Welcome to our dedicated page for Neuberger Berman Municipal news (Ticker: NBH), a resource for investors and traders seeking the latest updates and insights on Neuberger Berman Municipal stock.
Overview of Neuberger Berman Municipal Fund Inc. (NBH)
Neuberger Berman Municipal Fund Inc. (NYSE American: NBH) is a closed-end management investment company specializing in municipal securities. The fund primarily focuses on providing its common stockholders with a high level of current income that is exempt from regular federal income tax. This makes NBH an attractive option for investors seeking tax-advantaged income, particularly those in higher tax brackets.
Core Business Model
NBH operates within the asset management industry and is managed by Neuberger Berman Investment Advisers LLC, an employee-owned, private investment management firm with decades of experience. The fund generates revenue through management fees, which are derived from its assets under management (AUM). These assets are primarily allocated to municipal bonds, which are debt securities issued by state and local governments to fund public projects. By focusing on municipal bonds, NBH provides investors with a relatively stable income stream while leveraging the tax-exempt status of these securities.
Investment Strategy and Portfolio Composition
NBH employs a disciplined investment approach that emphasizes active management and fundamental research. The fund's portfolio is diversified across various municipal securities, including general obligation bonds, revenue bonds, and other tax-exempt instruments. This diversification helps mitigate risks such as credit default and interest rate volatility. Additionally, NBH extends its reach by utilizing Variable Rate Municipal Term Preferred Shares, which provide leverage and enhance income potential while maintaining a focus on risk management.
Tax-Exempt Income and Distribution Policy
A key feature of NBH is its commitment to delivering income that is exempt from regular federal income tax. However, certain distributions may be subject to the federal alternative minimum tax (AMT) for some stockholders. The fund's distribution policy includes regular payouts, which may consist of net investment income, realized capital gains, and sometimes a return of capital. Investors should note that distributions exceeding net investment income may reduce the fund's net asset value (NAV) and adjust the cost basis of their shares.
Competitive Position
NBH operates in a competitive landscape alongside other closed-end municipal bond funds. Its differentiation lies in its active management approach, the expertise of its parent company Neuberger Berman, and its strategic use of leverage to enhance returns. The fund's focus on tax-exempt income provides a unique value proposition, especially for investors seeking to optimize after-tax returns in their portfolios.
Challenges and Risk Factors
Like other municipal bond funds, NBH faces challenges such as interest rate fluctuations, which can impact bond prices and yields. Credit risk is another consideration, as the financial health of municipal issuers can vary. Additionally, the use of leverage through preferred shares introduces risks, including increased volatility and potential liquidity constraints. Despite these challenges, NBH's active management and diversified portfolio help mitigate some of these risks.
About Neuberger Berman
NBH is managed by Neuberger Berman Investment Advisers LLC, a globally recognized investment management firm founded in 1939. With expertise spanning equities, fixed income, private equity, real estate, and hedge funds, Neuberger Berman is known for its active management philosophy and commitment to fundamental research. This institutional backing adds a layer of credibility and trustworthiness to NBH's operations.
Conclusion
Neuberger Berman Municipal Fund Inc. (NBH) stands out as a specialized investment vehicle offering tax-exempt income through a diversified portfolio of municipal securities. Its alignment with the expertise of Neuberger Berman enhances its appeal to investors seeking a reliable income stream while optimizing their tax liabilities. With a disciplined investment approach and a focus on risk management, NBH continues to be a noteworthy player in the closed-end municipal bond fund space.
On November 11, 2022, Neuberger Berman Municipal Fund (NYSE: NBH), California Municipal Fund (NYSE: NBW), and New York Municipal Fund (NYSE: NBO) announced a partial redemption of Variable Rate Municipal Term Preferred Shares (VMTP Shares). The redemption price was set at $100,000 per share plus final accumulated distributions. The Municipal Fund redeemed 200 VMTP Shares, leaving 1,457 outstanding; the California Fund redeemed 55, leaving 457 outstanding, while the New York Fund redeemed 55, leaving 365 outstanding. The Funds have not registered VMTP Shares under the Securities Act.
On August 15, 2022, Neuberger Berman Municipal Fund (NYSE: NBH), Neuberger Berman California Municipal Fund (NYSE: NBW), and Neuberger Berman New York Municipal Fund (NYSE: NBO) announced a partial redemption of their Variable Rate Municipal Term Preferred Shares (VMTP Shares). The funds redeemed 47 VMTP Shares (NBH), 38 (NBW), and 43 (NBO) at a liquidation preference of $100,000 each, plus accrued distributions. Currently, 1,657 VMTP Shares remain in NBH, 512 in NBW, and 420 in NBO. The funds have not registered the VMTP Shares under the Securities Act, limiting their sale in the U.S.
Neuberger Berman Municipal Fund Inc. (NYSE American: NBH) announced a decrease in its monthly distribution rate to $0.05025 per share, down from $0.06244. The new rate results in an annualized distribution of $0.6030, reflecting a rate of approximately 4.66% of the Fund's net asset value as of April 18, 2022. Factors leading to this decrease include lower yields in the municipal market, expected increased leverage costs due to anticipated interest rate hikes, and available undistributed net investment income (UNII).
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