AllianceBernstein Funds Board Approves Advisory Pacts Ahead of Equitable–Corebridge Vote

TL;DR The boards of AllianceBernstein’s National Municipal Income Fund (NYSE:AFB) and Global High Income Fund (NYSE:AWF) approved new advisory agreements that mirror current terms, preparing for the Equitable–Corebridge merger.

Context The advisory agreements would be deemed an "assignment" under the Investment Company Act of 1940 if Equitable’s stake in AllianceBernstein L.P. transfers to Corebridge, automatically terminating the existing contracts. To avoid a gap, the funds’ boards approved interim agreements on identical terms while seeking shareholder consent for the new ones.

Key Facts The new and interim pacts must be voted on by shareholders, as required by the 1940 Act’s assignment rule. Historical data shows that news about the Equitable–Corebridge merger has moved the funds’ shares by an average of 0.37% in the prior session. AFB and AWF each hold net assets in the mid‑$300 million range, while peer closed‑end funds such as NBH (-0.67%), KTF (-0.11%), RFI (+0.69%), BFZ (+0.09%), and BGH (+0.21%) displayed mixed moves, indicating stock‑specific reaction rather than sector‑wide trends.

What It Means Under the 1940 Act, an assignment triggers automatic termination of the advisory contract, so the interim agreements preserve management continuity pending the vote. Shareholder approval is expected, but the outcome will depend on how investors view the merger’s impact on fees and performance. The approval process also signals that the funds are aligning governance with the impending corporate transaction.

Investors will watch for the upcoming shareholder vote schedule and any updates on the Equitable–Corebridge merger closing date.