Allspring Multi-Sector Income Fund Announces Change to Managed Distribution Plan

CHARLOTTE, North Carolina, August 17, 2022 /PRNewswire/ — Allspring Multi-Sector Income Fund (NYSE American: ERC), a closed-end fund, today announced that the fund’s board of directors has approved a change to the fund’s managed distribution plan.

Workforce with distribution to be declared in August 2022, the plan will provide for the declaration of monthly distributions to common shareholders of the fund at a minimum annual fixed rate of 8% based on the average monthly net asset value (NAV) per share of the fund over the preceding 12 months. Under the Managed Distribution Plan, monthly distributions may be derived from income, paid-up capital and/or capital gains, as applicable. Shareholders may elect to reinvest distributions received under 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 while limiting its overall exposure to domestic interest rate risk.

Under the managed distribution plan, the fund will distribute available investment income to its shareholders on a monthly basis. 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 capital gains distributions to the extent of gains realized during the year. Any distribution in excess of both net investment income and realized gains will be treated as a return of capital. No conclusion should be drawn about the fund’s investment performance from the amount of the fund’s distributions or 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 directors. The Managed Distribution Plan will be subject to periodic review by the board of directors of the fund to determine whether the Managed Distribution Plan should be continued, modified or terminated. The board of directors of the fund may change the terms of the managed distribution plan or suspend or terminate the managed distribution plan at any time without notice to the shareholders of the fund. The modification 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 which will provide detailed information on the amount and composition of the distribution and other related information. The amounts and sources of distributions set forth in the notice are estimates only and are not provided for tax reporting purposes. Actual amounts and sources of amounts for tax reporting purposes will depend on the investment experience of the fund over its full financial year and may be subject to change. The fund will send shareholders a Form 1099-DIV for the calendar year that will instruct shareholders how to report such distributions for federal income tax purposes.

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This closed-end fund is no longer available as an initial public offering and is only offered through secondary market dealers. A closed-end fund is not required to redeem its shares from investors on demand. Shares of a fund may trade at a premium or discount to the net asset value of the fund, and there can be no assurance that any discount will decrease. The values ​​and/or income generated by the 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 are at much higher 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, instability of foreign markets and fluctuations in foreign currencies. Foreign investment risks are heightened in emerging or developing markets. The fund is exposed to mortgage-backed and asset-backed securities risk. This fund is financed by a revolving credit facility and may also take on leverage by issuing preferred shares in the future. The use of leverage involves certain risks, including, among other things, the likelihood of greater volatility in the net asset value and market price of the Common Shares. Derivatives involve additional risks, including interest rate risk, credit risk, risk of incorrect valuation and risk of mismatch with the relevant instruments they are designed to hedge or track.

Allspring Global Investments is the trading name for the asset management companies of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, LP These companies include, but are not limited to, Allspring Global Investments, LLC, and Allspring Fund Management, LLC. Certain products managed by Allspring Entities are distributed by Allspring Funds Distributor, LLC (a dealer and Member FINRA/SIPC). Galliard Capital Management, LLC (an investment adviser not part of the Allspring / GIPS company trade name) is associated with Allspring.

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 investment, strategy or specific plan.

Some of the information contained herein may include forward-looking statements about the planned investment activities of the funds. These statements do not provide any assurance as to the actual investment activities or results of the funds. Readers should make their own assessment of the information contained herein and consider any other factors they deem relevant to their personal circumstances.

SOURCEAllspring Global Investments