The fund is managed by a highly experienced and stable team of sector specialist portfolio managers, each offering significant expertise in their sector of the global fixed income markets. The team seeks to uncover opportunities and unlock relative value by sourcing the best ideas across a wide array of sectors, including government, securitised, investment grade, high yield and emerging market debt markets.
Key differentiators
- Uses a six-month investment horizon to anticipate market inflection points and take advantage of smaller but more frequent market opportunities
- Pulls multiple portfolio levers across a wide range of fixed income sector allocations to help diversify returns, build portfolio resiliency and thrive in a wide set of market conditions
- Remains unbiased to any specific sector by seeking diversified sources of alpha, creating the potential to deliver a more consistent return stream
Video
Discover the Allspring Global Income Fund
Key features and timely insights from senior portfolio managers Noah Wise and Sarah Harrison.
Transcript
Question 1: What’s the story behind the Allspring Global Income Fund launch?
Noah: It's the story of bringing the right strategy with the right partner. It's the right strategy because we're bringing a strategy with a proven 10-year track record to international markets through a UCITS vehicle that utilizes the full strength of Allspring’s formidable fixed income capabilities. And it's the right partner because it incorporates a highly differentiated process that's benefited clients by being more tactical, more diversified, and more consistent in delivering income and total returns in many different types of market environments.
Question 2: Why is now the right time to invest?
Noah: It's the right time because global bond markets have undergone a considerable evolution over the last 20 years. The market is more than tripled in size and the amount of income being generated is the most in the history of global fixed income. Larger, more liquid, and the most income on offer ever? The right time is now. Our approach dynamically allocates capital across global fixed income sectors to seek out the best income-generating and return-seeking ideas, regardless of where they reside and when they crop up. This has resulted in higher returns, more income, lower drawdowns, and less volatility than the Bloomberg Global Aggregate Index.
Question 3: What are the fund’s key features?
Sarah: Global Income, as its name suggests, is a global, unconstrained fixed income product with a focus on generating income, total return, and downside protection against market volatility. Allocation among the fixed income sectors is dynamic and individual security selection is done by the sector experts to ensure that it is a portfolio of best ideas with each portfolio manager focused on a specific part of the portfolio, in addition to contributing to the top-down macro view. With portfolio managers in both the U.S. and Europe, there is a diversified and truly global approach to generating alpha within the fixed income space.
Question 4: What makes the fund stand out from the crowd?
Sarah: The team's philosophy is underpinned by three key pillars: Firstly, a six-month investment horizon; secondly, multiple levers; and thirdly, an unbiased approach to portfolio construction. On the six-month horizon, our team stays grounded in what is happening in the market real time rather than trying to predict how conditions may change over a 3-to-5-year period. A six-month time horizon results in a higher conviction outlook with the ability to anticipate market inflection points and results in a more opportunistic process. On the multiple levers, we use a wide range of sector allocations without reliance on a single source of alpha. This gives us the ability to thrive in a wide set of market conditions. Finally, on the unbiased approach to portfolio construction, we adjust positioning to target better return opportunities and manage volatility. Our sector allocation is determined by relative value, supported by the sector specialist model, and we seek to stay nimble and avoid becoming wedded to positions.
Question 5: Tell me more about the team. How does the team structure add value?
Sarah: Each member of the six-person lead portfolio management team for the Global Income Fund has a sector specialty, in addition to expertise in other areas of fixed income, and contributes to top-down positioning. The PM team is experienced and stable with an average of 23 years of industry experience and 18 years of Allspring tenure. PMs are supported by Allspring’s well-resourced and deeply experienced global fixed income research platform, which provides detailed analysis at an individual security level to find best ideas. We are strong believers in a flat organizational structure and team-based approach to encourage debate and minimize time from investment decision to execution.
Question 6: What role can the fund play in investors’ portfolios?
Noah: There are two primary fits for investors. One is as a one-stop shop for investors or their clients that are looking for a diversified global fixed income offering run by a stable and experienced team of sector specialists with a proven long-term track record and the deep resources of a global fixed income firm. Second is as a complement to an existing core fixed income strategy that provides diversification, income, and the opportunity to target higher potential returns with a strong risk management framework.
Performance
Past performance is not indicative of future results.
Composition
Portfolio statistics
Portfolio statistics
Credit quality
Credit quality
Maturity
Maturity
Holdings
Top 10 Holdings
Geographic allocation
Geographic allocation
Currency allocation
Currency allocation
Portfolio Composition
Portfolio composition
Documents
Regulatory Document | Date | Language | |
---|---|---|---|
PRIIPs KIDs | 10/8/2024 | English | Download |
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 credit risk and interest rate risk and are affected by an issuer’s ability to make interest payments or repay principal when due.
High yield securities risk: High yield securities are rated below investment grade, are predominantly speculative, have a much greater risk of default and may be more volatile than higher-rated securities of similar maturity.
Global investment risk: Securities of certain jurisdictions may experience more rapid and extreme changes in value and 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.
Emerging markets risk: Emerging markets may be more sensitive than more mature markets to a variety of economic factors and may be less liquid than markets in the developed world.
Asset-backed securities risk: Asset-backed securities may be more sensitive to changes in interest rates and may exhibit added volatility, known as extension risk, and are subject to prepayment risk.
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.
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.
Leverage risk: The use of certain types of financial derivative instruments may create leverage which may increase share price volatility.
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.
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