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NEW YORK, July 15, 2024 /PRNewswire/ -- Neuberger Berman Municipal Fund Inc. (NYSE American: NBH) (the "Fund") has announced an increase in its monthly distribution rate to $0.05417 per share of common stock from the prior monthly distribution rate of $0.03774 per share, representing an increase of approximately 43.5%. The Fund has also declared its next monthly distribution at the new rate, which is payable on August 15, 2024, has a record date of July 31, 2024, and has an ex-date of July 31, 2024. The Fund seeks to provide income that is exempt from regular federal income tax. Distributions of the Fund may be subject to the federal alternative minimum tax for some stockholders.
The new monthly distribution rate of $0.05417 per share represents an annualized distribution per share of $0.65 versus the prior annualized amount of $0.45288 and results in a distribution rate of approximately 5.91% of the Fund's market price and 5.38% of its net asset value, as of July 12, 2024.
Neuberger Berman Investment Advisers LLC ("Neuberger Berman"), the Fund's investment manager, and the Fund's Board of Directors, including its Board committees (together, the "Board"), continue to be focused on delivering value to stockholders of the Fund. The distribution rate increase announced today is an effort to enhance the Fund's competitiveness in the secondary market and increase demand for the Fund's common stock in the secondary market, which may narrow the discount between the market price of the Fund's common stock and its net asset value per share. The Fund's Board has determined that—like many other closed-end funds—it is in the best interests of the Fund and its current stockholders to pay a higher distribution rate, even if that distribution represents a combination of net investment income, capital gains and return of capital. Neuberger Berman and the Board will continue to consider other strategies or transactions that may enhance stockholder value and mitigate the discount that the Fund's common stock trades relative to its net asset value.
The distribution announced today, as well as future distributions, may consist of net investment income, realized capital gains, and return of capital. In the event the Fund distributes more than its net investment income during any yearly period, such distributions may also include realized gains and/or a return of capital. To the extent that a distribution includes a return of capital, the NAV per share may decline and an investor's cost basis of their shares will be reduced. In compliance with Section 19 of the Investment Company Act of 1940, as amended, a notice would be provided for any distribution that does not consist solely of net investment income. The notice would be for informational purposes and not for tax reporting purposes, and would disclose, among other things, estimated portions of the distribution, if any, consisting of net investment income, capital gains and return of capital. The final determination of the source and tax characteristics of all distributions paid in 2024 will be made after the end of the year.