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, Amundi Pioneer Asset 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, 2017 through October 31, 2017
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
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Semiannual Report | October 31, 2017
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Ticker Symbol: MHI
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.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
Additional Information 36
Trustees, Officers and Service Providers 39
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 1
President's Letter
Robust, synchronized global economic growth and rising corporate profits have
continued to drive strong performance in both the credit and equity markets for
most of 2017. U.S. stocks, as measured by the Standard & Poor's 500 Index,
returned 14.23% through the end of the third quarter. Fixed-income markets,
while not generating the same dazzling returns as equities, held their own, led
by high-yield securities, which produced a return of 7.05% in the U.S., as
measured by the Bank of America Merrill Lynch U.S. High Yield Index. Meanwhile,
the Bloomberg Barclays U.S. Aggregate Bond Index returned 3.14% over the first
three quarters of the calendar year.
Continued strong employment numbers and higher consumer confidence, together
with solid global economic growth and a depreciating U.S. dollar contributed to
better-than-expected U.S. gross domestic product (GDP) growth of more than 3% in
both the second and third quarters. Outside the U.S., economic growth in the
second quarter also surprised to the upside across the Euro zone, China, and
Japan. Meanwhile, despite higher oil and commodities prices, inflation continued
to be moderate, both in the U.S. and globally, enabling major non-U.S. central
banks to maintain their easy monetary policies. As expected, however, the U.S.
Federal Reserve System (the Fed) recently announced that it would commence
tapering its balance sheet this October. The Fed also appears primed to raise
interest rates one more time before the end of this year, which would be the
fourth rate increase since December of 2016.
As we move into the final months of 2017, we believe the U.S. economy will
experience modest growth in the short term, depending on the mix of economic
policies enacted as the country moves away from monetary stimulus (driven by the
Fed) and toward fiscal stimulus (potentially including tax reform) as well as
lighter regulatory burdens. Meanwhile, corporate earnings remain solid and we
think they will improve even further, despite the possibility of some pressure
from wage increases. In addition, it is our view that the economy will continue
to grow and that we may begin to see a modest upturn in inflation. In that
scenario, we anticipate that the Fed will continue to raise interest rates.
While economic and market conditions appear solid, there are always risks to
consider that could dampen the outlook. Geopolitical concerns, such as increased
tensions with North Korea, and continued political gridlock in Washington are
just some of the risks that could lead to increased market volatility.
2 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
It is for those reasons that we at Amundi Pioneer continue to believe that
investors can benefit from the experience and tenure of our investment teams who
make active and informed decisions across our funds.
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
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
October 31, 2017
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 | 10/31/17 3
Portfolio Management Discussion | 10/31/17
Municipal bonds produced positive results during the six-month period ended
October 31, 2017, with high-yield municipals generating slightly better returns
than investment-grade municipals. 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, U.S., a senior vice president, and a portfolio manager at Amundi
Pioneer Asset Management ("Amundi Pioneer"), and Mr. Chirunga, a senior vice
president and a portfolio manager at Amundi Pioneer, are responsible for the
day-to-day management of the Trust.
Q How did Pioneer Municipal High Income Trust perform during the six-month
period ended October 31, 2017?
A Pioneer Municipal High Income Trust returned 3.00% at net asset value
(NAV) and 2.43% at market price during the six-month period ended October
31, 2017. During the same six-month period, the Trust's benchmarks, the
Bloomberg Barclays U.S. Municipal High Yield Bond Index and the Bloomberg
Barclays Municipal Bond Index, returned 3.10% and 2.55%, respectively. The
Bloomberg Barclays U.S. Municipal High Yield Bond Index is an unmanaged
measure of the performance of lower-rated municipal bonds, while the
Bloomberg Barclays Municipal Bond Index is an unmanaged measure of the
performance of investment-grade municipal bonds. Unlike the Trust, the two
indices do not use leverage. While use of leverage increases investment
opportunity, it also increases investment risk.
During the same six-month period, the average return (at 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 3.73%, and the
average return at NAV of the 11 closed-end funds in the same Lipper
category was 3.64%.
The shares of the Trust were selling at an 8.1% discount to NAV at the
end of the period on October 31, 2017. Comparatively the shares of the
Trust were selling at a 7.6% discount to NAV on April 30, 2017.
On October 31, 2017, the standardized 30-day SEC yield of the Trust's
shares was 3.13%.
Q How would you describe the investment environment in the municipal bond
market during the six-month period ended October 31, 2017?
A Tax-advantaged municipal bonds fared well during the period, against a
backdrop of solid economic fundamentals and strong investor demand.
Improving corporate profits, low inflation, declining bond yields, and a
4 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
U.S. Federal Reserve System (the Fed) that acted with restraint in
gradually tightening monetary policy, all combined to solidify domestic
economic fundamentals. Over the six months, the Fed raised the benchmark
federal funds rate just once, in June 2017, after increasing it twice in
the previous six months. The domestic economy, meanwhile, expanded at a
steady, if unspectacular, pace, although the annual rate of gross domestic
product (GDP) growth accelerated to better than 3% in both the second and
third calendar quarters of 2017. In addition, the nation's unemployment
rate fell from 4.4% to 4.1% from the start of the period on May 1, 2017,
through the period's end on October 1, 2017.
Yields of longer-term debt, including U.S. Treasuries, moved lower, as
inflation worries remained muted. From a technical market perspective, the
supply of new municipal bond issuance remained relatively light during the
period, but demand remained quite solid. Demand for municipal bonds came
from several sources, including non-traditional buyers of municipals, such
as pension funds and foreign investors drawn to the municipal market by the
bonds' attractive prices relative to bonds in the taxable-bond market.
In that environment, both investment-grade and high-yield municipals
fared well, with lower-rated debt performing somewhat better, even though
demand for high-yield municipals did retreat somewhat during the period,
amid concerns about the credit-worthiness of the bonds issued by the
Commonwealth of Puerto Rico, which constituted a major portion of the
Bloomberg Barclays U.S. Municipal High Yield Bond Index. On June 1, 2017,
Puerto Rico defaulted on payments for a group of sales-tax-backed municipal
bonds, and then the island suffered extensive damage from Hurricane Maria
in September. Nevertheless, even after those two setbacks for Puerto Rico,
overall demand for high-yield municipal debt recovered by the end of the
six months. Indeed, demand for high-yield municipals strengthened to the
point where yield-conscious investors even oversubscribed on some
lower-rated new issues.
Q What factors affected the Trust's performance relative to its benchmarks
during the six-month period ended October 31, 2017?
A In managing the portfolio, we maintained our longer-term strategy of
focusing principally on holding project-revenue bonds rather than general-
obligation bonds. Financial backing for revenue bonds comes from
income-producing facilities of the borrower, while general-obligation bonds
receive backing from municipal tax revenues. We also kept the portfolio
well diversified* across several sectors and regions, with exposures to
both investment-grade and high-yield municipal debt.
* Diversification does not assure a profit nor protect against loss.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 5
While the Trust produced a positive return during the period, its
performance did slightly lag the return of the primary benchmark, the
Bloomberg Barclays U.S. Municipal High Yield Bond Index. The Trust's
benchmark-relative underperformance was due primarily to our avoidance of
some of the poorer-quality issues in the municipal market, securities that
nevertheless performed very well in a market environment featuring
exceptionally strong demand that extended even to the bonds of issuers that
we regarded as poorly financed.
Among the portfolio's holdings that detracted from benchmark-relative
performance were a general obligation bond issued by the Commonwealth of
Puerto Rico (the Trust's only exposure to Puerto Rico), and a Sanger, Texas
industrial development bond, which was used to finance a wood pellet
factory that ran into financial difficulties.
On the positive side, our investments in municipal bonds in the
hospital/health care, tobacco settlement, and CCRC (continuing care
retirement community) sectors all performed well during the period and
aided the Trust's benchmark-relative results.
Q Did the Trust's distributions to shareholders change during the six-month
period ended October 31, 2017?
A The Trust's distributions to shareholders did not change throughout the
six-month period.
Q Did the level of leverage in the Trust change during the six-month period
ended October 31, 2017?
A At the end of the period, on October 31, 2017, 25.8% of total managed
assets were financed by leverage obtained through the issuance of preferred
shares, compared with 25.9% of the Trust's total managed assets financed by
leverage at the start of the period on May 1, 2017. Even though there was a
slight decrease in the overall value of leverage due to a temporary
decrease in the ending dividend payable to preferred shareowners, the
amount of preferred shares outstanding remained the same throughout the
period. The decrease in the percentage of leveraged funds was primarily the
result of appreciation in the value of the Trust's holdings.
Q Did you use any derivatives in managing the Trust's portfolio during the
six months ended October 31, 2017?
A No, the Trust had no investments in derivatives during the period.
6 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
Q What is your investment outlook?
A We continue to have a favorable outlook for the municipal bond market, as
we believe solid economic fundamentals and healthy investor demand should
continue to support the asset class.
We anticipate that the Fed, even as it continues to reduce its balance
sheet, will move cautiously in considering any further tightening of
monetary policy through interest-rate increases, and we anticipate that the
domestic economy will continue to expand at a moderate pace. We think
corporate profits should continue to increase, and we expect that the labor
market will continue to improve. Inflationary pressures have remained low,
despite recent gains in employment. Thus far, policy gridlock in Washington
has not had a negative effect on the markets, which remain hopeful that
lawmakers can reach agreement on a tax reform/tax cut program that could
stimulate economic growth.
In managing the Trust going forward, we will continue to monitor events
carefully and remain focused on intensive, fundamental research while
seeking to maintain a well-diversified portfolio, with exposures to both
investment-grade and high-yield municipal securities backed by issuers with
what we believe are solid financial underpinnings.
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.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 7
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. 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
8 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
redeeming preferred shares with the proceeds from portfolio transactions, at
what might be inopportune times in the market. Such actions could reduce the net
earnings or returns to holders of the Trust's common shares over time, which is
likely to result in a decrease in the market value of the Trust's shares.
These risks may increase share price volatility.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the 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.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 9
Portfolio Summary | 10/31/17
Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Insured 15.9%
Revenue Bonds:
Other Revenue 31.3%
Health Revenue 12.0%
Education Revenue 9.8%
Facilities Revenue 7.6%
Development Revenue 7.4%
Tobacco Revenue 6.9%
Transportation Revenue 3.5%
Water Revenue 2.4%
Airport Revenue 1.9%
Pollution Control Revenue 1.3%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of long-term holdings)*
1. Metropolitan Pier & Exposition Authority, McCormick Place, Series B,
5.65%, 6/15/22 (NATL Insured) 4.54%
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2. State of Washington, Motor Vehicle Sales Tax, Series C, 6/1/22 (NATL Insured) 3.43
------------------------------------------------------------------------------------------
3. North Texas Tollway Authority, Series F, 5.75%, 1/1/33 2.60
------------------------------------------------------------------------------------------
4. Massachusetts Development Finance Agency, WGBH Foundation, Series A,
5.75%, 1/1/42 (AMBAC Insured) 2.51
------------------------------------------------------------------------------------------
5. New York State Dormitory Authority, Series C, 5.0%, 3/15/39 2.24
------------------------------------------------------------------------------------------
6. Lehman Municipal Trust Receipts, RIB, 11.66%, 11/1/39 (144A) (AGM Insured) 2.15
------------------------------------------------------------------------------------------
7. State of Minnesota, Series B, 4.0%, 8/1/27 1.79
------------------------------------------------------------------------------------------
8. Massachusetts Development Finance Agency, Harvard University, Series A,
5.0%, 7/15/40 1.70
------------------------------------------------------------------------------------------
9. District of Columbia Tobacco Settlement Financing Corp., Asset-Backed,
6.75%, 5/15/40 1.63
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10. Michigan Tobacco Settlement Finance Authority, Series A, 6.0%, 6/1/48 1.56
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* This list excludes temporary cash investments. The portfolio is actively
managed, and current holdings may be different. The holdings listed should
not be considered recommendations to buy or sell any security listed.
10 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
Prices and Distributions | 10/31/17
Market Value per Common Share^
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10/31/17 4/30/17
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Market Value $11.74 $11.75
--------------------------------------------------------------------------------
Premium/ (Discount) (8.1)% (7.6)%
--------------------------------------------------------------------------------
Net Asset Value per Common Share^
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
10/31/17 4/30/17
--------------------------------------------------------------------------------
Net Asset Value $12.78 $12.72
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Distributions per Common Share
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Net Investment Short-Term Long-Term
Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
5/1/17 - 10/31/17 $0.30 $ -- $ --
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Yields
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--------------------------------------------------------------------------------
10/31/17 4/30/17
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30-Day SEC Yield 3.13% 3.35%
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The data shown above represents past performance, which is no guarantee of
future results.
^ Net asset value and market value are published in Barron's on Saturday, The
Wall Street Journal on Monday and The New York Times on Monday and
Saturday. Net asset value and market value are published daily on the
Trust's website at www.amundipioneer.com.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 11
Performance Update | 10/31/17
Investment Returns
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The mountain chart on the right shows the change in market value, including
reinvestment of dividends and distributions, of a $10,000 investment made in
common shares of Pioneer Municipal High Income Trust during the periods shown,
compared to that of the Bloomberg Barclays Municipal Bond Index and Bloomberg
Barclays U.S. Municipal High Yield Bond Index.
Average Annual Total Returns
(As of October 31, 2017)
--------------------------------------------------------------------------------
Bloomberg
Barclays
Bloomberg U.S.
Barclays Municipal
Net Municipal High Yield
Asset Bond Bond
Value Market Index Index
Period (NAV) Price (NAV) (NAV)
--------------------------------------------------------------------------------
10 years 5.60% 5.21% 4.50% 4.74%
5 years 4.07 0.57 3.00 4.45
1 year 1.08 -2.22 2.19 2.99
--------------------------------------------------------------------------------
Value of $10,000 Investment
Bloomberg Barclays Bloomberg Barclays
Pioneer Municipal Municipal Bond U.S. Municipal High
High Income Trust Index Yield Bond Index
10/07 $10,000 $10,000 $10,000
10/08 $ 6,932 $ 9,670 $ 8,107
10/09 $10,474 $10,985 $ 9,286
10/10 $12,933 $11,839 $10,573
10/11 $13,326 $12,287 $10,929
10/12 $16,154 $13,396 $12,779
10/13 $15,604 $13,166 $12,457
10/14 $18,036 $14,195 $13,808
10/15 $16,658 $14,602 $14,201
10/16 $16,999 $15,195 $15,425
10/17 $16,622 $15,528 $15,886
Call 1-800-225-6292 or visit www.amundipioneer.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 $3 million. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Trust returns, do not
reflect any fees, expenses or sales charges. The indices do not use leverage. It
is not possible to invest directly in the indices.
12 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
Schedule of Investments | 10/31/17 (unaudited)
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Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 133.1% of Net Assets
TAX EXEMPT OBLIGATIONS --
133.1% 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 $ 4,310,595
-----------------------------------------------------------------------------------------------------------
Arizona -- 1.1%
1,000,000 Arizona Industrial Development Authority, Bridgewater
Avondale Project, 5.375%, 1/1/38 $ 1,000,130
2,250,000 City of Phoenix, AZ, Industrial Development Authority,
3rd & Indian School Assisted Living Project, 5.4%, 10/1/36 2,154,802
24,000 County of Pima, AZ, Industrial Development Authority,
Arizona Charter Schools Project, Series C, 6.75%, 7/1/31 24,051
-------------
$ 3,178,983
-----------------------------------------------------------------------------------------------------------
California -- 9.9%
10,000,000(b) California County Tobacco Securitization Agency, Capital
Appreciation, Stanislaus County Subordinated,
Series A, 6/1/46 $ 1,491,400
1,450,000 California Enterprise Development Authority, Sunpower Corp.,
8.5%, 4/1/31 1,573,758
530,000 California Municipal Finance Authority, Santa Rosa
Academy Project, Series A, 5.75%, 7/1/30 573,343
5,000,000 California Pollution Control Financing Authority, 5.0%,
7/1/37 (144A) 5,026,700
1,740,000 California School Finance Authority, Classical Academies
Project, Series A, 7.375%, 10/1/43 2,007,925
1,400,000 California Statewide Communities Development Authority,
Lancer Plaza Project, 5.625%, 11/1/33 1,582,294
568,006(c) California Statewide Communities Development Authority,
Microgy Holdings Project, 9.0%, 12/1/38 2,840
7,885,000(d) Lehman Municipal Trust Receipts, RIB, 11.66%,
11/1/39 (144A) (AGM Insured) 8,328,137
2,000,000(e) Los Angeles Community College District, Series G,
4.0%, 8/1/39 2,112,500
1,605,000 Los Angeles County Metropolitan Transportation Authority,
Series A, 5.0%, 7/1/30 1,981,678
1,000,000 River Islands Public Financing Authority, Community
Facilities, 5.5%, 9/1/45 1,068,970
3,000,000 Tobacco Securitization Authority of Southern California,
Series A-1, 5.0%, 6/1/37 3,009,480
-------------
$ 28,759,025
-----------------------------------------------------------------------------------------------------------
Colorado -- 0.7%
1,500,000(f) Colorado Educational & Cultural Facilities Authority, Rocky
Mountain Classical Academy Project, 8.0%, 9/1/43 $ 2,020,410
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 13
Schedule of Investments | 10/31/17 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Connecticut -- 3.2%
2,915,000 Mohegan Tribal Finance Authority, 7.0%, 2/1/45 (144A) $ 3,088,501
5,000,000(e) State of Connecticut, Series E, 4.0%, 9/1/30 5,256,050
1,000,000 Town of Hamden, CT, Whitney Center Project, Series A,
7.75%, 1/1/43 1,047,280
-------------
$ 9,391,831
-----------------------------------------------------------------------------------------------------------
District of Columbia -- 5.1%
4,365,000 District of Columbia Tobacco Settlement Financing Corp.,
Asset-Backed, 6.5%, 5/15/33 $ 4,904,819
6,000,000 District of Columbia Tobacco Settlement Financing Corp.,
Asset-Backed, 6.75%, 5/15/40 6,310,500
25,000,000(b) District of Columbia Tobacco Settlement Financing Corp.,
Capital Appreciation, Asset-Backed, Series A, 6/15/46 3,617,250
-------------
$ 14,832,569
-----------------------------------------------------------------------------------------------------------
Florida -- 5.3%
1,500,000 Alachua County Health Facilities Authority, Terraces Bonita
Springs Project, Series A, 8.125%, 11/15/41 $ 1,709,295
1,500,000 Alachua County Health Facilities Authority, Terraces Bonita
Springs Project, Series A, 8.125%, 11/15/46 1,700,385
2,260,000(c) County of Liberty, FL, Twin Oaks Project, 8.25%, 7/1/28 1,356,000
2,500,000(f) County of Miami-Dade, FL, Aviation Revenue, Series B,
5.5%, 10/1/41 2,707,250
5,000,000 Florida's Turnpike Enterprise, Department of Transportation,
Series A, 4.0%, 7/1/34 5,278,150
1,000,000(f) Hillsborough County Industrial Development Authority,
Various Health Facilities, 8.0%, 8/15/32 1,128,610
2,250,000(c)(d) St. Johns County Industrial Development Authority, Glenmoor
Project, Series A, 1.344%, 1/1/49 1,546,830
832,581(c) St. Johns County Industrial Development Authority, Glenmoor
Project, Series B, 2.5%, 1/1/49 8
-------------
$ 15,426,528
-----------------------------------------------------------------------------------------------------------
Georgia -- 2.6%
2,500,000 Clayton County Development Authority, Delta Air Lines,
Series A, 8.75%, 6/1/29 $ 2,879,225
4,000,000 Private Colleges & Universities Authority, Emory University,
Series A, 5.0%, 10/1/43 4,584,360
-------------
$ 7,463,585
-----------------------------------------------------------------------------------------------------------
Idaho -- 1.7%
5,000,000 Power County Industrial Development Corp., FMC Corp.
Project, 6.45%, 8/1/32 $ 5,020,500
-----------------------------------------------------------------------------------------------------------
Illinois -- 14.7%
2,087,000(d) Illinois Finance Authority, Clare Oaks Project, Series B,
4.0%, 11/15/52 $ 1,536,637
The accompanying notes are an integral part of these financial statements.
14 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Illinois -- (continued)
1,305,000(b) Illinois Finance Authority, Clare Oaks Project,
Series C-1, 11/15/52 $ 48,037
261,000 Illinois Finance Authority, Clare Oaks Project,
Series C-2, 11/15/52 71,574
261,000 Illinois Finance Authority, Clare Oaks Project,
Series C-3, 11/15/52 43,660
2,000,000(c) Illinois Finance Authority, Greenfields of Geneva Project,
Series A, 8.125%, 2/15/40 1,120,000
2,500,000(c) Illinois Finance Authority, Greenfields of Geneva Project,
Series A, 8.25%, 2/15/46 1,400,000
2,000,000 Illinois Finance Authority, Northwestern Memorial Hospital,
Series A, 6.0%, 8/15/39 2,162,180
2,500,000 Illinois Finance Authority, Roosevelt University Project,
6.5%, 4/1/39 2,668,225
3,865,000(f) Illinois Finance Authority, Swedish Covenant, Series A,
6.0%, 8/15/38 4,279,251
1,700,000 Illinois Finance Authority, The Admiral at the Lake Project,
Series A, 7.625%, 5/15/25 1,903,422
600,000 Illinois Finance Authority, The Admiral at the Lake Project,
Series A, 7.75%, 5/15/30 663,360
2,000,000 Illinois Finance Authority, The Admiral at the Lake Project,
Series A, 8.0%, 5/15/40 2,205,820
3,200,000 Illinois Finance Authority, The Admiral at the Lake Project,
Series A, 8.0%, 5/15/46 3,521,952
1,000,000 Metropolitan Pier & Exposition Authority, McCormick Place,
Series B, 5.0%, 6/15/52 (ST APPROP Insured) 993,420
1,485,000(g) Metropolitan Pier & Exposition Authority, McCormick Place,
Series B, 5.65%, 6/15/22 (NATL Insured) 1,762,680
15,395,000 Metropolitan Pier & Exposition Authority, McCormick Place,
Series B, 5.65%, 6/15/22 (NATL Insured) 17,580,167
935,000 Southwestern Illinois Development Authority, Village of
Sauget Project, 5.625%, 11/1/26 892,766
-------------
$ 42,853,151
-----------------------------------------------------------------------------------------------------------
Indiana -- 1.7%
250,000 City of Carmel, IN, Barrington Carmel Project, Series A,
7.0%, 11/15/32 $ 272,825
750,000 City of Carmel, IN, Barrington Carmel Project, Series A,
7.125%, 11/15/42 812,197
500,000 City of Carmel, IN, Barrington Carmel Project, Series A,
7.125%, 11/15/47 540,315
1,000,000 City of Evansville, IN, Silver Birch Evansville Project,
5.45%, 1/1/38 995,080
1,500,000 City of Mishawaka IN, Silver Birch Mishawaka Project,
5.375%, 1/1/38 (144A) 1,488,945
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 15
Schedule of Investments | 10/31/17 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Indiana -- (continued)
1,000,000 Indiana Finance Authority, Multipurpose Educational
Facilities, Avondale Meadows Academy Project,
5.375%, 7/1/47 $ 983,170
-------------
$ 5,092,532
-----------------------------------------------------------------------------------------------------------
Kentucky -- 1.9%
5,000,000(f) Kentucky Economic Development Finance Authority,
Owensboro Medical Health System, Series A,
6.375%, 6/1/40 $ 5,645,950
-----------------------------------------------------------------------------------------------------------
Louisiana -- 1.3%
2,260,000 Jefferson Parish Hospital Service District No. 2, East
Jefferson General Hospital, 6.375%, 7/1/41 $ 2,326,105
1,500,000 Louisiana Local Government Environmental Facilities &
Community Development Authority, Westlake Chemical
Corp. Project, 6.75%, 11/1/32 1,500,000
-------------
$ 3,826,105
-----------------------------------------------------------------------------------------------------------
Maine -- 2.3%
1,500,000 Maine Health & Higher Educational Facilities Authority,
Maine General Medical Center, 7.5%, 7/1/32 $ 1,706,205
4,480,000 Maine Turnpike Authority, Series A, 5.0%, 7/1/42 5,007,699
-------------
$ 6,713,904
-----------------------------------------------------------------------------------------------------------
Maryland -- 0.5%
1,435,000 Maryland Health & Higher Educational Facilities Authority,
City Neighbors, Series A, 6.75%, 7/1/44 $ 1,581,930
-----------------------------------------------------------------------------------------------------------
Massachusetts -- 10.4%
7,000,000(b) Massachusetts Bay Transportation Authority,
Series A, 7/1/28 $ 5,183,360
1,550,000 Massachusetts Development Finance Agency, Harvard
University, Series A, 5.0%, 7/15/36 2,027,819
5,000,000 Massachusetts Development Finance Agency, Harvard
University, Series A, 5.0%, 7/15/40 6,599,050
961,700 Massachusetts Development Finance Agency, Linden
Ponds, Inc., Series A-1, 5.5%, 11/15/46 968,999
1,000,000 Massachusetts Development Finance Agency, Partners
Healthcare System, 4.0%, 7/1/41 1,040,910
7,100,000 Massachusetts Development Finance Agency, WGBH
Foundation, Series A, 5.75%, 1/1/42 (AMBAC Insured) 9,702,789
380,000 Massachusetts Educational Financing Authority, Series I,
6.0%, 1/1/28 401,519
3,100,000 Massachusetts Health & Educational Facilities Authority,
Massachusetts Institute of Technology, Series K,
5.5%, 7/1/32 4,194,703
-------------
$ 30,119,149
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Michigan -- 3.1%
2,640,000 Michigan State University, Series A, 5.0%, 8/15/41 $ 3,025,546
6,100,000 Michigan Tobacco Settlement Finance Authority, Series A,
6.0%, 6/1/48 6,048,943
-------------
$ 9,074,489
-----------------------------------------------------------------------------------------------------------
Minnesota -- 4.5%
2,000,000 Bloomington Port Authority, Radisson Blu Mall of America,
9.0%, 12/1/35 $ 2,103,300
1,000,000 City of Ham Lake, MN, DaVinci Academy Project, Series A,
5.0%, 7/1/47 996,860
2,300,000 City of Rochester, MN, Mayo Clinic, Series B, 5.0%, 11/15/35 2,937,514
6,000,000(e) State of Minnesota, Series B, 4.0%, 8/1/27 6,948,000
-------------
$ 12,985,674
-----------------------------------------------------------------------------------------------------------
Montana -- 0.0%+
1,600,000(c) Two Rivers Authority, Inc., 7.375%, 11/1/27 $ 30,080
-----------------------------------------------------------------------------------------------------------
New Hampshire -- 0.3%
1,000,000 New Hampshire Health & Education Facilities Authority Act,
Catholic Medical Centre, 3.75%, 7/1/40 $ 961,490
-----------------------------------------------------------------------------------------------------------
New Jersey -- 2.1%
3,000,000 New Jersey Economic Development Authority, Continental
Airlines, 5.25%, 9/15/29 $ 3,284,610
2,500,000 New Jersey Economic Development Authority, Continental
Airlines, 5.75%, 9/15/27 2,768,600
-------------
$ 6,053,210
-----------------------------------------------------------------------------------------------------------
New Mexico -- 1.5%
1,500,000 County of Otero, NM, Otero County Jail Project, 9.0%, 4/1/23 $ 1,458,345
2,960,000(d) County of Otero, NM, Otero County Jail Project, 9.0%, 4/1/28 2,776,066
-------------
$ 4,234,411
-----------------------------------------------------------------------------------------------------------
New York -- 5.7%
2,000,000(f) Hempstead Local Development Corp., Molloy College
Project, 5.75%, 7/1/39 $ 2,152,200
1,000,000(f) New York State Dormitory Authority, Orange Medical
Center, 6.125%, 12/1/29 1,053,820
7,500,000 New York State Dormitory Authority, Series C, 5.0%, 3/15/39 8,664,375
1,500,000 New York State Dormitory Authority, Trustees of Columbia
University, 5.0%, 10/1/45 2,019,525
2,455,540 Westchester County Healthcare Corp., Series A,
5.0%, 11/1/44 2,642,996
-------------
$ 16,532,916
-----------------------------------------------------------------------------------------------------------
North Dakota -- 1.0%
2,525,000(f) County of Burleigh, ND, St. Alexius Medical Center,
5.0%, 7/1/38 $ 2,908,068
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 17
Schedule of Investments | 10/31/17 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Ohio -- 5.2%
1,325,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 5.75%, 6/1/34 $ 1,242,837
2,500,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 5.875%, 6/1/47 2,340,525
1,700,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 6.0%, 6/1/42 1,615,017
6,000,000 Buckeye Tobacco Settlement Financing Authority,
Asset-Backed, Series A-2, 6.5%, 6/1/47 5,976,120
1,000,000 Ohio Housing Finance Agency, Sanctuary Springboro
Project, 5.45%, 1/1/38 (144A) 991,610
2,500,000(e) State of Ohio, Common Schools, Series B, 5.0%, 6/15/29 2,859,000
-------------
$ 15,025,109
-----------------------------------------------------------------------------------------------------------
Oregon -- 2.4%
1,000,000 Oregon Health & Science University, Series A, 5.0%, 7/1/42 $ 1,163,020
5,190,000 Oregon Health & Science University, Series E, 5.0%, 7/1/32 5,850,272
-------------
$ 7,013,292
-----------------------------------------------------------------------------------------------------------
Pennsylvania -- 7.6%
1,550,000 Allegheny County Hospital Development Authority, South
Hills Health, Series A, 5.125%, 5/1/25 $ 1,566,523
3,000,000 Geisinger Authority, Geisinger Health System, Series A-1,
5.0%, 2/15/45 3,418,350
1,280,000(c) Langhorne Manor Borough Higher Education Authority,
Lower Bucks Hospital, 7.35%, 7/1/22 236,800
5,000,000 Pennsylvania Economic Development Financing Authority,
USG Corp. Project, 6.0%, 6/1/31 5,010,050
500,000 Philadelphia Authority for Industrial Development, Greater
Philadelphia Health Action, Inc., Project, Series A,
6.625%, 6/1/50 521,250
2,000,000 Philadelphia Authority for Industrial Development, Nueva
Esperanze, Inc., 8.2%, 12/1/43 2,256,880
1,000,000 Philadelphia Authority for Industrial Development,
Performing Arts Charter School Project, 6.5%,
6/15/33 (144A) 1,067,180
2,000,000 Philadelphia Authority for Industrial Development,
Performing Arts Charter School Project, 6.75%,
6/15/43 (144A) 2,134,340
5,900,000 Philadelphia Hospitals & Higher Education Facilities
Authority, Temple University Health System, Series A,
5.0%, 7/1/34 5,914,455
-------------
$ 22,125,828
-----------------------------------------------------------------------------------------------------------
Puerto Rico -- 0.6%
6,255,000(c)(e) Commonwealth of Puerto Rico, Series A, 8.0%, 7/1/35 $ 1,860,862
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Rhode Island -- 1.9%
5,900,000(c) Central Falls Detention Facility Corp., 7.25%, 7/15/35 $ 1,475,000
2,000,000 Rhode Island Health & Educational Building Corp.,
Brown University, Series A, 4.0%, 9/1/37 2,167,340
1,500,000(f) Rhode Island Health & Educational Building Corp.,
Tockwatten Home Issue, 8.375%, 1/1/46 1,829,445
-------------
$ 5,471,785
-----------------------------------------------------------------------------------------------------------
Texas -- 12.5%
1,000,000 Arlington Higher Education Finance Corp., Universal
Academy, Series A, 7.0%, 3/1/34 $ 1,046,570
2,500,000(f) Central Texas Regional Mobility Authority, Sub Lien,
6.75%, 1/1/41 2,923,475
1,490,000(e) County of Harris, TX, Series A, 5.0%, 10/1/26 1,812,004
5,000,000(e) Goose Creek Consolidated Independent School District,
Series C, 4.0%, 2/15/26 (PSF-GTD Insured) 5,666,800
725,078(c) Gulf Coast Industrial Development Authority, Microgy
Holdings Project, 7.0%, 12/1/36 3,625
3,785,000 North Texas Tollway Authority, Series A, 5.0%, 1/1/35 4,316,717
10,000,000(f) North Texas Tollway Authority, Series F, 5.75%, 1/1/33 10,077,400
1,500,000(f) Red River Health Facilities Development Corp., MRC
Crestview, Series A, 8.0%, 11/15/41 1,881,795
3,960,000(c)(h) Sanger Industrial Development Corp., Texas Pellets Project,
Series B, 8.0%, 7/1/38 1,881,000
1,000,000 Tarrant County Cultural Education Facilities Finance Corp.,
Mirador Project, Series A, 4.875%, 11/15/48 822,720
1,000,000 Tarrant County Cultural Education Facilities Finance Corp.,
Mirador Project, Series A, 5.0%, 11/15/55 822,370
2,000,000(f) Tarrant County Cultural Education Facilities Finance Corp.,
MRC Crestview Project, 8.0%, 11/15/34 2,394,320
2,500,000 Travis County Health Facilities Development Corp.,
Longhorn Village Project, 7.125%, 1/1/46 2,711,250
-------------
$ 36,360,046
-----------------------------------------------------------------------------------------------------------
Utah -- 0.7%
1,000,000 Salt Lake City Corp., Airport Revenue, Series B,
5.0%, 7/1/35 $ 1,175,840
1,000,000 Utah Charter School Finance Authority, Freedom Academy
Foundation Project, 5.375%, 6/15/48 (144A) 996,210
-------------
$ 2,172,050
-----------------------------------------------------------------------------------------------------------
Virginia -- 4.9%
2,200,000(e) County of Arlington, VA, 4.0%, 8/15/35 $ 2,412,696
1,415,000(e) County of Fairfax, VA, Series A, 4.0%, 10/1/33 (ST AID
WITHHLDG Insured) 1,562,033
5,000,000 University of Virginia, Series A, 5.0%, 4/1/42 5,909,200
4,000,000 Upper Occoquan Sewage Authority, 4.0%, 7/1/41 4,255,000
-------------
$ 14,138,929
-----------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 19
Schedule of Investments | 10/31/17 (unaudited) (continued)
-----------------------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-----------------------------------------------------------------------------------------------------------
Washington -- 9.8%
3,745,000 City of Seattle, WA, Water System Revenue, 4.0%, 8/1/32 $ 4,102,385
2,500,000(e) King County Issaquah School District No. 411, 4.0%,
12/1/31 (SCH BD GTY Insured) 2,727,375
14,315,000(b)(e) State of Washington, Motor Vehicle Sales Tax, Series C,
6/1/22 (NATL Insured) 13,283,175
2,500,000 University of Washington, Series B, 5.0%, 6/1/29 2,988,175
3,795,000(f) Washington State Health Care Facilities Authority,
Fred Hutchinson Cancer Research Center, Series A,
6.0%, 1/1/33 4,097,424
1,150,000 Washington State Housing Finance Commission, Mirabella
Project, Series A, 6.75%, 10/1/47 (144A) 1,262,343
-------------
$ 28,460,877
-----------------------------------------------------------------------------------------------------------
West Virginia -- 0.4%
2,000,000(c) City of Philippi, WV, Alderson-Broaddus College, Inc.,
Series A, 7.75%, 10/1/44 $ 1,200,000
-----------------------------------------------------------------------------------------------------------
Wisconsin -- 5.0%
5,000,000 Public Finance Authority, Glenridge Palmer Ranch,
Series A, 8.25%, 6/1/46 $ 5,950,050
750,000 Public Finance Authority, Roseman University Health
Sciences Project, 5.875%, 4/1/45 819,307
1,500,000 Public Finance Authority, SearStone CCRC Project,
Series A, 8.625%, 6/1/47 (144A) 1,722,705
5,000,000 Wisconsin Department of Transportation, Series A,
5.0%, 7/1/28 5,941,650
-------------
$ 14,433,712
-----------------------------------------------------------------------------------------------------------
TOTAL TAX EXEMPT OBLIGATIONS
(Cost $373,518,379) $ 387,279,575
-----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS -- 133.1%
(Cost $373,518,379) $ 387,279,575
-----------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.6% $ 4,651,378
-----------------------------------------------------------------------------------------------------------
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE -- (34.7)% $(100,985,979)
-----------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
COMMON SHAREOWNERS -- 100.0% $ 290,944,974
===========================================================================================================
(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, 2017, the value of these
securities amounted to $26,106,671, or 9.0% of 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, 2017.
The accompanying notes are an integral part of these financial statements.
20 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
+ 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 is shown at October 31, 2017.
(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.
(h) Security is valued using fair value methods (other than prices
supplied by independent pricing services). See Notes to
Financial Statements -- Note 1A.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended October 31, 2017 aggregated $33,552,789 and $32,821,337
respectively.
The Trust is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Amundi Pioneer Asset
Management, Inc. (the "Adviser") serves as the 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
affected at current market prices. During the six month ended October 31, 2017,
the Trust did not engage in cross trade activity.
At October 31, 2017, the Net unrealized appreciation on investments based on
cost for federal tax purposes of $366,267,582 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 33,631,195
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (12,619,202)
------------
Net unrealized appreciation $ 21,011,993
============
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 accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 21
Schedule of Investments | 10/31/17 (unaudited) (continued)
The following is a summary of the inputs used as of October 31, 2017, in valuing
the Trust's investments.
----------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
----------------------------------------------------------------------------------------------------
Tax Exempt Obligations
Texas $ -- $ 34,479,046 $1,881,000 $ 36,360,046
All Other Tax Exempt Obligations -- 350,919,529 -- 350,919,529
----------------------------------------------------------------------------------------------------
Total $ -- $385,398,575 $1,881,000 $387,279,575
====================================================================================================
The following is a reconciliation of assets valued using significant
unobservable inputs (Level 3):
----------------------------------------------------------------------------------------------------
Tax Exempt Obligations
----------------------------------------------------------------------------------------------------
Balance as of 4/30/17 $ 2,376,000
Realized gain (loss)(1) --
Change in unrealized appreciation (depreciation)(2) (492,717)
Purchases --
Sales --
Accrued discounts/premiums (2,283)
Changes between Level 3* --
----------------------------------------------------------------------------------------------------
Balance as of 10/31/17 $ 1,881,000
====================================================================================================
(1) Realized gain (loss) on these securities is included in the net realized
gain (loss) from investments in the Statement of Operations.
(2) Unrealized appreciation (depreciation) on these securities is included
in the change in unrealized appreciation (depreciation) on investments
in the Statement of Operations.
* Transfers are calculated on the beginning of period value. During six
months ended October 31, 2017, there were no transfers between
Levels 1, 2 and 3.
Net change in unrealized appreciation (depreciation) of investments still
held as of 10/31/17 $(492,717)
---------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
Statement of Assets and Liabilities | 10/31/17 (unaudited)
ASSETS:
Investments in unaffiliated issuers, at value (cost $373,518,379) $ 387,279,575
Receivables --
Investment securities sold 150,458
Interest 6,178,279
Other assets 4,722
-------------------------------------------------------------------------------------------
Total assets $ 393,613,034
===========================================================================================
LIABILITIES:
Due to custodian $ 1,461,856
Payables --
Administration fee 83,115
Trustees' fees 1,512
Professional fees 20,785
Due to affiliates 45,228
Accrued expenses and other liabilities 69,585
-------------------------------------------------------------------------------------------
Total liabilities $ 1,682,081
===========================================================================================
PREFERRED SHARES AT REDEMPTION VALUE:
$25,000 liquidation value per share applicable to 4,040 shares,
including dividends payable of $14,021 $ 100,985,979
-------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Paid-in capital $ 309,976,185
Undistributed net investment income 4,017,265
Accumulated net realized loss on investments (36,809,671)
Net unrealized appreciation on investments 13,761,195
-------------------------------------------------------------------------------------------
Net assets applicable to common shareowners $ 290,944,974
===========================================================================================
NET ASSET VALUE PER COMMON SHARE:
No par value (unlimited number of shares authorized)
Based on $290,944,974 / 22,771,349 common shares $ 12.78
===========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 23
Statement of Operations (unaudited)
For the Six Months Ended 10/31/17
INVESTMENT INCOME:
Interest from unaffiliated issuers $ 9,661,409
------------------------------------------------------------------------------------------------
Total investment income $9,661,409
------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,190,307
Administrative expense 88,613
Transfer agent fees 7,846
Shareowner communications expense 733
Auction agent fees 53,651
Custodian fees 2,935
Professional fees 54,558
Printing expense 7,901
Trustees' fees 6,662
Pricing fees 10,583
Miscellaneous 47,280
------------------------------------------------------------------------------------------------
Total expenses $1,471,069
------------------------------------------------------------------------------------------------
Net investment income $8,190,340
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments from unaffiliated issuers $(9,188,223)
Change in net unrealized appreciation on:
Investments from unaffiliated issuers 9,840,887
------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ 652,664
------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREOWNERS FROM
NET INVESTMENT INCOME: $ (807,198)
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $8,035,806
================================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------------------
Six Months
Ended
10/31/17 Year Ended
(unaudited) 4/30/17*
------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 8,190,340 $ 16,563,834
Net realized gain (loss) on investments (9,188,223) (654,552)
Change in net unrealized appreciation (depreciation)
on investments 9,840,887 (16,590,447)
Distributions to preferred shareowners from net
investment income (807,198) (1,150,946)
------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 8,035,806 $ (1,832,111)
------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREOWNERS:
Net investment income and previously undistributed net
investment income($0.30 and $0.69 per share, respectively) $ (6,831,405) $(15,653,258)
------------------------------------------------------------------------------------------------------
Total distributions to common shareowners $ (6,831,405) $(15,653,258)
------------------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Reinvestment of distributions $ -- $ 199,322
------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to common
shareowners from Trust share transactions $ -- $ 199,322
------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
common shareowners $ 1,204,401 $(17,286,047)
------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS:
Beginning of period 289,740,573 307,026,620
------------------------------------------------------------------------------------------------------
End of period $ 290,944,974 $289,740,573
------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 4,017,265 $ 3,465,527
======================================================================================================
* The Trust was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 25
Financial Highlights
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
10/31/17 Ended Ended Ended Ended Ended
(unaudited) 4/30/17* 4/30/16* 4/30/15* 4/30/14* 4/30/13
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.72 $ 13.49 $ 13.31 $ 13.33 $ 14.72 $ 14.12
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income $ 0.36 $ 0.73 $ 0.83 $ 0.91 $ 1.05 $ 1.14
Net realized and unrealized gain (loss) on investments 0.04 (0.76) 0.20 0.16 (1.29) 0.61
------------------------------------------------------------------------------------------------------------------------------------
Distributions to preferred shareowners from:
Net investment income $ (0.04) $ (0.05) $ (0.01) $ (0.01) $ (0.01) $ (0.01)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.36 $ (0.08) $ 1.02 $ 1.06 $ (0.25) $ 1.74
------------------------------------------------------------------------------------------------------------------------------------
Distributions to common shareowners from:
Net investment income and previously undistributed
net investment income $ (0.30) $ (0.69) $ (0.84)** $ (1.08)** $ (1.14)** $ (1.14)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.06 $ (0.77) $ 0.18 $ (0.02) $ (1.39) $ 0.60
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.78 $ 12.72 $ 13.49 $ 13.31 $ 13.33 $ 14.72
------------------------------------------------------------------------------------------------------------------------------------
Market value, end of period $ 11.74 $ 11.75 $ 14.07 $ 14.75 $ 14.90 $ 16.02
====================================================================================================================================
Total return at net asset value (b) 3.00%(c) (0.45)% 8.12% 7.76% (1.57)% 12.45%
Total return at market value (b) 2.43%(c) (11.83)% 1.75% 6.84% 1.10% 11.48%
Ratios to average net assets of common shareowners:
Total expenses (d) 1.00%(e) 1.00% 1.05% 1.03% 1.04% 1.03%
Net investment income before preferred share
distributions 5.55%(e) 5.54% 6.24% 6.73% 7.89% 7.84%
Preferred share distributions 0.54%(e) 0.38% 0.10% 0.04% 0.05% 0.08%
Net investment income available to shareowners 5.01%(e) 5.16% 6.14% 6.69% 7.84% 7.76%
Portfolio turnover 8%(c) 19% 9% 14% 19% 10%
Net assets of common shareowners, end of period
(in thousands) $290,945 $289,741 $307,027 $302,718 $301,872 $332,193
====================================================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
10/31/17 Ended Ended Ended Ended Ended
(unaudited) 4/30/17* 4/30/16* 4/30/15* 4/30/14* 4/30/13
-----------------------------------------------------------------------------------------------------------------------------------
Preferred shares outstanding (in thousands) $101,000 $101,000 $101,000 $101,000 $101,000 $101,000
Asset coverage per preferred share, end of period $ 97,013 $ 96,723 $100,998 $ 99,930 $ 99,721 $107,211
Average market value per preferred share (f) $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000
Liquidation value, including dividends payable, per preferred share $ 24,997 $ 25,006 $ 25,001 $ 25,000 $ 25,001 $ 25,001
===================================================================================================================================
* The Trust was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
** The amount of distributions made to shareowners during the
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 the
accumulated net investment income was distributed to shareowners
during the period.
(a) The per common share data presented above is based upon the average common
shares outstanding for the periods presented.
(b) Total investment return is calculated assuming a purchase of
common shares at the current net asset value or market value on the
first day and a sale at the current net asset value or market value
on the last day of the periods reported. Dividends and distributions,
if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Past
performance is not a guarantee of future results.
(c) Not annualized.
(d) Expense ratios do not reflect the effect of distribution payments to
preferred shareowners.
(e) Annualized.
(f) Market value is redemption value without an active market.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 27
Notes to Financial Statements | 10/31/17 (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.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world. Amundi, one of the world's
largest asset managers, is headquartered in Paris, France. As a result of the
transaction, Pioneer Investment Management, Inc., the Trust's investment
adviser, became an indirect wholly owned subsidiary of Amundi and Amundi's
wholly owned subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer
Investments was owned by Pioneer Global Asset Management S.p.A., a wholly owned
subsidiary of UniCredit S.p.A.
In connection with the transaction, the names of the Trust's investment adviser
and principal underwriter changed. Effective July 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc.
(the Adviser) and the name of Pioneer Funds Distributor, Inc. changed to Amundi
Pioneer Distributor, Inc. (the Distributor).
In October 2016, the Securities and Exchange Commission (SEC) released its
Final Rule on Investment Company Reporting Modernization. In addition to
introducing two new regulatory reporting forms (Form N-PORT and Form N-CEN),
the Final Rule amends Regulation S-X, which impacts financial statement
presentation, particularly related to the presentation of derivative
investments. The Trust's financial statements were prepared in compliance with
the amendments to Regulation S-X.
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 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.
28 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
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. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to
supply prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Shares of open-end registered investment companies (including money
market mutual funds) are valued at such Trusts' 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 or broker-dealers
are unable to supply prices or for which market prices and/or quotations
are not readily available or are considered to be unreliable are valued by
a fair valuation team comprised of certain personnel of the Adviser,
pursuant to procedures adopted by the Trust's Board of Trustees. The
Adviser's fair valuation team uses fair value methods approved by the
Valuation Committee of the Board of Trustees. The Adviser's fair valuation
team is responsible for monitoring developments that may impact fair
valued securities and for discussing and assessing fair values on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Trust may use fair value
methods if it is determined that a significant event has occurred after
the close of the exchange or market on which the security trades and prior
to the
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 29
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, 2017, one security was valued using fair value methods
(in addition to securities valued using prices supplied by independent
pricing services, broker-dealers or using third party insurance pricing
model) representing 0.65% of net assets. The value of this fair valued
security is $1,881,000.
B. Investment Income and Transactions
Interest income, including interest on income-bearing cash accounts,
is recorded on the accrual basis, net of unrecoverable foreign taxes
withheld at the applicable country rates and net of income accrued on
defaulted securities.
Discounts and premiums on purchase prices of debt securities are
accreted or amortized, respectively, daily, into interest income on an
effective yield to maturity basis with a corresponding increase or
decrease in the cost basis of the security. Premiums and discounts related
to certain mortgage-backed securities are amortized or accreted in
proportion to the monthly paydowns. Interest and dividend income payable
by delivery of additional shares is reclassified as PIK (payment-in-kind)
income upon receipt and is included in interest income.
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 October 31, 2017, 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
30 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
income or net realized gains are temporary overdistributions for financial
statement and tax purposes. Capital accounts within the financial
statements are adjusted for permanent book/tax differences to reflect tax
character, but are not adjusted for temporary differences.
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, 2017 was as follows:
----------------------------------------------------------------------------
2017
----------------------------------------------------------------------------
Distributions paid from:
Tax exempt income $ 16,732,954
Ordinary income 71,250
----------------------------------------------------------------------------
Total $ 16,804,204
============================================================================
The following shows the components of distributable earnings (losses) on a
federal income tax basis at April 30, 2017:
----------------------------------------------------------------------------
2017
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 413,602
Capital loss carryforward (29,916,980)
Late year loss deferrals (3,070,718)
Other book/tax temporary differences 7,250,771
Tax-exempt spillback 1,167,404
Unrealized appreciation 3,920,309
----------------------------------------------------------------------------
Total $ (20,235,612)
============================================================================
The difference between book-basis and tax-basis unrealized
appreciation/depreciation 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.
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
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 31
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 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.
32 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
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 care facilities, education, transportation,
special revenues and pollution control, the Trust will be more susceptible
to associated risks and developments.
2. Management Agreement
The Adviser manages the Trust's portfolio. Management fees payable under
the Trust's Advisory Agreement with the Adviser are calculated daily at
the annual rate of 0.60% of the Trust's average daily managed assets.
"Managed assets" means (a) the total assets of the Trust, including any
form of investment leverage, minus (b) all accrued liabilities incurred in
the normal course of operations, which shall not include any liabilities
or obligations attributable to investment leverage obtained through (i)
indebtedness of any type (including, without limitation, borrowing through
a credit facility or the issuance of debt securities), (ii) the issuance
of preferred stock or other similar preference securities, and/or (iii)
any other means. For the six months ended October 31, 2017, the net
management fee was 0.60% (annualized) of the Trust's average daily managed
assets, which was equivalent to 0.81% (annualized) of the Trust's average
daily net assets.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 33
In addition, under the Adviser management and administration agreements,
certain other services and costs are paid by the Adviser. At October 31,
2017, $128,343 was payable to the Adviser 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 is agreed to from time to time by the Trust and AST, for providing
such services.
In addition, the Trust reimbursed the transfer agent for out-of-pocket
expenses incurred by the transfer agent related to shareowner
communications activities such as proxy and statement mailings and
outgoing calls.
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.
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, 2017 and the year ended April 30, 2017 were as follows:
----------------------------------------------------------------------------------------
10/31/17 4/30/17
----------------------------------------------------------------------------------------
Shares outstanding at beginning of year 22,771,349 22,756,724
Reinvestment of distributions -- 14,625
----------------------------------------------------------------------------------------
Shares outstanding at end of year 22,771,349 22,771,349
========================================================================================
The Trust may classify or reclassify any unissued shares of beneficial
interest into one or more series of preferred shares of beneficial
interest. As of October 31, 2017, 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
34 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
125 % of the 7 day commercial paper rate or adjusted Kenny rate. Dividend
rates on APS ranged from 1.41% to 1.83% during the six months ended
October 31, 2017.
The Trust may not declare dividends or make other distributions on its
common shares or purchase any such shares if, at the time of the
declaration, distribution or purchase, the Trust does not comply with the
asset coverage ratios described in the prospectus for the APS.
The APS are redeemable at the option of the Trust, in whole or in part, on
any dividend payment date at $25,000 per share plus any accumulated or
unpaid dividends, whether or not declared. The APS are also subject to
mandatory redemption at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared, if certain requirements relating to
the composition of the assets and liabilities of the Trust as set forth in
the Statement of Preferences are not satisfied.
The holders of APS have voting rights equal to the holders of the Trust's
common shares (one vote per share) and will vote together with holders of the
common shares as a single class. Holders of APS are also entitled to elect two
of the Trust's Trustees. In addition, the Investment Company Act of 1940, as
amended, requires that along with approval by shareowners that might
otherwise be required, the approval of the holders of a majority of any
outstanding preferred shares, voting separately as a class, would be required to
(a) adopt any plan of reorganization that would adversely affect the preferred
shares and (b) take any action requiring a vote of security holders, including,
among other things, changes in the Trust's subclassification as a closed-end
management investment company or changes in its fundamental investment
restrictions.
5. Subsequent Events
A monthly dividend was declared on December 13, 2017 from undistributed and
accumulated net investment income of $0.0525 per common share payable December
18, 2017, to common shareowners of record on December 14, 2017.
Subsequent to October 31, 2017, dividends declared and paid on preferred shares
totaled $216,599 in aggregate for the two outstanding preferred share series
through December 14, 2017.
The Board of Trustees has approved the redemption of the Trust's outstanding APS
at the liquidation preference per share of each series of APS, together with
accrued and unpaid dividends, if any, as of the redemption date.
The redemption of the Trust's APS is subject to the successful negotiation of a
refinancing plan, the satisfaction of certain notice and regulatory
requirements, and the closing conditions of the new financing. Specific
information related to the redemption process and time frames will be released
by the Trust separately.
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 35
ADDITIONAL INFORMATION
During the period, there have been no material changes in the Trust's investment
objective or fundamental policies that have not been approved by the
shareowners. There have been no changes in the Trust's charter or By-Laws that
would delay or prevent a change in control of the Trust which has not been
approved by the shareowners. During the period, there have been no changes in
the principal risk factors associated with investment in the Trust. There were
no changes in the persons who are primarily responsible for the day-to-day
management of the Trust's portfolio.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Trust may purchase, from time to time, its common
shares in the open market.
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the Adviser), the
Trusts' investment adviser, was an indirect, wholly owned subsidiary of
UniCredit S.p.A. (UniCredit). On that date, UniCredit completed the sale of its
Pioneer Investments business, which includes the Adviser, to Amundi (the
Transaction). As a result of the Transaction, the Adviser became an indirect,
whollyowned subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A.
Amundi is headquartered in Paris, France, and, as of September 30, 2016, had
more than $1.1 trillion in assets under management worldwide.
Deloitte & Touche LLP (D&T), the Trust's previous independent registered public
accounting firm, informed the Audit Committee and the Board that it would no
longer be independent with respect to the Trusts upon the completion of the
Transaction as a result of certain services being provided to Amundi and Credit
Agricole, and, accordingly, that it intended to resign as the Trusts'
independent registered public accounting firm upon the completion of the
Transaction. D&T's resignation was effective on July 3, 2017, when the
Transaction was completed.
During the periods as to which D&T has served as the Trusts' independent
registered public accounting firm, including the Trusts' two most recent fiscal
years preceding the fiscal year ended July 31, 2017, D&T's reports on the
Trusts' financial statements have not contained an adverse opinion or disclaimer
of opinion and have not been qualified or modified as to uncertainty, audit
scope or accounting principles. Further, there have been no disagreements with
D&T on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which, if not resolved to the
satisfaction of D&T, would have caused D&T to make reference to the subject
matter of the disagreement in connection with its report on the
36 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
financial statements. In addition, there have been no reportable events of the
kind described in Item 304(a)(1)(v) of Regulation S-K under the Securities
Exchange Act of 1934.
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
a new independent registered public accounting firm, Ernst & Young LLP (EY).
Prior to its engagement, EY had advised the Trusts' Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be inconsistent with
the auditor independence rules set forth by the Securities and Exchange
Commission (SEC): (a) project management support services to UniCredit in the
Czech Republic, Germany, Italy, Serbia and Slovenia in relation to twenty-two
projects, that were determined to be inconsistent with Rule 2-01(c)(4)(vi) of
Regulation S-X (management functions); (b) two engagements for UniCredit in
Italy where fees were contingent/success based and that were determined to be
inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent fees); (c) four
engagements where legal and expert services were provided to UniCredit in the
Czech Republic and Germany, and twenty engagements where the legal advisory
services were provided to UniCredit in Austria, Czech Republic, Italy and
Poland, that were determined to be inconsistent with Rule 2-01(c)(4)(ix) and (x)
of Regulation S-X (legal and expert services); and (d) two engagements for
UniCredit in Italy involving assistance in the sale of certain assets, that were
determined to be inconsistent with Rule 2-01(c)(4)(viii) of Regulation S-X
(broker-dealer, investment advisor or investment banking services). None of the
foregoing services involved the Trusts, any of the other funds in the Pioneer
Family of Funds or any other Pioneer entity sold by UniCredit in the
Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Trusts under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of
Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 37
the Trusts, and Management further believes that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion.
Results of Shareholder Meetings
At a special meeting held on June 13, 2017, shareholders of the Trust were asked
to consider the proposal described below. A report of the total votes cast by
the Trust's shareholders follows:
------------------------------------------------------------------------------------------------
For Against Abstain Broker Non-Votes
------------------------------------------------------------------------------------------------
Proposal 1 - To approve 14,955,885.611 916,117.000 564,028.000 0.000
a New Management
Agreement with
the Adviser
At the annual meeting held on September 21, 2017, shareholders of the
Trust were asked to consider the proposal described below. A report of the
total votes cast by the Trust's shareholders follows:
---------------------------------------------------------------------------------------------
For Withhold
---------------------------------------------------------------------------------------------
Proposal 1 - To elect three Class II Trustees
Benjamin M. Friedman 19,427,729.897 1,201,265.065
---------------------------------------------------------------------------------------------
Margaret B.W. Graham 19,343,365.994 1,285,628.968
---------------------------------------------------------------------------------------------
Kenneth J. Taubes 19,447,066.902 1,181,928.060
---------------------------------------------------------------------------------------------
38 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
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
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Amundi Pioneer 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 www.amundipioneer.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 | 10/31/17 39
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40 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
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Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 41
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42 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
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Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17 43
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44 Pioneer Municipal High Income Trust | Semiannual Report | 10/31/17
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call American Stock Transfer & Trust Company (AST) for:
--------------------------------------------------------------------------------
Account Information 1-800-710-0935
Or write to AST:
--------------------------------------------------------------------------------
For Write to
General inquiries, lost dividend checks, American Stock
change of address, lost stock certificates, Transfer & Trust
stock transfer Operations Center
6201 15th Ave.
Brooklyn, NY 11219
Dividend reinvestment plan (DRIP) American Stock
Transfer & Trust
Wall Street Station
P.O. Box 922
New York, NY 10269-0560
Website www.amstock.com
For additional information, please contact your investment advisor or visit our
web site www.amundipioneer.com.
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] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C)2017 Amundi Pioneer Asset Management 19442-11-1217
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 Amundi Pioneer Asset Management, Inc, 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.
N/A
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.
N/A
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, 2017
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, 2017
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 29, 2017
* Print the name and title of each signing officer under his or her signature.