NEUBERGER BERMAN CLOSED-END MUNICIPAL FUNDS ANNOUNCE DECREASE IN DISTRIBUTION RATES AND DECLARATION OF MONTHLY DISTRIBUTIONS

Rhea-AI Summary

Neuberger Berman Municipal Fund (NBH), California Municipal Fund (NBW), and New York Municipal Fund (NBO) have announced decreases in their monthly distribution rates, effective February 2023. NBH's distribution drops to $0.03774 from $0.05025, NBW to $0.0254 from $0.04480, and NBO to $0.024233 from $0.03933. These changes reflect current municipal market yields, leverage costs, and undistributed net investment income. The new annualized distributions are $0.45288 for NBH, $0.3048 for NBW, and $0.290796 for NBO, with payout dates set for March 15, 2023. The Funds aim to provide income exempt from federal and local taxes.

Positive

• Monthly distribution declared for March 15, 2023, providing clarity for investors.
• Funds aim to offer tax-exempt income, appealing to investors in higher tax brackets.

Negative

• Monthly distribution rates decreased significantly, indicating reduced earnings potential.
• NBH's annualized distribution dropped by 25% compared to previous rates.

NEW YORK, Feb. 15, 2023 /PRNewswire/ -- Neuberger Berman Municipal Fund Inc. (NYSE American: NBH), Neuberger Berman California Municipal Fund Inc. (NYSE American: NBW) and Neuberger Berman New York Municipal Fund Inc. (NYSE American: NBO) (each a "Fund" and collectively, the "Funds") have announced a decrease in their monthly distribution rates. NBH decreased its monthly distribution rate to $0.03774 per share of common stock from the prior monthly distribution rate of $0.05025 per share. NBW decreased its monthly distribution rate to $0.0254 per share of common stock from the prior monthly distribution rate of $0.04480 per share. NBO decreased its monthly distribution rate to $0.024233 per share of common stock from the prior monthly distribution rate of $0.03933 per share.  The Funds have also declared their next monthly distributions, at the new rates, which are payable on March 15, 2023, with a record date of February 28, 2023 and an ex-date of February 27, 2023.

The Funds' decreases in distribution rates are the result of numerous factors, including the current level of yields available in the municipal market and the related impact on the Funds' levels of earnings, the amount of leverage currently employed by the Funds, increased costs of leverage associated with interest-rate hikes and the amount of available undistributed net investment income (UNII).

NBH's new monthly distribution rate of $0.03774 per share represents an annualized distribution per share of $0.45288 versus the prior annualized amount of $0.6030 and results in a distribution rate of approximately 3.73% and 3.91%, of the Fund's net asset value and market price, respectively, as of February 14, 2023.

NBW's new monthly distribution rate of $0.0254 per share represents an annualized distribution per share of $0.3048 versus the prior annualized amount of $0.5376 and results in a distribution rate of approximately 2.36% and 2.61%, of the Fund's net asset value and market price, respectively, as of February 14, 2023.

NBO's new monthly distribution rate of $0.024233 per share represents an annualized distribution per share of $0.290796 versus the prior annualized amount of $0.47196 and results in a distribution rate of approximately 2.56% and 2.91%, of the Fund's net asset value and market price, respectively, as of February 14, 2023.

The Funds seek to provide income that is exempt from regular federal income tax. Additionally, NBW seeks to provide income that is exempt from California personal income tax and NBO seeks to provide income that is exempt from New York State and New York City personal income tax. Distributions of the Funds may be subject to the federal alternative minimum tax for some stockholders.

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 2023 will be made after the end of the year.

About Neuberger Berman

Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 26 countries, Neuberger Berman's diverse team has over 2,600 professionals. For eight consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). Neuberger Berman is a PRI Leader, a designation, since last assessed, that was awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices. In the 2021 PRI Assessment, the firm obtained the highest possible scoring for its overarching approach to ESG investment and stewardship, and integration across asset classes. The firm manages $427 billion in client assets as of December 31, 2022. For more information, please visit our website at www.nb.com. 

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 

View original content to download multimedia:https://www.prnewswire.com/news-releases/neuberger-berman-closed-end-municipal-funds--announce-decrease-in-distribution-rates-and-declaration-of-monthly-distributions-301747700.html

SOURCE Neuberger Berman

FAQ

What are the new distribution rates for Neuberger Berman Municipal Funds?

The new distribution rates are $0.03774 for NBH, $0.0254 for NBW, and $0.024233 for NBO.

When will the new distributions for NBH, NBW, and NBO be paid?

The new distributions will be paid on March 15, 2023.

What factors led to the decrease in distribution rates for NBH, NBW, and NBO?

The decreases are due to current municipal market yields, leverage costs, and undistributed net investment income.

How much has NBH's distribution rate decreased?

NBH's distribution rate decreased from $0.05025 to $0.03774 per share.

What are the annualized distribution amounts for NBH, NBW, and NBO?

The annualized distributions are $0.45288 for NBH, $0.3048 for NBW, and $0.290796 for NBO.