abrdn National Municipal Income Fund to Reorganize into MFS Municipal Income Trust
Written by Emily J. Thompson, Senior Investment Analyst
Source: PRnewswire
- Reorganization Plan: The Board of Trustees of abrdn National Municipal Income Fund (VFL) has approved the reorganization into MFS Municipal Income Trust (MFM), aiming to create a larger fund that enhances trading volume and reduces the discount to net asset value over time.
- Shareholder Benefits: Post-reorganization, VFL shareholders will have the opportunity to invest in a significantly larger fund with a targeted annual distribution rate of 6%, potentially increasing their returns.
- Voting Arrangement: Common and preferred shareholders of VFL will vote on the proposal at a special meeting scheduled for March 11, 2026, and if approved, the reorganization is expected to close in the second quarter of 2026.
- Asset Management Scale: As of September 30, 2025, abrdn Investments managed approximately $515 billion in assets, while MFS had about $655.2 billion, and the reorganization is expected to further strengthen their market positions.
Analyst Views on MFM
About MFM
MFS Municipal Income Trust (fund) is a diversified closed-end management investment company. Its investment objective is to seek high current income exempt from federal income tax but may also consider capital appreciation. It invests, under normal market conditions, approximately 80% of its net assets, including assets attributable to preferred shares and borrowings for investment purposes, in municipal bonds. These municipal bonds include debt securities issued by or on behalf of states, territories, possessions of the United States, District of Columbia, and their political subdivisions, agencies, or instrumentalities. The Fund invests in various sectors, such as hospitals, secondary schools, colleges, schools, and water and sewer utility. It has investments in areas, including Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Guam, Hawaii, Idaho, and Illinois. Massachusetts Financial Services Company is the investment adviser of the Fund.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
