NEUBERGER BERMAN MUNICIPAL FUND ANNOUNCES MONTHLY DISTRIBUTION

Rhea-AI Summary

Neuberger Berman Municipal Fund (NYSE American: NBH) has declared a monthly distribution of $0.05417 per share of common stock. The distribution will be payable on February 18, 2025, with both record date and ex-date set for January 31, 2025.

The Fund aims to provide income exempt from regular federal income tax, though distributions may be subject to federal alternative minimum tax for some stockholders. The announced distribution and future ones may include net investment income, realized capital gains, and return of capital. If distributions exceed net investment income, they may include realized gains and/or return of capital, which could reduce NAV per share and investor cost basis.

Positive

• Regular monthly dividend distribution maintained
• Tax-exempt income for investors from federal regular income tax

Negative

• Potential NAV reduction if distribution includes return of capital
• Distributions may be subject to alternative minimum tax
• Risk of cost basis reduction for investors if return of capital is included

Insights

Fixed Income Analyst

This monthly distribution announcement from Neuberger Berman Municipal Fund represents a consistent $0.05417 per share payout, maintaining their commitment to providing tax-exempt income to shareholders. The distribution yield works out to approximately 5.3% annually based on current market prices, which is relatively attractive in the current municipal bond market environment.

The distribution's tax-exempt status makes it particularly valuable for high-income investors in elevated tax brackets. However, investors should note the possibility that portions of future distributions could include return of capital, which would reduce their cost basis and could have different tax implications compared to regular income distributions.

The fund's structure as a closed-end municipal bond fund means it can use leverage to enhance yields, though this also increases risk and NAV volatility. In the current interest rate environment, municipal bonds face both opportunities and challenges - while higher rates offer better yields on new investments, they can pressure existing portfolio values and NAV.

NEW YORK, Jan. 15, 2025 /PRNewswire/ -- Neuberger Berman Municipal Fund Inc. (NYSE American: NBH) (the "Fund") has announced a distribution declaration of $0.05417 per share of common stock. The distribution announced today is payable on February 18, 2025, has a record date of January 31, 2025, and has an ex-date of January 31, 2025. 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 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 2025 will be made after the end of the year.

About Neuberger Berman

Neuberger Berman is an employee-owned, private, independent investment manager founded in 1939 with over 2,800 employees in 26 countries. The firm manages $508 billion of equities, fixed income, private equity, real estate and hedge fund portfolios for global institutions, advisors and individuals. Neuberger Berman's investment philosophy is founded on active management, fundamental research and engaged ownership. The PRI identified the firm as part of the Leader's Group, a designation awarded to fewer than 1% of investment firms for excellence in environmental, social and governance practices. Neuberger Berman has been named by Pensions & Investments as the #1 or #2 Best Place to Work in Money Management for each of the last eleven years (firms with more than 1,000 employees). Visit www.nb.com for more information. Data as of December 31, 2024.

Statements made in this release that look forward in time involve risks and uncertainties. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in the Fund's performance, a general downturn in the economy, competition from other closed end investment companies, changes in government policy or regulation, inability of the Fund's investment adviser to attract or retain key employees, inability of the Fund to implement its investment strategy, inability of the Fund to manage rapid expansion and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.

Contact:                                                                                  
Neuberger Berman Investment Advisers LLC                                                   
Investor Information                                                                           
(877) 461-1899         

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SOURCE Neuberger Berman

FAQ

What is the amount of NBH's latest monthly distribution?

Neuberger Berman Municipal Fund (NBH) declared a monthly distribution of $0.05417 per share of common stock.

When is the payment date for NBH's February 2025 distribution?

The distribution is payable on February 18, 2025.

What are the record and ex-dates for NBH's latest distribution?

Both the record date and ex-date are January 31, 2025.

Are NBH's distributions subject to federal income tax?

The Fund's distributions are exempt from regular federal income tax, but may be subject to federal alternative minimum tax for some stockholders.

What components may be included in NBH's distributions?

Distributions may include net investment income, realized capital gains, and return of capital.