abrdn National Municipal Income Fund 8-K

What Happened
The Board of Trustees of abrdn National Municipal Income Fund approved on April 15, 2026 a change to the Fund’s non‑fundamental investment policy to remove its cap on holdings of below‑investment‑grade municipal obligations. The change is effective June 1, 2026. Previously the Fund could invest up to 20% of its net assets in below‑investment‑grade or unrated municipal obligations; the new policy allows the Fund to invest up to 100% of its assets in those securities (if the Investment Manager deems unrated issues comparable in quality).

Key Details

• Approval date: April 15, 2026; effective date: June 1, 2026.
• Old limit: up to 20% of net assets in below‑investment‑grade or unrated municipal obligations.
• New limit: up to 100% of assets may be in below‑investment‑grade or unrated municipal obligations.
• The filing notes the Fund anticipates a larger allocation to these securities (initially about 30%, and between ~30% and 50% over time) and highlights increased risks typical of high‑yield (junk) bonds: greater default risk, higher price volatility, and lower liquidity. A press release is attached as Exhibit 99.1.

Why It Matters
This change allows the Fund to take substantially more credit risk by investing in lower‑rated municipal bonds. For investors, that means the potential for higher income but also greater risk of principal loss, more volatile net asset values, and fewer buyers in stressed markets. The filing is factual about those heightened risks (speculative nature of high‑yield bonds, difficulty pricing/selling, and greater chance issuers may be unable to pay interest or repay principal).