Terrence J. Cullen, Amundi Pioneer Asset Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Municipal High
Income Trust
Semiannual Report | October 31, 2019
Ticker Symbol: MHI
Beginning in April 2021, as permitted by regulations adopted by the Securities
and Exchange Commission, paper copies of the Trust's shareholder reports like
this one will no longer be sent by mail, unless you specifically request paper
copies of the reports from the Trust or from your financial intermediary, such
as a broker-dealer, bank or insurance company. Instead, the reports will be
made available on the Trust's website, and you will be notified by mail each
time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. You may elect
to receive shareholder reports and other communications electronically by
contacting your financial intermediary or, if you invest directly with the
Trust, by calling 1-800-710-0935.
You may elect to receive all future reports in paper free of charge. If you
invest directly with the Trust, you can inform the Trust that you wish to
continue receiving paper copies of your shareholder reports by calling
1-800-710-0935. If you invest through a financial intermediary, you can contact
your financial intermediary to request that you continue to receive paper
copies of your shareholder reports. Your election to receive reports in paper
will apply to all funds held in your account if you invest through your
financial intermediary or all funds held within the Pioneer Fund complex if you
invest directly.
[LOGO] Amundi Pioneer
ASSET MANAGEMENT
visit us: www.amundipioneer.com/us
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 11
Prices and Distributions 13
Performance Update 14
Schedule of Investments 15
Financial Statements 25
Financial Highlights 28
Notes to Financial Statements 30
Approval of Investment Management Agreement 39
Trustees, Officers and Service Providers 44
|
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 1
President's Letter
Since 1928, active portfolio management based on in-depth, fundamental
research, has been the foundation of Amundi Pioneer's investment approach. We
believe an active management investment strategy is a prudent approach to
investing, especially during periods of market volatility, which can result
from any number of risk factors, including slow U.S. economic growth, rising
interest rates, and geopolitical factors. Of course, in today's global economy,
risk factors extend well beyond U.S. borders. In fact, it's not unusual for
political and economic issues on the international front to cause or contribute
to volatility in U.S. markets.
At Amundi Pioneer, each security under consideration is researched by our team
of experienced investment professionals, who communicate directly with the
management teams of those companies. At the end of this research process, if we
have conviction in a company's business model and management team, and regard
the security as a potentially solid investment opportunity, an Amundi Pioneer
portfolio manager makes an active decision to invest in that security. The
portfolio resulting from these decisions represents an expression of his or her
convictions, and strives to balance overall risk and return opportunity.
As an example, the Standard & Poor's 500 Index -- the predominant benchmark for
many U.S. Large-Cap Core Equity funds -- has 500 stocks. An Amundi Pioneer
portfolio manager chooses to invest in only those companies that he or she
believes can offer the most attractive opportunities to pursue the fund's
investment objective, thus potentially benefiting the fund's shareowners. This
process results in a portfolio that does not own all 500 stocks, but a much
narrower universe.
The same active decision to invest in a company is also applied when we decide
to sell a security, due to changing fundamentals, valuation concerns, or market
risks. We apply this active decision-making across all of our equity,
fixed-income, and global portfolios.
Today, as investors, we have many options. It is our view that active
management can serve shareholders well, not only when markets are thriving, but
also during periods of market volatility and uncertainty, thus making it a
compelling investment choice. As you consider the many choices today, we
encourage you to work with your financial advisor to develop an overall
investment plan that addresses both your short- and long-term goals, and to
implement such a plan in a disciplined manner.
2 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
October 31, 2019
|
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. Past performance is no
guarantee of future results.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 3
Portfolio Management Discussion | 10/31/19
The municipal bond market generated solidly positive results over the six-month
period ended October 31, 2019, buoyed by strong flows into municipal bond funds
from both domestic and international investors. In the following interview,
David Eurkus and Jonathan Chirunga discuss the factors that influenced the
performance of Pioneer Municipal High Income Trust during the six-month period.
Mr. Eurkus, a Managing Director, Director of Municipals, and a portfolio
manager at Amundi Pioneer Asset Management (Amundi Pioneer), and Mr. Chirunga,
a Managing Director, Deputy Director of Municipals, and a portfolio manager at
Amundi Pioneer, are responsible for the day-to-day management of the Trust.
Q How did Pioneer Municipal High Income Trust perform during the six-month
period ended October 31, 2019?
A Pioneer Municipal High Income Trust returned 4.95% at net asset value
(NAV) and 4.34% at market price during the six-month period ended October
31, 2019. During the same six-month period, the Trust's benchmarks, the
Bloomberg Barclays U.S. Municipal High Yield Bond Index and the Bloomberg
Barclays Municipal Bond Index, returned 5.28% and 3.54% at NAV,
respectively. The Bloomberg Barclays U.S. Municipal High Yield Bond Index
is an unmanaged measure of the performance of lower-rated municipal bonds,
while the Bloomberg Barclays Municipal Bond Index is an unmanaged measure
of the performance of investment-grade municipal bonds. Unlike the Trust,
the two indices do not use leverage. While use of leverage increases
investment opportunity, it also increases investment risk.
During the same six-month period, the average return at NAV of the 15
closed-end funds in Morningstar's High Yield Municipal Debt Closed End
Funds category (which may or may not be leveraged) was 4.42%, and the
average return at market price of the 15 closed-end funds in the same
Morningstar category was 5.78%.
The shares of the Trust were selling at a 6.4% discount to NAV on October
31, 2019. Comparatively, the shares of the Trust were selling at a 5.8%
discount to NAV on April 30, 2019.
On October 31, 2019, the standardized 30-day SEC yield of the Trust's
shares was 2.59%*.
* The 30-day SEC yield is a standardized formula that is based on the
hypothetical annualized earning power (investment income only) of the
Trust's portfolio securities during the period indicated.
4 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
Q How would you describe the investment environment in the municipal bond
market during the six-month period ended October 31, 2019?
A The investment environment for municipal bonds was extremely favorable
over the six-month period. Several factors contributed to the positive
conditions in the municipal market, including declines in medium- and
longer-term U.S. Treasury rates and a shift to a more accommodative stance
on monetary policy by the U.S. Federal Reserve System (Fed), which lowered
interest rates three times, in July, September, and the end of October,
after increasing rates several times during 2018. Strong demand for
tax-free bonds in a market with limited supply and the continuing effects
on the municipal market from the U.S. tax legislation passed in late 2017
were other positive drivers of solid performance of municipal bonds over
the six-month period.
Fixed-income yields fell during the six-month period on investor concerns
over how U.S.-China trade tensions would hurt the already slowing global
economy. Aside from the Fed's three rate cuts, other global central banks,
including the European Central Bank, also reacted to trade concerns by
enacting stimulus measures such as interest-rate reductions and bond
purchases. The spring and summer saw periods when the Treasury yield curve
inverted for the first time since 2007, as long-term rates declined and
the curve took on a negative slope. The historical perception of an
inverted yield curve is that it is often a leading indicator of an
economic downturn or a prolonged slowdown, and so that development only
served to increase uncertainty in the markets.
During the six-month period, the municipal bond market benefited from
steady investor demand as inflows to tax-free municipal funds surged and
remained strong. As noted earlier, the U.S. tax bill passed in December
2017 (effective January 1, 2018) has provided a boost to the tax-free bond
market. Under the terms of the legislation, interest income earned on
"advance refunding bonds" issued on or after the law's effective date is
now considered taxable, whereas prior to the law's passage, the interest
income was considered tax exempt. Advance refunding bonds are issued to
retire, or pre-refund, another outstanding bond more than 90 days in
advance of the original bond's maturity date. Traditionally,
municipalities have issued advance refunding bonds to refinance debt at
lower rates and to delay repayment of principal. The elimination of the
tax exemption on interest
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 5
income earned on advance refunding bonds has made such bonds a less
attractive investment option and has effectively removed approximately one
quarter of the prior municipal supply from the tax-exempt marketplace.
That, in turn, has helped drive up the prices of tax-free bonds. In
addition, the concurrently enacted federal limits on state and local tax
(SALT) deductions by taxpayers -- now capped at $10,000 -- have
dramatically increased demand for municipal investments in high tax
states.
State and local governments enjoyed strong tax collections and revenues
over the period, but reduced federal spending on infrastructure has forced
municipalities to finance more of their own infrastructure projects. Much
of the spending has been in cash rather than from municipal financing
because of state officials' concerns about a possible U.S. economic
slowdown, given that many states with large amounts of outstanding
municipal debt were caught off guard by the last big downturn a decade
ago. The use of cash instead of financing has negatively affected
municipal supply.
In light of negative yields available on a host of fixed-income
investments internationally, the tax-exempt bond market not only saw
demand from traditional investors during the six-month period, but also
from non-traditional buyers, including global insurance companies looking
for relative safety, a low default rate, and attractive bond valuations
versus taxable bonds.
In late September through early October, the recent trend of declining
rates was briefly interrupted due to several factors, including rumors
that a U.S./China trade deal was imminent, Fed Chairman Powell's statement
that rate reductions by the Fed would be "on hold" in the months to come,
and an increase in issuance of taxable municipal bonds. Rates then resumed
their downward trend, especially in light of the fact that a U.S./China
trade deal once again failed to materialize.
Q What factors affected the Trust's performance relative to the Bloomberg
Barclays municipal bond indices during the six-month period ended October
31, 2019?
A We maintained a well-diversified** portfolio during the six-month period,
with exposures to both investment-grade and high-yield municipal bonds.
The diversification helped the Trust's NAV return to outperform the
Bloomberg Barclays Municipal Bond Index, which tracks investment-grade
municipals, even as the Trust's NAV return lagged that of the Bloomberg
Barclays U.S. Municipal High Yield Bond Index.
** Diversification does not assure a profit nor protect against loss.
6 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
During the six-month period, holdings of District of Columbia (D.C.)
tobacco bonds funded by a Master Settlement Agreement between the tobacco
industry and the District, as well as two sets of Massachusetts education
bonds, were the biggest contributors to the Trust's benchmark-relative
performance. The D.C. tobacco bonds rose in price on market-driven
improvement, as tobacco bonds in general appreciated over the six-month
period. In addition, the D.C. tobacco bonds are zero coupons, which can
potentially offer investors more yield than tobacco bonds with regular
coupons (interest payments). The Massachusetts holdings are
longer-duration bonds with no call provisions that benefited from the
declining interest-rate environment over the six-month period. (Duration
is a measure of the sensitivity of the price, or the value of principal,
of a fixed-income investment to a change in interest rates, expressed as a
number of years.)
Conversely, the portfolio's holdings of bonds of continuing care
retirement facilities (CCRC's) in Carmel, Indiana, Bartlett, Illinois, and
Langhorne Manor, Pennsylvania detracted most from the Trust's
benchmark-relative returns. All three bonds declined in value during the
six-month period due to credit-quality deterioration. With regard to the
Carmel bond, we were in the process of selling the position from the
Trust's portfolio during the period, which further drove down the bond
price. The portfolio still holds the Bartlett CCRC bond, which is
currently going through a restructuring into a lower-coupon issue.
Finally, the Langhorne Manor CCRC bond's deterioration was due primarily
to continuing legal challenges.
Q Did the Trust's distributions*** to shareholders change during the
six-month period ended October 31, 2019?
A No, the Trust's distributions remained the same over the six-month period.
Q Did the level of leverage in the Trust change during the six-month period
ended October 31, 2019?
A The level of leverage in the Trust remained consistent during the
six-month period. As of October 31, 2019, 29.8% of the Trust's total
managed assets were financed by leverage obtained through the issuance of
Variable Rate Muni Fund Term Preferred Shares, compared with 30.3% of the
Trust's total managed assets financed by leverage at the start of the
period on May 1, 2019. The slight change in the percentage of the Trust's
total managed assets financed by leverage during the six-month period was
the result of an increase in the value of the Trust's total managed
assets.
*** Distributions are not guaranteed.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 7
Q Did the Trust invest in any derivative securities during the six-month
period ended October 31, 2019?
A No, the Trust did not invest in derivative securities during the six-month
period.
Q What is your investment outlook?
A Our outlook for the investment-grade and high-yield municipal markets
remains positive. We believe that healthy demand from both traditional and
non-traditional investors drawn to the market by the attractive value of
municipal bonds -- as compared with taxable debt -- can continue to
outstrip limited new-issue supply and help to support the prices of
higher-yielding securities. At the same time, we think that the U.S.
economy should continue to grow at a modest pace without an accompanying
acceleration in inflation.
Given that economic scenario, we believe municipal bonds with solid credit
characteristics should remain strong performers going forward. However, we
also believe that escalating trade disputes between the U.S. and its key
trading partners as well as other geopolitical events could spur
additional volatility within financial markets in the coming months.
Consistent with our investment discipline in managing the Trust, we intend
to focus on intensive, fundamental research when selecting individual bond
issues, while maintaining a close watch on any economic factors that could
influence the broad municipal market. We do not anticipate any significant
changes to either the portfolio's positioning or structure in the near
future.
8 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
Please refer to the Schedule of Investments on pages 15-24 for a full listing
of Trust securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
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 debt securities held by the Trust will
generally fall. Conversely, when interest rates fall the prices of debt
securities held by the Trust generally will rise.
A general rise in interest rates could adversely affect the price and liquidity
of fixed income securities.
By concentrating in municipal securities, the Trust 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 may invest up to 20% of its total assets in illiquid securities.
Illiquid securities may be difficult to dispose of at a price reflective of
their value at the times when the Trust believes it is desirable to do so, and
the market price of illiquid securities is generally more volatile than that of
more liquid securities. Illiquid securities are also more difficult to value
and investment of the Trust's assets in illiquid securities may restrict the
Trust's ability to take advantage of market opportunities.
The Trust uses leverage through the issuance of preferred shares. Leverage
creates significant risks, including the risk that the Trust's incremental
income or capital appreciation for investments purchased with the proceeds of
leverage will not be sufficient to cover the cost of the leverage, which may
adversely affect the return for the holders of common shares.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 9
The Trust is required to maintain certain regulatory, rating agency and other
asset coverage requirements in connection with its outstanding preferred
shares. In order to maintain required asset coverage levels, the Trust may be
required to alter the composition of its investment portfolio or take other
actions, such as redeeming preferred shares with the proceeds from portfolio
transactions, at what might be inopportune times in the market. Such actions
could reduce the net earnings or returns to holders of the Trust's common
shares over time, which is likely to result in a decrease in the market value
of the Trust's shares.
These risks may increase share price volatility.
Any information in this shareholder 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. Past performance is no
guarantee of future results.
10 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
Portfolio Summary | 10/31/19
Portfolio Diversification
(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
General Obligation 34.8%
Education Revenue 19.3%
Health Revenue 15.3%
Tobacco Revenue 9.3%
Development Revenue 8.5%
Transportation Revenue 5.3%
Water Revenue 4.8%
Facilities Revenue 1.5%
Utilities Revenue 1.1%
Other Revenue 0.1%
|
State Diversification
(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Illinois 9.91%
Massachusetts 9.73%
Washington 7.24%
New York 6.93%
Texas 6.31%
Virginia 5.79%
California 4.91%
Wisconsin 4.48%
District of Columbia 3.81%
Ohio 3.77%
Minnesota 3.53%
Florida 3.40%
Connecticut 2.42%
Pennsylvania 2.35%
Georgia 2.27%
Michigan 2.21%
Arizona 2.04%
Rhode Island 2.04%
New Jersey 1.71%
Oregon 1.66%
Colorado 1.62%
Maine 1.58%
North Carolina 1.45%
Kentucky 1.25%
Idaho 1.22%
New Mexico 1.02%
Puerto Rico 0.92%
Indiana 0.90%
South Carolina 0.79%
North Dakota 0.67%
Mississippi 0.57%
Louisiana 0.56%
Maryland 0.36%
Utah 0.29%
New Hampshire 0.26%
Montana 0.03%
|
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 11
Portfolio Summary | 10/31/19 (continued)
10 Largest Holdings
(As a percentage of total investments)*
1. Metropolitan Pier & Exposition Authority, McCormick Place, 5.65%, 6/15/22
(NATL-RE Insured) 4.11%
-------------------------------------------------------------------------------------------------------------
2. State of Washington, Motor Vehicle Sales Tax, Series C, 6/1/22 (NATL Insured) 3.37
-------------------------------------------------------------------------------------------------------------
3. Massachusetts Development Finance Agency, WGBH Foundation, Series A,
5.75%, 1/1/42 (AMBAC Insured) 2.67
-------------------------------------------------------------------------------------------------------------
4. New York State Dormitory Authority, Series A, 4.0%, 7/1/41 2.20
-------------------------------------------------------------------------------------------------------------
5. New York State Dormitory Authority, Series C, 5.0%, 3/15/39 2.07
-------------------------------------------------------------------------------------------------------------
6. Massachusetts Development Finance Agency, Harvard University, Series A, 5.0%, 7/15/40 1.77
-------------------------------------------------------------------------------------------------------------
7. State of Minnesota, Series B, 4.0%, 8/1/27 1.71
-------------------------------------------------------------------------------------------------------------
8. Tobacco Securitization Authority of Southern California, Series A-1, 5.0%, 6/1/37 1.64
-------------------------------------------------------------------------------------------------------------
9. District of Columbia Tobacco Settlement Financing Corp., Asset-Backed, 6.75%, 5/15/40 1.54
-------------------------------------------------------------------------------------------------------------
10. Buckeye Tobacco Settlement Financing Authority, Asset-Backed, Series A-2, 6.5%, 6/1/47 1.50
-------------------------------------------------------------------------------------------------------------
|
* Excludes temporary cash investments and all derivative contracts except
for options purchased. The Trust is actively managed, and current holdings
may be different. The holdings listed should not be considered
recommendations to buy or sell any securities.
12 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
Prices and Distributions | 10/31/19
Market Value per Common Share^
--------------------------------------------------------------------------------
10/31/19 4/30/19
--------------------------------------------------------------------------------
Market Value $12.13 $11.91
--------------------------------------------------------------------------------
Discount (6.4)% (5.8)%
--------------------------------------------------------------------------------
|
Net Asset Value per Common Share^
--------------------------------------------------------------------------------
10/31/19 4/30/19
--------------------------------------------------------------------------------
Net Asset Value $12.96 $12.65
--------------------------------------------------------------------------------
|
Distributions per Common Share:
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
5/1/19 -- 10/31/19 $0.3000 $ -- $ --
--------------------------------------------------------------------------------
|
Yields
--------------------------------------------------------------------------------
10/31/19 4/30/19
--------------------------------------------------------------------------------
30-Day SEC Yield 2.59% 3.47%
--------------------------------------------------------------------------------
|
The data shown above represents past performance, which is no guarantee of
future results.
^ 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. Net asset value and market value are published daily on the
Trust's website at www.amundipioneer.com/us.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 13
Performance Update | 10/31/19
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 Trust during the periods shown,
compared to that of the Bloomberg Barclays Municipal Bond Index and Bloomberg
Barclays U.S. Municipal High Yield Bond Index.
Average Annual Total Returns
(As of October 31, 2019)
-------------------------------------------------------------
BBG
BBG Barclays
Barclays U.S.
Net Municipal Municipal
Asset Bond High Yield
Value Market Index Bond Index
Period (NAV) Price (NAV) (NAV)
-------------------------------------------------------------
10 years 6.93% 6.19% 4.40% 7.18%
5 years 5.05 1.16 3.55 6.11
1 year 12.13 18.48 9.42 11.65
-------------------------------------------------------------
|
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Municipal Bloomberg Barclays Bloomberg Barclays U.S. Municipal
High Income Trust Municipal Bond Index High Yield Bond Index
10/09 $10,000 $10,000 $10,000
10/10 $11,698 $10,778 $11,386
10/11 $12,184 $11,185 $11,769
10/12 $14,197 $12,195 $13,762
10/13 $13,639 $11,986 $13,415
10/14 $15,280 $12,922 $14,869
10/15 $16,135 $13,293 $15,293
10/16 $17,143 $13,832 $16,610
10/17 $17,329 $14,136 $17,107
10/18 $17,433 $14,063 $17,918
10/19 $19,549 $15,388 $20,005
|
Call 1-800-225-6292 or visit www.amundipioneer.com/us for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV due to such factors as interest rate
changes and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
Shares of closed-end funds, unlike open-end funds, are not continuously
offered. There is a one-time public offering and, once issued, shares of
closed-end funds are bought and sold in the open market through a stock
exchange and frequently trade at prices lower than their NAV. NAV per common
share is total assets less total liabilities, which include preferred shares or
borrowings, as applicable, divided by the number of common shares outstanding.
When NAV is lower than market price, dividends are assumed to be reinvested at
the greater of NAV or 95% of the market price. When NAV is higher, dividends
are assumed to be reinvested at prices obtained through open-market purchases
under the Trust's dividend reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Trust distributions or the sale of Trust shares.
Had these fees and taxes been reflected, performance would have been lower.
The Bloomberg Barclays Municipal Bond Index is an unmanaged, broad measure of
the municipal bond market. The Bloomberg Barclays High Yield Municipal Bond
Index is unmanaged, totals over $26 billion in market value and maintains over
1,300 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, issued after 12/31/90, deal size over $20
million, and maturity size of at least $3 million. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Trust returns, do not
reflect any fees, expenses or sales charges. The indices do not use leverage.
It is not possible to invest directly in the indices.
14 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
Schedule of Investments | 10/31/19 (unaudited)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 139.4%
DEBTORS IN POSSESSION FINANCING -- 0.0%+
of Net Assets(a)
Building Materials -- 0.0%+
89,114 Texas Pellets, Inc./German Pellets Texas LLC, 8.0%,
9/30/18 (144A) $ 89,114
26,324 Texas Pellets, Inc./German Pellets Texas LLC, 8.0%,
8/1/19 (144A) 26,325
-------------
Total Building Materials $ 115,439
-------------------------------------------------------------------------------------------------------
TOTAL DEBTORS IN POSSESSION FINANCING
(Cost $115,439) $ 115,439
-------------------------------------------------------------------------------------------------------
TAX EXEMPT OBLIGATIONS -- 139.4%
of Net Assets(b)
Arizona -- 2.8%
1,000,000 Arizona Industrial Development Authority, Bridgewater
Avondale Project, 5.375%, 1/1/38 $ 1,046,290
4,000,000(c) City of Phoenix, 5.0%, 7/1/27 4,932,400
2,250,000 City of Phoenix, Industrial Development Authority, 3rd &
Indian School Assisted Living Project, 5.4%, 10/1/36 2,407,478
24,000 County of Pima, Industrial Development Authority, Arizona
Charter Schools Project, Series C, 6.75%, 7/1/31 24,089
-------------
Total Arizona $ 8,410,257
-------------------------------------------------------------------------------------------------------
California -- 6.8%
10,000,000(d) California County Tobacco Securitization Agency, Capital
Appreciation, Stanislaus County, Subordinated,
Series A, 6/1/46 $ 2,126,000
1,450,000 California Enterprise Development Authority, Sunpower
Corp., 8.5%, 4/1/31 1,518,730
530,000 California Municipal Finance Authority, Santa Rosa Academy
Project, Series A, 5.75%, 7/1/30 563,878
1,625,000(e) California School Finance Authority, Classical Academies
Project, Series A, 7.375%, 10/1/43 1,912,056
1,400,000 California Statewide Communities Development Authority,
Lancer Plaza Project, 5.625%, 11/1/33 1,516,984
2,000,000(c) Los Angeles Community College District, Series G, 4.0%,
8/1/39 2,180,800
1,605,000 Los Angeles County Metropolitan Transportation Authority,
Series A, 5.0%, 7/1/30 2,017,485
1,500,000(c) State of California, 3.0%, 10/1/33 1,621,155
6,750,000 Tobacco Securitization Authority of Southern California,
Series A-1, 5.0%, 6/1/37 6,751,485
-------------
Total California $ 20,208,573
-------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 15
Schedule of Investments | 10/31/19 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Colorado -- 2.3%
2,180,000 Board of Water Commissioners City & County of Denver,
4.0%, 9/15/42 $ 2,448,162
1,500,000(e) Colorado Educational & Cultural Facilities Authority, Rocky
Mountain Classical Academy Project, 8.0%, 9/1/43 1,869,510
1,665,000(f) Tender Option Bond Trust Receipts/Certificates, RIB, 0%,
6/1/39 (144A) 2,336,744
-------------
Total Colorado $ 6,654,416
-------------------------------------------------------------------------------------------------------
Connecticut -- 3.4%
3,470,000 Mohegan Tribal Finance Authority, 7.0%, 2/1/45 (144A) $ 3,563,239
5,000,000(c) State of Connecticut, Series E, 4.0%, 9/1/30 5,392,850
1,000,000 Town of Hamden, Whitney Center Project, Series A,
7.75%, 1/1/43 1,010,800
-------------
Total Connecticut $ 9,966,889
-------------------------------------------------------------------------------------------------------
District of Columbia -- 5.3%
3,040,000 District of Columbia Tobacco Settlement Financing Corp.,
Asset-Backed, 6.5%, 5/15/33 $ 3,453,227
6,000,000 District of Columbia Tobacco Settlement Financing Corp.,
Asset-Backed, 6.75%, 5/15/40 6,337,560
10,000,000(d) District of Columbia Tobacco Settlement Financing Corp.,
Capital Appreciation, Asset-Backed, Series A, 6/15/46 1,876,000
3,975,000 District of Columbia, Deed Tax Housing Product Trust Fund,
Series A, 4.25%, 6/1/37 (NATL Insured) 4,029,299
-------------
Total District of Columbia $ 15,696,086
-------------------------------------------------------------------------------------------------------
Florida -- 4.7%
1,500,000 Alachua County Health Facilities Authority, Terraces Bonita
Springs Project, Series A, 8.125%, 11/15/41 $ 1,507,545
1,500,000 Alachua County Health Facilities Authority, Terraces Bonita
Springs Project, Series A, 8.125%, 11/15/46 1,507,320
5,000,000 County of Miami-Dade, Water & Sewer System Revenue,
Series A, 4.0%, 10/1/44 5,519,200
5,000,000 Florida's Turnpike Enterprise, Department of Transportation,
Series A, 4.0%, 7/1/34 5,458,650
-------------
Total Florida $ 13,992,715
-------------------------------------------------------------------------------------------------------
Georgia -- 3.2%
2,000,000 Brookhaven Development Authority, 4.0%, 7/1/49 $ 2,221,480
2,500,000 Clayton County Development Authority, Delta Air Lines,
Series A, 8.75%, 6/1/29 2,601,425
4,000,000 Private Colleges & Universities Authority, Emory University,
Series A, 5.0%, 10/1/43 4,500,280
-------------
Total Georgia $ 9,323,185
-------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
16 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Idaho -- 1.7%
5,000,000 Power County Industrial Development Corp., FMC Corp.
Project, 6.45%, 8/1/32 $ 5,028,450
-------------
Total Idaho $ 5,028,450
-------------------------------------------------------------------------------------------------------
Illinois -- 13.8%
2,087,000(f) Illinois Finance Authority, Clare Oaks Project, Series B,
4.0%, 11/15/52 $ 834,800
1,305,000(d) Illinois Finance Authority, Clare Oaks Project,
Series C-1, 11/15/52 19,575
261,000 Illinois Finance Authority, Clare Oaks Project, Series C-2,
4.0%, 11/15/52 3,915
261,000 Illinois Finance Authority, Clare Oaks Project, Series C-3,
0%, 11/15/52 3,915
3,865,000(e) Illinois Finance Authority, Swedish Covenant, Series A,
6.0%, 8/15/38 3,919,496
3,500,000 Illinois Finance Authority, The Admiral at the Lake Project,
5.25%, 5/15/42 3,672,865
4,000,000 Illinois Finance Authority, The Admiral at the Lake Project,
5.5%, 5/15/54 4,219,080
1,700,000(e) Illinois Finance Authority, The Admiral at the Lake Project,
Series A, 7.625%, 5/15/25 1,752,513
600,000(e) Illinois Finance Authority, The Admiral at the Lake Project,
Series A, 7.75%, 5/15/30 620,418
2,000,000(e) Illinois Finance Authority, The Admiral at the Lake Project,
Series A, 8.0%, 5/15/40 2,070,200
3,200,000(e) Illinois Finance Authority, The Admiral at the Lake Project,
Series A, 8.0%, 5/15/46 3,312,896
1,610,000(g) Metropolitan Pier & Exposition Authority, McCormick Place,
5.65%, 6/15/22 (NATL-RE Insured) 1,785,828
13,785,000 Metropolitan Pier & Exposition Authority, McCormick Place,
5.65%, 6/15/22 (NATL-RE Insured) 15,114,288
1,000,000 Metropolitan Pier & Exposition Authority, McCormick Place,
Series B, 5.0%, 6/15/52 (ST APPROP Insured) 1,047,320
1,485,000(g) Metropolitan Pier & Exposition Authority, McCormick Place,
Series B, 5.65%, 6/15/22 (NATL-RE Insured) 1,705,344
695,000 Southwestern Illinois Development Authority, Village of
Sauget Project, 5.625%, 11/1/26 695,014
-------------
Total Illinois $ 40,777,467
-------------------------------------------------------------------------------------------------------
Indiana -- 1.3%
250,000 City of Carmel, Barrington Carmel Project, Series A, 7.0%,
11/15/32 $ 7,500
750,000 City of Carmel, Barrington Carmel Project, Series A, 7.125%,
11/15/42 22,500
500,000 City of Carmel, Barrington Carmel Project, Series A, 7.125%,
11/15/47 15,000
|
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 17
Schedule of Investments | 10/31/19 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Indiana -- (continued)
1,000,000 City of Evansville, Silver Birch Evansville Project, 5.45%,
1/1/38 $ 1,054,710
1,500,000 City of Mishawaka, Silver Birch Mishawaka Project,
5.375%, 1/1/38 (144A) 1,572,420
1,000,000 Indiana Finance Authority, Multipurpose Educational
Facilities, Avondale Meadows Academy Project,
5.375%, 7/1/47 1,043,580
-------------
Total Indiana $ 3,715,710
-------------------------------------------------------------------------------------------------------
Kentucky -- 1.7%
5,000,000(e) Kentucky Economic Development Finance Authority,
Owensboro Medical Health System, Series A,
6.375%, 6/1/40 $ 5,146,750
-------------
Total Kentucky $ 5,146,750
-------------------------------------------------------------------------------------------------------
Louisiana -- 0.8%
2,260,000 Jefferson Parish Hospital Service District No. 2, East
Jefferson General Hospital, 6.375%, 7/1/41 $ 2,305,223
-------------
Total Louisiana $ 2,305,223
-------------------------------------------------------------------------------------------------------
Maine -- 2.2%
1,500,000 Maine Health & Higher Educational Facilities Authority,
Maine General Medical Center, 7.5%, 7/1/32 $ 1,621,020
4,480,000 Maine Turnpike Authority, Series A, 5.0%, 7/1/42 4,864,787
-------------
Total Maine $ 6,485,807
-------------------------------------------------------------------------------------------------------
Maryland -- 0.5%
1,370,000 Maryland Health & Higher Educational Facilities Authority,
City Neighbors, Series A, 6.75%, 7/1/44 $ 1,495,972
-------------
Total Maryland $ 1,495,972
-------------------------------------------------------------------------------------------------------
Massachusetts -- 13.6%
2,000,000(c) City of Boston, Series A, 5.0%, 3/1/39 $ 2,528,080
7,000,000(d) Massachusetts Bay Transportation Authority,
Series A, 7/1/28 5,891,620
1,550,000 Massachusetts Development Finance Agency, Harvard
University, Series A, 5.0%, 7/15/36 2,200,488
5,000,000 Massachusetts Development Finance Agency, Harvard
University, Series A, 5.0%, 7/15/40 7,266,050
1,000,000 Massachusetts Development Finance Agency, Partners
Healthcare System, 4.0%, 7/1/41 1,072,840
5,000,000 Massachusetts Development Finance Agency, Partner's
Healthcare System, Series S-1, 4.0%, 7/1/41 5,481,800
7,100,000 Massachusetts Development Finance Agency, WGBH
Foundation, Series A, 5.75%, 1/1/42 (AMBAC Insured) 10,997,687
170,000 Massachusetts Educational Financing Authority, Series I,
6.0%, 1/1/28 171,289
|
The accompanying notes are an integral part of these financial statements.
18 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Massachusetts -- (continued)
3,100,000 Massachusetts Health & Educational Facilities Authority,
Massachusetts Institute of Technology, Series K,
5.5%, 7/1/32 $ 4,452,189
-------------
Total Massachusetts $ 40,062,043
-------------------------------------------------------------------------------------------------------
Michigan -- 3.1%
2,640,000 Michigan State University, Series A, 5.0%, 8/15/41 $ 2,939,165
6,100,000 Michigan Tobacco Settlement Finance Authority, Series A,
6.0%, 6/1/48 6,145,750
-------------
Total Michigan $ 9,084,915
-------------------------------------------------------------------------------------------------------
Minnesota -- 4.9%
1,970,000 Bloomington Port Authority, Radisson Blu Mall of America,
9.0%, 12/1/35 $ 2,083,570
1,000,000 City of Ham Lake, DaVinci Academy, Series A, 5.0%, 7/1/47 1,053,410
1,000,000 City of Rochester, Health Care Facilities, Mayo Clinic,
4.0%, 11/15/48 1,111,340
2,300,000 City of Rochester, Mayo Clinic, Series B, 5.0%, 11/15/35 3,212,272
6,000,000(c) State of Minnesota, Series B, 4.0%, 8/1/27 7,052,940
-------------
Total Minnesota $ 14,513,532
-------------------------------------------------------------------------------------------------------
Mississippi -- 0.8%
2,350,000(f) Mississippi Business Finance Corp., Chevron US.A., Inc.
Project, Series C, 1.26%, 12/1/30 $ 2,350,000
-------------
Total Mississippi $ 2,350,000
-------------------------------------------------------------------------------------------------------
Montana -- 0.0%+
1,600,000(h) Two Rivers Authority, Inc., 7.375%, 11/1/27 $ 119,056
-------------
Total Montana $ 119,056
-------------------------------------------------------------------------------------------------------
New Hampshire -- 0.4%
1,000,000 New Hampshire Health & Education Facilities Authority Act,
Catholic Medical Centre, 3.75%, 7/1/40 $ 1,066,260
-------------
Total New Hampshire $ 1,066,260
-------------------------------------------------------------------------------------------------------
New Jersey -- 2.4%
1,000,000 New Jersey Economic Development Authority, Charter
Marion P Thomas, 5.375%, 10/1/50 (144A) $ 1,052,340
3,000,000 New Jersey Economic Development Authority, Continental
Airlines, 5.25%, 9/15/29 3,275,640
2,500,000 New Jersey Economic Development Authority, Continental
Airlines, 5.75%, 9/15/27 2,700,825
-------------
Total New Jersey $ 7,028,805
-------------------------------------------------------------------------------------------------------
New Mexico -- 1.4%
1,235,000 County of Otero, Otero County Jail Project, 9.0%, 4/1/23 $ 1,236,618
2,960,000(f) County of Otero, Otero County Jail Project, 9.0%, 4/1/28 2,954,879
-------------
Total New Mexico $ 4,191,497
-------------------------------------------------------------------------------------------------------
|
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 19
Schedule of Investments | 10/31/19 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
New York -- 9.7%
8,000,000 New York State Dormitory Authority, Series A, 4.0%, 7/1/41 $ 9,046,560
2,500,000 New York State Dormitory Authority, Series A, 5.0%, 3/15/41 3,087,225
7,500,000 New York State Dormitory Authority, Series C, 5.0%, 3/15/39 8,506,125
1,500,000 New York State Dormitory Authority, Trustees of Columbia
University, 5.0%, 10/1/45 2,270,340
3,000,000 New York State Urban Development Corp., 3.0%, 3/15/49 3,018,060
2,362,177 Westchester County Healthcare Corp., Series A,
5.0%, 11/1/44 2,578,836
-------------
Total New York $ 28,507,146
-------------------------------------------------------------------------------------------------------
North Carolina -- 2.0%
4,225,000(f) Tender Option Bond Trust Receipts/Certificates, RIB, 0%,
1/1/38 (144A) $ 5,957,208
-------------
Total North Carolina $ 5,957,208
-------------------------------------------------------------------------------------------------------
North Dakota -- 0.9%
2,525,000(e) County of Burleigh, St. Alexius Medical Center,
5.0%, 7/1/38 $ 2,758,234
-------------
Total North Dakota $ 2,758,234
-------------------------------------------------------------------------------------------------------
Ohio -- 5.3%
1,325,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 5.75%, 6/1/34 $ 1,325,000
2,500,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 5.875%, 6/1/47 2,518,750
1,700,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 6.0%, 6/1/42 1,717,000
6,000,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 6.5%, 6/1/47 6,180,000
1,000,000 Ohio Housing Finance Agency, Sanctuary Springboro
Project, 5.45%, 1/1/38 (144A) 1,026,550
2,500,000(c)(e) State of Ohio, Common Schools, Series B, 5.0%, 6/15/29 2,745,950
-------------
Total Ohio $ 15,513,250
-------------------------------------------------------------------------------------------------------
Oregon -- 2.3%
1,000,000 Oregon Health & Science University, Series A, 5.0%, 7/1/42 $ 1,193,450
5,190,000 Oregon Health & Science University, Series E, 5.0%, 7/1/32 5,660,110
-------------
Total Oregon $ 6,853,560
-------------------------------------------------------------------------------------------------------
Pennsylvania -- 3.3%
3,000,000 Geisinger Authority, Geisinger Health System, Series A-1,
5.0%, 2/15/45 $ 3,516,330
1,280,000(h) Langhorne Manor Borough Higher Education Authority,
Lower Bucks Hospital, 7.35%, 7/1/22 422,400
460,000 Philadelphia Authority for Industrial Development, Greater
Philadelphia Health Action, Inc., Project, Series A,
6.625%, 6/1/50 488,607
|
The accompanying notes are an integral part of these financial statements.
20 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Pennsylvania -- (continued)
2,000,000 Philadelphia Authority for Industrial Development, Nueva
Esperanze, Inc., 8.2%, 12/1/43 $ 2,188,920
1,000,000 Philadelphia Authority for Industrial Development,
Performing Arts Charter School Project, 6.5%,
6/15/33 (144A) 1,019,860
2,000,000 Philadelphia Authority for Industrial Development,
Performing Arts Charter School Project, 6.75%,
6/15/43 (144A) 2,038,300
-------------
Total Pennsylvania $ 9,674,417
-------------------------------------------------------------------------------------------------------
Puerto Rico -- 1.3%
6,255,000(c)(h) Commonwealth of Puerto Rico, Series A, 8.0%, 7/1/35 $ 3,784,275
-------------
Total Puerto Rico $ 3,784,275
-------------------------------------------------------------------------------------------------------
Rhode Island -- 2.8%
5,900,000(h) Central Falls Detention Facility Corp., 7.25%, 7/15/35 $ 931,610
2,000,000 Rhode Island Health & Educational Building Corp., Brown
University, Series A, 4.0%, 9/1/37 2,229,120
1,500,000(e) Rhode Island Health & Educational Building Corp.,
Tockwatten Home Issue, 8.375%, 1/1/46 1,630,800
2,500,000(f) Tender Option Bond Trust Receipts/Certificates, RIB,
0%, 9/1/47 (144A) 3,602,600
-------------
Total Rhode Island $ 8,394,130
-------------------------------------------------------------------------------------------------------
South Carolina -- 1.1%
2,850,000 City of Charleston SC Waterworks & Sewer System
Revenue, 4.0%, 1/1/49 $ 3,262,708
-------------
Total South Carolina $ 3,262,708
-------------------------------------------------------------------------------------------------------
Texas -- 8.8%
1,000,000 Arlington Higher Education Finance Corp., Universal
Academy, Series A, 7.0%, 3/1/34 $ 1,061,670
2,500,000(e) Central Texas Regional Mobility Authority, Sub Lien,
6.75%, 1/1/41 2,658,550
1,490,000(c) County of Harris, Series A, 5.0%, 10/1/26 1,797,551
5,000,000(c) Goose Creek Consolidated Independent School District,
Series C, 4.0%, 2/15/26 (PSF-GTD Insured) 5,542,400
625,000(f) Harris County Health Facilities Development Corp., The
Methodist Hospital System, Series A-1, 1.35%,
12/1/41 625,000
3,785,000 North Texas Tollway Authority, Series A, 5.0%, 1/1/35 4,341,395
1,500,000(e) Red River Health Facilities Development Corp., MRC
Crestview, Series A, 8.0%, 11/15/41 1,704,810
3,960,000(h) Sanger Industrial Development Corp., Texas Pellets Project,
Series B, 8.0%, 7/1/38 1,029,600
1,000,000(h) Tarrant County Cultural Education Facilities Finance Corp.,
Mirador Project, Series A, 4.875%, 11/15/48 100
|
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 21
Schedule of Investments | 10/31/19 (unaudited) (continued)
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Texas -- (continued)
1,000,000(h) Tarrant County Cultural Education Facilities Finance Corp.,
Mirador Project, Series A, 5.0%, 11/15/55 $ 100
2,000,000(e) Tarrant County Cultural Education Facilities Finance Corp.,
MRC Crestview Project, 8.0%, 11/15/34 2,136,440
2,000,000 Texas Water Development Board, 4.0%, 10/15/44 2,272,180
2,500,000(e) Travis County Health Facilities Development Corp.,
Longhorn Village Project, 7.125%, 1/1/46 2,671,000
-------------
Total Texas $ 25,840,796
-------------------------------------------------------------------------------------------------------
Utah -- 0.4%
1,000,000 Salt Lake City Corp., Airport Revenue, Series B,
5.0%, 7/1/35 $ 1,193,600
-------------
Total Utah $ 1,193,600
-------------------------------------------------------------------------------------------------------
Virginia -- 8.1%
2,200,000(c) County of Arlington, 4.0%, 8/15/35 $ 2,495,856
1,415,000(c) County of Fairfax, Series A, 4.0%, 10/1/33
(ST AID WITHHLDG Insured) 1,609,449
5,000,000 University of Virginia, Series A, 5.0%, 4/1/42 6,067,900
4,000,000 Upper Occoquan Sewage Authority, 4.0%, 7/1/41 4,343,480
5,000,000 Virginia College Building Authority, Series A, 3.0%, 2/1/36 5,151,200
4,000,000 Virginia Commonwealth Transportation Board, Capital
Projects, 3.0%, 5/15/37 4,168,320
-------------
Total Virginia $ 23,836,205
-------------------------------------------------------------------------------------------------------
Washington -- 10.1%
3,745,000 City of Seattle, Water System Revenue, 4.0%, 8/1/32 $ 4,260,799
2,500,000(c) King County, Issaquah School District No. 411, 4.0%,
12/1/31 (SCH BD GTY Insured) 2,848,725
14,315,000(c)(d) State of Washington, Motor Vehicle Sales Tax, Series C,
6/1/22 (NATL Insured) 13,873,669
3,285,000(f) Tender Option Bond Trust Receipts/Certificates, RIB, 0%,
1/1/45 (144A) 4,610,366
2,500,000 University of Washington, Series B, 5.0%, 6/1/29 2,985,475
1,150,000 Washington State Housing Finance Commission, Mirabella
Project, Series A, 6.75%, 10/1/47 (144A) 1,231,201
-------------
Total Washington $ 29,810,235
-------------------------------------------------------------------------------------------------------
Wisconsin -- 6.2%
1,500,000 Public Finance Authority, Gardner Webb University, 5.0%,
7/1/31 (144A) $ 1,569,630
5,000,000 Public Finance Authority, Glenridge Palmer Ranch, Series A,
8.25%, 6/1/46 (144A) 5,479,900
750,000 Public Finance Authority, Roseman University Health
Sciences Project, 5.875%, 4/1/45 829,846
1,000,000 Public Finance Authority, SearStone CCRC Project, Series A,
5.3%, 6/1/47 1,036,540
|
The accompanying notes are an integral part of these financial statements.
22 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
--------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
--------------------------------------------------------------------------------------------------------
Wisconsin -- (continued)
1,485,000(e) Public Finance Authority, SearStone CCRC Project, Series A,
8.625%, 6/1/47 $ 1,735,430
5,000,000 Wisconsin Department of Transportation, Series A,
5.0%, 7/1/28 5,789,350
2,000,000 Wisconsin Housing & Economic Development Authority,
2.95%, 3/1/42 (FNMA COLL Insured) 1,995,400
--------------
Total Wisconsin $ 18,436,096
--------------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT OBLIGATIONS
(Cost $390,934,006) $ 411,445,468
--------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS -- 139.4%
(Cost $391,049,445) $ 411,560,907
--------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 2.9% $ 8,538,260
--------------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (42.3)% $(125,000,030)
--------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON
SHAREOWNERS -- 100.0% $ 295,099,137
========================================================================================================
|
RIB Residual Interest Bond is purchased in a secondary market. The interest
rate is subject to change periodically and inversely based upon
prevailing market rates. The interest rate shown is the rate at October
31, 2019.
(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
October 31, 2019, the value of these securities amounted to $35,175,797,
or 11.9% of net assets applicable to common shareowners.
+ Amount rounds to less than 0.1%.
(a) Securities are restricted as to resale.
(b) Consists of Revenue Bonds unless otherwise indicated.
(c) Represents a General Obligation Bond.
(d) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(e) 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.
(f) The interest rate is subject to change periodically. The interest rate
and/or reference index and spread is shown at October 31, 2019.
(g) Escrow to maturity.
(h) Security is in default.
|
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended October 31, 2019, aggregated $33,875,367 and $36,199,341,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 23
Schedule of Investments | 10/31/19 (unaudited) (continued)
The Trust is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Amundi Pioneer Asset
Management, Inc. (the "Adviser") serves as the Trust's investment adviser, as
set forth in Rule 17a-7 under the Investment Company Act of 1940, pursuant to
procedures adopted by the Board of Trustees. Under these procedures, cross
trades are effected at current market prices. During the six months ended
October 31, 2019, the Trust did not engage in any cross trade activity.
At October 31, 2019, the net unrealized appreciation on investments based on
cost for federal tax purposes of $390,629,752 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 35,462,373
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (14,531,218)
------------
Net unrealized appreciation $ 20,931,155
============
|
Various inputs are used in determining the value of the Trust's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risks,
etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Trust's own
assumptions in determining fair value of investments). See Notes to
Financial Statements -- Note 1A.
The following is a summary of the inputs used as of October 31, 2019, in
valuing the Trust's investments:
------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------------
Debtors in Possession Financing $ -- $ 115,439 $ -- $ 115,439
Municipal Bonds -- 411,445,468 -- 411,445,468
------------------------------------------------------------------------------------------
Total Investments in Securities $ -- $411,560,907 $ -- $411,560,907
==========================================================================================
|
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
-------------------------------------------------------------------------------------------
Tax Exempt Obligations
-------------------------------------------------------------------------------------------
Balance as of 4/30/19 $ 1,433,520
Realized gain (loss)1 --
Change in unrealized appreciation (depreciation)2 --
Accrued discounts/premiums --
Purchases --
Sales --
Transfers in to Level 3* --
Transfers out of Level 3* (1,433,520)
-------------------------------------------------------------------------------------------
Balance as of 10/31/19 $ --
===========================================================================================
|
1 Realized gain (loss) on these securities is included in the realized gain
(loss) from investments on the Statement of Operations.
2 Unrealized appreciation (depreciation) on these securities is included in
the change in unrealized appreciation (depreciation) from investments on
the Statement of Operations.
* Transfers are calculated on the beginning of period values. During the six
months ended October 31, 2019, an investment having a value of $1,433,520
was transferred out of Level 3 to Level 2, as there were observable inputs
available to determine its value. There were no other transfers between
Level 1, 2 and 3.
Net change in unrealized appreciation (depreciation) of Level 3 investments
still held and considered Level 3 at October 31, 2019: $ --
------
|
The accompanying notes are an integral part of these financial statements.
24 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
Statement of Assets and Liabilities | 10/31/19 (unaudited)
ASSETS:
Investments in unaffiliated issuers, at value (cost $391,049,445) $411,560,907
Cash 2,366,038
Receivables --
Investment securities sold 148,000
Interest 5,988,202
Other assets 151,281
-------------------------------------------------------------------------------------------------------
Total assets $420,214,428
=======================================================================================================
LIABILITIES:
Payables --
Trustees' fees $ 1,394
Administrative fees 22,858
Professional fees 35,579
Shareowner communications expense 4,355
Printing expense 10,349
Pricing fees 13,456
Due to affiliates
Management fees 19,470
Other due to affiliates 3,009
Accrued expenses 4,791
-------------------------------------------------------------------------------------------------------
Total liabilities $ 115,261
=======================================================================================================
Variable Rate MuniFund Term Preferred Shares, net of deferred offering costs:
$100,000 liquidation value per share applicable to 1,250
shares, including dividends payable of $30 $125,000,030
-------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $300,996,046
Distributable earnings (loss) (5,896,909)
-------------------------------------------------------------------------------------------------------
Net assets applicable to common shareowners $295,099,137
=======================================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value
Based on $295,099,137/22,771,349 common shares $ 12.96
=======================================================================================================
|
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 25
Statement of Operations (unaudited)
For the Six Months Ended 10/31/19
INVESTMENT INCOME:
Interest from unaffiliated issuers $9,718,329
---------------------------------------------------------------------------------------------------
Total investment income $ 9,718,329
---------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $1,267,341
Administrative expense 100,581
Transfer agent fees 4,038
Distribution fees
Shareowner communications expense 6,937
Custodian fees 2,945
Registration fees 7,341
Professional fees 82,776
Printing expense 14,142
Pricing fees 7,329
Trustees' fees 8,525
Insurance expense 314
Miscellaneous 19,427
---------------------------------------------------------------------------------------------------
Total expenses $ 1,521,696
---------------------------------------------------------------------------------------------------
Net investment income $ 8,196,633
---------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $ 725,176
Class action 693,200 $ 1,418,376
---------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers 6,082,847
---------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ 7,501,223
---------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS: $(1,712,750)
---------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $13,985,106
===================================================================================================
|
The accompanying notes are an integral part of these financial statements.
26 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------------------
Six Months
Ended Year
10/31/19 Ended
(unaudited) 4/30/19
-------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 8,196,633 $ 16,757,405
Net realized gain (loss) on investments 1,418,376 (897,412)
Change in net unrealized appreciation (depreciation)
on investments 6,082,847 5,306,914
Distributions to preferred shareowners (1,712,750) (3,471,575)
-------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 13,985,106 $ 17,695,332
-------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
($0.30 and $0.63 per share, respectively) $ (6,831,405) $(14,345,950)
-------------------------------------------------------------------------------------------------------
Total distributions to common shareowners $ (6,831,405) $(14,345,950)
-------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners $ 7,153,701 $ 3,349,382
-------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period $287,945,436 $284,596,054
-------------------------------------------------------------------------------------------------------
End of period $295,099,137 $287,945,436
=======================================================================================================
|
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 27
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
10/31/19 Ended Ended Ended Ended Ended
(unaudited) 4/30/19 4/30/18 4/30/17* 4/30/16* 4/30/15*
------------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 12.65 $ 12.50 $ 12.72 $ 13.49 $ 13.31 $ 13.33
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income (loss) $ 0.36 $ 0.74 $ 0.78 $ 0.73 $ 0.83 $ 0.91
Net realized and unrealized gain (loss) on investments 0.33 0.19 (0.29) (0.76) 0.20 0.16
------------------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareowners from:
Net investment income $ (0.08) $ (0.15) $ (0.09) $ (0.05) $ (0.01) $ (0.01)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.61 $ 0.78 $ 0.40 $ (0.08) $ 1.02 $ 1.06
------------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income and previously undistributed
net investment income $ (0.30) $ (0.63) $ (0.62) $ (0.69) $ (0.84)** $ (1.08)**
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.31 $ 0.15 $ (0.22) $ (0.77) $ 0.18 $ (0.02)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.96 $ 12.65 $ 12.50 $ 12.72 $ 13.49 $ 13.31
------------------------------------------------------------------------------------------------------------------------------------
Market value, end of period $ 12.13 $ 11.91 $ 11.25 $ 11.75 $ 14.07 $ 14.75
====================================================================================================================================
Total return at net asset value (b) 4.95%(c)(d) 6.93% 3.53% (0.45)% 8.12% 7.76%
Total return at market value (b) 4.34%(c) 11.86% 0.87% (11.83)% 1.75% 6.84%
Ratios to average net assets of common shareowners:
Total expenses (e) 1.03%(f) 1.03% 1.01% 1.00% 1.05% 1.03%
Net investment income before preferred share distributions 5.52%(f) 5.92% 6.14% 5.54% 6.24% 6.73%
Preferred share distributions 1.15%(f) (1.23)% 0.71% 0.38% 0.10% 0.04%
Net investment income available to common shareowners 4.37%(f) 4.69% 5.44% 5.16% 6.14% 6.69%
Portfolio turnover rate 8% 16% 20% 19% 9% 14%
Net assets of common shareowners, end of period
(in thousands) $295,099 $287,945 $284,596 $289,741 $307,027 $302,718
|
The accompanying notes are an integral part of these financial statements.
28 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
10/31/19 Ended Ended Ended Ended Ended
(unaudited) 4/30/19 4/30/18 4/30/17* 4/30/16* 4/30/15*
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) (g)(h) $125,000 $125,000 $125,000 $101,000 $101,000 $101,000
Asset coverage per preferred share, end of period $336,079 $330,370 $327,672 $ 96,723 $100,998 $ 99,930
Average market value per preferred share (i) $100,000 $100,000 $100,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per
preferred share $100,000 $100,014 $ 99,996 $ 25,006 $ 25,001 $ 25,000
====================================================================================================================================
|
* The Trust was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
** The amount of distributions made to shareowners during the year were in
excess of the net investment income earned by the Trust during the year.
The Trust has accumulated undistributed net investment income which is
part of the Trust's NAV. A portion of the accumulated net investment
income was distributed to shareowners during the year.
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Total investment return is calculated assuming a purchase of common shares
at the current net asset value or market value on the first day and a sale
at the current net asset value or 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.
(c) Not annualized.
(d) If the Trust had not recognized gains in settlement of class action
lawsuits during the period ended October 31, 2019, the total return would
have been 4.71%.
(e) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(f) Annualized.
(g) Prior to February 9, 2018 there were 4,040 Auction Preferred Shares
("APS") outstanding with a liquidation preference of $25,000 per share.
The Trust redeemed all 2,000 outstanding Series A APS on February 14, 2018
and all 2,040 outstanding Series B APS on February 15, 2018.
(h) The Trust issued 1,250 Variable Rate MuniFund Term Preferred Shares, with
a liquidation preference of $100,000 per share, on February 9, 2018.
(i) Market value is redemption value without an active market.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 29
Notes to Financial Statements | 10/31/19 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Municipal High Income Trust (the "Trust") was organized as a Delaware
statutory trust on March 13, 2003. Prior to commencing operations on July 21,
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.
Amundi Pioneer Asset Management, Inc., an indirect, wholly owned subsidiary of
Amundi and Amundi's wholly owned subsidiary, Amundi USA, Inc., serves as the
Trust's investment adviser (the "Adviser"). Amundi Pioneer Distributor, Inc.,
an affiliate of Amundi Pioneer Asset Management, Inc., serves as the Trust's
distributor (the "Distributor").
In August 2018, the Securities and Exchange Commission ("SEC") released a
Disclosure Update and Simplification Final Rule. The Final Rule amends
Regulation S-X disclosures requirements to conform them to U.S. Generally
Accepted Accounting Principles ("U.S. GAAP") for investment companies. The
Trust's financial statements were prepared in compliance with the new
amendments to Regulation S-X.
The Trust is an investment company and follows investment company accounting
and reporting guidance under U.S. GAAP. U.S. GAAP requires the management of
the Trust to 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:
A. Security Valuation
The net asset value of the Trust is computed once daily, on each day the
New York Stock Exchange ("NYSE") is open, as of the close of regular
trading on the NYSE.
30 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
Fixed-income securities are valued by using 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, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to
supply prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Cash may include overnight time deposits at approved financial
institutions.
Securities for which independent pricing services or broker-dealers are
unable to supply prices or for which market prices and/or quotations are
not readily available or are considered to be unreliable are valued by a
fair valuation team comprised of certain personnel of the Adviser pursuant
to procedures adopted by the Trust's Board of Trustees. The Adviser's fair
valuation team uses fair value methods approved by the Valuation Committee
of the Board of Trustees. The Adviser's fair valuation team is responsible
for monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee of the Board of Trustees.
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. The Trust may use fair value
methods if it is determined that a significant event has occurred after
the close of the exchange or market on which the security trades and prior
to the determination of the Trust's net asset value. Examples of a
significant event might include political or economic news, corporate
restructurings, natural disasters, terrorist activity or trading halts.
Thus, the valuation of the Trust's securities may differ significantly
from exchange prices, and such differences could be material.
At October 31, 2019, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services, broker-dealers or using a third party insurance industry pricing
model).
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 31
B. Investment Income and Transactions
Interest income, including interest on income-bearing cash accounts, is
recorded on the accrual basis. Dividend and interest income are reported
net of unrecoverable foreign taxes withheld at the applicable country
rates and net of income accrued on defaulted securities.
Discounts and premiums on purchase prices of debt securities are accreted
or amortized, respectively, daily, into interest income on an effective
yield to maturity basis with a corresponding increase or decrease in the
cost basis of the security. Premiums and discounts related to certain
mortgage-backed securities are amortized or accreted in proportion to the
monthly paydowns.
Interest and dividend income payable by delivery of additional shares is
reclassified as PIK (payment-in-kind) income upon receipt and is included
in interest and dividend income, respectively.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Federal Income Taxes
It is the Trust's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income and net realized capital gains,
if any, to its shareowners. Therefore, no provision for federal income
taxes is required. As of October 31, 2019, the Trust did not accrue any
interest or penalties with respect to uncertain tax positions, which, if
applicable, would be recorded as an income tax expense on the Statement of
Operations. Tax returns filed within the prior three years remain subject
to examination by federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary over distributions for
financial statement purposes resulting from differences in the recognition
or classification of income or distributions for financial statement and
tax purposes. Capital accounts within the financial statements are
adjusted for permanent book/tax differences to reflect tax character, but
are not adjusted for temporary differences.
32 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
paid during the year ended April 30, 2019 was as follows:
--------------------------------------------------------------------------
2019
--------------------------------------------------------------------------
Distributions paid from:
Tax Exempt Distributions $17,250,950
Ordinary income 566,575
--------------------------------------------------------------------------
Total $17,817,525
==========================================================================
|
The following shows the components of distributable earnings (losses) on a
federal income tax basis at April 30, 2019:
--------------------------------------------------------------------------
2019
--------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 81,413
Capital loss carryforward (30,069,946)
Other book/tax temporary differences 1,650,639
Undistributed tax-exempt income 858,669
Unrealized appreciation 14,428,615
--------------------------------------------------------------------------
Total $(13,050,610)
==========================================================================
|
The difference between book-basis and tax-basis unrealized
appreciation/depreciation is primarily attributable to the book/tax
differences in the accrual of income on securities in default, the
difference between book and tax amortization methods and discounts on
fixed income securities.
D. Automatic Dividend Reinvestment Plan
All 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 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 ("AST"), 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.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 33
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
shares of the Trust on terms that differ from the terms of the Plan.
Whenever the Trust declares a dividend on shares payable in cash,
participants in the Plan will receive the equivalent in shares acquired by
the Plan Agent either (i) through receipt of additional unissued but
authorized shares from the Trust or (ii) by purchase of outstanding shares
on the New York Stock Exchange or elsewhere. If, on the payment date for
any dividend, the net asset value per 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
shares. The number of newly issued shares to be credited to each account
will be determined by dividing the dollar amount of the dividend by the
net asset value per 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 share is greater than the market value
(market discount), the Plan Agent will invest the dividend amount in
shares acquired in open-market purchases. There are no brokerage charges
with respect to newly issued 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 be able to transfer the shares to another broker and
continue to participate in the Plan.
E. Risks
The value of securities held by the Trust may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real
or perceived adverse economic, political or regulatory conditions,
inflation, changes in interest rates, lack of liquidity in the bond
markets or adverse investor sentiment. In the past several years,
financial markets have experienced increased volatility, depressed
valuations, decreased liquidity and heightened uncertainty. These
conditions may continue, recur, worsen or spread. A general rise in
interest rates could adversely affect the price and liquidity of
fixed-income securities.
34 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
The municipal bond market can be susceptible to unusual volatility,
particularly for lower-rated and unrated securities. Liquidity can be
reduced unpredictably in response to overall economic conditions or credit
tightening. Municipal issuers may be adversely affected by rising health
care costs, increasing unfunded pension liabilities, and by the phasing
out of federal programs providing financial support. Unfavorable
conditions and developments relating to projects financed with municipal
securities can result in lower revenues to issuers of municipal
securities, potentially resulting in defaults. Issuers often depend on
revenues from these projects to make principal and interest payments. The
value of municipal securities can also be adversely affected by changes in
the financial condition of one or more individual municipal issuers or
insurers of municipal issuers, regulatory and political developments, tax
law changes or other legislative actions, and by uncertainties and public
perceptions concerning these and other factors. Municipal securities may
be more susceptible to down-grades or defaults during recessions or
similar periods of economic stress. In recent periods, an increasing
number of municipal issuers in the United States have defaulted on
obligations and commenced insolvency proceedings. Financial difficulties
of municipal issuers may continue or get worse. To the extent the Trust
invests significantly in a single state, including Illinois,
Massachusetts, New York, Texas and Washington, or in securities the
payments on which are dependent upon a single project or source of
revenues, or that relate to a sector or industry, including health care
facilities, education, transportation, special revenues and pollution
control, the Trust will be more susceptible to associated risks and
developments.
With the increased use of technologies such as the Internet to conduct
business, the Trust is susceptible to operational, information security
and related risks. While the Trust's Adviser has established business
continuity plans in the event of, and risk management systems to prevent,
limit or mitigate, such cyber-attacks, there are inherent limitations in
such plans and systems, including the possibility that certain risks have
not been identified. Furthermore, the Trust cannot control the
cybersecurity plans and systems put in place by service providers to the
Trust such as Brown Brothers Harriman & Co., the Trust's custodian and
accounting agent, and DST Asset Manager Solutions, Inc., the Trust's
transfer agent. In addition, many beneficial owners of Trust shares hold
them through accounts at broker-dealers, retirement platforms and other
financial market participants over which neither the Trust nor Amundi
Pioneer exercises control. Each of these may in turn rely on service
providers to them, which are also subject to the risk of cyber-attacks.
Cybersecurity failures or breaches at Amundi Pioneer or
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 35
the Trust's service providers or intermediaries have the ability to cause
disruptions and impact business operations, potentially resulting in
financial losses, interference with the Trust's ability to calculate its
net asset value, impediments to trading, the inability of Trust
shareowners to effect share purchases or redemptions or receive
distributions, loss of or unauthorized access to private shareowner
information and violations of applicable privacy and other laws,
regulatory fines, penalties, reputational damage, or additional compliance
costs. Such costs and losses may not be covered under any insurance. In
addition, maintaining vigilance against cyber-attacks may involve
substantial costs over time, and system enhancements may themselves be
subject to cyber-attacks.
2. Management Agreement
The Adviser manages the Trust's portfolio. Management fees payable under the
Trust's Advisory Agreement with the Adviser are calculated daily at the annual
rate of 0.60% of the Trust's average daily managed assets. "Managed assets"
means (a) the total assets of the Trust, including any form of investment
leverage, minus (b) all accrued liabilities incurred in the normal course of
operations, which shall not include any liabilities or obligations attributable
to investment leverage obtained through (i) indebtedness of any type
(including, without limitation, borrowing through a credit facility or the
issuance of debt securities), (ii) the issuance of preferred stock or other
similar preference securities, and/or (iii) any other means. For the six months
ended October 31, 2019, the net management fee was 0.60% (annualized) of the
Trust's average daily managed assets, which was equivalent to 0.85%
(annualized) of the Trust's average daily net assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Trust as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$22,479 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at October 31, 2019.
3. Transfer Agent
AST serves as the transfer agent with respect to the Trust's common shares. The
Trust pays AST an annual fee, as is agreed to from time to time by the Trust
and AST, for providing such services.
In addition, the Trust reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings and outgoing calls.
36 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
4. Trust Shares
There are an unlimited number of common shares of beneficial interest
authorized.
Transactions in common shares of beneficial interest for the six months ended
October 31, 2019 and year ended April 30, 2019 were as follows:
--------------------------------------------------------------------------------
10/31/19 4/30/19
--------------------------------------------------------------------------------
Shares outstanding at beginning of period 22,771,349 22,771,349
Reinvestment of distributions -- --
--------------------------------------------------------------------------------
Shares outstanding at end of period 22,771,349 22,771,349
================================================================================
|
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 October 31, 2019, the Trust has outstanding 1,250 Variable Rate MuniFund
Term Preferred Shares Series 2021 ("Series 2021 VMTP Shares or "VMTP Shares").
The Trust issued the VMTP Shares on February 9, 2018. See Note 5 for additional
information.
Prior to February 9, 2018, the Trust had outstanding 2,000 Series A APS and
2,040 Series B APS. The Trust mailed a notice of redemption and deposited funds
sufficient to redeem the APS with the auction agent on February 9, 2018. The
Trust redeemed all outstanding Series A APS and Series B APS on February 14,
2018 and February 15, 2018, respectively.
5. Variable Rate MuniFund Term Preferred Shares
The Trust has 1,250 shares issued and outstanding of Series 2021 VMTP Shares,
with a liquidation preference of $100,000 per share. VMTP Shares are issued via
private placement and are not publicly available.
The Trust is obligated to redeem its VMTP Shares by the date as specified in
its offering document ("Term Redemption Date"), unless earlier redeemed by the
Trust. VMTP Shares are subject to optional and mandatory redemption in certain
circumstances. The VMTP Shares may be redeemed at the option of the Trust, at
the redemption price per share. The redemption price per share is equal to the
sum of the liquidation preference per share plus any accumulated but unpaid
dividends. The Trust may be obligated to redeem a certain amount of the VMTP
Shares if it fails to maintain certain asset coverage and leverage ratio
requirements and such failures are not cured by the applicable cure date. The
Term Redemption Date for the Trust's Series 2021 VMTP Shares is August 2,
2021.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 37
VMTP Shares are subject to restrictions on transfer, generally do not trade,
and market quotations are generally not available. VMTP Shares are short-term
or short/intermediate-term instruments that pay a variable dividend rate tied
to a short-term index, plus an additional fixed "spread" amount established at
the time of issuance. For financial reporting purposes, the liquidation
preference of VMTP Shares is a liability and is recognized as a component of
"Variable Rate MuniFund Term Preferred Shares, net of deferred offering costs"
on the Statement of Assets and Liabilities.
Dividends on the VMTP Shares (which are treated as interest payments for
financial reporting purposes) are declared daily. The dividend rate for the
VMTP Shares is determined weekly. Unpaid dividends on VMTP Shares are
recognized as a component of "Variable Rate MuniFund Term Preferred Shares, net
of deferred offering costs" on the Statement of Assets and Liabilities. For the
six months ended October 31, 2019, the Series 2021 VMTP Shares paid an average
dividend rate of 2.75%.
Costs incurred in connection with the Trust's offering of VMTP Shares were
recorded as a deferred charge, which is being amortized over the life of the
shares and is recognized as a component of "Variable Rate MuniFund Term
Preferred Shares, net of deferred offering costs" on the Statement of Assets
and Liabilities.
Transactions in the Series 2021 VMTP Shares during the Trust's current and
prior reporting periods were as follows:
----------------------------------------------------------------------------------------------
Six Months Ended 10/31/19 Year Ended 4/30/19
Shares Amount Shares Amount
----------------------------------------------------------------------------------------------
VMTP Shares at the
beginning of the period 1,250 $125,000,000 1,250 $125,000,000
VMTP Shares exchanged -- -- -- --
----------------------------------------------------------------------------------------------
Net VMTP Shares at the
end of the period 1,250 $125,000,000 1,250 $125,000,000
==============================================================================================
|
6. Subsequent Events
A monthly dividend was declared on November 5, 2019 from undistributed and
accumulated net investment income of $0.0450 per common share payable November
29, 2019, to common shareowners of record on November 19, 2019.
Subsequent to October 31, 2019, dividends declared and paid on VMTP Shares
totaled $241,609 through November 25, 2019.
38 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
Approval of Investment Management Agreement
Amundi Pioneer Asset Management, Inc. ("APAM") serves as the investment adviser
to Pioneer Municipal High Income Trust (the "Trust") pursuant to an investment
management agreement between APAM and the Trust. In order for APAM to remain
the investment adviser of the Trust, the Trustees of the Trust must determine
annually whether to renew the investment management agreement for the Trust.
The contract review process began in January 2019 as the Trustees of the Trust
agreed on, among other things, an overall approach and timeline for the
process. Contract review materials were provided to the Trustees in March 2019,
July 2019 and September 2019. In addition, the Trustees reviewed and discussed
the Trust's performance at regularly scheduled meetings throughout the year,
and took into account other information related to the Trust provided to the
Trustees at regularly scheduled meetings, in connection with the review of the
Trust's investment management agreement.
In March 2019, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment management agreement, and reviewed and
discussed the qualifications of the investment management teams for the Trust,
as well as the level of investment by the Trust's portfolio managers in the
Trust. In July 2019, the Trustees, among other things, reviewed the Trust's
management fees and total expense ratios, the financial statements of APAM and
its parent companies, profitability analyses provided by APAM, and analyses
from APAM as to possible economies of scale. The Trustees also reviewed the
profitability of the institutional business of APAM and APAM's affiliate,
Amundi Pioneer Institutional Asset Management, Inc. ("APIAM" and, together with
APAM, "Amundi Pioneer"), as compared to that of APAM's fund management
business, and considered the differences between the fees and expenses of the
Trust and the fees and expenses of APAM's and APIAM's institutional accounts,
as well as the different services provided by APAM to the Trust and by APAM and
APIAM to the institutional accounts. The Trustees further considered contract
review materials, including additional materials received in response to the
Trustees' request, in September 2019.
At a meeting held on September 17, 2019, based on their evaluation of the
information provided by APAM and third parties, the Trustees of the Trust,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment management agreement for another year. In approving
the renewal of the investment management agreement, the Trustees
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 39
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by APAM to the Trust, taking into account the investment
objective and strategy of the Trust. The Trustees also reviewed APAM's
investment approach for the Trust and its research process. The Trustees
considered the resources of APAM and the personnel of APAM who provide
investment management services to the Trust. They also reviewed the amount of
non-Trust assets managed by the portfolio managers of the Trust. They
considered the non-investment resources and personnel of APAM that are involved
in APAM's services to the Trust, including APAM's compliance, risk management,
and legal resources and personnel. The Trustees noted the substantial attention
and high priority given by APAM's senior management to the Pioneer Fund
complex.
The Trustees considered that APAM supervises and monitors the performance of
the Trust's service providers and provides the Trust with personnel (including
Trust officers) and other resources that are necessary for the Trust's business
management and operations. The Trustees also considered that, as administrator,
APAM is responsible for the administration of the Trust's business and other
affairs. The Trustees considered the fees paid to APAM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by APAM to the Trust were
satisfactory and consistent with the terms of the investment management
agreement.
Performance of the Trust
In considering the Trust's performance, the Trustees regularly review and
discuss throughout the year data prepared by APAM and information comparing the
Trust's performance with the performance of its peer group of funds, as
classified by Morningstar, Inc. (Morningstar), and the performance of the
Trust's benchmark index. They also discuss the Trust's performance with APAM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the investment
management agreement.
40 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Trust
in comparison to the management fees and expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party. The peer
group comparisons referred to below are organized in quintiles. Each quintile
represents one-fifth of the peer group. In all peer group comparisons referred
to below, first quintile is most favorable to the Trust's shareowners.
The Trustees considered that the Trust's management fee (based on managed
assets) for the most recent fiscal year was in the fourth quintile relative to
the management fees paid by other funds in its Strategic Insight peer group for
the comparable period. The Trustees considered that the expense ratio (based on
managed assets) of the Trust's common shares for the most recent fiscal year
was in the third quintile relative to its Strategic Insight peer group for the
comparable period.
The Trustees reviewed management fees charged by APAM and APIAM to
institutional and other clients, including publicly offered European funds
sponsored by APAM's affiliates, unaffiliated U.S. registered investment
companies (in a sub-advisory capacity), and unaffiliated foreign and domestic
separate accounts. The Trustees also considered APAM's costs in providing
services to the Trust and APAM's and APIAM's costs in providing services to the
other clients and considered the differences in management fees and profit
margins for fund and non-fund services. In evaluating the fees associated with
APAM's and APIAM's client accounts, the Trustees took into account the
respective demands, resources and complexity associated with the Trust and
other client accounts. The Trustees noted that, in some instances, the fee
rates for those clients were lower than the management fee for the Trust and
considered that, under the investment management agreement with the Trust, APAM
performs additional services for the Trust that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Trust's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Trust is subject. The
Trustees also considered the entrepreneurial risks associated with APAM's
management of the Trust.
The Trustees concluded that the management fee payable by the Trust to APAM was
reasonable in relation to the nature and quality of the services provided by
APAM.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 41
Profitability
The Trustees considered information provided by APAM regarding the
profitability of APAM with respect to the advisory services provided by APAM to
the Trust, including the methodology used by APAM in allocating certain of its
costs to the management of the Trust. The Trustees also considered APAM's
profit margin in connection with the overall operation of the Trust. They
further reviewed the financial results, including the profit margins, realized
by APAM and APIAM from non-fund businesses. The Trustees considered APAM's
profit margins in comparison to the limited industry data available and noted
that the profitability of any adviser was affected by numerous factors,
including its organizational structure and method for allocating expenses. The
Trustees concluded that APAM's profitability with respect to the management of
the Trust was not unreasonable.
Economies of Scale
The Trustees considered the extent to which APAM may realize economies of scale
or other efficiencies in managing and supporting the Trust. Since the Trust is
a closed-end fund that has not raised additional capital, the Trustees
concluded that economies of scale were not a relevant consideration in the
renewal of the investment advisory agreement.
Other Benefits
The Trustees considered the other benefits that APAM enjoys from its
relationship with the Trust. The Trustees considered the character and amount
of fees paid or to be paid by the Trust, other than under the investment
management agreement, for services provided by APAM and its affiliates. The
Trustees further considered the revenues and profitability of APAM's businesses
other than the Fund business. To the extent applicable, the Trustees also
considered the benefits to the Trust and to APAM and its affiliates from the
use of "soft" commission dollars generated by the Trust to pay for research and
brokerage services.
The Trustees considered that Amundi Pioneer is the principal U.S. asset
management business of Amundi, which is one of the largest asset managers
globally. Amundi's worldwide asset management business manages over $1.6
trillion in assets (including the Pioneer Funds). The Trustees considered that
APAM's relationship with Amundi creates potential opportunities for APAM, APIAM
and Amundi that derive from APAM's relationships with the Trust, including
Amundi's ability to market the services of APAM globally. The Trustees noted
that APAM has access to additional research and portfolio management
capabilities as a result of its relationship with Amundi and Amundi's enhanced
global presence that may contribute to an increase in the resources available
to APAM. The Trustees considered that APAM and the
42 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
Trust receive reciprocal intangible benefits from the relationship, including
mutual brand recognition and, for the Trust, direct and indirect access to the
resources of a large global asset manager. The Trustees concluded that any such
benefits received by APAM as a result of its relationship with the Trust were
reasonable.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including the Independent Trustees, concluded that the investment
management agreement for the Trust, including the fees payable thereunder, was
fair and reasonable and voted to approve the proposed renewal of the investment
management agreement.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19 43
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman Lisa M. Jones, President and
John E. Baumgardner, Jr. Chief Executive Officer
Benjamin M. Friedman Mark E. Bradley, Treasurer and
Margaret B.W. Graham Chief Financial and
Lisa M. Jones Accounting Officer
Lorraine H. Monchak Christopher J. Kelley, Secretary and
Marguerite A. Piret Chief Legal Officer
Fred J. Ricciardi
Kenneth J. Taubes
Investment Adviser and Administrator
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Legal Counsel
Morgan, Lewis & Bockius LLP
Transfer Agent
American Stock Transfer & Trust Company
|
Proxy Voting Policies and Procedures of the Trust are available without charge,
upon request, by calling our toll free number (1-800-710-0935). Information
regarding how the Trust voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.amundipioneer.com/us. This information is also available on
the Securities and Exchange Commission's web site at www.sec.gov.
44 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/19
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
|
For additional information, please contact your investment advisor or visit our
web site www.amundipioneer.com/us.
The Trust files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year as
an exhibit to its reports on Form N-PORT. Shareowners may view the filed Form
N-PORT by visiting the Commission's web site at https://www.sec.gov.
[LOGO] Amundi Pioneer
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com/us
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
[C] 2019 Amundi Pioneer Asset Management 19442-13-1219