Capabilities
Investment Solutions
The Investment Solutions team at Allspring is passionately committed to delivering exceptional, customized investment solutions. Our efforts are concentrated on achieving client objectives and exceeding desired outcomes, or what we call “outcome alpha.”
Explore key advantages
Dynamic tools backed by deep experience
Outcome-oriented process
Through an intimate discovery process, we seek to deeply understand client objectives and constraints before translating them into an investable portfolio.
Value-add expertise
We may enhance portfolios through targeted risk premia exposure, tactical asset allocation tilts, bottom-up security selection, and risk management.
Close collaboration
We work closely with Systematic Edge portfolio managers to implement solutions. Together, we are accountable for performance to help our clients achieve their desired outcomes.
Open-architecture toolkit
We benefit from an extensive open-architecture investment toolkit containing passive, factor-based, fundamental, and derivative-based investment strategies.
Your outcome is our benchmark
1) Turning desired outcomes into investable portfolios
- Initiate discovery process with clients
- Understand client objectives, constraints, and deeply rooted beliefs
- Build the foundation for customized solutions
2) Leaving no stone unturned to maximize investment potential
- Design holistic solutions through a rigorous yet flexible process
- Leverage macroeconomic drivers to create a balanced foundation for returns
- Further enhance portfolios through alternative strategies as appropriate
3) Marrying design and portfolio management to greatly raise the probability of success
- Combine the intellectual power and breadth of our specialized investment teams
- Create and implement client-specific solutions by collaborating with Systematic Edge portfolio managers
- Consistently track performance to ensure accountability
4) Delivering outcome alpha
- Aim to deliver performance at or above client objectives
Diverse solutions for diverse clients
We work with all client types, from sovereign wealth funds to intermediaries, to design both single-asset-class and multi-asset-class solutions that enable portfolio growth, preservation, or income generation. The below chart illustrates solutions that we have designed across several types of clients.
Beyond traditional alpha lies the skill and ability to deliver on specific outcomes.
Frank Cooke, Head of International Solutions, Systematic Edge
Case study: Options-based downside risk management
A U.K. pension fund entrusted the Investment Solutions team with devising a cost-efficient options overlay solution to protect downside risk for an equity portfolio.
Objectives
- Provide a cost-efficient 90% target floor for the portfolio
- Reduce equity and funding-level risk
Solutions
- A structural hedge to make equity exposure more palatable in the form of a calendar-put spread-collar solution
- An enhanced implementation option strategy reducing the cost of protection based on decades of experience and our proprietary volatility forecast model
Results
- Changed shape of equities return distribution, good cost-benefit trade-off for a strategic hedge
- Reduced risk in a strategic and cost-efficient way
- Enabled continuous “always-on” equity protection
- Included customized currency hedging as part of the solution
We define risk as the likelihood that a client fails to achieve their desired outcome.
Jonathan Hobbs, Head of U.S. Solutions, Systematic Edge
