development Agency,
8.0%, 8/1/12 3,099,810
2,000,000 NR/Ba1 New York State Dormitory Authority Revenue,
6.125%, 12/1/29 1,837,860
The accompanying notes are an integral part of these financial statements.
16 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
--------------------------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
--------------------------------------------------------------------------------------------------------
New York -- (continued)
$ 5,000,000 AAA/Aaa New York State Environmental Facilities Corp.,
5.0%, 6/15/33 $ 4,992,950
2,000,000 BB/NR Seneca Nation Indians Capital Improvement Authority
Revenue, 5.25%, 12/1/16 (144A) 1,863,400
3,000,000 NR/NR Ulster County New York Industrial Development Agency,
6.0%, 9/15/27 2,416,380
500,000 NR/NR Ulster County New York Industrial Development Agency,
6.0%, 9/15/37 371,650
-----------
$26,746,587
--------------------------------------------------------------------------------------------------------
North Carolina -- 1.9%
5,010,000 NR/NR Charlotte North Carolina Special Facilities Revenue,
7.75%, 2/1/28 $ 4,995,671
--------------------------------------------------------------------------------------------------------
Ohio -- 3.0%
1,635,000 NR/NR Belmont County Health System Revenue,
5.7%, 1/1/13 $ 1,233,902
1,000,000 NR/NR Belmont County Health System Revenue,
5.8%, 1/1/18 728,570
5,000,000 BB-/Baa3 Buckeye Tobacco Settlement Financing Authority,
6.5%, 6/1/47 3,651,750
3,000,000 CCC+/B3 Cleveland Airport Special Revenue, 5.375%, 9/15/27 2,484,720
-----------
$ 8,098,942
--------------------------------------------------------------------------------------------------------
Oklahoma -- 3.0%
1,295,000 BB/NR Jackson County Memorial Hospital Authority Revenue,
7.3%, 8/1/15 $ 1,295,104
2,220,000 B-/Caa2 Tulsa Municipal Airport Trust Revenue, 6.25%, 6/1/20 2,102,740
1,500,000 B-/Caa2 Tulsa Municipal Airport Trust Revenue,
7.35%, 12/1/11 1,501,470
3,000,000(c) NR/Caa2 Tulsa Municipal Airport Trust Revenue, 7.75%, 6/1/35 3,078,030
-----------
$ 7,977,344
--------------------------------------------------------------------------------------------------------
Oregon -- 0.7%
2,000,000 A-/NR Oregon State Facilities Authority Revenue,
5.25%, 10/1/40 $ 1,834,920
--------------------------------------------------------------------------------------------------------
Pennsylvania -- 7.4%
3,600,000 CCC/NR Columbia County Hospital Authority Revenue,
5.85%, 6/1/24 $ 3,027,924
830,000 BBB/Ba1 Hazleton Health Services Authority Hospital Revenue,
6.125%, 7/1/16 830,747
1,430,000 BB/NR Pennsylvania Economic Development Financing
Authority Revenue, 5.125%, 6/1/18 1,255,740
2,330,000 BB/NR Pennsylvania Economic Development Financing
Authority Revenue, 5.35%, 6/1/11 2,319,678
5,000,000 B/Caa2 Pennsylvania Economic Development Financing
Authority Revenue, 6.0%, 6/1/31 4,167,150
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 17
Schedule of Investments | 3/31/11 (continued)
----------------------------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
----------------------------------------------------------------------------------------------------------
Pennsylvania -- (continued)
$ 5,000,000 BBB/Baa3 Philadelphia Hospitals & Higher Education Facilities
Authority Revenue, 5.0%, 7/1/34 $ 3,911,850
2,005,000 B-/NR Scranton-Lackawanna Health & Welfare Authority
Revenue, 6.1%, 7/1/11 1,994,213
2,245,000 B-/NR Scranton-Lackawanna Health & Welfare Authority
Revenue, 6.15%, 7/1/12 2,190,469
-----------
$19,697,771
----------------------------------------------------------------------------------------------------------
Rhode Island -- 3.1%
1,385,000(d) NR/NR Central Falls Rhode Island Detention Facilities
Revenue, 7.25%, 7/15/35 $ 1,105,798
8,285,000 BBB/Baa3 Tobacco Settlement Financing Corp., 6.25%, 6/1/42 7,165,779
-----------
$ 8,271,577
----------------------------------------------------------------------------------------------------------
South Carolina -- 5.4%
7,140,000+ BBB+/Baa1 South Carolina Jobs Economic Development Authority
Revenue, 6.375%, 8/1/34 $ 8,011,651
860,000+ BBB+/Baa1 South Carolina Jobs Economic Development Authority
Revenue, 6.375%, 8/1/34 969,039
4,400,000(f) BBB/WR Tobacco Settlement Revenue Management,
6.375%, 5/15/30 5,326,596
-----------
$14,307,286
----------------------------------------------------------------------------------------------------------
Tennessee -- 5.7%
5,000,000 BBB+/Baa1 Johnson City Health & Educational Facilities Board
Hospital Revenue, 6.5%, 7/1/38 $ 4,826,400
1,000,000+ NR/A2 Johnson City Health & Educational Facilities Board
Hospital Revenue, 7.5%, 7/1/33 1,096,780
7,000,000 NR/A1 Knox County Health Educational & Housing Facilities
Board Hospital Revenue, 6.5%, 4/15/31 7,190,050
2,400,000 BBB+/NR Sullivan County Health Educational and Housing
Facilities Board Hospital Revenue, 5.25%, 9/1/36 1,975,224
-----------
$15,088,454
----------------------------------------------------------------------------------------------------------
Texas -- 18.3%
4,095,000 CCC+/Caa2 Dallas-Fort Worth International Airport Facilities
Improvement Corp., 9.125%, 5/1/29 $ 4,098,686
2,827,399(b)(d) NR/NR Gulf Coast Industrial Development Authority,
7.0%, 12/1/36 159,041
10,000,000 CCC+/B3 Houston Texas Airport System Special Facilities
Revenue, 6.75%, 7/1/29 9,710,100
845,000 NR/NR IAH Public Facility Corp., Project Revenue Bonds,
Series 2006, 6.0%, 5/1/16 778,938
1,000,000 NR/NR IAH Public Facility Corp., Project Revenue Bonds,
Series 2006, 6.0%, 5/1/21 843,940
1,350,000 NR/NR IAH Public Facility Corp., Project Revenue Bonds,
Series 2006, 6.125%, 5/1/26 1,091,421
The accompanying notes are an integral part of these financial statements.
18 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
-------------------------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
-------------------------------------------------------------------------------------------------------
Texas -- (continued)
$ 2,750,000 AA+/Aa3 Lower Colorado River Authority, 5.0%, 5/15/31 $ 2,698,520
845,000 NR/NR Lubbock Health Facilities Development Corp.,
6.5%, 7/1/26 766,728
2,000,000 NR/NR Lubbock Health Facilities Development Corp.,
6.625%, 7/1/36 1,727,960
7,750,000(c) BBB-/Ba1 Matagorda County Navigation District Number 1
Revenue, 5.95%, 5/1/30 7,109,153
9,750,000 BBB+/A3 North Texas Tollway Authority Revenue,
5.75%, 1/1/33 9,307,058
1,711,000 NR/Aaa Panhandle Regional Housing Finance Corp. Multifamily
Housing Revenue, 6.6%, 7/20/31 1,763,938
1,000,000 BBB-/Baa2 Richardson Hospital Authority Revenue,
6.0%, 12/1/34 918,480
1,000,000 NR/NR Tarrant County Cultural Education Facilities Finance
Corp., 8.125%, 11/15/39 948,860
1,500,000 NR/NR Tarrant County Cultural Education Facilities Finance
Corp., 8.25%, 11/15/44 1,443,105
1,000,000(d) CC/NR Texas Midwest Public Facility Corp. Revenue,
9.0%, 10/1/30 698,580
4,700,000 NR/Baa3 Tomball Hospital Authority, 6.0%, 7/1/25 4,672,834
-----------
$48,737,342
-------------------------------------------------------------------------------------------------------
Utah -- 0.4%
1,600,000 NR/NR Spanish Fork Charter School Revenue, 5.7%,
11/15/36 (144A) $ 1,164,960
-------------------------------------------------------------------------------------------------------
Virginia -- 0.8%
2,000,000 BBB+/Baa1 Washington County Industrial Development Authority
Revenue, 7.75%, 7/1/38 $ 2,185,640
-------------------------------------------------------------------------------------------------------
Washington -- 3.9%
1,155,000 BBB/Baa3 Tobacco Settlement Authority Revenue, 6.5%, 6/1/26 $ 1,162,427
2,500,000 NR/Baa2 Washington State Health Care Facilities Authority,
5.5%, 12/1/39 2,059,700
2,000,000 BBB/Baa2 Washington State Health Care Facilities Authority,
6.125%, 8/15/37 1,905,780
2,000,000 BBB/Baa2 Washington State Health Care Facilities Authority,
6.25%, 8/15/42 1,912,660
5,000,000 NR/NR Washington State Housing Finance Commission
Nonprofit Revenue Bonds, 5.625%, 1/1/27 3,365,150
-----------
$10,405,717
-------------------------------------------------------------------------------------------------------
Wisconsin -- 1.3%
1,000,000 NR/NR Wisconsin State Health & Educational Facilities
Authority Revenue, 6.125%, 4/1/24 $ 944,160
1,000,000 NR/NR Wisconsin State Health & Educational Facilities
Authority Revenue, 6.25%, 4/1/34 892,450
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 19
Schedule of Investments | 3/31/11 (continued)
------------------------------------------------------------------------------------------------------
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
------------------------------------------------------------------------------------------------------
Wisconsin -- (continued)
$ 1,500,000 A+/A1 Wisconsin State Health & Educational Facilities
Authority Revenue, 6.625%, 2/15/39 $ 1,550,400
-------------
$ 3,387,010
------------------------------------------------------------------------------------------------------
TOTAL TAX-EXEMPT OBLIGATIONS
(Cost $413,391,678) $ 399,653,047
------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT OBLIGATION --
3.0% of Net Assets
13,000,000(c)(d) NR/NR Non-Profit Preferred Funding Trust I, Series E,
12.0%, 9/15/37 (144A) $ 7,982,390
------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED DEBT
OBLIGATION
(Cost $13,000,000) $ 7,982,390
------------------------------------------------------------------------------------------------------
Shares
------------------------------------------------------------------------------------------------------
COMMON STOCK -- 0.4% of Net Assets
110,442(g) Delta Airlines, Inc. $ 1,082,332
------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost $3,210,350) $ 1,082,332
------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 153.2%
(Cost $429,602,028)(h)(i) $ 408,717,769
------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 3.0% $ 8,158,596
------------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (56.2)% $(150,006,377)
------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS -- 100.0% $ 266,869,988
======================================================================================================
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At March
31, 2011, the value of these securities amounted to $30,753,644, or 11.5%
of total net assets applicable to common shareowners.
RIB Residual Interest Bonds.
NR Security not rated by S&P or Moody's.
WR Security rating withdrawn by either S&P or Moody's.
+ 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.
(a) The interest rate is subject to change periodically and inversely based
upon prevailing market rates. The rate shown is the coupon rate at March
31, 2011.
(b) Security is in default and is non-income producing.
The accompanying notes are an integral part of these financial statements.
20 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
(c) The interest rate is subject to change periodically. The interest rate
shown is the rate at March 31, 2011.
(d) Indicates a security that has been deemed illiquid. The aggregate cost of
illiquid securities is $30,239,907. The aggregate value is $14,249,672,
or 5.3% of the total net assets applied to common shareowners.
(e) Debt obligation initially issued at one coupon which converts to a higher
coupon at a specific date. The rate shown is the coupon rate at March 31,
2011.
(f) Escrow to maturity.
(g) Non-income producing.
(h) The concentration of investments by type of obligation/market sector is
as follows:
Insured
AGM 6.7%
AMBAC 0.7
BHAC-CR MBIA 1.4
Revenue Bonds:
Health Revenue 33.5
Tobacco Revenue 11.1
Development Revenue 10.1
Airport Revenue 9.0
Other Revenue 8.6
Pollution Control Revenue 6.0
Housing Revenue 2.8
Transportation Revenue 2.3
Facilities Revenue 2.2
Education Revenue 2.1
Power Revenue 1.8
Water Revenue 1.2
Gaming Authority Revenue 0.5
Utilities Revenue* 0.0
-----
100.0%
=====
*Amount is less than 0.1%
(i) At March 31, 2011 the net unrealized loss on investments based on cost
for federal income tax purposes of $424,443,307 was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $ 26,679,285
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (42,404,823)
------------
Net unrealized loss $(15,725,538)
============
For financial reporting purposes net unrealized loss on investments was
$20,884,259 and cost of investments aggregated $429,602,028.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 21
Schedule of Investments | 3/31/11 (continued)
Purchases and sales of securities (excluding temporary cash investments) for
the year ended March 31, 2011 aggregated $51,780,426 and $41,906,549,
respectively.
Various inputs are used in determining the value of the Trust's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
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 risk,
etc.)
Level 3 -- significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments)
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 (See Note 1A) are categorized as level 3.
The following is a summary of the inputs used as of March 31, 2011, in valuing
the Trust's Investments:
-------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------------------
Tax exempt obligations $ -- $399,653,047 $-- $399,653,047
Municipal collateralized debt obligation -- 7,982,390 -- 7,982,390
Common stock 1,082,332 -- -- 1,082,332
-------------------------------------------------------------------------------------------------------
Total $1,082,332 $407,635,437 $-- $408,717,769
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
Statement of Assets and Liabilities | 3/31/11
ASSETS:
Investments in securities, at value (cost $429,602,028) $408,717,769
Receivables --
Investment securities sold 10,000
Interest 8,981,959
Reinvestment of distributions 145,393
Prepaid expenses 47,997
----------------------------------------------------------------------------------
Total assets $417,903,118
----------------------------------------------------------------------------------
LIABILITIES:
Due to custodian $ 478,876
Due to affiliates 222,082
Administration fee payable 175,713
Accrued expenses 150,082
----------------------------------------------------------------------------------
Total liabilities $ 1,026,753
----------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 6,000 shares,
including dividends payable of $6,377 $150,006,377
----------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $328,484,043
Undistributed net investment income 14,720,868
Accumulated net realized loss on investments (55,450,664)
Net unrealized loss on investments (20,884,259)
----------------------------------------------------------------------------------
Net assets applicable to common shareowners $266,869,988
==================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value, (unlimited number of shares authorized)
Based on $266,869,988/23,133,791 common shares $ 11.54
==================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 23
Statement of Operations
For the Year Ended 3/31/11
INVESTMENT INCOME:
Interest $ 30,993,899
---------------------------------------------------------------------------------------------
EXPENSES:
Management fees $2,607,317
Administrative fees 420,698
Transfer agent fees and expenses 12,400
Shareowner communication expenses 33,650
Auction agent fees 390,429
Custodian fees 15,005
Registration fees 23,865
Professional fees 219,100
Printing expense 48,149
Trustees' fees 13,582
Pricing fees 21,395
Miscellaneous 37,077
---------------------------------------------------------------------------------------------
Total expenses $ 3,842,667
---------------------------------------------------------------------------------------------
Net investment income $ 27,151,232
---------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain from investments $ 551,019
Class actions 81,281 $ 632,300
---------------------------------------------------------------------------------------------
Change in net unrealized loss from investments (19,037,834)
---------------------------------------------------------------------------------------------
Net loss on investments $(18,405,534)
---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM NET
INVESTMENT INCOME: $ (725,370)
---------------------------------------------------------------------------------------------
Net increase in net assets applicable to common shareowners
resulting from operations $ 8,020,328
=============================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
Statement of Changes in Net Assets
For the Years Ended 3/31/11 and 3/31/10, respectively
---------------------------------------------------------------------------------------------
Year Ended Year Ended
3/31/11 3/31/10
---------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 27,151,232 $ 27,143,262
Net realized gain (loss) on investments and class actions 632,300 (7,488,426)
Change in net unrealized loss on investments (19,037,834) 72,295,827
Distributions to preferred shareowners from net investment
income (725,370) (847,268)
---------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners resulting from operations $ 8,020,328 $ 91,103,395
---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income
($1.06 and $0.96 per share, respectively) $(24,440,922) $(22,013,228)
---------------------------------------------------------------------------------------------
Total distributions to common shareowners $(24,440,922) $(22,013,228)
---------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 1,739,573 $ 1,313,970
---------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners resulting from Trust share transactions $ 1,739,573 $ 1,313,970
---------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners $(14,681,021) $ 70,404,137
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of year 281,551,009 211,146,872
---------------------------------------------------------------------------------------------
End of year $266,869,988 $281,551,009
---------------------------------------------------------------------------------------------
Undistributed net investment income $ 14,720,868 $ 12,757,234
=============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 25
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
3/31/11 3/31/10 3/31/09 3/31/08 3/31/07
--------------------------------------------------------------------------------------------------------------------------
Per Common Share Operating Performance
Net asset value, beginning of period $12.24 $ 9.23 $13.54 $15.91 $15.04
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 1.18 $ 1.18 $ 1.22 $ 1.29 $ 1.16
Net realized and unrealized gain (loss) on investments and interest
rate swaps (0.79) 2.83 (4.43) (2.51) 0.80
Distributions to preferred shareowners from:
Net investment income (0.03) (0.04) (0.20) (0.26) (0.23)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.36 $ 3.97 $(3.41) $(1.48) $ 1.73
Distributions to common shareowners from:
Net investment income (1.06) (0.96) (0.90) (0.89) (0.86)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $(0.70) $ 3.01 $(4.31) $(2.37) $ 0.87
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period(b) $11.54 $12.24 $ 9.23 $13.54 $15.91
--------------------------------------------------------------------------------------------------------------------------
Market value, end of period(b) $12.64 $13.10 $ 9.04 $13.74 $15.61
==========================================================================================================================
Total return at market value(c) 4.97% 57.76% (28.40)% (6.51)% 10.21%
Ratios to average net assets of common shareowners
Net expenses(d) 1.35% 1.41% 1.38% 1.13% 1.16%
Net investment income before preferred share dividends 9.54% 10.66% 10.70% 8.27% 7.47%
Preferred share dividends 0.25% 0.33% 1.76% 1.64% 1.47%
Net investment income available to common shareowners 9.29% 10.33% 8.94% 6.63% 6.00%
Portfolio turnover 10% 8% 24% 12% 17%
The accompanying notes are an integral part of these financial statements.
26 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
--------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
3/31/11 3/31/10 3/31/09 3/31/08 3/31/07
--------------------------------------------------------------------------------------------------------------------------------
Net assets of common shareowners, end of period (in thousands) $266,870 $281,551 $211,147 $308,500 $361,888
Preferred shares outstanding (in thousands) $150,000 $150,000 $150,000 $150,000 $150,000
Asset coverage per preferred share, end of period $ 69,479 $ 71,926 $ 60,192 $ 76,427 $ 85,328
Average market value per preferred share(e) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per preferred share $ 25,001 $ 25,001 $ 25,001 $ 25,010 $ 25,013
Ratios to average net assets of common shareowners before waivers and
reimbursement of expenses
Net expenses(d) 1.35% 1.41% 1.38% 1.13% 1.18%
Net investment income before preferred share dividends 9.54% 10.66% 10.70% 8.27% 7.45%
Preferred share dividends 0.25% 0.33% 1.76% 1.64% 1.47%
Net investment income available to common shareowners 9.29% 10.33% 8.94% 6.63% 5.98%
================================================================================================================================
(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 dividend payments to preferred
shareowners.
(e) Market value is redemption value without an active market.
The information above represents the audited operating performance data for a
common share 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 | Annual Report | 3/31/11 27
Notes to Financial Statements | 3/31/11
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 seek capital
appreciation to the extent that it is consistent with its primary investment
objective.
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 from time to time.
Please refer to those documents when considering the Trust's principal risks.
The Trust may invest in both investment 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.
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:
28 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
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. 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 using fair
value methods pursuant to procedures adopted by 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. Thus, the valuation of the Trust's securities may differ from
exchange prices.
At March 31, 2011, there were no securities that were valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services). 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. Short-term
fixed income securities with remaining maturities of sixty days or less
generally are valued at amortized cost. Money market mutual funds are valued
at net asset value.
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-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.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 29
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. Tax
years for the prior three fiscal years remain subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Trust's distributions may be
shown in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain (loss) on investment
transactions, or as from paid-in capital, depending on the type of book/tax
differences that may exist.
At March 31, 2011, the Trust reclassified $21,306 to decrease undistributed
net investment income and to decrease net realized loss on investments to
reflect permanent book/tax differences. The reclassification has no impact
on the net assets of the Trust and presents the Trust's capital accounts on
a tax basis.
At March 31, 2011, the Trust had a net capital loss carryforward of
$53,183,034, of which the following amounts will expire between 2014 and
2019 if not utilized: $14,156,085 in 2014, $311,368 in 2016, $17,813,537 in
2017, $18,242,633 in 2018 and $2,659,411 in 2019.
The Trust has elected to defer approximately $2,141,689 of capital losses
recognized between November 1, 2010 and March 31, 2011 to its fiscal year
ending March 31, 2012.
The tax character of distributions paid to common and preferred shareowners
during the years ended March 31, 2011 and March 31, 2010 was as follows:
--------------------------------------------------------------------------------
2011 2010
--------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $24,632,869 $22,779,781
Ordinary income 533,423 80,715
--------------------------------------------------------------------------------
Total $25,166,292 $22,860,496
================================================================================
30 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
The following shows the components of distributable earnings (losses) on a
federal income tax basis at March 31, 2011:
--------------------------------------------------------------------------------
2010
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 9,407,467
Undistributed ordinary income 35,116
Capital loss carryforward (53,183,034)
Post-October-loss deferred (2,141,689)
Dividends payable (6,377)
Unrealized depreciation (15,725,538)
--------------------------------------------------------------------------------
Total $(61,614,055)
================================================================================
The difference between book-basis and tax-basis unrealized appreciation is
primarily attributable to the difference between book and tax amortization
methods for premiums and discounts on fixed income securities, book/tax
difference in accrual of income on securities in default, and other
temporary differences.
C. Class Actions
During the year ended March 31, 2011 the Trust recognized gains of $81,281
in settlement of class action lawsuit from several different companies, as
reflected on the Statement of Operations.
D. Automatic Dividend Reinvestment Plan
All common shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional common shares
of the Trust in lieu of cash. Shareowners may elect not to participate in
the Plan. Shareowners not participating in the Plan receive all dividends
and capital gain distributions in cash. Participation in the Plan is
completely voluntary and may be terminated or resumed at any time without
penalty by notifying American Stock Transfer & Trust Company, the agent for
shareowners in administering the Plan (the Plan Agent), in writing prior to
any dividend record date; otherwise such termination or resumption will be
effective with respect to any subsequently declared dividend or other
distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate in
the Plan on the shareowner's behalf. If the firm or nominee does not offer
the Plan, dividends will be paid in cash to the shareowner of record. A firm
or nominee may reinvest a shareowner's cash dividend in common shares of the
Trust on terms that differ from the terms of the Plan.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 31
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.
2. Management Agreement
Pioneer Investment Management, Inc. (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 year ended March 31, 2011, the net management
fee was 0.60% of the Trust's average daily managed assets, which was equivalent
to 0.92% of the Trust's average daily net assets attributable to the common
shareowners.
In addition, under PIM's management and administration agreements, certain
other services and costs are paid by PIM and reimbursed by the Trust. At March
31, 2011, $222,082 was payable to PIM related to management costs,
32 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
administrative costs and certain other reimbursements and is included in "Due
to affiliates" on the Statement of Assets and Liabilities.
Effective September 1, 2010 PIM has retained State Street Bank and Trust
Company (State Street) to provide certain administrative and accounting
services to the Trust on its behalf. For such services, PIM pays State Street a
monthly fee at an annual rate of 0.07% of the Trust's average daily managed
assets up to $500 million and 0.03% for average daily managed assets in excess
of $500 million, subject to a minimum monthly fee of $10,000. Previously, PIM
had retained Princeton Administrators, LLC (Princeton) to provide such
services. PIM paid Princeton a monthly fee at an annual rate of 0.07% of the
Trust's average daily managed assets up to $500 million and 0.03% for average
daily managed assets in excess of $500 million, subject to a minimum monthly
fee of $10,000. Neither State Street nor Princeton received compensation
directly from the Trust for providing such services.
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. 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
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 33
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 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 outstanding at March 31, 2011.
5. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the years ended March
31, 2011 and March 31, 2010 were as follows:
--------------------------------------------------------------------------------
3/31/11 3/31/10
--------------------------------------------------------------------------------
Shares outstanding at beginning of year 22,995,047 22,879,496
Reinvestment of distributions 138,744 115,551
--------------------------------------------------------------------------------
Shares outstanding at end of year 23,133,791 22,995,047
================================================================================
The Trust may classify or reclassify any unissued shares of beneficial interest
into one or more series of preferred shares of beneficial interest. As of March
31, 2011, 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 0.398% to 0.665% during the year ended March
31, 2011.
34 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
The Trust may not declare dividends or make other distributions on its common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, the Trust does not comply with the asset coverage
ratios described in the prospectus for the APS.
The APS are redeemable at the option of the Trust, in whole or in part, on any
dividend payment date at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared. The APS are also subject to mandatory
redemption at $25,000 per share plus any accumulated or unpaid dividends,
whether or not declared, if certain requirements relating to the composition of
the assets and liabilities of the Trust as set forth in the Statement of
Preferences are not satisfied.
The holders of APS have voting rights equal to the holders of the Trust's
common shares (one vote per share) and will vote together with holders of the
common shares as a single class. Holders of APS are also entitled to elect two
of the Trust's Trustees. In addition, the Investment Company Act of 1940, as
amended, requires that along with approval by shareowners that might otherwise
be required, the approval of the holders of a majority of any outstanding
preferred shares, voting separately as a class, would be required to (a) adopt
any plan of reorganization that would adversely affect the preferred shares and
(b) take any action requiring a vote of security holders, including, among
other things, changes in the Trust's subclassification as a closed-end
management investment company or changes in its fundamental investment
restrictions.
6. Subsequent Events
The Board of Trustees of the Trust declared on April 15, 2011 a dividend from
undistributed net investment income of $0.090 per common share payable April
29, 2011, to common shareowners of record.
Subsequent to March 31, 2011, dividends declared and paid on preferred shares
totaled $62,520 in aggregate for the two outstanding preferred share series
through May 10, 2011.
In preparing these financial statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure and has
determined that other than disclosed above, there were no subsequent events
requiring recognition or disclosure in the financial statements.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 35
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of
Pioneer Municipal High Income Advantage Trust:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Municipal High Income Advantage Trust (the "Trust"), including the schedule of
investments, as of March 31, 2011, and the related statement of operations for
the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of
the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Trust's internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Trust's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of March 31, 2011, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Municipal High Income Advantage Trust at March 31, 2011, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended, in conformity with U.S.
generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
May 24, 2011
36 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
ADDITIONAL INFORMATION (unaudited)
During the period, there have been no material changes in the Trust's
investment objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust which has not been
approved by the shareowners. There have been no changes in the principal risk
factors associated with investment in the Trust. Day-to-day management of the
Trust's portfolio is the responsibility of David Eurkus. Mr. Eurkus is
supported by the fixed income team. Members of this team manage other Pioneer
funds investing primarily in fixed income securities. The portfolio manager and
the team also may draw upon the research and investment management expertise of
Pioneer's affiliate, Pioneer Investment Management Limited. Mr. Eurkus joined
Pioneer as a senior vice president in January 2000 and has been an investment
professional since 1969.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its common
shares in the open market.
IMPORTANT TAX INFORMATION (unaudited)
The following summarizes the taxable per share distributions paid by Pioneer
Municipal High Income Advantage Trust during the taxable year ended March 31,
2011:
--------------------------------------------------------------------------------
Payable Ordinary
Date Income
--------------------------------------------------------------------------------
Common Shareowners 12/20/10 $0.022456
Preferred Shareowners
Series A 12/28/10 $2.50633
Series B 12/28/10 $2.50633
All of the other net investment income distributions paid by the Trust qualify
as tax-exempt interest dividends for Federal income tax purposes.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 37
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Municipal High Income Advantage Trust (the Trust) pursuant to an
investment advisory agreement between PIM and the Trust. In order for PIM to
remain the investment adviser of the Trust, the Trustees of the Trust must
determine annually whether to renew the investment advisory agreement for the
Trust.
The contract review process began in March 2010 as the Trustees of the Trust
agreed on, among other things, an overall approach and timeline for the
process. In July 2010, the Trustees approved the format of the contract review
materials and submitted their formal request to PIM to furnish information
necessary to evaluate the terms of the investment advisory agreement. The
contract review materials were provided to the Trustees in July 2010 and
September 2010. After reviewing and discussing the materials, the Trustees
submitted a request for additional information to PIM, and materials were
provided in response to this request. Meetings of the Independent Trustees of
the Trust were held in July, September, October, and November, 2010 to review
and discuss the contract review materials. In addition, the Trustees took into
account the information related to the Trust provided to the Trustees at each
regularly scheduled meeting.
At a meeting held on November 16, 2010, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Trust,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Trust, taking into account the investment objective
and strategy of the Trust. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for
the Trust, its research process and its process for trade execution. The
Trustees considered the resources of PIM and the personnel of PIM who provide
investment management services to the Trust. The Trustees considered the
non-investment resources and personnel of PIM involved in PIM's services to the
Trust, including PIM's compliance and legal resources and personnel. In
addition, the Trustees considered the arrangements put in place to retain key
38 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
investment and other personnel. The Trustees also considered the substantial
attention and high priority given by PIM's senior management to the Pioneer
fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Trust's service providers and provides the Trust with personnel (including
Trust officers) and other resources that are necessary for the Trust's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Trust's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Trust were
satisfactory and consistent with the terms of the investment advisory
agreement.
Performance of the Trust
The Trustees considered the performance results of the Trust over various time
periods. They reviewed information comparing the Trust's performance with the
performance of its peer group of funds as classified by Morningstar, Inc.
(Morningstar), an independent provider of investment company data, and with the
performance of the Trust's benchmark index. The Trustees considered that the
Trust's annualized total return was in the first quintile of its Morningstar
category for the one year period ended June 30, 2010, and in the fourth
quintile of its Morningstar category for the three and five year periods ended
June 30, 2010. (In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Trust's shareowners. Thus,
highest relative performance would be first quintile and lowest relative
expenses would also be first quintile.) The Trustees noted that the yield of
the Trust compared favorably to the yield of the Trust's benchmarks as of June
30, 2010. The Trustees reviewed data provided by PIM showing how leverage had
benefited the Trust's common shareholders. The Trustees concluded that the
investment performance of the Trust was satisfactory.
Management Fee and Expenses
The Trustees considered information on the fees and expenses of the Trust in
comparison to the management fees and the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party.
The Trustees considered that the Trust's management fee rate based on common
shares assets for the twelve months ended June 30, 2010 was in the fifth
quintile relative to the management fees paid by other funds in its Strategic
Insight peer group for the comparable period. The Trustees considered the
effect of leverage on the Trust's management fee relative to its peers by
reviewing the management fee ratios of the Trust and its peers based on managed
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 39
assets rather than common shares assets. They noted that, on that basis, the
Trust's management fee for the twelve months ended June 30, 2010 was in the
third quintile relative to the Trust's peer group for the comparable period.
The Trustees also considered that the Trust's expense ratio based on common
shares assets for the twelve months ended June 30, 2010 was in the fourth
quintile relative to its Strategic Insight peer group for the comparable
period. The Trustees noted the impact of the Trust's higher relative management
fee on its expense ratio and considered that the Trust's expense ratio was
slightly more than one basis point higher than the median expense ratio of the
Trust's peer group.
The Trustees also reviewed management fees charged by PIM to its institutional
and other clients. In evaluating the fees associated with PIM's client
accounts, the Trustees took into account the respective demands, resources and
complexity associated with the Trust and client accounts. The Trustees noted
that in some instances the fee rates for those clients were lower than the
management fee for the Trust and considered that, under the investment advisory
agreement with the Trust, PIM performs additional services for the Trust that
it does not provide to those other clients or services that are broader in
scope, including oversight of the Trust's other service providers and
activities related to compliance and the extensive regulatory and tax regimes
to which the Trust is subject. The Trustees concluded that the management fee
payable by the Trust to PIM was reasonable in relation to the nature and
quality of the services provided by PIM.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Trust,
including the methodology used by PIM in allocating certain of its costs to the
management of the Trust. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Trust. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Trust in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Trust
was not unreasonable.
Economies of Scale
The Trustees considered the extent to which PIM may realize economies of scale
or other efficiencies in managing and supporting the Trust. Since the Trust is
a closed-end fund that has not raised additional capital, the Trustees
concluded that economies of scale were not a relevant consideration in the
renewal of the investment advisory agreement.
40 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with
the Trust. The Trustees considered the character and amount of fees paid by the
Trust, other than under the investment advisory agreement, for services
provided by PIM and its affiliates. The Trustees further considered the
revenues and profitability of PIM's businesses other than the fund business.
The Trustees considered the intangible benefits to PIM by virtue of its
relationship with the Trust and the other Pioneer funds. The Trustees concluded
that the receipt of these benefits was reasonable in the context of the overall
relationship between PIM and the Trust.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Trust, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Trust.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 41
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Legal Counsel
Bingham McCutchen LLP
Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Shareowner Services and Sub-Transfer Agent
American Stock Transfer & Trust Company
Preferred Share Auction/Transfer Agent and Registrar
Deutsche Bank Trust Company Americas
Sub-Administrator
State Street Bank and Company
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Trust voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.pioneerinvestments.com. This information is also available
on the Securities and Exchange Commission's web site at http://www.sec.gov.
The Statement of Additional Information of the Trust includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
42 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
Trustees and Officers
The Trust's Trustees and officers are listed below, together with their
principal occupations. Trustees who are interested persons of the Trust within
the meaning of the 1940 Act are referred to as Interested Trustees. Trustees
who are not interested persons of the Trust are referred to as Independent
Trustees. Each of the Trustees, except Mr. West, serves as a trustee of each of
the 56 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). Mr. West serves as a trustee of 44
U.S. registered investment portfolios for which Pioneer serves as investment
adviser. The address for all Trustees and all officers of the Trust is 60 State
Street, Boston, Massachusetts 02109.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 43
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Position Held Term of Office and Other Directorships
Name and Age With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (84)* Chairman of the Board, Class I Trustee since Non-Executive Chairman and a None
Trustee and President 2003. Term expires in director of Pioneer
2013. Elected by Pre- Investment Management USA
ferred Shares only. Inc. ("PIM-USA"); Chairman
and a director of Pioneer;
Chairman and Director of
Pioneer Institutional Asset
Management, Inc. (since
2006); Director of Pioneer
Alternative Investment
Management Limited (Dublin);
President and a director
of Pioneer Alternative
Investment Management
(Bermuda) Limited and
affiliated funds; Deputy
Chairman and a director of
Pioneer Global Asset
Management S.p.A. ("PGAM")
(until April 2010); Director
of PIOGLOBAL Real Estate
Investment Fund (Russia)
(until June 2006); Director
of Nano-C, Inc. (since
2003); Director of Cole
Management Inc. (since
2004); Director of Fiduciary
Counseling, Inc.; President
and Director of Pioneer
Funds Distributor, Inc.
("PFD") (until May 2006);
President of all of the
Pioneer Funds; and Of
Counsel, Wilmer Cutler
Pickering Hale and Dorr LLP
------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (52)* Trustee and Executive Class II Trustee since Director, CEO and President None
Vice President 2007. Term expires in of PIM-USA (since February
2011. 2007); Director and
President of Pioneer and
Pioneer Institutional Asset
Management, Inc. (since
February 2007); Executive
Vice President of all of
the Pioneer Funds (since
March 2007); Director of
PGAM (2007 - 2010); Head of
New Europe Division, PGAM
(2000 - 2005); and Head of
New Markets Division, PGAM
(2005 - 2007)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers
or directors of the Trust's investment adviser and certain of its affiliates.
44 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Position Held Term of Office and Other Directorships
Name and Age With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (67) Trustee Class I Trustee since Managing Partner, Federal Director of Enterprise
2005. Term expires in City Capital Advisors Com- munity
2013. (corporate advisory services Investment, Inc.
company) (1997 - 2004 and (privately held
2008 - present); Interim affordable housing
Chief Executive Officer, finance company) (1985
Oxford Analytica, Inc. - 2010); Director of
(privately held research and Oxford Analytica, Inc.
consulting company) (2010); (2008 - present);
Executive Vice President and Director of The Swiss
Chief Financial Officer, Helvetia Fund, Inc.
I-trax, Inc. (publicly (closed-end fund)
traded health care services (2010 - present); and
company) (2004 - 2007); and Director of New York
Executive Vice President and Mortgage Trust
Chief Financial Officer, (publicly traded
Pedestal Inc. mortgage REIT) (2004 -
(internet-based mortgage 2009)
trading company) (2000 -
2002)
------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (63) Trustee Class III Trustee since Chairman, Bush Director of Marriott
2003. Term expires in International, LLC International, Inc.
2012. (international financial (2008 - present);
advi- sory firm) (1991 - Director of Discover
present); Senior Managing Financial Services
Director, Brock Capital (credit card issuer
Group, LLC (strategic and electronic payment
business advisors) (2010 - services) (2007 -
present); Managing Director, present); Former
Federal Housing Finance Director of Briggs &
Board (oversight of Federal Stratton Co. (engine
Home Loan Bank system) (1989 manufacturer) (2004 -
- 1991); Vice President and 2009); Former Director
Head of International of UAL Corporation
Finance, Federal National (airline holding
Mortgage Association (1988 - company) (2006 -
1989); U.S. Alternate 2010); Director of
Executive Director, ManTech International
International Monetary Fund Corporation (national
(1984 - 1988); Executive security,
Assistant to Deputy
Secretary of the U.S.
Treasury, U.S. Treasury
Department (1982 - 1984);
and Vice President and Team
Leader in Corporate Banking,
Bankers Trust Co. (1976 -
1982)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 45
Independent Trustees (continued)
------------------------------------------------------------------------------------------------------------------------------------
Position Held Term of Office and Other Directorships
Name and Age With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (continued) defense and
intelligence
technology firm) (2006
- present); Member,
Board of Governors,
Investment Company
Institute (2007 -
present); Member,
Board of Governors,
Independent Directors
Council (2007 -
present); Former
Director of Brady
Corporation (2000 -
2007); Former Director
of Mortgage Guaranty
Insurance Corporation
(1991 - 2006); Former
Director of Millennium
Chemicals, Inc.
(commodity chemicals)
(2002 - 2005); Former
Director, R.J.
Reynolds Tobacco
Holdings, Inc.
(tobacco) (1999 -
2005); and Former
Director of Texaco,
Inc. (1997 - 2001)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (66) Trustee Class II Trustee since William Joseph Maier Trustee, Mellon
2008. Term expires in Professor of Political Institutional Funds
2011. Economy, Harvard University Investment Trust and
(1972 - present) Mellon Institutional
Funds Master Portfolio
(oversaw 17 portfolios
in fund complex) (1989
- 2008)
------------------------------------------------------------------------------------------------------------------------------------
46 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
------------------------------------------------------------------------------------------------------------------------------------
Position Held Term of Office and Other Directorships
Name and Age With the Trust Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (63) Trustee Class II Trustee since Founding Director, Vice None
2003. Term expires in President and Corporate
2011. Secretary, The Winthrop
Group, Inc. (consulting
firm) (1982 - present);
Desautels Faculty of
Management, McGill
University (1999 - present);
and Manager of Research
Operations and
Organizational Learning,
Xerox PARC, Xerox's Advance
Research Center (1990 -
1994)
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (60) Trustee Class III Trustee since Chairman and Chief Executive Director, Broadridge
2006. Term expires in Officer, Quadriserv, Inc. Financial Solutions,
2012. (technology products for Inc. (investor
securities lending industry) communications and
(2008 - present); private securities processing
investor (2004 - 2008); and provider for financial
Senior Executive Vice services industry)
President, The Bank of New (2009 - present); and
York (financial and Director, Quadriserv,
securities services) (1986 - Inc. (2005 - present)
2004)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (62) Trustee Class III Trustee since President and Chief Director of New
2003. Term expires in Executive Officer, Newbury, America High Income
2012. Elected by Pre- Piret & Company, Inc. Fund, Inc. (closed-end
ferred Shares only. (investment banking firm) investment company)
(1981 - present) (2004 - present); and
member, Board of
Governors, Investment
Company Institute
(2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (82) Trustee Class I Trustee since Senior Counsel, Sullivan & Director, The Swiss
2003. Term expires in Cromwell LLP (law firm) Helvetia Fund, Inc.
2013. (1998 - present); and (closed-end investment
Partner, Sullivan & Cromwell company); and
LLP (prior to 1998) Director, AMVESCAP,
PLC (investment
manager) (1997 - 2005)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 47
Trust Officers
------------------------------------------------------------------------------------------------------------------------------------
Position Held Term of Office and Other Directorships
Name and Age With the Trust Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (46) Secretary Since 2010. Serves at Vice President and Associate None
the discretion of the General Counsel of Pioneer
Board. since January 2008 and
Secretary of all of the
Pioneer Funds since June
2010; Assistant Secretary of
all of the Pioneer Funds
from September 2003 to May
2010; and Vice President and
Senior Counsel of Pioneer
from July 2002 to December
2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (50) Assistant Secretary Since 2010. Serves at Fund Governance Director of None
the discretion of the Pioneer since December 2006
Board. and Assistant Secretary of
all the Pioneer Funds since
June 2010; Manager -- Fund
Governance of Pioneer from
December 2003 to November
2006; and Senior Paralegal
of Pioneer from January 2000
to November 2003
-----------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (48) Assistant Secretary Since 2010. Serves at Counsel of Pioneer since None
the discretion of the June 2007 and Assistant
Board. Secretary of all the Pioneer
Funds since June 2010; and
Vice President and Counsel
at State Street Bank from
October 2004 to June 2007
-----------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (51) Treasurer Since 2008. Serves at Vice President -- Fund None
the discretion of the Accounting, Administration
Board. and Controller- ship
Services of Pioneer;
Treasurer of all of the
Pioneer Funds since March
2008; Deputy Treasurer of
Pioneer from March 2004 to
February 2008; Assistant
Treasurer of all of the
Pioneer Funds from March
2004 to February 2008; and
Treasurer and Senior Vice
President, CDC IXIS Asset
Management Services, from
2002 to 2003
-----------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (46) Assistant Treasurer Since 2003. Serves at Assistant Vice President -- None
the discretion of the Fund Accounting,
Board. Administration and
Controllership Services of
Pioneer; and Assistant
Treasurer of all of the
Pioneer Funds
-----------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (53) Assistant Treasurer Since 2003. Serves at Fund Accounting Manager -- None
the discretion of the Fund Accounting,
Board. Administration and
Controllership Services of
Pioneer; and Assistant
Treasurer of all of the
Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
48 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
------------------------------------------------------------------------------------------------------------------------------------
Position Held Term of Office and Other Directorships
Name and Age With the Trust Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (31) Assistant Treasurer Since 2009. Serves at Fund Administration Manager None
the discretion of the -- Fund Accounting,
Board. Administration and
Controllership Services
since November 2008;
Assistant Treasurer of all
of the Pioneer Funds since
January 2009; and Client
Service Manager --
Institutional Investor
Services at State Street
Bank from March 2003 to
March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (58) Chief Compliance Since 2010. Serves at Chief Compliance Officer of None
Officer the discretion of the Pioneer and of all the
Board. Pioneer Funds since March
2010; Director of Adviser
and Portfolio Compliance at
Pioneer since October 2005;
and Senior Compliance
Officer for Columbia
Management Advisers, Inc.
from October 2003 to October
------------------------------------------------------------------------------------------------------------------------------------
The outstanding capital stock of PFD, Pioneer and Pioneer Investment Management
Shareholder Services, Inc. ("PIMSS") is indirectly wholly owned by UniCredit
S.p.A. ("UniCredit"), one of the largest banking groups in Italy. Pioneer, the
Trust's investment adviser, provides investment management and financial
services to mutual funds, institutional and other clients.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 49
This page for your notes.
50 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
This page for your notes.
Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11 51
This page for your notes.
52 Pioneer Municipal High Income Advantage Trust | Annual Report | 3/31/11
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 1-800-710-0935
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 www.pioneerinvestments.com.
The Trust files a complete statement 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 http://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.
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 10(a), 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;
(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.
Audit Fees
Fees for audit services provided to the Trust, including
fees associated with the filings to update its Form N-2
and issuance of comfort letters, totaled approximately
$42,086 in 2011 and $41,600 in 2010.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
Audit related fees for the Trust's audit related
services totaled approximately $9,652 and $9,652 in
2011 and 2010, respectively.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Tax Fees
Fees for tax compliance services, primarily for tax
returns, totaled approximately $8,290 and $8,290 for
2011 and 2010, respectively.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
Other Fees
Audit related fees for the Trust's audit related
services totaled approximately $9,652 and $9,652 in
2011 and 2010, respectively.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered into
on or after May 6, 2003, the effective date of the new
SEC pre-approval rules, the Trust's audit committee is
required to pre-approve services to affiliates defined by
SEC rules to the extent that the services are determined
to have a direct impact on the operations or financial
reporting of the Trust. For the years ended March 31,
2011 and 2010, there were no services provided to an
affiliate that required the Trust's audit committee pre-
approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's 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 registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Trust and affiliates,
as previously defined, totaled approximately $17,942 in
2011 and $17,942 in 2010.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Trust's audit committee of the Board of Trustees has
considered whether the provision of non-audit services
that were rendered to the Affiliates (as defined) that were
not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining
the principal accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
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)).
(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 I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Proxy Voting Policies and Procedures of
Pioneer Investment Management, Inc.
VERSION DATED July, 2004
Overview
Pioneer Investment Management, Inc. ("Pioneer") is a fiduciary that owes
each of its client's duties of care and loyalty with respect to all
services undertaken on the client's behalf, including proxy voting. When
Pioneer has been delegated proxy-voting authority for a client, the duty of
care requires Pioneer to monitor corporate events and to vote the proxies.
To satisfy its duty of loyalty, Pioneer must place its client's interests
ahead of its own and must cast proxy votes in a manner consistent with the
best interest of its clients. Pioneer will vote all proxies presented in a
timely manner.
The Proxy Voting Policies and Procedures are designed to complement
Pioneer's investment policies and procedures regarding its general
responsibility to monitor the performance and/or corporate events of
companies that are issuers of securities held in accounts managed by
Pioneer. Pioneer's Proxy Voting Policies summarize Pioneer's position on a
number of issues solicited by companies held by Pioneer's clients. The
policies are guidelines that provide a general indication on how Pioneer
would vote but do not include all potential voting scenarios.
Pioneer's Proxy Voting Procedures detail monitoring of voting, exception
votes, and review of conflicts of interest and ensure that case-by-case
votes are handled within the context of the overall guidelines (i.e. best
interest of client). The overriding goal is that all proxies for US and
non-US companies that are received promptly will be voted in accordance
with Pioneer's policies or specific client instructions. All shares in a
company held by Pioneer-managed accounts will be voted alike, unless a
client has given us specific voting instructions on an issue or has not
delegated authority to us or the Proxy Voting Oversight Group determines
that the circumstances justify a different approach.
Pioneer does not delegate the authority to vote proxies relating to its
clients to any of its affiliates, which include other subsidiaries of
UniCredito.
Any questions about these policies and procedures should be directed to the
Proxy Coordinator.
1
Proxy Voting Procedures
Proxy Voting Service
Pioneer has engaged an independent proxy voting service to assist in the
voting of proxies. The proxy voting service works with custodians to ensure
that all proxy materials are received by the custodians and are processed
in a timely fashion. To the extent applicable, the proxy voting service
votes all proxies in accordance with the proxy voting policies established
by Pioneer. The proxy voting service will refer proxy questions to the
Proxy Coordinator (described below) for instructions under circumstances
where: (1) the application of the proxy voting guidelines is unclear; (2) a
particular proxy question is not covered by the guidelines; or (3) the
guidelines call for specific instructions on a case-by-case basis. The
proxy voting service is also requested to call to the Proxy Coordinator's
attention specific proxy questions that, while governed by a guideline,
appear to involve unusual or controversial issues. Pioneer reserves the
right to attend a meeting in person and may do so when it determines that
the company or the matters to be voted on at the meeting are strategically
important to its clients.
Proxy Coordinator
Pioneer's Director of Investment Operations (the "Proxy Coordinator")
coordinates the voting, procedures and reporting of proxies on behalf of
Pioneer's clients. The Proxy Coordinator will deal directly with the proxy
voting service and, in the case of proxy questions referred by the proxy
voting service, will solicit voting recommendations and instructions from
the Director of Portfolio Management US or, to the extent applicable,
investment sub-advisers. The Proxy Coordinator is responsible for ensuring
that these questions and referrals are responded to in a timely fashion and
for transmitting appropriate voting instructions to the proxy voting
service. The Proxy Coordinator is responsible for verifying with the
Compliance Department whether Pioneer's voting power is subject to any
limitations or guidelines issued by the client (or in the case of an
employee benefit plan, the plan's trustee or other fiduciaries).
Referral Items
From time to time, the proxy voting service will refer proxy questions to
the Proxy Coordinator that are described by Pioneer's policy as to be voted
on a case-by-case basis, that are not covered by Pioneer's guidelines or
where Pioneer's guidelines may be unclear with respect to the matter to be
voted on. Under such certain circumstances, the Proxy Coordinator will seek
a written voting recommendation from the Director of Portfolio Management
US. Any such recommendation will include: (i) the manner in which the
proxies should be voted; (ii) the rationale underlying any such decision;
and (iii) the disclosure of any contacts or communications made between
Pioneer and any outside parties concerning the proxy proposal prior to the
time that the voting instructions are provided. In addition, the Proxy
Coordinator will ask the Compliance Department to review the question for
any actual or apparent conflicts of interest as described below under
"Conflicts of
2
Interest." The Compliance Department will provide a "Conflicts of Interest
Report," applying the criteria set forth below under "Conflicts of
Interest," to the Proxy Coordinator summarizing the results of its review.
In the absence of a conflict of interest, the Proxy Coordinator will vote
in accordance with the recommendation of the Director of Portfolio
Management US.
If the matter presents a conflict of interest for Pioneer, then the Proxy
Coordinator will refer the matter to the Proxy Voting Oversight Group for a
decision. In general, when a conflict of interest is present, Pioneer will
vote according to the recommendation of the Director of Portfolio
Management US where such recommendation would go against Pioneer's interest
or where the conflict is deemed to be immaterial. Pioneer will vote
according to the recommendation of its proxy voting service when the
conflict is deemed to be material and the Pioneer's internal vote
recommendation would favor Pioneer's interest, unless a client specifically
requests Pioneer to do otherwise. When making the final determination as to
how to vote a proxy, the Proxy Voting Oversight Group will review the
report from the Director of Portfolio Management US and the Conflicts of
Interest Report issued by the Compliance Department.
Conflicts of Interest
A conflict of interest occurs when Pioneer's interests interfere, or appear
to interfere with the interests of Pioneer's clients. Occasionally, Pioneer
may have a conflict that can affect how its votes proxies. The conflict may
be actual or perceived and may exist when the matter to be voted on
concerns:
o An affiliate of Pioneer, such as another company belonging to
the UniCredito Italiano S.p.A. banking group (a "UniCredito
Affiliate");
o An issuer of a security for which Pioneer acts as a sponsor,
advisor, manager, custodian, distributor, underwriter, broker, or
other similar capacity (including those securities specifically
declared by PGAM to present a conflict of interest for Pioneer);
o An issuer of a security for which UniCredito has informed Pioneer
that a UniCredito Affiliate acts as a sponsor, advisor, manager,
custodian, distributor, underwriter, broker, or other similar
capacity; or
o A person with whom Pioneer (or any of its affiliates) has an
existing, material contract or business relationship that was not
entered into in the ordinary course of Pioneer's business.
o Pioneer will abstain from voting with respect to companies
directly or indirectly owned by UniCredito Italiano Group, unless
otherwise directed by a client. In addition, Pioneer will inform
PGAM Global Compliance and the PGAM Independent Directors before
exercising such rights.
Any associate involved in the proxy voting process with knowledge of any
apparent or actual conflict of interest must disclose such conflict to the
Proxy Coordinator and the Compliance Department. The Compliance Department
will review each item referred to Pioneer to determine whether an actual or
potential conflict of interest with Pioneer exists in connection with the
proposal(s) to be voted upon. The review will be conducted by comparing the
apparent parties affected by the proxy proposal being
3
voted upon against the Compliance Department's internal list of interested
persons and, for any matches found, evaluating the anticipated magnitude
and possible probability of any conflict of interest being present. For
each referral item, the determination regarding the presence or absence of
any actual or potential conflict of interest will be documented in a
Conflicts of Interest Report to the Proxy Coordinator.
Securities Lending
In conjunction with industry standards Proxies are not available to be
voted when the shares are out on loan through either Pioneer's lending
program or a client's managed security lending program. However, Pioneer
will reserve the right to recall lent securities so that they may be voted
according to the Pioneer's instructions. If a portfolio manager would like
to vote a block of previously lent shares, the Proxy Coordinator will work
with the portfolio manager and Investment Operations to recall the
security, to the extent possible, to facilitate the vote on the entire
block of shares.
Share-Blocking
"Share-blocking" is a market practice whereby shares are sent to a
custodian (which may be different than the account custodian) for record
keeping and voting at the general meeting. The shares are unavailable for
sale or delivery until the end of the blocking period (typically the day
after general meeting date).
Pioneer will vote in those countries with "share-blocking." In the event a
manager would like to sell a security with "share-blocking", the Proxy
Coordinator will work with the Portfolio Manager and Investment Operations
Department to recall the shares (as allowable within the market time-frame
and practices) and/or communicate with executing brokerage firm. A list of
countries with "share-blocking" is available from the Investment Operations
Department upon request.
Record Keeping
The Proxy Coordinator shall ensure that Pioneer's proxy voting service:
o Retains a copy of the proxy statement received (unless the proxy
statement is available from the SEC's Electronic Data Gathering,
Analysis, and Retrieval (EDGAR) system);
o Retains a record of the vote cast;
o Prepares Form N-PX for filing on behalf of each client that is a
registered investment company; and
o Is able to promptly provide Pioneer with a copy of the voting
record upon its request.
4
The Proxy Coordinator shall ensure that for those votes that may require
additional documentation (i.e. conflicts of interest, exception votes and
case-by-case votes) the following records are maintained:
o A record memorializing the basis for each referral vote cast;
o A copy of any document created by Pioneer that was material in
making the decision on how to vote the subject proxy; and
o A copy of any conflict notice, conflict consent or any other
written communication (including emails or other electronic
communications) to or from the client (or in the case of an
employee benefit plan, the plan's trustee or other fiduciaries)
regarding the subject proxy vote cast by, or the vote
recommendation of, Pioneer.
o Pioneer shall maintain the above records in the client's file for a
period not less than ten (10) years.
Disclosure
Pioneer shall take reasonable measures to inform its clients of the process
or procedures clients must follow to obtain information regarding how
Pioneer voted with respect to assets held in their accounts. In addition,
Pioneer shall describe to clients its proxy voting policies and procedures
and will furnish a copy of its proxy voting policies and procedures upon
request. This information may be provided to clients through Pioneer's Form
ADV (Part II) disclosure, by separate notice to the client, or through
Pioneer's website.
Proxy Voting Oversight Group
The members of the Proxy Voting Oversight Group are Pioneer's: Director of
Portfolio Management US, Head of Investment Operations, and Director of
Compliance. Other members of Pioneer will be invited to attend meetings and
otherwise participate as necessary. The Head of Investment Operations will
chair the Proxy Voting Oversight Group.
The Proxy Voting Oversight Group is responsible for developing, evaluating,
and changing (when necessary) Pioneer's Proxy Voting Policies and
Procedures. The group meets at least annually to evaluate and review these
policies and procedures and the services of its third-party proxy voting
service. In addition, the Proxy Voting Oversight Group will meet as
necessary to vote on referral items and address other business as
necessary.
Amendments
Pioneer may not amend its Proxy Voting Policies And Procedures without the
prior approval of the Proxy Voting Oversight Group and its corporate
parent, Pioneer Global Asset Management S.p.A
5
Proxy Voting Policies
Pioneer's sole concern in voting proxies is the economic effect of the
proposal on the value of portfolio holdings, considering both the short-
and long-term impact. In many instances, Pioneer believes that supporting
the company's strategy and voting "for" management's proposals builds
portfolio value. In other cases, however, proposals set forth by management
may have a negative effect on that value, while some shareholder proposals
may hold the best prospects for enhancing it. Pioneer monitors developments
in the proxy-voting arena and will revise this policy as needed.
All proxies that are received promptly will be voted in accordance with the
specific policies listed below. All shares in a company held by
Pioneer-managed accounts will be voted alike, unless a client has given us
specific voting instructions on an issue or has not delegated authority to
us. Proxy voting issues will be reviewed by Pioneer's Proxy Voting
Oversight Group, which consists of the Director of Portfolio Management US,
the Director of Investment Operations (the Proxy Coordinator), and the
Director of Compliance.
Pioneer has established Proxy Voting Procedures for identifying and
reviewing conflicts of interest that may arise in the voting of proxies.
Clients may request, at any time, a report on proxy votes for securities
held in their portfolios and Pioneer is happy to discuss our proxy votes
with company management. Pioneer retains a proxy voting service to provide
research on proxy issues and to process proxy votes.
Administrative
While administrative items appear infrequently in U.S. issuer proxies, they
are quite common in non-U.S. proxies.
We will generally support these and similar management proposals:
o Corporate name change.
o A change of corporate headquarters.
o Stock exchange listing.
o Establishment of time and place of annual meeting.
o Adjournment or postponement of annual meeting.
o Acceptance/approval of financial statements.
o Approval of dividend payments, dividend reinvestment plans and other
dividend-related proposals.
o Approval of minutes and other formalities.
6
o Authorization of the transferring of reserves and allocation of
income.
o Amendments to authorized signatories.
o Approval of accounting method changes or change in fiscal year-end.
o Acceptance of labor agreements.
o Appointment of internal auditors.
Pioneer will vote on a case-by-case basis on other routine business;
however, Pioneer will oppose any routine business proposal if insufficient
information is presented in advance to allow Pioneer to judge the merit of
the proposal. Pioneer has also instructed its proxy voting service to
inform Pioneer of its analysis of any administrative items inconsistent, in
its view, with supporting the value of Pioneer portfolio holdings so that
Pioneer may consider and vote on those items on a case-by-case basis.
Auditors
We normally vote for proposals to:
o Ratify the auditors. We will consider a vote against if we are
concerned about the auditors' independence or their past work for
the company. Specifically, we will oppose the ratification of
auditors and withhold votes from audit committee members if
non-audit fees paid by the company to the auditing firm exceed the
sum of audit fees plus audit-related fees plus permissible tax
fees according to the disclosure categories proposed by the
Securities and Exchange Commission.
o Restore shareholder rights to ratify the auditors.
We will normally oppose proposals that require companies to:
o Seek bids from other auditors.
o Rotate auditing firms, except where the rotation is statutorily
required or where rotation would demonstrably strengthen financial
disclosure.
o Indemnify auditors.
o Prohibit auditors from engaging in non-audit services for the
company.
Board of Directors
On issues related to the board of directors, Pioneer normally supports
management. We will, however, consider a vote against management in
instances where corporate performance has been very poor or where the board
appears to lack independence.
7
General Board Issues
Pioneer will vote for:
o Audit, compensation and nominating committees composed of
independent directors exclusively.
o Indemnification for directors for actions taken in good faith in
accordance with the business judgment rule. We will vote against
proposals for broader indemnification.
o Changes in board size that appear to have a legitimate business
purpose and are not primarily for anti-takeover reasons.
o Election of an honorary director.
We will vote against:
o Minimum stock ownership by directors.
o Term limits for directors. Companies benefit from experienced
directors, and shareholder control is better achieved through
annual votes.
o Requirements for union or special interest representation on the
board.
o Requirements to provide two candidates for each board seat.
We will vote on a case-by case basis on these issues:
o Separate chairman and CEO positions. We will consider voting with
shareholders on these issues in cases of poor corporate
performance.
Elections of Directors
In uncontested elections of directors we will vote against:
o Individual directors with absenteeism above 25% without valid
reason. We support proposals that require disclosure of director
attendance.
o Insider directors and affiliated outsiders who sit on the audit,
compensation, stock option or nominating committees. For the
purposes of our policy, we accept the definition of affiliated
directors provided by our proxy voting service.
We will also vote against:
o Directors who have failed to act on a takeover offer where the
majority of shareholders have tendered their shares.
o Directors who appear to lack independence or are associated with
very poor corporate performance.
8
We will vote on a case-by case basis on these issues:
o Re-election of directors who have implemented or renewed a
dead-hand or modified dead-hand poison pill (a "dead-hand poison
pill" is a shareholder rights plan that may be altered only by
incumbent or "dead " directors. These plans prevent a potential
acquirer from disabling a poison pill by obtaining control of the
board through a proxy vote).
o Contested election of directors.
o Prior to phase-in required by SEC, we would consider supporting
election of a majority of independent directors in cases of poor
performance.
o Mandatory retirement policies.
o Directors who have ignored a shareholder proposal that has been
approved by shareholders for two consecutive years.
Takeover-Related Measures
Pioneer is generally opposed to proposals that may discourage takeover
attempts. We believe that the potential for a takeover helps ensure that
corporate performance remains high.
Pioneer will vote for:
o Cumulative voting.
o Increase ability for shareholders to call special meetings.
o Increase ability for shareholders to act by written consent.
o Restrictions on the ability to make greenmail payments.
o Submitting rights plans to shareholder vote.
o Rescinding shareholder rights plans ("poison pills").
o Opting out of the following state takeover statutes:
o Control share acquisition statutes, which deny large holders voting
rights on holdings over a specified threshold.
o Control share cash-out provisions, which require large holders to
acquire shares from other holders.
o Freeze-out provisions, which impose a waiting period on large
holders before they can attempt to gain control.
o Stakeholder laws, which permit directors to consider interests of
non-shareholder constituencies.
9
o Disgorgement provisions, which require acquirers to disgorge profits
on purchases made before gaining control.
o Fair price provisions.
o Authorization of shareholder rights plans.
o Labor protection provisions.
o Mandatory classified boards.
We will vote on a case-by-case basis on the following issues:
o Fair price provisions. We will vote against provisions requiring
supermajority votes to approve takeovers. We will also consider
voting against proposals that require a supermajority vote to
repeal or amend the provision. Finally, we will consider the
mechanism used to determine the fair price; we are generally
opposed to complicated formulas or requirements to pay a premium.
o Opting out of state takeover statutes regarding fair price
provisions. We will use the criteria used for fair price
provisions in general to determine our vote on this issue.
o Proposals that allow shareholders to nominate directors.
We will vote against:
o Classified boards, except in the case of closed-end mutual funds.
o Limiting shareholder ability to remove or appoint directors. We
will support proposals to restore shareholder authority in this
area. We will review on a case-by-case basis proposals that
authorize the board to make interim appointments.
o Classes of shares with unequal voting rights.
o Supermajority vote requirements.
o Severance packages ("golden" and "tin" parachutes). We will support
proposals to put these packages to shareholder vote.
o Reimbursement of dissident proxy solicitation expenses. While we
ordinarily support measures that encourage takeover bids, we
believe that management should have full control over corporate
funds.
o Extension of advance notice requirements for shareholder proposals.
o Granting board authority normally retained by shareholders (e.g.,
amend charter, set board size).
o Shareholder rights plans ("poison pills"). These plans generally
allow shareholders to buy additional shares at a below-market
price in the event of a change in control and may deter some bids.
10
Capital Structure
Managements need considerable flexibility in determining the company's
financial structure, and Pioneer normally supports managements' proposals
in this area. We will, however, reject proposals that impose high barriers
to potential takeovers.
Pioneer will vote for:
o Changes in par value.
o Reverse splits, if accompanied by a reduction in number of shares.
o Share repurchase programs, if all shareholders may participate on
equal terms.
o Bond issuance.
o Increases in "ordinary" preferred stock.
o Proposals to have blank-check common stock placements (other than
shares issued in the normal course of business) submitted for
shareholder approval.
o Cancellation of company treasury shares.
We will vote on a case-by-case basis on the following issues:
o Reverse splits not accompanied by a reduction in number of shares,
considering the risk of delisting.
o Increase in authorized common stock. We will make a determination
considering, among other factors:
o Number of shares currently available for issuance;
o Size of requested increase (we would normally approve increases of up to
100% of current authorization);
o Proposed use of the additional shares; and
o Potential consequences of a failure to increase the number of shares
outstanding (e.g., delisting or bankruptcy).
o Blank-check preferred. We will normally oppose issuance of a new
class of blank-check preferred, but may approve an increase in a
class already outstanding if the company has demonstrated that it
uses this flexibility appropriately.
o Proposals to submit private placements to shareholder vote.
o Other financing plans.
We will vote against preemptive rights that we believe limit a company's
financing flexibility.
11
Compensation
Pioneer supports compensation plans that link pay to shareholder returns
and believes that management has the best understanding of the level of
compensation needed to attract and retain qualified people. At the same
time, stock-related compensation plans have a significant economic impact
and a direct effect on the balance sheet. Therefore, while we do not want
to micromanage a company's compensation programs, we will place limits on
the potential dilution these plans may impose.
Pioneer will vote for:
o 401(k) benefit plans.
o Employee stock ownership plans (ESOPs), as long as shares
allocated to ESOPs are less than 5% of outstanding shares. Larger
blocks of stock in ESOPs can serve as a takeover defense. We will
support proposals to submit ESOPs to shareholder vote.
o Various issues related to the Omnibus Budget and Reconciliation Act
of 1993 (OBRA), including:
o Amendments to performance plans to conform with OBRA;
o Caps on annual grants or amendments of administrative features;
o Adding performance goals; and
o Cash or cash-and-stock bonus plans.
o Establish a process to link pay, including stock-option grants, to
performance, leaving specifics of implementation to the company.
o Require that option repricings be submitted to shareholders.
o Require the expensing of stock-option awards.
o Require reporting of executive retirement benefits (deferred
compensation, split-dollar life insurance, SERPs, and pension
benefits).
o Employee stock purchase plans where the purchase price is equal to
at least 85% of the market price, where the offering period is no
greater than 27 months and where potential dilution (as defined
below) is no greater than 10%.
12
We will vote on a case-by-case basis on the following issues:
o Executive and director stock-related compensation plans. We will
consider the following factors when reviewing these plans:
o The program must be of a reasonable size. We will approve plans
where the combined employee and director plans together would
generate less than 15% dilution. We will reject plans with 15% or
more potential dilution.
Dilution = (A + B + C) / (A + B + C + D), where
A = Shares reserved for plan/amendment,
B = Shares available under continuing plans,
C = Shares granted but unexercised and
D = Shares outstanding.
o The plan must not:
o Explicitly permit unlimited option repricing authority or that
have repriced in the past without shareholder approval.
o Be a self-replenishing "evergreen" plan, plans that grant
discount options and tax offset payments.
o We are generally in favor of proposals that increase participation beyond
executives.
o We generally support proposals asking companies to adopt rigorous
vesting provisions for stock option plans such as those that vest
incrementally over, at least, a three- or four-year period with a pro
rata portion of the shares becoming exercisable on an annual basis
following grant date.
o We generally support proposals asking companies to disclose their
window period policies for stock transactions. Window period policies
ensure that employees do not exercise options based on insider
information contemporaneous with quarterly earnings releases and other
material corporate announcements.
o We generally support proposals asking companies to adopt stock holding
periods for their executives.
o All other employee stock purchase plans.
o All other compensation-related proposals, including deferred
compensation plans, employment agreements, loan guarantee programs
and retirement plans.
o All other proposals regarding stock compensation plans, including
extending the life of a plan, changing vesting restrictions,
repricing options, lengthening exercise periods or accelerating
distribution of awards and pyramiding and cashless exercise
programs.
13
We will vote against:
o Pensions for non-employee directors. We believe these retirement
plans reduce director objectivity.
o Elimination of stock option plans.
We will vote on a case-by case basis on these issues:
o Limits on executive and director pay.
o Stock in lieu of cash compensation for directors.
Corporate Governance
Pioneer will vote for:
o Confidential Voting.
o Equal access provisions, which allow shareholders to contribute
their opinion to proxy materials.
o Proposals requiring directors to disclose their ownership of shares
in the company.
We will vote on a case-by-case basis on the following issues:
o Change in the state of incorporation. We will support
reincorporations supported by valid business reasons. We will
oppose those that appear to be solely for the purpose of
strengthening takeover defenses.
o Bundled proposals. We will evaluate the overall impact of the
proposal.
o Adopting or amending the charter, bylaws or articles of association.
o Shareholder appraisal rights, which allow shareholders to demand
judicial review of an acquisition price.
We will vote against:
o Shareholder advisory committees. While management should solicit
shareholder input, we prefer to leave the method of doing so to
management's discretion.
o Limitations on stock ownership or voting rights.
o Reduction in share ownership disclosure guidelines.
14
Mergers and Restructurings
Pioneer will vote on the following and similar issues on a case-by-case
basis:
o Mergers and acquisitions.
o Corporate restructurings, including spin-offs, liquidations, asset
sales, joint ventures, conversions to holding company and
conversions to self-managed REIT structure.
o Debt restructurings.
o Conversion of securities.
o Issuance of shares to facilitate a merger.
o Private placements, warrants, convertible debentures.
o Proposals requiring management to inform shareholders of merger
opportunities.
We will normally vote against shareholder proposals requiring that the
company be put up for sale.
Mutual Funds
Many of our portfolios may invest in shares of closed-end mutual funds or
exchange-traded funds. The non-corporate structure of these investments
raises several unique proxy voting issues.
Pioneer will vote for:
o Establishment of new classes or series of shares.
o Establishment of a master-feeder structure.
Pioneer will vote on a case-by-case on:
o Changes in investment policy. We will normally support changes
that do not affect the investment objective or overall risk level
of the fund. We will examine more fundamental changes on a
case-by-case basis.
o Approval of new or amended advisory contracts.
o Changes from closed-end to open-end format.
o Authorization for, or increase in, preferred shares.
o Disposition of assets, termination, liquidation, or mergers.
o Classified boards of closed-end mutual funds, but will typically
support such proposals.
15
Social Issues
Pioneer will abstain on stockholder proposals calling for greater
disclosure of corporate activities with regard to social issues. "Social
Issues" may generally be described as shareholder proposals for a company
to:
o Conduct studies regarding certain issues of public concern and
interest;
o Study the feasibility of the company taking certain actions with
regard to such issues; or
o Take specific action, including ceasing certain behavior and
adopting company standards and principles, in relation to issues
of public concern and interest.
We believe these issues are important and should receive management
attention.
Pioneer will vote against proposals calling for substantial changes in the
company's business or activities. We will also normally vote against
proposals with regard to contributions, believing that management should
control the routine disbursement of funds.
16
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
MUNICIPAL HIGH INCOME ADVANTAGE TRUST
-------------------------------------
PORTFOLIO MANAGEMENT
ADDITIONAL INFORMATION ABOUT THE PORTFOLIO MANAGERS
OTHER ACCOUNTS MANAGED BY THE PORTFOLIO MANAGERS. The table below indicates,
for each portfolio manager of the fund, information about the accounts other
than the fund over which the portfolio manager has day-to-day investment
responsibility. All information on the number of accounts and total assets in
the table is as of March 31, 2011. For purposes of the table, "Other Pooled
Investment Vehicles" may include investment partnerships, undertakings for
collective investments in transferable securities ("UCITS") and other non-U.S.
investment funds and group trusts, and "Other Accounts" may include separate
accounts for institutions or individuals, insurance company general or separate
accounts, pension funds and other similar institutional accounts but generally
do not include the portfolio manager's personal investment accounts or those
which the manager may be deemed to own beneficially under the code of ethics.
Certain funds and other accounts managed by the portfolio manager may have
substantially similar investment strategies.
NAME OF PORTFOLIO MANAGER TYPE OF ACCOUNT NUMBER OF ACCOUNTS MANAGED
------------------------- --------------- --------------------------
TOTAL ASSETS MANAGED NUMBER OF ACCOUNTS MANAGED FOR WHICH ADVISORY FEE IS
-------------------- ----------------------------------------------------
PERFORMANCE-BASED ASSETS MANAGED FOR WHICH ADVISORY FEE IS PERFORMANCE-BASED
----------------- ----------------------------------------------------------
David Eurkus
------------
Other Registered Investment Companies 3 $1,867,790,000 N/A
------------------------------------- - -------------- ---
N/A
---
Other Pooled Investment Vehicles 0 $0 N/A N/A
-------------------------------- - -- --- ---
Other Accounts 1 $10,637,000 N/A N/A
-------------- - ----------- --- ---
POTENTIAL CONFLICTS OF INTEREST. When a portfolio manager is responsible for
the management of more than one account, the potential arises for the portfolio
manager to favor one account over another. The principal types of potential
conflicts of interest that may arise are discussed below. For the reasons
outlined below, Pioneer does not believe that any material conflicts are likely
to arise out of a portfolio manager's responsibility for the management of the
fund as well as one or more other accounts. Although Pioneer has adopted
procedures that it believes are reasonably designed to detect and prevent
violations of the federal securities laws and to mitigate the potential for
conflicts of interest to affect its portfolio management decisions, there can be
no assurance that all conflicts will be identified or that all procedures will
be effective in mitigating the potential for such risks. Generally, the risks of
such conflicts of interest are increased to the extent that a portfolio manager
has a financial incentive to favor one account over another. Pioneer has
structured its compensation arrangements in a manner that is intended to limit
such potential for conflicts of interest. See "Compensation of Portfolio
Managers" below.
- A portfolio manager could favor one account over another in allocating new
investment opportunities that have limited supply, such as initial public
offerings and private placements. If, for example, an initial public offering
that was expected to appreciate in value significantly shortly after the
offering was allocated to a single account, that account may be expected to have
better investment performance than other accounts that did not receive an
allocation of the initial public offering. Generally, investments for which
there is limited availability are allocated based upon a range of factors
including available cash and consistency with the accounts' investment
objectives and policies. This allocation methodology necessarily involves some
subjective elements but is intended over time to treat each client in an
equitable and fair manner. Generally, the investment opportunity is allocated
among participating accounts on a pro rata basis. Although Pioneer believes
that its practices are reasonably designed to treat each client in an equitable
and fair manner, there may be instances where a fund may not participate, or may
participate to a lesser degree than other clients, in the allocation of an
investment opportunity.
- A portfolio manager could favor one account over another in the order in
which trades for the accounts are placed. If a portfolio manager determines to
purchase a security for more than one account in an aggregate amount that may
influence the market price of the security, accounts that purchased or sold the
security first may receive a more favorable price than accounts that made
subsequent transactions. The less liquid the market for the security or the
greater the percentage that the proposed aggregate purchases or sales represent
of average daily trading volume, the greater the potential for accounts that
make subsequent purchases or sales to receive a less favorable price. When a
portfolio manager intends to trade the same security on the same day for more
than one account, the trades typically are "bunched," which means that the
trades for the individual accounts are aggregated and each account receives the
same price. There are some types of accounts as to which bunching may not be
possible for contractual reasons (such as directed brokerage arrangements).
Circumstances may also arise where the trader believes that bunching the orders
may not result in the best possible price. Where those accounts or circumstances
are involved, Pioneer will place the order in a manner intended to result in as
favorable a price as possible for such client.
- A portfolio manager could favor an account if the portfolio manager's
compensation is tied to the performance of that account to a greater degree than
other accounts managed by the portfolio manager. If, for example, the portfolio
manager receives a bonus based upon the performance of certain accounts relative
to a benchmark while other accounts are disregarded for this purpose, the
portfolio manager will have a financial incentive to seek to have the accounts
that determine the portfolio manager's bonus achieve the best possible
performance to the possible detriment of other accounts. Similarly, if Pioneer
receives a performance-based advisory fee, the portfolio manager may favor that
account, whether or not the performance of that account directly determines the
portfolio manager's compensation.
- A portfolio manager could favor an account if the portfolio manager has a
beneficial interest in the account, in order to benefit a large client or to
compensate a client that had poor returns. For example, if the portfolio manager
held an interest in an investment partnership that was one of the accounts
managed by the portfolio manager, the portfolio manager would have an economic
incentive to favor the account in which the portfolio manager held an interest.
- If the different accounts have materially and potentially conflicting
investment objectives or strategies, a conflict of interest could arise. For
example, if a portfolio manager purchases a security for one account and sells
the same security for another account, such trading pattern may disadvantage
either the account that is long or short. In making portfolio manager
assignments, Pioneer seeks to avoid such potentially conflicting situations.
However, where a portfolio manager is responsible for accounts with differing
investment objectives and policies, it is possible that the portfolio manager
will conclude that it is in the best interest of one account to sell a portfolio
security while another account continues to hold or increase the holding in such
security.
COMPENSATION OF PORTFOLIO MANAGERS. Pioneer has adopted a system of
compensation for portfolio managers that seeks to align the financial interests
of the portfolio managers with those of shareholders of the accounts (including
Pioneer funds) the portfolio managers manage, as well as with the financial
performance of Pioneer. The compensation program for all Pioneer portfolio
managers includes a base salary (determined by the rank and tenure of the
employee) and an annual bonus program, as well as customary benefits that are
offered generally to all full-time employees. Base compensation is fixed and
normally reevaluated on an annual basis. Pioneer seeks to set base compensation
at market rates, taking into account the experience and responsibilities of the
portfolio manager. The bonus plan is intended to provide a competitive level of
annual bonus compensation that is tied to the portfolio manager achieving
superior investment performance and align the interests of the investment
professional with those of shareholders, as well as with the financial
performance of Pioneer. Any bonus under the plan is completely discretionary,
with a maximum annual bonus that may be in excess of base salary. The annual
bonus is based upon a combination of the following factors:
- Quantitative Investment Performance. The quantitative investment
performance calculation is based on pre-tax investment performance of all of the
accounts managed by the portfolio manager (which includes the fund and any other
accounts managed by the portfolio manager) over a one-year period (20%
weighting) and four-year period (80% weighting), measured for periods ending on
December 31. The accounts, which include the fund, are ranked against a group of
mutual funds with similar investment objectives and investment focus (60%) and a
broad-based securities market index measuring the performance of the same type
of securities in which the accounts invest (40%), which, in the case of the
fund, are the Barclays Capital Municipal Bond Index and the Barclays Capital
High Income Municipal Bond Index. As a result of these two benchmarks, the
performance of the portfolio manager for compensation purposes is measured
against the criteria that are relevant to the portfolio manager's competitive
universe.
- Qualitative Performance. The qualitative performance component with
respect to all of the accounts managed by the portfolio manager includes
objectives, such as effectiveness in the areas of teamwork, leadership,
communications and marketing, that are mutually established and evaluated by
each portfolio manager and management.
- Pioneer Results and Business Line Results. Pioneer's financial
performance, as well as the investment performance of its investment management
group, affect a portfolio manager's actual bonus by a leverage factor of plus or
minus (+/-) a predetermined percentage.
The quantitative and qualitative performance components comprise 80% and 20%,
respectively, of the overall bonus calculation (on a pre-adjustment basis). A
portion of the annual bonus is deferred for a specified period and may be
invested in one or more Pioneer funds.
Certain portfolio managers may participate in other programs designed to reward
and retain key contributors. Senior executives or other key employees may be
granted performance units based on the stock price performance of UniCredit and
the financial performance of Pioneer Global Asset Management S.p.A., which are
affiliates of Pioneer. Portfolio managers also may participate in a deferred
compensation program, whereby deferred amounts are invested in one or more
Pioneer funds.
SHARE OWNERSHIP BY PORTFOLIO MANAGER. The following table indicates as of March
31, 2011 the value, within the indicated range, of shares beneficially owned by
the portfolio manager of the fund.
NAME OF PORTFOLIO MANAGER BENEFICIAL OWNERSHIP OF THE FUND*
------------------------- ---------------------------------
David Eurkus A
------------ -
*Key to Dollar Ranges
A. None
B. $1 - $10,000
C. $10,001 - $50,000
D. $50,001 - $100,000
E. $100,001 - $500,000
F. $500,001 - $1,000,000
G. Over $1,000,000
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
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 registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
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 registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) 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 officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
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.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) 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.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
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 May 27, 2011
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 May 27, 2011
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date May 27, 2011
* Print the name and title of each signing officer under his or her signature.