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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InThe Board of Trustees of the abrdn National Municipal Income Fund has approved the removal of a policy that previously restricted high-yield municipal security investments to 20% of its portfolio. This significant shift in investment strategy is scheduled to take effect on June 1, 2026. By removing this cap, the fund aims to provide its managers with greater flexibility to seek higher returns through lower-rated debt instruments. While the move potentially enhances income generation, it also increases the fund's overall risk profile by allowing higher exposure to non-investment grade municipal debt. Investors are closely monitoring how this change will impact the performance of the VFL fund relative to broader municipal bond benchmarks. This strategic adjustment reflects a broader trend of seeking yield in a complex fixed-income environment.