0001258943falseNet 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 Fund’s website at www.amundi.com/us. The Fund redeemed 900 Variable Rate MuniFund Term Preferred Shares, with a liquidation preference of $100,000 per share, on February 29, 2024.The Fund issued 200 Variable Rate MuniFund Term Preferred Shares, with a liquidation preference of $100,000 per share, on February 16, 2021.The Fund redeemed 200 Variable Rate MuniFund Term Preferred Shares, with a liquidation preference of $100,000 per share, on September 29, 2022.The Fund redeemed 200 Variable Rate MuniFund Term Preferred Shares, with a liquidation preference of $100,000 per share, on November 14, 2022.Market value is redemption value without an active market. 0001258943 2023-04-01 2024-03-31 0001258943 2024-03-31 0001258943 2023-03-31 0001258943 2022-03-31 0001258943 2021-03-31 0001258943 2020-03-31 0001258943 2019-04-01 2020-03-31 0001258943 2021-04-01 2022-03-31 0001258943 2020-04-01 2021-03-31 0001258943 2022-04-01 2023-03-31 0001258943 cik0001258943:GeneralMember 2023-04-01 2024-03-31 0001258943 cik0001258943:MarketPriceOfCommonSharesMember 2023-04-01 2024-03-31 0001258943 cik0001258943:MarketRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:HighYieldOrjunkBondRiskMember 2023-04-01 2024-03-31 0001258943 us-gaap:InterestRateRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:MarketSegmentRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:ValuationRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:CybersecurityRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:CashManagementRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:AntitakeoverProvisionsMember 2023-04-01 2024-03-31 0001258943 cik0001258943:SyntheticMunicipalSecuritiesRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:RisksOfInvestingInInverseFloatingRateObligationsMember 2023-04-01 2024-03-31 0001258943 cik0001258943:CreditDefaultSwapRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:StructuredSecuritiesRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:LeveragingRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:RepurchaseAgreementRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:RisksOfInvestingInCollateralizedDebtObligationsMember 2023-04-01 2024-03-31 0001258943 cik0001258943:RisksOfInstrumentsThatAllowForBalloonPaymentsOrNegativeAmortizationPaymentsMember 2023-04-01 2024-03-31 0001258943 cik0001258943:RisksOfZeroCouponBondsPaymentInKindDeferredAndContingentPaymentSecuritiesMember 2023-04-01 2024-03-31 0001258943 cik0001258943:DerivativesRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:TaxableInvestmentRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:RisksOfSubordinatedSecuritiesMember 2023-04-01 2024-03-31 0001258943 cik0001258943:U.s.TreasuryObligationsRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:U.s.GovernmentAgencyObligationsRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:MortgagerelatedAndAssetbackedSecuritiesRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:CreditRisksMember 2023-04-01 2024-03-31 0001258943 cik0001258943:PrepaymentOrCallRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:ExtensionRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:RiskOfIlliquidInvestmentsMember 2023-04-01 2024-03-31 0001258943 cik0001258943:PortfolioSelectionRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:MunicipalSecuritiesRiskMember 2023-04-01 2024-03-31 0001258943 cik0001258943:CommonShareMember 2023-04-01 2024-03-31 0001258943 cik0001258943:CommonShareMember 2022-04-01 2023-03-31 xbrli:shares xbrli:pure iso4217:USD iso4217:USD xbrli:shares
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM
N-CSR
 
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-21409
 
 
Pioneer Municipal High Income Advantage Fund, Inc.
(Exact name of registrant as specified in charter)
 
 
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
 
 
Christopher J. Kelley, Amundi 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: March 31, 2024
Date of reporting period: April 1, 2023 through March 31, 2024
 
 
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. REPORT TO STOCKHOLDERS.

Pioneer Municipal High Income Advantage Fund, Inc.
Annual Report  |  March 31, 2024 
 
Ticker Symbol: MAV


visit us: www.amundi.com/us




Portfolio Management Discussion  |  3/31/24
In the following interview, John (Jake) Crosby van Roden III
*
and Prakash Vadlamani* discuss the factors that affected the performance of the Pioneer Municipal High Income Advantage Fund, Inc. during the 12-month period ended March 31, 2024. Mr. van Roden, Managing Director and Director of Municipals and a portfolio manager at Amundi Asset Management US, Inc. ("Amundi US"), and Mr. Vadlamani, Senior Vice President, Senior Credit Analyst and associate portfolio manager at Amundi US, are responsible for the day-to-day management of the Fund.
Q
How did the Fund perform during the 12-month period ended March 31, 2024?
A
Pioneer Municipal High Income Advantage Fund, Inc. returned 2.49% at net asset value (NAV) and 3.59% at market price during the 12-month period ended March 31, 2024. During the same 12-month period, the Fund’s benchmarks, the Bloomberg US Municipal High Yield Bond Index and the Bloomberg Municipal Bond Index, returned 7.19% and 3.13% at NAV, respectively. The Bloomberg US Municipal High Yield Bond Index is an unmanaged measure of the performance of lower rated municipal bonds, while the Bloomberg Municipal Bond Index is an unmanaged measure of the performance of investment-grade municipal bonds. Unlike the Fund, the two indices do not use leverage. While the use of leverage increases investment opportunity, it also increases investment risk.
  During the same 12-month period, the average return at NAV of the 24 closed end funds in Morningstar’s Closed End High Yield Municipal category (which may or may not be leveraged) was 1.84%, and the average return at market price of the closed-end funds within the same Morningstar category was 3.60%.
  The shares of the Fund were selling at a 11.41% discount to NAV on March 31, 2024. Comparatively, the shares of the Fund were selling at a 12.35% discount to NAV on March 31, 2023. On March 31, 2024, the standardized 30-day SEC yield of the Fund’s shares was 3.31%.**
* Mr. van Roden and Mr. Vadlamani became portfolio managers of the Fund effective February 28, 2024.
** The 30-day SEC yield is a standardized formula that is based on the hypothetical annualized earning power (investment income only) of the Fund’s portfolio securities during the period indicated.
2
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24


Q
Which investment strategies detracted from the Fund’s benchmark-relative performance results during the 12-month period ended March 31, 2024?
A
The use of leverage, which tends to augment income but also amplifies the effect of price movements, was a key detractor from the Fund’s benchmark-relative performance over the 12-month period, as the high-yield municipal bond market experienced a downturn. Unlike the Fund, the two benchmark indices do not use leverage. With respect to sector positioning, overweight allocations to hospitals and housing municipal bonds detracted from relative performance during the 12-month period. From a rating perspective, an overweight allocation to the highest rated municipal bonds, AAA, combined with an underweight to AA rated municipal bonds, also detracted from the Fund's benchmark-relative performance during the 12-month period.
Q
Which of the Fund's investment strategies contributed positively to the Fund’s benchmark-relative performance during the period?
A
With respect to ratings categories, the Fund’s exposure to lower quality issues within high-yield municipal bonds benefited benchmark relative results during the 12-month period, as non-rated issues provided positive relative returns to the portfolio. In sector terms, the Fund's positioning in the education sector contributed positively to the Fund’s relative returns during the 12-month period. Longer duration positions within hospitals, water and sewer and tobacco bonds were additive to the Fund's performance during the 12-month period.
Q
Did the Fund’s distributions*** to stockholders change during the 12-month period ended March 31, 2024?
A
The Fund’s monthly distribution rate decreased from $0.03450 per share in March 2023, to $0.03100 per share in March 2024. The decrease in the Fund’s distribution rate was due to an increase in the cost of leverage incurred by the Fund, which reduced the amount of funds available for distribution.
*** Distributions are not guaranteed.
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24
3


Q
Did the level of leverage in the Fund change during the 12-month period March 31, 2024?
A
On March 31, 2024, 18.5% of the Fund’s total managed assets were financed by leverage obtained through the issuance of Variable Rate MuniFund Term Preferred Shares, compared with 38.4% of the Fund’s total managed assets financed by leverage at the start of the period on April 1, 2023. During the 12-month period, the Fund decreased the amount of leverage by a total of $90 million, to $50 million as of March 31, 2024. The reduction in the amount of fund leverage during the period was due to increased borrowing costs and a decrease in the value of the Fund's total assets. The interest rate on the Fund's leverage increased by 60 basis points from March 31, 2023 to March 31, 2024.
Q
Did the Fund have any exposure to derivatives during the 12- month period ended March 31, 2024?
A
Yes, we invested the Fund’s portfolio in futures contracts during the period, which had a slight positive effect on benchmark-relative performance.
Q
What is your investment outlook, and how is the Fund positioned heading into its new fiscal year?
A
We have continued to prefer investments in hospital-related issues, since the sector has historically had very low default rates. The revenue received by hospitals has remained diverse, coming from a combination of Medicare, Medicaid, private insurers, and self-payors. The Fund is also overweight to tobacco Master Settlement Agreement (MSA) bonds, due in part to the fact that the sector has never experienced a default. Tobacco bond revenues have provided substantial funding for the advancement of public health and other similar programs to state and local governments that signed the tobacco MSA.
  In addition, the Fund is slightly underweight relative to the benchmark to bonds issued by the Commonwealth of Puerto Rico. The territory’s geographic position makes it vulnerable to hurricane risks, and the local economy’s dependence on tourism means Puerto Rico bonds are potentially more susceptible to a global economic slowdown than bonds of other issuers.
4
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24


  The Fund is also underweight to state general obligation issues, which have tended to be sensitive to political considerations, as certain state governments may have lower flexibility to raise taxes due to constituents’ preferences, thus limiting their ability to increase revenues. Likewise, healthcare and labor costs could apply additional pressure.
  We anticipate that the shifting interest-rate outlook will continue to impact near-term market performance, given the data dependent nature of US Federal Reserve System (Fed) policy. However, slowing consumer spending and decelerating activity in the housing market may indicate that the Fed is moving closer to the point at which it can conclude its monetary tightening cycle. If this turns out to be the case, we believe investors may turn their attention to the positive fundamental traits of the high-yield municipal market, including its current low default rate and the continued decline in new-issue supply. We are also encouraged by the opportunities afforded by the compelling yields in the investment-grade municipal bond space.
  As is always the case, headline news events have had a minimal effect on our day-to-day approach to managing the portfolio. Our goal is to invest the Fund in what we believe are fundamentally sound credits representing relative value opportunities, while maintaining an appropriate level of risk management.  We also seek to avoid experiencing defaults in the Fund through our emphasis on fundamental research. We believe this steady, long-term approach remains the most effective way to identify opportunities and to help minimize the risk associated with investing in the high-yield municipal market.
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24
5


Please refer to the Schedule of Investments on pages 13 - 21 for a full listing of Portfolio securities.
All investments are subject to risk, including the possible loss of principal. In he past several years, financial markets have experienced increased volatility and heightened uncertainty. The market prices of securities 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, recessions, inflation, changes in interest or currency rates, lack of liquidity in he bond markets, the spread of infectious illness or other public health issues, armed conflict including Russia's military invasion of Ukraine, sanctions against Russia, other nations or individuals or companies and possible countermeasures, market disruptions caused by tariffs, trade disputes or other government actions, or adverse investor sentiment. These conditions may continue, recur, worsen or spread.
Investments in high-yield or lower-rated securities are subject to greater-than average risk.
The Fund may invest in securities of issuers that are in default or that are in bankruptcy.
A portion of income may be subject to state, federal, and/or alternative minimum tax. Capital gains, if any, are subject to a capital gains tax.
When interest rates rise, the prices of fixed-income securities held by the Fund will generally fall. Conversely, when interest rates fall, the prices of fixed-income securities held by the Fund will generally rise.
The value of municipal securities can be adversely affected by changes in financial condition of municipal issuers, lower revenues, and regulatory and political developments. By concentrating in municipal securities, the portfolio is more susceptible to adverse economic, political or regulatory developments than is a portfolio that invests more broadly.
Investments in the Fund 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 Fund currently uses leverage through the issuance of preferred shares. Leverage creates significant risks, including the risk that the Fund's incremental income or capital appreciation for investments purchased with the proceeds of leverage will not be sufficient to cover the cost of leverage, which may adversely affect the return for the holders of common shares.
The Fund is required to meet certain regulatory and rating agency asset coverage requirements in connection with its outstanding preferred shares. In
6
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24


order to maintain required asset coverage levels, the Fund may be required to alter the composition of its investment portfolio or take other actions, such as redeeming preferred shares with the proceeds from portfolio transactions, at what might be inopportune times in the market. Such actions could reduce the net earnings or returns to holders of the Fund's common shares over time, which is likely to result in a decrease in the market value of the Fund's shares.
These risks may increase share price volatility.
Any information in this stockholder 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 Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24
7


Portfolio Summary  |  3/31/24 
Portfolio Diversification

(As a percentage of total investments)*
Portfolio Maturity

(As a percentage of total investments)*
8
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24


State Diversification

(As a percentage of total investments)*
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24
9


Portfolio Summary  |  3/31/24 
(continued)
10 Largest Holdings

(As a percentage of total investments)*
1. Puerto Rico Commonwealth Aqueduct & Sewer Authority, Series A, 5.00%, 7/1/47 (144A) 5.85%
2. Buckeye Tobacco Settlement Financing Authority, Senior Class 2, Series B-2, 5.00%, 6/1/55 5.64
3. California County Tobacco Securitization Agency, Capital Appreciation, Stanislaus County, Subordinated, Series A, 6/1/46 3.92
4. Massachusetts Development Finance Agency, WGBH Educational Foundation, Series A, 5.75%, 1/1/42 (AMBAC Insured) 3.84
5. Arkansas Development Finance Authority, Green Bond, 5.45%, 9/1/52 3.80
6. Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Restructured Series A-1, 5.00%, 7/1/58 3.12
7. District of Columbia Tobacco Settlement Financing Corp., Asset-Backed, 6.75%, 5/15/40 2.58
8. Iowa Finance Authority, Alcoa Inc. Projects, 4.75%, 8/1/42 2.53
9. City of Houston Airport System Revenue, 4.00%, 7/15/41 2.47
10. Commonwealth of Puerto Rico, Restructured Series A-1, 4.00%, 7/1/46 2.34
*  Excludes short-term investments and all derivative contracts except for options purchased. The Fund is actively managed, and current holdings may be different. The holdings listed should not be considered recommendations to buy or sell any securities.
10
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24


Prices and Distributions  |  3/31/24
Market Value per Common Share
^
 
3/31/24
3/31/23
Market Value $
8.15
$
8.23
Discount (11.41)% (12.35)%
Net Asset Value per Common Share
^
 
3/31/24
3/31/23
Net Asset Value $9.20 $9.39
Distributions per Common Share: 4/1/23 - 3/31/24
 
Net Investment
Income
Short-Term
Capital Gains
Long-Term
Capital Gains
4/1/23 – 3/31/24 $0.3480 $— $—
Yields
 
3/31/24
3/31/23
30-Day SEC Yield 3.31% 3.28%
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 Fund’s website at www.amundi.com/us.
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24
11


Performance Update  |  3/31/24
Investment Returns

The mountain chart on the right shows the change in market value, including reinvestment of dividends and distributions, of a $10,000 investment made in common shares of Pioneer Municipal High Income Advantage Fund, Inc. during the periods shown, compared to that of the Bloomberg Municipal Bond Index and the Bloomberg U.S. Municipal High Yield Bond Index.
Average Annual Total Return

(As of March 31, 2024)
Period
Net
Asset
Value
(NAV)
Market
Price
Bloomberg
Municipal
Bond
Index
Bloomberg
U.S.
Municipal
High Yield
Bond Index
10 Years 2.95% -0.20% 2.66% 4.55%
5 Years 0.03 -0.75 1.59 3.03
1 Year 2.49 3.59 3.13 7.91
Value of $10,000 Investment
Call 1-800-710-0935 or visit www.amundi.com/us for the most recent month-end performance results. Current performance may be lower or higher than the performance data quoted.
Performance data shown represents past performance. Past performance is no guarantee of future results. Investment return and market price will fluctuate, and your shares may trade below NAV due to such factors as interest rate changes and the perceived credit quality of borrowers.
Total investment return does not reflect broker sales charges or commissions. All performance is for common shares of the Fund.
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, 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 Fund’s dividend reinvestment plan.
The performance table and graph do not reflect the deduction of fees and taxes that a stockholder would pay on Fund distributions or the sale of Fund shares. Had these fees and taxes been reflected, performance would have been lower.
The Bloomberg Municipal Bond Index is an unmanaged, broad measure of the municipal bond market. The Bloomberg U.S. Municipal High Yield 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, issue date later than 12/31/90, deal size over $20 million, maturity size of at least $3 million. Index returns are calculated monthly, assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
The indices do not employ leverage. You cannot invest directly in the indices.
12
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24


Schedule of Investments  |  3/31/24 
Principal
Amount
USD ($)
         
Value
 
UNAFFILIATED ISSUERS — 120.8%
 
 
Municipal Bonds — 119.5%
of Net Assets(a)
 
 
Arizona — 1.4%
 
1,325,000 Arizona Industrial Development Authority, Doral Academy Nevada Fire Mesa, Series A, 5.00%, 7/15/39 $  1,330,618
1,965,000 Industrial Development Authority of the City of Phoenix, 3rd & Indian School Assisted Living Project, 5.40%, 10/1/36   1,777,991
 
Total Arizona
  $
3,108,609
 
Arkansas — 5.3%
 
1,500,000 Arkansas Development Finance Authority, Big River Steel Project, 4.75%, 9/1/49 (144A) $  1,476,390
10,000,000 Arkansas Development Finance Authority, Green Bond, 5.45%, 9/1/52  10,094,300
 
Total Arkansas
 $
11,570,690
 
California — 15.3%
 
38,610,000(b)
California County Tobacco Securitization Agency, Capital Appreciation, Stanislaus County, Subordinated, Series A, 6/1/46 $ 10,417,364
5,000,000 California Health Facilities Financing Authority, Cedars-Sinai Health System, Series A, 3.00%, 8/15/51   4,000,250
1,500,000 California Municipal Finance Authority, Series A, 5.25%, 11/1/52 (AGM Insured)   1,667,220
1,875,000 California Statewide Communities Development Authority, Lancer Plaza Project, 5.875%, 11/1/43   1,878,525
2,000,000 California Statewide Communities Development Authority, Loma Linda University Medical Center, 5.50%, 12/1/58 (144A)   2,054,620
5,915,000 California Statewide Communities Development Authority, Loma Linda University Medical Center, Series A, 5.00%, 12/1/46 (144A)   5,937,655
5,500,000 City of Oroville, Oroville Hospital, 5.25%, 4/1/49   3,539,855
4,000,000 San Diego County Regional Airport Authority, Private Activity, Series B, 5.25%, 7/1/58   4,268,280
 
Total California
 $
33,763,769
 
Colorado — 4.5%
 
1,000,000 Aerotropolis Regional Transportation Authority, 4.375%, 12/1/52 $
    850,370
1,148,000(c)
Cottonwood Highlands Metropolitan District No. 1, Series A, 5.00%, 12/1/49   1,084,229
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24
13


Schedule of Investments  |  3/31/24 
(continued)
Principal
Amount
USD ($)
         
Value
 
Colorado — (continued)
 
5,450,000 Dominion Water & Sanitation District, 5.875%, 12/1/52 $  5,434,685
2,500,000 Nine Mile Metropolitan District, 5.125%, 12/1/40   2,477,525
 
Total Colorado
  $
9,846,809
 
Connecticut — 0.9%
 
2,035,000 Mohegan Tribal Finance Authority, 7.00%, 2/1/45 (144A) $  2,039,396
 
Total Connecticut
  $
2,039,396
 
Delaware — 0.4%
 
450,000 Delaware State Economic Development Authority, Aspira of Delaware Charter, 3.00%, 6/1/32 $
    381,847
700,000 Delaware State Economic Development Authority, Aspira of Delaware Charter, 4.00%, 6/1/42     571,067
 
Total Delaware
    $
952,914
 
District of Columbia — 3.1%
 
6,630,000 District of Columbia Tobacco Settlement Financing Corp., Asset-Backed, 6.75%, 5/15/40 $  6,867,354
 
Total District of Columbia
  $
6,867,354
 
Florida — 2.1%
 
550,000 County of Lake, Imagine South Lake, Charter School Project, 5.00%, 1/15/39 (144A) $
    533,120
825,000 County of Lake, Imagine South Lake, Charter School Project, 5.00%, 1/15/49 (144A)      751,039
4,300,000 State of Florida Department of Transportation Turnpike System Revenue, Series B, 2.00%, 7/1/37   3,390,206
 
Total Florida
  $
4,674,365
 
Idaho — 0.9%
 
2,000,000 Power County Industrial Development Corp., FMC Corp. Project, 6.45%, 8/1/32 $  2,006,320
 
Total Idaho
  $
2,006,320
 
Illinois — 6.3%
 
3,760,000(c)
Chicago Board of Education, Series A, 5.00%, 12/1/47 $  3,840,765
1,000,000(c)
Chicago Board of Education, Series A, 7.00%, 12/1/46 (144A)   1,075,880
1,200,000(c)
Chicago Board of Education, Series D, 5.00%, 12/1/46   1,205,664
2,000,000(c)
Chicago Board of Education, Series H, 5.00%, 12/1/46   2,007,900
2,000,000(c)
City of Chicago, Series B-R, 5.50%, 1/1/34   2,016,520
140,903(b)(d)
Illinois Finance Authority, Cabs Clare Oaks Project, Series B-1, 11/15/52        8,454
The accompanying notes are an integral part of these financial statements.
14
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24


Principal
Amount
USD ($)
         
Value
 
Illinois — (continued)
 
223,202(d)(e)
Illinois Finance Authority, Clare Oaks Project, Series A-3, 4.00%, 11/15/52 $
    145,081
3,000,000 Metropolitan Pier & Exposition Authority, McCormick Place Expansion, 4.00%, 6/15/50   2,764,260
1,015,000(d)
Southwestern Illinois Development Authority, Village of Sauget Project, 5.625%, 11/1/26     761,250
 
Total Illinois
 $
13,825,774
 
Indiana — 0.5%
 
1,000,000 Indiana Finance Authority, Multipurpose Educational Facilities, Avondale Meadows Academy Project, 5.125%, 7/1/37 $  1,008,390
 
Total Indiana
  $
1,008,390
 
Iowa — 3.9%
 
6,900,000 Iowa Finance Authority, Alcoa Inc. Projects, 4.75%, 8/1/42 $  6,721,773
2,055,000 Iowa Tobacco Settlement Authority, Series A-2, 4.00%, 6/1/49   1,939,160
 
Total Iowa
  $
8,660,933
 
Maine — 0.9%
 
2,000,000 Maine Health & Higher Educational Facilities Authority, Series A, 4.00%, 7/1/50 $  1,899,740
 
Total Maine
  $
1,899,740
 
Massachusetts — 6.8%
 
3,500,000 Massachusetts Development Finance Agency, Lowell General Hospital, Series G, 5.00%, 7/1/44 $  3,408,895
8,000,000 Massachusetts Development Finance Agency, WGBH Educational Foundation, Series A, 5.75%, 1/1/42 (AMBAC Insured)  10,220,640
1,315,000 Massachusetts Housing Finance Agency, Series A-1, 4.20%, 12/1/52   1,231,563
 
Total Massachusetts
 $
14,861,098
 
Michigan — 0.9%
 
1,985,000 David Ellis Academy-West, 5.25%, 6/1/45 $  1,846,447
205,000 Michigan Public Educational Facilities Authority, Crescent Academy, 7.00%, 10/1/36     205,668
 
Total Michigan
  $
2,052,115
 
Minnesota — 0.4%
 
1,000,000 City of Ham Lake, DaVinci Academy, Series A, 5.00%, 7/1/47 $
    931,220
 
Total Minnesota
    $
931,220
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24
15


Schedule of Investments  |  3/31/24 
(continued)
Principal
Amount
USD ($)
         
Value
 
Montana — 0.2%
 
2,445,000(d)(e)
City of Hardin, Tax Allocation, Rocky Mountain Power, Inc., Project, 6.25%, 9/1/31 $
    489,000
1,000,000(d)
Two Rivers Authority, 7.375%, 11/1/27      40,000
 
Total Montana
    $
529,000
 
New Hampshire — 0.5%
 
1,375,000 New Hampshire Health and Education Facilities Authority Act, Catholic Medical Centre, 3.75%, 7/1/40 $  1,063,067
 
Total New Hampshire
  $
1,063,067
 
New Jersey — 0.4%
 
1,000,000 New Jersey Economic Development Authority, Marion P. Thomas Charter School, Inc., Project, Series A, 5.375%, 10/1/50 (144A) $
    919,020
 
Total New Jersey
    $
919,020
 
New York — 10.9%
 
3,000,000 Erie Tobacco Asset Securitization Corp., Asset-Backed, Series A, 5.00%, 6/1/45 $  2,891,850
2,000,000 Metropolitan Transportation Authority, Green Bond, Series C-1, 5.25%, 11/15/55   2,099,560
5,000,000 Metropolitan Transportation Authority, Green Bond, Series D-2, 4.00%, 11/15/48   4,625,800
2,530,000 New York Counties Tobacco Trust IV, Settlement pass through, Series A, 5.00%, 6/1/45   2,361,300
3,240,000 New York Counties Tobacco Trust VI, Series 2B, 5.00%, 6/1/45   3,119,504
4,685,000 New York State Housing Finance Agency, Sustainability Bond, Series G, 2.73%, 11/1/51 (SONYMA Insured)   3,260,807
1,750,000 New York Transportation Development Corp., Green Bond, 5.375%, 6/30/60   1,849,505
2,000,000 TSASC, Inc., Series B, 5.00%, 6/1/48   1,824,600
1,168,828 Westchester County Healthcare Corp., Series A, 5.00%, 11/1/44   1,150,092
1,000,000 Westchester County Local Development Corp., Purchase Senior Learning Community, Inc. Project, 4.50%, 7/1/56 (144A)     855,420
 
Total New York
 $
24,038,438
 
North Carolina — 0.2%
 
500,000 City of Charlotte Airport Revenue, Series A, 5.00%, 7/1/42 $
    519,940
 
Total North Carolina
    $
519,940
The accompanying notes are an integral part of these financial statements.
16
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24


Principal
Amount
USD ($)
         
Value
 
Ohio — 8.4%
 
15,855,000 Buckeye Tobacco Settlement Financing Authority, Senior Class 2, Series B-2, 5.00%, 6/1/55 $ 14,993,598
1,500,000 County of Muskingum, Genesis Healthcare System Project , 5.00%, 2/15/44   1,383,090
2,000,000 State of Ohio, 5.00%, 12/31/39   2,011,960
 
Total Ohio
 $
18,388,648
 
Pennsylvania — 7.7%
 
1,000,000 Chester County Industrial Development Authority, Collegium Charter School, Series A, 5.25%, 10/15/47 $
    915,440
6,665,000 Montgomery County Higher Education and Health Authority, Thomas Jefferson University, 4.00%, 9/1/49   6,125,402
6,000,000 Pennsylvania Higher Educational Facilities Authority, University of Pennsylvania, 4.00%, 8/15/49   5,706,360
2,500,000(e)
Philadelphia Authority for Industrial Development, 5.125%, 12/15/44 (144A)   2,312,575
500,000 Philadelphia Authority for Industrial Development, 5.50%, 6/1/49 (144A)      467,530
1,000,000 Philadelphia Authority for Industrial Development, Global Leadership Academy Charter School Project, Series A, 5.00%, 11/15/50      899,290
470,000 Philadelphia Authority for Industrial Development, Greater Philadelphia Health Action, Inc., Project, Series A, 6.625%, 6/1/50     455,068
 
Total Pennsylvania
 $
16,881,665
 
Puerto Rico — 16.8%
 
2,375,679(c)
Commonwealth of Puerto Rico, Restructured Series A-1, 4.00%, 7/1/37 $  2,259,105
5,021,480(c)
Commonwealth of Puerto Rico, Restructured Series A-1, 4.00%, 7/1/41   4,410,667
6,810,000(c)
Commonwealth of Puerto Rico, Restructured Series A-1, 4.00%, 7/1/46   6,226,315
15,250,000 Puerto Rico Commonwealth Aqueduct & Sewer Authority, Series A, 5.00%, 7/1/47 (144A)  15,555,610
1,000,000(d)
Puerto Rico Electric Power Authority, Series AAA, 5.25%, 7/1/24      260,000
8,255,000 Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Restructured Series A-1, 5.00%, 7/1/58   8,285,626
 
Total Puerto Rico
 $
36,997,323
 
Rhode Island — 0.3%
 
1,355,000(d)
Central Falls Detention Facility Corp., 7.25%, 7/15/35 $
    542,000
 
Total Rhode Island
    $
542,000
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24
17


Schedule of Investments  |  3/31/24 
(continued)
Principal
Amount
USD ($)
         
Value
 
South Carolina — 2.3%
 
4,400,000(f)
Tobacco Settlement Revenue Management Authority, Series B, 6.375%, 5/15/30 $  5,013,800
 
Total South Carolina
  $
5,013,800
 
South Dakota — 1.8%
 
4,000,000 South Dakota Health & Educational Facilities Authority, Sanford Health, Series B, 4.00%, 11/1/44 $  3,877,040
 
Total South Dakota
  $
3,877,040
 
Texas — 7.2%
 
500,000 Arlington Higher Education Finance Corp., 5.45%, 3/1/49 (144A) $
    525,125
1,000,000 Arlington Higher Education Finance Corp., Universal Academy, Series A, 7.00%, 3/1/34   1,001,750
1,500,000 Arlington Higher Education Finance Corp., Universal Academy, Series A, 7.125%, 3/1/44   1,500,180
7,345,000 City of Houston Airport System Revenue, 4.00%, 7/15/41   6,576,419
1,000,000 City of Houston Airport System Revenue, Series A, 4.00%, 7/1/41      874,640
1,545,000(c)
Denton Independent School District, 5.00%, 8/15/53 (PSF-GTD Insured)   1,674,749
5,000,000(d)(e)
Greater Texas Cultural Education Facilities Finance Corp., 8.00%, 2/1/50 (144A)   3,050,000
6,960,000(d)
Sanger Industrial Development Corp., Texas Pellets Project, Series B, 8.00%, 7/1/38          696
1,000,000(e)
Texas Midwest Public Facility Corp., Secure Treatment Facility Project, Restructured, 12/1/30     693,670
 
Total Texas
 $
15,897,229
 
Virginia — 8.4%
 
2,035,000 Lynchburg Economic Development Authority, 3.00%, 1/1/51 $  1,445,827
50,000 Tobacco Settlement Financing Corp., Series B-1, 5.00%, 6/1/47       48,987
2,000,000 Virginia College Building Authority, Public Higher Education Financing Program, Series C, 3.00%, 9/1/51 (ST INTERCEPT Insured)   1,522,800
10,000(g)
Virginia Public Building Authority, Series A, 4.00%, 8/1/40       10,758
990,000 Virginia Public Building Authority, Series A, 4.00%, 8/1/40   1,010,879
1,000,000 Virginia Small Business Financing Authority, Senior Lien, 5.00%, 12/31/47   1,001,170
1,000,000 Virginia Small Business Financing Authority, Senior Lien 95 Express Lanes LLC Project, 4.00%, 1/1/48      903,470
The accompanying notes are an integral part of these financial statements.
18
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24


Principal
Amount
USD ($)
         
Value
 
Virginia — (continued)
 
5,500,000 Virginia Small Business Financing Authority, Transform 66-P3 Project, 5.00%, 12/31/49 $  5,483,775
2,500,000 Virginia Small Business Financing Authority, Transform 66-P3 Project, 5.00%, 12/31/52   2,479,400
4,600,000 Virginia Small Business Financing Authority, Transform 66-P3 Project, 5.00%, 12/31/56   4,615,272
 
Total Virginia
 $
18,522,338
 
Wisconsin — 0.8%
 
750,000 Public Finance Authority, Roseman University Health Sciences Project, 5.875%, 4/1/45 $
    758,985
1,000,000 Public Finance Authority, SearStone CCRC Project, Series A, 5.00%, 6/1/37 (144A)     951,840
 
Total Wisconsin
  $
1,710,825
 
Total Municipal Bonds

(Cost $266,559,308)
$262,969,829
 
U.S. Government and Agency
Obligations — 1.3%
of Net Assets
 
3,000,000(b)
U.S. Treasury Bills, 4/23/24 $  2,990,338
 
Total U.S. Government and Agency Obligations

(Cost $2,990,348)
  
$
2,990,338
 
TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS — 120.8%

(Cost $269,549,656)
$
265,960,167
 
OTHER ASSETS AND LIABILITIES — (20.8)%
$
(45,883,077)
 
net assets applicable to common stockholders — 100.0%
$
220,077,090
             
AGM Assured Guaranty Municipal Corp.
AMBAC Ambac Assurance Corporation.
PSF-GTD Permanent School Fund Guaranteed.
SONYMA State of New York Mortgage Agency.
ST INTERCEPT State Aid Intercept.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24
19


Schedule of Investments  |  3/31/24 
(continued)
(144A) The resale of such security is exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold normally to qualified institutional buyers. At March 31, 2024, the value of these securities amounted to $38,505,220, or 17.5% of net assets applicable to common stockholders.
(a) Consists of Revenue Bonds unless otherwise indicated.
(b) Security issued with a zero coupon. Income is recognized through accretion of discount.
(c) Represents a General Obligation Bond.
(d) Security is in default.
(e) The interest rate is subject to change periodically. The interest rate and/or reference index and spread shown at March 31, 2024.
(f) Escrow to maturity.
(g) Pre-refunded 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.
The concentration of investments as a percentage of total investments by type of obligation/market sector is as follows:
Revenue Bonds:
 
Tobacco Revenue 18.6%
Development Revenue 17.9
Health Revenue 17.8
Transportation Revenue 12.8
Education Revenue 8.8
Water Revenue 7.9
Other Revenue 5.3
General Revenue 0.6
Facilities Revenue 0.5
Power Revenue 0.1
  90.3%
General Obligation Bonds:
9.7%
  100.0%
FUTURES CONTRACTS
FIXED INCOME INDEX FUTURES CONTRACTS
Number of
Contracts
Long
Description
Expiration
Date
Notional
Amount
Market
Value
Unrealized
Appreciation
135 U.S. Long Bond (CBT) 6/18/24 $16,067,466 $16,259,062 $191,596
TOTAL FUTURES CONTRACTS
$
16,067,466
$
16,259,062
$191,596
The accompanying notes are an integral part of these financial statements.
20
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24


Purchases and sales of securities (excluding temporary cash investments) for the year ended March 31, 2024, aggregated $53,771,511 and $146,574,705, respectively.
At March 31, 2024, the net unrealized depreciation on investments based on cost for federal tax purposes of $268,490,964 was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost $
16,819,217
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value (19,350,014)
Net unrealized depreciation $
(2,530,797)
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels below.
Level 1 unadjusted 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 Adviser’s own assumptions in determining fair value of investments). See Notes to Financial Statements — Note 1A.
The following is a summary of the inputs used as of March 31, 2024 in valuing the Fund’s investments:
 
Level 1
Level 2
Level 3
Total
Municipal Bonds $
$262,969,829 $— $262,969,829
U.S. Government and Agency Obligations 2,990,338 2,990,338
Total Investments in Securities
$
$
265,960,167
$
$
265,960,167
Other Financial Instruments
       
Variable Rate MuniFund Term Preferred Shares
(a)
$
$
(50,000,000)
$— $
(50,000,000)
Net unrealized appreciation on futures contracts 191,596 191,596
Total Other Financial Instruments
$
191,596
$
(50,000,000)
$
$
(49,808,404)
(a) The Fund may hold liabilities in which the fair value approximates the carrying amount for financial statement purposes.
During the year ended March 31, 2024, there were no transfers in or out of Level 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24
21


Statement of Assets and Liabilities  |  3/31/24
ASSETS:
 
Investments in unaffiliated issuers, at value (cost $269,549,656) $265,960,167
Cash 125,590
Futures collateral 847,852
Variation margin for futures contracts 33,750
Distribution paid in advance 741,348
Receivables —  
Interest 3,414,040
Other assets 100
Total assets
$271,122,847
LIABILITIES:
 
Variable Rate MuniFund Term Preferred Shares* $
50,000,000
Due to broker for futures 33,750
Payables —  
Distributions 741,348
Directors’ fees 1,507
Management fees 26,556
Administrative expenses 26,920
Accrued expenses 215,676
Total liabilities
$
51,045,757
NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS:
 
Paid-in capital $284,214,601
Distributable earnings (loss) (64,137,511)
Net assets
$
220,077,090
NET ASSET VALUE PER COMMON SHARE:
 
No par value  
Based on $220,077,090/23,914,439 common shares $
9.20
*   $100,000 liquidation value per share applicable to 500 shares.
The accompanying notes are an integral part of these financial statements.
22
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24


Statement of Operations
 
FOR THE YEAR ENDED 3/31/24
INVESTMENT INCOME:
   
Interest from unaffiliated issuers $
19,571,094
 
Total Investment Income  
$
19,571,094
EXPENSES:
   
Management fees $
2,087,327
 
Administrative expenses 85,111  
Transfer agent fees 17,146  
Stockholder communications expense 68,097  
Custodian fees 3,320  
Professional fees 404,625  
Printing expense 15,066  
Officers’ and Directors’ fees 17,783  
Insurance expense 7,501  
Interest expense 7,469,215  
Miscellaneous 87,192  
Total expenses   $
10,262,383
Net investment income  
$
9,308,711
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
   
Net realized gain (loss) on:    
Reimbursement by the Adviser $
78,397
 
Investments in unaffiliated issuers (17,365,022)  
Futures contracts (1,221,950) $(18,508,575)
Change in net unrealized appreciation (depreciation) on:    
Investments in unaffiliated issuers $
12,862,793
 
Futures contracts 191,596 $
13,054,389
Net realized and unrealized gain (loss) on investments  
$
(5,454,186)
Net increase in net assets resulting from operations  
$
3,854,525
The accompanying notes are an integral part of these financial statements.
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24
23


Statements of Changes in Net Assets
 
Year
Ended
3/31/24
Year
Ended
3/31/23
FROM OPERATIONS:
   
Net investment income (loss) $
9,308,711
$
9,793,580
Net realized gain (loss) on investments (18,508,575) (17,881,409)
Change in net unrealized appreciation (depreciation) on investments 13,054,389 (12,624,865)
Net increase (decrease) in net assets resulting from operations
$
3,854,525
$
(20,712,694)
DISTRIBUTIONS TO COMMON STOCKHOLDERS:
   
($0.35 and $0.42 per share, respectively) $
(8,322,225)
$
(10,115,452)
Tax Return Of Capital To Common Stockholders:
   
($— and $0.07 per share, respectively) $
$
(1,674,366)
Total distributions to common stockholders $
(8,322,225)
$
(11,789,818)
Net decrease in net assets applicable to common stockholders
$
(4,467,700)
$
(32,502,512)
NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS:
   
Beginning of year $224,544,790 $257,047,302
End of year
$
220,077,090
$224,544,790
 
Year
Ended
3/31/24
Common
Shares
Year
Ended
3/31/24
Amount
Year
Ended
3/31/23
Common
Shares
Year
Ended
3/31/23
Amount
FUND SHARE TRANSACTIONS
       
Common Shares sold $— $—
Reinvestment of distributions
Less Common Shares repurchased
Net increase $— $—
The accompanying notes are an integral part of these financial statements.
24
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24


Statement of Cash Flows
FOR THE YEAR ENDED 3/31/24 
Cash Flows From Operating Activities
 
Net increase in net assets resulting from operations $
3,854,525
Adjustments to reconcile net decrease in net assets resulting from operations to net cash and restricted cash from operating activities:
 
Purchases of investment securities $
(53,770,763)
Proceeds from disposition and maturity of investment securities 146,652,353
Net purchases of short term investments (2,598,302)
Net accretion and amortization of discount/premium on investment securities (1,435,958)
Reimbursement by the Adviser (78,397)
Net realized loss on investments in unaffiliated issuers 17,365,022
Change in unrealized appreciation on investments in unaffiliated issuers (12,862,793)
Decrease in interest receivable 1,823,227
Decrease in distributions paid in advance 83,700
Decrease in other assets 37
Increase in variation margin for futures contracts (33,750)
Increase in management fees payable 8,642
Increase in directors’ fees payable 1,469
Increase in due to broker for futures 33,750
Decrease in administrative expenses payable (2,023)
Increase in accrued expenses payable 47,197
Net cash and restricted cash from operating activities $
99,087,936
Cash Flows Used In Financing Activities:
 
Borrowings repaid (90,000,000)
Distributions to stockholders (8,405,925)
Net cash flows used in financing activities $
(98,405,925)
NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH
$
682,011
Cash and Restricted Cash:
 
Beginning of year* $
291,431
End of year* $
973,442
Cash Flow Information:
 
Cash paid for interest $
7,469,215
* The following table provides a reconciliation of cash and restricted cash reported within the Statement of Assets and Liabilities that sum to the total of the same such amounts shown in the Statement of Cash Flows:
 
Year Ended
3/31/24
Year Ended
3/31/23
Cash $125,590 $291,431
Restricted cash 847,852
Total cash and restricted cash shown in the Statement of Cash Flows
$973,442
$291,431
The accompanying notes are an integral part of these financial statements
Pioneer Municipal High Income Advantage Fund, Inc. | 
Annual Report
 | 
3/31/24
25


Financial Highlights
 
 
Year
Ended
3/31/24
Year
Ended
3/31/23
Year
Ended
3/31/22
Year
Ended
3/31/21
Year
Ended
3/31/20
Per Share Operating Performance
         
Net asset value, beginning of period $
9.39
$
10.75
$
12.16
$
11.77
$
11.68
Increase (decrease) from investment operations:(a)          
Net investment income (loss)(b) $
0.39
$
0.41
$
0.49
$
0.53
$
0.49
Net realized and unrealized gain (loss) on investments (0.23) (1.28) (1.38) 0.42 0.06
Net increase (decrease) from investment operations
$
0.16
$
(0.87)
$
(0.89)
$
0.95
$
0.55
Distributions to stockholders:          
Net investment income and previously undistributed net investment income $
(0.35)
$
(0.42)*
$
(0.52)*
$
(0.56)*
$
(0.46)
Tax return of capital (0.07)
Total distributions
$
(0.35)
$
(0.49)
$
(0.52)
$
(0.56)
$
(0.46)
Net increase (decrease) in net asset value
$
(0.19)
$
(1.36)
$
(1.41)
$
0.39
$
0.09
Net asset value, end of period $
9.20
$
9.39
$
10.75
$
12.16
$
11.77
Market value end of period $
8.15
$
8.23
$
9.83
$
11.82
$
10.18
Total return at net asset value(c)
2.49%(d)
(7.42)%
(7.54)%
8.60%
5.12%
Total return at market value(c)
3.59%
(11.26)%
(13.03)%
22.05%
(1.30)%
Ratios to average net assets of stockholders:          
Total expenses plus interest expense(e)(f) 4.76% 3.40% 1.86% 1.82% 2.61%
Net investment income 4.32% 4.29% 4.02% 4.33% 4.14%
Portfolio turnover rate 16% 63% 11% 12% 11%
Net assets of common stockholders, end of period (in thousands) $
220,077
$
224,545
$
257,047
$
290,614
$
281,372
Preferred shares outstanding (in thousands)(g)(h)(i)(j) $
50,000
$140,000 $180,000 $180,000 $160,000
Asset coverage per preferred share, end of period $540,154 $260,389 $242,804 $261,452 $276,030
Average market value per preferred share(k) $100,000 $100,000 $100,000 $100,000 $100,000
Liquidation value, including interest expense payable, per preferred share $100,000 $100,000 $100,000 $100,000 $100,172
* The amount of distributions made to shareowners during the period was in excess of the net investment income earned by the Fund during the period. The Fund has accumulated undistributed net investment income which is part of the Fund’s NAV. A portion of this accumulated net investment income was distributed to shareowners during the period. A decrease in distributions may have a negative effect on the market value of the Fund’s shares.
(a) The per common share data presented above is based upon the average common shares outstanding for the periods presented.
(b) Beginning March 31, 2020, distribution payments to preferred shareowners are included as a component of net investment income.
The accompanying notes are an integral part of these financial statements.
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(c) 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 Fund’s dividend reinvestment plan. Total investment return does not reflect brokerage commissions. Past performance is not a guarantee of future results.
(d) For the year ended March 31, 2024, the Fund’s total return includes a reimbursement by the Adviser (see Notes to the Financial Statements-Note 1B). The impact on total return was less than 0.005%.
(e) Includes interest expense of 3.47%, 2.09%, 0.56%, 0.64% and 1.50%, respectively.
(f) Prior to March 31, 2020, the expense ratios do not reflect the effect of distribution payments to preferred shareowners.
(g) The Fund redeemed 900 Variable Rate MuniFund Term Preferred Shares, with a liquidation preference of $100,000 per share, on February 29, 2024.
(h) The Fund redeemed 200 Variable Rate MuniFund Term Preferred Shares, with a liquidation preference of $100,000 per share, on November 14, 2022.
(i) The Fund redeemed 200 Variable Rate MuniFund Term Preferred Shares, with a liquidation preference of $100,000 per share, on September 29, 2022.
(j) The Fund issued 200 Variable Rate MuniFund Term Preferred Shares, with a liquidation preference of $100,000 per share, on February 16, 2021.
(k) Market value is redemption value without an active market.
The accompanying notes are an integral part of these financial statements.
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Notes to Financial Statements  |  3/31/24
1. Organization and Significant Accounting Policies
Pioneer Municipal High Income Advantage Fund, Inc. (the “Fund”) is organized as a Maryland corporation. Prior to April 21, 2021, the Fund was organized as a Delaware statutory trust. On April 21, 2021, the Fund redomiciled to a Maryland corporation through a statutory merger of the predecessor Delaware statutory trust with and into a newly-established Maryland corporation formed for the purpose of effecting the redomiciling. The Fund was originally organized on August 6, 2003. Prior to commencing operations on October 20, 2003, the Fund 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 "1940 Act"). The investment objective of the Fund is to seek a high level of current income exempt from regular federal income tax, and the Fund may, as a secondary objective, also seek capital appreciation to the extent that it is consistent with its primary investment objective.
Amundi Asset Management US, Inc., an indirect, wholly owned subsidiary of Amundi and Amundi’s wholly owned subsidiary, Amundi USA, Inc., serves as the Fund’s investment adviser (the “Adviser”).
The Fund is required to comply with Rule 18f-4 under the 1940 Act, which governs the use of derivatives by registered investment companies. Rule 18f-4 permits funds to enter into derivatives transactions (as defined in Rule 18f-4) and certain other transactions notwithstanding the restrictions on the issuance of “senior securities” under Section 18 of the 1940 Act. Rule 18f-4 requires a fund to establish and maintain a comprehensive derivatives risk management program, appoint a derivatives risk manager and comply with a relative or absolute limit on fund leverage risk calculated based on value-at-risk (“VaR”), unless the fund uses derivatives in only a limited manner (a "limited derivatives user"). The Fund is currently a limited derivatives user for purposes of Rule 18f-4.
The Fund is an investment company and follows investment company accounting and reporting guidance under U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). U.S. GAAP requires the management of the Fund 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.
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The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements:
A.
Security Valuation
  The net asset value of the Fund 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.
  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. The Adviser is designated as the valuation designee for the Fund pursuant to Rule 2a-5 under the 1940 Act. The Adviser’s fair valuation team is responsible for monitoring developments that may impact fair valued securities.
  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 Adviser may use fair value methods if it is determined that a significant event has occurred after the close of the exchange or market on which the security trades and prior to the determination of the Fund’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 Fund’s securities may differ significantly from exchange prices, and such differences could be material.
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  Futures contracts are generally valued at the closing settlement price established by the exchange on which they are traded.
B.
Investment Income and Transactions
  Interest income, including interest on income-bearing cash accounts, is recorded on the accrual basis. Dividend and interest income are reported net of unrecoverable foreign taxes withheld at the applicable country rates and net of income accrued on defaulted securities.
  Discounts and premiums on purchase prices of debt securities are accreted or amortized, respectively, daily, into interest income on an effective yield to maturity basis with a corresponding increase or decrease in the cost basis of the security. Premiums and discounts related to certain mortgage backed securities are amortized or accreted in proportion to the monthly paydowns.
  Interest and dividend income payable by delivery of additional shares is reclassified as PIK (payment-in-kind) income upon receipt and is included in interest and dividend income, respectively.
  Security transactions are recorded as of trade date. Gains and losses on sales of investments are calculated on the identified cost method for both financial reporting and federal income tax purposes.
  During the year ended March 31, 2024, the Fund realized a loss of $78,397 due to an operational error. The Adviser voluntarily reimbursed the Fund for this loss, which is reflected on the Statement of Operations as Reimbursement by the Adviser.
C.
Federal Income Taxes
  It is the Fund'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 stockholders. Therefore, no provision for federal income taxes is required. As of March 31, 2024, the Fund did not accrue any interest or penalties with respect to uncertain tax positions, which, if applicable, would be recorded as an income tax expense on the Statement of Operations. Tax returns filed within the prior three years remain subject to examination by federal and state tax authorities.
  The amount and character of income and capital gain distributions to stockholders are determined in accordance with federal income tax rules, which may differ from U.S. GAAP. Distributions in excess of net investment income or net realized gains are temporary over distributions for financial statement purposes resulting from differences in the
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  recognition or classification of income or distributions for financial statement and tax purposes. Capital accounts within the financial statements are adjusted for permanent book/tax differences to reflect tax character, but are not adjusted for temporary differences.
  At March 31, 2024, the Fund was permitted to carry forward indefinitely $2,848,872 of short-term losses and $58,692,841 of long-term losses.
  The tax character of distributions paid during the years ended March 31, 2024 and March 31, 2023, was as follows:
 
2024
2023
Distributions paid from:
   
Tax-exempt income $15,807,773 $14,529,823
Ordinary income 67,364 361,454
Tax return of capital 1,674,366
Total
$15,875,137
$16,565,643
The following shows the components of distributable earnings (losses) on a federal income tax basis at March 31, 2024:
 
2024
Distributable earnings/(losses):
 
Undistributed ordinary income $
461,587
Undistributed tax-exempt income 214,763
Capital loss carryforward (61,541,713)
Other book/tax temporary differences (741,351)
Net unrealized depreciation (2,530,797)
Total
$(64,137,511)
The difference between book basis and tax basis unrealized depreciation is primarily attributable to the tax deferral of losses on wash sales, the mark to market on futures contracts, the book/tax differences in the accrual of income on securities in default, and discounts on fixed income securities.
D.
Automatic Dividend Reinvestment Plan
  All stockholders 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 Fund in lieu of cash. Stockholders may elect not to participate in the Plan. Stockholders 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 Equiniti Trust Company, the agent for stockholders in administering the Plan (the “Plan Agent”), in writing prior to any
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  dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.
  If a stockholder’s shares are held in the name of a brokerage firm, bank or other nominee, the stockholder can ask the firm or nominee to participate in the Plan on the stockholder’s behalf. If the firm or nominee does not offer the Plan, dividends will be paid in cash to the stockholder of record. A firm or nominee may reinvest a stockholder’s cash dividends in shares of the Fund on terms that differ from the terms of the Plan.
  Whenever the Fund 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 Fund 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 stockholders from any federal, state or local taxes which may be due on dividends paid in any taxable year. Stockholders 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 Fund 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, recessions, the spread of infectious illness or other public health issues, inflation, changes in interest rates, armed conflict such as between Russia and Ukraine or in the Middle East, sanctions against Russia,
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  other nations or individuals or companies and possible countermeasures, 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. Inflation and interest rates have increased and may rise further. These circumstances could adversely affect the value and liquidity of the Fund’s investments and negatively impact the Fund’s performance.
  The long-term impact of the COVID-19 pandemic and its subsequent variants on economies, markets, industries and individual issuers, are not known. Some sectors of the economy and individual issuers have experienced or may experience particularly large losses. Periods of extreme volatility in the financial markets, reduced liquidity of many instruments, increased government debt, inflation, and disruptions to supply chains, consumer demand and employee availability, may continue for some time. Following Russia’s invasion of Ukraine, Russian securities lost all, or nearly all, their market value. Other securities or markets could be similarly affected by past or future political, geopolitical or other events or conditions.
  Governments and central banks, including the U.S. Federal Reserve, have taken extraordinary and unprecedented actions to support local and global economies and the financial markets. These actions have resulted in significant expansion of public debt, including in the U.S. The consequences of high public debt, including its future impact on the economy and securities markets, may not be known for some time.
  The U.S. and other countries are periodically involved in disputes over trade and other matters, which may result in tariffs, investment restrictions and adverse impacts on affected companies and securities. For example, the U.S. has imposed tariffs and other trade barriers on Chinese exports, has restricted sales of certain categories of goods to China, and has established barriers to investments in China. Trade disputes may adversely affect the economies of the U.S. and its trading partners, as well as companies directly or indirectly affected and financial markets generally. If the political climate between the U.S. and China does not improve or continues to deteriorate, if China were to attempt unification of Taiwan by force, or if other geopolitical conflicts develop or get worse, economies, markets and individual securities may be severely affected both regionally and globally, and the value of the Fund’s assets may go down.
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  At times, the Fund’s investments may represent industries or industry sectors that are interrelated or have common risks, making the Fund more susceptible to any economic, political, or regulatory developments or other risks affecting those industries and sectors.
  Under normal circumstances, the Fund will invest substantially all of its assets in municipal 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. Financial difficulties of municipal issuers may continue or get worse, particularly in the event of economic or market turmoil or a recession. To the extent the Fund invests significantly in a single state (including California and Massachusetts), city, territory (including Puerto Rico), or region, 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 Fund will be more susceptible to associated risks and developments.
  The Fund invests in below investment grade (high yield) municipal securities. Debt securities rated below investment grade are commonly referred to as “junk bonds” and are considered speculative with respect to the issuer's capacity to pay interest and repay principal. These securities involve greater risk of loss, are subject to greater price volatility, and may be less liquid and more difficult to value, especially during periods of economic uncertainty or change, than higher rated debt securities.
  The market prices of the Fund’s fixed income securities may fluctuate significantly when interest rates change. The value of your investment will generally go down when interest rates rise. A rise in rates tends to
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  have a greater impact on the prices of longer term or duration securities. For example, if interest rates increase by 1%, the value of a Fund’s portfolio with a portfolio duration of ten years would be expected to decrease by 10%, all other things being equal. In recent years interest rates and credit spreads in the U.S. have been at historic lows. The U.S. Federal Reserve has raised certain interest rates, and interest rates may continue to go up. A general rise in interest rates could adversely affect the price and liquidity of fixed income securities. The maturity of a security may be significantly longer than its effective duration. A security’s maturity and other features may be more relevant than its effective duration in determining the security’s sensitivity to other factors affecting the issuer or markets generally, such as changes in credit quality or in the yield premium that the market may establish for certain types of securities (sometimes called “credit spread”). In general, the longer its maturity the more a security may be susceptible to these factors. When the credit spread for a fixed income security goes up, or “widens”, the value of the security will generally go down.
  If an issuer or guarantor of a security held by the Fund or a counterparty to a financial contract with the Fund defaults on its obligation to pay principal and/or interest, has its credit rating downgraded or is perceived to be less creditworthy, or the credit quality or value of any underlying assets declines, the value of your investment will typically decline. Changes in actual or perceived creditworthiness may occur quickly. The Fund could be delayed or hindered in its enforcement of rights against an issuer, guarantor or counterparty.
  With the increased use of technologies such as the Internet to conduct business, the Fund is susceptible to operational, information security and related risks. While the Fund’s Adviser has established business continuity plans in the event of, and risk management systems to prevent, limit or mitigate, such cyber-attacks, there are inherent limitations in such plans and systems, including the possibility that certain risks have not been identified. Furthermore, the Fund cannot control the cybersecurity plans and systems put in place by service providers to the Fund such as the Fund’s custodian and accounting agent, and the Fund’s transfer agent. In addition, many beneficial owners of Fund shares hold them through accounts at broker-dealers, retirement platforms and other financial market participants over which neither the Fund nor the Adviser exercises control. Each of these may in turn rely on service providers to them, which are also subject to the risk of cyber-attacks. Cybersecurity failures or breaches at the Adviser or the Fund’s service providers or intermediaries have the ability to cause disruptions and impact business operations, potentially resulting in
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  financial losses, interference with the Fund’s ability to calculate its net asset value, impediments to trading, the inability of Fund stockholders to effect share purchases or sales or receive distributions, loss of or unauthorized access to private stockholder information and violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, or additional compliance costs. Such costs and losses may not be covered under any insurance. In addition, maintaining vigilance against cyber-attacks may involve substantial costs over time, and system enhancements may themselves be subject to cyber-attacks.
F.
Statement of Cash Flows
  Information on financial transactions which have been settled through the receipt or disbursement of cash or restricted cash is presented in the Statement of Cash Flows. Cash as presented in the Fund's Statement of Assets and Liabilities includes cash on hand at the Fund's custodian bank and does not include any short-term investments. As of and for the year ended March 31, 2024, the Fund had restricted cash in the form of futures collateral on the Statement of Assets and Liabilities.
G.
Futures Contracts
  The Fund may enter into futures transactions in order to attempt to hedge against changes in interest rates, securities prices and currency exchange rates or to seek to increase total return. Futures contracts are types of derivatives.
  All futures contracts entered into by the Fund are traded on a futures exchange.
Upon
entering into a futures contract, the Fund is required to deposit with a broker an amount of cash or securities equal to the minimum "initial margin" requirements of the associated futures exchange. The amount of cash deposited with the broker as collateral at March 31, 2024  is recorded as "Futures collateral" on the Statement of Assets and Liabilities.
  Subsequent payments for futures contracts ("variation margin")
are
paid or received by the Fund, depending on the daily fluctuation in the value of the contracts, and are recorded by the Fund as unrealized appreciation or depreciation. Cash received from or paid to the broker related to previous margin movement is held in a segregated account at the broker and is recorded as either "Due from broker for futures" or "Due to broker for futures" on the Statement of Assets and Liabilities. When the contract is closed, the Fund realizes a gain or loss equal to the difference between the opening and closing value of the contract as well as any fluctuation in foreign currency exchange rates where applicable. Futures contracts are subject to market risk, interest rate risk and currency
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  exchange rate risk. Changes in value of the contracts may not directly correlate to the changes in value of the underlying securities. With futures, there is reduced counterparty credit risk to the Fund since futures are exchange-traded and the exchange's clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
  The average notional value of  futures contracts long position during the year ended March 31, 2024 was $3,213,493. Open futures contracts outstanding at March 31, 2024 are listed in the Schedule of Investments.
2. Management Agreement
The Adviser manages the Fund’s portfolio. Management fees payable under the Fund’s Investment Management Agreement with the Adviser are calculated daily and paid monthly at the annual rate of 0.60% of the Fund’s average daily managed assets. “Managed assets” means (a) the total assets of the Fund, 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 year ended March 31, 2024, the management fee was 0.60% of the Fund’s average daily managed assets, which was equivalent to 0.97% of the Fund’s average daily net assets.
In addition, under the management and administration agreements, certain other services and costs, including accounting, regulatory reporting and insurance premiums, are paid by the Fund as administrative reimbursements. Reflected on the Statement of Assets and Liabilities is $26,556 in management fees payable to the Adviser at March 31, 2024.
3. Compensation of Officers and Directors
The Fund pays an annual fee to its Directors. The Adviser reimburses the Fund for fees paid to the Interested Directors. Except for the chief compliance officer, the Fund does not pay any salary or other compensation to its officers. The Fund pays a portion of the chief compliance officer's compensation for his services as the Fund's chief compliance officer. Amundi US pays the remaining portion of the chief compliance officer's compensation. For the year ended March 31, 2024, the Fund paid $17,783 in Officers' and Directors’ compensation, which is reflected on the Statement
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of Operations as Officers' and Directors’ fees. At March 31, 2024, the Fund had a payable for Officers and Directors fees on its Statement of Assets and Liabilities of $1,507.
4. Transfer Agent
Equiniti Trust Company, LLC ("EQ"), formerly known as American Stock Transfer & Trust Company, serves as the transfer agent with respect to the Fund’s common shares. The Fund pays EQ an annual fee as is agreed to from time to time by the Fund and EQ for providing such services.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses incurred by the transfer agent related to stockholder communications activities such as proxy and statement mailings, and outgoing phone calls.
5. Additional Disclosures about Derivative Instruments and Hedging Activities
The Fund’s use of derivatives may enhance or mitigate the Fund’s exposure to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to make further principal or interest payments on an obligation or commitment that it has to the Fund.
Foreign exchange rate risk relates to fluctuations in the value of an asset or liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange rate risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity index will fluctuate based on increases or decreases in the commodities market and factors specific to a particular industry or commodity.
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The fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) by risk exposure at March 31, 2024, was as follows:
Statement of Assets
and Liabilities
Interest
Rate Risk
Credit
Risk
Foreign
Exchange
Rate Risk
Equity
Risk
Commodity
Risk
Assets
         
Net unrealized appreciation on futures contracts* $191,596 $
$
$
$
Total Value
$191,596
$—
$—
$—
$—
   
* Includes cumulative unrealized appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only net variation margin is reported within the assets and/or liabilities on the Statement of Assets and Liabilities.
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and Statement of Cash Flows by risk exposure at March 31, 2024, was as follows:
Statement of Operations
Interest
Rate Risk
Credit
Risk
Foreign
Exchange
Rate Risk
Equity
Risk
Commodity
Risk
Net Realized Gain (Loss) on
         
Futures contracts $
(1,221,950)
$
$
$
$
Total Value
$(1,221,950)
$—
$—
$—
$—
Change in Net Unrealized Appreciation (Depreciation) on
         
Futures contracts $
191,596
$
$
$
$
Total Value
$
191,596
$—
$—
$—
$—
6. Fund Shares
There are 1,000,000,000 shares of common stock of the Fund (“common shares”), $0.001 par value per share authorized.
Transactions in common shares for the year ended March 31, 2024 and March 31, 2023 were as follows:
 
3/31/24
3/31/23
Shares outstanding at beginning of year 23,914,439 23,914,439
Shares outstanding at end of year
23,914,439
23,914,439
The Fund may classify or reclassify any unissued shares into one or more series of preferred shares.
As of March 31, 2024, the Fund has outstanding 500 Variable Rate MuniFund Term Preferred Shares Series 2021 (“series 2021 VMTP Shares” or “VMTP Shares”). The Fund issued 1,600 VMTP Shares on February 16, 2018
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and 200 VMTP Shares on February 16, 2021. The Fund redeemed 200 VMTP Shares on September 29, 2022, 200 VMTP Shares on November 14, 2022 and 900 VMTP Shares on February 29, 2024.
7. Variable Rate MuniFund Term Preferred Shares
The Fund has 500 shares issued and outstanding of Series 2021 VMTP Shares, with a liquidation preference of $100,000 per share. VMTP Shares are issued via private placement and are not publicly available.
The Fund is obligated to redeem its VMTP Shares by the date as specified in its offering document (“Term Redemption Date”), unless earlier redeemed by the Fund. VMTP Shares are subject to optional and mandatory redemption in certain circumstances. The VMTP Shares may be redeemed at the option of the Fund, subject to payment of premium for approximately one year following the date of issuance (“Optional Redemption Date”), and at the redemption price per share thereafter. The redemption price per share is equal to the sum of the liquidation preference per share plus any accumulated but unpaid dividends. The Fund may be obligated to redeem a certain amount of the VMTP Shares if it fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The Term Redemption Date for the Fund’s Series 2021 VMTP Shares was extended from August 2, 2024 to August 2, 2027 on March 1, 2024. Six months prior to Term Redemption Date, the Fund is required to segregate liquid assets with the Fund’s custodian in an amount equal to at least 100% of the term redemption amount.
VMTP Shares are subject to restrictions on transfer, generally do not trade, and market quotations are generally not available. VMTP Shares are short-term or short/intermediate-term instruments that pay a variable dividend rate tied to a short-term index, plus an additional fixed “spread” amount established at the time of issuance. For financial reporting purposes, the liquidation preference of VMTP Shares is a liability and is recognized as a component of “Variable Rate MuniFund Term Preferred Shares” on the Statement of Assets and Liabilities since the shares have a stated mandatory redemption date.
Dividends on the VMTP Shares (which are treated as interest payments for financial reporting purposes and are recorded as interest expense on the Statement of Operations) are declared daily, paid monthly and recorded as incurred. For the year ended March 31, 2024, interest expense on VMTP Shares amounted to $7,469,215. The dividend rate for the VMTP Shares is determined weekly. Unpaid dividends on VMTP Shares are recognized as “Interest Expense Payable” on the Statement of Assets and Liabilities. For the year ended March 31, 2024, there was no interest expense payable on VMTP Shares. From April 30, 2023 through March 31, 2024, the Series 2021
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VMTP Shares paid an average dividend rate of 5.74% and the average liquidation value outstanding of VMTP Shares for the Fund during the year ended March 31, 2024, was $132,131,148.
The Fund did not incur any offering costs as a result of the offerings on February 16, 2018 and February 16, 2021.
Transactions in the Series 2021 VMTP Shares during the Fund’s current and
prior reporting periods were as follows:
 
Year Ended 3/31/24
Year Ended 3/31/23
 
Shares
Amount
Shares
Amount
VMTP Shares issued $
$
VMTP Shares redeemed (900) (90,000,000) (400) (40,000,000)
Net decrease (900) $(90,000,000) (400) $(40,000,000)
8. Subsequent Events
A monthly distribution was declared on April 4, 2024 of $0.0325 per common share payable April 30, 2024, to common stockholders of record on April 19, 2024.
Subsequent to March 31, 2024, dividends declared on VMTP Shares totaled $242,071 through April 22, 2024.
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Report of Independent Registered Public Accounting Firm
To the Board of Directors and the Stockholders of Pioneer Municipal High Income Advantage Fund, Inc.:

Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Pioneer Municipal High Income Advantage Fund, Inc. (the “Fund”), including the schedule of investments, as of March 31, 2024, the related statements of operations and changes in net assets and the financial highlights and related notes for the year then ended. The statements of changes in net assets for the year ended March 31, 2023 and the financial highlights for the years ended March 31, 2023, 2022, 2021, and 2020 were audited by other auditors. Those auditors expressed an unqualified opinion on those financial statements and financial statement highlights in their report dated May 25, 2023. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of March 31, 2024 and the results of its operations, the changes in its net assets, and the financial highlights for the year ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
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Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2024, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 29, 2024
We have served as the auditor of one or more of the Pioneer investment companies since 2024.
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Additional Information
(unaudited)
On March 25, 2024, Ernst & Young LLP (the “Prior Auditor”) resigned as the independent registered public accounting firm of Pioneer Municipal High Income Advantage Fund, Inc. (the “Fund”) due to the independence considerations resulting from a change of the independent registered public accounting firm of a related party. The Prior Auditor’s reports on the financial statements of the Fund for the past two fiscal years, the years ended March 31, 2023 and March 31, 2022, did not contain an adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles.
During the last two fiscal year-ends and the subsequent interim period through March 25, 2024, there were no (1) disagreements with the Prior Auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the Prior Auditor's satisfaction, would have caused it to make reference to that matter in connection with its reports on the Fund's financial statements for such periods; or (2) "reportable events" related to the Fund,  as that term is defined in Item 304 (a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934.
On March 25, 2024, the Audit Committee of the Board approved, and on March 25, 2024, the Board approved, Deloitte & Touche LLP as the independent registered accounting firm of the Fund for fiscal periods ending after March 25, 2024.
Qualified interest income is exempt from nonresident alien (NRA) tax withholding. The percentage of the Fund’s ordinary income distributions derived from qualified interest income was 100.00%.
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Fund may purchase, from time to time, its shares in the open market.
Anti-takeover provisions.
The Fund’s Charter and Bylaws include provisions that are designed to limit the ability of other entities or persons to acquire control of the Fund for short-term objectives, including by converting the Fund to open-end status or changing the composition of the Board, that may be detrimental to the Fund's ability to achieve its primary investment objective of seeking to provide its common stockholders with a high level of current income exempt from regular federal income tax. These provisions include staggered terms of service for the Directors, advance notice requirements for stockholder proposals, and super-majority voting requirements for certain transactions with affiliates, open-ending the Fund or a merger, liquidation, asset sale or similar transaction. The Fund’s
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Bylaws also contain a provision providing that the Board of Directors has adopted a resolution to opt in the Fund to the provisions of the Maryland Control Share Acquisition Act (“MCSAA”). Such provisions may limit the ability of stockholders to sell their shares at a premium over prevailing market prices by discouraging a third party from seeking to obtain control of the Fund. There can be no assurance, however, that such provisions will be sufficient to deter activist investors that seek to cause the Fund to take actions that may not be aligned with the interests of long-term stockholders. Furthermore, the law is uncertain on the use of control share provisions. Certain courts have found that control share provisions are unenforceable under the 1940 Act. It is possible that a court could decide that the Fund’s decision to opt in to the MCSAA is not enforceable under the 1940 Act.
Exclusive forum provisions. The Fund’s Bylaws designate the Circuit Court for Baltimore City, Maryland as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by the Fund’s stockholders and provide that claims relating to causes of action under the United States federal securities laws may only be brought in the United States District Court for the District of Maryland, Northern Division, which could limit stockholders’ ability to obtain a favorable judicial forum for disputes with the Fund or its directors, officers or the Fund’s agents, if any, and could discourage lawsuits against the Fund and its directors, officers and agents, if any.
The Fund’s Bylaws provide that, unless the Fund consents in writing to the selection of an alternative forum, the Circuit Court for Baltimore City, Maryland, or, if that court does not have jurisdiction, the United States District Court for the District of Maryland, Northern Division, will be the sole and exclusive forum for (a) any Internal Corporate Claim, as such term is defined in the MGCL, (b) any derivative action or proceeding brought on the Fund’s behalf (other than actions arising under federal securities laws), (c) any action asserting a claim of breach of any duty owed by any of the Fund’s directors, officers or other agents to the Fund or to the Fund’s stockholders, (d) any action asserting a claim against the Fund or any of the Fund’s directors, officers or other agents arising pursuant to any provision of the MGCL or the Fund’s Charter or Bylaws or (e) any other action asserting a claim against the Fund or any of the Fund’s directors, officers or other agents that is governed by the internal affairs doctrine. Furthermore, the Fund’s Bylaws provide that, unless the Fund consents in writing to the selection of an alternative forum, the United States District Court for the District of Maryland, Northern Division shall, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any claim arising under the United States federal securities laws.
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These exclusive forum provisions may limit the ability of the Fund’s stockholders to bring a claim in a judicial forum that such stockholders find favorable for disputes with the Fund or the Fund’s directors, officers, or agents, if any, which may discourage such lawsuits against the Fund and the Fund’s directors, officers, and agents, if any. Alternatively, if a court were to find the choice of forum provisions contained in the Fund’s Bylaws to be inapplicable or unenforceable in an action, the Fund may incur additional costs associated with resolving such action in other jurisdictions, which could materially adversely affect the Fund’s business, financial condition, and operating results.
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Investment Objectives, Principal Investment Strategies and Principal Risks (unaudited)
CHANGES OCCURRING DURING MOST RECENT FISCAL YEAR
During the Fund’s most recent fiscal year, there were no material changes to the Fund’s investment objectives or policies that have not been approved by stockholders or in the principal risk factors associated with investment in the Fund.
INVESTMENT OBJECTIVES
The Fund’s primary investment objective is to provide its common stockholders with a high level of current income exempt from regular federal income tax. Distributions of interest income from the Fund’s portfolio of municipal securities generally will be exempt from regular federal income tax. As a secondary investment objective, the Fund also may seek capital appreciation to the extent consistent with its primary objective. Distributions from sources other than interest income from the Fund’s portfolio of municipal securities, including capital gain distributions, are not exempt from regular federal income tax.
The Fund’s investment objectives and its policy with respect to investment in municipal securities are fundamental policies and may not be changed without the approval of a majority of the outstanding voting securities (as defined in the 1940 Act) of the Fund. There can be no assurance that the Fund will achieve its investment objectives.
PRINCIPAL INVESTMENT STRATEGIES
Under normal market conditions, the Fund will invest substantially all (at least 80%) of its assets (net assets plus borrowings for investment purposes) in debt securities and other obligations issued by or on behalf of states, territories and possessions of the United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the interest on which is exempt from regular federal income tax (“municipal securities”). Municipal securities are often issued to obtain funds for various public purposes, including the construction of a wide range of public facilities such as bridges, highways, housing, hospitals, mass transportation, schools, streets and water and sewer works. Municipal securities include private activity bonds, pre-refunded municipal securities and auction rate securities. The municipal securities in which the Fund invests may have fixed or variable principal payments and all types of interest rate payments and reset terms, including fixed rate, adjustable rate, zero coupon, contingent, deferred, payment in kind and auction rate features.
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Although distributions of interest income from the Fund’s municipal securities generally are exempt from regular federal income tax, distributions from other sources, including capital gain distributions, are not. The Fund is not limited in the portion of its assets that may be invested in municipal securities the interest income on which is a preference item for purposes of the alternative minimum tax for individuals or entities that are subject to such tax. All interest on municipal securities may result in or increase a corporate stockholder’s liability for federal alternative minimum tax. stockholders should consult a tax adviser about whether an alternative minimum tax applies to them and about state and local taxes on their distributions from the Fund.
The Fund may invest in municipal securities with a broad range of maturities and credit ratings, including both investment grade and below investment grade municipal securities. In managing the Fund’s portfolio, the Adviser adjusts the portfolio’s duration and overall credit quality in light of changing market and economic conditions. In making decisions with respect to specific municipal securities for the Fund’s portfolio, the Adviser employs a disciplined approach, driven primarily by proprietary research regarding prevailing interest rates, economic fundamentals at both the national and state levels and in-depth credit research conducted by the Adviser’s investment staff.
The Fund may invest in securities of issuers that are in default or that are in bankruptcy.
Security selection
The Adviser anticipates that the Fund’s investments in revenue obligations will emphasize municipal securities backed by revenue from essential services, such as hospitals and healthcare, power generation, transportation, education and housing. The Adviser considers both broad economic and issuer specific factors in selecting a portfolio designed to achieve the Fund’s investment objectives. In assessing the appropriate maturity, rating and sector weightings of the Fund’s portfolio, the Adviser considers a variety of factors that are expected to influence economic activity and interest rates. These factors include fundamental economic indicators such as the rates of economic growth and inflation, Federal Reserve monetary policy and the relative value of the U.S. dollar compared to other currencies. Once the Adviser determines the preferable portfolio characteristics, the Adviser selects individual securities based upon the terms of the securities (such as yields compared to U.S. Treasuries or comparable issues), liquidity and rating, sector and issuer diversification.
The Adviser attempts to identify investment grade and below investment grade municipal securities that are trading at attractive valuations relative
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to the Adviser’s evaluation of the issuer’s credit worthiness and, with respect to private activity bonds, the profit potential of the corporation from which the revenue supporting the bonds is derived. The Adviser’s overall investment approach is both top-down and bottom-up. The Adviser first seeks to identify the sectors or regions of the municipal bond market that present the best relative value opportunities, and then bases the Fund’s overall sector and regional weightings on that determination. Once the Adviser establishes the overall regional and sector weightings, the Adviser focuses on selecting those securities within each sector or region that meet its fundamental criteria. In determining sector weightings, the Fund’s portfolio management team also maintains frequent contact with the Adviser’s investment professionals who follow U.S. equities and those who focus on corporate fixed income investments. In many cases, the Adviser will augment its municipal bond credit research and security selection processes with equity research analysis. The Adviser has a fundamental bias towards long-term security selection, rather than engaging in frequent “market timing” or short-term trading. There can be no assurance that this process will be successful.
Duration management
The Adviser actively manages the duration of the Fund’s portfolio of municipal securities based primarily on the Adviser’s outlook for interest rates. The Adviser considers economic trends, Federal Reserve Board actions and capital markets activity, among other factors, in developing its outlook for interest rates. The Adviser believes that maintaining duration at an appropriate level offers the potential for above-average returns while limiting the risks of interest rate volatility. Duration seeks to measure the price sensitivity of a fixed income security to changes in interest rates. Unlike maturity, duration takes into account interest payments that occur throughout the course of holding the bond. The longer a portfolio’s duration, the more sensitive it will be to changes in interest rates. For example, if the Fund has a two year duration, then all other things being equal, the Fund will decrease in value by two percent if interest rates rise one percent. The Adviser modifies the average duration of the Fund’s portfolio in response to market conditions. The Adviser may employ certain strategies to reduce the Fund’s interest rate sensitivity, including investments in interest rate swap or cap transactions. There is no assurance that the Adviser will do so or that such strategies will be successful.
Credit management
The Fund may invest in municipal securities with a broad range of credit ratings, including both investment grade and below investment grade municipal securities. At least 40% of the Fund’s portfolio of municipal
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securities will be rated investment grade at the time of acquisition (that is, rated at least Baa by Moody’s Investors Service, Inc. (“Moody’s”) or BBB by Standard & Poor’s Ratings Group (“S&P”) or, if unrated, determined by the Adviser to be of comparable credit quality). No more than 60% of the Fund’s portfolio of municipal securities will be rated below investment grade at the time of acquisition (that is, Ba or lower by Moody’s or BB or lower by S&P or, if unrated, determined by the Adviser to be of comparable credit quality). No more than 10% of the Fund’s portfolio of municipal securities will be rated at the time of acquisition B or lower by Moody’s and S&P or, if unrated, determined by the Fund’s investment adviser to be of comparable credit quality. Municipal securities of below investment grade quality are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal and are commonly referred to as “junk bonds” or “high yield securities.” They involve greater risk of loss, are subject to greater price volatility and are less liquid, especially during periods of economic uncertainty or change, than higher rated municipal securities. Municipal securities rated Ba or BB may face significant ongoing uncertainties or exposure to adverse business, financial or economic conditions that could lead to the issuer being unable to meet its financial commitments. The protection of interest and principal payments may be moderate and not well-safeguarded during both good and bad times. Municipal securities rated B generally lack the characteristics of a desirable investment. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be low, and such municipal securities are more vulnerable to nonpayment than obligations rated BB. Adverse business, financial or economic conditions will likely impair the issuer’s capacity or willingness to meet its financial commitment on municipal securities. Municipal securities rated Caa, Ca or C by Moody’s or CCC, CC or C by S&P are generally speculative to a high degree. These municipal securities may be in default or they may present elements of danger with respect to principal or interest. Generally, the issuers are dependent upon favorable business, financial and economic conditions to meet their financial commitments on such municipal securities. The Fund may invest in high yield municipal securities of any rating, including securities that are in default at the time of purchase.
The Adviser determines the allocation of the Fund’s assets among securities with different credit ratings depending upon the Adviser’s evaluation of factors such as the spread between the yields on municipal securities of different ratings, changes in default rates, general economic conditions and the outlook for fiscal issues facing municipal issuers. Generally, as the spread between the yield on investment grade and non-investment grade securities widens, the Adviser will allocate a greater
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portion of the Fund’s assets to non-investment grade municipal securities. If the spread based on relative credit quality narrows, the Adviser may determine that high yield municipal securities no longer offer a sufficient risk premium and increase the average credit quality of the Fund’s portfolio. As the economy strengthens and the default risk lessens, the Adviser may increase the Fund’s investment in lower quality, non-investment grade securities. The Adviser also seeks to mitigate the risks of investing in below investment grade securities through a disciplined approach, driven primarily by fundamental research to assess an issuer’s credit quality and the relative value of its securities. Moreover, with respect to below investment grade securities that are private activity bonds, the Adviser intends to emphasize securities that are backed by revenue from publicly traded companies. The Adviser believes that this focus offers the potential for an informational advantage due to the substantial reporting requirements of public companies. With respect to investments in below investment grade private activity bonds, the Adviser also seeks to leverage its corporate credit research capabilities by selecting securities for the Fund payable by revenue derived from issuers followed by its staff focusing on below investment grade corporate issuers. The Adviser believes that a prudent blend of investment grade and non-investment grade municipal securities offers investors the opportunity for high current yield without undue credit risk. High yield municipal securities also have shown low correlation to other asset classes, including corporate bonds, U.S. Treasury securities and equity securities, providing diversification potential to an investment portfolio.
Portfolio Contents
Municipal securities.
Municipal securities are often issued to obtain funds for various public purposes, including refunding outstanding obligations, funding for general operating expenses and lending to other public institutions and facilities. Municipal securities also include certain “private activity bonds” or industrial development bonds, which are issued by or on behalf of public authorities to provide financing aid to acquire sites or construct or equip facilities within a municipality for privately or publicly owned corporations. The two principal classifications of municipal securities are “general obligations” and “revenue obligations.” General obligations are secured by the issuer’s pledge of its full faith and credit for the payment of principal and interest, although the characteristics and enforcement of general obligations may vary according to the law applicable to the particular issuer. Revenue obligations, which include, but are not limited to, private activity bonds, certificates of participation and certain municipal notes, are not backed by the credit and taxing authority of the issuer and are payable solely from the revenues derived from a particular
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facility or class of facilities or, in some cases, from the proceeds of a special excise or other specific revenue source. The obligations of the issuer of a revenue obligation may, in addition, be backed by a letter of credit from a bank, a guarantee from another issuer or insurance. The credit rating assigned to municipal securities may reflect the existence of these guarantees, letters of credit or other credit enhancement features. General obligations and revenue obligations may be issued in a variety of forms, including commercial paper, fixed, variable and floating rate securities, tender option bonds, auction rate bonds, zero coupon bonds, deferred interest bonds and capital appreciation bonds. In addition to general obligations and revenue obligations, there are a variety of hybrid and special types of municipal securities.
One or a small number of institutional investors such as the Fund may purchase an entire issue of municipal securities. Thus, the issue may not be said to be publicly offered. Unlike some securities that are not publicly offered, a secondary market exists for many municipal securities that were not publicly offered initially and such securities may be readily marketable.
Although distributions of interest income from the Fund’s municipal securities are generally exempt from regular federal income tax, distributions from other sources, including capital gain distributions, and any gains on the sale of your common shares are not. You should consult your tax adviser as to whether the alternative minimum tax applies to you and as to whether you will be subject to state and local taxes on your distributions from the Fund.
From time to time, proposals have been introduced before Congress for the purpose of restricting or eliminating the federal income tax exemption for interest on municipal securities. The Fund cannot predict what legislation, if any, may be proposed in the future in Congress regarding the federal income tax status of interest on municipal securities. Such proposals, if enacted, might materially and adversely affect the Fund.
The Fund may invest 25% or more of the value of its total assets in municipal securities of issuers located in the same state or territory or in the same economic sector. The Fund will not invest more than 25% of its total assets in issuers in a single industry. Governmental issuers of municipal securities are not considered part of any industry.
The Fund may invest in municipal securities that are collateralized by the proceeds from class action or other litigation against the tobacco industry. Payment by tobacco industry participants of such proceeds is spread over several years, and the collection and distribution of such proceeds to the issuers of municipal securities is dependent upon the financial health of such tobacco industry participants, which cannot be assured. Additional
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litigation, government regulation or prohibition on the sales of tobacco products, or the seeking of protection under the bankruptcy laws, could adversely affect the tobacco industry, which, in turn, could have an adverse affect on tobacco-related municipal securities. Under normal market conditions, the Fund intends to limit its investment in tobacco settlement bonds to approximately 25% of the Fund’s total assets.
Municipal leases and certificates of participation.
The Fund may invest in municipal leases and certificates of participation in such leases. A municipal lease is an obligation in the form of a lease or installment purchase that is issued by a state or local government to acquire equipment and facilities. Income from such obligations is generally exempt from state and local taxes in the state of issuance. Municipal leases frequently involve special risks not normally associated with general obligations or revenue obligations. Leases and installment purchase or conditional sale contracts (which normally provide for title to the leased asset to pass eventually to the governmental issuer) have evolved as a means for governmental issuers to acquire property and equipment without meeting the constitutional and statutory requirements for the issuance of debt. The debt issuance limitations are deemed to be inapplicable because of the inclusion in many leases or contracts of “non-appropriation” clauses that relieve the governmental issuer of any obligation to make future payments under the lease or contract unless money is appropriated for such purpose by the appropriate legislative body on a yearly or other periodic basis. In addition, such leases or contracts may be subject to the temporary abatement of payments in the event the issuer is prevented from maintaining occupancy of the leased premises or utilizing the leased equipment. Although the obligations may be secured by the leased equipment or facilities, the disposition of the property in the event of non-appropriation or foreclosure might prove difficult, time consuming and costly, and result in a delay in recovering or the failure fully to recover the Fund’s original investment. To the extent that the Fund invests in unrated municipal leases or participates in such leases, the credit quality and risk of cancellation of such unrated leases will be monitored on an ongoing basis.
A certificate of participation represents an undivided interest in an unmanaged pool of municipal leases, installment purchase agreements or other instruments. The certificates are typically issued by a municipal agency, a trust or other entity that has received an assignment of the payments to be made by the state or political subdivision under such leases or installment purchase agreements. Such certificates provide the Fund with the right to a pro rata undivided interest in the underlying municipal securities. In addition, such participations generally provide the Fund with the right to demand payment, on not more than seven days’ notice, of all
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or any part of the Fund’s participation interest in the underlying municipal securities, plus accrued interest.
Certain municipal lease obligations and certificates of participation may be deemed to be illiquid for the purpose of the Fund’s limitation on investments in illiquid securities. Other municipal lease obligations and certificates of participation acquired by the Fund may be determined by the Adviser, pursuant to guidelines adopted by the Board of Directors, to be liquid securities for the purpose of such limitation. In determining the liquidity of municipal lease obligations and certificates of participation, the Adviser will consider a variety of factors, including: (i) the willingness of dealers to bid for the obligation; (ii) the number of dealers willing to purchase or sell the obligation and the number of other potential buyers; (iii) the frequency of trades or quotes for the obligation; and (iv) the nature of the marketplace trades. In addition, the Adviser will consider factors unique to particular lease obligations and certificates of participation affecting the marketability thereof. These include the general creditworthiness of the issuer, the importance to the issuer of the property covered by the lease and the likelihood that the marketability of the obligation will be maintained throughout the time the obligation is held by the Fund.
Municipal notes.
Municipal securities in the form of notes generally are used to provide for short-term capital needs, in anticipation of an issuer’s receipt of other revenues or financing, and typically have maturities of up to three years. Such instruments may include tax anticipation notes, revenue anticipation notes, bond anticipation notes, tax and revenue anticipation notes and construction loan notes. Tax anticipation notes are issued to finance the working capital needs of governments. Generally, they are issued in anticipation of various tax revenues, such as income, sales, property, use and business taxes, and are payable from these specific future taxes. Revenue anticipation notes are issued in expectation of receipt of other kinds of revenue, such as federal revenues available under federal revenue sharing programs. Bond anticipation notes are issued to provide interim financing until long-term bond financing can be arranged. In most cases, the long-term bonds then provide the funds needed for repayment of the notes. Tax and revenue anticipation notes combine the funding sources of both tax anticipation notes and revenue anticipation notes. Construction loan notes are sold to provide construction financing. Mortgage notes insured by the Federal Housing Authority secure these notes; however, the proceeds from the insurance may be less than the economic equivalent of the payment of principal and interest on the mortgage note if there has been a default. The anticipated revenues from taxes, grants or bond financing generally secure the obligations of an issuer
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of municipal notes. An investment in such instruments, however, presents a risk that the anticipated revenues will not be received or that such revenues will be insufficient to satisfy the issuer’s payment obligations under the notes or that refinancing will be otherwise unavailable.
Tax-exempt commercial paper.
Issues of commercial paper typically represent short-term, unsecured, negotiable promissory notes. These obligations are issued by state and local governments and their agencies to finance the working capital needs of municipalities or to provide interim construction financing and are paid from general revenues of municipalities or are refinanced with long-term debt. In most cases, tax-exempt commercial paper is backed by letters of credit, lending agreements, note repurchase agreements or other credit facility agreements offered by banks or other institutions.
Pre-refunded municipal securities.
The principal of and interest on pre-refunded municipal securities are no longer paid from the original revenue source for the securities. Instead, the source of such payments is typically an escrow fund consisting of U.S. government securities. The assets in the escrow fund are derived from the proceeds of refunding bonds issued by the same issuer as the pre-refunded municipal securities. Issuers of municipal securities use this advance refunding technique to obtain more favorable terms with respect to securities that are not yet subject to call or redemption by the issuer. For example, advance refunding enables an issuer to refinance debt at lower market interest rates, restructure debt to improve cash flow or eliminate restrictive covenants in the indenture or other governing instrument for the pre-refunded municipal securities. However, except for a change in the revenue source from which principal and interest payments are made, the pre-refunded municipal securities remain outstanding on their original terms until they mature or are redeemed by the issuer.
Private activity bonds.
Private activity bonds, formerly referred to as industrial development bonds, are issued by or on behalf of public authorities to obtain funds to provide privately operated housing facilities, airport, mass transit or port facilities, sewage disposal, solid waste disposal or hazardous waste treatment or disposal facilities and certain local facilities for water supply, gas or electricity. Other types of private activity bonds, the proceeds of which are used for the construction, equipment, repair or improvement of privately operated industrial or commercial facilities, may constitute municipal securities, although the current federal tax laws place substantial limitations on the size of such issues. The Fund’s distributions of its interest income from private activity bonds may subject certain investors to the federal alternative minimum tax.
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Tender option bonds.
A tender option bond is a municipal security (generally held pursuant to a custodial arrangement) having a relatively long maturity and bearing interest at a fixed rate substantially higher than prevailing short-term, tax-exempt rates. The bond is typically issued with the agreement of a third party, such as a bank, broker-dealer or other financial institution, which grants the security holders the option, at periodic intervals, to tender their securities to the institution and receive the face value thereof. As consideration for providing the option, the financial institution receives periodic fees equal to the difference between the bond’s fixed coupon rate and the rate, as determined by a remarketing or similar agent at or near the commencement of such period, that would cause the securities, coupled with the tender option, to trade at par on the date of such determination. Thus, after payment of this fee, the security holder effectively holds a demand obligation that bears interest at the prevailing short-term, tax-exempt rate. However, an institution will not be obligated to accept tendered bonds in the event of certain defaults or a significant downgrade in the credit rating assigned to the issuer of the bond. The liquidity of a tender option bond is a function of the credit quality of both the bond issuer and the financial institution providing liquidity. Tender option bonds are deemed to be liquid unless, in the opinion of the Adviser, the credit quality of the bond issuer and the financial institution is deemed, in light of the Fund’s credit quality requirements, to be inadequate and the bond would not otherwise be readily marketable. The Fund intends to invest in tender option bonds the interest on which will, in the opinion of bond counsel, counsel for the issuer of interests therein or counsel selected by the Adviser, be exempt from regular federal income tax.  However, because there can be no assurance that the Internal Revenue Service (the “IRS”) will agree with such counsel’s opinion in any particular case, there is a risk that the Fund will not be considered the owner of such tender option bonds and thus will not be entitled to treat such interest as exempt from such tax. Additionally, the federal income tax treatment of certain other aspects of these investments, including the proper tax treatment of tender option bonds and the associated fees in relation to various regulated investment company tax provisions, is unclear. The Fund intends to manage its portfolio in a manner designed to eliminate or minimize any adverse impact from the tax rules applicable to these investments.
Auction rate securities.
The Fund may invest in auction rate securities. Auction rate securities include auction rate municipal securities and auction rate preferred securities issued by closed-end investment companies that invest primarily in municipal securities (collectively, “auction rate securities”). Provided that the auction mechanism is successful, auction rate securities usually permit the holder to sell the securities in an auction
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at par value at specified intervals. The dividend is reset by a “Dutch” auction in which bids are made by broker-dealers and other institutions for a certain amount of securities at a specified minimum yield. The dividend rate set by the auction is the lowest interest or dividend rate that covers all securities offered for sale. While this process is designed to permit auction rate securities to be traded at a value equal to the liquidation preference, there is some risk that an auction will fail due to insufficient demand for the securities. The Fund will take the time remaining until the next scheduled auction date into account for the purpose of determining the securities’ duration. The Fund’s investments in auction rate securities of closed-end funds are subject to the limitations prescribed by the 1940 Act.
Illiquid securities.
The Fund may invest in bonds or other municipal securities that lack a secondary trading market or are otherwise considered illiquid. Liquidity of a security relates to the ability easily to dispose of the security and the price to be obtained upon disposition of the security, which may be less than would be obtained for a comparable, more liquid security. The Fund may invest up to 20% of its total assets in illiquid investments. Such investments may affect the Fund’s ability to realize its net asset value in the event of a voluntary or involuntary liquidation of its assets.
Structured securities.
The Fund may invest in structured securities. The value of the principal and/or interest on such securities is determined by reference to changes in the value of specific currencies, interest rates, commodities, indices or other financial indicators (“reference”) or the relative change in two or more references. The interest rate or the principal amount payable upon maturity or redemption may be increased or decreased depending upon changes in the reference. The terms of the structured securities may provide, in certain circumstances, that no principal is due at maturity and, therefore, may result in a loss of the Fund’s investment. Changes in the interest rate or principal payable at maturity may be a multiple of the changes in the value of the reference. Consequently, structured securities may entail a greater degree of market risk than other types of fixed income securities.
Insured municipal securities.
The Fund may invest in “insured” municipal securities, which are securities for which scheduled payments of interest and principal are guaranteed by a private (non-governmental) insurance company. The insurance only entitles the Fund to receive at maturity the face or par value of the securities held by the Fund. The insurance does not guarantee the market value of the municipal securities or the value of the shares of the Fund. The Fund may utilize new issue or secondary market insurance. A bond issuer who wishes to increase the credit rating of a security purchases a new issue insurance policy. By paying a premium and
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meeting the insurer’s underwriting standards, the bond issuer is able to obtain a high credit rating (usually, Aaa from Moody’s or AAA from S&P) for the issued security. Such insurance is likely to increase the purchase price and resale value of the security. New issue insurance policies are non-cancelable and continue in force as long as the bonds are outstanding. A secondary market insurance policy is purchased by an investor subsequent to a bond’s original issuance and generally insures a particular bond for the remainder of its term.
Standby commitments.
In order to enhance the liquidity of municipal securities, the Fund may acquire the right to sell a security to another party at a guaranteed price and date. Such a right to resell may be referred to as a “standby commitment” or “liquidity put,” depending on its characteristics. The aggregate price which the Fund pays for securities with standby commitments may be higher than the price which otherwise would be paid for the securities. Standby commitments may not be available or may not be available on satisfactory terms. Standby commitments may involve letters of credit issued by domestic or foreign banks supporting the other party’s ability to purchase the security. The right to sell may be exercisable on demand or at specified intervals and may form part of a security or be acquired separately by the Fund.
Because the period prior to the put date is generally less than 365 days, the Fund generally values the municipal securities subject to standby commitments at amortized cost. The Board of Directors has adopted procedures pursuant to which the Adviser may determine that amortized cost represents the fair value of these securities. The exercise price of the standby commitments is expected to approximate such amortized cost. Consequently, no separate value is assigned to standby commitments for purposes of determining the Fund’s net asset value. The cost of a standby commitment is carried as unrealized depreciation from the time of purchase until it is exercised or expires. Since the value of a standby commitment is dependent on the ability of the standby commitment writer to meet its obligation to repurchase, the Fund’s policy is to enter into standby commitment transactions only with banks, brokers or dealers that present a minimal risk of default. However, this policy reduces, but does not eliminate, the risk of default by the standby commitment writer.
Use of leverage by the Fund.
The Fund may use financial leverage on an ongoing basis for investment purposes. The Fund currently uses leverage through the issuance of Variable Rate MuniFund Term Preferred Shares (“VMTP Shares”). VMTP Shares are issued via private placement and are not publicly available. Leverage creates special risks not associated with unleveraged funds having a similar investment objectives and policies.  These include the possibility of higher volatility of both the net asset value
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of the Fund and the value of assets serving as asset coverage for the borrowing. The fees and expenses attributed to leverage, including any increase in the management fees, will be borne by holders of common shares. The Adviser intends only to leverage the Fund when it believes that the potential total return on additional investments purchased with the proceeds of leverage is likely to exceed the costs incurred in connection with the leverage. The Fund may not be leveraged at all times, and the amount of leverage, if any, may vary depending on a variety of factors, including the Adviser’s outlook for interest rates and credit markets and the costs that the Fund would incur as a result of such leverage. The Fund’s leveraging strategy may not be successful.
Except for the Fund’s investment objectives and the Fund’s policy to invest at least 80% of its assets in municipal securities, the Fund’s investment strategies and policies may be changed from time to time without stockholder approval, unless specifically stated otherwise.
Other investments.
Normally, the Fund will invest substantially all of its assets to meet its investment objectives. The Fund may invest the remainder of its assets in securities with remaining maturities of less than one year or cash equivalents, or it may hold cash. For temporary defensive purposes, the Fund may depart from its principal investment strategies and invest part or all of its assets in securities with remaining maturities of less than one year or cash equivalents, or it may hold cash. During such periods, the Fund may not be able to achieve its investment objectives.
Zero coupon securities.
The Fund may invest in zero coupon securities. Zero coupon securities are debt instruments that do not pay interest during the life of the security but are issued at a discount from the amount the investor will receive when the issuer repays the amount borrowed (the face value). The discount approximates the total amount of interest that would be paid at an assumed interest rate.
Derivatives.
The Fund may, but is not required to, use futures and options on securities, indices and currencies, forward foreign currency exchange contracts, swaps, credit-linked notes and other derivatives. The Fund also may enter into credit default swaps, which can be used to acquire or to transfer the credit risk of a security or index of securities without buying or selling the security or securities comprising the relevant index. A derivative is a security or instrument whose value is determined by reference to the value or the change in value of one or more securities, currencies, indices or other financial instruments. The Fund may use derivatives for a variety of purposes, including:
In an attempt to hedge against adverse changes in the market prices of securities, interest rates or currency exchange rates
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As a substitute for purchasing or selling securities
To attempt to increase the Fund’s return as a non-hedging strategy that may be considered speculative
To manage portfolio characteristics (for example, the duration or credit quality of the Fund’s portfolio)
As a cash flow management technique
The Fund may choose not to make use of derivatives for a variety of reasons, and any use may be limited by applicable law and regulations.
Other investment companies.
The Fund may invest in the securities of other investment companies to the extent that such investments are consistent with the Fund’s investment objectives and principal investment strategies and permissible under the 1940 Act. Subject to the limitations on investment in other investment companies, the Fund may invest in “ETFs.”
Repurchase agreements.
In a repurchase agreement, the Fund purchases securities from a broker/dealer or a bank, called the counterparty, upon the agreement of the counterparty to repurchase the securities from the Fund at a later date, and at a specified price, which is typically higher than the purchase price paid by the Fund. The securities purchased serve as the Fund’s collateral for the obligation of the counterparty to repurchase the securities. If the counterparty does not repurchase the securities, the Fund is entitled to sell the securities, but the Fund may not be able to sell them for the price at which they were purchased, thus causing a loss. Additionally, if the counterparty becomes insolvent, there is some risk that the Fund will not have a right to the securities, or the immediate right to sell the securities.
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PRINCIPAL RISKS
General.
The Fund is a closed-end management investment company designed primarily as a long-term investment and not as a trading tool. The Fund is not a complete investment program and should be considered only as an addition to an investor’s existing portfolio of investments. Because the Fund may invest substantially in high yield debt securities, an investment in the Fund’s shares is speculative in that it involves a high degree of risk. Due to uncertainty inherent in all investments, there can be no assurance that the Fund will achieve its investment objective. Instruments in which the Fund invests may only have limited liquidity, or may be illiquid.
Market price of Common Shares.
Common shares of closed-end funds frequently trade at a price lower than their net asset value. This is commonly referred to as “trading at a discount.” This characteristic of shares of closed-end funds is a risk separate and distinct from the risk that the Fund’s net asset value may decrease. Both long and short-term investors, including investors who sell their shares within a relatively short period after purchase, will be exposed to this risk. The Fund is designed primarily for long-term investors and should not be considered a vehicle for trading purposes.
Whether investors will realize a gain or loss upon the sale of the Fund’s Common Shares will depend upon whether the market value of the shares at the time of sale is above or below the price the investor paid, taking into account transaction costs, for the shares and is not directly dependent upon the Fund’s net asset value. Because
the
market value of the Fund’s shares will be determined by factors such as the relative demand for and supply of the shares in the market, general market conditions and other factors beyond the control of the Fund, the Fund cannot predict whether its Common Shares will trade at, below or above net asset value, or below or above the offering price for the shares.
Market risk.
The market prices of securities or other assets held by the
Fund
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, political instability, recessions, inflation, changes in interest or currency rates, lack of liquidity in the bond markets, the spread of infectious illness or other public health issues, weather or climate events, armed conflict, market disruptions caused by tariffs, trade disputes, sanctions or other government actions, or other factors or adverse investor sentiment. If the market prices of the Fund’s securities and assets fall, the value of your investment will go down. A change in financial
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condition or other event affecting a single issuer or market may adversely impact securities markets as a whole.
Changes in market conditions may not have the same impact on all types of securities. The value of securities may also fall due to specific conditions that affect a particular sector of the securities market or a particular issuer.  In the past decade, financial markets throughout the world have experienced increased volatility, depressed valuations, decreased liquidity and heightened uncertainty. Governmental and non-governmental issuers have defaulted on, or been forced to restructure, their debts. These conditions may continue, recur, worsen or spread. Events that have contributed to these market conditions include, but are not limited to, major cybersecurity events; geopolitical events (including wars, terror attacks and economic sanctions); measures to address budget deficits; downgrading of sovereign debt; changes in oil and commodity prices; dramatic changes in currency exchange rates; global pandemics; and public sentiment.  The long-term impact of the COVID-19 pandemic and its subsequent variants on economies, markets, industries and individual issuers, are not known. Some sectors of the economy and individual issuers have experienced or may experience particularly large losses. Periods of extreme volatility in the financial markets; reduced liquidity of many instruments; increased government debt, inflation and disruptions to supply chains, consumer demand and employee availability, may continue for some time.
Raising the ceiling on U.S. government debt has become increasingly politicized. Any failure to increase the total amount that the U.S. government is authorized to borrow could lead to a default on U.S. government obligations, with unpredictable consequences for economies and markets in the U.S. and elsewhere. Inflation and interest rates have increased and may rise further. These circumstances could adversely affect the value and liquidity of the Fund's investments, and negatively impact the Fund's performance.  In addition, inflation, rising interest rates, global supply chain disruptions and other market events could adversely affect the companies or issuers in which the Fund invests. Following Russia’s invasion of Ukraine, Russian securities lost all, or nearly all, their market value.  Other securities or markets could be similarly affected by past or future political, geopolitical or other events or conditions. 
Governments and central banks, including the U.S. Federal Reserve, have taken extraordinary and unprecedented actions to support local and global economies and the financial markets. These actions have resulted in significant expansion of public debt, including in the U.S. The consequences of high public debt, including its future impact on the economy and securities markets, may not be known for some time.  U.S. Federal Reserve
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or other U.S. or non-U.S. governmental or central bank actions, including increases or decreases in interest rates, or contrary actions by different governments, could negatively affect financial markets generally, increase market volatility and reduce the value and liquidity of securities in which the Fund invests. Policy and legislative changes in the U.S. and in other countries are affecting many aspects of financial regulation, and these and other events affecting global markets, such as the United Kingdom’s exit from the European Union (or Brexit), potential trade imbalances with China or other countries, or sanctions or other government actions against Russia, other nations or individuals or companies (or their countermeasures), may contribute to decreased liquidity and increased volatility in the financial markets. The impact of these changes on the markets, and the implications for market participants, may not be fully known for some time.
The U.S. and other countries are periodically involved in disputes over trade and other matters, which may result in tariffs, investment restrictions and adverse impacts on affected companies and securities.  For example, the U.S. has imposed tariffs and other trade barriers on Chinese exports, has restricted sales of certain categories of goods to China, and has established barriers to investments in China.  Trade disputes may adversely affect the economies of the U.S. and its trading partners, as well as companies directly or indirectly affected and financial markets generally.  The U.S. government has prohibited U.S. persons, such as the Fund, from investing in Chinese companies designated as related to the Chinese military.  These and possible future restrictions could limit the Fund’s opportunities for investment and require the sale of securities at a loss or make them illiquid.  The Chinese government is involved in a longstanding dispute with Taiwan that has included threats of invasion. If the political climate between the U.S. and China does not improve or continues to deteriorate, if China were to attempt unification of Taiwan by force, or if other geopolitical conflicts develop or get worse, economies, markets and individual securities may be severely affected both regionally and globally, and the value of the Fund’s assets may go down.
Economies and financial markets throughout the world are increasingly interconnected. Economic, financial or political events, trading and tariff arrangements, armed conflict such as between Russia and Ukraine or in the Middle East, terrorism, natural disasters, infectious illness or public health issues, cybersecurity events, supply chain disruptions, sanctions against Russia, other nations or individuals or companies and possible countermeasures, and other circumstances in one country or region could have profound impacts on other countries or regions and on global economies or markets. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries
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or regions directly affected, the value and liquidity of the Fund’s investments may be negatively affected. The Fund may experience a substantial or complete loss on any security or derivative position.
High yield or “junk” bond risk.
Debt securities that are below investment grade, called “junk bonds,” are speculative, have a higher risk of default or are already in default, tend to be less liquid and are more difficult to value than higher grade securities. Junk bonds tend to be volatile and more susceptible to adverse events and negative sentiments. These risks are more pronounced for securities that are already in default.
Interest rate risk.
The market prices of the Fund's fixed income securities may fluctuate significantly when interest rates change. The value of your investment will generally go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration securities. For example, if interest rates increase by 1%, the value of a Fund’s portfolio with a portfolio duration of ten years would be expected to decrease by 10%, all other things being equal. In recent years interest rates and credit spreads in the U.S. have been at historic lows. The U.S. Federal Reserve has raised certain interest rates, and interest rates may continue to go up. A general rise in interest rates could adversely affect the price and liquidity of fixed income securities. The maturity of a security may be significantly longer than its effective duration. A security’s maturity and other features may be more relevant than its effective duration in determining the security’s sensitivity to other factors affecting the issuer or markets generally, such as changes in credit quality or in the yield premium that the market may establish for certain types of securities (sometimes called “credit spread”). In general, the longer its maturity the more a security may be susceptible to these factors. When the credit spread for a fixed income security goes up, or “widens,” the value of the security will generally go down.
Rising interest rates can lead to increased default rates, as issuers of floating rate securities find themselves faced with higher payments. Unlike fixed rate securities, floating rate securities generally will not increase in value if interest rates decline. Changes in interest rates also will affect the amount of interest income the Fund earns on its floating rate investments.
Credit risk.
If an issuer or guarantor of a security held by the Fund or a counterparty to a financial contract with the
Fund
defaults on its obligation to pay principal and/or interest, has its credit rating downgraded or is perceived to be less creditworthy, or the credit quality or value of any underlying assets declines, the value of your investment will typically decline. Changes in actual or perceived creditworthiness may occur quickly.
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The Fund could be delayed or hindered in its enforcement of rights against an issuer, guarantor or counterparty.
Prepayment or call risk.
Many issuers have a right to prepay their securities. If interest rates fall, an issuer may exercise this right. If this happens, the Fund will not benefit from the rise in market price that normally accompanies a decline in interest rates, and will be forced to reinvest prepayment proceeds at a time when yields on securities available in the market are lower than the yield on the prepaid security. The Fund also may lose any premium it paid on the security.
Extension risk.
During periods of rising interest rates, the average life of certain types of securities may be extended because of slower than expected principal payments. This may lock in a below market interest rate, increase the security’s duration and reduce the value of the security.
Risk of illiquid investments.
Certain securities and derivatives held by the Fund may be impossible or difficult to purchase, sell or unwind. Illiquid securities and derivatives also may be difficult to value. Liquidity risk may be magnified in an environment of rising interest rates or widening credit spreads. During times of market turmoil, there have been, and may be, no buyers or sellers for securities in entire asset classes. If the Fund is forced to sell an illiquid asset or unwind a derivatives position, the Fund may suffer a substantial loss or may not be able to sell at all.
Portfolio selection risk.
The Adviser’s judgment about the quality, relative yield, relative value or market trends affecting a particular sector or region, market segment, security, industry or about interest rates or other market factors may prove to be incorrect or may not produce the desired results, or there may be imperfections, errors or limitations in the models, tools and information used by the Adviser.
Municipal securities risk.
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. Issuers of municipal securities tend to derive a significant portion of their revenue from taxes, particularly property and income taxes, and decreases in personal income levels and property values and other unfavorable economic factors, such as a general economic recession, adversely affect municipal securities. Municipal issuers may also be adversely affected by rising health care costs, increasing unfunded pension liabilities and by the phasing out of federal programs providing financial support. Where municipal securities are issued to finance particular projects, especially those relating to education, health care, transportation, housing, water or sewer and utilities, issuers often depend on revenues from those projects to make principal and interest
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payments. Adverse conditions and developments in those sectors can result in lower revenues to issuers of municipal securities, potentially resulting in defaults, and can also have an adverse effect on the broader municipal securities market. To the extent the Fund invests significantly in a single state, 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, special revenues and housing, the Fund will be more susceptible to associated risks and developments.
There may be less public information available on municipal issuers or projects than other issuers, and valuing municipal securities may be more difficult. In addition, the secondary market for municipal securities is less well developed and liquid than other markets, and dealers may be less willing to offer and sell municipal securities in times of market turbulence. Changes in the financial condition of one or more individual municipal issuers (or one or more insurers of municipal issuers), or one or more defaults by municipal issuers or insurers, can adversely affect liquidity and valuations in the overall market for municipal securities. The value of municipal securities can also be adversely affected by regulatory and political developments affecting the ability of municipal issuers to pay interest or repay principal, actual or anticipated 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 downgrades or defaults during recessions or similar periods of economic stress. Financial difficulties of municipal issuers may continue or get worse, particularly in the event of political, economic or market turmoil or a recession.
The rate of interest paid on municipal securities normally is lower than the rate of interest paid on fully taxable securities. Some municipal securities, such as general obligation issues, are backed by the issuer’s taxing authority, while other municipal securities, such as revenue issues, are backed only by revenues from certain facilities or other sources and not by the issuer itself. The payment of principal and interest on private activity and industrial development revenue bonds is solely dependent on the ability of the facility’s user to meet its financial obligations and the pledge, if any, of the facility or other property as security for payment.
The municipal market can be susceptible to unusual volatility, particularly for lower-rated and unrated securities.
Taxable investment risk.
Although distributions of interest income from the Fund’s tax-exempt securities are generally exempt from regular federal income tax, distributions from other sources, including capital gain distributions, and any gains on the sale of your shares are not. In addition,
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the interest on the Fund’s municipal securities could become subject to regular federal income tax or the AMT due to noncompliant conduct by issuers, unfavorable legislation or litigation, or adverse interpretations by regulatory authorities. You should consult a tax adviser about whether the AMT applies to you and about state and local taxes on your Fund distributions.
Risks of subordinated securities.
A holder of securities that are subordinated or “junior” to more senior securities of an issuer is entitled to payment after holders of more senior securities of the issuer. Subordinated securities are more likely to suffer a credit loss than non-subordinated securities of the same issuer, any loss incurred by the subordinated securities is likely to be proportionately greater, and any recovery of interest or principal may take more time. As a result, even a perceived decline in creditworthiness of the issuer is likely to have a greater impact on subordinated securities than more senior securities.
U.S. Treasury obligations risk.
The market value of direct obligations of the U.S. Treasury may vary due to changes in interest rates. In addition, changes to the financial condition or credit rating of the U.S. government may cause the value of the Fund’s investments in obligations issued by the U.S. Treasury to decline.
U.S. government agency obligations risk.
The Fund invests in obligations issued by agencies and instrumentalities of the U.S. government. Government-sponsored entities such as the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal Home Loan Banks (FHLBs), although chartered or sponsored by Congress, are not funded by congressional appropriations and the debt and mortgage-backed securities issued by them are neither guaranteed nor issued by the U.S. government. The maximum potential liability of the issuers of some U.S. government obligations may greatly exceed their current resources, including any legal right to support from the U.S. government. Such debt and mortgage-backed securities are subject to the risk of default on the payment of interest and/or principal, similar to debt of private issuers. Although the U.S. government has provided financial support to FNMA and FHLMC in the past, there can be no assurance that it will support these or other government-sponsored entities in the future.
Mortgage-related and asset-backed securities risk.
The value of mortgage-related securities, including commercial mortgage-backed securities, collateralized mortgage-backed securities, credit risk transfer securities, and asset-backed securities will be influenced by factors affecting the assets underlying such securities. As a result, during periods
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of declining asset value, difficult or frozen credit markets, swings in interest rates, or deteriorating economic conditions, mortgage-related and asset-backed securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid. Mortgage-backed securities tend to be more sensitive to changes in interest rate than other types of debt securities. These securities are also subject to interest rate, prepayment and extension risks. Some of these securities may receive little or no collateral protection from the underlying assets and are thus subject to the risk of default. The risk of such defaults is generally higher in the case of mortgage-backed investments offered by non-governmental issuers and those that include so-called “sub-prime” mortgages. The structure of some of these securities may be complex and there may be less available information than for other types of debt securities. Upon the occurrence of certain triggering events or defaults, the Fund may become the holder of underlying assets at a time when those assets may be difficult to sell or may be sold only at a loss.
Risks of investing in collateralized debt obligations.
Investment in a collateralized debt obligation (CDO) is subject to the credit, subordination, interest rate, valuation, prepayment, extension and other risks of the obligations underlying the CDO and the tranche of the CDO in which the Fund invests. CDOs are subject to liquidity risk. Synthetic CDOs are also subject to the risks of investing in derivatives, such as credit default swaps, and leverage risk.
Risks of instruments that allow for balloon payments or negative amortization payments.
Certain debt instruments allow for balloon payments or negative amortization payments.Such instruments permit the borrower to avoid paying currently a portion of the interest accruing on the instrument. While these features make the debt instrument more affordable to the borrower in the near term, they increase the risk that the borrower will be unable to make the resulting higher payment or payments that become due at the maturity of the loan.
Risks of zero coupon bonds, payment in kind, deferred and contingent payment securities.
These securities may be more speculative and may fluctuate more in value than securities which pay income periodically and in cash. In addition, although the Fund receives no periodic cash payments on such securities, the Fund is deemed for tax purposes to receive income from such securities, which applicable tax rules require the Fund to distribute to stockholders. Such distributions may be taxable when distributed to stockholders.
Derivatives risk
. Using swaps, forward foreign currency exchange contracts, bond and interest rate futures and other derivatives can increase
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Fund losses and reduce opportunities for gains when market prices, interest rates or the derivative instruments themselves behave in a way not anticipated by the Fund. Using derivatives may increase the volatility of the Fund’s net asset value and may not provide the result intended. Derivatives may have a leveraging effect on the Fund. Some derivatives have the potential for unlimited loss, regardless of the size of the Fund’s initial investment. Derivatives are generally subject to the risks applicable to the assets, rates, indices or other indicators underlying the derivative. Changes in a derivative’s value may not correlate well with the referenced asset or metric. The Fund also may have to sell assets at inopportune times to satisfy its obligations. Derivatives may be difficult to sell, unwind or value, and the counterparty may default on its obligations to the Fund. Use of derivatives may have different tax consequences for the Fund than an investment in the underlying security, and such differences may affect the amount, timing and character of income distributed to stockholders. The U.S. government and foreign governments have adopted and implemented or are in the process of adopting and implementing regulations governing derivatives markets, including mandatory clearing of certain derivatives, margin and reporting requirements. The ultimate impact of the regulations remains unclear. Additional regulation of derivatives may make them more costly, limit their availability or utility, otherwise adversely affect their performance or disrupt markets.
Synthetic municipal securities risk.
The tax-exempt character of the interest paid on tender option bonds, bond receipts and similar synthetic municipal securities, a type of derivative instrument, is based on the tax-exempt income stream from the collateral. In addition to the risks of investing in municipal securities and in derivatives generally, investments in synthetic municipal securities are subject to the risk that income derived from such securities is deemed to be taxable.
Risks of investing in inverse floating rate obligations.
The interest rate on inverse floating rate obligations will generally decrease as short-term interest rates increase, and increase as short-term rates decrease. Due to their leveraged structure, the sensitivity of the market value of an inverse floating rate obligation to changes in interest rates is generally greater than a comparable long-term bond issued by the same issuer and with similar credit quality, redemption and maturity provisions. Inverse floating rate obligations may be volatile and involve leverage risk.
Credit default swap risk.
Credit default swap contracts, a type of derivative instrument, involve special risks and may result in losses to the Fund. Credit default swaps may in some cases be illiquid, and they increase credit risk since the Fund has exposure to the issuer of the referenced obligation and either the counterparty to the credit default swap or, if it is
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a cleared transaction, the brokerage firm through which the trade was cleared and the clearing organization that is the counterparty to that trade.
Structured securities risk.
Structured securities may behave in ways not anticipated by the Fund, or they may not receive the tax, accounting or regulatory treatment anticipated by the Fund.
Leveraging risk.
The value of your investment may be more volatile and other risks tend to be compounded if the Fund borrows or uses derivatives or other investments, such as ETFs, that have embedded leverage. Leverage generally magnifies the effect of any increase or decrease in the value of the Fund’s underlying assets and creates a risk of loss of value on a larger pool of assets than the Fund would otherwise have, potentially resulting in the loss of all assets. Engaging in such transactions may cause the Fund to liquidate positions when it may not be advantageous to do so.  New derivatives regulations require the Fund, to the extent it uses derivatives to a material extent, to, among other things, comply with certain overall limits on leverage.  These regulations may limit the ability of the Fund to pursue its investment strategies and may not be effective to mitigate the Fund’s risk of loss from derivatives.
The Fund may use financial leverage on an ongoing basis for investment purposes by issuing preferred shares. The fees and expenses attributed to leverage, including any increase in the management fees, will be borne by holders of common shares. Since the Adviser’s fee is based on a percentage of the Fund’s managed assets, its fee will be higher if the Fund is leveraged, and the Adviser will thus have an incentive to leverage the Fund.
Repurchase agreement risk.
In the event that the other party to a repurchase agreement defaults on its obligations, the Fund may encounter delay and incur costs before being able to sell the security. Such a delay may involve loss of interest or a decline in price of the security. In addition, if the Fund is characterized by a court as an unsecured creditor, it would be at risk of losing some or all of the principal and interest involved in the transaction.
Market segment risk.
To the extent the Fund emphasizes, from time to time, investments in a market segment, the Fund will be subject to a greater degree to the risks particular to that segment, and may experience greater market fluctuation than a fund without the same focus.
Valuation risk.
Nearly all of the Fund's investments are valued using a fair value methodology.  The sales price the Fund could receive for any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for illiquid securities and securities that trade in
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thin or volatile markets. These differences may increase significantly and affect Fund investments more broadly during periods of market volatility. The ability to value the Fund’s investments may also be impacted by technological issues and/or errors by pricing services or other third party service providers.
Cybersecurity risk.
Cybersecurity failures by and breaches of the Fund’s Adviser, transfer agent, custodian, Fund accounting agent or other service providers may disrupt Fund operations, interfere with the Fund’s ability to calculate its NAV, prevent Fund stockholders from purchasing or selling shares or receiving distributions or receiving timely information regarding the Fund or their investment in the Fund, cause loss of or unauthorized access to private stockholder information, and result in financial losses to the Fund and its stockholders, regulatory fines, penalties, reputational damage, or additional compliance costs.  New ways to carry out cyber attacks continue to develop. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund’s ability to plan for or respond to a cyber attack.
Cash management risk.
The value of the investments held by the Fund for cash management or temporary defensive purposes may be affected by market risks, changing interest rates and by changes in credit ratings of the investments. To the extent that the Fund has any uninvested cash, the Fund would be subject to credit risk with respect to the depository institution holding the cash. If the Fund holds cash uninvested, the Fund will not earn income on the cash and the Fund’s yield will go down. During such periods, it may be more difficult for the Fund to achieve its investment objective.
Anti-takeover provisions.
The Fund’s Charter and Bylaws include provisions that are designed to limit the ability of other entities or persons to acquire control of the Fund for short-term objectives, including by converting the Fund to open-end status or changing the composition of the Board, that may be detrimental to the Fund's ability to achieve its primary investment objective of seeking to provide its common stockholders with a high level of current income exempt from regular federal income tax. These provisions include staggered terms of service for the Directors, advance notice requirements for stockholder proposals, and super-majority voting requirements for certain transactions with affiliates, open-ending the Fund or a merger, liquidation, asset sale or similar transaction.  The Fund’s Bylaws also contain a provision providing that the Board of Directors has adopted a resolution to opt in the Fund to the provisions of the Maryland Control Share Acquisition Act (“MCSAA”). Such provisions may limit the ability of stockholders to sell their shares at a premium over prevailing
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market prices by discouraging a third party from seeking to obtain control of the Fund. There can be no assurance, however, that such provisions will be sufficient to deter activist investors that seek to cause the Fund to take actions that may not be aligned with the interests of long-term stockholders.  Furthermore, the law is uncertain on the use of control share provisions.  Certain courts have found that control share provisions are unenforceable under the 1940 Act. It is possible that a court could decide that the Fund’s decision to opt in to the MCSAA is not enforceable under the 1940 Act.
Exclusive forum provisions.  The Fund’s Bylaws designate the Circuit Court for Baltimore City, Maryland as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by the Fund’s stockholders and provide that claims relating to causes of action under the United States federal securities laws may only be brought in the United States District Court for the District of Maryland, Northern Division, which could limit stockholders’ ability to obtain a favorable judicial forum for disputes with the Fund or its directors, officers or the Fund’s agents, if any, and could discourage lawsuits against the Fund and its directors, officers and agents, if any.
The Fund’s Bylaws provide that, unless the Fund consents in writing to the selection of an alternative forum, the Circuit Court for Baltimore City, Maryland, or, if that court does not have jurisdiction, the United States District Court for the District of Maryland, Northern Division, will be the sole and exclusive forum for (a) any Internal Corporate Claim, as such term is defined in the MGCL, (b) any derivative action or proceeding brought on the Fund’s behalf (other than actions arising under federal securities laws), (c) any action asserting a claim of breach of any duty owed by any of the Fund’s directors, officers or other agents to the Fund or to the Fund’s stockholders, (d) any action asserting a claim against the Fund or any of the Fund’s directors, officers or other agents arising pursuant to any provision of the MGCL or the Fund’s Charter or Bylaws or (e) any other action asserting a claim against the Fund or any of the Fund’s directors, officers or other agents that is governed by the internal affairs doctrine. Furthermore, the Fund’s Bylaws provide that, unless the Fund consents in writing to the selection of an alternative forum, the United States District Court for the District of Maryland, Northern Division shall, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any claim arising under the United States federal securities laws.
These exclusive forum provisions may limit the ability of the Fund’s stockholders to bring a claim in a judicial forum that such stockholders find favorable for disputes with the Fund or the Fund’s directors, officers, or agents, if any, which may discourage such lawsuits against the Fund and
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the Fund’s directors, officers, and agents, if any. Alternatively, if a court were to find the choice of forum provisions contained in the Fund’s Bylaws to be inapplicable or unenforceable in an action, the Fund may incur additional costs associated with resolving such action in other jurisdictions, which could materially adversely affect the Fund’s business, financial condition, and operating results.
Please note that there are many other factors that could adversely affect your investment and that could prevent the Fund from achieving its goals.
An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
INVESTMENT RESTRICTIONS
The following are the Fund’s fundamental investment restrictions. These restrictions, along with the Fund’s investment objectives, may not be changed without the approval of the holders of a majority of the Fund’s outstanding voting securities (which for this purpose and under the 1940 Act means the lesser of (i) 67% of the common shares represented at a meeting at which more than 50% of the outstanding common shares are represented or (ii) more than 50% of the outstanding common shares).
The Fund may not:
(1) Issue senior securities, except as permitted by applicable law, as amended and interpreted or modified from time to time by any regulatory authority jurisdiction.
(2) Borrow money, except as permitted by applicable law, as amended and interpreted or modified from time to time by any regulatory authority jurisdiction.
(3) Invest in real estate, except the Fund may invest in securities of issuers that invest in real estate or interests therein, securities that are secured by real estate or interests therein, securities of real estate investment trusts, mortgage-backed securities and other securities that represent a similar indirect interest in real estate, and the Fund may acquire real estate or interests therein through exercising rights or remedies with regard to an instrument.
(4) Make loans, except that the Fund may (i) lend portfolio securities in accordance with the Fund’s investment policies, (ii) enter into repurchase agreements, (iii) purchase all or a portion of an issue of publicly distributed debt securities, bank loan participation interests, bank certificates of deposit, acceptances, debentures or other securities, whether or not the
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purchase is made upon the original issuance of the securities, (iv) participate in a credit facility whereby the Fund may directly lend to and borrow money from other affiliated funds to the extent permitted under the 1940 Act or an exemption therefrom and (v) make loans in any other manner consistent with applicable law, as amended and interpreted or modified from time to time by any regulatory authority having jurisdiction.
(5) Invest in commodities or commodity contracts, except that the Fund may invest in currency instruments and contracts and financial instruments and contracts that might be deemed to be commodities and commodity contracts.
(6) Act as an underwriter, except insofar as the Fund technically may be deemed to be an underwriter in connection with the purchase or sale of its portfolio securities.
(7) Make any investment inconsistent with its classification as a diversified closed-end investment company (or series thereof) under the 1940 Act.
(8) Invest 25% or more of the value of its total assets in any one industry, provided that this limitation does not apply to municipal securities other than those municipal securities backed only by assets and revenues of non-governmental issuers.
(9) Under normal market conditions, the Fund will invest substantially all (at least 80%) of its assets (net assets plus borrowings for investment purposes) in debt securities and other obligations issued by or on behalf of states, territories and possessions of the United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the interest on which is exempt from regular federal income tax.
All other investment policies of the Fund are considered non-fundamental and may be changed by the Board of Directors without prior approval of the Fund’s outstanding voting shares.
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Effects of Leverage
The following table is furnished in response to requirements of the Securities and Exchange Commission. It is designed to illustrate the effects of leverage on common share total return, assuming investment portfolio total returns (consisting of income and changes in the value of investments held in the Fund’s portfolio) of -10%, -5%, 0%, 5% and 10%. The table below reflects the Fund’s continued use of leverage through preferred shares issued and outstanding as of March 31, 2024 as a percentage of the Fund’s total assets (which includes assets attributable to such leverage), the annual dividend rate on the preferred shares as of March 31, 2024, and the annual return that the Fund’s portfolio must experience (net of expenses) in order to cover such costs. The information below does not reflect the Fund’s use of certain other forms of economic leverage achieved through the use of other instruments or transactions not considered to be senior securities under the 1940 Act, if any.
The assumed investment portfolio returns in the table below are hypothetical figures and are not necessarily indicative of the investment portfolio returns experienced or expected to be experienced by the Fund. Your actual returns may be greater or less than those appearing below. In addition, the actual dividend rate payable on the preferred shares by the Fund may vary frequently and may be significantly higher or lower than the rate used for the example below.
   
Preferred shares as a percentage of total managed assets (including assets attributable to preferred shares) 18.51%
Annual effective dividend rate payable by Fund on preferred shares 5.74%
Annual return Fund portfolio must experience (net of expenses) to cover dividend rate on preferred shares 1.06%
Common share total return for (10.00)% assumed portfolio total return (13.58)%
Common share total return for (5.00)% assumed portfolio total return (7.44)%
Common share total return for 0.00% assumed portfolio total return (1.30)%
Common share total return for 5.00% assumed portfolio total return 4.83%
Common share total return for 10.00% assumed portfolio total return 10.97%
Common share total return is composed of two elements - investment income net of the Fund’s expenses, including any interest/dividends on assets resulting from leverage, and gains or losses on the value of the securities the Fund owns. As required by Securities and Exchange Commission rules, the table assumes that the Fund is more likely to suffer capital losses than to enjoy capital appreciation. For example, to assume a total return of 0%, the Fund must assume that the income it receives on its investments is entirely offset by losses in the value of those investments.
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This table reflects hypothetical performance of the Fund’s portfolio and not the performance of the Fund’s common shares, the value of which will be determined by market forces and other factors.
Should the Fund elect to add additional leverage to its portfolio, the potential benefits of leveraging the Fund’s shares cannot be fully achieved until the proceeds resulting from the use of leverage have been received by the Fund and invested in accordance with the Fund’s investment objective and principal investment strategies. The Fund’s willingness to use additional leverage, and the extent to which leverage is used at any time, will depend on many factors, including, among other things, the Adviser’s assessment of the yield curve environment, interest rate trends, market conditions and other factors.
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Directors, Officers and Service Providers
 
Investment Adviser and Administrator
Amundi Asset Management US, Inc.
Custodian and Sub-Administrator
The Bank of New York Mellon Corporation
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Legal Counsel
Morgan, Lewis & Bockius LLP
Transfer Agent
Equiniti Trust Company, LLC
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 stockholders at www.amundi.com/us. This information is also available on the Securities and Exchange Commission’s web site at www.sec.gov.
Directors and Officers
The Fund’s Directors and officers are listed below, together with their principal occupations and other directorships they have held during at least the past five years. Directors who are interested persons of the Fund within the meaning of the 1940 Act are referred to as Interested Directors. Directors who are not interested persons of the Fund are referred to as Independent Directors. Each of the Directors serves as a Director of each of the 46 U.S. registered investment portfolios for which Amundi US serves as investment adviser (the “Pioneer Funds”). The address for all Directors and all officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
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Independent Directors 
Name, Age and Position
Held With the Fund
Term of Office and
Length of Service
Principal Occupation(s) During At Least The Past Five Years
Other Directorships Held by Director
During At Least The Past Five Years
Thomas J. Perna (73)

Chairman of the Board
and Director
Class III Director since 2006.
Term expires in 2024.
Private investor (2004 – 2008 and 2013 – present); Chairman (2008 – 2013) and Chief Executive Officer (2008 – 2012), Quadriserv, Inc. (technology products for securities lending industry); and Senior Executive Vice President, The Bank of New York (financial and securities services) (1986 – 2004) Director, Broadridge Financial
Solutions, Inc. (investor
communications and securities
processing provider for financial
services industry) (2009 – present);
Director, Quadriserv, Inc. (2005 –
2013); and Commissioner, New
Jersey State Civil Service
Commission (2011 – 2015)
John E. Baumgardner,

Jr. (73)*

Director
Class I Director since 2019.
Term expires in 2025.
Of Counsel (2019 – present), Partner (1983-2018), Sullivan & Cromwell LLP (law firm). Chairman, The Lakeville Journal
Company, LLC, (privately-held
community newspaper group)
(2015-present)
Diane Durnin (67)

Director
Class II Director since 2020.
Term expires in 2026.
Managing Director - Head of Product Strategy and Development, BNY Mellon Investment Management (investment management firm) (2012-2018); Vice Chairman – The Dreyfus Corporation (2005 – 2018): Executive Vice President Head of Product, BNY Mellon Investment Management (2007-2012); Executive Director- Product Strategy, Mellon Asset Management (2005-2007); Executive Vice President Head of Products, Marketing and Client Service, Dreyfus Corporation (investment management firm) (2000-2005); Senior Vice President Strategic Product and Business Development, Dreyfus Corporation (1994-2000) None
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Name, Age and Position
Held With the Fund
Term of Office and
Length of Service
Principal Occupation(s) During At Least The Past Five Years
Other Directorships Held by Director
During At Least The Past Five Years
Benjamin M. Friedman (79)

Director
Class II Director since 2008.
Term expires in 2026.
William Joseph Maier Professor of Political Economy, Harvard University (1972 – present) Trustee, Mellon Institutional Funds
Investment Trust and Mellon
Institutional Funds Master Portfolio
(oversaw 17 portfolios in fund
complex) (1989 - 2008)
Craig C. MacKay (61)

Director
Class III Director since 2021.
Term expires in 2024.
Partner, England & Company, LLC (advisory firm) (2012 – present); Group Head – Leveraged Finance Distribution, Oppenheimer & Company (investment bank) (2006 – 2012); Group Head – Private Finance & High Yield Capital Markets Origination, SunTrust Robinson Humphrey (investment bank) (2003 – 2006); and Founder and Chief Executive Officer, HNY Associates, LLC (investment bank) (1996 – 2003) Director, Equitable Holdings, Inc. (financial
services holding company) (2022 – present);
Board Member of Carver Bancorp, Inc. (holding
company) and Carver Federal Savings Bank,
NA (2017 – present); Advisory Council Member,
MasterShares ETF (2016 – 2017); Advisory
Council Member, The Deal (financial market
information publisher) (2015 – 2016); Board
Co-Chairman and Chief Executive Officer, Danis
Transportation Company (privately-owned
commercial carrier) (2000 – 2003); Board
Member and Chief Financial Officer, Customer
Access Resources (privately-owned
teleservices company) (1998 – 2000); Board
Member, Federation of Protestant Welfare
Agencies (human services agency) (1993 –
present); and Board Treasurer, Harlem Dowling
Westside Center (foster care agency)
(1999 – 2018)
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Independent Directors 
(continued)
Name, Age and Position
Held With the Fund
Term of Office and
Length of Service
Principal Occupation(s) During At Least The Past Five Years
Other Directorships Held by Director
During At Least The Past Five Years
Lorraine H. Monchak (67)

Director
Class I Director since 2015.
Term expires in 2025.
Chief Investment Officer, 1199 SEIU Funds (healthcare workers union pension funds) (2001 – present); Vice President – International Investments Group, American International Group, Inc. (insurance company) (1993 – 2001); Vice President – Corporate Finance and Treasury Group, Citibank, N.A. (1980 – 1986 and 1990 – 1993); Vice President – Asset/Liability Management Group, Federal Farm Funding Corporation (government-sponsored issuer of debt securities) (1988 – 1990); Mortgage Strategies Group, Shearson Lehman Hutton, Inc. (investment bank) (1987 – 1988); Mortgage Strategies Group, Drexel Burnham Lambert, Ltd. (investment bank) (1986 – 1987) None
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Name, Age and Position
Held With the Fund
Term of Office and
Length of Service
Principal Occupation(s) During At Least The Past Five Years
Other Directorships Held by Director
During At Least The Past Five Years
Fred J. Ricciardi (77)

Director
Class III Director since 2014.
Term expires in 2024.
Private investor (2020 – present); Consultant (investment company services) (2012 – 2020); Executive Vice President, BNY Mellon (financial and investment company services) (1969 – 2012); Director, BNY International Financing Corp. (financial services) (2002 – 2012); Director, Mellon Overseas Investment Corp. (financial services) (2009 – 2012); Director, Financial Models (technology) (2005-2007); Director, BNY Hamilton Funds, Ireland (offshore investment companies) (2004-2007); Chairman/Director, AIB/BNY Securities Services, Ltd., Ireland (financial services) (1999-2006); Chairman, BNY Alternative Investment Services, Inc. (financial services) (2005-2007) None
* Mr. Baumgardner is Of Counsel to Sullivan & Cromwell LLP, which acts as counsel to the Independent Directors of each Pioneer Fund.
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Interested Directors 
Name, Age and Position
Held With the Fund
Term of Office and
Length of Service
Principal Occupation(s) During At Least The Past Five Years
Other Directorships Held by Director
During At Least The Past Five Years
Lisa M. Jones (62)**

Director, President and Chief
Executive Officer
Class I Director since 2014.
Term expires in 2025.
Director, CEO and President of Amundi US, Inc. (investment management firm) (since September 2014); Director, CEO and President of Amundi Asset Management US, Inc. (since September 2014); Director, CEO and President of Amundi Distributor US, Inc. (since September 2014); Director, CEO and President of Amundi Asset Management US, Inc. (since September 2014); Chair, Amundi US, Inc., Amundi Distributor US, Inc. and Amundi Asset Management US, Inc. (September 2014 – 2018); Managing Director, Morgan Stanley Investment Management (investment management firm) (2010 – 2013); Director of Institutional Business, CEO of International, Eaton Vance Management (investment management firm) (2005 – 2010); Director of Amundi Holdings US, Inc. (since 2017) Director of Clearwater Analytics (provider
of web-based investment accounting
software for reporting and reconciliation
services) (September 2022 – present)
Marco Pirondini (57)**

Director, Executive Vice President
Class II Director since January 2024.
Term expires in 2026.
Executive Vice President and Chief Investment Officer of Amundi Asset Management US, Inc. since January 2024; Senior Managing Director and Head of Equities U.S. of Amundi US from 2010 to December 2023 None
** Ms. Jones and Mr. Pirondini are Interested Directors because they are officers or directors of the Fund’s investment adviser and certain of its affiliates.
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Advisory Director 
Name, Age and Position
Held With the Fund
Term of Office and
Length of Service
Principal Occupation(s) During At Least The Past Five Years
Other Directorships Held by Director
During At Least The Past Five Years
Marguerite A. Piret (75)***

Advisory Director
Advisory Director since January 2024
(Class III Director from 2003 to January 2024).
Chief Financial Officer, American Ag Energy, Inc. (technology for the environment, energy and agriculture) (2019 – present); Chief Operating Officer, North Country Growers LLC (controlled environment agriculture company) (2020 – present); Chief Executive Officer, Green Heat LLC (biofuels company) (2022 – present); President and Chief Executive Officer, Newbury Piret Company (investment banking firm) (1981 – 2019) Director of New America High
Income Fund, Inc. (closed-end
investment company) (2004 – present);
and Member, Board of Governors,
Investment Company Institute (2000 – 2006)
*** Ms. Piret became a non-voting Advisory Director effective January 22, 2024.
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Fund Officers 
Name, Age and Position
Held With the Fund
Term of Office and
Length of Service
Principal Occupation(s) During At Least The Past Five Years
Other Directorships Held by Officer
During At Least The Past Five Years
Christopher J. Kelley (59)

Secretary and Chief
Legal Officer
Since 2003. Serves at
the discretion of
the Board
Senior Vice President and Deputy General Counsel of Amundi US since March 2024; Vice President and Associate General Counsel of Amundi US from January 2008 to March 2024; Secretary and Chief Legal Officer of all of the Pioneer Funds since June 2010; Assistant Secretary of all of the Pioneer Funds from September 2003 to May 2010; Vice President and Senior Counsel of Amundi US from July 2002 to December 2007 None
Thomas Reyes (61)

Assistant Secretary
Since 2010. Serves at
the discretion of
the Board
Assistant General Counsel of Amundi US since May 2013 and Assistant Secretary of all the Pioneer Funds since June 2010; Counsel of Amundi US from June 2007 to May 2013 None
Heather L. Melito-Dezan (47)

Assistant Secretary
Since 2022. Serves at
the discretion of
the Board
Director - Trustee and Board Relationships of Amundi US since September 2019; Private practice from 2017 – 2019. None
Anthony J. Koenig, Jr. (60)

Treasurer and
Chief Financial and
Accounting Officer
Since 2021. Serves at
the discretion of
the Board
Managing Director, Chief Operations Officer and Fund Treasurer of Amundi US since May 2021; Treasurer of all of the Pioneer Funds since May 2021; Assistant Treasurer of all of the Pioneer Funds from January 2021 to May 2021; and Chief of Staff, US Investment Management of Amundi US from May 2008 to January 2021 None
Luis I. Presutti (58)

Assistant Treasurer
Since 2003. Serves at
the discretion of
the Board
Director – Fund Treasury of Amundi US since 1999; and Assistant Treasurer of all of the Pioneer Funds since 1999 None
Gary Sullivan (65)

Assistant Treasurer
Since 2003. Serves at
the discretion of
the Board
Senior Manager – Fund Treasury of Amundi US since 2012; and Assistant Treasurer of all of the Pioneer Funds since 2002 None
Antonio Furtado (41)

Assistant Treasurer
Since 2020. Serves at
the discretion of
the Board
Fund Oversight Manager – Fund Treasury of Amundi US since 2020; Assistant Treasurer of all of the Pioneer Funds since 2020; and Senior Fund Treasury Analyst from 2012 - 2020 None
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Name, Age and Position
Held With the Fund
Term of Office and
Length of Service
Principal Occupation(s) During At Least The Past Five Years
Other Directorships Held by Officer
During At Least The Past Five Years
Michael Melnick (53)

Assistant Treasurer
Since 2021. Serves at
the discretion of
the Board
Vice President - Deputy Fund Treasurer of Amundi US since May 2021; Assistant Treasurer of all of the Pioneer Funds since July 2021; Director of Regulatory Reporting of Amundi US from 2001 – 2021; and Director of Tax of Amundi US from 2000 - 2001 None
John Malone (53)

Chief Compliance Officer
Since 2018. Serves at
the discretion of
the Board
Managing Director, Chief Compliance Officer of Amundi US Asset Management; Amundi Asset Management US, Inc.; and the Pioneer Funds since September 2018; Chief Compliance Officer of Amundi Distributor US, Inc. since January 2014. None
Brandon Austin (52)

Anti-Money
Laundering Officer
Since 2022. Serves at
the discretion of
the Board
Director, Financial Security – Amundi Asset Management; Anti-Money Laundering Officer of all the Pioneer Funds since March 2022: Director of Financial Security of Amundi US since July 2021; Vice President, Head of BSA, AML and OFAC, Deputy Compliance Manager, Crédit Agricole Indosuez Wealth Management (investment management firm) (2013 – 2021) None
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How to Contact Amundi
We are pleased to offer a variety of convenient ways for you to contact us for assistance or information.
You can call Equiniti Trust Company, LLC (EQ) for:

Account Information
 
1-800-710-0935
Or write to EQ:

For
Write to
General inquiries, lost dividend checks,
Equiniti Trust
change of address, lost stock certificates,
Company, LLC
stock transfer
Operations Center
6201 15th Ave.
Brooklyn, NY 11219