SCHEDULE: TD Bank Exits Position in abrdn Municipal Income Fund

Toronto-Dominion Bank and its affiliates have ceased to be beneficial owners of abrdn National Municipal Income Fund following a full redemption of preferred shares.

Summary

• Toronto-Dominion Bank and its subsidiaries have exited their position in abrdn National Municipal Income Fund.
• All Muni-MultiMode Preferred (MMP) Shares held by the reporting entities were redeemed by the issuer on June 16, 2026.
• Beneficial ownership of the class of securities has been reduced to 0.00%.
• All voting and financing arrangements related to the MMP shares have been terminated as a result of the redemption.
• The redemption involved Series 2049-2 and Series 2049-3 of the MMP Shares.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral administrative exit that provides liquidity but removes a yield-generating asset from the portfolio.

Positives

• Full liquidation of the preferred share position provides immediate capital for reinvestment.
• Termination of all financing and voting obligations simplifies the reporting persons' regulatory profile.
• No legal or criminal proceedings were reported for the TD entities or their management over the last five years.

Negatives

• Elimination of a specific source of municipal-based income for the TD investment portfolio.

Risks

• Reinvestment risk associated with deploying the proceeds from the redemption into comparable yield-generating assets.

Future Outlook

Reporting persons have no remaining interest in the issuer's MMP shares and have terminated all related contractual agreements.

Management Comments

• The MMP Shares were redeemed by the Issuer on June 16, 2026.
• As a result of the Redemption, the Reporting Persons no longer own any MMP Shares of the Issuer.
• All voting arrangements and financing arrangements relating to the MMP Shares have been terminated.

Industry Context

StockSavvy.ai notes that institutional redemptions of preferred shares in municipal income funds are often driven by the issuer's need to optimize their capital structure or by the holder's desire to reallocate capital toward higher-yielding or more liquid assets.

Comparison to Industry Standards

• Redemption of preferred shares is a standard mechanism for closed-end funds to manage leverage ratios.
• Institutional exits via redemption are common in the municipal bond fund space when issuers seek to restructure their capital stack.
• Comparable to deleveraging actions seen in funds managed by Nuveen and BlackRock.

Management Changes

Corporate Governance

Legal Proceedings

• No criminal or civil violations related to securities laws reported for the TD entities or their management in the last five years.

Related Party Transactions

• None disclosed.

Stakeholder Impact

• TD Bank shareholders: Realization of cash from the redemption of preferred assets.
• abrdn National Municipal Income Fund: Reduction in leverage through the redemption of MMP shares.

Next Steps

• Monitor for any new institutional positions taken by Toronto-Dominion Bank in the municipal bond sector.

Key Dates

Keywords

abrdn National Municipal Income Fund, Toronto-Dominion Bank, Muni-MultiMode Preferred Shares, Share Redemption, Schedule 13D, Institutional Exit, Municipal Bonds, Capital Structure