ITEM 1. REPORT TO STOCKHOLDERS
================================
Semi-Annual Report
February 28, 2023
Allspring
Utilities and High Income Fund (ERH)
Managed Distribution Plan
Pursuant to an exemptive order issued by the
Securities and Exchange Commission (“Order”), the Fund is authorized to distribute long-term capital gains to shareholders more frequently than once per year. Pursuant to the Order, the Fund’s Board of Trustees approved a Managed
Distribution Plan (“MDP”) for the Fund pursuant to which the Fund makes monthly cash distributions to common shareholders, stated in terms of a fixed amount per common share.
The Fund’s Board has adopted a managed
distribution plan for the Fund at an annual minimum fixed rate of 7% based on the Fund’s average monthly NAV per share over the prior 12 months. The Fund makes distributions monthly. You should not draw any conclusions about the Fund’s
investment performance from the amount of these distributions or from the terms of the MDP. The MDP will be subject to regular periodic review by the Board and the Board may amend or terminate the MDP at any time without prior notice to Fund
shareholders. However, at this time there are no reasonably foreseeable circumstances that might cause the termination of the MDP.
The Fund may distribute more than its income
and net realized capital gains and, 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’.
With each distribution, the Fund will issue
a notice to shareholders and a press release containing information about the amount and sources of the distribution and other related information. The amounts and sources of distributions reported in the notice and press release are only estimates
and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during 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.
The views expressed and any forward-looking statements are as
of February 28, 2023, unless otherwise noted, and are those of the Fund's portfolio managers and/or Allspring Global Investments. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future
events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Allspring Global Investments disclaims any
obligation to publicly update or revise any views expressed or forward-looking statements.
Allspring Utilities and High Income
Fund | 1
Letter to shareholders
(unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi
annual report for the Allspring Utilities and High Income Fund for the six-month period that ended February 28, 2023. Globally, stocks and bonds experienced heightened volatility through the challenging period. Earlier tailwinds provided by
global stimulus programs, vaccination rollouts, and recovering consumer and corporate sentiment were wiped away by the highest rate of inflation in four decades as well as the impact of ongoing aggressive central bank rate hikes and the prospect of
more rate hikes. Compounding these concerns were the global reverberations of the Russia-Ukraine war and the impact of China’s strict COVID-19 lockdowns.
For the six-month period, stocks and bonds
had mixed results, with non-U.S. developed market equities outperforming U.S. stocks but emerging market stocks trailing overall. Bonds––both U.S. and non-U.S.––began to recover from sustained aggressive interest rate
increases. After suffering deep and broad losses over the past year, recent fixed income performance benefited from a base of higher yields that can now generate higher income. For the period, U.S. stocks, based on the S&P 500 Index,1 returned 1.26%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned
7.30%, while the MSCI EM Index (Net) (USD)3 lost 2.29%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -2.13%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned -0.11%, the Bloomberg
Municipal Bond Index6 gained 0.66%, and the ICE BofA U.S. High Yield Index7 returned 2.41%.
The Russia-Ukraine war, high inflation,
and central bank rate hikes rocked markets.
A challenging calendar year for investors
continued in September as all asset classes suffered major losses. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar weighed on results for investors holding non-U.S.-dollar
assets. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government bonds and the British pound in September as
investors panicked in response to a new government budget that was seen as financially unsound. The Bank of England (BoE) then stepped in and bought long-dated government bonds.
“
A challenging calendar year for investors continued in September as all asset classes suffered major
losses.”
1 |
The S&P 500 Index
consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index.
|
2 |
The Morgan Stanley Capital
International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S.
Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices
or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
3 |
The MSCI Emerging Markets
(EM) Index (Net) (USD) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
4 |
The Bloomberg U.S. Aggregate
Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and
hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
5 |
The Bloomberg Global
Aggregate ex-USD Index (unhedged) is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S. dollar-denominated debt market. You cannot invest directly in an index.
|
6 |
The Bloomberg Municipal Bond
Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index. |
7 |
The ICE BofA U.S. High Yield
Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2023. ICE Data
Indices, LLC. All rights reserved. |
2 | Allspring Utilities and High Income
Fund
Letter to shareholders
(unaudited)
Equities had a reprieve in October. Value stocks and small caps
fared best. Globally, developed markets outpaced emerging market equities, which were hurt by weakness among Chinese stocks. Central banks continued to try to curtail high inflation with aggressive interest rate hikes. Geopolitical risks persisted,
including the ongoing Russia-Ukraine war and economic, financial market, and political turmoil in the U.K. Concerns over Europe’s energy crisis eased thanks to unseasonably warm weather and plentiful gas on hand. The U.S. labor market
continued its resilience against rising prices as unemployment remained near a record low.
Stocks and bonds rallied in November. Economic news was
encouraging, driven by U.S. labor market strength. Although central banks kept raising rates, hopes rose for an easing in the pace of rate hikes and a possible end to central bank monetary tightening in 2023. Although inflation remained at record
highs in the eurozone, we began to see signs of a possible decline in inflationary pressures as U.S. inflation moderated, with a 7.1% annual price rise in November and a monthly price increase of just 0.1%. China’s economic data remained weak,
reflecting its zero-COVID-19 policy.
Financial markets
cooled in December, with U.S. equities posting negative overall results in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever, with flat overall monthly returns as markets weighed the hopes for an end to
the monetary tightening cycle with the reality that central banks had not completed their jobs yet. U.S. Consumer Price Index (CPI)1 data showed a strong consistent trend
downward, which brought down the 12-month CPI to 6.5% in December from 9.1% in June. Other countries and regions reported still-high but declining inflation rates as the year wound down.
The year 2023 began with a rally across global equities and
fixed income securities. Investor optimism rose in response to data indicating declining inflation rates and the reopening of China’s economy with the abrupt end to its zero-COVID-19 policy. The U.S. reported surprisingly strong job
gains––employers added more than 500,000 jobs––and unemployment fell to 3.4%, the lowest level since 1969. Meanwhile, wage growth, seen as a potential contributor to ongoing high inflation, continued to moderate. All eyes
remained fixed on the Federal Reserve (Fed) and on how many more rate hikes remain in this tightening cycle. The 0.25% federal funds rate hike announced in January was the Fed’s smallest rate increase since March 2022.
Financial markets declined in February as investors responded
unfavorably to resilient economic data. The takeaway: Central banks will likely continue their monetary tightening cycle for longer than markets had priced in. In this environment—where strong economic data is seen as bad news—the
resilient U.S. labor market was seen as a negative while the inflation rate has not been falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the BoE and the European Central Bank both raised rates
by 0.50%. At this stage in the economic cycle, the overriding question remained: “What will central banks do?” In February, the answer appeared to be: “Move rates higher for longer.”
1 |
The Consumer Price Index
(CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index. |
Allspring Utilities and High Income
Fund | 3
Letter to shareholders
(unaudited)
Don’t let short-term uncertainty
derail long-term investment goals.
Periods of investment uncertainty can
present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an
effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with
Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring
Funds
Notice to Shareholders
On November 16, 2022, the Fund announced a
renewal of its open-market share repurchase program (the “Buyback Program”). Under the renewed Buyback Program, the Fund may repurchase up to 5% of its outstanding shares in open market transactions during the period beginning on January
1, 2023 and ending on December 31, 2023. The Fund’s Board of Trustees has delegated to Allspring Funds Management, LLC, the Fund’s adviser, discretion to administer the Buyback Program, including the determination of the amount and
timing of repurchases in accordance with the best interests of the Fund and subject to applicable legal limitations.
For further information about your fund,
contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
4 | Allspring Utilities and High Income
Fund
This page is intentionally left blank.
Performance highlights
(unaudited)
Investment
objective |
The Fund seeks a high level
of current of current income and moderate capital growth, with an emphasis on providing tax-advantaged dividend income. |
Strategy
summary |
The Fund allocates its assets
between two separate investment strategies, or sleeves. Under normal market conditions, the Fund will allocate approximately 70% of its total assets to a sleeve that places a focus on common, preferred and convertible preferred stocks of utility
companies and approximately 30% of its total assets to a sleeve of U.S. dollar denominated below investment grade (high yield) debt. |
Adviser
|
Allspring Funds Management,
LLC |
Subadviser
|
Allspring Global Investments,
LLC |
Portfolio
managers |
Chris Lee,
CFA®‡, Kent Newcomb, CFA®‡, Michael J. Schueller, CFA®‡, Jack Spudich, CFA®‡ |
Average
annual total returns (%) as of February 28, 20231 |
|
6
months |
1
year |
5
year |
10
year |
Based
on market value |
-11.03
|
-13.04
|
4.37
|
6.36
|
Based
on net asset value (NAV) |
-10.10
|
-5.92
|
5.17
|
6.62
|
ERH
Blended Index2 |
-7.16
|
-2.29
|
7.52
|
7.98
|
ICE
BofA U.S. High Yield Constrained Index3 |
2.42
|
-5.45
|
2.69
|
4.02
|
S&P
500 Utilities Index4 |
-11.17
|
-1.34
|
9.35
|
9.42
|
Figures quoted represent past
performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. Investment return and principal value of an investment will fluctuate so that an
investor’s shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Performance figures
of the Fund do not reflect brokerage commissions that a shareholder would pay on the purchase and sale of shares. If taxes and such brokerage commissions had been reflected, performance would have been lower. To obtain performance information
current to the most recent month-end, please call 1-800-222-8222.
The Fund’s annualized expense ratio for the six months
ended February 28, 2023, was 2.19% which includes 1.21% of interest expense.
1 |
Total
returns based on market value are calculated assuming a purchase of common stock on the first day and a sale on the last day of the period reported. Total returns based on NAV are calculated based on the NAV at the beginning of the period and at the
end of the period. Dividends and distributions, if any, are assumed for the purposes of these calculations to be reinvested at prices obtained under the Fund’s Automatic Dividend Reinvestment Plan. |
2 |
Source:
Allspring Funds Management, LLC. The ERH Blended Index is weighted 70% in the S&P 500 Utilities Index and 30% in the ICE BofA U.S. High Yield Constrained Index. Effective October 15, 2019, the ERH Blended Index changed the high yield component
of the index from the ICE BofA U.S. High Yield Index with the ICE BofA U.S. High Yield Constrained Index in order to better match the Fund’s investment strategy. You cannot invest directly in an index. |
3 |
The ICE
BofA U.S. High Yield Constrained Index is a market value-weighted index of all domestic and Yankee high-yield bonds, including deferred interest bonds and payment-in kind securities. Issues included in the index have maturities of one year or more
and have a credit rating lower than BBB–/Baa3, but are not in default. The ICE BofA U.S. High Yield Constrained Index limits any individual issuer to a maximum of 2% benchmark exposure. You cannot invest directly in an index. Copyright 2023.
ICE Data Indices, LLC. All rights reserved. |
4 |
The
S&P 500 Utilities Index is a market-value-weighted index that measures the performance of all stocks within the utilities sector of the S&P 500 Index. You cannot invest directly in an index. |
‡
|
CFA® and Chartered
Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring Utilities and High Income
Fund
Performance highlights
(unaudited)
Growth
of $10,000 investment as of February 28, 20231 |
1
|
The chart compares the
performance of the Fund for the most recent ten years with the ERH Blended Index, ICE BofA U.S. High Yield Constrained Index and S&P 500 Utilities Index. The chart assumes a hypothetical investment of $10,000 investment and reflects all
operating expenses of the Fund. |
Comparison
of NAV vs. market value1 |
1
|
This chart does not reflect
any brokerage commissions charged on the purchase and sale of the Fund’s common stock. Dividends and distributions paid by the Fund are included in the Fund’s average annual total returns but have the effect of reducing the Fund’s
NAV. |
Risk summary
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. 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 also subject to risks associated with any concentration of its investments in the utility 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.
Allspring Utilities and High Income
Fund | 7
Performance highlights
(unaudited)
MANAGER'S DISCUSSION
Overview
The Fund’s return based on market value was -11.03% for the six-month
period that ended February 28, 2023. During the same period, the Fund’s return based on net asset value (NAV) was -10.10%. Based on its market value and NAV return, the Fund underperformed the ERH Blended Index, which returned -7.16%.
Equity sleeve: Utilities underperformed the market despite a strong
start.
Utilities stocks underperformed the S&P 500
Index* by more than 12% for the period. The Fund’s equity sleeve trailed the S&P 500 Utilities Index by less than 1%. After significantly outperforming the broader
market during the first half of 2022, utilities performed roughly in line from September through December.
Ten
largest holdings (%) as of February 28, 20231 |
NextEra
Energy Incorporated |
14.08
|
Sempra
Energy |
5.41
|
American
Electric Power Company Incorporated |
5.07
|
Duke
Energy Corporation |
5.01
|
Xcel
Energy Incorporated |
4.43
|
Dominion
Energy Incorporated |
4.39
|
The
Southern Company |
4.28
|
Exelon
Corporation |
4.27
|
CMS
Energy Corporation |
3.38
|
DTE
Energy Company |
3.29
|
1 |
Figures represent the
percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
As utility stocks are often considered safe havens in uncertain
times, we believe that early in the year their stability and predictability attracted investors who were concerned about a possible recession, market volatility, and global geopolitical uncertainty. Through the first two months of 2023, however,
utilities broadly underperformed, particularly in January, as riskier stocks rebounded on signs of slowing inflation, declining interest rates, and improving prospects for an economic soft landing.
The Fund benefited from an overweight position in gas utilities
that outperformed the S&P 500 Utilities Index. Lower natural gas costs likely were a positive factor. The Fund also benefited from less exposure than the benchmark to a utility that is struggling to complete construction of a nuclear power
plant. The Fund did not own several
benchmark stocks that outperformed, which hurt relative performance. The
managers view those stocks as embedding either undue risk, subpar dividend growth, or a difficult regulatory environment.
Sector
allocation as of February 28, 20231 |
1 |
Figures represent the
percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
The high income sleeve was aided by transportation and
technology but hurt by health care and media entertainment.
The main contributors to the performance of the high income
sleeve came from the transportation services and technology sectors, while health care and media entertainment were our worst-performing sectors.
During the trailing six months, we reduced our BB-rated and
CC-rated bond exposure while increasing our allocation to single-B-rated bonds and CCC-rated bonds. By sector, we moved our allocation to aerospace/defense and health services from approximately even with the ICE BofA U.S. High Yield Index** to underweight and we increased our overweight to recreation and travel and cable and satellite. At the end of the period, the sleeve was most overweight recreation and travel
and real estate investment trusts and most underweight telecommunications—wirelines and chemicals. Overall, the high income sleeve remained short
* |
The S&P 500 Index
consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index.
|
** |
The ICE BofA U.S. High Yield
Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2023. ICE Data
Indices, LLC. All rights reserved. |
8 | Allspring Utilities and High Income
Fund
Performance highlights
(unaudited)
relative to the index and moved from under-yielding to slightly out-yielding
the index.
Credit
quality as of February 28, 20231 |
1 |
The credit quality
distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to
the Fund itself. The percentages of the portfolio with the ratings depicted in the chart are calculated based on the market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating
was utilized. If rated by two of the three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA
(highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s
rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest)
to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds,
ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified. |
Leverage impact
The Fund's use of leverage through bank borrowings had a
negative impact on total return performance during this reporting period as it magnified losses. As of February 28, 2023, the Fund had approximately 22% in leverage as a percent of total assets.
Outlook: Inflation and weakening credit fundamentals are
concerns.
Relative to the S&P 500 Index, utilities
stocks currently trade at a moderate discount to their long-term average based on
estimated price/earnings ratios. Fundamentally, the managers continue to see a
clear path for moderate yet consistent growth in utility earnings and dividends, which, combined with estimated dividend yields for the sector that exceed yields for the broader market by greater than 1.50%, could provide investors with solid total
return potential and below-average volatility. Challenges to the sector include inflation or interest rates that exceed expectations or a greater risk appetite by equity investors, which could lead to utilities underperforming the overall
market.
Geographic
allocation as of February 28, 20231 |
1 |
Figures represent the
percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
After a sharp bond rally to start the year, optimism faded
during February as “sticky” inflation and better-than-expected economic data reminded investors that inflation persists, and the central bank may need to tighten monetary policy more and maintain higher interest rates longer than
investors had originally hoped. As a result, bond yields rose and duration positions were trimmed to hedge against persistent inflation. However, hopes for ongoing economic strength also persisted.
Credit fundamentals started to show some signs of weakness in
early 2023. Corporate leverage started to creep higher, interest expenses rose, and default rates continued to move up marginally. The trailing 12-month default rate for U.S. high yield borrowers rose to 1.7% in February, up from 0.3% one year ago.
Also, credit rating migrations were mixed with a wave of upgrades offset by some downgrades. Combined, credit fundamentals remain reasonably strong, but signs are emerging that they may worsen this year.
Allspring Utilities and High Income
Fund | 9
Portfolio of
investments—February 28, 2023 (unaudited)
|
|
|
|
Shares
|
Value
|
Common
stocks: 84.39% |
|
|
|
|
|
Energy: 0.15%
|
|
|
|
|
|
Energy
equipment & services: 0.09% |
|
|
|
|
|
Bristow
Group Incorporated † |
|
|
|
3,368
|
$
91,744 |
Oil,
gas & consumable fuels: 0.06% |
|
|
|
|
|
Denbury
Incorporated † |
|
|
|
746
|
62,194
|
Financials: 0.05%
|
|
|
|
|
|
Mortgage
REITs: 0.05% |
|
|
|
|
|
Starwood
Property Trust Incorporated |
|
|
|
2,796
|
53,571
|
Utilities: 84.19%
|
|
|
|
|
|
Electric
utilities: 48.78% |
|
|
|
|
|
Alliant
Energy Corporation |
|
|
|
29,270
|
1,500,673
|
American
Electric Power Company Incorporated |
|
|
|
59,781
|
5,258,935
|
Constellation
Energy Corporation |
|
|
|
29,898
|
2,239,061
|
Duke
Energy Corporation |
|
|
|
55,165
|
5,199,853
|
Entergy
Corporation |
|
|
|
22,292
|
2,293,178
|
Evergy
Incorporated |
|
|
|
29,385
|
1,728,132
|
Eversource
Energy |
|
|
|
26,318
|
1,983,324
|
Exelon
Corporation |
|
|
|
109,843
|
4,436,559
|
FirstEnergy
Corporation |
|
|
|
59,028
|
2,333,967
|
NextEra
Energy Incorporated |
|
|
|
205,866
|
14,622,662
|
The
Southern Company |
|
|
|
70,453
|
4,442,766
|
Xcel
Energy Incorporated |
|
|
|
71,281
|
4,602,614
|
|
|
|
|
|
50,641,724
|
Gas
utilities: 3.74% |
|
|
|
|
|
Atmos
Energy Corporation |
|
|
|
29,092
|
3,281,869
|
ONE
Gas Incorporated |
|
|
|
7,503
|
601,440
|
|
|
|
|
|
3,883,309
|
Multi-utilities:
28.95% |
|
|
|
|
|
Ameren
Corporation |
|
|
|
38,992
|
3,225,028
|
CenterPoint
Energy Incorporated |
|
|
|
114,071
|
3,173,455
|
CMS
Energy Corporation |
|
|
|
59,487
|
3,507,948
|
Dominion
Energy Incorporated |
|
|
|
81,959
|
4,558,560
|
DTE
Energy Company |
|
|
|
31,112
|
3,413,298
|
Public
Service Enterprise Group Incorporated |
|
|
|
55,246
|
3,338,516
|
Sempra
Energy |
|
|
|
37,455
|
5,616,752
|
WEC
Energy Group Incorporated |
|
|
|
36,310
|
3,219,245
|
|
|
|
|
|
30,052,802
|
Water
utilities: 2.72% |
|
|
|
|
|
American
Water Works Company Incorporated |
|
|
|
20,113
|
2,823,463
|
Total
Common stocks (Cost $78,534,229) |
|
|
|
|
87,608,807
|
The
accompanying notes are an integral part of these financial statements.
10 | Allspring Utilities and High Income
Fund
Portfolio of
investments—February 28, 2023 (unaudited)
|
|
Interest
rate |
Maturity
date |
Principal
|
Value
|
Corporate
bonds and notes: 36.73% |
|
|
|
|
|
Communication
services: 6.42% |
|
|
|
|
|
Diversified
telecommunication services: 0.40% |
|
|
|
|
|
Cablevision
Lightpath LLC 144A |
|
3.88%
|
9-15-2027
|
$ 135,000
|
$
110,047 |
Cablevision
Lightpath LLC 144A |
|
5.63
|
9-15-2028
|
130,000
|
96,850
|
Level
3 Financing Incorporated 144A |
|
3.63
|
1-15-2029
|
155,000
|
99,460
|
Level
3 Financing Incorporated 144A |
|
4.25
|
7-1-2028
|
100,000
|
68,250
|
Level
3 Financing Incorporated 144A |
|
4.63
|
9-15-2027
|
50,000
|
37,375
|
|
|
|
|
|
411,982
|
Entertainment: 0.44%
|
|
|
|
|
|
Dave
& Buster's Incorporated 144A |
|
7.63
|
11-1-2025
|
70,000
|
70,963
|
Live
Nation Entertainment Incorporated 144A |
|
3.75
|
1-15-2028
|
140,000
|
121,731
|
Live
Nation Entertainment Incorporated 144A |
|
5.63
|
3-15-2026
|
48,000
|
46,206
|
Live
Nation Entertainment Incorporated 144A |
|
6.50
|
5-15-2027
|
225,000
|
221,231
|
|
|
|
|
|
460,131
|
Media: 5.58%
|
|
|
|
|
|
CCO
Holdings LLC 144A |
|
4.25
|
1-15-2034
|
635,000
|
475,331
|
CCO
Holdings LLC 144A |
|
4.50
|
8-15-2030
|
450,000
|
370,134
|
CCO
Holdings LLC |
|
4.50
|
5-1-2032
|
50,000
|
39,573
|
CCO
Holdings LLC 144A |
|
5.00
|
2-1-2028
|
25,000
|
22,656
|
CCO
Holdings LLC 144A |
|
5.13
|
5-1-2027
|
250,000
|
231,318
|
CCO
Holdings LLC 144A |
|
5.50
|
5-1-2026
|
2,000
|
1,930
|
Cinemark
USA Incorporated 144A |
|
5.25
|
7-15-2028
|
235,000
|
197,459
|
Cinemark
USA Incorporated 144A |
|
5.88
|
3-15-2026
|
65,000
|
59,511
|
Cinemark
USA Incorporated 144A |
|
8.75
|
5-1-2025
|
220,000
|
224,444
|
Clear
Channel Outdoor Holdings 144A |
|
7.50
|
6-1-2029
|
270,000
|
218,700
|
CSC
Holdings LLC 144A |
|
4.13
|
12-1-2030
|
330,000
|
238,484
|
CSC
Holdings LLC 144A |
|
4.63
|
12-1-2030
|
200,000
|
107,675
|
CSC
Holdings LLC 144A |
|
5.75
|
1-15-2030
|
390,000
|
223,365
|
DIRECTV
Financing LLC 144A |
|
5.88
|
8-15-2027
|
245,000
|
219,035
|
DISH
DBS Corporation 144A |
|
5.75
|
12-1-2028
|
185,000
|
147,778
|
DISH
Network Corporation 144A |
|
11.75
|
11-15-2027
|
220,000
|
222,910
|
Gray
Escrow II Incorporated 144A |
|
5.38
|
11-15-2031
|
600,000
|
445,472
|
Gray
Television Incorporated 144A |
|
4.75
|
10-15-2030
|
250,000
|
183,295
|
Match
Group Holdings II LLC 144A |
|
5.63
|
2-15-2029
|
375,000
|
345,483
|
Nexstar
Broadcasting Incorporated 144A |
|
4.75
|
11-1-2028
|
125,000
|
109,284
|
Nexstar
Broadcasting Incorporated 144A |
|
5.63
|
7-15-2027
|
125,000
|
116,092
|
Outfront
Media Capital Corporation 144A |
|
4.63
|
3-15-2030
|
150,000
|
122,631
|
Outfront
Media Capital Corporation 144A |
|
5.00
|
8-15-2027
|
85,000
|
76,713
|
QVC
Incorporated |
|
4.38
|
9-1-2028
|
200,000
|
111,438
|
QVC
Incorporated |
|
4.75
|
2-15-2027
|
175,000
|
112,000
|
QVC
Incorporated |
|
5.95
|
3-15-2043
|
95,000
|
45,630
|
Salem
Media Group Incorporated 144A |
|
6.75
|
6-1-2024
|
70,000
|
70,000
|
Scripps
Escrow II Incorporated 144A |
|
3.88
|
1-15-2029
|
35,000
|
27,894
|
Scripps
Escrow II Incorporated 144A |
|
5.38
|
1-15-2031
|
425,000
|
300,892
|
Scripps
Escrow II Incorporated 144A |
|
5.88
|
7-15-2027
|
50,000
|
40,036
|
Sirius
XM Radio Incorporated 144A |
|
4.13
|
7-1-2030
|
275,000
|
223,501
|
Townsquare
Media Incorporated 144A |
|
6.88
|
2-1-2026
|
510,000
|
467,299
|
|
|
|
|
|
5,797,963
|
The accompanying notes are an integral part of these financial
statements.
Allspring Utilities and High Income
Fund | 11
Portfolio of
investments—February 28, 2023 (unaudited)
|
|
Interest
rate |
Maturity
date |
Principal
|
Value
|
Consumer
discretionary: 5.88% |
|
|
|
|
|
Auto
components: 0.41% |
|
|
|
|
|
Allison
Transmission Incorporated 144A |
|
5.88%
|
6-1-2029
|
$ 170,000
|
$
161,075 |
Clarios
Global LP 144A |
|
6.25
|
5-15-2026
|
144,000
|
141,336
|
Cooper
Tire & Rubber Company |
|
7.63
|
3-15-2027
|
122,000
|
124,606
|
|
|
|
|
|
427,017
|
Automobiles: 0.25%
|
|
|
|
|
|
Ford
Motor Company |
|
3.25
|
2-12-2032
|
175,000
|
132,669
|
Ford
Motor Company |
|
4.75
|
1-15-2043
|
180,000
|
131,273
|
|
|
|
|
|
263,942
|
Diversified
consumer services: 0.14% |
|
|
|
|
|
Service
Corporation International |
|
7.50
|
4-1-2027
|
140,000
|
144,206
|
Hotels,
restaurants & leisure: 2.96% |
|
|
|
|
|
Carnival
Corporation 144A |
|
4.00
|
8-1-2028
|
150,000
|
126,816
|
Carnival
Corporation 144A |
|
6.00
|
5-1-2029
|
290,000
|
225,852
|
Carnival
Corporation 144A |
|
9.88
|
8-1-2027
|
100,000
|
101,799
|
Carnival
Corporation 144A |
|
10.50
|
2-1-2026
|
60,000
|
62,099
|
Carnival
Holdings Bermuda Limited 144A |
|
10.38
|
5-1-2028
|
340,000
|
363,800
|
CCM
Merger Incorporated 144A |
|
6.38
|
5-1-2026
|
555,000
|
532,598
|
Churchill
Downs Incorporated 144A |
|
4.75
|
1-15-2028
|
250,000
|
227,567
|
MGM
Resorts International |
|
6.75
|
5-1-2025
|
95,000
|
95,235
|
NCL
Corporation Limited 144A |
|
5.88
|
3-15-2026
|
265,000
|
229,225
|
NCL
Corporation Limited 144A |
|
5.88
|
2-15-2027
|
170,000
|
157,675
|
NCL
Corporation Limited 144A |
|
7.75
|
2-15-2029
|
110,000
|
95,755
|
Royal
Caribbean Cruises Limited 144A |
|
5.38
|
7-15-2027
|
25,000
|
21,973
|
Royal
Caribbean Cruises Limited 144A |
|
5.50
|
8-31-2026
|
95,000
|
87,288
|
Royal
Caribbean Cruises Limited 144A |
|
5.50
|
4-1-2028
|
420,000
|
366,072
|
Royal
Caribbean Cruises Limited 144A |
|
9.25
|
1-15-2029
|
140,000
|
148,502
|
Royal
Caribbean Cruises Limited 144A |
|
11.63
|
8-15-2027
|
215,000
|
228,984
|
|
|
|
|
|
3,071,240
|
Household
durables: 0.17% |
|
|
|
|
|
Toll
Brothers Finance Corporation |
|
4.35
|
2-15-2028
|
190,000
|
174,988
|
Multiline
retail: 0.48% |
|
|
|
|
|
LSF9
Atlantis Holdings LLC 144A |
|
7.75
|
2-15-2026
|
370,000
|
325,344
|
Macy's
Retail Holdings LLC 144A |
|
5.88
|
4-1-2029
|
140,000
|
127,170
|
Macy's
Retail Holdings LLC 144A |
|
6.13
|
3-15-2032
|
50,000
|
43,000
|
|
|
|
|
|
495,514
|
Specialty
retail: 1.10% |
|
|
|
|
|
Bath
& Body Works Incorporated 144A |
|
9.38
|
7-1-2025
|
95,000
|
100,463
|
Michaels
Companies Incorporated 144A |
|
7.88
|
5-1-2029
|
300,000
|
225,750
|
NMG
Holding Company Incorporated 144A |
|
7.13
|
4-1-2026
|
225,000
|
217,125
|
PetSmart
Incorporated 144A |
|
4.75
|
2-15-2028
|
380,000
|
345,878
|
Rent-A-Center
Incorporated 144A |
|
6.38
|
2-15-2029
|
295,000
|
253,072
|
|
|
|
|
|
1,142,288
|
Textiles,
apparel & luxury goods: 0.37% |
|
|
|
|
|
G-III
Apparel Group Limited 144A |
|
7.88
|
8-15-2025
|
405,000
|
381,713
|
The accompanying notes are an integral part of these financial
statements.
12 | Allspring Utilities and High Income
Fund
Portfolio of
investments—February 28, 2023 (unaudited)
|
|
Interest
rate |
Maturity
date |
Principal
|
Value
|
Consumer
staples: 0.22% |
|
|
|
|
|
Food
products: 0.22% |
|
|
|
|
|
CHS
Incorporated 144A |
|
5.25%
|
5-15-2030
|
$ 145,000
|
$
116,017 |
CHS
Incorporated 144A |
|
6.00
|
1-15-2029
|
10,000
|
8,636
|
US
Foods Incorporated 144A |
|
6.25
|
4-15-2025
|
110,000
|
109,598
|
|
|
|
|
|
234,251
|
Energy:
6.89% |
|
|
|
|
|
Energy
equipment & services: 1.52% |
|
|
|
|
|
Bristow
Group Incorporated 144A |
|
6.88
|
3-1-2028
|
375,000
|
353,014
|
Hilcorp
Energy Company 144A |
|
5.75
|
2-1-2029
|
55,000
|
49,775
|
Hilcorp
Energy Company 144A |
|
6.00
|
4-15-2030
|
30,000
|
27,216
|
Hilcorp
Energy Company 144A |
|
6.00
|
2-1-2031
|
55,000
|
49,346
|
Hilcorp
Energy Company 144A |
|
6.25
|
11-1-2028
|
75,000
|
69,682
|
Hilcorp
Energy Company 144A |
|
6.25
|
4-15-2032
|
30,000
|
27,204
|
Oceaneering
International Incorporated |
|
4.65
|
11-15-2024
|
105,000
|
101,071
|
Oceaneering
International Incorporated |
|
6.00
|
2-1-2028
|
225,000
|
213,440
|
Pattern
Energy Operations LP 144A |
|
4.50
|
8-15-2028
|
500,000
|
446,505
|
USA
Compression Partners LP |
|
6.88
|
4-1-2026
|
150,000
|
143,759
|
USA
Compression Partners LP |
|
6.88
|
9-1-2027
|
100,000
|
94,684
|
|
|
|
|
|
1,575,696
|
Oil,
gas & consumable fuels: 5.37% |
|
|
|
|
|
Aethon
United 144A |
|
8.25
|
2-15-2026
|
430,000
|
413,588
|
Archrock
Partners LP 144A |
|
6.25
|
4-1-2028
|
135,000
|
128,153
|
Archrock
Partners LP 144A |
|
6.88
|
4-1-2027
|
125,000
|
121,266
|
Buckeye
Partners LP 144A |
|
4.50
|
3-1-2028
|
25,000
|
21,953
|
Buckeye
Partners LP |
|
5.85
|
11-15-2043
|
150,000
|
110,952
|
CQP
Holdco LP 144A |
|
5.50
|
6-15-2031
|
295,000
|
258,863
|
DT
Midstream Incorporated 144A |
|
4.13
|
6-15-2029
|
85,000
|
72,888
|
DT
Midstream Incorporated 144A |
|
4.38
|
6-15-2031
|
225,000
|
188,438
|
Encino
Acquisition Partners Company 144A |
|
8.50
|
5-1-2028
|
400,000
|
349,396
|
EnLink
Midstream Partners LP |
|
5.05
|
4-1-2045
|
210,000
|
160,550
|
EnLink
Midstream Partners LP |
|
5.38
|
6-1-2029
|
297,000
|
275,784
|
EnLink
Midstream Partners LP |
|
5.60
|
4-1-2044
|
75,000
|
61,125
|
EnLink
Midstream Partners LP 144A |
|
5.63
|
1-15-2028
|
35,000
|
33,338
|
EnLink
Midstream Partners LP 144A |
|
6.50
|
9-1-2030
|
155,000
|
152,664
|
Enviva
Partners LP 144A |
|
6.50
|
1-15-2026
|
800,000
|
749,968
|
EQM
Midstream Partners 144A |
|
7.50
|
6-1-2027
|
5,000
|
4,900
|
EQM
Midstream Partners 144A |
|
7.50
|
6-1-2030
|
230,000
|
219,126
|
Harvest
Midstream LP 144A |
|
7.50
|
9-1-2028
|
145,000
|
139,832
|
Hess
Midstream Operation Company 144A |
|
5.50
|
10-15-2030
|
30,000
|
27,000
|
Kinetik
Holdings LP Company 144A |
|
5.88
|
6-15-2030
|
240,000
|
221,810
|
Murphy
Oil Corporation |
|
6.38
|
7-15-2028
|
50,000
|
48,266
|
Nabors
Industries Limited 144A |
|
7.38
|
5-15-2027
|
180,000
|
173,480
|
Occidental
Petroleum Corporation |
|
6.45
|
9-15-2036
|
525,000
|
527,625
|
Rockies
Express Pipeline LLC 144A |
|
6.88
|
4-15-2040
|
215,000
|
176,056
|
Southwestern
Energy Company |
|
4.75
|
2-1-2032
|
130,000
|
111,713
|
Southwestern
Energy Company |
|
8.38
|
9-15-2028
|
110,000
|
115,088
|
Tallgrass
Energy Partners LP 144A |
|
6.00
|
12-31-2030
|
185,000
|
159,533
|
Tallgrass
Energy Partners LP 144A |
|
6.00
|
9-1-2031
|
125,000
|
106,817
|
Venture
Global Calcasieu Pass LLC 144A |
|
6.25
|
1-15-2030
|
260,000
|
256,425
|
The accompanying notes are an integral part of these financial
statements.
Allspring Utilities and High Income
Fund | 13
Portfolio of
investments—February 28, 2023 (unaudited)
|
|
Interest
rate |
Maturity
date |
Principal
|
Value
|
Oil,
gas & consumable fuels (continued) |
|
|
|
|
|
Venture
Global LNG Incorporated 144A |
|
3.88%
|
11-1-2033
|
$ 35,000
|
$
28,539 |
Vital
Energy Incorporated |
|
9.50
|
1-15-2025
|
165,000
|
166,332
|
|
|
|
|
|
5,581,468
|
Financials:
5.76% |
|
|
|
|
|
Capital
markets: 0.21% |
|
|
|
|
|
Oppenheimer
Holdings Incorporated |
|
5.50
|
10-1-2025
|
225,000
|
221,063
|
Consumer
finance: 2.44% |
|
|
|
|
|
FirstCash
Incorporated 144A |
|
4.63
|
9-1-2028
|
205,000
|
178,088
|
FirstCash
Incorporated 144A |
|
5.63
|
1-1-2030
|
145,000
|
128,258
|
Ford
Motor Credit Company LLC |
|
4.39
|
1-8-2026
|
220,000
|
206,934
|
Ford
Motor Credit Company LLC |
|
5.11
|
5-3-2029
|
535,000
|
489,044
|
LFS
TopCo LLC 144A |
|
5.88
|
10-15-2026
|
120,000
|
103,344
|
Navient
Corporation |
|
5.00
|
3-15-2027
|
195,000
|
173,355
|
Navient
Corporation |
|
5.63
|
8-1-2033
|
125,000
|
93,809
|
Navient
Corporation |
|
5.88
|
10-25-2024
|
225,000
|
218,714
|
OneMain
Finance Corporation |
|
5.38
|
11-15-2029
|
75,000
|
63,153
|
OneMain
Finance Corporation |
|
6.13
|
3-15-2024
|
50,000
|
49,299
|
OneMain
Finance Corporation |
|
7.13
|
3-15-2026
|
125,000
|
121,514
|
PECF
USS Intermediate Holding III Corporation 144A |
|
8.00
|
11-15-2029
|
275,000
|
193,307
|
PRA
Group Incorporated 144A |
|
5.00
|
10-1-2029
|
320,000
|
272,707
|
Rocket
Mortgage LLC 144A |
|
2.88
|
10-15-2026
|
190,000
|
163,949
|
Rocket
Mortgage LLC 144A |
|
4.00
|
10-15-2033
|
105,000
|
77,626
|
|
|
|
|
|
2,533,101
|
Diversified
financial services: 1.04% |
|
|
|
|
|
Camelot
Return Merger Sub Incorporated 144A |
|
8.75
|
8-1-2028
|
395,000
|
375,250
|
Hat
Holdings LLC 144A |
|
3.38
|
6-15-2026
|
120,000
|
104,100
|
Hat
Holdings LLC 144A |
|
3.75
|
9-15-2030
|
70,000
|
52,842
|
Hat
Holdings LLC 144A |
|
6.00
|
4-15-2025
|
55,000
|
53,007
|
LPL
Holdings Incorporated 144A |
|
4.38
|
5-15-2031
|
390,000
|
337,362
|
United
Wholesale Mortgage LLC 144A |
|
5.50
|
11-15-2025
|
170,000
|
157,930
|
|
|
|
|
|
1,080,491
|
Insurance: 0.76%
|
|
|
|
|
|
Amwins
Group Incorporated 144A |
|
4.88
|
6-30-2029
|
315,000
|
267,531
|
AssuredPartners
Incorporated 144A |
|
5.63
|
1-15-2029
|
135,000
|
114,385
|
Broadstreet
Partners Incorporated 144A |
|
5.88
|
4-15-2029
|
345,000
|
297,015
|
Tri
Pointe Homes Incorporated |
|
5.88
|
6-15-2024
|
110,000
|
108,625
|
|
|
|
|
|
787,556
|
Mortgage
REITs: 0.29% |
|
|
|
|
|
Starwood
Property Trust Incorporated 144A |
|
4.38
|
1-15-2027
|
245,000
|
212,403
|
Starwood
Property Trust Incorporated |
|
4.75
|
3-15-2025
|
90,000
|
85,884
|
|
|
|
|
|
298,287
|
Thrifts
& mortgage finance: 1.02% |
|
|
|
|
|
Enact
Holdings Incorporated 144A |
|
6.50
|
8-15-2025
|
625,000
|
614,219
|
Ladder
Capital Finance Holdings LP 144A |
|
4.25
|
2-1-2027
|
50,000
|
42,503
|
Ladder
Capital Finance Holdings LP 144A |
|
4.75
|
6-15-2029
|
135,000
|
109,778
|
The accompanying notes are an integral part of these financial
statements.
14 | Allspring Utilities and High Income
Fund
Portfolio of
investments—February 28, 2023 (unaudited)
|
|
Interest
rate |
Maturity
date |
Principal
|
Value
|
Thrifts
& mortgage finance (continued) |
|
|
|
|
|
Ladder
Capital Finance Holdings LP 144A |
|
5.25%
|
10-1-2025
|
$ 195,000
|
$
182,210 |
United
Wholesale Mortgage LLC 144A |
|
5.50
|
4-15-2029
|
130,000
|
107,601
|
|
|
|
|
|
1,056,311
|
Health
care: 0.64% |
|
|
|
|
|
Health
care providers & services: 0.43% |
|
|
|
|
|
Air
Methods Corporation 144A |
|
8.00
|
5-15-2025
|
110,000
|
6,600
|
Pediatrix
Medical Group 144A |
|
5.38
|
2-15-2030
|
110,000
|
97,040
|
Select
Medical Corporation 144A |
|
6.25
|
8-15-2026
|
260,000
|
248,300
|
Tenet
Healthcare Corporation |
|
4.88
|
1-1-2026
|
100,000
|
95,239
|
|
|
|
|
|
447,179
|
Pharmaceuticals: 0.21%
|
|
|
|
|
|
Catalent
Pharma Solutions Company 144A |
|
5.00
|
7-15-2027
|
225,000
|
216,871
|
Industrials:
4.31% |
|
|
|
|
|
Aerospace
& defense: 0.69% |
|
|
|
|
|
Spirit
AeroSystems Incorporated 144A |
|
7.50
|
4-15-2025
|
157,000
|
156,859
|
Spirit
AeroSystems Incorporated 144A |
|
9.38
|
11-30-2029
|
300,000
|
316,875
|
TransDigm
Group Incorporated |
|
7.50
|
3-15-2027
|
245,000
|
241,938
|
|
|
|
|
|
715,672
|
Airlines: 0.79%
|
|
|
|
|
|
American
Airlines Group Incorporated 144A |
|
5.75
|
4-20-2029
|
200,000
|
190,223
|
Hawaiian
Airlines Incorporated |
|
3.90
|
7-15-2027
|
138,348
|
124,718
|
Hawaiian
Brand Intellectual Property Limited 144A |
|
5.75
|
1-20-2026
|
170,000
|
158,086
|
Spirit
Loyalty Cayman Limited 144A |
|
8.00
|
9-20-2025
|
345,000
|
346,294
|
|
|
|
|
|
819,321
|
Commercial
services & supplies: 0.93% |
|
|
|
|
|
Allied
Universal Holdco LLC 144A |
|
6.00
|
6-1-2029
|
385,000
|
286,815
|
Allied
Universal Holdco LLC 144A |
|
6.63
|
7-15-2026
|
115,000
|
109,222
|
CoreCivic
Incorporated |
|
8.25
|
4-15-2026
|
560,000
|
566,927
|
|
|
|
|
|
962,964
|
Machinery: 0.71%
|
|
|
|
|
|
Chart
Industries Incorporated 144A |
|
7.50
|
1-1-2030
|
45,000
|
45,675
|
Chart
Industries Incorporated 144A |
|
9.50
|
1-1-2031
|
75,000
|
78,375
|
TK
Elevator US Newco Incorporated 144A |
|
5.25
|
7-15-2027
|
335,000
|
303,487
|
Werner
FinCo LP 144A |
|
8.75
|
7-15-2025
|
395,000
|
315,013
|
|
|
|
|
|
742,550
|
Road
& rail: 0.71% |
|
|
|
|
|
Uber
Technologies Incorporated 144A |
|
4.50
|
8-15-2029
|
430,000
|
380,154
|
Uber
Technologies Incorporated 144A |
|
8.00
|
11-1-2026
|
350,000
|
355,329
|
|
|
|
|
|
735,483
|
Trading
companies & distributors: 0.48% |
|
|
|
|
|
Fortress
Transportation & Infrastructure Investors LLC 144A |
|
5.50
|
5-1-2028
|
150,000
|
133,959
|
Fortress
Transportation & Infrastructure Investors LLC 144A |
|
6.50
|
10-1-2025
|
329,000
|
320,898
|
Fortress
Transportation & Infrastructure Investors LLC 144A |
|
9.75
|
8-1-2027
|
43,000
|
44,179
|
|
|
|
|
|
499,036
|
The accompanying notes are an integral part of these financial
statements.
Allspring Utilities and High Income
Fund | 15
Portfolio of
investments—February 28, 2023 (unaudited)
|
|
Interest
rate |
Maturity
date |
Principal
|
Value
|
Information
technology: 2.30% |
|
|
|
|
|
Communications
equipment: 0.31% |
|
|
|
|
|
Ciena
Corporation 144A |
|
4.00%
|
1-31-2030
|
$ 150,000
|
$
127,688 |
CommScope
Technologies LLC 144A |
|
4.75
|
9-1-2029
|
60,000
|
48,900
|
CommScope
Technologies LLC 144A |
|
5.00
|
3-15-2027
|
190,000
|
144,863
|
|
|
|
|
|
321,451
|
Electronic
equipment, instruments & components: 0.24% |
|
|
|
|
|
Wesco
Distribution Incorporated 144A |
|
7.13
|
6-15-2025
|
245,000
|
247,221
|
IT
services: 0.78% |
|
|
|
|
|
Sabre
GLBL Incorporated 144A |
|
9.25
|
4-15-2025
|
425,000
|
418,345
|
Sabre
GLBL Incorporated 144A |
|
11.25
|
12-15-2027
|
395,000
|
394,751
|
|
|
|
|
|
813,096
|
Software: 0.97%
|
|
|
|
|
|
McAfee
Corporation 144A |
|
7.38
|
2-15-2030
|
270,000
|
213,982
|
MPH
Acquisition Holdings LLC 144A |
|
5.50
|
9-1-2028
|
125,000
|
94,706
|
MPH
Acquisition Holdings LLC 144A |
|
5.75
|
11-1-2028
|
340,000
|
220,973
|
NCR
Corporation 144A |
|
5.13
|
4-15-2029
|
40,000
|
34,161
|
NCR
Corporation 144A |
|
6.13
|
9-1-2029
|
260,000
|
252,850
|
SS&C
Technologies Incorporated 144A |
|
5.50
|
9-30-2027
|
200,000
|
188,202
|
|
|
|
|
|
1,004,874
|
Materials:
1.17% |
|
|
|
|
|
Chemicals: 0.20%
|
|
|
|
|
|
Avient
Corporation 144A |
|
7.13
|
8-1-2030
|
60,000
|
60,150
|
Chemours
Company 144A |
|
4.63
|
11-15-2029
|
185,000
|
150,140
|
|
|
|
|
|
210,290
|
Containers
& packaging: 0.47% |
|
|
|
|
|
Berry
Global Incorporated 144A |
|
5.63
|
7-15-2027
|
270,000
|
259,875
|
Clydesdale
Acquisition Holdings Incorporated 144A |
|
8.75
|
4-15-2030
|
255,000
|
230,362
|
|
|
|
|
|
490,237
|
Metals
& mining: 0.32% |
|
|
|
|
|
Arches
Buyer Incorporated 144A |
|
4.25
|
6-1-2028
|
125,000
|
102,898
|
Arches
Buyer Incorporated 144A |
|
6.13
|
12-1-2028
|
275,000
|
226,369
|
|
|
|
|
|
329,267
|
Paper
& forest products: 0.18% |
|
|
|
|
|
Clearwater
Paper Corporation 144A |
|
4.75
|
8-15-2028
|
210,000
|
183,634
|
Real
estate: 1.33% |
|
|
|
|
|
Equity
REITs: 1.33% |
|
|
|
|
|
GLP
Capital LP |
|
3.25
|
1-15-2032
|
160,000
|
127,094
|
Iron
Mountain Incorporated 144A |
|
4.50
|
2-15-2031
|
250,000
|
206,994
|
Iron
Mountain Incorporated 144A |
|
5.25
|
7-15-2030
|
315,000
|
274,661
|
MPT
Operating Partnership LP |
|
3.50
|
3-15-2031
|
490,000
|
335,875
|
Service
Properties Trust Company |
|
4.35
|
10-1-2024
|
125,000
|
119,650
|
Service
Properties Trust Company |
|
4.75
|
10-1-2026
|
125,000
|
108,438
|
Service
Properties Trust Company |
|
4.95
|
2-15-2027
|
140,000
|
120,694
|
The accompanying notes are an integral part of these financial
statements.
16 | Allspring Utilities and High Income
Fund
Portfolio of
investments—February 28, 2023 (unaudited)
|
|
Interest
rate |
Maturity
date |
Principal
|
Value
|
Equity
REITs (continued) |
|
|
|
|
|
Service
Properties Trust Company |
|
5.25%
|
2-15-2026
|
$ 75,000
|
$
68,063 |
Service
Properties Trust Company |
|
7.50
|
9-15-2025
|
15,000
|
14,868
|
|
|
|
|
|
1,376,337
|
Utilities:
1.81% |
|
|
|
|
|
Electric
utilities: 0.55% |
|
|
|
|
|
NextEra
Energy Operating Partners LP 144A |
|
4.25
|
9-15-2024
|
2,000
|
1,865
|
PG&E
Corporation |
|
5.00
|
7-1-2028
|
25,000
|
22,826
|
PG&E
Corporation |
|
5.25
|
7-1-2030
|
615,000
|
548,888
|
|
|
|
|
|
573,579
|
Independent
power & renewable electricity producers: 1.26% |
|
|
|
|
|
NSG
Holdings LLC 144A |
|
7.75
|
12-15-2025
|
283,195
|
277,531
|
TerraForm
Power Operating LLC 144A |
|
4.75
|
1-15-2030
|
175,000
|
151,277
|
TerraForm
Power Operating LLC 144A |
|
5.00
|
1-31-2028
|
525,000
|
483,000
|
Vistra
Operations Company LLC 144A |
|
4.38
|
5-1-2029
|
110,000
|
95,028
|
Vistra
Operations Company LLC 144A |
|
5.63
|
2-15-2027
|
225,000
|
213,215
|
Vistra
Operations Company LLC (5 Year Treasury Constant Maturity +5.74%) 144Aʊ± |
|
7.00
|
12-15-2026
|
90,000
|
84,180
|
|
|
|
|
|
1,304,231
|
Total
Corporate bonds and notes (Cost $41,214,375) |
|
|
|
|
38,132,501
|
Loans:
2.65% |
|
|
|
|
|
Communication
services: 0.56% |
|
|
|
|
|
Diversified
telecommunication services: 0.20% |
|
|
|
|
|
Intelsat
Jackson Holdings SA (U.S. SOFR 1 Month +4.25%) ± |
|
9.18
|
2-1-2029
|
213,172
|
210,507
|
Entertainment: 0.10%
|
|
|
|
|
|
Dave
& Buster's Incorporated (U.S. SOFR 1 Month +5.00%) <± |
|
9.75
|
6-29-2029
|
104,525
|
104,812
|
Media: 0.26%
|
|
|
|
|
|
Clear
Channel Outdoor Holdings (1 Month LIBOR +3.50%) ± |
|
8.23
|
8-21-2026
|
89,537
|
84,687
|
Hubbard
Radio LLC (1 Month LIBOR +4.25%) ± |
|
8.89
|
3-28-2025
|
204,105
|
180,803
|
|
|
|
|
|
265,490
|
Energy:
0.20% |
|
|
|
|
|
Oil,
gas & consumable fuels: 0.20% |
|
|
|
|
|
GIP
II Blue Holdings LP (1 Month LIBOR +4.50%) ± |
|
9.23
|
9-29-2028
|
120,124
|
119,608
|
M6
ETX Holdings II MidCo LLC (U.S. SOFR 1 Month +4.50%) ± |
|
9.16
|
9-19-2029
|
84,788
|
84,328
|
|
|
|
|
|
203,936
|
Financials:
0.69% |
|
|
|
|
|
Diversified
financial services: 0.36% |
|
|
|
|
|
Resolute
Investment Managers Incorporated (1 Month LIBOR +4.25%) ‡<± |
|
8.98
|
4-30-2024
|
158,084
|
124,096
|
The accompanying notes are an integral part of these financial
statements.
Allspring Utilities and High Income
Fund | 17
Portfolio of
investments—February 28, 2023 (unaudited)
|
|
Interest
rate |
Maturity
date |
Principal
|
Value
|
Diversified
financial services (continued) |
|
|
|
|
|
Resolute
Investment Managers Incorporated (1 Month LIBOR +8.00%) ± |
|
12.83%
|
4-30-2025
|
$ 105,857
|
$
84,685 |
Russell
Investments US Institutional Holdco Incorporated (1 Month LIBOR +3.50%) ± |
|
8.13
|
5-30-2025
|
173,532
|
170,712
|
|
|
|
|
|
379,493
|
Insurance: 0.20%
|
|
|
|
|
|
Asurion
LLC (1 Month LIBOR +3.00%) <± |
|
7.63
|
11-3-2024
|
120,000
|
119,507
|
Asurion
LLC (1 Month LIBOR +5.25%) ± |
|
9.88
|
1-31-2028
|
105,000
|
89,355
|
|
|
|
|
|
208,862
|
Mortgage
REITs: 0.13% |
|
|
|
|
|
Claros
Mortgage Trust Incorporated (U.S. SOFR 1 Month +4.50%) ‡± |
|
9.16
|
8-9-2026
|
133,650
|
132,146
|
Health
care: 0.05% |
|
|
|
|
|
Health
care equipment & supplies: 0.05% |
|
|
|
|
|
Surgery
Center Holdings Incorporated (1 Month LIBOR +3.75%) ± |
|
8.36
|
8-31-2026
|
52,181
|
51,754
|
Industrials:
1.15% |
|
|
|
|
|
Airlines: 0.38%
|
|
|
|
|
|
Mileage
Plus Holdings LLC (1 Month LIBOR +5.25%) ± |
|
10.00
|
6-21-2027
|
225,000
|
234,056
|
SkyMiles
IP Limited (3 Month LIBOR +3.75%) <± |
|
8.56
|
10-20-2027
|
158,000
|
163,432
|
|
|
|
|
|
397,488
|
Commercial
services & supplies: 0.53% |
|
|
|
|
|
The
Geo Group Incorporated (1 Month LIBOR +7.13%) ± |
|
11.74
|
3-23-2027
|
545,207
|
548,909
|
Machinery: 0.24%
|
|
|
|
|
|
Chart
Industries Incorporated <± |
|
8.59
|
12-7-2029
|
45,000
|
44,916
|
Vertical
US Newco Incorporated (1 Month LIBOR +3.50%) ± |
|
8.60
|
7-30-2027
|
40,903
|
39,951
|
Werner
FinCo LP (3 Month LIBOR +4.00%) ± |
|
8.73
|
7-24-2024
|
176,279
|
163,940
|
|
|
|
|
|
248,807
|
Total
Loans (Cost $2,808,996) |
|
|
|
|
2,752,204
|
|
|
|
Expiration
date |
Shares
|
|
Rights: 0.00%
|
|
|
|
|
|
Communication
services: 0.00% |
|
|
|
|
|
Diversified
telecommunication services: 0.00% |
|
|
|
|
|
Intelsat
Jackson Holdings SA Series A ♦† |
|
|
12-5-2025
|
460
|
0
|
Intelsat
Jackson Holdings SA Series B ♦† |
|
|
12-5-2025
|
460
|
0
|
Total
Rights (Cost $0) |
|
|
|
|
0
|
The
accompanying notes are an integral part of these financial statements.
18 | Allspring Utilities and High Income
Fund
Portfolio of
investments—February 28, 2023 (unaudited)
|
|
Interest
rate |
Maturity
date |
Principal
|
Value
|
Yankee
corporate bonds and notes: 3.55% |
|
|
|
|
|
Communication
services: 0.33% |
|
|
|
|
|
Media: 0.24%
|
|
|
|
|
|
Videotron
Limited 144A |
|
5.13%
|
4-15-2027
|
$ 270,000
|
$ 252,450
|
Wireless
telecommunication services: 0.09% |
|
|
|
|
|
Connect
U.S. Finco LLC 144A |
|
6.75
|
10-1-2026
|
100,000
|
92,504
|
Consumer
discretionary: 0.12% |
|
|
|
|
|
Auto
components: 0.12% |
|
|
|
|
|
Adient
Global Holdings Limited 144A |
|
4.88
|
8-15-2026
|
130,000
|
120,297
|
Energy:
0.24% |
|
|
|
|
|
Oil,
gas & consumable fuels: 0.24% |
|
|
|
|
|
Griffin
Coal Mining Company Limited 144A♦† |
|
9.50
|
12-1-2016
|
60,957
|
0
|
NorthRiver
Midstream Finance LP 144A |
|
5.63
|
2-15-2026
|
270,000
|
254,256
|
|
|
|
|
|
254,256
|
Financials:
0.44% |
|
|
|
|
|
Diversified
financial services: 0.44% |
|
|
|
|
|
Castlelake
Aviation Finance 144A |
|
5.00
|
4-15-2027
|
255,000
|
229,032
|
New
Red Finance Incorporated 144A |
|
4.00
|
10-15-2030
|
275,000
|
227,128
|
|
|
|
|
|
456,160
|
Health
care: 0.76% |
|
|
|
|
|
Biotechnology: 0.22%
|
|
|
|
|
|
Grifols
Escrow Issuer SA 144A |
|
4.75
|
10-15-2028
|
265,000
|
226,575
|
Pharmaceuticals: 0.54%
|
|
|
|
|
|
Bausch
Health Companies Incorporated 144A |
|
4.88
|
6-1-2028
|
125,000
|
77,969
|
Teva
Pharmaceutical Finance Netherlands III BV |
|
6.00
|
4-15-2024
|
370,000
|
369,223
|
Teva
Pharmaceutical Finance Netherlands III BV |
|
6.75
|
3-1-2028
|
115,000
|
110,544
|
|
|
|
|
|
557,736
|
Industrials:
1.34% |
|
|
|
|
|
Airlines: 0.65%
|
|
|
|
|
|
Air
Canada Pass-Through Trust Series 2020-1 Class C 144A |
|
10.50
|
7-15-2026
|
340,000
|
362,100
|
VistaJet
Malta Finance PLC 144A |
|
6.38
|
2-1-2030
|
360,000
|
315,096
|
|
|
|
|
|
677,196
|
Electrical
equipment: 0.33% |
|
|
|
|
|
Sensata
Technologies BV 144A |
|
4.00
|
4-15-2029
|
220,000
|
194,033
|
Sensata
Technologies BV 144A |
|
5.88
|
9-1-2030
|
155,000
|
146,973
|
|
|
|
|
|
341,006
|
Trading
companies & distributors: 0.36% |
|
|
|
|
|
Fly
Leasing Limited 144A |
|
7.00
|
10-15-2024
|
430,000
|
373,063
|
Information
technology: 0.18% |
|
|
|
|
|
Technology
hardware, storage & peripherals: 0.18% |
|
|
|
|
|
Seagate
HDD |
|
4.13
|
1-15-2031
|
219,000
|
181,702
|
The accompanying notes are an integral part of these financial
statements.
Allspring Utilities and High Income
Fund | 19
Portfolio of
investments—February 28, 2023 (unaudited)
|
|
Interest
rate |
Maturity
date |
Principal
|
Value
|
Materials:
0.14% |
|
|
|
|
|
Containers
& packaging: 0.14% |
|
|
|
|
|
Ardagh
Packaging Finance plc 144A |
|
6.00%
|
6-15-2027
|
$ 155,000
|
$
150,000 |
Total
Yankee corporate bonds and notes (Cost $4,050,285) |
|
|
|
|
3,682,945
|
|
|
Yield
|
|
Shares
|
|
Short-term
investments: 1.14% |
|
|
|
|
|
Investment
companies: 1.14% |
|
|
|
|
|
Allspring
Government Money Market Fund Select Class ♠∞## |
|
4.39
|
|
1,179,171
|
1,179,171
|
Total
Short-term investments (Cost $1,179,171) |
|
|
|
|
1,179,171
|
Total
investments in securities (Cost $127,787,056) |
128.46%
|
|
|
|
133,355,628
|
Other
assets and liabilities, net |
(28.46)
|
|
|
|
(29,541,737)
|
Total
net assets |
100.00%
|
|
|
|
$103,813,891
|
†
|
Non-income-earning
security |
144A
|
The
security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
±
|
Variable
rate investment. The rate shown is the rate in effect at period end. |
<
|
All or a
portion of the position represents an unfunded loan commitment. The rate represents the current interest rate if the loan is partially funded. |
‡
|
Security
is valued using significant unobservable inputs. |
♦
|
The
security is fair valued in accordance with Allspring Funds Management's valuation procedures, as the Board-designated valuation designee. |
##
|
All or a
portion of this security is segregated for unfunded loans. |
♠
|
The
issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
∞
|
The rate
represents the 7-day annualized yield at period end. |
ʊ
|
Security
is perpetual in nature and has no stated maturity date. The date shown reflects the next call date. |
Abbreviations:
|
LIBOR
|
London
Interbank Offered Rate |
REIT
|
Real
estate investment trust |
SOFR
|
Secured
Overnight Financing Rate |
Investments in affiliates
An
affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same adviser or investment manager.
Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
|
Value,
beginning of period |
Purchases
|
Sales
proceeds |
Net
realized gains (losses) |
Net
change in unrealized gains (losses) |
Value,
end of period |
Shares,
end of period |
Income
from affiliated securities |
Short-term
investments |
|
|
|
|
|
|
|
Allspring
Government Money Market Fund Select Class |
$3,237,394
|
$8,033,974
|
$(10,092,197)
|
$0
|
$0
|
$1,179,171
|
1,179,171
|
$29,584
|
The accompanying notes are an integral part of these financial
statements.
20 | Allspring Utilities and High Income
Fund
Statement of assets and
liabilities—February 28, 2023 (unaudited)
|
|
Assets
|
|
Investments in unaffiliated securities, at value (cost
$126,607,885)
|
$
132,176,457 |
Investments in affiliated securities, at value (cost
$1,179,171)
|
1,179,171
|
Cash
|
43,995
|
Receivable for dividends and
interest
|
1,245,984
|
Receivable for investments
sold
|
249,902
|
Prepaid expenses and other
assets
|
11,509
|
Total
assets
|
134,907,018
|
Liabilities
|
|
Secured borrowing
payable
|
30,000,000
|
Dividends
payable
|
686,969
|
Payable for investments
purchased
|
306,202
|
Advisory fee
payable
|
53,075
|
Accrued expenses and other
liabilities
|
46,881
|
Total
liabilities
|
31,093,127
|
Total net
assets
|
$103,813,891
|
Net
assets consist of |
|
Paid-in
capital
|
$
103,151,704 |
Total distributable
earnings
|
662,187
|
Total net
assets
|
$103,813,891
|
Net
asset value per share |
|
Based on $103,813,891 divided by 9,292,262 shares issued and outstanding (unlimited number of shares
authorized)
|
$11.17
|
The accompanying notes are an integral part of these financial
statements.
Allspring Utilities and High Income
Fund | 21
Statement of
operations—six months ended February 28, 2023 (unaudited)
|
|
Investment
income |
|
Interest
|
$
1,509,906 |
Dividends
|
1,431,437
|
Income from affiliated
securities
|
29,584
|
Total investment
income
|
2,970,927
|
Expenses
|
|
Advisory
fee
|
350,552
|
Administration
fee
|
35,055
|
Custody and accounting
fees
|
9,935
|
Professional
fees
|
74,961
|
Shareholder report
expenses
|
29,396
|
Trustees’ fees and
expenses
|
10,625
|
Transfer agent
fees
|
17,137
|
Interest
expense
|
670,173
|
Other fees and
expenses
|
10,550
|
Total
expenses
|
1,208,384
|
Net investment
income
|
1,762,543
|
Realized
and unrealized gains (losses) on investments |
|
Net realized losses on
investments
|
(1,225,591)
|
Net change in unrealized gains (losses) on
investments
|
(12,694,820)
|
Net realized and unrealized gains (losses) on
investments
|
(13,920,411)
|
Net decrease in net assets resulting from
operations
|
$(12,157,868)
|
The accompanying notes are an integral part of these
financial statements.
22 | Allspring Utilities and High Income
Fund
Statement of changes in net
assets
|
|
|
|
Six
months ended February 28, 2023 (unaudited) |
Year
ended August 31, 2022 |
Operations
|
|
|
Net investment
income
|
$
1,762,543 |
$
4,028,760 |
Net realized losses on
investments
|
(1,225,591)
|
(94,809)
|
Net change in unrealized gains (losses) on
investments
|
(12,694,820)
|
858,474
|
Net increase (decrease) in net assets resulting from
operations
|
(12,157,868)
|
4,792,425
|
Distributions
to shareholders from |
|
|
Net investment income and net realized
gains
|
(4,187,935)
|
(4,273,223)
|
Tax basis return of
capital
|
0
|
(4,078,136)
|
Total distributions to
shareholders
|
(4,187,935)
|
(8,351,359)
|
Capital
share transactions |
|
|
Net asset value of common shares issued under the Automatic Dividend Reinvestment
Plan
|
0
|
108,832
|
Total decrease in net
assets
|
(16,345,803)
|
(3,450,102)
|
Net
assets |
|
|
Beginning of
period
|
120,159,694
|
123,609,796
|
End of
period
|
$103,813,891
|
$120,159,694
|
The accompanying notes are an integral part of these financial
statements.
Allspring Utilities and High Income
Fund | 23
Statement of cash
flows—six months ended February 28, 2023 (unaudited)
|
|
Cash
flows from operating activities: |
|
Net decrease in net assets resulting from
operations
|
$(12,157,868)
|
Adjustments
to reconcile net decrease in net assets from operations to net cash provided by operating activities: |
|
Purchase of long-term
securities
|
(13,602,466)
|
Proceeds from the sales of long-term
securities
|
14,071,555
|
Amortization,
net
|
110,762
|
Purchases and sales of short-term securities,
net
|
2,058,223
|
Decrease in receivable for investments
sold
|
43,960
|
Decrease in receivable for dividends and
interest
|
67,354
|
Increase in prepaid expenses and other
assets
|
(8,449)
|
Decrease in payable for investments
purchased
|
(259,868)
|
Decrease in advisory fee
payable
|
(12,363)
|
Increase in accrued expenses and other
liabilities
|
19,536
|
Net realized losses on
investments
|
1,225,591
|
Net change in unrealized gains (losses) on
investments
|
12,694,820
|
Net cash provided by operating
activities
|
4,250,787
|
Cash
flows from financing activities: |
|
Cash distributions
paid
|
(4,206,792)
|
Net cash used in financing
activities
|
(4,206,792)
|
Net increase in
cash
|
43,995
|
Cash:
|
|
Beginning of
period
|
0
|
End of
period
|
$
43,995 |
Supplemental
cash disclosure |
|
Cash paid for
interest
|
$
413,317 |
The accompanying notes are an integral part of these
financial statements.
24 | Allspring Utilities and High Income
Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended August 31 |
|
Six
months ended February 28, 2023 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$12.93
|
$13.31
|
$12.00
|
$12.94
|
$12.43
|
$13.48
|
Net investment
income
|
0.19
|
0.43
|
0.33
|
0.37
|
0.80
|
0.85
|
Net realized and unrealized gains (losses) on
investments
|
(1.50)
|
0.09
|
1.84
|
(0.36)
|
0.61
|
(1.00)
|
Total from investment
operations
|
(1.31)
|
0.52
|
2.17
|
0.01
|
1.41
|
(0.15)
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
(0.45)
|
(0.46)
|
(0.46)
|
(0.41)
|
(0.85)
|
(0.90)
|
Net realized
gains
|
0.00
|
0.00
|
(0.11)
|
(0.04)
|
0.00
|
0.00
|
Tax basis return of
capital
|
0.00
|
(0.44)
|
(0.29)
|
(0.50)
|
(0.05)
|
0.00
|
Total distributions to
shareholders
|
(0.45)
|
(0.90)
|
(0.86)
|
(0.95)
|
(0.90)
|
(0.90)
|
Net asset value, end of
period
|
$11.17
|
$12.93
|
$13.31
|
$12.00
|
$12.94
|
$12.43
|
Market value, end of
period
|
$10.55
|
$12.34
|
$14.71
|
$12.78
|
$13.03
|
$12.65
|
Total return based on market
value1
|
(11.03)%
|
(10.17)%
|
23.02%
|
5.72%
|
10.70%
|
1.85%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Net
expenses2
|
2.19%
|
1.25%
|
1.09%
|
1.35%
|
1.63%
|
1.42%
|
Net investment
income
|
3.19%
|
3.34%
|
3.49%
|
3.21%
|
6.60%
|
6.51%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
10%
|
23%
|
34%
|
68%
|
131%
|
109%
|
Net assets, end of period (000s
omitted)
|
$103,814
|
$120,160
|
$123,610
|
$111,277
|
$119,820
|
$114,992
|
Borrowings outstanding, end of period (000s
omitted)
|
$30,000
|
$30,000
|
$25,000
|
$22,000
|
$22,000
|
$22,000
|
Asset coverage per $1,000 of borrowing, end of
period
|
$4,460
|
$5,005
|
$5,944
|
$6,058
|
$6,446
|
$6,227
|
1 |
Total
return is calculated assuming a purchase of common stock on the first day and a sale on the last day of the period reported. Dividends and distributions, if any, are assumed for purposes of these calculations to be reinvested at prices obtained
under the Fund’s Automatic Dividend Reinvestment Plan. Total return does not reflect brokerage commissions that a shareholder would pay on the purchase and sale of shares. |
2 |
Ratios
include interest expense relating to interest associated with borrowings and/or leverage transactions as follows: |
Six
months ended February 28, 2023 (unaudited) |
1.21%
|
Year
ended August 31, 2022 |
0.32%
|
Year
ended August 31, 2021 |
0.17%
|
Year
ended August 31, 2020 |
0.41%
|
Year
ended August 31, 2019 |
0.59%
|
Year
ended August 31, 2018 |
0.46%
|
The accompanying notes are an integral part of these financial
statements.
Allspring Utilities and High Income
Fund | 25
Notes to financial statements
(unaudited)
1. ORGANIZATION
Allspring Utilities and High Income Fund (the
“Fund”) was organized as a statutory trust under the laws of the state of Delaware on February 4, 2004. Originally classified as non-diversified, the Fund was reclassified as a diversified closed-end management investment company in
September 2014. As an investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”), the Fund follows the accounting and reporting guidance in Financial Accounting Standards Board
(“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are
consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
All investments are valued each business day as of the close of regular
trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities that are listed on a foreign or domestic
exchange or market are valued at the official closing price or, if none, the last sales price.
Debt securities are valued at the evaluated bid price provided
by an independent pricing service (e.g. taking into account various factors, including yields, maturities, or credit ratings) or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Investments in registered open-end investment companies (other
than those listed on a foreign or domestic exchange or market) are valued at net asset value.
Investments which are not valued using the methods discussed
above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC ("Allspring Funds Management"), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds
Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any
actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of
valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio
of investments.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis.
The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund's commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market
daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Loans
The Fund may invest in direct debt instruments which are interests in amounts
owed to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Investments in loans may be in the form of participations in loans or assignments of all
or a portion of loans from third parties. When the Fund purchases participations, it generally has no rights to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund assumes the credit risk of both the
borrower and the lender that is selling the participation. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan and may enforce compliance by the borrower with the terms of the loan agreement.
Loans may include fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or
losses are recorded on the basis of identified cost.
26 | Allspring Utilities and High Income
Fund
Notes to financial statements
(unaudited)
Interest income is accrued daily and bond discounts are
accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been
determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed
from non-accrual status.
Dividend income is recognized on
the ex-dividend date.
Distributions to
shareholders
Under a managed distribution plan, the Fund pays monthly
distributions to shareholders at an annual minimum fixed rate of 7% based on the Fund’s average monthly net asset value per share over the prior 12 months. The monthly distributions may be sourced from income, paid-in capital, and/or capital
gains, if any. To the extent that sufficient investment income is not available on a monthly basis, the Fund may distribute paid-in capital and/ or capital gains, if any, in order to maintain its managed distribution level.
Distributions to shareholders from net investment income and
net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the
time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of
capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by
distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly,
no provision for federal income taxes was required.
The
Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund's tax
positions taken on federal, state, and foreign tax returns, as applicable, for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of February 28, 2023, the aggregate cost of all investments
for federal income tax purposes was $128,047,049 and the unrealized gains (losses) consisted of:
Gross
unrealized gains |
$12,835,982
|
Gross
unrealized losses |
(7,527,403)
|
Net
unrealized gains |
$
5,308,579 |
As of August 31, 2022, the Fund had capital loss carryforwards
which consisted of $208,078 in short-term capital losses.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a
framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the
fair value measurement. The inputs are summarized into three broad levels as follows:
■
|
Level 1 – quoted prices
in active markets for identical securities |
■
|
Level 2 – other
significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
■
|
Level 3
– significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in
securities are not necessarily an indication of the risk associated with investing in those securities.
Allspring Utilities and High Income
Fund | 27
Notes to financial statements
(unaudited)
The following is a summary of the inputs used in valuing the
Fund’s assets and liabilities as of February 28, 2023:
|
Quoted
prices (Level 1) |
Other
significant observable inputs (Level 2) |
Significant
unobservable inputs (Level 3) |
Total
|
Assets |
|
|
|
|
Investments
in: |
|
|
|
|
Common
stocks |
|
|
|
|
Energy
|
$
153,938 |
$
0 |
$
0 |
$
153,938 |
Financials
|
53,571
|
0
|
0
|
53,571
|
Utilities
|
87,401,298
|
0
|
0
|
87,401,298
|
Corporate
bonds and notes |
0
|
38,132,501
|
0
|
38,132,501
|
Loans
|
0
|
2,247,337
|
504,867
|
2,752,204
|
Rights
|
|
|
|
|
Communication
services |
0
|
0
|
0
|
0
|
Yankee
corporate bonds and notes |
0
|
3,682,945
|
0
|
3,682,945
|
Short-term
investments |
|
|
|
|
Investment
companies |
1,179,171
|
0
|
0
|
1,179,171
|
Total
assets |
$88,787,978
|
$44,062,783
|
$504,867
|
$133,355,628
|
Additional sector, industry or
geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended February 28, 2023, the Fund did not
have any transfers into/out of Level 3.
4. TRANSACTIONS
WITH AFFILIATES
Advisory fee
Allspring Funds Management, a wholly owned subsidiary of Allspring Global
Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the adviser to the Fund and is entitled to receive a fee at an annual rate of 0.50% of the Fund’s
average daily total assets. Total assets consist of the net assets of the Fund plus borrowings or other leverage for investment purposes to the extent excluded in calculating net assets.
Allspring Funds Management has retained the services of a
subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of
Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate of 0.40% of the Fund’s average daily total assets.
Administration fee
Allspring Funds Management also serves as the administrator to the Fund,
providing the Fund with a wide range of administrative services necessary to the operation of the Fund. Allspring Funds Management is entitled to receive an annual administration fee from the Fund equal to 0.05% of the Fund’s average daily
total assets.
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain
affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current
market prices.
5. CAPITAL SHARE TRANSACTIONS
The Fund has authorized an unlimited number of shares with no
par value. For the six months ended February 28, 2023 and year ended August 31, 2022, the Fund issued 0 and 8,014 shares, respectively.
Under an open-market share repurchase program (the
“Buyback Program”), the Fund is authorized to repurchase up to 5% of its outstanding shares in open market transactions. The Fund’s Board of Trustees has delegated to Allspring Funds Management full discretion to administer the
Buyback Program including the determination of the amount and timing of repurchases in accordance with the best interests of the Fund and subject to applicable legal limitations. During the six months ended ended February 28, 2023, the Fund did not
repurchase any of its shares under the open-market share repurchase program.
28 | Allspring Utilities and High Income
Fund
Notes to financial statements
(unaudited)
6. BORROWINGS
The Fund has borrowed $30,000,000 through a revolving credit
facility administered by a major financial institution (the “Facility”). The Facility has a commitment amount of up to $30,000,000. The Fund is charged interest at the 1 Month London Interbank Offered Rate (LIBOR) plus a spread and a
commitment fee based on the unutilized amount of the commitment amount. With the market-wide transition away from LIBOR, when the 1 Month LIBOR ceases to be published (currently through June 30, 2023), the interest rate will transition to a spread
over the secured overnight financing rate (SOFR) rather than a spread over LIBOR. The financial institution holds a security interest in all the assets of the Fund as collateral for the borrowing. Based on the nature of the terms of the Facility and
comparative market rates, the carrying amount of the borrowings at February 28, 2023 approximates its fair value. If measured at fair value, the borrowings would be categorized as a Level 2 under the fair value hierarchy.
During the six months ended February 28, 2023, the Fund had
average borrowings outstanding of $30,000,000 at an average interest rate of 4.50% (annualized) and recorded interest in the amount of $670,173, which represents 1.21% of its average daily net assets (annualized).
7. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government
obligations (if any) and short-term securities, for the six months ended February 28, 2023 were $13,602,466 and $13,635,390, respectively.
As of February 28, 2023, the Fund had unfunded loan commitments
of $258,731 with unrealized losses of $15,711.
8.
CONCENTRATION RISKS
As of the end of the period, the Fund
concentrated its portfolio of investments in the utilities sector. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted
in any sector.
9. MARKET RISKS
On March 11, 2020, the World Health Organization announced that
it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general.
There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial
markets.
10. INDEMNIFICATION
Under the Fund's organizational documents, the officers and
Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification
rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into
contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
11. SUBSEQUENT DISTRIBUTIONS
Under the managed distribution plan, the Fund declared the
following distributions to common shareholders:
Declaration
date |
Record
date |
Payable
date |
Per
share amount |
March 1, 2023
|
March 13, 2023
|
April 3, 2023
|
$0.07342
|
March 31, 2023
|
April 14, 2023
|
May 1, 2023
|
0.07292
|
These distributions are not
reflected in the accompanying financial statements.
Allspring Utilities and High Income
Fund | 29
Other information
(unaudited)
PROXY VOTING INFORMATION
A description of the policies and procedures used to determine
how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at allspringglobal.com, or
visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at
allspringglobal.com or by visiting the SEC website at sec.gov.
ANNUAL MEETING OF SHAREHOLDERS
On December 5, 2022, an Annual Meeting of Shareholders for the
Fund was held to consider the following proposal. The results of the proposal are indicated below.
Proposal 1 – Election of
trustees:
Shares
voted “For” |
Timothy
J. Penny |
6,774,257
|
Shares
voted “Withhold” |
|
316,756
|
Shares
voted “For” |
James
G. Polisson |
6,779,751
|
Shares
voted “Withhold” |
|
311,262
|
Shares
voted “For” |
Pamela
Wheelock |
6,690,293
|
Shares
voted “Withhold” |
|
400,720
|
QUARTERLY PORTFOLIO HOLDINGS
INFORMATION
The Fund files its complete schedule of
portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
DELAWARE STATUTORY TRUST ACT – CONTROL SHARE
ACQUISITIONS
Because the Fund is organized as a Delaware
statutory trust, it is subject to the control share acquisition statute (the “Control Share Statute”) contained in Subchapter III of the Delaware Statutory Trust Act (the “DSTA”), which became automatically applicable to
listed closed-end funds, such as the Fund, upon its effective date of August 1, 2022 (the “Effective Date”).
The Control Share Statute provides for a series of voting power
thresholds above which shares are considered control shares. The first such threshold is 10% or more, but less than 15%, of all voting power. Voting power is defined by the Control Share Statute as the power to directly or indirectly exercise or
direct the exercise of the voting power of Fund shares in the election of trustees. Whether a voting power threshold is met is determined by aggregating the holdings of the acquirer as well as those of its “associates,” as defined by the
Control Share Statute.
Once a threshold is reached, an
acquirer has no voting rights under the DSTA or the governing documents of the Fund with respect to shares acquired in excess of that threshold (i.e., the “control shares”) unless approved by shareholders or exempted by the Fund’s
Board of Trustees. Approval by shareholders requires the affirmative vote of two-thirds of all votes entitled to be cast on the matter, excluding shares held by the acquirer and its associates as well as shares held by certain insiders of the Fund.
The Control Share Statute provides procedures for an acquirer to request a shareholder meeting for the purpose of considering whether voting rights shall be accorded to control shares. Further approval by the Fund’s shareholders would be
required with respect to additional acquisitions of control shares above the next applicable threshold level. In addition, the Fund’s Board of Trustees is permitted, but not obligated, to exempt specific acquisitions or classes of acquisitions
of control shares, either in advance or retroactively.
The Control Share Statute does not retroactively apply to
acquisitions of shares that occurred prior to the Effective Date. However, such shares will be aggregated with any shares acquired after the Effective Date for purposes of determining whether a voting power threshold is exceeded, resulting in the
newly acquired shares constituting control shares.
The
Control Share Statute requires shareholders to disclose to the Fund any control share acquisition within 10 days of such acquisition and, upon request, to provide any information that the Fund’s Board of Trustees reasonably believes is
necessary or desirable to determine whether a control share acquisition has occurred.
The foregoing is only a summary of certain aspects of the
Control Share Statute. Shareholders should consult their own legal counsel to determine the application of the Control Share Statute with respect to their shares of the Fund and any subsequent acquisitions of shares.
30 | Allspring Utilities and High Income
Fund
Other information
(unaudited)
BOARD OF TRUSTEES AND OFFICERS
The following table provides basic information about the Board
of Trustees (the “Trustees”) and Officers of the Fund. Each of the Trustees and Officers listed below acts in identical capacities for each fund in the Allspring family of funds, which consists of 127 mutual funds comprising the
Allspring Funds Trust, Allspring Variable Trust, Allspring Master Trust, and four closed-end funds, including the Fund (collectively the “Fund Complex”). The mailing address of each Trustee and Officer is 1415 Vantage Park Drive, 3rd
Floor, Charlotte, NC 28203. The Board of Trustees is classified into three classes of which one is elected annually. Each Trustee serves a three-year term concurrent with the class from which the Trustee is elected. Each Officer serves an indefinite
term.
Independent Trustees
Name
and year of birth |
Position
held and length of service* |
Principal
occupations during past five years or longer |
Current
other public company or investment company directorships |
Class
I - Non-Interested Trustees to serve until 2023 Annual Meeting of Shareholders |
Isaiah
Harris, Jr. (Born 1952) |
Trustee,
since 2009; Audit Committee Chair, since 2019 |
Retired.
Member of the Advisory Board of CEF of East Central Florida. Chairman of the Board of CIGNA Corporation from 2009 to 2021, and Director from 2005 to 2008. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of
BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board
of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Fellowship of Christian Athletes. Mr. Harris is a certified public
accountant (inactive status). |
N/A
|
David
F. Larcker (Born 1950) |
Trustee,
since 2009 |
Distinguished
Visiting Fellow at the Hoover Institution since 2022. James Irvin Miller Professor of Accounting at the Graduate School of Business (Emeritus), Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The
Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of
Pennsylvania from 1985 to 2005. |
N/A
|
Olivia
S. Mitchell (Born 1953) |
Trustee,
since 2006; Nominating and Governance Committee Chair, since 2018 |
International
Foundation of Employee Benefit Plans Professor since 1993, Wharton School of the University of Pennsylvania. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at
the National Bureau of Economic Research. Previously taught at Cornell University from 1978 to 1993. |
N/A
|
Allspring Utilities and High Income
Fund | 31
Other information
(unaudited)
Name
and year of birth |
Position
held and length of service* |
Principal
occupations during past five years or longer |
Current
other public company or investment company directorships |
Class
II - Non-Interested Trustees to serve until 2024 Annual Meeting of Shareholders |
William
R. Ebsworth (Born 1957) |
Trustee,
since 2015 |
Retired.
From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity
Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity
Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Foundation (non-profit organization). Mr. Ebsworth is a CFA®
charterholder. |
N/A
|
Jane
A. Freeman (Born 1953) |
Trustee,
since 2015; Chair Liaison, since 2018 |
Retired.
From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller
& Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to
2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. |
N/A
|
Class
III - Non-Interested Trustees to serve until 2025 Annual Meeting of Shareholders |
Timothy
J. Penny (Born 1951) |
Trustee,
since 1996; Chair, since 2018 |
President
and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member
of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, from 2007-2022. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. |
N/A
|
James
G. Polisson (Born 1959) |
Trustee,
since 2018 |
Retired.
Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing
Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee
of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to
2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. |
N/A
|
Pamela
Wheelock (Born 1959) |
Trustee,
since January 2020; previously Trustee from January 2018 to July 2019 |
Retired.
Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer,
Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial
Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. |
N/A
|
* Length of service dates reflect the
Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
32 | Allspring Utilities and High Income
Fund
Other information
(unaudited)
Officers1
Name
and year of birth |
Position
held and length of service |
Principal
occupations during past five years or longer |
Andrew
Owen (Born 1960) |
President,
since 2017 |
President
and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring
Funds Management, LLC, from 2019 to 2022 and Head of Affiliated Managers, Allspring Global Investments, from 2014 to 2019 and Executive Vice President responsible for marketing, investments and product development for Allspring Funds Management,
LLC, from 2009 to 2014. |
Jeremy
DePalma (Born 1974) |
Treasurer,
since 2012 (for certain funds in the Fund Complex); since 2021 (for the remaining funds in the Fund Complex) |
Senior
Vice President of Allspring Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
|
Christopher
Baker (Born 1976) |
Chief
Compliance Officer, since 2022 |
Global
Chief Compliance Officer for Allspring Global Investments since 2022. Prior thereto, Chief Compliance Officer for State Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment
Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015 Vice President, Global Head of Investment and Marketing Compliance for State Street Global Advisors. |
Matthew
Prasse (Born 1983) |
Chief
Legal Officer, since 2022; Secretary, since 2021 |
Senior
Counsel of the Allspring Legal Department since 2021. Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021. Previously, Counsel for Barings LLC from 2015 to 2018. Prior to joining Barings, Associate at Morgan, Lewis & Bockius
LLP from 2008 to 2015. |
1 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to
2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
Allspring Utilities and High Income
Fund | 33
Automatic dividend reinvestment
plan
AUTOMATIC DIVIDEND REINVESTMENT PLAN
All common shareholders are eligible to participate in the
Automatic Dividend Reinvestment Plan (“the Plan”). Pursuant to the Plan, unless a common shareholder is ineligible or elects otherwise, all cash dividends and capital gains distributions are automatically reinvested by Computershare
Trust Company, N.A., as agent for shareholders in administering the Plan (“Plan Agent”), in additional common shares of the Fund. Whenever the Fund declares an ordinary income dividend or a capital gain dividend (collectively referred to
as “dividends”) payable either in shares or in cash, nonparticipants in the Plan will receive cash, and participants in the Plan will receive the equivalent in common shares. The shares are acquired by the Plan Agent for the
participant’s account, depending upon the circumstances described below, either (i) through receipt of additional unissued but authorized common shares from the Fund (“newly issued common shares”) or (ii) by purchase of outstanding
common shares on the open-market (open-market purchases) on the NYSE Amex or elsewhere. If, on the payment date for any dividend or distribution, the net asset value per share of the common shares is equal to or less than the market price per common
share plus estimated brokerage commissions (“market premium”), the Plan Agent will invest the amount of such dividend or distribution in newly issued shares on behalf of the participant. The number of newly issued common shares to be
credited to the participant’s account will be determined by dividing the dollar amount of the dividend by the net asset value per share on the date the shares are issued, provided that the maximum discount from the then current market price
per share on the date of issuance may not exceed 5%. If on the dividend payment date the net asset value per share is greater than the market value (“market discount”), the Plan Agent will invest the dividend amount in shares acquired on
behalf of the participant in open-market purchases. There will be no brokerage charges with respect to shares issued directly by the Fund as a result of dividends or capital gains distributions payable either in shares or in cash. However, each
participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open-market purchases in connection with the reinvestment of dividends. The automatic reinvestment of dividends and distributions will not
relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such dividends. All correspondence concerning the Plan should be directed to the Plan Agent at P.O. Box 505000, Louisville, Kentucky
40233 or by calling 1-800-730-6001.
34 | Allspring Utilities and High Income
Fund
Transfer Agent, Registrar, Shareholder Servicing
Agent
& Dividend Disbursing Agent
Computershare Trust
Company, N.A.
P.O. Box 505000
Louisville, Kentucky 40233
1-800-730-6001
Website:
allspringglobal.com
Allspring Global
InvestmentsTM 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).
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.
© 2023 Allspring Global Investments Holdings, LLC. All
rights reserved.
ALL-03102023-ckpmeg2b 04-23
SARERH 02-23