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Allspring Funds Management Resumes Share Repurchase Programs for Closed-End Funds

Allspring Funds Management has officially unveiled plans to renew its open-market share repurchase programs for its closed-end funds. This announcement reflects the firm's ongoing commitment to enhancing shareholder value and addressing market needs effectively. The latest programs involve four specific funds that aim to buy back a portion of their outstanding shares, signaling confidence in their long-term strategies and investment philosophies.

The Funds Involved

The four Allspring closed-end funds impacted by this decision include:

• - Allspring Global Dividend Opportunity Fund (NYSE: EOD)
• - Allspring Income Opportunities Fund (NYSE American: EAD)
• - Allspring Multi-Sector Income Fund (NYSE American: ERC)
• - Allspring Utilities and High Income Fund (NYSE American: ERH)

Each fund's Board of Trustees has authorized the repurchase of up to 5% of each fund's outstanding shares during the upcoming period beginning January 1, 2026, and concluding on December 31, 2026. This initiative marks a continuation of strategies previously authorized to repurchase shares during the 2025 calendar year, demonstrating the firm's proactive approach in managing its funds.

Oversight and Management

Allspring Funds Management, LLC has been granted the authority to determine the preferred timing and quantity of repurchases, ensuring alignment with the best interests of the funds. The Board of Trustees retains oversight responsibilities, receiving periodic updates on repurchase activities and making future renewal decisions based on performance and market conditions.

In reviewing the previous year's actions, the Allspring Income Opportunities Fund successfully repurchased 104,579 shares, representing 1.17% of its outstanding shares by October 31, 2025. In contrast, the EOD, ERC, and EAD funds did not engage in any share repurchases last year.

Fund Objectives and Characteristics

Each of the Allspring closed-end funds has distinct investment objectives aligned with their respective strategies:

• - Allspring Income Opportunities Fund: A high-yield bond fund primarily focused on generating a high level of current income, with a potential secondary goal of capital appreciation.
• - Allspring Multi-Sector Income Fund: Aiming for a robust level of current income while mitigating exposure to domestic interest rate risks.
• - Allspring Utilities and High Income Fund: This fund targets both high current income and moderate capital growth while prioritizing tax-advantaged dividend income.
• - Allspring Global Dividend Opportunity Fund: Seeking to achieve a high current income with long-term capital growth as a secondary objective, offering versatility for investors.

As a closed-end fund, shares of these funds are traded on stock exchanges and may experience price fluctuations relative to their net asset value. The decision to repurchase shares, understanding that prices might trade at a premium or discount, exhibits a strategic response to market variables.

Market Implications and Risks

Investing in closed-end funds involves specific risks. Equity securities can fluctuate based on issuer-specific factors, and the nature of debt securities entails both credit and interest rate risks. Furthermore, engagement in high-yield or unrated securities corresponds with increased volatility and higher default risk. Given their operational structure, these funds utilize leverage, heightening the potential for greater fluctuations in net asset value and market share prices.

The increasing complexity of global markets introduces additional hazards, particularly regarding foreign investments, which may confront variables like political turbulence and currency destabilization. The impact of these factors may vary, especially in developing markets where risks can be magnified. Special circumstances associated with investing in small- and mid-cap securities should also be factored into investment decisions.

As these funds embark on the renewed repurchase programs, investors should maintain an analytical perspective, carefully weighing the benefits against the inherent risks associated with closed-end fund investments. With Allspring's strategy focused on shareholder value, it will be interesting to observe how these initiatives unfold in the current market landscape.

For further information regarding Allspring's closed-end funds, please visit Allspring’s official website.