AllianceBernstein National Municipal Income Fund, Inc. and AllianceBernstein Global High Income Fund, Inc. Announcement Regarding Planned Merger of Equitable and Corebridge

2026-04-17 · Source: The AI Journal · Field: Finance & Economics — Banking & Financial Services, Capital Markets & Investment Management, Corporate Finance & Treasury · Depth: Intermediate, quick

Summary

Equitable Holdings, Inc. (EQH) and Corebridge Financial, Inc. announced a definitive merger agreement on March 26, 2026, with an expected closing by the end of 2026. This transaction, subject to regulatory and shareholder approvals from both EQH and Corebridge, will trigger an "assignment" of investment advisory agreements under the Investment Company Act of 1940. Consequently, the existing advisory agreements between AllianceBernstein L.P., the investment adviser, and its managed closed-end funds, AllianceBernstein Global High Income Fund, Inc. (NYSE: AWF) and AllianceBernstein National Municipal Income Fund, Inc. (NYSE: AFB), will automatically terminate. New investment advisory agreements will need consideration by each Fund's Board of Directors and subsequent approval by shareholders to take effect upon the merger's completion.

Key takeaway

For legal professionals advising investment companies on mergers and acquisitions, you must anticipate the automatic termination of investment advisory agreements due to "assignment" under the 1940 Act. Your teams should proactively prepare for Board consideration and shareholder approval processes for new advisory agreements to ensure continuity of fund management post-merger, mitigating operational and compliance risks.

Key insights

Mergers involving investment advisers trigger automatic termination of advisory agreements under the 1940 Act.

Principles

• Investment advisory agreements terminate upon "assignment."
• Shareholder approval is required for new advisory agreements.

Method

Upon an "assignment" event, a fund's Board considers a new advisory agreement, which then requires shareholder approval to become effective at closing.

In practice

• Review merger clauses in advisory agreements.
• Prepare for board and shareholder votes on new agreements.

Topics

• Equitable Holdings
• Corebridge Financial
• AllianceBernstein
• Merger Agreement
• Investment Company Act of 1940

Best for: Investor, Legal Professional, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by The AI Journal.