UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSR
Investment Company Act file number: 811-02671
Deutsche DWS Municipal Trust
(Exact Name of Registrant as Specified in Charter)
875 Third Avenue
New York, NY 10022-6225
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, including Area Code: (212) 454-4500
Diane Kenneally
100 Summer Street
Boston, MA 02110
(Name and Address of Agent for Service)
Date of fiscal year end: | 5/31 |
Date of reporting period: | 5/31/2023 |
ITEM 1. | REPORT TO STOCKHOLDERS |
(a) |
Contents
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NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
2 | | | DWS Strategic High Yield Tax-Free Fund |
DWS Strategic High Yield Tax-Free Fund | | | 3 |
4 | | | DWS Strategic High Yield Tax-Free Fund |
DWS Strategic High Yield Tax-Free Fund | | | 5 |
6 | | | DWS Strategic High Yield Tax-Free Fund |
DWS Strategic High Yield Tax-Free Fund | | | 7 |
8 | | | DWS Strategic High Yield Tax-Free Fund |
DWS Strategic High Yield Tax-Free Fund | | | 9 |
Class A | 1-Year | 5-Year | 10-Year |
Average Annual Total Returns as of 5/31/23 | |||
Unadjusted for Sales Charge | –3.27% | 0.39% | 1.64% |
Adjusted for the Maximum Sales Charge (max 2.75% load) | –5.93% | –0.17% | 1.36% |
Bloomberg Municipal Bond Index† | 0.49% | 1.65% | 2.28% |
Class C | 1-Year | 5-Year | 10-Year |
Average Annual Total Returns as of 5/31/23 | |||
Unadjusted for Sales Charge | –4.00% | –0.36% | 0.88% |
Adjusted for the Maximum Sales Charge (max 1.00% CDSC) | –4.00% | –0.36% | 0.88% |
Bloomberg Municipal Bond Index† | 0.49% | 1.65% | 2.28% |
Class S | 1-Year | 5-Year | 10-Year |
Average Annual Total Returns as of 5/31/23 | |||
No Sales Charges | –3.01% | 0.65% | 1.90% |
Bloomberg Municipal Bond Index† | 0.49% | 1.65% | 2.28% |
Institutional Class | 1-Year | 5-Year | 10-Year |
Average Annual Total Returns as of 5/31/23 | |||
No Sales Charges | –3.01% | 0.63% | 1.89% |
Bloomberg Municipal Bond Index† | 0.49% | 1.65% | 2.28% |
10 | | | DWS Strategic High Yield Tax-Free Fund |
† | Bloomberg Municipal Bond Index covers the USD-denominated long-term tax exempt bond market. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and pre-refunded bonds. |
DWS Strategic High Yield Tax-Free Fund | | | 11 |
Class A | Class C | Class S | Institutional Class | |
Net Asset Value | ||||
5/31/23 | $10.24 | $10.25 | $10.25 | $10.25 |
5/31/22 | $11.02 | $11.03 | $11.03 | $11.03 |
Distribution Information as of 5/31/23 | ||||
Income Dividends, Twelve Months | $.40 | $.32 | $.43 | $.43 |
Capital Gain Distributions | $.0148 | $.0148 | $.0148 | $.0148 |
May Income Dividend | $.0358 | $.0287 | $.0383 | $.0383 |
SEC 30-day Yield‡‡ | 3.84% | 3.19% | 4.20% | 4.20% |
Tax Equivalent Yield‡‡ | 6.49% | 5.39% | 7.09% | 7.09% |
Current Annualized Distribution Rate‡‡ | 4.12% | 3.30% | 4.40% | 4.40% |
‡‡ | The SEC yield is net investment income per share earned over the month ended May 31, 2023, shown as an annualized percentage of the maximum offering price per share on the last day of the period. The SEC yield is computed in accordance with a standardized method prescribed by the Securities and Exchange Commission. The SEC yields would have been 3.80% and 3.17% for Class A and Class C shares, respectively, had certain expenses not been reduced. Tax equivalent yield is based on the Fund’s yield and a marginal income tax rate of 40.8%. Current annualized distribution rate is the latest monthly dividend shown as an annualized percentage of net asset value on May 31, 2023. Distribution rate simply measures the level of dividends and is not a complete measure of performance. The current annualized distribution rates would have been 4.08% and 3.28% for Class A and Class C shares, respectively, had certain expenses not been reduced. Yields and distribution rates are historical, not guaranteed and will fluctuate. |
12 | | | DWS Strategic High Yield Tax-Free Fund |
Asset Allocation (As a % of Investment Portfolio excluding Open-End Investment Companies) | 5/31/23 | 5/31/22 |
Revenue Bonds | 84% | 87% |
General Obligation Bonds | 7% | 6% |
Variable Rate Demand Notes | 6% | 2% |
Lease Obligations | 1% | 4% |
Escrow to Maturity/Prerefunded Bonds | 1% | 1% |
Other | 1% | 0% |
Variable Rate Demand Preferred Shares | 0% | — |
100% | 100% |
Interest Rate Sensitivity | 5/31/23 | 5/31/22 |
Effective Maturity | 14.7 years | 12.1 years |
Modified Duration | 8.4 years | 8.0 years |
Quality (As a % of Investment Portfolio excluding Open-End Investment Companies) | 5/31/23 | 5/31/22 |
AAA | 2% | 1% |
AA | 14% | 11% |
A | 16% | 19% |
BBB | 20% | 23% |
BB | 9% | 10% |
B | 0% | 0% |
D | — | 2% |
Not Rated | 39% | 34% |
100% | 100% |
Top Five State Allocations (As a % of Investment Portfolio excluding Open-End Investment Companies) | 5/31/23 | 5/31/22 |
Florida | 10% | 10% |
New York | 9% | 6% |
Texas | 9% | 9% |
Illinois | 7% | 8% |
Wisconsin | 7% | 5% |
DWS Strategic High Yield Tax-Free Fund | | | 13 |
14 | | | DWS Strategic High Yield Tax-Free Fund |
Principal Amount ($) | Value ($) | ||
Municipal Investments 97.1% | |||
Alabama 2.4% | |||
Alabama, Black Belt Energy Gas District Gas Project Revenue, Series B, 5.25% (a), 12/1/2053, GTY: Royal Bank of Canada, LIQ: Royal Bank of Canada | 1,925,000 | 2,069,120 | |
Alabama, Black Belt Energy Gas District Prepay Revenue, Series A, 5.25% (a), 1/1/2054, GTY: Goldman Sachs Group, INC. | 5,000,000 | 5,292,805 | |
Jefferson County, AL, Sewer Revenue, Series C, 0%–6.9%, 10/1/2050 (b), INS: AGMC | 5,000,000 | 5,164,367 | |
12,526,292 | |||
Arizona 2.7% | |||
Arizona, State Health Facilities Authority Revenue, Banner Health, Series B, MUNIPSA + 0.25%, 3.66% (a), 1/1/2046 | 210,000 | 205,788 | |
Arizona, State Industrial Development Authority, Education Facility Revenue, Odyssey Preparatory Academy Project, 144A, 5.0%, 7/1/2049 | 2,760,000 | 2,441,268 | |
Arizona, State Industrial Development Authority, Education Revenue, BASIS School Projects: | |||
Series G, 144A, 5.0%, 7/1/2047 | 1,000,000 | 908,874 | |
Series D, 144A, 5.0%, 7/1/2051 | 1,035,000 | 923,477 | |
Series G, 144A, 5.0%, 7/1/2051 | 550,000 | 490,736 | |
Series A, 144A, 5.25%, 7/1/2047 | 1,000,000 | 941,400 | |
Maricopa County, AZ, Industrial Development Authority, Education Revenue, Benjamin Franklin Charter School Project, Series A, 144A, 6.0%, 7/1/2052 | 1,000,000 | 1,016,979 | |
Phoenix, AZ, Civic Improvement Corp., Rental Car Facility Revenue, Series A, 4.0%, 7/1/2045 | 2,000,000 | 1,847,224 | |
Phoenix, AZ, Industrial Development Authority, Student Housing Revenue, Downtown Phoenix Student Housing LLC, Series A, 5.0%, 7/1/2037 | 2,000,000 | 2,026,760 | |
Pima County, AZ, Industrial Development Authority, Education Revenue, American Leadership Academy Project: | |||
Series 2022, 144A, 4.0%, 6/15/2057 | 2,060,000 | 1,460,540 | |
144A, 5.0%, 6/15/2049 | 1,030,000 | 923,780 | |
144A, 5.0%, 6/15/2052 | 710,000 | 628,859 | |
13,815,685 |
DWS Strategic High Yield Tax-Free Fund | | | 15 |
Principal Amount ($) | Value ($) | ||
California 5.6% | |||
California, CSCDA Community Improvement Authority, Essential Housing Revenue, Series A, 144A, 5.0%, 7/1/2051 | 750,000 | 680,021 | |
California, Golden State Tobacco Securitization Corp., Tobacco Settlement Revenue, Series B-1, 3.85%, 6/1/2050 | 2,710,000 | 2,457,162 | |
California, Morongo Band of Mission Indians Revenue, Series B, 144A, 5.0%, 10/1/2042 | 1,145,000 | 1,128,321 | |
California, M-S-R Energy Authority, Series B, 7.0%, 11/1/2034, GTY: Citigroup Global Markets | 5,750,000 | 6,917,481 | |
California, Municipal Finance Authority, Barlow Respiratory hospital obligated Group, Series A, 4.0%, 9/1/2040 | 1,635,000 | 1,363,210 | |
California, River Islands Public Financing Authority, Special Tax, Community Facilities District No. 2019-1, Phase 2 Public Improvements: | |||
3.875%, 9/1/2049 | 2,630,000 | 2,055,199 | |
4.0%, 9/1/2046 | 3,825,000 | 3,105,409 | |
California, State General Obligation, Various Purposes, Series C-3, 2.45% (c), 6/7/2023, LOC: U.S. Bank NA | 1,000,000 | 1,000,000 | |
California, State Public Finance Authority Revenue, ENSO Village Project: | |||
Series A, 144A, 5.0%, 11/15/2046 | 270,000 | 240,908 | |
Series A, 144A, 5.0%, 11/15/2051 | 135,000 | 117,506 | |
Long Beach, CA, Bond Finance Authority, Natural Gas Purchase Revenue, Series A, 5.25%, 11/15/2023, GTY: Merrill Lynch & Co. | 620,000 | 622,096 | |
Long Beach, CA, Carnival Cruise Terminal Financing, 144A, 7.282%, 11/1/2030, GTY: Carnival Corp. | 1,450,000 | 1,347,662 | |
Los Angeles, CA, Department of Airports Revenue, Series A, AMT, 5.0%, 5/15/2037 | 2,375,000 | 2,580,877 | |
Nuveen California Quality Municipal Income Fund: | |||
Series 7, 144A, 3.48% (c), 6/7/2023 | 1,450,000 | 1,450,000 | |
Series 1-1362, 144A, 3.5% (c), 6/7/2023 | 900,000 | 900,000 | |
Riverside County, CA, General Obligation, Series 2021 B-2, 3.0%, 6/1/2048 | 3,105,000 | 2,263,327 | |
San Bernardino County, CA, Flood Control District, 2.7% (c), 6/7/2023, LOC: Bank of America NA | 655,000 | 655,000 | |
28,884,179 | |||
Colorado 4.9% | |||
Colorado, Aurora Highlands Community Authority Board, Special Tax Revenue, Series A, 5.75%, 12/1/2051 | 5,000,000 | 4,487,176 | |
Colorado, Brighton Crossing Metropolitan District No. 6 Ltd., Series A, 5.0%, 12/1/2050 | 2,500,000 | 2,120,759 |
16 | | | DWS Strategic High Yield Tax-Free Fund |
Principal Amount ($) | Value ($) | ||
Colorado, Broadway Park North Metropolitan District No. 2: | |||
144A, 5.0%, 12/1/2040 | 1,100,000 | 1,045,778 | |
144A, 5.0%, 12/1/2049 | 1,275,000 | 1,167,692 | |
Colorado, Broadway Station Metropolitan District No. 3, Series B, 0%–7.5%, 12/1/2049 (b) | 2,000,000 | 1,225,201 | |
Colorado, General Obligation, Series A, 144A, 5.0%, 12/1/2051 | 1,150,000 | 991,149 | |
Colorado, North Range Metropolitan District No. 3, Series A, 5.25%, 12/1/2050 | 2,167,000 | 1,933,444 | |
Colorado, Public Energy Authority, Natural Gas Purchased Revenue, 6.25%, 11/15/2028, GTY: Merrill Lynch & Co. | 6,365,000 | 6,793,044 | |
Colorado, Trails At Crowfoot Metropolitan District No. 3, Series A, 5.0%, 12/1/2049 | 1,000,000 | 899,858 | |
Denver, CO, Convention Center Hotel Authority Revenue: | |||
5.0%, 12/1/2033 | 500,000 | 508,375 | |
5.0%, 12/1/2034 | 1,000,000 | 1,013,325 | |
Denver, CO, Urban Renewal Authority, Tax Increment Revenue, 9th Urban Redevelopment Area, Series A, 144A, 5.25%, 12/1/2039 | 1,745,000 | 1,758,836 | |
Douglas County, CO, Rampart Range Metropolitan District No. 5: | |||
4.0%, 12/1/2041 | 560,000 | 426,660 | |
Series 2021, 4.0%, 12/1/2051 | 1,590,000 | 1,105,432 | |
25,476,729 | |||
Connecticut 0.1% | |||
Connecticut, Steel Point Infrastructure Improvement District Special Obligation Revenue, Steelpointe Harbor Project: | |||
144A, 4.0%, 4/1/2041 | 190,000 | 151,034 | |
144A, 4.0%, 4/1/2051 | 705,000 | 509,981 | |
661,015 | |||
District of Columbia 0.8% | |||
District of Columbia, Latin American Montessori Bilingual Public Charter School, 5.0%, 6/1/2050 | 3,370,000 | 3,046,893 | |
District of Columbia, Two Rivers Public Charter School, Inc., 5.0%, 6/1/2050 | 1,240,000 | 1,131,236 | |
4,178,129 | |||
Florida 10.1% | |||
Charlotte County, FL, Industrial Development Authority, Utility System Revenue, Town & Country Utilities Project, Series A, 144A, AMT, 4.0%, 10/1/2051, GTY: Babcock Ranch IRR LLC | 750,000 | 566,457 |
DWS Strategic High Yield Tax-Free Fund | | | 17 |
Principal Amount ($) | Value ($) | ||
Collier County, FL, Industrial Development Authority, Continuing Care Community Revenue, Arlington of Naples Project, Series A, 144A, 8.125%, 5/15/2044* (d) | 1,803,289 | 198,362 | |
Collier County,FL, State Educational Facilities Authority Revenue, Ave Maria University Inc., 5.25%, 6/1/2038 | 1,315,000 | 1,338,626 | |
Florida, Capital Project Finance Authority, Student Housing Revenue, Loan Program: | |||
Series A-1, 5.0%, 10/1/2032 | 230,000 | 238,992 | |
Series A-1, 5.0%, 10/1/2033 | 230,000 | 237,970 | |
Series A-1, 5.0%, 10/1/2034 | 230,000 | 236,232 | |
Series A-1, 5.0%, 10/1/2035 | 115,000 | 117,183 | |
Florida, Capital Projects Finance Authority, Student Housing Revenue, Capital Projects Loan Program, Series A-2, 4.0%, 10/1/2024 | 2,245,000 | 2,179,689 | |
Florida, Capital Trust Agency, Educational Facilities Authority, Charter Educational Foundation Project, Series A, 144A, 5.375%, 6/15/2048 | 1,840,000 | 1,672,032 | |
Florida, Capital Trust Agency, Educational Growth Fund LLC, Charter School Portfolio Project, Series A-1, 144A, 5.0%, 7/1/2056 | 1,190,000 | 1,069,167 | |
Florida, Development Finance Corp., Educational Facilities Revenue, Mater Academy Projects, Series A, 5.0%, 6/15/2050 | 2,065,000 | 1,991,930 | |
Florida, Development Finance Corp., Brightline Florida Passenger Rail Expansion Project, Series A, 144A, AMT, 7.25% (a), 7/1/2057 | 1,000,000 | 1,016,496 | |
Florida, Development Finance Corp., Educational Facilities Revenue, River City Science Academy Project: | |||
Series A-1, 5.0%, 7/1/2042 | 75,000 | 74,728 | |
Series B, 5.0%, 7/1/2042 | 80,000 | 79,710 | |
Series A-1, 5.0%, 7/1/2051 | 70,000 | 67,519 | |
Series B, 5.0%, 7/1/2051 | 115,000 | 110,923 | |
Series A-1, 5.0%, 2/1/2057 | 100,000 | 94,426 | |
Series B, 5.0%, 7/1/2057 | 120,000 | 113,284 | |
Florida, Development Finance Corp., Surface Transportation Facilities Revenue, Brightline Passenger Rail Project, Series B, 144A, AMT, 7.375%, 1/1/2049 | 1,500,000 | 1,448,629 | |
Florida, Development Finance Corp., Surface Transportation Facilities Revenue, Virgin Trains USA Passenger Rail Project, Series A, 144A, AMT, 6.5% (a), 1/1/2049 | 1,905,000 | 1,808,751 | |
Florida, State Development Finance Corp., Learning Gate Community School Project: | |||
Series A, 5.0%, 2/15/2038 | 500,000 | 502,057 | |
Series A, 5.0%, 2/15/2048 | 1,150,000 | 1,151,787 |
18 | | | DWS Strategic High Yield Tax-Free Fund |
Principal Amount ($) | Value ($) | ||
Florida, State Development Finance Corp., Senior Living Revenue, The Cabana at Jensen Dunes Project: | |||
Series A, 144A, 5.0%, 11/15/2056 | 1,000,000 | 704,166 | |
Series A, 144A, 5.25%, 11/15/2056 | 9,000,000 | 6,614,788 | |
Florida, State Higher Educational Facilities Financial Authority Revenue, Florida Institute of Technology: | |||
Series A, 4.0%, 10/1/2044 | 1,395,000 | 1,191,118 | |
4.0%, 10/1/2049 | 1,905,000 | 1,576,750 | |
Florida, State Higher Educational Facilities Financial Authority Revenue, Jacksonville University Project, Series A-1, 144A, 4.75%, 6/1/2038 | 1,750,000 | 1,630,674 | |
Florida, State Mid-Bay Bridge Authority, Series A, 5.0%, 10/1/2035 | 1,030,000 | 1,045,116 | |
Florida, Village Community Development District No. 12, Special Assessment Revenue: | |||
4.25%, 5/1/2043 | 2,295,000 | 2,074,237 | |
4.375%, 5/1/2050 | 1,920,000 | 1,676,751 | |
Florida, Village Community Development District No. 13, Special Assessment Revenue, Series 2021, 3.25%, 5/1/2052 | 1,685,000 | 1,146,595 | |
Florida, Village Community Development District No. 14, 5.5%, 5/1/2053 | 2,665,000 | 2,661,361 | |
Greater Orlando, FL, Aviation Authority Airport Facilities Revenue, Series A, AMT, 4.0%, 10/1/2052 | 2,000,000 | 1,836,085 | |
Jacksonville, FL, Educational Facilities Revenue, Jacksonville University Project, Series B, 144A, 5.0%, 6/1/2053 | 3,250,000 | 2,861,517 | |
Lake County, FL, Educational Facilities Revenue, Imagine South Lake Charter School Project: | |||
Series A, 144A, 5.0%, 1/15/2049 | 825,000 | 738,463 | |
Series A, 144A, 5.0%, 1/15/2054 | 850,000 | 746,480 | |
Miami-Dade County, FL, Seaport Revenue: | |||
Series B-1, AMT, 4.0%, 10/1/2046 | 2,570,000 | 2,392,100 | |
Series A, AMT, 5.0%, 10/1/2040 | 1,500,000 | 1,572,357 | |
Orange County, FL, Health Facilities Authority, The Nemours Foundation, Series C-2, 3.25% (c), 6/7/2023, LOC: TD Bank NA | 200,000 | 200,000 | |
Osceola County, FL, Transportation Revenue: | |||
Series A-2, Zero Coupon, 10/1/2049 | 3,400,000 | 803,049 | |
Series A-2, Zero Coupon, 10/1/2051 | 4,775,000 | 1,000,427 | |
Series A-2, Zero Coupon, 10/1/2054 | 4,570,000 | 803,621 |
DWS Strategic High Yield Tax-Free Fund | | | 19 |
Principal Amount ($) | Value ($) | ||
Seminole County, FL, Industrial Development Authority, Legacy Pointe At UCF Project: | |||
Series A, 5.25%, 11/15/2039 | 445,000 | 361,731 | |
Series A, 5.5%, 11/15/2049 | 3,635,000 | 2,793,573 | |
52,745,909 | |||
Georgia 1.9% | |||
George L Smith II, GA, Congress Center Authority, Convention Center Hotel First Tier, Series A, 4.0%, 1/1/2054 | 1,420,000 | 1,149,535 | |
George L Smith II, GA, Congress Center Authority, Convention Center Hotel Second Tier, Series B, 144A, 5.0%, 1/1/2054 | 3,365,000 | 2,717,353 | |
Georgia, Main Street Natural Gas, Inc., Gas Supply Revenue, Series B, 5.0% (a), 7/1/2053, GTY: Royal Bank of Canada | 4,110,000 | 4,336,060 | |
Georgia, Tender Option Bond Trust Receipts, Series 2018-XF0709, 144A, 144A, 1.96% (c), 6/7/2023, LIQ: JPMorgan Chase Bank NA | 1,500,000 | 1,500,000 | |
9,702,948 | |||
Illinois 6.9% | |||
Chicago, IL, Board of Education: | |||
Series B, 4.0%, 12/1/2035 | 2,500,000 | 2,352,743 | |
Series A, 5.0%, 12/1/2033 | 740,000 | 762,069 | |
Series H, 5.0%, 12/1/2046 | 1,690,000 | 1,633,334 | |
Chicago, IL, General Obligation: | |||
Series B, 4.0%, 1/1/2036 | 950,000 | 909,838 | |
Series A, 6.0%, 1/1/2038 | 2,180,000 | 2,311,894 | |
Chicago, IL, O’Hare International Airport, Special Facility Revenue, AMT, 5.0%, 7/1/2048 | 1,185,000 | 1,164,863 | |
Chicago, IL, Transit Authority, Sales Tax Receipts Revenue, Second Lien, Series A, 4.0%, 12/1/2050 | 1,400,000 | 1,282,493 | |
Illinois, Housing Development Authority Revenue: | |||
Series B, 3.0%, 4/1/2051 | 3,490,000 | 3,333,488 | |
Series 2022-E, 5.25%, 10/1/2052 | 3,990,000 | 4,143,462 | |
Illinois, State Finance Authority Revenue, Friendship Village of Schaumburg, 5.125%, 2/15/2045* (d) | 7,935,000 | 3,570,750 | |
Illinois, State General Obligation: | |||
5.0%, 11/1/2034 | 1,500,000 | 1,550,341 | |
5.0%, 1/1/2035 | 300,000 | 307,597 | |
Series A, 5.0%, 12/1/2042 | 3,610,000 | 3,681,364 | |
Series B, 5.25%, 5/1/2041 | 1,875,000 | 2,014,226 | |
Series B, 5.25%, 5/1/2042 | 2,125,000 | 2,271,247 | |
Series B, 5.25%, 5/1/2043 | 1,000,000 | 1,067,228 |
20 | | | DWS Strategic High Yield Tax-Free Fund |
Principal Amount ($) | Value ($) | ||
5.5%, 5/1/2039 | 1,535,000 | 1,676,379 | |
5.75%, 5/1/2045 | 1,470,000 | 1,597,014 | |
35,630,330 | |||
Indiana 1.1% | |||
Indiana, State Finance Authority Revenue, Educational Facilities, Rock Creek Community Academy Inc., Project: | |||
Series A, 144A, 5.875%, 7/1/2038 | 1,340,000 | 1,336,607 | |
Series A, 144A, 6.125%, 7/1/2048 | 3,660,000 | 3,641,201 | |
Indiana, State Housing & Community Development Authority, Single Family Mortgage Revenue, Series C-1, 5.0%, 7/1/2053 | 720,000 | 740,784 | |
5,718,592 | |||
Iowa 1.5% | |||
Iowa, Finance Authority, Educational Facility Revenue, Holy Family Catholic School Project, 3.9% (c), 6/1/2023, LOC: U.S. Bank NA | 300,000 | 300,000 | |
Iowa, State Higher Education Loan Authority Revenue, Private College Facility, Des Moines University Project, 4.0%, 10/1/2045 | 5,210,000 | 4,584,913 | |
Iowa, State Student Loan Liquidity Corp., Senior Revenue, Series B, AMT, 3.0%, 12/1/2039 | 275,000 | 256,440 | |
Iowa, Tobacco Settlement Authority Revenue: | |||
Series B-2, Zero Coupon, 6/1/2065 | 12,555,000 | 1,389,796 | |
Series B-1, 4.0%, 6/1/2049 | 1,550,000 | 1,517,824 | |
8,048,973 | |||
Kansas 0.2% | |||
Wyandotte County, KS, Unified Government, Legends Apartments Garage & West Lawn Project, 4.5%, 6/1/2040 | 1,255,000 | 1,147,372 | |
Kentucky 0.2% | |||
Kentucky, State Economic Development Finance Authority, Owensboro Health, Inc., Obligated Group, Series A, 5.0%, 6/1/2045 | 1,275,000 | 1,242,075 | |
Louisiana 0.0% | |||
Louisiana, Public Facilities Authority Revenue, Ochsner Clinic Foundation Project, Prerefunded, 5.0%, 5/15/2047 | 10,000 | 10,496 | |
Maryland 0.7% | |||
Maryland, State Health & Higher Educational Facilities Authority Revenue, Greater Baltimore Medical Center, Series A, 3.0%, 7/1/2046 | 5,040,000 | 3,750,613 |
DWS Strategic High Yield Tax-Free Fund | | | 21 |
Principal Amount ($) | Value ($) | ||
Massachusetts 0.9% | |||
Massachusetts, Educational Financing Authority, Issue M, Series B, AMT, 2.0%, 7/1/2037 | 1,150,000 | 961,638 | |
Massachusetts, State Department of Transportation, Metropolitan Highway Systems Revenue, Series A-2, 3.55% (c), 6/7/2023, LOC: TD Bank NA | 100,000 | 100,000 | |
Massachusetts, State Development Finance Agency Revenue, Springfield College: | |||
Series B, 4.0%, 6/1/2050 | 1,005,000 | 816,528 | |
Series A, 4.0%, 6/1/2056 | 450,000 | 352,359 | |
Massachusetts, State Development Financing Agency, College of the Holy Cross, Series A, 4.0% (c), 6/1/2023, LOC: Bank of America NA | 1,800,000 | 1,800,000 | |
Massachusetts, State Educational Financing Authority, Series B, AMT, 3.0%, 7/1/2035 | 90,000 | 89,901 | |
Massachusetts, State Health & Educational Facilities Authority Revenue, Series J-2, 3.2% (c), 6/7/2023 | 500,000 | 500,000 | |
4,620,426 | |||
Michigan 1.6% | |||
Kentwood, MI, Economic Development Corp., Holland Home Obligated Group, Series 2022, 4.0%, 11/15/2043 | 1,500,000 | 1,128,919 | |
Michigan, Finance Authority Higher Facilities, Ltd. Obligation Revenue, Kettering University Project: | |||
4.0%, 9/1/2045 | 1,775,000 | 1,590,965 | |
4.0%, 9/1/2050 | 1,660,000 | 1,448,747 | |
Michigan, State Finance Authority Revenue, Detroit Water & Sewer Department, Series C, 5.0%, 7/1/2035 | 910,000 | 927,406 | |
Michigan, State Finance Authority Revenue, Tobacco Settlement Revenue: | |||
“1", Series A, 4.0%, 6/1/2049 | 1,000,000 | 888,699 | |
Series A-2, 5.0%, 6/1/2040 | 1,770,000 | 1,837,373 | |
Michigan, State University Revenue, Series 2000-A, 3.95% (c), 6/7/2023, SPA: Northern Trust Company | 600,000 | 600,000 | |
8,422,109 | |||
Minnesota 1.9% | |||
Duluth, MN, Economic Development Authority, Health Care Facilities Revenue, Essentia Health Obligated Group, Series A, 5.0%, 2/15/2048 | 1,000,000 | 1,014,953 | |
Minnesota, State Housing Finance Agency, Series I, 5.0%, 7/1/2053 | 3,925,000 | 4,038,412 |
22 | | | DWS Strategic High Yield Tax-Free Fund |
Principal Amount ($) | Value ($) | ||
Minnesota, State Office of Higher Education Revenue: | |||
AMT, 2.65%, 11/1/2038 | 1,895,000 | 1,551,019 | |
AMT, 4.0%, 11/1/2042 (e) | 3,430,000 | 3,230,863 | |
9,835,247 | |||
Missouri 1.3% | |||
Kansas City, MO, Land Clearance Redevelopment Authority Project Revenue, Convention Center Hotel Project, Series A, 144A, 6.25%, 4/15/2049 | 3,750,000 | 3,055,339 | |
Missouri, State Health & Educational Facilities Authority Revenue, Medical Research, Lutheran Senior Services: | |||
4.0%, 2/1/2042 | 1,450,000 | 1,157,538 | |
Series A, 5.0%, 2/1/2046 | 665,000 | 605,343 | |
St. Louis, MO, Industrial Development Authority Financing Revenue, Ballpark Village Development Project, Series A, 4.75%, 11/15/2047 | 2,275,000 | 1,679,033 | |
6,497,253 | |||
Nevada 1.0% | |||
Nevada, Tahoe Douglas Visitors Authority, Stateline Revenue: | |||
5.0%, 7/1/2040 | 1,000,000 | 985,923 | |
5.0%, 7/1/2045 | 1,000,000 | 980,516 | |
5.0%, 7/1/2051 | 1,000,000 | 961,709 | |
Reno, NV, Sales Tax Revenue, Transportation Rail Access, Series C, 144A, Zero Coupon, 7/1/2058 | 18,000,000 | 2,288,309 | |
5,216,457 | |||
New Hampshire 0.1% | |||
New Hampshire, State Health & Educational Facilities Authority Revenue, Hillside Village: | |||
Series A, 144A, 6.125%, 7/1/2037* (d) | 751,308 | 165,288 | |
Series A, 144A, 6.25%, 7/1/2042* (d) | 909,917 | 200,182 | |
365,470 | |||
New Jersey 2.8% | |||
New Jersey, State Covid-19 General Obligation Emergency Bonds, Series A, 4.0%, 6/1/2031 | 415,000 | 442,247 | |
New Jersey, State Economic Development Authority Revenue, Series SSS, 5.25%, 6/15/2038 (e) | 400,000 | 423,543 | |
New Jersey, State Economic Development Authority Revenue, Black Horse EHT Urban Renewal LLC Project, Series A, 144A, 5.0%, 10/1/2039 | 3,795,000 | 2,731,152 | |
New Jersey, State Economic Development Authority Revenue, White Horse HMT Urban Renewal LLC Project, 144A, 5.0%, 1/1/2040 | 1,625,000 | 1,160,361 |
DWS Strategic High Yield Tax-Free Fund | | | 23 |
Principal Amount ($) | Value ($) | ||
New Jersey, State Economic Development Authority, Special Facilities Revenue, Continental Airlines, Inc. Project, Series B, AMT, 5.625%, 11/15/2030 | 2,500,000 | 2,534,341 | |
New Jersey, State Higher Education Assistance Authority, Student Loan Revenue: | |||
Series B, AMT, 2.5%, 12/1/2040 | 1,035,000 | 859,098 | |
Series B, AMT, 3.25%, 12/1/2039 | 1,190,000 | 1,121,933 | |
Series B, AMT, 3.5%, 12/1/2039 | 1,440,000 | 1,367,327 | |
Series C, AMT, 5.0%, 12/1/2053 | 605,000 | 584,902 | |
New Jersey, State Housing & Mortgage Finance Agency, Single Family Housing Revenue, Series I, 5.0%, 10/1/2053 | 1,185,000 | 1,219,846 | |
New Jersey, Transportation Trust Fund Authority, Series BB, 4.0%, 6/15/2040 | 2,025,000 | 1,944,016 | |
14,388,766 | |||
New Mexico 0.4% | |||
New Mexico, State Mortgage Finance Authority, “I” , Series D, 3.25%, 7/1/2044 | 2,460,000 | 2,114,973 | |
New York 9.1% | |||
Buffalo & Erie County, NY, Industrial Land Development Corp., D’Youville College Project: | |||
Series A, 4.0%, 11/1/2040 | 1,200,000 | 1,101,590 | |
Series A, 4.0%, 11/1/2050 | 2,500,000 | 2,133,600 | |
Dutchess County, NY, Local Development Corp., Bard College Project, Series A, 144A, 5.0%, 7/1/2051 | 380,000 | 376,135 | |
Monroe County, NY, Industrial Development Corp. Revenue, St. Ann’s Community Project, 5.0%, 1/1/2050 | 4,750,000 | 3,555,646 | |
New York, Brooklyn Arena Local Development Corp., Pilot Revenue, Barclays Center Project, Series A, 4.0%, 7/15/2035, INS: AGMC | 455,000 | 456,473 | |
New York, Metropolitan Transportation Authority Revenue: | |||
Series 2012-G1, 4.0% (c), 6/1/2023, LOC: Barclays Bank PLC | 50,000 | 50,000 | |
Series E-1, 4.0% (c), 6/1/2023, LOC: Barclays Bank PLC | 13,700,000 | 13,700,000 | |
New York, Metropolitan Transportation Authority Revenue, Green Bond, Series D-2, 4.0%, 11/15/2048 | 3,500,000 | 3,201,951 | |
New York, State Dormitory Authority Revenues, Non-State Supported Debt, The New School: | |||
Series A, 4.0%, 7/1/2047 | 500,000 | 447,942 | |
Series A, 4.0%, 7/1/2052 | 590,000 | 515,984 | |
New York, State Transportation Development Corp., Special Facilities Revenue, John F. Kennedy International Airport Project: | |||
AMT, 3.0%, 8/1/2031, GTY: American Airlines Group, Inc. | 500,000 | 434,536 |
24 | | | DWS Strategic High Yield Tax-Free Fund |
Principal Amount ($) | Value ($) | ||
AMT, 4.0%, 12/1/2042 | 1,200,000 | 1,092,167 | |
AMT, 5.375%, 8/1/2036 | 900,000 | 908,716 | |
New York, TSASC, Inc.: | |||
Series A, 5.0%, 6/1/2041 | 595,000 | 605,120 | |
Series B, 5.0%, 6/1/2048 | 2,800,000 | 2,593,136 | |
New York City, NY, General Obligation, Series E-1, 5.0%, 4/1/2041 | 3,750,000 | 4,142,471 | |
New York City, NY, Housing Development Corp., Multi-Family Housing Revenue: | |||
Series E-1, 2.8%, 11/1/2034 | 5,000,000 | 4,423,623 | |
Series E-1, 3.0%, 11/1/2039 | 3,000,000 | 2,529,534 | |
New York City, NY, Municipal Water Finance Authority, Water & Sewer Systems Revenue, Series EE-2, 3.95% (c), 6/1/2023, LIQ: State Street B&T Co. | 550,000 | 550,000 | |
New York Counties, NY, Tobacco Trust IV, Series F, Zero Coupon, 6/1/2060 | 35,000,000 | 1,854,598 | |
New York, NY, General Obligation, Series L-4, 3.95% (c), 6/1/2023, LOC: U.S. Bank NA | 1,200,000 | 1,200,000 | |
Orange County, NY, Senior Care Revenue, Industrial Development Agency, The Glen Arden Project, Series A, 5.7%, 1/1/2028* (d) | 2,125,000 | 1,593,750 | |
47,466,972 | |||
North Carolina 0.3% | |||
North Carolina, Charlotte-Mecklenburg Hospital Authority, Atrium Health Obligated Group, Series E, 3.95% (c), 6/1/2023, LOC: Royal Bank of Canada | 290,000 | 290,000 | |
North Carolina, State Housing Finance Agency, Series 42, 4.0%, 1/1/2050 | 1,465,000 | 1,449,344 | |
1,739,344 | |||
Ohio 3.4% | |||
Buckeye, OH, Tobacco Settlement Financing Authority, “2” , Series B-2, 5.0%, 6/1/2055 | 4,940,000 | 4,576,945 | |
Columbus, OH, Regional Airport Authority, Capital Funding Revenue, Oasbo Expanded Asset, 3.4% (c), 6/7/2023, LOC: U.S. Bank NA | 570,000 | 570,000 | |
Hamilton County, OH, Health Care Revenue, Life Enriching Communities Project: | |||
5.0%, 1/1/2051 | 1,270,000 | 1,077,131 | |
Series A, 5.0%, 1/1/2052 | 1,000,000 | 844,889 | |
Ohio, Akron, Bath & Copley Joint Township Hospital District Revenue, 5.25%, 11/15/2046 | 1,575,000 | 1,592,552 |
DWS Strategic High Yield Tax-Free Fund | | | 25 |
Principal Amount ($) | Value ($) | ||
Ohio, State Air Quality Development Authority, Exempt Facilities Revenue, Pratt Paper LLC Project: | |||
144A, AMT, 4.25%, 1/15/2038, GTY: Pratt Industries, Inc. | 725,000 | 689,275 | |
144A, AMT, 4.5%, 1/15/2048, GTY: Pratt Industries, Inc. | 3,115,000 | 2,887,373 | |
Ohio, State Hospital Revenue, Aultman Health Foundation, 144A, 5.0%, 12/1/2048 | 6,000,000 | 5,315,919 | |
17,554,084 | |||
Oklahoma 1.0% | |||
Oklahoma, State Development Finance Authority, Health System Revenue, OU Medicine Project: | |||
Series B, 5.25%, 8/15/2048 | 2,935,000 | 2,664,392 | |
Series A, 5.5%, 8/15/2041 | 1,360,000 | 1,296,954 | |
Series A, 5.5%, 8/15/2044 | 1,445,000 | 1,367,914 | |
5,329,260 | |||
Oregon 0.7% | |||
Oregon, State Facilities Authority Revenue, Peacehealth Systems, Series B, 3.9% (c), 6/1/2023, LOC: TD Bank NA | 3,800,000 | 3,800,000 | |
Pennsylvania 1.8% | |||
Chester County, PA, Industrial Development Authority, Special Obligation Revenue, Woodlands at Graystone Neighborhood Improvement Project, 144A, 5.125%, 3/1/2048 | 422,000 | 390,723 | |
Lancaster County, PA, Hospital Authority, Brethren Village Project: | |||
5.125%, 7/1/2037 | 900,000 | 824,196 | |
5.25%, 7/1/2041 | 900,000 | 817,765 | |
Pennsylvania, Higher Education Assistance Agency Education Loan Revenue, Series A, AMT, 2.45%, 6/1/2041 | 4,025,000 | 3,318,530 | |
Pennsylvania, State Economic Development Financing Authority Revenue, UPMC Obligated Group, Series A-2, 4.0%, 5/15/2043 | 875,000 | 837,764 | |
Pennsylvania, State Housing Finance Agency, Single Family Mortgage Revenue, Series 132A, 3.5%, 4/1/2051 | 1,180,000 | 1,157,978 | |
Pennsylvania, State Turnpike Commission Revenue: | |||
Series A, 4.0%, 12/1/2044 | 660,000 | 637,339 | |
Series A, 4.0%, 12/1/2046 | 440,000 | 420,834 |
26 | | | DWS Strategic High Yield Tax-Free Fund |
Principal Amount ($) | Value ($) | ||
Series A-1, 5.0%, 12/1/2041 | 20,000 | 20,481 | |
Philadelphia, PA, Authority For Industrial Development, Charter School Revenue, Philadelphia Electrical and Technology Charter High School Project, Series A, 4.0%, 6/1/2056 | 1,240,000 | 899,297 | |
9,324,907 | |||
South Carolina 0.9% | |||
South Carolina, Public Service Authority Revenue, Series A, 4.0%, 12/1/2055 | 1,000,000 | 890,774 | |
South Carolina, State Public Service Authority Revenue: | |||
Series B, 4.0%, 12/1/2047 | 1,820,000 | 1,679,751 | |
Series A, 4.0%, 12/1/2052 | 2,160,000 | 1,957,032 | |
4,527,557 | |||
South Dakota 0.3% | |||
Lincon County, SD, Economic Development Revenue, Augustana College Association Project, Series A, 4.0%, 8/1/2056 | 2,050,000 | 1,606,873 | |
South Dakota, State Health & Educational Facilities Authority, Sioux Vy Hospital & Health Revenue, Series B, 3.55% (c), 6/7/2023, LOC: U.S. Bank NA | 100,000 | 100,000 | |
1,706,873 | |||
Tennessee 1.4% | |||
Metropolitan Nashville, TN, Airport Authority Revenue: | |||
Series B, AMT, 4.0%, 7/1/2049 | 1,000,000 | 922,274 | |
Series B, AMT, 4.0%, 7/1/2054 | 500,000 | 455,338 | |
Nashville & Davidson County, TN, Metropolitan Development & Housing Agency, Tax Increment Revenue, Fifth Broadway Development District, 144A, 5.125%, 6/1/2036 | 900,000 | 910,866 | |
Nashville & Davidson County, TN, Metropolitan Government Health & Education Facilities Board Revenue, Blakeford At Green Hills Corp., Series A, 4.0%, 11/1/2055 | 4,000,000 | 2,827,781 | |
Tennessee, New Memphis Arena Public Building Authority, City of Memphis Project, 0%–4.0%, 4/1/2031 (b) | 750,000 | 666,675 | |
Tennessee, State Energy Acquisition Corporation Revenue, Series A, 5.0% (a), 5/1/2052, GTY: Goldman Sachs Group, INC. | 1,200,000 | 1,253,905 | |
7,036,839 | |||
Texas 8.6% | |||
Central Texas, Regional Mobility Authority Revenue, Capital Appreciation: | |||
Zero Coupon, 1/1/2030 | 5,000,000 | 3,905,263 |
DWS Strategic High Yield Tax-Free Fund | | | 27 |
Principal Amount ($) | Value ($) | ||
Zero Coupon, 1/1/2032 | 3,500,000 | 2,519,773 | |
Clifton, TX, Higher Education Finance Corp., Education Revenue, Series D, 6.125%, 8/15/2048 | 4,485,000 | 4,500,497 | |
Greater Texas, Cultural Education Facilities Finance Corp. Lease Revenue, Epicenter Multipurpose Facilities Project, Series A, 4.0%, 3/1/2050 | 2,165,000 | 1,978,668 | |
Matagorda County, TX, Navigation District No. 1, Pollution Control Revenue, AEP Texas Central Co. Project, Series A, 4.4%, 5/1/2030, INS: AMBAC | 4,000,000 | 3,975,452 | |
Newark, TX, Higher Education Finance Corp., Texas Revenue, Abilene Christian University Project, Series A, 4.0%, 4/1/2057 | 6,000,000 | 5,150,701 | |
San Antonio, TX, Education Facilities Corp. Higher Education Revenue, Hallmark University Project: | |||
Series A, 5.0%, 10/1/2041 | 350,000 | 295,863 | |
Series A, 5.0%, 10/1/2051 | 735,000 | 576,497 | |
Tarrant County, TX, Cultural Education Facilities Finance Corp., Hospital Revenue, Methodist Hospitals of Dallas Project, Series A, 3.9% (c), 6/1/2023, LOC: TD Bank NA | 1,445,000 | 1,445,000 | |
Temple, TX, Tax Increment, Reinvestment Zone No. 1: | |||
Series A, 4.0%, 8/1/2039, INS: BAM | 170,000 | 168,051 | |
Series A, 4.0%, 8/1/2041, INS: BAM | 235,000 | 227,282 | |
Series A, 5.0%, 8/1/2038 | 2,830,000 | 2,849,455 | |
Texas, Industrial Development Corp. Revenue, Energy Transfer LP, 4.05% (a), 11/1/2050 | 1,275,000 | 1,280,425 | |
Texas, New Hope Cultural Education Facilities Finance Corp., Educational Revenue, Cumberland Academy Project, Series A, 144A, 5.0%, 8/15/2050 | 3,550,000 | 3,046,919 | |
Texas, New Hope Cultural Education Facilities Finance Corp., Retirement Facilities Revenue, Westminster Project, 4.0%, 11/1/2049 | 150,000 | 116,414 | |
Texas, New Hope Cultural Education Facilities Finance Corp., Senior Living Revenue, Bridgemoor Plano Project, Series A, 7.25%, 12/1/2053* (d) | 6,605,000 | 5,944,500 | |
Texas, Private Activity Bond, Surface Transportation Corp. Revenue, Senior Lien Revenue, Infrastructure Group LLC, I-635 Managed Lanes Project: | |||
Series A, 4.0%, 6/30/2038 | 380,000 | 356,999 | |
Series A, 4.0%, 12/31/2038 | 380,000 | 356,470 | |
Series A, 4.0%, 6/30/2039 | 290,000 | 270,494 | |
Series A, 4.0%, 6/30/2040 | 610,000 | 563,314 |
28 | | | DWS Strategic High Yield Tax-Free Fund |
Principal Amount ($) | Value ($) | ||
Texas, State Municipal Gas Acquisition & Supply Corp. I, Gas Supply Revenue, Series D, 6.25%, 12/15/2026, GTY: Merrill Lynch & Co. | 3,020,000 | 3,138,877 | |
Texas, State Private Activity Bond, Surface Transportation Corp. Revenue, Senior Lien, North Tarrant Express Mobility Partners Segments LLC, Series A, AMT, 6.75%, 6/30/2043 | 2,220,000 | 2,232,795 | |
44,899,709 | |||
Utah 1.8% | |||
Utah, Infrastructure Agency Telecommunication Revenue: | |||
Series A, 4.0%, 10/15/2036 | 1,565,000 | 1,387,294 | |
Series A, 4.0%, 10/15/2041 | 600,000 | 493,787 | |
Series 2019, 4.0%, 10/15/2042 | 785,000 | 636,863 | |
Utah, State Charter School Finance Authority, St. George Campus Project, Series A, 144A, 5.0%, 6/15/2052 | 1,130,000 | 976,864 | |
Utah, State Charter School Financing Authority Revenue, Freedom Academy Foundation Project, 144A, 5.375%, 6/15/2048 | 6,490,000 | 5,999,222 | |
9,494,030 | |||
Vermont 0.4% | |||
Vermont, State Educational & Health Buildings Financing Agency Revenue, St Michael’s College Inc., 144A, 5.5%, 10/1/2043 | 2,000,000 | 1,954,324 | |
Virginia 3.3% | |||
Prince William County, VA, Industrial Development Authority, Residential Care Facilities, Westminster at Lake Ridge: | |||
5.0%, 1/1/2037 | 1,000,000 | 866,799 | |
5.0%, 1/1/2046 | 1,530,000 | 1,220,345 | |
Roanoke County, VA, Economic Development Authority, RSDL Care Facilities Revenue, Richfield Living: | |||
Series 2020, 5.0%, 9/1/2050* (d) | 1,740,000 | 1,086,665 | |
Series A, 5.375%, 9/1/2054* (d) | 1,500,000 | 957,874 | |
Virginia, Marquis Community Development Authority Revenue: | |||
Series C, 9/1/2041* | 11,070,000 | 27,675 | |
Series B, 5.625%, 9/1/2041 (d) (f) | 7,416,000 | 2,224,800 | |
144A, 7.5%, 9/1/2045 (d) (f) | 2,284,000 | 685,200 | |
Virginia, Peninsula Town Center, Community Development Authority Revenue, Special Obligation: | |||
144A, 5.0%, 9/1/2037 | 1,400,000 | 1,365,081 | |
144A, 5.0%, 9/1/2045 | 4,650,000 | 4,308,336 | |
Virginia, Small Business Financing Authority Revenue, 95 Express Lanes LLC Project, AMT, 4.0%, 1/1/2048 | 1,205,000 | 1,041,558 |
DWS Strategic High Yield Tax-Free Fund | | | 29 |
Principal Amount ($) | Value ($) | ||
Virginia, Small Business Financing Authority Revenue, Elizabeth River Crossings OpCo LLC, AMT, 4.0%, 1/1/2038 | 1,000,000 | 934,798 | |
Virginia, Small Business Financing Authority, Elizabeth River Crossings OPCO LLC Project, AMT, 4.0%, 1/1/2039 | 1,500,000 | 1,388,620 | |
Virginia, Small Business Financing Authority, Private Activity Revenue, Transform 66 P3 Project, AMT, 5.0%, 12/31/2049 | 870,000 | 865,656 | |
16,973,407 | |||
Washington 3.0% | |||
Washington, State Convention Center Public Facilities District: | |||
Series B, 3.0%, 7/1/2043 | 4,710,000 | 3,544,390 | |
Series B, 3.0%, 7/1/2048 | 4,120,000 | 2,902,803 | |
Series B, 3.0%, 7/1/2058 | 2,080,000 | 1,350,425 | |
Washington, State Higher Educational Facilities Authority, Seattle University Project, 4.0%, 5/1/2050 | 1,020,000 | 919,081 | |
Washington, State Housing Finance Commission, Non-Profit Housing Revenue, Rockwood Retirement Communities Project, Series A, 144A, Prerefunded, 7.375%, 1/1/2044 | 4,000,000 | 4,083,903 | |
Washington, State Housing Finance Commission, The Hearthstone Project: | |||
Series A, 144A, 5.0%, 7/1/2038 | 775,000 | 623,924 | |
Series A, 144A, 5.0%, 7/1/2048 | 1,735,000 | 1,256,970 | |
Series A, 144A, 5.0%, 7/1/2053 | 1,125,000 | 791,882 | |
15,473,378 | |||
Wisconsin 6.4% | |||
Wisconsin, Health Educational Facilities Authority, Covenant Communities, Inc. Project: | |||
Series A-1, 5.0%, 7/1/2043 | 4,150,000 | 3,818,983 | |
Series B, 5.0%, 7/1/2048 | 1,910,000 | 1,457,678 | |
Series B, 5.0%, 7/1/2053 | 2,875,000 | 2,125,944 | |
Wisconsin, Public Finance Authority Educational Facility Revenue, Noorba College of Osteopathic Media Project, Series B, 144A, 6.5%, 6/1/2045 | 6,000,000 | 4,887,900 | |
Wisconsin, Public Finance Authority, Education Revenue, Mountain Island Charter School Ltd.: | |||
5.0%, 7/1/2047 | 2,000,000 | 1,948,456 | |
5.0%, 7/1/2052 | 910,000 | 872,822 | |
Wisconsin, Public Finance Authority, Education Revenue, North Carolina Leadership Academy, Series A, 144A, 5.0%, 6/15/2049 | 520,000 | 459,376 |
30 | | | DWS Strategic High Yield Tax-Free Fund |
Principal Amount ($) | Value ($) | ||
Wisconsin, Public Finance Authority, Green Bond, Fargo Moorhead, AMT, 4.0%, 3/31/2056 | 3,205,000 | 2,498,497 | |
Wisconsin, Public Finance Authority, Hospital Revenue, Carson Valley Medical Center, Series A, 4.0%, 12/1/2051 | 1,290,000 | 987,259 | |
Wisconsin, Public Finance Authority, Pollution Control Revenue, Duke Energy Progress Project, Series A, 3.7% (a), 10/1/2046 | 2,700,000 | 2,706,720 | |
Wisconsin, Public Finance Authority, Roseman University of Health Sciences Project: | |||
144A, 4.0%, 4/1/2042 | 250,000 | 206,091 | |
144A, Prerefunded, 4.0%, 4/1/2042 | 5,000 | 5,470 | |
144A, 4.0%, 4/1/2052 | 440,000 | 333,692 | |
144A, Prerefunded, 4.0%, 4/1/2052 | 15,000 | 16,411 | |
Wisconsin, Public Finance Authority, Senior Living Community First Mortgage Revenue, Cedars Obligated Group: | |||
144A, 5.5%, 5/1/2039 | 635,000 | 536,328 | |
144A, 5.75%, 5/1/2054 | 3,570,000 | 2,876,041 | |
Wisconsin, Public Finance Authority, Wisconsin Hotel Revenue, Senior Lien Grand Hyatt San Antonio Hotel, Series B, 144A, 6.0%, 2/1/2062 | 5,000,000 | 4,992,904 | |
Wisconsin, State Health & Educational Facilities Authority Revenue, Froedtert Health Inc., Obligated Group, Series A, 4.0%, 4/1/2039 | 1,135,000 | 1,090,320 | |
Wisconsin, State Health & Educational Facilities Authority Revenue, Marshfield Clinic Health System, Inc., Series A, 4.0% (c), 6/1/2023, LOC: Barclays Bank PLC | 1,500,000 | 1,500,000 | |
33,320,892 | |||
Guam 0.5% | |||
Guam, Antonio B. Won Pat International Airport Authority: | |||
Series C, AMT, 6.25%, 10/1/2034 | 300,000 | 302,325 | |
Series C, AMT, Prerefunded, 6.25%, 10/1/2034 | 200,000 | 201,550 | |
Guam, Government Waterworks Authority, Water & Wastewater System Revenue, Series A, 5.0%, 1/1/2050 | 655,000 | 657,832 | |
Guam, International Airport Authority Revenue: | |||
Series C, AMT, 6.375%, 10/1/2043 | 775,000 | 781,322 | |
Series C, AMT, Prerefunded, 6.375%, 10/1/2043 | 835,000 | 841,811 | |
2,784,840 | |||
Puerto Rico 4.6% | |||
Puerto Rico, Commonwealth Aqueduct and Sewer Authority, Series A, 144A, 4.0%, 7/1/2042 | 5,000,000 | 4,268,411 | |
Puerto Rico, General Obligation: | |||
Series A, Zero Coupon, 7/1/2024 | 85,592 | 81,599 | |
Series A, Zero Coupon, 7/1/2033 | 3,602,431 | 2,116,336 |
DWS Strategic High Yield Tax-Free Fund | | | 31 |
Principal Amount ($) | Value ($) | ||
Series A1, 4.0%, 7/1/2033 | 1,255,987 | 1,155,563 | |
Series A1, 4.0%, 7/1/2035 | 230,098 | 206,124 | |
Series A1, 4.0%, 7/1/2037 | 2,007,160 | 1,746,850 | |
Series A1, 4.0%, 7/1/2041 | 2,098,773 | 1,757,920 | |
Series A1, 5.25%, 7/1/2023 | 142,945 | 143,094 | |
Series A1, 5.375%, 7/1/2025 | 285,097 | 291,295 | |
Series A1, 5.625%, 7/1/2027 | 282,516 | 295,625 | |
Series A1, 5.75%, 7/1/2031 | 269,953 | 291,263 | |
Puerto Rico, Sales Tax Financing Corp., Sales Tax Revenue: | |||
Series A-1, 4.75%, 7/1/2053 | 6,800,000 | 6,305,365 | |
Series A-1, 5.0%, 7/1/2058 | 2,000,000 | 1,915,895 | |
Puerto Rico, The Childrens Trust Fund, Tobacco Settlement Revenue, Series A, Zero Coupon, 5/15/2057 | 50,000,000 | 3,373,935 | |
23,949,275 | |||
Other 0.5% | |||
Freddie Mac Multi-Family ML Certificates, “A-CA” , Series 2021-ML10, 2.046%, 6/25/2038 | 3,360,683 | 2,603,183 | |
Total Municipal Investments (Cost $557,024,119) | 504,938,912 | ||
Corporate Bonds 0.4% | |||
Consumer Discretionary | |||
Grand Canyon University, 5.125%, 10/1/2028 (Cost $2,165,000) | 2,165,000 | 1,960,386 | |
Government & Agency Obligations 0.2% | |||
U.S. Treasury Obligations | |||
U.S. Treasury Bills, 4.719% (g), 10/5/2023 (h) (Cost $983,483) | 1,000,000 | 981,800 |
Shares | Value ($) | ||
Closed-End Investment Companies 0.4% | |||
Nuveen Quality Municipal Income Fund (Cost $2,515,604) | 172,000 | 1,914,360 | |
Open-End Investment Companies 0.0% | |||
BlackRock Liquidity Funds MuniCash Portfolio, Institutional Shares, 3.26% (i) (Cost $147,056) | 147,056 | 147,056 |
32 | | | DWS Strategic High Yield Tax-Free Fund |
% of Net Assets | Value ($) | ||
Total Investment Portfolio (Cost $562,835,262) | 98.1 | 509,942,514 | |
Other Assets and Liabilities, Net | 1.9 | 10,106,708 | |
Net Assets | 100.0 | 520,049,222 |
* | Non-income producing security. |
(a) | Variable or floating rate security. These securities are shown at their current rate as of May 31, 2023. For securities based on a published reference rate and spread, the reference rate and spread are indicated within the description above. Certain variable rate securities are not based on a published reference rate and spread but adjust periodically based on current market conditions, prepayment of underlying positions and/or other variables. Securities with a floor or ceiling feature are disclosed at the inherent rate, where applicable. |
(b) | Security is a “step-up” bond where the coupon increases or steps-up at a predetermined date. The range of rates shown is the current coupon rate through the final coupon rate, date shown is the final maturity date. |
(c) | Variable rate demand notes and variable rate demand preferred shares are securities whose interest rates are reset periodically (usually daily mode or weekly mode) by remarketing agents based on current market levels, and are not directly set as a fixed spread to a reference rate. These securities may be redeemed at par by the holder through a put or tender feature, and are shown at their current rates as of May 31, 2023. Date shown reflects the earlier of demand date or stated maturity date. |
(d) | Defaulted security or security for which income has been deemed uncollectible. |
(e) | When-issued or delayed delivery securities included. |
(f) | Security currently paying partial interest. The rate shown represents 50% of the original coupon rate. |
(g) | Annualized yield at time of purchase; not a coupon rate. |
(h) | At May 31, 2023, this security has been pledged, in whole or in part, to cover initial margin requirements for open futures contracts. |
(i) | Current yield; not a coupon rate. |
144A: 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. |
AGMC: Assured Guaranty Municipal Corp. |
AMBAC: Ambac Financial Group, Inc. |
AMT: Subject to alternative minimum tax. |
BAM: Build America Mutual |
CBOT: Chicago Board of Trade |
GTY: Guaranty Agreement |
INS: Insured |
LIQ: Liquidity Facility |
LOC: Letter of Credit |
MUNIPSA: SIFMA Municipal Swap Index Yield |
Prerefunded: Bonds which are prerefunded are collateralized usually by U.S. Treasury securities which are held in escrow and used to pay principal and interest on tax-exempt issues and to retire the bonds in full at the earliest refunding date. |
DWS Strategic High Yield Tax-Free Fund | | | 33 |
SIFMA: Securities Industry and Financial Markets Association |
SPA: Standby Bond Purchase Agreement |
Futures | Currency | Expiration Date | Contracts | Notional Amount ($) | Notional Value ($) | Unrealized Depreciation ($) |
CBOT U.S. Long Bond | USD | 9/20/2023 | 200 | 25,456,354 | 25,668,750 | (212,396) |
USD | United States Dollar |
Assets | Level 1 | Level 2 | Level 3 | Total |
Municipal Investments (a) | $— | $504,938,912 | $— | $504,938,912 |
Corporate Bonds | — | 1,960,386 | — | 1,960,386 |
Government & Agency Obligations | — | 981,800 | — | 981,800 |
Closed-End Investment Companies | 1,914,360 | — | — | 1,914,360 |
Open-End Investment Companies | 147,056 | — | — | 147,056 |
Total | $2,061,416 | $507,881,098 | $— | $509,942,514 |
Liabilities | Level 1 | Level 2 | Level 3 | Total |
Derivatives (b) | ||||
Futures Contracts | $(212,396 ) | $— | $— | $(212,396 ) |
Total | $(212,396 ) | $— | $— | $(212,396 ) |
(a) | See Investment Portfolio for additional detailed categorizations. |
(b) | Derivatives include unrealized appreciation (depreciation) on open futures contracts. |
34 | | | DWS Strategic High Yield Tax-Free Fund |
Assets | |
Investment in securities, at value (cost $562,835,262) | $509,942,514 |
Receivable for investments sold | 6,927,782 |
Receivable for Fund shares sold | 1,727,487 |
Dividends receivable | 6,536 |
Interest receivable | 7,297,141 |
Other assets | 34,583 |
Total assets | 525,936,043 |
Liabilities | |
Payable for investments purchased | 116,375 |
Payable for investments purchased — when-issued/delayed delivery securities | 3,713,158 |
Payable for Fund shares redeemed | 934,167 |
Payable for variation margin on futures contracts | 162,451 |
Distributions payable | 436,652 |
Accrued management fee | 205,993 |
Accrued Trustees' fees | 8,643 |
Other accrued expenses and payables | 309,382 |
Total liabilities | 5,886,821 |
Net assets, at value | $520,049,222 |
Net Assets Consist of | |
Distributable earnings (loss) | (164,054,928 ) |
Paid-in capital | 684,104,150 |
Net assets, at value | $520,049,222 |
DWS Strategic High Yield Tax-Free Fund | | | 35 |
Net Asset Value | |
Class A | |
Net Asset Value and redemption price per share ($136,671,231 ÷ 13,350,189 outstanding shares of beneficial interest, $.01 par value, unlimited shares authorized) | $10.24 |
Maximum offering price per share (100 ÷ 97.25 of $10.24) | $10.53 |
Class C | |
Net Asset Value, offering and redemption price (subject to contingent deferred sales charge) per share ($6,311,162 ÷ 615,827 outstanding shares of beneficial interest, $.01 par value, unlimited shares authorized) | $10.25 |
Class S | |
Net Asset Value, offering and redemption price per share ($267,934,358 ÷ 26,149,256 outstanding shares of beneficial interest, $.01 par value, unlimited shares authorized) | $10.25 |
Institutional Class | |
Net Asset Value, offering and redemption price per share ($109,132,471 ÷ 10,647,047 outstanding shares of beneficial interest, $.01 par value, unlimited shares authorized) | $10.25 |
36 | | | DWS Strategic High Yield Tax-Free Fund |
Investment Income | |
Income: | |
Interest | $28,059,080 |
Dividends | 95,547 |
Total income | 28,154,627 |
Expenses: | |
Management fee | 2,476,735 |
Administration fee | 562,022 |
Services to shareholders | 588,951 |
Distribution and service fees | 455,261 |
Custodian fee | 10,532 |
Professional fees | 97,480 |
Reports to shareholders | 53,021 |
Registration fees | 81,723 |
Trustees' fees and expenses | 22,196 |
Interest expense and fees on floating rate notes issued | 210,508 |
Other | 46,529 |
Total expenses before expense reductions | 4,604,958 |
Expense reductions | (454,292 ) |
Total expenses after expense reductions | 4,150,666 |
Net investment income | 24,003,961 |
Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) from: | |
Investments | (27,247,057 ) |
Futures | 3,346,033 |
(23,901,024 ) | |
Change in net unrealized appreciation (depreciation) on: | |
Investments | (26,788,162 ) |
Futures | (371,910 ) |
(27,160,072 ) | |
Net gain (loss) | (51,061,096 ) |
Net increase (decrease) in net assets resulting from operations | $(27,057,135 ) |
DWS Strategic High Yield Tax-Free Fund | | | 37 |
Years Ended May 31, | ||
Increase (Decrease) in Net Assets | 2023 | 2022 |
Operations: | ||
Net investment income | $24,003,961 | $32,854,851 |
Net realized gain (loss) | (23,901,024 ) | 4,394,507 |
Change in net unrealized appreciation (depreciation) | (27,160,072 ) | (126,532,794 ) |
Net increase (decrease) in net assets resulting from operations | (27,057,135 ) | (89,283,436 ) |
Distributions to shareholders: | ||
Class A | (6,129,000 ) | (6,638,421 ) |
Class C | (241,732 ) | (306,224 ) |
Class S | (12,803,544 ) | (18,128,952 ) |
Institutional Class | (4,874,306 ) | (7,462,583 ) |
Total distributions | (24,048,582 ) | (32,536,180 ) |
Fund share transactions: | ||
Proceeds from shares sold | 120,747,071 | 235,451,400 |
Reinvestment of distributions | 19,312,081 | 27,182,504 |
Payments for shares redeemed | (317,686,045 ) | (432,060,829 ) |
Net increase (decrease) in net assets from Fund share transactions | (177,626,893 ) | (169,426,925 ) |
Increase (decrease) in net assets | (228,732,610 ) | (291,246,541 ) |
Net assets at beginning of period | 748,781,832 | 1,040,028,373 |
Net assets at end of period | $520,049,222 | $748,781,832 |
38 | | | DWS Strategic High Yield Tax-Free Fund |
DWS Strategic High Yield Tax-Free Fund — Class A | |||||
Years Ended May 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $11.02 | $12.59 | $11.37 | $12.13 | $12.08 |
Income (loss) from investment operations: | |||||
Net investment income | .41 | .39 | .42 | .45 | .46 |
Net realized and unrealized gain (loss) | (.78 ) | (1.57 ) | 1.23 | (.77 ) | .08 |
Total from investment operations | (.37 ) | (1.18 ) | 1.65 | (.32 ) | .54 |
Less distributions from: | |||||
Net investment income | (.40 ) | (.39 ) | (.42 ) | (.44 ) | (.46 ) |
Net realized gains | (.01 ) | (.00 )* | (.01 ) | (.00 )* | (.03 ) |
Total distributions | (.41 ) | (.39 ) | (.43 ) | (.44 ) | (.49 ) |
Net asset value, end of period | $10.24 | $11.02 | $12.59 | $11.37 | $12.13 |
Total Return (%)a,b | (3.27 ) | (9.55 ) | 14.56 | (2.74 ) | 4.62 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 137 | 182 | 216 | 181 | 195 |
Ratio of expenses before expense reductions (including interest expense) (%)c | .95 | .90 | .90 | .95 | .98 |
Ratio of expenses after expense reductions (including interest expense) (%)c | .89 | .87 | .87 | .91 | .91 |
Ratio of expenses after expense reductions (excluding interest expense) (%) | .85 | .84 | .84 | .85 | .86 |
Ratio of net investment income (%) | 3.97 | 3.21 | 3.51 | 3.72 | 3.87 |
Portfolio turnover rate (%) | 70 | 69 | 59 | 52 | 47 |
a | Total return does not reflect the effect of any sales charges. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities. Interest income from such transactions is included in income from investment operations. |
* | Amount is less than $.005. |
DWS Strategic High Yield Tax-Free Fund | | | 39 |
DWS Strategic High Yield Tax-Free Fund — Class C | |||||
Years Ended May 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $11.03 | $12.60 | $11.38 | $12.13 | $12.09 |
Income (loss) from investment operations: | |||||
Net investment income | .34 | .30 | .33 | .36 | .37 |
Net realized and unrealized gain (loss) | (.79 ) | (1.57 ) | 1.22 | (.76 ) | .07 |
Total from investment operations | (.45 ) | (1.27 ) | 1.55 | (.40 ) | .44 |
Less distributions from: | |||||
Net investment income | (.32 ) | (.30 ) | (.32 ) | (.35 ) | (.37 ) |
Net realized gains | (.01 ) | (.00 )* | (.01 ) | (.00 )* | (.03 ) |
Total distributions | (.33 ) | (.30 ) | (.33 ) | (.35 ) | (.40 ) |
Net asset value, end of period | $10.25 | $11.03 | $12.60 | $11.38 | $12.13 |
Total Return (%)a,b | (4.00 ) | (10.22 ) | 13.68 | (3.39 ) | 3.75 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 6 | 9 | 14 | 33 | 52 |
Ratio of expenses before expense reductions (including interest expense) (%)c | 1.71 | 1.66 | 1.66 | 1.71 | 1.75 |
Ratio of expenses after expense reductions (including interest expense) (%)c | 1.64 | 1.62 | 1.62 | 1.66 | 1.66 |
Ratio of expenses after expense reductions (excluding interest expense) (%) | 1.60 | 1.59 | 1.59 | 1.60 | 1.61 |
Ratio of net investment income (%) | 3.22 | 2.46 | 2.77 | 2.97 | 3.10 |
Portfolio turnover rate (%) | 70 | 69 | 59 | 52 | 47 |
a | Total return does not reflect the effect of any sales charges. |
b | Total return would have been lower had certain expenses not been reduced. |
c | Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities. Interest income from such transactions is included in income from investment operations. |
* | Amount is less than $.005. |
40 | | | DWS Strategic High Yield Tax-Free Fund |
DWS Strategic High Yield Tax-Free Fund — Class S | |||||
Years Ended May 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $11.03 | $12.60 | $11.38 | $12.14 | $12.09 |
Income (loss) from investment operations: | |||||
Net investment income | .44 | .42 | .45 | .47 | .49 |
Net realized and unrealized gain (loss) | (.78 ) | (1.57 ) | 1.23 | (.76 ) | .08 |
Total from investment operations | (.34 ) | (1.15 ) | 1.68 | (.29 ) | .57 |
Less distributions from: | |||||
Net investment income | (.43 ) | (.42 ) | (.45 ) | (.47 ) | (.49 ) |
Net realized gains | (.01 ) | (.00 )* | (.01 ) | (.00 )* | (.03 ) |
Total distributions | (.44 ) | (.42 ) | (.46 ) | (.47 ) | (.52 ) |
Net asset value, end of period | $10.25 | $11.03 | $12.60 | $11.38 | $12.14 |
Total Return (%)a | (3.01 ) | (9.31 ) | 14.83 | (2.49 ) | 4.88 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 268 | 405 | 567 | 576 | 661 |
Ratio of expenses before expense reductions (including interest expense) (%)b | .74 | .74 | .73 | .80 | .84 |
Ratio of expenses after expense reductions (including interest expense) (%)b | .64 | .62 | .62 | .66 | .66 |
Ratio of expenses after expense reductions (excluding interest expense) (%) | .60 | .59 | .59 | .60 | .61 |
Ratio of net investment income (%) | 4.22 | 3.46 | 3.76 | 3.97 | 4.07 |
Portfolio turnover rate (%) | 70 | 69 | 59 | 52 | 47 |
a | Total return would have been lower had certain expenses not been reduced. |
b | Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities. Interest income from such transactions is included in income from investment operations. |
* | Amount is less than $.005. |
DWS Strategic High Yield Tax-Free Fund | | | 41 |
DWS Strategic High Yield Tax-Free Fund — Institutional Class | |||||
Years Ended May 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | |
Selected Per Share Data | |||||
Net asset value, beginning of period | $11.03 | $12.60 | $11.39 | $12.14 | $12.10 |
Income (loss) from investment operations: | |||||
Net investment income | .44 | .43 | .45 | .49 | .49 |
Net realized and unrealized gain (loss) | (.78 ) | (1.58 ) | 1.22 | (.77 ) | .07 |
Total from investment operations | (.34 ) | (1.15 ) | 1.67 | (.28 ) | .56 |
Less distributions from: | |||||
Net investment income | (.43 ) | (.42 ) | (.45 ) | (.47 ) | (.49 ) |
Net realized gains | (.01 ) | (.00 )* | (.01 ) | (.00 )* | (.03 ) |
Total distributions | (.44 ) | (.42 ) | (.46 ) | (.47 ) | (.52 ) |
Net asset value, end of period | $10.25 | $11.03 | $12.60 | $11.39 | $12.14 |
Total Return (%)a | (3.01 ) | (9.38 ) | 14.82 | (2.41 ) | 4.80 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 109 | 153 | 242 | 207 | 181 |
Ratio of expenses before expense reductions (including interest expense) (%)b | .69 | .68 | .68 | .74 | .70 |
Ratio of expenses after expense reductions (including interest expense) (%)b | .64 | .62 | .62 | .66 | .66 |
Ratio of expenses after expense reductions (excluding interest expense) (%) | .60 | .59 | .59 | .60 | .61 |
Ratio of net investment income (%) | 4.23 | 3.46 | 3.76 | 3.97 | 4.13 |
Portfolio turnover rate (%) | 70 | 69 | 59 | 52 | 47 |
a | Total return would have been lower had certain expenses not been reduced. |
b | Interest expense represents interest and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities. Interest income from such transactions is included in income from investment operations. |
* | Amount is less than $.005. |
42 | | | DWS Strategic High Yield Tax-Free Fund |
DWS Strategic High Yield Tax-Free Fund | | | 43 |
44 | | | DWS Strategic High Yield Tax-Free Fund |
DWS Strategic High Yield Tax-Free Fund | | | 45 |
46 | | | DWS Strategic High Yield Tax-Free Fund |
Undistributed tax-exempt income | $14,614,959 |
Undistributed ordinary income* | $123,405 |
Capital loss carryforwards | $(126,662,000 ) |
Net unrealized appreciation (depreciation) on investments | $(50,151,913 ) |
DWS Strategic High Yield Tax-Free Fund | | | 47 |
Years Ended May 31, | ||
2023 | 2022 | |
Distributions from tax-exempt income | $22,075,351 | $30,603,701 |
Distributions from ordinary income* | $1,973,231 | $1,932,479 |
* | For tax purposes, short-term capital gain distributions are considered ordinary income distributions. |
48 | | | DWS Strategic High Yield Tax-Free Fund |
Liability Derivative | Futures Contracts |
Interest Rate Contracts (a) | $(212,396 ) |
The above derivative is located in the following Statement of Assets and Liabilities account: |
(a) | Includes cumulative depreciation of futures contracts as disclosed in the Investment Portfolio. Unsettled variation margin is disclosed separately within the Statement of Assets and Liabilities. |
Realized Gain (Loss) | Futures Contracts |
Interest Rate Contracts (a) | $3,346,033 |
The above derivative is located in the following Statement of Operations account: |
(a) | Net realized gain (loss) from futures contracts |
DWS Strategic High Yield Tax-Free Fund | | | 49 |
Change in Net Unrealized Appreciation (Depreciation) | Futures Contracts |
Interest Rate Contracts (a) | $(371,910 ) |
The above derivative is located in the following Statement of Operations account: |
(a) | Change in net unrealized appreciation (depreciation) on futures contracts |
First $300 million of the Fund’s average daily net assets | .455% |
Next $200 million of such net assets | .405% |
Next $500 million of such net assets | .380% |
Next $500 million of such net assets | .360% |
Next $500 million of such net assets | .350% |
Over $2 billion of such net assets | .340% |
50 | | | DWS Strategic High Yield Tax-Free Fund |
Class A | .85% |
Class C | 1.60% |
Class S | .60% |
Institutional Class | .60% |
Class A | $93,380 |
Class C | 5,647 |
Class S | 296,747 |
Institutional Class | 58,518 |
$454,292 |
Services to Shareholders | Total Aggregated | Unpaid at May 31, 2023 |
Class A | $6,895 | $1,152 |
Class C | 360 | 60 |
Class S | 57,757 | 9,641 |
Institutional Class | 849 | 145 |
$65,861 | $10,998 |
DWS Strategic High Yield Tax-Free Fund | | | 51 |
Sub-Recordkeeping | Total Aggregated |
Class A | $118,545 |
Class C | 6,716 |
Class S | 296,468 |
Institutional Class | 79,308 |
$501,037 |
Distribution Fee | Total Aggregated | Unpaid at May 31, 2023 |
Class C | $56,046 | $4,042 |
Service Fee | Total Aggregated | Unpaid at May 31, 2023 | Annual Rate |
Class A | $380,569 | $57,796 | .25% |
Class C | 18,646 | 2,670 | .25% |
$399,215 | $60,466 |
52 | | | DWS Strategic High Yield Tax-Free Fund |
DWS Strategic High Yield Tax-Free Fund | | | 53 |
Year Ended May 31, 2023 | Year Ended May 31, 2022 | |||
Shares | Dollars | Shares | Dollars | |
Shares sold | ||||
Class A | 2,260,857 | $23,374,504 | 2,137,131 | $25,344,932 |
Class C | 82,107 | 829,563 | 90,268 | 1,124,262 |
Class S | 1,896,618 | 19,549,640 | 10,633,538 | 126,067,225 |
Institutional Class | 7,500,594 | 76,993,364 | 6,799,561 | 82,914,981 |
$120,747,071 | $235,451,400 | |||
Shares issued to shareholders in reinvestment of distributions | ||||
Class A | 524,515 | $5,389,721 | 481,126 | $5,835,839 |
Class C | 21,636 | 222,505 | 22,113 | 269,098 |
Class S | 1,042,827 | 10,735,471 | 1,315,480 | 16,004,272 |
Institutional Class | 287,992 | 2,964,384 | 414,987 | 5,073,295 |
$19,312,081 | $27,182,504 | |||
Shares redeemed | ||||
Class A | (5,930,606 ) | $(61,044,993 ) | (3,293,737 ) | $(39,069,026 ) |
Class C | (343,820 ) | (3,567,125 ) | (404,688 ) | (4,860,283 ) |
Class S | (13,496,445 ) | (139,333,290 ) | (20,259,024 ) | (237,224,768 ) |
Institutional Class | (11,001,548 ) | (113,740,637 ) | (12,588,738 ) | (150,906,752 ) |
$(317,686,045 ) | $(432,060,829 ) |
54 | | | DWS Strategic High Yield Tax-Free Fund |
Year Ended May 31, 2023 | Year Ended May 31, 2022 | |||
Shares | Dollars | Shares | Dollars | |
Net increase (decrease) | ||||
Class A | (3,145,234 ) | $(32,280,768 ) | (675,480 ) | $(7,888,255 ) |
Class C | (240,077 ) | (2,515,057 ) | (292,307 ) | (3,466,923 ) |
Class S | (10,557,000 ) | (109,048,179 ) | (8,310,006 ) | (95,153,271 ) |
Institutional Class | (3,212,962 ) | (33,782,889 ) | (5,374,190 ) | (62,918,476 ) |
$(177,626,893 ) | $(169,426,925 ) |
DWS Strategic High Yield Tax-Free Fund | | | 55 |
56 | | | DWS Strategic High Yield Tax-Free Fund |
DWS Strategic High Yield Tax-Free Fund | | | 57 |
58 | | | DWS Strategic High Yield Tax-Free Fund |
DWS Strategic High Yield Tax-Free Fund | | | 59 |
Actual Fund Return | Class A | Class C | Class S | Institutional Class |
Beginning Account Value 12/1/22 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
Ending Account Value 5/31/23 | $1,023.20 | $1,019.30 | $1,024.50 | $1,024.50 |
Expenses Paid per $1,000* | $4.39 | $8.16 | $3.13 | $3.13 |
Hypothetical 5% Fund Return | Class A | Class C | Class S | Institutional Class |
Beginning Account Value 12/1/22 | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
Ending Account Value 5/31/23 | $1,020.59 | $1,016.85 | $1,021.84 | $1,021.84 |
Expenses Paid per $1,000* | $4.38 | $8.15 | $3.13 | $3.13 |
* | Expenses are equal to the Fund’s annualized expense ratio for each share class, multiplied by the average account value over the period, multiplied by 182 (the number of days in the most recent six-month period), then divided by 365. |
Annualized Expense Ratios | Class A | Class C | Class S | Institutional Class |
DWS Strategic High Yield Tax-Free Fund† | .87% | 1.62% | .62% | .62% |
† | Includes interest expense and fees on short-term floating rate notes issued in conjunction with inverse floating rate securities of 0.02% for each class. |
60 | | | DWS Strategic High Yield Tax-Free Fund |
DWS Strategic High Yield Tax-Free Fund | | | 61 |
62 | | | DWS Strategic High Yield Tax-Free Fund |
DWS Strategic High Yield Tax-Free Fund | | | 63 |
64 | | | DWS Strategic High Yield Tax-Free Fund |
DWS Strategic High Yield Tax-Free Fund | | | 65 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Keith R. Fox, CFA (1954) Chairperson since 2017, and Board Member since 1996 | Managing General Partner, Exeter Capital Partners (a series of private investment funds) (since 1986). Former Chairman, National Association of Small Business Investment Companies; Former Directorships: ICI Mutual Insurance Company; BoxTop Media Inc. (advertising); Sun Capital Advisers Trust (mutual funds); Progressive International Corporation (kitchen goods designer and distributor) | 69 | — |
66 | | | DWS Strategic High Yield Tax-Free Fund |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
John W. Ballantine (1946) Board Member since 1999 | Retired; formerly, Executive Vice President and Chief Risk Management Officer, First Chicago NBD Corporation/The First National Bank of Chicago (1996–1998); Executive Vice President and Head of International Banking (1995–1996); Not-for-Profit Directorships: Window to the World Communications (public media); Life Director of Harris Theater for Music and Dance (Chicago); Life Director of Hubbard Street Dance Chicago; Former Directorships: Director and Chairman of the Board, Healthways, Inc.2 (population wellbeing and wellness services) (2003–2014); Stockwell Capital Investments PLC (private equity); Enron Corporation; FNB Corporation; Tokheim Corporation; First Oak Brook Bancshares, Inc.; Oak Brook Bank; Portland General Electric2 (utility company (2003–2021); and Prisma Energy International; Former Not-for-Profit Directorships: Public Radio International; Palm Beach Civic Assn. | 69 | — |
Dawn-Marie Driscoll (1946) Board Member since 1987 | Emeritus Advisory Board and former Executive Fellow, Hoffman Center for Business Ethics, Bentley University; formerly: Partner, Palmer & Dodge (law firm) (1988–1990); Vice President of Corporate Affairs and General Counsel, Filene’s (retail) (1978–1988); Directorships: Trustee and former Chairman of the Board, Southwest Florida Community Foundation (charitable organization); Former Directorships: ICI Mutual Insurance Company (2007–2015); Sun Capital Advisers Trust (mutual funds) (2007–2012), Investment Company Institute (audit, executive, nominating committees) and Independent Directors Council (governance, executive committees) | 69 | — |
DWS Strategic High Yield Tax-Free Fund | | | 67 |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Richard J. Herring (1946) Board Member since 1990 | Jacob Safra Professor of International Banking and Professor of Finance, The Wharton School, University of Pennsylvania (since July 1972); formerly: Director, The Wharton Financial Institutions Center (1994–2020); Vice Dean and Director, Wharton Undergraduate Division (1995–2000) and Director, The Lauder Institute of International Management Studies (2000–2006); Member FDIC Systemic Risk Advisory Committee since 2011, member Systemic Risk Council since 2012 and member of the Advisory Board at the Yale Program on Financial Stability since 2013; Former Directorships: Co-Chair of the Shadow Financial Regulatory Committee (2003–2015), Executive Director of The Financial Economists Roundtable (2008–2015), Director of The Thai Capital Fund (2007–2013), Director of The Aberdeen Singapore Fund (2007–2018), Director, The Aberdeen Japan Fund (2007-2021) and Nonexecutive Director of Barclays Bank DE (2010–2018) | 69 | — |
Chad D. Perry (1972) Board Member or Advisory Board Member since 20213 | Executive Vice President, and General Counsel, RLJ Lodging Trust.2 (Since 2023); formerly: Executive Vice President, General Counsel and Secretary, Tanger Factory Outlet Centers, Inc.2 (2011-2023); Executive Vice President and Deputy General Counsel, LPL Financial Holdings Inc.2 (2006–2011); Senior Corporate Counsel, EMC Corporation (2005–2006); Associate, Ropes & Gray LLP (1997–2005) | 214 | Director - Great Elm Capital Corp. (business development company) (since 2022) |
Rebecca W. Rimel (1951) Board Member since 1995 | Formerly: Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983–2004); Board Member, Investor Education (charitable organization) (2004–2005); Former Directorships: Trustee, Executive Committee, Philadelphia Chamber of Commerce (2001–2007); Director, Viasys Health Care2 (January 2007–June 2007); Trustee, Thomas Jefferson Foundation (charitable organization) (1994–2012); President, Chief Executive Officer and Director (1994–2020) and Senior Advisor (2020-2021), The Pew Charitable Trusts (charitable organization); Director, BioTelemetry Inc.2 (acquired by Royal Philips in 2021) (healthcare) (2009–2021); Director, Becton Dickinson and Company2 (medical technology company) (2012-2022) | 69 | Director, The Bridgespan Group (nonprofit organization) (since October 2020) |
68 | | | DWS Strategic High Yield Tax-Free Fund |
Name, Year of Birth, Position with the Trust/ Corporation and Length of Time Served1 | Business Experience and Directorships During the Past Five Years | Number of Funds in DWS Fund Complex Overseen | Other Directorships Held by Board Member |
Catherine Schrand (1964) Board Member since 2021 | Celia Z. Moh Professor of Accounting (since 2016) and Professor of Accounting (since 1994); Directorships: Director, the Jacobs Levy Center, The Wharton School, University of Pennsylvania (since 2023); Former positions: Vice Dean, Wharton Doctoral Programs, The Wharton School, University of Pennsylvania (2016–2019) | 69 | — |
William N. Searcy, Jr. (1946) Board Member since 1993 | Private investor since October 2003; formerly: Pension & Savings Trust Officer, Sprint Corporation2 (telecommunications) (November 1989–September 2003); Former Directorships: Trustee, Sun Capital Advisers Trust (mutual funds) (1998–2012) | 69 | — |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Hepsen Uzcan7 (1974) President and Chief Executive Officer, 2017–present | Fund Administration (Head since 2017), DWS; Secretary, DWS USA Corporation (2018–present); Assistant Secretary, DWS Distributors, Inc. (2018–present); Director and Vice President, DWS Service Company (2018–present); Assistant Secretary, DWS Investment Management Americas, Inc. (2018–present); Director and President, DB Investment Managers, Inc. (2018–present); President and Chief Executive Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2017–present); formerly: Vice President for the Deutsche funds (2016–2017); Assistant Secretary for the DWS funds (2013–2019); Assistant Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2013–2020); Directorships: Interested Director, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since June 25, 2020); ICI Mutual Insurance Company (since October 16, 2020); and Episcopalian Charities of New York (2018–present) |
John Millette8 (1962) Vice President and Secretary, 1999–present | Legal (Associate General Counsel), DWS; Chief Legal Officer, DWS Investment Management Americas, Inc. (2015–present); Director and Vice President, DWS Trust Company (2016–present); Secretary, DBX ETF Trust (2020–present); Vice President, DBX Advisors LLC (2021–present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. 2011–present); formerly: Secretary, Deutsche Investment Management Americas Inc. (2015–2017); and Assistant Secretary, DBX ETF Trust (2019–2020) |
Ciara Crawford9 (1984) Assistant Secretary, 2019–present | Fund Administration (Specialist), DWS (2015–present); formerly, Legal Assistant at Accelerated Tax Solutions |
DWS Strategic High Yield Tax-Free Fund | | | 69 |
Name, Year of Birth, Position with the Trust/Corporation and Length of Time Served6 | Business Experience and Directorships During the Past Five Years |
Diane Kenneally8 (1966) Chief Financial Officer and Treasurer, 2018–present | Fund Administration Treasurer’s Office (Co-Head since 2018), DWS; Treasurer, Chief Financial Officer and Controller, DBX ETF Trust (2019–present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present); formerly: Assistant Treasurer for the DWS funds (2007–2018) |
Paul Antosca8 (1957) Assistant Treasurer, 2007–present | Fund Administration Tax (Head), DWS; and Assistant Treasurer, DBX ETF Trust (2019–present) |
Sheila Cadogan8 (1966) Assistant Treasurer, 2017–present | Fund Administration Treasurer’s Office (Co-Head since 2018), DWS; Director and Vice President, DWS Trust Company (2018–present); Assistant Treasurer, DBX ETF Trust (2019–present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018–present) |
Scott D. Hogan8 (1970) Chief Compliance Officer, 2016–present | Anti-Financial Crime & Compliance US (Senior Team Lead), DWS; Chief Compliance Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2016–present) |
Caroline Pearson8 (1962) Chief Legal Officer, 2010–present | Legal (Senior Team Lead), DWS; Assistant Secretary, DBX ETF Trust (2020–present); Chief Legal Officer, DBX Advisors LLC (2020–present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012–present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002–2017); Secretary, Deutsche AM Service Company (2010–2017); and Chief Legal Officer, DBX Strategic Advisors LLC (2020–2021) |
Christian Rijs7 (1980) Anti-Money Laundering Compliance Officer, since 2021 | Senior Team Lead Anti-Financial Crime and Compliance, DWS; AML Officer, DWS Trust Company (since November 2, 2021); AML Officer, DBX ETF Trust (since October 21, 2021); AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since November 12, 2021); formerly: DWS UK & Ireland Head of Anti-Financial Crime and MLRO |
1 | The length of time served represents the year in which the Board Member joined the board of one or more DWS funds currently overseen by the Board. |
2 | A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. |
3 | Mr. Perry is an Advisory Board Member of Deutsche DWS Asset Allocation Trust, Deutsche DWS Equity 500 Index Portfolio, Deutsche DWS Global/International Fund, Inc., Deutsche DWS Income Trust, Deutsche DWS Institutional Funds, Deutsche DWS International Fund, Inc., Deutsche DWS Investment Trust, Deutsche DWS Investments VIT Funds, Deutsche DWS Money Market Trust, Deutsche DWS Municipal Trust, Deutsche DWS Portfolio Trust, Deutsche DWS Securities Trust, Deutsche DWS Tax Free Trust, Deutsche DWS Variable Series I and Government Cash Management Portfolio. Mr. Perry is a Board Member of each other Trust. |
4 | Mr. Perry oversees 21 funds in the DWS Fund Complex as a Board Member of various Trusts. Mr. Perry is an Advisory Board Member of various Trusts/Corporations comprised of 48 funds in the DWS Fund Complex. |
70 | | | DWS Strategic High Yield Tax-Free Fund |
5 | As a result of their respective positions held with the Advisor or its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Fund. |
6 | The length of time served represents the year in which the officer was first elected in such capacity for one or more DWS funds. |
7 | Address: 875 Third Avenue, New York, NY 10022. |
8 | Address: 100 Summer Street, Boston, MA 02110. |
9 | Address: 5201 Gate Parkway, Jacksonville, FL 32256. |
DWS Strategic High Yield Tax-Free Fund | | | 71 |
For More Information | The automated telephone system allows you to access personalized account information and obtain information on other DWS funds using either your voice or your telephone keypad. Certain account types within Classes A, C and S also have the ability to purchase, exchange or redeem shares using this system. |
For more information, contact your financial representative. You may also access our automated telephone system or speak with a Shareholder Service representative by calling: (800) 728-3337 | |
Web Site | dws.com View your account transactions and balances, trade shares, monitor your asset allocation, subscribe to fund and account updates by e-mail, and change your address, 24 hours a day. |
Obtain prospectuses and applications, news about DWS funds, insight from DWS economists and investment specialists and access to DWS fund account information. | |
Written Correspondence | DWS PO Box 219151 Kansas City, MO 64121-9151 |
Proxy Voting | The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 are available on our Web site — dws.com/en-us/resources/proxy-voting — or on the SEC’s Web site — sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at (800) 728-3337. |
Portfolio Holdings | Following the Fund’s fiscal first and third quarter-end, a complete portfolio holdings listing is posted on dws.com and is available free of charge by contacting your financial intermediary or, if you are a direct investor, by calling (800) 728-3337. In addition, the portfolio holdings listing is filed with the SEC on the Fund’s Form N-PORT and will be available on the SEC’s Web site at sec.gov. Additional portfolio holdings for the Fund are also posted on dws.com from time to time. Please see the Fund’s current prospectus for more information. |
Principal Underwriter | If you have questions, comments or complaints, contact: DWS Distributors, Inc. 222 South Riverside Plaza Chicago, IL 60606-5808 (800) 621-1148 |
72 | | | DWS Strategic High Yield Tax-Free Fund |
Investment Management | DWS Investment Management Americas, Inc. (“DIMA” or the “Advisor” ), which is part of the DWS Group GmbH & Co. KGaA (“DWS Group” ), is the investment advisor for the Fund. DIMA and its predecessors have more than 90 years of experience managing mutual funds and DIMA provides a full range of investment advisory services to both institutional and retail clients. DIMA is an indirect, wholly owned subsidiary of DWS Group. |
DWS Group is a global organization that offers a wide range of investing expertise and resources, including hundreds of portfolio managers and analysts and an office network that reaches the world’s major investment centers. This well-resourced global investment platform brings together a wide variety of experience and investment insight across industries, regions, asset classes and investing styles. |
Class A | Class C | Class S | Institutional Class | |
Nasdaq Symbol | NOTAX | NOTCX | SHYTX | NOTIX |
CUSIP Number | 25158T 103 | 25158T 301 | 25158T 400 | 25158T 509 |
Fund Number | 152 | 352 | 2008 | 512 |
DWS Strategic High Yield Tax-Free Fund | | | 73 |
(b) Not applicable | |
ITEM 2. | CODE OF ETHICS |
As of the end of the period covered by this report, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR that applies to its Principal Executive Officer and Principal Financial Officer.
There have been no amendments to, or waivers from, a provision of the code of ethics during the period covered by this report that would require disclosure under Item 2.
A copy of the code of ethics is filed as an exhibit to this Form N-CSR. | |
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
The fund’s audit committee is comprised solely of trustees who are "independent" (as such term has been defined by the Securities and Exchange Commission ("SEC") in regulations implementing Section 407 of the Sarbanes-Oxley Act (the "Regulations")). The fund’s Board of Trustees has determined that there are several "audit committee financial experts" (as such term has been defined by the Regulations) serving on the fund’s audit committee including Ms. Catherine Schrand, the chair of the fund’s audit committee. An “audit committee financial expert” is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933 and the designation or identification of a person as an “audit committee financial expert” does not impose on such person any duties, obligations or liability that are greater than the duties, obligations and liability imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. | |
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
DWS strategic high yield tax-free Fund
form n-csr disclosure re: AUDIT FEES
The following table shows the amount of fees that Ernst & Young LLP (“EY”), the Fund’s Independent Registered Public Accounting Firm, billed to the Fund during the Fund’s last two fiscal years. The Audit Committee approved in advance all audit services and non-audit services that EY provided to the Fund.
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Fund
Fiscal Year Ended May 31, | Audit Fees Billed to Fund | Audit-Related Fees Billed to Fund | Tax Fees Billed to Fund | All Other Fees Billed to Fund |
2023 | $53,136 | $0 | $7,880 | $0 |
2022 | $55,933 | $0 | $7,880 | $0 |
The above “Tax Fees” were billed for professional services rendered for tax preparation.
Services that the Fund’s Independent Registered Public Accounting Firm Billed to the Adviser and Affiliated Fund Service Providers
The following table shows the amount of fees billed by EY to DWS Investment Management Americas, Inc. (“DIMA” or the “Adviser”), and any entity controlling, controlled by or under common control with DIMA (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal years.
Fiscal Year Ended May 31, | Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers |
2023 | $0 | $572,355 | $0 |
2022 | $0 | $429,517 | $0 |
The above “Tax Fees” were billed in connection with tax compliance services and agreed upon procedures.
Non-Audit Services
The following table shows the amount of fees that EY billed during the Fund’s last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that EY provided to the Adviser and any Affiliated Fund Service Provider that related directly to the Fund’s operations and financial reporting. The Audit Committee requested and received information from EY about any non-audit services that EY rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating EY’s independence.
Fiscal Year Ended May 31, | Total Non-Audit Fees Billed to Fund (A) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Fund) (B) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) (C) | Total of (A), (B) and (C) |
2023 | $7,880 | $572,355 | $0 | $580,235 |
2022 | $7,880 | $429,517 | $0 | $437,397 |
All other engagement fees were billed for services in connection with agreed upon procedures and tax compliance for DIMA and other related entities.
Audit Committee Pre-Approval Policies and Procedures. Generally, each Fund’s Audit Committee must pre approve (i) all services to be performed for a Fund by a Fund’s Independent Registered Public Accounting Firm and (ii) all non-audit services to be performed by a Fund’s Independent Registered Public Accounting Firm for the DIMA Entities with respect to operations and financial reporting of the Fund, except that the Chairperson or Vice Chairperson of each Fund’s Audit Committee may grant the pre-approval for non-audit services described in items (i) and (ii) above for non-prohibited services for engagements of less than $100,000. All such delegated pre approvals shall be presented to each Fund’s Audit Committee no later than the next Audit Committee meeting.
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
According to the registrant’s principal Independent Registered Public Accounting Firm, substantially all of the principal Independent Registered Public Accounting Firm's hours spent on auditing the registrant's financial statements were attributed to work performed by full-time permanent employees of the principal Independent Registered Public Accounting Firm.
***
In connection with the audit of the 2022 and 2023 financial statements, the Fund entered into an engagement letter with EY. The terms of the engagement letter required by EY, and agreed to by the Audit Committee, include a provision mandating the use of mediation and arbitration to resolve any controversy or claim between the parties arising out of or relating to the engagement letter or services provided thereunder.
***
Pursuant to PCAOB Rule 3526, EY is required to describe in writing to the Fund’s Audit Committee, on at least an annual basis, all relationships between EY, or any of its affiliates, and the DWS Funds, including the Fund, or persons in financial reporting oversight roles at the DWS Funds that, as of the date of the communication, may reasonably be thought to bear on EY’s independence. Pursuant to PCAOB Rule 3526, EY has reported the matters set forth below that may reasonably be thought to bear on EY’s independence. With respect to each reported matter in the aggregate, EY advised the Audit Committee that, after careful consideration of the facts and circumstances and the applicable independence rules, it concluded that the matters do not and will not impair EY’s ability to exercise objective and impartial judgement in connection with the audits of the financial statements for the Fund and a reasonable investor with knowledge of all relevant facts and circumstances would conclude that EY has been and is capable of exercising objective and impartial judgment on all issues encompassed within EY’s audit engagements. EY also confirmed to the Audit Committee that it can continue to act as the Independent Registered Public Accounting Firm for the Fund.
· | EY advised the Fund’s Audit Committee that various covered persons within EY and EY’s affiliates held investments in, or had other financial relationships with, entities within the DWS Funds “investment company complex” (as defined in Regulation S-X) (the “DWS Funds Complex”). EY informed the Audit Committee that these investments and financial relationships were inconsistent with Rule 2-01(c)(1) of Regulation S-X. EY reported that all breaches have been resolved and that none of the breaches involved any professionals who were part of the audit engagement team for the Fund or in the position to influence the audit engagement team for the Fund. |
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS | |
Not applicable | ||
ITEM 6. | INVESTMENTS | |
Not applicable | ||
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
Not applicable | ||
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES | |
Not applicable | ||
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS | |
Not applicable | ||
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS | |
There were no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board. The primary function of the Nominating and Governance Committee is to identify and recommend individuals for membership on the Board and oversee the administration of the Board Governance Guidelines. Shareholders may recommend candidates for Board positions by forwarding their correspondence by U.S. mail or courier service to Keith R. Fox, DWS Funds Board Chair, c/o Thomas R. Hiller, Ropes & Gray LLP, Prudential Tower, 800 Boylston Street, Boston, MA 02199-3600. | ||
ITEM 11. | CONTROLS AND PROCEDURES | |
(a) | The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. | |
(b) | There have been no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. | |
ITEM 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies | |
Not applicable | ||
ITEM 13. | EXHIBITS | |
(a)(1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. | |
(a)(2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. | |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
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: | DWS Strategic High Yield Tax-Free Fund, a series of Deutsche DWS Municipal Trust |
By: | /s/Hepsen Uzcan Hepsen Uzcan President |
Date: | 7/28/2023 |
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: | /s/Hepsen Uzcan Hepsen Uzcan President |
Date: | 7/28/2023 |
By: | /s/Diane Kenneally Diane Kenneally Chief Financial Officer and Treasurer |
Date: | 7/28/2023 |