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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, 2011 through September 30, 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
--------------------------------------------------------------------------------
Semiannual Report | September 30, 2011
--------------------------------------------------------------------------------
Ticker Symbol: MAV
[LOGO]PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Schedule of Investments 11
Financial Statements 23
Notes to Financial Statements 28
Trustees, Officers and Service Providers 37
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 1
President's Letter
Dear Shareowner,
During the first three quarters of 2011, the U.S. economy struggled to gain
solid footing. The economy went through a soft patch in the first half, and the
second half, so far, has been highlighted by the U.S. government's battle over
the debt ceiling and Standard & Poor's downgrade of the U.S. Treasury's credit
rating from the top rating of "AAA" for the first time in history. After
rallying nicely in the first half, U.S. equity markets reacted sharply this
summer to the political stalemate and the downgrade. There has been continued
pressure on equities due to concerns about the growing European sovereign-debt
crisis and its potential impact on the global economy.
Despite legitimate reasons for concern, we believe there are also reasons for
optimism that the U.S. economy will continue to exhibit low to flat growth and
not head into a severe recession. Corporations continue to post solid earnings
and, for the most part, are maintaining their positive earnings outlooks. They
also have strong balance sheets with improved net leverage and high cash levels.
Auto production has rebounded following the Japanese supply chain interruptions
caused by the earthquake and tsunami last spring. Retail sales growth
year-over-year has remained strong despite low consumer confidence. And despite
high unemployment in the U.S., private sector employment has grown consistently
since February 2010. There are certainly risks to our outlook, including
possible contagion from the European sovereign-debt and banking crisis, the
fiscal drag from federal and state budget cuts in the U.S., as well as potential
"negative feedback loops" from capital market volatility. But broadly speaking,
we think this subpar economic recovery is consistent with recoveries from other
"balance sheet"-caused recessions.
The difficult recovery process has been accompanied by wide market swings. While
this is a challenging environment, our investment professionals continue to
focus on finding good opportunities to invest in both equity and bond markets
using the same disciplined approach Pioneer has used since 1928. Our approach is
to identify undervalued individual securities with the greatest potential for
success, carefully weighing risk against reward. Our teams of investment
professionals continually monitor and analyze the relative valuations of
different sectors and securities globally to help build portfolios that we
believe can help you achieve your investment goals.
2 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
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. Our advice, as always, is to work closely with a trusted financial
advisor to discuss your goals and work together to develop an investment
strategy that meets your individual needs. 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
us.pioneerinvestments.com. We greatly appreciate your trust in us and we thank
you for investing with Pioneer.
Sincerely,
/s/Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 3
Portfolio Management Discussion | 9/30/11
During the six months ended September 30, 2011, the municipal bond market
reversed direction and showed solid returns, as investors recognized the
attractive value that municipal bonds offered. In the following interview, David
Eurkus discusses the factors that influenced the performance of Pioneer
Municipal High Income Advantage Trust over the six months ended September 30,
2011. Mr. Eurkus, vice president and portfolio manager at Pioneer, and a member
of Pioneer's fixed-income team, is responsible for the daily management of the
Trust.
Q How did Pioneer Municipal High Income Advantage Trust perform during the
six months ended September 30, 2011?
A Pioneer Municipal High Income Advantage Trust produced a total return of
18.64% at net asset value, and 14.53% at market price, during the six
months ended September 30, 2011, with common shares of the Trust selling
at a 8.50% premium to net asset value at the end of the period. During the
same six months, the Trust's benchmarks, the Barclays Capital Municipal
Bond Index and the Barclays Capital High Yield Municipal Bond Index,
returned 7.85% and 8.72%, respectively. The Barclays Capital Municipal
Bond Index is designed to track the performance of investment-grade
municipal bonds, while the Barclays Capital 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.
Over the same six-month period ended September 30, 2011, the average
return (at market price) of the 14 closed end funds in Lipper's High-Yield
Municipal Debt Closed End Funds (Leveraged) category was 11.98%. On
September 30, 2011, the 30-day SEC yield on the Trust's shares was 8.87%.
Q How would you describe the investment environment for municipal securities
during the six months ended September 30, 2011?
A After struggling in the final quarter of 2010 and the first quarter of
2011, the municipal bond market changed course, as investors returned to
the market, recognizing the value that municipal bonds offered. From an
interest-rate and income perspective, investors were attracted to the
relatively high tax-free yields that municipal bonds provided - yields
that were higher than those of taxable bonds and money market funds, which
were at near-zero levels. Strong investor demand and very light supply
relative to historical norms were big factors in the positive performance
of the municipal bond market over the six-month period. Year-over-year,
new bond issuance declined by approximately 40%, largely because heavy new
bond issuance occurred in the final quarter of 2010, when the Federal
government ended the Build America Bonds (BAB) program, which had
authorized the issuance of taxable municipal securities subsidized by the
U.S. Treasury. To take advantage of the BAB program before it expired,
municipalities issued
4 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
a significant supply of new bonds; as a result, they did not have to issue
new bonds in the early months of 2011.
Over the six-month period ended September 30, 2011, both high-yield and
investment-grade municipal bonds generated relatively strong returns, with
higher-yielding bonds outperforming higher-quality securities. The Trust
outperformed both the Barclays Capital Municipal Bond Index and the
Barclays Capital High Yield Municipal Bond Index. The Trust's performance
was consistent with its portfolio's overall positioning, which had
exposure to both high-yield and investment-grade municipals. At the end of
the period on September 30, 2011, 42.8% of the Trust's total investment
portfolio was invested in high-yield, below-investment-grade debt, and
54.1% of the Trust's total investment portfolio was invested in
higher-quality municipal bonds. The Trust held 154 issues in 41 states.
Q How did you position the Trust over the six months ended September 30,
2011?
A We are long-term investors, and during the six months ended September 30,
2011 we maintained a consistent positioning, keeping the Trust's portfolio
fully invested and well diversified. We focus on producing generous
current income for the Trust's 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.
Most of the Trust's portfolio continued to be invested in revenue bonds
over the six-month period; these bonds rely on revenues from specific
funding sources that produce their own fees and revenues, such as
hospital/health care facilities, colleges and universities, or water
treatment plants. In contrast to revenue bonds, general obligation bonds
do not require a dedicated stream of tax revenues to cover the specific
debt issuance and are more likely to experience downgrades in credit
quality by various rating agencies due to the financial problems currently
facing many state and local governments. At the end of the six-month
period on September 30, 2011, only 0.6% of the Trust's total investment
portfolio was invested in general obligation bonds.
In selecting bonds for the Trust's portfolio during the period, we
maintained our emphasis on sectors that are vital to the domestic economy,
such as hospitals, universities, power-generating stations and airports.
At 34.4% of the Trust's total investment portfolio, health care
institutions represented the largest group in the Trust, followed by
transportation facilities, including airports, and insurance bonds, at
14.4% and 13.2%, respectively, of the Trust's total investment portfolio.
Other sectors included tobacco bonds and education, which accounted for
11.0% and 5.0%, respectively, of the Trust's total investment portfolio as
of September 30, 2011. In general, the Trust's holdings performed in line
with our expectations, with most of the areas in which we invested the
Trust producing positive results.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 5
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
six-month period ended September 30, 2011?
A At the end of the six-month period (September 30, 2011), 33.6% of the
Trust's total managed assets were financed by leverage. While the figure
was lower than the 36.0% of the Trust's managed assets leveraged at the
beginning of the six-month period on April 1, 2011, the decrease was due
to appreciation in the values of the bonds held by the Trust. The absolute
amount of leverage used by the Trust was unchanged over the six months
ended September 30, 2011.
Q What is your investment outlook?
A We believe that the municipal bond market should remain attractive to
investors, especially in the face of what appears to be limited supply in
a continued low-interest-rate environment.
Despite our positive outlook for the municipal bond market, we cannot
ignore the macroeconomic issues in play on a global scale. We do not
anticipate a double-dip recession in the United States; however, we expect
economic growth to be slower than originally thought. The Federal Reserve
System (the Fed) has stated that it is likely to keep interest rates low
(in the 0.00% to 0.25% range) until 2013, and we expect inflation to be
relatively subdued.
As we manage the Trust in the months ahead, our investment discipline will
continue to be based on independent fundamental analysis. Before a
security is added to the Trust's portfolio, we will maintain our practice
of analyzing both the credit-worthiness of the issuer and the reliability
and sustainability of the security's revenue stream. We believe there is
value in the high-yield municipal bond market, as the tax-advantaged
yields of municipal securities compare favorably with yields provided by
taxable bonds.
6 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
Please refer to the Schedule of Investments on pages 11-22 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.
The Trust currently uses leverage through the issuance of preferred shares.
Leverage creates significant risks, including the risk that the Trust's income
or capital appreciation will not be sufficient to cover the cost of leverage,
which may adversely affect the return for the holders of common shares. Since
February of 2008, regularly scheduled auctions for the Trust's preferred shares
have failed and preferred shareowners have not been able to sell their shares at
auction. The Board of Trustees of the Trust has considered, and continues to
consider, this issue.
The Trust is required to maintain certain regulatory and rating agency asset
coverage requirements in connection with its outstanding preferred shares. In
order to maintain required asset coverage levels, the Trust may be required to
alter the composition of its investment portfolio or take other actions, such as
redeeming preferred shares with the proceeds from portfolio transactions, at
what might be inopportune times in the market. Such actions could reduce the net
earnings or returns to holders of the Trust's common shares over time.
Risks of investing in the Trust are discussed in greater detail in the Trust's
original offering documents relating to its common shares and shareowner reports
issued from time to time.
These risks may increase share price volatility.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Trust's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 7
Portfolio Summary | 9/30/11
Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
Health Revenue 34.4%
Insured 13.2%
Tobacco Revenue 11.0%
Airport Revenue 9.0%
Other Revenue 7.8%
Development Revenue 7.2%
Education Revenue 5.0%
Pollution Control Revenue 4.8%
Housing Revenue 2.9%
Transportation Revenue 2.4%
Water Revenue 1.9%
Gaming Authority Revenue 0.4%
Utilities Revenue* 0.0%
* Amount is less than 0.1%
Portfolio Maturity
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
0-1 year 9.0%
1-3 years 12.2%
3-6 years 15.5%
6-8 years 17.2%
8-10 years 11.2%
10+ years 34.9%
Quality Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on Standard & Poor's
ratings)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
AAA 10.7%
AA 11.3%
A 13.5%
BBB 18.6%
BB & Lower 45.9%
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.
8 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
Prices and Distributions | 9/30/11
Share Prices and Distributions
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Market Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9/30/11 3/31/11
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$13.85 $12.64
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Premium 8.5% 9.5%
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Net Asset Value per Common Share
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--------------------------------------------------------------------------------
9/30/11 3/31/11
--------------------------------------------------------------------------------
$12.77 $11.54
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Distributions per Common Share
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Net
Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
4/1/11-9/30/11 $0.5650 $ -- $ --
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10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. New Jersey Economic Development Authority Revenue, 6.25%, 9/15/29 2.85%
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2. University of California, RIB, 13.23%, 5/15/38 2.60
--------------------------------------------------------------------------------------------
3. Massachusetts Housing Finance Agency, 5.35%, 12/1/45 2.43
--------------------------------------------------------------------------------------------
4. North Texas Tollway Authority Revenue, 5.75%, 1/1/33 2.32
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5. Indiana Development Finance Authority Revenue, 5.75%, 10/1/11 2.30
--------------------------------------------------------------------------------------------
6. Houston Texas Airport System Special Facilities Revenue, 6.75%, 7/1/29 2.30
--------------------------------------------------------------------------------------------
7. California State Various Purpose, RIB, 13.049%, 6/1/37 (144A) 2.12
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8. Massachusetts Development Finance Agency, 5.75%, 1/1/42 2.07
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9. Non-Profit Preferred Funding Trust I, Series E, 12.0%, 9/15/37 (144A) 1.82
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10. South Carolina Jobs Economic Development Authority Revenue, 6.375%, 8/1/34 1.82
--------------------------------------------------------------------------------------------
* This list excludes temporary cash investments. The portfolio is actively
managed, and current holdings may be different. The holdings listed should
not be considered recommendations to buy or sell any security listed.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 9
Performance Update | 9/30/11
Investment Returns
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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 September 30, 2011)
--------------------------------------------------------------------------------
Net Asset Market
Period Value (NAV) Price
--------------------------------------------------------------------------------
Life-of-Trust
(10/17/2003) 61.37% 67.20%
5 Years 20.11 35.83
1 Year 7.15 7.46
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[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Municipal High Barclays Capital Barclays Capital High Yield
Income Advantage Trust Municipal Bond Index Municipal Bond Index
10/03 $10,000 $10,000 $10,000
9/04 $10,289 $10,513 $11,043
9/05 $11,841 $10,939 $12,231
9/06 $13,435 $11,425 $13,544
9/07 $13,873 $11,779 $13,932
9/08 $11,170 $11,559 $12,533
9/09 $12,907 $13,275 $13,104
9/10 $15,060 $14,046 $14,694
9/11 $16,137 $14,592 $15,308
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV due to such factors as interest rate changes
and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Closed-end funds, unlike open-end funds, are not continuously offered. There is
a one-time public offering and, once issued, shares of closed-end funds are sold
in the open market through a stock exchange, and frequently trade at prices
lower than their NAV. NAV per common share is total assets less total
liabilities, which includes preferred shares, divided by the number of common
shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends are
assumed to be reinvested at prices obtained under the Trust's dividend
reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the sale of Trust shares.
Index comparison begins October 31, 2003. The Barclays Capital Municipal Bond
Index is a broad measure of the municipal bond market. The 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 $3 million. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Trust returns, do not
reflect any fees, expenses or sales charges. The indices are not leveraged. You
cannot invest directly in the indices.
10 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
Schedule of Investments | 9/30/11 (unaudited)
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Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
TAX-EXEMPT OBLIGATIONS -- 144.0% of Net Assets
ALABAMA -- 1.4%
2,500,000 B-/B2 Alabama Industrial Development Authority Revenue,
6.45%, 12/1/23 $ 2,168,475
2,500,000 NR/NR Huntsville-Redstone Village Special Care Facilities
Financing Authority, 5.5%, 1/1/43 1,876,025
------------
$ 4,044,500
----------------------------------------------------------------------------------------------------------
ARIZONA -- 3.3%
5,000,000 NR/NR Casa Grande Industrial Development Authority Hospital
Revenue, 7.625%, 12/1/29 $ 4,854,150
2,640,000 NR/NR Pima County Industrial Development Authority, 7.0%,
1/1/38 2,452,111
1,492,000 NR/Baa3 Pima County Industrial Development Authority, 6.75%,
7/1/31 1,437,527
1,000,000 NR/NR San Luis Facility Development Corp., 7.25%, 5/1/27 904,160
------------
$ 9,647,948
----------------------------------------------------------------------------------------------------------
CALIFORNIA -- 13.3%
1,000,000 NR/NR California Enterprise Development Authority Recovery
Zone Facility Revenue, 8.5%, 4/1/31 $ 1,043,710
3,140,000(a) AA+/WR California State University Revenue, RIB, 13.105%,
11/1/39 (144A) 3,471,961
8,575,000(a) AA+/NR California State Various Purpose, RIB, 13.049%,
6/1/37 (144A) 9,215,724
2,425,000 A-/A1 California State Various Purpose, 5.75%, 4/1/31 2,663,135
3,000,000 BB+/NR California Statewide Communities Development
Authority, 7.25%, 10/1/38 (144A) 3,046,740
757,342(b) NR/NR California Statewide Communities Development
Authority, 9.0%, 12/1/38 7,573
2,680,000+ AAA/Aaa Golden State Tobacco Securitization Corp., 6.75%,
6/1/39 2,953,199
1,500,000 A-/NR Madera Irrigation Financing Authority Water Revenue,
6.25%, 1/1/31 1,578,750
1,500,000 A-/NR Madera Irrigation Financing Authority Water Revenue,
6.5%, 1/1/40 1,603,410
2,500,000 A/A2 San Jose California Airport Revenue, 5.0%, 3/1/37 2,506,950
10,500,000(a) AA+/NR University of California, RIB, 13.23%, 5/15/38 11,302,515
------------
$ 39,393,667
----------------------------------------------------------------------------------------------------------
COLORADO -- 1.3%
2,850,000+ NR/WR Denver Health & Hospital Authority Healthcare
Revenue, 6.0%, 12/1/31 $ 2,878,187
1,000,000 NR/NR Kremmling Memorial Hospital District, 7.125%,
12/1/45 1,015,240
------------
$ 3,893,427
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 11
Schedule of Investments | 9/30/11 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
CONNECTICUT -- 3.0%
7,750,000 BBB/Baa1 Connecticut State Development Authority Revenue,
5.75%, 11/1/37 $ 7,768,135
1,000,000 NR/NR Hamden Connecticut Facility Revenue, 7.75%, 1/1/43 1,044,980
------------
$ 8,813,115
----------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA -- 3.1%
2,700,000 BBB/Baa3 District of Columbia Tobacco Settlement Financing
Corp., 6.5%, 5/15/33 $ 2,756,619
6,825,000 BBB/Baa3 District of Columbia Tobacco Settlement Financing
Corp., 6.75%, 5/15/40 6,517,465
------------
$ 9,274,084
----------------------------------------------------------------------------------------------------------
FLORIDA -- 3.5%
1,000,000 NR/Ba3 Capital Trust Agency Revenue Bonds, 7.75%, 1/1/41 $ 1,024,990
1,000,000 NR/NR Florida Development Finance Corp., Educational
Facilities Revenue, 6.0%, 9/15/40 937,570
2,000,000 NR/NR Florida Development Finance Corp., Educational
Facilities Revenue, 7.625%, 6/15/41 2,045,300
1,980,000 NR/NR Hillsborough County Industrial Development Authority
Revenue, 6.75%, 7/1/29 1,887,019
1,000,000+ NR/WR Hillsborough County Industrial Development Authority
Revenue, 8.0%, 8/15/32 1,433,100
500,000 NR/NR Miami Beach Health Facilities Authority, 5.375%,
11/15/28 463,625
2,500,000 A-/A2 Miami-Dade County Florida Aviation Revenue, 5.5%,
10/1/41 2,616,850
------------
$ 10,408,454
----------------------------------------------------------------------------------------------------------
GEORGIA -- 4.5%
5,210,000(a)(c) NR/Aa3 Atlanta Georgia Water and Wastewater Revenue, RIB,
13.105%, 11/1/43 (144A) $ 5,498,165
1,000,000 CCC+/NR Clayton County Development Authority Special
Facilities Revenue, 9.0%, 6/1/35 1,077,910
900,000 NR/NR DeKalb County Georgia Hospital Authority Revenue,
6.0%, 9/1/30 928,143
750,000 NR/NR DeKalb County Georgia Hospital Authority Revenue,
6.125%, 9/1/40 763,088
1,065,000 NR/Ba2 Effingham County Industrial Development Authority,
6.5%, 6/1/31 1,057,641
3,360,000 NR/NR Fulton County Residential Care Facilities, 7.0%,
7/1/29 2,536,430
1,650,000 NR/NR Savannah Georgia Economic Development Authority
Revenue, 7.4%, 1/1/34 1,595,698
------------
$ 13,457,075
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
12 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
GUAM -- 2.0%
1,000,000 B/NR Guam Government of Department Education
Certificates of Participation, 6.625%, 12/1/30 $ 1,013,370
4,400,000+ AAA/NR Northern Mariana Islands, 6.75%, 10/1/33 4,953,960
------------
$ 5,967,330
----------------------------------------------------------------------------------------------------------
IDAHO -- 1.2%
2,000,000 BBB+/Baa1 Power County Industrial Development Corp., 6.45%,
8/1/32 $ 2,001,720
1,500,000 BBB+/Baa1 Power County Pollution Control Revenue, 5.625%,
10/1/14 1,500,075
------------
$ 3,501,795
----------------------------------------------------------------------------------------------------------
ILLINOIS -- 8.2%
3,000,000(d) NR/NR Centerpoint Intermodal Center, 8.5%,
6/15/23 (144A) $ 3,000,960
2,000,000 NR/Caa2 City of Chicago Illinois, 5.5%, 12/1/30 1,525,080
2,500,000 NR/NR Illinois Finance Authority Revenue, 6.125%, 11/15/25 2,278,775
1,000,000 NR/NR Illinois Finance Authority Revenue, 6.0%, 11/15/27 598,610
6,000,000 NR/NR Illinois Finance Authority Revenue, 8.25%, 5/15/45 5,992,260
2,500,000 NR/NR Illinois Finance Authority Revenue, 8.25%, 2/15/46 2,536,475
1,450,000 A+/A1 Illinois Finance Authority Revenue, 5.5%, 4/1/39 1,460,628
2,000,000 AA+/Aa3 Illinois Finance Authority Revenue, 6.0%, 8/15/25 2,101,840
2,000,000 AA+/Aa2 Illinois Finance Authority Revenue, 6.0%, 8/15/39 2,196,960
280,000 BBB+/NR Illinois Finance Authority Revenue, 6.0%, 8/15/38 282,358
1,500,000(b) NR/NR Illinois Health Facilities Authority Revenue, 6.9%,
11/15/33 524,940
2,415,000 NR/NR Southwestern Illinois Development Authority Revenue,
5.625%, 11/1/26 1,816,080
------------
$ 24,314,966
----------------------------------------------------------------------------------------------------------
INDIANA -- 5.7%
250,000 NR/Baa3 East Chicago Indiana Exempt Facilities Revenue,
7.0%, 1/1/14 $ 243,420
10,000,000 BBB-/WR Indiana Development Finance Authority Revenue,
5.75%, 10/1/11 10,000,200
5,000,000 NR/Ba2 Jasper County Industrial Economic Development
Revenue, 5.6%, 4/1/29 4,816,550
1,900,000 NR/NR Vincennes Industrial Economic Development Revenue,
6.25%, 1/1/24 1,690,601
------------
$ 16,750,771
----------------------------------------------------------------------------------------------------------
KANSAS -- 0.3%
1,000,000 NR/A2 Kansas Development Finance Authority, 5.0%,
5/15/35 $ 1,001,830
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 13
Schedule of Investments | 9/30/11 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
KENTUCKY -- 1.4%
4,390,000 BB-/NR Kentucky Economic Development Finance Authority
Hospital System Revenue, 5.875%, 10/1/22 $ 4,065,184
----------------------------------------------------------------------------------------------------------
LOUISIANA -- 5.1%
2,500,000 BBB-/Ba2 Louisiana Local Government Environmental Facilities
Development Authority Revenue, 6.75%, 11/1/32 $ 2,620,175
6,000,000 NR/Baa1 Louisiana Public Facilities Authority Revenue, 5.5%,
5/15/47 5,770,680
750,000 BBB+/NR Opelousas Louisiana General Hospital Authority
Revenue, 5.75%, 10/1/23 769,808
5,915,000 A-/Baa3 Tobacco Settlement Financing Corp., 5.875%,
5/15/39 5,916,774
------------
$ 15,077,437
----------------------------------------------------------------------------------------------------------
MAINE -- 0.5%
1,500,000 NR/Baa3 Maine Health & Higher Educational Facilities Authority
Revenue, 7.5%, 7/1/32 $ 1,629,465
----------------------------------------------------------------------------------------------------------
MARYLAND -- 1.5%
1,250,000 NR/Baa3 Maryland Health & Higher Educational Facilities
Authority Revenue, 5.75%, 7/1/38 $ 1,130,212
2,000,000 NR/NR Maryland Health & Higher Educational Facilities
Authority Revenue, 6.25%, 1/1/45 2,085,340
460,000 NR/NR Maryland Health & Higher Educational Facilities
Authority Revenue, 5.25%, 1/1/27 387,499
1,250,000 NR/NR Maryland Health & Higher Educational Facilities
Authority Revenue, 5.3%, 1/1/37 936,688
------------
$ 4,539,739
----------------------------------------------------------------------------------------------------------
MASSACHUSETTS -- 9.0%
675,000 BB/NR Massachusetts Development Finance Agency, 5.25%,
10/1/18 $ 643,059
1,885,000 NR/NR Massachusetts Development Finance Agency, 7.1%,
7/1/32 1,630,996
8,000,000 A/WR Massachusetts Development Finance Agency, 5.75%,
1/1/42 9,011,360
2,195,000 BBB-/Baa3 Massachusetts Health & Educational Facilities
Authority Revenue, 5.375%, 7/15/28 2,082,001
3,420,000(b) NR/NR Massachusetts Health & Educational Facilities
Authority Revenue, 6.5%, 1/15/38 2,688,018
10,760,000 AA-/Aa3 Massachusetts Housing Finance Agency, 5.35%,
12/1/45 10,576,757
------------
$ 26,632,191
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
MICHIGAN -- 1.7%
2,000,000 NR/Ba1 Flint Michigan Hospital Building Authority Revenue,
7.375%, 7/1/35 $ 2,066,240
2,235,000 BB+/NR Kent Hospital Finance Authority Revenue, Metropolitan
Hospital PJ-Series A, 6.25%, 7/1/40 2,172,331
725,000 NR/NR Michigan Public Educational Facilities Authority
Revenue, 7.0%, 10/1/36 666,811
------------
$ 4,905,382
----------------------------------------------------------------------------------------------------------
MINNESOTA -- 0.3%
1,000,000 NR/NR Port Authority of the City of Bloomington, Minnesota
Recovery Zone Facility Revenue, 9.0%, 12/1/35 $ 1,029,340
----------------------------------------------------------------------------------------------------------
MISSOURI -- 1.6%
1,000,000 NR/NR Kansas City Tax Increment Financing Commission Tax
Increment Revenue, 6.5%, 6/1/25 $ 1,009,480
6,640,000(b)(e) NR/Ca St. Louis Industrial Development Authority Revenue,
7.25%, 12/15/35 2,988,000
1,500,000(b)(e) NR/Ca St. Louis Industrial Development Authority Revenue,
7.2%, 12/15/28 675,000
------------
$ 4,672,480
----------------------------------------------------------------------------------------------------------
MONTANA -- 0.6%
2,445,000(f) NR/NR Hardin Increment Industrial Infrastructure Development
Revenue, 0.0%, 9/1/31 $ 1,702,551
1,000,000(b)(e) NR/NR Two Rivers Authority, Inc., Project Revenue, 7.375%,
11/1/27 153,630
------------
$ 1,856,181
----------------------------------------------------------------------------------------------------------
NEVADA -- 1.6%
1,320,000(b)(e) NR/NR Director of the State of Nevada State Department of
Business & Industry, 7.375%, 1/1/40 $ 1,980
1,600,000(b)(e) NR/NR Nevada State Department of Business & Industry,
7.25%, 1/1/23 2,400
1,000,000(b)(e) NR/NR Nevada State Department of Business & Industry,
7.375%, 1/1/30 1,500
5,000,000 A-/A3 Reno Nevada Hospital Revenue, 5.25%, 6/1/41 4,639,000
------------
$ 4,644,880
----------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE -- 0.4%
1,125,000 NR/NR New Hampshire Health & Educational Facilities
Authority Revenue, 5.875%, 7/1/34 $ 1,127,318
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 15
Schedule of Investments | 9/30/11 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
NEW JERSEY -- 12.5%
2,500,000 NR/NR Burlington County New Jersey Bridge Commission
Revenue, 5.625%, 1/1/38 $ 2,134,275
13,000,000 B/B3 New Jersey Economic Development Authority Revenue,
6.25%, 9/15/29 12,414,610
3,500,000(a) NR/Aa3 New Jersey State Turnpike Authority, RIB, 13.774%,
1/1/28 (144A) 5,188,155
15,375,000 AA+/Aa1 New Jersey Transportation Trust Fund Authority
Revenue, 0.01%, 12/15/27 7,037,599
3,250,000+ AAA/Aaa Tobacco Settlement Financing Corp., 6.75%, 6/1/39 3,592,842
5,000,000+ AAA/Aaa Tobacco Settlement Financing Corp., 7.0%, 6/1/41 5,547,350
1,000,000+ AAA/Aaa Tobacco Settlement Financing Corp., 6.25%, 6/1/43 1,097,180
------------
$ 37,012,011
----------------------------------------------------------------------------------------------------------
NEW YORK -- 9.3%
1,730,000 NR/NR Dutchess County Industrial Development Agency,
7.5%, 3/1/29 $ 1,684,536
3,000,000 NR/NR Nassau County New York Industrial Development
Agency Revenue, 6.7%, 1/1/43 2,897,760
3,950,000 BB-/B1 New York City Industrial Development Agency, 7.625%,
12/1/32 3,974,727
5,000,000 BB-/B1 New York City Industrial Development Agency, 5.25%,
12/1/32 4,112,250
3,000,000 B-/Caa2 New York City Industrial Development Agency, 8.0%,
8/1/12 3,058,230
2,000,000 NR/Ba1 New York State Dormitory Authority Revenue, 6.125%,
12/1/29 2,017,320
5,000,000 AAA/Aaa New York State Environmental Facilities Corp., 5.0%,
6/15/33 5,106,350
2,000,000 BB/NR Seneca Nation Indians Capital Improvement Authority
Revenue, 5.25%, 12/1/16 (144A) 1,875,080
3,000,000 NR/NR Ulster County New York Industrial Development Agency,
6.0%, 9/15/27 2,391,120
500,000 NR/NR Ulster County New York Industrial Development Agency,
6.0%, 9/15/37 369,045
------------
$ 27,486,418
----------------------------------------------------------------------------------------------------------
NORTH CAROLINA -- 1.7%
5,010,000 NR/NR Charlotte North Carolina Special Facilities Revenue,
7.75%, 2/1/28 $ 5,016,413
----------------------------------------------------------------------------------------------------------
OHIO -- 1.3%
5,000,000 BB-/Baa3 Buckeye Tobacco Settlement Financing Authority,
6.5%, 6/1/47 $ 3,838,900
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
OKLAHOMA -- 2.2%
1,500,000 B-/Caa2 Tulsa Municipal Airport Trust Revenue, 7.35%,
12/1/11 $ 1,503,045
2,220,000 B-/Caa2 Tulsa Municipal Airport Trust Revenue, 6.25%, 6/1/20 2,078,675
3,000,000(d) NR/Caa2 Tulsa Municipal Airport Trust Revenue, 7.75%, 6/1/35 3,062,520
------------
$ 6,644,240
----------------------------------------------------------------------------------------------------------
OREGON -- 0.7%
2,000,000 A-/NR Oregon State Facilities Authority Revenue, 5.25%,
10/1/40 $ 2,030,100
----------------------------------------------------------------------------------------------------------
PENNSYLVANIA -- 5.3%
3,600,000 CCC/NR Columbia County Hospital Authority Revenue, 5.85%,
6/1/24 $ 3,221,820
710,000 BBB/Ba1 Hazleton Health Services Authority Hospital Revenue,
6.125%, 7/1/16 711,314
1,430,000 BB/NR Pennsylvania Economic Development Financing
Authority Revenue, 5.125%, 6/1/18 1,329,943
5,000,000 B/Caa2 Pennsylvania Economic Development Financing
Authority Solid Waste Disposal Revenue, 6.0%,
6/1/31 3,995,650
5,000,000 BBB/Baa3 Philadelphia Hospitals & Higher Education Facilities
Authority Revenue, 5.0%, 7/1/34 4,166,600
2,245,000 B-/NR Scranton-Lackawanna Health & Welfare Authority
Revenue, 6.15%, 7/1/12 2,221,764
------------
$ 15,647,091
----------------------------------------------------------------------------------------------------------
RHODE ISLAND -- 3.4%
1,385,000(d)(e) NR/NR Central Falls Rhode Island Detention Facilities
Revenue, 7.25%, 7/15/35 $ 1,127,390
1,500,000 NR/NR Rhode Island Health & Educational Building Corp
Revenue, 8.375%, 1/1/46 1,547,640
8,285,000 BBB/Baa3 Tobacco Settlement Financing Corp., 6.25%, 6/1/42 7,532,805
------------
$ 10,207,835
----------------------------------------------------------------------------------------------------------
SOUTH CAROLINA -- 5.0%
7,140,000+ BBB+/Baa1 South Carolina Jobs Economic Development Authority
Revenue, 6.375%, 8/1/34 $ 7,906,622
860,000+ BBB+/Baa1 South Carolina Jobs Economic Development Authority
Revenue, 6.375%, 8/1/34 952,338
4,400,000(g) BBB/WR Tobacco Settlement Revenue Management, 6.375%,
5/15/30 5,882,140
------------
$ 14,741,100
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 17
Schedule of Investments | 9/30/11 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
TENNESSEE -- 5.6%
1,000,000+ NR/A2 Johnson City Health & Educational Facilities Board
Hospital Revenue, 7.5%, 7/1/33 $ 1,071,910
5,000,000 BBB+/Baa1 Johnson City Health & Educational Facilities Board
Hospital Revenue, Mountain States Health Alliance,
6.5%, 7/1/38 5,400,800
7,000,000 NR/A1 Knox County Health Educational & Housing Facilities
Board Hospital Revenue, Baptist Health System East
Tennessee, 6.5%, 4/15/31 7,215,180
3,000,000 BBB+/NR Sullivan County Health, Educational & Housing
Facilities Board Hospital Revenue, 5.25%, 9/1/36 2,780,070
------------
$ 16,467,960
----------------------------------------------------------------------------------------------------------
TEXAS -- 15.3%
2,400,000 BB+/Ba1 Central Texas Regional Mobility Authority Revenue,
6.75%, 1/1/41 $ 2,375,496
4,095,000 CCC+/Caa2 Dallas-Fort Worth International Airport Facilities
Improvement Corp., 9.125%, 5/1/29 4,067,891
2,663,453(b)(e) NR/NR Gulf Coast Industrial Development Authority, 7.0%,
12/1/36 26,635
10,000,000 CCC+/B3 Houston Texas Airport System Special Facilities
Revenue, 6.75%, 7/1/29 9,999,800
725,000 NR/NR IAH Public Facility Corp., Project Revenue Bonds,
Series 2006, 6.0%, 5/1/16 678,201
1,000,000 NR/NR IAH Public Facility Corp., Project Revenue Bonds,
Series 2006, 6.0%, 5/1/21 859,670
1,350,000 NR/NR IAH Public Facility Corp., Project Revenue Bonds,
Series 2006, 6.125%, 5/1/26 1,113,561
2,750,000 AA+/Aa3 Lower Colorado River Authority, 5.0%, 5/15/31 2,765,318
845,000 NR/NR Lubbock Health Facilities Development Corp., 6.5%,
7/1/26 810,887
2,000,000 NR/NR Lubbock Health Facilities Development Corp., 6.625%,
7/1/36 1,873,840
9,750,000 BBB+/A3 North Texas Tollway Authority Revenue, 5.75%,
1/1/33 10,111,238
1,711,000 NR/Aaa Panhandle Regional Housing Finance Corp.,
Multifamily Housing Revenue, 6.6%, 7/20/31 1,808,886
1,000,000 BBB-/Baa2 Richardson Hospital Authority Revenue, 6.0%,
12/1/34 1,012,040
1,000,000 NR/NR Tarrant County Cultural Education Facilities Finance
Corp., 8.125%, 11/15/39 1,018,120
1,500,000 NR/NR Tarrant County Cultural Education Facilities Finance
Corp., 8.25%, 11/15/44 1,530,375
1,000,000(e) CC/NR Texas Midwest Public Facility Corp. Revenue, 9.0%,
10/1/30 601,900
4,700,000 NR/Ba1 Tomball Hospital Authority, 6.0%, 7/1/25 4,702,914
------------
$ 45,356,772
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
----------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
----------------------------------------------------------------------------------------------------------
UTAH -- 0.4%
1,600,000 NR/NR Spanish Fork Charter School Revenue, 5.7%,
11/15/36 (144A) $ 1,252,368
----------------------------------------------------------------------------------------------------------
VIRGINIA -- 0.8%
2,000,000 BBB+/Baa1 Washington County Industrial Development Authority
Revenue, 7.75%, 7/1/38 $ 2,281,300
----------------------------------------------------------------------------------------------------------
WASHINGTON -- 3.4%
1,140,000 BBB/Baa3 Tobacco Settlement Authority Revenue, 6.5%, 6/1/26 $ 1,154,569
2,000,000 BBB/Baa2 Washington State Health Care Facilities Authority,
6.125%, 8/15/37 2,013,040
2,000,000 BBB/Baa2 Washington State Health Care Facilities Authority,
6.25%, 8/15/42 2,020,340
1,500,000 NR/Baa2 Washington State Health Care Facilities Authority,
5.5%, 12/1/39 1,435,785
5,000,000 NR/NR Washington State Housing Finance Committee
Nonprofit Revenue, 5.625%, 1/1/27 3,607,300
------------
$ 10,231,034
----------------------------------------------------------------------------------------------------------
WEST VIRGINIA -- 0.5%
1,500,000 NR/NR West Virginia Hospital Finance Authority Hospital
Revenue, 9.125%, 10/1/41 $ 1,578,360
----------------------------------------------------------------------------------------------------------
WISCONSIN -- 2.1%
2,500,000 NR/NR Wisconsin Public Finance Authority Continuing Care
Retirement Community Revenue, 8.25%, 6/1/46 $ 2,574,100
1,000,000 NR/NR Wisconsin State Health & Educational Facilities
Authority Revenue, 6.25%, 4/1/34 968,930
1,500,000 A+/A1 Wisconsin State Health & Educational Facilities
Authority Revenue, 6.625%, 2/15/39 1,627,530
1,000,000 NR/NR Wisconsin State Health & Educational Facilities
Authority Revenue, 6.125%, 4/1/24 1,001,070
------------
$ 6,171,630
----------------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT OBLIGATIONS
(Cost $414,324,273) $426,612,091
----------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT OBLIGATION -- 2.7%
13,000,000(e) NR/NR Non-Profit Preferred Funding Trust I, Series E, 12.0%,
9/15/37 (144A) $ 7,909,720
----------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED DEBT
OBLIGATION
(Cost $13,000,000) $ 7,909,720
----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 19
Schedule of Investments | 9/30/11 (unaudited) (continued)
----------------------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------------------
COMMON STOCK -- 0.3% -- of Net Assets
Transportation -- 0.3%
----------------------------------------------------------------------------------------------------------
Airlines -- 0.3%
110,735(c)(e)(h) Delta Air Lines, Inc. $ 830,513
----------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost $3,210,349) $ 830,513
----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 147.0%
(Cost $430,534,622) (h)(i) $435,352,324
----------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 3.7% $ 10,877,591
----------------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (50.7)% ($150,005,301)
----------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS -- 100.0% $296,224,614
----------------------------------------------------------------------------------------------------------
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
September 30, 2011, the value of these securities amounted to $40,458,873
or 13.7% of total net assets applicable to common shareowners.
NR Security not rated by S&P or Moody's.
WR Rating withdrawn by either S&P or Moody's.
RIB Residual Interest Bonds.
+ 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 show is the coupon rate at
September 30, 2011.
(b) Security is in default and is non-income producing.
(c) Non-income producing.
(d) The interest rate is subject to change periodically. The interest rate
shown is the rate at September 30, 2011.
(e) Indicates a security that has been deemed illiquid. The aggregate cost of
illiquid securities is $30,076,359. The aggregate value of $13,488,155
represents 4.6% of the total net assets applicable to common shareowners.
(f) Debt obligation initially issued at one coupon which converts to a higher
coupon at a specific date. The rate shown is the rate at September 30,
2011.
(g) Escrow to maturity.
The accompanying notes are an integral part of these financial statements.
20 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
(h) The concentration of investments by type of obligation/market sector is
as follows:
Insured:
AMBAC 2.3%
Assured Gty -- FSA 1.1
FSA 8.1
BHAC-CR MBIA 1.7
Revenue Bonds:
Health Revenue 34.4
Tobacco Revenue 11.0
Airport Revenue 9.0
Other Revenue 7.8
Development Revenue 7.2
Education Revenue 5.0
Pollution Control Revenue 4.8
Housing Revenue 2.9
Transportation Revenue 2.4
Water Revenue 1.9
Gaming Authority Revenue 0.4
Utilities Revenue* 0.0
-----
100.0%
=====
* Amount is less than 0.1%
(i) At September 30, 2011, the net unrealized gain on investments based on
cost for federal income tax purposes of $418,262,725 was as follows:
Aggregate gross unrealized gain in which there is an excess of value over
tax cost $46,691,490
Aggregate gross unrealized loss in which there is an excess of tax cost
over value (29,601,891)
-----------
Net unrealized gain $17,089,599
===========
For financial reporting purposes net unrealized gain on investments was
$4,817,702 and cost of investments aggregated $430,534,622.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended September 30, 2011 aggregated $25,385,817 and $26,982,790,
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.
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 accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 21
Schedule of Investments | 9/30/11 (unaudited) (continued)
The following is a summary of the inputs used as of September 30, 2011, in
valuing the Trust's investments:
-----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------------
Tax Exempt Obligations $ -- $426,612,091 $-- $426,612,091
Municipal Collateralized Debt Obligation -- 7,909,720 -- 7,909,720
Common Stock 830,513 -- -- 830,513
-----------------------------------------------------------------------------------------------
Total $830,513 $434,521,811 $-- $435,352,324
===============================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
Statement of Assets and Liabilities | 9/30/11 (unaudited)
ASSETS:
Investments in securities, at value (cost $430,534,622) $435,352,324
Cash 3,677,839
Receivables --
Investment securities sold 90,000
Interest receivable 9,488,050
Prepaid expenses 48,613
---------------------------------------------------------------------------------
Total assets $448,656,826
---------------------------------------------------------------------------------
LIABILITIES:
Payable --
Dividends payable to common shareowners $ 2,063,083
Due to affiliates 226,695
Administration fee payable 73,690
Accrued expenses 63,443
---------------------------------------------------------------------------------
Total liabilities $ 2,426,911
---------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 6,000 shares,
including dividends payable of $5,301 $150,005,301
---------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $329,379,402
Undistributed net investment income 15,376,085
Accumulated net realized loss on investments (53,348,575)
Net unrealized gain on investments 4,817,702
---------------------------------------------------------------------------------
Net assets applicable to common shareowners $296,224,614
=================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $296,224,614 / 23,204,288 common shares $ 12.77
=================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 23
Statement of Operations (unaudited)
For the Six Months Ended 9/30/11
INVESTMENT INCOME:
Interest $15,857,588
---------------------------------------------------------------------------------------------
EXPENSES:
Management fees $1,297,821
Administration fees 151,321
Transfer agent fees and expenses 3,065
Shareowner communications expense 10,513
Auction agent fees 195,777
Custodian fees 55,487
Registration fees 11,597
Professional fees 101,275
Printing expense 14,021
Trustees' fees 6,891
Pricing fee 17,973
Miscellaneous 17,583
---------------------------------------------------------------------------------------------
Total expenses $ 1,883,324
---------------------------------------------------------------------------------------------
Net expenses $ 1,883,324
---------------------------------------------------------------------------------------------
Net investment income $13,974,264
---------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain from investments $2,102,089
---------------------------------------------------------------------------------------------
Change in net unrealized loss from investments 25,701,961
---------------------------------------------------------------------------------------------
Net gain on investments $27,804,050
---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM NET
INVESTMENT INCOME: $ (231,184)
---------------------------------------------------------------------------------------------
Net increase in net assets applicable to common shareowners
resulting from operations $41,547,130
=============================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
Statement of Changes in Net Assets
Six Months Ended
9/30/11 Year Ended
(unaudited) 3/30/11
FROM OPERATIONS:
Net investment income $ 13,974,264 $ 27,151,232
Net realized gain on investments 2,102,089 632,300
Change in unrealized gain (loss) on investments 25,701,961 (19,037,834)
Distributions to preferred shareowners from net investment
income (231,184) (725,370)
------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners resulting from operations $ 41,547,130 $ 8,020,328
------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income ($0.57 and $1.06 per share,
respectively) $ (13,087,863) $(24,440,922)
------------------------------------------------------------------------------------------------
Total distributions to common shareowners $ (13,087,863) $(24,440,922)
------------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment in distributions $ 895,359 $ 1,739,573
------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners from Trust share transactions $ 895,359 $ 1,739,573
------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners $ 29,354,626 $(14,681,021)
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period 266,869,988 281,551,009
------------------------------------------------------------------------------------------------
End of period $ 296,224,614 $266,869,988
------------------------------------------------------------------------------------------------
Undistributed net investment income $ 15,376,085 $ 14,720,868
------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 25
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
9/30/11 Ended Ended Ended Ended Ended
(unaudited) 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 $ 11.54 $ 12.24 $ 9.23 $ 13.54 $ 15.91 $ 15.04
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 0.60 $ 1.18 $ 1.18 $ 1.22 $ 1.29 $ 1.16
Net realized and unrealized gain (loss) on investments 1.21 (0.79) 2.83 (4.43) (2.51) 0.80
Distributions to preferred shareowners from:
Net investment income (0.01) (0.03) (0.04) (0.20) (0.26) (0.23)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.80 $ 0.36 $ 3.97 $ (3.41) $ (1.48) $ 1.73
Distributions to common shareowners from:
Net investment income (0.57) (1.06) (0.96) (0.90) (0.89) (0.86)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.23 $ (0.70) $ 3.01 $ (4.31) $ (2.37) $ 0.87
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period(b) $ 12.77 $ 11.54 $ 12.24 $ 9.23 $ 13.54 $ 15.91
------------------------------------------------------------------------------------------------------------------------------------
Market value, end of period(b) $ 13.85 $ 12.64 $ 13.10 $ 9.04 $ 13.74 $ 15.61
====================================================================================================================================
Total return at market value(c) 14.53% 4.97% 57.76% (28.40)% (6.51)% 10.21%
Ratios to average net assets of common shareowners
Net expenses(d) 1.34%(f) 1.35% 1.41% 1.38% 1.13% 1.16%
Net investment income before preferred share dividends 9.88%(f) 9.54% 10.66% 10.70% 8.27% 7.47%
Preferred share dividends 0.16%(f) 0.25% 0.33% 1.76% 1.64% 1.47%
Net investment income available to common shareowners 4.51%(f) 9.29% 10.33% 8.94% 6.63% 6.00%
Portfolio turnover 6% 10% 8% 24% 12% 17%
The accompanying notes are an integral part of these financial statements.
26 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
------------------------------------------------------------------------------------------------------------------------------------
Six Months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
9/30/11 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) $296,225 $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 $150,000
Asset coverage per preferred share, end of period $ 74,371 $ 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 $ 25,000
Liquidation value, including dividends payable, per
preferred share $ 25,001 $ 25,001 $ 25,001 $ 25,001 $ 25,010 $ 25,013
Ratio to average net assets of common shareowners
before waivers and reimbursements of expenses
Net expenses(d) 1.34%(f) 1.35% 1.41% 1.38% 1.13% 1.18%
Net investment income before preferred share dividends 9.88%(f) 9.54% 10.66% 10.70% 8.27% 7.45%
Preferred share dividends 0.16%(f) 0.25% 0.33% 1.76% 1.64% 1.47%
Net investment income available to common shareowners 9.72%(f) 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.
(f) Annualized.
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 | Semiannual Report | 9/30/11 27
Notes to Financial Statements | 9/30/11
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 as a secondary objective, also
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 issued from time to time.
Please refer to those documents when considering the Trust's principal risks.
The Trust may invest in both investment grade and below investment grade (high-
yield) municipal securities with a broad range of maturities and credit ratings.
Debt securities rated below investment grade are commonly referred to as "junk
bonds" and are considered speculative. These securities involve greater risk of
loss, are subject to greater price volatility, and are less liquid, especially
during periods of economic uncertainty or change, than higher rated debt
securities.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Fixed income
securities with remaining maturity of more than sixty days are valued at
prices supplied by independent pricing services, which consider such
factors as market
28 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
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 September 30, 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.
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.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 29
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 net realized gain (loss) on investment
transactions, or as from paid-in capital, depending on the type of
book/tax differences that may exist.
Under the recently enacted Regulated Investment Company Modernization Act
of 2010, the Fund will be permitted to carry forward capital losses
incurred in taxable years beginning after December 22, 2010 for an
unlimited period. However, any losses incurred during those future years
will be required to be utilized prior to the losses incurred in
pre-enactment tax years. As a result of this ordering rule, pre-enactment
capital loss carryforwards may be more likely to expire unused.
Additionally, post enactment capital losses that are carried forward will
retain their character as either short-term or long-term capital losses
rather than being considered all short-term as under previous law.
The tax character of current year distributions payable to common and
preferred shareowners will be determined at the end of the current taxable
year. The tax character of distributions paid to common and preferred
shareowners during the year ended March 31, 2011 was as follows:
--------------------------------------------------------------------------------
2011
--------------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $24,632,869
Ordinary income 533,423
--------------------------------------------------------------------------------
Total $25,166,292
================================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at March 31, 2011:
--------------------------------------------------------------------------------
2011
--------------------------------------------------------------------------------
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
30 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
methods for premiums and discounts on fixed income securities, the
difference between book and tax accounting for swap agreements, book/tax
difference in accrual of income on securities in default, and other
temporary differences.
C. Automatic Dividend Reinvestment Plan
All common shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional common
shares of the Trust in lieu of cash. Shareowners may elect not to
participate in the Plan. Shareowners not participating in the Plan receive
all dividends and capital gain distributions in cash. Participation in the
Plan is completely voluntary and may be terminated or resumed at any time
without penalty by notifying American Stock Transfer & Trust Company, the
agent for shareowners in administering the Plan (the Plan Agent), in
writing prior to any dividend record date; otherwise such termination or
resumption will be effective with respect to any subsequently declared
dividend or other distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate
in the Plan on the shareowner's behalf. If the firm or nominee does not
offer the Plan, dividends will be paid in cash to the shareowner of
record. A firm or nominee may reinvest a shareowner's cash dividends in
common shares of the Trust on terms that differ from the terms of the
Plan.
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional
unissued but authorized common shares from the Trust or (ii) by purchase
of outstanding common shares on the New York Stock Exchange or elsewhere.
If, on the payment date for any dividend, the net asset value per common
share is equal to or less than the market price per share plus estimated
brokerage trading fees (market premium), the Plan Agent will invest the
dividend amount in newly issued common shares. The number of newly issued
common shares to be credited to each account will be determined by
dividing the dollar amount of the dividend by the net asset value per
common share on the date the shares are issued, provided that the maximum
discount from the then current market price per share on the date of
issuance does not exceed 5%. If, on the payment date for any dividend, the
net asset value per common share is greater than the market value (market
discount), the Plan Agent will invest the dividend amount in common shares
acquired in open-market purchases. There are no brokerage charges with
respect to newly issued common shares. However, each participant will pay
a pro rata share
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 31
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 six months ended September 30, 2011, the net management fee was
0.60% of the Trust's average daily managed assets, which was 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 September 30,
2011, $226,695 was payable to PIM related to management costs, 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.
32 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
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
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 September 30, 2011.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 33
5. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the six months ended
September 30, 2011 and the year ended March 31, 2011 were as follows:
--------------------------------------------------------------------------------
9/30/11 3/31/11
--------------------------------------------------------------------------------
Shares outstanding at beginning of
period 23,133,791 22,995,047
Reinvestment of distributions 70,497 138,744
--------------------------------------------------------------------------------
Shares outstanding at end of period 23,204,288 23,133,791
================================================================================
The Trust may classify or reclassify any unissued shares of beneficial interest
into one or more series of preferred shares of beneficial interest. As of
September 30, 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 0.121% to 0.468% during the six months ended
September 30, 2011.
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
34 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
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 a dividend from undistributed net
investment income of $0.095 per common share payable October 31, 2011, to common
shareowners of record on October 14, 2011.
Subsequent to September 30, 2011, dividends declared and paid on preferred
shares totaled $36,330 in aggregate for the September 30 outstanding preferred
share series through November 9, 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.
ADDITIONAL INFORMATION (unaudited)
During the period, there have been no material changes in the Trust's investment
objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust which has not been
approved by the shareowners. During the period, there have been no changes in
the principal risk factors associated with investment in the Trust. There were
no changes in the persons who are primarily responsible for the day-to-day
management of the Trust's portfolio.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its common
shares in the open market.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 35
Results of Shareholder Meeting (unaudited)
At the annual meeting of shareowners held on September 21, 2011 shareowners of
Pioneer Municipal High Income Advantage Trust were asked to consider the
proposal described below. A report of the total votes cast by the Trust's
shareholders follows:
Proposal 1 -- To elect Class II Trustees.
--------------------------------------------------------------------------------
Nominee For Withheld
--------------------------------------------------------------------------------
Benjamin J. Friedman 21,041,503.755 972,742
Margaret B.W. Graham 21,078,807.755 935,438
Daniel K. Kingsbury 21,092,575.755 921,670
36 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham Christopher J. Kelley, Secretary
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
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 Trust Company
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 37
This page for your notes.
38 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
This page for your notes.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 39
This page for your notes.
40 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
This page for your notes.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 41
This page for your notes.
42 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
This page for your notes.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11 43
This page for your notes.
44 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/11
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 us.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 (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal 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.
N/A
(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 Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the 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
committe eestablished 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.
Information not required in semi annual reports on form NCSR.
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.
Information not required in semi annual reports on form NCSR.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the 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 November 29, 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 November 29, 2011
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date November 29, 2011
* Print the name and title of each signing officer under his or her signature.