N-CSRS 1 ncsrs-muni.htm CERTIFIED SEMI-ANNUAL SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES FILED ON FORM N-CSR

As filed with the Securities and Exchange Commission on June 26, 2025

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: 811-21168

NEUBERGER BERMAN MUNICIPAL FUND INC.

(Exact Name of Registrant as specified in charter)

c/o Neuberger Berman Investment Advisers LLC

1290 Avenue of the Americas

New York, New York 10104-0002

(Address of Principal Executive Offices – Zip Code)

Joseph V. Amato

Chief Executive Officer and President

Neuberger Berman Municipal Fund Inc.

c/o Neuberger Berman Investment Advisers LLC

1290 Avenue of the Americas
New York, New York 10104-0002

Lori L. Schneider, Esq.

K&L Gates LLP

1601 K Street, N.W.

Washington, D.C. 20006-1600

(Names and Addresses of agents for service)

Registrant's telephone number, including area code: (212) 476-8800

Date of fiscal year end: October 31

Date of reporting period: April 30, 2025

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Act”) (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Report to Stockholders.

(a)	Following is a copy of the semi-annual report transmitted to stockholders pursuant to Rule 30e-1 under the Act.

Neuberger Berman
Municipal Fund Inc.

Semi-Annual Report

April 30, 2025

Contents

PRESIDENT'S LETTER	1
PORTFOLIO COMMENTARY	2
SCHEDULE OF INVESTMENTS	6
FINANCIAL STATEMENTS	20
NOTES TO FINANCIAL STATEMENTS	23
FINANCIAL HIGHLIGHTS	29
Distribution Reinvestment Plan for the Fund	31
Directory	34
Proxy Voting Policies and Procedures	35
Quarterly Portfolio Schedule	35
Privacy NoticeLocated after the Fund's Report

The "Neuberger Berman" name and logo and "Neuberger Berman Investment Advisers LLC" name are registered service marks of Neuberger Berman Group LLC. The individual Fund name in this piece is either a service mark or registered service mark of Neuberger Berman Investment Advisers LLC. ©2025 Neuberger Berman Investment Advisers LLC. All rights reserved.

President’s Letter

Dear Stockholder,

I am pleased to present this semi-annual report for Neuberger Berman Municipal Fund Inc. (the Fund) for the six months ended April 30, 2025 (the reporting period). The report includes a portfolio commentary, a listing of the Fund’s investments and its unaudited financial statements for the reporting period.

The Fund’s investment objective is to provide a high level of current income exempt from federal income tax. The Fund may invest in securities the interest on which is subject to the federal alternative minimum tax. We maintain a conservative investment philosophy and disciplined investment process in an effort to provide you with tax-exempt current income over the long term with less volatility and risk.

Thank you for your confidence in the Fund. We will continue to do our best to retain your trust in the years to come.

Sincerely,

Joseph V. Amato
President and CEO
Neuberger Berman Municipal Fund Inc.

Neuberger Berman Municipal Fund Inc. Portfolio Commentary (Unaudited)

Neuberger Berman Municipal Fund Inc. (the Fund) generated a -2.98% total return on a net asset value (NAV) basis for the six months ended April 30, 2025 (the reporting period), versus a -0.15% total return for its benchmark, the Bloomberg 10-Year Municipal Bond Index (the Index), during the reporting period. (Fund performance on a market price basis is provided in the table immediately following this commentary.) The use of leverage (typically a performance enhancer in up markets and a detractor during market retreats) detracted from the Fund’s performance during the reporting period.

The investment-grade municipal bond market generated a negative return and underperformed the taxable investment-grade bond market during the reporting period. All told, the Bloomberg Municipal Bond Index returned -0.78% for the reporting period, whereas the overall taxable investment-grade bond market, as measured by the Bloomberg U.S. Aggregate Bond Index, returned 2.57%. The fixed income market was impacted by a number of factors, including a largely resilient U.S. economy, moderating but still “sticky” inflation, shifting expectations for U.S. Federal Reserve Board rate cuts, the potential impact from the Trump administration’s tariff policies, and numerous geopolitical events. The municipal market lagged its taxable counterpart, partially due to a sharp increase in supply over the reporting period.

In terms of the Fund’s results, duration positioning detracted from performance. In particular, having a duration that was longer than the Index was a headwind for returns as municipal rates moved higher over the reporting period. Yield curve positioning also detracted from performance, as the Fund maintained a barbell structure (i.e., bonds with both short-term and long-term maturities), whereas the Index emphasizes the intermediate portion of the curve. Elsewhere, several of the Fund’s lower quality project-finance-oriented securities detracted from performance. On the upside, security selection in the housing, tobacco and airport sectors were additive for returns. In addition, the Fund’s security selection within the BBB rating category was beneficial to performance.

There were no significant changes to the portfolio’s duration, yield curve or sector positioning during the reporting period. That said, we sought to increase the Fund’s overall yield, by selling lower yielding securities in favor of their higher yielding counterparts.

Looking ahead, while we anticipate volatility to stay elevated until tariff policy comes into clearer focus, we believe today’s valuations are pricing in a lot of market uncertainty. We also believe that higher degrees of volatility may make it harder to know what bonds are worth. In our view, that backdrop may be ideal for our approach to investing, which revolves around using a large broker-dealer network to locate mispriced securities. In effect, we find ourselves in a bond-pickers market. Finally, we believe the increase in rates may increase the opportunity set. We recognize that the recent market environment has been difficult, but yields are now much higher than a year ago, and we anticipate more deals and secondary market opportunities to offer price concessions. In our opinion, we are moving into a period where active management could really shine.

Sincerely,

James L. Iselin and S. Blake Miller
Portfolio Co-Managers

The portfolio composition, industries and holdings of the Fund are subject to change without notice.

The opinions expressed are those of the Fund's portfolio managers. The opinions are as of the date of this report and are subject to change without notice.

The value of securities owned by the Fund, as well as the market value of shares of the Fund’s common stock, may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Fund; conditions affecting the general economy; overall market changes; local, regional, national or global political, social or economic instability; regulatory or legislative developments; price and interest rate fluctuations, including those resulting from changes in central bank policies; and changes in investor sentiment.

The performance of certain rated bonds within the Index, as noted above, represent issues that are rated Baa1/BBB+ through Baa3/BBB-, based on the average of S&P Global, Moody’s and Fitch ratings, as calculated by Bloomberg.

Municipal Fund Inc. (Unaudited)

TICKER SYMBOL
Municipal Fund Inc.	NBH

PORTFOLIO BY STATE, TERRITORY OR SECTOR
(as a % of Total Investments*)
Alabama	3.1 %
American Samoa	0.5
Arizona	0.5
California	16.1
Colorado	1.0
Connecticut	1.7
District of Columbia	0.1
Florida	5.4
Georgia	1.9
Guam	0.8
Illinois	5.8
Indiana	0.4
Kansas	0.1
Kentucky	0.3
Louisiana	2.1
Maine	0.1
Maryland	0.1
Massachusetts	0.2
Michigan	1.1
Minnesota	0.4
Mississippi	0.2
Nebraska	1.9
Nevada	0.1
New Hampshire	0.1
New Jersey	3.4
New Mexico	0.2
New York	20.1
North Carolina	1.5
Ohio	5.5
Oregon	0.3
Pennsylvania	3.1
Puerto Rico	5.0
South Carolina	1.6
Tennessee	0.6
Texas	6.6
Utah	1.7
Vermont	0.3
Virginia	0.7
Washington	0.9
West Virginia	0.8
Wisconsin	3.7
Loan Assignments	—
Total	100.0 %

*	Does not include the impact of the Fund’s open positions in derivatives, if any.

PERFORMANCE HIGHLIGHTS1
	Inception Date	Six Month Period Ended 04/30/2025	Average Annual Total Return Ended 04/30/2025
	Inception Date	Six Month Period Ended 04/30/2025	1 Year	5 Years	10 Years	Life of Fund
At NAV2
Municipal Fund Inc.	09/24/2002	-2.98%	0.64%	0.90%	1.69%	4.40%
At Market Price3
Municipal Fund Inc.	09/24/2002	-3.57%	6.37%	-0.66%	0.96%	3.74%
Index
Bloomberg 10-Year Municipal Bond Index4		-0.15%	1.10%	1.18%	2.21%	3.66%

Listed closed-end funds, unlike open-end funds, are not continually offered. Generally, there is an initial public offering and, once issued, shares of common stock of closed-end funds are sold in the secondary market on a stock exchange.

The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For current performance data, please visit www.nb.com/cef-performance.

The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a stockholder would pay on Fund distributions or on the sale of shares of the Fund's common stock.

The investment return and market price will fluctuate and shares of the Fund’s common stock may trade at prices above or below NAV. Shares of the Fund’s common stock, when sold, may be worth more or less than their original cost.

Returns would have been lower if Neuberger Berman Investment Advisers LLC ("NBIA") had not waived a portion of its investment management fees during certain of the periods shown. The waived fees are from prior years that are no longer disclosed in the Financial Highlights.

Endnotes (Unaudited)

1	A portion of the Fund’s income may be a tax preference item for purposes of the federal alternative minimum tax for certain stockholders.
2	Returns based on the NAV of the Fund.
3	Returns based on the market price of shares of the Fund’s common stock on the NYSE American.
4	The Bloomberg 10-Year Municipal Bond Index is the 10-year (8-12 years to maturity) component of the Bloomberg Municipal Bond Index. The Bloomberg Municipal Bond Index measures the investment grade, U.S. dollar-denominated, long-term, tax-exempt bond market and has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds and prerefunded bonds. Please note that the index does not take into account any fees and expenses or any tax consequences of investing in the individual securities that it tracks and that individuals cannot invest directly in any index. Data about the performance of this index are prepared or obtained by NBIA and include reinvestment of all income dividends and other distributions, if any. The Fund may invest in securities not included in the above described index and generally does not invest in all securities included in the index.

For more complete information on Neuberger Berman Municipal Fund Inc., call Neuberger Berman Investment Advisers LLC at (877) 461-1899, or visit our website at www.nb.com.

Legend April 30, 2025 (Unaudited)

Neuberger Berman Municipal Fund Inc.

Other Abbreviations:
Management or NBIA	= Neuberger Berman Investment Advisers LLC
Reference Rate Benchmarks:
SOFR	= Secured Overnight Financing Rate

Schedule of Investments Municipal Fund Inc.^ (Unaudited) April 30, 2025

Principal Amount		Value
Loan Assignments(a) 0.0%‡
Oil, Gas & Consumable Fuels 0.0%‡
	Rialto Bioenergy Facility LLC
$74,841	Term Loan DIP, (1 mo. USD Term SOFR + 10.00%), 15.33%, due 6/6/2025	$1,489 #(b)(c)(d)
641,479	Term Loan, (1 mo. USD Term SOFR + 10.00%), 15.33%, due 6/6/2025	0 #(b)(c)(d)

Total Loan Assignments (Cost $716,320)		1,489
Municipal Notes 167.0%
Alabama 5.1%
3,125,000	Energy Southeast A Cooperative District Revenue, Series 2023 A-1, 5.50%, due 11/1/2053 Putable 1/1/2031	3,347,928
9,000,000	Mobile County Industrial Development Authority Revenue (AM/NS Calvert LLC Project), Series 2024-A, 5.00%, due 6/1/2054	8,534,039
5,000,000	Southeast Energy Authority A Cooperative District Revenue, Series 2025-A, 5.00%, due 1/1/2056 Putable 6/1/2035	5,124,342

SEC Form N-CSRS filed by Neuberger Berman Municipal Fund Inc.