This summary prospectus for the XFT Municipal Income Fund (the “Fund”) provides a concise overview of key information. It does not contain all of the information that you should consider before investing in the Fund’s shares. Please read the complete Prospectus and Statement of Additional Information (“SAI”), especially the information under “Risk Factors,” for a more detailed discussion of the Fund’s strategies, operations, and associated risks.
| The Fund | XFT Municipal Income Fund is a continuously offered, diversified, closed-end management investment company registered under the Investment Company Act of 1940 (“1940 Act”). The Fund intends to operate as an “interval fund,” making repurchase offers for 5% to 25% of its outstanding shares at net asset value (“NAV”) on a quarterly basis, unless postponed or suspended under regulatory guidelines. |
| Common Shares | The Fund’s common shares of beneficial interest, called “Common Shares,” represent an ownership interest in the Fund. Holders of Common Shares are referred to as “Common Shareholders.” |
| The Offering |
Title of Securities Being Registered: Common Shares Amount Being Registered: 500,000 Proposed Maximum Offering Price per Unit: $10.00 Proposed Maximum Aggregate Offering Price: $5,000,000 You must purchase at least $3,000 (Dollar Shares) or $50,000 (DeFi Shares) to participate. |
| Investment Objective | The Fund seeks to provide current income exempt from federal personal income taxes while maintaining liquidity and a stable share price of $1. |
| Investment Policies & Restrictions |
Under normal market conditions, at least 80% of the Fund’s Managed Assets will be invested
in municipal securities that XFT deems to be of investment grade quality. The Fund may invest
up to 20% of its Managed Assets in municipal securities rated below investment grade (“junk
bonds”). The Fund maintains a dollar-weighted average maturity of 60 days or less and a
dollar-weighted average life of 120 days or less. The Fund may concentrate 25% or more
of its Managed Assets in securities of issuers located in the same state or economic sector.
The Fund’s fundamental investment restrictions, as detailed in the Prospectus and SAI, may only be changed by a vote of a majority of the outstanding voting securities. No assurance can be given that the Fund’s investment objective or strategies will be achieved. |
| Principal Strategies | The Fund focuses on high-quality, short-term municipal securities with effective maturities of 397 days or less, aiming to maintain minimal credit risk through maturity and diversification considerations. The Fund invests in municipal obligations that generate interest exempt from federal income taxes. |
| Management & Organization |
Investment Advisor: X Financial Technologies (“XFT”). XFT oversees the Fund’s
day-to-day management, including security selection and compliance with the Fund’s
investment strategies. The Advisor’s compensation is based on the Fund’s Managed Assets.
The Advisor’s investment team members have extensive experience managing municipal bond portfolios and short-duration strategies. Additional details regarding the Advisor’s background and compensation structure can be found in the Fund’s Prospectus and SAI. |
| Shareholder Information |
Interval Fund Repurchases: The Fund will conduct quarterly repurchase offers
for 5–25% of outstanding shares at NAV. Notices are sent at least 21 days before each
repurchase request deadline.
Purchases & Redemptions: Shares may be purchased or redeemed at https://xft.finance. The minimum initial investments are $3,000 for Dollar Shares and $50,000 for DeFi Shares; subsequent investments require $1. If investing through an intermediary, please contact that firm directly for eligibility and purchase/redemption procedures. Dividend Reinvestment: Unless otherwise elected, distributions are automatically reinvested in additional shares. Shareholders may elect to receive cash instead, or revoke that election at any time. |
| Tax Information | A significant portion of the Fund’s distributions is expected to be exempt from federal personal income taxes. However, certain distributions may be subject to state or local taxes, or to the federal alternative minimum tax. For detailed information on the tax treatment of Fund distributions, refer to “Tax Matters” in the Prospectus and SAI. |
| Fees & Expenses |
Sales Charge (Load): None Purchase Fee: None Reinvested Dividends Charge: None Redemption Fee: None Management Fees: None Performance Fee: None 12b-1 Distribution Fee: None Yield Distribution Fee: 20% |
| Cost Example |
The example below helps you compare the cost of investing in the Fund with other funds.
It assumes a $10,000 investment, a 5% annual return, and that operating expenses remain as stated.
Whether or not you redeem at the end of each period, your costs would be:
1 year • 3 years • 5 years • 10 years Dollar Tokens: $17 • $55 • $96 • $217 DeFi Shares: $9 • $29 • $51 • $115 |
| Financial Highlights | The Fund and its Common Shares have no operating history. Additional financial data, including per-share operating performance, total returns, and expense ratios, will be presented in future shareholder reports when available. Refer to the Prospectus and SAI for further details on how these highlights are calculated. |
| Plan of Distribution | The Distributor acts as principal underwriter, selling shares on a reasonable efforts basis under the terms of the Distribution Agreement. Shares are offered at NAV plus applicable sales load (if any). The offering is continuous under Rule 415 until 100,000,000 shares are sold or such earlier date determined by the Board. The Fund’s shares are not listed on an exchange; the Distributor is not a market maker. |
| Legal Proceedings | As of this date, neither the Fund nor its management is subject to any material legal proceedings that could significantly affect the Fund or its operations. Any such proceedings, if they arise, will be disclosed in the Prospectus, SAI, or future shareholder reports. |
| Risk Factors | Income Risk, Interest Rate Risk, Call Risk, Extension Risk, Credit Risk, Liquidity Risk, Manager Risk, Tax Risk, and other considerations apply to an investment in the Fund. These are discussed in detail under “Risk Factors” in the Prospectus and SAI. |
| Portfolio Turnover | Higher portfolio turnover may lead to higher transaction costs and potential tax implications. These costs are not included in the example of annual expenses. Actual turnover rates will be reported in the Fund’s annual and semi-annual reports. |
| Use of Proceeds | Pending investment in municipal securities that meet the Fund’s objectives, proceeds from this offering may be invested in high-quality, short-term tax-exempt instruments or comparable taxable securities on a temporary basis. |
| Service Providers |
Fund Admin & Custodian: BNY Mellon Fund Manager: Closed-End Fund Advisors Auditor: Ernst & Young LLP Transfer Agent: XFT Prime Brokerage: Goldman Sachs, RBC Fiat <> Stablecoin: Visa |
| Legal Structure | The Fund is a Delaware Series Trust, registered as a non-diversified, closed-end management company under the 1940 Act. The Board of Trustees may authorize multiple series or classes of shares. The Fund does not intend to hold annual shareholder meetings. |
| History | The Fund’s Common Shares have not been publicly traded. Shares of closed-end funds often trade at a discount to net asset value, which may impact investors seeking to redeem shares soon after purchase. |