Allspring Utilities and High Income Fund is a special kind of investment that pays its shareholders monthly. This notice is to tell you that this Fund is paying out more than it's making. So, some of the money you get might be from the money you invested in the first place. This notice is not to tell you how well the Fund is doing, or whether you should sell or buy more shares. The actual amount of money you get will depend on how well the Fund does for the rest of the year, and that might change. The exact way the Fund pays its dividends is complicated, but this is a summary of how it does it. Read from source...
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- The article discusses the distribution sources and performance of Allspring Utilities and High Income Fund (ERH) CUSIP 94987E109.
- The estimated sources of distribution for the current month include net investment income, short-term capital gains, long-term capital gains, and paid-in capital.
- The actual amounts and sources of the amounts for tax-reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to change based on tax regulations.
- The Allspring Utilities and High Income Fund is a closed-end equity and high-yield bond fund, with the aim of providing a high level of current income and moderate capital growth with an emphasis on providing tax-advantaged dividend income.
- The final determination of the source of all dividend distributions in the current year will be made after year-end.
- The article provides an overview of the risks associated with the fund's investment strategies, including exposure to the utility sector and the use of leverage through a revolving credit facility or issuance of preferred shares in the future.
- It also emphasizes that the article is not intended to provide investment advice or a recommendation of any kind, and that readers should make their own assessment of the information contained within.
- The article reminds investors that the fund's shares may trade at either a premium or discount relative to the fund's net asset value, and that there can be no assurance that any discount will decrease.
Allspring Utilities and High Income Fund (ERH) is a closed-end equity and high-yield bond fund. The fund's investment objective is to seek a high level of current income and moderate capital growth with an emphasis on providing tax-advantaged dividend income. The fund's distribution strategy involves making distributions in accordance with a managed distribution plan that provides for the declaration of monthly distributions to common shareholders at an annual minimum fixed rate of 7.0%, based on the fund's average monthly net asset value (NAV) per share over the prior 12 months. The actual amounts and sources of the distributions for tax-reporting purposes will depend upon the fund's investment experience during the year and may be subject to changes based on tax regulations.
During the period ending August 31, 2024, the fund estimated that it had distributed more than its income and net realized capital gains, which indicates that a portion of the distribution may be a return of capital. A return of capital may occur when some or all of the money that an investor has invested in the fund is paid back to them. This should not be confused with yield or income.
The following table provides an estimate of the fund's distribution sources for the period ending August 31, 2024. The fund attributes these estimates equally to each regular distribution throughout the year. The estimated information as of August 31, 2024, is for the current distribution and also represents an updated estimate for all prior months in the year.
| | | |Fiscal Year to Date| |
|:--|:--|:--|:--|:--|:--|
| |Per Share Distribution| | |
| |NII|LT GAINS|ST GAINS|PAID IN CAPITAL|
|ERH (FYE 8/31)|Current Month ($)|Current Month (%)|Fiscal Year to Date ($)|Fiscal Year to Date (%)|
The following table provides information regarding distributions and total return performance over various time periods as of July 31, 2024. This information is intended to help investors better understand whether returns for the specified time periods were sufficient to meet distributions.
| | | | | |
|:--|:--|:--|:--|:--|:--|
| |ANNUALIZED|CUMULATIVE|5-YEAR|FISCAL YTD|FISCAL YTD|FISCAL YTD|FISCAL YTD DIST|NAV|RETURN ON NAV|DIST RATE ON NAV1|RETURN ON NAV|DIST RATE ON NAV1|
|ERH (FY