NEUBERGER MUNICIPAL FUND ANNOUNCES MONTHLY DISTRIBUTION

Neuberger Municipal Fund Inc. (NYSE American: NBH) has officially announced a monthly distribution of $0.05417 per share of its common stock. This distribution is set to be paid on February 17, 2026, and shareholders must be on record by January 30, 2026, which is also the ex-dividend date. The fund primarily seeks to offer income that is exempt from regular federal income tax, although some distributions may still be subject to the federal alternative minimum tax for certain stockholders.

The distribution outlined may comprise various components, including net investment income, realized capital gains, and, potentially, a return of capital. If the fund distributes more than its net investment income over the year, it may also tap into realized gains and returns of capital. Notably, any return of capital could result in a decrease in the net asset value (NAV) per share and may also impact investors' cost basis in their shares.

In alignment with Section 19 of the Investment Company Act of 1940, any distribution that includes components beyond net investment income will be accompanied by a notification. This notice will serve informational purposes and not for tax reporting, detailing the estimated portions of the distribution attributable to net investment income, capital gains, and return of capital. The final classification and tax implications of all distributions made in 2026 will be determined post-year-end.

Neuberger Berman, the firm behind the fund, has been a notable player in the investment management industry since 1939 and currently manages assets worth approximately $563 billion across various investment categories. The company is highly regarded for its active management approach and has received accolades as a top employer in the money management sector.

As Neuberger Municipal Fund Inc. (NYSE American: NBH) announces its monthly distribution of $0.05417 per share, investors should consider key factors regarding both the distribution and broader market conditions. The distribution, payable on February 17, 2026, aligns with the Fund's goal of providing tax-exempt income to shareholders. However, the potential inclusion of returns of capital in distributions warrants caution, as it may affect the net asset value (NAV) of the shares.

Investors should be mindful that while distributions can provide attractive yields, they are not guaranteed to represent exclusively net investment income. The implications of receiving a return of capital can be significant, as it effectively reduces the cost basis for investors, which may affect tax liabilities. It is advisable to stay informed about the Fund's distribution components, especially any declared during the fiscal year.

Given the current economic landscape, characterized by potential rate hikes and inflationary pressures, municipal bonds may experience a mixed reception in the market. As rates rise, previously issued bonds may lessen in value. However, the prospect of tax-exempt income can be appealing for investors in higher tax brackets, making municipal funds like NBH attractive as a defensive investment.

Diversification remains paramount in this environment. If NBH fits into a diversified portfolio focused on income stability and tax-efficiency, it may be a suitable consideration. However, investors are encouraged to assess their risk tolerance and the weight of municipal bonds in their overall allocation. Ultimately, thorough due diligence and an understanding of both current fund distributions and broader market dynamics are essential in making informed investment decisions regarding the Neuberger Municipal Fund.