NEUBERGER BERMAN MUNICIPAL FUND ANNOUNCES MONTHLY DISTRIBUTION

Rhea-AI Summary

Neuberger Berman Municipal Fund Inc. (NBH) declares a distribution of $0.03774 per share of common stock, payable on April 15, 2024. The Fund aims to provide tax-exempt income, subject to federal alternative minimum tax. Investors should note Section 19 compliance and the breakdown of distribution components.

Insights

Financial Analyst

The announcement by Neuberger Berman Municipal Fund Inc. regarding the distribution of $0.03774 per share represents a routine action for closed-end funds, designed to provide shareholders with regular income. The distribution's tax-exempt status aligns with the fund's objective to deliver federal income tax-exempt earnings, appealing to investors seeking tax-efficient income streams.

However, the potential applicability of the alternative minimum tax (AMT) is a vital consideration for investors, as it can affect the net benefit of the distribution. The mention of a Section 19 notice indicates transparency in reporting and an effort to inform shareholders of the composition of distributions, which is essential for accurate tax planning and assessment of investment performance.

From a market perspective, the distribution amount and its consistency are factors that can influence the fund's attractiveness and, consequently, its stock price. Regular and predictable distributions can lead to a stable investor base, while variability might signal changes in the fund's income-generating ability. The long-term impact of such distributions on the fund's net asset value (NAV) and stock market performance should be monitored, as substantial return of capital could indicate a depletion of assets, potentially affecting future income.

Tax Expert

The tax implications of the Neuberger Berman Municipal Fund's distributions are significant for individual investors. The fund's focus on income exempt from regular federal income tax is a strategic advantage for those in higher tax brackets. However, the mention of the distribution's potential subjectivity to the federal AMT underscores the complexity of tax planning for investors.

Investors must evaluate their AMT exposure, as this could diminish the tax benefits typically associated with municipal bond investments. The distribution's composition, which may include net investment income, capital gains and return of capital, will ultimately determine the tax obligation. The return of capital, for instance, is not immediately taxable but reduces the shareholder's cost basis, potentially resulting in higher capital gains taxes upon sale of the shares.

Understanding the nuances of these tax characteristics is essential for investors to accurately calculate their expected after-tax return and make informed investment decisions. The fund's commitment to providing a Section 19 notice is a proactive step in aiding shareholders' tax planning efforts.

NEW YORK, March 15, 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 April 15, 2024, has a record date of March 28, 2024, and has an ex-date of March 27, 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 is an employee-owned, private, independent investment manager founded in 1939 with 2,800 employees in 26 countries. The firm manages $463 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. UNPRI named the firm a Leader, 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 December 31, 2023. 

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)?

Neuberger Berman Municipal Fund Inc. (NBH) declared a distribution of $0.03774 per share of common stock.

When is the distribution payable?

The distribution announced by Neuberger Berman Municipal Fund Inc. (NBH) is payable on April 15, 2024.

What is the record date for the distribution?

The record date for the distribution is March 28, 2024.

What is the ex-date for the distribution?

The ex-date for the distribution is March 27, 2024.

What is the purpose of the Neuberger Berman Municipal Fund Inc. (NBH)?

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

What should stockholders be aware of regarding distributions of the Fund?

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

What does Section 19 compliance entail for Neuberger Berman Municipal Fund Inc. (NBH)?

In compliance with Section 19 of the Investment Company Act of 1940, a notice would be provided for any distribution that does not consist solely of net investment income.