Pioneer Closed End Funds Required Notice to Shareholders Sources of Distribution Under Section 19(a)
- None.
- None.
An examination of the distribution reports from Pioneer Municipal High Income Advantage Fund, Inc. and Pioneer Municipal High Income Fund, Inc. reveals a significant reliance on net investment income as the primary source for distributions. The former fund has allocated 87.3% of its current distribution to net investment income, with the latter allocating a higher percentage of 98.9%. This suggests a stable source of income, likely to be well-received by investors seeking consistent returns.
The presence of return of capital in the distributions, although smaller, is notable. For the Advantage Fund, it constitutes 12.7% of the current distribution and 15.2% for the fiscal year to date. The High Income Fund has a minimal return of capital at 1.1% for the current period and 14.1% cumulatively. Return of capital can indicate that the funds are returning part of the investors' original investment, which might not be sustainable in the long term and could potentially erode the fund's asset base if it continues.
It is important for stakeholders to understand that a return of capital, while boosting the yield on paper, does not come from income or capital gains and can reflect a different risk profile compared to distributions solely from income or gains. The lack of any capital gains distributions could raise questions about the funds' growth strategies and market conditions. However, it may also suggest a conservative approach to realizing gains, possibly to maintain a more stable NAV (Net Asset Value).
From a taxation perspective, the character of distributions is crucial. The high percentage of distributions classified as net investment income for both funds indicates that investors will likely be subject to income tax at their respective rates. This contrasts with capital gains, which could be taxed at lower long-term capital gains rates if applicable.
The absence of capital gains distributions might be favorable for investors in higher tax brackets, as it avoids the potential for higher taxes associated with such gains. Conversely, the return of capital portion of the distribution reduces the cost basis of the investment, which could result in higher capital gains taxes when the shares are eventually sold.
Investors should consult with tax professionals to understand the implications of these distributions on their personal tax situations, especially considering the potential complexity arising from the return of capital component.
Distribution Period: December 2023
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Ticker |
Tax-Exempt Funds |
Distribution Amount Per Share |
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MAV |
Pioneer Municipal High Income Advantage Fund, Inc. |
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MHI |
Pioneer Municipal High Income Fund, Inc. |
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The following tables set forth estimates of the character of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: Net Investment Income; Net Realized Short-Term Capital Gains; Net Realized Long-Term Capital Gains or Return of Capital. All amounts are expressed per common share.
Pioneer Municipal High Income Advantage Fund, Inc. (NYSE: MAV) |
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Percentage |
Total |
Percentage Make up |
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Make up of |
Cumulative |
of Total Cumulative |
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Current |
Current |
Distributions |
Distributions |
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Distribution |
Distribution |
Fiscal Year to Date |
Fiscal Year to Date |
Net Investment Income |
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Net Realized Short-Term Capital Gains |
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Net Realized Long-Term Capital Gains |
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Return of Capital |
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Total per Common Share |
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Pioneer Municipal High Income Fund, Inc. (NYSE: MHI) |
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Percentage |
Total |
Percentage Make up |
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Make up of |
Cumulative |
of Total Cumulative |
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Current |
Current |
Distributions |
Distributions |
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Distribution |
Distribution |
Fiscal Year to Date |
Fiscal Year to Date |
Net Investment Income |
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Net Realized Short-Term Capital Gains |
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Net Realized Long-Term Capital Gains |
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Return of Capital |
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Total per Common Share |
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Notes:
Investors should not necessarily draw any conclusions about the funds' investment performance from the amount of these distributions.
Each fund estimates that a portion of its distribution does not represent income or realized capital gains. Therefore, such portion of its distribution may be a return of capital. A return of capital may occur when some or all of the money invested in the fund is returned to the investor. A return of capital distribution does not necessarily reflect the fund's investment performance and should not be considered "yield" or "income."
The amounts and sources of distributions reported under the notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each fund's investment experience during the remainder of its respective fiscal year and may be subject to change based on tax regulations. Each fund will provide investors with a Form(s) 1099 for the calendar year that explains how to report these distributions for federal income tax purposes.
The funds are closed-end investment companies. The following funds trade on the New York Stock Exchange (NYSE) under the following symbols: MAV and MHI.
Keep in mind, distribution rates are not guaranteed. A fund’s distribution rate may be affected by numerous factors, including changes in actual or projected investment income, the level of undistributed net investment income, if any, and other factors. Closed-end funds, unlike open-end funds, are not continuously offered. Once issued, common 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 net asset value. Net Asset Value (NAV) is total assets less total liabilities divided by the number of common shares outstanding. For performance data on Amundi US’ closed-end funds, please call 800-225-6292 or visit our closed-end pricing page.
About Amundi US
Amundi US is the US business of Amundi, Europe’s largest asset manager by assets under management and ranked among the ten largest globally1.
With our financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape. Amundi clients benefit from the expertise and advice of 5,4003 team members and market professionals in 35 countries3. A subsidiary of the Crédit Agricole group and listed on the
Amundi, a Trusted Partner, working every day in the interest of our clients and society
Follow us on linkedin.com/company/amundi-us/ and twitter.com/amundi_us.
1 Source: IPE “Top 500 Asset Managers” published in June 2023, based on assets under management as of December 31, 2022.
2
3 Amundi data as of 9/30/2023
Shareholder Inquiries: Please contact your financial advisor or visit www.amundi.com/us.
Amundi Distributor US, Inc., Member SIPC
60 State Street,
©2023 Amundi Asset Management US, Inc.
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Broker/Advisor Inquiries Please Contact: 800-622-9876
Media Inquiries Please Contact: Geoff Smith, 617-504-8520
Source: Amundi US
FAQ
What is the distribution amount per share for Pioneer Municipal High Income Advantage Fund, Inc. (NYSE: MAV)?
What are the sources of distribution for Pioneer Municipal High Income Fund, Inc. (NYSE: MHI)?
What are the percentages and make up of cumulative distributions for Pioneer Municipal High Income Advantage Fund, Inc. (NYSE: MAV)?
What should investors not necessarily draw conclusions from?
