Form N-CSR NEUBERGER MUNICIPAL FUND For: Oct 31
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E-mailAs filed with the Securities and Exchange Commission on January 2, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-21168
NEUBERGER MUNICIPAL FUND INC.
(Exact Name of Registrant as specified in charter)
c/o Neuberger Berman Investment Advisers LLC
1290 Avenue of the Americas
New York, New York 10104-0002
(Address of Principal Executive Offices – Zip Code)
Joseph V. Amato
Chief Executive Officer and President
Neuberger Municipal Fund Inc.
c/o Neuberger Investment Advisers LLC
1290 Avenue of the Americas
New York, New York 10104-0002
New York, New York 10104-0002
Lori L. Schneider, Esq.
K&L Gates LLP
1601 K Street, N.W.
Washington, D.C. 20006-1600
(Names and Addresses of agents for service)
Registrant’s telephone number, including area code: (212) 476-8800
Date of fiscal year end: October 31
Date of reporting period: October 31, 2025
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is
required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Act”) (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the
collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any
suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Report to Stockholders.
(a) Following is a copy of the annual report transmitted to stockholders pursuant to Rule 30e-1 under the Act.
Neuberger
Municipal Fund Inc.*
Municipal Fund Inc.*
Annual Report
October 31, 2025
* Prior to December 18, 2025, the Fund included "Neuberger Berman" in place of "Neuberger"
in its name.
Contents
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1
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2
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7
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21
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24
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30
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32
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33
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40
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43
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44
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54
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54
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55
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56
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62
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The "Neuberger Berman" and "Neuberger" names and logos and "Neuberger Berman Investment
Advisers LLC" name are registered service marks of Neuberger Berman Group LLC. The individual Fund name in this piece is either a service mark or registered
service mark of Neuberger Berman Investment Advisers LLC. ©2025 Neuberger Berman Investment Advisers LLC. All rights reserved.
President’s Letter
Dear Stockholder,
I am pleased to present this annual report for Neuberger Municipal Fund Inc. (the
Fund) for the 12 months ended October 31, 2025 (the reporting period). The report includes a portfolio commentary, a listing of the Fund’s investments and its audited financial statements for the reporting period.
The Fund’s investment objective is to provide a high level of current income exempt from federal income tax. The Fund may invest in securities the interest on which is subject to the federal alternative
minimum tax. We maintain a conservative investment philosophy and disciplined investment process in an effort
to provide you with tax-exempt current income over the long term with less volatility and risk.
Thank you for your confidence in the Fund. We will continue to do our best to retain
your trust in the years to come.
Sincerely,
Joseph V. Amato
President and CEO
Neuberger Municipal Fund Inc.
President and CEO
Neuberger Municipal Fund Inc.
1
Neuberger Municipal Fund Inc. Portfolio Commentary (Unaudited)
Neuberger Municipal Fund Inc. (the Fund) generated a 2.24% total return on a net asset
value (NAV) basis for the 12-months ended October 31, 2025 (the reporting period), versus a 5.72% total return
for its benchmark, the Bloomberg 10-Year Municipal Bond Index (the Index). (Fund performance on a market
price basis is provided in the table immediately following this commentary.) The use of leverage (typically a
performance enhancer in up markets and a detractor during market retreats) contributed positively to the Fund’s performance during the reporting period.
The investment-grade municipal (muni) bond market generated a positive return but
underperformed the taxable investment-grade bond market during the reporting period. All told, the Bloomberg
Municipal Bond Index returned 4.17% for the reporting period, whereas the overall taxable investment-grade
bond market, as measured by the Bloomberg U.S. Aggregate Bond Index, returned 6.16%. The fixed income
market was impacted by a number of factors, including signs of strain in the U.S. labor market, moderating
but still "sticky" inflation, several Federal Reserve Board rate cuts and the potential impact from the Trump administration’s tariffs.
In terms of the Fund’s results, yield curve positioning was the largest detractor from performance, as we maintained a barbelled approach, whereas the benchmark is bulleted in the intermediate
portion of the curve. An allocation to revenue bonds was also a headwind, as they lagged their general obligation
counterparts. Finally, several of the Fund’s small project-specific securities negatively impacted returns. On the upside, duration positioning contributed to performance. In particular, having a duration that was
longer than the Index was beneficial as rates moved lower over the reporting period. There were no significant changes to the Fund’s portfolio during the reporting period.
Looking ahead, we believe rate volatility will moderate as tariff policy comes into
clearer focus. We also believe that municipal supply will continue to be elevated, which may cause municipal yields
to remain elevated relative to taxable equivalents. In our view, that backdrop may be ideal for our approach to investing,
which revolves around using a large broker-dealer network to locate mispriced securities. In effect, we
find ourselves in a bond-pickers market. We recognize that the recent market environment has been difficult, but we
anticipate more deals and secondary market opportunities to offer price concessions. In our opinion, we are
moving into a period where active management could be rewarded.
Sincerely,
James L. Iselin and S. Blake Miller
Portfolio Co-Managers
Portfolio Co-Managers
The portfolio composition, industries and holdings of the Fund are subject to change
without notice.
The opinions expressed are those of the Fund's portfolio managers. The opinions are
as of the date of this report and are subject to change without notice.
The value of securities owned by the Fund, as well as the market value of shares of the Fund’s common stock, may decline in response to certain events, including those directly involving the issuers whose securities are
owned by the Fund; conditions affecting the general economy; overall market changes; local, regional, national or global political, social
or economic instability; regulatory or legislative developments; price and interest rate fluctuations, including those resulting from
changes in central bank policies; and changes in investor sentiment.
2
Municipal Fund Inc. (Unaudited)
|
TICKER SYMBOL
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Municipal Fund Inc.
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NBH
|
|
PORTFOLIO BY STATE,
TERRITORY OR SECTOR
|
|
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(as a % of Total Investments*)
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Alabama
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3.1
%
|
|
American Samoa
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0.5
|
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Arizona
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0.5
|
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California
|
14.8
|
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Colorado
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1.0
|
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Connecticut
|
1.7
|
|
District of Columbia
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0.2
|
|
Florida
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2.8
|
|
Georgia
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2.1
|
|
Guam
|
0.8
|
|
Illinois
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6.0
|
|
Indiana
|
0.4
|
|
Kansas
|
0.1
|
|
Kentucky
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0.3
|
|
Louisiana
|
2.1
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|
Maine
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0.2
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Maryland
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0.1
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Massachusetts
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1.1
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Michigan
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1.1
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Minnesota
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0.4
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Mississippi
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0.4
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Missouri
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0.4
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Nebraska
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2.0
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Nevada
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0.1
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New Hampshire
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0.1
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New Jersey
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3.4
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New Mexico
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0.3
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New York
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19.9
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North Carolina
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1.2
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Ohio
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5.3
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Oregon
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0.3
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Pennsylvania
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3.1
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Puerto Rico
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3.8
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South Carolina
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1.5
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Tennessee
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0.7
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Texas
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6.9
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Utah
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1.7
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Vermont
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0.3
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Virginia
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0.7
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Washington
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0.9
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West Virginia
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0.8
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Wisconsin
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6.9
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Total
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100.0
%
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*
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Does not include the impact of the Fund’s
open positions in derivatives, if any.
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PERFORMANCE HIGHLIGHTS1
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|||||
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Inception
Date
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Average Annual Total Return
Ended 10/31/2025
|
|||
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1 Year
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5 Years
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10 Years
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Life of Fund
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|
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At NAV2
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|||||
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Municipal
Fund Inc.
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09/24/2002
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2.24%
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0.11%
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2.06%
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4.54%
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At Market Price3
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|||||
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Municipal
Fund Inc.
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09/24/2002
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1.33%
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-1.08%
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1.23%
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3.88%
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Index
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Bloomberg 10-Year
Municipal Bond Index4
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5.72%
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1.36%
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2.60%
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3.84%
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|
Listed closed-end funds, unlike open-end funds, are not continually offered. Generally,
there is an initial public offering and, once issued, shares of common stock of closed-end
funds are sold in the secondary market on a stock exchange.
The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For current performance data, please visit www.nb.com/cef-performance.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a stockholder would pay on Fund distributions or on the sale of shares of the Fund's common stock.
The investment return and market price will fluctuate and shares of the Fund’s common stock may trade at prices above or below NAV. Shares of the Fund’s common stock, when sold, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA")
had not waived a portion of its investment management fees during certain of the periods shown. The waived fees are from prior years that are no longer disclosed in
the Financial Highlights.
3
Municipal Fund Inc. (Unaudited)
COMPARISON OF A $10,000 INVESTMENT
This graph shows the change in value of a hypothetical $10,000 investment in the Fund
over the past 10 fiscal years. The graph is based on the Fund’s shares of common stock both at net asset value (NAV) and at market price. The Fund’s common stock may trade at market prices above or below NAV per share (see Performance Highlights chart). The result is compared
with a broad-based market index. The market index has not been reduced to reflect any of the fees and costs of investing. The results
shown in the graph reflect the reinvestment of income dividends and other distributions, if any, at prices obtained under the Fund’s Distribution Reinvestment Plan. The results do not reflect the effect of taxes a stockholder would pay on Fund distributions or on the sale of Fund
shares. Results represent past performance and do not indicate future results.
Impact of the Fund’s Distribution Policy
The Fund has a practice of seeking to maintain a relatively stable level of distributions
to common stockholders. In general, this practice does not affect the Fund’s investment strategy and may reduce the Fund’s NAV. Management believes the practice helps maintain the Fund’s competitiveness and may benefit the Fund’s market price and its premium/discount to the Fund’s NAV per share. During the 12-month period ended October 31, 2025, the Fund made distributions to common stockholders totaling
$0.65 per share, of which $0.15 will be treated as a return of capital for tax purposes.
4
Endnotes (Unaudited)
|
1
|
A portion of the Fund’s income may be a tax preference item for purposes of the federal alternative
minimum tax for certain stockholders.
|
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2
|
Returns based on the NAV of the Fund.
|
|
3
|
Returns based on the market price of shares of the Fund’s common stock on the NYSE American.
|
|
4
|
The Bloomberg 10-Year Municipal Bond Index is the 10-year (8-12 years to maturity)
component of the
Bloomberg Municipal Bond Index. The Bloomberg Municipal Bond Index measures the investment
grade,
U.S. dollar-denominated, long-term, tax-exempt bond market and has four main sectors:
state and local
general obligation bonds, revenue bonds, insured bonds and prerefunded bonds. Please
note that the index
does not take into account any fees and expenses or any tax consequences of investing
in the individual
securities that it tracks and that individuals cannot invest directly in any index.
Data about the performance
of this index are prepared or obtained by NBIA and include reinvestment of all income
dividends and other
distributions, if any. The Fund may invest in securities not included in the above
described index and
generally does not invest in all securities included in the index.
|
For more complete information on Neuberger Municipal Fund Inc., call Neuberger Berman
Investment Advisers LLC at (877) 461-1899, or visit our website at www.nb.com.
5
Legend October 31, 2025 (Unaudited)
Neuberger Municipal Fund Inc.
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Other Abbreviations:
|
|
|
Management or NBIA
|
= Neuberger Berman Investment Advisers LLC
|
6
Schedule of Investments Municipal Fund Inc.^
October 31, 2025
|
Principal Amount
|
Value
|
|
|
Municipal Notes 165.8%
|
||
|
Alabama 5.2%
|
||
|
$3,125,000
|
Energy Southeast A Cooperative District Revenue, Series 2023 A-1, 5.50%, due 11/1/2053
Putable
1/1/2031
|
$3,447,531
|
|
9,000,000
|
Mobile County Industrial Development Authority Revenue (AM/NS Calvert LLC Project),
Series 2024-A, 5.00%, due 6/1/2054
|
8,731,051
|
|
5,000,000
|
Southeast Energy Authority A Cooperative District Revenue, Series 2025-A, 5.00%, due
1/1/2056
Putable 6/1/2035
|
5,352,573
|
|
|
|
17,531,155
|
|
American Samoa 0.8%
|
||
|
2,800,000
|
American Samoa Economic Development Authority General Revenue Refunding, Series 2015-A,
6.25%, due 9/1/2029
|
2,805,317
|
|
Arizona 0.8%
|
||
|
500,000
|
Maricopa County Industrial Development Authority Education Revenue Refunding (Paradise
School
Project Paragon Management, Inc.), Series 2016, 5.00%, due 7/1/2036
|
500,890
(a)
|
|
770,000
|
Navajo Nation Revenue Refunding, Series 2015-A, 5.00%, due 12/1/2025
|
770,462
(a)
|
|
1,500,000
|
Sierra Vista Industrial Development Authority Revenue (American Leadership Academy
Project),
Series 2024, 5.00%, due 6/15/2054
|
1,373,849
(a)
|
|
|
|
2,645,201
|
|
California 24.6%
|
||
|
1,000,000
|
California Educational Facilities Authority Revenue (Green Bond- Loyola Marymount
University),
Series 2018-B, 5.00%, due 10/1/2048
|
1,021,474
|
|
|
California Educational Facilities Authority Revenue Refunding (University of Redlands)
|
|
|
250,000
|
Series 2016-A, 5.00%, due 10/1/2028
|
251,554
|
|
260,000
|
Series 2016-A, 3.00%, due 10/1/2029
|
252,922
|
|
400,000
|
Series 2016-A, 3.00%, due 10/1/2030
|
386,285
|
|
480,000
|
California Infrastructure & Economic Development Bank Revenue (Wonderful Foundations
Charter
School Portfolio Project), Series 2020-A-1, 5.00%, due 1/1/2055
|
415,560
(a)
|
|
|
California Municipal Finance Authority Charter School Lease Revenue (Sycamore Academy
Project)
|
|
|
630,000
|
Series 2014, 5.13%, due 7/1/2029
|
630,238
(a)
|
|
1,000,000
|
Series 2014, 5.63%, due 7/1/2044
|
994,534
(a)
|
|
760,000
|
California Municipal Finance Authority Charter School Lease Revenue (Vista Charter
Middle School
Project), Series 2014, 5.13%, due 7/1/2029
|
760,317
|
|
1,115,000
|
California Municipal Finance Authority Charter School Revenue (John Adams Academics
Project),
Series 2019-A, 5.00%, due 10/1/2049
|
1,017,868
(a)
|
|
1,500,000
|
California Municipal Finance Authority Charter School Revenue (Palmdale Aerospace
Academy
Project), Series 2016, 5.00%, due 7/1/2031
|
1,501,349
(a)
|
|
1,070,000
|
California Municipal Finance Authority Revenue (Baptist University), Series 2015-A,
5.00%, due
11/1/2030
|
1,070,804
(a)
|
|
|
California Municipal Finance Authority Revenue (Northbay Healthcare Group)
|
|
|
350,000
|
Series 2015, 5.00%, due 11/1/2035
|
350,093
|
|
500,000
|
Series 2015, 5.00%, due 11/1/2040
|
499,988
|
|
300,000
|
Series 2015, 5.00%, due 11/1/2044
|
295,864
|
|
500,000
|
Series 2017-A, 5.25%, due 11/1/2036
|
503,675
|
|
2,000,000
|
California Municipal Finance Authority Student Housing Revenue (CHF-Davis I LLC-West
Village
Student Housing Project), Series 2018, (BAM), 4.00%, due 5/15/2048
|
1,859,783
|
|
1,500,000
|
California School Facility Finance Authority Revenue (Green Dot Public School Project),
Series 2018-A,
5.00%, due 8/1/2048
|
1,502,241
(a)
|
|
400,000
|
California School Finance Authority Revenue (Alliance College - Ready Public School
Project),
Series 2015-A, 5.00%, due 7/1/2030
|
400,464
(a)
|
|
1,000,000
|
California State General Obligation, Series 2022, 5.00%, due 9/1/2052
|
1,052,160
|
See Notes to Financial Statements
7
Schedule of Investments Municipal Fund Inc.^ (cont’d)
|
Principal Amount
|
Value
|
|
|
California – cont'd
|
||
|
$2,000,000
|
California State Pollution Control Financing Authority Revenue (San Jose Water Co.
Project),
Series 2016, 4.75%, due 11/1/2046
|
$1,983,873
|
|
2,549,157
|
California State Pollution Control Financing Authority Solid Waste Disposal Revenue
(Calplant I Green
Bond Project), Series 2019, 7.50%, due 12/1/2039
|
25
(a)(b)
|
|
2,760,000
|
California State Pollution Control Financing Authority Water Furnishing Revenue, Series
2012,
5.00%, due 7/1/2027
|
2,765,316
(a)
|
|
415,000
|
California State School Finance Authority Charter School Revenue (Downtown College
Prep-Obligation Group), Series 2016, 4.50%, due 6/1/2031
|
249,000
(a)(b)
|
|
400,000
|
California State School Finance Authority Charter School Revenue (Rocketship Education),
Series 2016-A, 5.00%, due 6/1/2031
|
392,814
(a)
|
|
1,325,000
|
California Statewide Communities Development Authority Hospital Revenue (Methodist
Hospital of
Southern Project), Series 2018, 4.25%, due 1/1/2043
|
1,327,216
|
|
500,000
|
California Statewide Communities Development Authority Revenue (Loma Linda University
Medical
Center), Series 2018-A, 5.50%, due 12/1/2058
|
501,838
(a)
|
|
600,000
|
California Statewide Communities Development Authority Revenue Refunding (Lancer Education
Student Housing Project), Series 2016-A, 5.00%, due 6/1/2036
|
601,935
(a)
|
|
1,230,000
|
California Statewide Communities Development Authority Revenue Refunding (Loma Linda
University
Medical Center), Series 2014-A, 5.25%, due 12/1/2029
|
1,231,107
|
|
1,500,000
|
California Statewide Communities Development Authority Revenue Refunding (Redlands
Community
Hospital), Series 2016, 4.00%, due 10/1/2041
|
1,459,259
|
|
500,000
|
California Statewide Communities Development Authority Student Housing Revenue Refunding
(Baptist University), Series 2017-A, 5.00%, due 11/1/2032
|
509,869
(a)
|
|
1,500,000
|
Foothill-Eastern Transportation Corridor Agency Toll Road Revenue Refunding, Subseries
2014-B2,
3.50%, due 1/15/2053
|
1,246,355
|
|
120,000
|
Inglewood Unified School District Facilities Financing Authority Revenue, Series 2007,
(AG), 5.25%,
due 10/15/2026
|
122,131
|
|
|
Irvine Special Tax (Community Facility District No. 2005-2)
|
|
|
645,000
|
Series 2013, 3.50%, due 9/1/2026
|
646,014
|
|
690,000
|
Series 2013, 3.63%, due 9/1/2027
|
690,946
|
|
1,775,000
|
Los Angeles Department of Airports Revenue, Series 2022-G, 4.00%, due 5/15/2047
|
1,642,229
|
|
500,000
|
Los Angeles Department of Water & Power Revenue Refunding, Series 2025-A, (BAM), 5.00%,
due
7/1/2053
|
524,192
|
|
3,000,000
|
North Orange County Community College District General Obligation, Series 2022-C,
4.00%, due
8/1/2047
|
2,925,990
|
|
5,125,000
|
Norwalk-La Mirada Unified School District General Obligation Capital Appreciation
(Election 2002),
Series 2009-E, (AG), 5.50%, due 8/1/2029
|
5,484,385
|
|
5,000,000
|
Redondo Beach Unified School District General Obligation, Series 2009, 6.38%, due
8/1/2034
Pre-Refunded 8/1/2026
|
5,139,148
|
|
|
Romoland School District Special Tax Refunding (Community Facilities District No.
2006-1)
|
|
|
100,000
|
Series 2017, 4.00%, due 9/1/2029
|
101,156
|
|
200,000
|
Series 2017, 4.00%, due 9/1/2030
|
202,190
|
|
525,000
|
Series 2017, 3.25%, due 9/1/2031
|
520,926
|
|
1,700,000
|
Sacramento Area Flood Control Agency Refunding (Consol Capital Assessment District
No. 2),
Series 2016-A, 5.00%, due 10/1/2047
|
1,693,790
|
|
400,000
|
Sacramento City Finance Authority Revenue Refunding (Master Lease Program Facilities),
Series 2006-E, (AMBAC), 5.25%, due 12/1/2026
|
411,715
|
|
500,000
|
Sacramento Special Tax (Natomas Meadows Community Facilities District No. 2007-01),
Series 2017,
5.00%, due 9/1/2047
|
502,780
(a)
|
|
2,000,000
|
San Luis Coastal Unified School District General Obligation (Election 2022), Series
2023-A, 4.00%,
due 8/1/2053
|
1,925,862
|
|
6,000,000
|
San Mateo Foster City School District General Obligation Capital Appreciation (Election
2008),
Series 2010, 6.13%, due 8/1/2032
|
6,631,772
|
|
2,000,000
|
Twin Rivers Unified School District General Obligation (Election 2022), Series 2023-A,
(BAM), 4.13%,
due 8/1/2047
|
1,958,753
|
See Notes to Financial Statements
8
Schedule of Investments Municipal Fund Inc.^ (cont’d)
|
Principal Amount
|
Value
|
|
|
California – cont'd
|
||
|
$12,070,000
|
Victor Valley Community College District General Obligation Capital Appreciation (Election
2008),
Series 2009-C, 6.88%, due 8/1/2037
|
$13,775,543
|
|
5,095,000
|
Victor Valley Joint Union High School District General Obligation Capital Appreciation
Bonds,
Series 2009, (AG), 0.00%, due 8/1/2026
|
4,997,120
|
|
5,250,000
|
Wiseburn School District General Obligation Capital Appreciation (Election 2010),
Series 2011-B,
(AG), 0.00%, due 8/1/2036
|
6,137,107
(c)(d)
|
|
|
|
83,069,529
|
|
Colorado 1.6%
|
||
|
1,103,000
|
Platte River Metropolitan District General Obligation Refunding, Series 2023-A, 6.50%,
due 8/1/2053
|
1,126,022
(a)
|
|
2,665,000
|
Pueblo Urban Renewal Authority Tax Increment Revenue (Evraz Project), Series 2021-A,
4.75%, due
12/1/2045
|
2,533,117
(a)
|
|
4,566,666
|
Villages at Castle Rock Metropolitan District No. 6 (Cabs - Cobblestone Ranch Project),
Series 2007-2,
0.00%, due 12/1/2037
|
1,791,512
|
|
|
|
5,450,651
|
|
Connecticut 2.8%
|
||
|
4,585,000
|
Norwalk Housing Authority Revenue (Monterey Village Apartments), Class PT, Series
2024, (FNMA),
4.40%, due 9/1/2042
|
4,673,011
|
|
1,000,000
|
Stamford Housing Authority Revenue Refunding (Mozaic Concierge Living Project), Series
2025-D,
6.50%, due 10/1/2055
|
1,020,135
|
|
3,710,000
|
Waterbury Housing Authority Revenue (Laurel Estates Preservation Project), Series
2025-A, (FHLMC),
(HUD), 4.50%, due 2/1/2042
|
3,841,135
|
|
|
|
9,534,281
|
|
District of Columbia 0.3%
|
||
|
200,000
|
Deutsche Bank Spears/Lifers Trust Revenue, (LOC: Deutsche Bank A.G.), Series 2020-DBE-8070,
3.62%, due 8/1/2040
|
200,000
(a)(e)
|
|
650,000
|
District of Columbia Student Dormitory Revenue (Provident Group-Howard Property),
Series 2013,
5.00%, due 10/1/2045
|
611,268
|
|
|
|
811,268
|
|
Florida 4.7%
|
||
|
800,000
|
Capital Trust Agency Senior Living Revenue (H-Bay Ministries, Inc. Superior Residences-Third
Tier),
Series 2018-C, 7.50%, due 7/1/2053
|
18,000
(a)(b)
|
|
2,000,000
|
Capital Trust Agency Senior Living Revenue (Wonderful Foundations School Project),
Series 2020-A-1,
5.00%, due 1/1/2055
|
1,695,148
(a)
|
|
270,000
|
Cityplace Community Development District Special Assessment Revenue Refunding, Series
2012,
5.00%, due 5/1/2026
|
271,885
|
|
1,420,000
|
Florida Development Finance Corp. Education Facilities Revenue (Renaissance Charter
School, Inc.),
Series 2014-A, 5.75%, due 6/15/2029
|
1,421,189
(a)
|
|
1,075,000
|
Florida Development Finance Corp. Education Facilities Revenue Refunding (Pepin Academies,
Inc.),
Series 2016-A, 5.00%, due 7/1/2036
|
1,066,749
|
|
3,400,000
|
Florida Development Finance Corp. Revenue (Tampa General Hospital Project), Series
2024-A, 4.50%,
due 8/1/2055
|
3,216,570
|
|
2,000,000
|
Lee County Airport Revenue, Series 2024, 5.25%, due 10/1/2049
|
2,077,885
|
|
4,000,000
|
Orange County Health Facilities Authority Revenue (Orlando Health Obligated Group),
Series 2025-A,
4.50%, due 10/1/2056
|
3,905,967
|
|
660,000
|
Village Community Development District No. 11 Special Assessment Revenue, Series 2014,
4.13%,
due 5/1/2029
|
657,989
|
|
945,000
|
Village Community Development District No. 13 Special Assessment Revenue, Series 2019,
3.70%,
due 5/1/2050
|
771,065
|
|
700,000
|
Village Community Development District No. 15 Special Assessment Revenue, Series 2024,
4.80%,
due 5/1/2055
|
666,557
(a)
|
|
|
|
15,769,004
|
See Notes to Financial Statements
9
Schedule of Investments Municipal Fund Inc.^ (cont’d)
|
Principal Amount
|
Value
|
|
|
Georgia 3.4%
|
||
|
$700,000
|
Atlanta Development Authority Revenue (Westside Gulch Area Project), Series 2024-A,
5.50%, due
4/1/2039
|
$719,164
(a)
|
|
2,000,000
|
Atlanta Urban Residential Finance Authority Revenue, Series 2024-A, (FNMA), 4.85%,
due 9/1/2043
|
2,132,350
|
|
|
Main Street Natural Gas, Inc. Gas Supply Revenue
|
|
|
6,000,000
|
Series 2022-C, 4.00%, due 8/1/2052 Putable 11/1/2027
|
6,034,047
(a)
|
|
1,600,000
|
Series 2024-C, 5.00%, due 12/1/2054 Putable 12/1/2031
|
1,721,612
|
|
1,000,000
|
Savannah Georgia Convention Center Authority Revenue (Convention Center Hotel-Second
Tier),
Series 2025-B, 6.25%, due 6/1/2061
|
1,003,871
(a)
|
|
|
|
11,611,044
|
|
Guam 1.4%
|
||
|
|
Antonio B Won Pat International Airport Authority Revenue Refunding
|
|
|
525,000
|
Series 2023-A, 5.38%, due 10/1/2040
|
560,359
|
|
750,000
|
Series 2023-A, 5.38%, due 10/1/2043
|
780,116
|
|
|
Guam Power Authority Revenue
|
|
|
1,000,000
|
Series 2022-A, 5.00%, due 10/1/2035
|
1,093,943
|
|
1,035,000
|
Series 2022-A, 5.00%, due 10/1/2036
|
1,117,970
|
|
1,075,000
|
Series 2022-A, 5.00%, due 10/1/2037
|
1,151,328
|
|
|
|
4,703,716
|
|
Illinois 10.0%
|
||
|
5,705,000
|
Berwyn General Obligation, Series 2013-A, 5.00%, due 12/1/2027
|
5,708,389
|
|
1,250,000
|
Chicago Midway International Airport Revenue Refunding, Series 2023-A, (BAM), 5.50%,
due
1/1/2053
|
1,312,207
|
|
|
Chicago O'Hare International Airport Revenue
|
|
|
4,100,000
|
Series 2022-A, 5.00%, due 1/1/2055
|
4,125,027
|
|
2,500,000
|
Series 2024-A, 5.50%, due 1/1/2059
|
2,640,549
|
|
3,000,000
|
Chicago Refunding General Obligation, Series 2017-A, 6.00%, due 1/1/2038
|
3,062,515
|
|
4,250,000
|
Illinois Finance Authority Revenue (CenterPoint Joliet Terminal Railroad Project),
Series 2010, 4.80%,
due 12/1/2043 Putable 7/2/2035
|
4,391,644
(a)
|
|
1,560,000
|
Illinois Finance Authority Revenue Refunding (Presence Health Network Obligated Group),
Series 2016-C, 5.00%, due 2/15/2031
|
1,600,329
|
|
|
Illinois State General Obligation
|
|
|
5,200,000
|
Series 2017-D, 5.00%, due 11/1/2028
|
5,403,868
|
|
775,000
|
Series 2021-A, 5.00%, due 3/1/2046
|
790,770
|
|
5,000,000
|
Series 2023-B, 4.50%, due 5/1/2048
|
4,788,354
|
|
|
|
33,823,652
|
|
Indiana 0.6%
|
||
|
2,000,000
|
Indianapolis Local Public Improvement Bond Bank Revenue (Convention Center Hotel),
Series 2023-E,
6.13%, due 3/1/2057
|
2,103,290
|
|
Kansas 0.2%
|
||
|
720,000
|
Goddard Kansas Sales Tax Special Obligation Revenue (Olympic Park Star Bond Project),
Series 2021,
3.50%, due 6/1/2034
|
699,648
|
|
Kentucky 0.5%
|
||
|
|
Kentucky Economic Development Finance Authority Revenue Refunding (Owensboro Health)
|
|
|
500,000
|
Series 2017-A, 5.00%, due 6/1/2041
|
502,209
|
|
1,000,000
|
Series 2017-A, 5.00%, due 6/1/2045
|
1,001,321
|
|
|
|
1,503,530
|
|
Louisiana 3.5%
|
||
|
580,583
|
Louisiana Local Government Environmental Facilities & Community Development Authority
Revenue
(Lafourche Parish Gomesa Project), Series 2019, 3.95%, due 11/1/2043
|
523,413
(a)
|
See Notes to Financial Statements
10
Schedule of Investments Municipal Fund Inc.^ (cont’d)
|
Principal Amount
|
Value
|
|
|
Louisiana – cont'd
|
||
|
$1,715,000
|
Louisiana Local Government Environmental Facilities & Community Development Authority
Revenue
Refunding (Westside Habilitation Center Project), Series 2017-A, 5.75%, due 2/1/2032
|
$1,708,578
(a)
|
|
8,000,000
|
Louisiana Public Facilities Authority Revenue (I-10 Calcasieu River Bridge), Series
2024, 5.00%, due
9/1/2066
|
7,674,908
|
|
1,885,000
|
Louisiana Stadium & Exposition District Revenue Refunding, Series 2023-A, 5.25%, due
7/1/2053
|
1,959,209
|
|
|
|
11,866,108
|
|
Maine 0.4%
|
||
|
1,300,000
|
Maine State Finance Authority Revenue (TimberHP Madison LLC), Series 2025, 8.50%,
due 6/1/2035
|
1,300,000
#(f)(g)
|
|
Maryland 0.1%
|
||
|
300,000
|
Baltimore Special Obligation Revenue Refunding Senior Lien (Harbor Point Project),
Series 2022,
5.00%, due 6/1/2051
|
300,432
|
|
Massachusetts 1.8%
|
||
|
2,900,000
|
Massachusetts Development Finance Agency Revenue (Care Communities LLC Obligated),
Series 2025-A, 6.50%, due 7/15/2060
|
2,898,752
(a)
|
|
1,200,000
|
Massachusetts Development Finance Agency Revenue (Merrimack College Student Housing
Project),
Series 2024-A, 5.00%, due 7/1/2054
|
1,145,154
(a)
|
|
2,000,000
|
Massachusetts Development Finance Agency Revenue Refunding (Suffolk University), Series
2025,
5.25%, due 7/1/2055
|
2,009,389
|
|
125,000
|
Massachusetts State Education Financing Authority Revenue, Series 2023-C, 5.00%, due
7/1/2053
|
123,818
|
|
|
|
6,177,113
|
|
Michigan 1.7%
|
||
|
|
Michigan State Building Authority Revenue (Facilities Program)
|
|
|
2,000,000
|
Series 2022-I, 5.00%, due 10/15/2047
|
2,087,749
|
|
2,880,000
|
Series 2022-I , 5.25%, due 10/15/2057
|
3,037,584
|
|
750,000
|
Michigan State Strategic Fund Ltd. Obligation Revenue (Improvement Project), Series
2018, 5.00%,
due 6/30/2048
|
737,428
|
|
|
|
5,862,761
|
|
Minnesota 0.7%
|
||
|
2,000,000
|
Minnesota Agricultural & Economic Development Board Revenue (HealthPartners Obligated
Group),
Series 2024, 5.25%, due 1/1/2054
|
2,081,414
|
|
400,000
|
Saint Paul Housing & Redevelopment Authority Charter School Lease Revenue (Metro Deaf
School
Project), Series 2018-A, 5.00%, due 6/15/2038
|
385,278
(a)
|
|
|
|
2,466,692
|
|
Mississippi 0.7%
|
||
|
1,150,000
|
Mississippi Business Finance Corp. Revenue (Chevron USA, Inc. Project), Series 2010-H,
3.90%, due
11/1/2035
|
1,150,000
(e)
|
|
1,365,000
|
Mississippi Development Bank Special Obligation (Jackson Co. Gomesa Project), Series
2021, 3.63%,
due 11/1/2036
|
1,290,831
(a)
|
|
|
|
2,440,831
|
|
Missouri 0.7%
|
||
|
|
Missouri State Health & Educational Facilities Authority Revenue Refunding (St. Louis
University)
|
|
|
1,825,000
|
(LOC: Barclays Bank PLC), Series 2008-B-1, 3.80%, due 10/1/2035
|
1,825,000
(e)
|
|
510,000
|
(LOC: Wells Fargo Bank N.A.), Series 2008-B-2, 3.75%, due 10/1/2035
|
510,000
(e)
|
|
|
|
2,335,000
|
|
Nebraska 3.3%
|
||
|
10,250,000
|
Central Plains Energy Project Revenue Refunding, Series 2023-A, 5.00%, due 5/1/2054
Putable
11/1/2029
|
10,988,918
|
See Notes to Financial Statements
11
Schedule of Investments Municipal Fund Inc.^ (cont’d)
|
Principal Amount
|
Value
|
|
|
Nevada 0.2%
|
||
|
|
Director of the State of Nevada Department of Business & Industrial Revenue (Somerset
Academy)
|
|
|
$255,000
|
Series 2015-A, 4.00%, due 12/15/2025
|
$254,765
(a)
|
|
500,000
|
Series 2015-A, 5.13%, due 12/15/2045
|
477,345
(a)
|
|
|
|
732,110
|
|
New Hampshire 0.2%
|
||
|
750,000
|
New Hampshire Business Finance Authority Revenue Refunding (Green Bond), Series 2020-B,
3.75%,
due 7/1/2045 Putable 7/2/2040
|
621,665
(a)
|
|
New Jersey 5.6%
|
||
|
250,000
|
New Jersey Economic Development Authority Revenue (The Goethals Bridge Replacement
Project),
Series 2013-A, 5.50%, due 1/1/2026
|
250,469
|
|
7,000,000
|
New Jersey State Economic Development Authority Revenue (School Facilities Construction
Program),
Series 2019, 4.00%, due 6/15/2049
|
6,486,289
|
|
|
New Jersey State Economic Development Authority School Revenue (Beloved Community
Charter,
School, Inc. Project)
|
|
|
1,105,000
|
Series 2019-A, 5.00%, due 6/15/2049
|
1,048,861
(a)
|
|
725,000
|
Series 2019-A, 5.00%, due 6/15/2054
|
681,725
(a)
|
|
1,000,000
|
New Jersey State Housing & Mortgage Finance Agency Multi-Family Revenue (Riverview
Towers
Apartments), Class PT, Series 2024-B, (FHA), (GNMA), 5.25%, due 12/20/2065
|
1,100,166
|
|
4,150,000
|
New Jersey State Transportation Trust Fund Authority Transportation Program Revenue,
Series 2023-BB, 5.25%, due 6/15/2050
|
4,388,875
|
|
|
New Jersey State Transportation Trust Fund Authority Transportation System Revenue
Refunding
|
|
|
4,000,000
|
Series 2018-A, 4.25%, due 12/15/2038
|
4,062,849
|
|
1,000,000
|
Series 2018-A, (BAM), 4.00%, due 12/15/2037
|
1,016,726
|
|
|
|
19,035,960
|
|
New Mexico 0.4%
|
||
|
1,500,000
|
Winrock Town Center Tax Increment Development District No. 1 (Senior Lien), Series
2022, 4.25%,
due 5/1/2040
|
1,414,368
(a)
|
|
New York 33.0%
|
||
|
|
Albany Capital Resource Corp. Revenue Refunding (Albany College of Pharmacy & Health
Sciences)
|
|
|
380,000
|
Series 2014-A, 5.00%, due 12/1/2027
|
380,328
|
|
375,000
|
Series 2014-A, 5.00%, due 12/1/2028
|
375,318
|
|
270,000
|
Series 2014-A, 5.00%, due 12/1/2029
|
270,228
|
|
1,500,000
|
Albany Capital Resource Corp. Revenue Refunding (Albany Medical Center Hospital Project),
Series 2025-A, 5.50%, due 5/1/2055
|
1,607,219
|
|
500,000
|
Buffalo & Erie County Industrial Land Development Corp. Revenue (Tapestry Charter
School Project),
Series 2017-A, 5.00%, due 8/1/2047
|
483,743
|
|
1,550,000
|
Buffalo & Erie County Industrial Land Development Corp. Revenue Refunding (Charter
School for
Applied Technologies Project), Series 2017-A, 5.00%, due 6/1/2035
|
1,580,019
|
|
|
Buffalo & Erie County Industrial Land Development Corp. Revenue Refunding (Orchard
Park)
|
|
|
500,000
|
Series 2015, 5.00%, due 11/15/2027
|
500,526
|
|
500,000
|
Series 2015, 5.00%, due 11/15/2028
|
500,543
|
|
625,000
|
Series 2015, 5.00%, due 11/15/2029
|
625,696
|
|
|
Build NYC Resource Corp. Revenue
|
|
|
1,665,000
|
Series 2014, 5.00%, due 11/1/2024
|
1,165,500
(b)
|
|
835,000
|
Series 2014, 5.25%, due 11/1/2029
|
584,500
(b)
|
|
650,000
|
Series 2014, 5.25%, due 11/1/2034
|
455,000
(b)
|
|
975,000
|
Series 2014, 5.50%, due 11/1/2044
|
682,500
(b)
|
|
1,000,000
|
Build NYC Resource Corp. Revenue (Metropolitan Lighthouse Charter School Project),
Series 2017-A,
5.00%, due 6/1/2047
|
918,770
(a)
|
See Notes to Financial Statements
12
Schedule of Investments Municipal Fund Inc.^ (cont’d)
|
Principal Amount
|
Value
|
|
|
New York – cont'd
|
||
|
$1,400,000
|
Build NYC Resource Corp. Revenue (New Dawn Charter School Project), Series 2019, 5.75%,
due
2/1/2049
|
$1,320,727
(a)
|
|
750,000
|
Build NYC Resource Corp. Revenue (Senior Airport Facilities), Series 2025, 5.50%,
due 7/1/2055
|
779,347
|
|
|
Build NYC Resource Corp. Revenue Refunding (City University - Queens College)
|
|
|
270,000
|
Series 2014-A, 5.00%, due 6/1/2026
|
270,232
|
|
225,000
|
Series 2014-A, 5.00%, due 6/1/2029
|
225,260
|
|
2,595,000
|
Build NYC Resource Corp. Revenue Refunding (New York Law School Project), Series 2016,
4.00%,
due 7/1/2045
|
2,108,195
|
|
|
Build NYC Resource Corp. Revenue Refunding (Packer Collegiate Institute Project)
|
|
|
155,000
|
Series 2015, 5.00%, due 6/1/2026
|
155,228
|
|
125,000
|
Series 2015, 5.00%, due 6/1/2027
|
125,163
|
|
195,000
|
Series 2015, 5.00%, due 6/1/2028
|
195,255
|
|
220,000
|
Series 2015, 5.00%, due 6/1/2029
|
220,267
|
|
325,000
|
Series 2015, 5.00%, due 6/1/2030
|
325,371
|
|
|
Dutchess County Local Development Corp. Revenue (Culinary Institute of America Project)
|
|
|
200,000
|
Series 2016-A-1, 5.00%, due 7/1/2041
|
200,804
|
|
275,000
|
Series 2016-A-1, 5.00%, due 7/1/2046
|
275,429
|
|
|
Hempstead Town Local Development Corp. Revenue (Molloy College Project)
|
|
|
390,000
|
Series 2018, 5.00%, due 7/1/2030
|
406,932
|
|
405,000
|
Series 2018, 5.00%, due 7/1/2031
|
422,167
|
|
425,000
|
Series 2018, 5.00%, due 7/1/2032
|
442,277
|
|
450,000
|
Series 2018, 5.00%, due 7/1/2033
|
467,067
|
|
|
Metropolitan Transportation Authority Revenue (Green Bond)
|
|
|
1,500,000
|
Series 2020-C-1, 5.00%, due 11/15/2050
|
1,525,258
|
|
10,500,000
|
Series 2020-D-3, 4.00%, due 11/15/2049
|
9,560,545
|
|
3,000,000
|
Series 2020-D-3, 4.00%, due 11/15/2050
|
2,687,118
|
|
300,000
|
Monroe County Industrial Development Corp. Revenue (Monroe Community College), Series
2014,
(AG), 5.00%, due 1/15/2029
|
300,512
|
|
250,000
|
Monroe County Industrial Development Corp. Revenue (Nazareth College of Rochester
Project),
Series 2013-A, 4.00%, due 10/1/2026
|
250,059
|
|
350,000
|
Nassau County Industrial Development Agency Revenue Refunding (Cold Spring), (LOC:
TD Bank
N.A.), Series 1999, 3.85%, due 1/1/2034
|
350,000
(e)
|
|
1,000,000
|
Nassau County Local Economic Assistance Corp. Revenue (Catholic Health Services of
Long Island
Obligated Group Project), Series 2014, 5.00%, due 7/1/2027
|
1,004,690
|
|
3,075,000
|
Nassau County Tobacco Settlement Corp. Asset Backed, Series 2006-A-3, 5.13%, due 6/1/2046
|
2,321,353
|
|
2,000,000
|
New York Liberty Development Corp. Revenue (Goldman Sachs Headquarters), Series 2005,
5.25%,
due 10/1/2035
|
2,336,308
|
|
1,000,000
|
New York Liberty Development Corp. Revenue Refunding (3 World Trade Center Project),
Class 2-3,
Series 2014, 5.38%, due 11/15/2040
|
1,000,184
(a)
|
|
3,390,000
|
New York State Dormitory Authority Revenue Refunding, Series 2024-A, 4.00%, due 3/15/2054
|
3,134,043
|
|
500,000
|
New York State Environmental Facilities Corp. Solid Waste Disposal Revenue (Casella
Waste System,
Inc. Project), Series 2014, 2.88%, due 12/1/2044 Putable 12/3/2029
|
479,307
(a)
|
|
350,000
|
New York State Housing Finance Agency Revenue (Affordable Housing), Series 2012-F,
(SONYMA),
3.05%, due 11/1/2027
|
350,058
|
|
2,545,000
|
New York State Mortgage Agency Homeowner Mortgage Revenue Refunding, Series 2014-189,
3.45%, due 4/1/2027
|
2,545,043
|
|
4,000,000
|
New York State Transportation Development Corp. Special Facility Revenue (Delta Airlines,
Inc.-LaGuardia Airport Terminal C & D Redevelopment), Series 2020, 4.38%, due 10/1/2045
|
3,739,082
|
|
|
New York State Transportation Development Corp. Special Facility Revenue (JFK International
Airport
New Terminal 1 Project)
|
|
|
750,000
|
Series 2023, 6.00%, due 6/30/2054
|
782,611
|
|
3,000,000
|
Series 2023, 5.38%, due 6/30/2060
|
3,014,463
|
|
10,000,000
|
Series 2024, 5.50%, due 6/30/2054
|
10,222,339
|
See Notes to Financial Statements
13
Schedule of Investments Municipal Fund Inc.^ (cont’d)
|
Principal Amount
|
Value
|
|
|
New York – cont'd
|
||
|
$1,145,000
|
New York State Transportation Development Corp. Special Facility Revenue (LaGuardia
Airport
Terminal B Redevelopment Project), Series 2016-A, 4.00%, due 7/1/2041
|
$1,068,371
|
|
2,000,000
|
New York State Transportation Development Corp. Special Facility Revenue (LaGuardia
Airport
Terminal C&D Redevelopment Project), Series 2023, 5.63%, due 4/1/2040
|
2,100,087
|
|
1,500,000
|
New York State Transportation Development Corp. Special Facility Revenue Refunding
(American
Airlines, Inc.-John F Kennedy International Airport Project), Series 2016, 5.00%,
due 8/1/2031
|
1,500,335
|
|
11,010,000
|
New York State Transportation Development Corp. Special Facility Revenue Refunding
(JFK Airport
Terminal 6 Redevelopment Project), Series 2024-A, 5.50%, due 12/31/2060
|
11,244,372
|
|
|
New York State Transportation Development Corp. Special Facility Revenue Refunding
(JFK
International Airport Terminal 4 Project)
|
|
|
100,000
|
Series 2020-A, 4.00%, due 12/1/2042
|
91,433
|
|
500,000
|
Series 2022, 5.00%, due 12/1/2039
|
523,233
|
|
1,000,000
|
Niagara Area Development Corp. Solid Waste Disposal Facility Revenue Refunding (Covanta
Project),
Series 2018-A, 4.75%, due 11/1/2042
|
885,574
(a)
|
|
|
Niagara Frontier Transportation Authority Revenue Refunding (Buffalo Niagara International
Airport)
|
|
|
375,000
|
Series 2019-A, 5.00%, due 4/1/2037
|
385,829
|
|
350,000
|
Series 2019-A, 5.00%, due 4/1/2038
|
358,865
|
|
350,000
|
Series 2019-A, 5.00%, due 4/1/2039
|
357,634
|
|
500,000
|
Oneida Indian Nation of New York Revenue, Series 2024-B, 6.00%, due 9/1/2043
|
538,258
(a)
|
|
175,000
|
Port Authority New York & New Jersey Consolidated Bonds Revenue Refunding (Two Hundred
And
Forty Six), Series 2024, 5.00%, due 9/1/2033
|
197,161
|
|
7,125,000
|
Port Authority New York & New Jersey Consolidated Bonds Revenue Refunding (Two Hundred
And
Forty Two), Series 2023-242, 5.00%, due 12/1/2053
|
7,309,324
|
|
1,920,000
|
Port Authority New York & New Jersey Consolidated Bonds Revenue Refunding (Two Hundred
And
Thirty Two), Series 2022-232, 4.63%, due 8/1/2052
|
1,907,574
|
|
500,000
|
Port Authority New York & New Jersey Consolidated Bonds Revenue Refunding (Two Hundred),
Series 2017, 5.00%, due 4/15/2057
|
506,529
|
|
1,000,000
|
State of New York Mortgage Agency Homeowner Mortgage Revenue, Series 2024-264, (SONYMA),
4.60%, due 10/1/2054
|
985,291
|
|
4,000,000
|
Triborough Bridge & Tunnel Authority Revenue, Series 2025-A, 5.50%, due 12/1/2059
|
4,319,709
|
|
3,000,000
|
Triborough Bridge & Tunnel Authority Sales Tax Revenue, Series 2024-A-1, 5.25%, due
5/15/2059
|
3,179,327
|
|
|
TSASC, Inc. Revenue Refunding
|
|
|
580,000
|
Series 2017-A, 5.00%, due 6/1/2028
|
596,628
|
|
3,000,000
|
Series 2017-A, 5.00%, due 6/1/2041
|
3,008,354
|
|
1,000,000
|
Westchester County Local Development Corp. Revenue Refunding (Kendal on Hudson Project),
Series 2022-B, 5.00%, due 1/1/2051
|
1,000,596
|
|
665,000
|
Yonkers Economic Development Corp. Education Revenue (Charter School of Education
Excellence
Project), Series 2019-A, 5.00%, due 10/15/2049
|
616,800
|
|
5,000,000
|
Yonkers Industrial Development Agency School Facilities Revenue (New Community School
Project),
Series 2022, (ST AID WITHHLDG), 5.00%, due 5/1/2047
|
5,223,863
|
|
|
|
111,577,731
|
|
North Carolina 2.1%
|
||
|
|
Charlotte Airport Revenue
|
|
|
1,250,000
|
Series 2023-B, 5.00%, due 7/1/2044
|
1,295,386
|
|
1,500,000
|
Series 2023-B, 5.00%, due 7/1/2048
|
1,541,781
|
|
4,000,000
|
North Carolina Turnpike Authority Revenue (Triangle Expressway System), Series 2024-A,
(AG),
5.00%, due 1/1/2058
|
4,100,831
|
|
|
|
6,937,998
|
|
Ohio 8.8%
|
||
|
29,795,000
|
Buckeye Tobacco Settlement Finance Authority Asset-Backed Senior Revenue Refunding,
Class 2,
Series 2020-B-2, 5.00%, due 6/1/2055
|
24,969,378
|
See Notes to Financial Statements
14
Schedule of Investments Municipal Fund Inc.^ (cont’d)
|
Principal Amount
|
Value
|
|
|
Ohio – cont'd
|
||
|
$2,500,000
|
Ohio State Air Quality Development Authority Exempt Facilities Revenue (AMG Vanadium
LLC),
Series 2019, 5.00%, due 7/1/2049
|
$2,297,056
(a)
|
|
2,335,000
|
Ohio State Air Quality Development Authority Revenue Refunding (Ohio Valley Electric
Corp. Project),
Series 2019-A, 3.25%, due 9/1/2029
|
2,299,731
|
|
|
|
29,566,165
|
|
Oregon 0.5%
|
||
|
10,000
|
Oregon State Housing & Community Service Department Multi-Family Revenue, Series 2012-B,
(FHA),
(FHLMC), (FNMA), (GNMA), 3.50%, due 7/1/2027
|
10,000
|
|
2,180,000
|
Portland General Obligation (Transportation Project), Series 2022-A, 2.25%, due 10/1/2041
|
1,677,383
|
|
|
|
1,687,383
|
|
Pennsylvania 5.1%
|
||
|
1,930,000
|
Allentown Neighborhood Improvement Zone Development Authority Revenue (City Center
Project),
Series 2024, 5.00%, due 5/1/2042
|
1,971,139
(a)
|
|
2,830,000
|
Lancaster County Hospital Authority Revenue Refunding (Health Centre-Landis Homes
Retirement
Community Project), Series 2015-A, 4.25%, due 7/1/2030
|
2,830,561
|
|
1,035,000
|
Pennsylvania Economic Development Financing Authority Revenue (PA Bridges Finco LP-P3
Project),
Series 2015, 5.00%, due 6/30/2042
|
1,037,538
|
|
3,500,000
|
Pennsylvania Economic Development Financing Authority Revenue Refunding (Energy Supply
LLC),
Series 2009-C, 5.25%, due 12/1/2037 Putable 6/1/2027
|
3,531,367
|
|
2,350,000
|
Pennsylvania Economic Development Financing Authority Revenue Refunding (Tapestry
Moon Senior
Housing Project), Series 2018-A, 6.75%, due 12/1/2053
|
470,000
(a)(b)
|
|
7,255,000
|
Philadelphia Water & Wastewater Revenue Refunding, Series 2023-B, (AG), 4.50%, due
9/1/2048
|
7,332,139
|
|
|
|
17,172,744
|
|
Puerto Rico 6.4%
|
||
|
1,750,000
|
Puerto Rico Commonwealth General Obligation (Restructured), Series 2021-A1, 4.00%,
due
7/1/2046
|
1,544,592
|
|
20,552,000
|
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Series 2018-A-1, 5.00%, due
7/1/2058
|
19,960,939
|
|
|
|
21,505,531
|
|
South Carolina 2.5%
|
||
|
3,110,000
|
Patriots Energy Group Financing Agency Revenue Refunding, Series 2023-B-1, 5.25%,
due 2/1/2054
Putable 3/1/2031
|
3,382,500
|
|
1,875,000
|
South Carolina Jobs Economic Development Authority Economic Development Revenue (River
Park
Senior Living Project), Series 2017-A, 7.75%, due 10/1/2057
|
1,902,826
|
|
550,000
|
South Carolina Jobs Economic Development Authority Solid Waste Disposal Revenue (AMT-Green
Bond-Last Step Recycling LLC Project), Series 2021-A, 6.50%, due 6/1/2051
|
60,500
(a)(b)
|
|
2,325,000
|
South Carolina Jobs Economic Development Authority Solid Waste Disposal Revenue (Green
Bond-Jasper Pellets LLC Project), Series 2018-A, 7.00%, due 11/1/2038
|
2,325
#(b)
|
|
2,500,000
|
South Carolina Jobs-Economic Development Authority Revenue (Novant Health Obligated
Group),
Series 2024-A, 4.50%, due 11/1/2054
|
2,458,288
|
|
720,000
|
South Carolina State Housing Finance & Development Authority Mortgage Revenue, Series
2024-A,
4.75%, due 1/1/2054
|
724,078
|
|
|
|
8,530,517
|
|
Tennessee 1.1%
|
||
|
2,000,000
|
Metropolitan Government Nashville & Davidson County Health & Educational Facilities
Board
Revenue (Blakeford At Green Hills), Series 2020-A, 4.00%, due 11/1/2045
|
1,704,206
|
|
|
Shelby County Health & Educational Facilities Board Revenue (Madrone Memphis Student
Housing I
LLC)
|
|
|
1,000,000
|
Series 2024-A1, 5.00%, due 6/1/2044
|
974,860
(a)
|
|
1,000,000
|
Series 2024-A1, 5.25%, due 6/1/2056
|
951,111
(a)
|
|
|
|
3,630,177
|
See Notes to Financial Statements
15
Schedule of Investments Municipal Fund Inc.^ (cont’d)
|
Principal Amount
|
Value
|
|
|
Texas 11.4%
|
||
|
$250,000
|
Anson Educational Facilities Corp. Educational Revenue (Arlington Classics Academy),
Series 2016-A,
5.00%, due 8/15/2045
|
$247,710
|
|
|
Arlington Higher Education Finance Corp. Revenue (Basis Texas Charter Schools, Inc.)
|
|
|
1,000,000
|
Series 2024, 4.88%, due 6/15/2059
|
898,231
(a)
|
|
700,000
|
Series 2024, 5.00%, due 6/15/2064
|
629,225
(a)
|
|
825,000
|
Arlington Higher Education Finance Corp. Revenue (Universal Academy), Series 2014-A,
6.63%, due
3/1/2029
|
825,575
|
|
730,000
|
Austin Community College District Public Facility Corp. Lease Revenue, Series 2018-C,
4.00%, due
8/1/2042
|
718,341
|
|
185,000
|
Dallas County Flood Control District No. 1 Refunding General Obligation, Series 2015,
5.00%, due
4/1/2028
|
184,995
(a)
|
|
3,000,000
|
Dallas Fort Worth International Airport Revenue Refunding, Series 2023-B, 5.00%, due
11/1/2047
|
3,153,569
|
|
2,085,000
|
Dallas Independent School District General Obligation, Series 2022, (PSF-GTD), 2.75%,
due
2/15/2052
|
1,524,747
|
|
1,500,000
|
Elm Ridge Water Control & Improvement District of Denton County General Obligation,
Series 2013,
5.00%, due 9/1/2037
|
1,487,172
|
|
3,050,000
|
EP Tuscany Zaragosa PFC Revenue (Home Essential Function Housing Program), Series
2023, 4.00%,
due 12/1/2033
|
3,040,885
|
|
2,000,000
|
Fort Bend County Industrial Development Corp. Revenue (NRG Energy, Inc.), Series 2012-B,
4.75%,
due 11/1/2042
|
2,000,108
|
|
7,100,000
|
Fort Bend County Texas Public Facility Corp. Revenue, Series 2023, 5.00%, due 3/1/2053
|
7,365,328
|
|
915,000
|
Harris County Cultural Education Facilities Finance Corp. Revenue (Brazos Presbyterian
Homes, Inc.
Project), Series 2013-B, 5.75%, due 1/1/2028
|
916,369
|
|
1,500,000
|
Houston Airport System Revenue (United Airlines, Inc.), Series 2024-B, 5.50%, due
7/15/2038
|
1,628,595
|
|
1,000,000
|
New Hope Cultural Education Facilities Finance Corp. Revenue, Series 2025-A, 6.50%,
due
10/1/2055
|
1,036,017
|
|
|
New Hope Cultural Education Facilities Finance Corp. Revenue (Beta Academy)
|
|
|
545,000
|
Series 2019-A, 5.00%, due 8/15/2039
|
531,253
(a)
|
|
520,000
|
Series 2019-A, 5.00%, due 8/15/2049
|
471,223
(a)
|
|
1,000,000
|
New Hope Cultural Education Facilities Finance Corp. Revenue Refunding (Brazos Presbyterian
Homes, Inc. Project), Series 2025, 5.38%, due 1/1/2055
|
987,039
(h)
|
|
500,000
|
New Hope Cultural Education Facilities Finance Corp. Senior Living Revenue (Cardinal
Bay, Inc. Village
On The Park Carriage), Series 2016-C, 5.50%, due 7/1/2046
|
250,000
(b)
|
|
700,000
|
Tarrant County Cultural Education Facilities Finance Corp. Revenue Refunding (Methodist
Hospitals of
Dallas), (LOC: TD Bank N.A.), Series 2008-A, 3.90%, due 10/1/2041
|
700,000
(e)
|
|
|
Texas State Private Activity Bond Surface Transportation Corp. Revenue Refunding (Senior
Lien-NTE
Mobility Partners Segments 3 LLC)
|
|
|
1,750,000
|
Series 2023, 5.38%, due 6/30/2037
|
1,855,849
|
|
1,000,000
|
Series 2023, 5.38%, due 6/30/2039
|
1,055,221
|
|
1,000,000
|
Series 2023, 5.50%, due 6/30/2040
|
1,055,093
|
|
2,350,000
|
Series 2023, 5.50%, due 6/30/2041
|
2,468,236
|
|
3,500,000
|
Texas Water Development Board Revenue (Master Trust), Series 2024-A, 4.38%, due 10/15/2059
|
3,378,906
|
|
|
|
38,409,687
|
|
Utah 2.8%
|
||
|
1,500,000
|
Mida Mountain Village Public Infrastructure District Revenue, Series 2024-2, 6.00%,
due 6/15/2054
|
1,543,928
(a)
|
|
|
Salt Lake City Airport Revenue
|
|
|
1,000,000
|
Series 2017-A, 5.00%, due 7/1/2042
|
1,009,346
|
|
2,000,000
|
Series 2017-A, 5.00%, due 7/1/2047
|
2,007,186
|
|
1,000,000
|
Series 2018-A, 5.00%, due 7/1/2043
|
1,012,876
|
|
3,000,000
|
Salt Lake County Hospital Revenue (IHC Health Service, Inc.), Series 2001, (AMBAC),
5.40%, due
2/15/2028
|
3,030,647
|
See Notes to Financial Statements
16
Schedule of Investments Municipal Fund Inc.^ (cont’d)
|
Principal Amount
|
Value
|
|
|
Utah – cont'd
|
||
|
|
Utah Infrastructure Agency Telecommunication Revenue
|
|
|
$450,000
|
Series 2024, 5.50%, due 10/15/2044
|
$466,981
|
|
500,000
|
Series 2024, 5.50%, due 10/15/2048
|
512,603
|
|
|
|
9,583,567
|
|
Vermont 0.5%
|
||
|
1,000,000
|
Vermont Economic Development Authority Solid Waste Disposal Revenue (Casella Waste
System,
Inc.), Series 2022-A-1, 5.00%, due 6/1/2052 Putable 6/1/2027
|
1,012,911
(a)
|
|
700,000
|
Vermont Student Assistant Corp. Education Loan Revenue, Series 2015-A, 4.13%, due
6/15/2027
|
700,451
|
|
|
|
1,713,362
|
|
Virginia 1.2%
|
||
|
3,700,000
|
Virginia Beach Development Authority Revenue, Series 2023-A, 7.00%, due 9/1/2059
|
4,052,003
|
|
Washington 1.4%
|
||
|
3,770,000
|
Vancouver Downtown Redevelopment Authority Revenue (Conference Center Project), Series
2013,
4.00%, due 1/1/2028
|
3,772,675
|
|
1,000,000
|
Washington State Economic Development Finance Authority Environmental Facilities Revenue
(Green
Bond), Series 2020-A, 5.63%, due 12/1/2040
|
1,020,260
(a)
|
|
|
|
4,792,935
|
|
West Virginia 1.4%
|
||
|
|
West Virginia Hospital Finance Authority Revenue (Vandalia Health Group)
|
|
|
1,500,000
|
Series 2023-B, 6.00%, due 9/1/2053
|
1,630,079
|
|
1,500,000
|
Series 2023-B, (AG), 5.38%, due 9/1/2053
|
1,589,373
|
|
1,400,000
|
West Virginia Hospital Finance Authority Revenue Refunding (Charleston Area Medical
Center, Inc.),
Series 2019-A, 5.00%, due 9/1/2039
|
1,432,043
|
|
|
|
4,651,495
|
|
Wisconsin 11.4%
|
||
|
2,000,000
|
Public Finance Authority Airport Facility Revenue Refunding (Trips Obligation Group),
Series 2012-B,
5.00%, due 7/1/2042
|
2,000,360
|
|
200,000
|
Public Finance Authority Education Revenue (Resh Triangle High School Project), Series
2015-A,
5.38%, due 7/1/2035
|
200,037
(a)
|
|
600,000
|
Public Finance Authority Retirement Facility Revenue Refunding (Friends Homes), Series
2019, 5.00%,
due 9/1/2054
|
565,017
(a)
|
|
838,000
|
Public Finance Authority Revenue (Candela Project), Series 2023, 6.13%, due 12/15/2029
|
847,088
(a)
|
|
18,000,000
|
Public Finance Authority Revenue (Georgia Sr. 400 Express Lanes Project), Series 2025,
5.75%, due
12/31/2065
|
18,643,419
|
|
2,500,000
|
Public Finance Authority Revenue (Mayfair Project), Series 2024-A-4, 5.50%, due 11/15/2032
|
2,506,168
(a)
|
|
3,107,000
|
Public Finance Authority Revenue (Signorelli Project), Series 2024, 5.38%, due 12/15/2032
|
3,107,566
(a)
|
|
3,000,000
|
Public Finance Authority Revenue Refunding (Celanese Project), Series 2016-D, 4.05%,
due
11/1/2030
|
2,998,532
|
|
6,000,000
|
Public Finance Authority Special Facility Revenue (Sky Harbour Capital LLC Aviation
Facility Project),
Series 2021, 4.25%, due 7/1/2054
|
4,981,176
|
|
800,000
|
Saint Croix Chippewa Indians of Wisconsin Refunding, Series 2021, 5.00%, due 9/30/2041
|
729,851
(a)
|
|
|
Wisconsin Health & Educational Facilities Authority Revenue (Chiara Housing & Services,
Inc. Project)
|
|
|
1,000,000
|
Series 2024, 6.00%, due 7/1/2060
|
1,008,483
|
|
1,000,000
|
Series 2025, 6.63%, due 7/1/2060
|
1,042,167
|
|
|
|
38,629,864
|
|
|
||
|
Total Municipal Notes (Cost $560,802,419)
|
560,044,403
|
|
See Notes to Financial Statements
17
Schedule of Investments Municipal Fund Inc.^ (cont’d)
|
Number of Shares
|
Value
|
|
|
Common Stocks 0.0%‡
|
||
|
Materials 0.0%‡
|
||
|
104,203
|
TimberHP, Inc. (Cost $0)
|
$0
#(f)(g)
|
|
Total Investments 165.8% (Cost $560,802,419)
|
560,044,403
|
|
|
Other Assets Less Liabilities 1.7%
|
5,684,209
|
|
|
Liquidation Preference of Variable Rate Municipal Term Preferred Shares (67.5)%
|
(227,900,000
)(i)
|
|
|
Net Assets Applicable to Common Stockholders 100.0%
|
$337,828,612
|
|
|
‡
|
Represents less than 0.05% of net assets of the Fund.
|
|
(a)
|
Securities were purchased under Rule 144A of the Securities Act of 1933, as amended,
or are otherwise
restricted and, unless registered under the Securities Act of 1933 or exempted from
registration, may only
be sold to qualified institutional investors or may have other restrictions on resale.
At October 31, 2025,
these securities amounted to $74,076,569, which represents 21.9% of net assets applicable
to common
stockholders of the Fund.
|
|
(b)
|
Defaulted security.
|
|
(c)
|
Currently a zero coupon security; will convert to 7.30% on August 1, 2026.
|
|
(d)
|
Step Bond. Coupon rate is a fixed rate for an initial period that either resets at
a specific date or may reset in
the future contingent upon a predetermined trigger. The interest rate shown was the
current rate as of
October 31, 2025.
|
|
(e)
|
Variable rate demand obligation where the stated interest rate is not based on a published
reference rate
and spread. Rather, the interest rate generally resets daily or weekly and is determined
by the remarketing
agent. The rate shown represents the rate in effect at October 31, 2025.
|
|
(f)
|
Value determined using significant unobservable inputs.
|
|
(g)
|
Security fair valued as of October 31, 2025 in accordance with procedures approved
by the valuation
designee. Total value of all such securities at October 31, 2025 amounted to $1,300,000,
which represents
0.4% of net assets applicable to common stockholders of the Fund.
|
|
(h)
|
When-issued security. Total value of all such securities at October 31, 2025 amounted
to $987,039, which
represents 0.3% of net assets applicable to common stockholders of the Fund.
|
|
(i)
|
Fair valued as of October 31, 2025 in accordance with procedures approved by the valuation
designee.
|
# This security is subject to restrictions on resale. Total value of all such securities
at October 31, 2025 amounted to $1,302,325, which represents 0.4% of net assets applicable to common stockholders
of the Fund. Acquisition dates shown with a range, if any, represent securities that were
acquired over the period shown in the table.
|
Restricted Security
|
Acquisition
Date(s)
|
Acquisition
Cost
|
Value as of
10/31/2025
|
Fair Value
Percentage
of Net Assets
Applicable
to Common
Stockholders
as of
10/31/2025
|
|
Maine State Finance Authority Revenue (TimberHP
Madison LLC)
|
6/20/2025
|
$658,195
|
$1,300,000
|
0.4%
|
See Notes to Financial Statements
18
Schedule of Investments Municipal Fund Inc.^ (cont’d)
|
Restricted Security
|
Acquisition
Date(s)
|
Acquisition
Cost
|
Value as of
10/31/2025
|
Fair Value
Percentage
of Net Assets
Applicable
to Common
Stockholders
as of
10/31/2025
|
|
South Carolina Jobs Economic Development
Authority Solid Waste Disposal Revenue (Green
Bond-Jasper Pellets LLC Project)
|
12/4/2018-6/25/2020
|
$2,228,847
|
$2,325
|
0.0%
|
|
TimberHP, Inc.
|
6/23/2025
|
—
|
—
|
0.0%
|
|
Total
|
|
$2,887,042
|
$1,302,325
|
0.4%
|
The following is a summary, categorized by Level (see Note A of the Notes to Financial
Statements), of inputs used to value the Fund’s investments as of October 31, 2025:
|
Asset Valuation Inputs
|
Level 1
|
Level 2
|
Level 3(a)
|
Total
|
|
Investments:
|
|
|
|
|
|
Municipal Notes
|
|
|
|
|
|
Maine
|
$—
|
$—
|
$1,300,000
|
$1,300,000
|
|
Other Municipal Notes#
|
—
|
558,744,403
|
—
|
558,744,403
|
|
Total Municipal Notes
|
—
|
558,744,403
|
1,300,000
|
560,044,403
|
|
Common Stocks#
|
—
|
—
|
—
|
—
|
|
Total Investments
|
$—
|
$558,744,403
|
$1,300,000
|
$560,044,403
|
|
#
|
The Schedule of Investments provides information on the industry, state/territory
or sector categorization.
|
See Notes to Financial Statements
19
Schedule of Investments Municipal Fund Inc.^ (cont’d)
|
(a)
|
The following is a reconciliation between the beginning and ending balances of investments
in which
significant unobservable inputs (Level 3) were used in determining value:
|
|
(000's
omitted)
|
Beginning
balance as
of 11/1/2024
|
Accrued
discounts/
(premiums)
|
Realized
gain/(loss)
|
Change
in unrealized
appreciation/
(depreciation)
|
Purchases
|
Sales/
Other
Reductions
|
Transfers
into
Level 3
|
Transfers
out of
Level 3
|
Balance
as of
10/31/2025
|
Net change in
unrealized
appreciation/
(depreciation)
from
investments
still held as of
10/31/2025
|
|
Investments in
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
Loan
Assignments(1)
|
$75
|
$—
|
$(715
)
|
$708
|
$—
|
$(68
)
|
$—
|
$—
|
$—
|
$—
|
|
Municipal
Notes(1)(2)
|
453
|
8
|
(1,810
)
|
2,430
|
650
|
(240
)
|
—
|
(191
)
|
1,300
|
642
|
|
Common
Stocks(3)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|
Total
|
$528
|
$8
|
$(2,525
)
|
$3,138
|
$650
|
$(308
)
|
$—
|
$(191
)
|
$1,300
|
$642
|
|
(1)
Quantitative Information about Level 3 Fair Value Measurements:
|
||||||||||
|
Investment type
|
Fair value
at
10/31/2025
|
Valuation
approach
|
Significant unobservable
input(s)
|
Input value/
range
|
Weighted
average(a)
|
Impact to
valuation
from
increase
in input(b)
|
|
Municipal Notes
|
$1,300,000
|
Market Approach
|
Discount rate
|
8.3%
|
8.3%
|
Decrease
|
|
(a)
The weighted averages disclosed in the table above were weighted by relative fair
value.
|
||||||
|
(b)
Represents the expected directional change in the fair value of the Level 3 investments
that
would result from an increase or decrease in the corresponding input. Significant
changes in
these inputs could result in significantly higher or lower fair value measurements.
|
||||||
|
(2)
Transfers out of Level 3 were attributable to observable market data becoming available
for those
securities. Transfers in or out of Level 3 represent the beginning value of any security
where a change
in the pricing level occurred from the beginning to the end of the period.
|
||||||||||
|
(3)
At October 31, 2025, these investments were valued in accordance with procedures approved
by the
valuation designee. These investments did not have a material impact on the Fund's
net assets and,
therefore, disclosure of significant unobservable inputs used in formulating valuations
is not
presented.
|
The following is a summary, categorized by Level (see Note A of the Notes to Financial
Statements), of inputs used to value the Fund’s outstanding Variable Rate Municipal Term Preferred Shares as of October 31, 2025:
|
Other Financial Instruments
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
Variable Rate Municipal Term Preferred Shares(a)
|
$—
|
$(227,900,000
)
|
$—
|
$(227,900,000
)
|
|
Total Variable Rate Municipal Term Preferred
Shares
|
$—
|
$(227,900,000
)
|
$—
|
$(227,900,000
)
|
|
(a)
|
The Fund may hold liabilities in which the fair value approximates the carrying amount
for financial
statement purposes.
|
^ A balance indicated with a "—", reflects either a zero balance or an amount that rounds to less than 1.
See Notes to Financial Statements
20
Statement of Assets and Liabilities
Neuberger
|
|
Municipal
Fund Inc.
|
|
|
October 31, 2025
|
|
Assets
|
|
|
Investments in securities, at value* (Note A)—see Schedule of Investments:
|
|
|
Unaffiliated issuers(a)
|
$560,044,403
|
|
Cash
|
55,359
|
|
Interest receivable
|
8,881,086
|
|
Receivable for securities sold
|
505,000
|
|
Prepaid expenses and other assets
|
28,369
|
|
Total Assets
|
569,514,217
|
|
Liabilities
|
|
|
Variable Rate Municipal Term Preferred Shares, Series A ($100,000 liquidation preference
per share; 2,279 shares
outstanding) (Note A)
|
227,900,000
|
|
Distributions payable—preferred shares
|
740,894
|
|
Distributions payable—common stock
|
1,604,410
|
|
Payable to investment manager (Note B)
|
120,104
|
|
Payable for securities purchased
|
986,170
|
|
Payable to administrator (Note B)
|
144,125
|
|
Payable to directors
|
3,548
|
|
Other accrued expenses and payables
|
186,354
|
|
Total Liabilities
|
231,685,605
|
|
Net Assets applicable to Common Stockholders
|
$337,828,612
|
|
Net Assets applicable to Common Stockholders consist of:
|
|
|
Paid-in capital—common stock
|
$398,325,946
|
|
Total distributable earnings/(losses)
|
(60,497,334
)
|
|
Net Assets applicable to Common Stockholders
|
$337,828,612
|
|
Shares of Common Stock Outstanding ($0.0001 par value; 999,989,384 shares authorized)
|
29,618,059
|
|
Net Asset Value Per Share of Common Stock Outstanding
|
$11.41
|
|
*Cost of Investments:
|
|
|
(a) Unaffiliated issuers
|
$560,802,419
|
|
|
See Notes to Financial Statements
21
Statement of Operations
Neuberger
|
|
Municipal
Fund Inc.
|
|
|
For the Fiscal
Year Ended
October 31,
2025
|
|
Investment Income:
|
|
|
Income (Note A):
|
|
|
Interest income—unaffiliated issuers
|
$27,749,529
|
|
Other income
|
2,588
|
|
Total income
|
$27,752,117
|
|
Expenses:
|
|
|
Investment management fees (Note B)
|
1,410,977
|
|
Administration fees (Note B)
|
1,693,172
|
|
Audit fees
|
56,830
|
|
Basic maintenance (Note A)
|
12,499
|
|
Custodian and accounting fees
|
65,192
|
|
Insurance
|
16,143
|
|
Legal fees
|
167,836
|
|
Stockholder reports
|
274,715
|
|
Stock exchange listing fees
|
16,460
|
|
Stock transfer agent fees
|
21,088
|
|
Distributions to Variable Rate Municipal Term Preferred Shareholders (Note A)
|
9,169,759
|
|
Directors' fees and expenses
|
61,096
|
|
Miscellaneous and other fees
|
46,336
|
|
Total expenses
|
13,012,103
|
|
Net investment income/(loss)
|
$14,740,014
|
|
Realized and Unrealized Gain/(Loss) on Investments (Note A):
|
|
|
Net realized gain/(loss) on:
|
|
|
Transactions in investment securities of unaffiliated issuers
|
(11,214,987
)
|
|
Change in net unrealized appreciation/(depreciation) in value of:
|
|
|
Investment securities of unaffiliated issuers
|
1,279,724
|
|
Net gain/(loss) on investments
|
(9,935,263
)
|
|
Net increase/(decrease) in net assets applicable to Common Stockholders resulting
from operations
|
$4,804,751
|
See Notes to Financial Statements
22
Statements of Changes in Net Assets
Neuberger
|
|
Municipal
Fund Inc.
|
|
|
|
Fiscal Year
Ended
|
Fiscal Year
Ended
|
|
|
October 31, 2025
|
October 31, 2024
|
|
Increase/(Decrease) in Net Assets Applicable to Common Stockholders:
|
|
|
|
From Operations (Note A):
|
|
|
|
Net investment income/(loss)
|
$14,740,014
|
$12,945,868
|
|
Net realized gain/(loss) on investments
|
(11,214,987
)
|
(14,884,391
)
|
|
Change in net unrealized appreciation/(depreciation) of investments
|
1,279,724
|
53,270,157
|
|
Net increase/(decrease) in net assets applicable to Common Stockholders resulting
from
operations
|
4,804,751
|
51,331,634
|
|
Distributions to Common Stockholders From (Note A):
|
|
|
|
Distributable earnings
|
(14,676,692
)
|
(13,569,388
)
|
|
Tax return of capital
|
(4,576,231
)
|
(1,790,538
)
|
|
Total distributions to Common Stockholders
|
(19,252,923
)
|
(15,359,926
)
|
|
Net Increase/(Decrease) in Net Assets Applicable to Common Stockholders
|
(14,448,172
)
|
35,971,708
|
|
Net Assets Applicable to Common Stockholders:
|
|
|
|
Beginning of year
|
352,276,784
|
316,305,076
|
|
End of year
|
$337,828,612
|
$352,276,784
|
See Notes to Financial Statements
23
Notes to Financial Statements Municipal Fund Inc.
Note A—Summary of Significant Accounting Policies:
1
General: Neuberger Municipal Fund Inc. (the "Fund") (formerly, Neuberger Berman Municipal
Fund Inc.) was organized as a Maryland corporation on July 29, 2002 as a diversified, closed-end
management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"). The Fund’s Board of Directors (the "Board") may classify or re-classify any unissued shares of capital
stock into one or more classes of preferred stock without the approval of stockholders.
Effective December 18, 2025, the Fund's name was changed from Neuberger Berman Municipal
Fund Inc. to Neuberger Municipal Fund Inc.
A balance indicated with a "—", reflects either a zero balance or a balance that rounds to less than 1.
The Fund is an investment company and accordingly follows the investment company accounting
and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting
Standards Codification ("ASC") Topic 946 "Financial Services—Investment Companies."
The preparation of financial statements in accordance with U.S. generally accepted
accounting principles ("GAAP") requires Management to make estimates and assumptions at the date of the
financial statements. Actual results could differ from those estimates.
2
Portfolio valuation: In accordance with ASC 820 "Fair Value Measurement" ("ASC 820"), all investments
held by the Fund are carried at the value that Management believes the Fund would
receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most
advantageous market for the investment under current market conditions. Various inputs, including the
volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's
investments, some of which are discussed below. At times, Management may need to apply significant judgment
to value investments in accordance with ASC 820.
ASC 820 established a three-tier hierarchy of inputs to create a classification of
value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three
broad Levels listed below.
•
Level 1 – unadjusted quoted prices in active markets for identical investments
•
Level 2 – other observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
•
Level 3 – unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication
of the risk associated with investing in those securities.
The value of the Fund’s investments in equity securities, for which market quotations are readily available, is generally determined by Management by obtaining valuations from independent pricing
services based on the latest sale price quoted on a principal exchange or market for that security (Level
1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued at the NASDAQ Official
Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported
price as of 4:00:02 p.m., Eastern Time, unless that price is outside the range of the "inside"
bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own
accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever
is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade
to occur before the market closes. If there is no sale of a security on a particular day, the independent
pricing services may value the security based on market quotations.
The value of the Fund's investments in municipal notes is determined by Management
primarily by obtaining valuations from independent pricing services based on bid quotations, or
if quotations are not
24
available, by methods that include various considerations such as yields or prices
of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general
market conditions (generally Level 2 inputs). Other Level 2 and 3 inputs used by independent pricing
services to value municipal notes include current trades, bid-wanted lists (which inform the market
that a holder is interested in selling a position and that offers will be considered), offerings, general information
on market movement, direction, trends, appraisals, bid offers and specific data on specialty issues.
The value of the Fund's Variable Rate Municipal Term Preferred Shares ("VMTPS") is
estimated to be their liquidation preference (Level 2 inputs).
Management has developed a process to periodically review information provided by
independent pricing services for all types of securities.
If a valuation is not available from an independent pricing service, or if Management
has reason to believe that the valuation received does not represent the amount the Fund might reasonably
expect to receive on a current sale in an orderly transaction, Management seeks to obtain quotations from
brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes
available). If such quotations are not available, the security is valued using methods Management has
approved in the good-faith belief that the resulting valuation will reflect the fair value of the
security. Pursuant to Rule 2a-5 under the 1940 Act, the Board designated Management as the Fund's valuation designee.
As the Fund's valuation designee, Management is responsible for determining fair value in good faith
for all Fund investments. Inputs and assumptions considered in determining fair value of a security
based on Level 2 or Level 3 inputs may include, but are not limited to, the type of security; the initial
cost of the security; the existence of any contractual restrictions on the security’s disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated
prices from broker-dealers or pricing services; information obtained from the issuer and analysts;
an analysis of the company’s or issuer’s financial statements; an evaluation of the inputs that influence the issuer and the market(s) in which the security is purchased and sold.
Fair value prices are necessarily estimates, and there is no assurance that such a
price will be at or close to the price at which the security is next quoted or traded.
3
Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Interest income, including accretion of discount (adjusted
for original issue discount, where applicable) and amortization of premium, where applicable, is recorded
on the accrual basis. Realized gains and losses from securities transactions are recorded on the
basis of identified cost and stated separately in the Statement of Operations.
4
Income tax information: It is the policy of the Fund to continue to qualify for treatment as a regulated
investment company ("RIC") by complying with the requirements of the U.S. Internal
Revenue Code applicable to RICs and to distribute substantially all of its net investment income
and net realized capital gains to its stockholders. To the extent the Fund distributes substantially all of
its net investment income and net realized capital gains to stockholders, no federal income or excise tax provision
is required.
ASC 740 "Income Taxes" sets forth a minimum threshold for financial statement recognition
of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest
and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of
Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed
for the tax years for which the applicable statutes of limitations have not yet expired. Management has analyzed
the Fund's tax positions taken or expected to be taken on federal and state income tax returns for
all open tax years (the current and the prior three tax years) and has concluded that no provision for income
tax is required in the Fund's financial statements.
For federal income tax purposes, the estimated cost of investments held at October
31, 2025 was $560,873,776. The estimated gross unrealized appreciation was $20,655,116 and estimated
gross unrealized depreciation was $21,484,489 resulting in net unrealized depreciation in
value of investments of $829,373 based on cost for U.S. federal income tax purposes.
25
Income distributions and capital gain distributions are determined in accordance with
income tax regulations, which may differ from GAAP. These differences, if any, are primarily
due to differing treatments of income and gains on various investment securities held by the Fund and net operating
losses written off.
Any permanent differences resulting from different book and tax treatment are reclassified
at year-end and have no impact on net income, net asset value ("NAV") or NAV per share of common stock
of the Fund. For the year ended October 31, 2025, there were no permanent differences requiring a reclassification
between total distributable earnings/(losses) and paid-in-capital.
The tax character of distributions paid during the years ended October 31, 2025, and
October 31, 2024, was as follows:
|
|
Distributions Paid From:
|
|||||||||
|
|
Ordinary
Income
|
Tax-Exempt
Income
|
Long-Term
Capital Gain
|
Return of
Capital
|
Total
|
|||||
|
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
|
|
$393,570
|
$424,283
|
$23,452,881
|
$23,277,477
|
$—
|
$—
|
$4,576,231
|
$1,790,538
|
$28,422,682
|
$25,492,298
|
|
|
|
|
|
|
|
|
|
|
|
|
As of October 31, 2025, the components of distributable earnings (accumulated losses)
on a U.S. federal income tax basis were as follows:
|
|
Undistributed
Ordinary
Income
|
Undistributed
Tax-Exempt
Income
|
Undistributed
Long-Term
Capital Gain
|
Unrealized
Appreciation/
(Depreciation)
|
Loss
Carryforwards
and Deferrals
|
Other
Temporary
Differences
|
Total
|
|
|
$—
|
$—
|
$—
|
$(829,373
)
|
$(57,322,657
)
|
$(2,345,304
)
|
$(60,497,334
)
|
The temporary differences between book basis and tax basis distributable earnings
are primarily due to: defaulted bond adjustments and timing differences of fund level distributions.
To the extent the Fund’s net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of the Fund not to distribute such gains. Capital loss carryforward rules allow
for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards
as short-term or long-term. As determined at October 31, 2025, the Fund had unused capital loss carryforwards
available for federal income tax purposes to offset future net realized capital gains, if any, as
follows:
|
Capital Loss Carryforwards
|
|
|
Long-Term
|
Short-Term
|
|
$51,098,545
*
|
$6,224,112
*
|
|
*
|
Future utilization of losses may be limited under current tax regulations.
|
5
Distributions to common stockholders: The Fund earns income, net of expenses, daily on its investments. It is the policy of the Fund to declare and pay monthly distributions to common stockholders.
Distributions from net realized capital gains, if any, are normally distributed in December. Distributions
to common stockholders are recorded on the ex-date. Distributions to preferred stockholders
are accrued and determined as described in Note A-7.
On October 15, 2025, the Fund declared a monthly distribution to common stockholders
in the amount of $0.054170 per share, payable on November 17, 2025 to stockholders of record on October
31, 2025, with an ex-date of October 31, 2025. Subsequent to October 31, 2025, the Fund declared
a monthly distribution on November 17, 2025 to common stockholders in the amount of $0.054170 per share,
payable on December 15, 2025 to stockholders of record on November 28, 2025, with an ex-date
of November 28, 2025.
6
Expense allocation: Certain expenses are applicable to multiple funds within the complex of related investment companies. Expenses directly attributable to the Fund are charged to the
Fund. Expenses borne by the complex of related investment companies, which includes open-end and closed-end
investment
26
companies for which NBIA serves as investment manager, that are not directly attributable
to a particular investment company (e.g., the Fund) are allocated among the Fund and the other investment
companies or series thereof in the complex on the basis of relative net assets, except where a
more appropriate allocation of expenses to each of the investment companies or series thereof in the complex can
otherwise be made fairly.
7
Financial leverage: On July 1, 2014, the Fund issued 1,794 VMTPS. On April 1, 2019, December 16, 2021,
and September 16, 2024, the Fund extended the term of the VMTPS, most recently to
December 14, 2029.
The Fund’s VMTPS have a liquidation preference of $100,000 per share plus any accumulated unpaid distributions, whether or not earned or declared by the Fund, but excluding interest
thereon ("VMTPS Liquidation Value"). Distributions on the VMTPS are accrued daily and paid monthly
at a floating rate. For financial reporting purposes only, the liquidation preference of the VMTPS is recognized
as a liability in the Fund’s Statement of Assets and Liabilities.
Partial redemptions and shares outstanding after each partial redemption are as follows:
|
|
April 1, 2019
|
August 15, 2022
|
November 9, 2022
|
|||
|
|
Shares
Redeemed
|
Shares
Outstanding
|
Shares
Redeemed
|
Shares
Outstanding
|
Shares
Redeemed
|
Shares
Outstanding
|
|
|
90
|
1,704
|
47
|
1,657
|
200
|
1,457
|
On October 23, 2023 in connection with the reorganizations of two funds with and into
the Fund, the Fund issued 822 VMTPS. After such issuance, the Fund had 2,279 VMTPS outstanding.
The distribution rate for the Fund’s VMTPS is calculated based on the applicable SIFMA ("Securities Industry and Financial Markets Association") Municipal Swap Index plus a spread. The table
below sets forth key terms of the Fund’s VMTPS at October 31, 2025.
|
|
Series
|
Term
Redemption
Date
|
Shares
Outstanding
|
Aggregate
Liquidation
Preference
|
|
|
Series A
|
12/14/2029
|
2,279
|
$227,900,000
|
The Fund may redeem its VMTPS, in whole or in part, at its option after giving notice
to the relevant holders of its VMTPS. The Fund is also subject to certain restrictions relating to the VMTPS.
Failure to comply with these restrictions could preclude the Fund from declaring any distributions to common
stockholders or repurchasing common stock and/or could trigger the mandatory redemption of its VMTPS
at the VMTPS Liquidation Value. The holders of the VMTPS are entitled to one vote per share and
will vote with holders of common stock as a single class, except that the holders of the VMTPS will vote separately
as a class on certain matters, as required by law or the Fund’s organizational documents. The holders of the VMTPS, voting as a separate class, are entitled at all times to elect two Directors of the
Fund, and to elect a majority of the Directors of the Fund if the Fund fails to pay distributions on its VMTPS for
two consecutive years.
During the year ended October 31, 2025, the average aggregate liquidation preference
outstanding and average annualized distribution rate of the VMTPS were $227,900,000 and 4.02%, respectively.
8
Concentration of risk: The ability of the issuers of the debt securities held by the Fund to meet its obligations
may be affected by economic developments, including those particular to a specific
industry or region. The value of the Fund's securities are more susceptible to adverse economic, political,
regulatory or other factors affecting the issuers of such municipal bonds than a fund that does not limit its
investments to such issuers.
9
Securities lending: The Fund, using State Street Bank and Trust Company ("State Street") as its lending
agent, may loan securities to qualified brokers and dealers in exchange for negotiated lender’s fees. These fees, if any, would be disclosed within the Statement of Operations under the caption
"Income from securities loaned—net" and are net of expenses retained by State Street as compensation for its services as lending agent.
27
The initial collateral received by the Fund at the beginning of each transaction shall
have a value equal to at least 102% of the prior day’s market value of the loaned securities (105% in the case of international securities). Collateral in the form of cash and/or securities issued or guaranteed
by the U.S. government or its agencies, equivalent to at least 100% of the market value of securities, is maintained
at all times. Thereafter, the value of the collateral is monitored on a daily basis, and collateral
is moved daily between a counterparty and the Fund until the close of the transaction. Cash collateral is generally
invested in a money market fund registered under the 1940 Act that is managed by an affiliate of State
Street and is included in the Statement of Assets and Liabilities under the caption "Investments in securities, at value—Unaffiliated issuers." The total value of securities received as collateral for securities on loan
is included in a footnote following the Schedule of Investments, but is not included within the Statement of
Assets and Liabilities because the receiving Fund does not have the right to sell or repledge the securities
received as collateral. The risks associated with lending portfolio securities include, but are not limited
to, possible delays in receiving additional collateral or in the recovery of the loaned securities. Any increase
or decrease in the fair value of the securities loaned and any interest earned or dividends paid or owed on
those securities during the term of the loan would accrue to the Fund.
During the year ended October 31, 2025, the Fund did not participate in securities
lending.
10
Indemnifications: Like many other companies, the Fund's organizational documents provide that its officers
("Officers") and directors ("Directors") are indemnified against certain liabilities
arising out of the performance of their duties to the Fund. In addition, both in some of its principal
service contracts and in the normal course of its business, the Fund enters into contracts that provide indemnifications
to other parties for certain types of losses or liabilities. The Fund’s maximum exposure under these arrangements is unknown as this could involve future claims against the Fund.
11
Arrangements with certain non-affiliated service providers: In order to satisfy rating agency requirements, the Fund is required to provide the rating agency that rates its VMTPS a report on
a monthly basis verifying that the Fund is maintaining eligible assets having a discounted value equal to or
greater than the Preferred Shares Basic Maintenance Amount, which is a minimum level set by the rating agency
as one of the conditions to maintain its rating on the VMTPS. "Discounted value" refers to the fact
that the rating agency requires the Fund, in performing this calculation, to discount portfolio securities
below their face value, at rates determined by the rating agency. The Fund pays a fee to State Street for the
preparation of this report which is reflected in the Statement of Operations under the caption "Basic maintenance
(Note A)."
12
Segment Reporting: In this reporting period, the Fund has adopted FASB Accounting Standards Update No.
2023-07, "Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures"
("ASU 2023-07"). Adoption of the new standard impacted financial statement disclosures only
and did not affect the Fund’s financial position or the results of its operations. An operating segment is a component of a public entity that engages in business activities from which it may recognize revenues
and incur expenses, has operating results that are regularly reviewed by the entity’s chief operating decision maker ("CODM") in making resource allocation decisions and assessing segment performance, and for which
discrete financial information is available. The Fund’s investment manager acts as the Fund’s CODM. The CODM has determined that the Fund has a single operating segment because the CODM monitors
the operating results of the Fund as a whole and evaluates performance in accordance with the Fund’s principal investment strategy as disclosed in its prospectus and/or annual report. The CODM
uses these measures to assess Fund performance and allocate resources effectively. The Fund’s total returns, expense ratios, and changes in net assets, which among others are used by the CODM to assess Fund performance
and to make resource allocation decisions for the Fund’s single segment, are consistent with that presented within the Fund’s financial statements.
Note B—Investment Management Fees, Administration Fees, and Other Transactions with Affiliates:
The Fund retains NBIA as its investment manager under a Management Agreement. For
such investment management services, the Fund pays NBIA monthly, an investment management fee at an
annual rate of 0.25% of the Fund's average daily Managed Assets. Managed Assets equal the total assets
of the Fund, less
28
liabilities other than the aggregate indebtedness entered into for purposes of leverage.
For purposes of calculating Managed Assets, any VMTPS liquidation preference is not considered a liability.
The Fund retains NBIA as its administrator under an Administration Agreement. The
Fund pays NBIA monthly, an administration fee at an annual rate of 0.30% of its average daily Managed
Assets under this agreement. Additionally, NBIA retains State Street as its sub-administrator under
a Sub-Administration Agreement. NBIA pays State Street a fee for all services received under the Sub-Administration
Agreement.
Note C—Securities Transactions:
During the year ended October 31, 2025, there were purchase and sale transactions
of long-term securities of $202,247,699 and $197,922,338, respectively.
Note D—Recent Accounting Pronouncement:
In December 2023, FASB issued Accounting Standards Update No. 2023-09, "Improvements
to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 clarifies the guidance in ASC 740 "Income
Taxes" to enhance the transparency and decision-usefulness of income tax disclosures, particularly in
the rate reconciliation table and disclosures about income taxes paid. The amendments are intended to address investors’ requests for income tax disclosures that provide more information to help them better understand an entity’s exposure to potential changes in tax laws and the ensuing risks and opportunities
and to assess income tax information that affects cash flow forecasts and capital allocation decisions. ASU
2023-09 is effective for annual reporting periods beginning after December 15, 2024. Management is currently
evaluating the impact, if any, of applying ASU 2023-09.
29
Financial Highlights
Municipal Fund Inc.
The following table includes selected data for a share of common stock outstanding
throughout each fiscal period and other performance information derived from the financial statements. Amounts that
do not round to $0.01 or $(0.01) per share are presented as $0.00 or $(0.00), respectively. Ratios that
do not round to 0.01% or (0.01)% are presented as 0.00% or (0.00)%, respectively. A "—" indicates that the line item was not applicable in the corresponding fiscal period.
|
|
Year Ended October 31,
|
||||
|
|
2025
|
2024
|
2023
|
2022
|
2021
|
|
Common Stock Net Asset Value, Beginning of Year
|
$11.89
|
$10.68
|
$11.05
|
$14.88
|
$14.75
|
|
Income/(Loss) From Investment Operations Applicable to
Common Stockholders:
|
|
|
|
|
|
|
Net Investment Income/(Loss)a
|
0.50
|
0.44
|
0.44
|
0.61
|
0.73
|
|
Net Gains or (Losses) on Securities (both realized and
unrealized)
|
(0.33
)
|
1.29
|
(0.32
)
|
(3.78
)
|
0.15
|
|
Total From Investment Operations Applicable to Common
Stockholders
|
0.17
|
1.73
|
0.12
|
(3.17
)
|
0.88
|
|
Less Distributions to Common Stockholders From:
|
|
|
|
|
|
|
Net Investment Income
|
(0.50
)
|
(0.46
)
|
(0.49
)
|
(0.66
)
|
(0.75
)
|
|
Tax Return of Capital
|
(0.15
)
|
(0.06
)
|
—
|
—
|
—
|
|
Total Distributions to Common Stockholders
|
(0.65
)
|
(0.52
)
|
(0.49
)
|
(0.66
)
|
(0.75
)
|
|
Common Stock Net Asset Value, End of Year
|
$11.41
|
$11.89
|
$10.68
|
$11.05
|
$14.88
|
|
Common Stock Market Value, End of Year
|
$10.31
|
$10.84
|
$8.86
|
$9.64
|
$15.22
|
|
Total Return, Common Stock Net Asset Valueb,c
|
2.24
%
|
16.84
%
|
1.34
%
|
(21.57
)%
|
5.91
%
|
|
Total Return, Common Stock Market Valueb,c
|
1.33
%
|
28.40
%
|
(3.64
)%
|
(33.11
)%
|
12.92
%
|
|
Supplemental Data/Ratios
|
|
|
|
|
|
|
Net Assets Applicable to Common Stockholders, End of Year (in
millions)
|
$337.8
|
$352.3
|
$316.3
|
$208.1
|
$280.2
|
|
Preferred Stock Outstanding, End of Year (in millions)
|
$227.9
|
$227.9
|
$227.9
|
$165.7
|
$170.4
d
|
|
Preferred Stock Liquidation Value Per Share
|
$100,000
|
$100,000
|
$100,000
|
$100,000
|
$100,000
|
|
Ratios are Calculated Using Average Net Assets
Applicable to Common Stockholders
|
|
|
|
|
|
|
Ratio of Gross Expensese
|
3.87
%
|
4.04
%
|
3.90
%
|
2.25
%
|
1.58
%
|
|
Ratio of Net Expensese
|
3.87
%
|
4.04
%
|
3.90
%
|
2.25
%
|
1.58
%
|
|
Ratio of Net Investment Income/(Loss)
|
4.38
%
|
3.65
%
|
3.70
%
|
4.62
%
|
4.77
%
|
|
Portfolio Turnover Rate
|
35
%
|
59
%
|
32
%f
|
36
%
|
13
%
|
|
Asset Coverage Per Share of Preferred Stock, End of Yearg
|
$248,561
|
$254,959
|
$239,162
|
$225,878
|
$264,533
|
|
|
See Notes to Financial Highlights
30
Notes to Financial Highlights Municipal Fund Inc.
|
a
|
Calculated based on the average number of shares of common stock outstanding during
each fiscal period.
|
|
b
|
The class action proceeds received in 2024 had no impact on the Fund's total return
for the year ended
October 31, 2024.
|
|
c
|
Total return based on per share NAV reflects the effects of changes in NAV on the
performance of each
Fund during each fiscal period. Total return based on per share market value assumes
the purchase of
shares of common stock at the market price on the first day and sale of common stock
at the market price
on the last day of the period indicated. Dividends and distributions, if any, are
assumed to be reinvested at
prices obtained under each Fund's distribution reinvestment plan. Results represent
past performance and
do not indicate future results. Current returns may be lower or higher than the performance
data quoted.
Investment returns will fluctuate and shares of common stock when sold may be worth
more or less than
original cost.
|
|
d
|
Net of unamortized deferred issuance costs. The unamortized deferred issuance costs
were:
|
|
|
Year Ended October 31,
|
|
|
2021
|
|
|
$5,962
|
|
e
|
Distributions on VMTPS are included in expense ratios. The annualized ratios of distributions
on VMTPS to
average net assets applicable to common stockholders were:
|
|
|
Year Ended October 31,
|
||||
|
|
2025
|
2024
|
2023
|
2022
|
2021
|
|
|
2.73%
|
2.86%
|
2.70%
|
1.16%
|
0.56%
|
|
f
|
After the close of business on October 20, 2023, the Fund acquired the assets and
liabilities of Neuberger
Berman California Municipal Inc. ("California Fund") and Neuberger Berman New York
Municipal Fund Inc.
("New York Fund") in a tax-free exchange of shares pursuant to Agreements and Plans
of Reorganization
approved, as applicable, by each Fund’s Board of Directors and stockholders. Portfolio turnover excludes
purchases and sales of securities by California Fund and New York Fund.
|
|
g
|
Calculated by subtracting the Fund's total liabilities (excluding the liquidation
preference of VMTPS and
accumulated unpaid distributions on VMTPS) from the Fund's total assets and dividing
the result by the
outstanding liquidation preference per share of the VMTPS.
|
31
Report of Independent Registered Public Accounting Firm
To the Stockholders and Board of Directors of
Neuberger Municipal Fund Inc.
Neuberger Municipal Fund Inc.
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Neuberger
Municipal Fund Inc. (formerly, Neuberger Berman Municipal Fund Inc.) (the "Fund"), including the schedule of investments,
as of October 31, 2025 and the related statement of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended, the financial highlights for each
of the five years in the period then ended and the related notes (collectively referred to as the "financial statements").
In our opinion, the financial statements present fairly, in all material respects, the financial position
of the Fund at October 31, 2025, the results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended and its financial highlights for each of the five years in the period
then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required
to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the
applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor
were we engaged to perform, an audit of the Fund’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose
of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement
of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our procedures included confirmation of securities owned as of October
31, 2025, by correspondence with the custodian, brokers and others; when replies were not received
from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation
of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Neuberger investment companies since
1954.
Boston, Massachusetts
December 23, 2025
December 23, 2025
32
Fund Investment Objective, Policies and Risks
Investment Objective and Policies
The Fund’s investment objective is to provide a high level of current income exempt from federal income tax. There is no assurance that the Fund will achieve its investment objective.
The Fund seeks to achieve its investment objective by normally investing at least
80% of its total assets (including proceeds from the issuance of any preferred stock and the proceeds of any borrowings
for investment purposes) in securities of municipal issuers that provide interest income that is exempt from
federal income tax; however, the Fund may invest without limit in municipal securities the interest on which may be
an item of tax preference for purposes of the federal alternative minimum tax ("Tax Preference Item"). The Fund’s distributions are generally exempt from federal income tax, although stockholders may have to pay an alternative
minimum tax on income deemed to be a Tax Preference Item. A portion of the distributions you receive may
also be exempt from state and local income taxes, depending on where you live.
Municipal securities that provide interest income that is exempt from federal income
tax include securities issued by state and local governments, including U.S. territories and possessions, political
subdivisions, agencies and public authorities.
The Fund’s investment objective is not fundamental and may be changed by the Fund’s Board of Directors without stockholder approval, however, stockholders would be provided at least 60 days’ notice of any changes. The Fund’s policy of investing at least 80% of its total assets (including proceeds from the issuance of any preferred stock and the proceeds of any borrowings for investment purposes) in municipal securities
that provide interest income that is exempt from federal income tax is a fundamental policy that may not
be changed without the approval of the holders of a majority of the outstanding voting securities of the
Fund (as defined in the Investment Company Act of 1940, as amended (the "1940 Act")).
The Fund may invest in municipal obligations of any maturity or duration and does
not have a target maturity or duration. Under normal market conditions, the Fund will invest at least 70% of its
total assets in municipal securities that, at the time of investment, are rated within the four highest rating
categories by at least one independent credit rating agency or, if unrated, are determined by the Fund’s portfolio managers to be of comparable quality. The Fund may invest up to 30% of its total assets in municipal
securities that, at the time of investment, are rated Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by the Fund’s portfolio managers. The Fund will not invest more than 25% of its total assets in any industry and the Fund normally will not invest more than 5% of its total assets in
the securities of any single issuer. The Fund may invest more than 25% of its total assets in industrial development
bonds or in issuers located in the same state. The Fund may invest up to 20% of its total assets in securities
the interest income on which is subject to federal income tax. All percentage and ratings limitations on securities
in which the Fund may invest apply at the time of making an investment and shall not be considered violated as
a result of subsequent market movements or if an investment rating is subsequently downgraded to a rating that would
have precluded the Fund’s initial investment in such security.
The Fund uses leverage to pursue its investment objective and has issued Variable
Rate Municipal Term Preferred Shares (the "Preferred Shares"). Under the 1940 Act, the Fund is permitted to issue
debt up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its
total managed assets. The Fund may voluntarily elect to limit its leverage to less than the maximum amount permitted
under the 1940 Act. In addition, the Fund may also be subject to certain asset coverage, leverage or portfolio
composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.
33
The Fund may invest in all types of municipal bonds, including general obligation
bonds, revenue bonds and pre-refunded bonds. The Fund may invest in zero coupon bonds, which are issued at
substantial discounts from their value at maturity and pay no cash income to their holders until they mature.
The Fund may purchase municipal bonds that are additionally secured by insurance,
bank credit agreements, or escrow accounts. The credit quality of companies that provide such credit enhancements
will affect the value of those securities. Although the insurance feature reduces certain financial risks,
the premiums for insurance and the higher market price paid for insured obligations may reduce the Fund’s income. The insurance feature does not guarantee the market value of the insured obligations or the net asset value of the Fund’s shares of common stock.
As part of their fundamental investment analysis the portfolio managers consider financially
material environmental, social and governance factors they believe are financially material
to individual investments, where applicable, as described below. While this analysis is inherently subjective and may
be informed by both internally generated and third -party metrics, data and other information, the portfolio managers
believe that the consideration of financially material environmental, social and governance factors,
alongside traditional financial metrics, may improve credit analysis, security selection, relative value analysis and enhance the Fund’s overall investment process. The specific environmental, social and governance factors considered
and scope of integration may vary depending on the specific investment and/or investment type.
The consideration of environmental, social and governance factors does not apply to certain instruments,
such as certain derivative instruments, other registered investment companies, cash and cash equivalents. The
consideration of environmental, social and governance factors as part of the investment process does
not mean that the Fund pursues a specific "impact" or "sustainable" investment strategy.
Risk Factors
This section contains a discussion of principal risks of investing in the Fund. The
net asset value per share ("NAV") and market price of, and distributions paid on, the Fund’s shares of common stock will fluctuate with and be affected by, among other things, the risks more fully described below. As with any
fund, there can be no guarantee that the Fund will meet its investment objective or that the Fund’s performance will be positive for any period of time. Each of the following risks, which are described in alphabetical order
and not in order of importance, can significantly affect the Fund’s performance. The relative importance of, or potential exposure as a result of, each of these risks will vary based on market and other investment-specific
considerations. The Fund may be subject to other risks in addition to those identified below.
Anti-Takeover Provisions Risk. The Fund’s Articles of Incorporation and Bylaws include provisions that could limit the ability of other entities or persons to acquire control of the Fund or convert
the Fund to an open-end fund. If the Fund were converted to open-end status, the Fund would have to redeem
any preferred stock or prepay any other forms of leverage outstanding. By resolution of the Board, the Fund
has opted into the Maryland Control Share Acquisition Act and the Maryland Business Combination Act.
Call Risk. Upon the issuer’s desire to call a security, or under other circumstances where a security is called, which may happen for a number of reasons, such as declining interest rates or changes in
credit spreads, the issuer can opt to repay the obligation underlying a "callable security" early. When this occurs,
the Fund may have to reinvest the proceeds in an investment offering a lower yield or with a higher risk of default
and the Fund may not realize the full anticipated benefit from such investment. In addition, the Fund may also
realize a taxable gain or loss on such securities.
Closed-End Fund Risk. The Fund is a diversified, closed-end management investment company and designed
primarily for long-term investors. Closed-end funds differ from open-end management
investment companies (commonly known as mutual funds) because investors in a closed-end fund do not have
the right to redeem their shares on a daily basis. The Fund’s Common Stock may trade at a discount to the Fund’s NAV.
34
Credit Risk. Credit risk is the risk that issuers, guarantors, or insurers may fail, or become
less able or unwilling, to pay interest and/or principal when due. Changes in the actual or perceived creditworthiness
of an issuer or a downgrade or default affecting any of the Fund’s securities could affect the Fund’s performance by affecting the credit quality or value of the Fund’s securities. Generally, the longer the maturity and the lower the credit quality of a security, the more sensitive it is to credit risk.
Distressed Securities Risk. Distressed securities may present a substantial risk of default or may be in default.
Distressed securities involve the substantial risk that principal will not be repaid
and the Fund may lose a substantial portion or all of its investment. The Fund may not receive interest payments
on the distressed securities, which would not generate income for shareholders, and may incur costs
to protect its investment. The prices of such securities may be subject to periods of abrupt and erratic market movements
and above-average price volatility and it may be difficult to value such securities. In certain periods,
there may be little or no liquidity in the markets for distressed securities meaning that the Fund may be unable to exit
its position.
Interest Rate Risk. The Fund’s distribution rate and NAV will fluctuate in response to changes in interest rates. In general, the value of investments with interest rate risk, such as debt securities,
will move in the direction opposite to movements in interest rates. If interest rates rise, the value of such securities
may decline. Typically, the longer the maturity or duration of a debt security, the greater the effect a change in interest
rates could have on the security’s price. Thus, the sensitivity of the Fund’s debt securities to interest rate risk will increase with any increase in the duration of those securities.
Issuer-Specific Risk. An individual security may be more volatile, and may perform differently, than the
market as a whole.
Leverage Risk. The Fund’s use of leverage may cause higher volatility for the Fund’s NAV, market price, and distribution rate. Leverage typically magnifies the total return of the Fund’s portfolio, whether that return is positive or negative. Leverage is intended to increase common stock net income, but
there is no assurance that the Fund’s leveraging strategy will be successful or that the use of leverage will result in a higher yield on the Fund’s shares of common stock. Leverage may also increase the Fund’s liquidity risk, as the Fund may need to sell securities at inopportune times to stay within Fund, contractual or regulatory limits. The Fund’s use of leverage may increase operating costs, which may reduce total return. The Fund’s use of leverage may increase or decrease from time to time in its discretion and the Fund may, in the future, determine not
to use leverage.
Liquidity Risk. From time to time, the trading market for a particular investment in which the Fund
invests, or a particular type of instrument in which the Fund is invested, may become less liquid
or even illiquid. Illiquid investments frequently can be more difficult to purchase or sell at an advantageous
price or time, and there is a greater risk that the investments may not be sold for the price at which the Fund
is carrying them. Certain investments that were liquid when the Fund purchased them may become illiquid, sometimes
abruptly.
Additionally, market closures due to holidays or other factors may render a security
or group of securities (e.g., securities tied to a particular country or geographic region) illiquid for a period
of time. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities. Market prices for such securities or other investments
may be volatile. During periods of substantial market volatility, an investment or even an entire market segment
may become illiquid, sometimes abruptly, which can adversely affect the Fund’s ability to limit losses.
Lower-Rated Debt Securities Risk. Lower-rated debt securities (commonly known as "junk bonds") and unrated debt securities determined to be of comparable quality involve greater risks
than investment grade debt securities. Such securities may fluctuate more widely in price and yield and may fall
in price, sometimes abruptly, due to changes in interest rates, market activity, economic conditions, such as when
economic conditions are deteriorating or are expected to deteriorate, or other factors. These securities may
be less liquid, may require a greater degree of judgment to establish a price and may be difficult to sell at the
time and price the Fund desires. Lower-rated debt securities are considered by the major rating agencies to be predominantly
speculative with
35
respect to the issuer’s continuing ability to pay principal and interest and carry a greater risk that the issuer of such securities will default in the timely payment of principal and interest. Issuers of
securities that are in default or have defaulted may fail to resume principal or interest payments, in which case the
Fund may lose its entire investment. The creditworthiness of issuers of these securities may be more complex
to analyze than that of issuers of investment grade debt securities, and the overreliance on credit ratings
may present additional risks.
Market Premium/Discount Risk. The market price of the Fund’s shares of common stock will generally fluctuate in accordance with changes in the Fund’s NAV as well as the relative supply of and demand for shares on the secondary market. The Fund’s investment advisor cannot predict whether shares will trade below, at or above their NAV because the shares trade on the secondary market at market prices and not at NAV.
Because the market price of the shares of common stock will be determined by factors such as relative
supply of and demand for the shares of common stock in the market, general market and economic circumstances, and
other factors beyond the control of the Fund, the Fund cannot predict whether the shares of common stock
will trade at, below or above NAV. This characteristic is a risk separate and distinct from the risk that the Fund’s NAV could decrease as a result of investment activities. Common stockholders bear a risk of loss to the extent
that the price at which they sell their shares is lower in relation to the Fund’s NAV than at the time of purchase.
Municipal Securities Risk. The municipal securities market could be significantly affected by adverse political
and legislative changes, as well as uncertainties related to taxation or the rights of
municipal security holders. Changes in the financial health of a municipality or other issuer, or an insurer of municipal
securities, may make it difficult for it to pay interest and principal when due and may affect the overall municipal
securities market. To the extent that the Fund invests a significant portion of its assets in the municipal securities
of a particular state or U.S. territory or possession, there is greater risk that political, regulatory, economic
or other developments within that jurisdiction may have a significant impact on the Fund’s investment performance. Declines in real estate prices and general business activity may reduce the tax revenues of state and local governments.
Municipal issuers have on occasion defaulted on obligations, been downgraded, or commenced insolvency proceedings.
Because many municipal securities are issued to finance similar types of projects,
especially those related to education, health care, housing, transportation, and utilities, conditions in those
sectors can affect the overall municipal securities market. Interest on municipal securities paid out of current
or anticipated revenues from a specific project or specific asset (so-called "private activity bonds") are generally
not backed by the creditworthiness or taxing authority of the issuing governmental entity; rather, a
particular business or facility may be the only source of revenue supporting payment of interest and principal, and declines
in general business activity could affect the economic viability of that business or facility. To the
extent that the Fund earns interest income on private activity bonds, a part of its dividends will be a Tax Preference
Item.
Municipal bonds may be bought or sold at a market discount (i.e., a price less than the bond’s principal amount or, in the case of a bond issued with original issue discount ("OID"), a price less
than the amount of the issue price plus accrued OID). If the market discount is more than a de minimis amount,
and if the bond has a maturity date of more than one year from the date it was issued, then any market discount that
accrues annually, or any gains earned on the disposition of the bond, generally will be subject to federal
income taxation as ordinary (taxable) income rather than as capital gains. Some municipal securities, including
those in the high yield market, may include transfer restrictions similar to restricted securities (e.g., may only
be transferred to qualified institutional buyers and purchasers meeting other qualification requirements set by
the issuer). As such, it may be difficult to sell municipal securities at a time when it may otherwise be desirable
to do so or the Fund may be able to sell them only at prices that are less than what the Fund regards as their fair
market value.
Operational and Cybersecurity Risk. The Fund and its service providers, and your ability to transact with the Fund, may be negatively impacted due to operational matters arising from, among other
problems, human errors, processing and communications errors, counterparty and third-party disruptions or
errors, systems and technology disruptions or failures, use of or integration of artificial intelligence ("AI"),
or cybersecurity incidents. Cybersecurity incidents may allow an unauthorized party to gain access to fund assets, customer
data, or proprietary
36
information, or cause the Fund or its service providers, as well as the securities
trading venues and their service providers, to suffer data corruption or lose operational functionality, including
those related to critical functions. Cybersecurity incidents can result from deliberate attacks or unintentional events.
AI has enhanced the ability of threat actors to amplify the potency, scale, and speed of deliberate cybersecurity
attacks. It is not possible for the Manager or the other Fund service providers to identify all of the cybersecurity or
other operational risks that may affect the Fund or to develop processes and controls to completely eliminate or mitigate
their occurrence or effects. Most issuers in which the Fund invests are heavily dependent on computers
for data storage and operations, and require ready access to the internet to conduct their business. Thus,
cybersecurity incidents could also affect issuers of securities in which the Fund invests, leading to significant
loss of value.
Recent Market Conditions. Both U.S. and international markets have experienced significant volatility in recent
years. As a result of such volatility, investment returns may fluctuate significantly.
National economies are substantially interconnected, as are global financial markets, which creates the possibility
that conditions in one country or region might adversely impact issuers in a different country or region.
However, the interconnectedness of economies and/or markets may be diminishing or changing, which may impact such
economies and markets in ways that cannot be foreseen at this time.
Some countries, including the U.S., have adopted more protectionist trade policies,
which is a trend that appears to be continuing globally. Slowing global economic growth, the rise in protectionist
trade policies, inflationary pressures, changes to some major international trade and security agreements, risks
associated with the trade and security agreement between countries and regions, including the U.S. and other foreign
nations, political or economic dysfunction within some countries or regions, including the U.S., and dramatic
changes in consumer sentiment, commodity prices and currency values could affect the economies and markets
of many nations, including the U.S., in ways that cannot necessarily be foreseen at the present time
and may create significant volatility in the markets. In addition, these policies, including the impact on the
U.S. dollar, may decrease foreign demand for U.S. assets, which could have a negative impact on certain issuers and/or
industries.
The Federal Reserve and certain foreign central banks have started to lower interest
rates, though economic or other factors, such as inflation, could stop such changes. It is difficult to accurately
predict the pace at which interest rates might change, the timing, frequency or magnitude of any such changes
in interest rates, or when such changes might stop or again reverse course. Additionally, various economic and
political factors could cause the Federal Reserve or other foreign central banks to change their approach in the
future and such actions may result in an economic slowdown both in the U.S. and abroad. Unexpected changes in
interest rates could lead to significant market volatility or reduce liquidity in certain sectors of the market.
Deteriorating economic fundamentals may, in turn, increase the risk of default or insolvency of particular
issuers, negatively impact market value, cause credit spreads to widen, and reduce bank balance sheets. Any of these
could cause an increase in market volatility, reduce liquidity across various markets or decrease confidence
in the markets.
Regulators in the U.S. have adopted a number of changes to regulations involving the
markets and issuers, some of which apply to the Fund. The full effect of such regulations is not currently known
and certain changes to regulation could limit the Fund’s ability to pursue its investment strategies or make certain investments, may make it more costly for it to operate, or adversely impact performance. Additionally, it
is possible that such regulations could be further revised or rescinded, which creates material uncertainty on their
impact to the Fund.
Advancements in technology, including advanced development and increased regulation
of artificial intelligence, may adversely impact market movements and liquidity. As artificial intelligence is
used more widely, which can occur relatively rapidly, the profitability and growth of certain issuers and industries
may be negatively impacted in ways that cannot be foreseen and could adversely impact its performance.
Tensions, war, or open conflict between nations, such as between Russia and Ukraine,
in the Middle East, or in eastern Asia could affect the economies of many nations, including the United States.
The duration of ongoing hostilities and any sanctions and related events cannot be predicted. Those events
present material uncertainty
37
and risk with respect to markets globally and the performance of the Fund and its
investments or operations could be negatively impacted.
An economic slowdown could cause municipal issuers to suffer declines in tax revenue
and it may be difficult to evaluate the effect on any single issuer. Some municipal issuers may be prohibited
by law from borrowing, and those that can borrow may face higher interest rates. This situation may result in
disruption of municipal programs and services.
High public debt in the U.S. and other countries creates ongoing systemic and market
risks and policymaking uncertainty. There is no assurance that the U.S. Congress will act to raise the nation’s debt ceiling; a failure to do so could cause market turmoil and substantial investment risks that cannot now be
fully predicted. Unexpected political, regulatory and diplomatic events within the U.S. and abroad may affect
investor and consumer confidence and may adversely impact financial markets and the broader economy.
Global climate change can have potential effects on property and security values.
Certain issuers, industries and regions may be adversely affected by the impact of climate change in ways that cannot
be foreseen. The impact of legislation, regulation and international accords related to climate change, including
any direct or indirect consequences that may not be foreseen, may negatively impact certain issuers, industries
and regions.
Risk Management. Risk is an essential part of investing. No risk management program can eliminate the Fund’s exposure to adverse events; at best, it may only reduce the possibility that the Fund
will be affected by such events, and especially those risks that are not intrinsic to the Fund’s investment program. The Fund could experience losses if judgments about risk prove to be incorrect.
Sector Risk. From time to time, based on market or economic conditions, the Fund may have significant
positions in one or more sectors of the market. To the extent the Fund invests more heavily
in particular sectors, its performance will be especially sensitive to developments that significantly affect
those sectors. Individual sectors or sub-sectors may be more volatile, and may perform differently, than the broader
market. The industries that constitute a sector may all react in the same way to economic, political or regulatory
events.
Shareholder Activism Risk. Shareholder activism can take many forms, including making public demands that the Fund consider certain alternatives, engaging in public campaigns to attempt to influence the Fund’s governance and/or management, commencing proxy contests in an effort to elect the activists’ representatives or others to the Fund’s Board of Directors or to seek other actions such as a tender offer or Fund liquidation, and commencing litigation. Shareholder activism arises in a variety of situations and
has been increasing in the closed-end fund space recently, including litigation challenging closed-end fund defenses.
Due to the potential volatility of the Fund’s common stock market price and for a variety of other reasons, the Fund may become the target of shareholder activism. Shareholder activism could result in substantial costs and divert Management’s and the Fund’s Board’s attention and resources from its business. Also, the Fund may be required to incur significant legal and other expenses related to any activist shareholder matters. Further, the Fund’s stock price could be subject to significant fluctuation or otherwise be adversely affected by the events,
risks and uncertainties of any shareholder activism. Shareholder activists seek short-term actions that can increase
Fund costs per share and be detrimental to other stockholders.
Tender Option Bonds and Related Securities Risk. The Fund’s use of tender option bonds may reduce the Fund’s return and/or increase volatility. Tender option bonds are created when municipal bonds are deposited into a trust or other special purpose vehicle, which issues two classes of certificates
with varying economic interests. Holders of the first class of interests, or floating rate certificates, receive tax-exempt
interest based on short-term rates and may tender the certificates to the trust at face value. A remarketing agent
for the trust is required to attempt to resell any tendered floating rate certificates and if the remarketing agent is unsuccessful, the trust’s liquidity provider must contribute cash to ensure that the tendering holders receive
the purchase price of their securities on the repurchase date. Holders of the second class of interests, or residual
income certificates (commonly referred to as "inverse floaters"), receive tax-exempt interest at a rate
based on the difference
38
between the interest rate earned on the underlying bonds and the interest paid to
floating rate certificate holders, and bear the risk that the underlying bonds decline in value. The distributions from
inverse floaters will be reduced (and potentially eliminated) if short-term interest rates increase. Investments in
tender option bonds expose the Fund to counterparty risk and leverage risk. Tender option bonds may have some of
the same characteristics as an investment in derivatives. An investment in tender option bonds typically will involve
greater risk than an investment in a municipal fixed rate security, including greater risk of loss of principal.
Certain tender option bonds may be illiquid. In certain instances, a trust may be terminated if, for example,
the issuer of the underlying bond defaults on interest payments, the credit rating assigned to the issuer of the
underlying bond is downgraded, or tendered floating rate certificates cannot be resold.
Valuation Risk. The Fund may not be able to sell an investment at the price at which the Fund has
valued the investment. Such differences could be significant, particularly for illiquid securities
and securities that trade in relatively thin markets and/or markets that experience extreme volatility. If market
or other conditions make it difficult to value an investment, the Fund may be required to value such investments
using more subjective methods, known as fair value methodologies. Using fair value methodologies to price
investments may result in a value that is different from an investment’s most recent price and from the prices used by other funds to calculate their NAVs. The Fund uses pricing services to provide values for certain securities
and there is no assurance that the Fund will be able to sell an investment at the price established by such pricing services. The Fund’s ability to value its investments in an accurate and timely manner may be impacted by technological
issues and/or errors by third party service providers, such as pricing services or accounting agents.
39
Distribution Reinvestment Plan for the Fund
Equiniti Trust Company, LLC (the "Plan Agent") will act as Plan Agent for stockholders
who have not elected in writing to receive dividends and distributions in cash (each a "Participant"), will
open an account for each Participant under the Distribution Reinvestment Plan ("Plan") in the same name as
their then-current shares of the Fund’s common stock ("Shares") are registered, and will put the Plan into effect for each Participant as of the first record date for a dividend or capital gains distribution.
Whenever the Fund declares a dividend or distribution with respect to the Shares,
each Participant will receive such dividends and distributions in additional Shares, including fractional Shares
acquired by the Plan Agent and credited to each Participant’s account. If on the payment date for a cash dividend or distribution, the net asset value is equal to or less than the market price per Share plus estimated brokerage
commissions, the Plan Agent shall automatically receive such Shares, including fractions, for each Participant’s account. Except in the circumstances described in the next paragraph, the number of additional Shares to
be credited to each Participant’s account shall be determined by dividing the dollar amount of the dividend or distribution payable on their Shares by the greater of the net asset value per Share determined as of the
date of purchase or 95% of the then-current market price per Share on the payment date.
Should the net asset value per Share exceed the market price per Share plus estimated
brokerage commissions on the payment date for a cash dividend or distribution, the Plan Agent or a broker-dealer
selected by the Plan Agent shall endeavor, for a purchase period lasting until the last business day before the
next date on which the Shares trade on an "ex-dividend" basis, but in no event, except as provided below, more than
30 days after the payment date, to apply the amount of such dividend or distribution on each Participant’s Shares (less their pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open-market purchases in connection with the reinvestment of such dividend or distribution) to purchase Shares on the open market for each Participant’s account. No such purchases may be made more than 30 days after the payment date for
such dividend or distribution except where temporary curtailment or suspension of purchase is necessary
to comply with applicable provisions of federal securities laws. If, at the close of business on any day during
the purchase period the net asset value per Share equals or is less than the market price per Share plus estimated
brokerage commissions, the Plan Agent will not make any further open-market purchases in connection with the
reinvestment of such dividend or distribution. If the Plan Agent is unable to invest the full dividend
or distribution amount through open-market purchases during the purchase period, the Plan Agent shall request that,
with respect to the uninvested portion of such dividend or distribution amount, the Fund issue new Shares
at the close of business on the earlier of the last day of the purchase period or the first day during the purchase
period on which the net asset value per Share equals or is less than the market price per Share, plus estimated
brokerage commissions, such Shares to be issued in accordance with the terms specified in the third paragraph
hereof. These newly issued Shares will be valued at the then-current market price per Share at the time such
Shares are to be issued.
For purposes of making the reinvestment purchase comparison under the Plan, (a) the
market price of the Shares on a particular date shall be the last sales price on the New York Stock Exchange
(or if the Shares are not listed on the New York Stock Exchange, such other exchange on which the Shares are principally
traded) on that date, or, if there is no sale on such Exchange (or if not so listed, in the over-the-counter market)
on that date, then the mean between the closing bid and asked quotations for such Shares on such Exchange on such
date and (b) the net asset value per Share on a particular date shall be the net asset value per Share
most recently calculated by or on behalf of the Fund. All dividends, distributions and other payments (whether made
in cash or Shares) shall be made net of any applicable withholding tax.
Open-market purchases provided for above may be made on any securities exchange where the Fund’s Shares are traded, in the over-the-counter market or in negotiated transactions and may be on
such terms as to price, delivery and otherwise as the Plan Agent shall determine. Each Participant’s uninvested funds held by the Plan Agent will not bear interest, and it is understood that, in any event, the Plan Agent
shall have no liability in
40
connection with any inability to purchase Shares within 30 days after the initial
date of such purchase as herein provided, or with the timing of any purchases effected. The Plan Agent shall have
no responsibility as to the value of the Shares acquired for each Participant’s account. For the purpose of cash investments, the Plan Agent may commingle each Participant’s funds with those of other stockholders of the Fund for whom the Plan Agent similarly acts as agent, and the average price (including brokerage commissions) of
all Shares purchased by the Plan Agent as Plan Agent shall be the price per Share allocable to each Participant
in connection therewith.
The Plan Agent may hold each Participant’s Shares acquired pursuant to the Plan together with the Shares of other stockholders of the Fund acquired pursuant to the Plan in noncertificated form in the Plan Agent’s name or that of the Plan Agent’s nominee. The Plan Agent will forward to each Participant any proxy solicitation material and will vote any Shares so held for each Participant only in accordance with the
instructions set forth on proxies returned by the Participant to the Fund.
The Plan Agent will confirm to each Participant each acquisition made for their account
as soon as practicable but not later than 60 days after the date thereof. Although each Participant may from
time to time have an undivided fractional interest (computed to three decimal places) in a Share, no certificates
for a fractional Share will be issued. However, dividends and distributions on fractional Shares will be credited to each Participant’s account. In the event of termination of a Participant’s account under the Plan, the Plan Agent will adjust for any such undivided fractional interest in cash at the market value of the Shares at the time
of termination, less the pro rata expense of any sale required to make such an adjustment.
Any Share dividends or split Shares distributed by the Fund on Shares held by the
Plan Agent for Participants will be credited to their accounts. In the event that the Fund makes available to its stockholders
rights to purchase additional Shares or other securities, the Shares held for each Participant under
the Plan will be added to other Shares held by the Participant in calculating the number of rights to be issued to
each Participant.
The Plan Agent’s service fee for handling capital gains and other distributions or income dividends will be paid by the Fund. Participants will be charged their pro rata share of brokerage commissions
on all open-market purchases.
Each Participant may terminate their account under the Plan by notifying the Plan
Agent in writing. Such termination will be effective immediately if the Participant’s notice is received by the Plan Agent not less than ten days prior to any dividend or distribution record date, otherwise such termination
will be effective the first trading day after the payment date for such dividend or distribution with respect to any subsequent
dividend or distribution. The Plan may be terminated by the Plan Agent or the Fund upon notice
in writing mailed to each Participant at least 30 days prior to any record date for the payment of any dividend
or distribution by the Fund.
These terms and conditions may be amended or supplemented by the Plan Agent or the
Fund at any time or times but, except when necessary or appropriate to comply with applicable law or the
rules or policies of the Securities and Exchange Commission or any other regulatory authority, only by mailing
to each Participant appropriate written notice at least 30 days prior to the effective date thereof. The
amendment or supplement shall be deemed to be accepted by each Participant unless, prior to the effective
date thereof, the Plan Agent receives written notice of the termination of their account under the Plan. Any such
amendment may include an appointment by the Plan Agent in its place and stead of a successor Plan Agent under
these terms and conditions, with full power and authority to perform all or any of the acts to be performed by
the Plan Agent under these terms and conditions. Upon any such appointment of any Plan Agent for the purpose
of receiving dividends and distributions, the Fund will be authorized to pay to such successor Plan Agent, for each Participant’s account, all dividends and distributions payable on Shares held in their name or under the Plan
for retention or application by such successor Plan Agent as provided in these terms and conditions.
The Plan Agent shall at all times act in good faith and agrees to use its best efforts
within reasonable limits to ensure the accuracy of all services performed under this Agreement and to comply with
applicable law, but assumes no responsibility and shall not be liable for loss or damage due to errors
unless such error is caused by
41
the Plan Agent’s negligence, bad faith, or willful misconduct or that of its employees. These terms and conditions are governed by the laws of the State of Maryland.
Reinvested dividends and distributions are taxed in the same manner as cash dividends and distributions — i.e., reinvestment in additional Shares does not relieve stockholders of, or defer the need
to pay, any income tax that may be payable (or that is required to be withheld) on Fund dividends and distributions.
Participants should contact their tax professionals for information on how the Plan impacts their personal
tax situation. For additional information about the Plan, please contact the Plan Agent by telephone at 1-866-227-2136
or by mail at P.O. Box 10027, Newark, NJ 07101-3027 or online at https://equiniti.com/us/ast-access/individuals.
42
Directory
Investment Manager and Administrator
Neuberger Berman Investment Advisers LLC
1290 Avenue of the Americas
New York, NY 10104-0002
877.461.1899
1290 Avenue of the Americas
New York, NY 10104-0002
877.461.1899
Custodian
State Street Bank and Trust Company
One Congress Street, Suite 1
Boston, MA 02114-2016
One Congress Street, Suite 1
Boston, MA 02114-2016
Transfer Agent
Equiniti Trust Company, LLC
48 Wall Street, Floor 23
New York, NY 10005
Shareholder Services 866.227.2136
48 Wall Street, Floor 23
New York, NY 10005
Shareholder Services 866.227.2136
Plan Agent
Equiniti Trust Company, LLC
P.O. Box 10027
Newark, NJ 07101-3027
P.O. Box 10027
Newark, NJ 07101-3027
Overnight correspondence should be sent to:
Equiniti Trust Company, LLC
55 Challenger Road 2nd Floor
Ridgefield Park, NJ 07660
Equiniti Trust Company, LLC
55 Challenger Road 2nd Floor
Ridgefield Park, NJ 07660
Legal Counsel
K&L Gates LLP
1601 K Street, NW
Washington, DC 20006-1600
1601 K Street, NW
Washington, DC 20006-1600
Independent Registered Public Accounting Firm
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
200 Clarendon Street
Boston, MA 02116
43
Directors and Officers
The following tables set forth information concerning the Directors and Officers of
the Fund. All persons named as Directors and Officers also serve in similar capacities for other funds administered
or managed by NBIA. The Fund’s Statement of Additional Information includes additional information about the Directors as of the time of the Fund’s most recent public offering and is available upon request, without charge, by calling (877) 461-1899.
Information about the Board of Directors
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length of
Time Served(2)
|
Principal Occupation(s)(3)
|
Number of
Funds in
Fund Complex
Overseen by
Director
|
Other Directorships Held
Outside Fund Complex by
Director(3)
|
|
CLASS I
|
||||
|
Independent Directors
|
||||
|
Marc Gary (1952)
|
Director since
2015
|
Executive Vice Chancellor
Emeritus, The Jewish
Theological Seminary, since
2020; formerly, Executive
Vice Chancellor and Chief
Operating Officer, The
Jewish Theological Seminary,
2012 to 2020; formerly,
Executive Vice President and
General Counsel, Fidelity
Investments, 2007 to 2012;
formerly, Executive Vice
President and General
Counsel, BellSouth
Corporation, 2004 to 2007;
formerly, Vice President and
Associate General Counsel,
BellSouth Corporation, 2000
to 2004; formerly, Associate,
Partner, and National
Litigation Practice Co-Chair,
Mayer, Brown LLP, 1981 to
2000; formerly, Associate
Independent Counsel, Office
of Independent Counsel,
1990 to 1992.
|
46
|
Director, Jewish Federation
of Atlanta, since 2023;
Director, Israel Policy Forum,
since 2023; Director, JCC of
Westchester, since 2022;
Director, Jewish Democratic
Counsel of America, since
2022; Chair and Director,
USCJ Supporting
Foundation, since 2021;
Director, UJA Federation of
Greater New York, since
2019; Trustee, The Jewish
Theological Seminary, since
2014; Director, Lawyers
Committee for Civil Rights
Under Law (not-for-profit),
since 2005; formerly,
Director, Jewish Federation
of New York, 2017 to 2023;
formerly, Director, Legility,
Inc. (privately held for-profit
company), 2012 to 2021;
formerly, Director, Equal
Justice Works
(not-for-profit), 2005 to
2014; formerly, Director,
Corporate Counsel Institute,
Georgetown University Law
Center, 2007 to 2012;
formerly, Director, Greater
Boston Legal Services
(not-for-profit), 2007 to
2012.
|
44
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length of
Time Served(2)
|
Principal Occupation(s)(3)
|
Number of
Funds in
Fund Complex
Overseen by
Director
|
Other Directorships Held
Outside Fund Complex by
Director(3)
|
|
Martha C. Goss (1949)
|
Director since
2007
|
Formerly, President, Woodhill
Enterprises Inc./Chase
Hollow Associates LLC
(personal investment
vehicle), 2006 to 2020;
formerly, Consultant,
Resources Global
Professionals (temporary
staffing), 2002 to 2006;
formerly, Chief Financial
Officer, Booz-Allen &
Hamilton, Inc., 1995 to
1999; formerly, Enterprise
Risk Officer, Prudential
Insurance, 1994 to 1995;
formerly, President,
Prudential Asset
Management Company,
1992 to 1994; formerly,
President, Prudential Power
Funding (investments in
electric and gas utilities and
alternative energy projects),
1989 to 1992; formerly,
Treasurer, Prudential
Insurance Company, 1983 to
1989.
|
46
|
Director, American Water
(water utility), since 2003;
Director, Allianz Life of New
York (insurance), since 2005;
formerly, Director, Berger
Group Holdings, Inc.
(engineering consulting
firm), 2013 to 2018;
formerly, Director, Financial
Women’s Association of
New York (not-for-profit
association), 1987 to 1996
and 2003 to 2019; Trustee
Emerita, Brown University,
since 1998; Director,
Museum of American
Finance (not-for-profit), since
2013; formerly,
Non-Executive Chair and
Director, Channel
Reinsurance (financial
guaranty reinsurance), 2006
to 2010; formerly, Director,
Ocwen Financial Corporation
(mortgage servicing), 2005
to 2010; formerly, Director,
Claire’s Stores, Inc. (retailer),
2005 to 2007; formerly,
Director, Parsons
Brinckerhoff Inc.
(engineering consulting
firm), 2007 to 2010;
formerly, Director, Bank
Leumi (commercial bank),
2005 to 2007; formerly,
Advisory Board Member,
Attensity (software
developer), 2005 to 2007;
formerly, Director, Foster
Wheeler Manufacturing,
1994 to 2004; formerly,
Director, Dexter Corp.
(Manufacturer of
Non-Wovens, Plastics, and
Medical Supplies), 1992 to
2001.
|
45
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length of
Time Served(2)
|
Principal Occupation(s)(3)
|
Number of
Funds in
Fund Complex
Overseen by
Director
|
Other Directorships Held
Outside Fund Complex by
Director(3)
|
|
Michael M. Knetter (1960)
|
Director since
2007
|
President and Chief
Executive Officer, University
of Wisconsin Foundation,
since 2010; formerly, Dean,
School of Business,
University of Wisconsin -
Madison; formerly, Professor
of International Economics
and Associate Dean, Amos
Tuck School of Business -
Dartmouth College, 1998 to
2002.
|
46
|
Director, 1WS Credit Income
Fund, since 2018; Board
Member, American Family
Insurance (a mutual
company, not publicly
traded), since March 2009;
formerly, Trustee,
Northwestern Mutual
Series Fund, Inc., 2007 to
2011; formerly, Director,
Wausau Paper, 2005 to
2011; formerly, Director,
Great Wolf Resorts, 2004 to
2009.
|
|
|
|
|
|
|
46
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length of
Time Served(2)
|
Principal Occupation(s)(3)
|
Number of
Funds in
Fund Complex
Overseen by
Director
|
Other Directorships Held
Outside Fund Complex by
Director(3)
|
|
CLASS II
|
||||
|
Independent Directors
|
||||
|
Michael J. Cosgrove (1949)
|
Director since
2015
|
President, Carragh
Consulting USA, since 2014;
formerly, Executive, General
Electric Company, 1970 to
2014, including President,
Mutual Funds and Global
Investment Programs, GE
Asset Management, 2011 to
2014, President and Chief
Executive Officer, Mutual
Funds and Intermediary
Business, GE Asset
Management, 2007 to
2011, President, Institutional
Sales and Marketing, GE
Asset Management, 1998 to
2007, and Chief Financial
Officer, GE Asset
Management, and Deputy
Treasurer, GE Company,
1988 to 1993.
|
46
|
Member of Advisory Board,
Burke Neurological Institute,
since 2021; Parish Councilor,
St. Pius X, since 2021, and
Treasurer, since 2020;
formerly, Director, America
Press, Inc. (not-for-profit
Jesuit publisher), 2015 to
2021; formerly, Director,
Fordham University, 2001 to
2018; formerly, Director, The
Gabelli Go Anywhere Trust,
June 2015 to June 2016;
formerly, Director, Skin
Cancer Foundation
(not-for-profit), 2006 to
2015; formerly, Director, GE
Investments Funds, Inc.,
1997 to 2014; formerly,
Trustee, GE Institutional
Funds, 1997 to 2014;
formerly, Director, GE Asset
Management, 1988 to
2014; formerly, Director,
Elfun Trusts, 1988 to 2014;
formerly, Trustee, GE Pension
& Benefit Plans, 1988 to
2014; formerly, Member of
Board of Governors,
Investment Company
Institute.
|
|
Ami G. Kaplan (1960)
|
Director since
2023
|
Formerly, Partner,
Deloitte LLP, 1982 to 2023,
including Vice Chair, 2017 to
2020; formerly, President
and Board Chair, Women’s
Forum of New York, 2014 to
2016.
|
46
|
None.
|
47
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length of
Time Served(2)
|
Principal Occupation(s)(3)
|
Number of
Funds in
Fund Complex
Overseen by
Director
|
Other Directorships Held
Outside Fund Complex by
Director(3)
|
|
Deborah C. McLean (1954)
|
Director since
2015
|
Member, Circle Financial
Group (private wealth
management membership
practice), since 2011;
Managing Director, Golden
Seeds LLC (an angel
investing group), since 2009;
Adjunct Professor (Corporate
Finance), Columbia
University School of
International and Public
Affairs, since 2008; formerly,
Visiting Assistant Professor,
Fairfield University, Dolan
School of Business, Fall
2007; formerly, Adjunct
Associate Professor of
Finance, Richmond, The
American International
University in London, 1999
to 2007.
|
46
|
Board Member, The
Maritime Aquarium at
Norwalk, since 2020; Board
Member, Norwalk
Community College
Foundation, since 2014;
formerly, Dean’s Advisory
Council, Radcliffe Institute
for Advanced Study, 2014 to
2023; formerly, Director and
Treasurer, At Home in Darien
(not-for-profit), 2012 to
2014; formerly, Director,
National Executive Service
Corps (not-for-profit), 2012
to 2013; formerly, Trustee,
Richmond, The American
International University in
London, 1999 to 2013.
|
|
Paul M. Nakasone (1963)
|
Director since
2024
|
Formerly, Director, National
Security Agency, 2018 to
2024; formerly, Commander,
U.S. Cyber Command,
2018-2024.
|
46
|
None.
|
|
|
|
|
|
|
48
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length of
Time Served(2)
|
Principal Occupation(s)(3)
|
Number of
Funds in
Fund Complex
Overseen by
Director
|
Other Directorships Held
Outside Fund Complex by
Director(3)
|
|
CLASS III
|
||||
|
Independent Directors
|
||||
|
Tom D. Seip (1950)
|
Director since
2002; Chair of
the Board since
2008; Lead
Independent
Director from
2006 to 2008
|
Formerly, Managing
Member, Ridgefield
Farm LLC (a private
investment vehicle), 2004 to
2016; formerly, President
and CEO, Westaff, Inc.
(temporary staffing), May
2001 to January 2002;
formerly, Senior Executive,
The Charles Schwab
Corporation, 1983 to 1998,
including Chief Executive
Officer, Charles Schwab
Investment Management,
Inc.; formerly, Trustee,
Schwab Family of Funds and
Schwab Investments, 1997
to 1998; formerly, Executive
Vice President-Retail
Brokerage, Charles Schwab
& Co., Inc., 1994 to 1997.
|
46
|
Trustee, University of
Maryland, Shore Regional
Health System, since 2020;
formerly, Director, H&R
Block, Inc. (tax services
company), 2001 to 2018;
formerly, Director, Talbot
Hospice Inc., 2013 to 2016;
formerly, Chairman,
Governance and Nominating
Committee, H&R Block, Inc.,
2011 to 2015; formerly,
Chairman, Compensation
Committee, H&R Block, Inc.,
2006 to 2010; formerly,
Director, Forward
Management, Inc. (asset
management company),
1999 to 2006.
|
|
Franklyn E. Smith (1961)
|
Director since
2023
|
Formerly, Partner,
PricewaterhouseCoopers LLP,
1989 to 2021.
|
46
|
Director, Zurich American
Insurance Company, Zurich
American Life Insurance
Company and Zurich
American Life Insurance
Company of New York, since
2023.
|
|
|
|
|
|
|
49
|
Name, (Year of Birth),
and Address(1)
|
Position(s)
and Length of
Time Served(2)
|
Principal Occupation(s)(3)
|
Number of
Funds in
Fund Complex
Overseen by
Director
|
Other Directorships Held
Outside Fund Complex by
Director(3)
|
|
Director who is an "Interested Person"
|
||||
|
Joseph V. Amato* (1962)
|
Chief Executive
Officer and
President since
2018; Director
since 2009
|
President and Director,
Neuberger Berman
Group LLC, since 2009;
President and Chief
Executive Officer, Neuberger
Berman BD LLC and
Neuberger Berman
Holdings LLC (including its
predecessor, Neuberger
Berman Inc.), since 2007;
Chief Investment Officer
(Equities) and President
(Equities), NBIA (formerly,
Neuberger Berman Fixed
Income LLC and including
predecessor entities), since
2007, and Board Member of
NBIA, since 2006; formerly,
Global Head of Asset
Management of Lehman
Brothers Holdings Inc.’s
("LBHI") Investment
Management Division, 2006
to 2009; formerly, member
of LBHI’s Investment
Management Division’s
Executive Management
Committee, 2006 to 2009;
formerly, Managing Director,
Lehman Brothers Inc.
("LBI"), 2006 to 2008;
formerly, Chief Recruiting
and Development Officer,
LBI, 2005 to 2006; formerly,
Global Head of LBI’s Equity
Sales and a Member of its
Equities Division Executive
Committee, 2003 to 2005;
President and Chief
Executive Officer, ten
registered investment
companies for which NBIA
acts as investment manager
and/or administrator.
|
46
|
Member of Board of
Advisors, McDonough
School of Business,
Georgetown University, since
2001; Member of New York
City Board of Advisors, Teach
for America, since 2005;
Trustee, Montclair Kimberley
Academy (private school),
since 2007; Member of
Board of Regents,
Georgetown University, since
2013.
|
(1)
The business address of each listed person is 1290 Avenue of the Americas, New York,
NY 10104.
(2)
The Board shall at all times be divided as equally as possible into three classes
of Directors designated Class I, Class II and Class III. The Class I, Class II and Class III Directors shall serve
until the Annual Meeting of
50
Stockholders held in 2027, 2028 and 2026, respectively, and then until each third
Annual Meeting of Stockholders thereafter, or until their successors have been duly elected and qualified.
(3)
Except as otherwise indicated, each individual has held the positions shown during
at least the last five years.
*
Indicates a Director who is an "interested person" within the meaning of the 1940
Act. Mr. Amato is an interested person of the Fund by virtue of the fact that he is an officer of NBIA
and/or its affiliates.
51
Information about the Officers of the Fund
|
Name, (Year of Birth), and
Address(1)
|
Position(s) and
Length of Time
Served(2)
|
Principal Occupation(s)(3)
|
|
Claudia A. Brandon (1956)
|
Executive Vice
President since
2008 and
Secretary since
2003
|
Senior Vice President, Neuberger, since 2007 and Employee since 1999;
Senior Vice President, NBIA, since 2008 and Assistant Secretary since 2004;
formerly, Vice President, Neuberger, 2002 to 2006; formerly, Vice
President, Mutual Fund Board Relations, NBIA, 2000 to 2008; formerly,
Vice President, NBIA, 1986 to 1999 and Employee, 1984 to 1999;
Executive Vice President and Secretary, twenty-eight registered investment
companies for which NBIA acts as investment manager and/or
administrator.
|
|
Anthony DiBernardo (1979)
|
Assistant
Treasurer since
2011
|
Senior Vice President, Neuberger, since 2014; Senior Vice President, NBIA,
since 2014, and Employee since 2003; formerly, Vice President, Neuberger,
2009 to 2014; Assistant Treasurer, ten registered investment companies for
which NBIA acts as investment manager and/or administrator.
|
|
Scott D. Hogan (1970)
|
Chief
Compliance
Officer since
May 2025
|
Senior Vice President, NBIA, and Chief Compliance Officer, twenty-eight
registered investment companies for which NBIA acts as investment
manager and/or administrator, since May 2025; formerly, Director, DWS
Investment Management Americas, Inc. ("DIMA"), and Chief Compliance
Officer to the registered investment companies for which DIMA acted as an
investment manager and/or administrator, 2016 to 2025; Legal Counsel,
DIMA, 2007 to 2016.
|
|
Sheila R. James (1965)
|
Assistant
Secretary since
2002
|
Senior Vice President, Neuberger, since 2023 and Employee since 1999;
Senior Vice President, NBIA, since 2023; formerly, Vice President,
Neuberger, 2008 to 2023; Assistant Vice President, Neuberger, 2007;
Employee, NBIA, 1991 to 1999; Assistant Secretary, twenty-eight registered
investment companies for which NBIA acts as investment manager and/or
administrator.
|
|
Brian Kerrane (1969)
|
Chief Operating
Officer since
2015 and Vice
President since
2008
|
Managing Director, Neuberger, since 2013; Chief Operating Officer, Mutual
Funds, and Managing Director, NBIA, since 2015; formerly, Senior Vice
President, Neuberger, 2006 to 2014; Vice President, NBIA, 2008 to 2015
and Employee since 1991; Chief Operating Officer, ten registered
investment companies for which NBIA acts as investment manager and/or
administrator; Vice President, twenty-eight registered investment
companies for which NBIA acts as investment manager and/or
administrator.
|
|
Josephine Marone (1963)
|
Assistant
Secretary since
2017
|
Senior Paralegal, Neuberger, since 2007 and Employee since 2007;
Assistant Secretary, twenty-eight registered investment companies for
which NBIA acts as investment manager and/or administrator.
|
|
Owen F. McEntee, Jr. (1961)
|
Vice President
since 2008
|
Vice President, Neuberger, since 2006; Vice President, NBIA, since 2006
and Employee since 1992; Vice President, ten registered investment
companies for which NBIA acts as investment manager and/or
administrator.
|
52
|
Name, (Year of Birth), and
Address(1)
|
Position(s) and
Length of Time
Served(2)
|
Principal Occupation(s)(3)
|
|
John M. McGovern (1970)
|
Treasurer and
Principal
Financial and
Accounting
Officer since
2005
|
Managing Director, Neuberger, since 2022; Senior Vice President, NBIA,
since 2007 and Employee since 1993; formerly, Senior Vice President,
Neuberger, 2007 to 2021; formerly, Vice President, Neuberger, 2004 to
2006; formerly, Assistant Treasurer, 2002 to 2005; Treasurer and Principal
Financial and Accounting Officer, ten registered investment companies for
which NBIA acts as investment manager and/or administrator.
|
|
Gariel Nahoum (1983)
|
Chief Legal
Officer since
2025 (only for
purposes of
sections 307 and
406 of the
Sarbanes-Oxley
Act of 2002)
|
General Counsel, U.S. Registered Funds, NBIA, since 2025; Senior Vice
President, NBIA, since 2017; formerly, Associate General Counsel Mutual
Funds, 2017 to 2025; formerly, Assistant General Counsel and Vice
President, NBIA, 2014 to 2016. Chief Legal Officer (only for purposes of
sections 307 and 406 of the Sarbanes-Oxley Act of 2002), ten registered
investment companies for which NBIA acts as investment manager and/or
administrator.
|
|
Frank Rosato (1971)
|
Assistant
Treasurer since
2005
|
Vice President, Neuberger, since 2006; Vice President, NBIA, since 2006
and Employee since 1995; Assistant Treasurer, ten registered investment
companies for which NBIA acts as investment manager and/or
administrator.
|
|
John Triolo (1974)
|
Vice President
since 2024
|
Senior Vice President, Neuberger, since 2023; Vice President, ten registered
investment companies for which NBIA acts as investment manager and/or
administrator; Senior Tax Manager, Franklin Templeton (formerly, Legg
Mason) 2004 to 2023.
|
(1)
The business address of each listed person is 1290 Avenue of the Americas, New York,
NY 10104.
(2)
Pursuant to the Bylaws of the Fund, each officer elected by the Directors shall hold
office until his or her successor shall have been elected and qualified or until his or her earlier death,
inability to serve, or resignation. Officers serve at the pleasure of the Directors and may be removed at
any time with or without cause.
(3)
Except as otherwise indicated, each individual has held the positions shown during
at least the last five years.
53
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Fund uses to determine how to
vote proxies relating to portfolio securities is available, without charge, by calling 800-877-9700 (toll-free) and on the SEC’s website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is also available, without charge upon request,
by calling 800-877-9700 (toll-free), on the SEC’s website at www.sec.gov, and on Neuberger’s website at www.nb.com.
Quarterly Portfolio Schedule
The Fund files a complete schedule of portfolio holdings with the SEC for the first
and third quarters of each fiscal year as an exhibit to its report on Form N-PORT. The Fund’s Forms N-PORT are available on the SEC’s website at www.sec.gov. The portfolio holdings information on Forms N-PORT are available upon
request, without charge, by calling 800-877-9700 (toll-free).
54
Report of Votes of Stockholders
The Annual Meeting of Stockholders was held on July 17, 2025, to consider and vote
on the election of four Class II and two Class I Directors to serve until the Annual Meeting of Stockholders
in 2028 and 2027, respectively, or until their successors are elected and qualified. The Class III Directors
(which include Joseph V. Amato, Tom D. Seip, and Franklyn E. Smith) continue to hold office until the Annual
Meeting of Stockholders in 2026, or until their successors are elected and qualified. Michael M. Knetter (preferred
stock only) continues to hold office as a Class I Director until the Annual Meeting of Stockholders in 2027,
or until his successor is elected and qualified.
|
To elect four Class II Directors to serve until the Annual Meeting of Stockholders
in 2028 or until a
successor is elected and qualified.
|
|||||
|
|
|
|
|
|
|
|
Shares of Common and
Preferred Stock
|
Votes For
|
Votes
Against
|
Votes
Withheld
|
Abstentions
|
Broker
Non-Votes
|
|
Michael J. Cosgrove
|
22,365,675
|
—
|
3,269,134
|
—
|
—
|
|
Deborah C. McLean
|
22,383,336
|
—
|
3,251,472
|
—
|
—
|
|
Paul M. Nakasone
|
22,469,408
|
—
|
3,165,401
|
—
|
—
|
|
|
|
|
|
|
|
|
Shares of Preferred
Stock
|
Votes For
|
Votes
Against
|
Votes
Withheld
|
Abstentions
|
Broker
Non-Votes
|
|
Ami G. Kaplan
|
2,279
|
—
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
To elect two Class I Directors to serve until the Annual Meeting of Stockholders in
2027 or until a
successor is elected and qualified.
|
|||||
|
|
|
|
|
|
|
|
Shares of Common and
Preferred Stock
|
Votes For
|
Votes
Against
|
Votes
Withheld
|
Abstentions
|
Broker
Non-Votes
|
|
Marc Gary
|
22,476,750
|
—
|
3,158,059
|
—
|
—
|
|
Martha C. Goss
|
22,406,267
|
—
|
3,228,542
|
—
|
—
|
55
Board Consideration of the Management Agreement
On an annual basis, the Board of Directors (the "Board" or "Directors") of Neuberger Municipal
Fund Inc. (the "Fund"), including the Directors who are not "interested persons" of the Fund or of
Neuberger Berman Investment Advisers LLC (with its affiliates, "Management"), as such term is defined
under the Investment Company Act of 1940, as amended ("1940 Act"), ("Independent Fund Directors"), considers
whether to continue the Fund’s management agreement with Management (the "Agreement"). Throughout the process, the Independent Fund Directors are advised by counsel that is experienced in 1940 Act
matters and that is independent of Management ("Independent Counsel"). At a meeting held on October 9,
2025, the Board, including the Independent Fund Directors, approved the continuation of the Agreement
for the Fund. In reaching its determination, the Board considered all factors it believed relevant, including
(i) the nature, extent, and quality of the services provided to the Fund and its stockholders; (ii) a comparison of the Fund’s performance, fees and expenses relative to its benchmark, various peers or similar accounts, as applicable;
(iii) the costs of the services provided by, and the estimated profit or loss to, Management from its relationships
with the Fund; (iv) any apparent or anticipated economies of scale in relation to the services Management
provides to the Fund and whether any such economies of scale are shared with Fund stockholders; and (v) any
"fall-out" benefits likely to accrue to Management and its affiliates from their relationship with the Fund.
In evaluating the Fund’s Agreement, the Board, including the Independent Fund Directors, reviewed extensive materials provided by Management in response to questions submitted by the Independent
Fund Directors and Independent Counsel, which the Contract Review Committee annually considers and updates.
It also met with senior representatives of Management regarding its personnel, operations, and profitability
as they relate to the Fund. The annual contract review extends over at least two regular meetings of the
Board to allow Management additional time to respond to any questions the Independent Fund Directors may have
on their initial review of the materials and for the Independent Fund Directors to consider those responses.
In connection with its deliberations, the Board also considered the broad range of
information relevant to the annual contract review that is provided to the Board (including its various standing
committees) at meetings throughout the year, including reports on investment performance based on net asset
value and common stock market prices, portfolio risk, use of leverage, and information regarding share price
premiums and/or discounts. In addition, the Board established the Contract Review Committee, which is comprised
solely of Independent Fund Directors, to assist in its evaluation and analysis of materials for the annual contract
review. Those standing committees provide reports to the full Board, including the members of the Contract
Review Committee, which consider that information as part of the annual contract review process.
The Independent Fund Directors received from Independent Counsel a memorandum discussing
the legal standards for their consideration of the proposed continuation of the Agreement. During
the course of the year and during their deliberations regarding the annual contract review, the Contract
Review Committee and the Independent Fund Directors met with Independent Counsel separately from representatives
of Management.
Provided below is a description of the Board’s contract approval process and material factors that the Board considered at its meetings regarding renewal of the Agreement and the compensation
to be paid thereunder. In connection with its approval of the continuation of the Agreement, the Board evaluated
the terms of the Agreement, the overall fairness of the Agreement to the Fund, and whether the Agreement
was in the best interests of the Fund and Fund stockholders. The Board’s determination to approve the continuation of the Agreement was based on a comprehensive consideration of all information provided to
the Board throughout the year and in connection with the annual contract review.
This description is not intended to include all of the factors considered by the Board.
The Board members did not identify any particular information or factor that was all-important or controlling,
and each Director may have attributed different weights to the various factors. Additionally, the information
and factors considered, and
56
weight placed on any particular information or factor may change over time. The Board
focused on the costs and benefits of the Agreement to the Fund and, through the Fund, Fund stockholders.
Nature, Extent, and Quality of Services
With respect to the nature, extent, and quality of the services provided, the Board
considered the investment philosophy and decision-making processes of, and the qualifications, experience, capabilities,
and succession plans of, and the resources available to, the portfolio management personnel of Management
who perform services for the Fund. The Board also considered Management’s long history and experience in managing and operating closed-end funds, such as the Fund, including experience monitoring and assessing
discounts and premiums (including the potential impact of distribution rates and yields thereon) and complying
with securities exchange requirements. The Board noted that Management also provides certain administrative
services, including fund accounting and compliance services. The Board also considered Management’s policies and practices regarding trade execution, trading costs, and allocation of portfolio transactions and reviewed
the quality of the execution services that Management had provided. Moreover, the Board considered Management’s approach to potential conflicts of interest both generally and between the Fund’s investments and those of other funds or accounts managed by Management.
The Board recognized the extensive range of services that Management provides to the
Fund beyond the investment management services. The Board noted that Management is also responsible
for monitoring compliance with the Fund’s investment objective, policies, and restrictions, as well as compliance with applicable law, including implementing regulatory initiatives of the U.S. Securities and Exchange
Commission and other regulators. In addition, the Board considered that Management has developed a leverage
structure for the Fund tailored to its investment strategy and needs, has monitored the Fund’s ongoing compliance with legal and other restrictions associated with its leverage, and has recommended changes in and/or amendments
to the amount or structure of its leverage over time, including changes that reduced the overall cost
(or limited anticipated increases in the costs) of leverage. The Board also considered the various notable initiatives
and projects Management performed in connection with its closed-end fund product line. These initiatives included
ongoing services to manage leverage that has become increasingly complex; and continued communication
efforts with stockholders. The Board also considered that Management assumes significant ongoing entrepreneurial
and business risks as the investment adviser and sponsor to the Fund, for which it is entitled to reasonable
compensation. The Board also considered that Management’s responsibilities include continual management of investment, operational, cybersecurity, enterprise, valuation, liquidity, legal, regulatory, and compliance
risks as they relate to the Fund, and the Board considers on a regular basis information regarding Management’s processes for monitoring and managing risk.
The Board also reviewed and evaluated Management’s activities under its contractual obligation to oversee the Fund’s various outside service providers, including its evaluation of service providers’ infrastructure, cybersecurity programs, compliance programs, and business continuity programs, among other matters.
The Board also considered Management’s ongoing development of its own infrastructure and information technology to support the Fund through, among other things, cybersecurity, business continuity planning,
and risk management. In addition, the Board noted the positive compliance history of Management, as no significant
compliance problems were reported to the Board with respect to Management. The Board also considered the
general structure of the portfolio managers’ compensation and whether this structure provides appropriate incentives to act in the best interests of the Fund. The Board also considered the ability of Management to attract
and retain qualified personnel to service the Fund and the ability to plan for succession. The Board also
noted that Management actively monitors any discount from net asset value per share at which the Fund’s common stock trades and evaluates potential ways to mitigate the discount and potential impacts on the discount,
including the level of distributions and resulting distribution rates that the Fund pays, both on an absolute
basis and relative to funds that Management believes are peer funds. The Board likewise took into account that
Management monitors, to the extent information is publicly available, events that may disrupt the Fund’s long-term investment program.
57
Fund Performance
The Board requested a report from an outside consulting firm that specializes in the
analysis of fund industry data that compared the Fund’s performance, along with its fees and other expenses, to various peers, including a group of industry peers ("Expense Group") and a broader universe of funds pursuing
generally similar strategies with the same investment classification and/or objective ("Performance Universe").
The Board considered the Fund’s performance and fees in light of the limitations inherent in the consulting firm’s methodology for constructing such comparative groups and determining which investment companies should
be included in the comparative groups, noting differences as compared to certain fund industry ranking
and rating systems. The Board also considered the impact and inherent limitation on the comparisons due to
the number of funds included in the Expense Group and Performance Universe. In this regard, the Board
recognized that the number of leveraged closed-end funds pursuing similar strategies with the same investment classification
and/or objective as the Fund has decreased over time. The Board also recognized the limitations inherent in comparing the Fund’s performance to a benchmark index due to the Fund’s use of leverage and pursuit of an investment strategy that is not tied directly to an index. The Board also recognized the inherent limitations
in comparing performance of peer funds utilizing leverage in light of, among other things, the impacts due to the level
and type of leverage utilized and when peer funds entered into their leverage arrangements (which can impact pricing
and, therefore, cost and performance). The Board also considered the premium/discount levels at which peer
funds traded along with the distribution rates and yields of those funds versus the Fund.
With respect to investment performance, the Board considered information regarding the Fund’s short-, intermediate- and long-term performance, net of the Fund’s fees and expenses, on an absolute basis, relative to a benchmark index that does not deduct the fees or expenses of investing, and compared
to the performance of its Performance Universe. The Board also reviewed performance in relation to certain measures
of the degree of investment risk undertaken by the portfolio managers.
The Performance Universe referenced in this section was identified by the consulting
firm, as discussed above. In the case of underperformance for any of the periods reported, the Board considered
the magnitude and duration of that underperformance relative to the Performance Universe and/or the benchmark
(e.g., the amount by which the Fund underperformed, including, for example, whether the Fund slightly underperformed
or significantly underperformed its benchmark). With respect to performance quintiles for the Fund
compared to its Performance Universe, the first quintile represents the highest (best) performance and the fifth
quintile represents the lowest performance.
The Board considered that, based on performance data for the periods ended March 31,
2025: (1) as compared to its benchmark, the Fund’s performance was lower for the 1-, 3-, 5- and 10-year periods; and (2) as compared to its Performance Universe, the Fund’s performance was in the fifth quintile for the 1-, 5- and 10-year periods and the fourth quintile for the 3-year period.
The Board identified the Fund as having underperformed in certain of these comparisons
to an extent, and/or over a period of time, that the Board felt warranted additional inquiry, and discussed with Management the Fund’s performance, potential reasons for the relative performance, and steps that Management
had taken, or intended to take, to improve performance. The Board’s Closed-End Funds Committee also met with representatives of the portfolio managers of the Fund during the 12 months prior to voting on the contract
renewal to discuss the Fund’s performance, distribution levels, and the use of leverage. The Board noted that the type, amount and term of the leverage are consistent with the portfolio managers’ preferences for the Fund’s investment strategy. The Board also took into account the impact the Fund’s leverage arrangements had on performance. The Board also considered Management’s responsiveness with respect to the relative performance. The Board recognized that the performance data reflects a snapshot of a period as of a particular date and that
selecting a different performance period could produce significantly different results. The Board further acknowledged
that long-term performance could be impacted by even one period of significant outperformance or underperformance.
In this regard, the Board noted that performance is only one of the factors that it deems relevant to
its consideration of the
58
Agreement and that, after considering all relevant factors, it can determine to approve
the continuation of the Agreement notwithstanding the Fund’s relative performance.
Fee Rates, Profitability, and Fall-out Benefits
With respect to the overall fairness of the Agreement, the Board considered the fee
structure for the Fund under the Agreement as compared to the Expense Group provided by the consulting firm, as
discussed above. The Board reviewed a comparison of the Fund’s management fee to its Expense Group. The Board noted that the comparative management fee analysis includes, in the Fund’s management fee, the separate administrative fees paid to Management. However, the Board noted that some funds in the Expense Group
pay directly from fund assets for certain services that Management covers out of the administration fees
for the Fund. Accordingly, the Board also considered the Fund’s total expense ratio as compared with its Expense Group as a way of taking account of these differences. In addition, the Board considered whether there were
other funds or separate accounts that were advised or sub-advised by Management or its affiliates with investment
objectives, policies, and strategies that were similar to those of the Fund. The Board considered that only
leveraged closed-end funds were considered for inclusion in the Expense Group presented for comparison with the
Fund but also noted the challenges associated with making comparisons regarding expenses for leveraged closed-end
funds. The Board took into account Management’s representations that relevant expenses would be difficult for the consulting firm to fully and accurately identify due to, among other things, differences in the type
of leverage used and the way such leverage costs are reported. The Board also considered Management’s representations regarding the potential impact on expenses due to the time at which the funds in the Expense Group
entered into their leverage arrangements and the funds’ fiscal year-ends (which determine the time period for which leverage costs are reported). With this understanding, the Board also considered the impact of investment-related
expenses (which include leverage expenses) and taxes on the total expenses of the Fund and the funds
in the Expense Group that the consulting firm was able to identify. The Board also considered Management’s representations that there were certain characteristics of leverage that increased leverage expenses but provided
benefits and value to stockholders that were not reflected in the Fund’s expense ratio. The Board also considered that, in comparison to certain other products managed by Management, including open-end funds, there are
additional portfolio management challenges in managing closed-end funds such as the Fund, including those
associated with less liquid holdings and the use of leverage.
The Board considered the Fund’s contractual management fee on managed assets (generally consisting of net assets plus leverage proceeds), as well as the actual management fee on managed assets
as a percentage of assets attributable to common stockholders as compared to the Fund’s Expense Group. The Board was aware of the additional expenses borne by common stockholders as a result of the Fund’s leveraged structure. The Board took into account that Management has a financial incentive for the Fund to continue
to use leverage, which may create a conflict of interest. It also considered Management’s representation that it continues to believe the use of leverage is in the best interests of the Fund’s stockholders regardless of the level of compensation Management receives. With respect to the quintiles for fees and total expenses (net of waivers
or other adjustments, if any) on managed assets for the Fund compared to its Expense Group, the first quintile represents
the lowest (best) fees and/or total expenses and the fifth quintile represents the highest fees and/or total
expenses. The Board considered that, as compared to its Expense Group, the Fund’s contractual management fee and actual management fee each ranked in the first quintile, the total expenses ranked in the
fourth quintile, and the total expenses excluding the investment-related expenses and taxes identified by the consulting
firm ranked in the second quintile.
In determining to renew the Agreement, the Board took into account Management’s representations regarding the effect that the cost of leverage had on the Fund’s total expenses relative to its peers with different types and levels of leverage and noted Management’s efforts to ensure the Fund’s leverage arrangements were among the best available for a fund of its size and investment strategy and with its preferences
regarding types and levels of leverage at the time the Fund entered into its leverage arrangements. In addition,
the Board considered its
59
Closed-End Fund Committee’s ongoing evaluation of the Fund, including the use of leverage and the specific leverage arrangements.
In concluding that the benefits accruing to Management by virtue of its relationship
with the Fund were reasonable in light of the costs of providing the investment advisory and other services
and the benefits accruing to the Fund, the Board reviewed specific data as to Management’s estimated profit on the Fund for a recent period on a pre-tax basis without regard to distribution expenses. (The Board also
reviewed data on Management’s estimated profit on the Fund after distribution expenses and taxes were factored in, as indicators of the health of the business and the extent to which Management is directing its
profits into the growth of the business.) The Board considered the cost allocation methodology that Management used
in developing its estimated profitability figures. In addition, the Board engaged an independent accounting
firm in prior years to review the profitability methodology utilized by Management when preparing this information
and discussed with the accounting firm its conclusion that Management’s process for calculating and reporting its estimated profit aligned with the accounting firm’s guiding principles and industry practices.
The Board further noted Management’s representation that its estimate of profitability is derived using a methodology that is consistent with the methodology used to assess and/or report measures
of profitability elsewhere at the firm. In addition, the Board recognized that Management’s calculations regarding its costs may not reflect all risks, including regulatory, legal, operational, cybersecurity, reputational,
and, where appropriate, entrepreneurial risks, associated with offering and managing a closed-end fund in
the current regulatory and market environment. The Board also considered any fall-out (i.e., indirect) benefits
likely to accrue to Management or its affiliates from their relationship with the Fund. The Board recognized that
Management and its affiliates should be entitled to earn a reasonable level of profits for services they provide
to the Fund and, based on review, concluded that Management’s reported level of estimated profitability on the Fund was reasonable.
Economies of Scale
The Board also evaluated apparent or anticipated economies of scale in relation to
the services Management provides to the Fund and noted that there is little expectation that closed-end funds
will show significant economies of scale. The Board considered that, as a closed-end investment company,
the Fund does not continually offer new shares to raise additional assets (as does a typical open-end
investment company), but may experience asset growth through investment performance and/or the increased use of
leverage. Additionally, the Board considered that, at times when the Fund’s shares have traded at or close to a premium to its net asset value per share, the Fund has conducted a rights offering to raise additional assets, most
recently in 2025. The Board also considered that Management has provided, at no added cost to the Fund, certain
additional services, including but not limited to, services required by new regulations or regulatory interpretations,
services impelled by changes in the securities markets or the business landscape, and/or services requested
by the Board. The Board considered that this is a way of sharing economies of scale with the Fund and its
stockholders.
Conclusions
In approving the continuation of the Agreement, the Board concluded that, in its business
judgment, the terms of the Agreement are fair and reasonable to the Fund and that approval of the continuation
of the Agreement is in the best interests of the Fund and Fund stockholders. In reaching this determination,
the Board considered that Management could be expected to continue to provide a high level of service to the
Fund; that the Board retained confidence in Management’s capabilities to manage the Fund; that the Fund’s fee structure appeared to the Board to be reasonable given the nature, extent, and quality of services provided; and that
the benefits accruing to Management by virtue of its relationship with the Fund were reasonable in light of
the costs of providing the investment advisory and other services and the benefits accruing to the Fund. The Board’s conclusions are based in part on its consideration of materials prepared in connection with the approval or
continuance of the Agreement
60
in prior years and on the Board’s ongoing regular review of Fund performance and operations throughout the year, in addition to material prepared specifically for the most recent annual review
of the Agreement.
61
Notice to Stockholders
In early 2026 you will receive information to be used in filing your 2025 tax returns,
which will include a notice of the exact tax status of all distributions paid to you by the Fund during calendar
year 2025. Please consult your own tax advisor for details as to how this information should be reflected on your
tax returns.
For the fiscal year ended October 31, 2025, the percentage representing the portion
of distributions from net investment income, which are exempt from federal income tax, other than alternative
minimum tax is 98.62%.
62
This page has been left blank intentionally
Neuberger Berman Investment Advisers LLC
1290 Avenue of the Americas
New York, NY 10104-0002
Internal Sales & Services
877.461.1899
www.nb.com
New York, NY 10104-0002
Internal Sales & Services
877.461.1899
www.nb.com
Statistics and projections in this report are derived from sources deemed to be reliable
but cannot be regarded as a representation of future results of the Fund. This report is prepared for the general information of stockholders and is not an offer for shares of
the Fund.
but cannot be regarded as a representation of future results of the Fund. This report is prepared for the general information of stockholders and is not an offer for shares of
the Fund.
H0649 12/25
(b) Not applicable.
Item 2. Code of Ethics.
The Board of Directors (“Board”) of Neuberger Municipal Fund Inc. (“Registrant” or “Fund”) has adopted a code of ethics that applies to the Registrant’s
principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions (“Code of Ethics”). During the period covered by this Form N-CSR, there were no substantive amendments to
the Code of Ethics and there were no waivers from the Code of Ethics granted to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.
A copy of the Code of Ethics is incorporated by reference to
Neuberger High Yield Strategies Fund Inc. Form N-CSR, Investment Company Act file number 811-22396 (filed December 30, 2025). The Code of Ethics is also available, without charge, by calling 1-800-877-9700 (toll-free).
Item 3. Audit Committee Financial Expert.
The Board has determined that the Registrant has three audit committee financial experts serving on its audit committee. The Registrant’s audit committee
financial experts are Michael J. Cosgrove, Martha C. Goss and Deborah C. McLean. Mr. Cosgrove, Ms. Goss and Ms. McLean are independent directors as defined by Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Ernst & Young LLP (“E&Y”) serves as the independent registered public accounting firm to the Registrant.
(a) Audit Fees
The aggregate fees billed for professional services rendered by E&Y for the audit of the annual financial statements or services that are normally
provided by E&Y in connection with statutory and regulatory filings or engagements were $51,300 and $51,300 for the fiscal years ended 2024 and 2025, respectively.
(b) Audit-Related Fees
The aggregate fees billed to the Registrant for assurance and related services by E&Y that are reasonably related to the performance of the audit of the
Registrant’s financial statements and are not reported above in Audit Fees were $0 and $0 for the fiscal years ended 2024 and 2025, respectively. The Audit Committee approved 0% and 0% of these services
provided by E&Y for the fiscal years ended 2024 and 2025, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
The fees billed to other entities in the investment company complex for assurance and related services by E&Y that are reasonably related to the
performance of the audit that the Audit Committee was required to approve because the engagement related directly to the operations and financial reporting of the Registrant were $0 and $0 for the fiscal years ended 2024 and 2025, respectively. The
Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2024 and 2025, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(c) Tax Fees
The aggregate fees billed to the Registrant for professional services rendered by E&Y for tax compliance, tax advice, and tax planning were $13,960 and
$14,330 for the fiscal years ended 2024 and 2025, respectively. The nature of the services provided includes preparation of the Federal and State tax extensions and tax returns, review of annual excise tax calculations, and preparation of form 8613,
in addition to assistance with Internal Revenue Code and tax regulation requirements for fund investments. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2024 and 2025, respectively, pursuant
to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
The fees billed to other entities in the investment company complex for professional services rendered by E&Y for tax compliance, tax advice, and tax planning that the Audit
Committee was required to approve because the engagement related directly to the operations and financial reporting of the Registrant were $0 and $0 for the fiscal years ended 2024 and 2025, respectively. The Audit Committee approved 0% and 0% of
these services provided by E&Y for the fiscal years ended 2024 and 2025, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(d) All Other Fees
The aggregate fees billed to the Registrant for products and services provided by E&Y, other than services reported in Audit Fees, Audit-Related
Fees, and Tax Fees were $0 and $0 for the fiscal years ended 2024 and 2025, respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2024 and 2025, respectively, pursuant to
the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
The fees billed to other entities in the investment company complex for products and services provided by E&Y, other than services reported in Audit Fees, Audit-Related
Fees, and Tax Fees, that the Audit Committee was required to approve because the engagement related directly to the operations and financial reporting of the Registrant were $0 and $0 for the fiscal years ended 2024 and 2025,
respectively. The Audit Committee approved 0% and 0% of these services provided by E&Y for the fiscal years ended 2024 and 2025, respectively, pursuant to the waiver provisions of Rule 2-01(c)(7)(i)(C) of Regulation S-X.
(e) Audit Committee’s Pre-Approval Policies and Procedures
(1) The Audit Committee’s pre-approval policies and procedures for the Registrant to engage an accountant to render audit and non-audit services delegate to
each member of the Committee the power to pre-approve services between meetings of the Committee.
(2) None of the services described in paragraphs (b) through (d) above were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X.
(f) Hours Attributed to Other Persons
Not applicable.
(g) Non-Audit Fees
Non-audit fees billed by E&Y for services rendered to the Registrant were $13,960 and $14,330 for the fiscal years ended 2024 and 2025, respectively.
Non-audit fees billed by E&Y for services rendered to the Registrant’s investment adviser and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the Registrant were $0 and $0 for the fiscal years ended 2024 and 2025, respectively.
(h) The Audit Committee of the Board considered whether the provision of non-audit services rendered to the Registrant’s investment adviser and any entity
controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant that were not pre-approved by the Audit Committee because the engagement did not relate directly to the operations and financial
reporting of the Registrant is compatible with maintaining E&Y’s independence.
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed Registrants.
(a) The Board has established a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (“Exchange Act”).
Its members are Michael J. Cosgrove (Chair), Martha C. Goss (Vice Chair), Deborah C. McLean, and Paul M. Nakasone.
(b) Not applicable to the Registrant.
Item 6. Investments.
(a) The complete schedule of investments for the Registrant is disclosed in the Registrant’s Annual Report, which is included as Item 1 of this Form N-CSR.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Not applicable to closed-end investment companies.
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable to closed-end investment companies.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Not applicable to closed-end investment companies.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Not applicable to closed-end investment companies.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
See the section titled “Board Consideration of the Management Agreement,” in the Registrant’s Annual Report, which is included as Item 1 of this Form N-CSR.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
As of October 31, 2025, the Board has delegated to Neuberger Berman Investment Advisers LLC (“NBIA”) the responsibility to vote proxies related to the
securities held in the Registrant’s portfolio. Under this authority, NBIA is required by the Board to vote proxies related to portfolio securities in the best interests of the Registrant and its stockholders. The Board permits NBIA to contract with a
third party to obtain proxy voting and related services, including research of current issues.
NBIA has implemented written Proxy Voting Policies and Procedures (“Proxy Voting Policy”) that are designed to reasonably ensure that NBIA votes proxies
prudently and in the best interest of its advisory clients for whom NBIA has voting authority, including the Registrant. The Proxy Voting Policy also describes how NBIA addresses any conflicts that may arise between its interests and those of its
clients with respect to proxy voting.
NBIA’s Governance and Proxy Committee (“Proxy Committee”) is responsible for developing, authorizing, implementing and updating the Proxy Voting Policy,
administering and overseeing the proxy voting process and engaging and overseeing any independent third-party vendors as voting delegates to review, monitor and/or vote proxies. In order to apply the Proxy Voting Policy noted above in a timely and
consistent manner, NBIA utilizes Glass, Lewis & Co. (“Glass Lewis”) to vote proxies in accordance with NBIA’s voting guidelines or, in instances where a material conflict has been determined to exist, in accordance with the voting recommendations
of an independent third party.
NBIA retains final authority and fiduciary responsibility for proxy voting. NBIA believes that this process is reasonably designed to address material
conflicts of interest that may arise between NBIA and a client as to how proxies are voted.
In the event that an investment professional at NBIA believes that it is in the best interests of a client or clients to vote proxies in a manner inconsistent
with the voting guidelines, the Proxy Committee will review information submitted by the investment professional to determine that there is no material conflict of interest between NBIA and the client with respect to the voting of the proxy in the
requested manner.
If the Proxy Committee determines that the voting of a proxy as recommended by the investment professional would not be appropriate, the Proxy Committee
shall: (i) take no further action, in which case Glass Lewis shall vote such proxy in accordance with the voting guidelines; (ii) disclose such conflict to the client or clients and obtain written direction from the client as to how to vote the
proxy; (iii) suggest that the client or clients engage another party to determine how to vote the proxy; or (iv) engage another independent third party to determine how to vote the proxy.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
(a)(1) The following Portfolio Managers have day-to-day management
responsibility of the Registrant’s portfolio as of the date of the filing of this Form N-CSR.
James L. Iselin is a Managing Director of NBIA. He is the Head of the Municipal Fixed Income Team. Mr. Iselin joined
NBIA in 2006. Previously, Mr. Iselin was a portfolio manager for another investment adviser working in the Municipal Fixed Income group beginning in 1993.
S. Blake Miller is a Managing Director of NBIA. He is a Senior Portfolio Manager for the Municipal Fixed Income team.
Mr. Miller joined NBIA in 2008. Prior to that time, he was the head of Municipal Fixed Income investing at another firm where he worked beginning in 1986.
(a)(2) The table below describes the other accounts for which the Registrant’s Portfolio Managers have day-to-day management responsibility as of October 31, 2025
|
Type of Account
|
Number of
Accounts
Managed
|
Total Assets
Managed
($ millions)
|
Number of Accounts
Managed for which
Advisory Fee is Performance-Based
|
Assets Managed for
which Advisory Fee is Performance-Based
($ millions)
|
|
James L. Iselin
|
||||
|
Registered Investment Companies*
|
4
|
$901
|
—
|
—
|
|
Other Pooled Investment Vehicles**
|
5
|
$191
|
—
|
—
|
|
Other Accounts***
|
70
|
$2,706
|
—
|
—
|
|
S. Blake Miller
|
||||
|
Registered Investment Companies*
|
4
|
$901
|
—
|
—
|
|
Other Pooled Investment Vehicles**
|
—
|
—
|
—
|
—
|
|
Other Accounts***
|
447
|
$1,552
|
—
|
—
|
|
*
|
Registered Investment Companies include: Mutual Funds.
|
|
**
|
A portion of certain accounts may be managed by other portfolio managers; however, the total assets of such accounts are included above even though the portfolio manager
listed above is not involved in the day-to-day management of the entire account.
|
|
***
|
Other Accounts include: Institutional Separate Accounts, Sub-Advised Accounts and Managed Accounts (WRAP Accounts).
|
Conflicts of Interest (as of October 31, 2025)
Actual or apparent conflicts of interest may arise when a Portfolio Manager has day-to-day management responsibilities with respect to
more than one fund or other account. The management of multiple funds and accounts (including proprietary accounts) may give rise to actual or potential conflicts of interest if the funds and accounts have different or similar objectives, benchmarks,
time horizons, and fees, as the Portfolio Manager must allocate his or her time and investment ideas across multiple funds and accounts. The Portfolio Manager may execute transactions for another fund or account that may adversely impact the value
of securities or instruments held by the Fund, and which may include transactions that are directly contrary to the positions taken by the Fund. For example, a Portfolio Manager may engage in short sales of securities or instruments for another
account that are the same type of securities or instruments in which the Fund it manages also invests. In such a case, the Portfolio Manager could be seen as harming the performance of the Fund for the benefit of the account engaging in short sales
if the short sales cause the market value of the securities or instruments to fall. Additionally, if a Portfolio Manager identifies a limited investment opportunity that may be suitable for more than one fund or other account, the Fund may not be
able to take full advantage of that opportunity. There may also be regulatory limitations that prevent the Fund from participating in a transaction that another account or fund managed by the same Portfolio Manager will invest. For example, the 1940
Act prohibits the Fund from participating in certain transactions with certain of its affiliates and from participating in “joint” transactions alongside certain of its affiliates. The prohibition on “joint” transactions may limit the ability of the
Fund to participate alongside its affiliates in privately negotiated transactions unless the transaction is otherwise permitted under existing regulatory guidance and may reduce the amount of privately negotiated transactions that the Funds may
participate. Further, NBIA may take an investment position or action for a fund or account that may be different from, inconsistent with, or have different rights than (e.g., voting rights, dividend or repayment priorities or other features that may
conflict with one another), an action or position taken for one or more other funds or accounts, including the Fund, having similar or different objectives. A conflict may also be created by investing in different parts of an issuer’s capital
structure (e.g., equity or debt, or different positions in the debt structure). Those positions and actions may adversely impact, or in some instances benefit, one or more affected accounts or funds, including the Fund. Potential conflicts may also
arise because portfolio decisions and related actions regarding a position held for a fund or another account may not be in the best interests of a position held by another fund or account having similar or different objectives. If one account were
to buy or sell portfolio securities or instruments shortly before another account bought or sold the same securities or instruments, it could affect the price paid or received by the second account. Securities selected for funds or accounts other
than the Fund may outperform the securities selected for the Fund. Finally, a conflict of interest may arise if NBIA and a Portfolio Manager have a financial incentive to favor one account over another, such as a performance-based management fee
that applies to one account but not the Fund or other funds or accounts for which the Portfolio Manager is responsible. In the ordinary course of operations, certain businesses within the Neuberger Berman organization (the “Firm”) will seek access to
material non-public information. For instance, NBIA portfolio managers may obtain and utilize material non-public information in purchasing loans and other debt instruments and certain privately placed or restricted equity instruments. From time to
time, NBIA portfolio managers will be offered the opportunity on behalf of applicable clients to participate on a creditors or other similar committee in connection with restructuring or other “work-out” activity, which participation could provide
access to material non-public information. The Firm maintains procedures that address the process by which material non-public information may be acquired intentionally by the Firm. When considering whether to acquire material non-public
information, the Firm will attempt to balance the interests of all clients, taking into consideration relevant factors, including the extent of the prohibition on trading that would occur, the size of the Firm’s existing position in the issuer, if
any, and the value of the information as it relates to the investment decision-making process. The acquisition of material non-public information would likely give rise to a conflict of interest since the Firm may be prohibited from rendering
investment advice to clients regarding the securities or instruments of such issuer and thereby potentially limiting the universe of securities or instruments that the Firm, including the Fund, may purchase or potentially limiting the ability of the
Firm, including the Fund, to sell such securities or instruments. Similarly, where the Firm declines access to (or otherwise does not receive or share within the Firm) material non-public information regarding an issuer, the portfolio managers could
potentially base investment decisions with respect to assets of such issuer solely on public information, thereby limiting the amount of information available to the portfolio managers in connection with such investment decisions. In determining
whether or not to elect to receive material non-public information, the Firm will endeavor to act fairly to its clients as a whole. The Firm reserves the right to decline access to material non-public information, including declining to join a
creditors or similar committee.
NBIA and the Registrant have adopted certain compliance procedures which are designed to address these types of conflicts. However, there is
no guarantee that such procedures will detect each and every situation in which a conflict arises.
(a)(3) Compensation (as of October 31, 2025)
Our compensation philosophy is one that focuses on rewarding performance and incentivizing our employees. We are also focused on creating a compensation process that we believe
is fair, transparent, and competitive with the market.
Compensation for Portfolio Managers consists of either (i) fixed (salary) and variable (discretionary bonus) compensation but is more heavily weighted on the variable portion of
total compensation, (ii) on a production model, whereby formulaic compensation is paid from the team compensation pool on a fixed schedule (typically monthly) or (iii) a combination of salary, bonus and/or production compensation. Compensation is
paid from a team compensation pool made available to the portfolio management team with which the Portfolio Manager is associated. The size of the team compensation pool is determined based on a formula that takes into consideration a number of
factors including the pre-tax revenue that is generated by that particular portfolio management team, less certain adjustments. The amount allocated to individual portfolio managers is determined on the basis of a variety of criteria, including
investment performance (including the aggregate multi-year track record), utilization of central resources (including research, sales and operations/support), business building to further the longer term sustainable success of the investment team,
effective team/people management, and overall contribution to the success of Neuberger Berman. Certain Portfolio Managers may manage products other than mutual funds, such as high net worth separate accounts. The percentage of pre-tax revenue a
Portfolio Manager receives pursuant to any such arrangement will vary based on certain revenue thresholds.
The terms of our long-term retention incentives are as follows:
Employee-Owned Equity. Certain employees (primarily senior leadership and investment professionals) participated in Neuberger Berman’s
equity ownership structure, which was launched as part of the firm’s management buyout in 2009 and designed to incentivize and retain key personnel. We currently offer an equity acquisition program which allows employees a more direct opportunity to
invest in Neuberger Berman.
For confidentiality and privacy reasons, we cannot disclose individual equity holdings or program participation.
Contingent Compensation Plan. Certain employees may participate in the Neuberger Berman Group Contingent Compensation Plan (the “CCP”) to
serve as a means to further align the interests of our employees with the success of the firm and the interests of our clients, and to reward continued employment. Under the CCP, up to 20% of a participant’s annual total compensation in excess of
$500,000 is contingent and subject to vesting. The contingent amounts are maintained in a notional account that is tied to the performance of a portfolio of Neuberger Berman investment strategies as specified by the firm on an employee-by-employee
basis. By having a participant’s contingent compensation tied to Neuberger Berman investment strategies, each employee is given further incentive to operate as a prudent risk manager and to collaborate with colleagues to maximize performance across
all business areas. In the case of members of investment teams, including Portfolio Managers, the CCP is currently structured so that such employees have exposure to the investment strategies of their respective teams as well as the broader Neuberger
Berman portfolio.
Restrictive Covenants. Most investment professionals, including Portfolio Managers, are subject to notice periods and restrictive
covenants which include employee and client non-solicit restrictions as well as restrictions on the use of confidential information. In addition, depending on participation levels, certain senior professionals who have received equity grants have
also agreed to additional notice and transition periods and, in some cases, non-compete restrictions. For confidentiality and privacy reasons, we cannot disclose individual restrictive covenant arrangements.
(a)(4) Ownership of Securities
Set forth below is the dollar range of equity securities beneficially owned by the Registrant’s Portfolio Managers in the Registrant as of October 31, 2025.
|
Portfolio Manager
|
Dollar Range of Equity Securities
Owned in the Registrant
|
|
James L. Iselin
|
D
|
|
S. Blake Miller
|
B
|
|
A = None
B = $1-$10,000
C = $10,001 - $50,000
D =$50,001-$100,000
|
E =
$100,001-$500,000
F = $500,001-$1,000,000
G = Over $1,000,000
|
(b) Not applicable.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
No reportable purchases for the period covered by this report.
Item 15. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which stockholders may recommend nominees to the Board.
Item 16. Controls and Procedures.
| (a) |
Based on an evaluation of the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) as of a date within 90 days of the filing date of this report, the Chief Executive
Officer and President and the Treasurer and Principal Financial and Accounting Officer of the Registrant have concluded that such disclosure controls and procedures are effectively designed to ensure that information required to be disclosed
by the Registrant on Form N-CSR is accumulated and communicated to the Registrant’s management to allow timely decisions regarding required disclosure.
|
| (b) |
There were no significant changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this
report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
|
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
| (a) |
The Fund did not engage in any securities lending activity during its most recent fiscal year.
|
| (b) |
The Fund did not engage in any securities lending activity and no services were provided by the securities lending agent to the Fund during its most recent fiscal year.
|
Item 18. Recovery of Erroneously Awarded Compensation.
Not applicable to the Registrant.
Item 19. Exhibits.
| (a)(1) |
| (a)(2) |
Not applicable to the Registrant.
|
| (a)(3) |
| (a)(4) |
Not applicable to the Registrant.
|
| (a)(5) |
Not applicable to the Registrant.
|
| (b) |
The certification required by Rule 30a-2(b) under the Act and
Section 906 of the Sarbanes-Oxley Act is furnished herewith.
|
The certification furnished pursuant to Rule 30a-2(b) under the Act and Section 906 of the Sarbanes-Oxley Act will not be deemed “filed” for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of
1933, as amended, or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Neuberger Municipal Fund Inc.
By: /s/ Joseph V. Amato
Joseph V. Amato
Chief Executive Officer and President
Date: January 2, 2026
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of
the Registrant and in the capacities and on the dates indicated.
By: /s/ Joseph V. Amato
Joseph V. Amato
Chief Executive Officer and President
Date: January 2, 2026
By: /s/ John M. McGovern
John M. McGovern
Treasurer and Principal Financial
and Accounting Officer
Date: January 2, 2026
ATTACHMENTS / EXHIBITS
CERTIFICATIONS REQUIRED BY RULE 30A-2(A) UNDER THE ACT AND SECTION 302 OF SARBANES-OXLEY ACT OF 2002
CERTIFICATION REQUIRED BY RULE 30A-2(B) UNDER THE ACT AND SECTION 906 OF THE SARBANES-OXLEY ACT
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