CHARLOTTE, N.C., Aug. 17,
2022 /PRNewswire/ -- The Allspring Multi-Sector
Income Fund (NYSE American: ERC), a closed-end fund, announced
today that the fund's Board of Trustees has approved a change to
the fund's managed distribution plan.
Effective with the distribution to be declared in August 2022, the plan will provide for the
declaration of monthly distributions to common shareholders of the
fund at an annual minimum fixed rate of 8% based on the fund's
average monthly net asset value (NAV) per share over the prior 12
months. Under the managed distribution plan, monthly distributions
may be sourced from income, paid-in capital, and/or capital gains,
if any. Shareholders may elect to reinvest distributions received
pursuant to the managed distribution plan in the fund under the
existing dividend reinvestment plan, which is described in the
fund's shareholder reports.
The Allspring Multi-Sector Income Fund is a closed-end income
fund. The fund's investment objective is to seek a high level of
current income consistent with limiting its overall exposure to
domestic interest rate risk.
Under the managed distribution plan, the fund will distribute
available investment income to its shareholders monthly. If
sufficient investment income is not available on a monthly basis,
the fund will distribute long-term capital gains and/or return
capital to its shareholders in order to maintain its managed
distribution level. The fund expects that distributions under the
managed distribution plan may exceed investment income.
Distributions in excess of net investment income will be treated as
distributions of capital gains to the extent of realized gains
during the fiscal year. Any distributions in excess of both net
investment income and realized gains will be treated as returns of
capital. No conclusions should be drawn about the fund's investment
performance from the amount of the fund's distributions or from the
terms of the fund's managed distribution plan.
The amount distributed per share is subject to change at the
discretion of the fund's Board of Trustees. The managed
distribution plan will be subject to periodic review by the fund's
Board of Trustees to determine whether the managed distribution
plan should be continued, modified, or terminated. The fund's Board
of Trustees may amend the terms of the managed distribution plan or
suspend or terminate the managed distribution plan at any time
without prior notice to the fund's shareholders. The amendment or
termination of the managed distribution plan could have an adverse
effect on the market price of the fund's shares.
With each distribution that does not consist solely of net
investment income, the fund will issue a notice to shareholders
that will provide detailed information regarding the amount and
composition of the distribution and other related information. The
amounts and sources of distributions reported in the notice are
only estimates and are not being 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 full fiscal year and may be subject to
changes. 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 Allspring's closed-end funds, please
visit www.allspringglobal.com.
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 a 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.
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. 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
foreign investing are magnified in emerging or developing markets.
The fund is exposed to mortgage- and asset-backed securities risk.
This 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 the net asset value 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 closely track.
Allspring Global Investments™ 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).
Associated with Allspring is Galliard Capital Management, LLC (an
investment advisor that is not part of the Allspring trade
name/GIPS firm).
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.
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SOURCE Allspring Global Investments