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.
