abrdn National Municipal Income Fund Stock Price, News & Analysis

abrdn National Municipal Income Fund (NYSE American: VFL) is a closed-end management investment company in the financial services sector. Classified in the asset management industry, the fund is listed on the NYSE American exchange under the ticker symbol VFL. It is referred to in regulatory and news materials as a closed-end fund and a closed-end management investment company.

The fund’s stated investment objective, as described in multiple press releases, is to provide current income exempt from regular federal income tax, consistent with the preservation of capital. To pursue this objective, the fund invests in municipal bonds and has the ability to use leveraging techniques in an attempt to obtain a higher return for the fund. Several releases note that the fund has outstanding a series of variable-rate preferred shares that are used as leverage. Disclosures also emphasize that there is no assurance the fund will achieve its investment objective and that the investment return and principal value of its common shares may fluctuate, with the shares trading at a premium or discount to net asset value.

Historically known as Delaware Investments National Municipal Income Fund, the fund has undergone a change in investment management. Press releases explain that Delaware Management Company, a series of Macquarie Investment Management Business Trust, was the investment manager, and that a new investment management agreement with abrdn Inc. was approved by shareholders. A release dated March 8, 2023 reports shareholder approval of a new investment management agreement with abrdn Inc. and the election of four new trustees who were trustees of existing abrdn funds. A subsequent release dated July 7, 2023 states that the new investment management agreement with abrdn Inc. was executed on that date, that abrdn Inc. replaced Delaware Management Company as the fund’s investment adviser, and that four new trustees took office upon the resignation of the previous trustees.

Later communications refer to the fund as abrdn National Municipal Income Fund and continue to describe it as a NYSE American-listed closed-end fund trading under the symbol VFL. The fund distributes income monthly to common shareholders. Releases describe changes in the monthly distribution rate and explain that the fund distributes all or a portion of its net investment income, including current gains, to common shareholders. The materials also note that at the end of each calendar year, a Form 1099-DIV is sent to shareholders stating the amount and composition of each fund’s distributions and providing information regarding their tax treatment.

The fund’s governance is overseen by a Board of Trustees. A definitive proxy statement (DEF 14A) dated August 15, 2025 describes an annual meeting of shareholders of abrdn National Municipal Income Fund to be held on September 30, 2025. The purpose of that meeting is to consider the election of trustees. The proxy statement explains that shareholders of record as of a specified record date are entitled to vote, that common and preferred shareholders have defined voting rights (including the exclusive right of preferred shareholders to elect certain trustees), and that the election of trustees is determined by a plurality of votes cast at a meeting where a quorum is present.

In addition to its ongoing operations, the fund has been the subject of a proposed reorganization. A press release dated December 11, 2025 states that the Board of Trustees of abrdn National Municipal Income Fund approved the reorganization of VFL into MFS Municipal Income Trust (NYSE: MFM), described as the “Surviving Fund.” The release explains that this reorganization is part of a broader proposal under which shareholders of MFM would be asked to appoint the U.S. subsidiary of Aberdeen Investments, abrdn Inc., as investment adviser to the surviving fund, appoint the incumbent VFL trustees plus one additional independent trustee to the surviving fund’s board, and approve the issuance of shares in connection with the reorganization. The same release notes that, upon closing, it is intended that the surviving fund’s name will change from “MFS Municipal Income Trust” to “Aberdeen Municipal Income Fund.”

The December 11, 2025 release describes the stated goals of the proposed reorganization, including creating a larger, more efficient fund with greater economic scale and increased trading volume, which may help reduce the discount to net asset value over time. It also states that for VFL shareholders, the transaction offers the opportunity to continue their investment in a significantly larger fund with the potential for a higher annual distribution rate, targeted at 6% of the surviving fund’s net asset value. The proposal is described as being subject to certain conditions, including shareholder approval, with a special meeting of VFL’s common and preferred shareholders of record as of December 11, 2025 tentatively scheduled for March 11, 2026. The release notes that if approved and if all other conditions are met, the reorganization is expected to close in the second quarter of 2026, and that detailed information will be provided in a proxy statement/prospectus to be filed with and declared effective by the U.S. Securities and Exchange Commission.

Throughout the available materials, risk disclosures emphasize that closed-end funds are traded on the secondary market through stock exchanges, that a fund’s investment return and principal value will fluctuate, and that shares may trade at a premium or discount to net asset value. It is also noted that there is no assurance a fund will achieve its investment objective and that past performance does not guarantee future results. These disclosures are repeated in connection with VFL’s distribution announcements and in the context of the proposed reorganization.

Business focus and structure

Based on the press releases and proxy materials, abrdn National Municipal Income Fund focuses on municipal bond investing with an emphasis on generating income exempt from regular federal income tax while seeking to preserve capital. The fund is structured as a closed-end fund with common shares and a series of variable-rate preferred shares used as leverage. The ability to use leveraging techniques is specifically highlighted as a feature intended to attempt to obtain a higher return for the fund, although the materials also stress that there is no assurance such techniques will achieve the desired results.

The fund’s investment objective and principal investment policies are described as remaining unchanged in connection with the transition of investment management from Delaware Management Company to abrdn Inc. A December 22, 2022 release states that the fund’s investment objective and principal investment policies will not change as a result of the proposed change in investment manager to abrdn Inc., which is described as an experienced manager of U.S. registered closed-end funds and municipal bond funds.

Shareholder distributions and policies

Several releases detail the fund’s distribution practices. They report monthly distributions at various per-share levels and note that the fund distributes monthly all or a portion of its net investment income, including current gains, to common shareholders. A release dated September 11, 2024 states that the fund increased its monthly distribution by 10%, from $0.045 per share to $0.05 per share, and notes that the Board considered the investment manager’s views on market outlook and conditions and the manager’s belief that the increased distribution is sustainable. That release also mentions that since abrdn assumed management of the fund on July 7, 2023, the distribution has been cumulatively increased by approximately 54%, and describes the introduction of an open market share repurchase program authorized by the Board.

The share repurchase program described in the September 11, 2024 release allows the fund to purchase its outstanding common shares in the open market, with the amount and timing of any repurchase determined at the discretion of the fund’s investment adviser. The release explains that such purchases may be made opportunistically at certain discounts to net asset value per share, based on management’s judgment of historical discount levels and current market conditions, and that the Board considered the potential improvement in market liquidity and potential accretion to per-share net asset value for long-term shareholders when approving the authorization.

Governance and shareholder meetings

The fund’s governance framework is described in detail in the DEF 14A proxy statement dated August 15, 2025. The document outlines the process for the annual meeting of shareholders, including the record date, voting rights of common and preferred shareholders, quorum requirements, and the method of electing trustees. It explains that all shareholders of the fund vote together to elect trustees, except that holders of preferred shares have the exclusive right to separately elect two preferred share trustees, while also voting with common shareholders for the remaining trustees. The proxy statement also describes how proxies are solicited, how they may be revoked, and how adjournments of the meeting may be handled if a quorum is not present or sufficient votes are not obtained.

Earlier releases, such as the December 22, 2022 and March 8, 2023 announcements, describe a special meeting of shareholders convened to approve the new investment management agreement with abrdn Inc. and to elect four new trustees. These communications provide additional context on how the fund’s board and management arrangements can change subject to shareholder approval and regulatory requirements.

Status and proposed reorganization

As of the information provided, abrdn National Municipal Income Fund continues to be described as a NYSE American-listed closed-end fund trading under the symbol VFL. The December 11, 2025 press release describes a proposed reorganization of VFL into MFS Municipal Income Trust, with the latter identified as the surviving fund. The proposal is subject to shareholder approval and other conditions, and the release describes an expected timeline for a special meeting and a potential closing in the second quarter of 2026 if the conditions are met. The same release indicates that, upon closing, it is intended that the surviving fund’s name will change to Aberdeen Municipal Income Fund. The materials do not state that the reorganization has been completed, so this information describes a proposal and expected timeline rather than a completed transaction.

FAQs about abrdn National Municipal Income Fund (VFL)

• What is the investment objective of abrdn National Municipal Income Fund?
  Press releases and fund descriptions state that the fund’s investment objective is to provide current income exempt from regular federal income tax, consistent with the preservation of capital.
• What type of fund is VFL?
  VFL is described as a New York Stock Exchange American-listed closed-end fund and as a closed-end management investment company in the asset management industry.
• What does the fund invest in to pursue its objective?
  Multiple releases state that the fund seeks to provide current income exempt from regular federal income tax by investing in municipal bonds and that it has the ability to use leveraging techniques in an attempt to obtain a higher return.
• How does VFL use leverage?
  The fund’s materials explain that it has the ability to use leveraging techniques and that it currently has outstanding a series of variable-rate preferred shares as leverage, which are used in an attempt to obtain a higher return for the fund.
• How often does the fund distribute income to shareholders?
  The fund is described as declaring and paying monthly distributions to common shareholders. Several press releases report monthly distribution amounts and payment dates.
• Who is the investment adviser to the fund?
  Earlier materials identify Delaware Management Company, a series of Macquarie Investment Management Business Trust, as the investment manager. Subsequent releases report that shareholders approved a new investment management agreement with abrdn Inc., and a July 7, 2023 release states that abrdn Inc. replaced Delaware Management Company as the fund’s investment adviser on that date.
• What is the proposed reorganization involving VFL?
  A December 11, 2025 press release states that the Board of Trustees of abrdn National Municipal Income Fund approved the reorganization of VFL into MFS Municipal Income Trust, identified as the surviving fund. The proposal includes appointing abrdn Inc. as investment adviser to the surviving fund, appointing the incumbent VFL trustees plus one additional independent trustee to the surviving fund’s board, and issuing shares in connection with the reorganization, subject to shareholder approval and other conditions.
• Will VFL’s investment objective change as a result of the change in investment manager to abrdn Inc.?
  A December 22, 2022 release states that the fund’s investment objective and principal investment policies will not change as a result of the proposed change in investment manager to abrdn Inc.
• How are shareholders involved in governance decisions?
  Shareholders vote on matters such as the election of trustees and approval of new investment management agreements. The DEF 14A proxy statement and various press releases describe special and annual meetings where shareholders vote on proposals, with voting rights defined for common and preferred shares.
• Does VFL guarantee its investment objective or distributions?
  The fund’s disclosures state that there is no assurance the fund will achieve its investment objective. They also emphasize that the fund’s investment return and principal value may fluctuate, that shares may trade at a premium or discount to net asset value, and that past performance does not guarantee future results.