ERH: All-Weather Strategy With Full Distribution Coverage And A Discount Valuation

2025-06-24 04:47:49 ET

The Allspring Utilities and High Income Fund ( ERH ) is a closed-end fund that income-seeking investors might find appealing, as it provides an interesting way to obtain a very high level of income from the assets that they already possess. As the name of the fund suggests, the Allspring Utilities and High Income Fund invests in a portfolio of both utility common equities and junk bonds. The majority of the fund’s assets are in utility companies, though, which is probably a good thing right now. As regular readers are likely aware, I have recently been warning against including any long-duration fixed-income assets in a portfolio due to fears that they will not be able to deliver a positive real return going forward. This has been the case with most long-term U.S. government bonds over the past ten years, as we can see here:

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