Wells Fargo Utilities and High Income Fund Announces Sources of Distribution
04 Februar 2020 - 10:46PM
Business Wire
The Wells Fargo Utilities and High Income Fund (NYSE American:
ERH) released information about the sources of the February 3,
2020, 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 year-to-date cumulative experience
through the month-end prior to the latest distribution. 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 12/31/2019
Current Month
Fiscal Year to Date Current
Month Estimated Sources of Distribution
Estimated Sources of Distribution
Estimated Percentages of Distribution Per
Share LT ST Paid
in Per Share LT
ST Paid in LT
ST Paid in Distribution
NII Gains Gains
Capital Distribution NII
Gains Gains Capital
NII Gains Gains
Capital ERH
0.07949
0.00000
0.07949
0.00000
0.00000
0.39075
0.13370
0.07949
0.00000
0.17789
0.0%
100.0%
0.0%
0.0%
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 12/31/2019
Annualized Cumulative
Quarterly Dist
Fiscal YTD
Dist
NAV
5-Year Return
on
NAV
Fiscal
YTD Dist Rate
on NAV1
Fiscal YTD Return
on
NAV
Fiscal
YTD Dist Rate
on NAV1
ERH
0.07949
0.39075
13.01
6.56%
7.17%
17.26%
2.60%
1 As a percentage of 12/31/2019 NAV
Additional Disclosures about the Wells Fargo Closed-End
Funds
The fund makes distribution 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 7.5%, 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 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 distributions is
subject to change and is made after year-end. The 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.
The fund is a closed-end fund that is no longer engaged in
initial public offerings, and shares are available only through
broker-dealers on the secondary market. Unlike an open-end
mutual fund, a closed-end fund offers a fixed number of shares for
sale. After the initial public offering, shares are bought and sold
through broker-dealers in the secondary marketplace, and the market
price of the shares is determined by supply and demand, not by NAV,
and is often lower than the NAV. A closed-end fund is not required
to buy its shares back from investors upon request.
High-yield, lower-rated bonds may contain more risk due to the
increased possibility of default. Foreign investments may contain
more risk due to the inherent risks associated with changing
political climates, foreign market instability, and foreign
currency fluctuations. Risks of international investing are
magnified in emerging or developing markets. Funds that concentrate
their investments in a single industry or sector may face increased
risk of price fluctuation over more diversified funds due to
adverse developments within that industry or sector. Small- and
mid-cap securities may be subject to special risks associated with
narrower product lines and limited financial resources compared
with their large-cap counterparts. When interest rates rise, the
value of debt securities tends to fall. When interest rates
decline, interest that a fund is able to earn on its investments in
debt securities also may decline, but the value of those securities
may increase. Changes in market conditions and government policies
may lead to periods of heightened volatility in the debt securities
market and reduced liquidity for certain fund investments. Interest
rate changes and their impact on the funds and their NAVs can be
sudden and unpredictable.
The use of leverage results in certain risks, including, among
others, the likelihood of greater volatility of the NAV and the
market price of common shares. 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 to closely track. There
are numerous risks associated with transactions in options on
securities. Illiquid securities may be subject to wide fluctuations
in market value and may be difficult to sell.
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 Incorporated 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-0220-03108
INVESTMENT PRODUCTS: NOT FDIC INSURED ● NO
BANK GUARANTEE ● MAY LOSE VALUE
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version on businesswire.com: https://www.businesswire.com/news/home/20200204006034/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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