abrdn National Municipal Income Fund · NASDAQ:XVFLX
abrdn National Municipal Income Fund — Proxy Contest (April 2026)
12 slides from abrdn National Municipal Income Fund's proxy contest presentation, Apr 9, 2026
Slide 1: abrdn National Municipal Income Fund (VFL) Reorganization into MFS Municipal Income Fund (MFM)
aberdeeninvestments.com March 2026 abrdn National Municipal Income Fund (VFL) Reorganization into MFS Municipal Income Fund (MFM) Supplemental Proxy Materials regarding the broadening of the VFL Investment Strategy to increase allocation to High Yield Municipal Bonds
Slide 2: Executive summary
Executive summary As part of a comprehensive strategic review by management, the Board of VFL evaluated a proposed reorganization of the Fund i nto MFM with the goal of strengthening the Fund’s value proposition and enhancing its ability to attract and retain investors. During this review, the Board
Slide 3: Credit quality fund comparison
• If VFL reorganization into MFM is approved, Aberdeen expects to manage MFM in a similar manner with expected High Yield allo cat ions ranging between 30 - 50% depending on market conditions over time. • In the event that the reorganization into MFM is not approved, it is expected that the VFL inve
Slide 4: A broader mandate supports shareholders' long-term interests
A broader mandate supports shareholders’ long - term interests Permitting a municipal bond fund to invest in both investment - grade and High Yield municipal bonds potentially enhances the fund’s ability to: • Achieve stronger risk - adjusted returns • Increase income and support higher distribution
Slide 5: Broader investment universe enhances opportunity for attractive risk-adjusted returns
Broader investment universe enhances opportunity for attractive risk - adjusted returns The U.S. municipal market is large, diverse, and includes many issuers that fall outside the investment - grade universe yet exhibit strong fundamentals. By expanding the mandate: • The fund can access higher - y
Slide 6: Improved portfolio diversification and reduced concentration risk
Improved portfolio diversification and reduced concentration risk Municipal markets often exhibit segmented credit cycles in which investment - grade and High Yield sectors behave differently. Access to both allows the portfolio manager to: • Diversify across revenue sources, sectors, and issuer typ
Slide 7: Enhanced income generation and more competitive distribution levels
Enhanced income generation and more competitive distribution levels Many investors choose CEF municipal bond funds specifically for tax - exempt income . Increased High Yield municipal bond exposure typically offers significantly higher coupon levels , which can: • Increase the fund’s earnings power
Slide 8: Flexibility to navigate changing market environments
Flexibility to navigate changing market environments Market cycles rarely favor a single credit segment. Investment - grade bonds often benefit during flight - to - quality periods, while High Yield bonds may lead performance during economic expansions or declining rate environments. A broader manda
Slide 9: Historically low default rates in municipal markets support selective High Yield exposure
Historically low default rates in municipal markets support selective High Yield exposure While High Yield municipal issuers carry higher credit risk, the municipal market as a whole has historically exhibited much lower default rates than comparably rated corporate bonds. A carefully researched Hig
Slide 10: Aberdeen has a strong track record of avoiding credit events
Aberdeen has a strong track record of avoiding credit events 0 10 20 30 40 50 60 70 80 2017 2018 2019 2020 2021 2022 2023 2024 2025 Defaults by Year Bloomberg Muni Universe Aberdeen Muni Suite 10 Source: Aberdeen, Bloomberg, 31 December 2025. Aberdeen default counts reflect fund performance since in
Slide 11: Important Information
Important Information This presentation is for informational purposes only, and is not intended as an offer or recommendation with respect to the purc hase or sale of any security, option, future or other derivatives in such securities. The Fund’s adviser, one of its affiliated advisers, or its empl
Slide 12: Important Information
Important Information The amount of income received by the Fund will go up or down depending on day - to - day variations in short - term interest rates, an d when interest rates are very low the Funds expenses could absorb all or a significant portion of the Fund’s income. Investments in asset back
abrdn National Municipal Income Fund — Proxy Contest (April 2026) on 6ix