UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
| Investment Company Act file number: | 811-07410 |
| Exact name of registrant as specified in charter: | abrdn National Municipal Income Fund |
| Address of principal executive offices: | 1900 Market Street, Suite 200 |
| Philadelphia, PA 19103 | |
| Name and address of agent for service: | Sharon Ferrari |
| abrdn Inc. | |
| 1900 Market Street Suite 200 | |
| Philadelphia, PA 19103 | |
| Registrant’s telephone number, including area code: | 1-800-522-5465 |
| Date of fiscal year end: | September 30 |
| Date of reporting period: | March 31, 2024 |
Item 1. Reports to Stockholders.
abrdn National Municipal Income Fund (VFL)
Semi-Annual Report
March 31, 2024
abrdn.com
Letter to Shareholders (unaudited)
{foots1}
| 1 | Past performance is no guarantee of future results. Investment returns and principal value will fluctuate and shares, when sold, may be worth more or less than original cost. Current performance may be lower or higher than the performance quoted. NAV return data include investment management fees, custodial charges and administrative fees (such as Trustee and legal fees) and assumes the reinvestment of all distributions. |
{foots1}
| 2 | Assuming the reinvestment of dividends and distributions. |
{foots1}
| 3 | The Fund’s total return is based on the reported NAV for each financial reporting period end and may differ from what is reported on the Financial Highlights due to financial statement rounding or adjustments. |
{foots1}
| 4 | The Bloomberg Municipal Bond Index consists of the long-term investment grade tax exempt bonds. Indexes are unmanaged and provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. |
| abrdn National Municipal Income Fund | 1 |
Letter to Shareholders (unaudited) (concluded)
{foots1}
All amounts are U.S.
Dollars unless otherwise stated.
| 2 | abrdn National Municipal Income Fund |
Total Investment Return (unaudited)
The following table summarizes
the average annual Fund performance compared to the Fund’s primary benchmark for the six-month (not annualized), 1-year, 3-year, 5-year and 10-year periods ended March 31, 2024.
| 6 Months | 1 Year | 3 Years | 5 Years | 10 Years | |
| Net Asset Value (NAV) | 19.80% | 6.61% | -2.39% | 0.99% | 3.60% |
| Market Price | 22.95% | 1.45% | -3.24% | 0.58% | 3.21% |
| Bloomberg Municipal Bond Index | 7.48% | 3.13% | -0.41% | 1.59% | 2.66% |
Performance of a $10,000
Investment (as of March 31, 2024)
This graph shows the change in
value of a hypothetical investment of $10,000 in the Fund for the periods indicated. For comparison, the same investment is shown in the indicated index.
abrdn Inc. (the "Investment
Manager") assumed responsibility for the management of the Fund as investment manager at the close of business on July 7, 2023. Performance prior to this date reflects the performance of an unaffiliated investment
manager.
The performance above
reflects fee waivers and/or expense reimbursements made by the Fund’s current investment manager. Absent such waivers and/or reimbursements, the Fund’s returns would be lower. Additionally, abrdn entered
into an agreement with the Fund to limit investor relations services fees. This agreement aligns with the term of the advisory agreement and may not be terminated prior to the end of the current term of the
advisory agreement. See Note 3 in the Notes to Financial Statements.
Returns represent past
performance. Total investment return at NAV is based on changes in the NAV of Fund shares and assumes reinvestment of dividends and distributions, if any, at market prices pursuant to the dividend reinvestment program
sponsored by the Fund’s transfer agent. All return data at NAV includes fees charged to the Fund, which are listed in the Fund’s Statement of Operations under “Expenses.” Total investment
return at market value is based on changes in the market price at which the Fund’s shares traded on the NYSE American during the period and assumes reinvestment of dividends and distributions, if any, at market
prices pursuant to the dividend reinvestment program sponsored by the Fund’s transfer agent. The Fund’s total investment return is based on the reported NAV on the financial reporting period ended March
31, 2024. Because the Fund’s shares trade in the stock market based on investor demand, the Fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on both market price
and NAV. Past performance is no guarantee of future results. The performance information provided does not reflect the deduction of taxes that a shareholder would pay on distributions received
from the Fund. The current performance of the Fund may be lower or higher than the figures shown. The Fund’s yield, return, market price and NAV will fluctuate. Performance information current to the most recent
month-end is available at www.abrdnvfl.com or by calling 800-522-5465.
The annualized net operating
expense ratio excluding fee waivers based on the six-month period ended March 31, 2024 was 4.44%. The annualized net operating expense ratio net of fee waivers based on the six-month period ended March 31, 2024 was
4.28%.The annualized net operating expenses net of fee waivers and excluding dividend expense based on the six-month period ended March 31, 2024 was 1.08%.
| abrdn National Municipal Income Fund | 3 |
Portfolio Summary (unaudited)
As of March 31, 2024
Quality of Investments(1)
As of March 31, 2024, 62.3%
of the Fund’s investments were invested in securities where either the issue or the issuer was rated “A” or better by S&P Global Ratings (“S&P”), Moody’s Investors Service,
Inc. ("Moody's") or Fitch Ratings, Inc. (“Fitch”) or, if unrated, was judged to be of equivalent quality by the Investment Manager. The following table shows the ratings of securities held by the
Fund as of March 31, 2024:
| Credit Rating | As a percentage of total investments |
| AAA | 3.7% |
| AA | 39.3% |
| A | 19.3% |
| BBB | 18.1% |
| BB | 1.2% |
| B | 0.1% |
| Below B | 0.6% |
| Non-Rated | 17.7% |
| 100.0% |
| (1) | Generally, the credit ratings range from AAA (highest) to D (lowest). Where bonds held in the Fund are rated by multiple rating agencies (Moody’s, Fitch and S&P), the Higher of the ratings is used. This may not be consistent with data from the benchmark provider. Quality distribution represents ratings of the underlying securities held within the Fund, and not ratings of the Fund itself. |
The following table shows the
sector exposure of the securities held by the Fund as at March 31, 2024:
| Sector Exposure | As a percentage of total investments |
| Hospital | 17.0% |
| Higher Education | 7.3% |
| Appropriations | 6.0% |
| Gas Contract | 6.0% |
| Continuing Care Retirement Communities | 5.2% |
| Tobacco Master Securities | 5.2% |
| Sale & Excise Tax | 4.8% |
| Charter School | 4.7% |
| Others | 43.8% |
| 100.0% |
| 4 | abrdn National Municipal Income Fund |
Portfolio Summary (unaudited) (concluded)
As of March 31, 2024
The following table shows the
state allocation of the securities held by the Fund as of March 31, 2024:
| States | As a percentage of net assets |
| New York | 20.1% |
| California | 14.6% |
| Texas | 14.3% |
| Puerto Rico | 13.6% |
| Colorado | 12.3% |
| Illinois | 9.5% |
| Alabama | 8.7% |
| Minnesota | 8.4% |
| Georgia | 7.7% |
| Pennsylvania | 6.6% |
| Florida | 6.5% |
| New Jersey | 4.2% |
| Washington | 4.1% |
| Ohio | 3.9% |
| New Hampshire | 3.7% |
| Wisconsin | 3.7% |
| Idaho | 3.6% |
| Arizona | 3.4% |
| Massachusetts | 2.8% |
| Tennessee | 2.0% |
| Mississippi | 2.0% |
| Other, less than 2% each | 9.2% |
| Short-Term Investment | – |
| Liabilities in Excess of Other Assets | (64.9%) |
| 100.0% |
The following were the
Fund’s top ten holdings as of March 31, 2024:
| Top Ten Holdings | As a percentage of net assets |
| Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Series A-1 07/01/2051 | 5.5% |
| GDB Debt Recovery Authority of Puerto Rico 08/20/2040 | 4.0% |
| Hillsborough County Industrial Development Authority, Series A 08/01/2055 | 3.7% |
| New York Liberty Development Corp., (BAM-TCRS), Series A 11/15/2046 | 3.6% |
| City of Austin Airport System Revenue 11/15/2052 | 3.5% |
| Municipal Electric Authority of Georgia, (BAM-TCRS), Series A 01/01/2056 | 3.5% |
| State of California 10/01/2050 | 3.4% |
| Irvine Facilities Financing Authority, Series A 05/01/2053 | 3.4% |
| Illinois Finance Authority, Series A 08/15/2051 | 3.1% |
| Golden State Tobacco Securitization Corp., Series B 06/01/2066 | 3.1% |
| abrdn National Municipal Income Fund | 5 |
Portfolio of Investments (unaudited)
As of March 31, 2024
| 6 | abrdn National Municipal Income Fund |
Portfolio of Investments (unaudited) (continued)
As of March 31, 2024
| abrdn National Municipal Income Fund | 7 |
Portfolio of Investments (unaudited) (continued)
As of March 31, 2024
| 8 | abrdn National Municipal Income Fund |
Portfolio of Investments (unaudited) (concluded)
As of March 31, 2024
| abrdn National Municipal Income Fund | 9 |
Statement of Assets and Liabilities (unaudited)
As of March 31, 2024
| Assets | |
| Investments, at value (cost $241,263,444) | $ 243,537,700 |
| Short-term investments, at value (cost $1) | 1 |
| Receivable for investments sold | 3,827,693 |
| Interest and dividends receivable | 3,061,642 |
| Prepaid expenses in connection with preferred shares | 21,515 |
| Prepaid expenses | 5,634 |
| Total assets | 250,454,185 |
| Liabilities | |
| Liquidation value of preferred shares | 99,000,000 |
| Payable for investments purchased | 3,112,580 |
| Due to custodian | 355,702 |
| Investment management fees payable (Note 3) | 74,098 |
| Trustee fees payable | 65,956 |
| Investor relations fees payable (Note 3) | 18,321 |
| Administration fees payable (Note 3) | 16,774 |
| Other accrued expenses | 114,306 |
| Total liabilities | 102,757,737 |
| Net Assets | $147,696,448 |
| Composition of Net Assets | |
| Common stock (par value $0.001 per share) (Note 5) | $ 12,278 |
| Paid-in capital in excess of par | 180,187,892 |
| Accumulated loss | (32,503,722) |
| Net Assets | $147,696,448 |
| Net asset value per share based on 12,278,003 shares issued and outstanding | $12.03 |
See Notes to Financial
Statements.
| 10 | abrdn National Municipal Income Fund |
Statement of Operations (unaudited)
For the Six-Months Ended March 31, 2024
| Net Investment Income | |
| Investment Income: | |
| Interest and amortization of discount and premium and other income | $ 5,925,342 |
| Total investment income | 5,925,342 |
| Expenses: | |
| Investment management fee (Note 3) | 479,039 |
| Trustees' fees and expenses | 100,446 |
| Administration fee (Note 3) | 95,808 |
| Investor relations fees and expenses (Note 3) | 40,580 |
| Legal fees and expenses | 38,623 |
| Independent auditors’ fees and tax expenses | 38,135 |
| Insurance expense | 23,768 |
| Reports to shareholders and proxy solicitation | 16,038 |
| Transfer agent’s fees and expenses | 8,053 |
| Custodian’s fees and expenses | 4,857 |
| Miscellaneous | 25,643 |
| Total operating expenses, excluding dividend expense | 870,990 |
| Dividend expense on preferred shares (Note 6) | 2,248,723 |
| Total operating expenses before reimbursed/waived expenses | 3,119,713 |
| Less: Investor relations fee waiver (Note 3) | (5,450) |
| Expenses waived (Note 3) | (109,941) |
| Net expenses | 3,004,322 |
| Net Investment Income | 2,921,020 |
| Net Realized/Unrealized Gain/(Loss) from Investments and Foreign Currency Related Transactions: | |
| Net realized gain/(loss) from: | |
| Investments | (3,599,530) |
| (3,599,530) | |
| Net change in unrealized appreciation/(depreciation) on: | |
| Investments | 24,942,925 |
| 24,942,925 | |
| Net realized and unrealized gain from investments | 21,343,395 |
| Change in Net Assets Resulting from Operations | $24,264,415 |
See Notes to Financial
Statements.
| abrdn National Municipal Income Fund | 11 |
Statements of Changes in Net Assets
| For the Six-Month Period Ended March 31, 2024 (unaudited) | For the Period From April 1, 2023 to September 30, 2023 | For the Year Ended March 31, 2023(a) | |
| Increase/(Decrease) in Net Assets: | |||
| Operations: | |||
| Net investment income | $2,921,020 | $2,958,343 | $8,659,677 |
| Net realized loss from investments | (3,599,530) | (4,724,472) | (24,543,349) |
| Net change in unrealized appreciation/(depreciation) on investments | 24,942,925 | (14,222,498) | (10,657,292) |
| Net increase/(decrease) in net assets resulting from operations | 24,264,415 | (15,988,627) | (26,540,964) |
| Distributions to Shareholders From: | |||
| Distributable earnings | (2,578,381) | (2,701,161) | (8,622,394) |
| Return of capital | – | – | (1,132,057) |
| Net decrease in net assets from distributions | (2,578,381) | (2,701,161) | (9,754,451) |
| Cost of Shares Redeemed | – | – | (103,710,362) |
| Change in net assets | 21,686,034 | (18,689,788) | (140,005,777) |
| Net Assets: | |||
| Beginning of period | 126,010,414 | 144,700,202 | 284,705,979 |
| End of period | $147,696,448 | $126,010,414 | $144,700,202 |
| (a) | Audited by a different independent registered public accounting firm. |
Amounts listed as
“–” are $0 or round to $0.
See Notes to Financial
Statements.
| 12 | abrdn National Municipal Income Fund |
Statement of Cash Flows (unaudited)
For the Six-Months Ended March 31, 2024
| Cash flows from operating activities: | |
| Net increase/(decrease) in net assets resulting from operations | $ 24,264,415 |
| Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: | |
| Investments purchased | (87,878,090) |
| Investments sold and principal repayments | 87,796,531 |
| Increase in short-term investments, excluding foreign government | (1) |
| Net amortization/accretion of premium/(discount) | (445,732) |
| Increase in interest, dividends and other receivables | (95,054) |
| Increase in prepaid expenses | (16,969) |
| Increase in accrued investment advisory fees payable | 74,098 |
| Decrease in other accrued expenses | (93,586) |
| Net change in unrealized appreciation of investments | (24,942,925) |
| Net realized loss on investments transactions | 3,599,530 |
| Net cash provided by operating activities | 2,511,212 |
| Cash flows from financing activities: | |
| Increase in payable to custodian | 67,169 |
| Distributions paid to shareholders | (2,578,381) |
| Net cash used in financing activities | (2,511,212) |
| Unrestricted and restricted cash and foreign currency, beginning of period | – |
| Unrestricted and restricted cash and foreign currency, end of period | $– |
| Supplemental disclosure of cash flow information: | |
| Cash paid for interest and fees on borrowing | $2,248,723 |
Amounts listed as
“–” are $0 or round to $0.
See Notes to Financial
Statements.
| abrdn National Municipal Income Fund | 13 |
Financial Highlights
| For the Six-Months Ended March 31, | For the Period From April 1, 2023 to September 30, | For the Fiscal Years Ended March 31, | |||||
| 2024 (unaudited) | 2023 (a)(b) | 2023 | 2022 | 2021 | 2020 | 2019 | |
| PER SHARE OPERATING PERFORMANCE(c): | |||||||
| Net asset value per common share, beginning of period | $10.26 | $11.79 | $13.59 | $14.84 | $13.71 | $14.44 | $14.34 |
| Net investment income(d) | 0.24 | 0.24 | 0.47 | 0.51 | 0.58 | 0.54 | 0.59 |
| Net realized and unrealized gains/(losses) on investments | 1.74 | (1.55) | (1.73) | (1.12) | 1.12 | (0.57) | 0.11 |
| Total from investment operations applicable to common shareholders | 1.98 | (1.31) | (1.26) | (0.61) | 1.70 | (0.03) | 0.70 |
| Distributions to common shareholders from: | |||||||
| Net investment income | (0.21) | (0.22) | (0.48) | (0.54) | (0.51) | (0.55) | (0.60) |
| Net realized gains | – | – | – | (0.10) | (0.06) | (0.15) | – |
| Return of capital | – | – | (0.06) | – | – | – | – |
| Total distributions | (0.21) | (0.22) | (0.54) | (0.64) | (0.57) | (0.70) | (0.60) |
| Net asset value per common share, end of period | $12.03 | $10.26 | $11.79 | $13.59 | $14.84 | $13.71 | $14.44 |
| Market price, end of period | $10.36 | $8.61 | $10.67 | $12.65 | $13.12 | $12.24 | $12.69 |
| Total Investment Return Based on(e): | |||||||
| Market price | 22.95% | (17.48%) | (11.51%) | 0.92% | 12.11% | 1.35% | 5.56% |
| Net asset value | 19.80% | (11.01%) | (9.25%) | (4.15%) | 13.20% | (0.24%) | 5.71% |
| Ratio to Average Net Assets Applicable to Common Shareholders/Supplementary Data: | |||||||
| Net assets applicable to common shareholders, end of period (000 omitted) | $147,696 | $126,010 | $144,700 | $284,706 | $67,182 | $62,085 | $65,399 |
| Average net assets applicable to common shareholders (000 omitted)(f) | $140,519 | $141,600 | $– | $– | $– | $– | $– |
| Net operating expenses, net of fee waivers | 4.28%(g) | 4.11%(g) | 2.89% | 1.57% | 1.66% | 2.27% | 2.31% |
| Net operating expenses, excluding fee waivers | 4.44%(g) | 4.58%(g) | 2.89% | 1.57% | 1.66% | 2.27% | 2.31% See Notes to Financial Statements.
|
| 14 | abrdn National Municipal Income Fund |
Financial Highlights (concluded)
| For the Six-Months Ended March 31, | For the Period From April 1, 2023 to September 30, | For the Fiscal Years Ended March 31, | |||||
| 2024 (unaudited) | 2023 (a)(b) | 2023 | 2022 | 2021 | 2020 | 2019 | |
| Net operating expenses, net of fee waivers, excluding dividend expense | 1.08%(g) | 1.01%(g) | 1.39% | 1.04% | 1.02% | 1.11% | 1.05% |
| Net Investment income(h) | 4.16%(g) | 4.17%(g) | 3.83% | 3.45% | 4.03% | 3.69% | 4.19% |
| Portfolio turnover | 64%(i) | 65% | 94% | 75% | 19% | 33% | 16% |
| Total leverage (preferred stock) outstanding (000 omitted)(j) | $99,000 | $99,000 | $99,000 | $135,000 | $30,000 | $30,000 | $30,000 |
| Asset coverage per $1,000 on total leverage at period end(j) | $249,188 | $227,283 | $246,162 | $310,893 | $323,942 | $306,949 | $317,996 |
| Liquidation value per share of preferred shares(j) | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
| (a) | Effective as of the close of business on July 7, 2023, abrdn assumed responsibility for the management of the Fund from Delaware Management Company, a series of Macquarie Investment Management Business Trust. |
| (b) | Beginning with the period ended September 30, 2023, the Fund’s financial statements were audited by KPMG LLP. Previous years were audited by a different independent registered public accounting firm. |
| (c) | Based on average shares outstanding. |
| (d) | Net investment income is reduced by dividends paid to preferred shareholders from net investment income of $0.18, $0.18, $0.28, $0.08, $0.08, $0.17, and $0.18 per share for the six months ended March 31, 2024, the period ended September 30, 2023 and for the years ended March 31, 2023, 2022, 2021, 2020, and 2019, respectively. |
| (e) | Total investment return based on market value is calculated assuming that shares of the Fund’s common stock were purchased at the closing market price as of the beginning of the period, dividends, capital gains and other distributions were reinvested as provided for in the Fund’s dividend reinvestment plan and then sold at the closing market price per share on the last day of the period. The computation does not reflect any sales commission investors may incur in purchasing or selling shares of the Fund. The total investment return based on the net asset value is similarly computed except that the Fund’s net asset value is substituted for the closing market value. |
| (f) | Average net assets applicable to common shareholders were not shown for the fiscal years ended March 31, 2023, 2022, 2021, 2020, and 2019. |
| (g) | Annualized. |
| (h) | The annualized ratio of net investment income excluding dividend expense to average net assets for the six months ended March 31, 2024 and the period ended September 30, 2023 was 7.36% and 6.80%, respectively. The ratio of net investment income excluding dividend expense to average net assets for the years ended March 31, 2023, 2022, 2021, 2020, and 2019 were 5.33%, 3.98%, 4.67%, 4.84%, and 5.45%, respectively. |
| (i) | Not annualized. |
| (j) | In March 2012, the Fund issued a series of 300 variable rate preferred shares, with a liquidation preference of $100,000 per share (Series 2017 Shares). The Series 2017 Shares were redeemed on February 2, 2016 and replaced with Series 2021 Shares, which were the same amount and value as the Fund’s Series 2017 Shares. On April 25, 2019, the Fund redeemed the Series 2021 Shares, and replaced them with Series 2049 Muni-MultiMode Preferred Shares (Series 2049), which have the same amount and value as the Series 2021 Shares. When the Fund acquired Delaware Investments Colorado Municipal Income Fund, Inc. and Delaware Investments Minnesota Municipal Income Fund II, Inc. on February 11, 2022, it also acquired the Series 2049 preferred shares used as leverage by those funds, which are reflected in the value of preferred shares outstanding in the table above. 36,000,000 were redeemed to Fund the tender offer on December 16, 2022. |
Amounts listed as
“–” are $0 or round to $0.
See Notes to Financial
Statements.
| abrdn National Municipal Income Fund | 15 |
Notes to Financial Statements (unaudited)
March 31, 2024
March 31, 2024
| 16 | abrdn National Municipal Income Fund |
Notes to Financial Statements (unaudited) (continued)
March 31, 2024
March 31, 2024
A summary of standard
inputs is listed below:
| Security Type | Standard Inputs |
| Debt and other fixed-income securities | Reported trade data, broker-dealer price quotations, benchmark yields, issuer spreads on comparable securities, credit quality, yield, and maturity. |
The following is a
summary of the inputs used as of March 31, 2024 in valuing the Fund's investments and other financial instruments at fair value. The inputs or methodology used for valuing securities are not necessarily an indication
of the risk associated with investing in those securities. Please refer to the Portfolio of Investments for a detailed breakout of the security types:
| Investments, at Value | Level 1 – Quoted Prices | Level 2 – Other Significant Observable Inputs | Level 3 – Significant Unobservable Inputs | Total |
| Assets | ||||
| Investments in Securities | ||||
| Municipal Bonds | $– | $243,537,700 | $– | $243,537,700 |
| Short-Term Investment | 1 | – | – | 1 |
| Total Investments | $1 | $243,537,700 | $– | $243,537,701 |
| Total Investment Assets | $1 | $243,537,700 | $– | $243,537,701 |
Amounts listed as
“–” are $0 or round to $0.
b. Restricted
Securities:
| abrdn National Municipal Income Fund | 17 |
Notes to Financial Statements (unaudited) (continued)
March 31, 2024
March 31, 2024
| 18 | abrdn National Municipal Income Fund |
Notes to Financial Statements (unaudited) (continued)
March 31, 2024
March 31, 2024
| abrdn National Municipal Income Fund | 19 |
Notes to Financial Statements (unaudited) (continued)
March 31, 2024
March 31, 2024
| 20 | abrdn National Municipal Income Fund |
Notes to Financial Statements (unaudited) (continued)
March 31, 2024
March 31, 2024
9. Tax
Information
The U.S. federal
income tax basis of the Fund's investments (including derivatives, if applicable) and the net unrealized appreciation as of March 31, 2024, were as follows:
| Tax Cost of Securities | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) |
| $241,799,934 | $6,972,324 | $(5,234,557) | $1,737,767 |
10. Subsequent Events
Management has evaluated
the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no disclosures and/or adjustments were required to the
financial statements as of March 31, 2024, other than as noted below.
| abrdn National Municipal Income Fund | 21 |
Notes to Financial Statements (unaudited) (concluded)
March 31, 2024
March 31, 2024
On April 9, 2024 and May 9, 2024
the Fund announced that it will pay on April 30, 2024 and May 31, 2024, respectively, a distribution of US $0.0450 per share to all shareholders of record as of April 23, 2024 and May 23, 2024, respectively.
On May 24, 2024, the Board of
abrdn plc announced Stephen Bird would be leaving abrdn effective June 30, 2024.
| 22 | abrdn National Municipal Income Fund |
Dividend Reinvestment and Optional Cash Purchase
Plan (Unaudited)
| abrdn National Municipal Income Fund | 23 |
Dividend Reinvestment and Optional Cash Purchase
Plan (Unaudited) (concluded)
| 24 | abrdn National Municipal Income Fund |
Corporate Information
The Financial Statements
as of March 31, 2024, included in this report, were not audited and accordingly, no opinion is expressed thereon.
Notice is hereby given in
accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that the Fund may purchase, from time to time, shares of its common stock in the open market.
Shares of abrdn National
Municipal Income Fund are traded on the NYSE American under the symbol “VFL.” Information about the Fund’s net asset value and market price is available at www.abrdnvfl.com.
This report, including
the financial information herein, is transmitted to the shareholders of abrdn National Municipal Income Fund for their general information only. It does not have regard to the specific investment objectives, financial
situation and the particular needs of any specific person. Past performance is no guarantee of future results.
VFL-SEMI-ANNUAL
Item 2. Code of Ethics.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 3. Audit Committee Financial Expert.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 4. Principal Accountant Fees and Services.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 5. Audit Committee of Listed Registrants.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 6. Schedule of Investments.
(a) Schedule of Investments in securities of unaffiliated issuers as of close of the reporting period is included as part of the Reports to Shareholders filed under Item 1 of this Form N-CSR.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
(a) Not applicable to semi-annual report on Form N-CSR.
(b) There has been no change, as of the date of this filing, in any of the portfolio managers identified in response to paragraph (a)(1) of this Item in the registrant’s most recently filed annual report on Form N-CSR.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
No such purchases were made by or on behalf of the Registrant during the period covered by the report.
Item 10. Submission of Matters to a Vote of Security Holders.
During the period ended March 31, 2024, there were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11. Controls and Procedures.
| (a) | The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d15(b)). |
| (b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable
Item 13. Recovery of Erroneously Awarded Compensation
Not appliable
Item 14. Exhibits.
| (a)(1) | Not applicable. |
| (a)(2) | The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this Form N-CSR. |
| (a)(3) | Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. |
| (a)(4) | Change in Registrant’s independent public accountant. Not applicable. |
| (b) | The certifications of the registrant as required by Rule 30a-2(b) under the Act are exhibits to this Form N-CSR. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
abrdn National Municipal Income Fund
| By: | /s/ Christian Pittard | |
| Christian Pittard, | ||
| Principal Executive Officer of | ||
| abrdn National Municipal Income Fund | ||
| Date: June 10, 2024 | ||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By: | /s/ Christian Pittard | |
| Christian Pittard, | ||
| Principal Executive Officer of | ||
| abrdn National Municipal Income Fund | ||
| Date: June 10, 2024 | ||
| By: | /s/ Sharon Ferrari | |
| Sharon Ferrari, | ||
| Principal Financial Officer of | ||
| abrdn National Municipal Income Fund | ||
| Date: June 10, 2024 | ||