Neuberger Berman Municipal Fund Inc. (NYSE American: NBH) (the “Fund”) has announced a decrease in its monthly distribution rate. The Fund decreased its monthly distribution rate to $0.05025 per share of common stock from the prior monthly distribution rate of $0.06244 per share. The Fund has also declared its next monthly distribution at the new rate, which is payable on May 16, 2022, has a record date of April 29, 2022 and an ex-date of April 28, 2022.
The new monthly distribution rate of $0.05025 per share represents an annualized distribution per share of $0.6030 versus the prior annualized amount of $0.74928 and results in a distribution rate of approximately 4.66% and 4.94%, of the Fund’s net asset value and market price, respectively, as of April 18, 2022.
The decrease in the Fund’s distribution rate is the result of numerous factors, including the current level of yields available in the municipal market and the impact on the Fund’s level of earnings, expected increased costs of leverage associated with forecasted interest-rate hikes and the amount of available undistributed net investment income (UNII).
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 2022 will be made after the end of the year.
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