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 | John R. Sagan | |
DTF Tax-Free Income Inc. | Mayer, Brown, Rowe & Maw 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) 541-5555
Date of fiscal year end: October 31
Date | of reporting period: July 31, 2006 |
Item 1 Schedule of Investments
DTF TAX FREE INCOME INC.
Portfolio of Investments
July 31, 2006 (unaudited)
Principal Amount (000) |
Description (a) | Value | |||||||
LONG-TERM INVESTMENTS |
145.5 | % | |||||||
Alabama |
5.3 | % | |||||||
Jefferson Cnty. Swr. Rev. |
|||||||||
Capital Impvt. |
|||||||||
$3,000 | (b) | 5.125%, 2/1/29, Ser. A, F.G.I.C. |
|||||||
Prerefunded 2/1/09 @ $101 |
$ | 3,122,940 | |||||||
2,100 | (b) | 5.00%, 2/1/33, Ser. A, F.G.I.C. |
|||||||
Prerefunded 2/1/09 @ $101 |
2,179,842 | ||||||||
1,900 | (b) | 5.00%, 2/1/33, Ser. A, F.G.I.C. |
|||||||
Prerefunded 2/1/09 @ $101 |
1,973,169 | ||||||||
7,275,951 | |||||||||
Alaska | 0.4 | % | |||||||
Alaska St. Hsg. Fin. Corp. Rev., |
|||||||||
500 | 5.00%, 12/1/11, Ser. B-2 |
514,265 | |||||||
Arizona |
1.1 | % | |||||||
Chandler Ariz Indl. Dev. Auth. Rev. |
|||||||||
1,500 | 4.375%, 12/1/35 |
1,512,765 | |||||||
California |
24.7 | % | |||||||
Foothill/Eastern Corr. |
|||||||||
Agency Toll Road Rev., |
|||||||||
5,640 | (b) | 6.00%, 1/1/34, Ser. A |
|||||||
Prerefunded 1/1/07 @ $100 |
5,695,385 | ||||||||
Fresno Swr. Rev., Ser. A-1, |
|||||||||
3,030 | 6.00%, 9/1/09, A.M.B.A.C. |
3,229,374 | |||||||
2,000 | 6.25%, 9/1/14, A.M.B.A.C |
2,313,040 | |||||||
Los Angeles Wastewtr. Sys. Rev., |
|||||||||
2,000 | 5.00%, 6/1/26, Ser. A, M.B.I.A. |
2,064,080 | |||||||
Los Angeles Wtr. & Pwr. Rev., Ser. A, |
|||||||||
1,000 | 5.25%, 7/1/21, F.S.A. |
1,049,340 | |||||||
1,000 | 5.375%, 7/1/21, M.B.I.A. |
1,059,870 | |||||||
Metro Wtr. Dist. Southern |
|||||||||
California Water Rev., |
|||||||||
1,500 | 5.00%, 10/1/29, Ser. B-3, M.B.I.A. |
1,550,685 | |||||||
Pomona Sngl. Fam. Mtge. Rev., |
|||||||||
1,710 | (b) | 7.375%, 8/1/10, Ser. B, GNMA Collateral |
|||||||
Escrowed to maturity |
1,816,277 | ||||||||
Riverside Cnty. Sngl. Fam. Rev., |
|||||||||
2,500 | (b) | 7.80%, 5/1/21, Ser. A, GNMA Collateral |
|||||||
Escrowed to maturity |
3,365,800 | ||||||||
San Bernardino Cnty. Residential |
|||||||||
Mtge. Rev., |
|||||||||
7,840 | (b) | 9.60%, 9/1/15, |
|||||||
Escrowed to maturity |
11,099,872 | ||||||||
Saratoga Unified Sch. Dist., Gen. Oblig. |
|||||||||
1,040 | Zero Coupon, 9/1/20, Ser. A, F.G.I.C. |
541,361 | |||||||
33,785,084 | |||||||||
Connecticut |
3.4 | % | |||||||
Connecticut St. Health & Edl. Facs. Auth. Rev., |
|||||||||
1,000 | 5.00%, 7/1/25, Ser. C, Radian |
1,026,740 | |||||||
Mashantucket Western Pequot |
|||||||||
Tribe Spl. Rev., 144A, |
|||||||||
3,500 | (c) | 5.75%, 9/1/18, Ser. B |
3,592,050 | ||||||
4,618,790 | |||||||||
Principal Amount (000) |
Description (a) | Value | |||||||
District of Columbia | 1.1 | % | |||||||
District of Columbia Wtr. & Swr. Auth. Rev., |
|||||||||
$1,500 | 5.00%, 10/1/33, F.G.I.C. |
$ | 1,533,435 | ||||||
Florida |
10.8 | % | |||||||
Brevard Cnty. Hlth. Fac. Auth. Rev., |
|||||||||
1,005 | 5.00%, 4/1/34 |
1,014,829 | |||||||
Dade Cnty. Wtr. & Swr. Sys. Rev., |
|||||||||
3,000 | 5.25%, 10/1/26, F.G.I.C. |
3,065,280 | |||||||
Escambia Cnty. Hlth. Fac. Auth. Rev., |
|||||||||
1,170 | 5.125%, 10/1/19 |
1,185,666 | |||||||
Florida Mun. Ln. Council Rev., |
|||||||||
2,210 | 5.375%, 8/1/20, Ser. B, M.B.I.A. |
2,380,745 | |||||||
Miami-Dade Cnty. Stormwater Util. Rev., |
|||||||||
2,000 | 5.00%, 4/1/27, M.B.I.A. |
2,070,980 | |||||||
St. Petersburg Public Util. Rev., |
|||||||||
5,000 | 5.00%, 10/1/28, Ser. A, F.S.A. |
5,080,400 | |||||||
14,797,900 | |||||||||
Georgia |
16.4 | % | |||||||
Atlanta Wtr. & Wastewtr. Rev., |
|||||||||
Ser. A, |
|||||||||
2,385 | 5.00%, 11/1/29, F.G.I.C. |
2,413,954 | |||||||
2,615 | (b) | 5.00%, 11/1/29, F.G.I.C. |
|||||||
Prerefunded 5/1/09 @ $101 |
2,721,509 | ||||||||
715 | 5.00%, 11/1/38, F.G.I.C. |
721,564 | |||||||
785 | (b) | 5.00%, 11/1/38, F.G.I.C. |
|||||||
Prerefunded 5/1/09 @ $101 |
816,973 | ||||||||
De Kalb Cnty. Wtr. & Swr. Rev., |
|||||||||
4,000 | (b) | 5.00%, 10/1/24 |
|||||||
Prerefunded 10/1/09 @ $101 |
4,179,680 | ||||||||
Fulton Cnty. Sch. Dist., Gen. Oblig. |
|||||||||
2,000 | 5.375%, 1/1/16 |
2,200,760 | |||||||
Georgia Mun. Elec. Auth. Pwr. Rev., Ser. Y, |
|||||||||
145 | (b) | 6.40%, 1/1/13, A.M.B.A.C. |
|||||||
Escrowed to maturity |
161,704 | ||||||||
2,440 | 6.40%, 1/1/13, A.M.B.A.C. |
2,710,010 | |||||||
30 | (b) | 6.40%, 1/1/13, A.M.B.A.C. |
|||||||
Prerefunded 1/1/11 @ $100 |
33,135 | ||||||||
Georgia Mun. Elec. Auth. Pwr. Rev., |
|||||||||
5,500 | 6.50%, 1/1/20, Ser. X, A.M.B.A.C. |
6,505,125 | |||||||
22,464,414 | |||||||||
Hawaii |
1.5 | % | |||||||
Hawaii Dept. Budget & Fin. Rev., |
|||||||||
2,000 | 4.80%, 1/1/25, Ser. A, F.G.I.C. |
1,997,020 | |||||||
Idaho |
0.8 | % | |||||||
Idaho Hsg. Agcy., |
|||||||||
Sngl. Fam. Mtge. Sr., Ser. B, |
|||||||||
670 | 6.65%, 7/1/14 |
685,236 | |||||||
423 | 6.60%, 7/1/27, F.H.A. |
432,450 | |||||||
1,117,686 | |||||||||
Illinois |
3.9 | % | |||||||
Chicago Gen. Oblig., |
|||||||||
4,000 | 6.25%, 1/1/11, A.M.B.A.C. |
4,313,080 | |||||||
Chicago Park Dist., Gen. Oblig., |
|||||||||
1,000 | 5.00%, 1/1/27, Ser. A, A.M.B.A.C. |
1,027,590 | |||||||
5,340,670 | |||||||||
Principal Amount (000) |
Description (a) | Value | |||||||
Indiana | 5.7 | % | |||||||
Indiana Mun. Pwr. Agcy., Pwr. |
|||||||||
Supply Sys. Rev., |
|||||||||
$5,000 | 6.00%, 1/1/13, Ser. B, M.B.I.A. |
$ | 5,569,800 | ||||||
Indianapolis Local Pub. Impvt. |
|||||||||
Bond Bank Waterworks Proj. Rev., |
|||||||||
2,100 | (b) | 5.25%, 7/1/33, Ser. A, M.B.I.A. |
|||||||
Prerefunded 7/1/12 @ $100 |
2,255,316 | ||||||||
7,825,116 | |||||||||
Iowa |
0.7 | % | |||||||
Des Moines Wtr. Rev., |
|||||||||
1,000 | 4.375%, 12/1/26, M.B.I.A. |
969,150 | |||||||
Kentucky |
1.5 | % | |||||||
Louisville & Jefferson Cnty. Met. |
|||||||||
Swr. Dist., Swr. & Drain Sys. Rev., |
|||||||||
2,000 | 5.00%, 5/15/30, Ser. A, F.G.I.C. |
2,035,740 | |||||||
Massachusetts |
6.2 | % | |||||||
Boston Wtr. & Swr. Comm. Rev., |
|||||||||
2,000 | 5.00%, 11/1/28, Ser. D, F.G.I.C. |
2,034,020 | |||||||
Massachusetts St. Dev. Finance Agency, |
|||||||||
Solid Waste Disp. Rev. |
|||||||||
1,500 | 5.00%, 2/1/36 |
1,503,510 | |||||||
Massachusetts St. Tpk. Auth., |
|||||||||
Metro. Highway Sys. Rev., |
|||||||||
2,355 | 5.125%, 1/1/23, Ser. B, M.B.I.A. |
2,408,294 | |||||||
2,500 | 4.75%, 1/1/34, Ser. A, A.M.B.A.C. |
2,500,675 | |||||||
8,446,499 | |||||||||
Michigan |
3.0 | % | |||||||
Detroit Wtr. Supply Sys. Rev., |
|||||||||
Ser. A, |
|||||||||
2,000 | (b) | 5.50%, 7/1/24, F.G.I.C. |
|||||||
Prerefunded 7/1/11 @ $100 |
2,150,180 | ||||||||
2,000 | 5.00%, 7/1/30, F.G.I.C. |
2,032,120 | |||||||
4,182,300 | |||||||||
Nebraska |
4.9 | % | |||||||
Lincoln San. Swr. Rev., |
|||||||||
1,000 | 5.00%, 6/15/16, M.B.I.A. |
1,059,030 | |||||||
Omaha Pub. Pwr. Dist., |
|||||||||
Elec. Rev., Ser. B, |
|||||||||
2,500 | (b) | 6.15%, 2/1/12 |
|||||||
Escrowed to maturity |
2,706,275 | ||||||||
2,500 | (b) | 6.20%, 2/1/17 |
|||||||
Escrowed to maturity |
2,869,150 | ||||||||
6,634,455 | |||||||||
Principal Amount (000) |
Description (a) | Value | |||||||
Nevada | 3.3 | % | |||||||
Las Vegas Valley Wtr. Dist., |
|||||||||
Gen. Oblig., |
|||||||||
$1,400 | 5.00%, 6/1/25, Ser. B, M.B.I.A. |
$ | 1,444,926 | ||||||
3,000 | 5.00%, 6/1/32, Ser. A, F.G.I.C. |
3,063,450 | |||||||
4,508,376 | |||||||||
New Jersey |
3.2 | % | |||||||
New Jersey St. Gen. Oblig., |
|||||||||
2,000 | 5.25%, 7/1/17, Ser. H |
2,178,640 | |||||||
New Jersey Trans. Trust Fund Auth. Rev., |
|||||||||
2,000 | 5.25%, 12/15/22, Ser. A |
2,182,080 | |||||||
4,360,720 | |||||||||
New York |
8.1 | % | |||||||
Long Island Pwr. Auth. Elec. |
|||||||||
Sys. Rev., |
|||||||||
5.25%, 12/1/26, Ser. A, M.B.I.A. |
|||||||||
4,000 | (b) | Prerefunded 6/1/08 @ $101 |
4,148,480 | ||||||
800 | 5.00%, 12/1/35, Ser. B |
819,304 | |||||||
Metro. Trans. Auth. Rev., |
|||||||||
1,000 | 5.25%, 11/15/31, Ser. A, F.G.I.C. |
1,051,850 | |||||||
New York City Mun. Wtr. Fin. Auth., |
|||||||||
Wtr & Swr. Sys. Rev., |
|||||||||
5,000 | 5.00%, 6/15/29, Ser. B, F.S.A. |
5,094,800 | |||||||
11,114,434 | |||||||||
Ohio |
3.6 | % | |||||||
Hamilton Elec. Sys. Rev. |
|||||||||
1,000 | 4.60%, 10/15/20, Ser. A, F.S.A. |
1,009,370 | |||||||
Ohio St. Wtr. Dev. Auth. Rev., |
|||||||||
2,445 | 5.50%, 6/1/20, Ser. B, F.S.A. |
2,760,380 | |||||||
Springboro Swr. Sys. Rev. |
|||||||||
1,045 | 5.00%, 6/1/26, M.B.I.A. |
1,082,599 | |||||||
4,852,349 | |||||||||
Pennsylvania |
2.2 | % | |||||||
Delaware Cnty. Auth. Rev., |
|||||||||
2,000 | 5.00%, 6/1/21, Ser. A, Radian |
2,058,880 | |||||||
Pennsylvania Economic Dev. Fin. |
|||||||||
Auth. Res. Recov. Rev., |
|||||||||
1,000 | 4.625%, 12/1/18, Ser. F, A.M.B.A.C. |
1,003,180 | |||||||
3,062,060 | |||||||||
Puerto Rico |
0.8 | % | |||||||
Puerto Rico Elec. Pwr. Auth. Rev., |
|||||||||
1,000 | 5.00%, 7/1/25, Ser. PP, F.G.I.C. |
1,041,740 | |||||||
South Carolina |
1.2 | % | |||||||
Spartanburg Waterworks Rev., |
|||||||||
1,500 | 5.25%, 6/1/28, F.G.I.C. |
1,582,605 | |||||||
Principal Amount (000) |
Description (a) | Value | |||||||
Tennessee | 1.2 | % | |||||||
Tennessee Energy Acquisition Corp. Rev., |
|||||||||
$1,500 | 5.25%, 9/1/20, Ser. A. |
$ | 1,614,735 | ||||||
Texas |
17.2 | % | |||||||
Alliance Airport Auth. Inc., |
|||||||||
1,000 | 4.85%, 4/1/21 |
990,000 | |||||||
Bexar Met. Wtr. Dist. |
|||||||||
Waterworks Sys. Rev., |
|||||||||
2,500 | 5.00%, 5/1/25, M.B.I.A. |
2,545,100 | |||||||
Coastal Wtr. Auth. Contract Rev., |
|||||||||
4,000 | 5.00%, 12/15/25, F.S.A. |
4,061,720 | |||||||
El Paso Wtr. & Swr. Rev., |
|||||||||
1,555 | 5.50%, 3/1/12, Ser. A, F.S.A. |
1,676,834 | |||||||
Harris Cnty. Gen Oblig., |
|||||||||
1,650 | 7.00%, 8/15/10, Ser. A |
1,838,611 | |||||||
Houston Wtr. & Swr. Sys. Rev., |
|||||||||
1,500 | (b) | 5.25%, 12/1/23, Ser. B, F.G.I.C. |
|||||||
Prerefunded 12/1/10 @ $100 |
1,583,610 | ||||||||
3,500 | (b) | 5.00%, 12/1/28, Ser. A, F.S.A. |
|||||||
Prerefunded 12/1/09 @ $100 |
3,630,165 | ||||||||
Lower Colorado River Auth. Rev., |
|||||||||
2,000 | 5.00%, 5/15/31, F.S.A. |
2,033,040 | |||||||
San Antonio Elec. & Gas Rev., |
|||||||||
4,000 | 5.00%, 2/1/18, Ser. A |
4,108,120 | |||||||
University North Texas Rev., |
|||||||||
1,000 | 4.50%, 4/15/25, F.G.I.C. |
985,020 | |||||||
23,452,220 | |||||||||
Virginia |
4.1 | % | |||||||
Henrico Cnty. Wtr & Swr. Rev., |
|||||||||
3,985 | 5.00%, 5/1/28 |
4,082,792 | |||||||
Virginia St. Hsg. Dev. Auth. Rev., |
|||||||||
1,500 | 4.55%, 1/1/24 |
1,453,950 | |||||||
5,536,742 | |||||||||
Washington |
4.9 | % | |||||||
Energy Northwest Wind Proj. Rev., |
|||||||||
1,170 | 5.00%, 7/1/19, A.M.B.A.C. |
1,207,405 | |||||||
500 | 4.75%, 7/1/21, M.B.I.A. |
507,565 | |||||||
King Cnty. Swr. Rev., |
|||||||||
2,500 | 5.00%, 1/1/31, F.G.I.C. |
2,547,375 | |||||||
Washington St. Pub. Pwr. Supply, |
|||||||||
Nuclear Proj. No. 2 Rev., |
|||||||||
2,400 | 6.00%, 7/1/07, Ser. A |
2,449,440 | |||||||
6,711,785 | |||||||||
West Virginia |
1.1 | % | |||||||
Monongalia Cnty. Building Commission |
|||||||||
Hospital Rev. |
|||||||||
1,500 | 5.00%, 7/1/30, Ser. A |
1,499,940 | |||||||
Wyoming |
3.2 | % | |||||||
Wyoming St. Farm Loan Brd. |
|||||||||
Cap. Facs. Rev., |
|||||||||
4,000 | 5.75%, 10/1/20 |
4,344,920 | |||||||
Total long-term investments |
|||||||||
(cost $183,201,884) |
198,733,866 | ||||||||
Principal Amount (000) |
Description (a) | Value | |||||||
SHORT-TERM INVESTMENT |
0.4 | % | |||||||
Goldman Sachs Tax Exempt |
|||||||||
Money Market Fund, |
|||||||||
$499 | (cost $499,359) |
$ | 499,359 | ||||||
Total Investments |
145.9 | % | |||||||
(cost $183,701,243) |
199,233,225 | ||||||||
Other assets in excess of liabilities |
1.7 | % | 2,356,269 | ||||||
Liquidation value of remarketed preferred stock |
(47.6 | )% | (65,000,000 | ) | |||||
Net assets applicable to common stock |
100.0 | % | $ | 136,589,494 | |||||
Net asset value per share of common stock ($136,589,494 / 8,507,456) |
$ | 16.06 | |||||||
(a) | The following abbreviations are used in portfolio descriptions to indicate providers of credit support, in whole or in part: |
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) | Prerefunded and escrowed to maturity issues are secured by escrowed cash, government obligations, or other securities. |
(c) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2006, these securities amounted to a value of $3,592,050 or 2.6% of net assets applicable to common stock. |
The United States federal income tax basis of the Funds investments and the net unrealized appreciation as of July 31, 2006 was as follows:
Tax Basis of |
Appreciation |
Depreciation |
Net Unrealized | |||
$183,219,115 |
$15,965,011 | $126,156 | $15,838,855 | |||
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 fiscal quarter ended July 31, 2006 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 and Principal Financial Officer | ||||
Date | September 20, 2006 |
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 | September 20, 2006 | |||
By (Signature and Title) | /s/ Alan M. Meder | |||
Alan M. Meder | ||||
Treasurer and Principal Financial Officer | ||||
Date | September 20, 2006 |