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Morningstar, Inc. Commentaries

CEF Weekly Update

Feb 18, 2014
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Leverage Refinancing

Pioneer High Income (PHT) announced last Tuesday that it plans to redeem all of its outstanding auction-rate preferred shares at par, totaling about $150 million. The board of directors plans to finance the redemption with the authorization of a third-party debt facility. The refinancing will be completed March 18, 2014. Considering that alternative forms of leverage financing are typically more expensive than ARPS, investors should expect an increase in the fund's total expense ratio.

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Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individuals, financial advisors, and institutions.

Morningstar provides data on more than 385,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 8 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services and has approximately $195 billion in assets under advisement or management as of Sept. 30, 2012. We have operations in 27 countries.