Allspring Utilities and High Income Fund (ERH) CUSIP 94987E109 IMPORTANT NOTICE TO SHAREHOLDERS
Allspring Utilities and High Income Fund (ERH) has issued an important notice regarding its monthly distributions under its Managed Distribution Plan. The fund distributed $0.08062 per share for the current month, with fiscal year-to-date distributions totaling $0.80966.
The fund operates under a managed distribution plan with an annual minimum fixed rate of 7.0% based on the fund's average monthly NAV. For the fiscal year-to-date, 41.90% of distributions came from net investment income, while 58.10% came from paid-in capital. The fund's 5-year annualized return on NAV stands at 10.27%.
Allspring Utilities and High Income Fund (ERH) ha emesso un avviso importante riguardante le sue distribuzioni mensili nell'ambito del suo Piano di Distribuzione Gestita. Il fondo ha distribuito 0,08062 $ per azione nel mese corrente, con distribuzioni totali da inizio esercizio fiscale pari a 0,80966 $.
Il fondo opera secondo un piano di distribuzione gestita con un tasso minimo fisso annuo del 7,0% basato sul valore patrimoniale netto medio mensile del fondo. Per l'anno fiscale in corso, il 41,90% delle distribuzioni proviene dal reddito netto da investimenti, mentre il 58,10% deriva dal capitale versato. Il rendimento annualizzato su 5 anni del valore patrimoniale netto del fondo è pari a 10,27%.
Allspring Utilities and High Income Fund (ERH) ha emitido un aviso importante sobre sus distribuciones mensuales bajo su Plan de Distribución Gestionada. El fondo distribuyó $0.08062 por acción en el mes actual, con distribuciones acumuladas en el año fiscal que suman $0.80966.
El fondo opera bajo un plan de distribución gestionada con una tasa fija mínima anual del 7.0% basada en el valor neto de activos promedio mensual del fondo. Para el año fiscal hasta la fecha, el 41.90% de las distribuciones provino de ingresos netos por inversiones, mientras que el 58.10% provino del capital aportado. El rendimiento anualizado a 5 años sobre el valor neto de activos del fondo es del 10.27%.
Allspring Utilities and High Income Fund (ERH)는 관리 배당 계획에 따른 월별 배당과 관련하여 중요한 공지를 발표했습니다. 해당 펀드는 이번 달에 주당 0.08062달러를 배당했으며, 회계연도 누적 배당금은 총 0.80966달러입니다.
이 펀드는 펀드의 월평균 순자산가치를 기준으로 하는 연간 최소 고정 배당률 7.0%의 관리 배당 계획 하에 운영됩니다. 회계연도 누적 기준으로, 배당금의 41.90%는 순투자수익에서, 58.10%는 납입자본에서 나왔습니다. 펀드의 5년 연평균 순자산수익률은 10.27%입니다.
Allspring Utilities and High Income Fund (ERH) a publié un avis important concernant ses distributions mensuelles dans le cadre de son Plan de Distribution Gérée. Le fonds a distribué 0,08062 $ par action pour le mois en cours, avec des distributions cumulées depuis le début de l'exercice fiscal s'élevant à 0,80966 $.
Le fonds fonctionne selon un plan de distribution gérée avec un taux fixe annuel minimum de 7,0% basé sur la valeur liquidative moyenne mensuelle du fonds. Pour l'exercice en cours, 41,90% des distributions proviennent du revenu net d'investissement, tandis que 58,10% proviennent du capital versé. Le rendement annualisé sur 5 ans de la valeur liquidative du fonds est de 10,27%.
Allspring Utilities and High Income Fund (ERH) hat eine wichtige Mitteilung bezüglich seiner monatlichen Ausschüttungen im Rahmen seines Managed Distribution Plans veröffentlicht. Der Fonds hat für den aktuellen Monat 0,08062 $ pro Aktie ausgeschüttet, mit kumulierten Ausschüttungen im laufenden Geschäftsjahr von insgesamt 0,80966 $.
Der Fonds arbeitet nach einem Managed Distribution Plan mit einem jährlichen Mindestfestzins von 7,0% basierend auf dem durchschnittlichen monatlichen Nettoinventarwert (NAV) des Fonds. Im laufenden Geschäftsjahr stammen 41,90% der Ausschüttungen aus dem Nettoanlageertrag, während 58,10% aus eingezahltem Kapital stammen. Die 5-Jahres annualisierte Rendite auf den NAV des Fonds beträgt 10,27%.
- None.
- 58.10% of fiscal year-to-date distributions came from paid-in capital, potentially returning investors' own capital
- Fund distributions may exceed actual fund returns, causing NAV decline
- Fund uses leverage which may increase volatility and risks
Insights
ERH distributions rely heavily on return of capital (58.10%) rather than earnings, potentially eroding investor principal long-term.
The latest distribution notice from Allspring Utilities and High Income Fund (ERH) reveals a concerning distribution composition that investors should carefully evaluate. The fund's most recent
This heavy reliance on return of capital for distributions is significant because it means the fund is essentially returning investors' own money rather than distributing investment gains. While the fund maintains its managed distribution plan targeting an annual rate of
The fund's
For income-focused investors, this distribution structure raises questions about capital preservation. When distributions consistently exceed actual earnings, NAV erosion becomes a real risk over time. The fund's use of leverage through a revolving credit facility further amplifies both potential returns and risks. The high concentration in utilities adds another layer of sector-specific risk that could impact distribution sustainability if the sector underperforms.
The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with 'yield' or 'income'.
The amounts and sources of distributions reported in this Notice are only estimates and are not being provided for tax reporting purposes. Sources include net investment income (NII), short-term capital gains (ST), long-term capital gains (LT) 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 changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
DATA AS OF 7/31/2025 | ESTIMATED SOURCES OF DISTRIBUTION | |||||
PER SHARE DISTRIBUTION | NII | LT GAINS | ST GAINS | PAID IN CAPITAL | ||
ERH (FYE 8/31) | Current Month ($) | 0.08062 | 0.00000 | 0.00000 | 0.00000 | 0.08062 |
Current Month (%) | 100.00 % | 0.00 % | 0.00 % | 0.00 % | 100.00 % | |
Fiscal Year to Date ($) | 0.80966 | 0.33915 | 0.00000 | 0.00000 | 0.47051 | |
Fiscal Year to Date (%) | 100.00 % | 41.90 % | 0.00 % | 0.00 % | 58.10 % | |
The following table provides an estimate of the Fund's distribution sources, reflecting the fiscal year-to- date cumulative amount of distributions. The Fund attributes these estimates equally to each regular distribution throughout the year. Consequently, the estimated information as of the specified month-end shown below is for the current distribution, and also represents an updated estimate for all prior months in the year.
The following table provides information regarding distributions and total return performance over various time periods. This information is intended to help you better understand whether returns for the specified time periods were sufficient to meet distributions.
DATA AS OF 6/30/2025 | 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 (FYE 8/31) | 0.72904 | 12.68 | 10.27 % | 6.93 % | 12.33 % | 5.75 % |
1 As a percentage of 6/30 NAV | ||||||
Additional Disclosures about the Allspring Closed-End Funds
The fund makes distributions in accordance with a managed distribution plan that provides for the declaration of monthly distributions to common shareholders of the fund at an annual minimum fixed rate of
The quoted distribution rate is a figure that uses the fund's previous distribution to calculate an annualized figure. The distribution rate is calculated by annualizing the last distribution and then dividing by the period-ending NAV or market price. Special distributions, including special capital gains distributions, are not included in the calculation.
The Allspring Utilities and High Income Fund 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 final determination of the source of all dividend distributions in the current year will be made after year-end. The actual amounts and sources of the amounts for tax-reporting purposes will depend upon a fund's investment experience during the remainder of the fiscal year and may be subject to change based on tax regulations. Each fund will send shareholders a Form 1099-DIV for the calendar year that will tell shareholders how to report these distributions for federal income tax purposes.
For more information on Allspring's closed-end funds, please visit our website.
This closed-end fund is no longer available as an initial public offering and is only offered through broker-dealers on the secondary market. A closed-end fund is not required to buy its shares back from investors upon request. Shares of the fund may trade at either a premium or discount relative to the fund's net asset value, and there can be no assurance that any discount will decrease. The values of, and/or the income generated by, securities held by the fund may decline due to general market conditions or other factors, including those directly involving the issuers of such securities. Equity securities fluctuate in value in response to factors specific to the issuer of the security. Debt securities are subject to credit risk and interest rate risk, and high yield securities and unrated securities of similar credit quality have a much greater risk of default and their values tend to be more volatile than higher-rated securities with similar maturities. The fund is also subject to risks associated with any concentration of its investments in the utility sector. Funds that concentrate their investments in a single industry or sector may face increased risk of price fluctuation due to adverse developments within that industry or sector. The fund is leveraged through a revolving credit facility and also may incur leverage by issuing preferred shares in the future. The use of leverage results in certain risks, including, among others, the likelihood of greater volatility of net asset value and the market price of common shares. Foreign investments may contain more risk due to the inherent risks associated with changing political climates, foreign market instability, and foreign currency fluctuations. Derivatives involve additional risks, including interest rate risk, credit risk, the risk of improper valuation, and the risk of noncorrelation to the relevant instruments they are designed to hedge or closely track.
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.
Some of the information contained herein may include forward-looking statements about the expected investment activities of the funds. These statements provide no assurance as to the funds' actual investment activities or results. Readers must make their own assessment of the information contained herein and consider such other factors as they may deem relevant to their individual circumstances.
Allspring Global Investments™ is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
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© 2025 Allspring Global Investments Holdings, LLC. All rights reserved.
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SOURCE Allspring Global Investments
FAQ
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