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Allspring Util & High Income - ERH STOCK NEWS

Welcome to our dedicated page for Allspring Util & High Income news (Ticker: ERH), a resource for investors and traders seeking the latest updates and insights on Allspring Util & High Income stock.

Overview

Allspring Util & High Income Fund (symbol: ERH) is a diversified closed-end management investment company that focuses on producing a high level of current income with moderate capital growth. As a specialized closed-end fund, it deploys a dual-sleeve investment strategy, placing the majority of its assets in a portfolio of utility-related equity securities—including common, preferred, and convertible preferred stock—and allocating the remaining assets to U.S. dollar denominated, below-investment grade high yield debt. This strategic balance is aimed at providing tax-advantaged dividend income while managing the risks that come with market volatility and sector concentration.

Investment Strategy and Business Model

The fund is designed to offer investors regular distributions, following a managed distribution plan that draws from net investment income, paid-in capital, and capital gains. By adopting this approach, the fund targets a stable income stream and aims to provide both income and modest capital appreciation. It achieves this by leveraging core investments in utility companies, an industry known for its resilient cash flows and defensive characteristics, alongside the controlled risk exposure in the high yield debt market, which provides additional income opportunities. The fund's operational approach is built around maintaining a balance between income generation and capital preservation, reflecting a disciplined investment strategy that centers on critical industry fundamentals.

Market Position and Significance

In the landscape of closed-end funds, Allspring Util & High Income Fund occupies a unique niche by focusing on both equity investments in the utilities sector and high-yield debt instruments. This dual investment focus differentiates the fund from peers who might concentrate solely on one asset class. The fund is available exclusively through broker-dealers on the secondary market and does not support share repurchase requests, which positions it uniquely in terms of liquidity and market pricing dynamics. Investors might find the inherent trade-offs between stable income distributions and potential market price volatility reflective of the fund's commitment to balancing risk and reward.

Key Business Areas and Operations

  • Dividend Income Generation: The fund’s primary objective is the creation of consistent, tax-advantaged dividend income, leveraging both interest income from high-yield debt and yield from utility equity securities.
  • Capital Growth: While income generation is paramount, the fund also seeks moderate capital appreciation, thus appealing to investors who value incremental asset appreciation alongside income.
  • Risk Management: Investors are educated on the intricacies of potential risks associated with liquidity issues, market volatility, and sector-specific concentrations, particularly within the utilities industry.
  • Managed Distribution Plan: The carefully constructed distribution plan ensures regular payments that may incorporate returns of capital, reflecting the operational reality that distributions can exceed net investment income without directly indicating superior performance.

Industry Context and Operational Nuances

The fund operates in the broader context of investment management with a notable focus on closed-end funds. Its investment decisions are influenced by market conditions, regulatory frameworks, and sector-specific dynamics that affect utility companies and high-yield issuers. The clear demarcation between income sources and the potential for distributions sourced from both earnings and capital returns is a critical nuance, ensuring that investors are well-informed about the implications of their income streams on net asset values. The operational model underscores expertise in handling the complexities of asset allocation, market fluctuations, and leveraged investment strategies.

Competitive Landscape

Within the competitive landscape, the fund's strategy of blending utility equity investments with high-yield debt instruments distinguishes it from other closed-end funds that might focus exclusively on either income generation or capital growth. It competes with similar investment vehicles by emphasizing tax-advantaged income and managed risk rather than short-term performance metrics. This approach is particularly relevant for investors seeking a long-term, income-oriented strategy in an environment characterized by market uncertainties.

Risk Factors and Investor Considerations

Investing in Allspring Util & High Income Fund entails understanding certain inherent risks. These include market risk, credit risk, and interest rate risk associated with high yield debt, as well as potential volatility in the utility sector due to regulatory changes or economic cycles. Furthermore, the use of leverage through revolving credit facilities may introduce additional volatility in the fund's net asset value and market price. The fund offers a transparent view of its risk management policies, helping investors make informed decisions based on a thorough understanding of the potential limitations and benefits of its investment strategy.

Conclusion

Overall, Allspring Util & High Income Fund embodies a sophisticated investment model designed to serve investors seeking a balance between regular income and capital appreciation. Its dual-focus investment approach, meticulous risk management, and structured distribution plan underscore a commitment to delivering both stability and opportunity within a diversified portfolio. Whether viewed as a vehicle for steady dividend income or as an instrument for moderate capital growth, the fund provides a comprehensive investment avenue that aligns with the risk-reward objectives of a discerning investor base.

Rhea-AI Summary

Allspring Utilities and High Income Fund (ERH) has released its monthly distribution notice for March 2025. The fund distributed $0.07724 per share, with 75% from net investment income and 25% from paid-in capital. For the fiscal year-to-date, total distributions were $0.49113 per share, comprising 46.30% from net investment income and 53.70% from paid-in capital.

The fund operates under a managed distribution plan targeting an annual minimum fixed rate of 7.0% based on average monthly NAV. As of February 28, 2025, ERH reported a NAV of $12.40 with a 5-year annualized return of 7.72% and a fiscal year-to-date return of 6.82%. The fund's investment objective focuses on high current income and moderate capital growth, emphasizing tax-advantaged dividend income.

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Allspring Global Investments has announced monthly distributions for three closed-end funds. The Allspring Income Opportunities Fund (EAD), Multi-Sector Income Fund (ERC), and Utilities and High Income Fund (ERH) will distribute payments on May 1, 2025, with an ex-dividend date of April 11, 2025.

The funds operate under a managed distribution plan with annual minimum fixed rates: 8.75% for EAD and ERC, and 8.00% for ERH, based on 12-month average NAV. Distributions may come from income, paid-in capital, and/or capital gains, and should not be used as a performance indicator.

Each fund has specific objectives: EAD focuses on high-yield bonds for current income, ERC seeks income while limiting domestic interest rate risk, and ERH targets current income and moderate capital growth with tax-advantaged dividend income through equity and high-yield bonds.

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Allspring Global Investments has announced monthly distributions for three of its closed-end funds. The Allspring Income Opportunities Fund (EAD) will distribute $0.05340 per share (+$0.00009), the Multi-Sector Income Fund (ERC) will distribute $0.07284 per share (-$0.00009), and the Utilities and High Income Fund (ERH) will distribute $0.07626 per share (+$0.00089).

The distributions are part of a managed distribution plan providing annual minimum fixed rates of 8.75% for EAD and ERC, and 8.00% for ERH, based on 12-month average NAV. Key dates include: ex-dividend and record date on February 13, 2025, with payment on March 3, 2025.

These closed-end funds are only available through secondary market broker-dealers. Distributions may come from income, paid-in capital, and/or capital gains, and shouldn't be used as a performance measure. The funds utilize leverage through revolving credit facilities and may face risks associated with equity securities, debt securities, and foreign investments.

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Allspring has declared monthly distributions for three closed-end funds: Income Opportunities Fund (EAD), Multi-Sector Income Fund (ERC), and Utilities and High Income Fund (ERH). The distributions per share are $0.05331, $0.07293, and $0.07537 respectively, with slight increases from prior distributions.

The distributions are made under a managed distribution plan with annual minimum fixed rates of 8.75% for EAD and ERC, and 8.00% for ERH, based on 12-month average NAV. The declaration date is December 27, 2024, with an ex-dividend and record date of January 13, 2025, and payable date of February 3, 2025.

These funds are now only available through broker-dealers on the secondary market and focus on different investment objectives including high-yield bonds, income generation, and tax-advantaged dividend income.

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Allspring Utilities and High Income Fund (ERH) has released its monthly distribution notice, indicating that a portion of the distribution may be a return of capital. The Fund's current month distribution of $0.06347 per share comprises 93% from net investment income and 7% from paid-in capital. Fiscal year-to-date distributions total $0.18812, with 47.50% from net investment income and 52.50% from paid-in capital. The Fund maintains a managed distribution plan with an annual minimum fixed rate of 7.0% based on average monthly NAV. As of October 31, 2024, the Fund showed a 5-year NAV return of 12.51% and a fiscal YTD return of 5.96%.

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Allspring has declared monthly distributions for three closed-end funds. The Income Opportunities Fund (EAD) will distribute $0.05270 per share, the Multi-Sector Income Fund (ERC) $0.06620, and the Utilities and High Income Fund (ERH) $0.06347. All distributions show slight increases from prior amounts.

The distributions are part of a managed distribution plan providing annual minimum fixed rates of 8.75% for EAD, 8.00% for ERC, and 7.00% for ERH, based on 12-month average NAV. The declaration date is October 25, 2024, with payment scheduled for December 2, 2024.

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Allspring Global Investments has announced monthly distributions for three of its closed-end funds: Allspring Income Opportunities Fund (EAD), Allspring Multi-Sector Income Fund (ERC), and Allspring Utilities and High Income Fund (ERH). The distributions per share are $0.05247, $0.06599, and $0.06258 respectively, with slight increases from prior distributions.

These funds operate under managed distribution plans, targeting annual minimum fixed rates of 8.75% for EAD, 8.00% for ERC, and 7.00% for ERH, based on average monthly NAV. Distributions may come from income, paid-in capital, or capital gains. The ex-dividend date is October 15, 2024, with payments scheduled for November 1, 2024.

Each fund has specific investment objectives, ranging from high current income to moderate capital growth. Investors are reminded that distribution amounts should not be used to measure performance and that shares may trade at premiums or discounts to NAV in the secondary market.

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Allspring Global Investments has announced monthly distributions for three closed-end funds: Allspring Income Opportunities Fund (EAD), Allspring Multi-Sector Income Fund (ERC), and Allspring Utilities and High Income Fund (ERH). The distributions per share are $0.05221, $0.06589, and $0.06204 respectively, with slight increases from prior distributions.

Key dates include:

  • Declaration date: July 26, 2024
  • Ex-dividend date: August 12, 2024
  • Record date: August 12, 2024
  • Payable date: September 3, 2024

These funds operate under managed distribution plans, providing monthly distributions at fixed annual rates based on average monthly NAV. Distributions may come from income, paid-in capital, or capital gains. Investors are cautioned that distribution amounts should not be used to measure fund performance.

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On June 28, 2024, Allspring announced distributions for three of its closed-end funds. The Allspring Income Opportunities Fund (EAD) declared a monthly distribution of $0.05210 per share, up by $0.00013. The Allspring Multi-Sector Income Fund (ERC) announced $0.06586 per share, an increase of $0.00014, while the Allspring Utilities and High Income Fund (ERH) declared $0.06200 per share, up by $0.00003.

Important dates include the declaration date of June 28, 2024, the ex-dividend and record date of July 11, 2024, and the payable date of August 1, 2024. These funds follow a managed distribution plan with annual minimum fixed rates based on their NAVs: 7.00% for ERH, 8.75% for EAD, and 8.00% for ERC.

The sources of distributions can include income, paid-in capital, and/or capital gains, but should not be conflated with performance metrics. The Allspring Income Opportunities Fund focuses on high current income and potential capital appreciation. The Allspring Multi-Sector Income Fund aims for high income with interest rate risk, while the Allspring Utilities and High Income Fund targets high income and moderate capital growth with tax-advantaged dividends.

More information is available at Allspring's website.

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Allspring Income Opportunities Fund (NYSE American: EAD), the Allspring Multi-Sector Income Fund (NYSE American: ERC), and the Allspring Utilities and High Income Fund (NYSE American: ERH) have announced monthly distributions. EAD increased by $0.00018 to $0.05192, ERC increased by $0.00024 to $0.06566, and ERH decreased by $0.00032 to $0.06246. The declaration date is April 26, 2024, with an ex-dividend date of May 10, 2024, a record date of May 13, 2024, and a payable date of June 3, 2024. The managed distribution plan ensures monthly distributions at fixed rates based on the fund's NAV, sourced from income, paid-in capital, and/or capital gains.

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FAQ

What is the current stock price of Allspring Util & High Income (ERH)?

The current stock price of Allspring Util & High Income (ERH) is $11.05 as of April 3, 2025.

What is the market cap of Allspring Util & High Income (ERH)?

The market cap of Allspring Util & High Income (ERH) is approximately 100.0M.

What is the primary investment objective of Allspring Util & High Income Fund?

The fund seeks a high level of current income along with moderate capital growth by investing primarily in utility-related equities and high-yield debt instruments. It emphasizes tax-advantaged dividend income through a managed distribution plan.

How does the fund generate its income?

Income is generated from a diversified portfolio that includes common, preferred, and convertible preferred stocks of utility companies, as well as U.S. dollar denominated below investment grade high yield debt. The managed distribution plan may source distributions from net investment income, paid-in capital, and capital gains.

What differentiates Allspring Util & High Income Fund from other closed-end funds?

Its unique dual-sleeve strategy, combining investments in utility equities with high-yield debt, provides a blend of steady income and moderate capital growth. This approach, along with a managed distribution plan, sets it apart from funds that focus solely on one asset class.

How are distributions handled by the fund?

Distributions are made on a monthly basis under a managed distribution plan, drawing from income, paid-in capital, and capital appreciation. It is important to note that distributions may sometimes exceed net investment income, which could result in a return of capital.

What are the key risks associated with the fund?

Investors face risks such as market volatility, interest rate fluctuations, credit risk from high yield debt, and the concentration risks related to utility sector investments. Additionally, the use of leverage may lead to increased volatility in net asset value and market price.

Is Allspring Util & High Income Fund available through initial public offerings?

No, the fund is offered exclusively on the secondary market through broker-dealers. Investors should be aware that it does not repurchase shares on request.

How does the fund approach risk management?

Risk management is achieved through a balanced asset allocation between utility equities and high-yield debt, along with strict adherence to a managed distribution plan. The fund also openly addresses risks associated with market conditions and leverage.

How can investors learn more about the fund's performance and distribution policy?

Investors can gain insights into the operational mechanics and distribution methodology of the fund through detailed documentation and educational materials provided by the investment company. The focus is on transparent communication rather than short-term performance metrics.
Allspring Util & High Income

NYSE:ERH

ERH Rankings

ERH Stock Data

99.96M
9.29M
0.05%
17.82%
0.04%
Asset Management
Financial Services
United States
Charlotte