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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21321
Pioneer Municipal High Income Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: April 30
Date of reporting period: May 1, 2016 through October 31, 2016
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, 2016
--------------------------------------------------------------------------------
Ticker Symbol: MHI
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Schedule of Investments 13
Financial Statements 23
Financial Highlights 26
Notes to Financial Statements 28
Approval of Investment Advisory Agreement 37
Trustees, Officers and Service Providers 41
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 1
President's Letter
Dear Shareowner,
While investors were greeted with a challenging market environment for the first
several weeks of the new year, the U.S. market generated modest single-digit
returns for both stocks and bonds through September 30th (the Bloomberg Barclays
Aggregate Bond Index was up by 5.8% through September 30, 2016, and the Standard
& Poor's 500 Index was up by 7.8%). Yet, it is becoming increasingly clear that
the investment landscape is undergoing significant change. For the past eight
years, global central banks have been the dominant force in the markets by
maintaining government bond yields at close to zero in an effort to stimulate
economic growth. With little room to lower rates further, however, central banks
may be losing their effectiveness. Many economies around the world are
experiencing slow growth as they face a variety of challenges, including the
shifting geopolitics driving "Brexit" - the United Kingdom's pending exit from
the European Union - as well as related movements in Europe, limited
productivity gains, aging populations, and transitioning economic models in
China and other emerging markets. In the United States, gross domestic product
(GDP) grew at a rate of approximately 1.2% in the first half of 2016, but GDP
growth registered a strong uptick in the third quarter of the year, driven
primarily by U.S. consumers.
Investors currently face a difficult environment. Government bond yields, as
noted earlier, had been near zero for most of the year and offered minimal
opportunity to produce income. However, recent developments such as the Federal
Reserve's decision to increase the Federal funds rate before the end of 2016
have driven yields slightly higher. The central bank-driven bull market in
riskier assets has pushed up valuations towards historic highs in the equity and
investment-grade and high-yield corporate bond markets. Central banks have
pledged to move gradually to normalize interest-rate policies as the global
economy recovers, but it will take many years for this historic credit cycle to
unwind. Politics may also influence markets or investor sentiment given the
current global political landscape. Donald Trump's surprising victory in the
November U.S. presidential election seems to have sparked a late-year market
rally, given the pro-growth proposals he promoted on the campaign trail, but it
is unclear just how many of his policy initiatives will be implemented. In
addition, continued challenges with Brexit and other geopolitical issues have
the potential to increase market volatility going forward. Against this
backdrop, investors are likely to face ongoing challenges when it comes to
finding opportunities for both income and capital appreciation, and while much
has been made of passive investing, we believe all investment decisions are
active choices.
2 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
Throughout Pioneer's history, we have believed in the importance of active
management. During challenging market conditions, we view the value of active
management as even more compelling. Our experienced and tenured investment teams
focus on identifying value across global markets using proprietary research,
careful risk management, and a long-term perspective. We believe our shareowners
can benefit from the experience and tenure of our investment teams as well as
the insights generated from our extensive research process.
As always, and particularly during times of market uncertainty, 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.
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
President and CEO
Pioneer Investment Management USA Inc.
December 19, 2016
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 | 10/31/16 3
Portfolio Management Discussion | 10/31/16
Municipal bonds generally produced positive returns during the six-month period
ended October 31, 2016, although an increase in interest rates undermined
performance in the final month of the period, particularly affecting longer-
maturity, higher-quality debt. 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, Director of
Municipals, a senior vice president and a portfolio manager at Pioneer, and Mr.
Chirunga, a vice president and a portfolio manager at Pioneer, are responsible
for the day-to-day management of the Trust.
Q How did Pioneer Municipal High Income Trust perform during the six-month
period ended October 31, 2016?
A Pioneer Municipal High Income Trust returned 1.44% at net asset value and
-7.64% at market price during the six-month period ended October 31, 2016.
During the same six-month period, the Trust's benchmarks, the Bloomberg
Barclays High Yield Municipal Bond Index and the Bloomberg Barclays
Municipal Bond Index, returned 4.50% and 0.49% at net asset value,
respectively. The Bloomberg Barclays High Yield Municipal 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
Barclays indices do not use leverage. While use of leverage increases
investment opportunity, it also increases investment risk.
During the same six-month period, the average return (at market price) of
the 11 closed end funds in Lipper's High Yield Municipal Debt Closed End
Funds category (which may or may not be leveraged) was -2.96%, while the
average return (at market price) of the 14 closed end funds in
Morningstar's High Yield Municipal Funds category (which may or may not be
leveraged), was -2.18%.
The shares of the Trust were selling at a 5.04% discount to net asset value
at the end of the period on October 31, 2016.
On October 31, 2016, the standardized 30-day SEC yield of the Trust's
shares was 2.93%*.
* 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 | 10/31/16
Q How would you describe the investment environment in the municipal bond
market during the six-month period ended October 31, 2016?
A For most of the period (May through September), the performance of both
investment grade and high-yield municipal bonds benefited from a supportive
market environment. During the period, market interest rates declined at
first, thus lifting the prices of bonds, and then rates stabilized for much
of the summer. At the same time, heavy demand from both traditional and
non-traditional municipal bond investors outstripped supply, leading to
generally higher municipal bond prices.
For most of the period's first five months, credit spreads - which reflect
the differences between the yields of higher- and lower-quality securities
- tightened, thus driving strong performance in the high-yield municipal
market. That positive environment began to change in September, however,
when the supply of new municipal bond issues increased dramatically as
issuers sought to take advantage of the low interest rates available in the
market. Shortly after that, market interest rates, led by U.S. Treasuries,
began rising on evidence of new strength in the domestic economy. In the
first official report for the quarter ending September 30, 2016, for
example, growth in U.S. gross domestic product (GDP) was estimated at an
annual rate of 2.9%, a sharp increase over the 1.4% GDP growth estimate for
the previous quarter. As signs of improvement in the U.S. economy
continued, thus creating the potential for greater inflationary pressures,
investors increased their expectation that the U.S. Federal Reserve System
(the Fed) was likely to raise the Federal funds rate in December. The
resulting increase in market interest rates led to price losses for
higher-quality, longer-maturity securities in the fixed-income markets,
including the municipal bond market. In the final month of the period, both
investment-grade and high-yield municipal bonds gave back some of the
gains realized between May and September.
Over the full six months, both investment-grade and high-yield bonds
generated positive returns, with high-yield outperforming by a significant
margin.
5 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
Q What factors affected the Fund's performance relative to its benchmarks
during the six-month period ended October 31, 2016?
A Overall, we maintained a well-diversified** portfolio with healthy
exposures to both the investment-grade and high-yield segments of the
municipal market, with the majority invested in investment-grade bonds. We
continued to emphasize owning project revenue bonds backed by dedicated
revenue sources of specific programs or projects.
The biggest drag on the Trust's benchmark-relative performance during the
period was the portfolio's significant underexposure to the debt of Puerto
Rico as well as other lower-rated municipals. On July 1, 2016, the
Commonwealth of Puerto Rico, a major issuer of high-yield municipal debt,
announced it would default on its general obligation bonds. While the
initial market reaction to the announcement was a spike in volatility, the
environment soon settled down as it became evident to investors that the
renegotiation of Puerto Rico's debt would likely result in issuance of
newer securities priced at higher levels than the market prices in effect
before the default announcement. In the end, Puerto Rico's debt actually
outperformed the municipal market for the full six-month period, as did the
distressed debt of other financially troubled issuers such as the State of
Illinois, the City of Chicago, and the Chicago Board of Education. The
Trust's minimal exposure to all of those distressed securities detracted
significantly from its benchmark-relative returns.
With regard to individual securities, several holdings in the portfolio did
particularly well during the period and aided the Trust's benchmark-
relative performance, including Commonwealth of Massachusetts development
bonds backed by revenues of a public television educational foundation, and
bonds issued by the District of Columbia backed by tobacco Master
Settlement Agreements. In addition, despite the underexposure to Puerto
Rico, which detracted from benchmark-relative returns, the Trust's
portfolio did hold some Puerto Rico-issued bonds that performed well and
contributed to relative performance.
Holdings that underperformed and detracted from the Trust's benchmark-
relative results during the period included securities backed by revenues
of: Alderson Broaddus University in Philippi, WV; a Massachusetts
continuing care retirement community; and a utility bond in Ohio backed by
revenues of FirstEnergy Generation Corp.
** Diversification does not assure a profit nor protect against loss.
6 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
Q Did you use any derivatives in managing the Trust's portfolio during the
six-month period ended October 31, 2016? If so, did the use of derivatives
affect the Trust's performance?
A No, the Trust had no exposure to derivatives during the six-month period.
Q What were the principal factors that affected the Trust's yield, or
distributions to shareholders, during the six-month period ended October
31, 2016?
A In August, we reduced the Trust's monthly distribution from 7 cents per
share to 6.25 cents per share. Two factors were responsible for the
reduction. First, as the municipal market experienced an increase in new
bond issues during the period, those new bonds often offered lower yields
than older bonds called in by issuers or that had reached maturity. Second,
the Trust's interest costs for borrowing money - or the use of leverage -
increased during the period due to rising interest rates on short-term,
money market municipal debt. As those rates increased, the cost of the
Trust's preferred shares, which the Trust issues to finance its borrowings,
also increased, thereby diminishing the Trust's current income available
for distribution to shareholders. In addition, the Trust has drawn on
accumulated net investment income in paying the Trust's distributions in
recent periods, but these reserves may be depleted over time.
Q How did the level of leverage in the Trust change during the six-month
period ended October 31, 2016?
A At the end of the six-month period on October 31, 2016, 25.0% of the
Trust's total managed assets were financed by leverage (borrowed funds),
compared with 24.8% of the Trust's total managed assets financed by
leverage at the start of the period on May 1, 2016. While the amount of
funds borrowed by the Trust decreased slightly, the increase in leverage as
a percentage of total managed assets was primarily due to the decline in
values of securities in which the Trust had invested.
Q What is your investment outlook?
A While the capital markets may be somewhat more volatile in the months
ahead, we continue to believe that the domestic economy should continue to
expand, sustained by an improving job market and gains in the housing
sector. Municipal bonds should do well in a period when the economy's
growth appears to be strengthening. We expect that over the next few
months, the economy's expansion should proceed at an annual pace of about
2%.
7 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
Going forward, we will seek to maintain our investment strategy of keeping
the Trust's portfolio well diversified, featuring both investment-grade and
high-yield municipal securities, with an emphasis on project revenue bonds
backed by predictable and reliable funding sources.
As of October 31, 2016, investment-grade debt accounted for 60% of the
Trust's total investment portfolio, while high-yield bonds represented the
remaining 40%. Project revenue bonds accounted for more than 85% of Trust's
total investment portfolio at period end.
Please refer to the Schedule of Investments on pages 13-22 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.
Interest rates in the U.S. recently have been historically low, so the Trust
faces a heightened risk that interest rates may rise. A general rise in interest
rates may cause investors to move out of fixed income securities on a large
scale, which 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.
8 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
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. Since February of
2008, regularly scheduled auctions for the Trust's preferred shares have failed
and preferred shareowners have not been able to sell their shares at auction.
The Board of Trustees of the Trust has considered, and continues to consider,
this issue.
The Trust is required to maintain certain regulatory, 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.
Risks of investing in the Trust are discussed in greater detail in the Trust's
original offering prospectus and in shareowner reports issued from time to time.
These risks may increase share price volatility.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
9 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
Portfolio Summary | 10/31/16
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Insured 15.0%
Revenue Bonds:
Other Revenue 20.1%
Development Revenue 13.0%
Health Revenue 12.9%
Facilities Revenue 9.4%
Education Revenue 9.2%
Tobacco Revenue 8.8%
Transportation Revenue 6.4%
Water Revenue 2.4%
Airport Revenue 1.5%
Pollution Control Revenue 1.3%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Metropolitan Pier & Exposition Authority, McCormick Place, Series B, 6/15/22
(NATL Insured) 4.34%
------------------------------------------------------------------------------------------------
2. State of Washington, Motor Vehicle Sales Tax, Series C, 6/1/22 (NATL Insured) 3.26
------------------------------------------------------------------------------------------------
3. North Texas Tollway Authority, Series F, 5.75%, 1/1/33 2.65
------------------------------------------------------------------------------------------------
4. Massachusetts Development Finance Agency, WGBH Foundation, Series A,
5.75%, 1/1/42 (AMBAC Insured) 2.48
------------------------------------------------------------------------------------------------
5. Lehman Municipal Trust Receipts, RIB, 11.766%, 11/1/39 (144A) (AGM Insured) 2.33
------------------------------------------------------------------------------------------------
6. New York State Dormitory Authority, Series C, 5.0%, 3/15/39 2.21
------------------------------------------------------------------------------------------------
7. State of Minnesota, Series B, 4.0%, 8/1/27 1.78
------------------------------------------------------------------------------------------------
8. District of Columbia Tobacco Settlement Financing Corp., Asset-Backed,
6.75%, 5/15/40 1.56
------------------------------------------------------------------------------------------------
9. Public Finance Authority, Glenridge Palmer Ranch, Series A, 8.25%, 6/1/46 1.54
------------------------------------------------------------------------------------------------
10. Wisconsin Department of Transportation, Series A, 5.0%, 7/1/28 1.53
------------------------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
10 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
Prices and Distributions | 10/31/16
Market Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
10/31/16 4/30/16
--------------------------------------------------------------------------------
Market Value $12.63 $14.07
--------------------------------------------------------------------------------
Premium/(Discount) (5.0)% 4.3%
--------------------------------------------------------------------------------
Net Asset Value per Common Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
10/31/16 4/30/16
--------------------------------------------------------------------------------
Net Asset Value $13.30 $13.49
--------------------------------------------------------------------------------
Distributions per Common Share*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
5/1/16 - 10/31/16 $0.38 $ -- $ --
--------------------------------------------------------------------------------
Yields
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
10/31/16 4/30/16
--------------------------------------------------------------------------------
30-Day SEC Yield 2.93% 3.37%
--------------------------------------------------------------------------------
The data shown above represents past performance, which is no guarantee of
future results.
* The amount of distributions made to shareowners during the period was in
excess of the net investment income earned by the Trust during the
period. The Trust has accumulated undistributed net investment income which
is part of the Trust's NAV. A portion of this accumulated net investment
income was distributed to shareowners during the period. A decrease in
distributions may have a negative effect on the market value of the Trust's
shares.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 11
Performance Update | 10/31/16
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 High Yield Municipal Bond Index.
Average Annual Total Returns
(As of October 31, 2016)
--------------------------------------------------------------------------------
Bloomberg
Bloomberg Barclays
Barclays High Yield
Net Municipal Municipal
Asset Bond Bond
Value Market Index Index
Period (NAV) Price (NAV) (NAV)
--------------------------------------------------------------------------------
10 years 5.63% 6.13% 4.57% 4.66%
5 years 7.07 4.99 4.34 7.13
1 year 6.25 2.04 4.06 8.61
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Municipal Bloomberg Barclays Bloomberg Barclays
High Income Trust Municipal Bond Index High Yield Municipal
10/06 $10,000 $10,000 $10,000
10/07 $10,666 $10,291 $10,226
10/08 $ 7,393 $ 9,951 $ 8,291
10/09 $11,171 $11,304 $ 9,496
10/10 $13,794 $12,183 $10,812
10/11 $14,213 $12,644 $11,176
10/12 $17,229 $13,786 $13,068
10/13 $16,643 $13,549 $12,739
10/14 $19,237 $14,608 $14,120
10/15 $17,767 $15,027 $14,523
10/16 $18,130 $15,637 $15,774
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
Performance data shown represents past performance. Past performance is no
guarantee of future results. Investment return and market price will fluctuate,
and your shares may trade below NAV due to such factors as interest rate changes
and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions.
All performance is for common shares of the Trust.
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 $3 million. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Trust returns, do not
reflect any fees, expenses or sales charges. The indices do not use leverage. It
is not possible to invest directly in the indices.
12 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
Schedule of Investments | 10/31/16 (unaudited)
----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------
TAX EXEMPT OBLIGATIONS -- 131.3% of
Net Assets (a)
Alabama -- 1.5%
4,500,000 Huntsville-Redstone Village Special Care Facilities Financing
Authority, Redstone Village Project, 5.5%, 1/1/43 $ 4,504,950
----------------------------------------------------------------------------------------------------
Arizona -- 0.7%
2,250,000 City of Phoenix, AZ, Industrial Development Authority, 3rd &
Indian School Assisted Living Project, 5.4%, 10/1/36 $ 2,201,558
24,000 County of Pima, AZ, Industrial Development Authority, Arizona
Charter Schools Project, Series C, 6.75%, 7/1/31 24,059
---------------
$ 2,225,617
----------------------------------------------------------------------------------------------------
California -- 10.0%
10,000,000(b) California County Tobacco Securitization Agency, Capital
Appreciation, Stanislaus County Subordinated, Series A,
6/1/46 $ 1,377,200
1,450,000 California Enterprise Development Authority, Sunpower Corp.,
8.5%, 4/1/31 1,634,367
650,000 California Municipal Finance Authority, Santa Rosa Academy
Project, Series A, 5.75%, 7/1/30 715,078
5,000,000 California Pollution Control Financing Authority, 5.0%,
7/1/37 (144A) 5,115,850
1,740,000 California School Finance Authority, Classical Academies
Project, Series A, 7.375%, 10/1/43 2,088,696
1,400,000 California Statewide Communities Development Authority,
Lancer Plaza Project, 5.625%, 11/1/33 1,484,196
568,006(c) California Statewide Communities Development Authority,
Microgy Holdings Project, 9.0%, 12/1/38 6
7,885,000(d) Lehman Municipal Trust Receipts, RIB, 11.766%,
11/1/39 (144A) (AGM Insured) 9,292,551
2,000,000(e) Los Angeles Community College District, Series G,
4.0%, 8/1/39 2,179,200
1,000,000 River Islands Public Financing Authority, Community
Facilities, 5.5%, 9/1/45 1,091,750
2,000,000 Tobacco Securitization Authority of Northern California,
Asset-Backed, Series A-1, 5.375%, 6/1/38 1,987,280
3,000,000 Tobacco Securitization Authority of Southern California,
Series A-1, 5.0%, 6/1/37 2,964,540
---------------
$ 29,930,714
----------------------------------------------------------------------------------------------------
Colorado -- 1.2%
1,500,000 Colorado Educational & Cultural Facilities Authority, Rocky
Mountain Classical Academy Project, 8.0%, 9/1/43 $ 1,580,145
2,000,000 Colorado Health Facilities Authority, Valley View Association
Project, 5.25%, 5/15/42 2,038,020
---------------
$ 3,618,165
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 13
Schedule of Investments | 10/31/16 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------
Connecticut -- 2.9%
2,235,000 Mohegan Tribal Finance Authority, 7.0%, 2/1/45 (144A) $ 2,346,214
5,000,000(e) State of Connecticut, Series E, 4.0%, 9/1/30 5,485,650
1,000,000 Town of Hamden, CT, Whitney Center Project, Series A,
7.75%, 1/1/43 1,046,040
---------------
$ 8,877,904
----------------------------------------------------------------------------------------------------
District of Columbia -- 5.0%
25,000,000(b) District of Columbia Tobacco Settlement Financing Corp.,
Capital Appreciation, Asset-Backed, Series A, 6/15/46 $ 3,176,000
4,885,000 District of Columbia Tobacco Settlement Financing Corp.,
Asset-Backed, 6.5%, 5/15/33 5,862,244
6,000,000 District of Columbia Tobacco Settlement Financing Corp.,
Asset-Backed, 6.75%, 5/15/40 6,208,140
---------------
$ 15,246,384
----------------------------------------------------------------------------------------------------
Florida -- 4.9%
1,500,000 Alachua County Health Facilities Authority, Terraces Bonita
Springs Project, Series A, 8.125%, 11/15/41 $ 1,768,935
1,500,000 Alachua County Health Facilities Authority, Terraces Bonita
Springs Project, Series A, 8.125%, 11/15/46 1,765,965
2,260,000(c) County of Liberty, FL, Twin Oaks Project, 8.25%, 7/1/28 335,226
2,500,000(f) County of Miami-Dade, FL, Aviation Revenue, Series B,
5.5%, 10/1/41 2,817,950
5,000,000 Florida's Turnpike Enterprise, Department of Transportation,
Series A, 4.0%, 7/1/34 5,375,500
1,000,000(f) Hillsborough County Industrial Development Authority,
Various Health Facilities, 8.0%, 8/15/32 1,199,750
2,250,000(c)(d) St. Johns County Industrial Development Authority, Glenmoor
Project, Series A, 1.344%, 1/1/49 1,529,640
832,581(c) St. Johns County Industrial Development Authority, Glenmoor
Project, Series B, 2.5%, 1/1/49 8
---------------
$ 14,792,974
----------------------------------------------------------------------------------------------------
Georgia -- 3.0%
1,560,000(d) Athens-Clarke County Unified Government Development
Authority, University of Georgia Athletic Association
Project, 0.48%, 8/1/33 $ 1,560,000
2,500,000 Clayton County Development Authority, Delta Air Lines,
Series A, 8.75%, 6/1/29 3,022,900
4,000,000 Private Colleges & Universities Authority, Emory University,
Series A, 5.0%, 10/1/43 4,686,880
---------------
$ 9,269,780
----------------------------------------------------------------------------------------------------
Idaho -- 1.7%
5,000,000 Power County Industrial Development Corp., FMC Corp.
Project, 6.45%, 8/1/32 $ 5,010,700
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------
Illinois -- 14.1%
2,087,000(d) Illinois Finance Authority, Clare Oaks Project, Series B, 4.0%,
11/15/52 $ 1,468,476
1,305,000(b) Illinois Finance Authority, Clare Oaks Project, Series C-1,
11/15/52 46,458
261,000(b) Illinois Finance Authority, Clare Oaks Project, Series C-2,
11/15/52 71,125
261,000(b) Illinois Finance Authority, Clare Oaks Project, Series C-3,
11/15/52 44,733
2,000,000(c) Illinois Finance Authority, Greenfields of Geneva Project,
Series A, 8.125%, 2/15/40 1,580,000
2,500,000(c) Illinois Finance Authority, Greenfields of Geneva Project,
Series A, 8.25%, 2/15/46 1,975,000
2,000,000 Illinois Finance Authority, Northwestern Memorial
Hospital, Series A, 6.0%, 8/15/39 2,260,120
2,500,000 Illinois Finance Authority, Roosevelt University Project,
6.5%, 4/1/39 2,713,675
3,865,000 Illinois Finance Authority, Swedish Covenant, Series A,
6.0%, 8/15/38 4,264,912
1,700,000 Illinois Finance Authority, The Admiral at the Lake Project,
Series A, 7.625%, 5/15/25 1,949,033
600,000 Illinois Finance Authority, The Admiral at the Lake Project,
Series A, 7.75%, 5/15/30 688,218
2,000,000 Illinois Finance Authority, The Admiral at the Lake Project,
Series A, 8.0%, 5/15/40 2,296,220
3,200,000 Illinois Finance Authority, The Admiral at the Lake Project,
Series A, 8.0%, 5/15/46 3,643,328
1,485,000(b)(g) Metropolitan Pier & Exposition Authority, McCormick
Place, Series B, 6/15/22 (NATL Insured) 1,735,817
15,395,000(b) Metropolitan Pier & Exposition Authority, McCormick
Place, Series B, 6/15/22 (NATL Insured) 17,310,138
1,045,000 Southwestern Illinois Development Authority, Village of
Sauget Project, 5.625%, 11/1/26 971,338
---------------
$ 43,018,591
----------------------------------------------------------------------------------------------------
Indiana -- 1.8%
250,000 City of Carmel, IN, Barrington Carmel Project, Series A,
7.0%, 11/15/32 $ 280,912
750,000 City of Carmel, IN, Barrington Carmel Project, Series A,
7.125%, 11/15/42 843,427
500,000 City of Carmel, IN, Barrington Carmel Project, Series A,
7.125%, 11/15/47 560,890
3,570,000(f) Vigo County Hospital Authority, Union Hospital, Inc.,
5.8%, 9/1/47 (144A) 3,718,940
---------------
$ 5,404,169
----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 15
Schedule of Investments | 10/31/16 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------
Kentucky -- 1.9%
5,000,000 Kentucky Economic Development Finance Authority,
Owensboro Medical Health System, Series A,
6.375%, 6/1/40 $ 5,641,700
----------------------------------------------------------------------------------------------------
Louisiana -- 3.0%
2,260,000 Jefferson Parish Hospital Service District No. 2, East
Jefferson General Hospital, 6.375%, 7/1/41 $ 2,457,208
1,500,000 Louisiana Local Government Environmental Facilities &
Community Development Authority, Westlake Chemical
Corp. Project, 6.75%, 11/1/32 1,575,795
1,380,000(f) Louisiana Public Facilities Authority, Ochsner Clinic
Foundation Project, Series A, 5.5%, 5/15/47 1,415,563
3,620,000 Louisiana Public Facilities Authority, Ochsner Clinic
Foundation Project, Series A, 5.5%, 5/15/47 3,690,264
---------------
$ 9,138,830
----------------------------------------------------------------------------------------------------
Maine -- 2.3%
1,500,000 Maine Health & Higher Educational Facilities Authority,
Maine General Medical Center, 7.5%, 7/1/32 $ 1,757,565
4,480,000 Maine Turnpike Authority, Series A, 5.0%, 7/1/42 5,199,174
---------------
$ 6,956,739
----------------------------------------------------------------------------------------------------
Maryland -- 0.6%
1,480,000 Maryland Health & Higher Educational Facilities Authority,
City Neighbors, Series A, 6.75%, 7/1/44 $ 1,666,672
----------------------------------------------------------------------------------------------------
Massachusetts -- 6.9%
7,000,000(b) Massachusetts Bay Transportation Authority, Series A,
7/1/28 $ 5,226,480
975,158 Massachusetts Development Finance Agency, Linden
Ponds, Inc., Series A-1, 5.5%, 11/15/46 914,181
7,100,000 Massachusetts Development Finance Agency, WGBH
Foundation, Series A, 5.75%, 1/1/42 (AMBAC Insured) 9,890,584
445,000 Massachusetts Educational Financing Authority, Series I,
6.0%, 1/1/28 471,762
3,100,000 Massachusetts Health & Educational Facilities Authority,
Massachusetts Institute of Technology, Series K, 5.5%,
7/1/32 4,309,124
100,000(d) Massachusetts Health & Educational Facilities Authority,
Children's Hospital Corp., Series N-4, 0.51%, 10/1/49 100,000
---------------
$ 20,912,131
----------------------------------------------------------------------------------------------------
Michigan -- 3.7%
895,000(c) Doctor Charles Drew Academy, Certificate of Participation,
5.7%, 11/1/36 $ 44,750
2,000,000 Kent Hospital Finance Authority, Metropolitan Hospital
Project, Series A, 6.25%, 7/1/40 1,992,680
The accompanying notes are an integral part of these financial statements.
16 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------
Michigan -- (continued)
2,640,000 Michigan State University, Series A, 5.0%, 8/15/41 $ 3,072,934
6,100,000 Michigan Tobacco Settlement Finance Authority, Series A,
6.0%, 6/1/48 6,019,663
---------------
$ 11,130,027
----------------------------------------------------------------------------------------------------
Minnesota -- 3.0%
2,000,000 Bloomington Port Authority, Radisson Blu Mall of America,
9.0%, 12/1/35 $ 2,183,940
6,000,000(e) State of Minnesota, Series B, 4.0%, 8/1/27 7,104,300
---------------
$ 9,288,240
----------------------------------------------------------------------------------------------------
Mississippi -- 1.0%
380,000(d) Mississippi Business Finance Corp., Chevron USA, Inc.,
Project, Series B, 0.52%, 12/1/30 $ 380,000
705,000(d) Mississippi Business Finance Corp., Chevron USA, Inc.,
Project, Series C, 0.48%, 12/1/30 705,000
2,000,000(d) Mississippi Business Finance Corp., Chevron USA, Inc.,
Project, Series F, 0.52%, 12/1/30 2,000,000
---------------
$ 3,085,000
----------------------------------------------------------------------------------------------------
Montana -- 0.0%+
1,600,000(c) Two Rivers Authority, Inc., 7.375%, 11/1/27 $ 47,952
----------------------------------------------------------------------------------------------------
New Jersey -- 2.0%
3,000,000 New Jersey Economic Development Authority, Continental
Airlines, 5.25%, 9/15/29 $ 3,335,520
2,500,000 New Jersey Economic Development Authority, Continental
Airlines, 5.75%, 9/15/27 2,829,275
---------------
$ 6,164,795
----------------------------------------------------------------------------------------------------
New Mexico -- 1.4%
1,500,000 County of Otero, NM, Otero County Jail Project,
6.0%, 4/1/23 $ 1,465,035
2,960,000 County of Otero, NM, Otero County Jail Project,
6.0%, 4/1/28 2,840,416
---------------
$ 4,305,451
----------------------------------------------------------------------------------------------------
New York -- 6.3%
2,000,000 Chautauqua County Capital Resource Corp., Women's
Christian Association Project, Series A, 8.0%, 11/15/30 $ 2,005,400
2,000,000 Hempstead Local Development Corp., Molloy College
Project, 5.75%, 7/1/39 2,184,480
1,000,000 New York State Dormitory Authority, Orange Medical
Center, 6.125%, 12/1/29 1,067,500
7,500,000 New York State Dormitory Authority, Series C, 5.0%,
3/15/39 8,793,600
1,500,000 New York State Dormitory Authority, Trustees of
Columbia University, 5.0%, 10/1/45 2,088,105
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 17
Schedule of Investments | 10/31/16 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------
New York -- (continued)
2,497,540 Westchester County Healthcare Corp., Series A, 5.0%,
11/1/44 $ 2,788,304
---------------
$ 18,927,389
----------------------------------------------------------------------------------------------------
North Carolina -- 0.7%
355,000(d) Charlotte-Mecklenburg Hospital Authority, Carolinas
Healthcare System, Series B, 0.47%, 1/15/26 $ 355,000
1,835,000(d) Charlotte-Mecklenburg Hospital Authority, Carolinas
Healthcare System, Series C, 0.47%, 1/15/26 1,835,000
---------------
$ 2,190,000
----------------------------------------------------------------------------------------------------
North Dakota -- 1.0%
2,525,000(f) County of Burleigh, ND, St. Alexius Medical Center,
5.0%, 7/1/38 $ 3,029,949
----------------------------------------------------------------------------------------------------
Ohio -- 6.3%
1,325,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 5.75%, 6/1/34 $ 1,235,324
2,500,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 5.875%, 6/1/47 2,350,075
1,700,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 6.0%, 6/1/42 1,620,593
6,000,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 6.5%, 6/1/47 5,901,780
2,000,000(d) Ohio Air Quality Development Authority, FirstEnergy
Generation Corp. Project, 3.1%, 3/1/23 1,829,480
3,000,000(d) Ohio Air Quality Development Authority, FirstEnergy
Solutions Corp. Project, Series D, 4.25%, 8/1/29 2,947,560
2,500,000(e) State of Ohio, Common Schools, Series B, 5.0%, 6/15/29 2,976,400
---------------
$ 18,861,212
----------------------------------------------------------------------------------------------------
Oregon -- 2.0%
5,190,000 Oregon Health & Science University, Series E, 5.0%, 7/1/32 $ 6,023,099
----------------------------------------------------------------------------------------------------
Pennsylvania -- 7.4%
1,550,000 Allegheny County Hospital Development Authority, South
Hills Health, Series A, 5.125%, 5/1/25 $ 1,554,712
3,000,000(d) Beaver County Industrial Development Authority, FirstEnergy
Solutions Corp. Project, Series A, 3.5%, 4/1/41 2,583,840
600,000(d) Geisinger Authority, Giesinger Health System, Series B,
0.45%, 8/1/22 600,000
1,280,000(c) Langhorne Manor Borough Higher Education Authority, Lower
Bucks Hospital, 7.35%, 7/1/22 316,685
5,000,000 Pennsylvania Economic Development Financing Authority,
USG Corp. Project, 6.0%, 6/1/31 5,000,850
500,000 Philadelphia Authority for Industrial Development, Greater
Philadelphia Health Action, Inc., Project, Series A,
6.625%, 6/1/50 528,935
The accompanying notes are an integral part of these financial statements.
18 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------
Pennsylvania -- (continued)
2,000,000 Philadelphia Authority for Industrial Development, Nueva
Esperanze, Inc., 8.2%, 12/1/43 $ 2,300,360
1,000,000 Philadelphia Authority for Industrial Development,
Performing Arts Charter School Project, 6.5%,
6/15/33 (144A) 1,055,840
2,000,000 Philadelphia Authority for Industrial Development,
Performing Arts Charter School Project, 6.75%,
6/15/43 (144A) 2,119,260
5,900,000 Philadelphia Hospitals & Higher Education Facilities
Authority, Temple University Health System, Series A,
5.0%, 7/1/34 5,964,605
---------------
$ 22,025,087
----------------------------------------------------------------------------------------------------
Puerto Rico -- 1.4%
6,255,000(c)(e) Commonwealth of Puerto Rico, Series A, 8.0%, 7/1/35 $ 4,261,219
----------------------------------------------------------------------------------------------------
Rhode Island -- 1.4%
5,900,000(c) Central Falls Detention Facility Corp., 7.25%, 7/15/35 $ 1,463,849
1,500,000 Rhode Island Health & Educational Building Corp.,
Tockwatten Home Issue, 8.375%, 1/1/46 1,730,205
10,000,000(b) Tobacco Settlement Financing Corp., Asset-Backed,
Series A, 6/1/52 935,600
---------------
$ 4,129,654
----------------------------------------------------------------------------------------------------
Texas -- 15.7%
1,000,000 Arlington Higher Education Finance Corp., Universal
Academy, Series A, 7.0%, 3/1/34 $ 1,048,670
2,500,000(f) Central Texas Regional Mobility Authority, Sub Lien, 6.75%,
1/1/41 3,056,500
2,490,000(e) County of Harris, TX, Series A, 5.0%, 10/1/26 3,118,600
5,000,000(e) Goose Creek Consolidated Independent School District,
Series C, 4.0%, 2/15/26 (PSF-GTD Insured) 5,758,350
725,078(c) Gulf Coast Industrial Development Authority, Microgy
Holdings Project, 7.0%, 12/1/36 7
1,500,000(d) Harris County Health Facilities Development Corp., The
Methodist Hospital System, Series A-1, 0.54%, 12/1/41 1,500,000
3,300,000(d) Harris County Health Facilities Development Corp., The
Methodist Hospital System, Series A-2, 0.54%, 12/1/41 3,300,000
2,800,000(d) Lower Neches Valley Authority Industrial Development
Corp., Exxon Capital Ventures, Inc., 0.49%, 11/1/38 2,800,000
3,785,000 North Texas Tollway Authority, Series A, 5.0%, 1/1/35 4,377,012
10,000,000(f) North Texas Tollway Authority, Series F, 5.75%, 1/1/33 10,568,700
1,500,000(f) Red River Health Facilities Development Corp., MRC
Crestview, Series A, 8.0%, 11/15/41 1,977,240
3,960,000 Sanger Industrial Development Corp., Texas Pellets
Project, Series B, 8.0%, 7/1/38 3,337,211
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 19
Schedule of Investments | 10/31/16 (unaudited) (continued)
----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------
Texas -- (continued)
1,000,000 Tarrant County Cultural Education Facilities Finance Corp.,
Mirador Project, Series A, 8.125%, 11/15/39 $ 845,330
1,000,000 Tarrant County Cultural Education Facilities Finance Corp.,
Mirador Project, Series A, 8.25%, 11/15/44 845,090
2,000,000(f) Tarrant County Cultural Education Facilities Finance
Corp., MRC Crestview Project, 8.0%, 11/15/34 2,522,640
2,500,000 Travis County Health Facilities Development Corp., Longhorn
Village Project, 7.125%, 1/1/46 2,810,700
---------------
$ 47,866,050
----------------------------------------------------------------------------------------------------
Virginia -- 1.4%
4,000,000 Upper Occoquan Sewage Authority, 4.0%, 7/1/41 $ 4,379,880
----------------------------------------------------------------------------------------------------
Washington -- 9.7%
2,500,000(e) King County Issaquah School District No. 411, 4.0%,
12/1/31 (SCH BD GTY Insured) $ 2,783,950
14,315,000(b)(e) State of Washington, Motor Vehicle Sales Tax, Series C,
6/1/22 (NATL Insured) 13,000,024
2,500,000 University of Washington, Series B, 5.0%, 6/1/29 3,049,875
3,795,000(f) Washington State Health Care Facilities Authority, Fred
Hutchinson Cancer Research Center, Series A,
6.0%, 1/1/33 4,294,080
1,150,000 Washington State Housing Finance Commission,
Mirabella Project, Series A, 6.75%, 10/1/47 1,253,305
5,000,000 Washington State Housing Finance Commission, Skyline
at First Hill Project, Series A, 5.625%, 1/1/27 5,038,250
---------------
$ 29,419,484
----------------------------------------------------------------------------------------------------
West Virginia -- 0.5%
2,000,000(c) City of Philippi, WV, Alderson-Broaddus College, Inc.,
Series A, 7.75%, 10/1/44 $ 999,960
725,000(c) West Virginia Hospital Finance Authority, Highland
Hospital Group, 9.125%, 10/1/41 670,553
---------------
$ 1,670,513
----------------------------------------------------------------------------------------------------
Wisconsin -- 4.9%
5,000,000 Public Finance Authority, Glenridge Palmer Ranch,
Series A, 8.25%, 6/1/46 $ 6,152,800
750,000 Public Finance Authority, Roseman University Health
Sciences Project, 5.875%, 4/1/45 794,070
1,500,000 Public Finance Authority, SearStone CCRC Project,
Series A, 8.625%, 6/1/47 (144A) 1,756,620
The accompanying notes are an integral part of these financial statements.
20 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
----------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
----------------------------------------------------------------------------------------------------
Wisconsin -- (continued)
5,000,000 Wisconsin Department of Transportation, Series A,
5.0%, 7/1/28 $ 6,094,900
---------------
$ 14,798,390
----------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT OBLIGATIONS
(Cost $373,995,591) $ 397,819,411
----------------------------------------------------------------------------------------------------
MUNICIPAL COLLATERALIZED DEBT OBLIGATION --
0.3% of Net Assets
10,000,000(d) Non-Profit Preferred Funding Trust I, Series E, 0.0%,
9/15/37 (144A) $ 766,300
----------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL COLLATERALIZED DEBT OBLIGATION
(Cost $10,000,000) $ 766,300
----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 131.6%
(Cost -- $383,995,591) (h) $ 398,585,711
----------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.8% $ 5,207,802
----------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (33.4)% $ (100,994,541)
----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHAREOWNERS -- 100.0% $ 302,798,972
====================================================================================================
(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, 2016, the value of these securities
amounted to $26,171,575, or 8.6% of total net assets applicable to
common shareowners.
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, 2016.
+ Amount rounds to less than 0.1%.
(a) Consists of Revenue Bonds unless otherwise indicated.
(b) Security issued with a zero coupon. Income is recognized through
accretion of discount.
(c) Security is in default.
(d) The interest rate is subject to change periodically. The interest
rate shown is the rate at October 31, 2016.
(e) Represents a General Obligation Bond.
(f) 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.
(g) Escrow to maturity.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 21
Schedule of Investments | 10/31/16 (unaudited) (continued)
(h) At October 31, 2016, the net unrealized appreciation on investments
based on cost for federal tax purposes of $376,890,105 was as
follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost $ 40,816,872
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value (19,121,266)
------------
Net unrealized appreciation $ 21,695,606
============
For financial reporting purposes net unrealized appreciation on investments was
$14,590,120 and cost of investments aggregated $383,995,591.
Purchases and sales of securities (excluding temporary cash investments) for the
period ended October 31, 2016 aggregated $50,393,684 and $36,542,317
respectively.
The Trust is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which PIM serves as the 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, 2016, the Trust did not engage in cross trade activity.
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, 2016, in valuing
the Trust's investments.
--------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------
Tax Exempt Obligations $ -- $397,819,411 $ -- $397,819,411
Municipal Collateralized
Debt Obligation -- 766,300 -- 766,300
--------------------------------------------------------------------------------------
Total $ -- $398,585,711 $ -- $398,585,711
======================================================================================
During the six months ended October 31, 2016, there were no transfers between
Levels 1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
22 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
Statement of Assets and Liabilities | 10/31/16 (unaudited)
ASSETS:
Investments in securities (cost $383,995,591) $398,585,711
Receivables --
Investment securities sold 134,083
Interest 6,009,159
Prepaid expenses 992
------------------------------------------------------------------------------------------
Total assets $404,729,945
==========================================================================================
LIABILITIES:
Due to custodian 554,261
Payables --
Administration fee 99,867
Trustees' fees 1,274
Auction agent fees 18,691
Printing expense 8,497
Pricing fees 3,242
Due to affiliates 205,685
Accrued expenses 44,915
------------------------------------------------------------------------------------------
Total liabilities $ 936,432
==========================================================================================
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 4,040 shares, including
dividends receivable of $5,459 $100,994,541
------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $314,562,339
Undistributed net investment income 2,384,552
Accumulated net realized loss on investments (28,738,039)
Net unrealized appreciation on investments 14,590,120
------------------------------------------------------------------------------------------
Net assets applicable to common shareowners $302,798,972
==========================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $302,798,972 / 22,771,349 common shares $ 13.30
==========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 23
Statement of Operations (unaudited)
For the Six Months Ended 10/31/16
INVESTMENT INCOME:
Interest $ 9,897,445
--------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,240,443
Administrative expense 115,542
Transfer agent fees 7,402
Shareholder communication expense 9,419
Auction agent fees 63,517
Custodian fees 3,023
Professional fees 45,911
Printing expense 3,766
Trustees' fees 7,777
Pricing fees 9,460
Miscellaneous 42,411
--------------------------------------------------------------------------------------------
Total expenses $ 1,548,671
--------------------------------------------------------------------------------------------
Net investment income $ 8,348,774
--------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments: $ 2,336,633
Change in net unrealized appreciation (depreciation)
on investments: $(5,920,636)
--------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $(3,584,003)
--------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM
NET INVESTMENT INCOME: $ (483,744)
--------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 4,281,027
============================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------
Six Months
Ended
10/31/16 Year Ended
(unaudited) 4/30/16
-----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 8,348,774 $ 18,820,592
Net realized gain (loss) on investments 2,336,633 150,831
Change in net unrealized appreciation (depreciation)
on investments (5,920,636) 4,498,035
Distributions to preferred shareowners from net
investment income (483,744) (301,213)
-----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 4,281,027 $ 23,168,245
-----------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income and previously undistributed
net investment income ($0.38 and $0.84 per
share, respectively) $ (8,707,997) $ (19,102,844)
-----------------------------------------------------------------------------------------
Total distributions to common shareowners $ (8,707,997) $ (19,102,844)
-----------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ 199,322 $ 243,355
-----------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners from Trust share transactions $ 199,322 $ 243,355
-----------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners $ (4,227,648) $ 4,308,756
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period $307,026,620 $ 302,717,864
-----------------------------------------------------------------------------------------
End of period $302,798,972 $ 307,026,620
-----------------------------------------------------------------------------------------
Undistributed net investment income $ 2,384,552 $ 3,227,519
=========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 25
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
10/31/16 Ended Ended Ended Ended Ended
(unaudited) 4/30/16 4/30/15 4/30/14 4/30/13 4/30/12
------------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance
Net asset value, beginning of period $ 13.49 $ 13.31 $ 13.33 $ 14.72 $ 14.12 $ 13.00
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 0.37 $ 0.83 $ 0.91 $ 1.05 $ 1.14 $ 1.03
Net realized and unrealized gain (loss) on investments (0.16) 0.20 0.16 (1.29) 0.61 1.30
------------------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareowners from:
Net investment income $ (0.02) $ (0.01) $ (0.01) $ (0.01) $ (0.01) $ (0.01)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.19 $ 1.02 $ 1.06 $ (0.25) $ 1.74 $ 2.32
------------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income and previously undistributed
net investment income $ (0.38)* $ (0.84)* $ (1.08)* $ (1.14)* $ (1.14) $ (1.20)*
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.19) $ 0.18 $ (0.02) $ (1.39) $ 0.60 $ 1.12
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period (b) $ 13.30 $ 13.49 $ 13.31 $ 13.33 $ 14.72 $ 14.12
------------------------------------------------------------------------------------------------------------------------------------
Market value, end of period (b) $ 12.63 $ 14.07 $ 14.75 $ 14.90 $ 16.02 $ 15.49
====================================================================================================================================
Total return at market value (c) (7.64)%(d) 1.75% 6.84% 1.10% 11.48% 25.95%
Ratios to average net assets of common shareowners:
Total expenses (e) 0.99%(f) 1.05% 1.03% 1.04% 1.03% 1.08%
Net investment income before preferred share
distributions 5.36%(f) 6.24% 6.73% 7.89% 7.84% 7.50%
Preferred share distribution 0.31%(f) 0.10% 0.04% 0.05% 0.08% 0.08%
Net investment income available to common shareowners 5.05%(f) 6.14% 6.69% 7.84% 7.76% 7.42%
Portfolio turnover 9% 9% 14% 19% 10% 11%
Net assets of common shareowners, end of period (in
thousands) $302,799 $307,027 $302,718 $301,872 $332,193 $317,631
The accompanying notes are an integral part of these financial statements.
26 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
10/31/16 Ended Ended Ended Ended Ended
(unaudited) 4/30/16 4/30/15 4/30/14 4/30/13 4/30/12
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) $101,000 $101,000 $101,001 $101,000 $101,000 $101,000
Asset coverage per preferred share, end of period $ 99,949 $100,998 $ 99,930 $ 99,721 $107,211 $103,623
Average market value per preferred share (g) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per
preferred share $ 24,999 $ 25,001 $ 25,000 $ 25,001 $ 25,001 $ 25,001
====================================================================================================================================
* The amount of distributions made to shareowners during the period were in
excess of the net investment income earned by the Trust during the period.
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 period. A decrease in
distributions may have a negative effect on the market value of the Trust's
shares.
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Net asset value and market value are published in Barron's on Saturday, The
Wall Street Journal on Monday and The New York Times on Monday and
Saturday.
(c) Total investment return is calculated assuming a purchase of common shares
at the current market value on the first day and a sale at the current
market value on the last day of the periods reported. Dividends and
distributions, if any, are assumed for purposes of this calculation to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Past
performance is not a guarantee of future results.
(d) Not annualized.
(e) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(f) Annualized.
(g) 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 | 10/31/16 27
Notes to Financial Statements | 10/31/16 (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.
The Trust's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles (U.S. GAAP) that require the management
of the Trust to, among other things, make estimates and assumptions that affect
the reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the reporting
period. Actual results could differ from those estimates.
The Trust is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. 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.
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. Valuations may be supplemented by dealers and other sources, as
required. 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.
28 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such funds' net asset value. Repurchase
agreements are valued at par. Cash may include overnight time deposits at
approved financial institutions.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.
(PIM), the Trust's investment adviser, pursuant to procedures adopted by
the Trust's Board of Trustees. PIM's fair valuation team uses fair value
methods approved by the Valuation Committee of the Board of Trustees. PIM'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, 2016, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services).
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Trust becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income-bearing cash accounts, is recorded on an accrual basis,
net of unrecoverable foreign taxes withheld at the applicable country
rates.
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.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 29
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 federal income tax provision is required. As
of April 30, 2016, 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 in 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 overdistributions for financial
statement purposes. Capital accounts within the financial statements are
adjusted for permanent book/tax differences to reflect tax character, but
are not adjusted for temporary differences.
The tax character of current year distributions payable to shareholders
will be determined at the end of current taxable year. The tax character of
distributions paid to shareowners during the year ended April 30, 2016 was
as follows:
---------------------------------------------------------------------------
2016
---------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 18,873,304
Ordinary income 530,753
---------------------------------------------------------------------------
Total $ 19,404,057
===========================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at April 30, 2016:
---------------------------------------------------------------------------
2016
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 71,250
Capital loss carryforward (35,293,691)
Late year loss deferrals (1,195,829)
Tax-exempt spillback 1,465,657
Unrealized appreciation 27,616,216
---------------------------------------------------------------------------
Total $ (7,336,397)
===========================================================================
30 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
The difference between book-basis and tax-basis unrealized appreciation is
primarily attributable to the realization for tax purposes of unrealized
gains on investments in passive foreign investment companies, 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 and book/tax temporary differences.
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, the agent for
shareowners in administering the Plan (the Plan Agent), in writing prior to
any dividend record date; otherwise such termination or resumption will be
effective with respect to any subsequently declared dividend or other
distribution.
If a shareowner's shares are held in the name of a brokerage firm, bank or
other nominee, the shareowner can ask the firm or nominee to participate in
the Plan on the shareowner's behalf. If the firm or nominee does not offer
the Plan, dividends will be paid in cash to the shareowner of record. A
firm or nominee may reinvest a shareowner's cash dividends in 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
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 31
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.
Interest rates in the U.S. recently have been historically low, so the
Trust faces a heightened risk that interest rates may rise. A general rise
in interest rates may cause investors to move out of fixed income
securities on a large scale, which could adversely affect the price and
liquidity of fixed income securities.
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
California, Illinois and Texas, 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
32 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
care facilities, education, transportation, special revenues and pollution
control, the Trust will be more susceptible to associated risks and
developments.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit), manages
the Trust's portfolio. Management fees payable under the Trust's Advisory
Agreement with PIM are calculated daily at the annual rate of 0.60% of the
Trust's average daily managed assets. "Managed assets" means (a) the total
assets of the Trust, including any form of investment leverage, minus (b) all
accrued liabilities incurred in the normal course of operations, which shall not
include any liabilities or obligations attributable to investment leverage
obtained through (i) indebtedness of any type (including, without limitation,
borrowing through a credit facility 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, 2016, the net
management fee was 0.60% (annualized) of the Trust's average daily managed
assets, which was equivalent to 0.80% (annualized) of the Trust's average daily
net assets attributable to the common shareowners.
In addition, under PIM's management and administration agreements, certain other
services and costs are paid by PIM and reimbursed by the Trust. At October 31,
2016, $305,552 was payable to PIM related to management costs, administrative
costs and certain other services is included in "Due to affiliates" and
"Administration fee" on the Statement of Assets and Liabilities.
3. Transfer Agent
American Stock Transfer & Trust Company (AST) serves as the transfer agent with
respect to the Trust's common shares. The Trust pays AST an annual fee, as
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.
Deutsche Bank Trust Company Americas (Deutsche Bank) is the transfer agent,
registrar, dividend-paying agent and auction agent with respect to the Trust's
auction preferred shares (APS). The Trust pays Deutsche Bank an annual fee, as
is agreed to from time to time by the Trust and Deutsche Bank, for providing
such services.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 33
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, 2016 and the year ended April 30, 2016 were as follows:
--------------------------------------------------------------------------------
10/31/16 4/30/16
--------------------------------------------------------------------------------
Shares outstanding at beginning of period 22,756,724 22,738,580
Reinvestment of distributions 14,625 18,144
--------------------------------------------------------------------------------
Shares outstanding at end of period 22,771,349 22,756,724
================================================================================
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, 2016, there were 4,040 APS as follows: Series A -- 2,000 and Series
B -- 2,040.
Dividends on Series A and Series B are cumulative at a rate which is to be reset
every seven days based on the results of an auction. An auction fails if there
are more APS offered for sale than there are buyers. When an auction fails, the
dividend rate for the period will be the maximum rate on the auction dates
described in the prospectus for the APS. Preferred shareowners are not able to
sell their APS at an auction if the auction fails. Since February 2008, the
Trust's auctions related to the APS have failed. The maximum rate for each
series is 125% of the 7 day commercial paper rate or adjusted Kenny rate.
Dividend rates on APS ranged from 0.465% to 1.677% during the six months ended
October 31, 2016.
The Trust may not declare dividends or make other distributions on its common
shares or purchase any such shares if, at the time of the declaration,
distribution or purchase, the Trust does not comply with the asset coverage
ratios described in the prospectus for the APS.
The APS are redeemable at the option of the Trust, in whole or in part, on any
dividend payment date at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared. The APS are also subject to mandatory
redemption at $25,000 per share plus any accumulated or unpaid dividends,
whether or not declared, if certain requirements relating to the composition of
the assets and liabilities of the Trust as set forth in the Statement of
Preferences are not satisfied.
34 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
The holders of APS have voting rights equal to the holders of the Trust's common
shares (one vote per share) and will vote together with holders of the common
shares as a single class. Holders of APS are also entitled to elect two of the
Trust's Trustees. In addition, the Investment Company Act of 1940, as amended,
requires that along with approval by shareowners that might otherwise be
required, the approval of the holders of a majority of any outstanding preferred
shares, voting separately as a class, would be required to (a) adopt any plan of
reorganization that would adversely affect the preferred shares and (b) take any
action requiring a vote of security holders, including, among other things,
changes in the Trust's subclassification as a closed-end management investment
company or changes in its fundamental investment restrictions.
5. Subsequent Events
A monthly dividend was declared on November 3, 2016 from undistributed and
accumulated net investment income of $0.0575 per common share payable November
30, 2016, to common shareowners of record on November 16, 2016.
Subsequent to October 31, 2016, dividends declared and paid on preferred shares
totaled $121,067 in aggregate for the two outstanding preferred share series
through December 9, 2016.
Pioneer Investment Management, Inc. (the "Adviser"), the Trust's investment
adviser, is currently an indirect, wholly owned subsidiary of UniCredit S.p.A.
("UniCredit"). On December 12, 2016, UniCredit announced that it has entered
into a binding agreement for the sale of its Pioneer Investments business, which
includes the Adviser, to Amundi (the "Transaction"). Amundi is headquartered in
Paris, France, and, as of September 30, 2016, had more than $1.1 trillion in
assets under management worldwide. The closing of the Transaction is expected to
happen in 2017, subject to certain regulatory and antitrust approvals, and other
conditions.
Under the Investment Company Act of 1940, the closing of the Transaction will
cause the Trust's current investment advisory agreement with the Adviser to
terminate. Accordingly, the Trust's Board of Trustees will be asked to approve a
new investment advisory agreement for the Trust. If approved by the Board, the
Trust's new investment advisory agreement will be submitted to the shareholders
of the Trust for their approval.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 35
ADDITIONAL INFORMATION
During the six months ended October 31, 2016, there have been no material
changes in the Trust's investment objective or fundamental policies that have
not been approved by the shareowners. There have been no changes in the Trust's
charter or By-Laws that would delay or prevent a change in control of the Trust
which has not been approved by the shareowners. During the period, there have
been no changes in the principal risk factors associated with investment in the
Trust. There were no changes in the persons who are primarily responsible for
the day-to-day management of the Trust's portfolio.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its shares
in the open market.
Results of Shareholder Meeting (unaudited)
At the annual meeting of shareowners held on September 20, 2016, shareowners of
Pioneer Municipal High Income Trust were asked to consider the proposals
described below. A report of the total votes cast by the Trust's shareholders
follows:
Proposal 1 - To elect three Class I Trustees
--------------------------------------------------------------------------------
Nominee For Withheld
--------------------------------------------------------------------------------
Class I
David R. Bock* 2,565.082 67.918
Lisa M. Jones 18,994,196.956 1,604,507.192
Lorraine H. Monchak 18,942,177.996 1,656,526.152
* Elected by preferred shares only.
36 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Municipal High Income Trust (the Trust) pursuant to an investment
advisory agreement between PIM and the Trust. In order for PIM to remain the
investment adviser of the Trust, the Trustees of the Trust must determine
annually whether to renew the investment advisory agreement for the Trust.
The contract review process began in January 2016 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 2016 and May
2016. 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 advisory
agreement.
In March 2016, the Trustees, among other things, discussed the memorandum
provided by Trust counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Trust's portfolio managers in the Trust. In May 2016,
the Trustees, among other things, reviewed the Trust's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Trust and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Trust and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in July and
September 2016.
At a meeting held on September 13, 2016, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Trust,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In approving the
renewal of the investment advisory agreement, the Trustees considered various
factors that they determined were relevant, including the factors described
below. The Trustees did not identify any single factor as the controlling factor
in determining to approve the renewal of the agreement.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 37
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Trust, taking into account the investment objective
and strategy of the Trust. The Trustees also reviewed PIM's investment approach
for the Trust and its research process. The Trustees considered the resources of
PIM and the personnel of PIM 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. The Trustees considered the non-investment
resources and personnel of PIM involved in PIM's services to the Trust,
including PIM's compliance and legal resources and personnel. The Trustees noted
the substantial attention and high priority given by PIM's senior management to
the Pioneer fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Trust's service providers and provides the Trust with personnel (including Trust
officers) and other resources that are necessary for the Trust's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Trust's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Trust were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Trust
In considering the Trust's performance, the Trustees regularly review and
discuss throughout the year data prepared by PIM and information comparing the
Trust's performance with the performance of its peer group of funds as
classified by each of Morningstar, Inc. (Morningstar) and Lipper, and with the
performance of the Trust's benchmark index. They also discuss the Trust's
performance with PIM on a regular basis. The Trustees' regular reviews and
discussions were factored into the Trustees' deliberations concerning the
renewal of the advisory agreement.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Trust
in comparison to the management fees and the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund
38 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
Research and Consulting, LLC (Strategic Insight), an independent third party. In
all quintile rankings 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 third 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 second quintile relative to its Strategic Insight peer group for the
comparable period.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Trust and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Trust and non-Trust services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Trust and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Trust and
considered that, under the investment advisory agreement with the Trust, PIM
performs additional services for the Trust that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Trust's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Trust is subject. The Trustees
also considered the different entrepreneurial risks associated with PIM's
management of the Trust and Pioneer's management of the other client accounts.
The Trustees concluded that the management fee payable by the Trust to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Trust.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Trust,
including the methodology used by PIM in allocating certain of its costs to the
management of the Trust. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Trust. They
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 39
further reviewed the financial results, including the profit margins, realized
by PIM and its affiliates from non-fund businesses. The Trustees considered
PIM's profit margins with respect to the Trust in comparison to the limited
industry data available and noted that the profitability of any adviser was
affected by numerous factors, including its organizational structure and method
for allocating expenses. The Trustees concluded that PIM's profitability with
respect to the management of the Trust was not unreasonable.
Economies of Scale
The Trustees considered the extent to which PIM may realize economies of scale
or other efficiencies in managing and supporting the Trust. Since the Trust is a
closed-end fund that has not raised additional capital, the Trustees concluded
that economies of scale were not a relevant consideration in the renewal of the
investment advisory agreement.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Trust. The Trustees considered the character and amount of fees paid by the
Trust, other than under the investment advisory agreement, for services provided
by PIM and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Trust
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Trust, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Trust.
40 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman Lisa M. Jones, President and Chief
David R. Bock Executive Officer
Benjamin M. Friedman Mark E. Bradley, Treasurer and
Margaret B.W. Graham Chief Financial Officer
Lisa M. Jones Christopher J. Kelley, Secretary and
Lorraine H. Monchak Chief Legal Officer
Marguerite A. Piret
Fred J. Ricciardi
Kenneth J. Taubes
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Transfer Agent
American Stock Transfer & Trust Company
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 41
This page for your notes.
42 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
This page for your notes.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16 43
This page for your notes.
44 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/16
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
web site us.pioneerinvestments.com.
The Trust files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2016 Pioneer Investments 19442-10-1216
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
During the period covered by this report, there were no purchases
made by or on behalf of the registrant or any affiliated purchaser
as defined in Rule 10b-18(a)(3) under the Securities Exchange Act
of 1934 (the Exchange Act), of shares of the registrants equity
securities that are registered by the registrant pursuant to
Section 12 of the Exchange Act.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Municipal High Income Trust
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 29, 2016
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 29, 2016
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 29, 2016
* Print the name and title of each signing officer under his or her signature.