PHILADELPHIA, PA / ACCESSWIRE / March 13, 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 20%, from $0.0375 per share to $0.0450 per share, commencing with the distribution payable on April 30,2024 to shareholders of record as of April 23, 2024 (ex-dividend date April 22, 2024).
The Fund intends to maintain the increased monthly distribution level of $0.0450 per share for at least the next 12 months unless there is significant and unforeseen change in market conditions. 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 and, based on current forecasts, should be fully supported by the anticipated earnings of the portfolio.
Based on the NAV as of February 29, 2024 of $12.05 this rate change increases the Fund's NAV distribution rate from 3.7% to 4.5%, an increase of approximately 20%. Based on the share price as of February 29, 2024 of $10.27this would equate to an increased share price distribution rate increase from 4.4% to 5.3%.
Under abrdn's management of the Fund, the weighting of below investment grade securities has been reduced while at the same time, the earnings yield of the portfolio has been increased, which has increased the Fund's monthly earnings and improved the credit quality of the portfolio. The Fund's last distribution change was announced in December 2023 when the Board approved an increase of 15%. Since abrdn assumed management of the Fund on July 7, 2023, the distribution has been cumulatively increased by approximately 38.5%.
Over the last three months, from December 1, 2023 to February 29, 2024, the Fund ranks in the top quintile in terms of total return NAV performance relative to its US closed-end high yield Morningstar category.
The latest available performance figures have been calculated net-of-fees in U.S. dollars for the period:
Cumulative and Annualized Total Return Performance as of 2/29/2024 | ||||||||
1-month |
3-month |
YTD |
1-year (p.a.) |
3-year (p.a.) |
5-year (p.a.) |
10-year (p.a.) |
Since Inception (p.a.) |
|
Market Price |
1.45% |
9.13% |
1.33% |
2.36% |
-3.24% |
0.89% |
3.17% |
3.85% |
NAV |
0.12% |
6.26% |
0.07% |
8.79% |
-2.08% |
1.42% |
3.64% |
4.28% |
|
Bloomberg Municipal Bond Index |
0.13% |
1.93% |
-0.38% |
5.40% |
-0.21% |
1.91% |
2.67% |
n/a |
Past Performance is no guarantee of future results. Investment returns and principal value will fluctuate and shares, when sold, may be worth more or less than original cost. Current performance may be lower or higher than the performance quoted. NAV return data includes investment management fees, custodial charges, and administrative fees (such as Director and legal fees) and assumes the reinvestment of all distributions. The Fund is subject to investment risk, including the possible loss of principal. Returns for periods less than one year are not annualized. abrdn Inc. assumed responsibility for the management of the Fund as investment adviser on July 10, 2023. Performance prior to this date reflects the performance of an unaffiliated investment adviser.
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.
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.
Important Information: In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, abrdn Asia Limited, abrdn Private Equity (Europe) Limited, and abrdn ETFs Advisors LLC.
Closed-end funds are traded on the secondary market through one of the stock exchanges. The 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 the Fund will achieve its investment objective. Past performance does not guarantee future results.
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For More Information Contact:
abrdnU.S. Closed-End Funds Investor Relations
1-800-522-5465
Investor.Relations@abrdn.com
SOURCE: abrdn National Municipal Income Fund
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