NEUBERGER BERMAN MUNICIPAL FUND ANNOUNCES MONTHLY DISTRIBUTION

Rhea-AI Summary

Neuberger Berman Municipal Fund Inc. (NBH) has declared a distribution of $0.03774 per share of common stock, payable on February 15, 2024. The Fund aims to provide income exempt from regular federal income tax, but distributions may be subject to the federal alternative minimum tax for some stockholders. The notice would be for informational purposes and not for tax reporting purposes, and would disclose 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 2024 will be made after the end of the year.

Insights

Tax Specialist

The announcement of Neuberger Berman Municipal Fund Inc.'s distribution is significant for investors seeking tax-efficient income streams. The fact that the fund aims to provide income exempt from federal income tax can be a strategic advantage for investors in higher tax brackets. However, the potential exposure to the federal alternative minimum tax (AMT) could offset some of the benefits for certain stockholders. The AMT is designed to prevent high-income taxpayers from using special tax benefits to pay little or no tax, potentially making the distribution less attractive for those affected.

Moreover, the compliance with Section 19 of the Investment Company Act of 1940 ensures transparency in the distribution's composition, which is crucial for investors in understanding the nature of their income, whether it's from net investment income, capital gains, or return of capital. Each type has different tax implications, with return of capital, for example, not being taxed immediately but reducing the cost basis of the investment, which could result in higher capital gains when the shares are sold.

Financial Analyst

From a financial perspective, the distribution declaration by Neuberger Berman Municipal Fund Inc. can influence the fund's attractiveness to investors. The yield, calculated as the annual distribution rate divided by the fund's share price, is a key metric for assessing income investments. The declared distribution of $0.03774 per share will be a factor in the fund's yield calculation, affecting its comparison with other investment options.

Investors will also be monitoring the fund's performance to ensure that distributions are sustainable and not eroding the fund's capital. Funds that consistently return capital can be seen as less desirable if the principal value is being diminished. The final determination of the distribution's source at the year's end will be important for evaluating the fund's ability to generate income through its investments versus returning capital.

NEW YORK, Jan. 16, 2024 /PRNewswire/ -- Neuberger Berman Municipal Fund Inc. (NYSE American: NBH) has announced a distribution declaration of $0.03774 per share of common stock.  The distribution announced today is payable on February 15, 2024, has a record date of January 31, 2024, and has an ex-date of January 30, 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.

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 2024 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. Neuberger Berman's investment philosophy is founded on active management, engaged ownership and fundamental research, including industry-leading research into material environmental, social and governance factors. Neuberger Berman is a PRI Leader, a designation awarded to fewer than 1% of investment firms. With offices in 26 countries, the firm's diverse team has over 2,800 professionals. For ten consecutive years, Neuberger Berman 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). The firm manages $463 billion in client assets as of December 31, 2023. 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                                                                                     

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SOURCE Neuberger Berman

FAQ

What is the distribution amount declared by Neuberger Berman Municipal Fund Inc. (NBH)?

The distribution declared is $0.03774 per share of common stock.

When is the distribution payable?

The distribution is payable on February 15, 2024.

What is the record date for the distribution?

The record date is January 31, 2024.

What is the ex-date for the distribution?

The ex-date is January 30, 2024.

What does the Fund aim to provide?

The Fund aims to provide income that is exempt from regular federal income tax.

What may distributions of the Fund be subject to for some stockholders?

Distributions of the Fund may be subject to the federal alternative minimum tax for some stockholders.

What is the purpose of the notice provided in compliance with Section 19 of the Investment Company Act of 1940?

The notice is for informational purposes and not for tax reporting purposes, and would disclose estimated portions of the distribution, if any, consisting of net investment income, capital gains, and return of capital.

When will the final determination of the source and tax characteristics of all distributions paid in 2024 be made?

The final determination will be made after the end of the year.