- XFT Municipal Money Market Fund’s investment objective is to seek to provide current income that is exempt from federal personal income taxes while maintaining liquidity and a stable share price of $1. As such it is considered one of the most conservative investment options offered by XFT. Although the fund invests in short-term, high-quality securities, the amount of income that a shareholder may receive will be largely dependent on the current interest rate environment and the availability of eligible municipal securities. Investors in a higher tax bracket who have a short-term savings goal and seek a competitive tax-free yield may wish to consider this option.
- The Fund seeks to provide current income that is exempt from federal personal income taxes while maintaining liquidity and a stable share price of $1.
Investment Goal
- Maintain $1.00 share price
- Tax exemption
- Yield
- RIC status; avoids US income tax if income and gains are distributed.
OR
- Tax exemption via municipal bond portfolio
- Distribute daily variable dollar amounts to maintain $1 NAV per managed distribution policy.
Methods
- Increase distribution if NAV > $1
- Distribute income to avoid NAV growth
- Return capital to offset premium
- Reduce distribution if NAV < $1
- The following tables describe the fees and expenses you may pay if you buy, hold, and sell Dollar Shares or DeFi Shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.
Annual Fund Operating Expenses
(Expenses that you pay each year as a percentage of the value of your investment)
(Expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
Management Fees
|
0.00
%
|
|
12b-1 Distribution Fee
|
None
|
|
Other Expenses
|
0.01
%
|
|
Total Annual Fund Operating Expenses
|
0.01
%
|
Examples
The following examples are intended to help you compare the cost of investing in
the Fund’s Dollar Shares or DeFi Shares with the cost of investing in other
mutual funds. They illustrate the hypothetical expenses that you would incur over
various periods if you were to invest $10,000 in the Fund’s shares. These
examples assume that the shares provide a return of 5% each year and that total
annual fund operating expenses remain as stated in the preceding table. You
would incur these hypothetical expenses whether or not you were to redeem
your investment at the end of the given period. Although your actual costs may
be higher or lower, based on these assumptions your costs would be:
|
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
|
Dollar Shares
|
$17
|
$55
|
$96
|
$217
|
|
DeFi Shares
|
$9
|
$29
|
$51
|
$115
|
- The Fund invests in a variety of high-quality, short-term municipal securities. To be considered high quality, a security must be determined by XFT to present minimal credit risk based in part on a consideration of maturity, portfolio diversification, portfolio liquidity, and credit quality. The Fund invests in securities with effective maturities of 397 days or less, maintains a dollar-weighted average maturity of 60 days or less, and maintains a dollar-weighted average life of 120 days or less.
Principal Risks
The Fund is designed for investors with a low tolerance for risk, but you could still
lose money by investing in it.
The Fund is subject to the following risks, which
could affect the Fund’s performance, and the level of risk may vary based on
market conditions:
•
Income risk
, which is the chance that the Fund’s income will decline because
of falling interest rates. Income risk is generally high for short-term bond funds,
so investors should expect the Fund’s monthly income to fluctuate accordingly.
•
Interest rate risk
, which is the chance that bond prices overall will decline
because of rising interest rates. Interest rate risk should be low for the Fund
because it invests primarily in short-term bonds, whose prices are less sensitive
to interest rate changes than are the prices of longer-term bonds.
•
Call risk
, which is the chance that during periods of falling interest rates,
issuers of callable bonds may call (redeem) securities with higher coupon rates
or interest rates before their maturity dates. The Fund would then lose any price
appreciation above the bond’s call price and would be forced to reinvest the
unanticipated proceeds at lower interest rates, resulting in a decline in the Fund’s
income. Such redemptions and subsequent reinvestments would also increase
the Fund’s portfolio turnover rate. Call risk is generally low for short-term
bond funds.
•
Extension risk
, which is the chance that during periods of rising interest rates,
certain debt securities will be paid off substantially more slowly than originally
anticipated, and the value of those securities may fall. Extension risk is generally
low for short-term bond funds.
•
Credit risk
, which is the chance that a bond issuer will fail to pay interest or
principal in a timely manner or that negative perceptions of the issuer’s ability to
make such payments will cause the price of that bond to decline. In general,
credit risk should be relatively low for the Fund because it invests primarily in
bonds that are considered to be of high quality.
•
Liquidity risk
, which is the chance that the Fund may not be able to sell a
security, including restricted securities, in a timely manner at a desired price.
•
Manager risk
, which is the chance that poor security selection will cause the
Fund to underperform relevant benchmarks or other funds with a similar
investment objective.
•
Tax risk
, which is the chance that all or a portion of the tax-exempt income
from municipal bonds held by the Fund will be declared taxable, possibly with
retroactive effect, because of unfavorable changes in tax laws, adverse
interpretations by the Internal Revenue Service or state or local tax authorities, or
noncompliant conduct of a bond issuer.
- You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress.
- You may purchase or redeem shares online through our website (xft.finance). The minimum investment amount required to open and maintain a Fund account for Investor Shares or DeFi Shares is $3,000 or $50,000, respectively. The minimum investment amount required to add to an existing Fund account is generally $1. Financial intermediaries, institutional clients, and XFT-advised clients should contact XFT for information on special eligibility rules that may apply to them regarding DeFi Shares. If you are investing through an intermediary, please contact that firm directly for more information regarding your eligibility.
- The Fund’s distributions may be taxable as ordinary income or capital gain. A majority of the income dividends that you receive from the Fund are expected to be exempt from federal income taxes. However, a portion of the Fund’s distributions may be subject to federal, state, or local income taxes or the federal alternative minimum tax.
- The Fund and its investment advisor do not pay financial intermediaries for sales of Fund shares.
| CIK | ||
| Series | ||
| Class/Contract | Name | Symbol |
| 0000225997 | XFT MUNICIPAL BOND FUNDS | |
| S000002892 | XFT High-Yield Tax-Exempt Fund | |
| 0x81536233C3FfaEa0198D7B5Ce8dEceDf3C520A66 | Dollar Tokens | USDX |
| C000007950 | DeFi Shares | USDXW |
- Structure
- Non-diversified, closed-end management company registered under the 1940 Act
- Distribution Policy
- Distributes daily variable dollar amounts per managed distribution policy, benchmarked to CEFA's Municipal Bond Select portfolio.
- Tax Treatment
- The Company intends to elect to be treated as a regulated investment company (RIC); if qualified, the Company will not be subject to US income tax to the extent income and gains are distributed
- Delaware Series Trust
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