SEC Form N-CSRS filed by Allspring Utilities and High Income Fund
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-21507
Allspring Utilities and High Income Fund
(Exact name of registrant as specified in charter)
1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203
(Address of principal executive offices) (Zip code)
Matthew Prasse
Allspring Funds Management, LLC
1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code: 800-222-8222
Date of fiscal year end: August 31
Date of reporting period: February 28, 2023
ITEM 1. REPORT TO STOCKHOLDERS
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Utilities and High Income Fund (ERH)
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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. |
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. |
President
Allspring Funds
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 |
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. |
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. |
* | 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. |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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) |
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 |
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 |
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% |
Gross unrealized gains | $12,835,982 |
Gross unrealized losses | (7,527,403) |
Net unrealized gains | $ 5,308,579 |
■ | 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) |
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 |
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 |
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 |
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 |
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 |
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. |
Agent & Dividend Disbursing Agent
P.O. Box 505000
Louisville, Kentucky 40233
1-800-730-6001
SARERH 02-23
ITEM 2. CODE OF ETHICS
=======================
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
=========================================
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
===============================================
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
==============================================
Not applicable.
ITEM 6. INVESTMENTS
====================
A Portfolio of Investments for Allspring Utilities and High Income Fund is included as part of the report to shareholders filed under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
===============================================================
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
=============================================================================
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMEENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
=============================================================================
Period |
(a) Total Number of Shares Purchased |
(b) Average Price Paid per Share |
(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
(d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs |
||||||||||||
9/1/2022 to 9/30/2022 |
0 | 0.00 | 0 | 928,809 | ||||||||||||
10/1/2022 to 10/31/22 |
0 | 0.00 | 0 | 928,809 | ||||||||||||
11/1/2022 to 11/30/2022 |
0 | 0.00 | 0 | 928,809 | ||||||||||||
12/1/2022 to 12/31/2022 |
0 | 0.00 | 0 | 928,809 | ||||||||||||
1/1/2023 to 1/31/2023 |
0 | 0.00 | 0 | 928,809 | ||||||||||||
2/1/2023 to 2/28/2023 |
0 | 0.00 | 0 | 928,809 | ||||||||||||
Total |
0 | 0.00 | 0 | 928,809 |
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.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
============================================================
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.
ITEM 11. CONTROLS AND PROCEDURES
=================================
(a) The President and Treasurer have concluded that the Allspring Utilities and High Income Fund disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the registrant is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.
(b) There were no significant changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the most recent fiscal half-year of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12. DISCLOSURES OF SECURITIES LENDING ACTIVITES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
====================================================================
Not applicable.
ITEM 13. EXHIBITS
=================
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Allspring Utilities and High Income Fund | ||
By: | /s/ Andrew Owen | |
Andrew Owen | ||
President | ||
Date: | April 26, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.
Allspring Utilities and High Income Fund | ||
By: | /s/ Andrew Owen | |
Andrew Owen | ||
President | ||
Date: | April 26, 2023 |
By: | /s/ Jeremy DePalma | |
Jeremy DePalma | ||
Treasurer | ||
Date: April 26, 2023 |