FT - ERH: Deep Discount Remains, Making This An Interesting Choice For Income Investors
2025-01-21 17:59:54 ET
Summary
- Allspring Utilities and High Income Fund offers a rather unique blend of utility stocks and high-yield debt investments under one roof.
- The ERH closed-end fund has seen respectable returns when compared to its peers over the long run, and it trades at a wider discount—though results against its blended benchmark have been weaker.
- ERH recently increased its managed distribution policy to 8% from the 7% managed distribution policy the fund had previously, seeing a fairly sizeable lift at the start of this year.
Written by Nick Ackerman, co-produced by Stanford Chemist.
Allspring Utilities and High Income Fund ( ERH ) is a closed-end fund, or CEF, that provides investors exposure to two steady streams of cash flows that are generally provided by utilities and high-yield fixed-income investments. This is a fairly unique mixture of investments, but there are a few CEFs that take a similar approach—and the mixture for an income-focused fund does seem to make sense....
ERH: Deep Discount Remains, Making This An Interesting Choice For Income Investors