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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21448
Pioneer Municipal and Equity Income Trust
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: November 30
Date of reporting period: February 29, 2008
Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (239.24 and 274.5 of this
chapter), to file reports with the Commission, not later than 60 days after
close of the first and third fiscal quarters, pursuant to Rule 30b1-5under
the Investment Company Act of 1940 (17 CFR 270.30b-5). The Commission may
use the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-Q
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. Schedule of Investments.
Pioneer Municipal and Equity Income Trust
SCHEDULE OF INVESTMENTS 2/29/08 (unaudited)
Principal
Amount($) Value
TAX EXEMPT OBLIGATIONS - 78.9% of Net Assets
Alabama - 1.4%
5,000,000 Huntsville-Redstone Village Special Care Facilities Fina $4,025,550
1,500,000 Sylacauga Health Care Authority Revenue, 6.0%, 8/1/35 1,318,095
5,343,645
Arizona - 1.1%
1,000,000 Maricopa County Hospital Revenue, 5.0%, 4/1/35 838,840
470,000 + Pima County Industrial Development Authority, 6.375%, 7/ 533,544
530,000 Pima County Industrial Development Authority, 6.375%, 7/ 507,645
989,000 Pima County Industrial Development Authority, 6.75%, 7/1 990,048
1,000,000+ Pima County Industrial Development Authority, 7.5%, 7/1/ 1,174,520
4,044,597
California - 5.0%
1,000,000 California Health Facilities Authority Revenue, 5.25%, 7 974,240
9,000,000 Golden State Tobacco Securitization Corp., 5.125%, 6/1/4 7,218,090
4,000,000+ Golden State Tobacco Securitization Corp., 6.75%, 6/1/39 4,547,880
9,655,000(a)Golden State Tobacco Securitization Corp., RIB, 8.463%, 5,892,157
18,632,367
Colorado - 0.7%
3,000,000 Colorado Educational & Cultural Facilities Authority Rev 2,503,920
Connecticut - 1.0%
1,500,000 Mohegan Tribe Indians Gaming Authority, 5.25%, 1/1/33 (1 1,216,770
2,470,000 Mohegan Tribe Indians Gaming Authority, 6.25%, 1/1/31 (1 2,309,524
3,526,294
District of Columbia - 1.1%
4,000,000 District of Columbia Tobacco Settlement Financing Corp., 4,021,200
Florida - 4.2%
1,105,000 Highlands County Health Facilities Authority Revenue, 5. 1,038,125
5,000,000+ Highlands County Health Facilities Authority Revenue, 6. 5,534,350
2,000,000 Lee County Industrial Development Authority Revenue, 5.3 1,544,780
585,000 Madison County First Mortgage Revenue, 6.0%, 7/1/25 539,429
2,025,000 Miami Beach Health Facilities Authority Revenue, 5.375%, 1,697,780
500,000 Miami Beach Health Facilities Authority Revenue, 6.7%, 1 503,895
1,400,000 Orange County Health Facilities Authority Revenue, 5.5%, 1,141,532
3,970,000(a)Tampa-Hillsborough County Expressway Authority Revenue, 3,493,243
15,493,134
Georgia - 3.7%
9,580,000(a)Georgia Municipal Electric Authority Power Revenue,RIB, 11,111,171
2,500,000+ Milledgeville-Baldwin County Development Authority Reven 2,801,850
13,913,021
Illinois - 4.6%
3,000,000 Chicago Illinois General Obligation, 5.0%, 1/1/28 2,890,140
4,580,000 Illinois Development Finance Authority Revenue, 5.25%, 1 4,446,539
5,000,000 Illinois Educational Facilities Authority Revenue, 5.0%, 4,694,050
2,000,000+ Illinois Finance Authority Revenue, 5.5%, 8/15/43 2,210,380
2,055,000(a)Illinois Finance Authority Revenue, RIB, 11.196%,8/15/4 2,789,971
17,031,080
Indiana - 2.8%
5,000,000 Indiana Health & Educational Facilites Financing Authori 4,275,350
4,135,000 Indiana State Development Finance Authority Revenue, 5.7 4,079,591
2,570,000 Vigo County Hospital Authority Revenue, 5.8%, 9/1/47 (14 2,185,965
10,540,906
Iowa - 0.9%
4,000,000 Iowa Financing Authority Senior Housing Revenue, 5.625%, 3,213,840
Kansas - 0.6%
750,000 Manhattan Health Care Facilities Revenue, 5.125%, 5/15/3 596,925
2,000,000 Manhattan Health Care Facilities Revenue, 5.125%, 5/15/4 1,568,000
2,164,925
Louisiana - 3.3%
5,000,000 Louisiana Public Facilities Authority Revenue, 5.5%, 5/1 4,515,450
8,335,000 Tobacco Settlement Financing Corp., 5.875%, 5/15/39 7,693,455
12,208,905
Maryland - 1.9%
3,000,000 Frederick County Educational Facilities Revenue, 5.625%, 2,688,030
1,000,000 Maryland State Economic Development Revenue, Series A, 5 950,200
660,000 Maryland State Economic Development Revenue, Series B, 5 627,132
1,000,000 Maryland State Economic Development Revenue, 5.0%, 12/1/ 805,750
2,000,000+ Maryland State Health & Higher Educational Facilities Au 2,163,140
7,234,252
Massachusetts - 4.5%
4,500,000 Massachusetts Health & Educational Facilities Authority 3,880,890
2,000,000 Massachusetts Health & Educational Facilities Authority 1,919,420
1,550,000 Massachusetts Health & Educational Facilities Authority 1,485,272
1,600,000 Massachusetts Health & Educational Facilities Authority 1,519,856
2,120,000 Massachusetts Health & Educational Facilities Authority 2,003,527
900,000 Massachusetts Health & Educational Facilities Authority 891,513
2,750,000 Massachusetts Health & Educational Facilities Authority 2,793,147
500,000 Massachusetts State Development Finance Agency, 5.5%, 1/ 412,830
1,100,000 Massachusetts State Development Finance Agency, 5.625%, 1,071,609
1,000,000 Massachusetts State Development Finance Agency, 5.7%, 10 930,290
16,908,354
Michigan - 3.0%
5,000,000 Macomb County Hospital Finance Authority Revenue, 5.875% 4,514,200
1,595,000 Meridian Economic Development Corporate Ltd. Obligation 1,401,654
3,340,000 Michigan Public Educational Facilities Authority Revenue 2,799,688
2,000,000 Michigan State Hospital Finance Authority Revenue, 5.25% 1,678,860
1,000,000 Michigan State Hospital Finance Authority Revenue, 5.5%, 825,830
11,220,232
Minnesota - 1.4%
2,000,000 Duluth Economic Development Authority Health Care Facili 1,879,860
1,500,000 Duluth Economic Development Authority Health Care Facili 1,369,770
1,000,000 North Oaks Senior Housing Revenue, 6.0%, 10/1/33 923,960
1,000,000 North Oaks Senior Housing Revenue, 6.5%, 10/1/47 977,690
5,151,280
Missouri - 0.4%
1,720,000 Missouri State Health & Educational Authority Health Fac 1,607,478
Montana - 0.3%
1,000,000 Montana Finance Authority Hospital Facilities Revenue, 5 941,520
Nevada - 0.4%
1,500,000 Henderson Nevada Health Care Facilities Revenue, 5.625%, 1,504,230
New Hampshire - 0.7%
1,700,000+ New Hampshire Business Finance Authority Revenue, 6.05%, 1,777,384
1,000,000 New Hampshire Health & Education Facilities Authority Re 985,970
2,763,354
New Jersey - 5.9%
1,250,000 Camden County Improvement Authority Revenue, 5.75%, 2/15 1,123,075
5,920,000(a)Garden State Preservation Trust, RIB, 12.487%, 11/1/22 7,194,221
710,000 New Jersey Economic Development Authority Revenue, 5.75% 642,443
1,000,000 New Jersey Economic Development Authority Revenue, 5.875 869,330
1,000,000 New Jersey Health Care Facilities Financing Authority Re 927,920
5,000,000 New Jersey Health Care Facilities Financing Authority Re 4,487,550
3,500,000 New Jersey Health Care Facilities Financing Authority Re 3,302,215
3,000,000+ Tobacco Settlement Financing Corp., 6.25%, 6/1/43 3,391,500
21,938,254
New Mexico - 0.6%
1,000,000 Dona Ana County PILT Revenue, 5.25%, 12/1/25 955,440
1,500,000 Farmington New Mexico Hospital Revenue, 5.0%, 6/1/23 1,349,925
2,305,365
New York - 6.4%
2,500,000 Albany Industrial Development Agency Civic Facilities Re 2,224,500
2,000,000 Dutchess County Industrial Development Agency Revenue, 7 2,090,800
3,255,000(a)Lehman Municipal Trust Receipts, RIB, 9.103%, 6/15/38 2,770,949
1,700,000 Nassau County Industrial Development Agency, 6.7%, 1/1/4 1,626,747
1,000,000 New York City Industrial Development Agency, 5.0%, 7/1/2 980,500
1,000,000 New York City Industrial Development Agency, 5.25%, 7/1/ 1,010,120
5,000,000 Port Authority of New York & New Jersey Revenue, 5.0%, 9 4,752,600
1,000,000 Suffolk County Industrial Development Agency Civic Facil 805,710
4,900,000 Triborough Bridge & Tunnel Authority, 5.25%, 11/15/30 4,899,608
3,000,000 Ulster County Industrial Development Agency Civic Facili 2,697,690
23,859,224
North Carolina - 0.7%
1,000,000 North Carolina Capital Facilities Finance Agency Student 919,810
1,000,000 North Carolina Capital Facilities Finance Agency Student 884,600
1,000,000 North Carolina Medical Care Commission Health Care Facil 914,440
2,718,850
Ohio - 1.0%
1,500,000 Cuyahoga County Health Care & Independent Living Facilit 1,312,575
1,500,000 Cuyahoga County Health Care & Independent Living Facilit 1,300,710
1,000,000 Hamilton County Hospital Facilities Revenue, 5.125%, 5/1 930,300
3,543,585
Oregon - 0.8%
2,935,000 Oregon State Housing & Community Services Department Mul 2,936,966
Pennsylvania - 3.0%
5,000,000+ Pennsylvania State Turnpike Commission Oil Franchise Tax 5,390,900
1,315,000+ Sayre Health Care Facilities Authority Revenue, 5.875%, 1,442,792
685,000 Sayre Health Care Facilities Authority Revenue, 5.875%, 685,767
280,000 Scranton-Lackawanna Health and Welfare Authority Hospita 279,723
700,000 Scranton-Lackawanna Health and Welfare Authority Hospita 698,243
460,000 Scranton-Lackawanna Health and Welfare Authority Hospita 458,077
2,165,000 Swarthmore Borough Authority College Revenue, 5.0%, 9/15 2,078,162
11,033,664
Puerto Rico - 1.2%
75,000 + Puerto Rico Public Buildings Authority Revenue, 5.25%, 7 81,159
4,925,000 Puerto Rico Public Buildings Authority Revenue, 5.25%, 7 4,548,878
4,630,037
Rhode Island - 1.2%
1,640,000 Tobacco Settlement Financing Corp., 6.125%, 6/1/32 1,576,630
3,100,000 Tobacco Settlement Financing Corp., 6.25%, 6/1/42 2,932,972
4,509,602
South Carolina - 4.0%
4,000,000 Berkeley County School District Installment Lease, 5.0%, 3,629,760
5,000,000 Florence County Hospital Revenue, 5.25%, 11/1/34 4,812,250
3,500,000+ Lexington County Health Services District, Inc., Hospita 3,842,580
540,000 + South Carolina Jobs Economic Development Authority Reven 588,535
1,960,000 South Carolina Jobs Economic Development Authority Reven 1,947,613
14,820,738
Tennessee - 0.7%
2,500,000 Knox County Health Educational & Housing Facilities Boar 2,512,700
Texas - 4.6%
1,552,000 Houston Housing Financing Corp., 6.25%, 9/20/31 1,558,037
2,750,000 Lower Colorado River Authority, 5.0%, 5/15/31 2,629,743
1,711,000 Panhandle Regional Housing Finance Corp., 6.6%, 7/20/31 1,744,878
3,000,000 Richardson Hospital Authority, 6.0%, 12/1/34 2,814,150
1,000,000 Seguin Higher Education Facilities Corp. Revenue, 5.0%, 919,860
1,500,000 Texas State Student Housing Revenue, 6.5%, 9/1/34 1,479,480
3,000,000 Willacy County Local Government Corp. Revenue, 6.0%, 9/1 2,972,820
3,000,000 Willacy County Local Government Corp. Revenue, 6.875%, 9 2,867,310
16,986,278
Vermont - 1.1%
3,750,000(a)Lehman Municipal Trust Receipts, RIB, 10.718%, 10/31/46 2,706,150
1,295,000 Vermont Educational & Health Buildings Financing Agency 1,207,173
3,913,323
Virginia - 1.3%
1,500,000 Prince William County Industrial Development Hospital Re 1,414,635
3,925,000 Prince William County Industrial Development Hospital Re 3,607,036
5,021,671
Washington - 2.6%
3,000,000 King County Washington Sewer Revenue, 5.0%, 1/1/35 2,794,590
7,000,000 Tobacco Settlement Authority Revenue, 6.625%, 6/1/32 7,006,720
9,801,310
Wisconsin - 0.8%
3,500,000 Wisconsin State Health & Educational Facilities Authorit 3,149,440
TOTAL TAX-EXEMPT OBLIGATIONS
(Cost $311,894,811) (b) 293,649,541
Shares
COMMON STOCKS - 37.5% of Net Assets
Energy - 1.5%
Oil & Gas Drilling - 0.6%
19,566 Diamond Offshore Drilling, Inc. 2,364,160
Oil & Gas Storage & Transportation - 0.9%
142,876 Spectra Energy Corp. 3,301,864
Total Energy 5,666,024
Materials - 0.5%
Diversified Chemicals - 0.5%
94,000 Olin Corp. 1,806,680
Total Materials 1,806,680
Commercial Services & Supplies - 0.8%
Commercial Printing - 0.7%
79,034 R.R. Donnelley & Sons Co. 2,515,652
Office Services & Supplies - 0.1%
31,486 Kimball International, Inc. 329,029
Total Commercial Services & Supplies 2,844,681
Consumer Durables & Apparel - 0.1%
Home Furnishings - 0.1%
50,000 Bassett Furniture Industries, Inc. 587,000
Total Consumer Durables & Apparel 587,000
Media - 1.5%
Movies & Entertainment - 1.1%
206,487 Regal Entertainment Group 4,073,988
Publishing - 0.4%
295,935 Idearc, Inc. 1,426,407
Total Media 5,500,395
Food, Beverage & Tobacco - 8.8%
Packaged Foods & Meats - 2.2%
532,758 B&G Foods, Inc. 5,295,614
92,828 Kraft Foods, Inc. 2,893,449
8,189,063
Tobacco - 6.6%
134,140 Altria Group, Inc. 9,811,000
172,872 Loews Corp. - Carolina Group 13,015,533
29,704 Reynolds American, Inc. 1,892,739
24,719,272
Total Food, Beverage & Tobacco 32,908,335
Pharmaceuticals, Biotechnology & Life Sciences - 4.6%
Pharmaceuticals - 4.6%
329,758 Bristol-Myers Squibb Co. 7,455,828
216,536 Merck & Co., Inc. 9,592,545
Total Pharmaceuticals, Biotechnology & Life Sciences 17,048,373
Banks - 1.6%
Diversified Banks - 0.2%
28,642 Wachovia Corp. 877,018
Regional Banks - 0.9%
81,550 KeyCorp 1,798,178
67,800 Regions Financial Corp. 1,437,360
3,235,538
Thrifts & Mortgage Finance - 0.5%
222,700 TrustCo Bank Corp., NY 1,926,355
Total Banks 6,038,911
Diversified Financials - 0.5%
Other Diversified Financial Services - 0.5%
42,500 Bank of America Corp. 1,688,950
Total Diversified Financials 1,688,950
Telecommunication Services - 9.8%
Integrated Telecommunication Services - 9.8%
187,900 AT&T, Inc. 6,544,557
529,946 Citizens Communications Co. 5,691,620
406,745 Verizon Communications, Inc. 14,772,978
790,184 Windstream Corp. 9,292,564
Total Telecommunication Services 36,301,719
Utilities - 7.8%
Electric Utilities - 0.7%
138,400 Empire District Electric Co. 2,838,584
Gas Utilities - 3.5%
81,249 AGL Resources, Inc. 2,817,715
395,466 Atmos Energy Corp. 10,282,116
13,099,831
Multi-Utilities - 3.6%
100,000 Consolidated Edison, Inc. 4,089,000
285,753 Duke Energy Corp. 5,012,108
134,112 NSTAR 4,144,061
13,245,169
Total Utilities 29,183,584
TOTAL COMMON STOCKS
(Cost $134,909,957) 139,574,652
NON-CONVERTIBLE PREFERRED STOCKS - 26.7% of Net Assets
Energy - 1.1%
Oil & Gas Exploration & Production- 1.1%
49,300 Apache Corp., Series B, 5.68% 4,242,881
Total Energy 4,242,881
Automobiles & Components - 1.2%
Automobile Manufacturers - 1.2%
126,542 Ford Motor Co. Capital Trust II, 6.5% 4,180,857
Total Automobiles & Components 4,180,857
Banks - 6.9%
Diversified Banks - 3.8%
105,000 Bank One Capital VI, 7.2% 2,593,766
120,000 Barclays Bank Plc, Series 2, 6.625% 2,947,200
120,000 HSBC Holdings Plc, Series A, 6.2%, 2,709,600
170,579 Royal Bank of Scotland Group Plc, Series Q, 6.75% 4,245,711
71,000 Wachovia Preferred Funding Corp., Series A, 7.25% 1,764,350
14,260,627
Thrifts & Mortgage Finance - 3.1%
56,980 Countrywide Capital V, 7.0% 973,163
171,677 Fannie Mae, Series N, 6.75% 4,082,479
57,000 Freddie Mac, 5.81% 2,422,500
39,000 Freddie Mac, Series F, 5.0% 1,472,250
58,000 Freddie Mac, Series K, 5.79% 2,436,000
11,386,392
Total Banks 25,647,019
Diversified Financials - 7.2%
Other Diversified Financial Services - 2.8%
49,000 ABN Amro Capital Fund Trust VII, 6.08% 1,095,150
120,000 Bank of America Corp., Series D, 6.204% 2,719,200
120,000 Deustche Bank Capital Funding Trust VIII, 6.375% 2,932,500
150,000 JPMorgan Chase Capital Trust XVI, 6.35% 3,556,500
10,303,350
Consumer Finance - 1.0%
18,000 MBNA Capital, Series D, 8.125% 449,373
71,300 SLM Holdings Corp., Series A, 6.97% 3,362,508
3,811,881
Investment Banking & Brokerage - 3.4%
57,000 Bear Stearns Companies, Inc., Series F, 5.72% 2,309,070
40,000 Bear Stearns Companies, Inc., Series G, 5.49% 1,560,000
100,000 Lehman Brothers Holdings, Inc., 6.5% 2,270,000
19,000 Lehman Brothers Holdings, Inc., Series C, 5.94% 804,650
50,800 Lehman Brothers Holdings, Inc., Series D, 5.67% 2,131,060
65,000 Merrill Lynch Preferred Capital Trust IV, 7.12% 1,579,293
87,000 Merrill Lynch Preferred Capital Trust V, 7.28% 2,113,230
12,767,303
Total Diversified Financials 26,882,534
Insurance - 3.4%
Life & Health Insurance - 0.4%
159,000 Scottish Re Group, Ltd., 7.25% 1,590,000
Property & Casualty Insurance 2.1%
160,000 ACE, Ltd., Series C, 7.8% 3,996,800
161,000 Berkley W.R. Capital Trust II, 6.75% 3,706,119
7,702,919
Reinsurance - 0.9%
158,000 RenaissanceRE Holdings, Ltd., Series D, 6.6% 3,476,000
Total Insurance 12,768,919
Real Estate - 3.1%
Diversification Real Estate Investment Trust - 0.9%
32,440 PS Business Parks, Inc., Series I, 6.875% 697,785
13,000 PS Business Parks, Inc., Series L, 7.6% 300,040
119,200 PS Business Parks, Inc., Series P, 6.7% 2,491,280
3,489,105
Industrial Real Estate Investment Trust - 0.3%
40,000 Prologis Trust, Series G, 6.75% 940,400
Office Real Estate Investment Trust - 0.3%
15,000 Brandywine Realty Trust, Series C, 7.5% 323,550
34,500 Brandywine Realty Trust, Series D, 7.375% 730,020
1,053,570
Retail Real Estate Investment Trust - 0.9%
94,000 Regency Centers Corp., Series C , 7.45% 2,232,500
53,500 Regency Centers Corp., Series E, 6.7% 1,145,970
3,378,470
Specialized Real Estate Investment Trust - 0.7%
118,000 Public Storage, Inc., Series L, 6.75% 2,677,420
Total Real Estate 11,538,965
Utilities - 3.8%
Electric Utilities - 3.4%
98,000 Alabama Power Co., 5.3% 2,198,140
113,000 Alabama Power Co., 5.83% 2,719,910
78,000 Interstate Power and Light Co., Series B, 8.375% 2,303,340
40,000 Mississippi Power Co., 5.25% 986,000
7,700 PPL Electric Utilities Corp., 4.5% 619,850
73,000 Southern California Edison Co., 4.32% 1,441,750
94,000 Virginia Power Capital Trust II, 7.375% 2,357,800
12,626,790
Gas Utilities - 0.4%
62,000 Southern Union Co., Series C, 7.55% 1,562,400
Total Utilities 14,189,190
TOTAL NON-CONVERTIBLE PREFERRED STOCKS
(Cost $111,664,059) 99,450,365
CONVERTIBLE PREFERRED STOCKS - 3.0% of Net Assets
Capital Goods - 0.6%
Aerospace & Defense - 0.6%
15,000 Northrop Grumman Corp., 7.0% 2,147,700
Total Capital Goods 2,147,700
Commercial Services & Supplies - 0.8%
Office Services & Supplies - 0.8%
60,000 Avery Dennison Corp., 7.875% 3,066,000
Total Commercial Services & Supplies 3,066,000
Diversified Financials - 1.4%
Other Diversified Financial Services - 1.4%
161,000 Lazard, Ltd., 6.625% 5,172,930
Total Diversified Financials 5,172,930
Insurance - 0.2%
Property & Casualty Insurance - 0.2%
47,919 XL Capital, Ltd., Class A, 7.0% 682,846
Total Insurance 682,846
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $10,175,221) 11,069,476
TAX-EXEMPT MONEY MARKET MUTUAL FUND - 0.1% of Net Assets
405,000 BlackRock Liquidity Funds MuniFund Portfolio 405,000
TOTAL TAX-EXEMPT MONEY MARKET MUTUAL FUND
(Cost $405,000) 405,000
TOTAL INVESTMENTS IN SECURITIES - 146.2%
(Cost $569,049,048) (c) $544,149,034
OTHER ASSETS AND LIABILITIES 1.2% 4,497,171
PREFERRED SHARES AT REDEMPTION VALUE,
INCLUDING DIVIDENDS PAYABLE - (47.4%) (176,414,160)
NET ASSETS APPLICABLE TO COMMON SHAREOWNERS - 100.0% $372,232,045
Portfolio Abbreviations
RIB Residual Interest Bonds
(144A) Security is exempt from registration under Rule 144A of the
Securities Act of 1933. Such securities may be resold
normally to qualified institutional buyers in a transaction
exempt from registration. At February 29, 2008, the value of
these securities amounted $44,979,751, or 12.1% of
total net assets.
+ Prerefunded bonds have been collateralized by U.S. Treasury
securities or U.S. Government Agencies, which are held in
escrow to pay interest and principal on the tax exempt issue
and to retire the bonds in full at the earliest refunding date.
(a) The interest rate is subject to change periodically and inversely
based upon prevailing market rates. The interest rate shown
is the rate at February 29, 2008.
(b) The concentration of tax-exempt investments by type
of obligation/market sector is as follows:
Insured 20.0%
General Obligation 3.5
Revenue Bonds:
Health Revenue 31.9
Tobacco Revenue 17.0
Development Revenue 10.1
Education Revenue 6.6
Housing Revenue 3.7
Facilities Revenue 3.1
Transportation Revenue 1.6
Gaming Revenue 1.2
School District Revenue 1.2
Other Revenue 0.1
100.0%
(c) At February 29, 2008, the net unrealized loss on investments
based on cost for federal income tax purposes
of $568,812,984 was as follows:
Aggregate gross unrealized gain for all investments in $25,325,590
which there is an excess of value over tax cost
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (49,989,540)
Net unrealized loss ($24,663,950)
For financial reporting purposes net unrealized loss
on investments was $24,900,014 and cost of
investments aggregated $569,049,048.
FAS 157 Footnote Disclosures
Various inputs are used in determining the value of the Fund's
investments. These inputs are summarized in the three broad
levels listed below.
Highest priority is given to Level 1 inputs and lowest priority
is given to Level 3.
Level 1 - quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds,
credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's
own assumptions in determining fair value of investments)
The following is a summary of the inputs used as of February 29,
2008, in valuing the Fund's assets:
Other
Investments Financial
Valuation Inputs in Securities Instruments
Level 1 - Quoted Prices $242,919,111
Level 2 - Other Significant Observable Inputs $301,229,923 ($1,240,178)
Level 3 - Significant Unobservable Inputs
Total $544,149,034 ($1,240,178)
ITEM 2. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph, based on their
evaluation of these controls and procedures required by Rule 30a-3(b)
under the Act (17 CFR270.30a-3(b))) and Rule 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer and principal financial officer
have concluded that the registrant's disclosure controls and procedures are
effective based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of this report.
(b) Disclose any change in the registrant's internal controls over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR270.30a-3(d))
that occurred during the registrant's last fiscal quarter that has materially
affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
There were no significant changes in the registrant's internal control over
financial reporting that occurred during the second fiscal quarter of the
period covered by this report that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control
over financial reporting.
ITEM 3. EXHIBITS.
(a) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Municipal and Equity Income Trust
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date April 29, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date April 29, 2008
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date April 29, 2008
* Print the name and title of each signing officer under his or her signature.