SCHEDULE: Saba Capital Trims AllianceBernstein Municipal Fund Stake

Saba Capital Management, L.P. and its affiliates have reduced their beneficial ownership in AllianceBernstein National Municipal Income Fund, Inc. to 7.92%.

Summary

• Saba Capital Management, L.P., Saba Capital Management GP, LLC, and Boaz R. Weinstein (Reporting Persons) filed an Amendment No. 6 to their Schedule 13D.
• The Reporting Persons beneficially own 2,277,251 Common Shares of AllianceBernstein National Municipal Income Fund, Inc.
• This represents 7.92% of the issuer's common stock, based on 28,744,936 shares outstanding as of October 31, 2025.
• The Reporting Persons have shared voting and dispositive power over all 2,277,251 shares.
• Funds for the acquisition of shares were derived from investor subscription proceeds, capital appreciation, and margin account borrowings.
• Approximately $23,639,262 was paid to acquire the reported Common Shares.
• Between January 8, 2026, and January 27, 2026, Saba Capital sold a total of 397,358 shares in open market transactions at prices ranging from $10.86 to $10.98 per share.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the significant reduction in the reporting person's stake, suggesting a partial divestment. While the remaining stake is still substantial, the selling activity indicates a less bullish outlook from this particular investor.

Positives

• The reporting persons still maintain a significant stake of 7.92%, indicating continued interest in the issuer.

Negatives

• Saba Capital sold 397,358 shares between January 8, 2026, and January 27, 2026, reducing its overall beneficial ownership.

Future Outlook

The filing does not contain any explicit forward-looking statements or guidance regarding the issuer's future performance or the reporting persons' future intentions beyond the current ownership disclosure.

Industry Context

This filing reflects a common practice among activist or institutional investors to adjust their positions in closed-end funds. Saba Capital Management is known for its activism in the closed-end fund space, often seeking to narrow discounts to Net Asset Value (NAV) through various strategies. The reduction in stake could indicate a partial realization of gains or a shift in investment focus, but without explicit statements, it's difficult to ascertain the precise strategic rationale. The municipal bond market, which this fund invests in, is influenced by interest rate expectations and tax policy, factors that could impact the fund's performance and investor sentiment.

Stakeholder Impact

• Shareholders: The reduction in Saba Capital's stake could be perceived negatively by other shareholders, potentially signaling a lack of confidence or a strategic shift by a prominent activist investor. However, the remaining significant stake still represents a substantial investment.

Key Dates

Recommendation

While Saba Capital has reduced its stake, it still holds a significant 7.92% of the fund. This suggests that while they may have taken some profits or reallocated capital, they still see value in the remaining position. The selling activity might put some short-term pressure on the stock, but the long-term investment thesis for the fund, if any, remains largely unchanged by this partial divestment. Investors should monitor future filings for further changes in Saba Capital's position and evaluate the fund's underlying performance and discount to NAV.

Keywords

Saba Capital Management, AllianceBernstein, Municipal Income Fund, Schedule 13D/A, Beneficial Ownership, Shareholding, Investment Fund, Closed-End Fund, Institutional Investor