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Neuberger Berman Municipal Fund Monthly Distribution Announcement

On December 15, 2025, Neuberger Berman Municipal Fund Inc. (NYSE American: NBH) declared a monthly distribution of $0.05417 per share of its common stock. This payment is scheduled for January 15, 2026, and investors should note that the record date for this distribution is set for December 31, 2025, making it crucial for shareholders to hold shares by this date to qualify for the payout.

The Neuberger Berman Municipal Fund aims to offer income that is generally exempt from federal income tax, which adds considerable appeal for investors seeking tax-efficient investment options. However, it’s important for shareholders to be aware that distributions from the Fund might be subject to the federal alternative minimum tax, affecting some investors differently.

In line with its distribution policy, the Fund’s payments can be composed of various income sources: net investment income, realized capital gains, or return of capital. Should the Fund disburse more than its net investment income over a given period, there’s a possibility that the distributions would include capital gains and/or a return of capital—an essential factor to consider for shareholders. Notably, if a distribution includes a return of capital, the Net Asset Value (NAV) per share might decline, which could impact the cost basis of shares held by an investor.

To comply with regulatory standards, specifically Section 19 of the Investment Company Act of 1940 and its amendments, the Fund will provide notification for any distributions that do not strictly consist of net investment income. This notification will serve an informational purpose rather than tax reporting and will outline estimated portions of the distribution, emphasizing net investment income, capital gains, and any applicable return of capital.

The final characterization of distribution sources for payments made in 2026 will be set out after the end of that year, ensuring clarity and compliance for investors nurturing their financial strategies in the growing landscape of investments.

About Neuberger Berman

Neuberger Berman, established in 1939, prides itself on being an employee-owned firm, independent in its operations and guidance. The company has grown to encompass more than 2,900 employees across 26 countries, managing an impressive $558 billion in portfolios that include equities, fixed-income securities, private equity ventures, real estate investments, and hedge fund arrangements. Neuberger Berman is recognized for its investment philosophy anchored in active management, fundamental research, and stakeholder engagement. The firm has consistently ranked at the top of the list for the Best Place to Work in Money Management, according to Pensions & Investments.

For additional insights, visit Neuberger Berman's official website and learn more about their approach and accolades.

Key Considerations for Investors

As Neuberger Berman Municipal Fund approaches its distribution highlight in January, investors need to remain aware of the complexities involved in investment distributions, particularly with variable components like capital gains and returns of capital. Staying informed can significantly influence one’s investment decisions, especially concerning tax liabilities and long-term portfolio strategy. Given the shifting economic and market dynamics, investors should engage in careful planning to maximize investment returns amidst the complexities of investment products.

In summary, as Neuberger Berman continues to navigate through evolving market landscapes, their commitment to transparency and stakeholder engagement remains pivotal. Ensure that you are proactive in understanding both the benefits and obligations tied to your investments within the Fund and make informed decisions moving forward.