abrdn National Municipal Income Fund ("VFL") Announces Additional 10% Increase in Distribution Rate and Authorization of an Open Market Share Repurchase Program
abrdn National Municipal Income Fund (NYSE American: VFL) has announced a 10% increase in its monthly distribution from $0.045 to $0.05 per share, effective September 30, 2024. This change raises the Fund's NAV distribution rate from 4.4% to 4.9% and the share price distribution rate from 4.9% to 5.4%. Since abrdn assumed management in July 2023, the distribution has increased by approximately 54%.
Additionally, the Fund's Board has authorized an open market share repurchase program, allowing the repurchase of up to 10% of outstanding shares in any 12-month period. This program aims to improve market liquidity and potentially increase per share NAV for long-term shareholders. The Fund seeks to provide current income exempt from regular federal income tax while preserving capital by investing in municipal bonds.
Il Fondo Nazionale di Reddito Municipale abrdn (NYSE American: VFL) ha annunciato un incremento del 10% nella sua distribuzione mensile, passando da $0.045 a $0.05 per azione, con effetto dal 30 settembre 2024. Questa modifica porta il tasso di distribuzione del NAV del Fondo dal 4.4% al 4.9% e il tasso di distribuzione del prezzo per azione dal 4.9% al 5.4%. Da quando abrdn ha assunto la gestione nel luglio 2023, la distribuzione è aumentata di circa 54%.
Inoltre, il Consiglio del Fondo ha autorizzato un programma di riacquisto azionario sul mercato aperto, che consente il riacquisto di fino al 10% delle azioni in circolazione in un periodo di 12 mesi. Questo programma mira a migliorare la liquidità di mercato e potenzialmente aumentare il NAV per azione per gli azionisti a lungo termine. Il Fondo cerca di fornire un reddito attuale esente da imposta sul reddito federale ordinario, preservando il capitale attraverso investimenti in obbligazioni municipali.
El Fondo Nacional de Ingresos Municipales abrdn (NYSE American: VFL) ha anunciado un incremento del 10% en su distribución mensual, de $0.045 a $0.05 por acción, efectivo el 30 de septiembre de 2024. Este cambio eleva la tasa de distribución del NAV del Fondo del 4.4% al 4.9% y la tasa de distribución del precio de las acciones del 4.9% al 5.4%. Desde que abrdn asumió la gestión en julio de 2023, la distribución ha aumentado aproximadamente un 54%.
Además, la Junta del Fondo ha autorizado un programa de recompra de acciones en el mercado abierto, permitiendo la recompra de hasta el 10% de las acciones en circulación en un período de 12 meses. Este programa tiene como objetivo mejorar la liquidez del mercado y potencialmente aumentar el NAV por acción para los accionistas a largo plazo. El Fondo busca proporcionar ingresos actuales exentos del impuesto federal sobre la renta regular mientras preserva el capital invirtiendo en bonos municipales.
abrdn 국가 지방 소득 기금(NYSE American: VFL)이 월 배당금을 10% 인상하여 주당 $0.045에서 $0.05로 변경한다고 발표했습니다. 이 변경은 2024년 9월 30일부터 시행됩니다. 이로 인해 기금의 NAV 배당률이 4.4%에서 4.9%로, 주가 배당률이 4.9%에서 5.4%로 증가합니다. abrdn이 2023년 7월에 관리권을 인수한 이후로 배당금은 약 54% 증가했습니다.
추가로, 기금 이사회는 공매도 주식 재매입 프로그램을 승인하여 12개월 동안 최대 10%의 유통 주식을 재매입할 수 있도록 하였습니다. 이 프로그램은 시장 유동성을 개선하고 장기 주주를 위한 주당 NAV를 증가시킬 가능성이 있습니다. 기금은 지방채에 투자하여 자본을 보존하면서 일반 연방 소득세가 면세인 현재 소득을 제공하고자 합니다.
Le Fonds National de Revenus Municipaux abrdn (NYSE American: VFL) a annoncé une augmentation de 10% de sa distribution mensuelle, passant de 0,045 $ à 0,05 $ par action, effective à partir du 30 septembre 2024. Ce changement élève le taux de distribution du NAV du Fonds de 4,4 % à 4,9 % et le taux de distribution du prix par action de 4,9 % à 5,4 %. Depuis qu'abrdn a pris en charge la gestion en juillet 2023, la distribution a augmenté d'environ 54%.
De plus, le Conseil du Fonds a autorisé un programme de rachat d'actions sur le marché ouvert, permettant le rachat de jusqu'à 10 % des actions en circulation au cours d'une période de 12 mois. Ce programme vise à améliorer la liquidité du marché et à augmenter potentiellement le NAV par action pour les actionnaires à long terme. Le Fonds cherche à fournir un revenu actuel exonéré d'impôt sur le revenu fédéral ordinaire tout en préservant le capital par le biais d'investissements dans des obligations municipales.
Der abrdn National Municipal Income Fund (NYSE American: VFL) hat eine Erhöhung der monatlichen Ausschüttung um 10% von $0.045 auf $0.05 pro Aktie bekannt gegeben, die ab dem 30. September 2024 wirksam wird. Diese Änderung erhöht die Ausschüttungsquote des NAV des Fonds von 4.4% auf 4.9% und die Ausschüttungsquote des Aktienkurses von 4.9% auf 5.4%. Seit abrdn im Juli 2023 die Verwaltung übernommen hat, ist die Ausschüttung um etwa 54% gestiegen.
Darüber hinaus hat der Vorstand des Fonds ein Aktienrückkaufprogramm am offenen Markt genehmigt, das den Rückkauf von bis zu 10% der ausstehenden Aktien innerhalb eines 12-Monats-Zeitraums ermöglicht. Dieses Programm zielt darauf ab, die Marktliquidität zu verbessern und potenziell den NAV pro Aktie für langfristige Aktionäre zu erhöhen. Der Fonds strebt an, ein aktuelles Einkommen zu erzielen, das von der regulären Bundeseinkommenssteuer befreit ist, während das Kapital durch Investitionen in Kommunalanleihen erhalten bleibt.
- 10% increase in monthly distribution from $0.045 to $0.05 per share
- NAV distribution rate increased from 4.4% to 4.9%
- Share price distribution rate increased from 4.9% to 5.4%
- 54% cumulative increase in distribution since abrdn assumed management in July 2023
- Authorization of open market share repurchase program for up to 10% of outstanding shares
- None.
Insights
This announcement by abrdn National Municipal Income Fund (VFL) is positive for investors. The 10% increase in monthly distribution from
The new distribution rate of
However, investors should note that higher distributions don't necessarily indicate improved performance and could impact the fund's long-term capital preservation goal.
The abrdn National Municipal Income Fund's strategy aligns well with the current municipal bond market landscape. By focusing on tax-exempt income and capital preservation, it caters to investors seeking steady, tax-efficient returns in a volatile market.
The fund's ability to increase distributions significantly (
The open market share repurchase program is a prudent move, potentially helping to narrow the fund's discount to NAV, which stood at about
PHILADELPHIA, PA / ACCESSWIRE / September 11, 2024 / abrdn National Municipal Income Fund (NYSE American:VFL), (the "Fund"), a closed-end management investment company, announced today that it has increased its monthly distribution by
In determining the distribution rate, the Board considered the Investment Manager's views on market outlook and conditions as well as the Manager's belief that the increased distribution is sustainable.
Based on the NAV as of September 10, 2024 of
The Fund's last distribution change was announced in March 2024 when the Board approved an increase of
The Fund seeks to provide current income exempt from regular federal income tax, consistent with the preservation of capital by investing in municipal bonds.
The Fund distributes monthly all or a portion of its net investment income, including current gains, to common shareholders.
The policy is expected to provide a steady and sustainable cash distribution to Fund shareholders that may help reduce the Fund's current discount to NAV. There is no assurance that the Fund will achieve these results. Shareholders should not draw any conclusions about the Fund's investment performance from the amount of the distributions or the terms of the Fund's policy. The Fund's distribution policy is subject to modification by the Board of Trustees at any time, and there can be no guarantee that the policy will continue.
At the end of each calendar year, a Form 1099-DIV will be sent to shareholders, which will state the amount and composition of each fund's distributions and provide information with respect to their appropriate tax treatment for the prior calendar year. You should not draw any conclusions about the Fund's investment performance from the amount of the distributions
Share Repurchase Program
The Fund's Board has authorized the introduction of an open market share repurchase program. The Program allows the Fund to purchase, in the open market, its outstanding common shares, with the amount and timing of any repurchase determined at the discretion of the Fund's investment adviser. Such purchases may be made opportunistically at certain discounts to net asset value per share in the reasonable judgment of management based on historical discount levels and current market conditions. Under the terms of the Program, the Fund is permitted to repurchase up to
In approving the authorization to establish a share repurchase policy, the Board considered, among other things, the improvement such a policy is likely to have on market liquidity and the potential accretion to the per share NAV for long-term shareholders.
Circular 230 disclosure: To ensure compliance with requirements imposed by the U.S. Treasury, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited.
Closed-end funds are traded on the secondary market through one of the stock exchanges. A Fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund's portfolio. There is no assurance that a Fund will achieve its investment objective. Past performance does not guarantee future results.
###
For More Information Contact:
abrdn U.S. Closed-End Funds
Investor Relations
1-800-522-5465
Investor.Relations@abrdn.com
SOURCE: abrdn National Municipal Income Fund
View the original press release on accesswire.com
FAQ
What is the new monthly distribution amount for VFL?
When will the increased distribution for VFL take effect?
How much has VFL's distribution increased since abrdn assumed management?
What is the purpose of VFL's new share repurchase program?
How many shares can VFL repurchase under the new program?
