DEFA14A: Neuberger Berman Municipal Fund Urges Stockholders to Vote FOR Current Directors Amidst Saba Capital's Nomination

Neuberger Berman Municipal Fund is urging stockholders to vote for the re-election of its current directors, emphasizing their experience and dedication to enhancing investment value, while cautioning against the disruptive influence of Saba Capital's nominee.

Summary

• The Board of Directors of Neuberger Berman Municipal Fund Inc. (NBH) is urging stockholders to vote FOR the re-election of its current directors.
• The Board believes the current directors are highly qualified and experienced.
• Saba Capital Master Fund Ltd. (Saba) has submitted a nominee for election as a director.
• The Board believes Saba seeks to disrupt the Board for its own gain and may impair the Fund's long-term investment potential.
• The Board emphasizes that each current director offers specialized expertise.
• The Fund has retained EQ Fund Solutions as its proxy solicitor.
• Stockholders are urged to vote using the WHITE proxy card and to disregard any GOLD proxy cards sent by Saba.
• Not voting helps Saba and may negatively impact the Fund's long-term prospects.
• Only the latest dated proxy card submission will count.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as the board is actively defending its position and emphasizing its commitment to stockholders' interests. However, the presence of a proxy fight introduces uncertainty.

Positives

• The Board of Directors is actively defending the Fund against potential disruption.
• The current directors are described as highly qualified and experienced.
• The Fund has engaged a proxy solicitor to ensure stockholders are informed.

Negatives

• Saba Capital's nomination is viewed as a potential disruption to the Board's oversight.
• The Board believes Saba's actions are for its own gain and may impair the Fund's long-term investment potential.
• Not voting is seen as helping Saba and potentially harming the Fund's prospects.

Risks

• The election of Saba's nominee could disrupt the Board's balance of skills and undermine performance.
• Saba's involvement may lead to changes that are not in the best interest of all stockholders.
• There is a risk that stockholders may inadvertently vote using the wrong proxy card, potentially canceling out their intended vote.

Future Outlook

The document focuses on the immediate action of the proxy vote and does not provide specific forward-looking statements about the Fund's financial performance or future strategies beyond defending the current board composition.

Management Comments

• The Board is focused on the best interest of ALL stockholders and dedicated to enhancing the value of your investment.
• Replacing any existing Directors of your Fund could jeopardize the balance of skills across the entire Board and may undermine the performance of the Board and the Fund.
• We Plan to Vigorously Defend YOUR FUND!

Industry Context

This announcement reflects a common scenario in the investment management industry where activist investors like Saba Capital seek to influence the direction of closed-end funds through board representation. This often leads to proxy contests and active engagement with shareholders.

Stakeholder Impact

• Shareholders are directly impacted by the outcome of the proxy vote, which will determine the composition of the Board.
• The Board's actions aim to protect the long-term investment potential of the Fund for all stockholders.

Next Steps

• Stockholders need to vote using the WHITE proxy card.
• The Fund will continue to communicate with stockholders through its proxy solicitor, EQ Fund Solutions.

Keywords

Proxy Vote, Board of Directors, Saba Capital, Neuberger Berman Municipal Fund, Director Election, Stockholders