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Delaware Investments National Municipal Income Fund ( (VFL) ) just unveiled an update.
On April 15, 2026, abrdn National Municipal Income Fund’s board approved removing a non-fundamental cap that had limited the fund to investing no more than 20% of its portfolio in below-investment-grade, or high-yield, municipal obligations. Effective June 1, 2026, the fund may invest up to 100% of assets in such securities, though it initially plans to raise high-yield exposure to about 30%, and then to roughly 30%–50% over time depending on market conditions.
The board weighed the increased credit and volatility risk inherent in high-yield “junk” municipal bonds—such as higher default risk, greater price swings, and lower liquidity—against potential benefits including broader diversification, higher earnings, stronger distributions, and improved long-term risk-adjusted returns. It concluded that the expanded mandate better positions the fund to serve shareholders, while reminding investors that closed-end fund shares can trade at premiums or discounts to net asset value and that returns and principal may fluctuate in secondary-market trading.
More about Delaware Investments National Municipal Income Fund
abrdn National Municipal Income Fund is a U.S.-listed closed-end fund that invests primarily in municipal securities, seeking tax-advantaged income for shareholders. It is managed under the Aberdeen Investments umbrella, one of the world’s largest asset managers, which oversees a wide range of closed-end funds and had about $525 billion in assets under management as of December 31, 2025.
Aberdeen Investments, through affiliated registered investment advisers including abrdn Inc. and abrdn Investments Limited, focuses on diversified strategies across global fixed income and equities. The group has managed closed-end funds since the 1980s, leveraging its scale and experience to serve retail and institutional investors in multiple markets.
Average Trading Volume: 30,715
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