Pioneer Investments Announces Changes to Investment Policies of Pioneer Municipal High Income Trust (MHI)
May 06 2008 - 4:14PM
Business Wire
Pioneer Investments announced today that the Board of Trustees of
Pioneer Municipal High Income Trust (NYSE: MHI) approved changes to
the fund�s investment policies to increase the fund�s ability to
invest in securities that are rated below investment grade. The new
policy is intended to enhance the fund�s investment flexibility and
income potential, consistent with the fund�s investment objectives.
Under the new policy, up to 60% of the fund�s portfolio of
municipal securities may be rated below investment grade at the
time of acquisition (that is, �Ba� or lower by Moody�s Investors
Service, Inc. (�Moody�s�) or �BB� or lower by Standard & Poor�s
Ratings Group (�S&P�)). This percentage previously was no more
than 50%. In addition, the fund�s policy of maintaining a
dollar-weighted average credit rating of at least investment grade
has been eliminated to allow for utilization of the new 60% policy.
Consistent with the new 60% policy, at least 40% of the fund�s
portfolio of municipal securities will be rated investment grade at
the time of acquisition (that is, at least �Baa� by Moody�s or
�BBB� by S&P) or, if unrated, determined by the fund�s
investment adviser to be of comparable credit quality. Pioneer
Investments believes that a higher exposure to below investment
grade municipal securities, upon careful consideration of the risks
that these securities may present, may enable the fund to
capitalize on the yield advantage of lower rated municipal
securities over higher rated securities in current and future
environments and thereby enhance the fund�s income potential and
overall performance. This change also may align the fund more
closely with its peers from an income perspective over time. The
fund is a closed-end investment company and trades on the New York
Stock Exchange (NYSE) under the symbol MHI. Pioneer Investment
Management, Inc. is the fund�s investment adviser. Keep in mind,
dividends are not guaranteed. 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 net asset values. Net Asset Value
(NAV) is total assets less total liabilities divided by the number
of common shares outstanding. For performance data on Pioneer's
closed-end funds, please call 800-225-6292 or visit our closed-end
pricing page. 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." The fund may invest in municipal
securities the interest income on which is a preference item for
purposes of the alternative minimum tax. �Pioneer Investment
Management, Inc. Member of the UniCredito Italiano Banking Group,
Register of Banking Groups
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