Wells Fargo Utilities and High Income Fund Announces Sources of Distribution | Business

SAN FRANCISCO–(BUSINESS WIRE)–Dec 1, 2020–

The Wells Fargo Utilities and Excessive Earnings Fund (NYSE American: ERH) launched details about the sources of at present’s distribution in a Discover offered to shareholders. The complete textual content of the Discover is on the market under and on the Wells Fargo Asset Administration website.

IMPORTANT NOTICE TO SHAREHOLDERS

This Discover gives details about the sources of the Fund’s month-to-month distributions. You shouldn’t draw any conclusions concerning the Fund’s funding efficiency from the quantity of this distribution or from the phrases of the Fund’s Managed Distribution Plan.

The Fund estimates that it has distributed greater than its revenue and web realized capital good points; due to this fact, a portion of your distribution could also be a return of capital. A return of capital might happen, for instance, when some or the entire cash that you simply invested within the Fund is paid again to you. A return of capital distribution doesn’t essentially replicate the Fund’s funding efficiency and shouldn’t be confused with “yield” or “revenue.”

The quantities and sources of distributions reported on this Discover are solely estimates and usually are not being offered for tax reporting functions. Sources embody web funding revenue (NII), short-term capital good points (ST), long-term capital good points (LT) and paid-in capital. The precise quantities and sources of the quantities for tax reporting functions will rely upon the Fund’s funding expertise in the course of the the rest of its fiscal yr and could also be topic to adjustments based mostly on tax laws. The Fund will ship you a Kind 1099-DIV for the calendar yr that can let you know the way to report these distributions for federal revenue tax functions.

The next desk gives an estimate of the Fund’s distribution sources, reflecting the fiscal year-to-date cumulative quantity of distributions. The Fund attributes these estimates equally to every common distribution all year long. Consequently, the estimated data as of the required month-end proven under is for the present distribution, and in addition represents an up to date estimate for all prior months within the yr.

The next desk gives data concerning distributions and complete return efficiency over numerous time intervals. This data is meant that will help you higher perceive whether or not returns for the required time intervals had been enough to satisfy distributions.

Extra Disclosures concerning the Wells Fargo Closed-Finish Funds

The fund makes distributions in accordance with a managed distribution plan that gives for the declaration of month-to-month distributions to frequent shareholders of the fund at an annual minimal fastened charge of seven.0%, based mostly on the fund’s common month-to-month web asset worth (NAV) per share over the prior 12 months. Below the managed distribution plan, distributions are sourced from revenue and in addition could also be sourced from paid-in capital and/or capital good points. The fund’s distributions in any interval could also be roughly than the web return earned by the fund on its investments and due to this fact shouldn’t be used as a measure of efficiency or confused with yield or revenue. Distributions in extra of fund returns will trigger the fund’s NAV to say no. Buyers mustn’t draw any conclusions concerning the fund’s funding efficiency from the quantity of its distribution or from the phrases of its managed distribution plan.

The quoted distribution charge is a determine that makes use of the fund’s earlier distribution to calculate an annualized determine. The distribution charge is calculated by annualizing the final distribution after which dividing by the period-ending NAV or market value. Particular distributions, together with particular capital good points distributions, usually are not included within the calculation.

The Wells Fargo Utilities and Excessive Earnings Fund is a closed-end fairness and high-yield bond fund. The fund’s funding goal is to hunt a excessive degree of present revenue and reasonable capital development with an emphasis on offering tax-advantaged dividend revenue.

The ultimate dedication of the supply of all dividend distributions within the present yr will probably be made after year-end. The precise quantities and sources of the quantities for tax-reporting functions will rely upon a fund’s funding expertise in the course of the the rest of the fiscal yr and could also be topic to vary based mostly on tax laws. Every fund will ship shareholders a Kind 1099-DIV for the calendar yr that can inform shareholders the way to report these distributions for federal revenue tax functions.

For extra data on Wells Fargo’s closed-end funds, please visit our website.

This closed-end fund is now not obtainable as an preliminary public providing and is just provided by means of broker-dealers on the secondary market. A closed-end fund shouldn’t be required to purchase its shares again from traders upon request. Shares of the fund might commerce at both a premium or low cost relative to the fund’s web asset worth, and there will be no assurance that any low cost will lower. The values of, and/or the revenue generated by, securities held by the fund might decline resulting from normal market situations or different elements, together with these instantly involving the issuers of such securities. Fairness securities fluctuate in worth in response to elements particular to the issuer of the safety. Debt securities are topic to credit score threat and rate of interest threat, and excessive yield securities and unrated securities of comparable credit score high quality have a a lot larger threat of default and their values are usually extra unstable than higher-rated securities with comparable maturities. The fund can be topic to dangers related to any focus of its investments within the utility sector. Funds that focus their investments in a single business or sector might face elevated threat of value fluctuation resulting from adversarial developments inside that business or sector. The fund is leveraged by means of a revolving credit score facility and in addition might incur leverage by issuing most popular shares sooner or later. The usage of leverage ends in sure dangers, together with, amongst others, the chance of larger volatility of web asset worth and the market value of frequent shares. International investments might comprise extra threat because of the inherent dangers related to altering political climates, international market instability, and international foreign money fluctuations. Derivatives contain further dangers, together with rate of interest threat, credit score threat, the danger of improper valuation, and the danger of noncorrelation to the related devices they’re designed to hedge or intently observe.

Wells Fargo Asset Administration (WFAM) is the commerce identify for sure funding advisory/administration companies owned by Wells Fargo & Firm. These companies embody however usually are not restricted to Wells Capital Administration Included and Wells Fargo Funds Administration, LLC. Sure merchandise managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker-dealer and Member FINRA).

This materials is for normal informational and academic functions solely and is NOT supposed to supply funding recommendation or a suggestion of any variety—together with a suggestion for any particular funding, technique, or plan.

A number of the data contained herein might embody forward-looking statements concerning the anticipated funding actions of the funds. These statements present no assurance as to the funds’ precise funding actions or outcomes. Readers should make their very own evaluation of the knowledge contained herein and contemplate such different elements as they could deem related to their particular person circumstances. PAR-1120-00892

INVESTMENT PRODUCTS: NOT FDIC INSURED ● NO BANK GUARANTEE ● MAY LOSE VALUE

WF-CF

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CONTACT: Media

Robert Julavits, 917-260-2448

robert.w.julavits@wellsfargo.comShareholder inquiries

1-800-730-6001Financial advisor inquiries

1-888-877-9275

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: FINANCE BANKING ENERGY PROFESSIONAL SERVICES UTILITIES

SOURCE: Wells Fargo & Firm

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PUB: 12/01/2020 04:07 PM/DISC: 12/01/2020 04:07 PM

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