Welcome to our dedicated page for Allspring Utilities and High Income Fund news (Ticker: ERH), a resource for investors and traders seeking the latest updates and insights on Allspring Utilities and High Income Fund stock.
Allspring Utilities and High Income Fund (ERH) is a diversified closed-end management investment company dedicated to providing high levels of current income and moderate capital growth. Emphasizing tax-advantaged dividend income, the fund invests in a wide array of industries, including auto components, hotels, household durables, media, specialty retail, apparel, oil, gas, consumable fuels, industrials, information technology, telecommunication services, financial, and healthcare sectors. The fund's investment portfolio is comprised of direct debt instruments, which are interests in amounts owed to lenders by corporate or other borrowers.
The fund is managed by Allspring Global Investments, formerly known as Wells Fargo Asset Management. Its investment advisory services are provided by Wells Fargo Funds Management LLC. The fund employs a managed distribution plan aiming to declare monthly distributions to its 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. These distributions are sourced from income, capital gains, and sometimes paid-in capital.
ERH's investment team has recently been strengthened with the addition of Andy Smith, CFA, who will join Jack Spudich, CFA, and Kent Newcomb, CFA, in managing the fund's equity sleeve. The high yield bond sleeve continues to be managed by Michael Schueller, CFA, and Chris Lee, CFA. Smith brings a wealth of experience from his tenure at Wells Fargo Asset Management, Edward Jones, and A.G. Edwards.
The fund’s strategy includes leveraging through a revolving credit facility and potentially issuing preferred shares in the future. This leverage can amplify both gains and risks, leading to greater volatility in the net asset value and market price of ERH's common shares. The fund’s investments in the utility sector and international markets add layers of risk, including political instability, currency fluctuation, and sector-specific developments.
Allspring Global Investments is a renowned independent asset management firm with over $580 billion in assets under advisement. The firm operates with a global presence and boasts a team of more than 440 investment professionals. Allspring is driven by a commitment to thoughtful investing and purposeful planning, aiming to deliver both financial returns and positive outcomes.
The latest news highlights the fund's ongoing commitment to transparency regarding its distribution sources and performance metrics. Investors are provided with detailed notices about the sources of their monthly distributions, helping them make informed decisions.
The Allspring Income Opportunities Fund (EAD), Allspring Multi-Sector Income Fund (ERC), Allspring Utilities and High Income Fund (ERH), and Allspring Global Dividend Opportunity Fund (EOD) announced distributions on November 16, 2022. EAD will distribute $0.05357 monthly, ERC $0.07243 monthly, ERH $0.07496 monthly, and EOD $0.12017 quarterly. Each fund aims to provide a high level of current income, with EOD targeting long-term capital growth. The fixed annual distribution rates are 8% for EAD, ERC, and 7% for ERH, and 9% for EOD, based on average monthly NAV.
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