DWS Municipal Income Trust and DWS Strategic Municipal Income Trust Announce Annual Meeting of Shareholders

Rhea-AI Summary

DWS Municipal Income Trust (KTF) and DWS Strategic Municipal Income Trust (KSM) announced their Annual Meeting of Shareholders will be on September 20, 2024, in Boston, Massachusetts. Shareholders as of August 2, 2024, are eligible to vote. Both funds invest in municipal bonds susceptible to interest-rate, credit, liquidity, and market risks. Rising interest rates typically lower bond prices, and municipal securities face risks from political events, local economic conditions, and issuer bankruptcies. The funds also use derivatives, which add liquidity and leverage risks, potentially increasing volatility. Closed-end funds like these typically trade at a discount to net asset value and are subject to US and global economic uncertainties, which may impact market volatility and fund performance.

Positive

• Annual Meeting of Shareholders is scheduled, indicating operational transparency and shareholder engagement.
• Shareholders of record as of August 2, 2024, are eligible to vote, ensuring active participation.

Negative

• Both funds face significant interest-rate, credit, liquidity, and market risks, particularly with rising interest rates lowering bond prices.
• Municipal securities are vulnerable to political events, local economic conditions, and issuer bankruptcies.
• Derivatives and leverage used by the funds can increase risk and volatility, potentially reducing returns.
• Closed-end funds often trade at a discount to net asset value, affecting shareholder value.
• Global economic uncertainties can lead to increased market volatility and negatively impact fund performance.

NEW YORK--(BUSINESS WIRE)-- DWS Municipal Income Trust (NYSE: KTF) and DWS Strategic Municipal Income Trust (NYSE: KSM) (each, a “Fund,” and, collectively, the “Funds”) announced that the Annual Meeting of Shareholders for each Fund will be held on September 20, 2024 at the offices of DWS Investment Management Americas, Inc., 100 Summer Street, Boston, Massachusetts. Holders of record of common shares and preferred shares of the Funds at the close of business on August 2, 2024 are entitled to vote at the Annual Meeting and any adjournments or postponements thereof.

Important Information

DWS Municipal Income Trust. Bond investments are subject to interest-rate, credit, liquidity and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest. The market for municipal bonds may be less liquid than for taxable bonds and there may be less information available on the financial condition of issuers of municipal securities than for public corporations. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Leverage results in additional risks and can magnify the effect of any gains or losses. Although the fund seeks income that is exempt from federal income taxes, a portion of the fund’s distributions may be subject to federal, state and local taxes, including the alternative minimum tax.

DWS Strategic Municipal Income Trust. Bond investments are subject to interest-rate, credit, liquidity and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest. The market for municipal bonds may be less liquid than for taxable bonds and there may be less information available on the financial condition of issuers of municipal securities than for public corporations. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Leverage results in additional risks and can magnify the effect of any gains or losses. Although the fund seeks income that is exempt from federal income taxes, a portion of the fund’s distributions may be subject to federal, state and local taxes, including the alternative minimum tax.

Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are bought and sold in the open market through a stock exchange. Shares of closed-end funds frequently trade at a discount to the net asset value. The price of a fund’s shares is determined by a number of factors, several of which are beyond the control of the fund. Therefore, the fund cannot predict whether its shares will trade at, below or above net asset value.

Past performance is no guarantee of future results.

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

War, terrorism, sanctions, economic uncertainty, trade disputes, public health crises and related geopolitical events have led, and, in the future, may lead to significant disruptions in US and world economies and markets, which may lead to increased market volatility and may have significant adverse effects on each Fund and its investments.

NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

DWS Distributors, Inc.
222 South Riverside Plaza
Chicago, IL 60606-5808
www.dws.com
Tel (800) 621-1148
© 2024 DWS Group GmbH & Co. KGaA. All rights reserved

The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services. (R-101056-1) (05/24)

View source version on businesswire.com: https://www.businesswire.com/news/home/20240517953316/en/

For additional information:

DWS Press Office (212) 454-4500

Shareholder Account Information (800) 294-4366

DWS Closed-End Funds (800) 349-4281

Source: DWS

FAQ

When is the Annual Meeting of Shareholders for DWS Municipal Income Trust (KTF)?

The Annual Meeting of Shareholders for DWS Municipal Income Trust (KTF) will be held on September 20, 2024.

Who is eligible to vote at the DWS Municipal Income Trust (KTF) Annual Meeting?

Shareholders of record of DWS Municipal Income Trust (KTF) as of August 2, 2024, are eligible to vote.

What are the primary risks associated with DWS Municipal Income Trust (KTF)?

DWS Municipal Income Trust (KTF) faces interest-rate, credit, liquidity, and market risks, with rising interest rates lowering bond prices.

How does the use of derivatives affect DWS Municipal Income Trust (KTF)?

The use of derivatives by DWS Municipal Income Trust (KTF) adds liquidity and leverage risks, potentially increasing volatility and reducing returns.

Why might shares of DWS Municipal Income Trust (KTF) trade at a discount?

Shares of closed-end funds like DWS Municipal Income Trust (KTF) often trade at a discount to net asset value due to factors beyond the fund's control.

What external factors could impact DWS Municipal Income Trust (KTF)?

Global economic uncertainties, such as political events and market volatility, could negatively impact the performance of DWS Municipal Income Trust (KTF).