The fund delivers high tax-exempt distributions with a Board-approved liquidation scheduled for no later than November 30, 2026. KTF maintains a monthly dividend of $0.061 per share ($0.732 annualized).
Cyborg Score Rationale
For the year ended November 30, 2025, the fund returned –0.91% on net asset value versus 2.64% for the Bloomberg Municipal Bond Index, underperforming its benchmark. The fund faces headwinds with a Board-approved liquidation scheduled by November 30, 2026, creating terminal uncertainty.
Top Insights
Board-approved liquidation scheduled for no later than November 30, 2026, creating a defined end date for the fund.
Distribution policy targets at least 7% annualized rate on NAV, with recent payouts including meaningful return-of-capital components.
Leverage remains significant with 35.61% of total assets from leverage, mainly driven by $190 million of term preferred shares.
Portfolio diversified across major states including Texas, Florida, Pennsylvania, Illinois, and California.
Named Competitors
Municipal Bond Funds — Diversified municipal bond closed-end funds
Municipal Income Funds — Tax-exempt municipal bond strategies
Municipal Bond Funds — High-yield municipal income closed-end funds
Recent Developments
(February 2026) Fiscal-year results filed showing –0.91% NAV return and confirmation of November 30, 2026 liquidation deadline
(January 2026) Regular monthly distribution of $0.0610 per share declared
(March 2026) Short interest grew 119.6% from mid-March to end of March, reaching 156,360 shares
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