DWS Municipal Income Trust Announces Termination and Liquidating Distribution to Shareholders and Distribution Rate Increase

DWS Municipal Income Trust (NYSE: KTF) (the “Fund”) announced today that the Board of Trustees has approved the termination of the Fund, pursuant to which the Fund will make a liquidating distribution to shareholders no later than November 30, 2026. The Fund also announced that it is increasing its monthly distribution rate to an annualized distribution rate of at least 7% based on KTF’s net asset value (“NAV”) per share as of the then current distribution declaration date. The distribution rate increase will be implemented starting with KTF’s next monthly dividend scheduled to be announced on or about April 8, 2024. The annualized distribution rate target of at least 7% will remain in effect until the termination of KTF; provided that under certain limited circumstances, the monthly distribution amount may be reduced below the annualized distribution rate target of at least 7%.

Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of the Fund’s monthly distribution rate. A portion of the Fund’s increased distribution is expected to be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment is paid back to the shareholder. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income.” When distributions exceed total return performance, the difference will reduce the Fund’s NAV. As may be required by the Federal securities laws, the Fund will issue a notice to its common shareholders in connection with its monthly distributions containing information about the amount and sources of the distribution and other related information.

Important Information

DWS Municipal Income Trust. Bond investments are subject to interest-rate, credit, liquidity and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest. The market for municipal bonds may be less liquid than for taxable bonds and there may be less information available on the financial condition of issuers of municipal securities than for public corporations. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Leverage results in additional risks and can magnify the effect of any gains or losses. Although the fund seeks income that is exempt from federal income taxes, a portion of the fund’s distributions may be subject to federal, state and local taxes, including the alternative minimum tax.