UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06416
DTF Tax-Free Income 2028 Term Fund 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)
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Alan M. Meder |
|
Lawrence R. Hamilton, Esq. |
DTF Tax-Free Income 2028 Term Fund Inc. |
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Mayer Brown LLP |
200 South Wacker Drive, Suite 500 |
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71 South Wacker Drive |
Chicago, Illinois 60606 |
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Chicago, Illinois 60606 |
(Name and address of agents for service)
Registrants telephone number, including area code: (800) 338-8214
Date of fiscal year end: October 31
Date of reporting period:
April 30, 2023
ITEM 1. |
REPORTS TO STOCKHOLDERS |
DTF Tax-Free Income
2028 Term Fund Inc.
Semi-Annual Report
April 30, 2023
LETTER TO
SHAREHOLDERS
June 15, 2023
IMPORTANT INFORMATION ABOUT YOUR FUND
FUND DIVIDEND
As of April 30, 2023, the DTF Fund was paying a $0.39 per share annualized dividend and had a closing
price of $11.00 per share. The Funds monthly distribution was maintained at 3.25¢ per share for the previous twelve months.
On March 6, 2023, the DTF Fund amended its distribution policy to allow the Funds monthly
distribution to include return of capital as well as net investment income. While a portion of future monthly distributions is expected to come from return of capital, the amended policy enables the Fund to maintain a more stable distribution, which
is likely to be supportive of the Funds market price. A periodic return of capital also aligns with the short-term nature of the term structure of the Fund. The Funds policy of making annual distributions of capital gains is unaffected
by this change.
BENCHMARK CHANGE
Reflective of the Funds remaining five-year horizon, its performance benchmark was
changed to the Bloomberg 5-Year Municipal Bond Index from the Bloomberg U.S. Municipal Index, effective March 15, 2023. The average maturity (4.89 years) and duration (3.62 years) of the new
benchmark are more in line with the term date of the Fund. The new benchmark is expected to provide a more accurate basis for relative performance comparisons.
THE CURRENT MUNICIPAL MARKET ENVIRONMENT AND
YOUR FUND
We begin our discussion of DTF Tax-Free Income
2028 Term Fund Inc. (the DTF Fund or the Fund) for the six months ended April 30, 2023, with a review of the municipal market environment in which the DTF Fund invests.
During the six-months ended April 30, 2023, tax-exempt
interest rates moved sharply lower across the entire maturity curve as municipal investors digested signs of a slowing economy and a potential pause to increases in the Federal Funds rate. Declining inflation readings, limited tax-exempt supply, and a rush to safety in the face of a banking crisis were tailwinds that fueled a volatile rally. Yields on the two-year
AAA-rated municipal curve moved 50 basis points lower during the period, while the ten-year and 30-year yields moved 104 basis
points and 73 basis points lower, respectively. (One basis point is equal to one-hundredth of one percent or 0.01%.) The Bloomberg U.S. Municipal Index (a broad measure of the municipal market) returned 7.65%
for the period. Bonds with maturities longer than 22 years and bonds rated BBB produced the largest gains over the six months ended April 30, 2023, more than 11% and 9% respectively.
The late 2022 rally continued into early 2023, when investors soon found themselves chasing too few bonds while trying to capture what was
thought to be the peak in yields. Mutual funds saw inflows turn positive during January as more than $12 billion was added in the face of supply that was nearly 20% less year over year. February reminded investors that inflation was relentless
and that there was more work ahead for the Federal Reserve, causing yields to reverse course. March saw a flight to safety as duration mismanagement by two California banks led to fear of a spreading crisis in the banking industry. In April, an
overpriced market corrected in reaction to a spike in issuance and fears surrounding the liquidation of failed bank portfolios. During the six months ended April 30, 2023, the Bloomberg U.S. Municipal Index outperformed the Bloomberg Treasury
Index (5.78%); the Bloomberg U.S. Aggregate Bond Index (6.91%) and the Bloomberg U.S. Government/Credit Index (7.01%) while underperforming the Bloomberg Corporate Index (9.21%).
1
Credit fundamentals in the municipal market remain mostly sound. State and local governments
started their fiscal 2023 with record levels of reserves, giving their credits significant flexibility and the ability to weather periods of volatility. This was attributable to the large infusions of federal relief aid, robust property tax assessed
valuations, and better-than-expected sales and income tax collections. Looking ahead to fiscal 2024, some state and local budgets are showing signs of fatigue while others are considering tax relief measures. Credit analysis will be critical as the
potential effects of a slowing economy, higher inflation and higher interest rates take hold.
While there are increasing indications that
an economic downturn lies ahead, municipal credit has typically fared better in a recession than other investment options, as there is a lag between the onset of a recession and when municipalities begin to see their financial positions
significantly challenged. That is especially relevant for local municipalities that rely on property tax revenues, as the sizeable increases in housing values across the country are expected to continue to provide a strong source of revenue.
Credit risk premiums (which refer to the additional yield that investors expect to receive as compensation for buying lower-rated securities)
were slightly wider during the six-months ended April 30, 2023 for investment grade rated bonds (more so for BBB-rated bonds). Similarly, below investment grade
rated bond risk spreads were also wider. Our investment strategy continues to focus on higher quality municipalities that exhibit value for the longer term. While the federal stimulus may have helped bolster the overall economy and municipal
fundamentals, we believe that credits are not created equal and need to be analyzed with a longer-term horizon. Municipalities still face serious challenges in funding large capital expenditures to rebuild Americas aging infrastructure,
improve pension plan funding, and protect communities against climate change.
LOOKING AHEAD
Municipal bonds will likely be attractive in 2023, fueled by strong investor demand and constrained supply. Absolute rates
remain near decade highs and credit fundamentals remain stable. Supply is likely to remain modest until interest rates stabilize, creating a favorable imbalance in the supply-demand dynamic. Further, municipals continue to benefit from a lack of
correlation to other asset classes, while defaults continue to be rare and well communicated to investors.
THE
FUND
In managing the DTF Fund, we continue to emphasize our longstanding investment strategy of investing mostly
in higher-quality, investment grade bonds. The municipal bond market currently remains confident about the near-term credit outlook as most states are in a strong fiscal position thanks to revenue growth outpacing budget forecasts and unprecedented
federal pandemic aid. As such, we remain committed to our higher-quality approach to the portfolio that we have repeatedly articulated. The portfolio is distributed along the maturity and credit risk curve, with higher levels of A rated
bonds relative to the Bloomberg U.S. Municipal Index and the Bloomberg Municipal Bond 5 Year Index.
As of April 30, 2023, the Fund
held more than 90% of its total assets in municipal bonds rated A or higher across multiple sectors and states. The Fund is diversified across twelve industry sectors of the municipal bond market, with revenue sectors like pre-refunded, special tax, transportation, education, and healthcare bonds constituting the Funds top five sector exposures. Revenue bonds have consistently outweighed general obligation bonds in the Fund, as
we prefer the dedicated revenue streams and the more settled legal protections these types of bonds have historically offered. Geographically, the Fund is well diversified with exposure to 32 states and the District of Columbia. The Fund continues
to invest across the entire maturity spectrum of the municipal bond market to manage the risk of changes in interest rates and/or the shape of the yield curve.
Maturity and duration are measures of the sensitivity of a funds portfolio of investments to changes in interest rates. More
specifically, duration refers to the percentage change in a bonds price for a given change in rates (typically +/- 100 basis points). In general, the greater the duration of a portfolio, the greater is the potential percentage price
volatility for a given change in interest rates. As of April 30, 2023, the modified adjusted duration of the Funds portfolio of investments was 3.86 years, versus the duration of the investments constituting the Bloomberg U.S.
Municipal Index, which was 6.07 years, and the Bloomberg Municipal 5 Year Index was 3.62 years.
In addition to the risk of disruptions in
the broader credit market, the level of interest rates can be a primary driver of bond fund total returns, including the Funds returns. As a practical matter, it is not possible for the Fund to be completely insulated from turmoil in the
global financial markets, pandemics, or unexpected moves in interest rates. Any sudden or unexpected rise in interest rates would likely reduce the total return of bond funds, since higher interest rates could be expected to depress the
2
valuations of fixed-rate bonds held in a portfolio. Further, if the municipal yield curve flattens (when the difference between short-term interest rates and long-term rates narrows) or inverts
(when short-term rates exceed long-term rates), the Funds total return may be pressured lower. Management believes that over the long term, the diversification of the portfolio across multiple states and sectors, in addition to the
distribution of assets along the yield curve, positions the Fund to take advantage of future opportunities while limiting credit risk and volatility to some degree. However, a sustained and meaningful rise in interest rates from current levels would
have the potential to significantly reduce the total return of leveraged bond funds, including the Fund, and would likely put downward pressure on both the net asset value and market prices of such funds.
FUND PERFORMANCE
The following table compares the DTF Funds total return to the Bloomberg U.S. Municipal Index and the Bloomberg Municipal Bond 5 Year
Index. It is important to note that the index returns stated below include no fees or expenses, whereas the DTF Funds NAV returns are net of fees and expenses. The Funds use of leverage can magnify the effect of any gains or losses to a
greater extent than if leverage were not used.
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Total Return1
For the period indicated through April 30, 2023 |
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Six Months |
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One Year |
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Five Years
(annualized) |
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Ten Years
(annualized) |
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DTF
Tax-Free Income 2028 Term Fund Inc. |
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Market Value2 |
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3.7 |
% |
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(6.7 |
)% |
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0.2 |
% |
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0.4 |
% |
Net Asset Value3 |
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6.9 |
% |
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(2.6 |
)% |
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(0.2 |
)% |
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1.0 |
% |
Bloomberg U.S. Municipal Index4 |
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7.6 |
% |
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2.9 |
% |
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2.1 |
% |
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2.2 |
% |
Bloomberg Municipal Bond 5 Year Index5 |
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4.8 |
% |
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3.0 |
% |
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1.7 |
% |
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1.5 |
% |
1 |
Past performance is not indicative of future results. Current performance may be lower or higher than the
performance in historical periods. |
2 |
Total return on market value assumes a purchase of common stock at the opening market price on the first
business day and a sale at the closing market price on the last business day of each period shown in the table and assumes reinvestment of dividends at the actual reinvestment prices obtained under the terms of the DTF Funds dividend
reinvestment plan. In addition, when buying or selling stock, you would ordinarily pay brokerage expenses. Because brokerage expenses are not reflected in the above calculations, your total return net of brokerage expenses would be lower than the
total returns on market value shown in the table. Source: Administrator of the DTF Fund. |
3 |
Total return on NAV uses the same methodology as is described in note 2, but with use of NAV for beginning,
ending and reinvestment values. Because the DTF Funds expenses (ratios detailed on page 16 of this report) reduce the DTF Funds NAV, they are already reflected in the DTF Funds total return on NAV shown in the table. NAV represents
the underlying value of the DTF Funds net assets, but the market price per share may be higher or lower than the NAV. Source: Administrator of the DTF Fund. |
4 |
The Bloomberg U.S. Municipal Index (formerly known as the Bloomberg Barclays Municipal Bond Index) is a market
capitalization-weighted index that is designed to measure the long-term tax-exempt bond market. The index is calculated on a total return basis with dividends
reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment. Source: Bloomberg. |
5 |
The Bloomberg Municipal Bond 5 Year Index is the 5 Year component of the Bloomberg U.S. Municipal Index. It is
designed to measure the four-to-six-year area of the tax-exempt bond market. The index is
calculated on a total return basis with dividends reinvested. The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and it is not available for direct investment. Source: Bloomberg. |
3
BOARD OF DIRECTORS MEETINGS
At the regular March and June 2023 meetings of the DTF Funds Board of Directors, the Board authorized the following
monthly dividends:
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Cents Per Share |
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Record
Date |
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Payable
Date |
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Cents Per Share |
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Record
Date |
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Payable
Date |
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3.25 |
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April 17 |
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April 28 |
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3.25 |
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July 17 |
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July 31 |
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3.25 |
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May 15 |
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May 31 |
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3.25 |
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August 15 |
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August 31 |
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3.25 |
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June 15 |
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June 30 |
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3.25 |
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September 15 |
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September 29 |
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ABOUT YOUR FUND
The Funds investment objective is current income exempt from regular federal income tax consistent with the preservation of capital. The
Fund seeks to achieve its investment objective by investing primarily (at least 80% of its total assets) in a diversified portfolio of investment-grade tax-exempt obligations. The Fund may not invest more than
25% of its total assets (taken at market value at the time of each investment) in the securities of issuers in a single industry; provided that, for purposes of this restriction, tax exempt securities of issuers that are states, municipalities or
their political subdivisions are not considered to be the securities of issuers in any single industry.
The use of leverage enables the
Fund to borrow at short-term rates and invest at longer-term rates. As of April 30, 2023, the Funds leverage represented approximately 31% of the Funds total assets. Given the recent shape of the municipal yield curve and the
resultant reduced benefits of leverage, on May 16, 2023, the Fund filed notice that it would voluntarily redeem $25 million of its outstanding preferred shares on June 15, 2023. That redemption will reduce the Funds leverage to
$15 million, which is expected to represent approximately 16% of the Funds total assets. It is also possible that additional preferred shares will be redeemed at a future date, although no date has yet been set for any such future
redemptions.
The amount and type of leverage used is reviewed by the Board of Directors based on the Funds expected earnings
relative to the anticipated costs (including fees and expenses) associated with the leverage. In addition, the long-term expected benefits of leverage are weighed against the potential effect of increasing the volatility of both the Funds net
asset value and the market value of its common stock. If the DTF Fund were to conclude that the use of leverage was likely to cease being beneficial, it could modify the amount and type of leverage it uses or eliminate the use of leverage entirely.
PORTFOLIO MANAGER RETIREMENT
On June 15, 2023, Ronald Schwartz retired as co-portfolio manager of the DTF Fund. Dusty Self, who has served as a portfolio manager of
the Fund since July 1, 2022 and has over 30 years of experience focused on investment grade municipal strategies, has taken on the role of lead portfolio manager.
It is a privilege and honor to serve you and we are excited for the future.
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Dusty L. Self Vice President |
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David D. Grumhaus, Jr. President and Chief
Executive Officer |
Certain statements in this report are forward-looking statements. Discussions of specific investments are
for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein, are those of the portfolio managers as of the date of this report. Actual future results or
occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The DTF Fund disclaims any obligation to
update publicly or revise any forward-looking statements or views expressed herein.
4
DTF TAX-FREE INCOME 2028 TERM FUND INC.
SCHEDULE OF INVESTMENTS
April 30, 2023
(Unaudited)
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Principal Amount (000) |
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Description (a) |
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Value |
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LONG-TERM INVESTMENTS141.6% |
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Alabama2.4% |
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$2,000 |
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Jefferson Cnty. Brd. of Ed. Pub. Sch. Warrants, 5.00%, 2/01/46 |
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$2,097,305 |
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Alaska0.3% |
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290 |
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Anchorage Elec. Util. Rev., 5.00%, 12/01/36 Prerefunded 12/01/24 @ $100 (b) |
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298,222 |
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Arizona5.2% |
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1,350 |
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Arizona Brd. of Regents Rev., Arizona St. Univ., 5.00%, 7/01/37 |
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1,414,954 |
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650 |
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Arizona St. Hlth. Fac. Auth. Rev., HonorHealth Hosp. Proj., 5.00%, 12/01/42 |
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656,643 |
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1,000 |
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Maricopa Cnty. Indl. Dev. Auth. Rev., Banner Hlth., 4.00%, 1/01/34 |
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1,019,396 |
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190 |
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Northern Arizona Univ. Rev., 5.00%, 6/01/40 Prerefunded 6/01/24 @ $100 (b) |
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193,913 |
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310 |
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Northern Arizona Univ. Rev., 5.00%, 6/01/40 |
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312,662 |
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1,000 |
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Northern Arizona Univ. SPEED Rev., (Stimulus Plan for Econ. and Edl. Dev.), 5.00%,
8/01/38 Prerefunded 8/01/23 @ $100 (b) |
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1,004,340 |
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4,601,908 |
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California17.9% |
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1,260 |
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California St. Hlth. Facs. Fin. Auth. Rev., Kaiser Permanente, 4.00%, 11/01/44 |
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1,233,471 |
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330 |
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California St. Hlth. Facs. Fin. Auth. Rev., Providence St. Joseph Hlth., 4.00%,
10/01/36 |
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333,364 |
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1,660 |
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California St. Hlth. Facs. Fin. Auth. Rev., Sutter Hlth., 5.00%, 11/15/46 Prerefunded
11/15/25 @ $100 (b) |
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1,757,261 |
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1,000 |
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California St. Gen. Oblig., 5.00% 10/01/28 |
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1,029,907 |
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Principal Amount (000) |
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Description (a) |
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Value |
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$
1,000 |
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California St. Pub. Wks. Brd. Lease Rev., Dept. of Corrections and Rehab., 5.25%,
9/01/29 |
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$
1,006,192 |
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600 |
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Contra Costa Cnty. Successor Agy. to Redev. Agy., Tax Allocation, 5.00%, 8/01/35,
BAM |
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652,640 |
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1,000 |
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Garden Grove Successor Agy. to Agy. Cmty. Dev., Tax Allocation, 5.00%, 10/01/31, BAM |
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1,068,347 |
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2,000 |
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Gilroy Unified Sch. Dist. Gen. Oblig., 4.00%, 8/01/41 |
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2,006,149 |
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280 |
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Lancaster Successor Agy. to Redev. Agy., Tax Allocation, 5.00%, 8/01/33, AGM |
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301,337 |
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250 |
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Palm Desert Successor Agy. to Redev. Agy., Tax Allocation, 5.00%, 10/01/28, BAM |
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271,787 |
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1,215 |
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San Marcos Successor Agy. to Redev. Agy., Tax Allocation, 5.00%, 10/01/32 |
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1,283,795 |
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2,000 |
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San Mateo Successor Agy. to Redev. Agy., Tax Allocation, 5.00%, 8/01/30 |
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2,102,071 |
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1,000 |
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Temple City Unified Sch. Dist. Gen. Oblig., 4.00%, 8/01/43 |
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1,002,284 |
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1,750 |
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Univ. of California Rev., 4.00%, 5/15/48 |
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1,730,807 |
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15,779,412 |
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Colorado6.2% |
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925 |
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Colorado St. Bldg. Excellent Schs. Today COP, 5.00%, 3/15/29 |
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1,023,075 |
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1,000 |
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Denver City and Cnty. Arpt. Rev., 5.50%, 11/15/30 |
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1,155,489 |
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2,150 |
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Public Auth. for Colorado Energy, Natural Gas Purch. Rev., 6.25%, 11/15/28 |
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2,323,475 |
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1,000 |
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Univ. of Colorado Enterprise Rev., 4.00%, 6/01/43 |
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1,001,812 |
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5,503,851 |
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Connecticut8.9% |
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935 |
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Connecticut St. Gen. Oblig., 5.00%, 9/15/35 |
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1,029,863 |
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The accompanying notes are
an integral part of these financial statements.
5
DTF TAX-FREE INCOME 2028 TERM FUND INC.
SCHEDULE OF INVESTMENTS(Continued)
April 30, 2023
(Unaudited)
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Principal Amount (000) |
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Description (a) |
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Value |
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$
730 |
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Connecticut St. Gen. Oblig., 4.00%, 4/15/38 |
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$
741,360 |
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1,265 |
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Connecticut St. Hlth. & Edl. Facs. Auth. Rev., Yale Univ., 5.00%, 7/01/40 |
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1,412,535 |
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550 |
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Connecticut St. Hlth. & Edl. Facs. Auth. Rev., Yale-New
Haven Hosp., 5.00%, 7/01/48 |
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550,285 |
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390 |
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Connecticut St. Hsg. Auth. Rev., 3.00%, 5/15/33 |
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365,540 |
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365 |
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Connecticut St. Hsg. Auth. Rev., 3.20%, 11/15/33 |
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357,802 |
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|
130 |
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Connecticut St. Hsg. Auth. Rev., 1.85%, 5/15/38 |
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92,383 |
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1,250 |
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Hartford Cnty. Met. Dist. Clean Wtr. Proj. Rev., 5.00%, 2/01/33 |
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1,464,871 |
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400 |
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Univ. of Connecticut Rev., 5.00%, 5/01/30 |
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462,067 |
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1,300 |
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Univ. of Connecticut Spec. Oblig. Rev., 5.00%, 11/15/43 |
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1,387,256 |
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7,863,962 |
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District of Columbia1.2% |
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1,000 |
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District of Columbia Gen. Oblig., 5.00%, 6/01/43 |
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1,070,211 |
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Florida22.2% |
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780 |
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Brevard Cnty. Sch. Brd. Ref. COP, 5.00%, 7/01/32 |
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846,957 |
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|
1,000 |
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|
Central Florida Expwy. Auth. Rev., 4.00%, 7/01/36 |
|
|
1,009,574 |
|
|
2,350 |
|
|
Florida St. Brd. of Gov. Florida State Univ. Dorm Rev., 5.00%, 5/01/33 Refunded 5/02/23 @
$100 (b) |
|
|
2,350,000 |
|
|
1,000 |
|
|
Hillsborough Cnty. Aviation Auth. Rev., Tampa Intl. Arpt., 5.00%, 10/01/44 Prerefunded
10/01/24 @ $100 (b) |
|
|
1,019,856 |
|
|
500 |
|
|
Lee Cnty. Tran. Fac. Rev., 5.00%, 10/01/35, AGM |
|
|
507,853 |
|
|
1,080 |
|
|
Miami Beach Hlth. Facs. Auth. Rev., Mt. Sinai Med. Ctr., 5.00%, 11/15/39 |
|
|
1,087,425 |
|
|
|
|
|
|
|
|
|
|
Principal Amount (000) |
|
|
Description (a) |
|
Value |
|
|
$
500 |
|
|
Miami Beach Redev. Agy. Rev., 5.00%, 2/01/40, AGM |
|
|
$
497,161 |
|
|
1,250 |
|
|
Miami-Dade Cnty. Ed. Facs. Auth. Rev., Univ. of Miami, 5.00%, 4/01/45 |
|
|
1,272,353 |
|
|
2,220 |
|
|
Miami-Dade Cnty. Sch. Brd. Ref. COP, 5.00%, 2/01/34 |
|
|
2,301,643 |
|
|
1,000 |
|
|
Reedy Creek Impvt. Dist. Gen. Oblig., 5.00%, 6/01/38 Prerefunded 6/01/23 @ $100 (b) |
|
|
1,001,380 |
|
|
2,035 |
|
|
Seminole Cnty. Sales Tax Rev., 5.25%, 10/01/31, NRE |
|
|
2,373,529 |
|
|
2,190 |
|
|
Seminole Cnty. Sch. Brd. COP, 5.00%, 7/01/33 |
|
|
2,308,160 |
|
|
830 |
|
|
S. Florida Wtr. Mgmt. Dist. COP, 5.00%, 10/01/35 |
|
|
867,093 |
|
|
470 |
|
|
Tallahassee Hlth. Facs. Rev., Tallahassee Memorial Hlthcare., 5.00%, 12/01/41 |
|
|
472,035 |
|
|
665 |
|
|
Tampa-Hillsborough Cnty. Expwy. Auth. Rev., 4.00%, 7/01/42 |
|
|
644,663 |
|
|
1,000 |
|
|
Tampa-Hillsborough Cnty. Expwy. Auth. Rev., 5.00%, 7/01/47 |
|
|
1,040,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,600,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Georgia0.6% |
|
|
|
|
|
500 |
|
|
Atlanta Arpt. Passenger Fac. Charge Gen. Rev., 5.00%, 1/01/32 |
|
|
505,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Idaho0.3% |
|
|
|
|
|
240 |
|
|
Idaho St. Hlth. Facs. Auth. Rev., St. Lukes Hlth. Sys., 5.00%, 3/01/37 |
|
|
249,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Illinois17.4% |
|
|
|
|
|
500 |
|
|
Chicago Multi-Family Hsg. Rev., Paul G. Stewart (Phases I and II), 4.90%, 3/20/44,
FHA |
|
|
500,195 |
|
|
1,000 |
|
|
Chicago OHare Intl. Arpt. Rev., Customer Fac. Charge, 5.125%, 1/01/30, AGM |
|
|
1,002,534 |
|
The accompanying notes are
an integral part of these financial statements.
6
DTF TAX-FREE INCOME 2028 TERM FUND INC.
SCHEDULE OF INVESTMENTS(Continued)
April 30, 2023
(Unaudited)
|
|
|
|
|
|
|
|
|
Principal Amount (000) |
|
|
Description (a) |
|
Value |
|
|
$
620 |
|
|
Chicago OHare Intl. Arpt. Rev., 5.25%, 1/01/42 |
|
|
$
649,328 |
|
|
250 |
|
|
Chicago Sales Tax Rev., 5.00%, 1/01/30 Prerefunded 1/01/25 @ $100 (b) |
|
|
258,209 |
|
|
250 |
|
|
Chicago Wtrwks. Rev., 5.00%, 11/01/30 |
|
|
262,710 |
|
|
665 |
|
|
Chicago Wtrwks. Rev., 5.25%, 11/01/32, AGM |
|
|
723,524 |
|
|
250 |
|
|
Chicago Wtrwks. Rev., 5.00%, 11/01/36, AGM |
|
|
264,848 |
|
|
865 |
|
|
Chicago Wtrwks. Rev., 5.00%, 11/01/44 |
|
|
869,714 |
|
|
170 |
|
|
Illinois St. Fin. Auth. Rev., Advocate Hlth. Care Network, 5.00%, 5/01/45 Prerefunded
5/01/25 @ $100 (b) |
|
|
176,505 |
|
|
1,055 |
|
|
Illinois St. Fin. Auth. Rev., Advocate Hlth. Care Network, 5.00%, 5/01/45 Prerefunded
5/01/25 @ $100 (b) |
|
|
1,098,494 |
|
|
525 |
|
|
Illinois St. Fin. Auth. Rev., Northwestern Memorial Hlthcare., 5.00%, 9/01/42 Prerefunded
9/01/24 @ $100 (b) |
|
|
538,086 |
|
|
1,090 |
|
|
Illinois St. Fin. Auth. Rev., Rush Univ. Med. Ctr., 4.00%, 11/15/39 |
|
|
1,055,287 |
|
|
1,000 |
|
|
Illinois St. Gen. Oblig., 5.00%, 2/01/27 |
|
|
1,059,314 |
|
|
2,020 |
|
|
Illinois St. Gen. Oblig., 5.50%, 1/01/29 |
|
|
2,259,877 |
|
|
600 |
|
|
Illinois St. Gen. Oblig., 5.00%, 2/01/29 |
|
|
636,061 |
|
|
1,180 |
|
|
Illinois St. Hsg. Dev. Auth. Rev., 2.375%, 10/01/42 |
|
|
843,836 |
|
|
750 |
|
|
Illinois St. Toll Hwy. Auth. Rev., 5.00%, 1/01/41 |
|
|
778,416 |
|
|
330 |
|
|
Railsplitter Tobacco Settlement Auth. Rev., 5.00%, 6/01/27 |
|
|
350,585 |
|
|
1,000 |
|
|
Sales Tax Securitization Corp. Rev., 5.00%, 1/01/48 |
|
|
1,033,636 |
|
|
1,000 |
|
|
Univ. of Illinois Aux. Facs. Sys. Rev., 5.00%, 4/01/34 |
|
|
1,006,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,367,583 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Amount (000) |
|
|
Description (a) |
|
Value |
|
|
|
|
|
Indiana4% |
|
|
|
|
|
$
240 |
|
|
Indiana St. Fin. Auth. Hosp. Rev., Indiana Univ. Hlth., 5.00%, 12/01/28 |
|
|
$
248,174 |
|
|
2,000 |
|
|
Indiana St. Fin. Auth. Hosp. Rev., Parkview Hlth., 5.00%, 11/01/43 |
|
|
2,079,835 |
|
|
1,120 |
|
|
Indianapolis Local Public Impt. Bond Bank Rev., Indianapolis Arpt. Auth Proj., 5.25%,
1/01/42 |
|
|
1,206,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,534,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kentucky1.1% |
|
|
|
|
|
900 |
|
|
Kentucky Bond Dev. Corp. Transient Room Tax Rev., 5.00%, 9/01/43 |
|
|
951,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Louisiana3.9% |
|
|
|
|
|
1,250 |
|
|
Louisiana St. Stadium & Exposition Dist. Rev., 5.00%, 7/01/30 |
|
|
1,250,730 |
|
|
605 |
|
|
Louisiana St. Stadium & Exposition Dist. Rev., 5.00%, 7/01/36 |
|
|
605,293 |
|
|
1,250 |
|
|
Louisiana St. Tran. Auth. Rev., 5.00%, 8/15/38 Prerefunded 8/15/23 @ $100 (b) |
|
|
1,256,113 |
|
|
300 |
|
|
New Orleans Swr. Svc. Rev., 5.00%, 6/01/44 Prerefunded 6/01/24 @ $100 (b) |
|
|
305,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,417,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maine2.4% |
|
|
|
|
|
100 |
|
|
Maine St. Hlth. & Hgr. Edl. Facs. Auth. Rev., 5.00%, 7/01/33, Prerefunded 7/01/23 @ $100
(b) |
|
|
100,276 |
|
|
905 |
|
|
Maine St. Hlth. & Hgr. Edl. Facs. Auth. Rev., 5.00%, 7/01/33 |
|
|
905,409 |
|
|
610 |
|
|
Portland General Arpt. Rev., 5.00%, 7/01/31 |
|
|
611,617 |
|
|
540 |
|
|
Portland General Arpt. Rev., 5.00%, 7/01/32 |
|
|
541,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,158,722 |
|
|
|
|
|
|
|
|
|
|
The accompanying notes are
an integral part of these financial statements.
7
DTF TAX-FREE INCOME 2028 TERM FUND INC.
SCHEDULE OF INVESTMENTS(Continued)
April 30, 2023
(Unaudited)
|
|
|
|
|
|
|
|
|
Principal Amount (000) |
|
|
Description (a) |
|
Value |
|
|
|
|
|
Maryland1.5% |
|
|
|
|
|
$
500 |
|
|
Maryland St. Cmnty. Dev. Admin., Dept. of Hsg. And Cmnty. Dev. Rev., 1.95%, 9/01/41 |
|
|
$
332,858 |
|
|
1,000 |
|
|
Maryland St. Hlth. & Hgr. Edl. Facs. Auth. Rev., Luminis Hlth., 5.00%,
7/01/39 Prerefunded 7/01/24 @ $100 (b) |
|
|
1,020,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,353,558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Massachusetts4.6% |
|
|
|
|
|
1,945 |
|
|
Massachusetts St. Gen. Oblig., 5.50%, 8/01/30, AMBAC |
|
|
2,317,436 |
|
|
700 |
|
|
Massachusetts St. Hsg. Fin. Agy. Rev., 2.30%, 12/01/40 |
|
|
520,629 |
|
|
300 |
|
|
Massachusetts St. Hsg. Fin. Agy. Rev., 3.00%, 12/01/45 |
|
|
233,441 |
|
|
1,000 |
|
|
Massachusetts St. Port Auth. Rev., 5.00%, 7/01/47 |
|
|
1,022,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,093,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michigan2.4% |
|
|
|
|
|
550 |
|
|
Michigan St. Fin. Auth. Rev., Beaumont Hlth. Credit Group, 5.00%, 11/01/44 |
|
|
559,167 |
|
|
540 |
|
|
Michigan St. Bldg. Auth. Rev., 4.00%, 10/15/36 |
|
|
550,467 |
|
|
1,020 |
|
|
Michigan St. Hsg. Dev. Auth. Rev., 2.80%, 12/01/45 |
|
|
759,307 |
|
|
225 |
|
|
Royal Oak Hosp. Fin. Auth. Rev., Beaumont Hlth. Credit Group, 5.00%, 9/01/39 Prerefunded
3/01/24 @ $100 (b) |
|
|
227,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,096,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minnesota0.2% |
|
|
|
|
|
200 |
|
|
Minnesota St. Hsg. Fin. Agy., 2.70%, 7/01/44 |
|
|
160,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mississippi0.7% |
|
|
|
|
|
600 |
|
|
Mississippi St. Gen. Oblig., 4.00%, 10/01/39 |
|
|
606,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nebraska2.4% |
|
|
|
|
|
1,925 |
|
|
Omaha Gen. Oblig., 5.25%, 4/01/27 |
|
|
2,116,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Amount (000) |
|
|
Description (a) |
|
Value |
|
|
|
|
|
New Jersey2.6% |
|
|
|
|
|
$
400 |
|
|
Camden Cnty. Impvt. Auth. Hlthcare. Redev. Rev., Cooper Hlth. Sys., 5.00%, 2/15/33 |
|
|
$
403,314 |
|
|
295 |
|
|
New Jersey St. COVID-19 Gen. Oblig. Emergency
Bonds, 4.00%, 6/01/31 |
|
|
322,066 |
|
|
1,125 |
|
|
New Jersey St. Tpk. Auth. Rev., 5.00%, 1/01/34 |
|
|
1,207,690 |
|
|
305 |
|
|
New Jersey St. Tpk. Auth. Rev., 4.00%, 1/01/35 |
|
|
314,192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,247,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New York5.4% |
|
|
|
|
|
530 |
|
|
Long Island Pwr. Auth. Elec. Sys. Gen. Rev., 5.00%, 9/01/42 |
|
|
569,120 |
|
|
510 |
|
|
New York City Mun. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev., Adjustable Rate Bond, 3.75%,
06/15/48 |
|
|
510,000 |
|
|
2,035 |
|
|
New York St. Dorm. Auth., Personal Inc. Tax Rev., 5.00%, 03/15/31 |
|
|
2,113,728 |
|
|
900 |
|
|
Port Auth. of New York and New Jersey Rev., 5.00%, 6/01/33 |
|
|
908,969 |
|
|
500 |
|
|
Triborough Bridge & Tunnel Auth. Rev., 5.00%, 11/15/30 Refunded 5/15/23 @ $100
(b) |
|
|
500,308 |
|
|
195 |
|
|
TSASC Inc. Tobacco Settlement Rev., 5.00%, 6/01/34 |
|
|
203,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,805,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North Carolina0.2% |
|
|
|
|
|
185 |
|
|
North Carolina St. Hsg. Fin. Agy. Rev., 2.85%, 1/01/43 |
|
|
147,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ohio1.1% |
|
|
|
|
|
570 |
|
|
Northeast Ohio Regl. Swr. Dist. Rev., 4.00%, 11/15/43 |
|
|
571,549 |
|
|
495 |
|
|
Ohio St. Hsg. Fin. Agy. Rev., 2.45%, 9/01/45 |
|
|
381,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
952,642 |
|
|
|
|
|
|
|
|
|
|
The accompanying notes are
an integral part of these financial statements.
8
DTF TAX-FREE INCOME 2028 TERM FUND INC.
SCHEDULE OF INVESTMENTS(Continued)
April 30, 2023
(Unaudited)
|
|
|
|
|
|
|
|
|
Principal Amount (000) |
|
|
Description (a) |
|
Value |
|
|
|
|
|
Oregon4.4% |
|
|
|
|
|
$
1,500 |
|
|
Oregon St. Dept. of Admin. Svcs., Lottery Rev., 5.00%, 5/01/41 |
|
|
$
1,707,204 |
|
|
500 |
|
|
Oregon St. Gen. Oblig., 5.00%, 5/01/41 |
|
|
520,825 |
|
|
570 |
|
|
Port of Portland Intl. Arpt. Rev., 5.00%, 7/01/32 |
|
|
577,164 |
|
|
1,000 |
|
|
Washington Cnty. Sch. Dist. 48J (Beaverton), Gen. Oblig. 5.00%, 6/15/36 |
|
|
1,066,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,871,896 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania2.3% |
|
|
|
|
|
2,000 |
|
|
Delaware River Port Auth. Rev., 5.00%, 1/01/34 Prerefunded 1/01/24 @ $100 (b) |
|
|
2,024,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rhode Island1.2% |
|
|
|
|
|
1,070 |
|
|
Rhode Island St. Clean Wtr. Fin. Agy., Wtr. Poll. Control Rev., 5.00%, 10/01/32 Prerefunded
10/01/24 @ $100 (b) |
|
|
1,097,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South Carolina0.3% |
|
|
|
|
|
290 |
|
|
SCAGO Edl. Facs. Corp. Rev., Pickens Cnty. Sch. Dist., 5.00%, 12/01/24 |
|
|
297,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tennessee2.8% |
|
|
|
|
|
250 |
|
|
Chattanooga-Hamilton Cnty. Hosp. Auth. Rev., Erlanger Hlth. Sys., 5.00%, 10/01/34 |
|
|
254,506 |
|
|
110 |
|
|
Tennessee St. Hsg. Dev. Agy., 3.625%, 7/01/32 |
|
|
108,928 |
|
|
2,000 |
|
|
Tennessee St. Sch. Bond Auth. Rev., 5.00%, 11/01/42 |
|
|
2,135,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,499,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Texas13% |
|
|
|
|
|
670 |
|
|
Dallas Area Rapid Transit Rev., 5.00%, 12/01/41 Prerefunded 12/01/25 @ $100 (b) |
|
|
705,322 |
|
|
1,250 |
|
|
Houston Arpt. Sys. Rev., 5.00%, 7/01/39 |
|
|
1,339,016 |
|
|
1,410 |
|
|
Houston Util. Sys. Rev., 5.00%, 11/15/32 Prerefunded 11/15/23 @ $100 (b) |
|
|
1,423,476 |
|
|
|
|
|
|
|
|
|
|
Principal Amount (000) |
|
|
Description (a) |
|
Value |
|
|
$
1,000 |
|
|
Lewisville Indep. Sch. Dist. Gen. Oblig., 3.00%, 8/15/39, PSF |
|
|
$
864,450 |
|
|
1,505 |
|
|
North Texas Twy. Auth. Rev., Convertible CAB, 0.00%, 9/01/43 Prerefunded 9/01/31 @ $100
(b) |
|
|
1,889,759 |
|
|
1,135 |
|
|
North Texas Twy. Auth. Rev., 4.00%, 1/01/43 |
|
|
1,110,361 |
|
|
700 |
|
|
San Antonio Indep. Sch. Dist. Sch. Bldg. Gen. Oblig., 5.00%, 8/15/38, PSF |
|
|
735,484 |
|
|
1,000 |
|
|
Texas St. Wtr. Development Brd. Rev., St. Wtr. Implementation Fund, 4.00%, 10/15/47 |
|
|
984,108 |
|
|
2,400 |
|
|
Univ. of Texas Permanent. Univ. Fnd. Sys. Rev., Adjustable Rate Bond, 3.80%, 7/01/38 |
|
|
2,400,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,451,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vermont0.6% |
|
|
|
|
|
500 |
|
|
Vermont St. Edl. and Hlth. Bldg. Fin. Agy. Rev., Univ. of Vermont Med. Center, 5.00%,
12/01/35 |
|
|
522,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wisconsin1.9% |
|
|
|
|
|
1,400 |
|
|
Wisconsin St. Pub. Fin. Auth. Hosp. Rev., Renown Reg. Med. Ctr., 5.00%, 6/01/40 |
|
|
1,425,520 |
|
|
250 |
|
|
Wisconsin St. Pub. Fin. Auth., Solid Waste Disp. Rev., 2.875%, 5/01/27 |
|
|
237,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,663,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Long-Term Investments (Cost $126,739,102) |
|
|
125,008,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS141.6% |
|
|
|
|
|
(Cost $126,739,102) |
|
|
125,008,776 |
|
|
|
|
|
Remarketable Variable Rate MuniFund Term Preferred Shares at liquidation
value(45.3)% |
|
|
(40,000,000 |
) |
|
|
|
|
Other assets less other liabilities3.7% |
|
|
3,261,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS APPLICABLE TO COMMON STOCK100.0% |
|
|
$88,270,634 |
|
|
|
|
|
|
|
|
|
|
The accompanying notes are
an integral part of these financial statements.
9
DTF TAX-FREE INCOME 2028 TERM FUND INC.
SCHEDULE OF INVESTMENTS(Continued)
April 30, 2023
(Unaudited)
(a) |
The following abbreviations are used in the portfolio descriptions: |
AGMAssured Guaranty Municipal Corp.*
AMBACAmbac Assurance Corporation*
BAMBuild America Mutual Assurance Company*
CABCapital Appreciation Bond
COPCertificate of Participation
FHAFederal Housing Authority*
NRENational Public Finance Guarantee Corporation*
PSFTexas Permanent School Fund*
* |
Indicates an obligation of credit support, in whole or in part. |
(b) |
Prerefunded and refunded issues are secured by escrowed cash, U.S. government obligations, or other securities.
|
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.
The Funds investments are carried at fair value which is defined as the price that the Fund
might reasonably expect to 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 Funds 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. The following is a summary of the inputs used to value each of the Funds investments at April 30, 2023:
|
|
|
|
|
|
|
Level 2 |
|
Municipal bonds |
|
|
$125,008,776 |
|
|
|
|
|
|
There were no Level 1 or Level 3 priced securities held and there were no transfers into or out of
Level 3.
Summary of Ratings
as a Percentage of Long-Term Investments
|
|
|
|
|
Rating** |
|
% |
|
AAA |
|
|
7.6 |
|
AA |
|
|
49.1 |
|
A |
|
|
37.2 |
|
BBB |
|
|
3.3 |
|
BB |
|
|
0.0 |
|
B |
|
|
0.0 |
|
NR |
|
|
2.8 |
|
|
|
|
|
|
|
|
|
100.0 |
|
|
|
|
|
|
** |
Individual ratings are grouped based on the lower rating of Standard & Poors Financial Services
LLC (S&P) or Moodys Investors Service, Inc. (Moodys) and are expressed using the S&P ratings scale. If a particular security is rated by either S&P or Moodys, but not both, then the single rating
is used. If a particular security is not rated by either S&P or Moodys, then a rating from Fitch Ratings, Inc. is used, if available. The Fund does not evaluate these ratings but simply assigns them to the appropriate credit quality
category as determined by the ratings agencies, as applicable. Securities that have not been rated by S&P, Moodys or Fitch totaled 2.8% of the portfolio at the end of the reporting period. |
Portfolio Composition
as a
Percentage of Long-Term Investments
|
|
|
|
|
|
|
% |
|
Pre-Refunded |
|
|
16.2 |
|
General Obligation |
|
|
15.5 |
|
Education |
|
|
11.6 |
|
Healthcare |
|
|
10.5 |
|
Special Tax |
|
|
8.3 |
|
Leasing |
|
|
7.4 |
|
Airports |
|
|
6.9 |
|
Transportation |
|
|
6.0 |
|
Tax Allocation |
|
|
5.0 |
|
Water & Sewer |
|
|
4.5 |
|
Other |
|
|
8.1 |
|
|
|
|
|
|
|
|
|
100.0 |
|
|
|
|
|
|
The accompanying notes are
an integral part of these financial statements.
10
DTF TAX-FREE INCOME 2028 TERM
FUND INC.
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2023
(Unaudited)
|
|
|
|
|
ASSETS: |
|
|
|
|
|
|
Investments, at value (cost $126,739,102) |
|
|
$125,008,776 |
|
|
|
Cash |
|
|
3,255,038 |
|
|
|
Interest receivable |
|
|
1,704,192 |
|
|
|
Prepaid expenses |
|
|
46,908 |
|
|
|
|
|
|
|
|
Total assets |
|
|
130,014,914 |
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
Payable for securities purchased |
|
|
1,708,275 |
|
|
|
Investment advisory fee (Note 3) |
|
|
53,045 |
|
|
|
Administrative fee (Note 3) |
|
|
10,250 |
|
|
|
Accrued expenses |
|
|
42,560 |
|
|
|
Remarketable Variable Rate MuniFund Term Preferred Shares (400 shares issued and outstanding,
liquidation preference $100,000 per share, net of deferred offering costs of $69,850) (Note 6) |
|
|
39,930,150 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
41,744,280 |
|
|
|
|
|
|
|
|
NET ASSETS APPLICABLE TO COMMON STOCK |
|
|
$88,270,634 |
|
|
|
|
|
|
|
|
CAPITAL: |
|
|
|
|
|
|
Common stock ($0.01 par value per share; 599,996,750 shares authorized, 7,029,567 issued and
outstanding) |
|
|
$70,296 |
|
|
|
Additional paid-in capital |
|
|
96,299,508 |
|
|
|
Total distributable earnings (accumulated losses) |
|
|
(8,099,170 |
) |
|
|
|
|
|
|
|
Net assets applicable to common stock |
|
|
$88,270,634 |
|
|
|
|
|
|
|
|
NET ASSET VALUE PER SHARE OF COMMON STOCK |
|
|
$12.56 |
|
|
|
|
|
|
The accompanying notes are an integral
part of these financial statements.
11
DTF TAX-FREE INCOME 2028 TERM
FUND INC.
STATEMENT OF OPERATIONS
For the six months ended April 30, 2023
(Unaudited)
|
|
|
|
|
INVESTMENT INCOME: |
|
|
|
|
|
|
Interest |
|
|
$2,226,889 |
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
Interest expense and amortization of deferred offering costs on preferred shares (Note 6) |
|
|
910,213 |
|
|
|
Investment advisory fees (Note 3) |
|
|
324,738 |
|
|
|
Administrative fees (Note 3) |
|
|
61,095 |
|
|
|
Professional fees |
|
|
51,975 |
|
|
|
Reports to shareholders |
|
|
44,450 |
|
|
|
Custodian fees |
|
|
32,450 |
|
|
|
Transfer agent fees |
|
|
23,425 |
|
|
|
Directors fees |
|
|
7,504 |
|
|
|
Other expenses |
|
|
40,404 |
|
|
|
|
|
|
|
|
Total expenses |
|
|
1,496,254 |
|
|
|
|
|
|
|
|
Net investment income |
|
|
730,635 |
|
|
|
|
|
|
|
|
REALIZED AND UNREALIZED GAIN (LOSS): |
|
|
|
|
|
|
Net realized loss on investments |
|
|
(636,203 |
) |
|
|
Net change in unrealized appreciation/depreciation on investments |
|
|
5,688,413 |
|
|
|
|
|
|
|
|
Net realized and unrealized gain (loss) on investments |
|
|
5,052,210 |
|
|
|
|
|
|
|
|
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON STOCK RESULTING FROM
OPERATIONS |
|
|
$5,782,845 |
|
|
|
|
|
|
The accompanying notes are an integral
part of these financial statements.
12
DTF TAX-FREE INCOME 2028 TERM
FUND INC.
STATEMENTS OF CHANGES IN NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
For the six months ended April 30, 2023 (Unaudited) |
|
|
For the year ended October 31, 2022 |
|
|
|
|
OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
$730,635 |
|
|
|
$2,340,207 |
|
|
|
|
Net realized loss |
|
|
(636,203 |
) |
|
|
(5,507,254 |
) |
|
|
|
Net change in unrealized appreciation/depreciation |
|
|
5,688,413 |
|
|
|
(19,558,805 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets applicable to common stock resulting from operations |
|
|
5,782,845 |
|
|
|
(22,725,852 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTIONS TO COMMON STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
Net investment income and net realized gains |
|
|
(1,370,766 |
) |
|
|
(3,898,154 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in net assets from distributions to common stockholders |
|
|
(1,370,766 |
) |
|
|
(3,898,154 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets |
|
|
4,412,079 |
|
|
|
(26,624,006 |
) |
|
|
|
TOTAL NET ASSETS APPLICABLE TO COMMON STOCK: |
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
|
83,858,555 |
|
|
|
110,482,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
End of period |
|
|
$88,270,634 |
|
|
|
$83,858,555 |
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral
part of these financial statements.
13
DTF TAX-FREE INCOME 2028 TERM
FUND INC.
STATEMENT OF CASH FLOWS
For the six months ended April 30, 2023
(Unaudited)
|
|
|
|
|
INCREASE (DECREASE) IN CASH |
|
|
|
|
|
|
Cash flows provided by (used in) operating activities: |
|
|
|
|
|
|
Net increase in net assets resulting from operations |
|
|
$5,782,845 |
|
|
|
|
|
|
|
|
Adjustments to reconcile net increase in net assets resulting from operations to cash provided
by operating activities: |
|
|
|
|
|
|
Purchase of investment securities |
|
|
(4,786,950 |
) |
|
|
Proceeds from sales and maturities of investment securities |
|
|
8,475,607 |
|
|
|
Net amortization and accretion of premiums and discounts on debt securities |
|
|
607,838 |
|
|
|
Net realized loss on investments |
|
|
636,203 |
|
|
|
Net change in unrealized appreciation/depreciation on investments |
|
|
(5,688,413 |
) |
|
|
Amortization of deferred offering costs |
|
|
67,973 |
|
|
|
Decrease in interest receivable |
|
|
84,540 |
|
|
|
Decrease in prepaid and accrued expensesnet |
|
|
(57,165 |
) |
|
|
|
|
|
|
|
Cash provided by operating activities |
|
|
5,122,478 |
|
|
|
|
|
|
|
|
Cash flows provided by (used in) financing activities: |
|
|
|
|
|
|
Payment for partial redemption of RVMTP Shares |
|
|
(25,000,000 |
) |
|
|
Distributions paid to common stockholders |
|
|
(1,370,766 |
) |
|
|
|
|
|
|
|
Cash used in financing activities |
|
|
(26,370,766 |
) |
|
|
|
|
|
|
|
Net decrease in cash |
|
|
(21,248,288 |
) |
|
|
|
|
|
|
|
Cash at beginning of period |
|
|
24,503,326 |
|
|
|
|
|
|
|
|
Cash at end of period |
|
|
$3,255,038 |
|
|
|
|
|
|
|
|
Supplemental cash flow information: |
|
|
|
|
Cash paid during the period for interest expense |
|
|
$842,240 |
|
|
|
|
|
|
The accompanying notes are an integral
part of these financial statements.
14
DTF TAX-FREE INCOME 2028 TERM
FUND INC.
FINANCIAL HIGHLIGHTSSELECTED PER SHARE DATA AND RATIOS
The table below provides information about income and capital changes for a share of common stock outstanding throughout the periods indicated
(excluding supplemental data provided below):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended April 30, 2023 (Unaudited) |
|
|
For the year ended October 31, |
|
PER SHARE DATA: |
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
Net asset value, beginning of period |
|
|
$11.93 |
|
|
|
$15.72 |
|
|
|
$15.79 |
|
|
|
$15.75 |
|
|
|
$14.62 |
|
|
|
$15.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
0.10 |
|
|
|
0.33 |
|
|
|
0.43 |
|
|
|
0.44 |
|
|
|
0.39 |
|
|
|
0.47 |
|
|
|
|
|
|
|
|
Net realized and unrealized gain (loss) |
|
|
0.72 |
|
|
|
(3.57 |
) |
|
|
(0.01 |
) |
|
|
0.08 |
|
|
|
1.29 |
|
|
|
(0.92 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) from investment operations applicable to common stock |
|
|
0.82 |
|
|
|
(3.24 |
) |
|
|
0.42 |
|
|
|
0.52 |
|
|
|
1.68 |
|
|
|
(0.45 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions on common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
|
(0.19 |
) |
|
|
(0.39 |
) |
|
|
(0.49 |
) |
|
|
(0.48 |
) |
|
|
(0.43 |
) |
|
|
(0.59 |
) |
|
|
|
|
|
|
|
Net realized gains |
|
|
|
|
|
|
(0.16 |
) |
|
|
|
(1) |
|
|
|
(1) |
|
|
(0.12 |
) |
|
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions |
|
|
(0.19 |
) |
|
|
(0.55 |
) |
|
|
(0.49 |
) |
|
|
(0.48 |
) |
|
|
(0.55 |
) |
|
|
(0.62 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of period |
|
|
$12.56 |
|
|
|
$11.93 |
|
|
|
$15.72 |
|
|
|
$15.79 |
|
|
|
$15.75 |
|
|
|
$14.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share market value, end of period |
|
|
$11.00 |
|
|
|
$10.79 |
|
|
|
$14.26 |
|
|
|
$14.21 |
|
|
|
$14.18 |
|
|
|
$12.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON STOCK: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
3.44 |
%* |
|
|
3.13 |
% |
|
|
2.37 |
% |
|
|
2.27 |
% |
|
|
2.87 |
% |
|
|
2.58 |
% |
|
|
|
|
|
|
|
Operating expenses, without leverage |
|
|
1.30 |
%* |
|
|
1.32 |
% |
|
|
1.46 |
% |
|
|
1.17 |
% |
|
|
1.14 |
% |
|
|
1.16 |
% |
|
|
|
|
|
|
|
Net investment income |
|
|
1.68 |
%* |
|
|
2.39 |
% |
|
|
2.57 |
% |
|
|
2.83 |
% |
|
|
2.58 |
% |
|
|
3.10 |
% |
|
|
|
|
|
|
|
SUPPLEMENTAL DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total return on market value(2) |
|
|
3.75 |
% |
|
|
(21.04 |
)% |
|
|
3.62 |
% |
|
|
3.62 |
% |
|
|
19.70 |
% |
|
|
(8.72 |
)% |
|
|
|
|
|
|
|
Total return on net asset value(2) |
|
|
6.93 |
% |
|
|
(21.10 |
)% |
|
|
2.54 |
% |
|
|
3.39 |
% |
|
|
11.67 |
% |
|
|
(2.94 |
)% |
|
|
|
|
|
|
|
Portfolio turnover rate |
|
|
5 |
% |
|
|
7 |
% |
|
|
10 |
% |
|
|
13 |
% |
|
|
10 |
% |
|
|
23 |
% |
|
|
|
|
|
|
|
Net assets applicable to common stock, end of period (000s omitted) |
|
|
$88,271 |
|
|
|
$83,859 |
|
|
|
$110,483 |
|
|
|
$134,501 |
|
|
|
$134,205 |
|
|
|
$124,550 |
|
|
|
|
|
|
|
|
Preferred stock outstanding, end of period (000s omitted)(3) |
|
|
$40,000 |
|
|
|
$65,000 |
|
|
|
$65,000 |
|
|
|
$65,000 |
|
|
|
$65,000 |
|
|
|
$65,000 |
|
|
|
|
|
|
|
|
Asset coverage on preferred stock(4) |
|
|
$320,677 |
|
|
|
$229,013 |
|
|
|
$269,973 |
|
|
|
$306,925 |
|
|
|
$306,469 |
|
|
|
$291,615 |
|
|
|
|
|
|
|
|
Asset coverage ratio on preferred
stock(5) |
|
|
321 |
% |
|
|
229 |
% |
|
|
270 |
% |
|
|
307 |
% |
|
|
306 |
% |
|
|
292 |
% |
(1) |
Amount per share is less than $0.01. |
(2) |
Total return on market value assumes a purchase of common stock at the opening market price on the first
business day and a sale at the closing market price on the last business day of each period shown in the table and assumes reinvestment of dividends at the actual reinvestment prices obtained under the terms of the Funds dividend reinvestment
plan. Total return on net asset value uses the same methodology, but with use of net asset value for beginning, ending and reinvestment values. |
(3) |
The Funds preferred stock is not publicly traded. |
(4) |
Represents value of net assets applicable to common stock plus preferred stock outstanding at period end divided
by the preferred stock outstanding at period end, calculated per $100,000 liquidation preference per share of preferred stock. |
(5) |
Represents value of net assets applicable to common stock plus preferred stock outstanding at period end divided
by the preferred stock outstanding at period end. |
The accompanying notes are an integral part of these financial statements.
15
DTF TAX-FREE INCOME 2028 TERM FUND INC.
NOTES TO FINANCIAL STATEMENTS
April 30, 2023
(Unaudited)
Note 1. Organization
DTF Tax-Free Income 2028 Term Fund Inc. (formerly known as DTF
Tax-Free Income Inc.) (the Fund) was incorporated under the laws of the State of Maryland on September 24, 1991. The Fund commenced operations on November 29, 1991 as a diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended (the 1940 Act). The Funds investment objective is current income exempt from regular federal
income tax consistent with preservation of capital.
The Fund will terminate on or before March 1, 2028 unless (i) within 12
months prior to that date, the Fund conducts a tender offer for all of its outstanding shares at 100% of their net asset value, (ii) the results of the tender offer leave the Fund with net assets of at least $75 million and (iii) a
majority of the entire Board of Directors votes to reinstate the Funds perpetual existence.
Note 2. Significant
Accounting Policies
The Fund is an investment company that follows the accounting and reporting guidance of Accounting
Standards Codification (ASC) Topic 946 applicable to Investment Companies.
The following are the significant accounting
policies of the Fund.
A. Investment Valuation: Debt securities are generally valued based on the evaluated bid using prices
provided by one or more dealers regularly making a market in that security, an independent pricing service, or quotes from broker-dealers, when such prices are believed to reflect the fair value of such securities and are generally classified as
Level 2. The relative liquidity of some securities in the Funds portfolio may adversely affect the ability of the Fund to accurately value such securities. Any securities for which it is determined that market prices are unavailable or
inappropriate are fair valued using the Advisers policies adopted by the Board of Directors and are classified as Level 2 or 3 based on the valuation inputs.
B. Investment Transactions and Investment Income: Securities transactions are recorded on the trade date. Realized gains and losses on
sales of securities are determined on the identified cost basis. Interest income is recorded on the accrual basis. The Fund amortizes premiums and accretes discounts on securities using the effective interest method. Premiums on securities are
amortized over the period remaining until first call date, if any, or if none, the remaining life of the security and discounts are accreted over the remaining life of the security for financial reporting purposes.
C. Federal Income Taxes: It is the Funds intention to comply with requirements of Subchapter M of the Internal Revenue Code of
1986, as amended (the Code) applicable to regulated investment companies and to distribute substantially all of its taxable income and capital gains to its shareholders. Therefore, no provision for federal income or excise taxes is
required. Management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. The Funds U.S. federal income tax returns are generally subject to examination by
the Internal Revenue Service for a period of three years after they are filed. State and local tax returns and/or other filings may be subject to examination for different periods, depending upon the rules of each applicable jurisdiction.
D. Dividends and Distributions: The Fund declares and pays dividends on its common stock monthly from net investment income. Net capital
gains, if any, in excess of capital loss carryforwards are expected to be distributed annually. Dividends and distributions are recorded on the ex-dividend date. Dividends on the Funds Remarketable
Variable Rate MuniFund Term Preferred Shares (RVMTP Shares) are accrued on a daily basis and paid on a monthly basis and are determined as described in Note 6.
16
DTF TAX-FREE INCOME 2028 TERM FUND INC.
NOTES TO FINANCIAL STATEMENTS(Continued)
April 30, 2023
(Unaudited)
The amount and timing of distributions are generally determined in accordance with federal
tax regulations, which may differ from U.S. generally accepted accounting principles.
E. Use of Estimates: The preparation of
financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could
differ from those estimates.
Note 3. Agreements and Management Arrangements
A. Adviser: The Fund has an Advisory Agreement with Duff & Phelps Investment Management Co. (the Adviser), an
indirect, wholly owned subsidiary of Virtus Investment Partners, Inc. (Virtus). The investment advisory fee is payable monthly at an annual rate of 0.50% of the Funds average weekly managed assets, which is defined as the average
weekly value of the total assets of the Fund minus the sum of all accrued liabilities of the Fund (other than the aggregate amount of any outstanding borrowings or other indebtedness constituting financial leverage).
B. Administrator: The Fund has an Administration Agreement with Robert W. Baird & Co. Incorporated (the
Administrator or Baird). The administration fee is payable quarterly at an annual rate of 0.14% of the Funds average weekly net assets, which is defined as the average weekly value of the total assets of the Fund minus
the sum of all accrued liabilities of the Fund (including the aggregate amount of any outstanding borrowings or other indebtedness constituting financial leverage).
C. Directors: The Fund pays each director not affiliated with the Adviser an annual fee. Total fees paid to directors for the six months
ended April 30, 2023 were $7,504.
D. Affiliated Shareholder: At April 30, 2023, Virtus Partners, Inc. (a wholly owned
subsidiary of Virtus) held 34,265 shares of the Fund which represent 0.49% of shares of common stock outstanding. These shares may be sold at any time.
Note 4. Investment Transactions
Purchases and sales of investment securities (excluding short-term investments) for the six months ended April 30, 2023 were $6,495,225,
and $8,475,607, respectively.
Note 5. Federal Tax Information
At April 30, 2023, the approximate federal tax cost and aggregate gross unrealized appreciation (depreciation) were as follows:
|
|
|
|
|
|
|
Federal Tax
Cost |
|
Unrealized Appreciation |
|
Unrealized Depreciation |
|
Net Unrealized Depreciation |
$126,738,455 |
|
$1,155,864 |
|
$(2,885,543) |
|
$(1,729,679) |
At October 31, 2022, the Fund had unused capital loss carryforwards available to offset future capital gains,
if any, to the extent permitted by the Internal Revenue Code. The character and amounts of the carryforwards are given in the table below. These capital losses are not subject to expiration.
|
|
|
|
|
Short Term |
|
Long Term |
|
Total |
$159,845 |
|
$5,345,666 |
|
$5,505,511 |
17
DTF TAX-FREE INCOME 2028 TERM FUND INC.
NOTES TO FINANCIAL STATEMENTS(Continued)
April 30, 2023
(Unaudited)
Note 6. Remarketable Variable Rate MuniFund Term Preferred Shares
On November 2, 2020, the Fund issued 650 shares of Series 2050 Remarketable Variable Rate MuniFund Term Preferred Shares (RVMTP
Shares), each with a liquidation preference of $100,000. The RVMTP Shares were privately placed with an institutional investor. The proceeds were used to conduct an early redemption of the Funds Series 2021 Variable Rate MuniFund Term
Preferred Shares (VMTP Shares) at 100% of their liquidation preference plus accrued and unpaid dividends on November 12, 2020.
The RVMTP Shares are a floating-rate form of preferred shares and are subject to a mandatory tender on May 2, 2024, but may remain
outstanding either on the same terms or modified terms pursuant to an agreement between the Fund and the holder(s), or under a remarketing process at such time. The Fund is required to redeem all outstanding RVMTP Shares on November 2, 2050,
unless earlier redeemed, repurchased or extended. The RVMTP Shares are subject to optional and mandatory redemption in certain circumstances. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated
but unpaid dividends and a redemption premium, if any.
On November 16, 2022, the Fund voluntarily redeemed 250 of its outstanding
RVMTP Shares, at a redemption price equal to the aggregate liquidation preference of $25,000,000 plus accumulated but unpaid dividends.
Key terms of the series of RVMTP Shares at April 30, 2023 are as follows:
|
|
|
|
|
|
|
|
|
|
|
Series |
|
Shares Outstanding |
|
Liquidation Preference |
|
Weekly Rate Reset |
|
Rate |
|
Mandatory Redemption Date |
2050 |
|
400 |
|
$40,000,000 |
|
SIFMA Municipal Swap Index + 1.25% |
|
5.11% |
|
11/02/2050 |
The Fund incurred costs in connection with the issuance of the RVMTP Shares. These costs were recorded as a
deferred charge and are being amortized over a three-year term. Amortization of these deferred offering costs of $67,973 is included under the caption Interest expense and amortization of deferred offering costs on preferred shares on
the Statement of Operations and the unamortized balance is deducted from the carrying amount of the RVMTP Shares under the caption Remarketable Variable Rate MuniFund Term Preferred Shares on the Statement of Assets and Liabilities.
Dividends on the RVMTP Shares (which are treated as interest expense for financial reporting purposes) are accrued daily and paid monthly.
Interest expense may also include distributions of taxable income, if any, allocated to the RVMTP Shares. The average daily liquidation value outstanding and the weighted daily average dividend rate of the RVMTP Shares during the six months ended
April 30, 2023, were $41,933,702 and 4.04%, respectively.
The RVMTP Shares are not listed on any exchange or automated quotation
system. The fair value of the RVMTP Shares is estimated to be their liquidation preference. The RVMTP Shares are categorized as Level 2 within the fair value hierarchy. The Fund is subject to certain restrictions relating to the RVMTP Shares,
such as maintaining certain asset coverage, effective leverage ratio and overcollateralization ratio requirements. Failure to comply with these restrictions could preclude the Fund from declaring any distributions to common shareholders or
purchasing common shares and/or could trigger the mandatory redemption of the RVMTP Shares.
Note 7. Indemnifications
Under the Funds organizational documents, its officers and directors are indemnified against certain liabilities arising
out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts that provide general indemnifications to other parties. The Funds maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Fund that have not occurred. However, the Fund has not had prior claims or losses pursuant to these arrangements and expects the risk of loss to be remote.
18
DTF TAX-FREE INCOME 2028 TERM FUND INC.
NOTES TO FINANCIAL STATEMENTS(Continued)
April 30, 2023
(Unaudited)
Note 8. Subsequent Event
On May 16, 2023, the Fund filed notice that it would voluntarily redeem 250 of its outstanding RVMTP Shares on June 15, 2023, at a
redemption price equal to the aggregate liquidation preference of $25,000,000 plus accumulated but unpaid dividends.
19
RENEWAL OF INVESTMENT ADVISORY AGREEMENT (Unaudited)
Under Section 15(c) of the
Investment Company Act of 1940 (the 1940 Act), the terms of the Funds investment advisory agreement must be reviewed and approved at least annually by the Board of Directors of the Fund (the Board), including a majority
of the directors who are not interested persons of the Fund, as defined in section 2(a)(19) of the 1940 Act (the Independent Directors). Section 15(c) of the 1940 Act also requires the Funds directors to
request and evaluate, and the Funds investment adviser to furnish, such information as may reasonably be necessary to evaluate the terms of the investment advisory agreement. To assist the Board with this responsibility, the Board has
appointed a Contracts Committee, which is composed of the Independent Directors of the Fund and acts under a written charter that was most recently amended on December 17, 2015. A copy of the charter is available on the Funds website at
www.dpimc.com/dtf and in print to any shareholder, upon request.
The Contracts Committee, assisted by the advice of independent legal
counsel, conducted an annual review of the terms of the Funds contractual arrangements, including the investment advisory agreement with Duff & Phelps Investment Management Co. (the Adviser). Set forth below is a
description of the Contracts Committees annual review of the Funds investment advisory agreement, which provided the material basis for the Boards decision to continue the investment advisory agreement.
In the course of the Contracts Committees review, the members of the Contracts Committee considered all of the information they deemed
appropriate, including informational materials furnished by the Adviser in response to a request made by independent counsel on behalf of the Contracts Committee. In arriving at its recommendation that continuation of the investment advisory
agreement was in the best interests of the Fund and its shareholders, the Contracts Committee took into account all factors that it deemed relevant, without identifying any single factor or group of factors as
all-important or controlling. Among the factors considered by the Contracts Committee, and the conclusion reached with respect to each, were the following:
Nature, extent, and quality of services. The Contracts Committee considered the nature, extent and quality of the services provided to
the Fund by the Adviser. Among other materials, the Adviser furnished the Contracts Committee with a copy of its most recent investment adviser registration form (Form ADV). In evaluating the quality of the Advisers services, the Contracts
Committee noted the various complexities involved in the operations of the Fund, such as the use of leverage in the form of the Funds preferred stock, and concluded that the Adviser is consistently providing high-quality services to the Fund
in an increasingly complex environment. The Contracts Committee also considered the length of service of the individual professional employees of the Adviser who provide services to the Fund and noted that the two portfolio managers who retired in
2022 had served the Fund for 25 years and 16 years, respectively, and that the two new portfolio managers that the Adviser appointed to succeed them had worked for an affiliate of the Adviser for five years and for the same organization under
different ownership for many years prior to that. In the Contracts Committees view, the long-term service of capable and conscientious professionals provides a significant benefit to the Fund and its shareholders. The Contracts Committee also
considered the Funds investment performance as discussed below. The Contracts Committee also took into account its evaluation of the quality of the Advisers code of ethics and compliance program. The Contracts Committee also considered
the consistent quality of the services being provided by the Adviser even in light of the disruptions related to the COVID-19 pandemic. In light of the foregoing, the Contracts Committee concluded that it was
generally satisfied with the nature, extent and quality of the services provided to the Fund by the Adviser.
Investment performance of
the Fund and the Adviser. The Contracts Committee reviewed the Funds investment performance over time and compared that performance to other funds in its peer group. In making its comparisons, the Contracts Committee utilized data provided
by the Adviser and a report from Broadridge (Broadridge), an independent provider of investment company data. As reported by Broadridge, the Funds net asset value (NAV) total return ranked below the median among all
leveraged closed-end general and insured municipal debt funds for the 3- and 5-year periods ended June 30, 2022 but above
the median among such funds for the 1-year period ended June 30, 2022. The Adviser provided the Contracts Committee with performance information for the Fund for various periods, measured against two
benchmarks: the Bloomberg U.S. Municipal Index and the Lipper Leveraged Municipal Debt Funds Average (the Funds category as determined by Thomson Reuters Lipper). The Committee noted that the Funds
20
NAV total return and market value total return had each underperformed the Bloomberg U.S. Municipal Index for the 1-,
3- and 5-year periods ended June 30, 2022. The Committee further noted that the Funds total return on both an NAV basis and market value basis had
underperformed compared to the Lipper Leveraged Municipal Debt Fund Average for the 3- and 5-year periods ended June 30, 2022, but outperformed the average for the 1-year period ended June 30, 2022. In evaluating the Funds performance, the Contracts Committee further considered the Advisers explanation that the fixed-income investments comprising certain of
the benchmarks include higher yielding, lower-quality bonds in which the Fund is not permitted to invest.
Costs of services and profits
realized. The Contracts Committee considered the reasonableness of the compensation paid to the Adviser, in both absolute and comparative terms, and also the profits realized by the Adviser and its affiliates from its relationship with the Fund.
To facilitate this analysis, the Contracts Committee retained Broadridge to furnish a report comparing the Funds management fee (defined as the sum of the advisory fee and administration fee) and other expenses to the similar expenses of other
municipal debt funds selected by Broadridge (the Broadridge expense group). The Contracts Committee reviewed, among other things, information provided by Broadridge comparing the Funds contractual management fee rate (at common
asset levels) and actual management fee rate (reflecting fee waivers, if any) as a percentage of total assets and as a percentage of assets attributable to common stock to other funds in its Broadridge expense group. Based on the data provided on
management fee rates, the Contracts Committee noted that: (i) the Funds contractual management fee rate at a common asset level was in line with the median of its Broadridge expense group; (ii) the actual total expense rate was
higher than the median of its Broadridge expense group on the basis of assets attributable to common stock and on a total asset basis; and (iii) the actual management fee rate was higher than the median of its Broadridge expense group on the
basis of assets attributable to common stock, but in line with the median on a total asset basis. The Contracts Committee also noted that the Funds total expenses were higher during the comparison period due to
non-recurring expenses associated with the Funds 2021 tender offer, and that after adjusting for such non-recurring expenses, the Funds total expenses were
closer to (though still above) the median of its Broadridge expense group on a total asset basis.
In reviewing expense ratio comparisons
between the Fund and other funds in the peer group selected by Broadridge, the Contracts Committee considered leverage-related expenses separately from other expenses. The Contracts Committee noted that leverage-related expenses are not conducive to
direct comparisons between funds, because the leverage-related expenses on a funds income statement are significantly affected by the amount, type and tenor of the leverage used by each fund, among other factors, and considered the
Advisers report indicating that the tenor of the Funds leverage, as well as the relatively smaller size of the Fund as compared to many other funds in its peer group, were the primary drivers of the difference between the Funds
investment-related expenses and those of other funds in the Broadridge peer group. Also, unlike all the other expenses of the Fund (and other funds) which are incurred in return for a service, leverage expenses are incurred in return for the receipt
of additional capital that is then invested by the Fund (and other funds using leverage) in additional portfolio securities that produce revenue directly offsetting the leverage expenses. Accordingly, in evaluating the cost of the Funds
leverage, the Contracts Committee considered the specific benefits to the Funds common shareholders of maintaining such leverage, noting that the Funds management and the Board regularly monitor the amount, form, terms and risks of the
Funds leverage, and that such leverage has continued to be accretive, generating net income for the Funds common shareholders over and above its cost.
The Adviser also furnished the Contracts Committee with copies of its financial statements, and the financial statements of its parent company,
Virtus Investment Partners, Inc. The Adviser also provided information regarding the revenue and expenses related to its management of the Fund, and the methodology used by the Adviser in allocating such revenue and expenses among its various
clients. In reviewing those financial statements and other materials, the Contracts Committee examined the profitability of the investment advisory agreement to the Adviser and determined that the profitability of that contract was reasonable in
light of the services rendered to the Fund. The Contracts Committee considered that the Adviser must be able to compensate its employees at competitive levels in order to attract and retain high-quality personnel to provide high-quality service to
the Fund. The Contracts Committee concluded that the investment advisory fee was the product of arms length bargaining and that it was fair and reasonable to the Fund.
Economies of scale. The Contracts Committee considered whether the Fund has appropriately benefited from any economies of scale. The
Contracts Committee concluded that currently the Fund is not sufficiently large to realize benefits
21
from economies of scale with fee breakpoints. The Contracts Committee encouraged the Adviser to continue to work towards reducing costs by leveraging relationships with service providers across
the complex of funds advised by the Adviser.
Comparison with other advisory contracts. The Contracts Committee also received
comparative information from the Adviser with respect to its standard fee schedule for investment advisory clients other than the Fund. The Contracts Committee noted that, among all accounts managed by the Adviser, the Funds advisory fee rate
is higher than the Advisers standard fee schedule. However, the Contracts Committee noted that the services provided by the Adviser to the Fund are significantly more extensive and demanding than the services provided by the Adviser to its non-investment company, institutional accounts. Specifically, in providing services to the Fund, the Contracts Committee considered that the Adviser needs to: (1) comply with the 1940 Act, the Sarbanes-Oxley
Act and other federal securities laws and New York Stock Exchange requirements, (2) provide for external reporting (including semi-annual reports to shareholders, annual audited financial statements and disclosure of proxy voting), tax
compliance and reporting (which are particularly complex for investment companies), requirements of Section 19 of the 1940 Act relating to the source of distributions, (3) prepare for and attend meetings of the Board and its committees,
(4) communicate with Board and committee members between meetings, (5) communicate with a retail shareholder base consisting of thousands of investors, (6) manage the use of financial leverage and respond to changes in the financial
markets and regulatory environment that could affect the amount and type of the Funds leverage and (7) respond to unanticipated issues in the financial markets or regulatory environment that can impact the Fund. Based on the fact that the
Adviser only provides the foregoing services to its investment company clients and not to its institutional account clients, the Contracts Committee concluded that the management fees charged to the Fund are reasonable compared to those charged to
other clients of the Adviser, when the nature and scope of the services provided to the Funds are taken into account. Furthermore, the Contracts Committee noted that many of the Advisers other clients would not be considered like
accounts of the Fund because these accounts are not of similar size and do not have the same investment objectives as, or possess other characteristics similar to, the Fund.
Indirect benefits. The Contracts Committee considered possible sources of indirect benefits to the Adviser from its relationship to the
Fund, and enhanced reputation that may aid in obtaining new clients. As a fixed-income fund, the Contracts Committee noted that the Fund does not utilize affiliates of the Adviser for brokerage purposes.
Conclusion. Based upon its evaluation of all material factors, including the foregoing, and assisted by the advice of independent legal
counsel, the Contracts Committee concluded that the continued retention of the Adviser as investment adviser to the Fund was in the best interests of the Fund and its shareholders. Accordingly, the Contracts Committee recommended to the full Board
that the investment advisory agreement with the Adviser be continued for a one-year term ending March 1, 2024. On December 14, 2022, the Contracts Committee presented its recommendations, and the
criteria on which they were based, to the full Board, whereupon the Board, including all of the Independent Directors voting separately, accepted the Contracts Committees recommendations and unanimously approved the continuation of the current
investment advisory agreement with the Adviser for a one-year term ending March 1, 2024.
INFORMATION
ABOUT PROXY VOTING BY THE FUND (Unaudited)
Although the Fund does not typically hold voting securities, a description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available without charge, upon request, by calling the Administrator toll-free at (833) 604-3163 or is available on the Funds website www.dpimc.com/dtf or on the SECs website
www.sec.gov.
22
INFORMATION ABOUT THE FUNDS PORTFOLIO HOLDINGS (Unaudited)
The Fund files its complete
schedule of portfolio holdings with the SEC for the first and third fiscal quarters of each fiscal year (quarters ended January 31 and July 31) as an exhibit to Form NPORT-P. The Funds Form NPORT-P is available on the SECs website at www.sec.gov. In addition, the Funds schedule of portfolio holdings is available without charge, upon request, by calling the Administrator toll-free at (833)
604-3163 or is available on the Funds website at www.dpimc.com/dtf.
ADDITIONAL
INFORMATION (Unaudited)
Notice is hereby given in accordance with Section 23(c) of the 1940 Act that the Fund may from time to time purchase its shares of common
stock in the open market.
REPORT ON ANNUAL MEETING OF SHAREHOLDERS (Unaudited)
The Annual Meeting of Shareholders
of the Fund was held on March 6, 2023. The following is a description of each matter voted upon at the meeting and the number of votes cast on each matter:
|
|
|
|
|
|
|
|
|
|
|
Shares Voted For |
|
|
Shares Withheld |
|
1. Election of directors* |
|
|
|
|
|
|
|
|
To elect three directors to serve until the Annual Meeting in the year indicated below or until
their successors are duly elected and qualified: |
|
|
|
|
|
|
|
|
Mareilé B. Cusack (2026) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.. . . . . . |
|
|
5,398,962 |
|
|
|
316,165 |
|
David J. Vitale (2025) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.. . . . |
|
|
5,202,169 |
|
|
|
512,958 |
|
Geraldine M. McNamara (2026)** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.. |
|
|
400 |
|
|
|
0 |
|
* |
Directors whose term of office continued beyond this meeting are as follows: Donald C. Burke, Philip R.
McLoughlin and Eileen A. Moran. |
** |
Elected by the holder of the Funds preferred stock, voting as a separate class. |
23
Board of Directors
David J. Vitale
Chair
Eileen A. Moran
Vice Chair
Donald C. Burke
Mareilé B. Cusack
Philip R. McLoughlin
Geraldine M. McNamara
Officers
David D. Grumhaus, Jr.
President and Chief Executive Officer
Daniel J. Petrisko, CFA
Executive Vice President and Assistant Secretary
Alan M. Meder, CFA, CPA
Treasurer and Assistant Secretary
Kathleen L. Hegyi
Chief Compliance Officer
Ronald H. Schwartz, CFA
Vice President
Dusty L. Self
Vice President
Jennifer S. Fromm
Vice President and Secretary
Dianna P. Wengler
Vice President and Assistant Secretary
Timothy P. Riordan
Vice President
DTF Tax-Free Income 2028 Term Fund Inc.
Common stock traded on the New York
Stock Exchange under the symbol DTF
Investment Adviser
Duff & Phelps Investment Management Co.
200 South Wacker Drive, Suite 500
Chicago, lL 60606
Call toll-free (800) 338-8214
www.dpimc.com/dtf
Administrator
Robert W. Baird & Co. Incorporated
500 West Jefferson Street
Louisville, KY 40202
Call toll-free (833) 604-3163
Transfer Agent and Dividend Disbursing Agent
American Stock Transfer & Trust Company,
LLC
6201 15th Avenue
Brooklyn, NY 11219
Call toll-free (866) 668-8552
Custodian
State Street Bank and Trust Company
Legal Counsel
Mayer Brown LLP
Independent Registered Public Accounting Firm
Ernst & Young LLP
Not applicable.
ITEM 3. |
AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
ITEM 4. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
ITEM 5. |
AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
Included as part of the report to stockholders filed under Item 1 of this report.
ITEM 7. |
DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
Not applicable.
ITEM 8. |
PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
ITEM 9. |
PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
|
During the period covered by this report, no purchases were made by or on behalf of the registrant or any
affiliated purchaser (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934 (the Exchange Act)) of shares or other units of any class of the registrants equity
securities that is registered by the registrant pursuant to Section 12 of the Exchange Act.
ITEM 10. |
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
No changes to the procedures by which shareholders may recommend nominees to the registrants board of directors have been implemented
after the registrant last provided disclosure in response to the requirements of Item 22(b)(15) of Schedule 14A (i.e., in the registrants Proxy Statement dated January 13, 2023) or this Item.
ITEM 11. |
CONTROLS AND PROCEDURES. |
(a) The registrants principal executive officer and principal financial officer have concluded that the registrants 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 Exchange Act.
(b) There has been no change in
the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the most recent fiscal period that has materially affected, or is
reasonably likely to materially affect, the registrants internal control over financial reporting.
ITEM 12. |
DISCLOSURES OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES. |
Not applicable.
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 2028 TERM FUND INC. |
|
|
By (Signature and Title) |
|
/S/ DAVID D. GRUMHAUS,
JR.
|
|
|
|
|
David D. Grumhaus, Jr. |
|
|
President and Chief Executive Officer |
|
|
(Principal Executive Officer) |
Date |
|
June 30, 2023 |
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.
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|
|
By (Signature and Title) |
|
/S/ DAVID D. GRUMHAUS,
JR.
|
|
|
|
|
David D. Grumhaus, Jr. |
|
|
President and Chief Executive Officer |
|
|
(Principal Executive Officer) |
Date |
|
June 30, 2023 |
|
|
By (Signature and Title) |
|
/S/ ALAN M.
MEDER
|
|
|
|
|
Alan M. Meder |
|
|
Treasurer and Assistant Secretary |
|
|
(Principal Financial and Accounting Officer) |
Date |
|
June 30, 2023 |
EXHIBIT 99.CERT
CERTIFICATIONS
I, David D. Grumhaus, Jr.,
certify that:
1. I have reviewed this report on Form N-CSR of DTF Tax-Free Income 2028 Term Fund Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed
under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the
period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants
board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in
the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrants internal control over financial reporting.
Date: June 30, 2023
|
/S/ DAVID D. GRUMHAUS, JR. |
David D. Grumhaus, Jr. |
President and Chief Executive Officer |
(Principal Executive Officer) |
CERTIFICATIONS
I, Alan M. Meder, certify that:
1. I have reviewed this report
on Form N-CSR of DTF Tax-Free Income 2028 Term Fund Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed
under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the
period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants
board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in
the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrants internal control over financial reporting.
Date: June 30, 2023
|
/s/ ALAN M. MEDER |
Alan M. Meder |
Treasurer and Assistant Secretary |
(Principal Financial and Accounting Officer) |
EXHIBIT 99.906CERT
CERTIFICATION PURSUANT TO
18
U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In
connection with the Semi-Annual Report of DTF Tax-Free Income 2028 Term Fund Inc. (the Company) on Form N-CSR for the period ending April 30, 2023 as filed with the Securities and Exchange
Commission on the date hereof (the Report), I, David D. Grumhaus, Jr., President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: June 30, 2023
|
/S/ DAVID D. GRUMHAUS, JR. |
David D. Grumhaus, Jr. |
President and Chief Executive Officer |
(Principal Executive Officer) |
This Section 906 certification is being furnished to the SEC, rather than filed with the SEC, as permitted under
applicable SEC rules.
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED
PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Semi-Annual Report of DTF Tax-Free Income 2028 Term Fund Inc. (the Company) on Form N-CSR for the period ending
April 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Alan M. Meder, Treasurer and Assistant Secretary of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to
ss. 906 of the Sarbanes-Oxley Act of 2002, that:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Company.
Date: June 30, 2023
|
/S/ ALAN M. MEDER |
Alan M. Meder |
Treasurer and Assistant Secretary |
(Principal Financial and Accounting Officer) |
This Section 906 certification is being furnished to the SEC, rather than filed with the SEC, as permitted under
applicable SEC rules.
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