Abrdn National Municipal Income Fund Announces 10% Increase in Distribution Rate and Share Repurchase Program

Philadelphia, PA / ACCESSWIRE / September 11, 2024 / abrdn National Municipal Income Fund (NYSE American: VFL), a closed-end management investment company, has announced a 10% increase in its monthly distribution, raising it from $0.045 per share to $0.05 per share. This change is effective from the distribution payable on September 30, 2024, to shareholders of record as of September 23, 2024 (ex-dividend date September 23, 2024).

The Board evaluated the Investment Manager's view on market conditions in deciding on the new distribution rate. As of September 10, 2024, the Fund's NAV distribution rate increased from 4.4% to 4.9%, while the share price distribution rate moved from 4.9% to 5.4%.

The Fund's last distribution change was in March 2024, with a prior increase of 20%. Since abrdn took over management in July 2023, the distribution rate has risen cumulatively by 54%. The Fund aims to provide current income exempt from regular federal income tax by investing in municipal bonds.

The Board has also authorized an open market share repurchase program, permitting up to 10% repurchase of outstanding shares within a 12-month period from September 30 of the prior year. This move aims to enhance market liquidity and potentially boost NAV for long-term shareholders.