Wells Fargo Utilities and High Income Fund Announces Sources of Distribution
October 01 2021 - 5:06PM
Business Wire
The Wells Fargo Utilities and High Income Fund (NYSE American:
ERH) released information about the sources of today’s distribution
in a Notice provided to shareholders. The full text of the Notice
is available below and on the Wells Fargo Asset Management
website.
IMPORTANT NOTICE TO SHAREHOLDERS
This Notice provides information about the sources of the Fund’s
monthly distributions. You should not draw any conclusions about
the Fund’s investment performance from the amount of this
distribution or from the terms of the Fund’s Managed Distribution
Plan.
The Fund estimates that it has distributed more than its income
and net realized capital gains; therefore, a portion of your
distribution may be a return of capital. A return of capital may
occur, for example, when some or all of the money that you invested
in the Fund is paid back to you. A return of capital distribution
does not necessarily reflect the Fund’s investment performance and
should not be confused with “yield” or “income.”
The amounts and sources of distributions reported in this Notice
are only estimates and are not being provided for tax reporting
purposes. Sources include net investment income (NII), short-term
capital gains (ST), long-term capital gains (LT) and paid-in
capital. The actual amounts and sources of the amounts for tax
reporting purposes will depend upon the Fund’s investment
experience during the remainder of its fiscal year and may be
subject to changes based on tax regulations. The Fund will send you
a Form 1099-DIV for the calendar year that will tell you how to
report these distributions for federal income tax purposes.
The following table provides an estimate of the Fund’s
distribution sources, reflecting the fiscal year-to-date cumulative
amount of distributions. The Fund attributes these estimates
equally to each regular distribution throughout the year.
Consequently, the estimated information as of the specified
month-end shown below is for the current distribution, and also
represents an updated estimate for all prior months in the
year.
Data as of 9/30/2021 Current Month Fiscal Year to
Date Current Month Estimated Sources of
Distribution Estimated Sources of Distribution
Estimated Percentages of Distribution
Per Share Distribution
NII
LT Gains
ST Gains
Paid in Capital
Per Share Distribution
NII
LT Gains
ST Gains
Paid in Capital
NII
LT Gains
ST Gains
Paid in Capital
ERH (FYE 8/31)
0.07314
0.03628
0.00511
0
0.03175
0.07314
0.03628
0.00511
0
0.03175
49.60%
7.00%
0.00%
43.40%
The following table provides information regarding distributions
and total return performance over various time periods. This
information is intended to help you better understand whether
returns for the specified time periods were sufficient to meet
distributions.
Data as of 8/31/2021
Annualized
Cumulative
5-Year
Fiscal YTD
Fiscal YTD
Fiscal YTD
Fiscal YTD Dist
NAV
Return on NAV
Dist Rate on
NAV1
Return on NAV
Dist Rate on NAV1
ERH (FYE 8/31)
0.85608
13.31
8.31%
6.43%
18.55%
6.43%
1 As a percentage of 8/31 NAV
Additional Disclosures about the Wells Fargo Closed-End
Funds
The fund makes distributions in accordance with a managed
distribution plan that provides for the declaration of monthly
distributions to common shareholders of the fund at an annual
minimum fixed rate of 7.0%, based on the fund’s average monthly net
asset value (NAV) per share over the prior 12 months. Under the
managed distribution plan, distributions are sourced from income
and also may be sourced from paid-in capital and/or capital gains.
The fund’s distributions in any period may be more or less than the
net return earned by the fund on its investments and therefore
should not be used as a measure of performance or confused with
yield or income. Distributions in excess of fund returns will cause
the fund’s NAV to decline. Investors should not draw any
conclusions about the fund’s investment performance from the amount
of its distribution or from the terms of its managed distribution
plan.
The quoted distribution rate is a figure that uses the fund’s
previous distribution to calculate an annualized figure. The
distribution rate is calculated by annualizing the last
distribution and then dividing by the period-ending NAV or market
price. Special distributions, including special capital gains
distributions, are not included in the calculation.
The Wells Fargo Utilities and High Income Fund is a closed-end
equity and high-yield bond fund. The fund’s investment objective is
to seek a high level of current income and moderate capital growth
with an emphasis on providing tax-advantaged dividend income.
The final determination of the source of all dividend
distributions in the current year will be made after year-end. The
actual amounts and sources of the amounts for tax-reporting
purposes will depend upon a fund’s investment experience during the
remainder of the fiscal year and may be subject to change based on
tax regulations. Each fund will send shareholders a Form 1099-DIV
for the calendar year that will tell shareholders how to report
these distributions for federal income tax purposes.
For more information on Wells Fargo’s closed-end funds, please
visit our website.
This closed-end fund is no longer available as an initial
public offering and is only offered through broker-dealers on the
secondary market. A closed-end fund is not required to buy its
shares back from investors upon request. Shares of the fund may
trade at either a premium or discount relative to the fund’s net
asset value, and there can be no assurance that any discount will
decrease. The values of, and/or the income generated by, securities
held by the fund may decline due to general market conditions or
other factors, including those directly involving the issuers of
such securities. Equity securities fluctuate in value in response
to factors specific to the issuer of the security. Debt securities
are subject to credit risk and interest rate risk, and high yield
securities and unrated securities of similar credit quality have a
much greater risk of default and their values tend to be more
volatile than higher-rated securities with similar maturities. The
fund is also subject to risks associated with any concentration of
its investments in the utility sector. Funds that concentrate their
investments in a single industry or sector may face increased risk
of price fluctuation due to adverse developments within that
industry or sector. The fund is leveraged through a revolving
credit facility and also may incur leverage by issuing preferred
shares in the future. The use of leverage results in certain risks,
including, among others, the likelihood of greater volatility of
net asset value and the market price of common shares. Foreign
investments may contain more risk due to the inherent risks
associated with changing political climates, foreign market
instability, and foreign currency fluctuations. Derivatives involve
additional risks, including interest rate risk, credit risk, the
risk of improper valuation, and the risk of noncorrelation to the
relevant instruments they are designed to hedge or closely
track.
Wells Fargo Asset Management (WFAM) is the trade name for
certain investment advisory/management firms owned by Wells Fargo
& Company. These firms include but are not limited to Wells
Capital Management, LLC and Wells Fargo Funds Management, LLC.
Certain products managed by WFAM entities are distributed by Wells
Fargo Funds Distributor, LLC (a broker-dealer and Member
FINRA).
This material is for general informational and educational
purposes only and is NOT intended to provide investment advice or a
recommendation of any kind—including a recommendation for any
specific investment, strategy, or plan.
Some of the information contained herein may include
forward-looking statements about the expected investment activities
of the funds. These statements provide no assurance as to the
funds’ actual investment activities or results. Readers must make
their own assessment of the information contained herein and
consider such other factors as they may deem relevant to their
individual circumstances.
PAR-0921-01099
INVESTMENT PRODUCTS: NOT FDIC INSURED ● NO
BANK GUARANTEE ● MAY LOSE VALUE
WF-CF
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version on businesswire.com: https://www.businesswire.com/news/home/20211001005732/en/
Media Jeanette Foster, 415-264-1323
jeanette.d.foster@wellsfargo.com
Shareholder inquiries 1-800-730-6001
Financial advisor inquiries 1-888-877-9275
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