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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, 2012 through September 30, 2012
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, 2012
--------------------------------------------------------------------------------
Ticker Symbol: MAV
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Schedule of Investments 13
Financial Statements 25
Notes to Financial Statements 30
Trustees, Officers and Service Providers 39
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 1
President's Letter
Dear Shareowner,
The U.S. stock market rallied sharply through the third quarter of 2012 amid a
sluggish, but nonetheless growing, U.S. economy. We have been cautiously
optimistic about the U.S. from the start of the year, and the economic data
continue to be encouraging. The housing and auto sectors are benefitting from
record-low interest rates. The climate for consumer and business credit has
improved, and inflation appears to be subdued. While corporate profits slowed in
the third quarter, many U.S. companies continue to have strong balance sheets
and to pay attractive dividends* compared to fixed-income securities.
All of these factors contributed to gains for investors who owned riskier
assets, including equities and higher-yielding corporate bonds. Year to date
through September 30, 2012, the Standard & Poor's 500 Index returned 16.35%. In
fixed income, the Bank of America Merrill Lynch High Yield Master II Index was
up by 12.02% during the same period, while the Barclays Capital Aggregate Bond
Index gained 3.99%. Treasury bonds, by contrast, generated a comparatively
sluggish return of 1.70%, as measured by the Barclays Capital Intermediate
Treasuries Index.
Despite this generally positive picture during the first nine months of 2012,
investors face powerful macroeconomic challenges in the months ahead. These
include the threat of a so-called "fiscal cliff" in the U.S. budget process
after the November elections, the European sovereign-debt crisis, and slowing
growth in both Europe and China. Investors can continue to count on market
volatility tied to these factors, although we remain optimistic that the
underlying economic trends are moving in the right direction.
At Pioneer, we have long advocated the benefits of staying diversified** and
investing for the long term. And while diversification alone does not assure a
profit or protect against loss in a declining market, we believe in actively
seeking out opportunities in undervalued securities and sectors around the
globe. 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.
* Dividends are not guaranteed.
** Diversification does not assure a profit or protect against loss in a
declining market.
2 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
Pioneer's investment professionals focus on finding good opportunities in both
equity and bond markets using the same disciplined investment approach we have
used since 1928. Our strategy 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.
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 | 9/30/12 3
Portfolio Management Discussion | 9/30/12
Tax-advantaged municipal securities produced healthy returns during the six
months ended September 30, 2012, as both traditional and non-traditional
investors were drawn by attractive values in the municipal market when compared
to the taxable market. In the following interview, David Eurkus discusses the
factors that influenced the performance of Pioneer Municipal High Income
Advantage Trust over the six-month period. Mr. Eurkus, senior vice president and
portfolio manager at Pioneer, is responsible for the daily management of the
Trust.
Q How did Pioneer Municipal High Income Advantage Trust perform during the
six-month period ended September 30, 2012?
A Pioneer Municipal High Income Advantage Trust produced a total return of
9.77% at net asset value, and 12.69% at market price, during the six-month
period ended September 30, 2012. During the same six-month period, the
Trust's benchmarks, the Barclays Capital Municipal Bond Index and the
Barclays Capital High Yield Municipal Bond Index, returned 4.24% and 8.06%,
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. During the same six-month period, the
average return (at market price) of the 12 closed end funds in Lipper's High
Yield Municipal Debt Closed End Funds category (which may or may not be
leveraged) was 14.10%.
The shares of the Trust were selling at a 17.7% premium to net asset value
at the end of the period.
Unlike the Trust, the two Barclays Capital municipal indices do not use
leverage. While the use of leverage can increase investment opportunity, it
also can increase investment risk.
On September 30, 2012, the standardized 30-day SEC yield on the Trust's
shares was 3.84%.
Q How would you describe the investment environment during the six-month
period ended September 30, 2012?
A The six-month period ended September 30, 2012, was a favorable one for
municipal securities in general, with new money flowing into the municipal
market. Inflows came from traditional investors seeking tax advantages as
well as from institutional investors, such as banks and insurance companies,
who were attracted by the competitive yields available from municipal
4 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
securities compared with taxable investments. Both investment-grade and
higher-yielding, below-investment-grade municipal securities produced more
income, on an after-tax basis, than taxable securities of comparable quality
and with similar maturities. As demand for municipal securities rose while
supply remained limited, municipal bond prices increased and interest rates
declined, delivering total returns that often were superior to those
available in the taxable market during the six-month period. Moreover,
municipal revenue bonds continued to be perceived as a relatively safe place
for investors' money.
Q How was the Trust's portfolio positioned over the six-month period ended
September 30, 2012, and how did the positioning affect the Trust's
performance?
A During the six-month period, we maintained our traditional emphasis on
project revenue bonds within the Trust's portfolio. Project revenue bonds
are secured by dedicated revenue streams from specific projects, such as
hospitals or other health care institutions, or airport revenues. We focus
the Trust's investments in these types of securities because of the
reliability of their funding sources as compared with general obligation
bonds, which do not require a dedicated revenue stream and can be more
affected by credit rating downgrades or the general fiscal problems of a
municipality or agency.
At the end of the period on September 30, 2012, health care continued to
represent the largest allocation in the Trust's total investment portfolio,
at 20.7% of invested assets, followed by insurance bonds (16.3% of invested
assets) and tobacco revenue bonds (13.7% of invested assets). Other project
revenue allocations in the Trust's portfolio included those in the airport
and airport facilities, education, housing, pollution control, and water and
sewer sectors.
As of September 30, 2012, 47.3% of the Trust's total investment portfolio
was invested in securities with investment-grade credit ratings, while 52.7%
of the Trust's total investment portfolio was held in high-yield securities.
We kept the Trust fully invested during the six-month period and maintained
a duration positioning that was longer than that of the benchmarks. The
longer-duration positioning helped the Trust to capture fully the benefits
of the falling interest rates and the resulting increases in bond prices
during the six-month period.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 5
Q Did any particular types of investments have notable effects on the Trust's
performance during the six-month period ended September 30, 2012?
A In addition to benefiting from the portfolio's longer-duration positioning,
the Trust's performance during the six-month period was aided by established
positions with adequate call protection that had much higher yields than
those currently available. Call protection limits the issuers' ability to
call back their debt in order to refinance into lower-yielding substitutes.
The Trust's performance also benefited from strong security selection
results from investments in both high-yield and investment-grade securities
across a wide spectrum of sectors, with positions in the hospital and health
care, transportation and education groups performing particularly well
during the six-month period.
Our investment process for the Trust relies heavily on basic, fundamental
research and the analysis of individual securities as well as the
reliability of those securities' funding sources. We believe the success of
the investment process can especially be seen in the Trust's performance
results from the hospital and health care and industrial revenue groups.
Notable examples of strong-performing individual securities in the Trust's
portfolio during the period include: Temple University (Philadelphia)
Hospital bonds; State of Pennsylvania Industrial Revenue bonds for U.S.
Gypsum; and State of California general obligation bonds.
In transportation, a noteworthy contributor to the Trust's performance
during the six-month period was an airport facility security backed by
revenues from American Airlines. That particular investment had fallen in
value prior to the start of the period after AMR, the parent company of the
airline, filed for bankruptcy protection in November 2011. The bond price
appreciated during the six-month period ended September 30, 2012, as
investors recognized the secured nature of the revenue stream dedicated to
the security.
Despite strong overall performance, the Trust did own a couple of
underperforming securities during the period. Specifically, the Trust's
holdings of St. Louis Industrial Development Authority (hotel-related
revenue bonds), the performance of which suffered due to a restructuring of
the debt, and Non-Profit Preferred Funding Trust (variable-rate municipal
pool), whose underperformance was related to low distributions relative to
other securities in the Trust's portfolio, generated negative returns during
the six-month period.
6 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
Q How did the level of leverage employed by the Trust change over the
six-month period ended September 30, 2012?
A At the end of the six-month period ended September 30, 2012, 32.1% of the
Trust's total managed assets were financed by leverage, compared with 33.4%
of the Trust's total managed assets financed by leverage at the start of the
period on April 1, 2012. The decrease was due to fluctuations in the values
of securities in which the Trust had invested.
Q What is your investment outlook?
A While the capital markets face a number of issues, we think there continue
to be good values and attractive opportunities available in the municipal
market--both in high-yield and investment-grade securities. In the current
environment, we think credit research will remain essential for investment
success. That is especially true when selecting project revenue bonds, which
we emphasize in the Trust's investment strategy. We believe we will see in
the future the continued need for financing of essential projects, and that
need should provide quality investment opportunities for those who focus on
fundamental research of the strengths and financial reliability of each
proposed project.
We certainly foresee many challenges ahead, including geopolitical issues in
the Middle East, the continuing political debate in the U.S. over the
country's national debt, levels of taxation, and discretionary spending
policies, and litigation over public pension funds.
We plan to stay focused on intensive, independent research when selecting
securities for the Trust's portfolio, looking at the different sectors
involved in public finance and examining which areas we believe are most
likely to have secure revenues, and which services are considered to be most
essential. We are watching carefully for new areas of investment
opportunity, which may include financing for charter schools, seaport
facility expansions, toll road construction and maintenance, and energy
production. We also will seek to identify which regional or national
projects are unlikely to receive further support from the U.S. government.
Please refer to the Schedule of Investments on pages 13-24 for a full listing of
Trust securities.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 7
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.
8 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
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 | 9/30/12 9
Portfolio Summary | 9/30/12
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Health Revenue 20.7%
Insured 16.2%
Tobacco Revenue 13.7%
Facilities Revenue 12.6%
Development Revenue 9.4%
Other Revenue 8.6%
Airport Revenue 6.1%
Education Revenue 4.5%
Pollution Control Revenue 3.8%
Transportation Revenue 2.4%
Water Revenue 1.9%
Utilities Revenue 0.1%
Portfolio Maturity
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
20+ years 67.4%
10-20 years 28.9%
7-10 years 1.1%
5-7 years 0.8%
2-5 years 0.5%
0-2 year 1.3%
Quality Distribution
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio; based on Standard & Poor's
ratings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
AAA 3.0%
AA 17.8%
A 8.0%
BBB 18.5%
BB 7.6%
B 8.6%
CCC 2.1%
D 0.1%
Not Rated 34.3%
Bond ratings are ordered highest to lowest in portfolio. Based on Standard &
Poor's measures, AAA (highest possible rating) through BBB are considered
investment grade; BB or lower ratings are considered non-investment grade. Cash
equivalents and some bonds may not be rated.
The portfolio is actively managed and current holdings may be different.
10 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
Prices and Distributions | 9/30/12
Share Prices and Distributions
--------------------------------------------------------------------------------
Market Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9/30/12 3/31/12
--------------------------------------------------------------------------------
$15.99 $14.72
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Premium 17.7% 14.4%
--------------------------------------------------------------------------------
Net Asset Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9/30/12 3/31/12
--------------------------------------------------------------------------------
$13.59 $12.87
--------------------------------------------------------------------------------
Distributions per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
4/1/12-9/30/12 $0.57 $-- $--
--------------------------------------------------------------------------------
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. University of California, RIB, 13.177%, 5/15/32 2.60%
-------------------------------------------------------------------------------------
2. North Texas Tollway Authority Revenue, 5.75%, 1/1/33 2.41
-------------------------------------------------------------------------------------
3. Massachusetts Housing Finance Agency Revenue, 5.35%, 12/1/45 2.41
-------------------------------------------------------------------------------------
4. Massachusetts Development Finance Agency Revenue, 5.75%, 1/1/42 2.35
-------------------------------------------------------------------------------------
5. Lehman Municipal Trust Receipts General Obligations, 12.866%, 7/28/31 2.35
-------------------------------------------------------------------------------------
6. Houston Texas Airport System Special Facilities Revenue, 6.75%, 7/1/29 2.23
-------------------------------------------------------------------------------------
7. California County Tobacco Securitization Agency Revenue, 5.25%, 6/1/46 1.93
-------------------------------------------------------------------------------------
8. New Jersey Transportation Trust Fund Authority Revenue, 0.0%, 12/15/27 1.87
-------------------------------------------------------------------------------------
9. Tobacco Settlement Financing Corp., Revenue, 6.25%, 6/1/42 1.87
-------------------------------------------------------------------------------------
10. Non-Profit Preferred Funding Trust I, 6.75%, 9/15/37 1.83
-------------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 11
Performance Update | 9/30/12
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in market value, including
reinvestment of dividends and distributions, of a $10,000 investment made in
common shares of Pioneer Municipal High Income Advantage Trust, compared to that
of the Barclays Capital Municipal Bond Index and the Barclays Capital High Yield
Municipal Bond Index.
Average Annual Total Returns
(As of March 31, 2012)
--------------------------------------------------------------------------------
Net Asset Market
Period Value (NAV) Price
--------------------------------------------------------------------------------
Life-of-Class
(10/17/2003) 7.33% 8.74%
5 Years 6.31 9.59
1 Year 16.77 18.00
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Municipal High Barclays Capital Barclays Capital High
Income Advantage Trust Municipal Bond Index Yield Municipal Bond Index
10/31/2003 $ 10,000 $ 10,000 $ 10,000
9/30/2004 $ 9,965 $ 10,513 $ 11,043
9/30/2005 $ 11,335 $ 10,939 $ 12,231
9/30/2006 $ 12,310 $ 11,425 $ 13,544
9/30/2007 $ 13,392 $ 11,779 $ 13,932
9/30/2008 $ 9,595 $ 11,559 $ 12,533
9/30/2009 $ 12,443 $ 13,275 $ 13,104
9/30/2010 $ 15,558 $ 14,046 $ 14,694
9/30/2011 $ 16,720 $ 14,592 $ 15,308
9/30/2012 $ 21,180 $ 15,805 $ 17,571
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 $3 million. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Trust returns, do not
reflect any fees, expenses or sales charges. The indices do not employ leverage.
You cannot invest directly in the indices.
12 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
Schedule of Investments | 9/30/12 (unaudited)
------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
------------------------------------------------------------------------------------------------------------
TAX EXEMPT OBLIGATIONS -- 139.2% of Net Assets
Alabama -- 1.6%
2,500,000 B-/B2 Alabama Industrial Development Authority Solid
Waste Disposal Revenue, 6.45%, 12/1/23 $ 2,499,675
2,500,000 NR/NR Huntsville-Redstone Village Special Care
Facilities
Financing Authority, 5.5%, 1/1/43 2,496,100
-----------------
$ 4,995,775
------------------------------------------------------------------------------------------------------------
Arizona -- 3.3%
5,000,000 NR/NR Casa Grande Industrial Development Authority
Hospital Revenue, 7.625%, 12/1/29 $ 5,152,300
1,487,000 NR/Baa3 Pima County Industrial Development Authority,
6.75%, 7/1/31 1,489,840
2,640,000 NR/NR Pima County Industrial Development Authority,
7.0%, 1/1/38 2,733,192
1,000,000 NR/NR San Luis Facility Development Corp.,
7.25%, 5/1/27 962,550
-----------------
$ 10,337,882
------------------------------------------------------------------------------------------------------------
California -- 19.1%
11,990,000 CCC/NR California County Tobacco Securitization Agency
Revenue, 5.25%, 6/1/46 $ 8,659,538
1,450,000 NR/NR California Enterprise Development Authority
Recovery Zone Facility Revenue, 8.5%, 4/1/31 1,681,463
2,425,000 A-/A1 California State General Obligation Various
Purpose, 5.75%, 4/1/31 2,882,840
4,000,000 BB/NR California Statewide Communities Development
Authority, 7.25%, 10/1/38 (144A) 4,284,440
757,342(a) NR/NR California Statewide Communities Development
Authority Environmental Facilities Revenue,
9.0%, 12/1/38 6,733
2,680,000(b) AA+/Aaa Golden State Tobacco Securitization Corp.,
6.75%, 6/1/39 2,797,973
2,500,000 NR/Ba1 Hesperia Public Financing Authority Tax
Allocation,
5.5%, 9/1/27 2,389,600
8,575,000(c) AA-/NR Lehman Municipal Trust Receipts General
Obligation, 12.866%, 7/28/31 10,569,202
3,140,000 AA-/WR Lehman Municipal Trust Receipts Revenue, RIB,
12.959%, 9/20/28 (144A) 3,998,602
1,500,000 A-/NR Madera Irrigation Financing Authority Water
Revenue, 6.25%, 1/1/31 1,686,555
1,500,000 A-/NR Madera Irrigation Financing Authority Water
Revenue, 6.5%, 1/1/40 1,697,760
2,500,000 A-/A2 San Jose California Airport Revenue, 5.0%, 3/1/37 2,625,225
7,000,000 B-/Caa1 Tobacco Securitization Authority of Northern
California Revenue, 5.375%, 6/1/38 5,691,000
10,500,000 AA-/NR University of California, RIB, 13.177%, 5/15/32 11,700,570
-----------------
$ 60,671,501
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 13
Schedule of Investments | 9/30/12 (unaudited) (continued)
------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
------------------------------------------------------------------------------------------------------------
Colorado -- 0.3%
$ 1,000,000 NR/NR Kremmling Memorial Hospital District Certificate
of Participation, 7.125%, 12/1/45 $ 1,118,750
------------------------------------------------------------------------------------------------------------
Connecticut -- 2.8%
7,750,000 BBB/Baa1 Connecticut State Development Authority Revenue,
5.75%, 11/1/37 $ 7,758,215
1,000,000 NR/NR Hamden Connecticut Facility Revenue,
7.75%, 1/1/43 1,094,240
-----------------
$ 8,852,455
------------------------------------------------------------------------------------------------------------
District of Columbia -- 3.1%
2,700,000 BBB/Baa1 District of Columbia Tobacco Settlement
Financing Corp., 6.5%, 5/15/33 $ 3,058,911
6,825,000 BBB/Baa1 District of Columbia Tobacco Settlement
Financing Corp., 6.75%, 5/15/40 6,960,886
-----------------
$ 10,019,797
------------------------------------------------------------------------------------------------------------
Florida -- 4.7%
1,500,000 NR/NR Alachua County Health Facilities Authority
Revenue, 8.125%, 11/15/41 $ 1,735,140
1,500,000 NR/NR Alachua County Health Facilities Authority
Revenue, 8.125%, 11/15/46 1,729,410
500,000 NR/Ba3 Capital Trust Agency Revenue Bonds,
7.75%, 1/1/41 557,120
1,000,000 NR/NR Florida Development Finance Corp., Educational
Facilities Revenue, 6.0%, 9/15/40 1,073,840
2,000,000 NR/NR Florida Development Finance Corp., Educational
Facilities Revenue, 7.625%, 6/15/41 2,320,560
1,000,000 NR/NR Florida Development Finance Corp., Educational
Facilities Revenue, 7.75%, 6/15/42 1,133,100
1,980,000 NR/NR Hillsborough County Industrial Development
Authority, 6.75%, 7/1/29 1,981,564
1,000,000(b) NR/WR Hillsborough County Industrial Development
Authority Revenue, 8.0%, 8/15/32 1,426,900
2,500,000 A-/A2 Miami-Dade County Florida Aviation Revenue,
5.5%, 10/1/41 2,856,750
-----------------
$ 14,814,384
------------------------------------------------------------------------------------------------------------
Georgia -- 4.3%
5,210,000 AA-/WR Atlanta Georgia Water and Wastewater Revenue,
RIB, 12.959%, 1/30/13 (144A) $ 5,825,718
1,000,000 CCC+/NR Clayton County Development Authority Revenue,
9.0%, 6/1/35 1,121,500
900,000 NR/NR DeKalb County Georgia Hospital Authority Revenue,
6.0%, 9/1/30 1,051,803
750,000 NR/NR DeKalb County Georgia Hospital Authority Revenue,
6.125%, 9/1/40 870,007
3,360,000 NR/NR Fulton County Residential Care Facilities for the
Elderly Authority, 7.0%, 7/1/29 3,026,554
The accompanying notes are an integral part of these financial statements.
14 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
------------------------------------------------------------------------------------------------------------
Georgia -- (continued)
$ 1,650,000 NR/NR Savannah Georgia Economic Development
Authority Revenue, 7.4%, 1/1/34 $ 1,688,379
-----------------
$ 13,583,961
------------------------------------------------------------------------------------------------------------
Guam -- 1.8%
1,000,000 B/NR Guam Government of Department Education
Certificates of Participation, 6.625%, 12/1/30 $ 1,092,610
4,400,000(b) AA+/B2 Northern Mariana Islands, 6.75%, 10/1/33 4,668,224
-----------------
$ 5,760,834
------------------------------------------------------------------------------------------------------------
Idaho -- 1.1%
2,000,000 BBB+/Baa1 Power County Industrial Development Corp.
Revenue, 6.45%, 8/1/32 $ 2,003,460
1,500,000 BBB+/Baa1 Power County Pollution Control Revenue,
5.625%, 10/1/14 1,501,395
-----------------
$ 3,504,855
------------------------------------------------------------------------------------------------------------
Illinois -- 6.6%
1,000,000 NR/Baa2 City of Country Club Hills General Obligation,
5.0%, 12/1/31 $ 1,034,840
1,450,000 A+/A1 Illinois Finance Authority Revenue, 5.5%, 4/1/39 1,583,965
1,605,000 AA-/Aa3 Illinois Finance Authority Revenue, 6.0%, 8/15/25 1,712,391
1,000,000(a) NR/NR Illinois Finance Authority Revenue,
6.0%, 11/15/27 302,510
280,000 BBB+/NR Illinois Finance Authority Revenue, 6.0%, 8/15/38 318,536
2,000,000 AA+/Aa2 Illinois Finance Authority Revenue, 6.0%, 8/15/39 2,352,760
2,500,000 NR/NR Illinois Finance Authority Revenue,
6.125%, 11/15/25 2,585,250
6,000,000 NR/NR Illinois Finance Authority Revenue,
8.25%, 5/15/45 6,559,020
2,500,000 NR/NR Illinois Finance Authority Revenue,
8.25%, 2/15/46 2,716,400
2,270,000 NR/NR Southwestern Illinois Development Authority
Revenue, 5.625%, 11/1/26 1,942,530
-----------------
$ 21,108,202
------------------------------------------------------------------------------------------------------------
Indiana -- 0.9%
250,000 NR/NR City of Carmel Indiana Nursing Home Revenue,
7.0%, 11/15/32 $ 252,753
750,000 NR/NR City of Carmel Indiana Nursing Home Revenue,
7.125%, 11/15/42 758,205
500,000 NR/NR City of Carmel Indiana Nursing Home Revenue,
7.125%, 11/15/47 503,700
250,000 NR/Baa3 East Chicago Indiana Exempt Facilities Revenue,
7.0%, 1/1/14 251,565
1,805,000 NR/NR Vincennes Industrial Economic Development
Revenue, 6.25%, 1/1/24 1,105,905
-----------------
$ 2,872,128
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 15
Schedule of Investments | 9/30/12 (unaudited) (continued)
------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
------------------------------------------------------------------------------------------------------------
Kansas -- 0.3%
$ 1,000,000 NR/A2 Kansas Development Finance Authority Revenue,
5.0%, 5/15/35 $ 1,090,510
------------------------------------------------------------------------------------------------------------
Kentucky -- 1.4%
4,390,000 BB/NR Kentucky Economic Development Finance
Authority Hospital System Revenue,
5.875%, 10/1/22 $ 4,393,205
------------------------------------------------------------------------------------------------------------
Louisiana -- 5.9%
5,000,000 BBB-/Baa2 Jefferson Parish Hospital Service Revenue,
6.375%, 7/1/41 $ 5,837,550
2,500,000 BBB-/Baa3 Louisiana Local Government Environmental
Facilities & Community Development Authority
Revenue, 6.75%, 11/1/32 2,817,450
6,000,000 NR/Baa1 Louisiana Public Facilities Authority Revenue,
5.5%, 5/15/47 6,323,940
750,000 BBB-/NR Opelousas Louisiana General Hospital Authority
Revenue, 5.75%, 10/1/23 771,720
2,915,000 A-/A3 Tobacco Settlement Financing Corp. Revenue,
5.875%, 5/15/39 2,973,009
-----------------
$ 18,723,669
------------------------------------------------------------------------------------------------------------
Maine -- 0.6%
1,500,000 NR/Baa3 Maine Health & Higher Educational Facilities
Authority Revenue, 7.5%, 7/1/32 $ 1,874,475
------------------------------------------------------------------------------------------------------------
Maryland -- 1.7%
460,000 NR/NR Maryland Health & Higher Educational Facilities
Authority Revenue, 5.25%, 1/1/27 $ 450,473
1,250,000 NR/NR Maryland Health & Higher Educational Facilities
Authority Revenue, 5.3%, 1/1/37 1,168,738
1,250,000 NR/Baa3 Maryland Health & Higher Educational Facilities
Authority Revenue, 5.75%, 7/1/38 1,360,662
2,000,000 NR/NR Maryland Health & Higher Educational Facilities
Authority Revenue, 6.25%, 1/1/45 2,312,160
-----------------
$ 5,292,033
------------------------------------------------------------------------------------------------------------
Massachusetts -- 9.5%
675,000 BB/NR Massachusetts Development Finance Agency
Revenue, 5.25%, 10/1/18 $ 675,209
8,000,000 A/WR Massachusetts Development Finance Agency
Revenue, 5.75%, 1/1/42 10,585,520
1,845,000 NR/NR Massachusetts Development Finance Agency
Revenue, 7.1%, 7/1/32 1,845,683
2,195,000 BBB-/Baa3 Massachusetts Health & Educational Facilities
Authority Revenue, 5.375%, 7/15/28 2,196,032
2,000,000 AAA/Aaa Massachusetts Health & Educational Facilities
Authority Revenue, 5.5%, 7/1/32 2,887,760
1,000,000 NR/Baa2 Massachusetts Health & Educational Facilities
Authority Revenue, 6.0%, 10/1/23 1,001,220
The accompanying notes are an integral part of these financial statements.
16 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
------------------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
$ 3,420,000(a) NR/NR Massachusetts Health & Educational Facilities
Authority Revenue, 6.5%, 1/15/38 $ 17,305
10,760,000 AA-/Aa3 Massachusetts Housing Finance Agency Revenue,
5.35%, 12/1/45 10,821,332
-----------------
$ 30,030,061
------------------------------------------------------------------------------------------------------------
Michigan -- 1.7%
2,000,000 NR/Ba1 Flint Michigan Hospital Building Authority
Revenue, 7.375%, 7/1/35 $ 2,335,760
2,235,000 BB+/NR Kent Hospital Finance Authority Revenue,
6.25%, 7/1/40 2,347,041
725,000 NR/NR Michigan Public Educational Facilities Authority
Revenue, 7.0%, 10/1/36 747,141
-----------------
$ 5,429,942
------------------------------------------------------------------------------------------------------------
Minnesota -- 0.4%
1,000,000 NR/NR Port Authority of the City of Bloomington,
Minnesota Recovery Zone Facility Revenue,
9.0%, 12/1/35 $ 1,190,760
------------------------------------------------------------------------------------------------------------
Missouri -- 1.1%
1,000,000 NR/NR Kansas City Tax Increment Financing Commission
Tax Increment Revenue, 6.5%, 6/1/25 $ 1,040,520
1,500,000(a)(d) NR/Ca St. Louis Industrial Development Authority
Revenue, 7.2%, 12/15/28 448,335
6,640,000(a)(d) NR/Ca St. Louis Industrial Development Authority
Revenue, 7.25%, 12/15/35 1,984,630
-----------------
$ 3,473,485
------------------------------------------------------------------------------------------------------------
Montana -- 0.7%
2,445,000(e) NR/NR Hardin Increment Industrial Infrastructure
Development Revenue, 0.0%, 9/1/31 $ 2,043,140
1,000,000(a)(d) NR/NR Two Rivers Authority Inc., Project Revenue,
7.375%, 11/1/27 148,970
-----------------
$ 2,192,110
------------------------------------------------------------------------------------------------------------
Nevada -- 1.5%
1,600,000(a)(d) NR/NR Director of the State of Nevada Department of
Business & Industry Transportation Revenue,
7.25%, 1/1/23 $ 16
1,000,000(a) NR/NR Director of the State of Nevada Department of
Business & Industry Transportation Revenue,
7.375%, 1/1/30 10
1,320,000(a)(d) NR/NR Director of the State of Nevada Department of
Business & Industry Transportation Revenue,
7.375%, 1/1/40 13
4,500,000 A-/A3 Reno Nevada Hospital Revenue, 5.25%, 6/1/41 4,757,085
-----------------
$ 4,757,124
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 17
Schedule of Investments | 9/30/12 (unaudited) (continued)
------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
------------------------------------------------------------------------------------------------------------
New Hampshire -- 0.4%
$ 1,125,000 NR/NR New Hampshire Health & Education Facilities
Authority Revenue, 5.875%, 7/1/34 $ 1,168,459
------------------------------------------------------------------------------------------------------------
New Jersey -- 12.0%
2,500,000 NR/NR Burlington County New Jersey Bridge Commission
Revenue, 5.625%, 1/1/38 $ 2,588,775
1,500,000 NR/NR New Jersey Economic Development Authority
Revenue, 10.5%, 6/1/32 (144A) 1,658,220
7,500,000 B-/B3 New Jersey Economic Development Authority
Revenue, 5.75%, 9/15/27 7,513,875
3,500,000(d) AA-/WR New Jersey State Turnpike Authority Transportation
Revenue, RIB, 13.555%, 7/1/23 (144A) 6,273,645
15,375,000(e) AA+/Aa1 New Jersey Transportation Trust Fund Authority
Revenue, 0.0%, 12/15/27 8,429,036
2,000,000 B-/B1 Tobacco Settlement Financing Corp., Revenue,
4.625%, 6/1/26 1,854,080
1,000,000(b) AA+/Aaa Tobacco Settlement Financing Corp., Revenue,
6.25%, 6/1/43 1,040,760
3,250,000(b) AA+/Aaa Tobacco Settlement Financing Corp., Revenue,
6.75%, 6/1/39 3,393,423
5,000,000(b) AA+/Aaa Tobacco Settlement Financing Corp., Revenue,
7.0%, 6/1/41 5,228,750
-----------------
$ 37,980,564
------------------------------------------------------------------------------------------------------------
New York -- 8.2%
1,730,000 NR/NR Dutchess County Industrial Development Agency
Revenue, 7.5%, 3/1/29 $ 1,780,239
7,000,000 BB/B2 New York City Industrial Development Agency
Revenue, 5.25%, 12/1/32 6,900,950
3,950,000 BB/B2 New York City Industrial Development Agency
Revenue, 7.625%, 12/1/32 4,027,499
5,000,000 AAA/Aaa New York State Dormitory Authority Revenue,
5.0%, 10/1/41 5,831,750
2,000,000 NR/Ba1 New York State Dormitory Authority Revenue,
6.125%, 12/1/29 2,209,660
5,000,000 AAA/Aaa New York State Environmental Facilities Corp.
Water Revenue, 5.0%, 6/15/33 5,157,400
-----------------
$ 25,907,498
------------------------------------------------------------------------------------------------------------
North Carolina -- 1.6%
5,010,000 NR/NR Charlotte North Carolina Special Facilities
Revenue, 7.75%, 2/1/28 $ 5,018,116
------------------------------------------------------------------------------------------------------------
Ohio -- 1.8%
1,500,000 NR/NR Adams County Hospital Facilities Revenue,
6.5%, 9/1/36 $ 1,204,080
5,000,000 B-/B3 Buckeye Tobacco Settlement Financing Authority
Revenue, 6.5%, 6/1/47 4,412,200
-----------------
$ 5,616,280
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
------------------------------------------------------------------------------------------------------------
Oklahoma -- 1.8%
$ 2,220,000(a) NR/WR Tulsa Municipal Airport Trust Revenue,
6.25%, 6/1/20 $ 2,330,756
3,000,000(a)(c) NR/WR Tulsa Municipal Airport Trust Revenue,
7.75%, 6/1/35 3,436,860
-----------------
$ 5,767,616
------------------------------------------------------------------------------------------------------------
Oregon -- 0.7%
2,000,000 A-/NR Oregon State Facilities Authority Revenue,
5.25%, 10/1/40 $ 2,213,160
------------------------------------------------------------------------------------------------------------
Pennsylvania -- 4.1%
2,000,000 BBB-/Ba1 Pennsylvania Economic Development Financing
Authority Revenue, 4.625%, 12/1/18 $ 2,029,660
1,000,000 BB/NR Pennsylvania Economic Development Financing
Authority Revenue, 5.125%, 6/1/18 1,000,350
5,000,000 B-/Caa2 Pennsylvania Economic Development Financing
Authority Solid Waste Disposal Revenue,
6.0%, 6/1/31 4,971,750
5,000,000 BBB-/Ba1 Philadelphia Hospitals & Higher Education
Facilities Authority Revenue, 5.0%, 7/1/34 5,060,800
-----------------
$ 13,062,560
------------------------------------------------------------------------------------------------------------
Rhode Island -- 3.6%
1,385,000(d) NR/NR Central Falls Rhode Island Detention Facility
Corp. Revenue, 7.25%, 7/15/35 $ 1,198,607
1,500,000 NR/NR Rhode Island Health & Educational Building
Corp., Revenue, 8.375%, 1/1/46 1,760,100
8,285,000 BB/Ba1 Tobacco Settlement Financing Corp. Revenue,
6.25%, 6/1/42 8,408,529
-----------------
$ 11,367,236
------------------------------------------------------------------------------------------------------------
South Carolina -- 4.7%
8,000,000(b) BBB+/Baa1 South Carolina Jobs Economic Development
Authority Revenue, 6.375%, 8/1/34 $ 8,410,720
4,400,000(f) BBB/WR Tobacco Settlement Revenue Management
Authority, 6.375%, 5/15/30 6,379,120
-----------------
$ 14,789,840
------------------------------------------------------------------------------------------------------------
Tennessee -- 2.9%
5,000,000 BBB+/Baa1 Johnson City Health & Educational Facilities Board
Hospital Revenue, 6.5%, 7/1/38 $ 5,988,550
3,000,000 BBB+/NR Sullivan County Health, Educational & Housing
Facilities Board Revenue, 5.25%, 9/1/36 3,141,540
-----------------
$ 9,130,090
------------------------------------------------------------------------------------------------------------
Texas -- 15.0%
2,400,000 BB+/Ba1 Central Texas Regional Mobility Authority Revenue,
6.75%, 1/1/41 $ 2,768,832
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 19
Schedule of Investments | 9/30/12 (unaudited) (continued)
------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
------------------------------------------------------------------------------------------------------------
Texas -- (continued)
$ 2,663,453(a)(d) NR/NR Gulf Coast Industrial Development Authority
Revenue, 7.0%, 12/1/36 $ 24,743
10,000,000 B-/B3 Houston Texas Airport System Special Facilities
Revenue, 6.75%, 7/1/29 10,040,600
595,000 NR/NR IAH Public Facility Corp., Facilities Revenue,
Series 2006, 6.0%, 5/1/16 580,506
1,000,000 NR/NR IAH Public Facility Corp., Facilities Revenue,
Series 2006, 6.0%, 5/1/21 908,810
1,350,000 NR/NR IAH Public Facility Corp., Facilities Revenue,
Series 2006, 6.125%, 5/1/26 1,190,754
3,000,000 NR/NR Jefferson County Industrial Development Corp.,
Revenue, 8.25%, 7/1/32 2,808,900
2,240,000 AA-/Aa3 Lower Colorado River Authority Power Revenue,
5.0%, 5/15/31 2,243,584
845,000 NR/NR Lubbock Health Facilities Development Corp.,
Nursing Home Revenue, 6.5%, 7/1/26 891,906
2,000,000 NR/NR Lubbock Health Facilities Development Corp.,
Nursing Home Revenue, 6.625%, 7/1/36 2,090,860
9,750,000 BBB+/A3 North Texas Tollway Authority Revenue,
5.75%, 1/1/33 10,839,270
1,711,000 NR/Aaa Panhandle Regional Housing Finance Corp.,
Multifamily Housing Revenue, 6.6%, 7/20/31 1,799,493
1,500,000 NR/NR Red River Health Facilities Development Corp.,
Revenue, 8.0%, 11/15/41 1,709,520
1,000,000 A+/A1 Richardson Hospital Authority Revenue,
6.0%, 12/1/34 1,027,190
3,000,000 NR/NR Sanger Industrial Development Corp., Revenue,
8.0%, 7/1/38 3,011,880
1,000,000 NR/NR Tarrant County Cultural Education Facilities
Finance Corp., Revenue, 8.125%, 11/15/39 1,114,350
1,500,000 NR/NR Tarrant County Cultural Education Facilities
Finance Corp., Revenue, 8.25%, 11/15/44 1,677,630
1,000,000(a)(d) D/NR Texas Midwest Public Facility Corp., Revenue,
9.0%, 10/1/30 409,650
2,500,000 NR/NR Travis County Health Facilities Development Corp.
Revenue, 7.125%, 1/1/46 2,623,100
-----------------
$ 47,761,578
------------------------------------------------------------------------------------------------------------
Virginia -- 0.8%
2,000,000 BBB+/Baa1 Washington County Industrial Development
Authority Revenue, 7.75%, 7/1/38 $ 2,492,980
------------------------------------------------------------------------------------------------------------
Washington -- 3.8%
1,125,000 BBB/A3 Tobacco Settlement Authority Revenue,
6.5%, 6/1/26 $ 1,166,051
1,500,000 NR/Baa3 Washington State Health Care Facilities Authority
Revenue, 5.5%, 12/1/39 1,603,665
The accompanying notes are an integral part of these financial statements.
20 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
------------------------------------------------------------------------------------------------------------
Washington -- (continued)
$ 2,000,000 BBB/Baa2 Washington State Health Care Facilities
Authority Revenue, 6.125%, 8/15/37 $ 2,210,900
2,000,000 BBB/Baa2 Washington State Health Care Facilities
Authority Revenue, 6.25%, 8/15/42 2,209,740
5,000,000 NR/NR Washington State Housing Finance Committee
Nonprofit Revenue, 5.625%, 1/1/27 5,045,600
-----------------
$ 12,235,956
------------------------------------------------------------------------------------------------------------
West Virginia -- 0.3%
750,000 NR/NR West Virginia Hospital Finance Authority
Hospital Revenue Bonds, 9.125%, 10/1/41 $ 923,295
------------------------------------------------------------------------------------------------------------
Wisconsin -- 3.1%
2,900,000(g) NR/NR Aztalan Township, 7.5%, 5/1/18 $ --
2,500,000 NR/NR Wisconsin Public Finance Authority Continuing
Care Retirement Community Revenue,
8.25%, 6/1/46 2,967,650
1,000,000(b) NR/NR Wisconsin State Health & Educational Facilities
Authority Revenue, 6.125%, 4/1/24 1,080,620
1,000,000(b) NR/NR Wisconsin State Health & Educational Facilities
Authority Revenue, 6.25%, 4/1/34 1,082,500
1,500,000 A+/A1 Wisconsin State Health & Educational Facilities
Authority Revenue, 6.625%, 2/15/39 1,757,475
1,500,000 NR/NR Wisconsin State Public Finance Authority
Revenue,
8.375%, 6/1/20 1,516,920
1,500,000 NR/NR Wisconsin State Public Finance Authority
Revenue,
8.625%, 6/1/47 1,578,540
-----------------
$ 9,983,705
------------------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT OBLIGATIONS
(Cost $397,566,309) $ 441,506,831
------------------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT
OBLIGATION -- 2.6% of Net Assets
13,000,000(c)(d) NR/NR Non-Profit Preferred Funding Trust I,
6.75%, 9/15/37 (144A) $ 8,210,150
------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED DEBT
OBLIGATION
(Cost $13,000,000) $ 8,210,150
------------------------------------------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET MUTUAL
FUND -- 0.8% of Net Assets
2,600,000 NR/NR BlackRock Liquidity Funds MuniFund Portfolio $ 2,600,000
------------------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT MONEY MARKET
MUTUAL FUND
(Cost $2,600,000) $ 2,600,000
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 21
Schedule of Investments | 9/30/12 (unaudited) (continued)
------------------------------------------------------------------------------------------------------------
Principal
Amount S&P/Moody's
USD ($) Ratings Value
------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 142.6%
(Cost $413,166,309) (h)(i) $ 452,316,981
------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 4.7% $ 14,893,358
------------------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (47.3)% $ (150,008,301)
------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS --100.0% $ 317,202,037
============================================================================================================
NR Security not rated by S&P or Moody's.
WR Rating withdrawn by either S&P or Moody's.
(144A) Security is exempt from registration under Rule 144A of the
Securities Act of 1933. Such securities may be resold normally to
qualified institutional buyers in a transaction exempt from
registration. At September 30, 2012, the value of these securities
amounted to $30,250,775, or 9.5% of total net assets applicable to
common shareowners.
RIB Residual Interest Bonds. The interest rate is subject to change
periodically and inversely based upon prevailing market rates. The
interest rate shown is the rate September 30, 2012.
(a) Security is in default and is non-income producing.
(b) Prerefunded bonds have been collateralized by U.S. Treasury or U.S.
Government Agency securities which are held in escrow to pay interest
and principal on the tax exempt issue and to retire the bonds in full
at the earliest refunding date.
(c) The interest rate is subject to change periodically. The interest is
shown is the rate at September 30, 2012.
(d) Indicates a security that has been deemed as illiquid. The aggregate
cost of illiquid securities is $29,084,559. The aggregate fair value
of $12,425,114 represents 3.9% of total net assets applicable to
common shareowners.
(e) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(f) Escrow to maturity.
(g) Security is valued using fair value methods.
The accompanying notes are an integral part of these financial statements.
22 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
(h) The concentration of investments by type of obligation/ market sector
is as follows:
Insured
FSA 6.1%
FSA-CR 2.3
AMBAC GO OF INSTN 2.3
BHAC-CR MBIA 1.9
AMBAC 1.0
GO OF INSTN 0.6
AGM 0.5
XLCA 0.5
GNMA COLL 0.4
ASSURED GTY 0.4
NATL-RE 0.2
Revenue Bonds:
Health Revenue 20.7
Tobacco Revenue 13.7
Facilities Revenue 12.6
Development Revenue 9.4
Other Revenue 8.6
Airport Revenue 6.1
Education Revenue 4.5
Pollution Control Revenue 3.8
Transportation Revenue 2.4
Water Revenue 1.9
Utilities Revenue 0.1
-----
100.0%
=====
(i) At September 30, 2012, the net unrealized gain on investments based
on cost for federal tax purposes of $412,818,326 was as follows:
Aggregate gross unrealized gain for all investments in which there
is an excess of value over tax cost $ 60,685,769
Aggregate gross unrealized loss for all investments in which there
is an excess of tax cost over value (21,267,114)
-------------
Net unrealized gain $ 39,418,655
=============
For financial reporting purposes net unrealized gain on investments was
$39,150,672 and cost of investments aggregated $413,166,309.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended September 30, 2012 aggregated $28,076,435 and $12,280,594,
respectively.
Principal amounts are denominated in U.S. dollars unless otherwise noted.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 23
Schedule of Investments | 9/30/12 (unaudited) (continued)
Various inputs are used in determining the value of the Trust's
investments. These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds credit risks,
etc.)
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 (other than prices supplied by independent pricing services) are
categorized as Level 3. See Notes to Financial Statements -- Note 1A
The following is a summary of the inputs used as of September 30, 2012, in
valuing the Trust's investments.
------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------------------
Tax exempt obligations $ -- $ 441,506,831 $ -- $ 441,506,831
Municipal collateralized debt obligation -- 8,210,150 -- 8,210,150
Tax exempt money market mutual fund 2,600,000 -- -- 2,600,000
------------------------------------------------------------------------------------------------------
Total $ 2,600,000 $ 449,716,981 $ -- $ 452,316,981
======================================================================================================
The following is a reconciliation of assets valued using significant
unobservable inputs (level 3):
-----------------------------------------------------------------------------------------------------------------------
Change in
Balance Realized Unrealized Accrued Transfers Transfers Balance
as of gain appreciation discounts/ in to out of as of
3/31/12 (loss) (depreciation) Purchases Sales premiums Level 3* Level 3* 9/30/12
-----------------------------------------------------------------------------------------------------------------------
Tax exempt
obligations $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --**
-----------------------------------------------------------------------------------------------------------------------
Total $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --**
-----------------------------------------------------------------------------------------------------------------------
* Transfers are calculated on the end of period value.
** Azatlan Township is fair valued at $0.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
Statement of Assets and Liabilities | 9/30/12 (unaudited)
ASSETS:
Investments in securities, at value (cost $413,166,309) $ 452,316,981
Cash 2,243,118
Receivables for --
Investment securities sold 3,000,000
Interest receivable 8,437,330
Reinvestment of distributions 158,148
Prepaid expenses 22,999
Other assets 1,524,000
------------------------------------------------------------------------------------------------------
Total assets $ 467,702,576
------------------------------------------------------------------------------------------------------
LIABILITIES:
Due to affiliates $ 220,880
Administration fee 73,469
Accrued expenses 192,896
Other liabilities 4,993
------------------------------------------------------------------------------------------------------
Total liabilities $ 492,238
------------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 6,000 shares,
including dividends payable of $8,301 $ 150,008,301
------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $ 331,728,016
Undistributed net investment income 6,526,374
Accumulated net realized loss on investments (60,203,025)
Net unrealized gain on investments 39,150,672
------------------------------------------------------------------------------------------------------
Net assets applicable to common shareowners $ 317,202,037
======================================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $317,202,037/23,345,818 common shares $ 13.59
======================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 25
Statement of Operations (unaudited)
For the Six Months Ended 9/30/12
INVESTMENT INCOME:
Interest $ 12,944,749
------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,382,372
Administration fees 100,227
Transfer agent fees and expenses 9,174
Shareowner communication expenses 7,236
Auction agent fees 186,536
Custodian fees 4,147
Registration fees 12,180
Professional fees 167,996
Printing expenses 14,219
Trustees' fees 8,464
Pricing fees 15,105
Miscellaneous 39,142
------------------------------------------------------------------------------------------------------
Total expenses $ 1,946,858
------------------------------------------------------------------------------------------------------
Net investment income $ 10,997,891
------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain from investments $ 572,608
Change in net unrealized gain from investments $ 18,240,160
------------------------------------------------------------------------------------------------------
Net gain on investments $ 18,812,768
------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM
NET INVESTMENT INCOME: $ (242,936)
------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common shareowners
resulting from operations $ 29,567,723
======================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------------------
Six Months
Ended
9/30/12 Year Ended
(unaudited) 3/31/12
------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 10,997,891 $ 25,127,884
Net realized gain (loss) on investments 572,608 (5,391,166)
Change in net unrealized gain (loss) on investments 18,240,160 41,794,771
Distributions to preferred shareowners from
net investment income (242,936) (417,488)
------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners resulting from operations $ 29,567,723 $ 61,114,001
------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income ($0.57 and $1.31 per share, respectively) $ (13,285,744) $ (30,307,904)
------------------------------------------------------------------------------------------------------
Total distributions to common shareowners $ (13,285,744) $ (30,307,904)
------------------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Conversion $ 351,771 $ --
Reinvestment of distributions $ 931,061 $ 1,961,141
------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners from Trust share transactions $ 1,282,832 $ 1,961,141
------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners $ 17,564,811 $ 32,767,238
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period 299,637,226 266,869,988
------------------------------------------------------------------------------------------------------
End of period $ 317,202,037 $ 299,637,226
------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 6,526,374 $ 9,057,163
======================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 27
Financial Highlights
----------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
9/30/12 Ended Ended Ended Ended Ended
(unaudited) 3/31/12 3/31/11 3/31/10 3/31/09 3/31/08
----------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $12.87 $11.54 $ 12.24 $ 9.23 $ 13.54 $ 15.91
----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:(a)
Net investment income $ 0.47 $ 1.08 $ 1.18 $ 1.18 $ 1.22 $ 1.29
Net realized and unrealized gain (loss) on
investments and interests rate swaps 0.83 1.58 (0.79) 2.83 (4.43) (2.51)
Distributions to preferred shareowners from:
Net investment income (0.01) (0.02) (0.03) (0.04) (0.20) (0.26)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.29 $ 2.64 $ 0.36 $ 3.97 $ (3.41) $ (1.48)
Distributions to common shareowners from:
Net investment income (0.57) (1.31) (1.06) (0.96) (0.90) (0.89)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.72 $ 1.33 $ (0.70) $ 3.01 $ (4.31) $ (2.37)
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period(b) $13.59 $12.87 $ 11.54 $12.24 $ 9.23 $ 13.54
----------------------------------------------------------------------------------------------------------------------------
Market value, end of period(b) $15.99 $14.72 $ 12.64 $13.10 $ 9.04 $ 13.74
============================================================================================================================
Total return at market value(c) 12.69% 28.48% 4.97% 57.76% (28.40)% (6.51)%
Ratios to average net assets of common shareowners:
Net expenses (d) 1.25%(e) 1.36% 1.35% 1.41% 1.38% 1.13%
Net investment income before preferred share
distributions 7.09%(e) 8.73% 9.54% 10.66% 10.70% 8.27%
Preferred share distributions 0.16%(e) 0.15% 0.25% 0.33% 1.76% 1.64%
Net investment income available to common shareowners 6.93%(e) 8.58% 9.29% 10.33% 8.94% 6.63%
Portfolio turnover 3% 15% 10% 8% 24% 12%
The accompanying notes are an integral part of these financial statements.
28 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
9/30/12 Ended Ended Ended Ended Ended
(unaudited) 3/31/12 3/31/11 3/31/10 3/31/09 3/31/08
------------------------------------------------------------------------------------------------------------------------------------
Net assets of common shareowners, end of period (in thousands) $317,202 $299,637 $266,870 $281,551 $211,147 $308,500
Preferred shares outstanding (in thousands) $150,008 $150,000 $150,000 $150,000 $150,000 $150,000
Asset coverage per preferred share, end of period $ 77,870 $ 74,941 $ 69,479 $ 71,926 $ 60,192 $ 76,427
Average market value per preferred share (f) $ 25,001 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per preferred
share $ 25,003 $ 25,001 $ 25,001 $ 25,001 $ 25,001 $ 25,010
Ratios to average net assets of common shareowners before
waivers and reimbursement of expenses
Net expenses (d) 1.25%(e) 1.36% 1.35% 1.41% 1.38% 1.13%
Net investment income before preferred share distributions 7.09%(e) 8.73% 9.54% 10.66% 10.70% 8.27%
Preferred share distributions 0.16%(e) 0.15% 0.25% 0.33% 1.76% 1.64%
Net investment income available to common shareowners 6.93%(e) 8.58% 9.29% 10.33% 8.94% 6.63%
====================================================================================================================================
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Net asset value and market value are published in Barron's on Saturday, The
Wall Street Journal on Monday and The New York Times on Monday and Saturday.
(c) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
market value on the last day of the periods reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Past
performance is not a guarantee of future results.
(d) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(e) Annualized.
(f) Market value is redemption value without an active market.
The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the periods indicated. This
information has been determined based upon financial information provided in the
financial statements and market value data for the Trust's common shares.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 29
Notes to Financial Statements | 9/30/12 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Municipal High Income Advantage Trust (the Trust) was organized as a
Delaware statutory trust on August 6, 2003. Prior to commencing operations on
October 20, 2003, the Trust had no operations other than matters relating to its
organization and registration as a diversified, closed-end management investment
company under the Investment Company Act of 1940, as amended. The investment
objective of the Trust is to seek a high level of current income exempt from
regular federal income tax, and the Trust may, as a secondary objective, also
seek capital appreciation to the extent that it is consistent with its primary
investment objective.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Trust to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the reporting
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 prices, market events, quotations from one or more brokers, Treasury
spreads, yields, maturities and ratings. Valuations may be supplemented by
dealers and other sources, as required. The values of interest rate swaps
are determined by obtaining dealer quotations. Equity securities that have
traded on an exchange are valued at the last sale price on the principal
exchange where they are traded. Equity securities that have not traded on
the date of valuation, or securities for which sale prices are not
available, generally are valued using the mean between the last bid and
asked prices. Short-term fixed income securities with remaining maturities
of sixty days or less generally are valued at amortized cost. Money market
mutual funds are valued at net asset value.
30 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
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.
Examples of a significant event might include political or economic news,
corporate restructurings, natural disasters, terrorist activity or trading
halts. Thus, the valuation of the Trust's securities may differ from
exchange prices.
At September 30, 2012, one security was valued using fair value methods (in
addition to securities valued using prices supplied by independent pricing
services) representing 0.0% of net assets. Inputs used when applying fair
value methods to value a security may include credit ratings, the financial
condition of the company, current market conditions and comparable
securities.
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis with a
corresponding increase or decrease in the cost basis of the security.
Interest income, including interest on income bearing cash accounts, is
recorded on an accrual basis.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Trust becomes aware of the ex-dividend data in
the exercise of reasonable diligence.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years remain subject to examination by
federal and state tax authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Trust's distributions may be
shown in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain (loss) on investment
transactions, or as from paid-in capital, depending on the type of book/tax
differences that may exist.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 31
The tax character of current year distributions payable to common and
preferred shareowners will be determined at the end of the current taxable
year. The tax character of distributions paid during the year ended March
31, 2012 was as follows:
--------------------------------------------------------------------------------
2012
--------------------------------------------------------------------------------
Distribution paid from:
Tax exempt income $ 26,664,988
Ordinary income 4,060,404
--------------------------------------------------------------------------------
Total taxable distribution $ 30,725,392
================================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at March 31, 2012:
--------------------------------------------------------------------------------
2012
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 9,047,860
Undistributed ordinary income 960,017
Capital loss carryforward (55,783,255)
Post-October loss deferred (6,203,339)
Dividends payable (7,736)
Unrealized appreciation 21,178,495
--------------------------------------------------------------------------------
Total $ (30,807,958)
================================================================================
The difference between book-basis and tax-basis unrealized appreciation is
primarily attributable to the difference between book and tax amortization
methods for premiums and discounts on fixed income securities, the
difference between book and tax accounting for swap agreements, book/tax
difference in accrual of income on securities in default, and other
temporary differences.
C. Automatic Dividend Reinvestment Plan
All common shareowners whose shares are registered in their own names
automatically participate in the Automatic Dividend Reinvestment Plan (the
Plan), under which participants receive all dividends and capital gain
distributions (collectively, dividends) in full and fractional common shares
of 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.
32 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate in
the Plan on the shareowner's behalf. If the firm or nominee does not offer
the Plan, dividends will be paid in cash to the shareowner of record. A firm
or nominee may reinvest a shareowner's cash dividends in common shares of
the Trust on terms that differ from the terms of the Plan.
Whenever the Trust declares a dividend on common shares payable in cash,
participants in the Plan will receive the equivalent in common shares
acquired by the Plan Agent either (i) through receipt of additional unissued
but authorized common shares from the Trust or (ii) by purchase of
outstanding common shares on the New York Stock Exchange or elsewhere. If,
on the payment date for any dividend, the net asset value per common share
is equal to or less than the market price per share plus estimated brokerage
trading fees (market premium), the Plan Agent will invest the dividend
amount in newly issued common shares. The number of newly issued common
shares to be credited to each account will be determined by dividing the
dollar amount of the dividend by the net asset value per common share on the
date the shares are issued, provided that the maximum discount from the then
current market price per share on the date of issuance does not exceed 5%.
If, on the payment date for any dividend, the net asset value per common
share is greater than the market value (market discount), the Plan Agent
will invest the dividend amount in common shares acquired in open-market
purchases. There are no brokerage charges with respect to newly issued
common shares. However, each participant will pay a pro rata share of
brokerage trading fees incurred with respect to the Plan Agent's open-market
purchases. Participating in the Plan does not relieve shareowners from any
federal, state or local taxes which may be due on dividends paid in any
taxable year. Shareowners holding Plan shares in a brokerage account may not
be able to transfer the shares to another broker and continue to participate
in the Plan.
D. Risks
At times, the Trust's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Trust more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. Information regarding the
Trust's principal risks is contained in the Trust's original offering
prospectus, with additional information included in the Trust's shareowner
reports issued from time to time. Please refer to those documents when
considering the Trust's principal risks.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 33
The Trust may invest in both investment grade and below investment grade
(high-yield) municipal securities with a broad range of maturities and
credit ratings. Debt securities rated below investment grade are commonly
referred to as "junk bonds" and are considered speculative. These securities
involve greater risk of loss, are subject to greater price volatility, and
are less liquid, especially during periods of economic uncertainty or
change, than higher rated debt securities.
2. Management Agreement
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 period ended September 30, 2012, the net management fee was 0.60%
of the Trust's average daily managed assets, which was equivalent to 0.91% of
the Trust's average daily net assets attributable to the common shareowners.
In addition, under PIM's management and administration agreements, certain other
services and costs are paid by PIM and reimbursed by the Trust. At September 30,
2012, $294,349 was payable to PIM related to management costs, administrative
costs and certain other reimbursements and is included in "Due to affiliates"
and "Administration fee" on the Statement of Assets and Liabilities.
Effective April 1, 2012, PIM has retained Brown Brothers Harriman & Co. (BBH) to
provide certain administrative and accounting services to the Trust on its
behalf. For such services, PIM pays BBH a monthly fee at an annual rate of
0.025% of the Trust's average daily managed assets subject to a minimum monthly
fee of $6,250. Previously, PIM had retained State Street Bank and Trust Company
(State Street) to provide such services. PIM paid State Street a monthly fee at
an annual rate of 0.07% of the Trust's average daily managed assets in excess up
to $500 million, subject to a minimum monthly fee of $10,000. Neither BBH nor
State Street received compensation directly from the Trust for providing such
services.
34 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
3. Transfer Agents
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly owned
indirect subsidiary of UniCredit, through a sub-transfer agency agreement with
American Stock Transfer & Trust Company, provides substantially all transfer
agent and shareowner services related to the Trust's common shares at negotiated
rates. Deutsche Bank Trust Company Americas (Deutsche Bank) is the transfer
agent, registrar, dividend paying agent and auction agent with respect to the
Trust's Auction Preferred Shares (APS). The Trust pays Deutsche Bank an annual
fee, as is agreed to from time to time by the Trust and Deutsche Bank, for
providing such services.
In addition, the Trust reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareowner communications activities such as proxy and
statement mailings and outgoing phone calls.
4. Expense Offset Agreements
The Trust has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Trust's custodian expenses. For the six months ended September 30, 2012, the
Trust expenses were not reduced under such arrangement.
5. Interest Rate Swaps
The Trust may enter into interest rate swap transactions to attempt to protect
itself from increasing dividend or interest expense on its leverage resulting
from increasing short-term interest rates. The cost of leverage may rise with an
increase in interest rates, generally having the effect of lower yields and
potentially lower dividends to common shareowners. Interest rate swaps can be
used to "lock in" the cost of leverage and reduce the negative impact that
rising short-term interest rates would have on the Trust's leveraging costs.
An interest rate swap is an agreement between two parties, which involves
exchanging floating rate and fixed rate interest payments for a specified period
of time. Interest rate swaps involve the accrual of the net interest payments
between the parties on a daily basis, with the net amount recorded within the
unrealized appreciation/depreciation of interest rate swaps on the Statement of
Assets and Liabilities. Once the interim payments are settled in cash, at the
predetermined 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
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 35
the other party to the interest rate swap. Risks may also arise with regard to
market movements in the value of the swap arrangement that do not exactly offset
the changes in the related dividend requirement or interest expense on the
Trust's leverage.
There were no interest rate swap contracts open during the six
months ended September 30, 2012 or outstanding at September 30, 2012.
6. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the periods
ended September 30, 2012 and March 31, 2012 were as follows:
--------------------------------------------------------------------------------
9/30/12 3/31/12
--------------------------------------------------------------------------------
Shares outstanding at beginning of period 23,282,302 23,133,791
Reinvestment of distributions 63,516 148,511
--------------------------------------------------------------------------------
Shares outstanding at end of period 23,345,818 23,282,302
================================================================================
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, 2012, 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 0.26% to 0.45% during the period ended
September 30, 2012.
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.
36 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
The APS are redeemable at the option of the Trust, in whole or in part, on any
dividend payment date at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared. The APS are also subject to mandatory
redemption at $25,000 per share plus any accumulated or unpaid dividends,
whether or not declared, if certain requirements relating to the composition of
the assets and liabilities of the Trust as set forth in the Statement of
Preferences are not satisfied.
The holders of APS have voting rights equal to the holders of the Trust's common
shares (one vote per share) and will vote together with holders of the common
shares as a single class. Holders of APS are also entitled to elect two of the
Trust's Trustees. In addition, the Investment Company Act of 1940, as amended,
requires that along with approval by shareowners that might otherwise be
required, the approval of the holders of a majority of any outstanding preferred
shares, voting separately as a class, would be required to (a) adopt any plan of
reorganization that would adversely affect the preferred shares and (b) take any
action requiring a vote of security holders, including, among other things,
changes in the Trust's subclassification as a closed-end management investment
company or changes in its fundamental investment restrictions.
7. Subsequent Events
The Board of Trustees of the Trust declared on October 4, 2012 a dividend from
undistributed net investment income of $0.095 per common share payable October
31, 2012, to common shareowners of record on October 16, 2012.
Subsequent to September 30, 2012, dividends declared and paid on preferred
shares totaled $45,503 in aggregate for the two outstanding preferred share
series through November 7, 2012.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 37
ADDITIONAL INFORMATION (unaudited)
During the period, there have been no material changes in the Trust's investment
objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust which has not been
approved by the shareowners. During the period, there have been no changes in
the principal risk factors associated with investment in the Trust. There were
no changes in the persons who are primarily responsible for the day-to-day
management of the Trust's portfolio.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its common
shares in the open market.
Results of Shareholder Meeting (unaudited)
At the annual meeting of shareowners held on September 18, 2012, shareowners of
Pioneer Municipal High Income Advantage were asked to consider the proposal
described below. A report of the total votes cast by the Trust's shareholders
follows:
Proposal 1 -- To elect Class III Trustee.
--------------------------------------------------------------------------------
Nominee For Withheld
--------------------------------------------------------------------------------
Thomas J. Perna 20,967,863.608 589,715.000
Marguerite A. Piret* 3,635.000 53.000
* Elected by preferred shares only
38 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman John F. Cogan, Jr., President*
David R. Bock Daniel K. Kingsbury, Executive
John F. Cogan, Jr. Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer**
Margaret B.W. Graham Christopher J. Kelley, Secretary
Daniel K. Kingsbury
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at http://www.sec.gov.
* Chief Executive Officer of the Trust
** Chief Financial and Accounting Officer of the Trust
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 39
This page for your notes.
40 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
This page for your notes.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 41
This page for your notes.
42 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
This page for your notes.
Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12 43
This page for your notes.
44 Pioneer Municipal High Income Advantage Trust | Semiannual Report | 9/30/12
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-225-6292
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
web site us.pioneerinvestments.com.
The Trust files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2012 Pioneer Investments 19435-06-1112
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, 2012
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, 2012
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date November 29, 2012
* Print the name and title of each signing officer under his or her signature.