abrdn National Municipal Income Fund (VFL) Announces Shareholder Approval Relating to Proposed Reorganization and Details about Its Reorganization into Aberdeen Municipal Income Fund (MFM)
Rhea-AI Summary
abrdn National Municipal Income Fund (NYSE American: VFL) shareholders approved the proposed reorganization into Aberdeen Municipal Income Fund (NYSE: MFM). The proposal received 6,152,391 votes for, 1,092,996 against/withheld, and 612,714 abstentions.
Subject to closing conditions, VFL shareholders of record on July 10, 2026 will receive new MFM common shares at equal aggregate NAV and be deemed MFM shareholders on July 13, 2026. All outstanding Muni-MultiMode Preferred Shares, Series 2049, will be redeemed at $100,000 per share plus accrued dividends, funded with cash on hand and portfolio sales.
Positive
- Shareholders approved VFL’s reorganization into MFM with over 6.1 million votes for
- VFL common shareholders to receive MFM shares at equal aggregate net asset value
- Clear timeline: record date July 10, 2026; deemed MFM shareholders July 13, 2026
- Preferred shares redeemed at $100,000 liquidation preference plus final accrued dividends
Negative
- Reorganization and share exchange remain subject to satisfaction of closing conditions
- All Muni-MultiMode Preferred Shares, Series 2049, will be liquidated and cease trading
- Funding preferred redemptions via portfolio sales may require asset disposals
News Market Reaction – MFM
In the Jun 10 session, MFM gained 1.12%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
As of the record date, December 11, 2025, VFL had 12,278,003 shares of common stock outstanding, of which
Proposal:
Approve an Agreement and Plan of Reorganization between the abrdn National Municipal Income Fund (NYSE American: VFL) and Aberdeen Municipal Income Fund (NYSE: MFM), formerly the MFS Municipal Income Trust.
Votes For | Votes Against/Withheld | Votes Abstained |
6,152,391 | 1,092,996 | 612,714 |
Details of Closing
Subject to the satisfaction of certain closing conditions, shareholders of the Fund as of the close of market on July 10, 2026, will receive newly issued common shares of MFM with an aggregate net asset value equal to the net asset value of their Fund shares. Upon the opening of market trading on Monday, July 13, 2026, such shareholders will be deemed shareholders of the Aberdeen Municipal Income Fund (MFM). Pricing and transaction details will be announced in due course and will be made available on MFM's website.
As previously described in the proxy statement/prospectus dated January 29, 2026, ahead of the reorganization the Fund's outstanding Muni-MultiMode Preferred Shares, Series 2049, ("preferred shares") are being liquidated in connection with the reorganization. The Fund has filed with the Securities and Exchange Commission a notice of intention to redeem all of the preferred shares. The preferred share redemption price will be the
The number of preferred shares for each series expected to be redeemed are as follows and represents all of the Fund's outstanding preferred shares:
Series | Share Amount | Preferred Share CUSIP | Anticipated Redemption |
2 | 240 | 24610T702 | June 16, 2026 |
3 | 750 | 24610T801 | June 16, 2026 |
The preferred shares intended for redemption have not been registered under the Securities Act of 1933 or any state securities laws, and, unless so registered, may not be offered or sold in
Important Information
Shares of closed-end funds are listed for trading on national securities exchanges and are bought and sold in the secondary market. The market price of a fund's shares is determined by supply and demand and may be greater than (a "premium") or less than (a "discount") the fund's net asset value (NAV). A fund's investment return and principal value will fluctuate, and investors may receive more or less than their original investment upon the sale of shares. There is no assurance that a fund will achieve its investment objective. Past performance is not indicative of future results.
The trading price of a closed-end fund's shares may be influenced by various factors, including market conditions, investor sentiment, and other external forces, and is not directly controlled by the fund, its Board of Directors, or its investment adviser. As a result, shares may trade at a premium to or discount from NAV at any given time. A premium to NAV may not be sustained, and a discount to NAV may increase or decrease over time. Investors should consider these risks when purchasing or selling closed-end fund shares.
Shareholders whose fund shares trade at a premium to NAV and who participate in the fund's dividend reinvestment plan should be aware that distributions may be reinvested at prices above NAV, which may adversely affect investment results.
About Aberdeen Investments
Aberdeen Investments Global is the trade name of Aberdeen's investments business, herein referred to as "Aberdeen Investments" or "Aberdeen". In the United States, Aberdeen Investments refers to the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited.
Aberdeen Investments is among the world's largest asset managers, with decades of experience overseeing closed-end funds dating back to the 1980s. Closed-end funds represent a core component of Aberdeen Investments' client franchise in both the U.S. and global markets. As of March 31, 2026, the firm had approximately
abrdn National Municipal Income Fund | Aberdeen
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SOURCE Aberdeen Municipal Income Fund