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 paid on January 15, 2025, with both record and ex-dates set for December 31, 2024.

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. Distributions can include net investment income, realized capital gains, and return of capital. The final determination of distribution sources and tax characteristics for 2025 will be made at year-end.

Positive

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

Negative

• Distributions may include return of capital, potentially reducing NAV and investor cost basis
• Some stockholders may be subject to alternative minimum tax on distributions

Insights

Financial Analyst

The monthly distribution announcement of $0.05417 per share maintains NBH's consistent income stream for fixed-income investors. While seemingly routine, this distribution highlights the fund's focus on tax-exempt municipal bonds, offering valuable tax advantages for investors in higher tax brackets. The fund's structure as a closed-end fund and its emphasis on federal tax-exempt income makes it particularly relevant in the current high-interest rate environment where tax-efficient income strategies are increasingly important.

The distribution's composition flexibility, potentially including net investment income, capital gains and return of capital, provides the fund management with tools to maintain stable distributions. However, investors should carefully monitor any return of capital components, as these could impact their cost basis and indicate distribution sustainability challenges. The January 2025 distribution maintains the fund's commitment to regular income payments while navigating municipal market dynamics.

NEW YORK, Dec. 16, 2024 /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 January 15, 2025, has a record date of December 31, 2024, and has an ex-date of December 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 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 $509 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 ten years (firms with more than 1,000 employees). Visit www.nb.com for more information. Data as of September 30, 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 January 2025 distribution amount for Neuberger Berman Municipal Fund (NBH)?

The distribution amount is $0.05417 per share of common stock, payable on January 15, 2025.

When is the record date for NBH's January 2025 distribution?

The record date is December 31, 2024.

Are NBH fund distributions tax-exempt?

The Fund seeks to provide income exempt from regular federal income tax, though distributions may be subject to federal alternative minimum tax for some stockholders.

What components can make up NBH's distributions?

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

When will the final tax characteristics of NBH's 2025 distributions be determined?

The final determination of the source and tax characteristics of all distributions paid in 2025 will be made after the end of the year.