Climate Transition Global High Yield Fund

$102.77
NAV
+$0.32 / +0.31%
$44.8M
Assets under management
Not available
Year-to-date return
Not available
Distribution yield
Data as of 4/23/2024
Fund overview
Transition opportunities in global high yield
The Climate Transition Global High Yield Fund seeks to deliver total returns, consisting of a high level of current income and capital appreciation, whilst investing in a broad range of best-in-class companies transitioning to a lower-carbon world, with a portfolio target of net zero by 2050.

The fund is a globally diversified portfolio of predominantly high yield credits designed to balance financial and climate objectives.

Key differentiators

  • Accesses the full range of credit opportunities represented by rapid, large-scale decarbonisation and a global, sector-wide transition
  • Takes advantage of fully integrated worldwide fixed income offerings, balancing global portfolio construction and local coverage
  • Focuses on companies’ forward transition performance rather than excluding today’s carbon emitters
  • Uses Allspring’s Climate Transition Framework to optimise security selection by holistically evaluating the implications of climate change on sector and company fundamentals

Uses a proprietary ESGiQ (ESG Information Quotient) rating system to capture key issues that may be mispriced

General facts

ISIN

LU2562659669

SEDOL

BPCVHR1

Bloomberg

ALCTHYI LX

SFDR classification

8

Minimum investment

$1,000,000

Fund inception date

6/6/2023

Share class launch date

6/6/2023

Annual management fee

0.50%

Total expense ratio (TER)

0.65%

Benchmark name

ICE BofA Developed Markets HY Constrained Index Hedged NEW

Settlement

T+3

Performance

Past performance is not indicative of future results.

Calendar year Add Minus

Calendar year

For regulatory reasons, we are unable to show performance until there is a 12 month performance record.
Average annual returns Add Minus

Average annual returns

For regulatory reasons, we are unable to show performance until there is a 12 month performance record.
Cumulative Add Minus

Cumulative

For regulatory reasons, we are unable to show performance until there is a 12 month performance record.
Performance and volatility metrics Add Minus

Performance and volatility metrics

Products must have at least a 36 month performance record before we show these metrics.
Morningstar ratings and rankings Add Minus

Morningstar ratings and rankings

Investments must have at least 36 continuous months of total returns in order to receive a rating from Morningstar.

Prices, yields and distributions

Historical prices

YTD high $104.23 1/1/2024
YTD low $101.98 4/16/2024
52-week high $104.23 1/1/2024
52-week low $97.28 10/22/2023
2023 high $104.23 12/31/2023
2023 low $97.28 10/22/2023
Best quarterly return 6.74% 12/31/2023
Worst quarterly return 1.00% 9/30/2023
Best annual return -
Worst annual return -

Distribution summary

Dividends Monthly
Capital gains Annually

Yields

Yield (as of ) Statistic
Distribution yield -
Yield to maturity 6.99%
Yield to worst 6.75%

The distribution yield is based on the actual distributions paid by the fund. The distribution yield is calculated by summing the fund’s distributions over the preceding 12 months and dividing that figure by the applicable share price at the end of the period.

Composition

Portfolio statistics Add Minus

Portfolio statistics

(as of 3/31/2024)
Fund Benchmark
Number of Holdings 235 2661
Number of Issuers 202.00 1,204.00
Effective Duration 3.01 3.15
Weighted Average Effective Maturity 4.77 4.67
Average Credit Rating BB- B+
Average Maturity 11.71 8.11
Credit Spread Duration 3.20 3.32

Placement within the Morningstar Fixed-Income Style Box™ is based on two variables: the vertical axis shows the credit quality of the long bonds owned and the horizontal axis shows interest rate sensitivity as measured by a bond's effective duration. For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average default rate calculation to come up with a weighted average credit quality. The weighted average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a style box placement of low, medium, or high based on their average credit quality. Funds with a low credit quality are those whose weighted average credit quality is determined to be less than BBB-, medium are those less than AA- but greater or equal to BBB-, and high are those with a weighted average credit quality of AA- or higher. When classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstar’s analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve. For municipal bond funds, Morningstar also obtains from fund companies the average effective duration. In these cases static breakpoints are used. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-U.S. taxable and non-U.S. domiciled fixed-income funds, static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: greater than 3.5 years and less than or equal to 6 years; and (iii) Extensive: greater than 6 years.

Credit quality Add Minus

Credit quality

(as of 3/31/2024)
Type
Fund
Benchmark
BBB/Baa
9.74% 1.09%
BB/Ba
42.93% 51.23%
B/B
37.18% 36.25%
CCC/Caa and below
6.96% 11.43%
Cash & equivalents
3.19% -

The ratings indicated are from Standard & Poor's, Fitch Ratings Ltd., and/or Moody's Investors Service. The percentages of the fund's portfolio with the ratings depicted in the chart are calculated based on total investments of the fund. If a security was rated by all three rating agencies, the middle rating was used. If rated by two of three rating agencies, the lower rating was used, and if rated by one of the agencies, that rating was used. Credit quality is subject to change and may have changed since the date specified. Percent total may not add to 100% due to rounding.

Maturity Add Minus

Maturity

(as of 3/31/2024)
Maturity Range
Fund
0 - 3 years
27.25%
3 - 5 years
43.10%
5 - 10 years
27.83%
10+ years
1.79%

Based on ending weights as of month-end. Percent total may not add to 100% due to rounding.

Top 10 holdings Add Minus

Top Ten Holdings

(as of 3/31/2024)
Security
Fund
CCO Holdings LLC
1.46%
Iron Mountain Incorporated
1.27%
TerraForm Power Operating LLC
1.06%
Pattern Energy Operations LP
1.04%
Ford Motor Company
0.91%
Seagate HDD Cayman
0.88%
OUTFRONT MEDIA 7.375% 02/15/31
0.85%
Enact Holdings, Inc.
0.82%
ASSUREDPARTNERS INC SR UNSECURED 144A 01/29 5.625
0.80%
CSC Holdings, LLC
0.80%
Top 10 represents 9.89% of total net assets

Based on ending weights as of month-end. Source: FactSet. The information shown is not intended to be, nor should it be construed to be, a recommendation to buy or sell an individual security.

Sector allocation Add Minus

Sector allocation

(as of 3/31/2024)
Type
Fund
Benchmark
Consumer discretionary
23.62% 20.03%
Financials
17.85% 11.26%
Industrials
13.45% 19.79%
Communication services
12.94% 15.61%
Consumer staples
11.32% 11.61%
Information technology
6.80% 6.02%
Energy
6.25% 9.73%
Utilities
4.25% 3.78%
Real estate
2.29% 2.01%
Local authorities
0.51% -
Other industrials
0.49% -
Agencies
0.22% 0.16%

Based on ending weights as of month-end. Source: FactSet. Percent total may not add to 100% due to rounding.

Geographic allocation Add Minus

Geographic allocation

(as of 3/31/2024)
Type
Fund
United States
62.05%
France
6.73%
United Kingdom
6.56%
Italy
5.39%
Spain
3.73%
Germany
3.30%
Canada
1.95%
Belgium
0.96%
Netherlands
0.86%
Luxembourg
0.45%

Based on ending weights as of month-end. Source: FactSet. Percent total may not add to 100% due to rounding.

Currency allocation Add Minus

Currency allocation

(as of 3/31/2024)
Currency
Share Class
Benchmark
British Pound Sterling
4.28% 2.89%
Euro (EUR)
27.60% 21.41%
United States Dollar
68.12% 74.87%

Currency allocation is subject to change and may have changed since the date specified. Percent total may not add to 100% due to rounding.

Portfolio composition Add Minus

Portfolio composition

(as of 3/31/2024)
Credit Assets
Allocation
Benchmark
Corporate bonds
100.00% 99.89%

Portfolio composition is subject to change and may have changed since the date specified. Percent total may not add to 100% due to rounding.

ESG data summary

MSCI Overall ESG Score 1
Portfolio
5.9
Index
5.7
Sustainalytics ESG Risk Score 2
Portfolio
21
Index
24
SFDR Rating
 
8

Product involvement 3

Portfolio Benchmark
Controversial Weapons exposure 0.00% 0.08%
Oil Sands exposure 0.00% 0.05%
Small Arms exposure 0.00% 0.02%
Thermal Coal exposure 0.00% 0.17%
Tobacco exposure 0.00% 0.43%
UN Global Compact non-compliant exposure 0.00% 0.05%

¹ Data is sourced from MSCI ESG Research where companies are rated on a scale of 0 – 10 (0 - worst, 10 - best). Weighted average scores exclude effects of unrated securities.

² ESG Risk Ratings measure exposure to and management of ESG risks. Lower risk scores reflect less ESG risk. Sustainalytics ESG Risk Scores measure ESG risks on a scale of 0 – 100 (0 - no ESG Risk, >40 - Severe ESG Risk).

³ Carbon emissions includes operational and first-tier supply chain greenhouse gas emissions. Data sourced from S&P Trucost Limited.

⁴ Source: Allspring Global Investments. This report contains information developed by Sustainalytics. Such information and data are proprietary of Sustainalytics and/or its third-party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers. Copyright © 2023 Sustainalytics. All rights reserved.

Documents

Literature Date Language
Fact Sheet 3/31/2024 English Download Download
Fact Sheet 2/29/2024 Italian Download Download
Fact Sheet 2/29/2024 Spanish Download Download
Fact Sheet 2/29/2024 German Download Download
Fact Sheet 2/29/2024 French Download Download
Monthly Commentary 3/31/2024 English Download Download
Regulatory Document Date Language
KIID 4/1/2024 English Download Download
Lux Fund Sustainability-Related Disclosures 4/16/2024 English Download Download
PRIIPs KIDs 4/1/2024 English Download Download
PRIIPs KIDs 4/1/2024 Danish Download Download
PRIIPs KIDs 4/1/2024 Dutch Download Download
PRIIPs KIDs 4/1/2024 French Download Download
PRIIPs KIDs 4/1/2024 German Download Download
PRIIPs KIDs 4/1/2024 Italian Download Download
PRIIPs KIDs 4/1/2024 Norwegian Download Download
PRIIPs KIDs 4/1/2024 Portuguese Download Download
PRIIPs KIDs 4/1/2024 Spanish Download Download
PRIIPs KIDs 4/1/2024 French Download Download
PRIIPs KIDs 4/1/2024 Swedish Download Download
PRIIPs KIDs 4/1/2024 Finnish Download Download
Shareholder Notice 3/21/2024 Chinese Download Download
Shareholder Notice 3/21/2024 English Download Download
Shareholder Notice 3/21/2024 English Download Download
Shareholder Notice 3/21/2024 English Download Download
Our team
Meet the investment team

The team employs a sector specialist model whereby tenured investment professionals are supported by rigorous credit research to source opportunities across global fixed income markets.

Key risks

Debt securities risk: Debt securities are subject to many factors, including, but not limited to, changes in interest rates and an issuer’s ability and willingness to make payments when due.

Global investment risk: Securities of certain jurisdictions may be affected by uncertainties such as international political developments, currency fluctuations and other developments in the laws and regulations of countries in which an investment may be made. These may result in rapid and extreme changes in securities prices.

High yield securities risk: High yield securities are rated below investment grade, have a higher risk of default and prices may be more volatile than higher-rated securities of similar maturity.

ESG risk: Applying an ESG screen for security selection may result in lost opportunity in a security or industry resulting in possible underperformance relative to peers, ESG screens are dependent on third party data and errors in the data may result in the incorrect inclusion or exclusion of a security.

Convertible securities risk: These instruments can be converted into common stock because of the occurrence of certain predetermined trigger events including when the issuer is in crisis resulting in possible price fluctuations and may be subject to redemption at the election of the issuer.

Contingent convertible bonds risk: These instruments can be converted from debt into equity because of the occurrence of certain predetermined trigger events including when the issuer is in crisis resulting in possible price fluctuations and potential liquidity concerns.

Currency risk: Currency exchange rates may fluctuate significantly over short periods of time and can be affected unpredictably by intervention (or the failure to intervene) by relevant governments or central banks, or by currency controls or political developments.

Leverage risk: The use of certain types of financial derivative instruments may create leverage which may increase share price volatility.

Contact Us

We look forward to helping you with your investment needs

 

Investors should note that, relative to the expectations of the Autorité des Marchés Financiers, this fund presents disproportionate communication on the consideration of non-financial criteria in its investment policy.
 

The ongoing charges/total expense ratio (TER) reflects annual total operating expenses for the class, excludes transaction costs and is expressed as a percentage of net asset value. The figure shown is from current KID. The investment manager has committed to reimburse the Sub-Fund when the ongoing charges exceed the agreed upon TER. Ongoing charges may vary over time.
 

Any benchmark referenced is for comparative purposes only, unless specifically referenced otherwise in this material and/or in the prospectus, under the Sub-Funds’ Investment Objective and Policy.
 

†Promotes environmental and social characteristics but does not have a sustainable investment objective
 

†While the Sub-Funds listed above have access to both internal and external ESG research and integrate financially material sustainability risks into their investment decision-making processes, ESG-related factors are considered but not determinative, permitting the relevant Sub-Investment Managers to invest in issuers that do not embrace ESG; as such, sustainability risks may have a more material impact on the value of the Sub-Fund’s investments in the medium to long term. The investments underlying these Sub-Funds do not take into account the EU criteria for environmentally sustainable economic activities.
 

The Morningstar Rating™ for funds, or star rating, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar risk-adjusted return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% 3-year rating for 36–59 months of total returns, 60% 5-year rating/40% 3-year rating for 60–119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all three rating periods. Past performance is no guarantee of future results.

© 2024 Morningstar. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.