UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-06416
DTF Tax-Free Income Inc.
(Exact name of registrant as specified in charter) |
55 East Monroe Street, Suite 3600, Chicago, Illinois 60603
(Address of principal executive offices) (Zip code)
Alan M. Meder | Lawrence R. Hamilton | |
DTF Tax-Free Income Inc. | Mayer Brown LLP | |
55 East Monroe Street, Suite 3600 | 71 South Wacker Drive | |
Chicago, Illinois 60603 | Chicago, Illinois 60606 |
(Name and address of agents for service) |
Registrants telephone number, including area code: (312) 263-2610
Date of fiscal year end: October 31
Date of reporting period: January 31, 2008
Item 1 Schedule of Investments
DTF TAX-FREE INCOME INC.
Portfolio of Investments
As of 1/31/2008 (unaudited)
Principal |
Description (a) |
Value | ||||||||
LONG-TERM INVESTMENTS |
144.9 | % | ||||||||
Alabama |
6.0 | % | ||||||||
DCH Health Care Auth. Rev. |
||||||||||
$ | 1,000 | 5.125%, 6/1/36 |
$ | 999,190 | ||||||
Jefferson Cnty. Swr. Rev. |
||||||||||
Capital Impvt. |
||||||||||
3,000 | (b) | 5.125%, 2/1/29, Ser. A, F.G.I.C. |
||||||||
Pre-refunded 2/1/09 @ $101 |
3,118,620 | |||||||||
2,100 | (b) | 5.00%, 2/1/33, Ser. A, F.G.I.C. |
||||||||
Pre-refunded 2/1/09 @ $101 |
2,179,611 | |||||||||
1,900 | (b) | 5.00%, 2/1/33, Ser. A, F.G.I.C. |
||||||||
Pre-refunded 2/1/09 @ $101 |
1,973,378 | |||||||||
8,270,799 | ||||||||||
California |
21.7 | % | ||||||||
California St. Gen. Oblig., |
||||||||||
1,000 | 5.00%, 11/1/32 |
1,004,140 | ||||||||
Fresno Swr. Rev., Ser. A-1, |
||||||||||
3,030 | 6.00%, 9/1/09, A.M.B.A.C. |
3,207,497 | ||||||||
2,000 | 6.25%, 9/1/14, A.M.B.A.C. |
2,266,480 | ||||||||
Golden State Tobacco Securitization Corp. Rev., |
||||||||||
1,000 | 5.75%, 6/1/47, Ser. A-1 |
956,510 | ||||||||
Los Angeles Wastewtr. Sys. Rev., |
||||||||||
2,000 | 5.00%, 6/1/26, Ser. A, M.B.I.A. |
2,053,500 | ||||||||
Los Angeles Wtr. & Pwr. Rev., |
||||||||||
1,000 | 5.25%, 7/1/21, Ser. A-A-1, F.S.A. |
1,057,190 | ||||||||
1,000 | 5.375%, 7/1/21, Ser. A-A-2, M.B.I.A. |
1,067,160 | ||||||||
Metro Wtr. Dist. Southern California Waterworks Rev., |
||||||||||
1,500 | 5.00%, 10/1/29, Ser. B-3, M.B.I.A. |
1,554,930 | ||||||||
Pomona Sngl. Fam. Mtge. Rev., |
||||||||||
1,200 | (b) | 7.375%, 8/1/10, Ser. B, GNMA Collateral |
||||||||
Escrowed to maturity |
1,265,028 | |||||||||
Riverside Cnty. Sngl. Fam. Rev., |
||||||||||
2,500 | (b) | 7.80%, 5/1/21, Ser. A, GNMA Collateral |
||||||||
Escrowed to maturity |
3,454,400 | |||||||||
San Bernardino Cnty. Residential |
||||||||||
Mtge. Rev., |
||||||||||
7,840 | (b) | 9.60%, 9/1/15, |
||||||||
Escrowed to maturity |
11,263,258 | |||||||||
Saratoga Unified Sch. Dist., Gen. Oblig. |
||||||||||
1,040 | Zero Coupon, 9/1/20, Ser. A, F.G.I.C. |
588,983 | ||||||||
29,739,076 | ||||||||||
Connecticut |
3.3 | % | ||||||||
Connecticut St. Health & Edl. Facs. Auth. Rev., |
||||||||||
1,000 | 5.00%, 7/1/25, Ser. C, Radian |
1,018,560 | ||||||||
Mashantucket Western Pequot |
||||||||||
Tribe Spl. Rev., 144A, |
||||||||||
3,500 | (c) | 5.75%, 9/1/18, Ser. B |
3,524,500 | |||||||
4,543,060 | ||||||||||
District of Columbia |
1.1 | % | ||||||||
District of Columbia Wtr. & Swr. Auth. Rev., |
||||||||||
1,500 | 5.00%, 10/1/33, F.G.I.C. |
1,519,830 | ||||||||
Principal |
Description (a) |
Value | ||||||||
Florida |
8.7 | % | ||||||||
Brevard Cnty. Hlth. Fac. Auth. Rev., |
||||||||||
$ | 1,005 | 5.00%, 4/1/34 |
$ | 981,985 | ||||||
Escambia Cnty. Hlth. Fac. Auth. Rev., |
||||||||||
1,190 | 5.125%, 10/1/19 |
1,202,757 | ||||||||
Florida Mun. Ln. Council Rev., |
||||||||||
2,210 | 5.375%, 8/1/20, Ser. B, M.B.I.A. |
2,411,640 | ||||||||
Highlands Cnty. Hlth. Fac. Auth. Rev., |
||||||||||
2,000 | 5.125%, 11/15/32, Ser. G |
2,004,760 | ||||||||
St. Petersburg Public Util. Rev., |
||||||||||
5,000 | (b) | 5.00%, 10/1/28, Ser. A, F.S.A. |
||||||||
Pre-refunded 10/1/09 @ $101 |
5,283,550 | |||||||||
11,884,692 | ||||||||||
Georgia |
16.6 | % | ||||||||
Atlanta Wtr. & Wastewtr. Rev., |
||||||||||
Ser. A, |
||||||||||
2,385 | 5.00%, 11/1/29, F.G.I.C. |
2,406,012 | ||||||||
2,615 | (b) | 5.00%, 11/1/29, F.G.I.C. |
||||||||
Pre-refunded 5/1/09 @ $101 |
2,725,745 | |||||||||
715 | 5.00%, 11/1/38, F.G.I.C. |
718,561 | ||||||||
785 | (b) | 5.00%, 11/1/38, F.G.I.C. |
||||||||
Pre-refunded 5/1/09 @ $101 |
818,245 | |||||||||
De Kalb Cnty. Wtr. & Swr. Rev., |
||||||||||
4,000 | (b) | 5.00%, 10/1/24 |
||||||||
Pre-refunded 10/1/09 @ $101 |
4,226,840 | |||||||||
Fulton Cnty. Sch. Dist., Gen. Oblig. |
||||||||||
2,000 | 5.375%, 1/1/16 |
2,309,600 | ||||||||
Georgia Mun. Elec. Auth. Pwr. Rev., |
||||||||||
145 | (b) | 6.40%, 1/1/13, Ser. Y, A.M.B.A.C. |
||||||||
Escrowed to maturity |
163,296 | |||||||||
2,440 | 6.40%, 1/1/13, A.M.B.A.C. |
2,735,704 | ||||||||
30 | (b) | 6.40%, 1/1/13 |
||||||||
Pre-refunded 1/1/11 @ $100 |
33,324 | |||||||||
Georgia Mun. Elec. Auth. Pwr. Rev., |
||||||||||
5,500 | 6.50%, 1/1/20, Ser. X, A.M.B.A.C. |
6,637,235 | ||||||||
22,774,562 | ||||||||||
Hawaii |
1.5 | % | ||||||||
Hawaii Dept. Budget & Fin. Rev., |
||||||||||
2,000 | 4.80%, 1/1/25, Ser. A, F.G.I.C. |
1,984,820 | ||||||||
Idaho |
0.5 | % | ||||||||
Idaho Hsg. Agcy., |
||||||||||
Sngl. Fam. Mtge. Sr., Rev., |
||||||||||
345 | 6.65%, 7/1/14, Ser. B |
358,296 | ||||||||
258 | 6.60%, 7/1/27, Ser. B |
266,271 | ||||||||
624,567 | ||||||||||
Illinois |
4.8 | % | ||||||||
Chicago Gen. Oblig., |
||||||||||
4,000 | 6.25%, 1/1/11, A.M.B.A.C. |
4,239,120 | ||||||||
Chicago Multi-Family Hsg. Rev., |
||||||||||
500 | 4.90%, 3/20/44, F.H.A. |
467,170 | ||||||||
Chicago Park Dist., Gen. Oblig., |
||||||||||
1,000 | 5.00%, 1/1/27, Ser. A, A.M.B.A.C. |
1,033,190 | ||||||||
Illinois Fin. Auth. Education Rev., |
||||||||||
1,000 | 5.375%, 9/1/32, Ser. C., A.C.A. |
855,170 | ||||||||
6,594,650 | ||||||||||
Principal |
Description (a) |
Value | ||||||||
Indiana |
5.8 | % | ||||||||
Indiana Mun. Pwr. Agcy., Pwr. |
||||||||||
Supply Sys. Rev., |
||||||||||
$ | 5,000 | 6.00%, 1/1/13, Ser. B, M.B.I.A. |
$ | 5,622,400 | ||||||
Indianapolis Local Pub. Impvt. |
||||||||||
Bond Bank Waterworks Proj. Rev., |
||||||||||
2,100 | (b) | 5.25%, 7/1/33, Ser. A, M.B.I.A. |
||||||||
Pre-refunded 7/1/12 @ $100 |
2,326,107 | |||||||||
7,948,507 | ||||||||||
Kentucky |
2.9 | % | ||||||||
Louisville & Jefferson Cnty. Met. |
||||||||||
Swr. Dist., Swr. & Drain Sys. Rev., |
||||||||||
2,000 | 5.00%, 5/15/30, Ser. A, F.G.I.C. |
2,017,480 | ||||||||
Louisville & Jefferson Cnty. Metro. Govt. |
||||||||||
Health Sys. Rev., |
||||||||||
1,000 | 5.00%, 10/1/30 |
976,080 | ||||||||
1,000 | 5.25%, 10/1/36 |
994,050 | ||||||||
3,987,610 | ||||||||||
Massachusetts |
6.1 | % | ||||||||
Boston Wtr. & Swr. Comm. Rev., |
||||||||||
2,000 | 5.00%, 11/1/28, Ser. D, F.G.I.C. |
2,028,320 | ||||||||
Massachusetts St. Dev. Finance Agency, |
||||||||||
Solid Waste Disp. Rev. |
||||||||||
1,500 | 5.00%, 2/1/36 |
1,413,885 | ||||||||
Massachusetts St. Tpk. Auth., |
||||||||||
Metro. Highway Sys. Rev., |
||||||||||
2,355 | 5.125%, 1/1/23, Ser. B, M.B.I.A. |
2,381,282 | ||||||||
2,500 | 4.75%, 1/1/34, Ser. A, A.M.B.A.C. |
2,452,400 | ||||||||
8,275,887 | ||||||||||
Michigan |
3.8 | % | ||||||||
Detroit Wtr. Supply Sys. Rev., |
||||||||||
Ser. A, |
||||||||||
2,000 | (b) | 5.50%, 7/1/24, F.G.I.C. |
||||||||
Pre-refunded 7/1/11 @ $100 |
2,196,660 | |||||||||
2,000 | 5.00%, 7/1/30, F.G.I.C. |
2,021,180 | ||||||||
Michigan Tobacco Settlement Finance Auth. Rev., |
||||||||||
1,000 | 6.00%, 6/1/48, Ser. A |
982,020 | ||||||||
5,199,860 | ||||||||||
Nebraska |
4.1 | % | ||||||||
Omaha Pub. Pwr. Dist., |
||||||||||
Elec. Rev., Ser. B, |
||||||||||
2,500 | (b) | 6.15%, 2/1/12 |
||||||||
Escrowed to maturity |
2,705,950 | |||||||||
2,500 | (b) | 6.20%, 2/1/17 |
||||||||
Escrowed to maturity |
2,945,850 | |||||||||
5,651,800 | ||||||||||
Nevada |
3.3 | % | ||||||||
Las Vegas Valley Wtr. Dist., |
||||||||||
Gen. Oblig., |
||||||||||
1,400 | 5.00%, 6/1/25, Ser. B, M.B.I.A. |
1,457,792 | ||||||||
3,000 | 5.00%, 6/1/32, Ser. A, F.G.I.C. |
3,053,880 | ||||||||
4,511,672 | ||||||||||
New Jersey |
4.0 | % | ||||||||
New Jersey Econ. Dev. Auth. Rev., |
||||||||||
1,025 | 4.95%, 3/1/47 |
938,880 | ||||||||
New Jersey St. Gen. Oblig., |
||||||||||
2,000 | 5.25%, 7/1/17, Ser. H |
2,277,800 | ||||||||
New Jersey Trans. Trust Fund Auth. Rev., |
||||||||||
2,000 | 5.25%, 12/15/22, Ser. A |
2,258,880 | ||||||||
5,475,560 | ||||||||||
Principal |
Description (a) |
Value | ||||||||
New York |
8.7 | % | ||||||||
Albany Industrial Dev. Agy. Rev., |
||||||||||
$ | 1,000 | 5.00%, 4/1/32, Ser. A |
$ | 878,970 | ||||||
Long Island Pwr. Auth. Elec. |
||||||||||
Sys. Rev., |
||||||||||
4,000 | (b) | 5.25%, 12/1/26, Ser. A, M.B.I.A. |
||||||||
Pre-refunded 6/1/08 @ $101 |
4,082,560 | |||||||||
800 | 5.00%, 12/1/35, Ser. B |
821,336 | ||||||||
Metro. Trans. Auth. Rev., |
||||||||||
1,000 | 5.25%, 11/15/31, Ser. A, F.G.I.C. |
1,034,480 | ||||||||
New York City Mun. Wtr. Fin. Auth., |
||||||||||
Wtr. & Swr. Sys. Rev., |
||||||||||
5,000 | 5.00%, 6/15/29, Ser. B, F.S.A. |
5,141,000 | ||||||||
11,958,346 | ||||||||||
Ohio |
6.2 | % | ||||||||
Buckeye Tobacco Settlement Financing Auth., |
||||||||||
3,000 | 6.00%, 6/1/42, Ser. A-2 |
2,931,480 | ||||||||
Deerfield Twp. Tax Increment Rev., |
||||||||||
750 | 5.00%, 12/1/25 |
750,503 | ||||||||
Hamilton Elec. Sys. Rev. |
||||||||||
1,000 | 4.60%, 10/15/20, Ser. A, F.S.A. |
1,049,760 | ||||||||
Ohio St. Air Quality Dev. Auth. Rev., |
||||||||||
1,000 | 4.80%, 9/1/36, Ser. A, F.G.I.C. |
950,180 | ||||||||
Ohio St. Wtr. Dev. Auth. Rev., |
||||||||||
2,445 | 5.50%, 6/1/20, Ser. B, F.S.A. |
2,860,577 | ||||||||
8,542,500 | ||||||||||
Pennsylvania |
3.2 | % | ||||||||
Delaware Cnty. Auth. Rev., |
||||||||||
2,000 | 5.00%, 6/1/21, Ser. A, Radian |
2,080,760 | ||||||||
East Stroudsburg Area Sch. Dist., Gen. Oblig. |
||||||||||
1,000 | 7.75%, 9/1/27, Ser. A, F.G.I.C. |
1,282,500 | ||||||||
Pennsylvania Economic Dev. Fin. |
||||||||||
Auth. Res. Recov. Rev., |
||||||||||
1,000 | 4.625%, 12/1/18, Ser. F, A.M.B.A.C. |
992,040 | ||||||||
4,355,300 | ||||||||||
Puerto Rico |
0.8 | % | ||||||||
Puerto Rico Elec. Pwr. Auth. Rev., |
||||||||||
1,000 | 5.00%, 7/1/25, Ser. PP, F.G.I.C. |
1,018,080 | ||||||||
South Carolina |
1.3 | % | ||||||||
Spartanburg Waterworks Rev., |
||||||||||
1,500 | (b) | 5.25%, 6/1/28, F.G.I.C. |
||||||||
Pre-refunded 6/1/14 @ $100 |
1,702,830 | |||||||||
Tennessee |
1.1 | % | ||||||||
Tennessee Energy Acquisition Corp. Rev., |
||||||||||
1,500 | 5.25%, 9/1/20, Ser. A |
1,561,275 | ||||||||
Texas |
18.7 | % | ||||||||
Alliance Airport Auth. Inc. Rev., |
||||||||||
1,000 | 4.85%, 4/1/21 |
968,340 | ||||||||
Bexar Met. Wtr. Dist. |
||||||||||
Waterworks Sys. Rev., |
||||||||||
2,500 | 5.00%, 5/1/25, M.B.I.A. |
2,557,825 | ||||||||
Coastal Wtr. Auth. Contract Rev., |
||||||||||
4,000 | 5.00%, 12/15/25, F.S.A. |
4,057,560 | ||||||||
Dallas Gen. Oblig. |
||||||||||
2,000 | 4.50%, 2/15/23 |
2,017,600 | ||||||||
El Paso Wtr. & Swr. Rev., |
||||||||||
1,555 | 5.50%, 3/1/12, Ser. A, F.S.A. |
1,723,064 | ||||||||
Harris Cnty. Gen. Oblig., |
||||||||||
1,650 | 7.00%, 8/15/10, Ser. A |
1,836,928 | ||||||||
Houston Wtr. & Swr. Sys. Rev., |
||||||||||
1,500 | (b) | 5.25%, 12/1/23, Ser. B, F.G.I.C. |
||||||||
Pre-refunded 12/1/10 @ $100 |
1,618,215 | |||||||||
3,500 | (b) | 5.00%, 12/1/28, Ser. A, F.S.A. |
||||||||
Pre-refunded 12/1/09 @ $100 |
3,678,920 | |||||||||
Lower Colorado River Auth. Rev., |
||||||||||
2,000 | 5.00%, 5/15/31, F.S.A. |
2,031,340 |
Principal |
Description (a) |
Value | |||||||||
Texas (continued) | |||||||||||
San Antonio Elec. & Gas Rev., |
|||||||||||
$ | 2,595 | 5.00%, 2/1/18, Ser. A |
$ | 2,666,259 | |||||||
1,405 | (b) | 5.00%, 2/1/18, Ser. A |
|||||||||
Pre-refunded 2/1/09 @ 101 |
1,459,121 | ||||||||||
University North Texas Rev., |
|||||||||||
1,000 | 4.50%, 4/15/25, F.G.I.C. |
977,210 | |||||||||
25,592,382 | |||||||||||
Virginia |
4.1 | % | |||||||||
Henrico Cnty. Wtr. & Swr. Rev., |
|||||||||||
3,985 | 5.00%, 5/1/28 |
4,124,116 | |||||||||
Virginia St. Hsg. Dev. Auth. Rev., |
|||||||||||
1,500 | 4.55%, 1/1/24 |
1,456,920 | |||||||||
5,581,036 | |||||||||||
Washington |
2.2 | % | |||||||||
Energy Northwest Wind Proj. Rev., |
|||||||||||
500 | 4.75%, 7/1/21, M.B.I.A. |
509,255 | |||||||||
King Cnty. Swr. Rev., |
|||||||||||
2,500 | 5.00%, 1/1/31, F.G.I.C. |
2,534,475 | |||||||||
3,043,730 | |||||||||||
West Virginia |
1.1 | % | |||||||||
Monongalia Cnty. Building Commission |
|||||||||||
Hospital Rev. |
|||||||||||
1,500 | 5.00%, 7/1/30, Ser. A |
1,441,305 | |||||||||
Wyoming |
3.3 | % | |||||||||
Wyoming St. Farm Loan Brd. |
|||||||||||
Cap. Facs. Rev., |
|||||||||||
4,000 | 5.75%, 10/1/20 |
4,534,880 | |||||||||
Total long-term investments (cost $182,646,395) |
198,318,616 | ||||||||||
Shares |
|||||||||||
SHORT-TERM INVESTMENT |
0.3 | % | |||||||||
478,944 | Goldman Sachs Tax Exempt Money Market Fund (cost $478,944) |
$ | 478,944 | ||||||||
Total Investments (cost $183,125,339) | 145.2 | % | 198,797,560 | ||||||||
Other assets in excess of liabilities | 2.3 | % | 3,091,506 | ||||||||
Liquidation value of remarketed preferred stock | (47.5 | %) | (65,000,000 | ) | |||||||
Net Assets Applicable to Common Stock | 100.0 | % | $ | 136,889,066 | |||||||
Net asset value per share of common stock ($136,889,066 / 8,507,456) | $ | 16.09 | |||||||||
(a) | The following abbreviations are used in portfolio descriptions to indicate providers of credit support, in whole or in part: |
A.C.A. - ACA Financial Guaranty Corporation.
A.M.B.A.C. - Ambac Assurance Corporation.
F.G.I.C. - Financial Guaranty Insurance Company.
F.H.A. - Federal Housing Authority.
F.S.A.- Financial Security Assurance Inc.
M.B.I.A. - MBIA Insurance Corporation.
Radian - Radian Asset Assurance Inc.
(b) | Pre-refunded and escrowed to maturity issues are secured by escrowed cash, government obligations, or other securities. |
(c) | Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A to qualified institutional buyers. At January 31, 2008, these securities amounted to a value of $3,524,500 or 2.6% of net assets applicable to common stock. |
Notes
Securities Valuation:
Fixed income securities are valued at the mean of bid and ask prices provided by an independent pricing service when such prices are believed to reflect the fair market value of such securities. Such bid and ask prices are determined taking into account securities prices, yields, maturities, call features, ratings, and institutional size trading in similar securities and developments related to specific securities. Any securities for which it is determined that market prices are unavailable or inappropriate are valued at a fair value using a procedure determined in good faith by the Board of Directors. Short-term investments having a maturity of 60 days or less at date of purchase are valued on an amortized cost basis, which approximates market value.
The United States federal income tax basis of the Fund's investments and the net unrealized appreciation as of January 31, 2008 were as follows:
Tax Basis of Investment |
Appreciation | Depreciation | Net Unrealized Appreciation | |||||||
$ | 182,500,052 | $ | 17,270,892 | $ | 973,384 | $ | 16,297,508 |
Other information regarding the Fund is available in the Fund's most recent Report to Shareholders. This information is available on the Securities and Exchange Commission's website (www.SEC.gov)
Item 2 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 quarter covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 3 Exhibits
Exhibit 99.CERT- Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Attached hereto
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | DTF TAX-FREE INCOME INC. | |
By (Signature and Title) | /s/ ALAN M. MEDER | |
Alan M. Meder Treasurer (Principal Financial and Accounting Officer) | ||
Date | March 26, 2008 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ NATHAN I. PARTAIN | |
Nathan I. Partain President and Chief Executive Officer | ||
Date | March 26, 2008 | |
By (Signature and Title) | /s/ ALAN M. MEDER | |
Alan M. Meder Treasurer (Principal Financial and Accounting Officer) | ||
Date | March 26, 2008 |