VFL Announces Special Distribution and Reorganization into MFM
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Newsfilter
- Special Distribution Details: VFL announced a cash distribution of $0.024 per share on July 7, 2026, entirely composed of net investment income, aimed at providing shareholders with stable cash flow that may help reduce the current discount to NAV.
- Reorganization Plan: This distribution marks the final payout by VFL before its reorganization into MFM, with a record date of June 29, 2026, ensuring shareholders receive newly issued MFM shares equivalent to their holdings on July 10, 2026, maintaining their net asset value.
- Investor Information: Shareholders will receive a Form 1099-DIV at year-end detailing the distribution amounts and tax treatment, emphasizing that they should not assess the fund's investment performance solely based on distribution amounts.
- Market Risk Advisory: VFL shares trade on the secondary market, with prices potentially above or below NAV, requiring investors to consider market conditions and external factors that may influence trading prices to avoid potential investment losses.
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About VFL
abrdn National Municipal Income Fund (the Fund), formerly Delaware Investments National Municipal Income Fund, is a diversified closed-end management investment company. The Fund's investment objective is to provide current income exempt from regular federal income tax, consistent with the preservation of capital by investing in municipal bonds. It invests at least 80% of its net assets in securities, the income from which is exempt from federal income taxes. It also seeks to invest up to 20% of its net assets in municipal bonds with an investment rating of Ba/BB or lower, or that are unrated but judged to be of comparable quality by the Fund's investment adviser. It invests in corporate revenue bonds, education revenue bonds, electric revenue bonds, healthcare revenue bonds, housing revenue bonds, lease revenue bonds, local general obligation bonds, pre-refunded/escrowed to maturity bonds, and special tax revenue bonds. The Fund’s investment manager is abrdn, Inc.
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.
VFL Announces Special Distribution and Reorganization into MFM
- Special Distribution Details: VFL announced a cash distribution of $0.024 per share on July 7, 2026, entirely composed of net investment income, aimed at providing shareholders with stable cash flow that may help reduce the current discount to NAV.
- Reorganization Plan: This distribution marks the final payout by VFL before its reorganization into MFM, with a record date of June 29, 2026, ensuring shareholders receive newly issued MFM shares equivalent to their holdings on July 10, 2026, maintaining their net asset value.
- Investor Information: Shareholders will receive a Form 1099-DIV at year-end detailing the distribution amounts and tax treatment, emphasizing that they should not assess the fund's investment performance solely based on distribution amounts.
- Market Risk Advisory: VFL shares trade on the secondary market, with prices potentially above or below NAV, requiring investors to consider market conditions and external factors that may influence trading prices to avoid potential investment losses.
See More
VFL Announces Special Distribution Details Ahead of Reorganization
- Special Distribution Amount: VFL will pay a cash distribution of $0.024 per share on July 7, 2026, entirely composed of net investment income, aimed at providing shareholders with stable cash flow that may help reduce the current discount to NAV.
- Reorganization Plan: This distribution marks the final payout by VFL before its reorganization into MFM, with shareholders of record on July 10, 2026, receiving newly issued MFM shares, ensuring a smooth transition of shareholder interests.
- Tax Information Disclosure: At the end of each calendar year, shareholders will receive a Form 1099-DIV detailing the amount and composition of distributions, providing essential information regarding their tax treatment, ensuring shareholders are informed about the tax implications of their investments.
- Market Risk Advisory: Shares of VFL are traded on the secondary market, and their prices may fluctuate above or below NAV, necessitating investors to consider market conditions and external factors that could impact investment returns to avoid potential losses.
See More
VFL Shareholders Approve Reorganization into MFM
- Shareholder Voting Outcome: At the Special Meeting, VFL's shareholders approved the reorganization into MFM with a 64% voting turnout, indicating strong confidence in the company's future direction.
- Reorganization Details: Following the market close on July 10, 2026, VFL shareholders will receive newly issued common shares of MFM equal to the net asset value of their existing shares, ensuring a smooth transition of shareholder interests.
- Preferred Share Redemption Plan: VFL plans to redeem all preferred shares at a price of $100,000 per share plus any accrued dividends, demonstrating the company's financial stability during the reorganization process.
- Asset Management Scale: As of March 31, 2026, Aberdeen Investments managed approximately $506 billion in assets, and the reorganization is expected to enhance its competitive position in the closed-end fund market.
See More
abrdn National Municipal Income Fund Adjourns Shareholder Meeting
- Shareholder Meeting Postponed: The abrdn National Municipal Income Fund held a Special Meeting on May 27, 2026, and decided to adjourn to solicit additional proxies, with a new meeting date set for June 9, 2026, at 5:00 PM, reflecting the company's cautious approach to achieving the necessary quorum.
- Preliminary Voting Results: As of May 27, preliminary results indicate that 48.4% of outstanding shareholders voted in favor of the reorganization proposal; however, the requirement for over 50% support means the reorganization plan has not yet been approved, potentially impacting the fund's future trajectory.
- Potential Benefits of Reorganization: The proposal aims to increase the fund size through a reorganization with MFS Municipal Income Trust, with the Board unanimously recommending shareholders vote in favor, indicating a positive outlook for future growth opportunities.
- Investor Considerations: Investors should be aware that the market price of closed-end fund shares may trade at a premium or discount to net asset value (NAV), and fluctuations in investment returns and principal value could affect outcomes, particularly for those participating in dividend reinvestment plans.
See More
abrdn National Municipal Income Fund Postpones Special Shareholders Meeting
- Meeting Postponement: The abrdn National Municipal Income Fund held and adjourned its Special Meeting of Shareholders on May 27, 2026, to solicit additional proxies, rescheduling for June 9, 2026, at 5:00 PM, indicating the company's commitment to achieving the necessary quorum.
- Voting Status on Reorganization: As of May 27, preliminary results show that 48.4% of outstanding shareholders voted in favor of the reorganization proposal with MFS Municipal Income Trust, yet a 50% majority is required, highlighting shareholder engagement and the importance of the proposal.
- Potential Benefits of Reorganization: The proposal outlines benefits such as a broader investment mandate, improved portfolio diversification, and a lower expense ratio, which are expected to enhance the fund's competitive position and investment flexibility in changing market conditions.
- Board's Voting Recommendation: The Board of Trustees unanimously recommends shareholders vote
See More
abrdn National Municipal Income Fund Postpones Special Shareholders Meeting
- Shareholders Meeting Postponed: The abrdn National Municipal Income Fund held and adjourned its Special Meeting on May 6, 2026, to solicit additional proxies, with a new date set for May 27, 2026, at 11:00 AM ET, indicating challenges in achieving the required quorum for decision-making.
- Reorganization Vote Proposal: Shareholders are being asked to vote on a reorganization agreement between the abrdn National Municipal Income Fund and MFS Municipal Income Trust, with the Board unanimously recommending support for the plan, reflecting the company's proactive stance towards future consolidation.
- Investor Considerations: Shares of closed-end funds are traded on national exchanges, and their market prices may fluctuate above or below the net asset value (NAV), necessitating careful consideration by investors regarding market conditions and external factors influencing share prices.
- Asset Management Scale: As of March 31, 2026, Aberdeen Investments manages approximately $506 billion in assets, including 27 closed-end funds, underscoring its significant influence and market position in both U.S. and global markets.
See More
VFL Announces Special Distribution and Reorganization into MFM
- Special Distribution Details: VFL announced a cash distribution of $0.024 per share on July 7, 2026, entirely composed of net investment income, aimed at providing shareholders with stable cash flow that may help reduce the current discount to NAV.
- Reorganization Plan: This distribution marks the final payout by VFL before its reorganization into MFM, with a record date of June 29, 2026, ensuring shareholders receive newly issued MFM shares equivalent to their holdings on July 10, 2026, maintaining their net asset value.
- Investor Information: Shareholders will receive a Form 1099-DIV at year-end detailing the distribution amounts and tax treatment, emphasizing that they should not assess the fund's investment performance solely based on distribution amounts.
- Market Risk Advisory: VFL shares trade on the secondary market, with prices potentially above or below NAV, requiring investors to consider market conditions and external factors that may influence trading prices to avoid potential investment losses.
See More
VFL Announces Special Distribution Details Ahead of Reorganization
- Special Distribution Amount: VFL will pay a cash distribution of $0.024 per share on July 7, 2026, entirely composed of net investment income, aimed at providing shareholders with stable cash flow that may help reduce the current discount to NAV.
- Reorganization Plan: This distribution marks the final payout by VFL before its reorganization into MFM, with shareholders of record on July 10, 2026, receiving newly issued MFM shares, ensuring a smooth transition of shareholder interests.
- Tax Information Disclosure: At the end of each calendar year, shareholders will receive a Form 1099-DIV detailing the amount and composition of distributions, providing essential information regarding their tax treatment, ensuring shareholders are informed about the tax implications of their investments.
- Market Risk Advisory: Shares of VFL are traded on the secondary market, and their prices may fluctuate above or below NAV, necessitating investors to consider market conditions and external factors that could impact investment returns to avoid potential losses.
See More
VFL Shareholders Approve Reorganization into MFM
- Shareholder Voting Outcome: At the Special Meeting, VFL's shareholders approved the reorganization into MFM with a 64% voting turnout, indicating strong confidence in the company's future direction.
- Reorganization Details: Following the market close on July 10, 2026, VFL shareholders will receive newly issued common shares of MFM equal to the net asset value of their existing shares, ensuring a smooth transition of shareholder interests.
- Preferred Share Redemption Plan: VFL plans to redeem all preferred shares at a price of $100,000 per share plus any accrued dividends, demonstrating the company's financial stability during the reorganization process.
- Asset Management Scale: As of March 31, 2026, Aberdeen Investments managed approximately $506 billion in assets, and the reorganization is expected to enhance its competitive position in the closed-end fund market.
See More
abrdn National Municipal Income Fund Adjourns Shareholder Meeting
- Shareholder Meeting Postponed: The abrdn National Municipal Income Fund held a Special Meeting on May 27, 2026, and decided to adjourn to solicit additional proxies, with a new meeting date set for June 9, 2026, at 5:00 PM, reflecting the company's cautious approach to achieving the necessary quorum.
- Preliminary Voting Results: As of May 27, preliminary results indicate that 48.4% of outstanding shareholders voted in favor of the reorganization proposal; however, the requirement for over 50% support means the reorganization plan has not yet been approved, potentially impacting the fund's future trajectory.
- Potential Benefits of Reorganization: The proposal aims to increase the fund size through a reorganization with MFS Municipal Income Trust, with the Board unanimously recommending shareholders vote in favor, indicating a positive outlook for future growth opportunities.
- Investor Considerations: Investors should be aware that the market price of closed-end fund shares may trade at a premium or discount to net asset value (NAV), and fluctuations in investment returns and principal value could affect outcomes, particularly for those participating in dividend reinvestment plans.
See More
abrdn National Municipal Income Fund Postpones Special Shareholders Meeting
- Meeting Postponement: The abrdn National Municipal Income Fund held and adjourned its Special Meeting of Shareholders on May 27, 2026, to solicit additional proxies, rescheduling for June 9, 2026, at 5:00 PM, indicating the company's commitment to achieving the necessary quorum.
- Voting Status on Reorganization: As of May 27, preliminary results show that 48.4% of outstanding shareholders voted in favor of the reorganization proposal with MFS Municipal Income Trust, yet a 50% majority is required, highlighting shareholder engagement and the importance of the proposal.
- Potential Benefits of Reorganization: The proposal outlines benefits such as a broader investment mandate, improved portfolio diversification, and a lower expense ratio, which are expected to enhance the fund's competitive position and investment flexibility in changing market conditions.
- Board's Voting Recommendation: The Board of Trustees unanimously recommends shareholders vote
See More
abrdn National Municipal Income Fund Postpones Special Shareholders Meeting
- Shareholders Meeting Postponed: The abrdn National Municipal Income Fund held and adjourned its Special Meeting on May 6, 2026, to solicit additional proxies, with a new date set for May 27, 2026, at 11:00 AM ET, indicating challenges in achieving the required quorum for decision-making.
- Reorganization Vote Proposal: Shareholders are being asked to vote on a reorganization agreement between the abrdn National Municipal Income Fund and MFS Municipal Income Trust, with the Board unanimously recommending support for the plan, reflecting the company's proactive stance towards future consolidation.
- Investor Considerations: Shares of closed-end funds are traded on national exchanges, and their market prices may fluctuate above or below the net asset value (NAV), necessitating careful consideration by investors regarding market conditions and external factors influencing share prices.
- Asset Management Scale: As of March 31, 2026, Aberdeen Investments manages approximately $506 billion in assets, including 27 closed-end funds, underscoring its significant influence and market position in both U.S. and global markets.
See More
