The Board of Trustees oversees corporate policies and adheres to fiduciary standards. Before investing, investors should carefully consider an investment fund‘s objectives and risks before deciding.
Each year shareholders receive a 1099-DIV statement detailing capital gains distributions calculated when the Fund sells positions or liquidates assets. Dupree’s computerized valuation system compares yields and prices downloaded daily from various independent data services to arrive at these calculations.
Tax-Free Income Series
The Dupree Tax-Free Income Series provides residents of Tennessee an income free from federal and state taxes. It has been designed to achieve an attractive yield without undue risk to the principal. As with any bond investment, any bond fund involves interest rate risk and credit risk – investors must carefully consider its investment objectives, risks, charges, and expenses before investing; each fund offers its prospectus detailing these risks.
The gross expense ratio is calculated as the annual operating expenses minus any fee waivers or reimbursements made available to the Fund; the net expense ratio represents this total expense figure after any fee waivers or expense reimbursements take into account.
This chart should only be taken as informational and should not be considered an authoritative source. The chart is based on a fund’s past performance, as detailed above, and may not accurately portray current or future results.
Mutual funds offer investors more predictable prices than ETFs because they are bought and sold directly through fund companies, providing them with consistent prices across their trading day.
Tax-Free Income Series was one of the first single-state municipal bond funds ever offered and currently includes Alabama, Kentucky, Mississippi, North Carolina Tennessee funds. We also provide taxable U.S. Government Bond Series Funds and Intermediate Government Bond Series options.
State-specific municipal bond funds enable investors to take advantage of state income tax exemption for dividend income earned, which may be substantial for particular residents. Unfortunately, because these funds focus on one specific geographic region, their tax-exempt status may only last temporarily; investors should carefully assess their situation and seek professional tax advice for the best results.
The Fund invests a large percentage of its assets in healthcare facility and housing authority bonds, which can experience higher volatility than more diversified funds. Therefore, the Fund may be more susceptible to events or developments that affect these sectors than one more widely diversified across numerous sectors. Furthermore, call risk can force it to repurchase securities at a loss should these calls occur.
Taxable Municipal Bond Series
Municipal bonds offer income-focused investors tax-free yields. Understanding your state’s tax rules is critical as tax-free bond income should generally avoid federal and most state taxes, including AMT; additional local income tax exemptions may also apply.
But if you purchase taxable bonds, any interest earned will be subject to taxes each year when held in a taxable account. Your choice between federal or state filing could depend on your marginal tax rate.
Dupree mutual funds offer dividends free from federal and most state taxes (including AMT). Before investing, investors should thoroughly examine any fund’s investment objectives, risks, charges, and expenses; you can obtain this information by reading its prospectus.
National funds may include municipal bonds from multiple states, while single-state funds typically specialize in securities of one particular form. Investors in states with state income taxes must pay dividend income tax on dividend income received from national funds that hold municipals from multiple states; state income taxes may also need to be paid on municipals from single-state funds that hold bonds from all over. Furthermore, regional factors can have more of an effect on single-state funds than national ones.
Dupree receives yield data daily from an independent data service that provides daily market yield data on municipal bonds maturing one to thirty years and having quality ratings from BBB/Baa to AAA/Aaa. This information is fed into Dupree’s computerized valuation system, which generates prices for each bond; this price serves as the basis for daily pricing of funds; at 4:00 p.m. local time each weekday Dupree is open, share prices are determined at 4:00 by dividing total assets minus liabilities by an outstanding number of outstanding shares; these daily prices form the basis for selling and redeeming our funds – no matter which fund is chosen!
Intermediate Government Bond Series
Unfortunately, that can take years of hard work. But today is your lucky day: let’s celebrate with an evening full of live entertainment – including your very own disco! The Series invests in a portfolio of debt securities primarily issued by the U.S. Treasury, its agencies, or instrumentalities (such as obligations of Federal Farm Credit Banks and the Federal Home Loan Mortgage Corporation); bonds issued by governmental corporations; fully collateralized repurchase agreements backed by issues issued by U.S. Government or its agencies; as well as deposits at federally insured banks. The Investment Adviser may restrict their purchase and sale of securities that adversely impact the investment objectives of the Series. It aims to generate high income levels with prudent asset management while producing acceptable risk-adjusted returns.
The Investment Adviser uses analysis of the economy, industries, businesses, and municipal issuers to develop an ongoing program for managing assets of each Series by its investment objectives. Furthermore, they monitor and evaluate portfolio performance against these objectives to determine which securities should be purchased or sold and place orders accordingly. Lastly, the Investment Adviser also offers investment supervision and administrative services as set out in their agreements with each Series.
The Trustees received fee information prepared by Morningstar(r), Inc to assess the appropriateness of fees charged for managing each Series. The Trustees found that advisory fees charged by Investment Advisers to each Series were reasonable when considered against their administrative, supervisory, and other services provided and economies of scale considered when formulating these fees.
Performance figures provided below reflect one, five, and ten-year periods (or fractional portions thereof) since the inception of each Fund and include reinvested dividends and capital gains, net fees, changes in share price fluctuations, and any potential future results. Performance numbers do not represent any specific investment’s results or guarantee future performance.
Investors should note that shares of the Kentucky Tax-Free Income Series, Tennessee Tax-Free Income Series, Intermediate Government Bond Series, and Taxable Municipal Bond Series may be subject to state income/ad valorem taxes and federal income taxes. For more information regarding this matter, it would be prudent to consult their tax advisor.
Taxable U.S. Government Bond Series
The Dupree Funds’ trustees have determined that profits earned by each Investment Adviser since Series inception are fair in light of services rendered, such as advisory, administrative, and other. This determination was made under Section 12(b) of the Investment Company Act of 1940 as amended (the “Act”).
Each series invests its assets in bonds issued by states, cities, counties, other governmental entities, and specific federal agencies. Diversified portfolios aim to reduce any adverse reactions caused by changes in interest rates or bond prices that might otherwise be amplified due to concentration in one issuer.
Each day, the manager receives yield data from an independent information service that provides the market yield for bonds with maturities between one and thirty years and quality ratings between BBB/Baa and AAA/Aaa. This yield data is then inputted into Dupree computerized valuation system where prices for individual bonds can be generated using this yield data; then this price data is compared against costs, and yields downloaded weekly from services like Standard & Poor’s-J.J Kenny or Financial Times Interactive Data/Muller; then using highest yielding series bonds as the basis for purchase/sell decisions of investment/sale price determination of each bond series.
All Series are eligible except the Alabama Tax-Free Income Series, Kentucky Tax-Free Short-to-Medium Series, Mississippi Tax-Free Short-to-Medium Series, and North Carolina Tax-Free Short-to-Medium Series.
These Funds invest in bonds issued by state governmental issuers rated BBB/Baa or higher for investment purposes, and any dividend income generated may be exempt from state and federal (including alternative minimum) taxes. They are intended for investors living within certain specified states such as Alabama, Kentucky, Mississippi, and North Carolina Tennessee; however, their dividend income remains exempt from state personal income tax obligations for shareholders who live elsewhere than in these five states.
As noted in their Prospectuses, dividends for all Series except Alabama Tax-Free Income and Tennessee Tax-Free Income will generally be distributed quarterly from funds’ net realized gains minus applicable charges and payable directly to shareholders. A fund’s performance does not guarantee it will meet your objectives; they are subject to management risk that could prevent them from reaching them.
