Wells Fargo Closed-End Funds Declare Monthly Distributions
September 24 2021 - 5:30PM
Business Wire
The Wells Fargo Income Opportunities Fund (NYSE American: EAD),
the Wells Fargo Multi-Sector Income Fund (NYSE American: ERC), and
the Wells Fargo Utilities and High Income Fund (NYSE American: ERH)
have each announced a distribution.
Ticker
Fund name
Distribution per share
Frequency
Change from prior
distribution
EAD
Wells Fargo Income Opportunities Fund
$0.05982
Monthly
+$0.00033
ERC
Wells Fargo Multi-Sector Income Fund
$0.09582
Monthly
+$0.00029
ERH
Wells Fargo Utilities and High Income
Fund
$0.07368
Monthly
+$0.00054
The following dates apply to today’s distribution declaration
for each fund:
Declaration date
September 24, 2021
Ex-dividend date
October 12, 2021
Record date
October 13, 2021
Payable date
November 1, 2021
These funds make 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 8% for the Wells Fargo Income Opportunities
Fund, 9% for the Wells Fargo Multi-Sector Income Fund, and 7% for
the Wells Fargo Utilities and High Income Fund 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 Income Opportunities Fund is a closed-end
high-yield bond fund. The fund’s investment objective is to seek a
high level of current income. The fund may, as a secondary
objective, seek capital appreciation to the extent it is consistent
with its investment objective.
The Wells Fargo 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.
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. 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.
These closed-end funds are no longer engaged in public offerings
and shares are available only 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 a 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.
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.
Each 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. There are
numerous risks associated with transactions in options on
securities.
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.
INVESTMENT PRODUCTS: NOT FDIC INSURED ● NO
BANK GUARANTEE ● MAY LOSE VALUE
PAR-0921-00713
WF-CF
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version on businesswire.com: https://www.businesswire.com/news/home/20210924005547/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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