UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-06416
DTF Tax-Free Income Inc.
(Exact name of registrant as specified in charter)
200 South Wacker Drive, Suite 500, Chicago, Illinois 60606
(Address of principal executive offices) (Zip code)
| Alan M. Meder | Lawrence R. Hamilton | |
| DTF Tax-Free Income Inc. | Mayer Brown LLP | |
| 200 South Wacker Drive, Suite 500 | 71 South Wacker Drive | |
| Chicago, Illinois 60606 | Chicago, Illinois 60606 |
(Name and address of agents for service)
Registrant’s telephone number, including area code: (800) 338-8214
Date of fiscal year end: October 31
Date of reporting period: January 31, 2011
Item 1 – Schedule of Investments
The Schedule of Investments follows:
DTF TAX-FREE INCOME INC.
Portfolio of Investments
January 31, 2011 (Unaudited)
|
Principal
(000) |
Description (a) | Value | ||||||
| LONG-TERM INVESTMENTS - 146.2% | ||||||||
| Arizona - 3.1% | ||||||||
| Arizona St. Trans Brd. Hwy. Rev., |
||||||||
| $ | 2,000 | 5.00%, 7/1/30, Ser. B |
$ | 2,002,380 | ||||
| Salt River Proj. Agric. Impvt. & Pwr. |
||||||||
| Dist. Elec. Sys. Rev., |
||||||||
| 2,000 | 5.00%, 1/1/38, Ser. A |
1,959,340 | ||||||
| 3,961,720 | ||||||||
| California - 22.3% |
||||||||
| Bay Area Toll Auth. Rev., |
||||||||
| 2,000 | 5.125%, 4/1/39, Ser. F-1 |
1,906,800 | ||||||
| California St. Gen. Oblig., |
||||||||
| 500 | 5.50%, 3/1/26 |
503,470 | ||||||
| 1,000 | 6.00%, 4/1/38 |
1,012,120 | ||||||
| 500 | 5.50%, 3/1/40 |
474,315 | ||||||
| California Statewide Communities |
||||||||
| Dev. Auth. Rev., |
||||||||
| 2,000 | 5.75%, 7/1/47, FGIC |
1,880,280 | ||||||
| Fresno Swr. Rev. |
||||||||
| 2,000 | 6.25%, 9/1/14, Ser. A-1, AMBAC |
2,149,160 | ||||||
| Golden State Tobacco Securitization Corp. Rev., |
||||||||
| 3,000 | 5.75%, 6/1/47, Ser. A-1 |
1,960,470 | ||||||
| Los Angeles Dept. Wtr. & Pwr. Rev., |
||||||||
| 1,000 | 5.25%, 7/1/21, Ser. A-A-1, AGM |
1,014,760 | ||||||
| 440 | (b) | 5.375%, 7/1/21, Ser. A-2, |
||||||
| Prerefunded 7/1/11 @ $100 |
449,236 | |||||||
| 560 | 5.375%, 7/1/21, Ser. A-2, NRE |
568,551 | ||||||
| Los Angeles Wastewtr. Sys. Rev., |
||||||||
| 2,000 | 5.00%, 6/1/26, Ser. A, NRE |
2,001,180 | ||||||
| Riverside Cnty. Sngl. Fam. Rev., |
||||||||
| 2,500 | (b) | 7.80%, 5/1/21, Ser. A, |
||||||
| Escrowed to maturity |
3,306,100 | |||||||
| San Bernardino Cnty. Residential |
||||||||
| Mtge. Rev., |
||||||||
| 7,840 | (b) | 9.60%, 9/1/15, |
||||||
| Escrowed to maturity |
10,627,512 | |||||||
| Saratoga Unified Sch. Dist., Gen. Oblig. |
||||||||
| 1,040 | Zero Coupon, 9/1/20, Ser. A, FGIC / NRE |
638,862 | ||||||
| 28,492,816 | ||||||||
| Connecticut - 1.4% |
||||||||
| Connecticut St. Health & Edl. Facs. Auth. Rev., |
||||||||
| 1,000 | 5.00%, 7/1/25, Ser. C, RAD |
854,250 | ||||||
| Mashantucket Western Pequot |
||||||||
| Tribe Spl. Rev., 144A, |
||||||||
| 2,500 | (c)(d) | 5.75%, 9/1/18, Ser. B |
997,225 | |||||
| 1,851,475 | ||||||||
| District of Columbia - 2.8% |
||||||||
| District of Columbia Income Tax Rev., |
||||||||
| 1,000 | 5.00%, 12/1/31, Ser. A |
1,005,120 | ||||||
| District of Columbia Wtr. & Swr. Auth. Rev., |
||||||||
| 1,500 | 5.00%, 10/1/33, FGIC / NRE |
1,473,945 | ||||||
| Metropolitan Washington D.C. Airport Auth. Rev., |
||||||||
| 1,000 | 5.00%, 10/1/18, Ser. A, AGM / AMBAC |
1,068,400 | ||||||
| 3,547,465 | ||||||||
| Florida - 9.8% |
||||||||
| Broward Cnty. Port Fac. Rev., |
||||||||
| 1,500 | 6.00%, 9/1/23, Ser. A |
1,587,795 | ||||||
| Escambia Cnty. Hlth. Fac. Auth. Rev., |
||||||||
| 1,000 | 6.00%, 8/15/36 |
946,380 | ||||||
| Florida Mun. Ln. Council Rev., |
||||||||
| 2,210 | 5.375%, 8/1/20, Ser. B, NRE |
2,308,964 | ||||||
| Florida St. Bd. of Ed. Gen. Oblig., |
||||||||
| 2,000 | 5.00%, 6/1/21, Ser. A |
2,041,480 | ||||||
| Highlands Cnty. Hlth. Fac. Auth. Rev., |
||||||||
| 70 | (b) | 5.125%, 11/15/32, Ser. G |
||||||
| Prerefunded 11/15/16 @ $100 |
81,649 | |||||||
| 1,930 | 5.125%, 11/15/32, Ser. G |
1,763,171 | ||||||
| Orlando and Orange Cnty. Expwy. Auth. Rev., |
||||||||
| 2,000 | 5.00%, 7/1/35, Ser. B, |
1,843,740 | ||||||
| BHAC / AMBAC |
||||||||
| Seminole Cnty. Sales Tax Rev., |
||||||||
| 2,000 | 5.25%, 10/01/31, Ser. B, NRE |
1,957,880 | ||||||
| 12,531,059 | ||||||||
|
Principal Amount (000) |
Description (a) | Value | ||||||
| Georgia - 11.3% |
||||||||
| Atlanta Wtr. & Wastewtr. Rev., |
||||||||
| Ser. A, |
||||||||
| $ | 2,385 | 5.00%, 11/1/29, FGIC / NRE |
$ | 2,238,418 | ||||
| 715 | 5.00%, 11/1/38, FGIC / NRE |
624,081 | ||||||
| Fulton Cnty. Sch. Dist., Gen. Oblig. |
||||||||
| 2,000 | 5.375%, 1/1/16 |
2,296,360 | ||||||
| Georgia Mun. Elec. Auth. Pwr. Rev., |
||||||||
| 100 | (b) | 6.40%, 1/1/13, Ser. Y |
||||||
| Escrowed to maturity |
107,368 | |||||||
| 1,655 | 6.40%, 1/1/13, Ser. Y, AMBAC |
1,756,898 | ||||||
| Georgia Mun. Elec. Auth. Pwr. Rev., |
||||||||
| 5,500 | 6.50%, 1/1/20, Ser. X, AMBAC |
6,397,050 | ||||||
| Metro. Atlanta Rapid Tran. Auth. Rev., |
||||||||
| 1,000 | 5.00%, 7/1/39, Ser. 3 |
970,440 | ||||||
| 14,390,615 | ||||||||
| Idaho - 0.1% |
||||||||
| Idaho Hsg. Agcy., |
||||||||
| Sngl. Fam. Mtge. Sr., Rev., |
||||||||
| 40 | 6.65%, 7/1/14, Ser. B |
41,248 | ||||||
| 93 | 6.60%, 7/1/27, Ser. B |
93,510 | ||||||
| 134,758 | ||||||||
| Illinois - 7% |
||||||||
| Chicago Bd. of Ed. Gen. Oblig., |
||||||||
| 1,000 | 5.50%, 12/1/30, Ser. A, AMBAC |
1,005,930 | ||||||
| Chicago Multi-Family Hsg. Rev., |
||||||||
| 500 | 4.90%, 3/20/44, FHA |
444,820 | ||||||
| Chicago Park Dist., Gen. Oblig., |
||||||||
| 1,000 | 5.00%, 1/1/27, Ser. A, AMBAC |
991,300 | ||||||
| Illinois Fin. Auth. Education Rev., |
||||||||
| 1,000 | (b) | 5.375%, 9/1/32, Ser. C, |
||||||
| Prerefunded 9/1/17 @ $100 |
1,185,300 | |||||||
| Illinois Fin. Auth. Rev., |
||||||||
| 1,000 | 6.00%, 8/15/38, Ser. A |
926,640 | ||||||
| Illinois St. Gen. Oblig., |
||||||||
| 2,000 | 5.50%, 1/1/29 |
1,914,260 | ||||||
| Illinois St. Toll Hwy. Auth. Rev., |
||||||||
| 1,500 | 5.50%, 1/1/33, Ser. B |
1,470,000 | ||||||
| Railsplitter Tobacco Settlement Auth. Rev., |
||||||||
| 1,000 | 6.00%, 6/1/28 |
954,340 | ||||||
| 8,892,590 | ||||||||
| Indiana - 8.3% |
||||||||
| Indiana Fin. Auth. Hospital Rev., |
||||||||
| 1,000 | 5.875%, 5/1/29, Ser. A |
1,000,330 | ||||||
| Indiana Mun. Pwr. Agcy., |
||||||||
| Pwr. Supply Sys. Rev., |
||||||||
| 5,000 | 6.00%, 1/1/13, Ser. B, NRE |
5,396,750 | ||||||
| Indianapolis Local Pub. Impvt. |
||||||||
| Bond Bank Rev., |
||||||||
| 2,100 | (b) | 5.25%, 7/1/33, Ser. A |
||||||
| Prerefunded 7/1/12 @ $100 |
2,238,453 | |||||||
| 2,000 | 5.00%, 2/1/38, Ser. A |
1,956,500 | ||||||
| 10,592,033 | ||||||||
|
Principal Amount (000) |
Description (a) | Value | ||||||
| Kentucky - 1.2% |
||||||||
| Louisville & Jefferson Cnty. Met. Swr. Dist., |
||||||||
| Swr. & Drain Sys. Rev., |
||||||||
| $ | 1,750 | 5.00%, 5/15/30, Ser. A, FGIC / NRE |
$ | 1,726,428 | ||||
| Louisiana - 1.6% |
||||||||
| Louisiana St. Gasoline & Fuels Tax Rev., |
||||||||
| 1,000 | 5.00%, 5/1/41, Ser. A |
944,890 | ||||||
| Regional Tran. Auth. Louisiana Sales Tax Rev., |
||||||||
| 1,100 | 5.00%, 12/1/30, AGM |
1,051,919 | ||||||
| 1,996,809 | ||||||||
| Maryland - 1.6% |
||||||||
| Maryland St. Trans. Auth. Rev., |
||||||||
| 2,000 | 5.00%, 7/1/37, AGM |
2,006,060 | ||||||
| Massachusetts - 5.9% |
||||||||
| Massachusetts Bay Trans. Auth. Rev., |
||||||||
| 3,000 | 5.50%, 7/1/29, Ser. B, NRE |
3,262,410 | ||||||
| Massachusetts St. College Bldg. Auth. Rev., |
||||||||
| 2,000 | 5.00%, 5/1/40, Ser. B |
1,934,220 | ||||||
| Massachusetts St. Dev. Finance Agency, |
||||||||
| Solid Waste Disp. Rev. |
||||||||
| 1,500 | 5.00%, 2/1/36 |
1,326,450 | ||||||
| Massachusetts St. Gen. Oblig., |
||||||||
| 1,000 | 5.50%, 8/1/30, Ser. A, AMBAC |
1,073,500 | ||||||
| 7,596,580 | ||||||||
| Michigan - 3.3% |
||||||||
| Detroit Gen. Oblig., |
||||||||
| 500 | 5.25%, 11/1/35 |
459,145 | ||||||
| Detroit Wtr. Supply Sys. Rev., |
||||||||
| Ser. A, |
||||||||
| 2,000 | (b) | 5.50%, 7/1/24, |
||||||
| Prerefunded 7/1/11 @ $100 |
2,043,020 | |||||||
| 2,000 | 5.00%, 7/1/30, FGIC / NRE |
1,761,900 | ||||||
| 4,264,065 | ||||||||
| Nebraska - 5% |
||||||||
| Omaha Gen. Oblig., |
||||||||
| 2,000 | 5.25%, 4/1/27 |
2,168,460 | ||||||
| Omaha Pub. Pwr. Dist., |
||||||||
| Elec. Rev., Ser. B, |
||||||||
| 1,270 | (b) | 6.15%, 2/1/12 |
||||||
| Escrowed to maturity |
1,303,934 | |||||||
| 2,500 | (b) | 6.20%, 2/1/17 |
||||||
| Escrowed to maturity |
2,876,375 | |||||||
| 6,348,769 | ||||||||
| Nevada - 4.4% |
||||||||
| Clark Cnty. Gen. Oblig., |
||||||||
| 2,165 | 5.00%, 11/1/22, AMBAC |
2,236,813 | ||||||
| Las Vegas Valley Wtr. Dist., |
||||||||
| Gen. Oblig., |
||||||||
| 1,400 | 5.00%, 6/1/25, Ser. B, NRE |
1,403,304 | ||||||
| Nevada St. Gen. Oblig., |
||||||||
| 2,000 | 5.00%, 12/1/24, Ser. F, AGM |
2,031,760 | ||||||
| 5,671,877 | ||||||||
| New Jersey - 4.8% |
||||||||
| New Jersey Econ. Dev. Auth. Rev., |
||||||||
| 1,025 | 4.95%, 3/1/47 |
873,310 | ||||||
| New Jersey St. Gen. Oblig., |
||||||||
| 2,000 | 5.25%, 7/1/17, Ser. H |
2,255,360 | ||||||
| New Jersey St. Tpk. Auth. Rev., |
||||||||
| 1,000 | 5.00%, 1/1/36, Ser. H |
960,060 | ||||||
| New Jersey Trans. Trust Fund Auth. Rev., |
||||||||
| 2,000 | 5.25%, 12/15/22, Ser. A |
2,064,700 | ||||||
| 6,153,430 | ||||||||
| New York - 6.4% |
||||||||
| Albany Industrial Dev. Agy. Rev., |
||||||||
| 1,000 | 5.00%, 4/1/32, Ser. A |
761,830 | ||||||
| Long Island Pwr. Auth. Elec. |
||||||||
| Sys. Rev., |
||||||||
| 800 | 5.00%, 12/1/35, Ser. B |
734,968 | ||||||
| Metro. Trans. Auth. Rev., |
||||||||
| 1,000 | 5.25%, 11/15/31, Ser. A, FGIC / NRE |
949,000 | ||||||
| New York City Mun. Wtr. Fin. Auth. Rev., |
||||||||
| Wtr. & Swr. Sys. 2nd Genl. Res. Rev., Ser. EE, |
||||||||
| 1,000 | 5.375%, 6/15/43 |
1,003,350 | ||||||
| 1,000 | 5.50%, 6/15/43 |
1,012,850 | ||||||
| New York St. Dorm. Auth. Rev., |
||||||||
| Sch. Dist. Rev. Bond Financing Program Rev., |
||||||||
| 1,500 | 7.25%, 10/1/28, Ser. C |
1,696,290 | ||||||
| New York St. Dorm. Auth. |
||||||||
| State Personal Inc. Tax Rev., |
||||||||
| 2,000 | 5.00%, 3/15/30, Ser. F |
1,995,000 | ||||||
| 8,153,288 | ||||||||
|
Principal Amount (000) |
Description (a) | Value | ||||||
| Ohio - 5% |
||||||||
| Deerfield Twp. Tax Increment Rev., |
||||||||
| $ | 750 | 5.00%, 12/1/25 |
$ | 706,447 | ||||
| Hamilton Elec. Sys. Rev. |
||||||||
| 1,000 | 4.60%, 10/15/20, Ser. A, AGM |
1,041,050 | ||||||
| Ohio St. Air Quality Dev. Auth. Rev., |
||||||||
| 750 | 5.70%, 2/1/14, Ser. A |
810,840 | ||||||
| Ohio St. Tpk. Comm. Tpk. Rev. |
||||||||
| 1,040 | 5.00%, 2/15/31, Ser. A |
1,030,879 | ||||||
| Ohio St. Wtr. Dev. Auth. Rev., |
||||||||
| 2,445 | 5.50%, 6/1/20, Ser. B, AGM |
2,850,870 | ||||||
| 6,440,086 | ||||||||
| Pennsylvania - 5.8% |
||||||||
| Delaware Cnty. Auth. Rev., |
||||||||
| 2,000 | (b) | 5.00%, 6/1/21, Ser. A, |
2,251,080 | |||||
| East Stroudsburg Area Sch. Dist., Gen. Oblig. |
||||||||
| 1,000 | 7.75%, 9/1/27, Ser. A, FGIC / NRE |
1,163,550 | ||||||
| Pennsylvania Economic Dev. Fin. |
||||||||
| Auth. Res. Recov. Rev., |
||||||||
| 1,000 | 4.625%, 12/1/18, Ser. F, AMBAC |
889,280 | ||||||
| Pennsylvania St. Higher Ed. Facs. Auth. Rev., |
||||||||
| 2,000 | 5.00%, 6/15/28, Ser. AL |
2,017,760 | ||||||
| Pennsylvania St. Tpk. Comm. Oil Franchise Tax Rev., |
||||||||
| 1,020 | 5.00%, 12/1/23, Ser. A-2, AGT |
1,056,628 | ||||||
| 7,378,298 | ||||||||
| Puerto Rico - 0.7% |
||||||||
| Puerto Rico Elec. Pwr. Auth. Rev., |
||||||||
| 1,000 | 5.00%, 7/1/25, Ser. PP, FGIC / NRE |
952,540 | ||||||
| Rhode Island - 1.6% |
||||||||
| Rhode Island Health & Edl. Bldg. Corp. Higher Ed. Facs. Rev., |
||||||||
| 2,000 | 5.00%, 9/1/37 |
1,982,480 | ||||||
| South Carolina - 1.3% |
||||||||
| Spartanburg Waterworks Rev., |
||||||||
| 1,500 | (b) | 5.25%, 6/1/28 |
||||||
| Prerefunded 6/1/14 @ $100 |
1,693,170 | |||||||
| Tennessee - 1.9% |
||||||||
| Tennessee Energy Acquisition Corp. Rev., Ser. A, |
||||||||
| 1,500 | 5.25%, 9/1/20 |
1,448,145 | ||||||
| 1,000 | 5.25%, 9/1/21 |
958,960 | ||||||
| 2,407,105 | ||||||||
| Texas - 13.5% |
||||||||
| Alliance Airport Auth. Inc. Rev., |
||||||||
| 1,000 | 4.85%, 4/1/21 |
969,340 | ||||||
| Bexar Met. Wtr. Dist. |
||||||||
| Waterworks Sys. Rev., |
||||||||
| 2,500 | 5.00%, 5/1/25, NRE |
2,500,225 | ||||||
| Dallas Area Rapid Transit Rev., |
||||||||
| 1,000 | 5.25%, 12/1/48 |
980,270 | ||||||
| Dallas Gen. Oblig. |
||||||||
| 2,000 | 4.50%, 2/15/23 |
2,075,860 | ||||||
| El Paso Wtr. & Swr. Rev., |
||||||||
| 1,555 | 5.50%, 3/1/12, Ser. A, AGM |
1,637,617 | ||||||
| Everman Indep. Sch. Dist. Gen. Oblig., |
||||||||
| 1,000 | 5.00%, 2/15/36, PSF |
1,008,300 | ||||||
| Klein Indep. Sch. Dist. Gen. Oblig., |
||||||||
| 1,000 | 5.00%, 8/1/38, Ser. A, PSF |
1,000,620 | ||||||
| Lower Colorado River Auth. Rev., |
||||||||
| 2,000 | 5.00%, 5/15/31, AGM |
1,928,220 | ||||||
| McLennan Cnty. Pub. Fac. Corp. Proj. Rev., |
||||||||
| 2,000 | 6.625%, 6/1/35 |
2,093,520 | ||||||
| Pharr-San Juan-Alamo Indep. Sch. Dist. Gen. Oblig., |
||||||||
| 1,975 | 5.50%, 2/1/33, PSF |
2,033,895 | ||||||
| Spring Branch Indep. Sch. Dist. Gen. Oblig., |
||||||||
| 1,000 | 5.25%, 2/1/38, PSF |
1,023,340 | ||||||
| 17,251,207 | ||||||||
|
Principal Amount (000) |
Description (a) | Value | ||||||
| Utah - 1.6% |
||||||||
| Utah Trans. Auth. Sales Tax Rev., Ser A., |
||||||||
| $ | 1,000 | 5.00%, 6/15/32, AGM |
$ | 1,001,160 | ||||
| 1,000 | 5.00%, 6/15/36, AGM |
994,250 | ||||||
| 1,995,410 | ||||||||
| Virginia - 4.5% |
||||||||
| Virginia College Bldg. Auth. Rev., |
||||||||
| 2,000 | 5.00%, 2/1/23, Ser. E-1 |
2,192,540 | ||||||
| Virginia St. Hsg. Dev. Auth. Rev., |
||||||||
| 1,500 | 4.55%, 1/1/24 |
1,421,220 | ||||||
| Virginia St. Pub. Bldg. Auth. Rev., |
||||||||
| 2,050 | 5.00%, 8/1/29, Ser. B |
2,086,941 | ||||||
| 5,700,701 | ||||||||
| Washington - 2.3% |
||||||||
| Energy Northwest Wind Proj. Rev., |
||||||||
| 500 | 4.75%, 7/1/21, NRE |
511,610 | ||||||
| King Cnty. Swr. Rev., |
||||||||
| 2,500 | 5.00%, 1/1/31, FGIC / NRE |
2,462,700 | ||||||
| 2,974,310 | ||||||||
| West Virginia - 1% |
||||||||
| Monongalia Cnty. Building Commission |
||||||||
| Hospital Rev. |
||||||||
| 1,500 | 5.00%, 7/1/30, Ser. A |
1,299,840 | ||||||
| Wisconsin - 3.2% |
||||||||
| Wisconsin St. Gen. Rev., |
||||||||
| 2,000 | 6.00%, 5/1/33, Ser. A |
2,132,280 | ||||||
| Wisconsin St. Health & Edl. Facs. Auth. Rev., |
||||||||
| 2,000 | 6.50%, 4/15/33 |
2,017,680 | ||||||
| 4,149,960 | ||||||||
| Wyoming - 3.5% |
||||||||
| Wyoming St. Farm Loan Brd. |
||||||||
| Cap. Facs. Rev., |
||||||||
| 4,000 | 5.75%, 10/1/20 |
4,444,880 | ||||||
| Total long-term investments |
||||||||
| (Cost $185,894,180) |
186,981,824 | |||||||
| Shares | ||||||||
| SHORT-TERM INVESTMENT - 2.7% |
||||||||
| State Street Institutional Tax-Free |
||||||||
| Money Market Fund |
||||||||
| 3,516 | (Cost $3,515,618) |
$ | 3,515,618 | |||||
| Total Investments - 148.9% (Cost $189,409,798) |
190,497,442 | |||||
| Other assets in excess of liabilities - 1.9% |
2,401,379 | |||||
| Liquidation value of remarketed preferred stock - (50.8%) |
(65,000,000) | |||||
| Net Assets Applicable to Common Stock - 100.0% |
127,898,821 | |||||
| Net asset value per share of common stock ($127,898,821 / 8,507,456) |
15.03 | |||||
| (a) | The following abbreviations are used in portfolio descriptions to indicate providers of credit support, in whole or in part: |
AMBAC - Ambac Assurance Corporation.
AGM - Assured Guaranty Municipal Corporation.
AGT - Assured Guaranty Corp.
BHAC - Berkshire Hathaway Assurance Corporation.
FGIC - Financial Guaranty Insurance Company.
FHA - Federal Housing Authority.
NRE - National Public Finance Guarantee Corporation.
PSF - Texas Permanent School Fund.
RAD - Radian Asset Assurance Inc.
| (b) | Prerefunded and escrowed to maturity issues are secured by escrowed cash, 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, 2011, these securities amounted to a value of $997,225 or 0.78% of net assets applicable to common stock. |
| (d) | Non-income producing security. |
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.
Notes
| (1) | The Fund’s investments are carried at fair value which is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. The three-tier hierarchy of inputs established to classify fair value measurements for disclosure purposes is summarized in the three broad levels listed below. |
Level 1 – quoted prices in active markets for identical securities.
Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. The following is a summary of the inputs used to value each of the Fund’s investments as of January 31, 2011:
There were no significant transfers between level 1 and level 2 during the quarter ended January 31, 2011.
| Valuations | Level 1 | Level 2 | ||||||
| Description |
||||||||
| Assets: |
||||||||
| Money Market Fund |
$ | 3,515,618 | - | |||||
| Municipal Bonds |
- | $ | 186,981,824 | |||||
| Total |
$ | 3,515,618 | $ | 186,981,824 | ||||
| (2) | At October 31, 2010, the Fund’s most recent fiscal tax year end, based on a tax cost of investments of $189,032,945, the Fund had gross unrealized appreciation of $14,588,575 and gross unrealized depreciation of $1,419,632. |
Other information regarding the Fund is available in the Fund’s most recent semi-annual and annual reports. This information is available on the Fund’s website at www.DTFfund.com or the Securities and Exchange Commission’s website at www.sec.gov.
Item 2 – Controls and Procedures
(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on an evaluation of those controls and procedures made as of a date within 90 days of the filing date of this report as required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934.
(b) There has been no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3 – Exhibits
Exhibit 99.CERT- Certifications pursuant to 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 29, 2011 | |
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 29, 2011 | |
| By (Signature and Title) | /S/ ALAN M. MEDER | |
| Alan M. Meder | ||
| Treasurer | ||
| (Principal Financial and Accounting Officer) | ||
| Date | March 29, 2011 | |