Wells Fargo Utilities and High Income Fund Announces Distribution Sources

CHARLOTTE, North Carolina, December 1, 2021 / PRNewswire / – The Wells Fargo Utilities and High Income Fund (NYSE American: ERH) released information on distribution sources today in a notice to shareholders. The full text of the notice is available below and on the Allspring Global Investments website.


This notice provides information about the sources of the Fund’s monthly distributions. You should not draw any conclusions about the performance of the Fund’s investments from the amount of this distribution or the terms of the Managed Distribution Plan of the Fund.

The Fund considers that it has distributed more than its income and net realized capital gains; therefore, part of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money you have invested in the Fund is returned to you. A return of capital distribution does not necessarily reflect the investment performance of the Fund and should not be confused with “return” or “income”.

The amounts and sources of distributions shown in this notice are estimates only and are not provided for tax reporting purposes. Sources include net investment income (NII), short-term capital gains (ST), long-term capital gains (LT), and paid-up capital. The actual amounts and the sources of the amounts for tax reporting purposes will depend on the Fund’s investment experience during the remainder of its fiscal year and may be subject to change depending on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year which will tell you how to report these distributions for federal income tax purposes.

The following table shows an estimate of the Fund’s distribution sources, reflecting the cumulative amount of distributions since the beginning of the year. The Fund attributes these estimates equally to each regular distribution throughout the year. Therefore, the information estimated at the end of the specified month shown below is for the current distribution and also represents an updated estimate for all previous months of the year.

Data as of 11/30/2021

Estimated sources of distribution

Distribution per share


Long-term gains

ST gains

Paid in capital

ERH (EF 8/31)

Current month ($)






Current month (%)






Year to date ($)






The following table provides information about distributions and total return over various time periods. This information is intended to help you better understand whether the returns for the periods specified were sufficient to meet the distributions.

Data as of 10/31/2021



5 years

Fiscal year

Fiscal year

Fiscal year

Dist of the current exercise


Return on net asset value

Dist Rate on NAV1

Return on net asset value

Dist Rate on NAV1

ERH (EF 8/31)







1 As a percentage of 10/31 NAV

The fund makes distributions in accordance with a managed distribution plan which provides for the declaration of monthly distributions to common shareholders of the fund at a minimum annual fixed rate of 7.0%, based on the average monthly net asset value (NAV) per share of the fund. funds over the previous 12 months. Under the managed distribution plan, distributions are from income and may also be from paid-up capital and / or capital gains. The fund’s distributions over a period may be greater or less than the net return realized by the fund on its investments and therefore should not be used as a measure of performance or confused with return or income. Distributions in excess of the fund’s returns will cause the net asset value of the fund to drop. Investors should not draw any conclusions about the investment performance of the fund from the amount of its distribution or the terms of its managed distribution plan.

The quoted distribution rate is a number that uses the previous distribution of the fund to calculate an annualized number. The payout rate is calculated by annualizing the last payout and then dividing it by the end of period NAV or market price. Special distributions, including special capital gains distributions, are not included in the calculation.

The Wells Fargo Utilities and High Income Fund is a closed-end equity and high yield bond fund. The investment objective of the fund is to seek a high level of current income and moderate capital growth with an emphasis on paying tax-efficient dividend income.

The final determination of the source of all dividend distributions for the current year will be made after the end of the year. The actual amounts and the sources of the amounts for tax reporting purposes will depend on a fund’s investment experience during the remainder of the year and may be subject to change depending on tax regulations. Each fund will send shareholders a Form 1099-DIV for the calendar year which will instruct shareholders how to report these distributions for federal income tax purposes.

For more information on Allspring closed-end funds, please visit www.allspringglobal.com.

About Allspring Global Investments
Allspring Global Investments is a leading independent asset management company with $ 587 billion in assets under management,1 18 offices around the world and specialized investment teams supported by more than 480 investment professionals around the world. Allspring and its investment teams offer a wide range of differentiated investment products and solutions to help its diverse range of clients achieve their investment goals. For more information, please visit www.allspringglobal.com.

  1. From September 30, 2021. Assets under management include $ 93 billion of Galliard Capital Management, an investment advisor who is not part of Allspring / GIPS.

About the GTCR
Founded in 1980, GTCR is a leading private equity firm focused on investing in growing companies in healthcare, financial services and technology, technology, media and telecommunications and services to growth companies. The ChicagoThe Paris-based company pioneered The Leaders Strategy â„¢ – finding and partnering with management leaders in key areas to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its creation, GTCR has invested more than $ 20 billion in more than 250 companies. For more information, please visit www.gtcr.com.

About Reverence Capital Partners
Reverence Capital Partners is a private investment firm focused on thematic investing in leading global middle market financial services firms through control and influence focused investments in 5 sectors: (1) Custodians and finance companies, (2) Asset and Wealth Management, (3) Insurance, (4) Capital Markets, and (5) Technology / Financial Payments. The company was founded in 2013 by Milton Berlinski, Peter Aberg, and Alex chulack, who have over 90 years of advisory and investment experience in a wide range of financial services industries. For more information, visit www.reverencecapital.com.

These closed-end funds are no longer available in public offerings and are only offered through brokers in the secondary market. A closed-end fund is not required to redeem its shares from investors on demand. Shares of a fund may trade at a premium or at a discount to the net asset value of the fund, and there can be no assurance that a discount will decrease. The values ​​and / or income generated by securities held by a 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 higher risk of default and their values ​​tend to be lower. more volatile than higher rated securities with similar maturities. Foreign investments may contain more risk due to the inherent risks associated with changing political climate, instability in foreign markets, and fluctuations in foreign currencies. The risks of international investing are magnified in emerging or developing markets. Funds that concentrate their investments in a single industry or sector may face an increased risk of price movements compared to more diversified funds due to unfavorable developments within that industry or sector. Each fund is leveraged through a revolving credit facility and may also be leveraged by issuing preferred shares in the future. The fund is also subject to the risks associated with any concentration of its investments in the utilities sector.

The use of leverage involves certain risks, including, but not limited to, the likelihood of greater volatility in the net asset value and price of common shares. Derivatives carry additional risks, including interest rate risk, credit risk, incorrect valuation risk and the risk of non-correlation with the relevant instruments that they are designed to hedge or closely monitor.

Allspring Global Investments â„¢ is the trade name for the asset management companies of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, LP. These companies include, without limitation, Allspring Global Investments, LLC and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker and FINRA / SIPC member). Galliard Capital Management, LLC (an investment advisor not part of the Allspring / GIPS trade name) is associated with Allspring.

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 investment, strategy or strategy. specific plan.

Some of the information contained in this document may include forward-looking statements about the expected investment activities of the funds. These statements do not provide any assurance as to the investment activities or the actual results of the funds. Readers should make their own assessment of the information contained in this document and take into consideration any other factors they deem relevant to their personal circumstances.

© 2021 Allspring Global Investments Holdings, LLC. All rights reserved.


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