Semi-Annual Report by Investment Company (Form N-CSRS)

Semi-Annual Report

February 28, 2026

 

Managed Distribution Plan

Pursuant to an exemptive order issued by the Securities and Exchange Commission ("Order"), the Fund is authorized to distribute long-term capital gains to shareholders more frequently than once per year. Pursuant to the Order, the Fund's Board of Trustees approved a Managed Distribution Plan ("MDP") for the Fund pursuant to which the Fund makes monthly cash distributions to common shareholders, stated in terms of a fixed amount per common share.

The Fund's Board has adopted a managed distribution plan for the Fund at an annual minimum fixed rate of 8% based on the Fund's average monthly NAV per share over the prior 12 months. The Fund makes distributions monthly. You should not draw any conclusions about the Fund's investment performance from the amount of these distributions or from the terms of the MDP. The MDP will be subject to regular periodic review by the Board and the Board may amend or terminate the MDP at any time without prior notice to Fund shareholders. However, at this time there are no reasonably foreseeable circumstances that might cause the termination of the MDP.

The Fund may distribute more than its income and net realized capital gains and, therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with 'yield' or 'income'.

With each distribution, the Fund will issue a notice to shareholders and a press release containing information about the amount and sources of the distribution and other related information. The amounts and sources of distributions reported in the notice and press release are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

Notice to Shareholders

On November 13, 2025, the Fund announced a renewal of its open-market share repurchase program (the "Buyback Program"). Under the renewed Buyback Program, the Fund may repurchase up to 5% of its outstanding shares in open market transactions during the period beginning on January 1, 2026 and ending on December 31, 2026. The Fund's Board of Trustees has delegated to Allspring Funds Management, LLC, the Fund's adviser, discretion to administer the Buyback Program, including the determination of the amount and timing of repurchases in accordance with the best interests of the Fund and subject to applicable legal limitations.

 

Performance highlights	2
Portfolio of investments	8
Financial statements
Statement of assets and liabilities	21
Statement of operations	22
Statement of changes in net assets	23
Statement of cash flows	24
Financial highlights	25
Notes to financial statements	26
Other information	30
Automatic dividend reinvestment plan	35

Performance highlights 

Investment objective	The Fund seeks a high level of current income and moderate capital growth, with an emphasis on providing tax-advantaged dividend income.
Strategy summary	The Fund allocates its assets between two separate investment strategies, or sleeves. Under normal market conditions, the Fund will allocate approximately 70% of its total assets to a sleeve that places a focus on common, preferred and convertible preferred stocks of utility companies and approximately 30% of its total assets to a sleeve of U.S. dollar denominated below investment grade (high yield) debt.
Adviser	Allspring Funds Management, LLC
Subadviser	Allspring Global Investments, LLC
Portfolio managers	Kent Newcomb, CFA, Michael J. Schueller, CFA, Andy Smith, CFA

 

Average annual total returns (%) as of February 28, 20261
	6 months	1 year	5 year	10 year
Based on market value	11.49	24.04	8.33	8.25
Based on net asset value (NAV)	12.61	21.91	11.73	9.22
ERH Blended Index2	11.27	18.87	11.22	9.96
Russell 3000 Index3	7.07	17.02	12.80	15.08

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Performance figures of the Fund do not reflect brokerage commissions that a shareholder would pay on the purchase and sale of shares. If taxes and such brokerage commissions had been reflected, performance would have been lower. To obtain performance information current to the most recent month-end, please call 1-800-222-8222.

The Fund's annualized expense ratio for the six months ended February 28, 2026, was 2.14% which includes 1.22% of interest expense.  

1	Total returns based on market value are calculated assuming a purchase of common stock on the first day and a sale on the last day of the period reported. Total returns based on NAV are calculated based on the NAV at the beginning of the period and at the end of the period. Dividends and distributions, if any, are assumed for the purposes of these calculations to be reinvested at prices obtained under the Fund's Automatic Dividend Reinvestment Plan.
2	Source:  Allspring Funds Management, LLC. The ERH Blended Index is weighted 70% in the S&P 500 Utilities Index and 30% in the ICE BofA U.S. High Yield Constrained Index. Effective October 15, 2019, the ERH Blended Index changed the high yield component of the index from the ICE BofA U.S. High Yield Index with the ICE BofA U.S. High Yield Constrained Index in order to better match the Fund's investment strategy. Copyright 2026. ICE Data Indices, LLC. All rights reserved. You cannot invest directly in an index.
3	The Russell 3000® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index.

 

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

 

Growth of $10,000 investment as of February 28, 20261

  

1	The chart compares the performance of the Fund for the most recent ten years with the ERH Blended Index and Russell 3000® Index. The chart assumes a hypothetical investment of $10,000 investment and reflects all operating expenses of the Fund.

 

Comparison of NAV vs. market value1

  

1	This chart does not reflect any brokerage commissions charged on the purchase and sale of the Fund's common shares. Dividends and distributions paid by the Fund are included in the Fund's average annual total returns but have the effect of reducing the Fund's NAV.

Risk summary

Shares of this closed-end fund are only available for purchase and sale at the current market price on the stock exchange on which it is listed. Shares of the 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 the 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. Funds that concentrate their investments in a single industry or sector may face increased risk of price fluctuation due to adverse developments within that industry or sector. The Fund is also subject to risks associated with any concentration of its investments in the utility sector. The 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 net asset value and the market price of common shares. Foreign investments may contain more risk due to the inherent risks associated with changing political climates, foreign market instability, and foreign currency fluctuations. 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.

MANAGER'S DISCUSSION

Overview

The Fund's return based on market value was 11.49% for the six-month period that ended February 28, 2026. Over the same period, the Fund's return based on net asset value (NAV) was 12.61%, outperforming the 11.27% return for the ERH Blended Index.

Utilities more than doubled the gain of the S&P 500 Index.*

The Fund's equity sleeve benchmark, the S&P 500 Utilities Index,** rose more than 14% for the period, beating the S&P 500 Index's 6.6% return. The equity sleeve trailed its benchmark by less than 1%. Utilities performed well both early and late in the six-month period, supported by rising electricity demand and a shift away from the small group of large growth stocks that had previously driven the broader market. Investors also anticipated that lower interest rates could help rate-sensitive sectors, including utilities, and they sought defensive positioning as socioeconomic and political developments introduced additional uncertainty.

The equity sleeve added several new positions.

The managers initiated a position in PG&E Corporation, a California utility whose shares had weakened following severe wildfires in Southern California the previous year. Although the fires occurred outside PG&E's service territory, they reminded investors of ongoing risks and the state's evolving-yet imperfect-regulatory framework around wildfire liability. The managers believe this year could bring a more favorable wildfire framework.

The managers also bought NRG Energy, Inc., an independent power producer (IPP) and index component. IPP shares remain volatile as investors balance the benefits of increased electricity demand with concerns around data center expansion and uncertainty over who will absorb the related grid-upgrade costs.

In addition, the managers initiated a position in PPL Corporation, a now fully regulated U.S. utility following the sale of its U.K. operations. They also added to positions in Vistra Corp. and Xcel Energy Inc. on share-price weakness. Conversely, they reduced positions in two Michigan utilities, CMS Energy Corporation and DTE Energy Company, citing a regulatory environment that no longer justifies a premium valuation versus other states. They also pared positions in American Water Works Company, Inc. and Exelon Corporation, which they believe are less likely to benefit from accelerating electricity-demand growth.

The Fund did not own Edison International, a California utility affected by wildfires in its service territory in 2025. As hopes built for a constructive wildfire solution, Edison, an index stock, performed better than the index and not owning it was the largest detractor from relative results. Another significant detractor was not owning Consolidated Edison, Inc. The managers believe this company has below-average growth prospects given the challenging regulatory environment in New York and its lack of

generation assets. The largest contributors to performance were overweight positions in several high-quality regulated utilities - NextEra Energy, Inc., Entergy Corporation, and Atmos Energy Corporation.

 

Ten largest holdings (%) as of February 28, 20261
NextEra Energy, Inc.	13.78
Constellation Energy Corp.	8.02
Southern Co.	5.81
Vistra Corp.	4.78
Duke Energy Corp.	4.44
American Electric Power Co., Inc.	4.34
Entergy Corp.	4.33
Atmos Energy Corp.	4.23
Sempra	3.80
Ameren Corp.	3.33

 

1	Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified.

 

Sector allocation as of February 28, 20261

  

1	Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified.

The utilities equity outlook remains attractive.

A combination of slower economic growth, geopolitical developments-including the Iran War-and strengthening electricity

demand could continue to support utilities' performance given their stable earnings growth. Fundamentals remain strong and the managers continue to expect healthy mid-single-digit earnings and dividend growth. In some cases, targeted earnings growth has edged higher, supported in part by rapid expansion in electricity-intensive data centers. Valuations also appear compelling:  On a price-to-earnings basis, the S&P 500 Utilities Index recently traded at close to a 20% discount to the S&P 500 Index,

compared with a 15-year average of a modest premium. 

Credit quality as of February 28, 20261

  

1

The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor's, Moody's Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the portfolio with the ratings depicted in the chart are calculated based on the market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of the three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor's rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor's rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody's rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody's rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.

Within high income, higher-quality credits performed well as economic growth remained resilient.

Over the past year, U.S. economic growth moderated but remained resilient, with real U.S. gross domestic product expanding roughly 2.2% year over year. Growth was supported by solid consumer spending and continued investment in technology and AI-related infrastructure. Inflation moved closer to the Federal Reserve's (Fed) 2.0% target, with core CPI easing to about 2.5% year over year by January 2026-its lowest level since 2021. The Fed cut rates by a cumulative 75 basis points (0.75%) in late 2025, bringing the federal funds target range to 3.50-3.75%. The Fed has since adopted a more patient, data-dependent stance amid uneven inflation readings and signs of labor-market cooling.

The U.S. unemployment rate rose to roughly 4.5%, its highest level since 2021. Overall, economic fundamentals remained healthy:  real wage growth was positive and household balance sheets continued to benefit from prior equity gains, even as housing activity softened. Looser monetary policy and supportive financial conditions sustained strength in risk assets, including high yield credit. Low default rates and elevated yields helped offset tighter credit spreads. Meanwhile, renewed policy uncertainty increased market dispersion as investors more actively priced growth, inflation, and policy risks for 2026 and beyond.

The high income sleeve added to banking and consumer cyclical holdings while trimming communications and technology.

Security selection-particularly among lower-rated credits-remained the primary focus of the high income sleeve. During the six-month period, we were slightly lower in yield and spread relative to the benchmark and modestly shorter in duration. Sector positioning shifted toward banking and consumer cyclical and away from communications and technology. In banking, hybrid securities issued by investment-grade financial firms offered attractive relative value versus BB-rated bonds. Within consumer cyclical, a series of targeted trades in retail issuers resulted in a higher overall allocation. Reductions in communications and technology stemmed from debt repayments and deliberate risk-management actions.

Lack of exposure to Multi-Color Corporation and timely divestiture of Saks Incorporated benefited relative performance during the quarter. Completely avoiding Multi-Color, which spiraled into default, was of significant benefit. Although the sleeve started the period with exposure to Saks, a timely divestiture ahead of the retailer's subsequent decline added value. The two weakest performers were Hubbard Radio and Cornerstone Building Brands, Inc.* Hubbard appeared likely to breach a covenant, prompting the managers to exit the position. Cornerstone faced ongoing pressure amid a subdued housing market, despite what many agree is a

structurally undersupplied market. 

Geographic allocation as of February 28, 20261

  

1	Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified.

Leverage had a positive impact.

The Fund's use of leverage through bank borrowings had a positive impact on the NAV total return performance during this reporting period. As of February 28, 2026, the Fund had 16.21% leverage as a percent of total assets.

*

This security was no longer held at the end of the reporting period.

High income credit fundamentals remain healthy despite macroeconomic uncertainty.

Macroeconomic uncertainty has pushed interest rates lower and modestly widened high yield spreads, which remain near historical tights. At the sector level, rapid adoption of artificial intelligence is beginning to pressure certain business models, particularly those with high labor intensity or limited barriers to automation-factors that continue to warrant careful credit selection. High yield credit fundamentals remain strong:  the trailing 12-month default rate stands at 1.4%, marking the twenty-first consecutive month below 2%. Managers expect this low-default environment to persist into the first half of 2026, supported by anticipated Fed cuts.

Fund distributions

Pursuant to an exemptive order issued by the Securities and Exchange Commission (the "Order"), the Fund is authorized to distribute long-term

 

 

		Interest rate	Maturity date	Principal		Value
Asset-backed securities:  0.09%
Uniti Fiber ABS Issuer LLC Series 2025-1A Class B144A		6.37 %	4-20-2055	$	105,000	$108,005
Total asset-backed securities (Cost $105,000)						108,005

 

				Shares
Common stocks:  88.45%
Energy:  0.18%
Oil, gas & consumable fuels:  0.18%
Enviva, Inc. (Acquired 12-06-2024, cost $72,563)†˃					13,298	221,079
Health care:  0.07%
Health care providers & services:  0.07%
Modivcare Topco LLC†					15,160	85,275
Utilities:  88.20%
Electric utilities:  54.97%
Alliant Energy Corp.					40,872	2,956,681
American Electric Power Co., Inc.					39,950	5,346,109
Constellation Energy Corp.					29,931	9,873,638
Duke Energy Corp.					41,759	5,464,165
Entergy Corp.					49,737	5,327,330
Eversource Energy					17,981	1,370,332
Exelon Corp.					28,278	1,398,913
FirstEnergy Corp.					39,363	2,013,811
NextEra Energy, Inc.					180,866	16,959,805
NRG Energy, Inc.					9,943	1,779,399
PG&E Corp.					97,994	1,861,886
PPL Corp.					60,289	2,350,065
Southern Co.					73,408	7,148,471
Xcel Energy, Inc.					45,562	3,798,049
						67,648,654
Gas utilities:  4.23%
Atmos Energy Corp.					27,860	5,203,969
Independent power and renewable electricity producers:  4.78%
Vistra Corp.					33,882	5,891,741
Multi-utilities:  22.66%
Ameren Corp.					36,180	4,098,470
CenterPoint Energy, Inc.					90,987	3,957,935
CMS Energy Corp.					37,408	2,920,443
Dominion Energy, Inc.					32,328	2,041,190
DTE Energy Co.					22,976	3,405,962
Public Service Enterprise Group, Inc.					42,514	3,659,180
Sempra					48,616	4,680,262
WEC Energy Group, Inc.					26,692	3,121,896
						27,885,338

 

				Shares		Value
Water utilities:  1.56%
American Water Works Co., Inc.					14,130	$1,922,104
Total common stocks (Cost $65,500,107)						108,858,160

 

		Interest rate	Maturity date	Principal
Corporate bonds and notes:  26.43%
Basic materials:  0.78%
Chemicals:  0.61%
Celanese U.S. Holdings LLC		6.50 %	4-15-2030	$	185,000	189,581
Celanese U.S. Holdings LLC		7.38	7-15-2032		85,000	89,608
Chemours Co.144A%%		7.88	3-15-2034		95,000	94,881
Chemours Co.144A		8.00	1-15-2033		190,000	193,239
SCIH Salt Holdings, Inc.144A		6.63	5-1-2029		185,000	184,538
						751,847
Iron/steel:  0.17%
Cleveland-Cliffs, Inc.144A		7.00	3-15-2032		200,000	203,125
Communications:  4.02%
Advertising:  0.47%
Clear Channel Outdoor Holdings, Inc.144A		7.13	2-15-2031		255,000	269,538
Outfront Media Capital LLC/Outfront Media Capital Corp.144A		4.63	3-15-2030		135,000	132,441
Outfront Media Capital LLC/Outfront Media Capital Corp.144A		7.38	2-15-2031		170,000	178,720
						580,699
Internet:  0.64%
Arches Buyer, Inc.144A		4.25	6-1-2028		75,000	72,640
Arches Buyer, Inc.144A		6.13	12-1-2028		170,000	160,440
Cablevision Lightpath LLC144A		5.63	9-15-2028		130,000	129,904
Match Group Holdings II LLC144A		5.63	2-15-2029		130,000	129,777
Match Group Holdings II LLC144A		6.13	9-15-2033		115,000	114,685
Wayfair LLC144A		6.75	11-15-2032		170,000	173,263
						780,709
Media:  1.76%
CCO Holdings LLC/CCO Holdings Capital Corp.144A		4.25	1-15-2034		345,000	300,530
CCO Holdings LLC/CCO Holdings Capital Corp.144A		4.50	8-15-2030		450,000	429,222
CCO Holdings LLC/CCO Holdings Capital Corp.		4.50	5-1-2032		75,000	68,637
CCO Holdings LLC/CCO Holdings Capital Corp.144A		5.38	6-1-2029		85,000	84,798
CSC Holdings LLC144A		3.38	2-15-2031		150,000	89,413
CSC Holdings LLC144A		5.50	4-15-2027		185,000	156,850
CSC Holdings LLC144A		5.75	1-15-2030		90,000	34,773
CSC Holdings LLC144A		11.25	5-15-2028		120,000	95,072
DIRECTV Financing LLC/DIRECTV Financing Co-Obligor, Inc.144A		5.88	8-15-2027		35,000	35,041
DISH DBS Corp.144A		5.75	12-1-2028		90,000	87,103
DISH Network Corp.144A		11.75	11-15-2027		295,000	305,406
Gray Media, Inc.144A		9.63	7-15-2032		125,000	129,873

 

 

 

 

 

 

 

 

 

 

 

 

		Yield		Shares		Value
Short-term investments:  2.66%
Investment companies:  2.66%
Allspring Government Money Market Fund Select Class♠∞##		3.62 %			3,276,084	$3,276,084
Total short-term investments (Cost $3,276,084)						3,276,084
Total investments in securities (Cost $109,383,439)	124.71 %					153,477,688
Other assets and liabilities, net	(24.71 )					(30,408,220 )
Total net assets	100.00 %					$123,069,468

 

144A	The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.
†	Non-income-earning security
˃	Restricted security as to resale, excluding Rule 144A securities. The Fund held a restricted security with current value of $221,079 (original cost of $72,563), representing 0.18% of its net assets as of period end.
%%	The security is purchased on a when-issued basis.
±	Variable rate investment. The rate shown is the rate in effect at period end.
¥	A payment-in-kind (PIK) security is a security in which the issuer may make interest or dividend payments in cash or additional securities or a combination of both. The rate shown is the rate in effect at period end.
♦	The security is fair valued in accordance with procedures approved by Allspring Funds Management, LLC.
ʊ	Security is perpetual in nature and has no stated maturity date. The date shown reflects the next call date.
♠	The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.
∞	The rate represents the 7-day annualized yield at period end.
##	All or a portion of this security is segregated as collateral for when-issued securities.

 

Abbreviations:
REIT	Real estate investment trust
SOFR	Secured Overnight Financing Rate

Investments in affiliates

An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same adviser or investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows: 

	Value, beginning of period	Purchases	Sales proceeds	Net realized gains (losses)	Net change in unrealized gains (losses)	Value, end of period	Shares, end of period	Income from affiliated securities
Short-term investments
Allspring Government Money Market Fund Select Class	$1,978,197	$12,007,227	$(10,709,340 )	$0	$0	$3,276,084	3,276,084	$38,841

Financial statements

Statement of assets and liabilities 

Assets
Investments in unaffiliated securities, at value (cost $106,107,355)	$150,201,604
Investments in affiliated securities, at value (cost $3,276,084)	3,276,084
Cash	26
Receivable for dividends and interest	1,239,214
Receivable for investments sold	297,779
Prepaid expenses and other assets	24,543
Total assets	155,039,250
Liabilities
Secured borrowing payable	30,000,000
Payable for investments purchased	964,732
Dividends payable	748,706
Advisory fee payable	58,501
Administration fee payable	5,850
Trustees' fees and expenses payable	1,761
Accrued expenses and other liabilities	190,232
Total liabilities	31,969,782
Total net assets	$123,069,468
Net assets consist of
Paid-in capital	$85,950,902
Total distributable earnings	37,118,566
Total net assets	$123,069,468
Net asset value per share
Based on $123,069,468 divided by 8,832,161 shares issued and outstanding (unlimited number of shares authorized)	$13.93

Statement of operations 

Investment income
Interest	$1,512,527
Dividends	1,338,468
Income from affiliated securities	38,841
Total investment income	2,889,836
Expenses
Advisory fee	363,250
Administration fee	36,325
Custody and accounting fees	5,060
Professional fees	79,230
Registration fees	2
Shareholder report expenses	26,913
Trustees' fees and expenses	2,058
Transfer agent fees	15,638
Interest expense	709,093
Other fees and expenses	5,049
Total expenses	1,242,618
Net investment income	1,647,218
Realized and unrealized gains (losses) on investments
Net realized gains on investments	1,904,323
Net change in unrealized gains (losses) on
Unaffiliated securities	10,146,440
Foreign currency and foreign currency translations	859
Net change in unrealized gains (losses) on investments	10,147,299
Net realized and unrealized gains (losses) on investments	12,051,622
Net increase in net assets resulting from operations	$13,698,840

Statement of changes in net assets 

	Six months ended February 28, 2026 (unaudited)		Year ended August 31, 2025
Operations
Net investment income		$1,647,218		$3,339,067
Net realized gains on investments		1,904,323		13,002
Net change in unrealized gains (losses) on investments		10,147,299		11,705,105
Net increase in net assets resulting from operations		13,698,840		15,057,174
Distributions to shareholders from
Net investment income and net realized gains		(4,427,474 )		(3,586,832 )
Tax basis return of capital		0		(4,339,254 )
Total distributions to shareholders		(4,427,474 )		(7,926,086 )
Capital share transactions
Cost of shares repurchased		0		(1,999,362 )
Total increase in net assets		9,271,366		5,131,726
Net assets
Beginning of period		113,798,102		108,666,376
End of period		$123,069,468		$113,798,102

Statement of cash flows 

Cash flows from operating activities
Net increase in net assets resulting from operations	$13,698,840
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities
Purchases of long-term securities	(16,150,350 )
Proceeds from the sales of long-term securities	19,525,086
Amortization, net	(47,735 )
Purchases and sales of short-term securities, net	(1,311,650 )
Increase in receivable for investments sold	(237,929 )
Decrease in receivable for dividends and interest	52,695
Increase in prepaid expenses and other assets	(22,479 )
Increase in payable for investments purchased	902,019
Decrease in trustees' fees and expenses payable	(2,817 )
Decrease in advisory fee payable	(5,441 )
Decrease in administration fee payable	(544 )
Increase in accrued expenses and other liabilities	48,195
Proceeds from foreign currency transactions	859
Net realized gains on unaffiliated securities	(1,904,323 )
Net change in unrealized (gains) losses on unaffiliated securities	(10,146,440 )
Net change in unrealized (gains) losses on foreign currency and foreign currency translations	(859 )
Net cash provided by operating activities	4,397,127
Cash flows from financing activities
Cash distributions paid	(4,397,266 )
Net cash used in financing activities	(4,397,266 )
Net decrease in cash	(139 )
Cash
Beginning of period	165
End of period	$26
Supplemental cash disclosure
Cash paid for interest	$719,319

 

 

	Six months ended February 28, 2026 (unaudited)	Year ended August 31
		2025	2024	2023	2022	2021
Net asset value, beginning of period	$12.88	$12.05	$10.63	$12.93	$13.31	$12.00
Net investment income	0.19 1	0.38 1	0.38 1	0.40	0.43	0.33
Net realized and unrealized gains (losses) on investments	1.36	1.32	1.78	(1.82 )	0.09	1.84
Total from investment operations	1.55	1.70	2.16	(1.42 )	0.52	2.17
Distributions to shareholders from
Net investment income	(0.50 )	(0.40 )	(0.37 )	(0.39 )	(0.46 )	(0.46 )
Net realized gains	0.00	0.00	0.00	0.00	0.00	(0.11 )
Tax basis return of capital	0.00	(0.49 )	(0.40 )	(0.49 )	(0.44 )	(0.29 )
Total distributions to shareholders	(0.50 )	(0.89 )	(0.77 )	(0.88 )	(0.90 )	(0.86 )
Anti-dilutive effect of shares repurchased	0.00	0.02	0.03	0.00	0.00	0.00
Net asset value, end of period	$13.93	$12.88	$12.05	$10.63	$12.93	$13.31
Market value, end of period	$12.87	$12.02	$10.75	$9.67	$12.34	$14.71
Total return based on net asset value2	12.61 %	15.64 %	23.00 %	(10.79 )%	4.02 %	18.55 %
Total return based on market value2	11.49 %	20.97 %	20.63 %	(14.96 )%	(10.17 )%	23.02 %
Ratios to average net assets (annualized)
Expenses*	2.14 %	2.43 %	2.93 %	2.45 %	1.25 %	1.09 %
Net investment income	2.84 %	3.03 %	3.52 %	3.23 %	3.34 %	3.49 %
Supplemental data
Portfolio turnover rate	11 %	24 %	26 %	18 %	23 %	34 %
Net assets, end of period (000s omitted)	$123,069	$113,798	$108,666	$98,784	$120,160	$123,610
Borrowings outstanding, end of period (000s omitted)	$30,000	$30,000	$30,000	$30,000	$30,000	$25,000
Asset coverage per $1,000 of borrowing, end of period	$5,102	$4,793	$4,622	$4,293	$5,005	$5,944