DTF Tax-Free Income 2028 Term Fund Inc. Announces Changes to Distribution Policy and New Benchmark
15 Março 2023 - 6:01PM
Business Wire
The Board of Directors of DTF Tax-Free Income 2028 Term Fund
Inc. (NYSE: DTF) (the “Fund”), a closed-end fund advised by Duff
& Phelps Investment Management Co., today announced several
steps intended to enhance the value of the fund in the current
market environment.
The Board approved an amendment to the Fund’s monthly
distribution policy to allow the Fund’s monthly distribution to
include return of capital as well as net investment income. The
Fund’s policy of making annual distributions of capital gains is
unaffected by this change. The Board also voted to maintain the
current dividend at $0.0325 per share, a portion of which is
expected to be a return of capital. By maintaining the dividend
during the current environment of relatively limited opportunities
to earn investment income, the Board considered the potential
benefits of maintaining a stable distribution amidst the challenges
faced in the high-grade municipal bond market.
David Grumhaus, president of the Fund and chief investment
officer of Duff & Phelps, said, “We think that the Board’s
decision to maintain the current dividend is in the best interest
of the Fund‘s shareholders. While some of this distribution will
come from return of capital, we think a stable distribution is
likely to be supportive of the Fund’s market price. A periodic
return of capital also aligns with the short-term nature of the
term structure of the Fund.”
In addition, reflective of the Fund’s remaining five-year
horizon, its performance benchmark is being changed to the
Bloomberg 5-Year Municipal Bond Index from the Bloomberg Municipal
Bond Index. The adviser believes that because the average maturity
and duration of the new benchmark are more in line with the average
maturity and duration of the portfolio going forward, the new
benchmark will provide a more accurate basis for relative
performance comparisons. “We believe the combination of these
actions are positive for the DTF shareholders,” Grumhaus said.
The Board of Directors authorized the following payment of
dividends on the Fund’s common stock as follows:
Amount of Dividend
Ex-Dividend Date
Record Date
Payable Date
$0.0325
April 14, 2023
April 17, 2023
April 28, 2023
$0.0325
May 12, 2023
May 15, 2023
May 31, 2023
$0.0325
June 14, 2023
June 15, 2023
June 30, 2023
The Fund estimates that the above dividends are likely to exceed
the Fund’s net income and net realized capital gains; therefore, a
portion of these dividends is likely to result in a return of
capital. A return of capital may occur, for example, when some or
all of the money that you invested is paid back to you. A return of
capital distribution does not necessarily reflect the Fund’s
investment performance and should not be confused with “yield” or
“income.” The actual amounts and sources of the amounts for tax
reporting purposes will depend upon the Fund's investment
experience during the remainder of the fiscal year and may be
subject to changes based on tax regulations. The Fund or your
broker will send you a Form 1099-DIV for the calendar year that
will tell you how to report these distributions for federal income
tax purposes.
About the Fund
DTF Tax-Free Income 2028 Term Fund Inc. is a closed-end
diversified investment management company whose investment
objective is current income exempt from regular federal income tax
consistent with preservation of capital. The Fund seeks to achieve
its investment objective by investing in a diversified portfolio of
investment-grade tax-exempt obligations. For more information,
visit dpimc.com/dtf or call (800) 338-8214.
About the Investment Adviser
Duff & Phelps Investment Management Co., an affiliated
manager of Virtus Investment Partners, Inc., began in 1932 as a
fundamental research firm and has been managing assets since 1979.
The firm seeks to provide specialty investment strategies that
enhance client outcomes through active portfolio management and
customized solutions, utilizing a process with values that include
quality, reliability, and specialization. Investment strategies
include U.S. and global real estate securities, global listed
infrastructure, energy infrastructure, water, and clean energy.
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Clayton J. Minor or Timothy P. Riordan, (833) 604-3163
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