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)
Registrant’s telephone number, including area code: (312) 541-5555
Date of fiscal year end: October 31
Date of reporting period: January 31, 2007
| Item 1 – | Schedule of Investments |
DTF TAX FREE INCOME INC.
Portfolio of Investments
January 31, 2007 (unaudited)
| Principal Amount (000) |
Description (a) | Value | ||||||||
| LONG-TERM INVESTMENTS | 145.0 | % | ||||||||
| Alabama | 6.0 | % | ||||||||
| DCH Health Care Auth. Rev. | ||||||||||
| $ | 1,000 | 5.125%, 6/1/36 |
$ | 1,046,370 | ||||||
| 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 |
3,102,510 | |||||||||
| 2,100 | (b) | 5.00%, 2/1/33, Ser. A, F.G.I.C. |
||||||||
| Prerefunded 2/1/09 @ $101 |
2,166,759 | |||||||||
| 1,900 | (b) | 5.00%, 2/1/33, Ser. A, F.G.I.C. |
||||||||
| Prerefunded 2/1/09 @ $101 |
1,961,883 | |||||||||
| 8,277,522 | ||||||||||
| Arizona | 1.1 | % | ||||||||
| Chandler Ariz Indl. Dev. Auth. Rev. | ||||||||||
| 1,500 | 4.375%, 12/1/35 |
1,517,610 | ||||||||
| California | 20.4 | % | ||||||||
| Fresno Swr. Rev., Ser. A-1, | ||||||||||
| 3,030 | 6.00%, 9/1/09, A.M.B.A.C. |
3,203,680 | ||||||||
| 2,000 | 6.25%, 9/1/14, A.M.B.A.C. |
2,259,660 | ||||||||
| Los Angeles Wastewtr. Sys. Rev., | ||||||||||
| 2,000 | 5.00%, 6/1/26, Ser. A, M.B.I.A. |
2,088,060 | ||||||||
| Los Angeles Wtr. & Pwr. Rev., | ||||||||||
| 1,000 | 5.25%, 7/1/21, Ser. A-A-1, F.S.A. |
1,049,290 | ||||||||
| 1,000 | 5.375%, 7/1/21, Ser. A-A-2, M.B.I.A. |
1,062,620 | ||||||||
| Metro Wtr. Dist. Southern California | ||||||||||
| Waterworks Rev., | ||||||||||
| 1,500 | 5.00%, 10/1/29, Ser. B-3, M.B.I.A. |
1,578,885 | ||||||||
| Pomona Sngl. Fam. Mtge. Rev., | ||||||||||
| 1,545 | (b) | 7.375%, 8/1/10, Ser. B, GNMA Collateral |
||||||||
| Escrowed to maturity |
1,630,083 | |||||||||
| Riverside Cnty. Sngl. Fam. Rev., | ||||||||||
| 2,500 | (b) | 7.80%, 5/1/21, Ser. A, GNMA Collateral |
||||||||
| Escrowed to maturity |
3,402,200 | |||||||||
| San Bernardino Cnty. Residential | ||||||||||
| Mtge. Rev., | ||||||||||
| 7,840 | (b) | 9.60%, 9/1/15, |
||||||||
| Escrowed to maturity |
11,031,350 | |||||||||
| Saratoga Unified Sch. Dist., Gen. Oblig. | ||||||||||
| 1,040 | Zero Coupon, 9/1/20, Ser. A, F.G.I.C. |
579,654 | ||||||||
| 27,885,482 | ||||||||||
| Connecticut | 3.4 | % | ||||||||
| Connecticut St. Health & Edl. Facs. Auth. Rev., | ||||||||||
| 1,000 | 5.00%, 7/1/25, Ser. C, Radian |
1,044,650 | ||||||||
| Mashantucket Western Pequot | ||||||||||
| Tribe Spl. Rev., 144A, | ||||||||||
| 3,500 | (c) | 5.75%, 9/1/18, Ser. B |
3,590,090 | |||||||
| 4,634,740 | ||||||||||
| District of Columbia | 1.1 | % | ||||||||
| District of Columbia Wtr. & Swr. Auth. Rev., | ||||||||||
| 1,500 | 5.00%, 10/1/33, F.G.I.C. |
1,558,455 | ||||||||
| Principal Amount (000) |
Description (a) | Value | ||||||||
| Florida | 12.4 | % | ||||||||
| Brevard Cnty. Hlth. Fac. Auth. Rev., | ||||||||||
| $ | 1,005 | 5.00%, 4/1/34 |
$ | 1,034,125 | ||||||
| Dade Cnty. Wtr. & Swr. Sys. Rev., | ||||||||||
| 3,000 | 5.25%, 10/1/26, F.G.I.C. |
3,052,080 | ||||||||
| Escambia Cnty. Hlth. Fac. Auth. Rev., | ||||||||||
| 1,170 | 5.125%, 10/1/19 |
1,191,271 | ||||||||
| Florida Mun. Ln. Council Rev., | ||||||||||
| 2,210 | 5.375%, 8/1/20, Ser. B, M.B.I.A. |
2,384,413 | ||||||||
| Hillsborough Cnty. Indl. Dev. Auth. Rev., | ||||||||||
| 2,000 | 5.00%, 10/1/36 |
2,049,180 | ||||||||
| Miami-Dade Cnty. Stormwater Util. Rev., | ||||||||||
| 2,000 | 5.00%, 4/1/27, M.B.I.A. |
2,106,700 | ||||||||
| St. Petersburg Public Util. Rev., | ||||||||||
| 5,000 | (b) | 5.00%, 10/1/28, Ser. A, F.S.A. |
||||||||
| Prerefunded 10/1/09 @ $101 |
5,206,100 | |||||||||
| 17,023,869 | ||||||||||
| Georgia | 16.4 | % | ||||||||
| Atlanta Wtr. & Wastewtr. Rev., | ||||||||||
| Ser. A, | ||||||||||
| 2,385 | 5.00%, 11/1/29, F.G.I.C. |
2,436,277 | ||||||||
| 2,615 | (b) | 5.00%, 11/1/29, F.G.I.C. |
||||||||
| Prerefunded 5/1/09 @ $101 |
2,692,796 | |||||||||
| 715 | 5.00%, 11/1/38, F.G.I.C. |
729,193 | ||||||||
| 785 | (b) | 5.00%, 11/1/38, F.G.I.C. |
||||||||
| Prerefunded 5/1/09 @ $101 |
808,354 | |||||||||
| De Kalb Cnty. Wtr. & Swr. Rev., | ||||||||||
| 4,000 | (b) | 5.00%, 10/1/24 |
||||||||
| Prerefunded 10/1/09 @ $101 |
4,164,880 | |||||||||
| Fulton Cnty. Sch. Dist., Gen. Oblig. | ||||||||||
| 2,000 | 5.375%, 1/1/16 |
2,221,900 | ||||||||
| Georgia Mun. Elec. Auth. Pwr. Rev., Ser. Y, | ||||||||||
| 145 | (b) | 6.40%, 1/1/13, A.M.B.A.C. |
||||||||
| Escrowed to maturity |
160,837 | |||||||||
| 2,440 | 6.40%, 1/1/13, A.M.B.A.C. |
2,690,930 | ||||||||
| 30 | (b) | 6.40%, 1/1/13, A.M.B.A.C. |
||||||||
| Prerefunded 1/1/11 @ $100 |
32,852 | |||||||||
| Georgia Mun. Elec. Auth. Pwr. Rev., | ||||||||||
| 5,500 | 6.50%, 1/1/20, Ser. X, A.M.B.A.C. |
6,571,235 | ||||||||
| 22,509,254 | ||||||||||
| Hawaii | 1.5 | % | ||||||||
| Hawaii Dept. Budget & Fin. Rev., | ||||||||||
| 2,000 | 4.80%, 1/1/25, Ser. A, F.G.I.C. |
2,029,400 | ||||||||
| Idaho | 0.7 | % | ||||||||
| Idaho Hsg. Agcy., | ||||||||||
| Sngl. Fam. Mtge. Sr., Rev., | ||||||||||
| 535 | 6.65%, 7/1/14, Ser. B |
547,123 | ||||||||
| 373 | 6.60%, 7/1/27, Ser. B, F.H.A. |
381,292 | ||||||||
| 928,415 | ||||||||||
| Illinois | 4.2 | % | ||||||||
| Chicago Gen. Oblig., | ||||||||||
| 4,000 | 6.25%, 1/1/11, A.M.B.A.C. |
4,256,720 | ||||||||
| Chicago Multi-Family Hsg. Rev., | ||||||||||
| 500 | 4.90%, 3/20/44, F.H.A. |
495,575 | ||||||||
| Chicago Park Dist., Gen. Oblig., | ||||||||||
| 1,000 | 5.00%, 1/1/27, Ser. A, A.M.B.A.C. |
1,047,250 | ||||||||
| 5,799,545 | ||||||||||
| Indiana | 5.7 | % | ||||||||
| Indiana Mun. Pwr. Agcy., Pwr. | ||||||||||
| Supply Sys. Rev., | ||||||||||
| 5,000 | 6.00%, 1/1/13, Ser. B, M.B.I.A. |
5,549,850 | ||||||||
| 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 |
2,246,685 | |||||||||
| 7,796,535 | ||||||||||
| Principal Amount (000) |
Description (a) | Value | ||||||||
| Iowa | 0.7 | % | ||||||||
| Des Moines Wtr. Rev., | ||||||||||
| $ | 1,000 | 4.375%, 12/1/26, M.B.I.A. |
$ | 994,040 | ||||||
| Kentucky | 2.3 | % | ||||||||
| Louisville & Jefferson Cnty. Met. | ||||||||||
| Swr. Dist., Swr. & Drain Sys. Rev., | ||||||||||
| 2,000 | 5.00%, 5/15/30, Ser. A, F.G.I.C. |
2,039,460 | ||||||||
| Louisville & Jefferson Cnty. Metro. Govt. | ||||||||||
| Health Sys. Rev., | ||||||||||
| 1,000 | 5.25%, 10/1/36 |
1,048,770 | ||||||||
| 3,088,230 | ||||||||||
| Massachusetts | 6.2 | % | ||||||||
| Boston Wtr. & Swr. Comm. Rev., | ||||||||||
| 2,000 | 5.00%, 11/1/28, Ser. D, F.G.I.C. |
2,043,100 | ||||||||
| Massachusetts St. Dev. Finance Agency, | ||||||||||
| Solid Waste Disp. Rev. | ||||||||||
| 1,500 | 5.00%, 2/1/36 |
1,548,090 | ||||||||
| Massachusetts St. Tpk. Auth., | ||||||||||
| Metro. Highway Sys. Rev., | ||||||||||
| 2,355 | 5.125%, 1/1/23, Ser. B, M.B.I.A. |
2,401,158 | ||||||||
| 2,500 | 4.75%, 1/1/34, Ser. A, A.M.B.A.C. |
2,517,500 | ||||||||
| 8,509,848 | ||||||||||
| Michigan | 3.1 | % | ||||||||
| Detroit Wtr. Supply Sys. Rev., | ||||||||||
| Ser. A, | ||||||||||
| 2,000 | (b) | 5.50%, 7/1/24, F.G.I.C. |
||||||||
| Prerefunded 7/1/11 @ $100 |
2,137,820 | |||||||||
| 2,000 | 5.00%, 7/1/30, F.G.I.C. |
2,056,520 | ||||||||
| 4,194,340 | ||||||||||
| Nebraska | 4.1 | % | ||||||||
| Omaha Pub. Pwr. Dist., | ||||||||||
| Elec. Rev., Ser. B, | ||||||||||
| 2,500 | (b) | 6.15%, 2/1/12 |
||||||||
| Escrowed to maturity |
2,685,250 | |||||||||
| 2,500 | (b) | 6.20%, 2/1/17 |
||||||||
| Escrowed to maturity |
2,867,475 | |||||||||
| 5,552,725 | ||||||||||
| Nevada | 3.3 | % | ||||||||
| Las Vegas Valley Wtr. Dist., | ||||||||||
| Gen. Oblig., | ||||||||||
| 1,400 | 5.00%, 6/1/25, Ser. B, M.B.I.A. |
1,461,754 | ||||||||
| 3,000 | 5.00%, 6/1/32, Ser. A, F.G.I.C. |
3,121,290 | ||||||||
| 4,583,044 | ||||||||||
| New Jersey | 3.2 | % | ||||||||
| New Jersey St. Gen. Oblig., | ||||||||||
| 2,000 | 5.25%, 7/1/17, Ser. H |
2,205,820 | ||||||||
| New Jersey Trans. Trust Fund Auth. Rev., | ||||||||||
| 2,000 | 5.25%, 12/15/22, Ser. A |
2,226,620 | ||||||||
| 4,432,440 | ||||||||||
| Principal Amount (000) |
Description (a) | Value | ||||||||
| 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 |
$ | 4,123,640 | |||||
| 800 | 5.00%, 12/1/35, Ser. B |
838,872 | ||||||||
| Metro. Trans. Auth. Rev., | ||||||||||
| 1,000 | 5.25%, 11/15/31, Ser. A, F.G.I.C. |
1,060,780 | ||||||||
| New York City Mun. Wtr. Fin. Auth., | ||||||||||
| Wtr. & Swr. Sys. Rev., | ||||||||||
| 5,000 | 5.00%, 6/15/29, Ser. B, F.S.A. |
5,135,400 | ||||||||
| 11,158,692 | ||||||||||
| Ohio | 3.5 | % | ||||||||
| Hamilton Elec. Sys. Rev. | ||||||||||
| 1,000 | 4.60%, 10/15/20, Ser. A, F.S.A. |
1,027,710 | ||||||||
| Ohio St. Air Quality Dev. Auth. Rev., | ||||||||||
| 1,000 | 4.80%, 9/1/36, Ser. A, F.G.I.C. |
1,007,910 | ||||||||
| Ohio St. Wtr. Dev. Auth. Rev., | ||||||||||
| 2,445 | 5.50%, 6/1/20, Ser. B, F.S.A. |
2,812,801 | ||||||||
| 4,848,421 | ||||||||||
| Pennsylvania | 2.3 | % | ||||||||
| Delaware Cnty. Auth. Rev., | ||||||||||
| 2,000 | 5.00%, 6/1/21, Ser. A, Radian |
2,087,100 | ||||||||
| Pennsylvania Economic Dev. Fin. | ||||||||||
| Auth. Res. Recov. Rev., | ||||||||||
| 1,000 | 4.625%, 12/1/18, Ser. F, A.M.B.A.C. |
1,014,730 | ||||||||
| 3,101,830 | ||||||||||
| Puerto Rico | 0.8 | % | ||||||||
| Puerto Rico Elec. Pwr. Auth. Rev., | ||||||||||
| 1,000 | 5.00%, 7/1/25, Ser. PP, F.G.I.C. |
1,057,020 | ||||||||
| South Carolina | 1.2 | % | ||||||||
| Spartanburg Waterworks Rev., | ||||||||||
| 1,500 | (b) | 5.25%, 6/1/28, F.G.I.C. |
||||||||
| Prerefunded 6/1/14 @ $100 |
1,605,270 | |||||||||
| Tennessee | 1.2 | % | ||||||||
| Tennessee Energy Acquisition Corp. Rev., | ||||||||||
| 1,500 | 5.25%, 9/1/20, Ser. A |
1,651,905 | ||||||||
| Texas | 19.7 | % | ||||||||
| Alliance Airport Auth. Inc. Rev., | ||||||||||
| 1,000 | 4.85%, 4/1/21 |
1,010,780 | ||||||||
| Bexar Met. Wtr. Dist. | ||||||||||
| Waterworks Sys. Rev., | ||||||||||
| 2,500 | 5.00%, 5/1/25, M.B.I.A. |
2,556,950 | ||||||||
| Brazos River Auth. Wtr. Rev., | ||||||||||
| 500 | 4.30%, 2/15/23, M.B.I.A. |
491,345 | ||||||||
| Coastal Wtr. Auth. Contract Rev., | ||||||||||
| 4,000 | 5.00%, 12/15/25, F.S.A. |
4,077,960 | ||||||||
| El Paso Wtr. & Swr. Rev., | ||||||||||
| 1,555 | 5.50%, 3/1/12, Ser. A, F.S.A. |
1,670,676 | ||||||||
| Harris Cnty. Gen. Oblig., | ||||||||||
| 1,650 | 7.00%, 8/15/10, Ser. A |
1,816,370 | ||||||||
| Harris Cnty. Toll Road Senior Lien Rev., | ||||||||||
| 1,000 | 4.50%, 8/15/36, Ser. A, M.B.I.A. |
987,100 | ||||||||
| Houston Wtr. & Swr. Sys. Rev., | ||||||||||
| 1,500 | (b) | 5.25%, 12/1/23, Ser. B, F.G.I.C. |
||||||||
| Prerefunded 12/1/10 @ $100 |
1,575,735 | |||||||||
| 3,500 | (b) | 5.00%, 12/1/28, Ser. A, F.S.A. |
||||||||
| Prerefunded 12/1/09 @ $100 |
3,617,355 | |||||||||
| Lower Colorado River Auth. Rev., | ||||||||||
| 2,000 | 5.00%, 5/15/31, F.S.A. |
2,052,600 | ||||||||
| San Antonio Elec. & Gas Rev., | ||||||||||
| 4,000 | 5.00%, 2/1/18, Ser. A |
4,109,760 | ||||||||
| San Marcos Cons. Indept. Sch. Dist., Gen. Oblig., | ||||||||||
| 2,000 | 4.375%, 8/1/24, P.S.F. |
1,979,500 | ||||||||
| University North Texas Rev., | ||||||||||
| 1,000 | 4.50%, 4/15/25, F.G.I.C. |
999,940 | ||||||||
| 26,946,071 | ||||||||||
| Principal Amount (000) |
Description (a) | Value | ||||||||
| Virginia | 4.1 | % | ||||||||
| Henrico Cnty. Wtr. & Swr. Rev., | ||||||||||
| $ | 3,985 | 5.00%, 5/1/28 |
$ | 4,109,212 | ||||||
| Virginia St. Hsg. Dev. Auth. Rev., | ||||||||||
| 1,500 | 4.55%, 1/1/24 |
1,498,185 | ||||||||
| 5,607,397 | ||||||||||
| Washington | 4.0 | % | ||||||||
| Energy Northwest Wind Proj. Rev., | ||||||||||
| 500 | 4.75%, 7/1/21, M.B.I.A. |
515,425 | ||||||||
| King Cnty. Swr. Rev., | ||||||||||
| 2,500 | 5.00%, 1/1/31, F.G.I.C. |
2,586,800 | ||||||||
| Washington St. Pub. Pwr. Supply, | ||||||||||
| Nuclear Proj. No. 2 Rev., | ||||||||||
| 2,400 | 6.00%, 7/1/07, Ser. A |
2,422,680 | ||||||||
| 5,524,905 | ||||||||||
| West Virginia | 1.1 | % | ||||||||
| Monongalia Cnty. Building Commission | ||||||||||
| Hospital Rev. | ||||||||||
| 1,500 | 5.00%, 7/1/30, Ser. A |
1,525,710 | ||||||||
| Wyoming | 3.2 | % | ||||||||
| Wyoming St. Farm Loan Brd. | ||||||||||
| Cap. Facs. Rev., | ||||||||||
| 4,000 | 5.75%, 10/1/20 |
4,413,760 | ||||||||
| Total long-term investments |
||||||||||
| (cost $182,844,553) |
198,756,475 | |||||||||
| Shares | SHORT-TERM INVESTMENT | 0.7 | % | |||||||
| Goldman Sachs Tax Exempt | ||||||||||
| Money Market Fund | ||||||||||
| 904,856 | (cost $904,856) | $ | 904,856 | |||||||
| Total Investments | 145.7 | % | ||||||||
| (cost $183,749,409) | 199,661,331 | |||||||||
| Other assets in excess of liabilities — |
1.7 | % | 2,404,772 | |||||||
| Liquidation Value of Remarketed Preferred Stock — |
(47.4 | )% | (65,000,000 | ) | ||||||
| Net Assets Applicable to Common Stock — |
100.0 | % | $ | 137,066,103 | ||||||
| Net asset value per share of common stock ($137,066,103 / 8,507,456) |
$ | 16.11 | ||||||||
| (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.
P.S.F. - Texas Permanent School Fund.
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 January 31, 2007, these securities amounted to a value of $3,590,090 or 2.6% of net assets applicable to common stock. |
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of January 31, 2007 were as follows:
| Tax Basis of Investment |
Appreciation |
Depreciation |
Net Unrealized Appreciation | |||
| $183,220,738 |
$16,528,214 | $87,621 | $16,440,593 | |||
| 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 Exchange Act. | ||
| (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 first fiscal quarter of the fiscal half-year covered by this report 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 and Principal Financial Officer | ||
| Date | March 28, 2007 | |
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 28, 2007 | |
| By (Signature and Title) |
/s/ Alan M. Meder | |
| Alan M. Meder Treasurer and Principal Financial Officer | ||
| Date | March 28, 2007 | |