Pioneer Closed-End Fund Required Notice to Shareholders Sources of Distribution Under Section 19(a)
- None.
- None.
Insights
The distribution report from Pioneer Municipal High Income Advantage Fund, Inc. (MAV) is a noteworthy event for investors, as it provides insight into the fund's income sources and financial health. The majority of the current distribution, at 91%, is derived from Net Investment Income, indicating a robust income-generating strategy. This is a positive sign for investors looking for consistent income streams, as it suggests the fund's investments are yielding interest or dividends.
However, the absence of distributions from Net Realized Capital Gains, both short-term and long-term, signals that the fund might not be actively selling assets for profit during this period. While this could imply a buy-and-hold strategy, which can be beneficial for long-term stability, it also suggests that there may be fewer opportunities for capital appreciation or that the market conditions are not favorable for realizing gains.
The Return of Capital component, which accounts for 9% of the current distribution, is often seen as less favorable because it essentially represents a return of the investors' original investment rather than profits. This could potentially reduce the fund's assets over time if not offset by investment income or capital gains. Investors should monitor this metric, as a high return of capital percentage over the long term might indicate that the fund is struggling to generate enough income or gains.
From a tax perspective, the nature of the distributions from MAV is significant. The high percentage of distribution from Net Investment Income is typically taxed at ordinary income rates unless derived from tax-exempt sources, which is a consideration for investors in higher tax brackets. Since MAV is a municipal fund, it's possible that a portion of this income could be exempt from federal income tax, which would be an attractive feature for tax-conscious investors.
Additionally, the absence of Net Realized Capital Gains in the distribution can be favorable from a tax standpoint, as capital gains distributions can lead to capital gains tax liabilities for the investors. However, it's important to note that the fund's strategy and market conditions could change, leading to potential capital gains distributions in the future.
Lastly, the Return of Capital is not immediately taxable. Instead, it reduces the investor's cost basis in the investment, which could result in higher capital gains when the shares are eventually sold. This deferral of taxes can be a strategic advantage, but it requires careful tracking of one's cost basis to accurately report future capital gains.
Distribution Period: |
March 2024 |
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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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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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Notes:
Investors should not necessarily draw any conclusions about the funds' investment performance from the amount of these distributions.
The 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 the fund's investment experience during the remainder of its fiscal year and may be subject to change based on tax regulations. The 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 fund is a closed-end investment company. The fund trades on the New York Stock Exchange (NYSE) under the following symbols: MAV.
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 5,5003 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 12/31/2023
Amundi Distributor US, Inc., Member SIPC
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Source: Amundi US
FAQ
What was the distribution amount per share reported by MAV for March 2024?
What are the sources of distribution mentioned in the PR?
What is the cumulative distribution per share for the fiscal year to date according to the PR?
What percentage of the total distributions for the fiscal year to date comes from Net Investment Income?
What does the breakdown of the distribution sources show in terms of income and capital gains?
