2024-04-17 02:12:45 ET
Summary
- DWS Strategic Municipal Income Trust and DWS Municipal Income Trust have decided to liquidate.
- The funds did not put up a fight and chose straight liquidation, suggesting DWS is no longer interested in its CEF business.
- KSM and KTF have attractive annualized alphas but come with interest rate risk due to their durations.
Chalk this up to another Saba victory.
DWS Strategic Municipal Income Trust ( KSM ) and DWS Municipal Income Trust ( KTF ), two municipal bond CEFs, have decided to liquidate. From the press releases:
March 28, 2024 | DWS Municipal Income Trust Announces Termination and Liquidating Distribution to Shareholders and Distribution Rate Increase. DWS Municipal Income Trust ( KTF ) (the “Fund”) announced today that the Board of Trustees has approved the termination of the Fund, pursuant to which the Fund will make a liquidating distribution to shareholders no later than November 30, 2026 . The Fund also announced that it is increasing its monthly distribution rate to an annualized distribution rate of at least 7% based on KTF’s net asset value (“NAV”) per share as of the then current distribution declaration date. The distribution rate increase will be implemented starting with KTF’s next monthly dividend scheduled to be announced on or about April 8, 2024. The annualized distribution rate target of at least 7% will remain in effect until the termination of KTF; provided that under certain limited circumstances, the monthly distribution amount may be reduced below the annualized distribution rate target of at least 7%.
March 28, 2024 | DWS Strategic Municipal Income Trust Announces Termination and Liquidating Distribution to Shareholders. DWS Strategic Municipal Income Trust ( KSM ) (the “Fund”) announced today that the Board of Trustees has approved the termination of the Fund, pursuant to which the Fund will make a liquidating distribution to shareholders no later than November 30, 2024 .
Read the full article on Seeking Alpha
For further details see:
KSM And KTF To Terminate