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Pioneer Closed-End Funds Required Notice to Shareholders Sources of Distribution Under Section 19(a)

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Pioneer Municipal High Income Fund, Inc. (MHI) reported a distribution amount of $0.0275 per share for February 2024. The fund's distribution makeup includes 60.4% from Net Investment Income, 0% from Short-Term Capital Gains, 0% from Long-Term Capital Gains, and 39.6% from Return of Capital. The cumulative distributions for the fiscal year to date stand at $0.2900 per share.
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The disclosed distribution amounts and their composition for the Pioneer Municipal High Income Advantage Fund, Inc. (MAV), Pioneer Municipal High Income Fund, Inc. (MHI) and Pioneer Municipal High Income Opportunities Fund, Inc. (MIO) are critical for investors who focus on income-generating securities. A significant portion of the distributions for MAV and MHI comes from Net Investment Income, indicating operational earnings from interest on municipal bonds are the primary source. However, a noticeable portion is also a Return of Capital (ROC), which effectively reduces an investor's cost basis and can signal that the fund is not generating enough income to cover the distribution.

For MIO, the vast majority of the distribution is from Net Investment Income, which suggests a robust income generation capability. Investors should be aware that a high ROC percentage could potentially lead to a depletion of fund assets over time if not offset by capital appreciation or other income. Moreover, the absence of Net Realized Capital Gains, both short-term and long-term, indicates that these funds have not locked in profits from the sale of underlying assets during the period. This could be due to a strategy focusing on income over capital gains or a lack of opportunities to realize gains in the current market environment.

From a taxation perspective, the character of distributions is paramount. Net Investment Income is generally taxed at ordinary income rates, whereas Net Realized Capital Gains are taxed at potentially lower long-term capital gains rates if the assets were held for more than a year. The absence of capital gains distributions might be favorable for investors in higher tax brackets seeking to minimize their current tax liability. However, the Return of Capital is not taxed immediately; instead, it reduces the investor's cost basis, deferring taxes until the investment is sold. If the ROC distributions exceed the investor's cost basis, it could eventually turn into capital gains, taxable at the time of sale.

Understanding the tax implications of these distributions is essential for investors to manage their portfolios effectively in a tax-efficient manner. The high percentage of distributions classified as ROC for MAV and MHI could influence an investor's decision-making, especially if they are seeking tax-advantaged income or are concerned about the potential erosion of fund capital.

The distribution composition of these closed-end funds provides insights into their current investment strategy and market conditions. A high Net Investment Income suggests a focus on generating income from the underlying municipal bond holdings, which might appeal to investors seeking steady income streams, especially in volatile or low-interest-rate environments. The lack of capital gains distributions could indicate that the funds are either holding onto their assets for the long term, reflecting a buy-and-hold strategy, or that market conditions have not been favorable for realizing gains.

Investors should consider the broader market context, including interest rate trends, credit risk and municipal bond market dynamics, when interpreting these figures. The funds' ability to sustain their distributions without resorting to ROC is a key indicator of their financial health and operational performance. A consistent reliance on ROC could lead to concerns about the sustainability of the fund's distributions and its long-term performance prospects.

BOSTON--(BUSINESS WIRE)-- The following closed-end funds reported sources of distribution for February and this fiscal year to date.

 

Distribution Period:

February 2024

 

 

 

Ticker

Tax-Exempt Funds

Distribution Amount Per Share

MAV

Pioneer Municipal High Income Advantage Fund, Inc.

$0.0275

MHI

Pioneer Municipal High Income Fund, Inc.

$0.0275

MIO

Pioneer Municipal High Income Opportunities Fund, Inc.

$0.0425

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)

 

 

 

Percentage

Total

Percentage Make up

 

 

Make up of

Cumulative

of Total Cumulative

 

Current

Current

Distributions

Distributions

 

Distribution

Distribution

Fiscal Year to Date

Fiscal Year to Date

Net Investment Income

$0.0127

46.2%

$0.2574

81.2%

Net Realized Short-Term Capital Gains

$0.0000

0.0%

$0.0000

0.0%

Net Realized Long-Term Capital Gains

$0.0000

0.0%

$0.0000

0.0%

Return of Capital

$0.0148

53.8%

$0.0596

18.8%

Total per Common Share

$0.0275

100.0%

$0.3170

100.0%

 

 

 

 

 

 

 

 

 

 

Pioneer Municipal High Income Fund, Inc. (NYSE: MHI)

 

 

 

Percentage

Total

Percentage Make up

 

 

Make up of

Cumulative

of Total Cumulative

 

Current

Current

Distributions

Distributions

 

Distribution

Distribution

Fiscal Year to Date

Fiscal Year to Date

Net Investment Income

$0.0166

60.4%

$0.2441

84.2%

Net Realized Short-Term Capital Gains

$0.0000

0.0%

$0.0000

0.0%

Net Realized Long-Term Capital Gains

$0.0000

0.0%

$0.0000

0.0%

Return of Capital

$0.0109

39.6%

$0.0459

15.8%

Total per Common Share

$0.0275

100.0%

$0.2900

100.0%

 

 

Pioneer Municipal High Income Opportunities Fund, Inc. (NYSE: MIO)

 

 

 

 

 

 

 

Percentage

Total

Percentage Make up

 

 

Make up of

Cumulative

of Total Cumulative

 

Current

Current

Distributions

Distributions

 

Distribution

Distribution

Fiscal Year to Date

Fiscal Year to Date

Net Investment Income

$0.0400

94.1%

$0.4012

94.4%

Net Realized Short-Term Capital Gains

$0.0000

0.0%

$0.0000

0.0%

Net Realized Long-Term Capital Gains

$0.0000

0.0%

$0.0000

0.0%

Return of Capital

$0.0025

5.9%

$0.0238

5.6%

Total per Common Share

$0.0425

100.0%

$0.4250

100.0%

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, MHI, and MIO.

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. Boston is one of Amundi’s six main global investment hubs2 and offers a broad range of fixed-income, equity, and multi-asset investment solutions in close partnership with wealth management firms, distribution platforms, and institutional investors across the Americas, Europe, and Asia-Pacific.

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 5,5003 team members and market professionals in 35 countries3. A subsidiary of the Crédit Agricole group and listed on the Paris stock exchange, Amundi currently manages approximately $2.25 trillion of assets3.

Amundi, a Trusted Partner, working every day in the interest of our clients and society

www.amundi.com/us

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 Boston, Dublin, London, Milan, Paris, and Tokyo
3 Amundi data as of 12/31/2023

Amundi Distributor US, Inc., Member SIPC
60 State Street, Boston, MA 02109
©2024 Amundi Asset Management US, Inc.

Shareholder Inquiries: Please contact your financial advisor or visit www.amundi.com/us.

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 Fund, Inc. (MHI) for February 2024?

The distribution amount per share for MHI for February 2024 is $0.0275.

What is the makeup of the distributions for MHI in terms of Net Investment Income?

60.4% of the distributions for MHI come from Net Investment Income.

What percentage of the distributions for MHI is from Return of Capital?

39.6% of the distributions for MHI is from Return of Capital.

What is the cumulative distribution per share for MHI for the fiscal year to date?

The cumulative distribution per share for MHI for the fiscal year to date is $0.2900.

Pioneer Municipal High Income Fund, Inc.

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