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Monthly Portfolio Update from AllianceBernstein National Municipal Income Fund

On October 26, 2026, the AllianceBernstein National Municipal Income Fund, Inc. (NYSE: AFB) published its monthly portfolio update, providing investors with valuable insights into its holdings as of September 30, 2026. This closed-end investment company is dedicated to management and growth within municipal bonds, and this report sheds light on its current investment strategy and performance metrics.

Key Highlights of Portfolio Holdings

The portfolio comprises several notable investments, with the top ten fixed-income holdings reflecting a diverse range of municipal securities. Among the leading assets is the San Francisco International Airport Series 2026-2, which constitutes approximately 3.91% of the portfolio, offering a yield of 5.50% secured by the airport's revenue streams. Other significant holdings include bonds from the Melissa Independent School District, Commonwealth of Massachusetts, and Oklahoma Turnpike Authority, illustrating a balanced approach toward both educational and infrastructural investments.

These holdings represent a commitment to both public service and community development, with allocations towards educational institutions and critical infrastructure. The complete list indicates that the Fund is not just focused on return but is also attuned to the stability that comes from investing in public sector projects.

Sector and Industry Breakdown

The report also elaborates on the sector allocations within the portfolio. Airport revenue stands out as the dominant sector, commanding 15.47% of the total investments, followed by healthcare and toll roads. This distribution reflects a strategic choice to focus on essential services, which tend to offer more resilience against economic downturns.

Further, the education sector, spanning both primary and secondary education, accounts for a combined 4.31% of the portfolio. This underscores the Fund's dedication to supporting the educational infrastructure, which is vital for long-term community growth. The report details how investments in healthcare not-for-profits also hold a noteworthy place, illustrating the Fund's focus on social responsibility while achieving returns.

Geographic and Credit Quality Diversification

The geographical diversity of the portfolio is another aspect highlighted in the update. California, Texas, and Florida emerge as the top three states by investment allocation, indicating a broad geographical reach across economically vibrant regions.

In terms of credit quality, the portfolio maintains a robust structure, with 39.40% rated as AA, reducing overall risk exposure while maximizing potential yield. The mix of AAA, AA, and A rated securities ensures that the Fund is well-positioned to navigate shifts in the credit market. Additionally, maintaining a minor allocation in lower-rated bonds allows for capturing higher yield potential with an acceptable risk balance.

Portfolio Statistics and Future Outlook

As of now, the Fund's total net assets amount to $301.71 million, with an average maturity of 22.39 years and an effective duration of 17.13 years, which indicates that it is taking a long-term view on its interest rate exposure. The reported average coupon stands at 5.74%, showcasing a favorable yield from its chosen allocations.

The board also discussed leverage strategies, wherein total fund leverage stands at 45.19%, attributable to various financial instruments used within permissible limits. This suggests an active management approach while ensuring safety and compliance with investment guidelines.

Conclusion

The monthly portfolio update from the AllianceBernstein National Municipal Income Fund reflects not only the current financial health but also the strategic direction aimed at balancing social responsibilities with investor expectations. As more updates are anticipated, stakeholders will be keen to see how the Fund adapts to the changing economic landscape while maintaining its commitment to community investments.