UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-06416
DTF Tax-Free Income Inc.
(Exact name of registrant as specified in charter)
200 South Wacker Drive, Suite 500, Chicago, Illinois 60606
(Address of principal executive offices) (Zip code)
Alan M. Meder | Lawrence R. Hamilton, Esq. | |
DTF Tax-Free Income Inc. | Mayer Brown LLP | |
200 South Wacker Drive, Suite 500 | 71 South Wacker Drive | |
Chicago, Illinois 60606 | Chicago, Illinois 60606 |
(Name and address of agents for service)
Registrant’s telephone number, including area code: (800) 338-8214
Date of fiscal year end: October 31
Date of reporting period: January 31, 2014
Item 1 – Schedule of Investments
See the Statement of Net Assets below.
DTF TAX-FREE INCOME INC.
STATEMENT OF NET ASSETS
January 31, 2014
(Unaudited)
Principal Amount (000) |
Description (a) | Value (Note 1) |
||||||
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|
|
|
|
||||
LONG-TERM INVESTMENTS - 144.4% | ||||||||
Arizona - 3.9% | ||||||||
$ 2,000 | Arizona St. Trans. Brd. Hwy. Rev., | |||||||
5.00%, 7/1/30, Ser. B |
$ | 2,179,400 | ||||||
1,000 | Northern Arizona University Speed Rev. | |||||||
Stimulus Plan Econ. Edl. Dev., |
||||||||
5.00%, 8/1/38 |
1,044,600 | |||||||
2,000 | Salt River Proj. Agric. Impvt. & Pwr. | |||||||
Dist. Elec. Sys. Rev., |
||||||||
5.00%, 1/1/38, Ser. A |
2,133,320 | |||||||
|
|
|||||||
5,357,320 | ||||||||
|
|
|||||||
California - 20.0% | ||||||||
2,000 | Bay Area Toll Auth. Rev., | |||||||
5.125%, 4/1/39, Ser. F-1 |
2,164,860 | |||||||
500 | California St. Gen. Oblig., | |||||||
5.50%, 3/1/26 |
565,530 | |||||||
1,000 | California St. Gen. Oblig., | |||||||
6.00%, 4/1/38 |
1,147,190 | |||||||
500 | California St. Gen. Oblig., | |||||||
5.50%, 3/1/40 |
550,610 | |||||||
2,000 | California St. Pub. Wks. Brd. Lease Rev. | |||||||
Dept. of Corrections and Rehab., |
||||||||
5.250%, 9/1/29, Ser. F |
2,215,800 | |||||||
2,000 | California Statewide Communities | |||||||
Dev. Auth. Rev., |
||||||||
5.75%, 7/1/47, FGIC |
2,209,760 | |||||||
545 | Fresno Swr. Rev., | |||||||
6.25%, 9/1/14, Ser. A-1, AMBAC |
561,519 | |||||||
3,000 | Golden State Tobacco Securitization Corp. Rev., | |||||||
5.75%, 6/1/47, Ser. A-1 |
2,359,800 | |||||||
500 | Imperial Irrigation Dist. Elec. Sys. Rev., | |||||||
5.00%, 11/1/36, Ser. B |
524,165 | |||||||
1,000 | Manteca Wtr. Ref. Rev., | |||||||
5.00%, 7/1/33 |
1,059,830 | |||||||
2,500 | Riverside Cnty. Sngl. Fam. Rev., | |||||||
7.80%, 5/1/21, Ser. A, |
||||||||
Escrowed to maturity (b) |
3,413,000 | |||||||
500 | Sacramento Area Flood Control Agency | |||||||
Consol. Capital Assessment Dist. Bonds, |
||||||||
5.00%, 10/1/37 |
527,670 | |||||||
7,840 | San Bernardino Cnty. Res. Mtge. Rev., | |||||||
9.60%, 9/1/15, Escrowed to maturity (b) |
8,998,674 | |||||||
1,040 | Saratoga Unified Sch. Dist. Gen. Oblig., | |||||||
Zero Coupon, 9/1/20, Ser. A, NRE |
887,858 | |||||||
|
|
|||||||
27,186,266 | ||||||||
|
|
|||||||
Colorado - 0.8% | ||||||||
1,000 | Eagle River Wtr. & Sanitation Dist. | |||||||
Enterprise Wastewater Rev., |
||||||||
5.00%, 12/1/42 |
1,047,940 | |||||||
|
|
|||||||
Connecticut - 3.2% | ||||||||
1,000 | Connecticut St. Hlth. & Edl. Facs. Auth. Rev., | |||||||
5.00%, 7/1/25, Ser. C, RAD |
1,003,480 | |||||||
700 | Connecticut St. Hlth. & Edl. Facs. Auth. Rev., | |||||||
5.00%, 7/1/32, Ser. A |
714,315 | |||||||
1,000 | Connecticut St. Hlth. & Edl. Facs. Auth. Rev., | |||||||
5.00%, 7/1/41, Ser. A |
1,003,650 | |||||||
550 | Connecticut St. Hlth. & Edl. Facs. Auth. Rev. | |||||||
Yale-New Haven Hospital, |
||||||||
5.00%, 7/1/48, Ser. N |
564,943 | |||||||
1,000 | South Central Connecticut Reg. Wtr. Auth. Rev., | |||||||
5.00%, 8/1/41, Ser. 26 |
1,052,330 | |||||||
|
|
|||||||
4,338,718 | ||||||||
|
|
|||||||
District of Columbia - 1.6% | ||||||||
1,000 | District of Columbia Inc. Tax Rev., | |||||||
5.00%, 12/1/31, Ser. A |
1,103,640 | |||||||
1,000 | Metropolitan Washington D.C. Airport Auth. Rev., | |||||||
5.00%, 10/1/18, Ser. A, AGM / AMBAC |
1,125,330 | |||||||
|
|
|||||||
2,228,970 | ||||||||
|
|
|||||||
Florida - 12.6% | ||||||||
1,500 | Broward Cnty. Port Fac. Rev., | |||||||
6.00%, 9/1/23, Ser. A |
1,702,740 | |||||||
1,000 | Escambia Cnty. Hlth. Fac. Auth. Rev., | |||||||
6.00%, 8/15/36 |
1,055,170 |
The accompanying notes are an integral part of this financial statement.
DTF TAX-FREE INCOME INC.
STATEMENT OF NET ASSETS — (Continued)
January 31, 2014
(Unaudited)
Principal Amount (000) |
Description (a) |
Value (Note 1) |
||||||
$ 2,000 | Florida St. Brd. of Ed. Cap. Outlay, | |||||||
5.00%, 6/1/41, Ser. F |
$ | 2,132,460 | ||||||
2,350 | Florida St. Brd. of Gov. Florida State Univ. Dorm Rev., | |||||||
5.00%, 5/1/33, Ser. A |
2,520,657 | |||||||
70 | Highlands Cnty. Hlth. Fac. Auth. Rev., | |||||||
5.125%, 11/15/32, Ser. G, |
||||||||
Prerefunded 11/15/16 @ $100 (b) |
78,887 | |||||||
1,930 | Highlands Cnty. Hlth. Fac. Auth. Rev., | |||||||
5.125%, 11/15/32, Ser. G |
2,014,264 | |||||||
1,975 | JEA Wtr. & Swr. Rev., | |||||||
4.25%, 10/1/41, Ser. A |
1,923,453 | |||||||
250 | Miami-Dade Cnty. Aviation Rev., | |||||||
5.00%, 10/1/32, Ser. A |
254,560 | |||||||
2,000 | Orlando and Orange Cnty. Expwy. Auth. Rev., | |||||||
5.00%, 7/1/35, Ser. A |
2,088,500 | |||||||
1,000 | Reedy Creek Impvt. Dist., | |||||||
5.00%, 6/1/38, Ser. A |
1,044,680 | |||||||
2,000 | Seminole Cnty. Sales Tax Rev., | |||||||
5.25%, 10/1/31, Ser. B, NRE |
2,286,980 | |||||||
|
|
|||||||
17,102,351 | ||||||||
|
|
|||||||
Georgia - 5.9% | ||||||||
2,000 | Fulton Cnty. Sch. Dist. Gen. Oblig., | |||||||
5.375%, 1/1/16 |
2,191,000 | |||||||
3,195 | Georgia Mun. Elec. Auth. Pwr. Rev., | |||||||
6.50%, 1/1/20, Ser. X, AMBAC |
3,700,705 | |||||||
2,000 | Metro. Atlanta Rapid Tran. Auth. Rev., | |||||||
5.00%, 7/1/39, Ser. 3 |
2,094,480 | |||||||
|
|
|||||||
7,986,185 | ||||||||
|
|
|||||||
Illinois - 8.4% | ||||||||
500 | Chicago Multi-Family Hsg. Rev., | |||||||
4.90%, 3/20/44, FHA |
493,760 | |||||||
1,000 | Chicago O’Hare Intl. Arpt. Rev. | |||||||
Customer Fac. Charge, |
||||||||
5.125%, 1/1/30, Senior Lien, AGM |
1,046,200 | |||||||
500 | Chicago Wastewater Transmission Rev., | |||||||
4.00%, 1/1/42, 2nd Lien |
419,230 | |||||||
2,000 | Chicago Wastewater Transmission Rev., | |||||||
5.00%, 1/1/42, 2nd Lien |
2,010,300 | |||||||
1,000 | Illinois Fin. Auth. Ed. Rev., | |||||||
5.375%, 9/1/32, Ser. C, |
||||||||
Prerefunded 9/1/17 @ $100 (b) |
1,167,320 | |||||||
1,000 | Illinois Fin. Auth. Rev., | |||||||
6.00%, 8/15/38, Ser. A |
1,046,780 | |||||||
200 | Illinois Fin. Auth. Rev. | |||||||
Northwestern Memorial HealthCare, |
||||||||
5.00%, 8/15/37 |
205,592 | |||||||
2,000 | Illinois St. Gen. Oblig., | |||||||
5.50%, 1/1/29 |
2,234,040 | |||||||
1,500 | Illinois St. Toll Hwy. Auth. Rev., | |||||||
5.50%, 1/1/33, Ser. B |
1,628,895 | |||||||
1,000 | Railsplitter Tobacco Settlement Auth. Rev., | |||||||
6.00%, 6/1/28 |
1,109,200 | |||||||
|
|
|||||||
11,361,317 | ||||||||
|
|
|||||||
Indiana - 3.1% | ||||||||
820 | Indiana Fin. Auth. Hospital Rev., | |||||||
5.875%, 5/1/29, Ser. A, |
||||||||
Econ Defeased to Call 5/1/14 @ $100 (b) |
831,644 | |||||||
180 | Indiana Fin. Auth. Hospital Rev., | |||||||
5.875%, 5/1/29, Ser. A |
180,733 |
The accompanying notes are an integral part of this financial statement.
DTF TAX-FREE INCOME INC.
STATEMENT OF NET ASSETS — (Continued)
January 31, 2014
(Unaudited)
Principal Amount (000) |
Description (a) |
Value (Note 1) |
||||||
$ 1,000 | Indiana St. Fin. Auth. Rev. Revolving Fund, | |||||||
5.00%, 2/1/31, Ser. B |
$ | 1,096,970 | ||||||
2,000 | Indianapolis Local Pub. Impvt. | |||||||
Bond Bank Rev., |
||||||||
5.00%, 2/1/38, Ser. A |
2,133,640 | |||||||
|
|
|||||||
4,242,987 | ||||||||
|
|
|||||||
Louisiana - 5.1% | ||||||||
1,000 | Louisiana St. Gasoline & Fuels Tax Rev., | |||||||
5.00%, 5/1/41, Ser. A, NRE |
1,055,280 | |||||||
1,250 | Louisiana Stadium & Exposition Dist., | |||||||
5.00%, 7/1/30, Ser. A |
1,328,075 | |||||||
500 | Louisiana Stadium & Exposition Dist., | |||||||
5.00%, 7/1/36, Ser. A |
515,510 | |||||||
250 | Louisiana St. Tran. Auth. Ref. Rev., | |||||||
5.00%, 8/15/38, Ser. A |
265,582 | |||||||
500 | Board of Commissioners of The Port of New Orleans | |||||||
Port Fac. Ref. Rev., |
||||||||
5.00%, 4/1/33, Ser. B |
501,060 | |||||||
1,100 | Regional Tran. Auth. Louisiana Sales Tax Rev., | |||||||
5.00%, 12/1/30, AGM |
1,175,317 | |||||||
1,000 | Terrebonne Levee & Consv. Dist. | |||||||
Pub. Impvt. Sales Tax Rev., |
||||||||
5.00%, 7/1/38, Ser. A |
1,048,960 | |||||||
1,000 | Terrebonne Parish Waterworks Consol. Dist. No. 1, | |||||||
5.00%, 11/1/37, Ser. A |
1,034,300 | |||||||
|
|
|||||||
6,924,084 | ||||||||
|
|
|||||||
Maine - 2.0% | ||||||||
500 | Maine St. Hlth. & Hgr. Edl. Facs. Auth. Rev., | |||||||
5.00%, 7/1/43 |
481,350 | |||||||
1,000 | Maine St. Hlth. & Hgr. Edl. Facs. Auth. Rev., | |||||||
5.00%, 7/1/33, Ser. A |
1,044,250 | |||||||
610 | City of Portland, General Arpt. Rev., | |||||||
5.00%, 7/1/31 |
628,452 | |||||||
540 | City of Portland, General Arpt. Rev., | |||||||
5.00%, 7/1/32 |
553,846 | |||||||
|
|
|||||||
2,707,898 | ||||||||
|
|
|||||||
Maryland - 1.6% | ||||||||
2,000 | Maryland St. Trans. Auth. Rev., | |||||||
5.00%, 7/1/37, AGM |
2,137,740 | |||||||
|
|
|||||||
Massachusetts - 6.4% | ||||||||
3,000 | Massachusetts Bay Trans. Auth. Rev., | |||||||
5.50%, 7/1/29, Ser. B, NRE |
3,645,870 | |||||||
2,000 | Massachusetts St. College Bldg. Auth. Rev., | |||||||
5.00%, 5/1/40, Ser. B |
2,179,000 | |||||||
1,500 | Massachusetts St. Dev. Fin. Agcy. | |||||||
Solid Waste Disp. Rev., |
||||||||
5.00%, 2/1/36, |
1,663,845 | |||||||
Prerefunded 8/1/16 @ $100 (b) |
||||||||
1,000 | Massachusetts St. Gen. Oblig., | |||||||
5.50%, 8/1/30, Ser. A, AMBAC |
1,243,360 | |||||||
|
|
|||||||
8,732,075 | ||||||||
|
|
|||||||
Michigan - 1.7% | ||||||||
500 | Detroit Gen. Oblig., | |||||||
5.25%, 11/1/35 (c) |
492,945 | |||||||
2,000 | Detroit Wtr. Supply Sys. Rev., | |||||||
5.00%, 7/1/30, Ser. A, NRE (c) |
1,868,080 | |||||||
|
|
|||||||
2,361,025 | ||||||||
|
|
|||||||
Nebraska - 3.4% | ||||||||
500 | Nebraska St. Pub. Pwr. Dist. Gen. Rev., | |||||||
5.00%, 1/1/34, Ser. A |
536,785 | |||||||
2,000 | Omaha Gen. Oblig., | |||||||
5.25%, 4/1/27 |
2,452,180 | |||||||
1,525 | Omaha Pub. Pwr. Dist. Elec. Rev., | |||||||
6.20%, 2/1/17, Ser. B, |
||||||||
Escrowed to maturity (b) |
1,654,366 | |||||||
|
|
|||||||
4,643,331 | ||||||||
|
|
|||||||
Nevada - 3.3% | ||||||||
2,165 | Clark Cnty. Gen. Oblig., | |||||||
5.00%, 11/1/22, AMBAC |
2,321,226 | |||||||
2,000 | Nevada St. Gen. Oblig., | |||||||
5.00%, 12/1/24, Ser. F, AGM |
2,100,240 | |||||||
|
|
|||||||
4,421,466 | ||||||||
|
|
|||||||
New Jersey - 4.2% | ||||||||
2,000 | New Jersey St. Gen. Oblig., | |||||||
5.25%, 7/1/17, Ser. H |
2,310,360 | |||||||
1,000 | New Jersey St. Tpk. Auth. Rev., | |||||||
5.00%, 1/1/36, Ser. H |
1,043,750 | |||||||
2,000 | New Jersey Trans. Trust Fund Auth. Rev., | |||||||
5.25%, 12/15/22, Ser. A |
2,344,360 | |||||||
|
|
|||||||
5,698,470 | ||||||||
|
|
The accompanying notes are an integral part of this financial statement.
DTF TAX-FREE INCOME INC.
STATEMENT OF NET ASSETS — (Continued)
January 31, 2014
(Unaudited)
Principal Amount (000) |
Description (a) |
Value (Note 1) |
||||||
New York - 9.0% | ||||||||
$ 1,000 | Albany Industrial Dev. Agy. Rev., | |||||||
5.00%, 4/1/32, Ser. A |
$ | 900,420 | ||||||
700 | Long Island Pwr. Auth. Elec. Sys. Rev., | |||||||
5.00%, 9/1/42, Ser. A |
718,648 | |||||||
1,000 | New York City Mun. Wtr. Fin. Auth. Rev., | |||||||
5.375%, 6/15/43, Ser. EE |
1,072,540 | |||||||
1,000 | New York City Mun. Wtr. Fin. Auth. Rev., | |||||||
5.50%, 6/15/43, Ser. EE |
1,080,570 | |||||||
1,000 | New York City Mun. Wtr. Fin. Auth. | |||||||
Wtr. & Swr. Sys. Rev., |
||||||||
5.00%, 6/15/34, Ser. DD |
1,083,170 | |||||||
1,500 | New York St. Dorm. Auth. Rev., | |||||||
7.25%, 10/1/28, Ser. C |
1,814,865 | |||||||
2,000 | New York St. Dorm. Auth. | |||||||
St. Personal Inc. Tax Rev., |
||||||||
5.00%, 3/15/30, Ser. F |
2,067,620 | |||||||
450 | New York St. Thruway Auth. Rev., | |||||||
5.00%, 1/1/37, Ser. I |
472,162 | |||||||
1,000 | New York St. Thruway Auth. Rev., | |||||||
5.00%, 1/1/36, Ser. J |
1,051,870 | |||||||
900 | The Port Auth. of New York and New Jersey Cons. Bonds, | |||||||
5.00%, 6/1/33, Ser. 179 |
990,990 | |||||||
500 | Triborough Bridge & Tunnel Auth. Subordinate Rev., | |||||||
5.00% 11/15/30, Ser. A |
541,675 | |||||||
400 | Utility Debt Securitization Auth. | |||||||
Restructuring Rev., |
||||||||
5.00%, 12/15/31, Ser. TE |
448,640 | |||||||
|
|
|||||||
12,243,170 | ||||||||
|
|
|||||||
Ohio - 5.3% | ||||||||
750 | Deerfield Twp. Tax Increment Rev., | |||||||
5.00%, 12/1/25 |
773,183 | |||||||
1,000 | Hamilton Elec. Sys. Rev., | |||||||
4.60%, 10/15/20, Ser. A, AGM |
1,072,350 | |||||||
750 | Ohio St. Air Quality Dev. Auth. Rev., | |||||||
5.70%, 2/1/14, Ser. A |
750,000 | |||||||
500 | Ohio St. Gen. Oblig., | |||||||
5.00%, 9/1/30, Ser. A |
546,510 | |||||||
1,040 | Ohio St. Tpk. Comm. Tpk. Rev., | |||||||
5.00%, 2/15/31, Ser. A |
1,113,715 | |||||||
2,445 | Ohio St. Wtr. Dev. Auth. Rev., | |||||||
5.50%, 6/1/20, Ser. B, AGM |
2,998,524 | |||||||
|
|
|||||||
7,254,282 | ||||||||
|
|
|||||||
Pennsylvania - 10.3% | ||||||||
2,000 | Delaware Cnty. Auth. Rev., | |||||||
5.00%, 6/1/21, Ser. A, |
||||||||
Prerefunded 6/1/15 @ $100 (b) |
2,123,360 | |||||||
2,000 | Delaware River Port Auth. Rev., | |||||||
5.00%, 1/1/34 |
2,133,640 | |||||||
480 | East Stroudsburg Area Sch. Dist., | |||||||
7.750%, 9/1/27, Ser.A, |
599,467 | |||||||
Prerefunded 9/1/17 @ $100 (b) |
||||||||
520 | East Stroudsburg Area Sch. Dist., | |||||||
7.750%, 9/1/27 |
616,600 | |||||||
1,000 | Pennsylvania Econ. Dev. Fin. | |||||||
Auth. Res. Recov. Rev., |
||||||||
4.625%, 12/1/18, Ser. F, AMBAC |
1,012,500 | |||||||
2,000 | Pennsylvania St. Higher Ed. Facs. Auth. Rev., | |||||||
5.00%, 6/15/28, Ser. AL |
2,199,360 | |||||||
1,020 | Pennsylvania St. Tpk. Comm. Oil Franchise Tax Rev., | |||||||
5.00%, 12/1/23, Ser. A-2, AGT |
1,128,997 | |||||||
1,000 | Pennsylvania St. Tpk. Comm. | |||||||
Turnpike Rev., |
||||||||
5.00%, 12/1/31, Ser. A |
1,068,370 | |||||||
1,000 | Pennsylvania St. Tpk. Comm. | |||||||
Turnpike Sub. Rev., |
||||||||
5.00%, 12/1/43, Ser. A-1 |
1,017,800 | |||||||
2,000 | Philadelphia Wtr. & Wastewater Rev., | |||||||
5.00%, 1/1/41, Ser. A |
2,055,200 | |||||||
|
|
|||||||
13,955,294 | ||||||||
|
|
|||||||
Rhode Island - 2.8% | ||||||||
2,000 | Rhode Island Hlth. & Edl. Bldg. Corp. Higher Ed. Facs. Rev., | |||||||
5.00%, 9/1/37 |
2,147,380 | |||||||
1,600 | Rhode Island Hlth. & Edl. Bldg. Corp. Higher Ed. Facs. Rev., | |||||||
5.00%, 11/1/41 |
1,659,168 | |||||||
|
|
|||||||
3,806,548 | ||||||||
|
|
|||||||
South Carolina - 1.6% | ||||||||
2,000 | Charleston Cnty. Spl. Source Rev., | |||||||
5.00%, 12/1/32 |
2,178,160 | |||||||
|
|
|||||||
2,178,160 | ||||||||
|
|
|||||||
Tennessee - 2.1% | ||||||||
1,500 | Tennessee Energy Acquisition Corp. Rev., | |||||||
5.25%, 9/1/20, Ser. A |
1,691,625 | |||||||
1,000 | Tennessee Energy Acquisition Corp. Rev., | |||||||
5.25%, 9/1/21, Ser. A |
1,128,420 | |||||||
|
|
|||||||
2,820,045 | ||||||||
|
|
The accompanying notes are an integral part of this financial statement.
DTF TAX-FREE INCOME INC.
STATEMENT OF NET ASSETS — (Continued)
January 31, 2014
(Unaudited)
Principal Amount (000) |
Description (a) |
Value (Note 1) |
||||||
Texas - 13.9% | ||||||||
$1,000 | Alliance Airport Auth. Inc. Rev., | |||||||
4.85%, 4/1/21 |
$ | 1,043,970 | ||||||
1,000 | Dallas Area Rapid Transit Rev., | |||||||
5.25%, 12/1/48 |
1,042,810 | |||||||
2,000 | El Paso Wtr. & Swr. Rev. | |||||||
Ref. and Impvmt. Bonds, |
||||||||
4.00%, 3/1/33, Ser. A |
1,999,940 | |||||||
1,000 | Everman Indep. Sch. Dist. Gen. Oblig., | |||||||
5.00%, 2/15/36, PSF |
1,079,120 | |||||||
500 | Houston Arpt. Sys. Rev., | |||||||
5.00%, 7/1/32, Ser. A |
512,055 | |||||||
1,000 | Houston Hotel Occupancy Tax & Spl. Rev., | |||||||
5.25%, 9/1/29, Ser. A |
1,061,550 | |||||||
1,410 | Houston Util. Sys. Rev., | |||||||
5.00%, 11/15/32, Ser. B, 1st Lien |
1,556,866 | |||||||
1,060 | Klein Indep. Sch. Dist. Gen. Oblig., | |||||||
5.00%, 8/1/38, Ser. A, PSF |
1,125,148 | |||||||
2,000 | Lower Colorado River Auth. Rev., | |||||||
5.00%, 5/15/31, AGM |
2,006,160 | |||||||
1,900 | McLennan Cnty. Pub. Fac. Corp. Proj. Rev., | |||||||
6.625%, 6/1/35 |
2,003,303 | |||||||
1,200 | North Texas Twy. Auth. Rev., | |||||||
5.75%, 1/1/40, Ser. A, BHAC |
1,324,320 | |||||||
1,975 | Pharr-San Juan-Alamo Indep. Sch. Dist. Gen. Oblig., | |||||||
5.50%, 2/1/33, PSF |
2,151,624 | |||||||
1,000 | Spring Branch Indep. Sch. Dist. Gen. Oblig., | |||||||
5.25%, 2/1/38, PSF |
1,081,030 | |||||||
1,000 | Upper Trinity Reg. Wtr. Dist. Treated Wtr. Supply Sys. Rev. | |||||||
Ref. and Impvmt. Bonds, |
||||||||
4.00%, 8/1/37, Ser. A, AGM |
904,220 | |||||||
|
|
|||||||
18,892,116 | ||||||||
|
|
|||||||
Utah - 1.6% | ||||||||
1,000 | Utah Trans. Auth. Sales Tax Rev., | |||||||
5.00%, 6/15/32, Ser. A, AGM |
1,082,920 | |||||||
1,000 | Utah Trans. Auth. Sales Tax Rev., | |||||||
5.00%, 6/15/36, Ser. A, AGM |
1,075,890 | |||||||
|
|
|||||||
2,158,810 | ||||||||
|
|
|||||||
Vermont - 1.6% | ||||||||
2,000 | Univ. of Vermont & St. Agric. College Gen. Oblig., | |||||||
5.00%, 10/1/38, Ser. A |
2,107,680 | |||||||
|
|
|||||||
Virginia - 2.9% | ||||||||
2,000 | Virginia College Bldg. Auth. Rev., | |||||||
5.00%, 2/1/23, Ser. E-1 |
2,379,400 | |||||||
1,500 | Virginia St. Hsg. Dev. Auth. Rev., | |||||||
4.55%, 1/1/24 |
1,512,285 | |||||||
|
|
|||||||
3,891,685 | ||||||||
|
|
|||||||
Washington - 0.4% | ||||||||
500 | Energy Northwest Wind Proj. Rev., | |||||||
4.75%, 7/1/21, |
||||||||
Prerefunded 7/1/14@ $100 (b) |
509,510 | |||||||
|
|
|||||||
West Virginia - 1.1% | ||||||||
1,500 | Monongalia Cnty. Bldg. Comm. | |||||||
Hospital Rev., |
||||||||
5.00%, 7/1/30, Ser. A |
1,501,350 | |||||||
|
|
|||||||
Wisconsin - 1.7% | ||||||||
2,000 | Wisconsin St. Gen. Rev., | |||||||
6.00%, 5/1/33, Ser. A |
2,249,720 | |||||||
|
|
|||||||
Wyoming - 2.9% | ||||||||
3,550 | Wyoming St. Farm Loan Brd. | |||||||
Cap. Facs. Rev., |
||||||||
5.75%, 10/1/20 |
4,007,808 | |||||||
|
|
|||||||
Total Long-Term Investments |
||||||||
(Cost $186,933,653) |
196,054,321 | |||||||
|
|
The accompanying notes are an integral part of this financial statement.
DTF TAX-FREE INCOME INC.
STATEMENT OF NET ASSETS — (Continued)
January 31, 2014
(Unaudited)
TOTAL INVESTMENTS - 144.4% (Cost $186,933,653) | 196,054,321 | |||||
Other assets in excess of liabilities - 3.5% | 4,728,580 | |||||
Liquidation value of Variable Rate MuniFund Term Preferred Shares - (47.9%) | (65,000,000 | ) | ||||
|
|
|||||
NET ASSETS APPLICABLE TO COMMON STOCK - 100.0% | $ | 135,782,901 | ||||
|
|
(a) | The following abbreviations are used in portfolio descriptions to indicate an obligation of credit support, in whole or in part: |
AMBAC—Ambac Assurance Corporation
AGM—Assured Guaranty Municipal Corp.
AGT—Assured Guaranty Corp.
BHAC—Berkshire Hathaway Assurance Corporation
FGIC—Financial Guaranty Insurance Company
FHA—Federal Housing Authority
NRE—National Public Finance Guarantee Corporation
PSF—Texas Permanent School Fund
RAD—Radian Asset Assurance Inc.
(b) | Prerefunded and escrowed to maturity issues are secured by escrowed cash, U.S. government obligations, or other securities. |
(c) | On July 18, 2013, the City of Detroit filed a petition under Chapter 9 with the U.S. Bankruptcy Court. |
The percentage shown for each investment category is the total value of that category as a percentage of the net assets applicable to common stock of the Fund.
Note 1. Investment Valuation
The Fund’s investments are carried at fair value which is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. The three-tier hierarchy of inputs established to classify fair value measurements for disclosure purposes is summarized in the three broad levels listed below.
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 risks, etc.).
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. For more information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements contained in its annual report. The following is a summary of the inputs used to value each of the Fund’s investments at January 31, 2014:
Level 2 | ||||
|
||||
Municipal bonds |
$ | 196,054,321 | ||
|
There were no Level 1 or 3 priced securities held at January 31, 2014.
Note 2. Federal Tax Cost
At October 31, 2013, the Fund’s most recent fiscal tax year-end, the federal tax cost of the Fund’s investments and the aggregate gross unrealized appreciation (depreciation) were as follows:
Federal Tax Cost |
Unrealized Appreciation |
Unrealized Depreciation |
Net Unrealized Appreciation | |||
$181,287,838 |
$10,211,261 | ($3,102,882) | $7,108,379 |
The difference between the book basis and tax basis of unrealized appreciation (depreciation) and cost of investments is primarily attributable to the difference between book and tax amortization methods for premiums and discounts on fixed income securities.
Other information regarding the Fund is available on the Fund’s website at www.dtffund.com or the Securities and Exchange Commission’s website at www.sec.gov.
Item 2 – Controls and Procedures
(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on an evaluation of those controls and procedures made as of a date within 90 days of the filing date of this report as required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934.
(b) There has been no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) 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.
Item 3 – Exhibits
Exhibit 99.CERT Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002
SIGNATURES
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) | DTF TAX-FREE INCOME INC. | |
By (Signature and Title) | /S/ NATHAN I. PARTAIN | |
| ||
Nathan I. Partain | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
Date | March 14, 2014 |
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/ NATHAN I. PARTAIN | |
| ||
Nathan I. Partain | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
Date | March 14, 2014 | |
By (Signature and Title) | /S/ ALAN M. MEDER | |
| ||
Alan M. Meder | ||
Treasurer | ||
(Principal Financial and Accounting Officer) | ||
Date | March 14, 2014 |