UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09253
Allspring Funds Trust
(Exact name of registrant as specified in charter)
525 Market St., San Francisco, CA 94105
(Address of principal executive offices) (Zip code)
Matthew Prasse
Allspring Funds Management, LLC
525 Market St., San Francisco, CA 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-222-8222
Date of fiscal year end: January 31
Registrant is making a filing for 7 of its series:
Allspring 100% Treasury Money Market Fund, Allspring Government Money Market Fund, Allspring Heritage Money Market Fund, Allspring Money Market Fund, Allspring Municipal Cash Management Money Market Fund, Allspring National Tax-Free Money Market Fund and Allspring Treasury Plus Money Market Fund.
Date of reporting period: January 31, 2022
| ITEM 1. | REPORT TO STOCKHOLDERS |
Annual Report
January 31, 2022
Government Money Market Funds
| ■ | Allspring 100% Treasury Money Market Fund |
Contents
| 2 | |
| 6 | |
| 10 | |
| 11 | |
| Financial statements | |
| 13 | |
| 14 | |
| 15 | |
| 16 | |
| 20 | |
| 24 | |
| 25 |
The views expressed and any forward-looking statements are as of January 31, 2022, unless otherwise noted, and are those of the Fund's portfolio managers and/or Allspring Global Investments. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Allspring Global Investments disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.
Government Money Market Funds | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring 100% Treasury Money Market Fund for the 12-month period that ended January 31, 2022. Global stocks yielded mixed results as the global economy continued to emerge from the haze of COVID-19. Tailwinds were provided by global stimulus programs, a rapid vaccination rollout, and recovering consumer and corporate sentiment, only to be dampened by persistent inflation. Bonds also saw mixed performance during the period.
For the 12-month period, equities had mixed returns as policymakers continued to fight the effects of COVID-19. U.S. stocks led both non-U.S. developed market equities and emerging market stocks. Returns by fixed-income securities were also a mix of positive and negative returns. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 23.29%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 3.63%, while the MSCI EM Index (Net) (USD)3 had weaker performance with a -7.23% loss. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -2.97%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned -7.92%, the Bloomberg Municipal Bond Index6 lost -1.89%, and the ICE BofA U.S. High Yield Index7 returned 2.08%.
Efforts to contain COVID-19 drove market performance.
February 2021 saw major domestic equity indexes driven higher on the hope of a new stimulus bill, improving COVID-19 vaccination numbers, and the gradual reopening of the economy. Most S&P 500 companies reported better-than-expected earnings, with positive surprises coming from the financials, information technology, health care, and materials sectors. Japan saw its economy strengthen as a result of strong export numbers. Meanwhile, crude oil prices continued their climb, rising more than 25% for the year. Domestic government bonds experienced a sharp sell-off in late February as markets priced in a more robust economic recovery and higher future growth and inflation expectations.
The passage of the massive domestic stimulus bill highlighted March activity, leading to increased forecasts for U.S. growth in 2021. Domestic employment surged as COVID-19 vaccinations and an increasingly open economy spurred hiring. A majority of U.S. small companies reported they were operating at pre-pandemic capacity or higher. Value stocks continued their outperformance of growth stocks in the month, continuing the trend that started in late 2020. Meanwhile, most major developed global equity indexes were up month to date on the back of rising optimism regarding the outlook for global growth. While the U.S. and the U.K. have been the most successful in terms of the vaccine rollout, even in markets where the vaccine has lagged, such as in the eurozone and Japan, equity indexes in many of those countries have also been in positive territory for the year through March 2021.
| 1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index. |
| 2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
| 3 | The MSCI Emerging Markets (EM) Index (Net) (USD) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
| 4 | The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.-dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
| 5 | The Bloomberg Global Aggregate ex-USD Index (unhedged) is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
| 6 | The Bloomberg Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index. |
| 7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2022. ICE Data Indices, LLC. All rights reserved. |
2 | Government Money Market Funds
Letter to shareholders (unaudited)
Equity markets produced another strong showing in April. Domestically, the continued reopening of the economy had a strong impact on positive equity performance, as people started leaving their households and jobless claims continued to fall. Domestic corporate bonds performed well and the U.S. dollar weakened. Meanwhile, the U.S. government continued to seek to invest in the recovery, this time by outlining a package of over $2 trillion to improve infrastructure. The primary headwind in April was inflation, as investors tried to determine the breadth and longevity of recent price increases. Developed Europe was supported by a meaningful increase in the pace of vaccinations. Unfortunately many emerging market countries were not as successful. India in particular saw COVID-19 cases surge, serving as an example of the need to get vaccinations rolled out to less developed nations.
Vaccine rollouts continued in May, leading to loosened restrictions globally. As a result, equity markets in general saw a minor increase in returns. Concerns that the continued economic rebound could result in inflation increases becoming more than transitory were supported by the higher input costs businesses were experiencing. Meanwhile, those inflation concerns were tempered by the U.S. Federal Reserve (Fed), which stayed steady on its view of the economy and eased fears of a sudden and substantial policy change. Positive performance in the emerging market equity space was supported this month by steady consumer demand and strong commodity prices. Fixed-income markets were also slightly positive for the month, driven by inflation uncertainty and a softer U.S. dollar.
June witnessed the S&P 500 Index reach a new all-time high. 2021 economic growth and inflation forecasts were revised higher to reflect a strong economic recovery and some supply and demand imbalances. Late June saw a deal reached on a U.S. infrastructure package of approximately $1 trillion for road, bridge, and broadband network upgrades over the next eight years. The Fed’s June meeting yielded no change to policy, but its projections pointed to a possible interest rate rise in 2023. This, combined with a rebound in economic activity and investors searching for yield, led to U.S. Treasury yields being down for the month. Many European and Asian countries saw vaccination momentum increase, while the U.K. dealt with a rise in COVID-19 infections, specifically the Delta variant. Meanwhile, crude oil jumped over 10% in June on the back of the pickup in global economic activity and the Organization of the Petroleum Exporting Countries’ (OPEC) slow pace of supply growth.
July began the month seeing vaccinations making progress, as several major developed countries eased restrictions, only to be threatened again by the spread of COVID-19’s Delta variant. Inflation continued to climb, aided by the continued supply bottleneck in the face of high demand. As it pertains to the equity area of the market, U.S. equities led the way in positive return territory followed by international developed markets. In contrast, emerging markets were well in negative territory for the month, hindered by China’s plans for new regulations on a number of sectors, specifically education and technology. The U.S. 10-year Treasury bond yield continued to decline as strong demand swallowed up supply. After hitting a multiyear high earlier in the month, oil prices leveled off following an agreement by OPEC to raise oil production starting in August.
The Delta variant of COVID-19 produced outbreaks globally in August, increasing the potential for increased market volatility and bringing into question the ongoing economic recovery. Domestically, the U.S. economy continued to stay strong in the face of the Delta variant, continued inflationary pressures, and worries over Hurricane Ida. Emerging market equities experienced elevated volatility, largely influenced by China’s regulatory stance. Emerging market equities started the month with poor performance but rebounded to end the month in positive territory. Municipal debt experienced its first monthly performance drop since February 2021, slowing a rally that made it one of the best-performing sectors of the bond market. In the commodity segment of the market, crude oil fell sharply during the month on the back of dampened expectations as a result of the Delta variant but was still a leading asset-class performer for the year through August 2021.
Global markets suffered their broadest retreat in a year during September, with the exception of commodities. Concerns over inflation and the interest rate outlook depressed investor confidence and hurt performance. Emerging markets declined on concerns over the continued supply chain disruptions and worries over higher energy and food prices. Meanwhile, the Fed indicated it would slow the pace of asset purchases in the near future (pointing towards November). All eyes domestically were fixed on the raising of the debt ceiling, the 2022 budget plan, and the ongoing debate over the infrastructure package. Contrary to most asset classes, commodities thrived in September, driven by sharply higher energy prices.
“ Municipal debt experienced its first monthly performance drop since February 2021, slowing a rally that made it one of the best-performing sectors of the bond market.”
Government Money Market Funds | 3
Letter to shareholders (unaudited)
October’s key themes continued to be elevated inflation pressures and a supply bottleneck, but strong earnings provided a bright spot in the markets. Earnings releases in the U.S. were generally strong and consumer confidence was high. The Fed reaffirmed its plans to taper quantitative easing to a stop by mid-2022. Meanwhile, elevated inflation figures were considered transitory by the Fed. Similar to the U.S., the eurozone and many Asian countries saw positive earnings but were facing inflation pressures caused by supply bottlenecks while also experiencing energy price increases amid natural gas shortages. Globally, government bond yields rose as central banks prepared to lower monetary policy accommodation in the face of rising inflationary pressures. As previously referenced, positive commodity performance was driven by sharply higher energy costs.
November was dominated by rising COVID-19 hospitalizations and concerns regarding the Omicron variant. Most major asset classes, both domestically and internationally, declined in November with two exceptions: U.S. investment-grade bonds and Treasury Inflation-Protected Securities. The United Nations Climate Change Conference (COP26) took place during the month with hopes of agreement among countries to limit global warming. While several initiatives were discussed, the conference ultimately ended without the specifics required to instill confidence that the limiting of global warming would succeed. In the U.S., President Biden signed a long-awaited infrastructure bill to upgrade U.S. roads, bridges, and railways. Meanwhile, the Consumer Price Index1, a measure of domestic inflation conditions, jumped to its highest level in 31 years. While the threat of consistently high inflation led the Fed to discuss a faster pace of tapering, the Omicron strain makes that less likely to occur. Commodities came in negative for the month, largely driven by sharp declines in oil prices (and energy costs in general) as well as precious metals.
Global volatility in December lessened as data indicated a lower risk of severe disease and death as a result of the Omicron variant. Even so, a number of countries introduced restrictions on sectors such as travel and hospitality to try to reduce the spread. In the U.S., data indicated that the overall domestic economy remained stable and corporate earnings remained robust. Consumer spending capability looked strong heading into 2022 on the back of elevated household savings and the lowest ratio of U.S. household liabilities to assets since 1973. U.S. corporate and high-yield bonds produced positive returns for the month while Treasuries declined. Bonds were strongly affected by the projection of three 25-basis-point (bp; 100 bps equal 1.00%) policy rate hikes in 2022 by senior Federal Open Market Committee members, contrary to just one hike as previously believed.
Key themes in the first month of 2022 were the potential U.S. interest rate hikes and the Russia-Ukraine conflict. Comments from the Fed suggested a hike in interest rates in March is now likely. Meanwhile, Russia’s potential invasion of Ukraine, could threaten to disrupt its massive energy supplies and drive demand from non-Russian oil-producing countries. Elsewhere overseas, Europe saw food and energy prices spike, leading to rising inflation to match that being experienced in the U.S. Within fixed income, corporate bonds struggled in January and underperformed government bonds, as investors focused on continued elevated inflation and ongoing uncertainty over the U.S. monetary path.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Allspring Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
“ Bonds were strongly affected by the projection of three 25-basis-point (bp; 100 bps equal 1.00%) policy rate hikes in 2022 by senior Federal Open Market Committee members, contrary to just one hike as previously believed.”
| 1 | The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index. |
4 | Government Money Market Funds
Letter to shareholders (unaudited)
Information on transaction closing.
On November 1, 2021, GTCR LLC and Reverence Capital Partners, L.P., announced the beginning of Allspring Global Investments™, with the close of the transaction to acquire Wells Fargo Funds Management, LLC; Wells Capital Management, LLC; Galliard Capital Management, LLC.; Wells Fargo Asset Management (International) Ltd.; Wells Fargo Asset Management Luxembourg S.A.; and Wells Fargo Funds Distributor, LLC, as well as Wells Fargo Bank, N.A.’s business of acting as trustee to its collective investment trusts and all related Wells Fargo Asset Management legal entities. The transaction closed on November 1, 2021, forming Allspring Global Investments, a privately held asset management firm with $575 billion in AUM1 as of December 31, 2021.
Allspring Global Investments™ is a leading independent asset management firm with a full breadth of investment capabilities across diverse asset classes, serving the needs of its institutional and wealth management clients around the world. Allspring operates across 18 offices globally supported by more than 480 investment professionals. Allspring and its investment teams provide a broad range of differentiated investment products and solutions to help its diverse range of clients meet their investment objectives.
As part of this transition, all mutual funds within the Wells Fargo Funds family were rebranded as Allspring Funds. Each individual fund had “Wells Fargo” removed from its fund name and replaced with “Allspring.” The fund name changes went into effect on December 6, 2021.
Allspring Global Investments is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
President
Allspring Funds
Notice to Shareholders
Russia launched a large-scale invasion of Ukraine on February 24, 2022. As a result of this military action, the United States and many other countries have instituted various economic sanctions against Russian individuals and entities. The situation has led to increased financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities, such as oil and natural gas. The extent and duration of the military action, resulting sanctions imposed, other punitive action taken and the resulting market disruptions cannot be easily predicted.
Our solidarity and support goes out to our impacted employees and the people affected in Ukraine and their families. Allspring has a dedicated team of investment professionals actively monitoring the situation for any new developments and the potential impact to our clients and investment products. As the situation remains fluid, we are focused on the assessment of risks, valuation, and liquidity of impacted securities. Please visit our website at allspringglobal.com and click on “Russia-Ukraine Portfolio Impacts” for further information
For further information about your Fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
| 1 | As of December 31, 2021, assets under management (AUM) includes $91.6 billion from Galliard Capital Management, LLC, an investment advisor that is not part of the Allspring trade name/GIPS firm. |
Government Money Market Funds | 5
Performance highlights (unaudited)
| Investment objective | The Fund seeks current income exempt from most state and local individual income taxes, while preserving capital and liquidity. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Michael C. Bird, CFA®‡, Jeffrey L. Weaver, CFA®‡, Laurie White |
| Average annual total returns (%) as of January 31, 2022 | ||||||
| Expense ratios1 (%) | ||||||
| Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
| Class A (WFTXX) | 11-8-1999 | 0.02 | 0.67 | 0.34 | 0.61 | 0.60 |
| Administrator Class (WTRXX) | 6-30-2010 | 0.01 | 0.87 | 0.44 | 0.34 | 0.30 |
| Institutional Class (WOTXX)3 | 10-31-2014 | 0.01 | 0.94 | 0.49 | 0.22 | 0.20 |
| Service Class (NWTXX) | 12-3-1990 | 0.01 | 0.74 | 0.37 | 0.51 | 0.50 |
| 1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
| 2 | The manager has contractually committed through May 31, 2022, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.60% for Class A, 0.30% for Administrator Class, 0.20% for Institutional Class, and 0.50% for Service Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. The manager and/or its affiliates may also voluntarily waive all or a portion of any fees to which they are entitled and/or reimburse certain expenses as they may determine from time to time. Without these caps, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses. |
| 3 | Historical performance shown for the Institutional Class shares prior to their inception reflects the performance of the Administrator Class shares, and includes the higher expenses applicable to the Administrator Class shares. If these expenses had not been included, returns for the Institutional Class shares would be higher. |
| Yield summary (%) as of January 31, 2022 | ||||
| Class A | Administrator Class | Institutional Class | Service Class | |
| 7-day current yield1 | 0.01 | 0.01 | 0.01 | 0.01 |
| 7-day compound yield | 0.01 | 0.01 | 0.01 | 0.01 |
| 30-day simple yield | 0.02 | 0.01 | 0.01 | 0.01 |
| 30-day compound yield | 0.02 | 0.01 | 0.01 | 0.01 |
| 1 | The manager has contractually committed through May 31, 2022, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses and may also voluntarily waive or reimburse additional fees and expenses which may be discontinued or modified at any time without notice. Without these reductions, the Fund’s 7-day current yield would have been -0.36%, -0.22%, -0.13% and -0.34% for Class A, Administrator Class, Institutional Class and Service Class, respectively. |
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 returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, allspringglobal.com.
Money market funds are sold without a front-end sales charge or contingent deferred sales charge. Other fees and expenses apply to an investment in the Fund and are described in the Fund’s current prospectus.
| ‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Government Money Market Funds
Performance highlights (unaudited)
For government money market funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Government Money Market Funds | 7
Performance highlights (unaudited)
MANAGER'S DISCUSSION
Overnight interest rates were near zero for the entirety of the Fund’s fiscal year that ended January 31, 2022, as the U.S. government and U.S. Federal Reserve (Fed), along with other nations and major central banks, continued to support the global economy in the face of the ongoing COVID-19 global pandemic. The fiscal year began and ended with the Fed targeting the range on the federal funds rate at 0.00% to 0.25%. The Fed also bought Treasury and mortgage-backed securities throughout the year in another round of quantitative easing (QE) similar to those taken during the recovery from the 2008 global financial crisis, although it began to wind down those purchases in November 2021, with the intention of completing them in March 2022. Ending QE is the Fed’s first step in removing the monetary accommodation it has provided during the pandemic, and the Fed has signaled its intention to continue to remove the accommodation in 2022 by raising interest rates, reflecting the Fed’s conclusion that both inflation and employment are on paths requiring less monetary assistance.
Although the pandemic continues, the economy’s strong recovery from the economic shock that accompanied its onset in early 2020 continued in 2021, likely due in part to the effectiveness of vaccines and therapeutics. After growing an average of just 0.5% in 2020, U.S. gross domestic product grew an average of 5.5% in 2021, the strongest growth so far this century. The unemployment rate began the fiscal year at 6.4%, down from its pandemic peak of 14.8% in April 2020, and fell to 4.0% by fiscal year-end, a rapid improvement toward full employment that likely encouraged the Fed to begin to remove the accommodation.
| Portfolio composition as of January 31, 20221 |
| 1 | Figures represent the percentage of the Fund's total investments. These amounts are subject to change and may have changed since the date specified. |
In the previous fiscal year, the Fed formalized a commitment to meeting its 2% inflation target when it stated its intention to not raise rates until inflation reached 2% and was on track to moderately exceed 2% for some time. This seemed a significant hurdle, as inflation had rarely risen to 2% and had not exceeded it materially for any length of time over the preceding decade. However, pandemic effects on the workforce and global supply chains combined with the strong fiscal and monetary response to send consumer prices higher in 2021. After ending the prior fiscal year at 1.5%, the Core PCE Price Index*, the Fed’s preferred price measure, rose steadily throughout the year, ending the fiscal year at 4.9%, a level not seen since the 1980s.
Although interest rates on all categories of government money market securities stayed near zero for most of the fiscal year, consistent with the Fed’s stance, interest rates on longer maturity securities rose in the last few months of the fiscal year, reflecting the Fed’s signals of higher rates expected to come in 2022. For example, 3-month Treasury bills (T-bills) yielded an average of 0.03% for the first 11 months of the fiscal year before rising to 0.18% at fiscal year-end. Similarly, 6-month T-bill yields averaged 0.04% for the first 10 months of the fiscal year before rising to 0.45% at the end of the fiscal year.
Our investment strategy remained consistent. We invested in T-bills and U.S. Treasury notes—including floating-rate notes—while taking into account the Fund’s overall level of liquidity and average maturity and seeking to maintain a stable $1.00 net asset value.
| Effective maturity distribution as of January 31, 20221 |
| 1 | Figures represent the percentage of the Fund's total investments. These amounts are subject to change and may have changed since the date specified. |
| * | The Core Personal Consumption Expenditures (PCE) Price Index measures the prices paid by U.S. consumers for domestic goods and services, excluding the prices of food and energy. You cannot invest directly into an index. |
8 | Government Money Market Funds
Performance highlights (unaudited)
Strategic outlook
In the statement issued after its meeting on January 26, 2022, the Fed’s Federal Open Market Committee said: “With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate.” This signal indicates that, after almost two years at nearly zero, money market interest rates look set to move higher in the upcoming fiscal year. The degree to which rates rise will likely depend upon the evolution of the economic recovery, which will in turn depend on many other factors, including the continuing pandemic itself. However, the economic backdrop differs from recent episodes of Fed rate hikes, as the Fed will need to deal with high inflation for the first time in decades. Until it is satisfied that inflation is in check, the Fed is likely to continue to remove accommodation throughout the year.
| Weighted average maturity as of January 31, 20221 |
| 35 days |
| 1 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
| Weighted average life as of January 31, 20221 |
| 75 days |
| 1 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
Government Money Market Funds | 9
Fund expenses (unaudited)
As a shareholder of the Fund, you incur ongoing costs including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from August 1, 2021 to January 31, 2022.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Beginning account value 8-1-2021 | Ending account value 1-31-2022 | Expenses paid during the period1 | Annualized net expense ratio | |
| Class A | ||||
| Actual | $1,000.00 | $1,000.13 | $0.25 | 0.05% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.95 | $0.26 | 0.05% |
| Administrator Class | ||||
| Actual | $1,000.00 | $1,000.06 | $0.30 | 0.06% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.90 | $0.31 | 0.06% |
| Institutional Class | ||||
| Actual | $1,000.00 | $1,000.06 | $0.30 | 0.06% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.90 | $0.31 | 0.06% |
| Service Class | ||||
| Actual | $1,000.00 | $1,000.06 | $0.30 | 0.06% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.90 | $0.31 | 0.06% |
1 Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).
10 | Government Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| U.S. Treasury securities: 111.73% | |||||
| U.S. Cash Management Bill ☼ | 0.07% | 4-5-2022 | $ 50,000,000 | $ 49,993,613 | |
| U.S. Cash Management Bill ☼ | 0.09 | 4-19-2022 | 100,000,000 | 99,981,285 | |
| U.S. Cash Management Bill ☼ | 0.11 | 4-26-2022 | 100,000,000 | 99,973,750 | |
| U.S. Cash Management Bill ☼ | 0.13 | 5-3-2022 | 50,000,000 | 49,983,253 | |
| U.S. Cash Management Bill ☼ | 0.15 | 5-10-2022 | 50,000,000 | 49,980,264 | |
| U.S. Cash Management Bill ☼ | 0.19 | 5-17-2022 | 20,000,000 | 19,988,742 | |
| U.S. Cash Management Bill ☼ | 0.28 | 5-24-2022 | 20,000,000 | 19,982,889 | |
| U.S. Treasury Bill ☼ | 0.04 | 2-1-2022 | 1,364,480,000 | 1,364,480,000 | |
| U.S. Treasury Bill ☼ | 0.04 | 2-3-2022 | 1,220,000,000 | 1,219,997,593 | |
| U.S. Treasury Bill ☼ | 0.04 | 2-22-2022 | 894,140,000 | 894,116,827 | |
| U.S. Treasury Bill ☼ | 0.05 | 2-8-2022 | 549,600,000 | 549,594,657 | |
| U.S. Treasury Bill ☼ | 0.05 | 2-10-2022 | 333,320,000 | 333,315,944 | |
| U.S. Treasury Bill ☼ | 0.05 | 2-17-2022 | 800,000,000 | 799,982,222 | |
| U.S. Treasury Bill ☼ | 0.05 | 2-24-2022 | 780,000,000 | 779,977,065 | |
| U.S. Treasury Bill ☼ | 0.05 | 3-3-2022 | 660,000,000 | 659,972,875 | |
| U.S. Treasury Bill ☼ | 0.05 | 3-8-2022 | 350,000,000 | 349,982,257 | |
| U.S. Treasury Bill ☼ | 0.05 | 3-15-2022 | 350,000,000 | 349,979,408 | |
| U.S. Treasury Bill ☼ | 0.05 | 3-17-2022 | 400,000,000 | 399,974,639 | |
| U.S. Treasury Bill ☼ | 0.06 | 2-15-2022 | 1,370,000,000 | 1,369,977,872 | |
| U.S. Treasury Bill ☼ | 0.06 | 3-1-2022 | 1,500,000,000 | 1,499,952,011 | |
| U.S. Treasury Bill ☼ | 0.06 | 3-10-2022 | 1,210,590,000 | 1,210,526,150 | |
| U.S. Treasury Bill ☼ | 0.08 | 3-22-2022 | 100,000,000 | 99,988,975 | |
| U.S. Treasury Bill ☼ | 0.08 | 3-24-2022 | 400,000,000 | 399,962,813 | |
| U.S. Treasury Bill ☼ | 0.08 | 3-31-2022 | 500,000,000 | 499,933,542 | |
| U.S. Treasury Bill ☼ | 0.08 | 4-14-2022 | 350,000,000 | 349,921,600 | |
| U.S. Treasury Bill ☼ | 0.08 | 4-21-2022 | 330,000,000 | 329,893,537 | |
| U.S. Treasury Bill ☼ | 0.09 | 4-7-2022 | 350,000,000 | 349,945,337 | |
| U.S. Treasury Bill ☼ | 0.10 | 6-2-2022 | 50,000,000 | 49,985,379 | |
| U.S. Treasury Bill ☼ | 0.13 | 3-29-2022 | 300,000,000 | 299,938,400 | |
| U.S. Treasury Bill ☼ | 0.15 | 6-23-2022 | 20,000,000 | 19,988,324 | |
| U.S. Treasury Bill ☼ | 0.16 | 11-3-2022 | 70,000,000 | 69,914,444 | |
| U.S. Treasury Bill ☼ | 0.19 | 4-28-2022 | 300,000,000 | 299,865,267 | |
| U.S. Treasury Bill ☼ | 0.21 | 6-30-2022 | 20,000,000 | 19,982,989 | |
| U.S. Treasury Bill ☼ | 0.22 | 7-7-2022 | 20,000,000 | 19,980,717 | |
| U.S. Treasury Bill ☼ | 0.23 | 5-5-2022 | 250,000,000 | 249,855,917 | |
| U.S. Treasury Bill ☼ | 0.27 | 7-14-2022 | 10,000,000 | 9,987,866 | |
| U.S. Treasury Bill ☼ | 0.36 | 7-21-2022 | 10,000,000 | 9,982,858 | |
| U.S. Treasury Bill ☼ | 0.38 | 7-28-2022 | 10,000,000 | 9,981,415 | |
| U.S. Treasury Bill ☼ | 0.39 | 12-29-2022 | 10,000,000 | 9,964,142 | |
| U.S. Treasury Bill ☼ | 0.62 | 1-26-2023 | 10,000,000 | 9,938,372 | |
| U.S. Treasury Note | 0.13 | 5-31-2022 | 17,000,000 | 17,002,151 | |
| U.S. Treasury Note | 0.13 | 6-30-2022 | 18,000,000 | 18,002,480 | |
| U.S. Treasury Note | 0.13 | 7-31-2022 | 120,000,000 | 120,016,877 | |
| U.S. Treasury Note | 0.13 | 8-31-2022 | 20,000,000 | 20,003,885 | |
| U.S. Treasury Note | 0.13 | 10-31-2022 | 20,000,000 | 20,002,004 | |
| U.S. Treasury Note | 0.13 | 11-30-2022 | 65,000,000 | 64,958,401 | |
| U.S. Treasury Note | 0.13 | 12-31-2022 | 15,000,000 | 14,964,130 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.03%) ± | 0.22 | 4-30-2023 | 360,000,000 | 360,013,078 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.03%) ± | 0.22 | 7-31-2023 | 80,000,000 | 80,003,630 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.04%) ± | 0.23 | 10-31-2023 | 390,000,000 | 390,017,491 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.05%) ± | 0.24 | 1-31-2023 | 170,000,000 | 170,011,316 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 11
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| U.S. Treasury securities (continued) | |||||
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.06%) ± | 0.25% | 7-31-2022 | $ 210,000,000 | $ 209,997,602 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.06%) ± | 0.25 | 10-31-2022 | 400,000,000 | 399,994,191 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.11%) ± | 0.30 | 4-30-2022 | 738,000,000 | 738,019,579 | |
| U.S. Treasury Note | 1.13 | 2-28-2022 | 50,000,000 | 50,038,222 | |
| U.S. Treasury Note | 1.38 | 10-15-2022 | 80,000,000 | 80,690,965 | |
| U.S. Treasury Note | 1.50 | 8-15-2022 | 20,000,000 | 20,151,527 | |
| U.S. Treasury Note | 1.63 | 8-15-2022 | 20,000,000 | 20,164,872 | |
| U.S. Treasury Note | 1.63 | 8-31-2022 | 40,000,000 | 40,353,999 | |
| U.S. Treasury Note | 1.75 | 3-31-2022 | 70,000,000 | 70,186,946 | |
| U.S. Treasury Note | 1.75 | 7-15-2022 | 30,000,000 | 30,223,555 | |
| U.S. Treasury Note | 1.88 | 4-30-2022 | 30,000,000 | 30,129,651 | |
| U.S. Treasury Note | 1.88 | 7-31-2022 | 50,000,000 | 50,438,430 | |
| U.S. Treasury Note | 1.88 | 10-31-2022 | 10,000,000 | 10,131,634 | |
| U.S. Treasury Note | 2.00 | 11-30-2022 | 20,000,000 | 20,266,413 | |
| U.S. Treasury Note | 2.13 | 5-15-2022 | 20,000,000 | 20,115,948 | |
| U.S. Treasury Note | 2.50 | 2-15-2022 | 220,000,000 | 220,204,233 | |
| Total U.S. Treasury securities (Cost $18,566,828,420) | 18,566,828,420 | ||||
| Total investments in securities (Cost $18,566,828,420) | 111.73% | 18,566,828,420 | |||
| Other assets and liabilities, net | (11.73) | (1,949,651,197) | |||
| Total net assets | 100.00% | $16,617,177,223 |
| ± | Variable rate investment. The rate shown is the rate in effect at period end. |
| ☼ | Zero coupon security. The rate represents the current yield to maturity. |
The accompanying notes are an integral part of these financial statements.
12 | Government Money Market Funds
Statement of assets and liabilities—January 31, 2022
| Assets | |
Investments in unaffiliated securities, at amortized cost | $ 18,566,828,420 |
Cash | 9,438 |
Receivable for interest | 4,528,273 |
Receivable for Fund shares sold | 479,996 |
Receivable from manager | 464,070 |
Prepaid expenses and other assets | 716,897 |
Total assets | 18,573,027,094 |
| Liabilities | |
Payable for investments purchased | 1,949,750,761 |
Payable for Fund shares redeemed | 4,636,603 |
Administration fees payable | 1,287,569 |
Dividends payable | 70,365 |
Accrued expenses and other liabilities | 104,573 |
Total liabilities | 1,955,849,871 |
Total net assets | $16,617,177,223 |
| Net assets consist of | |
Paid-in capital | $ 16,617,119,772 |
Total distributable earnings | 57,451 |
Total net assets | $16,617,177,223 |
| Computation of net asset value per share | |
Net assets – Class A | $ 47,408,900 |
Shares outstanding – Class A1 | 47,407,182 |
Net asset value per share – Class A | $1.00 |
Net assets – Administrator Class | $ 435,817,539 |
Shares outstanding – Administrator Class1 | 435,802,894 |
Net asset value per share – Administrator Class | $1.00 |
Net assets – Institutional Class | $ 10,797,672,914 |
Shares outstanding – Institutional Class1 | 10,797,317,817 |
Net asset value per share – Institutional Class | $1.00 |
Net assets – Service Class | $ 5,336,277,870 |
Shares outstanding – Service Class1 | 5,336,081,427 |
Net asset value per share – Service Class | $1.00 |
| 1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 13
Statement of operations—year ended January 31, 2022
| Investment income | |
Interest | $ 12,035,526 |
| Expenses | |
Management fee | 23,650,020 |
| Administration fees | |
Class A | 180,247 |
Administrator Class | 469,486 |
Institutional Class | 8,857,166 |
Service Class | 6,319,586 |
Sweep Class | 56,680 1 |
| Shareholder servicing fees | |
Class A | 204,826 |
Administrator Class | 469,485 |
Service Class | 13,165,808 |
Sweep Class | 472,333 1 |
| Distribution fee | |
Sweep Class | 188,933 1 |
Custody and accounting fees | 590,175 |
Professional fees | 65,954 |
Registration fees | 216,491 |
Shareholder report expenses | 48,177 |
Trustees’ fees and expenses | 19,272 |
Other fees and expenses | 173,704 |
Total expenses | 55,148,343 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level | (28,314,116) |
Class A | (311,336) |
Administrator Class | (563,383) |
Service Class | (15,272,337) |
Sweep Class | (547,906) 1 |
Net expenses | 10,139,265 |
Net investment income | 1,896,261 |
Net realized losses on investments | (58,032) |
Net increase in net assets resulting from operations | $ 1,838,229 |
| 1 | For the period from February 1, 2021 to April 26, 2021. Effective at the close of business on April 26, 2021, Sweep Class shares were liquidated and the class was subsequently closed. |
The accompanying notes are an integral part of these financial statements.
14 | Government Money Market Funds
Statement of changes in net assets
| Year ended January 31, 2022 | Year ended January 31, 2021 | |||
| Operations | ||||
Net investment income | $ 1,896,261 | $ 29,093,012 | ||
Net realized gains (losses) on investments | (58,032) | 159,636 | ||
Net increase in net assets resulting from operations | 1,838,229 | 29,252,648 | ||
| Distributions to shareholders from | ||||
| Net investment income and net realized gains | ||||
Class A | (12,378) | (473,676) | ||
Administrator Class | (50,308) | (1,039,690) | ||
Institutional Class | (1,190,941) | (21,057,299) | ||
Service Class | (567,854) | (6,608,812) | ||
Sweep Class | (30,845) 1 | (614,373) | ||
Total distributions to shareholders | (1,852,326) | (29,793,850) | ||
| Capital share transactions | Shares | Shares | ||
| Proceeds from shares sold | ||||
Class A | 118,470,894 | 118,470,894 | 879,783,683 | 879,783,683 |
Administrator Class | 1,836,092,008 | 1,836,092,008 | 1,892,103,152 | 1,892,103,152 |
Institutional Class | 35,621,095,104 | 35,621,095,104 | 42,133,377,022 | 42,133,377,022 |
Service Class | 25,165,686,665 | 25,165,686,665 | 22,226,504,129 | 22,226,504,129 |
Sweep Class | 1,687,760,994 1 | 1,687,760,994 1 | 7,128,257,353 | 7,128,257,353 |
| 64,429,105,665 | 74,260,025,339 | |||
| Reinvestment of distributions | ||||
Class A | 12,172 | 12,172 | 497,162 | 497,162 |
Administrator Class | 34,027 | 34,027 | 828,749 | 828,749 |
Institutional Class | 648,015 | 648,015 | 12,824,015 | 12,824,015 |
Service Class | 190,790 | 190,790 | 2,348,163 | 2,348,163 |
Sweep Class | 24,216 1 | 24,216 1 | 638,970 | 638,970 |
| 909,220 | 17,137,059 | |||
| Payment for shares redeemed | ||||
Class A | (274,067,705) | (274,067,705) | (1,145,613,117) | (1,145,613,117) |
Administrator Class | (1,893,982,528) | (1,893,982,528) | (1,953,668,446) | (1,953,668,446) |
Institutional Class | (37,145,224,574) | (37,145,224,574) | (37,389,255,328) | (37,389,255,328) |
Service Class | (25,055,393,988) | (25,055,393,988) | (21,233,428,405) | (21,233,428,405) |
Sweep Class | (2,509,539,856) 1 | (2,509,539,856) 1 | (6,849,965,760) | (6,849,965,760) |
| (66,878,208,651) | (68,571,931,056) | |||
Net increase (decrease) in net assets resulting from capital share transactions | (2,448,193,766) | 5,705,231,342 | ||
Total increase (decrease) in net assets | (2,448,207,863) | 5,704,690,140 | ||
| Net assets | ||||
Beginning of period | 19,065,385,086 | 13,360,694,946 | ||
End of period | $ 16,617,177,223 | $ 19,065,385,086 | ||
| 1 | For the period from February 1, 2021 to April 26, 2021. Effective at the close of business on April 26, 2021, Sweep Class shares were liquidated and the class was subsequently closed. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 15
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Class A | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1,2 | 0.00 1 | 0.02 | 0.01 | 0.00 1 |
Net realized gains (losses) on investments | (0.00) 3 | 0.00 1 | 0.00 1 | (0.00) 3 | (0.00) 3 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.01 | 0.00 1 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.01) | (0.00) 1 |
Net realized gains | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.01) | (0.00) 1 |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.02% | 0.14% | 1.54% | 1.35% | 0.32% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.61% | 0.61% | 0.63% | 0.71% | 0.79% |
Net expenses | 0.06% * | 0.31% * | 0.60% | 0.62% | 0.64% |
Net investment income | 0.02% | 0.15% | 1.49% | 1.35% | 0.31% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $47,409 | $202,999 | $468,360 | $384,013 | $291,246 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.54% |
| Year ended January 31, 2021 | 0.29% |
| 1 | Amount is less than $0.005. |
| 2 | Calculated based upon average shares outstanding |
| 3 | Amount is more than $(0.005) |
The accompanying notes are an integral part of these financial statements.
16 | Government Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Administrator Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
Net realized gains (losses) on investments | (0.00) 2 | 0.00 1 | 0.00 1 | (0.00) 2 | (0.00) 2 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net realized gains | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.20% | 1.84% | 1.67% | 0.67% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.34% | 0.34% | 0.36% | 0.44% | 0.52% |
Net expenses | 0.06% * | 0.22% * | 0.30% | 0.30% | 0.30% |
Net investment income | 0.01% | 0.19% | 1.85% | 1.63% | 0.65% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $435,818 | $493,677 | $554,447 | $692,247 | $914,471 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.24% |
| Year ended January 31, 2021 | 0.08% |
| 1 | Amount is less than $0.005. |
| 2 | Amount is more than $(0.005) |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 17
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Institutional Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
Net realized gains (losses) on investments | (0.00) 2 | 0.00 1 | 0.00 1 | (0.00) 2 | (0.00) 2 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net realized gains | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.24% | 1.95% | 1.77% | 0.77% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.23% | 0.22% | 0.24% | 0.31% | 0.40% |
Net expenses | 0.06% * | 0.18% * | 0.20% | 0.20% | 0.20% |
Net investment income | 0.01% | 0.17% | 1.92% | 1.79% | 0.78% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $10,797,673 | $12,321,170 | $7,564,485 | $7,296,690 | $4,700,731 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.14% |
| Year ended January 31, 2021 | 0.02% |
| 1 | Amount is less than $0.005. |
| 2 | Amount is more than $(0.005) |
The accompanying notes are an integral part of these financial statements.
18 | Government Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Service Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.02 | 0.01 | 0.00 1 |
Net realized gains (losses) on investments | (0.00) 2 | 0.00 1 | 0.00 1 | (0.00) 2 | (0.00) 2 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.01 | 0.00 1 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.01) | (0.00) 1 |
Net realized gains | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.01) | (0.00) 1 |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.15% | 1.64% | 1.46% | 0.46% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.52% | 0.51% | 0.53% | 0.61% | 0.69% |
Net expenses | 0.06% * | 0.25% * | 0.50% | 0.50% | 0.50% |
Net investment income | 0.01% | 0.12% | 1.58% | 1.45% | 0.45% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $5,336,278 | $5,225,755 | $4,230,537 | $2,796,397 | $2,945,498 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.44% |
| Year ended January 31, 2021 | 0.25% |
| 1 | Amount is less than $0.005. |
| 2 | Amount is more than $(0.005) |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 19
Notes to financial statements
1. ORGANIZATION
Allspring Funds Trust (the "Trust"), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring 100% Treasury Money Market Fund (the "Fund") which is a diversified series of the Trust.
Effective on November 1, 2021, the sale transaction of Wells Fargo Asset Management ("WFAM") by Wells Fargo & Company to GTCR LLC and Reverence Capital Partners, L.P. was closed. In connection with the closing of the transaction, WFAM became known as Allspring Global Investments (“Allspring”) and various entities that provided services to the Fund changed their names to "Allspring", including Allspring Funds Management, LLC, the investment manager to the Fund, Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited, both registered investment advisers providing subadvisory services to certain funds, and Allspring Funds Distributor, LLC, the Fund's principal underwriter. Consummation of the transaction resulted in a new investment management agreement and subadvisory agreement which became effective on November 1, 2021.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
As permitted under Rule 2a-7 of the 1940 Act, portfolio securities are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Allspring Global Investments Pricing Committee at Allspring Funds Management, LLC ("Allspring Funds Management"). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Allspring Global Investments Pricing Committee which may include items for ratification.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund's commitment to purchase when-issued securities. Securities purchased on a when-issued basis are valued using amortized cost which approximates market value and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated
20 | Government Money Market Funds
Notes to financial statements
at the time of declaration. The tax character of distributions is determined as of the Fund's fiscal year end. Therefore, a portion of the Fund's distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund's tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of January 31, 2022, the cost of investments for federal income tax purposes is substantially the same as for financial reporting purposes.
Class allocations
The separate classes of shares offered by the Fund differ principally in applicable distribution, shareholder servicing and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
| ■ | Level 1 – quoted prices in active markets for identical securities |
| ■ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
| ■ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of January 31, 2022:
| Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
| Assets | ||||
| Investments in: | ||||
| U.S. Treasury securities | $0 | $18,566,828,420 | $0 | $18,566,828,420 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended January 31, 2022, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Allspring Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection
Government Money Market Funds | 21
Notes to financial statements
with the Fund’s operations. As compensation for its services under the investment management agreement, Allspring Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
| Average daily net assets | Management fee |
| First $5 billion | 0.150% |
| Next $5 billion | 0.140 |
| Next $5 billion | 0.130 |
| Next $85 billion | 0.125 |
| Over $100 billion | 0.120 |
Prior to June 1, 2021, the management fee rate was as follows:
| Average daily net assets | Management fee | |
| First $5 billion | 0.150% | |
| Next $5 billion | 0.140 | |
| Over $10 billion | 0.130 |
For the year ended January 31, 2022, the management fee was equivalent to an annual rate of 0.14% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase.
Administration fees
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
| Class-level administration fee | |
| Class A | 0.22% |
| Administrator Class | 0.10 |
| Institutional Class | 0.08 |
| Service Class | 0.12 |
| Sweep Class | 0.03 |
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through May 31, 2022 to waive fees and/or reimburse expenses to the extent necessary to cap expenses. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. In addition to the contractual waivers and/or reimbursements, Allspring Funds Management also voluntarily waived certain class-level expenses during the year ended
22 | Government Money Market Funds
Notes to financial statements
January 31, 2022 in order to maintain a positive yield. These voluntary class-level waivers may be discontinued at any time. The contractual expense caps are as follows:
| Expense ratio caps | |
| Class A | 0.60% |
| Administrator Class | 0.30 |
| Institutional Class | 0.20 |
| Service Class | 0.50 |
Distribution fee
The Trust had adopted a distribution plan for Sweep Class shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee was charged to Sweep Class shares and paid to Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, the principal underwriter, at an annual rate of 0.10% of the average daily net assets of Sweep Class shares.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Service Class and Sweep Class of the Fund are charged a fee at an annual rate of 0.25% of the respective average daily net assets of each class. Administrator Class is charged a fee at an annual rate of 0.10% of its average daily net assets. A portion of these total shareholder servicing fees were paid to affiliates, and to certain entities that were affiliates of the Fund until November 1, 2021.
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices.
5. DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid was $1,852,326 and $29,793,850 of ordinary income for the years ended January 31, 2022 and January 31, 2021, respectively.
As of January 31, 2022, distributable earnings on a tax basis consisted of $130,957 in undistributed ordinary income.
6. INDEMNIFICATION
Under the Fund's organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
7. CORONAVIRUS (COVID-19) PANDEMIC
On March 11, 2020, the World Health Organization announced that it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general. There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial markets.
Government Money Market Funds | 23
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring 100% Treasury Money Market Fund (formerly, Wells Fargo 100% Treasury Money Market Fund) (the Fund), one of the funds constituting Allspring Funds Trust (formerly, Wells Fargo Funds Trust), including the portfolio of investments, as of January 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of January 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of January 31, 2022, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
March 30, 2022
24 | Government Money Market Funds
Other information (unaudited)
TAX INFORMATION
For the fiscal year ended January 31, 2022, $1,722,356 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.
For the fiscal year ended January 31, 2022, $128,818 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.
For the fiscal year ended January 31, 2022, 100% of the ordinary income distributed was derived from interest on U.S. government securities.
For corporate shareholders, pursuant to Section 163(j) of the Internal Revenue Code, 100% of ordinary income dividends qualify as interest dividends for the fiscal year ended January 31, 2022.
PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
SPECIAL MEETING OF SHAREHOLDERS
On October 15, 2021, a Special Meeting of Shareholders for the Fund was held to consider the following proposals. The results of the proposals are indicated below.
Proposal 1 – To consider and approve a new investment management agreement with Wells Fargo Funds Management, LLC*.
| Shares voted “For” | 7,562,408,823 | |
| Shares voted “Against” | 169,831,839 | |
| Shares voted “Abstain” | 1,107,574,959 |
Proposal 2 – To consider and approve a new subadvisory agreement with Wells Capital Management, LLC**.
| Shares voted “For” | 7,572,277,736 | |
| Shares voted “Against” | 180,187,310 | |
| Shares voted “Abstain” | 1,087,350,575 |
* Effective November 1, 2021, known as Allspring Funds Management, LLC.
** Effective November 1, 2021, known as Allspring Global Investments, LLC.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at allspringglobal.com.
Government Money Market Funds | 25
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Allspring family of funds, which consists of 139 mutual funds comprising the Allspring Funds Trust, Allspring Variable Trust, Allspring Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information1. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
| Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
| William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A |
| Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A |
| Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chair, since 2019 | Retired. Chairman of the Board of CIGNA Corporation from 2009 to 2021, and Director from 2005 to 2008. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Fellowship of Christian Athletes. Mr. Harris is a certified public accountant (inactive status). | N/A |
| David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business (Emeritus), Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A |
26 | Government Money Market Funds
Other information (unaudited)
| Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
| Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor since 1993, Wharton School of the University of Pennsylvania. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously taught at Cornell University from 1978 to 1993. | N/A |
| Timothy J. Penny (Born 1951) | Trustee, since 1996; Chair, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A |
| James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A |
| Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019. Interim President of the McKnight Foundation from January to September 2020. McKnight Foundation Consultant, November 2020 to February 2021. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Consultant (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Government Money Market Funds | 27
Other information (unaudited)
Officers2
| Name and year of birth | Position held and length of service | Principal occupations during past five years or longer |
| Andrew Owen (Born 1960) | President, since 2017 | President, Chief Executive Officer and Director of Allspring Funds Management, LLC since 2017 and co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, since 2019. Prior thereto, Head of Affiliated Managers, Allspring Global Investments, from 2014 to 2019 and Executive Vice President responsible for marketing, investments and product development for Allspring Funds Management, LLC, from 2009 to 2014. In addition, Mr. Owen was an Executive Vice President of Wells Fargo & Company from 2014 to 2021. |
| Jeremy DePalma (Born 1974) | Treasurer, since 2012 (for certain funds in the Fund Complex); since 2021 (for the remaining funds in the Fund Complex) | Senior Vice President of Allspring Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration. |
| Kate McKinley (Born 1977) | Chief Legal Officer, since 2021 | Chief Legal Officer of Allspring Global Investments since 2021. Prior thereto, held various roles at State Street Global Advisors beginning in 2010, including serving as Senior Vice President and General Counsel from 2019 to 2021, and Chief Operating Officer of the Institutional Client Group from 2016 - 2019. Prior to working at State Street Global Advisors served as Assistant General Counsel for Bank of America Corporation from 2005 to 2010 and as an Associate at WilmerHale from 2002 to 2005. |
| Christopher Baker (Born 1976) | Chief Compliance Officer, since 2022 | Global Chief Compliance Officer for Allspring Global Investments since 2022. Prior thereto, Chief Compliance Officer for State Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015 Vice President, Global Head of Investment and Marketing Compliance for State Street Global Advisors. |
| Matthew Prasse (Born 1983) | Secretary, since 2021 | Senior Counsel of the Allspring Legal Department since 2021. Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021. Previously, Counsel for Barings LLC from 2015 to 2018. Prior to joining Barings, Associate at Morgan, Lewis & Bockius LLP from 2008 to 2015. |
1 The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at allspringglobal.com.
2 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to 2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
28 | Government Money Market Funds
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund's website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2022 Allspring Global Investments Holdings, LLC. All rights reserved.
PAR-0222-00705 03-22
A300/AR300 01-22
A300/AR300 01-22
Annual Report
January 31, 2022
Government Money Market Funds
| ■ | Allspring Government Money Market Fund |
Contents
| 2 | |
| 6 | |
| 10 | |
| 11 | |
| Financial statements | |
| 21 | |
| 22 | |
| 23 | |
| 24 | |
| 30 | |
| 35 | |
| 36 |
The views expressed and any forward-looking statements are as of January 31, 2022, unless otherwise noted, and are those of the Fund's portfolio managers and/or Allspring Global Investments. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Allspring Global Investments disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.
Government Money Market Funds | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Government Money Market Fund for the 12-month period that ended January 31, 2022. Global stocks yielded mixed results as the global economy continued to emerge from the haze of COVID-19. Tailwinds were provided by global stimulus programs, a rapid vaccination rollout, and recovering consumer and corporate sentiment, only to be dampened by persistent inflation. Bonds also saw mixed performance during the period.
For the 12-month period, equities had mixed returns as policymakers continued to fight the effects of COVID-19. U.S. stocks led both non-U.S. developed market equities and emerging market stocks. Returns by fixed-income securities were also a mix of positive and negative returns. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 23.29%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 3.63%, while the MSCI EM Index (Net) (USD)3 had weaker performance with a -7.23% loss. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -2.97%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned -7.92%, the Bloomberg Municipal Bond Index6 lost -1.89%, and the ICE BofA U.S. High Yield Index7 returned 2.08%.
Efforts to contain COVID-19 drove market performance.
February 2021 saw major domestic equity indexes driven higher on the hope of a new stimulus bill, improving COVID-19 vaccination numbers, and the gradual reopening of the economy. Most S&P 500 companies reported better-than-expected earnings, with positive surprises coming from the financials, information technology, health care, and materials sectors. Japan saw its economy strengthen as a result of strong export numbers. Meanwhile, crude oil prices continued their climb, rising more than 25% for the year. Domestic government bonds experienced a sharp sell-off in late February as markets priced in a more robust economic recovery and higher future growth and inflation expectations.
The passage of the massive domestic stimulus bill highlighted March activity, leading to increased forecasts for U.S. growth in 2021. Domestic employment surged as COVID-19 vaccinations and an increasingly open economy spurred hiring. A majority of U.S. small companies reported they were operating at pre-pandemic capacity or higher. Value stocks continued their outperformance of growth stocks in the month, continuing the trend that started in late 2020. Meanwhile, most major developed global equity indexes were up month to date on the back of rising optimism regarding the outlook for global growth. While the U.S. and the U.K. have been the most successful in terms of the vaccine rollout, even in markets where the vaccine has lagged, such as in the eurozone and Japan, equity indexes in many of those countries have also been in positive territory for the year through March 2021.
| 1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index. |
| 2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
| 3 | The MSCI Emerging Markets (EM) Index (Net) (USD) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
| 4 | The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.-dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
| 5 | The Bloomberg Global Aggregate ex-USD Index (unhedged) is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
| 6 | The Bloomberg Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index. |
| 7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2022. ICE Data Indices, LLC. All rights reserved. |
2 | Government Money Market Funds
Letter to shareholders (unaudited)
Equity markets produced another strong showing in April. Domestically, the continued reopening of the economy had a strong impact on positive equity performance, as people started leaving their households and jobless claims continued to fall. Domestic corporate bonds performed well and the U.S. dollar weakened. Meanwhile, the U.S. government continued to seek to invest in the recovery, this time by outlining a package of over $2 trillion to improve infrastructure. The primary headwind in April was inflation, as investors tried to determine the breadth and longevity of recent price increases. Developed Europe was supported by a meaningful increase in the pace of vaccinations. Unfortunately many emerging market countries were not as successful. India in particular saw COVID-19 cases surge, serving as an example of the need to get vaccinations rolled out to less developed nations.
Vaccine rollouts continued in May, leading to loosened restrictions globally. As a result, equity markets in general saw a minor increase in returns. Concerns that the continued economic rebound could result in inflation increases becoming more than transitory were supported by the higher input costs businesses were experiencing. Meanwhile, those inflation concerns were tempered by the U.S. Federal Reserve (Fed), which stayed steady on its view of the economy and eased fears of a sudden and substantial policy change. Positive performance in the emerging market equity space was supported this month by steady consumer demand and strong commodity prices. Fixed-income markets were also slightly positive for the month, driven by inflation uncertainty and a softer U.S. dollar.
June witnessed the S&P 500 Index reach a new all-time high. 2021 economic growth and inflation forecasts were revised higher to reflect a strong economic recovery and some supply and demand imbalances. Late June saw a deal reached on a U.S. infrastructure package of approximately $1 trillion for road, bridge, and broadband network upgrades over the next eight years. The Fed’s June meeting yielded no change to policy, but its projections pointed to a possible interest rate rise in 2023. This, combined with a rebound in economic activity and investors searching for yield, led to U.S. Treasury yields being down for the month. Many European and Asian countries saw vaccination momentum increase, while the U.K. dealt with a rise in COVID-19 infections, specifically the Delta variant. Meanwhile, crude oil jumped over 10% in June on the back of the pickup in global economic activity and the Organization of the Petroleum Exporting Countries’ (OPEC) slow pace of supply growth.
July began the month seeing vaccinations making progress, as several major developed countries eased restrictions, only to be threatened again by the spread of COVID-19’s Delta variant. Inflation continued to climb, aided by the continued supply bottleneck in the face of high demand. As it pertains to the equity area of the market, U.S. equities led the way in positive return territory followed by international developed markets. In contrast, emerging markets were well in negative territory for the month, hindered by China’s plans for new regulations on a number of sectors, specifically education and technology. The U.S. 10-year Treasury bond yield continued to decline as strong demand swallowed up supply. After hitting a multiyear high earlier in the month, oil prices leveled off following an agreement by OPEC to raise oil production starting in August.
The Delta variant of COVID-19 produced outbreaks globally in August, increasing the potential for increased market volatility and bringing into question the ongoing economic recovery. Domestically, the U.S. economy continued to stay strong in the face of the Delta variant, continued inflationary pressures, and worries over Hurricane Ida. Emerging market equities experienced elevated volatility, largely influenced by China’s regulatory stance. Emerging market equities started the month with poor performance but rebounded to end the month in positive territory. Municipal debt experienced its first monthly performance drop since February 2021, slowing a rally that made it one of the best-performing sectors of the bond market. In the commodity segment of the market, crude oil fell sharply during the month on the back of dampened expectations as a result of the Delta variant but was still a leading asset-class performer for the year through August 2021.
Global markets suffered their broadest retreat in a year during September, with the exception of commodities. Concerns over inflation and the interest rate outlook depressed investor confidence and hurt performance. Emerging markets declined on concerns over the continued supply chain disruptions and worries over higher energy and food prices. Meanwhile, the Fed indicated it would slow the pace of asset purchases in the near future (pointing towards November). All eyes domestically were fixed on the raising of the debt ceiling, the 2022 budget plan, and the ongoing debate over the infrastructure package. Contrary to most asset classes, commodities thrived in September, driven by sharply higher energy prices.
“ Municipal debt experienced its first monthly performance drop since February 2021, slowing a rally that made it one of the best-performing sectors of the bond market.”
Government Money Market Funds | 3
Letter to shareholders (unaudited)
October’s key themes continued to be elevated inflation pressures and a supply bottleneck, but strong earnings provided a bright spot in the markets. Earnings releases in the U.S. were generally strong and consumer confidence was high. The Fed reaffirmed its plans to taper quantitative easing to a stop by mid-2022. Meanwhile, elevated inflation figures were considered transitory by the Fed. Similar to the U.S., the eurozone and many Asian countries saw positive earnings but were facing inflation pressures caused by supply bottlenecks while also experiencing energy price increases amid natural gas shortages. Globally, government bond yields rose as central banks prepared to lower monetary policy accommodation in the face of rising inflationary pressures. As previously referenced, positive commodity performance was driven by sharply higher energy costs.
November was dominated by rising COVID-19 hospitalizations and concerns regarding the Omicron variant. Most major asset classes, both domestically and internationally, declined in November with two exceptions: U.S. investment-grade bonds and Treasury Inflation-Protected Securities. The United Nations Climate Change Conference (COP26) took place during the month with hopes of agreement among countries to limit global warming. While several initiatives were discussed, the conference ultimately ended without the specifics required to instill confidence that the limiting of global warming would succeed. In the U.S., President Biden signed a long-awaited infrastructure bill to upgrade U.S. roads, bridges, and railways. Meanwhile, the Consumer Price Index1, a measure of domestic inflation conditions, jumped to its highest level in 31 years. While the threat of consistently high inflation led the Fed to discuss a faster pace of tapering, the Omicron strain makes that less likely to occur. Commodities came in negative for the month, largely driven by sharp declines in oil prices (and energy costs in general) as well as precious metals.
Global volatility in December lessened as data indicated a lower risk of severe disease and death as a result of the Omicron variant. Even so, a number of countries introduced restrictions on sectors such as travel and hospitality to try to reduce the spread. In the U.S., data indicated that the overall domestic economy remained stable and corporate earnings remained robust. Consumer spending capability looked strong heading into 2022 on the back of elevated household savings and the lowest ratio of U.S. household liabilities to assets since 1973. U.S. corporate and high-yield bonds produced positive returns for the month while Treasuries declined. Bonds were strongly affected by the projection of three 25-basis-point (bp; 100 bps equal 1.00%) policy rate hikes in 2022 by senior Federal Open Market Committee members, contrary to just one hike as previously believed.
Key themes in the first month of 2022 were the potential U.S. interest rate hikes and the Russia-Ukraine conflict. Comments from the Fed suggested a hike in interest rates in March is now likely. Meanwhile, Russia’s potential invasion of Ukraine, could threaten to disrupt its massive energy supplies and drive demand from non-Russian oil-producing countries. Elsewhere overseas, Europe saw food and energy prices spike, leading to rising inflation to match that being experienced in the U.S. Within fixed income, corporate bonds struggled in January and underperformed government bonds, as investors focused on continued elevated inflation and ongoing uncertainty over the U.S. monetary path.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Allspring Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
“ Bonds were strongly affected by the projection of three 25-basis-point (bp; 100 bps equal 1.00%) policy rate hikes in 2022 by senior Federal Open Market Committee members, contrary to just one hike as previously believed.”
| 1 | The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index. |
4 | Government Money Market Funds
Letter to shareholders (unaudited)
Information on transaction closing.
On November 1, 2021, GTCR LLC and Reverence Capital Partners, L.P., announced the beginning of Allspring Global Investments™, with the close of the transaction to acquire Wells Fargo Funds Management, LLC; Wells Capital Management, LLC; Galliard Capital Management, LLC.; Wells Fargo Asset Management (International) Ltd.; Wells Fargo Asset Management Luxembourg S.A.; and Wells Fargo Funds Distributor, LLC, as well as Wells Fargo Bank, N.A.’s business of acting as trustee to its collective investment trusts and all related Wells Fargo Asset Management legal entities. The transaction closed on November 1, 2021, forming Allspring Global Investments, a privately held asset management firm with $575 billion in AUM1 as of December 31, 2021.
Allspring Global Investments™ is a leading independent asset management firm with a full breadth of investment capabilities across diverse asset classes, serving the needs of its institutional and wealth management clients around the world. Allspring operates across 18 offices globally supported by more than 480 investment professionals. Allspring and its investment teams provide a broad range of differentiated investment products and solutions to help its diverse range of clients meet their investment objectives.
As part of this transition, all mutual funds within the Wells Fargo Funds family were rebranded as Allspring Funds. Each individual fund had “Wells Fargo” removed from its fund name and replaced with “Allspring.” The fund name changes went into effect on December 6, 2021.
Allspring Global Investments is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
President
Allspring Funds
Notice to Shareholders
Russia launched a large-scale invasion of Ukraine on February 24, 2022. As a result of this military action, the United States and many other countries have instituted various economic sanctions against Russian individuals and entities. The situation has led to increased financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities, such as oil and natural gas. The extent and duration of the military action, resulting sanctions imposed, other punitive action taken and the resulting market disruptions cannot be easily predicted.
Our solidarity and support goes out to our impacted employees and the people affected in Ukraine and their families. Allspring has a dedicated team of investment professionals actively monitoring the situation for any new developments and the potential impact to our clients and investment products. As the situation remains fluid, we are focused on the assessment of risks, valuation, and liquidity of impacted securities. Please visit our website at allspringglobal.com and click on “Russia-Ukraine Portfolio Impacts” for further information
For further information about your Fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
| 1 | As of December 31, 2021, assets under management (AUM) includes $91.6 billion from Galliard Capital Management, LLC, an investment advisor that is not part of the Allspring trade name/GIPS firm. |
Government Money Market Funds | 5
Performance highlights (unaudited)
| Investment objective | The Fund seeks current income, while preserving capital and liquidity. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Michael C. Bird, CFA®‡, Jeffrey L. Weaver, CFA®‡, Laurie White |
| Average annual total returns (%) as of January 31, 2022 | ||||||
| Expense ratios1 (%) | ||||||
| Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
| Class A (WFGXX) | 11-8-1999 | 0.01 | 0.70 | 0.35 | 0.59 | 0.59 |
| Administrator Class (WGAXX) | 7-31-2003 | 0.01 | 0.86 | 0.45 | 0.32 | 0.32 |
| Institutional Class (GVIXX) | 7-28-2003 | 0.01 | 0.96 | 0.51 | 0.20 | 0.20 |
| Select Class (WFFXX)3 | 6-30-2015 | 0.03 | 1.01 | 0.54 | 0.16 | 0.14 |
| Service Class (NWGXX) | 11-16-1987 | 0.01 | 0.76 | 0.39 | 0.49 | 0.49 |
| Sweep Class 4 | 7-31-2020 | 0.01 | 0.55 | (0.04) | 0.50 | 0.50 |
| 1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
| 2 | The manager has contractually committed through May 31, 2022, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.60% for Class A, 0.34% for Administrator Class, 0.20% for Institutional Class, 0.14% for Select Class, 0.50% for Service Class and 0.50% for Sweep Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. The manager and/or its affiliates may also voluntarily waive all or a portion of any fees to which they are entitled and/or reimburse certain expenses as they may determine from time to time. Without these caps, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses. |
| 3 | Historical performance shown for the Select Class shares prior to their inception reflects the performance of the Institutional Class shares, and includes the higher expenses applicable to the Institutional Class shares. If these expenses had not been included, returns for the Select Class shares would be higher. |
| 4 | Historical performance shown for the Sweep Class shares prior to their inception reflects the performance of the Service Class shares, and includes the higher expenses applicable to the Sweep Class shares. |
| Yield summary (%) as of January 31, 2022 | ||||||
| Class A | Administrator Class | Institutional Class | Select Class | Service Class | Sweep Class | |
| 7-day current yield1 | 0.01 | 0.01 | 0.01 | 0.03 | 0.01 | 0.01 |
| 7-day compound yield | 0.01 | 0.01 | 0.01 | 0.03 | 0.01 | 0.01 |
| 30-day simple yield | 0.01 | 0.01 | 0.01 | 0.03 | 0.01 | 0.01 |
| 30-day compound yield | 0.01 | 0.01 | 0.01 | 0.03 | 0.01 | 0.01 |
| 1 | The manager has contractually committed through May 31, 2022, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses and may also voluntarily waive or reimburse additional fees and expenses which may be discontinued or modified at any time without notice. Without these reductions, the Fund’s 7-day current yield would have been -0.50%, -0.21%, -0.12%, -0.08%, -0.34% and -0.34% for Class A, Administrator Class, Institutional Class, Select Class, Service Class and Sweep Class, respectively. |
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 returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, allspringglobal.com.
Money market funds are sold without a front-end sales charge or contingent deferred sales charge. Other fees and expenses apply to an investment in the Fund and are described in the Fund’s current prospectus.
| ‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Government Money Market Funds
Performance highlights (unaudited)
For government money market funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Government Money Market Funds | 7
Performance highlights (unaudited)
MANAGER'S DISCUSSION
Overnight interest rates were near zero for the entirety of the Fund’s fiscal year that ended January 31, 2022, as the U.S. government and U.S. Federal Reserve (Fed), along with other nations and major central banks, continued to support the global economy in the face of the ongoing COVID-19 global pandemic. The fiscal year began and ended with the Fed targeting the range on the federal funds rate at 0.00% to 0.25%. The Fed also bought Treasury and mortgage-backed securities throughout the year in another round of quantitative easing (QE) similar to those taken during the recovery from the 2008 global financial crisis, although it began to wind down those purchases in November 2021, with the intention of completing them in March 2022. Ending QE is the Fed’s first step in removing the monetary accommodation it has provided during the pandemic, and the Fed has signaled its intention to continue to remove the accommodation in 2022 by raising interest rates, reflecting the Fed’s conclusion that both inflation and employment are on paths requiring less monetary assistance.
Although the pandemic continues, the economy’s strong recovery from the economic shock that accompanied its onset in early 2020 continued in 2021, likely due in part to the effectiveness of vaccines and therapeutics. After growing an average of just 0.5% in 2020, U.S. gross domestic product grew an average of 5.5% in 2021, the strongest growth so far this century. The unemployment rate began the fiscal year at 6.4%, down from its pandemic peak of 14.8% in April 2020, and fell to 4.0% by fiscal year-end, a rapid improvement toward full employment that likely encouraged the Fed to begin to remove the accommodation.
| Portfolio composition as of January 31, 20221 |
| 1 | Figures represent the percentage of the Fund's total investments. These amounts are subject to change and may have changed since the date specified. |
In the previous fiscal year, the Fed formalized a commitment to meeting its 2% inflation target when it stated its intention to not raise rates until inflation reached 2% and was on track to moderately exceed 2% for some time. This seemed a significant hurdle, as inflation had rarely risen to 2% and had not exceeded it materially for any length of time over the preceding decade. However, pandemic effects on the workforce and global supply chains combined with the strong fiscal and monetary response to send consumer prices higher in 2021. After ending the prior fiscal year at 1.5%, the Core PCE Price Index*, the Fed’s preferred price measure, rose steadily throughout the year, ending the fiscal year at 4.9%, a level not seen since the 1980s.
Although interest rates on all categories of government money market securities stayed near zero for most of the fiscal year, consistent with the Fed’s stance, interest rates on longer-maturity securities rose in the last few months of the fiscal year, reflecting the Fed’s signals of higher rates to come in 2022. For example, 3-month Treasury bills (T-bills) yielded an average of 0.03% for the first 11 months of the fiscal year before rising to 0.18% at fiscal year-end. Similarly, 6-month T-bill yields averaged 0.04% for the first 10 months of the fiscal year before rising to 0.45% at the end of the fiscal year. The yields on repurchase agreements (repos) were also very low throughout the fiscal year. Overnight Treasury repo rates, as measured by the Fed’s Secured Overnight Financing Rate, averaged 0.04% for the fiscal year and ended the fiscal year at 0.05%. Similarly, yields on government-sponsored enterprise (GSE) securities were similar to those on T-bills throughout the year.
Our investment strategy continued to emphasize maintaining both a stable $1.00 net asset value and adequate liquidity to meet shareholder redemptions. Accordingly, we invested in T-bills; U.S. Treasury notes; GSE discount notes; and other securities, including floating-rate notes and repos collateralized by Treasury securities and GSE obligations.
| Effective maturity distribution as of January 31, 20221 |
| 1 | Figures represent the percentage of the Fund's total investments. These amounts are subject to change and may have changed since the date specified. |
| * | The Core Personal Consumption Expenditures (PCE) Price Index measures the prices paid by U.S. consumers for domestic goods and services, excluding the prices of food and energy. You cannot invest directly into an index. |
8 | Government Money Market Funds
Performance highlights (unaudited)
Strategic outlook
In the statement issued after its meeting on January 26, 2022, the Fed’s Federal Open Market Committee said: “With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate.” This signal indicates that, after almost two years at nearly zero, money market interest rates look set to move higher in the upcoming fiscal year. The degree to which rates rise will depend upon the evolution of the economic recovery, which will in turn depend on many other factors, including the continuing pandemic itself. However, the economic backdrop differs from recent episodes of Fed rate hikes, as the Fed will need to deal with high inflation for the first time in decades. Until it is satisfied that inflation is in check, the Fed is likely to continue to remove accommodation throughout the year.
| Weighted average maturity as of January 31, 20221 |
| 36 days |
| 1 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
| Weighted average life as of January 31, 20221 |
| 94 days |
| 1 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
Government Money Market Funds | 9
Fund expenses (unaudited)
As a shareholder of the Fund, you incur ongoing costs including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from August 1, 2021 to January 31, 2022.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Beginning account value 8-1-2021 | Ending account value 1-31-2022 | Expenses paid during the period1 | Annualized net expense ratio | |
| Class A | ||||
| Actual | $1,000.00 | $1,000.06 | $0.35 | 0.07% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.85 | $0.36 | 0.07% |
| Administrator Class | ||||
| Actual | $1,000.00 | $1,000.06 | $0.35 | 0.07% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.85 | $0.36 | 0.07% |
| Institutional Class | ||||
| Actual | $1,000.00 | $1,000.06 | $0.35 | 0.07% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.85 | $0.36 | 0.07% |
| Select Class | ||||
| Actual | $1,000.00 | $1,000.13 | $0.25 | 0.05% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.95 | $0.26 | 0.05% |
| Service Class | ||||
| Actual | $1,000.00 | $1,000.06 | $0.35 | 0.07% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.85 | $0.36 | 0.07% |
| Sweep Class | ||||
| Actual | $1,000.00 | $1,000.06 | $0.35 | 0.07% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.85 | $0.36 | 0.07% |
1 Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).
10 | Government Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Corporate bonds and notes: 0.01% | |||||
| Mitchell 2019 Irrevocable Life Insurance Trust § | 0.11% | 9-1-2059 | $ 18,495,000 | $ 18,495,000 | |
| Total Corporate bonds and notes (Cost $18,495,000) | 18,495,000 | ||||
| Government agency debt: 8.27% | |||||
| FFCB (U.S. SOFR +0.04%) ±%% | 0.00 | 2-2-2024 | 130,000,000 | 130,000,000 | |
| FFCB ☼ | 0.05 | 2-11-2022 | 20,000,000 | 19,999,722 | |
| FFCB ☼ | 0.08 | 6-13-2022 | 30,000,000 | 29,991,200 | |
| FFCB (U.S. SOFR +0.04%) ± | 0.09 | 9-20-2023 | 75,000,000 | 75,000,000 | |
| FFCB (U.S. SOFR +0.05%) ±## | 0.10 | 8-25-2022 | 250,000,000 | 249,985,737 | |
| FFCB ☼ | 0.10 | 9-19-2022 | 20,000,000 | 19,987,222 | |
| FFCB (U.S. SOFR +0.05%) ± | 0.10 | 10-16-2023 | 90,000,000 | 90,000,000 | |
| FFCB (U.S. SOFR +0.05%) ± | 0.10 | 11-9-2023 | 50,000,000 | 50,000,000 | |
| FFCB (U.S. SOFR +0.05%) ± | 0.10 | 1-18-2024 | 115,000,000 | 115,000,000 | |
| FFCB (U.S. SOFR +0.06%) ± | 0.11 | 1-13-2023 | 165,000,000 | 165,000,000 | |
| FFCB (U.S. SOFR +0.06%) ± | 0.11 | 1-20-2023 | 98,000,000 | 98,000,000 | |
| FFCB (U.S. SOFR +0.06%) ± | 0.11 | 2-9-2023 | 120,000,000 | 120,000,000 | |
| FFCB (U.S. SOFR +0.08%) ± | 0.13 | 3-10-2022 | 140,000,000 | 140,000,000 | |
| FFCB | 0.13 | 9-12-2022 | 425,000,000 | 424,971,942 | |
| FFCB (U.S. SOFR +0.08%) ± | 0.13 | 10-14-2022 | 165,000,000 | 165,000,000 | |
| FFCB (U.S. SOFR +0.08%) ± | 0.13 | 11-3-2022 | 110,000,000 | 110,000,000 | |
| FFCB (U.S. SOFR +0.09%) ± | 0.14 | 10-7-2022 | 140,000,000 | 140,000,000 | |
| FFCB (U.S. Federal Funds Effective Rate +0.06%) ± | 0.14 | 1-19-2023 | 200,000,000 | 199,990,250 | |
| FFCB ☼ | 0.15 | 10-6-2022 | 5,000,000 | 4,994,854 | |
| FFCB (U.S. SOFR +0.12%) ± | 0.17 | 12-8-2023 | 50,000,000 | 50,074,838 | |
| FFCB (U.S. SOFR +0.13%) ± | 0.18 | 2-11-2022 | 173,400,000 | 173,395,107 | |
| FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.02%) ± | 0.21 | 7-17-2023 | 185,000,000 | 184,965,853 | |
| FFCB (U.S. SOFR +0.17%) ± | 0.22 | 3-15-2022 | 200,000,000 | 199,999,999 | |
| FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.03%) ± | 0.22 | 7-27-2023 | 150,000,000 | 149,988,720 | |
| FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.04%) ± | 0.23 | 5-17-2023 | 185,000,000 | 185,000,000 | |
| FFCB (U.S. SOFR +0.19%) ± | 0.24 | 7-14-2022 | 100,000,000 | 100,000,000 | |
| FFCB (U.S. SOFR +0.20%) ± | 0.25 | 4-22-2022 | 181,500,000 | 181,443,716 | |
| FFCB ☼ | 0.25 | 10-26-2022 | 15,000,000 | 14,972,188 | |
| FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.07%) ± | 0.26 | 10-19-2022 | 195,000,000 | 195,000,000 | |
| FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.06%) ± | 0.30 | 8-1-2022 | 260,000,000 | 259,980,394 | |
| FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.07%) ± | 0.31 | 10-31-2022 | 100,000,000 | 99,999,999 | |
| FFCB (U.S. SOFR +0.38%) ± | 0.43 | 4-22-2022 | 365,000,000 | 365,000,000 | |
| FFCB | 1.60 | 10-13-2022 | 15,000,000 | 15,154,673 | |
| FHLB ☼ | 0.05 | 2-4-2022 | 587,000,000 | 586,997,557 | |
| FHLB ☼ | 0.05 | 2-15-2022 | 350,000,000 | 349,993,196 | |
| FHLB ☼ | 0.05 | 2-16-2022 | 250,000,000 | 249,994,792 | |
| FHLB | 0.05 | 3-25-2022 | 12,000,000 | 11,999,717 | |
| FHLB ☼ | 0.06 | 4-22-2022 | 12,000,000 | 11,998,507 | |
| FHLB ☼ | 0.10 | 4-7-2022 | 289,000,000 | 288,946,059 | |
| FHLB | 0.13 | 8-12-2022 | 25,950,000 | 25,950,509 | |
| FHLB (U.S. SOFR +0.12%) ± | 0.17 | 2-10-2022 | 48,000,000 | 48,000,000 | |
| FHLB | 0.21 | 12-2-2022 | 385,000,000 | 385,000,000 | |
| FHLB | 0.21 | 12-12-2022 | 250,000,000 | 250,000,000 | |
| FHLB (U.S. SOFR +0.35%) ± | 0.40 | 3-28-2022 | 50,000,000 | 50,000,000 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 11
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Government agency debt (continued) | |||||
| FHLMC ☼ | 0.13% | 4-7-2022 | $ 75,000,000 | $ 74,983,073 | |
| FHLMC (U.S. SOFR +0.10%) ± | 0.15 | 9-9-2022 | 200,000,000 | 200,000,000 | |
| FHLMC (U.S. SOFR +0.14%) ± | 0.19 | 4-22-2022 | 648,000,000 | 648,000,000 | |
| FHLMC (U.S. SOFR +0.19%) ± | 0.24 | 6-3-2022 | 200,000,000 | 200,000,000 | |
| FNMA (U.S. SOFR +0.17%) ± | 0.22 | 3-9-2022 | 100,000,000 | 100,000,000 | |
| FNMA (U.S. SOFR +0.18%) ± | 0.23 | 6-3-2022 | 200,000,000 | 200,000,000 | |
| FNMA (U.S. SOFR +0.20%) ± | 0.25 | 6-15-2022 | 200,000,000 | 200,000,000 | |
| FNMA (U.S. SOFR +0.22%) ± | 0.27 | 3-16-2022 | 200,000,000 | 200,000,000 | |
| FNMA (U.S. SOFR +0.23%) ± | 0.28 | 5-6-2022 | 200,000,000 | 200,015,641 | |
| FNMA (U.S. SOFR +0.30%) ± | 0.35 | 4-28-2022 | 300,000,000 | 300,000,000 | |
| FNMA (U.S. SOFR +0.32%) ± | 0.37 | 4-28-2022 | 200,000,000 | 200,000,000 | |
| FNMA (U.S. SOFR +0.35%) ± | 0.40 | 4-7-2022 | 400,000,000 | 400,000,000 | |
| FNMA (U.S. SOFR +0.37%) ± | 0.42 | 3-30-2022 | 250,000,000 | 250,000,000 | |
| FNMA (U.S. SOFR +0.39%) ± | 0.44 | 4-15-2022 | 450,000,000 | 450,000,000 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.08 | 11-15-2025 | 5,557,895 | 5,557,895 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.08 | 10-15-2032 | 17,751,282 | 17,751,282 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.08 | 6-15-2034 | 14,836,325 | 14,836,325 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.11 | 11-15-2022 | 5,425,000 | 5,425,000 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.11 | 11-15-2023 | 10,000,000 | 10,000,000 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.11 | 7-19-2027 | 7,333,334 | 7,333,334 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.11 | 9-20-2027 | 20,535,714 | 20,535,714 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.11 | 3-15-2030 | 18,000,000 | 18,000,000 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.11 | 7-7-2040 | 10,057,212 | 10,057,212 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.11 | 7-7-2040 | 18,285,840 | 18,285,840 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.11 | 7-7-2040 | 7,862,911 | 7,862,911 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.11 | 7-7-2040 | 13,257,235 | 13,257,235 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.12 | 7-9-2026 | 42,270,750 | 42,270,750 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.12 | 1-15-2030 | 12,075,471 | 12,075,471 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.15 | 7-5-2038 | 8,400,000 | 8,400,000 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 1-20-2027 | 56,666,666 | 56,666,666 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 9-2-2031 | 10,133,200 | 10,133,200 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 9-2-2031 | 17,248,000 | 17,248,000 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 9-2-2031 | 10,137,512 | 10,137,512 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 9-2-2031 | 15,376,592 | 15,376,592 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 9-2-2031 | 11,582,032 | 11,582,032 |
The accompanying notes are an integral part of these financial statements.
12 | Government Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Government agency debt (continued) | |||||
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16% | 9-30-2031 | $ 10,055,860 | $ 10,055,860 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 12-20-2031 | 37,209,303 | 37,209,303 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 5-15-2033 | 3,147,654 | 3,147,654 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 1-20-2035 | 9,326,790 | 9,326,790 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 1-20-2035 | 3,768,400 | 3,768,400 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 1-20-2035 | 11,305,200 | 11,305,200 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 1-20-2035 | 9,797,840 | 9,797,840 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 4-20-2035 | 4,753,000 | 4,753,000 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 4-20-2035 | 4,753,000 | 4,753,000 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 4-20-2035 | 16,635,500 | 16,635,500 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 1-15-2040 | 7,656,000 | 7,656,000 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 1-15-2040 | 11,484,000 | 11,484,000 | |
| U.S. International Development Finance Corporation (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 7-15-2040 | 18,725,900 | 18,725,900 | |
| U.S. International Development Finance Corporation Series 1 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 9-30-2031 | 3,959,000 | 3,959,000 | |
| U.S. International Development Finance Corporation Series 1 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 1-15-2040 | 19,140,000 | 19,140,000 | |
| U.S. International Development Finance Corporation Series 2 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.11 | 9-20-2038 | 3,534,212 | 3,534,212 | |
| U.S. International Development Finance Corporation Series 2 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 9-30-2031 | 9,264,060 | 9,264,060 | |
| U.S. International Development Finance Corporation Series 2-2 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 7-15-2040 | 6,587,000 | 6,587,000 | |
| U.S. International Development Finance Corporation Series 4 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.08 | 11-15-2033 | 19,418,804 | 19,418,804 | |
| U.S. International Development Finance Corporation Series 4 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 9-2-2031 | 3,018,400 | 3,018,400 | |
| U.S. International Development Finance Corporation Series 4 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 9-30-2031 | 5,384,240 | 5,384,240 | |
| U.S. International Development Finance Corporation Series 4 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 1-20-2035 | 8,478,900 | 8,478,900 | |
| U.S. International Development Finance Corporation Series 5 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 9-30-2031 | 5,542,600 | 5,542,600 | |
| U.S. International Development Finance Corporation Series 6 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.11 | 7-7-2040 | 4,480,031 | 4,480,031 | |
| U.S. International Development Finance Corporation Series 6 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 9-30-2031 | 16,073,540 | 16,073,540 | |
| U.S. International Development Finance Corporation Series 6 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 4-20-2035 | 8,460,340 | 8,460,340 | |
| U.S. International Development Finance Corporation Series 7 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 9-30-2031 | 6,334,400 | 6,334,400 | |
| U.S. International Development Finance Corporation Series 7 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 1-20-2035 | 2,732,090 | 2,732,090 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 13
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Government agency debt (continued) | |||||
| U.S. International Development Finance Corporation Series 8 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16% | 9-30-2031 | $ 11,877,000 | $ 11,877,000 | |
| U.S. International Development Finance Corporation Series 9 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.08 | 5-15-2030 | 19,584,000 | 19,584,000 | |
| U.S. International Development Finance Corporation Series 9 (U.S. Treasury 3 Month Bill +0.00%) §± | 0.16 | 9-30-2031 | 3,721,460 | 3,721,460 | |
| Total Government agency debt (Cost $11,043,776,960) | 11,043,776,960 | ||||
| Municipal obligations: 0.09% | |||||
| New York: 0.06% | |||||
| Variable rate demand notes ø: 0.06% | |||||
| New York HFA West 23rd Street Series 2002-A (Housing revenue, FNMA LOC, FNMA LIQ) | 0.06 | 5-15-2033 | 47,600,000 | 47,600,000 | |
| New York Housing Development Corporation Related Sierra Series A (Housing revenue, FNMA LOC) | 0.06 | 3-15-2033 | 32,000,000 | 32,000,000 | |
| 79,600,000 | |||||
| Other: 0.03% | |||||
| Variable rate demand notes ø: 0.03% | |||||
| FHLMC MFHR Series M006 Class A (Housing revenue, FHLMC LOC) | 0.20 | 10-15-2045 | 3,495,827 | 3,495,827 | |
| FHLMC MFHR Series M028 Class A (Housing revenue, FHLMC LIQ) 144A | 0.09 | 9-15-2024 | 30,735,000 | 30,735,000 | |
| 34,230,827 | |||||
| Total Municipal obligations (Cost $113,830,827) | 113,830,827 | ||||
| Other instruments: 0.14% | |||||
| ASC Admiral Way LLC §øø | 0.12 | 8-1-2056 | 22,270,000 | 22,270,000 | |
| ASC Mercer Island LLC §øø | 0.30 | 6-1-2057 | 33,900,000 | 33,900,000 | |
| Brandon Place Partners Series 2018 §øø | 0.12 | 12-1-2058 | 15,335,000 | 15,335,000 | |
| Hacienda Senior Villas Series C §øø | 0.12 | 12-1-2058 | 20,575,000 | 20,575,000 | |
| La Mesa Senior Living LP Secured §øø | 0.12 | 8-1-2057 | 48,125,000 | 48,125,000 | |
| Plaza Patria Court Limited §øø | 0.12 | 12-1-2058 | 17,325,000 | 17,325,000 | |
| Rohnert Park 668 LP Series A §øø | 0.12 | 6-1-2058 | 20,920,000 | 20,920,000 | |
| Southside Brookshore §øø | 0.12 | 9-1-2059 | 5,000,000 | 5,000,000 | |
| Total Other instruments (Cost $183,450,000) | 183,450,000 | ||||
| Repurchase agreements^^: 59.83% | |||||
| Bank of America Corporation, dated 1/31/2022, maturity value $1,000,001,389 (01) | 0.05 | 2-1-2022 | 1,000,000,000 | 1,000,000,000 | |
| Bank of Montreal, dated 1/31/2022, maturity value $700,000,972 (02) | 0.05 | 2-1-2022 | 700,000,000 | 700,000,000 | |
| Bank of Montreal, dated 11/10/2021, maturity value $50,050,333 (03) | 0.12 | 9-8-2022 | 50,000,000 | 50,000,000 | |
| Bank of New York Mellon Corporation, dated 1/31/2022, maturity value $1,750,002,674 (04) | 0.06 | 2-1-2022 | 1,750,000,000 | 1,750,000,000 | |
| Bank of New York Mellon Corporation, dated 1/3/2022, maturity value $64,003,307 (05) | 0.06 | 2-3-2022 | 64,000,000 | 64,000,000 | |
| Bank of Nova Scotia New York Agency, dated 1/31/2022, maturity value $1,500,002,292 (06) | 0.06 | 2-1-2022 | 1,500,000,000 | 1,500,000,000 |
The accompanying notes are an integral part of these financial statements.
14 | Government Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Repurchase agreements (continued) | |||||
| Bank of Nova Scotia New York Agency, dated 1/31/2022, maturity value $250,000,382 (07) | 0.06% | 2-1-2022 | $ 250,000,000 | $ 250,000,000 | |
| Barclays Bank plc, dated 1/31/2022, maturity value $2,420,003,361 (08) | 0.05 | 2-1-2022 | 2,420,000,000 | 2,420,000,000 | |
| BNP Paribas, dated 1/31/2022, maturity value $1,090,001,514 (09) | 0.05 | 2-1-2022 | 1,090,000,000 | 1,090,000,000 | |
| BNP Paribas, dated 1/27/2022, maturity value $1,000,009,722 (10) | 0.05 | 2-3-2022 | 1,000,000,000 | 1,000,000,000 | |
| BNP Paribas Securities Corporation, dated 1/31/2022, maturity value $100,000,139 (11) | 0.05 | 2-1-2022 | 100,000,000 | 100,000,000 | |
| Canadian Imperial Bank of Commerce, dated 1/31/2022, maturity value $100,000,139 (12) | 0.05 | 2-1-2022 | 100,000,000 | 100,000,000 | |
| Citibank NA, dated 1/31/2022, maturity value $250,000,417 (13) | 0.06 | 2-1-2022 | 250,000,000 | 250,000,000 | |
| Citibank NA, dated 1/27/2022, maturity value $250,002,917 (14) | 0.06 | 2-3-2022 | 250,000,000 | 250,000,000 | |
| Citigroup Global Markets Incorporated, dated 1/31/2022, maturity value $800,001,111 (15) | 0.05 | 2-1-2022 | 800,000,000 | 800,000,000 | |
| Citigroup Global Markets Incorporated, dated 1/25/2022, maturity value $1,000,011,667 (16) | 0.06 | 2-1-2022 | 1,000,000,000 | 1,000,000,000 | |
| Credit Agricole FICC, dated 1/31/2022, maturity value $1,000,001,389 (17) | 0.05 | 2-1-2022 | 1,000,000,000 | 1,000,000,000 | |
| Credit Agricole SA, dated 1/31/2022, maturity value $410,000,569 (18) | 0.05 | 2-1-2022 | 410,000,000 | 410,000,000 | |
| Daiwa Capital Markets America Incorporated, dated 1/31/2022, maturity value $1,000,001,389 (19) | 0.05 | 2-1-2022 | 1,000,000,000 | 1,000,000,000 | |
| Deutsche Bank Securities, dated 1/31/2022, maturity value $1,000,001,389 (20) | 0.05 | 2-1-2022 | 1,000,000,000 | 1,000,000,000 | |
| Federal Reserve Bank of New York, dated 1/31/2022, maturity value $43,750,060,764 (21) | 0.05 | 2-1-2022 | 43,750,000,000 | 43,749,999,992 | |
| Goldman Sachs & Company, dated 1/31/2022, maturity value $526,000,146 (22) | 0.01 | 2-1-2022 | 526,000,000 | 526,000,000 | |
| Goldman Sachs & Company, dated 1/31/2022, maturity value $100,000,139 (23) | 0.05 | 2-1-2022 | 100,000,000 | 100,000,000 | |
| ING Financial Markets LLC, dated 1/31/2022, maturity value $300,008,993 (24) | 0.05 | 2-1-2022 | 300,008,576 | 300,008,576 | |
| ING Financial Markets LLC, dated 1/19/2022, maturity value $500,047,500 (25) | 0.06 | 3-17-2022 | 500,000,000 | 500,000,000 | |
| ING Financial Markets LLC, dated 11/10/2021, maturity value $50,016,431 (26) | 0.07 | 4-28-2022 | 50,000,000 | 50,000,000 | |
| ING Financial Markets LLC, dated 11/10/2021, maturity value $25,008,750 (27) | 0.07 | 5-9-2022 | 25,000,000 | 25,000,000 | |
| ING Financial Markets LLC, dated 1/19/2022, maturity value $300,110,667 (28) | 0.16 | 4-12-2022 | 300,000,000 | 300,000,000 | |
| JP Morgan Securities, dated 1/31/2022, maturity value $250,000,347 (29) | 0.05 | 2-1-2022 | 250,000,000 | 250,000,000 | |
| JP Morgan Securities, dated 1/31/2022, maturity value $500,000,764 (30) | 0.06 | 2-1-2022 | 500,000,000 | 500,000,000 | |
| JP Morgan Securities , dated 5/24/2019, maturity value $500,956,667 (31) §∂øø | 0.07 | 2-1-2022 | 500,000,000 | 500,000,000 | |
| Mitsubishi Bank, dated 1/25/2022, maturity value $500,004,861 (32) | 0.05 | 2-1-2022 | 500,000,000 | 500,000,000 | |
| Mitsubishi UFJ Financial Group Bank, dated 7/16/2021, maturity value $850,047,222 (33) §∂øø | 0.01 | 2-1-2022 | 850,000,000 | 850,000,000 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 15
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Repurchase agreements (continued) | |||||
| Mitsubishi UFJ Financial Group Securities Canada Limited, dated 1/31/2022, maturity value $4,400,006,111 (34) | 0.05% | 2-1-2022 | $ 4,400,000,000 | $ 4,400,000,000 | |
| Mizuho Bank, dated 1/31/2022, maturity value$250,000,347 (35) | 0.05 | 2-1-2022 | 250,000,000 | 250,000,000 | |
| Nomura Securities Company Limited, dated 1/31/2022, maturity value $2,500,003,472 (36) | 0.05 | 2-1-2022 | 2,500,000,000 | 2,500,000,000 | |
| Royal Bank of Canada, dated 1/7/2022, maturity value $500,021,528 (37) | 0.05 | 2-7-2022 | 500,000,000 | 500,000,000 | |
| Royal Bank of Canada Dominion Securities, dated 1/11/2022, maturity value $1,500,077,500 (38) | 0.06 | 2-11-2022 | 1,500,000,000 | 1,500,000,000 | |
| Societe Generale, dated 1/27/2022, maturity value $500,004,861 (39) | 0.05 | 2-3-2022 | 500,000,000 | 500,000,000 | |
| Societe Generale New York, dated 1/25/2022, maturity value $500,004,861 (40) | 0.05 | 2-1-2022 | 500,000,000 | 500,000,000 | |
| Societe Generale New York, dated 1/4/2022, maturity value $425,021,958 (41) | 0.06 | 2-4-2022 | 425,000,000 | 425,000,000 | |
| Standard Chartered Bank, dated 1/31/2022, maturity value $1,021,425,411 (42) | 0.05 | 2-1-2022 | 1,021,423,992 | 1,021,423,992 | |
| Standard Chartered Bank, dated 1/31/2022, maturity value $2,750,003,819 (43) | 0.05 | 2-1-2022 | 2,750,000,000 | 2,750,000,000 | |
| Sumitomo Mitsui Banking Corporation, dated 11/15/2021, maturity value $462,863,934 (44) | 0.09 | 2-15-2022 | 462,757,500 | 462,757,500 | |
| Sumitomo Mitsui Banking Corporation, dated 12/1/2021, maturity value $278,175,075 (45) | 0.09 | 3-1-2022 | 278,112,500 | 278,112,500 | |
| Sumitomo Mitsui Banking Corporation, dated 12/15/2021, maturity value $188,943,474 (46) | 0.10 | 3-15-2022 | 188,896,250 | 188,896,250 | |
| Sumitomo Mitsui Banking Corporation, dated 12/23/2021, maturity value $142,947,831 (47) | 0.10 | 3-22-2022 | 142,912,500 | 142,912,500 | |
| TD Securities USA Incorporated, dated 1/31/2022, maturity value $628,525,873 (48) | 0.05 | 2-1-2022 | 628,525,000 | 628,525,000 | |
| Total Repurchase agreements (Cost $79,932,636,310) | 79,932,636,310 | ||||
| U.S. Treasury securities: 31.73% | |||||
| U.S. Cash Management Bill ☼ | 0.07 | 4-5-2022 | 250,000,000 | 249,968,063 | |
| U.S. Cash Management Bill ☼ | 0.09 | 4-19-2022 | 400,000,000 | 399,925,139 | |
| U.S. Cash Management Bill ☼ | 0.11 | 4-26-2022 | 300,000,000 | 299,921,250 | |
| U.S. Cash Management Bill ☼ | 0.13 | 5-3-2022 | 300,000,000 | 299,899,521 | |
| U.S. Cash Management Bill ☼ | 0.15 | 5-10-2022 | 400,000,000 | 399,842,111 | |
| U.S. Cash Management Bill ☼ | 0.19 | 5-17-2022 | 50,000,000 | 49,971,854 | |
| U.S. Cash Management Bill ☼ | 0.28 | 5-24-2022 | 50,000,000 | 49,957,222 | |
| U.S. Treasury Bill ☼ | 0.04 | 2-22-2022 | 400,000,000 | 399,987,633 | |
| U.S. Treasury Bill ☼ | 0.05 | 2-10-2022 | 400,000,000 | 399,994,750 | |
| U.S. Treasury Bill ☼ | 0.05 | 2-17-2022 | 350,000,000 | 349,992,222 | |
| U.S. Treasury Bill ☼ | 0.05 | 3-3-2022 | 400,000,000 | 399,983,167 | |
| U.S. Treasury Bill ☼ | 0.05 | 3-8-2022 | 350,000,000 | 349,982,646 | |
| U.S. Treasury Bill ☼ | 0.06 | 2-15-2022 | 300,000,000 | 299,993,467 | |
| U.S. Treasury Bill ☼ | 0.06 | 3-1-2022 | 500,000,000 | 499,978,066 | |
| U.S. Treasury Bill ☼ | 0.06 | 3-10-2022 | 1,650,000,000 | 1,649,890,028 | |
| U.S. Treasury Bill ☼ | 0.08 | 3-22-2022 | 400,000,000 | 399,955,900 | |
| U.S. Treasury Bill ☼ | 0.08 | 3-24-2022 | 800,000,000 | 799,915,886 | |
| U.S. Treasury Bill ☼ | 0.08 | 3-31-2022 | 345,000,000 | 344,953,866 | |
| U.S. Treasury Bill ☼ | 0.08 | 4-14-2022 | 456,000,000 | 455,940,048 | |
| U.S. Treasury Bill ☼ | 0.08 | 4-21-2022 | 500,000,000 | 499,913,759 | |
| U.S. Treasury Bill ☼ | 0.09 | 4-7-2022 | 50,000,000 | 49,992,191 |
The accompanying notes are an integral part of these financial statements.
16 | Government Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| U.S. Treasury securities (continued) | |||||
| U.S. Treasury Bill ☼ | 0.10% | 6-2-2022 | $ 570,000,000 | $ 569,819,340 | |
| U.S. Treasury Bill ☼ | 0.10 | 9-8-2022 | 240,000,000 | 239,850,350 | |
| U.S. Treasury Bill ☼ | 0.11 | 10-6-2022 | 1,280,000,000 | 1,279,059,822 | |
| U.S. Treasury Bill ☼ | 0.13 | 3-29-2022 | 250,000,000 | 249,949,444 | |
| U.S. Treasury Bill ☼ | 0.15 | 6-23-2022 | 150,000,000 | 149,912,433 | |
| U.S. Treasury Bill ☼ | 0.16 | 11-3-2022 | 930,000,000 | 928,884,531 | |
| U.S. Treasury Bill ☼ | 0.19 | 4-28-2022 | 40,000,000 | 39,982,036 | |
| U.S. Treasury Bill ☼ | 0.21 | 6-30-2022 | 150,000,000 | 149,872,419 | |
| U.S. Treasury Bill ☼ | 0.22 | 7-7-2022 | 160,000,000 | 159,845,733 | |
| U.S. Treasury Bill ☼ | 0.27 | 7-14-2022 | 70,000,000 | 69,915,059 | |
| U.S. Treasury Bill ☼ | 0.36 | 7-21-2022 | 50,000,000 | 49,914,292 | |
| U.S. Treasury Bill ☼ | 0.38 | 7-28-2022 | 40,000,000 | 39,925,660 | |
| U.S. Treasury Bill ☼ | 0.39 | 12-29-2022 | 70,000,000 | 69,748,992 | |
| U.S. Treasury Bill ☼ | 0.62 | 1-26-2023 | 40,000,000 | 39,753,487 | |
| U.S. Treasury Note | 0.13 | 5-31-2022 | 220,000,000 | 220,027,831 | |
| U.S. Treasury Note | 0.13 | 6-30-2022 | 180,000,000 | 180,024,805 | |
| U.S. Treasury Note | 0.13 | 7-31-2022 | 810,000,000 | 810,118,971 | |
| U.S. Treasury Note | 0.13 | 8-31-2022 | 230,000,000 | 230,044,673 | |
| U.S. Treasury Note | 0.13 | 9-30-2022 | 885,000,000 | 885,190,875 | |
| U.S. Treasury Note | 0.13 | 10-31-2022 | 1,940,000,000 | 1,940,266,142 | |
| U.S. Treasury Note | 0.13 | 11-30-2022 | 1,220,000,000 | 1,219,496,957 | |
| U.S. Treasury Note | 0.13 | 12-31-2022 | 395,000,000 | 394,243,169 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.03%) ± | 0.22 | 4-30-2023 | 3,600,000,000 | 3,600,125,747 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.03%) ± | 0.22 | 7-31-2023 | 3,150,000,000 | 3,150,095,284 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.04%) ± | 0.23 | 10-31-2023 | 2,190,000,000 | 2,190,100,890 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.05%) ± | 0.24 | 1-31-2023 | 2,100,000,000 | 2,100,128,428 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.06%) ± | 0.25 | 7-31-2022 | 365,000,000 | 364,994,943 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.06%) ± | 0.25 | 10-31-2022 | 2,430,000,000 | 2,429,969,095 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.11%) ± | 0.30 | 4-30-2022 | 250,000,000 | 250,043,651 | |
| U.S. Treasury Note | 0.38 | 3-31-2022 | 749,794,000 | 750,120,853 | |
| U.S. Treasury Note | 1.13 | 2-28-2022 | 390,000,000 | 390,298,129 | |
| U.S. Treasury Note | 1.38 | 10-15-2022 | 620,000,000 | 625,338,988 | |
| U.S. Treasury Note | 1.50 | 8-15-2022 | 100,000,000 | 100,757,633 | |
| U.S. Treasury Note | 1.50 | 9-15-2022 | 225,000,000 | 226,952,812 | |
| U.S. Treasury Note | 1.63 | 8-15-2022 | 240,000,000 | 241,978,483 | |
| U.S. Treasury Note | 1.63 | 8-31-2022 | 470,000,000 | 474,140,947 | |
| U.S. Treasury Note | 1.63 | 11-15-2022 | 85,000,000 | 86,007,937 | |
| U.S. Treasury Note | 1.75 | 2-28-2022 | 570,000,000 | 570,719,646 | |
| U.S. Treasury Note | 1.75 | 3-31-2022 | 612,000,000 | 613,629,375 | |
| U.S. Treasury Note | 1.75 | 4-30-2022 | 225,000,000 | 225,905,389 | |
| U.S. Treasury Note | 1.75 | 5-15-2022 | 200,000,000 | 200,947,724 | |
| U.S. Treasury Note | 1.75 | 6-30-2022 | 110,000,000 | 110,746,776 | |
| U.S. Treasury Note | 1.75 | 7-15-2022 | 470,000,000 | 473,502,180 | |
| U.S. Treasury Note | 1.75 | 9-30-2022 | 592,000,000 | 598,456,355 | |
| U.S. Treasury Note | 1.88 | 3-31-2022 | 665,000,000 | 666,874,059 | |
| U.S. Treasury Note | 1.88 | 4-30-2022 | 75,000,000 | 75,324,126 | |
| U.S. Treasury Note | 1.88 | 7-31-2022 | 1,570,000,000 | 1,583,767,652 | |
| U.S. Treasury Note | 1.88 | 8-31-2022 | 170,000,000 | 171,719,833 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 17
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| U.S. Treasury securities (continued) | |||||
| U.S. Treasury Note | 1.88% | 9-30-2022 | $ 130,000,000 | $ 131,523,195 | |
| U.S. Treasury Note | 1.88 | 10-31-2022 | 40,000,000 | 40,526,537 | |
| U.S. Treasury Note | 2.00 | 7-31-2022 | 420,000,000 | 423,942,020 | |
| U.S. Treasury Note | 2.00 | 10-31-2022 | 180,000,000 | 182,463,857 | |
| U.S. Treasury Note | 2.00 | 11-30-2022 | 340,000,000 | 344,876,077 | |
| U.S. Treasury Note | 2.13 | 5-15-2022 | 120,000,000 | 120,692,404 | |
| U.S. Treasury Note | 2.13 | 12-31-2022 | 170,000,000 | 172,776,255 | |
| U.S. Treasury Note | 2.38 | 3-15-2022 | 50,000,000 | 50,131,031 | |
| U.S. Treasury Note | 2.50 | 2-15-2022 | 85,000,000 | 85,078,350 | |
| Total U.S. Treasury securities (Cost $42,390,462,471) | 42,390,462,471 | ||||
| Total investments in securities (Cost $133,682,651,568) | 100.07% | 133,682,651,568 | |||
| Other assets and liabilities, net | (0.07) | (87,996,362) | |||
| Total net assets | 100.00% | $133,594,655,206 |
The accompanying notes are an integral part of these financial statements.
18 | Government Money Market Funds
Portfolio of investments—January 31, 2022
| § | The security is subject to a demand feature which reduces the effective maturity. |
| ± | Variable rate investment. The rate shown is the rate in effect at period end. |
| ## | All or a portion of this security is segregated for when-issued securities. |
| ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
| 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. |
| øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
| ^^ | Collateralized by: |
| (01) U.S. government securities, 3.00% to 4.00%, 1-20-2047 to 7-20-2049, fair value including accrued interest is $1,030,000,000. | |
| (02) U.S. government securities, 1.34% to 8.00%, 9-1-2023 to 2-1-2052, fair value including accrued interest is $721,000,000. | |
| (03) U.S. government securities, 0.00% to 3.00%, 2-24-2022 to 2-15-2050, fair value including accrued interest is $51,000,010. | |
| (04) U.S. government securities, 0.13% to 3.00%, 2-15-2022 to 8-15-2051, fair value including accrued interest is $1,785,000,046. | |
| (05) U.S. government securities, 0.13% to 3.63%, 10-15-2026 to 4-15-2028, fair value including accrued interest is $66,030,848. | |
| (06) U.S. government securities, 1.75%, 1-31-2029, fair value including accrued interest is $1,530,612,245. | |
| (07) U.S. government securities, 1.63% to 5.00%, 4-1-2034 to 11-20-2051, fair value including accrued interest is $257,500,001. | |
| (08) U.S. government securities, 0.00% to 7.63%, 2-1-2022 to 2-15-2051, fair value including accrued interest is $2,468,400,008. | |
| (09) U.S. government securities, 0.00% to 7.63%, 2-3-2022 to 5-15-2051, fair value including accrued interest is $1,111,800,000. | |
| (10) U.S. government securities, 0.00% to 2.75%, 2-15-2022 to 5-15-2051, fair value including accrued interest is $1,020,000,000. | |
| (11) U.S. government securities, 2.00% to 5.00%, 11-1-2028 to 12-20-2067, fair value including accrued interest is $102,999,974. | |
| (12) U.S. government securities, 0.13% to 7.63%, 8-15-2023 to 12-1-2051, fair value including accrued interest is $102,017,590. | |
| (13) U.S. government securities, 0.00% to 9.00%, 2-4-2022 to 9-15-2065, fair value including accrued interest is $255,352,281. | |
| (14) U.S. government securities, 0.00% to 9.00%, 2-4-2022 to 1-20-2052, fair value including accrued interest is $255,746,704. | |
| (15) U.S. government securities, 0.13% to 6.63%, 3-15-2023 to 6-30-2027, fair value including accrued interest is $816,114,783. | |
| (16) U.S. government securities, 2.00% to 6.00%, 9-20-2050 to 2-20-2051, fair value including accrued interest is $1,030,000,824. | |
| (17) U.S. government securities, 2.75%, 2-15-2024, fair value including accrued interest is $1,019,999,996. | |
| (18) U.S. government securities, 2.00%, 1-20-2051, fair value including accrued interest is $422,300,001. | |
| (19) U.S. government securities, 0.00% to 7.63%, 2-3-2022 to 3-1-2052, fair value including accrued interest is $1,027,349,394. | |
| (20) U.S. government securities, 0.00% to 4.00%, 4-6-2022 to 1-20-2052, fair value including accrued interest is $1,027,906,480. | |
| (21) U.S. government securities, 0.13% to 3.63%, 12-31-2022 to 5-15-2044, fair value including accrued interest is $43,750,060,801. | |
| (22) U.S. government securities, 0.00% to 0.88%, 4-7-2022 to 1-15-2032, fair value including accrued interest is $536,520,043. | |
| (23) U.S. government securities, 2.50% to 5.00%, 7-15-2023 to 1-20-2052, fair value including accrued interest is $103,000,000. | |
| (24) U.S. government securities, 0.00%, 1-26-2023, fair value is $306,008,748. | |
| (25) U.S. government securities, 0.00% to 7.00%, 4-5-2022 to 1-1-2057, fair value including accrued interest is $514,588,330. | |
| (26) U.S. government securities, 1.50% to 3.66%, 11-1-2050 to 8-1-2028, fair value including accrued interest is $51,500,000. | |
| (27) U.S. government securities, 1.50% to 5.00%, 8-1-2028 to 12-1-2051, fair value including accrued interest is $25,750,000. | |
| (28) U.S. government securities, 1.50% to 5.50%, 8-1-2028 to 9-1-2057, fair value including accrued interest is $309,000,000. | |
| (29) U.S. government securities, 1.04% to 8.50%, 1-25-2024 to 1-20-2052, fair value including accrued interest is $255,284,485. | |
| (30) U.S. government securities, 0.00% to 1.88%, 7-31-2022 to 10-15-2026, fair value including accrued interest is $510,000,128. | |
| (31) U.S. government securities, 0.00% to 8.00%, 5-22-2023 to 9-20-2056, fair value including accrued interest is $512,735,781. | |
| (32) U.S. government securities, 0.00% to 3.38%, 8-15-2022 to 2-15-2043, fair value including accrued interest is $510,000,004. | |
| (33) U.S. government securities, 0.00% to 5.38%, 9-15-2022 to 9-15-2060, fair value including accrued interest is $870,671,756. | |
| (34) U.S. government securities, 0.00% to 6.38%, 2-15-2022 to 3-15-2063, fair value including accrued interest is $4,521,344,286. | |
| (35) U.S. government securities, 2.50%, 3-31-2023, fair value including accrued interest is $255,000,059. | |
| (36) U.S. government securities, 0.00% to 2.88%, 3-15-2022 to 8-15-2049, fair value including accrued interest is $2,550,000,073. | |
| (37) U.S. government securities, 1.50% to 4.50%, 10-1-2035 to 12-1-2051, fair value including accrued interest is $515,000,000. | |
| (38) U.S. government securities, 0.00% to 7.13%, 4-5-2022 to 12-20-2051, fair value including accrued interest is $1,537,798,887. | |
| (39) U.S. government securities, 0.00% to 3.88%, 6-2-2022 to 8-15-2049, fair value including accrued interest is $510,000,071. | |
| (40) U.S. government securities, 0.00% to 7.63%, 3-10-2022 to 2-1-2057, fair value including accrued interest is $510,793,381. | |
| (41) U.S. government securities, 0.00% to 7.63%, 2-3-2022 to 5-15-2050, fair value including accrued interest is $433,500,001. | |
| (42) U.S. government securities, 1.13% to 2.88%, 5-15-2028 to 9-30-2028, fair value including accrued interest is $1,042,269,380. | |
| (43) U.S. government securities, 0.00% to 4.38%, 2-22-2022 to 11-15-2051, fair value including accrued interest is $2,805,000,013. | |
| (44) U.S. government securities, 0.38% to 3.50%, 3-31-2022 to 2-1-2051, fair value including accrued interest is $476,554,723. | |
| (45) U.S. government securities, 0.38% to 3.50%, 3-31-2022 to 3-1-2048, fair value including accrued interest is $286,371,453. | |
| (46) U.S. government securities, 0.38% to 3.50%, 3-31-2022 to 5-1-2048, fair value including accrued interest is $194,540,022. | |
| (47) U.S. government securities, 0.38% to 3.50%, 3-31-2022 to 1-20-2050, fair value including accrued interest is $147,223,827. | |
| (48) U.S. government securities, 1.50% to 8.00%, 8-1-2022 to 2-1-2052, fair value including accrued interest is $647,380,750. | |
| ∂ | The security represents a long-dated and extendible repurchase agreement which automatically renews on previously set terms. The maturity date represents the next put date. |
| ☼ | Zero coupon security. The rate represents the current yield to maturity. |
| %% | The security is purchased on a when-issued basis. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 19
Portfolio of investments—January 31, 2022
| Abbreviations: | |
| FFCB | Federal Farm Credit Banks |
| FHLB | Federal Home Loan Bank |
| FHLMC | Federal Home Loan Mortgage Corporation |
| FNMA | Federal National Mortgage Association |
| HFA | Housing Finance Authority |
| LIQ | Liquidity agreement |
| LOC | Letter of credit |
| MFHR | Multifamily housing revenue |
| SOFR | Secured Overnight Financing Rate |
The accompanying notes are an integral part of these financial statements.
20 | Government Money Market Funds
Statement of assets and liabilities—January 31, 2022
| Assets | |
Investments in unaffiliated securities, at amortized cost | $ 53,750,015,258 |
Investments in repurchase agreements, at amortized cost | 79,932,636,310 |
Cash | 4,250,001 |
Receivable for investments sold | 249,973,438 |
Receivable for interest | 38,590,043 |
Receivable for Fund shares sold | 3,348,622 |
Prepaid expenses and other assets | 5,900,764 |
Total assets | 133,984,714,436 |
| Liabilities | |
Payable for investments purchased | 249,949,444 |
Payable for when-issued transactions | 130,000,000 |
Administration fees payable | 6,324,443 |
Payable for Fund shares redeemed | 2,543,265 |
Dividends payable | 805,806 |
Management fee payable | 401,079 |
Distribution fee payable | 35,193 |
Total liabilities | 390,059,230 |
Total net assets | $133,594,655,206 |
| Net assets consist of | |
Paid-in capital | $ 133,594,445,804 |
Total distributable earnings | 209,402 |
Total net assets | $133,594,655,206 |
| Computation of net asset value per share | |
Net assets – Class A | $ 316,458,565 |
Shares outstanding – Class A1 | 316,458,281 |
Net asset value per share – Class A | $1.00 |
Net assets – Administrator Class | $ 5,027,251,871 |
Shares outstanding – Administrator Class1 | 5,027,248,421 |
Net asset value per share – Administrator Class | $1.00 |
Net assets – Institutional Class | $ 40,078,395,223 |
Shares outstanding – Institutional Class1 | 40,078,402,910 |
Net asset value per share – Institutional Class | $1.00 |
Net assets – Select Class | $ 85,197,343,948 |
Shares outstanding – Select Class1 | 85,197,188,309 |
Net asset value per share – Select Class | $1.00 |
Net assets – Service Class | $ 1,873,382,051 |
Shares outstanding – Service Class1 | 1,873,385,577 |
Net asset value per share – Service Class | $1.00 |
Net assets – Sweep Class | $ 1,101,823,548 |
Shares outstanding – Sweep Class1 | 1,101,824,210 |
Net asset value per share – Sweep Class | $1.00 |
| 1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 21
Statement of operations—year ended January 31, 2022
| Investment income | |
Interest | $ 108,604,386 |
| Expenses | |
Management fee | 182,563,604 |
| Administration fees | |
Class A | 674,606 |
Administrator Class | 3,882,564 |
Institutional Class | 32,877,023 |
Select Class | 38,290,351 |
Service Class | 2,314,165 |
Sweep Class | 249,781 |
| Shareholder servicing fees | |
Class A | 766,598 |
Administrator Class | 3,882,565 |
Service Class | 4,821,159 |
Sweep Class | 2,081,506 |
| Distribution fee | |
Sweep Class | 832,603 |
Custody and accounting fees | 4,722,134 |
Professional fees | 90,479 |
Registration fees | 1,425,087 |
Shareholder report expenses | 98,072 |
Trustees’ fees and expenses | 19,272 |
Other fees and expenses | 1,252,518 |
Total expenses | 280,844,087 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level | (177,456,895) |
Class A | (1,266,216) |
Administrator Class | (5,536,115) |
Institutional Class | (9,526,660) |
Service Class | (6,039,634) |
Sweep Class | (2,717,549) |
Net expenses | 78,301,018 |
Net investment income | 30,303,368 |
Net realized gains on investments | 425,866 |
Net increase in net assets resulting from operations | $ 30,729,234 |
The accompanying notes are an integral part of these financial statements.
22 | Government Money Market Funds
Statement of changes in net assets
| Year ended January 31, 2022 | Year ended January 31, 2021 | |||
| Operations | ||||
Net investment income | $ 30,303,368 | $ 234,013,463 | ||
Net realized gains on investments | 425,866 | 848,637 | ||
Net increase in net assets resulting from operations | 30,729,234 | 234,862,100 | ||
| Distributions to shareholders from | ||||
| Net investment income and net realized gains | ||||
Class A | (32,156) | (444,535) | ||
Administrator Class | (407,833) | (5,053,047) | ||
Institutional Class | (4,315,675) | (65,216,497) | ||
Select Class | (25,942,933) | (161,056,607) | ||
Service Class | (201,661) | (2,796,854) | ||
Sweep Class | (89,466) | (5) 1 | ||
Total distributions to shareholders | (30,989,724) | (234,567,545) | ||
| Capital share transactions | Shares | Shares | ||
| Proceeds from shares sold | ||||
Class A | 101,363,824 | 101,363,824 | 245,392,922 | 245,392,922 |
Administrator Class | 21,325,222,248 | 21,325,222,248 | 18,923,119,258 | 18,923,119,258 |
Institutional Class | 197,535,730,467 | 197,535,730,467 | 220,379,617,551 | 220,379,617,551 |
Select Class | 1,160,483,999,071 | 1,160,483,999,071 | 819,624,460,567 | 819,624,460,567 |
Service Class | 77,872,528,777 | 77,872,528,777 | 88,311,417,547 | 88,311,417,547 |
Sweep Class | 7,001,689,901 | 7,001,689,901 | 1,465,010 1 | 1,465,010 1 |
| 1,464,320,534,288 | 1,147,485,472,855 | |||
| Reinvestment of distributions | ||||
Class A | 31,866 | 31,866 | 461,983 | 461,983 |
Administrator Class | 188,849 | 188,849 | 1,925,746 | 1,925,746 |
Institutional Class | 1,487,445 | 1,487,445 | 22,578,181 | 22,578,181 |
Select Class | 16,408,984 | 16,408,984 | 103,202,391 | 103,202,391 |
Service Class | 19,548 | 19,548 | 262,945 | 262,945 |
Sweep Class | 89,474 | 89,474 | 3 1 | 3 1 |
| 18,226,166 | 128,431,249 | |||
| Payment for shares redeemed | ||||
Class A | (91,800,580) | (91,800,580) | (305,591,017) | (305,591,017) |
Administrator Class | (20,838,430,663) | (20,838,430,663) | (18,278,691,699) | (18,278,691,699) |
Institutional Class | (200,342,145,260) | (200,342,145,260) | (206,547,476,608) | (206,547,476,608) |
Select Class | (1,170,469,084,534) | (1,170,469,084,534) | (776,516,340,075) | (776,516,340,075) |
Service Class | (77,862,043,660) | (77,862,043,660) | (88,443,707,111) | (88,443,707,111) |
Sweep Class | (5,901,420,153) | (5,901,420,153) | (25) 1 | (25) 1 |
| (1,475,504,924,850) | (1,090,091,806,535) | |||
Net increase (decrease) in net assets resulting from capital share transactions | (11,166,164,396) | 57,522,097,569 | ||
Total increase (decrease) in net assets | (11,166,424,886) | 57,522,392,124 | ||
| Net assets | ||||
Beginning of period | 144,761,080,092 | 87,238,687,968 | ||
End of period | $ 133,594,655,206 | $ 144,761,080,092 | ||
| 1 | For the period from July 31, 2020 (commencement of class operations) to January 31, 2021 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 23
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Class A | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.02 | 0.01 | 0.00 1 |
Net realized gains (losses) on investments | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.01 | 0.00 1 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.01) | (0.00) 1 |
Net realized gains | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.01) | (0.00) 1 |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.13% | 1.59% | 1.38% | 0.38% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.60% | 0.60% | 0.61% | 0.61% | 0.61% |
Net expenses | 0.07% * | 0.28% * | 0.60% | 0.60% | 0.61% |
Net investment income | 0.01% | 0.13% | 1.56% | 1.39% | 0.38% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $316,459 | $306,864 | $366,601 | $311,616 | $264,735 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.53% |
| Year ended January 31, 2021 | 0.32% |
| 1 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
24 | Government Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Administrator Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
Net realized gains (losses) on investments | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net realized gains | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.17% | 1.85% | 1.65% | 0.65% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.33% | 0.33% | 0.34% | 0.34% | 0.34% |
Net expenses | 0.07% * | 0.22% * | 0.34% | 0.34% | 0.34% |
Net investment income | 0.01% | 0.14% | 1.81% | 1.67% | 0.72% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $5,027,252 | $4,540,262 | $3,893,928 | $2,411,490 | $1,554,764 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.27% |
| Year ended January 31, 2021 | 0.11% |
| 1 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 25
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Institutional Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
Net realized gains (losses) on investments | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net realized gains | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.22% | 1.99% | 1.79% | 0.79% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.21% | 0.21% | 0.22% | 0.22% | 0.22% |
Net expenses | 0.07% * | 0.18% * | 0.20% | 0.20% | 0.20% |
Net investment income | 0.01% | 0.16% | 1.97% | 1.79% | 0.79% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $40,078,395 | $42,883,663 | $29,289,517 | $26,000,569 | $21,931,321 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.13% |
| Year ended January 31, 2021 | 0.02% |
| 1 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
26 | Government Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Select Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
Net realized gains (losses) on investments | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net realized gains | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.03% | 0.26% | 2.05% | 1.85% | 0.85% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.17% | 0.17% | 0.18% | 0.18% | 0.18% |
Net expenses | 0.05% 2 | 0.14% | 0.14% | 0.14% | 0.14% |
Net investment income | 0.03% | 0.19% | 2.02% | 1.82% | 0.86% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $85,197,344 | $95,165,936 | $51,954,718 | $45,335,385 | $46,288,730 |
| 1 | Amount is less than $0.005. |
| 2 | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would have been 0.09% higher. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 27
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Service Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.02 | 0.01 | 0.00 1 |
Net realized gains (losses) on investments | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.01 | 0.00 1 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.01) | (0.00) 1 |
Net realized gains | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.01) | (0.00) 1 |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.14% | 1.69% | 1.48% | 0.49% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.50% | 0.50% | 0.51% | 0.51% | 0.51% |
Net expenses | 0.07% * | 0.25% * | 0.50% | 0.50% | 0.50% |
Net investment income | 0.01% | 0.13% | 1.67% | 1.45% | 0.48% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $1,873,382 | $1,862,889 | $1,994,923 | $1,856,426 | $2,506,898 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.43% |
| Year ended January 31, 2021 | 0.25% |
| 1 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
28 | Government Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | ||
| Sweep Class | 2022 | 2021 1 |
Net asset value, beginning of period | $1.00 | $1.00 |
Net investment income | 0.00 2 | 0.00 2 |
Net realized gains (losses) on investments | 0.00 2 | 0.00 2 |
Total from investment operations | 0.00 2 | 0.00 2 |
| Distributions to shareholders from | ||
Net investment income | (0.00) 2 | (0.00) 2 |
Net realized gains | (0.00) 2 | (0.00) 2 |
Total distributions to shareholders | (0.00) 2 | (0.00) 2 |
Net asset value, end of period | $1.00 | $1.00 |
Total return3 | 0.01% | 0.01% |
| Ratios to average net assets (annualized) | ||
Gross expenses | 0.51% | 0.56% |
Net expenses | 0.06% * | 0.13% * |
Net investment income | 0.01% | 0.01% |
| Supplemental data | ||
Net assets, end of period (000s omitted) | $1,101,824 | $1,465 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.44% |
| Year ended January 31, 2021 | 0.37% |
| 1 | For the period from July 31, 2020 (commencement of class operations) to January 31, 2021 |
| 2 | Amount is less than $0.005. |
| 3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 29
Notes to financial statements
1. ORGANIZATION
Allspring Funds Trust (the "Trust"), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Government Money Market Fund (the "Fund") which is a diversified series of the Trust.
Effective on November 1, 2021, the sale transaction of Wells Fargo Asset Management ("WFAM") by Wells Fargo & Company to GTCR LLC and Reverence Capital Partners, L.P. was closed. In connection with the closing of the transaction, WFAM became known as Allspring Global Investments (“Allspring”) and various entities that provided services to the Fund changed their names to "Allspring", including Allspring Funds Management, LLC, the investment manager to the Fund, Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited, both registered investment advisers providing subadvisory services to certain funds, and Allspring Funds Distributor, LLC, the Fund's principal underwriter. Consummation of the transaction resulted in a new investment management agreement and subadvisory agreement which became effective on November 1, 2021.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
As permitted under Rule 2a-7 of the 1940 Act, portfolio securities are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Allspring Global Investments Pricing Committee at Allspring Funds Management, LLC ("Allspring Funds Management"). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Allspring Global Investments Pricing Committee which may include items for ratification.
Repurchase agreements
The Fund may invest in repurchase agreements and may participate in pooled repurchase agreement transactions with other funds advised by Allspring Funds Management. Repurchase agreements are agreements where the seller of a security to the Fund agrees to repurchase that security from the Fund at a mutually agreed upon time and price. The repurchase agreements must be fully collateralized based on values that are marked-to-market daily. The collateral may be held by an agent bank under a tri-party agreement. It is the custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain market value equal to or greater than the resale price (including accrued interest). The repurchase agreements are collateralized by securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. There could be potential loss to the Fund in the event that the Fund is delayed or prevented from exercising its rights to dispose of the collateral, including the risk of a possible decline in the value of the underlying obligations during the period in which the Fund seeks to assert its rights.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund's commitment to purchase when-issued securities. Securities purchased on a when-issued basis are valued using amortized cost which approximates market value and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
30 | Government Money Market Funds
Notes to financial statements
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund's fiscal year end. Therefore, a portion of the Fund's distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund's tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of January 31, 2022, the cost of investments for federal income tax purposes is substantially the same as for financial reporting purposes.
Class allocations
The separate classes of shares offered by the Fund differ principally in applicable distribution, shareholder servicing and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
| ■ | Level 1 – quoted prices in active markets for identical securities |
| ■ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
| ■ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
Government Money Market Funds | 31
Notes to financial statements
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of January 31, 2022:
| Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
| Assets | ||||
| Investments in: | ||||
| Corporate bonds and notes | $0 | $ 18,495,000 | $0 | $ 18,495,000 |
| Government agency debt | 0 | 11,043,776,960 | 0 | 11,043,776,960 |
| Municipal obligations | 0 | 113,830,827 | 0 | 113,830,827 |
| Other instruments | 0 | 183,450,000 | 0 | 183,450,000 |
| Repurchase agreements | 0 | 79,932,636,310 | 0 | 79,932,636,310 |
| U.S. Treasury securities | 0 | 42,390,462,471 | 0 | 42,390,462,471 |
| Total assets | $0 | $133,682,651,568 | $0 | $133,682,651,568 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended January 31, 2022, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Allspring Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Allspring Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
| Average daily net assets | Management fee |
| First $5 billion | 0.150% |
| Next $5 billion | 0.140 |
| Next $5 billion | 0.130 |
| Next $85 billion | 0.125 |
| Over $100 billion | 0.120 |
Prior to June 1, 2021, the management fee rate was as follows:
| Average daily net assets | Management fee | |
| First $5 billion | 0.150% | |
| Next $5 billion | 0.140 | |
| Over $10 billion | 0.130 |
For the year ended January 31, 2022, the management fee was equivalent to an annual rate of 0.13% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase.
32 | Government Money Market Funds
Notes to financial statements
Administration fees
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
| Class-level administration fee | |
| Class A | 0.22% |
| Administrator Class | 0.10 |
| Institutional Class | 0.08 |
| Select Class | 0.04 |
| Service Class | 0.12 |
| Sweep Class | 0.03 |
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through May 31, 2022 to waive fees and/or reimburse expenses to the extent necessary to cap expenses. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. In addition to the contractual waivers and/or reimbursements, Allspring Funds Management also voluntarily waived certain class-level expenses during the year ended January 31, 2022 in order to maintain a positive yield. These voluntary class-level waivers may be discontinued at any time. The contractual expense caps are as follows:
| Expense ratio caps | |
| Class A | 0.60% |
| Administrator Class | 0.34 |
| Institutional Class | 0.20 |
| Select Class | 0.14 |
| Service Class | 0.50 |
| Sweep Class | 0.50 |
Distribution fee
The Trust has adopted a distribution plan for Sweep Class shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Sweep Class shares and paid to Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, the principal underwriter, at an annual rate of 0.10% of the average daily net assets of Sweep Class shares.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Service Class and Sweep Class of the Fund are charged a fee at an annual rate of 0.25% of the respective average daily net assets of each class. Administrator Class is charged a fee at an annual rate of 0.10% of its average daily net assets. A portion of these total shareholder servicing fees were paid to affiliates, and to certain entities that were affiliates of the Fund until November 1, 2021.
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices.
Government Money Market Funds | 33
Notes to financial statements
5. DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid during the years ended January 31, 2022 and January 31, 2021 were as follows:
| Year ended January 31 | ||
| 2022 | 2021 | |
| Ordinary income | $30,988,366 | $234,567,545 |
| Long-term capital gain | 1,358 | 0 |
As of January 31, 2022, distributable earnings on a tax basis consisted of $1,049,719 in undistributed ordinary income.
6. INDEMNIFICATION
Under the Fund's organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
7. CORONAVIRUS (COVID-19) PANDEMIC
On March 11, 2020, the World Health Organization announced that it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general. There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial markets.
34 | Government Money Market Funds
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring Government Money Market Fund (formerly, Wells Fargo Government Money Market Fund) (the Fund), one of the funds constituting Allspring Funds Trust (formerly, Wells Fargo Funds Trust), including the portfolio of investments, as of January 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of January 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of January 31, 2022, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
March 30, 2022
Government Money Market Funds | 35
Other information (unaudited)
TAX INFORMATION
Pursuant to Section 852 of the Internal Revenue Code, $1,358 was designated as a 20% rate gain distribution for the fiscal year ended January 31, 2022.
For the fiscal year ended January 31, 2022, $30,567,494 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.
For the fiscal year ended January 31, 2022, $684,999 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.
For the fiscal year ended January 31, 2022, 40% of the ordinary income distributed was derived from interest on U.S. government securities.
For corporate shareholders, pursuant to Section 163(j) of the Internal Revenue Code, 100% of ordinary income dividends qualify as interest dividends for the fiscal year ended January 31, 2022.
PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
SPECIAL MEETING OF SHAREHOLDERS
On October 15, 2021, a Special Meeting of Shareholders for the Fund was held to consider the following proposals. The results of the proposals are indicated below.
Proposal 1 – To consider and approve a new investment management agreement with Wells Fargo Funds Management, LLC*.
| Shares voted “For” | 69,963,209,979 | |
| Shares voted “Against” | 762,832,182 | |
| Shares voted “Abstain” | 10,838,033,984 |
Proposal 2 – To consider and approve a new subadvisory agreement with Wells Capital Management, LLC**.
| Shares voted “For” | 69,616,187,947 | |
| Shares voted “Against” | 768,007,824 | |
| Shares voted “Abstain” | 11,179,880,374 |
* Effective November 1, 2021, known as Allspring Funds Management, LLC.
** Effective November 1, 2021, known as Allspring Global Investments, LLC.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at allspringglobal.com.
36 | Government Money Market Funds
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Allspring family of funds, which consists of 139 mutual funds comprising the Allspring Funds Trust, Allspring Variable Trust, Allspring Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information1. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
| Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
| William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A |
| Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A |
| Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chair, since 2019 | Retired. Chairman of the Board of CIGNA Corporation from 2009 to 2021, and Director from 2005 to 2008. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Fellowship of Christian Athletes. Mr. Harris is a certified public accountant (inactive status). | N/A |
| David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business (Emeritus), Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A |
Government Money Market Funds | 37
Other information (unaudited)
| Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
| Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor since 1993, Wharton School of the University of Pennsylvania. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously taught at Cornell University from 1978 to 1993. | N/A |
| Timothy J. Penny (Born 1951) | Trustee, since 1996; Chair, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A |
| James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A |
| Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019. Interim President of the McKnight Foundation from January to September 2020. McKnight Foundation Consultant, November 2020 to February 2021. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Consultant (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
38 | Government Money Market Funds
Other information (unaudited)
Officers2
| Name and year of birth | Position held and length of service | Principal occupations during past five years or longer |
| Andrew Owen (Born 1960) | President, since 2017 | President, Chief Executive Officer and Director of Allspring Funds Management, LLC since 2017 and co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, since 2019. Prior thereto, Head of Affiliated Managers, Allspring Global Investments, from 2014 to 2019 and Executive Vice President responsible for marketing, investments and product development for Allspring Funds Management, LLC, from 2009 to 2014. In addition, Mr. Owen was an Executive Vice President of Wells Fargo & Company from 2014 to 2021. |
| Jeremy DePalma (Born 1974) | Treasurer, since 2012 (for certain funds in the Fund Complex); since 2021 (for the remaining funds in the Fund Complex) | Senior Vice President of Allspring Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration. |
| Kate McKinley (Born 1977) | Chief Legal Officer, since 2021 | Chief Legal Officer of Allspring Global Investments since 2021. Prior thereto, held various roles at State Street Global Advisors beginning in 2010, including serving as Senior Vice President and General Counsel from 2019 to 2021, and Chief Operating Officer of the Institutional Client Group from 2016 - 2019. Prior to working at State Street Global Advisors served as Assistant General Counsel for Bank of America Corporation from 2005 to 2010 and as an Associate at WilmerHale from 2002 to 2005. |
| Christopher Baker (Born 1976) | Chief Compliance Officer, since 2022 | Global Chief Compliance Officer for Allspring Global Investments since 2022. Prior thereto, Chief Compliance Officer for State Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015 Vice President, Global Head of Investment and Marketing Compliance for State Street Global Advisors. |
| Matthew Prasse (Born 1983) | Secretary, since 2021 | Senior Counsel of the Allspring Legal Department since 2021. Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021. Previously, Counsel for Barings LLC from 2015 to 2018. Prior to joining Barings, Associate at Morgan, Lewis & Bockius LLP from 2008 to 2015. |
1 The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at allspringglobal.com.
2 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to 2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
Government Money Market Funds | 39
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund's website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2022 Allspring Global Investments Holdings, LLC. All rights reserved.
PAR-0222-00697 03-22
A303/AR303 01-22
A303/AR303 01-22
Annual Report
January 31, 2022
Institutional Money Market Funds
| ■ | Allspring Heritage Money Market Fund |
Contents
| 2 | |
| 6 | |
| 9 | |
| 10 | |
| Financial statements | |
| 17 | |
| 18 | |
| 19 | |
| 20 | |
| 24 | |
| 30 | |
| 31 |
The views expressed and any forward-looking statements are as of January 31, 2022, unless otherwise noted, and are those of the Fund's portfolio managers and/or Allspring Global Investments. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Allspring Global Investments disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.
Institutional Money Market Funds | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Heritage Money Market Fund for the 12-month period that ended January 31, 2022. Global stocks yielded mixed results as the global economy continued to emerge from the haze of COVID-19. Tailwinds were provided by global stimulus programs, a rapid vaccination rollout, and recovering consumer and corporate sentiment, only to be dampened by persistent inflation. Bonds also saw mixed performance during the period.
For the 12-month period, equities had mixed returns as policymakers continued to fight the effects of COVID-19. U.S. stocks led both non-U.S. developed market equities and emerging market stocks. Returns by fixed-income securities were also a mix of positive and negative returns. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 23.29%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 3.63%, while the MSCI EM Index (Net) (USD)3 had weaker performance with a -7.23% loss. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -2.97%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned -7.92%, the Bloomberg Municipal Bond Index6 lost -1.89%, and the ICE BofA U.S. High Yield Index7 returned 2.08%.
Efforts to contain COVID-19 drove market performance.
February 2021 saw major domestic equity indexes driven higher on the hope of a new stimulus bill, improving COVID-19 vaccination numbers, and the gradual reopening of the economy. Most S&P 500 companies reported better-than-expected earnings, with positive surprises coming from the financials, information technology, health care, and materials sectors. Japan saw its economy strengthen as a result of strong export numbers. Meanwhile, crude oil prices continued their climb, rising more than 25% for the year. Domestic government bonds experienced a sharp sell-off in late February as markets priced in a more robust economic recovery and higher future growth and inflation expectations.
The passage of the massive domestic stimulus bill highlighted March activity, leading to increased forecasts for U.S. growth in 2021. Domestic employment surged as COVID-19 vaccinations and an increasingly open economy spurred hiring. A majority of U.S. small companies reported they were operating at pre-pandemic capacity or higher. Value stocks continued their outperformance of growth stocks in the month, continuing the trend that started in late 2020. Meanwhile, most major developed global equity indexes were up month to date on the back of rising optimism regarding the outlook for global growth. While the U.S. and the U.K. have been the most successful in terms of the vaccine rollout, even in markets where the vaccine has lagged, such as in the eurozone and Japan, equity indexes in many of those countries have also been in positive territory for the year through March 2021.
| 1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index. |
| 2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
| 3 | The MSCI Emerging Markets (EM) Index (Net) (USD) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
| 4 | The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.-dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
| 5 | The Bloomberg Global Aggregate ex-USD Index (unhedged) is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
| 6 | The Bloomberg Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index. |
| 7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2022. ICE Data Indices, LLC. All rights reserved. |
2 | Institutional Money Market Funds
Letter to shareholders (unaudited)
Equity markets produced another strong showing in April. Domestically, the continued reopening of the economy had a strong impact on positive equity performance, as people started leaving their households and jobless claims continued to fall. Domestic corporate bonds performed well and the U.S. dollar weakened. Meanwhile, the U.S. government continued to seek to invest in the recovery, this time by outlining a package of over $2 trillion to improve infrastructure. The primary headwind in April was inflation, as investors tried to determine the breadth and longevity of recent price increases. Developed Europe was supported by a meaningful increase in the pace of vaccinations. Unfortunately many emerging market countries were not as successful. India in particular saw COVID-19 cases surge, serving as an example of the need to get vaccinations rolled out to less developed nations.
Vaccine rollouts continued in May, leading to loosened restrictions globally. As a result, equity markets in general saw a minor increase in returns. Concerns that the continued economic rebound could result in inflation increases becoming more than transitory were supported by the higher input costs businesses were experiencing. Meanwhile, those inflation concerns were tempered by the U.S. Federal Reserve (Fed), which stayed steady on its view of the economy and eased fears of a sudden and substantial policy change. Positive performance in the emerging market equity space was supported this month by steady consumer demand and strong commodity prices. Fixed-income markets were also slightly positive for the month, driven by inflation uncertainty and a softer U.S. dollar.
June witnessed the S&P 500 Index reach a new all-time high. 2021 economic growth and inflation forecasts were revised higher to reflect a strong economic recovery and some supply and demand imbalances. Late June saw a deal reached on a U.S. infrastructure package of approximately $1 trillion for road, bridge, and broadband network upgrades over the next eight years. The Fed’s June meeting yielded no change to policy, but its projections pointed to a possible interest rate rise in 2023. This, combined with a rebound in economic activity and investors searching for yield, led to U.S. Treasury yields being down for the month. Many European and Asian countries saw vaccination momentum increase, while the U.K. dealt with a rise in COVID-19 infections, specifically the Delta variant. Meanwhile, crude oil jumped over 10% in June on the back of the pickup in global economic activity and the Organization of the Petroleum Exporting Countries’ (OPEC) slow pace of supply growth.
July began the month seeing vaccinations making progress, as several major developed countries eased restrictions, only to be threatened again by the spread of COVID-19’s Delta variant. Inflation continued to climb, aided by the continued supply bottleneck in the face of high demand. As it pertains to the equity area of the market, U.S. equities led the way in positive return territory followed by international developed markets. In contrast, emerging markets were well in negative territory for the month, hindered by China’s plans for new regulations on a number of sectors, specifically education and technology. The U.S. 10-year Treasury bond yield continued to decline as strong demand swallowed up supply. After hitting a multiyear high earlier in the month, oil prices leveled off following an agreement by OPEC to raise oil production starting in August.
The Delta variant of COVID-19 produced outbreaks globally in August, increasing the potential for increased market volatility and bringing into question the ongoing economic recovery. Domestically, the U.S. economy continued to stay strong in the face of the Delta variant, continued inflationary pressures, and worries over Hurricane Ida. Emerging market equities experienced elevated volatility, largely influenced by China’s regulatory stance. Emerging market equities started the month with poor performance but rebounded to end the month in positive territory. Municipal debt experienced its first monthly performance drop since February 2021, slowing a rally that made it one of the best-performing sectors of the bond market. In the commodity segment of the market, crude oil fell sharply during the month on the back of dampened expectations as a result of the Delta variant but was still a leading asset-class performer for the year through August 2021.
Global markets suffered their broadest retreat in a year during September, with the exception of commodities. Concerns over inflation and the interest rate outlook depressed investor confidence and hurt performance. Emerging markets declined on concerns over the continued supply chain disruptions and worries over higher energy and food prices. Meanwhile, the Fed indicated it would slow the pace of asset purchases in the near future (pointing towards November). All eyes domestically were fixed on the raising of the debt ceiling, the 2022 budget plan, and the ongoing debate over the infrastructure package. Contrary to most asset classes, commodities thrived in September, driven by sharply higher energy prices.
“ Municipal debt experienced its first monthly performance drop since February 2021, slowing a rally that made it one of the best-performing sectors of the bond market.”
Institutional Money Market Funds | 3
Letter to shareholders (unaudited)
October’s key themes continued to be elevated inflation pressures and a supply bottleneck, but strong earnings provided a bright spot in the markets. Earnings releases in the U.S. were generally strong and consumer confidence was high. The Fed reaffirmed its plans to taper quantitative easing to a stop by mid-2022. Meanwhile, elevated inflation figures were considered transitory by the Fed. Similar to the U.S., the eurozone and many Asian countries saw positive earnings but were facing inflation pressures caused by supply bottlenecks while also experiencing energy price increases amid natural gas shortages. Globally, government bond yields rose as central banks prepared to lower monetary policy accommodation in the face of rising inflationary pressures. As previously referenced, positive commodity performance was driven by sharply higher energy costs.
November was dominated by rising COVID-19 hospitalizations and concerns regarding the Omicron variant. Most major asset classes, both domestically and internationally, declined in November with two exceptions: U.S. investment-grade bonds and Treasury Inflation-Protected Securities. The United Nations Climate Change Conference (COP26) took place during the month with hopes of agreement among countries to limit global warming. While several initiatives were discussed, the conference ultimately ended without the specifics required to instill confidence that the limiting of global warming would succeed. In the U.S., President Biden signed a long-awaited infrastructure bill to upgrade U.S. roads, bridges, and railways. Meanwhile, the Consumer Price Index1, a measure of domestic inflation conditions, jumped to its highest level in 31 years. While the threat of consistently high inflation led the Fed to discuss a faster pace of tapering, the Omicron strain makes that less likely to occur. Commodities came in negative for the month, largely driven by sharp declines in oil prices (and energy costs in general) as well as precious metals.
Global volatility in December lessened as data indicated a lower risk of severe disease and death as a result of the Omicron variant. Even so, a number of countries introduced restrictions on sectors such as travel and hospitality to try to reduce the spread. In the U.S., data indicated that the overall domestic economy remained stable and corporate earnings remained robust. Consumer spending capability looked strong heading into 2022 on the back of elevated household savings and the lowest ratio of U.S. household liabilities to assets since 1973. U.S. corporate and high-yield bonds produced positive returns for the month while Treasuries declined. Bonds were strongly affected by the projection of three 25-basis-point (bp; 100 bps equal 1.00%) policy rate hikes in 2022 by senior Federal Open Market Committee members, contrary to just one hike as previously believed.
Key themes in the first month of 2022 were the potential U.S. interest rate hikes and the Russia-Ukraine conflict. Comments from the Fed suggested a hike in interest rates in March is now likely. Meanwhile, Russia’s potential invasion of Ukraine, could threaten to disrupt its massive energy supplies and drive demand from non-Russian oil-producing countries. Elsewhere overseas, Europe saw food and energy prices spike, leading to rising inflation to match that being experienced in the U.S. Within fixed income, corporate bonds struggled in January and underperformed government bonds, as investors focused on continued elevated inflation and ongoing uncertainty over the U.S. monetary path.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Allspring Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
“ Bonds were strongly affected by the projection of three 25-basis-point (bp; 100 bps equal 1.00%) policy rate hikes in 2022 by senior Federal Open Market Committee members, contrary to just one hike as previously believed.”
| 1 | The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index. |
4 | Institutional Money Market Funds
Letter to shareholders (unaudited)
Information on transaction closing.
On November 1, 2021, GTCR LLC and Reverence Capital Partners, L.P., announced the beginning of Allspring Global Investments™, with the close of the transaction to acquire Wells Fargo Funds Management, LLC; Wells Capital Management, LLC; Galliard Capital Management, LLC.; Wells Fargo Asset Management (International) Ltd.; Wells Fargo Asset Management Luxembourg S.A.; and Wells Fargo Funds Distributor, LLC, as well as Wells Fargo Bank, N.A.’s business of acting as trustee to its collective investment trusts and all related Wells Fargo Asset Management legal entities. The transaction closed on November 1, 2021, forming Allspring Global Investments, a privately held asset management firm with $575 billion in AUM1 as of December 31, 2021.
Allspring Global Investments™ is a leading independent asset management firm with a full breadth of investment capabilities across diverse asset classes, serving the needs of its institutional and wealth management clients around the world. Allspring operates across 18 offices globally supported by more than 480 investment professionals. Allspring and its investment teams provide a broad range of differentiated investment products and solutions to help its diverse range of clients meet their investment objectives.
As part of this transition, all mutual funds within the Wells Fargo Funds family were rebranded as Allspring Funds. Each individual fund had “Wells Fargo” removed from its fund name and replaced with “Allspring.” The fund name changes went into effect on December 6, 2021.
Allspring Global Investments is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
President
Allspring Funds
Notice to Shareholders
Russia launched a large-scale invasion of Ukraine on February 24, 2022. As a result of this military action, the United States and many other countries have instituted various economic sanctions against Russian individuals and entities. The situation has led to increased financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities, such as oil and natural gas. The extent and duration of the military action, resulting sanctions imposed, other punitive action taken and the resulting market disruptions cannot be easily predicted.
Our solidarity and support goes out to our impacted employees and the people affected in Ukraine and their families. Allspring has a dedicated team of investment professionals actively monitoring the situation for any new developments and the potential impact to our clients and investment products. As the situation remains fluid, we are focused on the assessment of risks, valuation, and liquidity of impacted securities. Please visit our website at allspringglobal.com and click on “Russia-Ukraine Portfolio Impacts” for further information
For further information about your Fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
| 1 | As of December 31, 2021, assets under management (AUM) includes $91.6 billion from Galliard Capital Management, LLC, an investment advisor that is not part of the Allspring trade name/GIPS firm. |
Institutional Money Market Funds | 5
Performance highlights (unaudited)
| Investment objective | The Fund seeks current income, while preserving capital and liquidity. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Michael C. Bird, CFA®‡, Jeffrey L. Weaver, CFA®‡, Laurie White |
| Average annual total returns (%) as of January 31, 2022 | ||||||
| Expense ratios1 (%) | ||||||
| Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
| Administrator Class (SHMXX) | 6-29-1995 | 0.02 | 1.05 | 0.56 | 0.35 | 0.33 |
| Institutional Class (SHIXX) | 3-31-2000 | 0.02 | 1.14 | 0.63 | 0.23 | 0.20 |
| Select Class (WFJXX) | 6-29-2007 | 0.05 | 1.21 | 0.70 | 0.19 | 0.13 |
| Service Class (WHTXX) | 6-30-2010 | 0.02 | 0.98 | 0.51 | 0.52 | 0.43 |
| 1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
| 2 | The manager has contractually committed through May 31, 2022, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.33% for Administrator Class, 0.20% for Institutional Class, 0.13% for Select Class and 0.43% for Service Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. The manager and/or its affiliates may also voluntarily waive all or a portion of any fees to which they are entitled and/or reimburse certain expenses as they may determine from time to time. Without these caps, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses. |
| Yield summary (%) as of January 31, 2022 | ||||
| Administrator Class | Institutional Class | Select Class | Service Class | |
| 7-day current yield1 | 0.01 | 0.01 | 0.04 | 0.01 |
| 7-day compound yield | 0.01 | 0.01 | 0.04 | 0.01 |
| 30-day simple yield | 0.01 | 0.01 | 0.04 | 0.01 |
| 30-day compound yield | 0.01 | 0.01 | 0.04 | 0.01 |
| 1 | The manager has contractually committed through May 31, 2022, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses and may also voluntarily waive or reimburse additional fees and expenses which may be discontinued or modified at any time without notice. Without these reductions, the Fund’s 7-day current yield would have been -0.18%, -0.07%, -0.03% and -0.34% for Administrator Class, Institutional Class, Select Class and Service Class, respectively. |
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 returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, allspringglobal.com.
Money market funds are sold without a front-end sales charge or contingent deferred sales charge. Other fees and expenses apply to an investment in the Fund and are described in the Fund’s current prospectus.
For floating NAV money market funds: You could lose money by investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
| ‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Institutional Money Market Funds
Performance highlights (unaudited)
MANAGER'S DISCUSSION
If 2020 was a year in which the Federal Open Market Committee (FOMC) operated in reactionary mode to market conditions by providing backstops to keep most markets functioning, 2021 was a year for the FOMC to take a breath, regroup, and assess the economic conditions resulting from the pandemic. As we entered the reporting period, the U.S. Federal Reserve (Fed) maintained its 0.00% – 0.25% target federal funds rate, kept asset purchases steady at $120 billion per month, and continued the average inflation targeting policies with committee members comfortable letting the economy regain its footing and allowing inflation to temporarily exceed its 2% target. With fiscal policies and vaccines supporting the demand side of economic activity, labor shortages and product disruptions caused supply chain bottlenecks, pressuring prices on both labor and goods. The FOMC was originally comfortable with this scenario as it felt the labor market would again reach equilibrium and inflationary prices would recalibrate and prove to be “transitory.” Over the next several months, however, this position would evolve.
| Portfolio composition as of January 31, 20221 |
| 1 | Figures represent the percentage of the Fund's total investments. These amounts are subject to change and may have changed since the date specified. |
The FOMC meeting minutes from April showed that after several months of labeling inflation as transitory, Fed Chair Powell stated that if the economic recovery continued at the current pace, it might be appropriate to adjust the amount of asset purchases being done each month. However, as economic conditions evolved, the June meeting saw committee members discuss reducing asset purchases, even though they believed the elevated inflation levels would prove transitory and ease as job growth picked up and the economy recovered from lockdowns. In late summer, fears that the Delta variant might slow the strong economic recovery and job growth yet again led the FOMC to remain comfortable with elevated inflation. By September, though, Powell deemed that the conditions were all but met in order
to moderate the pace of asset purchases while noting that the test for rate lift-off was much higher than for asset tapering.
By October, market participants expected a tapering in the amount of asset purchases to be announced at the November meeting because “transitory” could no longer be used to describe the record-setting inflation numbers being posted. Indeed, the Fed announced a reduction of $15 billion per month at its November meeting for both November and December purchases. This asset purchase reduction was expected to continue at that pace going forward, with asset purchases ceasing altogether by roughly June 2022. Rapidly changing economic conditions, however, prompted the Fed to quickly modify the amount of reduction. At the December FOMC meeting, the level of tapering was doubled to $30 billion each month, meaning asset purchases were expected to fully finish in March 2022. Economic activity remained robust and supply chain and labor disruptions kept prices elevated—elevated persistently enough for the FOMC to remove “transitory” from its vocabulary.
| Effective maturity distribution as of January 31, 20221 |
| 1 | Figures represent the percentage of the Fund's total investments. These amounts are subject to change and may have changed since the date specified. |
A stagnant rate environment characterized most of the reporting period, as the FOMC kept target rates in the range of 0.00% to 0.25% and their foot on the accommodation pedal with asset purchases of $120 billion per month. In addition, the FOMC was very deliberate in communicating its intentions to market participants, which kept the rate curve largely in check and allowed asset prices to recover. With so much excess liquidity in the system and the Fed committed to accommodation, money market yields remained low and the LIBOR (London Interbank Offered Rate) curve remained fairly flat for the first three quarters of 2021. It wasn’t until September, though, with the talk of moderating asset purchases, the thought that inflation was more than transitory, and that the FOMC could raise rates in 2022 that the yield curve began to steepen. By October, the market had
Institutional Money Market Funds | 7
Performance highlights (unaudited)
priced in a 92% chance of a rate hike in June 2022 and yields really started to move higher. At year-end, three rate increases were priced into the futures markets for 2022. Continued strong gross domestic product; employment; and, more importantly, high inflation readings in January have sealed the deal for a target rate hike in March. Futures are now pricing in four to five rate increases in 2022, and talk is starting that the FOMC is “behind the curve” on its dual mandate. The markets have come a long way since September when first pricing in future rate increases.
Strategic outlook
As the FOMC begins its journey toward raising rates, money market assets may become an attractive asset class as investors can capture rate increases with minimal duration risk. With uncertainty over the total number of rate increases to come, floating-rate notes are a natural choice compared with fixed paper. As always, we tend to take a conservative approach when constructing our portfolios and favor keeping excess liquidity over stated regulatory requirements, running shorter weighted average maturities and looking to extend maturities if the opportunity offers a favorable risk/reward proposition.
| Weighted average maturity as of January 31, 20221 |
| 23 days |
| 1 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
| Weighted average life as of January 31, 20221 |
| 32 days |
| 1 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
8 | Institutional Money Market Funds
Fund expenses (unaudited)
As a shareholder of the Fund, you incur ongoing costs including management fees, shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from August 1, 2021 to January 31, 2022.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Beginning account value 8-1-2021 | Ending account value 1-31-2022 | Expenses paid during the period1 | Annualized net expense ratio | |
| Administrator Class | ||||
| Actual | $1,000.00 | $1,000.05 | $0.66 | 0.13% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.55 | $0.66 | 0.13% |
| Institutional Class | ||||
| Actual | $1,000.00 | $1,000.05 | $0.66 | 0.13% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.55 | $0.66 | 0.13% |
| Select Class | ||||
| Actual | $1,000.00 | $1,000.16 | $0.55 | 0.11% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.65 | $0.56 | 0.11% |
| Service Class | ||||
| Actual | $1,000.00 | $1,000.05 | $0.66 | 0.13% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.55 | $0.66 | 0.13% |
1 Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).
Institutional Money Market Funds | 9
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Certificates of deposit: 28.11% | |||||
| ABN Amro Bank NV | 0.08% | 2-4-2022 | $ 55,000,000 | $ 55,000,000 | |
| Australia & New Zealand Banking Group Limited | 0.07 | 2-1-2022 | 115,000,000 | 115,000,000 | |
| Canadian Imperial Bank of Commerce | 0.07 | 2-1-2022 | 108,000,000 | 108,000,000 | |
| Credit Agricole Corporate and Investment Bank of New York | 0.07 | 2-1-2022 | 155,000,000 | 155,000,000 | |
| HSBC Bank USA NA | 0.08 | 2-1-2022 | 150,000,000 | 150,000,000 | |
| Legacy Capital Company 144A | 0.27 | 4-12-2022 | 37,000,000 | 37,000,508 | |
| Mizuho Bank Limited | 0.07 | 2-1-2022 | 155,000,000 | 155,000,000 | |
| MUFG Bank Limited | 0.23 | 4-7-2022 | 33,000,000 | 33,003,264 | |
| National Australia Bank Limited 144A☼ | 0.21 | 3-1-2022 | 33,000,000 | 32,997,634 | |
| Natixis Bank | 0.22 | 2-2-2022 | 3,000,000 | 3,000,023 | |
| Nordea Bank AB | 0.20 | 2-18-2022 | 65,000,000 | 65,003,439 | |
| Nordea Bank AB (U.S. SOFR +0.17%) ± | 0.22 | 11-28-2022 | 50,000,000 | 49,982,883 | |
| Norinchukin Bank | 0.23 | 4-19-2022 | 33,000,000 | 33,001,713 | |
| Norinchukin Bank | 0.25 | 5-9-2022 | 35,000,000 | 34,998,176 | |
| Norinchukin Bank | 0.25 | 5-16-2022 | 37,000,000 | 36,996,210 | |
| Oversea-Chinese Banking Corporation | 0.19 | 4-20-2022 | 40,000,000 | 39,998,148 | |
| Oversea-Chinese Banking Corporation | 0.22 | 4-8-2022 | 35,000,000 | 35,004,749 | |
| Oversea-Chinese Banking Corporation | 0.33 | 6-7-2022 | 35,000,000 | 34,995,539 | |
| Royal Bank of Canada (U.S. SOFR +0.15%) 144A± | 0.20 | 6-24-2022 | 35,000,000 | 35,003,638 | |
| Sumitomo Mitsui Banking Corporation 144A☼ | 0.20 | 3-9-2022 | 35,700,000 | 35,696,074 | |
| Sumitomo Mitsui Banking Corporation | 0.20 | 4-27-2022 | 32,000,000 | 31,996,628 | |
| Sumitomo Mitsui Banking Corporation | 0.25 | 5-12-2022 | 40,000,000 | 39,995,944 | |
| Sumitomo Mitsui Trust Bank | 0.17 | 4-18-2022 | 35,000,000 | 34,997,148 | |
| Sumitomo Mitsui Trust Bank | 0.18 | 2-9-2022 | 41,500,000 | 41,501,099 | |
| Sumitomo Mitsui Trust Bank | 0.22 | 3-14-2022 | 35,000,000 | 35,003,999 | |
| Svenska Handelsbanken AB 144A☼ | 0.22 | 6-2-2022 | 28,000,000 | 27,971,628 | |
| Toronto-Dominion Bank | 0.25 | 5-13-2022 | 37,000,000 | 36,992,651 | |
| Total Certificates of deposit (Cost $1,493,149,384) | 1,493,141,095 |
| Closed end municipal bond fund obligations: 0.43% | |||||
| Nuveen Floating Rate Income Fund Variable Rate Demand Preferred Shares Class A (230 shares) 0.21% 144A | 23,000,000 | 23,000,000 | |||
| Total Closed end municipal bond fund obligations (Cost $23,000,000) | 23,000,000 |
| Commercial paper: 40.70% | |||||
| Asset-backed commercial paper: 25.96% | |||||
| Albion Capital Corporation LLC ☼ | 0.22 | 2-22-2022 | 20,000,000 | 19,998,423 | |
| Angelsea Funding LLC (U.S. OBFR +0.08%) 144A± | 0.15 | 5-9-2022 | 32,000,000 | 32,000,000 | |
| Angelsea Funding LLC 144A☼ | 0.20 | 2-1-2022 | 5,000,000 | 4,999,989 | |
| Atlantic Asset Securitization LLC 144A☼ | 0.17 | 2-17-2022 | 33,000,000 | 32,998,598 | |
| Bennington Sark Capital Company LLC 144A☼ | 0.08 | 2-1-2022 | 49,000,000 | 48,999,878 | |
| Bennington Sark Capital Company LLC 144A☼ | 0.08 | 2-2-2022 | 28,000,000 | 27,999,860 | |
| Bennington Sark Capital Company LLC 144A☼ | 0.15 | 2-11-2022 | 15,000,000 | 14,999,565 | |
| Chesham Finance Limited 144A☼ | 0.07 | 2-1-2022 | 18,000,000 | 17,999,960 | |
| Chesham Finance Limited 144A☼ | 0.13 | 2-1-2022 | 100,000,000 | 99,999,778 | |
| Concord Minutemen Capital Company 144A☼ | 0.15 | 2-23-2022 | 60,000,000 | 59,996,282 | |
| Glencove Funding DAC 144A☼ | 0.15 | 2-9-2022 | 30,800,000 | 30,799,369 | |
| Institutional Secured Funding LLC 144A☼ | 0.14 | 2-1-2022 | 20,000,000 | 19,999,929 |
The accompanying notes are an integral part of these financial statements.
10 | Institutional Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturitydate | Principal | Value | ||
| Asset-backed commercial paper (continued) | |||||
| Institutional Secured Funding LLC 144A☼ | 0.14% | 2-2-2022 | $ 45,000,000 | $ 44,999,665 | |
| Institutional Secured Funding LLC 144A☼ | 0.17 | 2-9-2022 | 60,000,000 | 59,997,405 | |
| Ionic Capital II Trust ☼ | 0.18 | 2-16-2022 | 35,000,000 | 34,998,600 | |
| Ionic Capital II Trust ☼ | 0.22 | 3-8-2022 | 60,000,000 | 59,991,600 | |
| Ionic Capital III Trust ☼ | 0.17 | 2-9-2022 | 36,745,000 | 36,744,247 | |
| Ionic Capital III Trust ☼ | 0.18 | 2-15-2022 | 67,000,000 | 66,997,488 | |
| Ionic Capital III Trust ☼ | 0.24 | 2-4-2022 | 20,000,000 | 19,999,822 | |
| Ionic Capital III Trust ☼ | 0.27 | 2-24-2022 | 32,000,000 | 31,997,867 | |
| Legacy Capital Company 144A☼ | 0.22 | 2-16-2022 | 25,000,000 | 24,999,000 | |
| Legacy Capital Company 144A☼ | 0.22 | 2-18-2022 | 25,000,000 | 24,998,875 | |
| Lexington Parker Capital Company LLC 144A☼ | 0.17 | 2-17-2022 | 30,000,000 | 29,998,725 | |
| Lexington Parker Capital Company LLC 144A☼ | 0.20 | 2-3-2022 | 13,325,000 | 13,324,911 | |
| LMA Americas LLC 144A☼ | 0.22 | 3-21-2022 | 26,000,000 | 25,993,524 | |
| Manhattan Asset Funding Company LLC 144A☼ | 0.13 | 2-7-2022 | 25,000,000 | 24,999,611 | |
| Mountcliff Funding LLC 144A☼ | 0.11 | 2-1-2022 | 35,000,000 | 34,999,922 | |
| Mountcliff Funding LLC 144A☼ | 0.16 | 2-2-2022 | 38,150,000 | 38,149,831 | |
| Mountcliff Funding LLC 144A☼ | 0.20 | 2-14-2022 | 70,000,000 | 69,997,577 | |
| Mountcliff Funding LLC 144A☼ | 0.25 | 3-7-2022 | 25,000,000 | 24,996,670 | |
| Nieuw Amsterdam Receivables Corporation BV 144A☼ | 0.17 | 2-10-2022 | 66,000,000 | 65,998,460 | |
| Ridgefield Funding Company, LLC 144A☼ | 0.25 | 5-4-2022 | 15,153,000 | 15,141,217 | |
| Versailles CDS LLC (U.S. SOFR +0.11%) 144A± | 0.16 | 4-4-2022 | 50,000,000 | 50,003,325 | |
| Versailles CDS LLC (U.S. SOFR +0.16%) 144A± | 0.21 | 8-2-2022 | 75,000,000 | 74,999,999 | |
| Victory Receivables Corporation 144A☼ | 0.17 | 2-1-2022 | 32,000,000 | 31,999,929 | |
| Victory Receivables Corporation 144A☼ | 0.20 | 2-16-2022 | 42,000,000 | 41,998,320 | |
| Victory Receivables Corporation 144A☼ | 0.23 | 3-16-2022 | 20,000,000 | 19,995,918 | |
| 1,379,114,139 | |||||
| Financial company commercial paper: 12.92% | |||||
| Banco Santander SA 144A☼ | 0.17 | 3-8-2022 | 35,000,000 | 34,996,220 | |
| Banco Santander SA 144A☼ | 0.19 | 2-4-2022 | 50,000,000 | 49,999,556 | |
| Bank of Montreal ☼ | 0.20 | 4-14-2022 | 25,000,000 | 24,990,571 | |
| Bank of Nova Scotia 144A☼ | 0.20 | 3-24-2022 | 42,500,000 | 42,492,081 | |
| DBS Bank Limited 144A☼ | 0.23 | 3-8-2022 | 33,000,000 | 32,996,106 | |
| DBS Bank Limited 144A☼ | 0.28 | 6-2-2022 | 33,000,000 | 32,960,411 | |
| DBS Group Holdings Limited 144A☼ | 0.22 | 4-1-2022 | 40,000,000 | 39,986,000 | |
| Dexia Credit Local SA 144A☼ | 0.29 | 5-16-2022 | 13,000,000 | 12,988,625 | |
| Erste Finance LLC 144A☼ | 0.07 | 2-1-2022 | 71,000,000 | 70,999,843 | |
| Mitsubishi UFJ Trust & Banking 144A☼ | 0.15 | 2-15-2022 | 32,000,000 | 31,998,973 | |
| Mitsubishi UFJ Trust & Banking 144A☼ | 0.24 | 3-1-2022 | 33,000,000 | 32,997,634 | |
| Mitsubishi UFJ Trust & Banking 144A☼ | 0.30 | 4-25-2022 | 30,000,000 | 29,982,780 | |
| Santander plc ☼ | 0.16 | 3-16-2022 | 40,000,000 | 39,992,276 | |
| Suncorp Group Limited 144A☼ | 0.19 | 3-23-2022 | 10,000,000 | 9,996,048 | |
| Svenska Handelsbanken AB 144A☼ | 0.22 | 6-1-2022 | 40,000,000 | 39,960,339 | |
| Toronto-Dominion Bank 144A☼ | 0.16 | 4-22-2022 | 35,000,000 | 34,985,353 | |
| United Overseas Bank Limited 144A☼ | 0.19 | 3-9-2022 | 34,000,000 | 33,996,191 | |
| United Overseas Bank Limited 144A☼ | 0.19 | 3-11-2022 | 35,000,000 | 34,995,753 | |
| United Overseas Bank Limited 144A☼ | 0.22 | 4-11-2022 | 55,000,000 | 54,979,681 | |
| 686,294,441 | |||||
| Other commercial paper: 1.82% | |||||
| Alberta Province 144A☼ | 0.14 | 2-3-2022 | 18,000,000 | 17,999,919 | |
| Alberta Province 144A☼ | 0.14 | 2-17-2022 | 35,000,000 | 34,999,108 |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 11
Portfolio of investments—January 31, 2022
| Interest rate | Maturitydate | Principal | Value | ||
| Other commercial paper (continued) | |||||
| COFCO Capital Corporation ☼ | 0.30% | 2-1-2022 | $ 18,490,000 | $ 18,489,958 | |
| Erste Abwicklungsanstalt 144A☼ | 0.10 | 2-11-2022 | 25,000,000 | 24,999,465 | |
| 96,488,450 | |||||
| Total Commercial paper (Cost $2,161,860,902) | 2,161,897,030 | ||||
| Municipal obligations: 21.51% | |||||
| Arizona: 1.86% | |||||
| Variable rate demand notes ø: 1.86% | |||||
| Maricopa County AZ IDA Series 2021B-2 (Health revenue) | 0.07 | 1-1-2061 | 16,500,000 | 16,500,000 | |
| Taxable Municipal Funding Trust Various States Floaters Series 2021-004 (Health revenue, Barclays Bank plc LOC) 144A | 0.29 | 11-15-2054 | 9,425,000 | 9,425,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2021-MIZ9060TX (Tax revenue, Mizuho Capital Markets LLC LOC) 144A | 0.34 | 2-15-2041 | 73,030,009 | 73,030,009 | |
| 98,955,009 | |||||
| California: 2.40% | |||||
| Other municipal debt : 0.39% | |||||
| California Series B2 (GO revenue) | 0.15 | 3-3-2022 | 21,000,000 | 20,999,252 | |
| Variable rate demand notes ø: 2.01% | |||||
| Metropolitan Water District of Southern California Series A (Water & sewer revenue, Bank of America NA SPA) | 0.10 | 7-1-2042 | 30,000,000 | 30,000,000 | |
| Mizuho Floater Residual Certificates Series 2021 (Housing revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.18 | 4-15-2042 | 15,000,000 | 15,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2019-MIZ9003 (Tax revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.31 | 3-1-2036 | 23,200,000 | 23,200,000 | |
| University of California Revenue Various Taxable Series Z-1 (Education revenue) | 0.08 | 7-1-2041 | 38,340,000 | 38,340,000 | |
| 106,540,000 | |||||
| Colorado: 2.46% | |||||
| Variable rate demand notes ø: 2.46% | |||||
| Colorado HFA MFHR Class II Series B (Housing revenue, FHLB SPA) | 0.12 | 5-1-2052 | 82,865,000 | 82,865,000 | |
| Colorado HFA Single Family Mortgage Bonds Class II Series 2021-I (Housing revenue, GNMA Insured, Royal Bank of Canada SPA) | 0.08 | 11-1-2051 | 16,000,000 | 16,000,000 | |
| Colorado Southern Ute Indian Tribe Reservation Company Series 2007 (Miscellaneous revenue) 144A | 0.10 | 1-1-2027 | 32,000,000 | 32,000,000 | |
| 130,865,000 |
The accompanying notes are an integral part of these financial statements.
12 | Institutional Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturitydate | Principal | Value | ||
| Georgia: 2.02% | |||||
| Variable rate demand notes ø: 2.02% | |||||
| Macon-Bibb County GA Industrial Authority Kumho Tire Georgia Incorporated Series 2015A (Industrial development revenue, Korea Development Bank LOC) | 0.17% | 12-1-2022 | $ 73,000,000 | $ 73,000,000 | |
| Macon-Bibb County GA Industrial Authority Kumho Tire Georgia Incorporated Series 2015B (Industrial development revenue, Korea Development Bank LOC) | 0.17 | 12-1-2022 | 34,000,000 | 34,000,000 | |
| 107,000,000 | |||||
| Illinois: 0.76% | |||||
| Variable rate demand notes ø: 0.76% | |||||
| Tender Option Bond Trust Receipts/Certificates Series 2020-XFT993 (Health revenue, JPMorgan Chase & Company LIQ) 144A | 0.12 | 5-15-2050 | 16,000,000 | 16,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XF2854 (Tax revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.10 | 6-15-2050 | 24,160,000 | 24,160,000 | |
| 40,160,000 | |||||
| Indiana: 0.38% | |||||
| Variable rate demand notes ø: 0.38% | |||||
| Indiana Finance Authority Stadium Project Series A-5 (Miscellaneous revenue, U.S. Bank NA SPA) | 0.11 | 2-1-2035 | 20,000,000 | 20,000,000 | |
| Kansas: 0.17% | |||||
| Variable rate demand notes ø: 0.17% | |||||
| Olathe KS Multi-Modal-Diamant Boart Series B (Industrial development revenue, Svenska HandelsBanken LOC) | 0.52 | 3-1-2027 | 8,900,000 | 8,900,000 | |
| Kentucky: 0.80% | |||||
| Variable rate demand notes ø: 0.80% | |||||
| Kentucky Housing Corporation Series B (Housing revenue, Kentucky Housing Corporation SPA) | 0.11 | 7-1-2041 | 26,150,000 | 26,150,000 | |
| Kentucky Housing Corporation Series O (Housing revenue, Kentucky Housing Corporation SPA) | 0.11 | 1-1-2036 | 9,255,000 | 9,255,000 | |
| Kentucky Housing Corporation Series T (Housing revenue, Kentucky Housing Corporation SPA) | 0.11 | 7-1-2037 | 6,930,000 | 6,930,000 | |
| 42,335,000 | |||||
| Michigan: 0.58% | |||||
| Variable rate demand notes ø: 0.58% | |||||
| Michigan State Housing Development AMT Refunding Bond Series B (Housing revenue, Industrial & Commercial Bank of China Limited SPA) | 0.15 | 6-1-2038 | 30,895,000 | 30,895,000 | |
| Nevada: 0.43% | |||||
| Variable rate demand notes ø: 0.43% | |||||
| Mizuho Floater Residual Certificates Series 2021 (Housing revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.34 | 2-1-2058 | 23,000,000 | 23,000,000 |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 13
Portfolio of investments—January 31, 2022
| Interest rate | Maturitydate | Principal | Value | ||
| New Hampshire: 1.05% | |||||
| Variable rate demand notes ø: 1.05% | |||||
| New Hampshire Business Finance Authority CJ Foods Manufacturing Beaumont Corporation Series A (Industrial development revenue, Kookmin Bank LOC) 144A | 0.17% | 10-1-2028 | $ 56,000,000 | $ 56,000,000 | |
| New York: 4.30% | |||||
| Other municipal debt : 2.17% | |||||
| Long Island Power Authority Series 2015 GR-5A (Utilities revenue) | 0.12 | 2-10-2022 | 15,000,000 | 15,000,075 | |
| Long Island Power Authority Series 2015 GR-5A (Utilities revenue) | 0.22 | 3-2-2022 | 25,000,000 | 24,999,785 | |
| Metropolitan Transportation Authority Grant Anticipation Notes Series 2021A (Miscellaneous revenue) | 0.78 | 11-15-2022 | 28,000,000 | 28,002,022 | |
| New York Power Authority Series 3B (Utilities revenue, JPMorgan Chase & Company LIQ) ☼ | 0.18 | 3-16-2022 | 25,000,000 | 24,994,158 | |
| Port Authority New York & New Jersey Series C (Airport revenue) | 0.23 | 3-1-2022 | 8,000,000 | 7,999,999 | |
| Port Authority New York & New Jersey Series C (Airport revenue) | 0.25 | 4-21-2022 | 14,055,000 | 14,052,255 | |
| 115,048,294 | |||||
| Variable rate demand notes ø: 2.13% | |||||
| Mizuho Floater Residual Certificates Series 2021 (Housing revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.49 | 9-1-2026 | 22,250,000 | 22,250,000 | |
| New York Dormitory Authority Personal Income Tax Revenue Series XFT910 (Tax revenue, Citibank NA LIQ) 144A | 0.14 | 3-15-2040 | 4,000,000 | 4,000,000 | |
| New York Dormitory Authority Secondary Issues Floater Series B-4 (Tax revenue, Morgan Stanley Bank LIQ) 144A | 0.14 | 3-15-2040 | 16,000,000 | 16,000,000 | |
| New York Municipal Water Finance Authority Series T-30001-I (Water & sewer revenue, Citibank NA LIQ) 144A | 0.14 | 6-15-2044 | 16,000,000 | 16,000,000 | |
| Taxable Municipal Funding Trust Various States Floaters Series 2021-003 (GO revenue, Barclays Bank plc LOC) 144A | 0.29 | 5-15-2056 | 40,100,000 | 40,100,000 | |
| Tender Option Bond Trust Receipts/Certificates Series 2021-TPG020 (Tax revenue, Bank of America NA LIQ) 144A | 0.39 | 1-1-2023 | 15,000,000 | 15,000,000 | |
| 113,350,000 | |||||
| Other: 3.49% | |||||
| Variable rate demand notes ø: 3.49% | |||||
| JPMorgan Chase Puttable Tax-Exempt Receipts/Derivative Inverse Tax-Exempt Receipts & Custodial Receipts Trust Series 5039 (Miscellaneous revenue) | 0.21 | 11-16-2022 | 85,000,000 | 85,000,000 | |
| Taxable Municipal Funding Trust Various States Floaters Series 2019-019 (Health revenue, Barclays Bank plc LOC) 144A | 0.29 | 12-1-2030 | 2,565,000 | 2,565,000 | |
| Taxable Municipal Funding Trust Various States Floaters Series 2020-012 (Health revenue, Barclays Bank plc LOC) 144A | 0.15 | 9-1-2030 | 13,705,000 | 13,705,000 | |
| Taxable Municipal Funding Trust Various States Floaters Series 2020-11 (Health revenue, Barclays Bank plc LOC) 144A | 0.29 | 9-1-2030 | 84,215,000 | 84,215,000 | |
| 185,485,000 |
The accompanying notes are an integral part of these financial statements.
14 | Institutional Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturitydate | Principal | Value | ||
| Texas: 0.62% | |||||
| Other municipal debt : 0.62% | |||||
| San Antonio TX Electric & Gas Series A (Utilities revenue) | 0.15% | 2-17-2022 | $ 33,000,000 | $ 32,999,855 | |
| Wisconsin: 0.19% | |||||
| Variable rate demand notes ø: 0.19% | |||||
| University of Wisconsin Hospitals and Clinics Authority Revenue Various Refunding Bond Series C (Health revenue, BMO Harris Bank NA SPA) | 0.12 | 4-1-2048 | 10,000,000 | 10,000,000 | |
| Total Municipal obligations (Cost $1,142,534,634) | 1,142,532,410 | ||||
| Other instruments: 4.18% | |||||
| AARP §øø | 0.10 | 5-1-2031 | 33,900,000 | 33,900,000 | |
| Altoona Blair County Development Corporation 144A§øø | 0.15 | 4-1-2035 | 12,000,000 | 12,000,000 | |
| Altoona Blair County Development Corporation 144A§øø | 0.15 | 9-1-2038 | 14,850,000 | 14,850,000 | |
| Altoona Blair County Development Corporation 144A§øø | 0.15 | 9-1-2038 | 39,350,000 | 39,350,000 | |
| Fortenbery Children 2017 Irrevocable Trust UTA §øø | 0.12 | 4-1-2026 | 15,000,000 | 15,000,000 | |
| Keep Memory Alive §øø | 0.15 | 5-1-2037 | 31,740,000 | 31,740,000 | |
| Ken-Vin Life Company LLC §øø | 0.11 | 12-1-2059 | 19,645,000 | 19,645,000 | |
| L Ward Huntley Irrevocable Life Insurance Trust §øø | 0.11 | 4-1-2071 | 14,000,000 | 14,000,000 | |
| Morris Family Insurance Trust §øø | 0.11 | 10-1-2059 | 3,350,000 | 3,350,000 | |
| New Grammercy LLC §øø | 0.12 | 2-1-2061 | 15,000,000 | 15,000,000 | |
| Rock Hill SI LLC §øø | 0.12 | 6-1-2061 | 23,000,000 | 23,000,000 | |
| Total Other instruments (Cost $221,835,000) | 221,835,000 | ||||
| Other notes: 3.06% | |||||
| Corporate bonds and notes: 3.06% | |||||
| Cellmark Incorporated Taxable Notes Series 2018A §øø | 0.12 | 6-1-2038 | 44,000,000 | 44,000,000 | |
| Jets Stadium Development LLC Series A-4B 144A§øø | 0.17 | 4-1-2047 | 56,560,000 | 56,560,000 | |
| Jets Stadium Finance 144A§øø | 0.17 | 4-1-2047 | 22,220,000 | 22,220,000 | |
| Lavonne V. Johnson Life Insurance Trust §øø | 0.12 | 6-1-2041 | 24,790,000 | 24,790,000 | |
| VPM Linden Manor LP §øø | 0.12 | 9-1-2060 | 15,200,000 | 15,200,000 | |
| Total Other notes (Cost $162,770,000) | 162,770,000 | ||||
| Repurchase agreements^^: 1.60% | |||||
| TD Securities USA Incorporated, dated 1-31-2022, maturity value $85,125,118 | 0.05 | 2-1-2022 | 85,125,000 | 85,125,000 | |
| Total Repurchase agreements (Cost $85,125,000) | 85,125,000 | ||||
| Total investments in securities (Cost $5,290,274,920) | 99.59% | 5,290,300,535 | |||
| Other assets and liabilities, net | 0.41 | 21,883,977 | |||
| Total net assets | 100.00% | $5,312,184,512 |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 15
Portfolio of investments—January 31, 2022
| 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. |
| ± | Variable rate investment. The rate shown is the rate in effect at period end. |
| ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
| § | The security is subject to a demand feature which reduces the effective maturity. |
| øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
| ^^ | Collateralized by U.S. government securities, 1.50% to 8.00%, 8-1-2022 to 2-1-2052, fair value including accrued interest is $87,678,750. |
| ☼ | Zero coupon security. The rate represents the current yield to maturity. |
| Abbreviations: | |
| AMT | Alternative minimum tax |
| FHLB | Federal Home Loan Bank |
| GNMA | Government National Mortgage Association |
| GO | General obligation |
| HFA | Housing Finance Authority |
| IDA | Industrial Development Authority |
| LIQ | Liquidity agreement |
| LOC | Letter of credit |
| MFHR | Multifamily housing revenue |
| OBFR | Overnight Bank Funding Rate |
| SOFR | Secured Overnight Financing Rate |
| SPA | Standby purchase agreement |
The accompanying notes are an integral part of these financial statements.
16 | Institutional Money Market Funds
Statement of assets and liabilities—January 31, 2022
| Assets | |
Investments in unaffiliated securities, at value (cost $5,290,274,920) | $ 5,290,300,535 |
Cash | 20,168 |
Receivable for investments sold | 20,290,039 |
Receivable from manager | 1,489,045 |
Receivable for interest | 731,801 |
Receivable for Fund shares sold | 40,450 |
Prepaid expenses and other assets | 179,889 |
Total assets | 5,313,051,927 |
| Liabilities | |
Payable for Fund shares redeemed | 243,277 |
Administration fees payable | 231,078 |
Custody and accounting fees payable | 202,889 |
Professional fees payable | 46,109 |
Dividends payable | 13,556 |
Trustees’ fees and expenses payable | 3,411 |
Accrued expenses and other liabilities | 127,095 |
Total liabilities | 867,415 |
Total net assets | $5,312,184,512 |
| Net assets consist of | |
Paid-in capital | $ 5,316,133,586 |
Total distributable loss | (3,949,074) |
Total net assets | $5,312,184,512 |
| Computation of net asset value per share | |
Net assets – Administrator Class | $ 131,539,019 |
Shares outstanding – Administrator Class1 | 131,485,144 |
Net asset value per share – Administrator Class | $1.0004 |
Net assets – Institutional Class | $ 678,991,282 |
Shares outstanding – Institutional Class1 | 678,712,622 |
Net asset value per share – Institutional Class | $1.0004 |
Net assets – Select Class | $ 4,373,390,796 |
Shares outstanding – Select Class1 | 4,371,172,534 |
Net asset value per share – Select Class | $1.0005 |
Net assets – Service Class | $ 128,263,415 |
Shares outstanding – Service Class1 | 128,223,768 |
Net asset value per share – Service Class | $1.0003 |
| 1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 17
Statement of operations—year ended January 31, 2022
| Investment income | |
Interest | $ 10,565,931 |
| Expenses | |
Management fee | 9,714,220 |
| Administration fees | |
Administrator Class | 125,075 |
Institutional Class | 628,164 |
Select Class | 2,221,315 |
Service Class | 142,411 |
| Shareholder servicing fees | |
Administrator Class | 125,074 |
Service Class | 296,696 |
Custody and accounting fees | 415,471 |
Professional fees | 83,790 |
Registration fees | 73,357 |
Shareholder report expenses | 31,516 |
Trustees’ fees and expenses | 19,271 |
Other fees and expenses | 171,215 |
Total expenses | 14,047,575 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level | (5,131,991) |
Administrator Class | (169,150) |
Institutional Class | (102,926) |
Service Class | (366,086) |
Net expenses | 8,277,422 |
Net investment income | 2,288,509 |
| Realized and unrealized gains (losses) on investments | |
Net realized gains on investments | 82,528 |
Net change in unrealized gains (losses) on investments | (496,573) |
Net realized and unrealized gains (losses) on investments | (414,045) |
Net increase in net assets resulting from operations | $ 1,874,464 |
The accompanying notes are an integral part of these financial statements.
18 | Institutional Money Market Funds
Statement of changes in net assets
| Year ended January 31, 2022 | Year ended January 31, 2021 | |||
| Operations | ||||
Net investment income | $ 2,288,509 | $ 42,570,022 | ||
Net realized gains (losses) on investments | 82,528 | (3,462,935) | ||
Net change in unrealized gains (losses) on investments | (496,573) | (935,328) | ||
Net increase in net assets resulting from operations | 1,874,464 | 38,171,759 | ||
Payment from affiliate | 1,808,392 | 0 | ||
| Distributions to shareholders from | ||||
| Net investment income and net realized gains | ||||
Administrator Class | (12,502) | (436,596) | ||
Institutional Class | (86,623) | (6,503,976) | ||
Select Class | (2,177,520) | (35,587,951) | ||
Service Class | (11,864) | (156,658) | ||
Total distributions to shareholders | (2,288,509) | (42,685,181) | ||
| Capital share transactions | Shares | Shares | ||
| Proceeds from shares sold | ||||
Administrator Class | 93,914,370 | 93,954,103 | 151,680,145 | 151,753,090 |
Institutional Class | 2,738,058,572 | 2,739,217,888 | 8,350,606,674 | 8,354,296,880 |
Select Class | 15,622,488,773 | 15,630,572,259 | 52,923,446,524 | 52,952,592,405 |
Service Class | 657,349,101 | 657,531,937 | 191,669,359 | 191,728,887 |
| 19,121,276,187 | 61,650,371,262 | |||
| Reinvestment of distributions | ||||
Administrator Class | 12,035 | 12,040 | 434,551 | 434,670 |
Institutional Class | 81,153 | 81,187 | 5,364,861 | 5,366,701 |
Select Class | 1,904,174 | 1,905,169 | 28,485,791 | 28,498,799 |
Service Class | 9,488 | 9,490 | 125,346 | 125,362 |
| 2,007,886 | 34,425,532 | |||
| Payment for shares redeemed | ||||
Administrator Class | (113,886,118) | (113,934,702) | (188,896,671) | (188,974,481) |
Institutional Class | (2,963,747,935) | (2,964,979,464) | (9,265,802,669) | (9,269,605,465) |
Select Class | (19,930,356,193) | (19,940,662,649) | (51,598,922,110) | (51,624,804,401) |
Service Class | (670,596,763) | (670,804,688) | (205,517,672) | (205,573,717) |
| (23,690,381,503) | (61,288,958,064) | |||
| Net asset value of shares issued in acquisition | ||||
Administrator Class | 74,725,415 | 74,759,591 | 0 | 0 |
Institutional Class | 109,981,768 | 110,028,740 | 0 | 0 |
Select Class | 208,219,903 | 208,338,708 | 0 | 0 |
Service Class | 99,315,488 | 99,370,192 | 0 | 0 |
| 492,497,231 | 0 | |||
Net increase (decrease) in net assets resulting from capital share transactions | (4,074,600,199) | 395,838,730 | ||
Total increase (decrease) in net assets | (4,073,205,852) | 391,325,308 | ||
| Net assets | ||||
Beginning of period | 9,385,390,364 | 8,994,065,056 | ||
End of period | $ 5,312,184,512 | $ 9,385,390,364 | ||
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 19
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Administrator Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.0003 | $1.0005 | $1.0004 | $1.0003 | $1.0003 |
Net investment income | 0.0001 | 0.0033 | 0.0203 | 0.0188 | 0.0096 |
Net realized and unrealized gains (losses) on investments | 0.0000 1 | (0.0002) | 0.0001 | 0.0001 | 0.0000 1 |
Total from investment operations | 0.0001 | 0.0031 | 0.0204 | 0.0189 | 0.0096 |
Payment from affiliate | 0.0001 | 0.0000 | 0.0000 | 0.0000 | 0.0000 |
| Distributions to shareholders from | |||||
Net investment income | (0.0001) | (0.0033) | (0.0203) | (0.0188) | (0.0096) |
Net realized gains | 0.0000 | 0.0000 | (0.0000) 1 | 0.0000 | (0.0000) 1 |
Total distributions to shareholders | (0.0001) | (0.0033) | (0.0203) | (0.0188) | (0.0096) |
Net asset value, end of period | $1.0004 | $1.0003 | $1.0005 | $1.0004 | $1.0003 |
Total return | 0.02% 2 | 0.32% | 2.05% | 1.91% | 0.96% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.36% | 0.35% | 0.35% | 0.36% | 0.40% |
Net expenses | 0.15% * | 0.29% * | 0.33% | 0.33% | 0.32% |
Net investment income | 0.01% | 0.39% | 2.01% | 1.87% | 0.96% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $131,539 | $76,740 | $113,555 | $92,671 | $92,542 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.18% |
| Year ended January 31, 2021 | 0.03% |
| 1 | Amount is less than $0.00005. |
| 2 | During the year ended January 31, 2022, the Fund received a payment from an affiliate which had a 0.01% impact on total return. See Note 4 in the Notes to Financial Statement for additional information. |
The accompanying notes are an integral part of these financial statements.
20 | Institutional Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Institutional Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.0003 | $1.0004 | $1.0004 | $1.0003 | $1.0003 |
Net investment income | 0.0001 | 0.0041 | 0.0216 | 0.0202 | 0.0108 |
Net realized and unrealized gains (losses) on investments | (0.0001) | 0.0000 | 0.0000 1 | 0.0000 1 | 0.0000 1 |
Total from investment operations | 0.0000 | 0.0041 | 0.0216 | 0.0202 | 0.0108 |
Payment from affiliate | 0.0002 | 0.0000 | 0.0000 | 0.0000 | 0.0000 |
| Distributions to shareholders from | |||||
Net investment income | (0.0001) | (0.0042) | (0.0216) | (0.0201) | (0.0108) |
Net realized gains | 0.0000 | 0.0000 | (0.0000) 1 | 0.0000 | (0.0000) 1 |
Total distributions to shareholders | (0.0001) | (0.0042) | (0.0216) | (0.0201) | (0.0108) |
Net asset value, end of period | $1.0004 | $1.0003 | $1.0004 | $1.0004 | $1.0003 |
Total return | 0.02% 2 | 0.42% | 2.18% | 2.04% | 1.09% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.24% | 0.23% | 0.23% | 0.24% | 0.28% |
Net expenses | 0.15% 3 | 0.20% | 0.20% | 0.20% | 0.20% |
Net investment income | 0.01% | 0.46% | 2.14% | 2.03% | 1.11% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $678,991 | $794,541 | $1,704,936 | $1,573,458 | $1,104,814 |
| 1 | Amount is less than $0.00005. |
| 2 | During the year ended January 31, 2022, the Fund received a payment from an affiliate which had a 0.02% impact on total return. See Note 4 in the Notes to Financial Statement for additional information. |
| 3 | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would have been 0.05% higher. |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 21
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Select Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.0004 | $1.0005 | $1.0005 | $1.0004 | $1.0004 |
Net investment income | 0.0004 1 | 0.0049 | 0.0223 | 0.0208 | 0.0116 |
Net realized and unrealized gains (losses) on investments | (0.0002) | (0.0001) | 0.0000 2 | 0.0001 | 0.0000 2 |
Total from investment operations | 0.0002 | 0.0048 | 0.0223 | 0.0209 | 0.0116 |
Payment from affiliate | 0.0003 | 0.0000 | 0.0000 | 0.0000 | 0.0000 |
| Distributions to shareholders from | |||||
Net investment income | (0.0004) | (0.0049) | (0.0223) | (0.0208) | (0.0116) |
Net realized gains | 0.0000 | 0.0000 | (0.0000) 2 | 0.0000 | (0.0000) 2 |
Total distributions to shareholders | (0.0004) | (0.0049) | (0.0223) | (0.0208) | (0.0116) |
Net asset value, end of period | $1.0005 | $1.0004 | $1.0005 | $1.0005 | $1.0004 |
Total return | 0.05% 3 | 0.49% | 2.25% | 2.11% | 1.16% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.20% | 0.19% | 0.19% | 0.20% | 0.24% |
Net expenses | 0.12% 4 | 0.13% | 0.13% | 0.13% | 0.12% |
Net investment income | 0.04% | 0.40% | 2.21% | 2.10% | 1.19% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $4,373,391 | $8,471,954 | $7,119,681 | $6,459,320 | $5,717,659 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Amount is less than $0.00005. |
| 3 | During the year ended January 31, 2022, the Fund received a payment from an affiliate which had a 0.03% impact on total return. See Note 4 in the Notes to Financial Statement for additional information. |
| 4 | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would have been 0.01% higher. |
The accompanying notes are an integral part of these financial statements.
22 | Institutional Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Service Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.0002 | $1.0004 | $1.0004 | $1.0003 | $1.0003 |
Net investment income (loss) | 0.0001 1 | 0.0031 | 0.0194 | 0.0177 | 0.0085 |
Net realized and unrealized gains (losses) on investments | 0.0000 2 | (0.0004) | (0.0001) | 0.0002 | 0.0000 2 |
Total from investment operations | 0.0001 | 0.0027 | 0.0193 | 0.0179 | 0.0085 |
Payment from affiliate | 0.0001 | 0.0000 | 0.0000 | 0.0000 | 0.0000 |
| Distributions to shareholders from | |||||
Net investment income | (0.0001) | (0.0029) | (0.0193) | (0.0178) | (0.0085) |
Net realized gains | 0.0000 | 0.0000 | (0.0000) 2 | 0.0000 | (0.0000) 2 |
Total distributions to shareholders | (0.0001) | (0.0029) | (0.0193) | (0.0178) | (0.0085) |
Net asset value, end of period | $1.0003 | $1.0002 | $1.0004 | $1.0004 | $1.0003 |
Total return | 0.02% 3 | 0.28% | 1.95% | 1.81% | 0.85% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.53% | 0.50% | 0.51% | 0.51% | 0.55% |
Net expenses | 0.14% * | 0.34% * | 0.43% | 0.43% | 0.43% |
Net investment income | 0.01% | 0.33% | 1.92% | 1.79% | 0.84% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $128,263 | $42,155 | $55,893 | $70,327 | $61,415 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.29% |
| Year ended January 31, 2021 | 0.09% |
| 1 | Calculated based upon average shares outstanding |
| 2 | Amount is less than $0.00005. |
| 3 | During the year ended January 31, 2022, the Fund received a payment from an affiliate which had a 0.01% impact on total return. See Note 4 in the Notes to Financial Statement for additional information. |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 23
Notes to financial statements
1. ORGANIZATION
Allspring Funds Trust (the "Trust"), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Heritage Money Market Fund (the "Fund") which is a diversified series of the Trust.
The Fund operates as an institutional non-government money market fund. As an institutional non-government money market fund, shareholders will transact at a floating net asset value (NAV) rounded to four decimal places in accordance with the valuation policies below.
Consistent with Rule 2a-7, the Board of Trustees of the Fund is permitted to impose a liquidity fee on redemptions from the Fund or a redemption gate (i.e., a suspension of the right to redeem) in the event that the Fund’s liquidity falls below required minimums because of market conditions or other factors. If the Fund’s weekly liquid assets (as defined in Rule 2a-7(34)) fall below 30% of the Fund’s total assets, the Board of Trustees is permitted, but not required, to: (i) impose a liquidity fee of no more than 2% of the amount redeemed; and/or (ii) impose a redemption gate. If the Fund’s weekly liquid assets fall below 10% of the Fund’s total assets, the Fund must impose, generally as of the beginning of the next business day, a liquidity fee of 1% of the amount redeemed unless the Board of Trustees determines that such a fee is not in the best interest of the Fund or determines that a lower or higher fee (subject to the 2% limit) is in the best interest of the Fund. Liquidity fees reduce the amount a shareholder receives upon redemption of its shares. The Fund retains any liquidity fees for the benefit of remaining shareholders. The Board of Trustees did not impose any liquidity fees and/or redemption gates during the year ended January 31, 2022.
Effective on November 1, 2021, the sale transaction of Wells Fargo Asset Management ("WFAM") by Wells Fargo & Company to GTCR LLC and Reverence Capital Partners, L.P. was closed. In connection with the closing of the transaction, WFAM became known as Allspring Global Investments (“Allspring”) and various entities that provided services to the Fund changed their names to "Allspring", including Allspring Funds Management, LLC, the investment manager to the Fund, Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited, both registered investment advisers providing subadvisory services to certain funds, and Allspring Funds Distributor, LLC, the Fund's principal underwriter. Consummation of the transaction resulted in a new investment management agreement and subadvisory agreement which became effective on November 1, 2021.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
Debt securities are valued at the evaluated bid price provided by an independent pricing service (e.g. taking into account various factors, including yields, maturities, or credit ratings) or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Allspring Global Investments Pricing Committee at Allspring Funds Management, LLC ("Allspring Funds Management"). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Allspring Global Investments Pricing Committee which may include items for ratification.
Repurchase agreements
The Fund may invest in repurchase agreements and may participate in pooled repurchase agreement transactions with other funds advised by Allspring Funds Management. Repurchase agreements are agreements where the seller of a security to the Fund agrees to repurchase that security from the Fund at a mutually agreed upon time and price. The repurchase agreements
24 | Institutional Money Market Funds
Notes to financial statements
must be fully collateralized based on values that are marked-to-market daily. The collateral may be held by an agent bank under a tri-party agreement. It is the custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain market value equal to or greater than the resale price (including accrued interest). The repurchase agreements are collateralized by securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. There could be potential loss to the Fund in the event that the Fund is delayed or prevented from exercising its rights to dispose of the collateral, including the risk of a possible decline in the value of the underlying obligations during the period in which the Fund seeks to assert its rights.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund's fiscal year end. Therefore, a portion of the Fund's distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund's tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of January 31, 2022, the aggregate cost of all investments for federal income tax purposes was $5,290,274,923 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $ 93,582 |
| Gross unrealized losses | (67,970) |
| Net unrealized gains | $ 25,612 |
As of January 31, 2022, the Fund had capital loss carryforwards which consisted of $3,735,218 in short-term capital losses.
Class allocations
The separate classes of shares offered by the Fund differ principally in shareholder servicing and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
Institutional Money Market Funds | 25
Notes to financial statements
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
| ■ | Level 1 – quoted prices in active markets for identical securities |
| ■ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
| ■ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of January 31, 2022:
| Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
| Assets | ||||
| Investments in: | ||||
| Certificates of deposit | $0 | $ 1,493,141,095 | $0 | $ 1,493,141,095 |
| Closed end municipal bond fund obligations | 0 | 23,000,000 | 0 | 23,000,000 |
| Commercial paper | 0 | 2,161,897,030 | 0 | 2,161,897,030 |
| Municipal obligations | 0 | 1,142,532,410 | 0 | 1,142,532,410 |
| Other instruments | 0 | 221,835,000 | 0 | 221,835,000 |
| Other notes | 0 | 162,770,000 | 0 | 162,770,000 |
| Repurchase agreements | 0 | 85,125,000 | 0 | 85,125,000 |
| Total assets | $0 | $5,290,300,535 | $0 | $5,290,300,535 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended January 31, 2022, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Allspring Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Allspring Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
| Average daily net assets | Management fee |
| First $5 billion | 0.150% |
| Next $5 billion | 0.140 |
| Next $5 billion | 0.130 |
| Next $85 billion | 0.125 |
| Over $100 billion | 0.120 |
26 | Institutional Money Market Funds
Notes to financial statements
Prior to June 1, 2021, the management fee rate was as follows:
| Average daily net assets | Rate prior to June 1, 2021 |
| First $5 billion | 0.15% |
| Next $5 billion | 0.14 |
| Over $10 billion | 0.13 |
For the year ended January 31, 2022, the management fee was equivalent to an annual rate of 0.15% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase. Prior to November 1, 2021, Wells Capital Management Singapore, a former affiliate, was also a subadviser to the Fund and was entitled to receive a fee at an annual rate which started at 0.0025% and declined to 0.0005% as the average daily net assets of the Fund increased.
Administration fees
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
| Class-level administration fee | |
| Administrator Class | 0.10% |
| Institutional Class | 0.08 |
| Select Class | 0.04 |
| Service Class | 0.12 |
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through May 31, 2022 to waive fees and/or reimburse expenses to the extent necessary to cap expenses. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. In addition to the contractual waivers and/or reimbursements, Allspring Funds Management also voluntarily waived certain class-level expenses during the year ended January 31, 2022 in order to maintain a positive yield. These voluntary class-level waivers may be discontinued at any time. The contractual expense caps are as follows:
| Expense ratio caps | |
| Administrator Class | 0.33% |
| Institutional Class | 0.20 |
| Select Class | 0.13 |
| Service Class | 0.43 |
Institutional Money Market Funds | 27
Notes to financial statements
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Service Class of the Fund is charged a fee at an annual rate of 0.25% of its average daily net assets. Administrator Class is charged a fee at an annual rate of 0.10% of its average daily net assets. A portion of these total shareholder servicing fees were paid to affiliates, and to certain entities that were affiliates of the Fund until November 1, 2021.
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices.
Other transactions
During the year ended January 31, 2022, Allspring Funds Management made a payment to the Fund in the amount of $1,808,392 in connection with certain fees.
5. ACQUISITION
After the close of business on March 26, 2021, the Fund acquired the net assets of Wells Fargo Cash Investment Money Market Fund. The purpose of the transaction was to combine two funds with similar investment objectives and strategies. Shareholders holding Administrator Class, Institutional Class, Select Class and Service Class shares of Wells Fargo Cash Investment Money Market Fund received Administrator Class, Institutional Class, Select Class and Service Class, respectively, of the Fund in the reorganization. The acquisition was accomplished by a tax-free exchange of all of the shares of Wells Fargo Cash Investment Money Market Fund for 492,242,574 shares of the Fund valued at $492,497,231 at an exchange ratio of 1.00, 1.00, 1.00, and 1.00 for Administrator Class, Institutional Class, Select Class and Service Class, respectively. The investment portfolio of Wells Fargo Cash Investment Money Market Fund with a fair value of $491,721,702, identified cost of $491,720,949 and unrealized gains of $753 at March 26, 2021 were the principal assets acquired by the Fund. The aggregate net assets of Wells Fargo Cash Investment Money Market Fund and the Fund immediately prior to the acquisition were $492,497,231 and $8,109,685,068, respectively. The aggregate net assets of the Fund immediately after the acquisition were $8,602,182,299. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received from Wells Fargo Cash Investment Money Market Fund was carried forward to align with ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
Assuming the acquisition had been completed February 1, 2021, the beginning of the annual reporting period for the Fund, the pro forma results of operations for the year ended January 31, 2022 would have been as follows (unaudited):
| Net investment income | $ | 6,579,046 |
| Net realized and unrealized losses on investment | (412,563) | |
| Net increase in net assets resulting from operations | $ | 6,166,483 |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Wells Fargo Cash Investment Money Market Fund that have been included in the Fund’s Statement of Operations since March 29, 2021.
6. DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid was $2,288,509 and $42,685,181 of ordinary income for the years ended January 31, 2022 and January 31, 2021, respectively.
As of January 31, 2022, the components of distributable earnings on a tax basis were as follows:
| Unrealized gains | Capital loss carryforward |
| $25,612 | $(3,735,218) |
7. INDEMNIFICATION
Under the Fund's organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational
28 | Institutional Money Market Funds
Notes to financial statements
documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
8. CORONAVIRUS (COVID-19) PANDEMIC
On March 11, 2020, the World Health Organization announced that it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general. There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial markets.
Institutional Money Market Funds | 29
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring Heritage Money Market Fund (formerly, Wells Fargo Heritage Money Market Fund) (the Fund), one of the funds constituting Allspring Funds Trust (formerly, Wells Fargo Funds Trust), including the portfolio of investments, as of January 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of January 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of January 31, 2022, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
March 30, 2022
30 | Institutional Money Market Funds
Other information (unaudited)
TAX INFORMATION
For the fiscal year ended January 31, 2022, $1,610,567 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.
For corporate shareholders, pursuant to Section 163(j) of the Internal Revenue Code, 98% of ordinary income dividends qualify as interest dividends for the fiscal year ended January 31, 2022.
PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
SPECIAL MEETING OF SHAREHOLDERS
On October 15, 2021, a Special Meeting of Shareholders for the Fund was held to consider the following proposals. The results of the proposals are indicated below.
Proposal 1 – To consider and approve a new investment management agreement with Wells Fargo Funds Management, LLC*.
| Shares voted “For” | 2,778,263,390 | |
| Shares voted “Against” | 179,412,334 | |
| Shares voted “Abstain” | 573,090,373 |
Proposal 2 – To consider and approve a new subadvisory agreement with Wells Capital Management, LLC**.
| Shares voted “For” | 2,778,064,696 | |
| Shares voted “Against” | 179,611,028 | |
| Shares voted “Abstain” | 573,090,373 |
* Effective November 1, 2021, known as Allspring Funds Management, LLC.
** Effective November 1, 2021, known as Allspring Global Investments, LLC.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at allspringglobal.com.
Institutional Money Market Funds | 31
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Allspring family of funds, which consists of 139 mutual funds comprising the Allspring Funds Trust, Allspring Variable Trust, Allspring Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information1. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
| Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
| William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A |
| Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A |
| Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chair, since 2019 | Retired. Chairman of the Board of CIGNA Corporation from 2009 to 2021, and Director from 2005 to 2008. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Fellowship of Christian Athletes. Mr. Harris is a certified public accountant (inactive status). | N/A |
| David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business (Emeritus), Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A |
32 | Institutional Money Market Funds
Other information (unaudited)
| Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
| Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor since 1993, Wharton School of the University of Pennsylvania. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously taught at Cornell University from 1978 to 1993. | N/A |
| Timothy J. Penny (Born 1951) | Trustee, since 1996; Chair, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A |
| James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A |
| Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019. Interim President of the McKnight Foundation from January to September 2020. McKnight Foundation Consultant, November 2020 to February 2021. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Consultant (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Institutional Money Market Funds | 33
Other information (unaudited)
Officers2
| Name and year of birth | Position held and length of service | Principal occupations during past five years or longer |
| Andrew Owen (Born 1960) | President, since 2017 | President, Chief Executive Officer and Director of Allspring Funds Management, LLC since 2017 and co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, since 2019. Prior thereto, Head of Affiliated Managers, Allspring Global Investments, from 2014 to 2019 and Executive Vice President responsible for marketing, investments and product development for Allspring Funds Management, LLC, from 2009 to 2014. In addition, Mr. Owen was an Executive Vice President of Wells Fargo & Company from 2014 to 2021. |
| Jeremy DePalma (Born 1974) | Treasurer, since 2012 (for certain funds in the Fund Complex); since 2021 (for the remaining funds in the Fund Complex) | Senior Vice President of Allspring Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration. |
| Kate McKinley (Born 1977) | Chief Legal Officer, since 2021 | Chief Legal Officer of Allspring Global Investments since 2021. Prior thereto, held various roles at State Street Global Advisors beginning in 2010, including serving as Senior Vice President and General Counsel from 2019 to 2021, and Chief Operating Officer of the Institutional Client Group from 2016 - 2019. Prior to working at State Street Global Advisors served as Assistant General Counsel for Bank of America Corporation from 2005 to 2010 and as an Associate at WilmerHale from 2002 to 2005. |
| Christopher Baker (Born 1976) | Chief Compliance Officer, since 2022 | Global Chief Compliance Officer for Allspring Global Investments since 2022. Prior thereto, Chief Compliance Officer for State Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015 Vice President, Global Head of Investment and Marketing Compliance for State Street Global Advisors. |
| Matthew Prasse (Born 1983) | Secretary, since 2021 | Senior Counsel of the Allspring Legal Department since 2021. Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021. Previously, Counsel for Barings LLC from 2015 to 2018. Prior to joining Barings, Associate at Morgan, Lewis & Bockius LLP from 2008 to 2015. |
1 The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at allspringglobal.com.
2 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to 2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
34 | Institutional Money Market Funds
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund's website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2022 Allspring Global Investments Holdings, LLC. All rights reserved.
PAR-0222-00689 03-22
A304/AR304 01-22
A304/AR304 01-22
Annual Report
January 31, 2022
Retail Money Market Funds
| ■ | Allspring Money Market Fund |
Contents
| 2 | |
| 6 | |
| 10 | |
| 11 | |
| Financial statements | |
| 18 | |
| 19 | |
| 20 | |
| 21 | |
| 25 | |
| 30 | |
| 31 |
The views expressed and any forward-looking statements are as of January 31, 2022, unless otherwise noted, and are those of the Fund's portfolio managers and/or Allspring Global Investments. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Allspring Global Investments disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.
Retail Money Market Funds | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Money Market Fund for the 12-month period that ended January 31, 2022. Global stocks yielded mixed results as the global economy continued to emerge from the haze of COVID-19. Tailwinds were provided by global stimulus programs, a rapid vaccination rollout, and recovering consumer and corporate sentiment, only to be dampened by persistent inflation. Bonds also saw mixed performance during the period.
For the 12-month period, equities had mixed returns as policymakers continued to fight the effects of COVID-19. U.S. stocks led both non-U.S. developed market equities and emerging market stocks. Returns by fixed-income securities were also a mix of positive and negative returns. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 23.29%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 3.63%, while the MSCI EM Index (Net) (USD)3 had weaker performance with a -7.23% loss. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -2.97%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned -7.92%, the Bloomberg Municipal Bond Index6 lost -1.89%, and the ICE BofA U.S. High Yield Index7 returned 2.08%.
Efforts to contain COVID-19 drove market performance.
February 2021 saw major domestic equity indexes driven higher on the hope of a new stimulus bill, improving COVID-19 vaccination numbers, and the gradual reopening of the economy. Most S&P 500 companies reported better-than-expected earnings, with positive surprises coming from the financials, information technology, health care, and materials sectors. Japan saw its economy strengthen as a result of strong export numbers. Meanwhile, crude oil prices continued their climb, rising more than 25% for the year. Domestic government bonds experienced a sharp sell-off in late February as markets priced in a more robust economic recovery and higher future growth and inflation expectations.
The passage of the massive domestic stimulus bill highlighted March activity, leading to increased forecasts for U.S. growth in 2021. Domestic employment surged as COVID-19 vaccinations and an increasingly open economy spurred hiring. A majority of U.S. small companies reported they were operating at pre-pandemic capacity or higher. Value stocks continued their outperformance of growth stocks in the month, continuing the trend that started in late 2020. Meanwhile, most major developed global equity indexes were up month to date on the back of rising optimism regarding the outlook for global growth. While the U.S. and the U.K. have been the most successful in terms of the vaccine rollout, even in markets where the vaccine has lagged, such as in the eurozone and Japan, equity indexes in many of those countries have also been in positive territory for the year through March 2021.
| 1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index. |
| 2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
| 3 | The MSCI Emerging Markets (EM) Index (Net) (USD) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
| 4 | The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.-dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
| 5 | The Bloomberg Global Aggregate ex-USD Index (unhedged) is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
| 6 | The Bloomberg Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index. |
| 7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2022. ICE Data Indices, LLC. All rights reserved. |
2 | Retail Money Market Funds
Letter to shareholders (unaudited)
Equity markets produced another strong showing in April. Domestically, the continued reopening of the economy had a strong impact on positive equity performance, as people started leaving their households and jobless claims continued to fall. Domestic corporate bonds performed well and the U.S. dollar weakened. Meanwhile, the U.S. government continued to seek to invest in the recovery, this time by outlining a package of over $2 trillion to improve infrastructure. The primary headwind in April was inflation, as investors tried to determine the breadth and longevity of recent price increases. Developed Europe was supported by a meaningful increase in the pace of vaccinations. Unfortunately many emerging market countries were not as successful. India in particular saw COVID-19 cases surge, serving as an example of the need to get vaccinations rolled out to less developed nations.
Vaccine rollouts continued in May, leading to loosened restrictions globally. As a result, equity markets in general saw a minor increase in returns. Concerns that the continued economic rebound could result in inflation increases becoming more than transitory were supported by the higher input costs businesses were experiencing. Meanwhile, those inflation concerns were tempered by the U.S. Federal Reserve (Fed), which stayed steady on its view of the economy and eased fears of a sudden and substantial policy change. Positive performance in the emerging market equity space was supported this month by steady consumer demand and strong commodity prices. Fixed-income markets were also slightly positive for the month, driven by inflation uncertainty and a softer U.S. dollar.
June witnessed the S&P 500 Index reach a new all-time high. 2021 economic growth and inflation forecasts were revised higher to reflect a strong economic recovery and some supply and demand imbalances. Late June saw a deal reached on a U.S. infrastructure package of approximately $1 trillion for road, bridge, and broadband network upgrades over the next eight years. The Fed’s June meeting yielded no change to policy, but its projections pointed to a possible interest rate rise in 2023. This, combined with a rebound in economic activity and investors searching for yield, led to U.S. Treasury yields being down for the month. Many European and Asian countries saw vaccination momentum increase, while the U.K. dealt with a rise in COVID-19 infections, specifically the Delta variant. Meanwhile, crude oil jumped over 10% in June on the back of the pickup in global economic activity and the Organization of the Petroleum Exporting Countries’ (OPEC) slow pace of supply growth.
July began the month seeing vaccinations making progress, as several major developed countries eased restrictions, only to be threatened again by the spread of COVID-19’s Delta variant. Inflation continued to climb, aided by the continued supply bottleneck in the face of high demand. As it pertains to the equity area of the market, U.S. equities led the way in positive return territory followed by international developed markets. In contrast, emerging markets were well in negative territory for the month, hindered by China’s plans for new regulations on a number of sectors, specifically education and technology. The U.S. 10-year Treasury bond yield continued to decline as strong demand swallowed up supply. After hitting a multiyear high earlier in the month, oil prices leveled off following an agreement by OPEC to raise oil production starting in August.
The Delta variant of COVID-19 produced outbreaks globally in August, increasing the potential for increased market volatility and bringing into question the ongoing economic recovery. Domestically, the U.S. economy continued to stay strong in the face of the Delta variant, continued inflationary pressures, and worries over Hurricane Ida. Emerging market equities experienced elevated volatility, largely influenced by China’s regulatory stance. Emerging market equities started the month with poor performance but rebounded to end the month in positive territory. Municipal debt experienced its first monthly performance drop since February 2021, slowing a rally that made it one of the best-performing sectors of the bond market. In the commodity segment of the market, crude oil fell sharply during the month on the back of dampened expectations as a result of the Delta variant but was still a leading asset-class performer for the year through August 2021.
Global markets suffered their broadest retreat in a year during September, with the exception of commodities. Concerns over inflation and the interest rate outlook depressed investor confidence and hurt performance. Emerging markets declined on concerns over the continued supply chain disruptions and worries over higher energy and food prices. Meanwhile, the Fed indicated it would slow the pace of asset purchases in the near future (pointing towards November). All eyes domestically were fixed on the raising of the debt ceiling, the 2022 budget plan, and the ongoing debate over the infrastructure package. Contrary to most asset classes, commodities thrived in September, driven by sharply higher energy prices.
“ Municipal debt experienced its first monthly performance drop since February 2021, slowing a rally that made it one of the best-performing sectors of the bond market.”
Retail Money Market Funds | 3
Letter to shareholders (unaudited)
October’s key themes continued to be elevated inflation pressures and a supply bottleneck, but strong earnings provided a bright spot in the markets. Earnings releases in the U.S. were generally strong and consumer confidence was high. The Fed reaffirmed its plans to taper quantitative easing to a stop by mid-2022. Meanwhile, elevated inflation figures were considered transitory by the Fed. Similar to the U.S., the eurozone and many Asian countries saw positive earnings but were facing inflation pressures caused by supply bottlenecks while also experiencing energy price increases amid natural gas shortages. Globally, government bond yields rose as central banks prepared to lower monetary policy accommodation in the face of rising inflationary pressures. As previously referenced, positive commodity performance was driven by sharply higher energy costs.
November was dominated by rising COVID-19 hospitalizations and concerns regarding the Omicron variant. Most major asset classes, both domestically and internationally, declined in November with two exceptions: U.S. investment-grade bonds and Treasury Inflation-Protected Securities. The United Nations Climate Change Conference (COP26) took place during the month with hopes of agreement among countries to limit global warming. While several initiatives were discussed, the conference ultimately ended without the specifics required to instill confidence that the limiting of global warming would succeed. In the U.S., President Biden signed a long-awaited infrastructure bill to upgrade U.S. roads, bridges, and railways. Meanwhile, the Consumer Price Index1, a measure of domestic inflation conditions, jumped to its highest level in 31 years. While the threat of consistently high inflation led the Fed to discuss a faster pace of tapering, the Omicron strain makes that less likely to occur. Commodities came in negative for the month, largely driven by sharp declines in oil prices (and energy costs in general) as well as precious metals.
Global volatility in December lessened as data indicated a lower risk of severe disease and death as a result of the Omicron variant. Even so, a number of countries introduced restrictions on sectors such as travel and hospitality to try to reduce the spread. In the U.S., data indicated that the overall domestic economy remained stable and corporate earnings remained robust. Consumer spending capability looked strong heading into 2022 on the back of elevated household savings and the lowest ratio of U.S. household liabilities to assets since 1973. U.S. corporate and high-yield bonds produced positive returns for the month while Treasuries declined. Bonds were strongly affected by the projection of three 25-basis-point (bp; 100 bps equal 1.00%) policy rate hikes in 2022 by senior Federal Open Market Committee members, contrary to just one hike as previously believed.
Key themes in the first month of 2022 were the potential U.S. interest rate hikes and the Russia-Ukraine conflict. Comments from the Fed suggested a hike in interest rates in March is now likely. Meanwhile, Russia’s potential invasion of Ukraine, could threaten to disrupt its massive energy supplies and drive demand from non-Russian oil-producing countries. Elsewhere overseas, Europe saw food and energy prices spike, leading to rising inflation to match that being experienced in the U.S. Within fixed income, corporate bonds struggled in January and underperformed government bonds, as investors focused on continued elevated inflation and ongoing uncertainty over the U.S. monetary path.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Allspring Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
“ Bonds were strongly affected by the projection of three 25-basis-point (bp; 100 bps equal 1.00%) policy rate hikes in 2022 by senior Federal Open Market Committee members, contrary to just one hike as previously believed.”
| 1 | The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index. |
4 | Retail Money Market Funds
Letter to shareholders (unaudited)
Information on transaction closing.
On November 1, 2021, GTCR LLC and Reverence Capital Partners, L.P., announced the beginning of Allspring Global Investments™, with the close of the transaction to acquire Wells Fargo Funds Management, LLC; Wells Capital Management, LLC; Galliard Capital Management, LLC.; Wells Fargo Asset Management (International) Ltd.; Wells Fargo Asset Management Luxembourg S.A.; and Wells Fargo Funds Distributor, LLC, as well as Wells Fargo Bank, N.A.’s business of acting as trustee to its collective investment trusts and all related Wells Fargo Asset Management legal entities. The transaction closed on November 1, 2021, forming Allspring Global Investments, a privately held asset management firm with $575 billion in AUM1 as of December 31, 2021.
Allspring Global Investments™ is a leading independent asset management firm with a full breadth of investment capabilities across diverse asset classes, serving the needs of its institutional and wealth management clients around the world. Allspring operates across 18 offices globally supported by more than 480 investment professionals. Allspring and its investment teams provide a broad range of differentiated investment products and solutions to help its diverse range of clients meet their investment objectives.
As part of this transition, all mutual funds within the Wells Fargo Funds family were rebranded as Allspring Funds. Each individual fund had “Wells Fargo” removed from its fund name and replaced with “Allspring.” The fund name changes went into effect on December 6, 2021.
Allspring Global Investments is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
President
Allspring Funds
Notice to Shareholders
Russia launched a large-scale invasion of Ukraine on February 24, 2022. As a result of this military action, the United States and many other countries have instituted various economic sanctions against Russian individuals and entities. The situation has led to increased financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities, such as oil and natural gas. The extent and duration of the military action, resulting sanctions imposed, other punitive action taken and the resulting market disruptions cannot be easily predicted.
Our solidarity and support goes out to our impacted employees and the people affected in Ukraine and their families. Allspring has a dedicated team of investment professionals actively monitoring the situation for any new developments and the potential impact to our clients and investment products. As the situation remains fluid, we are focused on the assessment of risks, valuation, and liquidity of impacted securities. Please visit our website at allspringglobal.com and click on “Russia-Ukraine Portfolio Impacts” for further information
For further information about your Fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
| 1 | As of December 31, 2021, assets under management (AUM) includes $91.6 billion from Galliard Capital Management, LLC, an investment advisor that is not part of the Allspring trade name/GIPS firm. |
Retail Money Market Funds | 5
Performance highlights (unaudited)
| Investment objective | The Fund seeks current income, while preserving capital and liquidity. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Michael C. Bird, CFA®‡, Jeffrey L. Weaver, CFA®‡, Laurie White |
| Average annual total returns (%) as of January 31, 2022 | |||||||||||
| Including sales charge | Excluding sales charge | Expense ratios1 (%) | |||||||||
| Inception date | 1 year | 5 year | 10 year | 1 year | 5 year | 10 year | Gross | Net 2 | |||
| Class A (STGXX) | 7-1-1992 | – | – | – | 0.01 | 0.86 | 0.44 | 0.68 | 0.60 | ||
| Class C * | 6-30-2010 | -0.99 | 0.39 | 0.20 | 0.01 | 0.39 | 0.20 | 1.43 | 1.35 | ||
| Premier Class (WMPXX)3 | 3-31-2016 | – | – | – | 0.03 | 1.17 | 0.62 | 0.29 | 0.20 | ||
| Service Class (WMOXX) | 6-30-2010 | – | – | – | 0.01 | 0.93 | 0.48 | 0.58 | 0.50 | ||
| * | Class C shares are available only to shareholders making an exchange out of Class C shares of another mutual fund within the Allspring family of funds. |
| 1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
| 2 | The manager has contractually committed through May 31, 2022, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.60% for Class A, 1.35% for Class C, 0.20% for Premier Class and 0.50% for Service Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. The manager and/or its affiliates may also voluntarily waive all or a portion of any fees to which they are entitled and/or reimburse certain expenses as they may determine from time to time. Without these caps, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses. |
| 3 | Historical performance shown for the Premier Class shares prior to their inception reflects the performance of the Class A shares, and includes the higher expenses applicable to the Class A shares. If these expenses had not been included, returns for the Premier Class shares would be higher. |
| Yield summary (%) as of January 31, 2022 | ||||
| Class A | Class C* | Premier Class | Service Class | |
| 7-day current yield1 | 0.01 | 0.01 | 0.04 | 0.01 |
| 7-day compound yield | 0.01 | 0.01 | 0.04 | 0.01 |
| 30-day simple yield | 0.01 | 0.01 | 0.04 | 0.01 |
| 30-day compound yield | 0.01 | 0.01 | 0.04 | 0.01 |
| * | Class C shares are available only to shareholders making an exchange out of Class C shares of another mutual fund within the Allspring family of funds. |
| 1 | The manager has contractually committed through May 31, 2022, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses and may also voluntarily waive or reimburse additional fees and expenses which may be discontinued or modified at any time without notice. Without these reductions, the Fund’s 7-day current yield would have been -0.52%, -1.17%, -0.14% and -0.43% for Class A, Class C, Premier Class and Service Class, respectively. |
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 returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, allspringglobal.com.
Class A shares, Premier Class shares, and Service Class shares are sold without a front-end sales charge or contingent deferred sales charge. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Other fees and expenses apply to an investment in the Fund and are described in the Fund’s current prospectus.
| ‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Retail Money Market Funds
Performance highlights (unaudited)
For retail money market funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Retail Money Market Funds | 7
Performance highlights (unaudited)
MANAGER'S DISCUSSION
If 2020 was a year in which the Federal Open Market Committee (FOMC) operated in reactionary mode to market conditions by providing backstops to keep most markets functioning, 2021 was a year for the FOMC to take a breath, regroup, and assess the economic conditions resulting from the pandemic. As we entered the reporting period, the U.S. Federal Reserve (Fed) maintained its 0.00% – 0.25% target federal funds rate, kept asset purchases steady at $120 billion per month, and continued the average inflation targeting policies with committee members comfortable letting the economy regain its footing and allowing inflation to temporarily exceed its 2% target. With fiscal policies and vaccines supporting the demand side of economic activity, labor shortages and product disruptions caused supply chain bottlenecks, pressuring prices on both labor and goods. The FOMC was originally comfortable with this scenario as it felt the labor market would again reach equilibrium and inflationary prices would recalibrate and prove to be “transitory.” Over the next several months, however, this position would evolve.
| Portfolio composition as of January 31, 20221 |
| 1 | Figures represent the percentage of the Fund's total investments. These amounts are subject to change and may have changed since the date specified. |
The FOMC meeting minutes from April showed that after several months of labeling inflation as transitory, Fed Chair Powell stated that if the economic recovery continued at the current pace, it might be appropriate to adjust the amount of asset purchases being done each month. However, as economic conditions evolved, the June meeting saw committee members discuss reducing asset purchases, even though they believed the elevated inflation levels would prove transitory and ease as job growth picked up and the economy recovered from lockdowns. In late summer, fears that the Delta variant might slow the strong economic recovery and job growth yet again led the FOMC to remain comfortable with elevated inflation. By September, though, Powell deemed that the conditions were all but met in order
to moderate the pace of asset purchases while noting that the test for rate lift-off was much higher than for asset tapering.
By October, market participants expected a tapering in the amount of asset purchases to be announced at the November meeting because “transitory” could no longer be used to describe the record-setting inflation numbers being posted. Indeed, the Fed announced a reduction of $15 billion per month at its November meeting for both November and December purchases. This asset purchase reduction was expected to continue at that pace going forward, with asset purchases ceasing altogether by roughly June 2022. Rapidly changing economic conditions, however, prompted the Fed to quickly modify the amount of reduction. At the December FOMC meeting, the level of tapering was doubled to $30 billion each month, meaning asset purchases were expected to fully finish in March 2022. Economic activity remained robust and supply chain and labor disruptions kept prices elevated—elevated persistently enough for the FOMC to remove “transitory” from its vocabulary.
| Effective maturity distribution as of January 31, 20221 |
| 1 | Figures represent the percentage of the Fund's total investments. These amounts are subject to change and may have changed since the date specified. |
A stagnant rate environment characterized most of the reporting period, as the FOMC kept target rates in the range of 0.00% to 0.25% and their foot on the accommodation pedal with asset purchases of $120 billion per month. In addition, the FOMC was very deliberate in communicating its intentions to market participants, which kept the rate curve largely in check and allowed asset prices to recover. With so much excess liquidity in the system and the Fed committed to accommodation, money market yields remained low and the LIBOR (London Interbank Offered Rate) curve remained fairly flat for the first three quarters of 2021. It wasn’t until September, though, with the talk of moderating asset purchases, the thought that inflation was more than transitory, and that the FOMC could raise rates in 2022 that the yield curve began to steepen. By October, the market had
8 | Retail Money Market Funds
Performance highlights (unaudited)
priced in a 92% chance of a rate hike in June 2022 and yields really started to move higher. At year-end, three rate increases were priced into the futures markets for 2022. Continued strong gross domestic product; employment; and, more importantly, high inflation readings in January have sealed the deal for a target rate hike in March. Futures are now pricing in four to five rate increases in 2022, and talk is starting that the FOMC is “behind the curve” on its dual mandate. The markets have come a long way since September when first pricing in future rate increases.
Strategic outlook
As the FOMC begins its journey toward raising rates, money market assets may become an attractive asset class as investors can capture rate increases with minimal duration risk. With uncertainty over the total number of rate increases to come, floating-rate notes are a natural choice compared with fixed paper. As always, we tend to take a conservative approach when constructing our portfolios and favor keeping excess liquidity over stated regulatory requirements, running shorter weighted average maturities and looking to extend maturities if the opportunity offers a favorable risk/reward proposition.
| Weighted average maturity as of January 31, 20221 |
| 22 days |
| 1 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
| Weighted average life as of January 31, 20221 |
| 29 days |
| 1 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
Retail Money Market Funds | 9
Fund expenses (unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from August 1, 2021 to January 31, 2022.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as contingent deferred sales charges. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning account value 8-1-2021 | Ending account value 1-31-2022 | Expenses paid during the period1 | Annualized net expense ratio | |
| Class A | ||||
| Actual | $1,000.00 | $1,000.05 | $0.66 | 0.13% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.55 | $0.66 | 0.13% |
| Class C | ||||
| Actual | $1,000.00 | $1,000.05 | $0.66 | 0.13% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.55 | $0.66 | 0.13% |
| Premier Class | ||||
| Actual | $1,000.00 | $1,000.09 | $0.66 | 0.13% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.55 | $0.66 | 0.13% |
| Service Class | ||||
| Actual | $1,000.00 | $1,000.05 | $0.66 | 0.13% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.55 | $0.66 | 0.13% |
1 Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).
10 | Retail Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Certificates of deposit: 26.85% | |||||
| ABN Amro Bank NV | 0.08% | 2-4-2022 | $70,000,000 | $ 70,000,000 | |
| Australia & New Zealand Banking Group Limited | 0.07 | 2-1-2022 | 60,000,000 | 60,000,000 | |
| Canadian Imperial Bank of Commerce | 0.07 | 2-1-2022 | 80,000,000 | 80,000,000 | |
| Credit Agricole Corporate and Investment Bank of New York | 0.07 | 2-1-2022 | 85,000,000 | 85,000,000 | |
| HSBC Bank USA NA | 0.08 | 2-1-2022 | 50,000,000 | 50,000,000 | |
| Legacy Capital Company 144A | 0.27 | 4-12-2022 | 33,000,000 | 32,998,717 | |
| Mizuho Bank Limited | 0.07 | 2-1-2022 | 85,000,000 | 85,000,000 | |
| MUFG Bank Limited | 0.23 | 4-7-2022 | 17,000,000 | 17,000,000 | |
| National Australia Bank Limited 144A☼ | 0.21 | 3-1-2022 | 17,000,000 | 16,997,223 | |
| Nordea Bank AB | 0.20 | 2-18-2022 | 35,000,000 | 35,001,153 | |
| Nordea Bank AB (U.S. SOFR +0.17%) ± | 0.22 | 11-28-2022 | 20,000,000 | 19,991,651 | |
| Norinchukin Bank | 0.23 | 4-19-2022 | 17,000,000 | 17,000,000 | |
| Norinchukin Bank | 0.25 | 5-9-2022 | 15,000,000 | 15,000,000 | |
| Norinchukin Bank | 0.25 | 5-16-2022 | 13,000,000 | 13,000,000 | |
| Oversea-Chinese Banking Corporation | 0.19 | 4-20-2022 | 25,000,000 | 25,000,000 | |
| Oversea-Chinese Banking Corporation | 0.22 | 4-8-2022 | 15,000,000 | 15,000,000 | |
| Oversea-Chinese Banking Corporation | 0.33 | 6-7-2022 | 15,000,000 | 15,000,000 | |
| Royal Bank of Canada (U.S. SOFR +0.15%) 144A± | 0.20 | 6-24-2022 | 15,000,000 | 15,001,193 | |
| Sumitomo Mitsui Banking Corporation 144A☼ | 0.20 | 3-9-2022 | 20,000,000 | 19,996,000 | |
| Sumitomo Mitsui Banking Corporation | 0.20 | 4-27-2022 | 18,000,000 | 18,000,000 | |
| Sumitomo Mitsui Banking Corporation | 0.25 | 5-12-2022 | 10,000,000 | 10,000,000 | |
| Sumitomo Mitsui Trust Bank | 0.17 | 4-18-2022 | 15,000,000 | 15,000,000 | |
| Sumitomo Mitsui Trust Bank | 0.18 | 2-9-2022 | 15,000,000 | 15,000,000 | |
| Sumitomo Mitsui Trust Bank | 0.22 | 3-14-2022 | 15,000,000 | 15,000,000 | |
| Toronto-Dominion Bank | 0.25 | 5-13-2022 | 13,000,000 | 13,000,000 | |
| Total Certificates of deposit (Cost $772,985,937) | 772,985,937 |
| Closed end municipal bond fund obligations: 1.18% | |||||
| Nuveen Floating Rate Income Fund Variable Rate Demand Preferred Shares Class A (110 shares) 0.21% 144Aø | 11,000,000 | 11,000,000 | |||
| Nuveen Short Duration Credit Opportunities Fund Taxable Fund Preferred Shares Series A (23,000 shares) 0.21% 144Aø | 23,000,000 | 23,000,000 | |||
| Total Closed end municipal bond fund obligations (Cost $34,000,000) | 34,000,000 |
| Commercial paper: 40.62% | |||||
| Asset-backed commercial paper: 26.90% | |||||
| Albion Capital Corporation LLC ☼ | 0.22 | 2-22-2022 | 30,086,000 | 30,082,139 | |
| Angelsea Funding LLC (U.S. OBFR +0.08%) 144A± | 0.15 | 5-9-2022 | 18,000,000 | 18,000,000 | |
| Angelsea Funding LLC 144A☼ | 0.20 | 2-1-2022 | 2,000,000 | 2,000,000 | |
| Atlantic Asset Securitization LLC 144A☼ | 0.17 | 2-17-2022 | 17,000,000 | 16,998,716 | |
| Bennington Sark Capital Company LLC 144A☼ | 0.08 | 2-1-2022 | 20,000,000 | 20,000,000 | |
| Bennington Sark Capital Company LLC 144A☼ | 0.15 | 2-11-2022 | 10,000,000 | 9,999,583 | |
| Chesham Finance Limited 144A☼ | 0.07 | 2-1-2022 | 45,000,000 | 45,000,000 | |
| Chesham Finance Limited 144A☼ | 0.13 | 2-1-2022 | 56,000,000 | 56,000,000 | |
| Concord Minutemen Capital Company 144A☼ | 0.15 | 2-23-2022 | 20,700,000 | 20,697,371 | |
| Glencove Funding DAC 144A☼ | 0.15 | 2-9-2022 | 18,000,000 | 17,999,400 | |
| Institutional Secured Funding LLC 144A☼ | 0.17 | 2-9-2022 | 20,000,000 | 19,999,244 | |
| Institutional Secured Funding LLC 144A☼ | 0.21 | 2-15-2022 | 14,000,000 | 13,998,857 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 11
Portfolio of investments—January 31, 2022
| Interest rate | Maturitydate | Principal | Value | ||
| Asset-backed commercial paper (continued) | |||||
| Ionic Capital II Trust ☼ | 0.18% | 2-16-2022 | $15,000,000 | $ 14,998,875 | |
| Ionic Capital II Trust ☼ | 0.22 | 3-8-2022 | 40,000,000 | 39,991,444 | |
| Ionic Capital III Trust ☼ | 0.17 | 2-9-2022 | 10,000,000 | 9,999,622 | |
| Ionic Capital III Trust ☼ | 0.18 | 2-15-2022 | 33,000,000 | 32,997,690 | |
| Ionic Capital III Trust ☼ | 0.24 | 2-4-2022 | 8,000,000 | 7,999,840 | |
| Ionic Capital III Trust ☼ | 0.27 | 2-24-2022 | 18,000,000 | 17,996,895 | |
| Legacy Capital Company 144A☼ | 0.22 | 2-16-2022 | 25,000,000 | 24,997,708 | |
| Lexington Parker Capital Company LLC 144A☼ | 0.17 | 2-17-2022 | 20,000,000 | 19,998,489 | |
| Lexington Parker Capital Company LLC 144A☼ | 0.20 | 2-3-2022 | 7,000,000 | 6,999,922 | |
| Liberty Funding LLC 144A☼ | 0.22 | 3-18-2022 | 35,000,000 | 34,990,375 | |
| LMA Americas LLC 144A☼ | 0.22 | 3-21-2022 | 14,000,000 | 13,995,893 | |
| LMA Americas LLC 144A☼ | 0.27 | 4-8-2022 | 25,000,000 | 24,987,625 | |
| Manhattan Asset Funding Company LLC 144A☼ | 0.13 | 2-7-2022 | 13,358,000 | 13,357,711 | |
| Mountcliff Funding LLC 144A☼ | 0.11 | 2-1-2022 | 40,000,000 | 40,000,000 | |
| Mountcliff Funding LLC 144A☼ | 0.20 | 2-14-2022 | 30,000,000 | 29,997,833 | |
| Mountcliff Funding LLC 144A☼ | 0.25 | 3-7-2022 | 9,575,000 | 9,572,739 | |
| Nieuw Amsterdam Receivables Corporation BV 144A☼ | 0.17 | 2-10-2022 | 34,000,000 | 33,998,556 | |
| Starbird Funding Corporation 144A☼ | 0.19 | 3-2-2022 | 5,000,000 | 4,999,235 | |
| Versailles CDS LLC (U.S. SOFR +0.11%) 144A± | 0.16 | 4-4-2022 | 25,000,000 | 25,000,000 | |
| Versailles CDS LLC (U.S. SOFR +0.16%) 144A± | 0.21 | 8-2-2022 | 25,000,000 | 25,000,000 | |
| Victory Receivables Corporation 144A☼ | 0.17 | 2-1-2022 | 28,000,000 | 28,000,000 | |
| Victory Receivables Corporation 144A☼ | 0.20 | 2-16-2022 | 22,602,000 | 22,600,117 | |
| Victory Receivables Corporation 144A☼ | 0.23 | 3-16-2022 | 8,650,000 | 8,647,624 | |
| Victory Receivables Corporation 144A☼ | 0.27 | 4-13-2022 | 12,416,000 | 12,409,388 | |
| 774,312,891 | |||||
| Financial company commercial paper: 12.40% | |||||
| Banco Santander SA 144A☼ | 0.17 | 3-8-2022 | 15,000,000 | 14,997,521 | |
| Banco Santander SA 144A☼ | 0.19 | 2-4-2022 | 25,000,000 | 24,999,604 | |
| Bank of Montreal ☼ | 0.20 | 4-14-2022 | 15,000,000 | 14,994,000 | |
| Bank of Nova Scotia 144A☼ | 0.20 | 3-24-2022 | 15,000,000 | 14,995,750 | |
| DBS Bank Limited 144A☼ | 0.23 | 3-8-2022 | 17,000,000 | 16,996,281 | |
| DBS Bank Limited 144A☼ | 0.28 | 6-2-2022 | 17,000,000 | 16,984,001 | |
| DBS Group Holdings Limited 144A☼ | 0.22 | 4-1-2022 | 10,000,000 | 9,996,394 | |
| Dexia Credit Local SA 144A☼ | 0.29 | 5-16-2022 | 7,000,000 | 6,994,136 | |
| Erste Finance LLC 144A☼ | 0.07 | 2-1-2022 | 80,000,000 | 80,000,000 | |
| Macquarie Group Limited 144A☼ | 0.26 | 3-4-2022 | 12,982,000 | 12,979,093 | |
| Mitsubishi UFJ Trust & Banking 144A☼ | 0.15 | 2-15-2022 | 18,000,000 | 17,998,950 | |
| Mitsubishi UFJ Trust & Banking 144A☼ | 0.24 | 3-1-2022 | 17,000,000 | 16,996,827 | |
| Santander plc ☼ | 0.16 | 3-16-2022 | 10,000,000 | 9,998,089 | |
| Suncorp Group Limited 144A☼ | 0.19 | 3-23-2022 | 5,000,000 | 4,998,681 | |
| Svenska Handelsbanken AB 144A☼ | 0.22 | 6-1-2022 | 20,000,000 | 19,985,333 | |
| Svenska Handelsbanken AB 144A☼ | 0.22 | 6-2-2022 | 7,000,000 | 6,994,824 | |
| Toronto-Dominion Bank 144A☼ | 0.16 | 4-22-2022 | 15,000,000 | 14,994,667 | |
| United Overseas Bank Limited 144A☼ | 0.19 | 3-9-2022 | 16,000,000 | 15,997,040 | |
| United Overseas Bank Limited 144A☼ | 0.19 | 3-11-2022 | 15,000,000 | 14,997,071 | |
| United Overseas Bank Limited 144A☼ | 0.22 | 4-11-2022 | 20,000,000 | 19,991,758 | |
| 356,890,020 | |||||
| Other commercial paper: 1.32% | |||||
| Alberta Province 144A☼ | 0.14 | 2-3-2022 | 8,000,000 | 7,999,938 |
The accompanying notes are an integral part of these financial statements.
12 | Retail Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturitydate | Principal | Value | ||
| Other commercial paper (continued) | |||||
| Alberta Province 144A☼ | 0.14% | 2-17-2022 | $15,000,000 | $ 14,999,067 | |
| Erste Abwicklungsanstalt 144A☼ | 0.10 | 2-11-2022 | 15,000,000 | 14,999,583 | |
| 37,998,588 | |||||
| Total Commercial paper (Cost $1,169,201,499) | 1,169,201,499 | ||||
| Municipal obligations: 26.48% | |||||
| Arizona: 1.66% | |||||
| Variable rate demand notes ø: 1.66% | |||||
| Taxable Municipal Funding Trust Various States Floaters Series 2021-004 (Health revenue, Barclays Bank plc LOC) 144A | 0.29 | 11-15-2054 | 5,150,000 | 5,150,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2021-MIZ9060TX (Tax revenue, Mizuho Capital Markets LLC LOC) 144A | 0.34 | 2-15-2041 | 42,548,337 | 42,548,337 | |
| 47,698,337 | |||||
| California: 5.11% | |||||
| Other municipal debt : 1.29% | |||||
| California Series B2 (GO revenue) | 0.15 | 3-3-2022 | 10,440,000 | 10,440,000 | |
| San Francisco CA City & County Public Utilities Commission (Water & sewer revenue) | 0.28 | 4-19-2022 | 26,637,000 | 26,637,000 | |
| 37,077,000 | |||||
| Variable rate demand notes ø: 3.82% | |||||
| Metropolitan Water District of Southern California Series A (Water & sewer revenue, Bank of America NA SPA) | 0.10 | 7-1-2042 | 27,000,000 | 27,000,000 | |
| Mizuho Floater Residual Certificates Series 2021 (Housing revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.18 | 4-15-2042 | 8,000,000 | 8,000,000 | |
| San Francisco CA City & County Certificate of Participation Series 2016-XFT901 (Miscellaneous revenue, Morgan Stanley Bank LIQ) 144A | 0.14 | 11-1-2041 | 18,000,000 | 18,000,000 | |
| Tender Option Bond Trust Receipts/Certificates Los Angeles Community College District Series 2016-TXG002 (GO revenue, Bank of America NA LIQ) 144A | 0.20 | 8-1-2049 | 15,700,000 | 15,700,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2019-MIZ9003 (Tax revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.31 | 3-1-2036 | 6,465,000 | 6,465,000 | |
| University of California Revenue Various Taxable Series Z-1 (Education revenue) | 0.08 | 7-1-2041 | 35,000,000 | 35,000,000 | |
| 110,165,000 | |||||
| Colorado: 2.10% | |||||
| Variable rate demand notes ø: 2.10% | |||||
| Colorado HFA MFHR Class II Series B (Housing revenue, FHLB SPA) | 0.12 | 5-1-2052 | 35,905,000 | 35,905,000 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 13
Portfolio of investments—January 31, 2022
| Interest rate | Maturitydate | Principal | Value | ||
| Variable rate demand notes ø(continued) | |||||
| Colorado HFA Single Family Mortgage Bonds Class II Series 2021-I (Housing revenue, GNMA Insured, Royal Bank of Canada SPA) | 0.08% | 11-1-2051 | $10,000,000 | $ 10,000,000 | |
| Colorado Southern Ute Indian Tribe Reservation Company Series 2007 (Miscellaneous revenue) 144A | 0.10 | 1-1-2027 | 14,490,000 | 14,490,000 | |
| 60,395,000 | |||||
| Georgia: 1.84% | |||||
| Variable rate demand notes ø: 1.84% | |||||
| Macon-Bibb County GA Industrial Authority Kumho Tire Georgia Incorporated Series 2015A (Industrial development revenue, Korea Development Bank LOC) | 0.17 | 12-1-2022 | 27,000,000 | 27,000,000 | |
| Macon-Bibb County GA Industrial Authority Kumho Tire Georgia Incorporated Series 2015B (Industrial development revenue, Korea Development Bank LOC) | 0.17 | 12-1-2022 | 26,000,000 | 26,000,000 | |
| 53,000,000 | |||||
| Illinois: 0.73% | |||||
| Variable rate demand notes ø: 0.73% | |||||
| Tender Option Bond Trust Receipts/Floater Certificates Series 2019-XF0779 (Tax revenue, BAM Insured, TD Bank NA LIQ) 144A | 0.11 | 1-1-2048 | 11,000,000 | 11,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XF2854 (Tax revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.10 | 6-15-2050 | 10,000,000 | 10,000,000 | |
| 21,000,000 | |||||
| Indiana: 0.66% | |||||
| Variable rate demand notes ø: 0.66% | |||||
| Indiana Finance Authority Stadium Project Series A-5 (Miscellaneous revenue, U.S. Bank NA SPA) | 0.11 | 2-1-2035 | 18,920,000 | 18,920,000 | |
| Kentucky: 0.47% | |||||
| Variable rate demand notes ø: 0.47% | |||||
| Kentucky Housing Corporation Series B (Housing revenue, Kentucky Housing Corporation SPA) | 0.11 | 7-1-2041 | 10,000,000 | 10,000,000 | |
| Kentucky Housing Corporation Series O (Housing revenue, Kentucky Housing Corporation SPA) | 0.11 | 1-1-2036 | 3,560,000 | 3,560,000 | |
| 13,560,000 | |||||
| Michigan: 0.32% | |||||
| Variable rate demand notes ø: 0.32% | |||||
| Michigan State Housing Development AMT Refunding Bond Series B (Housing revenue, Industrial & Commercial Bank of China Limited SPA) | 0.15 | 6-1-2038 | 9,185,000 | 9,185,000 |
The accompanying notes are an integral part of these financial statements.
14 | Retail Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturitydate | Principal | Value | ||
| Missouri: 0.50% | |||||
| Variable rate demand notes ø: 0.50% | |||||
| Bridgeton MO IDA Stolze Printing (Industrial development revenue, Carrollton Bank LOC) | 0.12% | 12-1-2047 | $ 2,050,000 | $ 2,050,000 | |
| Missouri HEFA Royal Bank of Canada Municipal Products Incorporated Trust Series C-16 (Health revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.11 | 9-1-2039 | 12,200,000 | 12,200,000 | |
| 14,250,000 | |||||
| Nevada: 0.52% | |||||
| Variable rate demand notes ø: 0.52% | |||||
| Mizuho Floater Residual Certificates Series 2021 (Housing revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.34 | 2-1-2058 | 15,000,000 | 15,000,000 | |
| New Hampshire: 1.68% | |||||
| Variable rate demand notes ø: 1.68% | |||||
| New Hampshire Business Finance Authority CJ Foods Manufacturing Beaumont Corporation Series A (Industrial development revenue, Kookmin Bank LOC) 144A | 0.17 | 10-1-2028 | 24,000,000 | 24,000,000 | |
| New Hampshire National Finance Authority Industrial Development Revenue Series A (Industrial development revenue, Kookmin Bank LOC) 144A | 0.17 | 7-1-2029 | 24,500,000 | 24,500,000 | |
| 48,500,000 | |||||
| New York: 5.18% | |||||
| Other municipal debt : 2.11% | |||||
| Long Island Power Authority Series 2015 GR-5A (Utilities revenue) | 0.12 | 2-10-2022 | 10,000,000 | 10,000,000 | |
| Long Island Power Authority Series 2015 GR-5A (Utilities revenue) | 0.22 | 3-2-2022 | 10,000,000 | 10,000,000 | |
| Metropolitan Transportation Authority Grant Anticipation Notes Series 2021A (Miscellaneous revenue) | 0.78 | 11-15-2022 | 12,000,000 | 12,000,000 | |
| New York Power Authority Series 3B (Utilities revenue) ☼ | 0.18 | 3-16-2022 | 16,000,000 | 15,996,560 | |
| Port Authority New York & New Jersey Series C (Airport revenue) | 0.23 | 3-1-2022 | 3,835,000 | 3,835,000 | |
| Port Authority New York & New Jersey Series C (Airport revenue) | 0.25 | 4-21-2022 | 9,000,000 | 9,000,000 | |
| 60,831,560 | |||||
| Variable rate demand notes ø: 3.07% | |||||
| Mizuho Floater Residual Certificates Series 2021 (Housing revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.49 | 9-1-2026 | 15,000,000 | 15,000,000 | |
| New York HFA Affordable Housing (Housing revenue, TD Bank NA SPA) | 0.09 | 11-1-2055 | 19,290,000 | 19,290,000 | |
| Taxable Municipal Funding Trust Various States Floaters Series 2021-003 (GO revenue, Barclays Bank plc LOC) 144A | 0.15 | 5-1-2041 | 14,135,000 | 14,135,000 | |
| Taxable Municipal Funding Trust Various States Floaters Series 2021-003 (GO revenue, Barclays Bank plc LOC) 144A | 0.29 | 5-15-2056 | 23,110,000 | 23,110,000 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 15
Portfolio of investments—January 31, 2022
| Interest rate | Maturitydate | Principal | Value | ||
| Variable rate demand notes ø(continued) | |||||
| Tender Option Bond Trust Receipts/Certificates Series 2021-TPG020 (Tax revenue, Bank of America NA LIQ) 144A | 0.39% | 1-1-2023 | $ 5,000,000 | $ 5,000,000 | |
| Triborough Bridge & Tunnel Authority New York Refunding Bond Series 2018E (Transportation revenue, Bank of America NA LOC) | 0.10 | 11-15-2032 | 11,890,000 | 11,890,000 | |
| 88,425,000 | |||||
| Other: 3.12% | |||||
| Variable rate demand notes ø: 3.12% | |||||
| JPMorgan Chase Puttable Tax-Exempt Receipts/Derivative Inverse Tax-Exempt Receipts & Custodial Receipts Trust Series 5039 (Miscellaneous revenue) | 0.21 | 11-16-2022 | 37,000,000 | 37,000,000 | |
| Taxable Municipal Funding Trust Various States Floaters Series 2019-019 (Health revenue, Barclays Bank plc LOC) 144A | 0.29 | 12-1-2030 | 555,000 | 555,000 | |
| Taxable Municipal Funding Trust Various States Floaters Series 2020-012 (Health revenue, Barclays Bank plc LOC) 144A | 0.15 | 9-1-2030 | 8,455,000 | 8,455,000 | |
| Taxable Municipal Funding Trust Various States Floaters Series 2020-11 (Health revenue, Barclays Bank plc LOC) 144A | 0.29 | 9-1-2030 | 43,770,000 | 43,770,000 | |
| 89,780,000 | |||||
| South Carolina: 0.24% | |||||
| Variable rate demand notes ø: 0.24% | |||||
| South Carolina Public Service Authority (Utilities revenue, Citibank NA LIQ) 144A | 0.16 | 1-1-2050 | 6,900,000 | 6,900,000 | |
| Texas: 2.07% | |||||
| Other municipal debt : 1.46% | |||||
| San Antonio TX Electric & Gas Series A (Utilities revenue) | 0.10 | 2-16-2022 | 25,000,000 | 24,999,013 | |
| San Antonio TX Electric & Gas Series A (Utilities revenue) | 0.15 | 2-17-2022 | 17,000,000 | 17,000,000 | |
| 41,999,013 | |||||
| Variable rate demand notes ø: 0.61% | |||||
| Harris County TX Cultural Education Facilities Finance Corporation Texas Children's Hospital Series 2021C (Health revenue, Bank of America NA SPA) | 0.12 | 10-1-2041 | 17,500,000 | 17,500,000 | |
| Wisconsin: 0.28% | |||||
| Variable rate demand notes ø: 0.28% | |||||
| University of Wisconsin Hospitals and Clinics Authority Revenue Various Refunding Bond Series C (Health revenue, BMO Harris Bank NA SPA) | 0.12 | 4-1-2048 | 8,200,000 | 8,200,000 | |
| Total Municipal obligations (Cost $762,385,910) | 762,385,910 | ||||
| Other instruments: 4.38% | |||||
| 17th Street Rentals LLC §øø | 0.12 | 6-1-2025 | 18,200,000 | 18,200,000 | |
| 2020 Sheu Family Exempt Trust §øø | 0.12 | 7-1-2041 | 9,175,000 | 9,175,000 | |
| AARP §øø | 0.10 | 5-1-2031 | 14,000,000 | 14,000,000 | |
| Altoona Blair County Development Corporation 144A§øø | 0.15 | 4-1-2035 | 5,850,000 | 5,850,000 | |
| Altoona Blair County Development Corporation 144A§øø | 0.15 | 9-1-2038 | 3,000,000 | 3,000,000 |
The accompanying notes are an integral part of these financial statements.
16 | Retail Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturitydate | Principal | Value | ||
| Other instruments (continued) | |||||
| Fortenbery Children 2017 Irrevocable Trust UTA §øø | 0.12% | 4-1-2026 | $ 9,675,000 | $ 9,675,000 | |
| Keep Memory Alive §øø | 0.15 | 5-1-2037 | 2,760,000 | 2,760,000 | |
| L Ward Huntley Irrevocable Life Insurance Trust §øø | 0.11 | 4-1-2071 | 7,350,000 | 7,350,000 | |
| New Grammercy LLC §øø | 0.12 | 2-1-2061 | 9,800,000 | 9,800,000 | |
| Rock Hill SI LLC §øø | 0.12 | 6-1-2061 | 12,700,000 | 12,700,000 | |
| Royal Bank of Canada §øø | 0.86 | 2-1-2022 | 15,000,000 | 15,000,000 | |
| Solis Seattle LLC §øø | 0.12 | 2-1-2061 | 16,000,000 | 16,000,000 | |
| Southside Brookshore §øø | 0.12 | 9-1-2059 | 2,640,000 | 2,640,000 | |
| Total Other instruments (Cost $126,150,000) | 126,150,000 | ||||
| Other notes: 0.90% | |||||
| Corporate bonds and notes: 0.90% | |||||
| Cellmark Incorporated Taxable Notes Series 2018A §øø | 0.12 | 6-1-2038 | 16,000,000 | 16,000,000 | |
| Jets Stadium Development LLC Series A-4B 144A§øø | 0.17 | 4-1-2047 | 9,940,000 | 9,940,000 | |
| Total Other notes (Cost $25,940,000) | 25,940,000 | ||||
| Repurchase agreements^^: 0.67% | |||||
| TD Securities USA Incorporated, dated 1-31-2022, maturity value $19,250,027 | 0.05 | 2-1-2022 | 19,250,000 | 19,250,000 | |
| Total Repurchase agreements (Cost $19,250,000) | 19,250,000 | ||||
| Total investments in securities (Cost $2,909,913,346) | 101.08% | 2,909,913,346 | |||
| Other assets and liabilities, net | (1.08) | (30,966,300) | |||
| Total net assets | 100.00% | $2,878,947,046 |
| 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. |
| ± | Variable rate investment. The rate shown is the rate in effect at period end. |
| ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
| § | The security is subject to a demand feature which reduces the effective maturity. |
| øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
| ^^ | Collateralized by U.S. government securities, 1.50% to 8.00%, 8-1-2022 to 2-1-2052, fair value including accrued interest is $19,827,500. |
| ☼ | Zero coupon security. The rate represents the current yield to maturity. |
| Abbreviations: | |
| AMT | Alternative minimum tax |
| BAM | Build America Mutual Assurance Company |
| FHLB | Federal Home Loan Bank |
| GNMA | Government National Mortgage Association |
| GO | General obligation |
| HEFA | Health & Educational Facilities Authority |
| HFA | Housing Finance Authority |
| IDA | Industrial Development Authority |
| LIQ | Liquidity agreement |
| LOC | Letter of credit |
| MFHR | Multifamily housing revenue |
| OBFR | Overnight Bank Funding Rate |
| SOFR | Secured Overnight Financing Rate |
| SPA | Standby purchase agreement |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 17
Statement of assets and liabilities—January 31, 2022
| Assets | |
Investments in unaffiliated securities, at amortized cost | $ 2,909,913,346 |
Cash | 16,403 |
Receivable for Fund shares sold | 1,662,368 |
Receivable for investments sold | 960,000 |
Receivable for interest | 404,527 |
Receivable from manager | 83,652 |
Prepaid expenses and other assets | 370,917 |
Total assets | 2,913,411,213 |
| Liabilities | |
Payable for investments purchased | 24,987,625 |
Payable for Fund shares redeemed | 9,118,202 |
Administration fees payable | 248,781 |
Dividends payable | 15,206 |
Distribution fee payable | 808 |
Accrued expenses and other liabilities | 93,545 |
Total liabilities | 34,464,167 |
Total net assets | $2,878,947,046 |
| Net assets consist of | |
Paid-in capital | $ 2,879,748,077 |
Total distributable loss | (801,031) |
Total net assets | $2,878,947,046 |
| Computation of net asset value per share | |
Net assets – Class A | $ 434,891,787 |
Shares outstanding – Class A1 | 434,920,884 |
Net asset value per share – Class A | $1.00 |
Net assets – Class C | $ 1,960,111 |
Shares outstanding – Class C1 | 1,960,241 |
Net asset value per share – Class C | $1.00 |
Net assets – Premier Class | $ 2,431,266,951 |
Shares outstanding – Premier Class1 | 2,431,446,461 |
Net asset value per share – Premier Class | $1.00 |
Net assets – Service Class | $ 10,828,197 |
Shares outstanding – Service Class1 | 10,828,910 |
Net asset value per share – Service Class | $1.00 |
| 1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
18 | Retail Money Market Funds
Statement of operations—year ended January 31, 2022
| Investment income | |
Interest | $ 5,973,418 |
| Expenses | |
Management fee | 7,430,884 |
| Administration fees | |
Class A | 1,001,137 |
Class C | 4,788 |
Premier Class | 2,597,523 |
Service Class | 13,560 |
| Shareholder servicing fees | |
Class A | 1,137,656 |
Class C | 5,441 |
Service Class | 27,717 |
| Distribution fee | |
Class C | 16,322 |
Custody and accounting fees | 184,118 |
Professional fees | 62,383 |
Registration fees | 628,206 |
Shareholder report expenses | 102,213 |
Trustees’ fees and expenses | 19,272 |
Other fees and expenses | 63,231 |
Total expenses | 13,294,451 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level | (6,677,538) |
Class A | (1,686,119) |
Class C | (24,332) |
Service Class | (29,979) |
Net expenses | 4,876,483 |
Net investment income | 1,096,935 |
Net realized gains on investments | 13,887 |
Net increase in net assets resulting from operations | $ 1,110,822 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 19
Statement of changes in net assets
| Year ended January 31, 2022 | Year ended January 31, 2021 | |||
| Operations | ||||
Net investment income | $ 1,096,935 | $ 17,417,772 | ||
Payment from affiliate | 0 | 1,222 | ||
Net realized gains (losses) on investments | 13,887 | (563,831) | ||
Net increase in net assets resulting from operations | 1,110,822 | 16,855,163 | ||
| Distributions to shareholders from | ||||
| Net investment income and net realized gains | ||||
Class A | (45,509) | (1,268,127) | ||
Class C | (218) | (2,802) | ||
Premier Class | (1,050,078) | (16,125,602) | ||
Service Class | (1,130) | (37,293) | ||
Total distributions to shareholders | (1,096,935) | (17,433,824) | ||
| Capital share transactions | Shares | Shares | ||
| Proceeds from shares sold | ||||
Class A | 116,628,006 | 116,628,006 | 221,976,995 | 221,976,995 |
Class C | 1,408,108 | 1,408,108 | 5,242,042 | 5,242,042 |
Premier Class | 1,050,830,115 | 1,050,830,115 | 7,562,687,659 | 7,562,687,659 |
Service Class | 946,410 | 946,410 | 1,788,741 | 1,788,741 |
| 1,169,812,639 | 7,791,695,437 | |||
| Reinvestment of distributions | ||||
Class A | 37,827 | 37,827 | 1,277,953 | 1,277,953 |
Class C | 203 | 203 | 2,835 | 2,835 |
Premier Class | 1,028,386 | 1,028,386 | 16,201,117 | 16,201,117 |
Service Class | 994 | 994 | 37,293 | 37,293 |
| 1,067,410 | 17,519,198 | |||
| Payment for shares redeemed | ||||
Class A | (148,324,202) | (148,324,202) | (231,789,213) | (231,789,213) |
Class C | (2,303,589) | (2,303,589) | (5,542,212) | (5,542,212) |
Premier Class | (3,073,049,703) | (3,073,049,703) | (5,309,546,817) | (5,309,546,817) |
Service Class | (2,081,671) | (2,081,671) | (1,898,691) | (1,898,691) |
| (3,225,759,165) | (5,548,776,933) | |||
Net increase (decrease) in net assets resulting from capital share transactions | (2,054,879,116) | 2,260,437,702 | ||
Total increase (decrease) in net assets | (2,054,865,229) | 2,259,859,041 | ||
| Net assets | ||||
Beginning of period | 4,933,812,275 | 2,673,953,234 | ||
End of period | $ 2,878,947,046 | $ 4,933,812,275 | ||
The accompanying notes are an integral part of these financial statements.
20 | Retail Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Class A | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
Net realized gains (losses) on investments | 0.00 1 | (0.00) 2 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net realized gains | 0.00 | (0.00) 1 | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.27% | 1.76% | 1.61% | 0.64% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.70% | 0.68% | 0.70% | 0.76% | 0.85% |
Net expenses | 0.15% * | 0.40% * | 0.60% | 0.62% | 0.65% |
Net investment income | 0.01% | 0.27% | 1.74% | 1.60% | 0.63% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $434,892 | $466,559 | $475,180 | $474,040 | $462,416 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.45% |
| Year ended January 31, 2021 | 0.18% |
| 1 | Amount is less than $0.005. |
| 2 | Amount is more than $(0.005) |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 21
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Class C | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.01 | 0.01 | 0.00 1 |
Payment from affiliate | 0.00 | 0.00 1 | 0.00 | 0.00 | 0.00 |
Net realized gains (losses) on investments | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.01 | 0.01 | 0.00 1 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.01) | (0.01) | (0.00) 1 |
Net realized gains | 0.00 | (0.00) 1 | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.01) | (0.01) | (0.00) 1 |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.08% 2 | 1.00% | 0.84% | 0.04% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 1.45% | 1.43% | 1.45% | 1.51% | 1.60% |
Net expenses | 0.15% * | 0.59% * | 1.35% | 1.37% | 1.23% |
Net investment income | 0.01% | 0.07% | 1.03% | 0.87% | 0.03% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $1,960 | $2,855 | $3,153 | $8,229 | $7,763 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 1.20% |
| Year ended January 31, 2021 | 0.76% |
| 1 | Amount is less than $0.005. |
| 2 | During the year ended January 31, 2021, the Fund received a payment from an affiliate which had a 0.04% impact on the total return. See Note 4 in the Notes to Financial Statements for additional information. |
The accompanying notes are an integral part of these financial statements.
22 | Retail Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Premier Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.01 | 0.02 | 0.02 | 0.01 |
Net realized gains (losses) on investments | 0.00 1 | (0.00) 2 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.01 | 0.02 | 0.02 | 0.01 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.01) | (0.02) | (0.02) | (0.01) |
Net realized gains | 0.00 | (0.00) 1 | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders | (0.00) 1 | (0.01) 1 | (0.02) | (0.02) | (0.01) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.03% | 0.54% | 2.20% | 2.03% | 1.09% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.31% | 0.29% | 0.30% | 0.33% | 0.45% |
Net expenses | 0.13% | 0.13% 3 | 0.15% | 0.20% | 0.20% |
Net investment income | 0.03% | 0.41% | 1.99% | 2.26% | 1.08% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $2,431,267 | $4,452,436 | $2,183,582 | $295,962 | $101 |
| 1 | Amount is less than $0.005. |
| 2 | Amount is more than $(0.005) |
| 3 | During the year ended January 31, 2021, class-level expenses were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would have been 0.07% higher. |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 23
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Service Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
Net realized gains (losses) on investments | 0.00 1 | (0.00) 2 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net realized gains | 0.00 | (0.00) 1 | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.31% | 1.86% | 1.72% | 0.79% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.59% | 0.58% | 0.60% | 0.66% | 0.74% |
Net expenses | 0.15% * | 0.36% * | 0.50% | 0.50% | 0.50% |
Net investment income | 0.01% | 0.31% | 1.84% | 1.71% | 0.74% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $10,828 | $11,963 | $12,038 | $11,884 | $11,910 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.35% |
| Year ended January 31, 2021 | 0.12% |
| 1 | Amount is less than $0.005. |
| 2 | Amount is more than $(0.005) |
The accompanying notes are an integral part of these financial statements.
24 | Retail Money Market Funds
Notes to financial statements
1. ORGANIZATION
Allspring Funds Trust (the "Trust"), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Money Market Fund (the "Fund") which is a diversified series of the Trust.
Consistent with Rule 2a-7, the Board of Trustees of the Fund is permitted to impose a liquidity fee on redemptions from the Fund or a redemption gate (i.e., a suspension of the right to redeem) in the event that the Fund’s liquidity falls below required minimums because of market conditions or other factors. If the Fund’s weekly liquid assets (as defined in Rule 2a-7(34)) fall below 30% of the Fund’s total assets, the Board of Trustees is permitted, but not required, to: (i) impose a liquidity fee of no more than 2% of the amount redeemed; and/or (ii) impose a redemption gate. If the Fund’s weekly liquid assets fall below 10% of the Fund’s total assets, the Fund must impose, generally as of the beginning of the next business day, a liquidity fee of 1% of the amount redeemed unless the Board of Trustees determines that such a fee is not in the best interest of the Fund or determines that a lower or higher fee (subject to the 2% limit) is in the best interest of the Fund. Liquidity fees reduce the amount a shareholder receives upon redemption of its shares. The Fund retains any liquidity fees for the benefit of remaining shareholders. The Board of Trustees did not impose any liquidity fees and/or redemption gates during the year ended January 31, 2022.
Effective on November 1, 2021, the sale transaction of Wells Fargo Asset Management ("WFAM") by Wells Fargo & Company to GTCR LLC and Reverence Capital Partners, L.P. was closed. In connection with the closing of the transaction, WFAM became known as Allspring Global Investments (“Allspring”) and various entities that provided services to the Fund changed their names to "Allspring", including Allspring Funds Management, LLC, the investment manager to the Fund, Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited, both registered investment advisers providing subadvisory services to certain funds, and Allspring Funds Distributor, LLC, the Fund's principal underwriter. Consummation of the transaction resulted in a new investment management agreement and subadvisory agreement which became effective on November 1, 2021.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
As permitted under Rule 2a-7 of the 1940 Act, portfolio securities are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Allspring Global Investments Pricing Committee at Allspring Funds Management, LLC ("Allspring Funds Management"). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Allspring Global Investments Pricing Committee which may include items for ratification.
Repurchase agreements
The Fund may invest in repurchase agreements and may participate in pooled repurchase agreement transactions with other funds advised by Allspring Funds Management. Repurchase agreements are agreements where the seller of a security to the Fund agrees to repurchase that security from the Fund at a mutually agreed upon time and price. The repurchase agreements must be fully collateralized based on values that are marked-to-market daily. The collateral may be held by an agent bank under a tri-party agreement. It is the custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain market value equal to or greater than the resale price (including accrued interest). The repurchase agreements are collateralized by securities issued or guaranteed by the U.S. Government, its agencies or
Retail Money Market Funds | 25
Notes to financial statements
instrumentalities. There could be potential loss to the Fund in the event that the Fund is delayed or prevented from exercising its rights to dispose of the collateral, including the risk of a possible decline in the value of the underlying obligations during the period in which the Fund seeks to assert its rights.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund's fiscal year end. Therefore, a portion of the Fund's distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund's tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of January 31, 2022, the cost of investments for federal income tax purposes is substantially the same as for financial reporting purposes.
Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At January 31, 2022, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:
| Paid-in capital | Total distributable loss |
| $(4,602) | $4,602 |
As of January 31, 2022, the Fund had capital loss carryforwards which consisted of $551,901 in short-term capital losses.
Class allocations
The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
26 | Retail Money Market Funds
Notes to financial statements
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
| ■ | Level 1 – quoted prices in active markets for identical securities |
| ■ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
| ■ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of January 31, 2022:
| Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
| Assets | ||||
| Investments in: | ||||
| Certificates of deposit | $0 | $ 772,985,937 | $0 | $ 772,985,937 |
| Closed end municipal bond fund obligations | 0 | 34,000,000 | 0 | 34,000,000 |
| Commercial paper | 0 | 1,169,201,499 | 0 | 1,169,201,499 |
| Municipal obligations | 0 | 762,385,910 | 0 | 762,385,910 |
| Other instruments | 0 | 126,150,000 | 0 | 126,150,000 |
| Other notes | 0 | 25,940,000 | 0 | 25,940,000 |
| Repurchase agreements | 0 | 19,250,000 | 0 | 19,250,000 |
| Total assets | $0 | $2,909,913,346 | $0 | $2,909,913,346 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended January 31, 2022, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Allspring Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Allspring Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
| Average daily net assets | Management fee |
| First $5 billion | 0.200% |
| Next $5 billion | 0.190 |
| Over $10 billion | 0.180 |
For the year ended January 31, 2022, the management fee was equivalent to an annual rate of 0.20% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring
Retail Money Market Funds | 27
Notes to financial statements
Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase. Prior to November 1, 2021, Wells Capital Management Singapore, a former affiliate, was also a subadviser to the Fund and was entitled to receive a fee at an annual rate which started at 0.0025% and declined to 0.0005% as the average daily net assets of the Fund increased.
Administration fees
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
| Class-level administration fee | |
| Class A | 0.22% |
| Class C | 0.22 |
| Premier Class | 0.08 |
| Service Class | 0.12 |
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through May 31, 2022 to waive fees and/or reimburse expenses to the extent necessary to cap expenses. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. In addition to the contractual waivers and/or reimbursements, Allspring Funds Management also voluntarily waived certain class-level expenses during the year ended January 31, 2022 in order to maintain a positive yield. These voluntary class-level waivers may be discontinued at any time. The contractual expense caps are as follows:
| Expense ratio caps | |
| Class A | 0.60% |
| Class C | 1.35 |
| Premier Class | 0.20 |
| Service Class | 0.50 |
Distribution fee
The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC ("Allspring Funds Distributor"), an affiliate of Allspring Funds Management, the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the contingent deferred sales charges from redemptions of Class C shares. No contingent deferred sales charges were incurred by Class C shares for the year ended January 31, 2022.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Service Class of the Fund are charged a fee at an annual rate of 0.25% of the respective average daily net assets of each class. A portion of these total shareholder servicing fees were paid to affiliates, and to certain entities that were affiliates of the Fund until November 1, 2021.
28 | Retail Money Market Funds
Notes to financial statements
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices.
Other transactions
On August 14, 2020, Class C of the Fund was reimbursed by Allspring Funds Management in the amount of $1,222. The reimbursement was made in connection with resolving certain fee reimbursements.
5. DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid was $1,096,935 and $17,433,824 of ordinary income for the years ended January 31, 2022 and January 31, 2021, respectively.
As of January 31, 2022, distributable earnings on a tax basis consisted of $551,901 in capital loss carryover.
6. INDEMNIFICATION
Under the Fund's organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
7. CORONAVIRUS (COVID-19) PANDEMIC
On March 11, 2020, the World Health Organization announced that it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general. There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial markets.
Retail Money Market Funds | 29
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring Money Market Fund (formerly, Wells Fargo Money Market Fund) (the Fund), one of the funds constituting Allspring Funds Trust (formerly, Wells Fargo Funds Trust), including the portfolio of investments, as of January 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of January 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of January 31, 2022, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
March 30, 2022
30 | Retail Money Market Funds
Other information (unaudited)
TAX INFORMATION
For the fiscal year ended January 31, 2022, $756,026 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.
For corporate shareholders, pursuant to Section 163(j) of the Internal Revenue Code, 100% of ordinary income dividends qualify as interest dividends for the fiscal year ended January 31, 2022.
PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
SPECIAL MEETING OF SHAREHOLDERS
On November 24, 2021, a Special Meeting of Shareholders for the Fund was held to consider the following proposals. The results of the proposals are indicated below.
Proposal 1 – To consider and approve a new investment management agreement with Wells Fargo Funds Management, LLC*.
| Shares voted “For” | 1,698,918,179 |
| Shares voted “Against” | 140,003,926 |
| Shares voted “Abstain” | 169,666,931 |
Proposal 2 – To consider and approve a new subadvisory agreement with Wells Capital Management, LLC**.
| Shares voted “For” | 1,681,732,977 |
| Shares voted “Against” | 156,025,933 |
| Shares voted “Abstain” | 170,830,126 |
Proposal 3 – To approve the use of a "multi-manager" structure whereby Wells Fargo Funds Management, LLC* would be able, subject to Board approval, to select sub-advisers and enter into or amend subadvisory agreements with them, without obtaining shareholder approval.
| Shares voted “For” | 1,632,774,001 |
| Shares voted “Against” | 200,359,533 |
| Shares voted “Abstain” | 175,455,502 |
* Effective November 1, 2021, known as Allspring Funds Management, LLC.
** Effective November 1, 2021, known as Allspring Global Investments, LLC.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at allspringglobal.com.
Retail Money Market Funds | 31
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Allspring family of funds, which consists of 139 mutual funds comprising the Allspring Funds Trust, Allspring Variable Trust, Allspring Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information1. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
| Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
| William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A |
| Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A |
| Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chair, since 2019 | Retired. Chairman of the Board of CIGNA Corporation from 2009 to 2021, and Director from 2005 to 2008. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Fellowship of Christian Athletes. Mr. Harris is a certified public accountant (inactive status). | N/A |
| David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business (Emeritus), Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A |
32 | Retail Money Market Funds
Other information (unaudited)
| Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
| Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor since 1993, Wharton School of the University of Pennsylvania. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously taught at Cornell University from 1978 to 1993. | N/A |
| Timothy J. Penny (Born 1951) | Trustee, since 1996; Chair, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A |
| James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A |
| Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019. Interim President of the McKnight Foundation from January to September 2020. McKnight Foundation Consultant, November 2020 to February 2021. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Consultant (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Retail Money Market Funds | 33
Other information (unaudited)
Officers2
| Name and year of birth | Position held and length of service | Principal occupations during past five years or longer |
| Andrew Owen (Born 1960) | President, since 2017 | President, Chief Executive Officer and Director of Allspring Funds Management, LLC since 2017 and co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, since 2019. Prior thereto, Head of Affiliated Managers, Allspring Global Investments, from 2014 to 2019 and Executive Vice President responsible for marketing, investments and product development for Allspring Funds Management, LLC, from 2009 to 2014. In addition, Mr. Owen was an Executive Vice President of Wells Fargo & Company from 2014 to 2021. |
| Jeremy DePalma (Born 1974) | Treasurer, since 2012 (for certain funds in the Fund Complex); since 2021 (for the remaining funds in the Fund Complex) | Senior Vice President of Allspring Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration. |
| Kate McKinley (Born 1977) | Chief Legal Officer, since 2021 | Chief Legal Officer of Allspring Global Investments since 2021. Prior thereto, held various roles at State Street Global Advisors beginning in 2010, including serving as Senior Vice President and General Counsel from 2019 to 2021, and Chief Operating Officer of the Institutional Client Group from 2016 - 2019. Prior to working at State Street Global Advisors served as Assistant General Counsel for Bank of America Corporation from 2005 to 2010 and as an Associate at WilmerHale from 2002 to 2005. |
| Christopher Baker (Born 1976) | Chief Compliance Officer, since 2022 | Global Chief Compliance Officer for Allspring Global Investments since 2022. Prior thereto, Chief Compliance Officer for State Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015 Vice President, Global Head of Investment and Marketing Compliance for State Street Global Advisors. |
| Matthew Prasse (Born 1983) | Secretary, since 2021 | Senior Counsel of the Allspring Legal Department since 2021. Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021. Previously, Counsel for Barings LLC from 2015 to 2018. Prior to joining Barings, Associate at Morgan, Lewis & Bockius LLP from 2008 to 2015. |
1 The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at allspringglobal.com.
2 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to 2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
34 | Retail Money Market Funds
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund's website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2022 Allspring Global Investments Holdings, LLC. All rights reserved.
PAR-0222-00683 03-22
A306/AR306 01-22
A306/AR306 01-22
Annual Report
January 31, 2022
Institutional Money Market Funds
| ■ | Allspring Municipal Cash Management Money Market Fund |
Contents
| 2 | |
| 6 | |
| 11 | |
| 12 | |
| Financial statements | |
| 21 | |
| 22 | |
| 23 | |
| 24 | |
| 27 | |
| 32 | |
| 33 |
The views expressed and any forward-looking statements are as of January 31, 2022, unless otherwise noted, and are those of the Fund's portfolio managers and/or Allspring Global Investments. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Allspring Global Investments disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.
Institutional Money Market Funds | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Municipal Cash Management Money Market Fund for the 12-month period that ended January 31, 2022. Global stocks yielded mixed results as the global economy continued to emerge from the haze of COVID-19. Tailwinds were provided by global stimulus programs, a rapid vaccination rollout, and recovering consumer and corporate sentiment, only to be dampened by persistent inflation. Bonds also saw mixed performance during the period.
For the 12-month period, equities had mixed returns as policymakers continued to fight the effects of COVID-19. U.S. stocks led both non-U.S. developed market equities and emerging market stocks. Returns by fixed-income securities were also a mix of positive and negative returns. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 23.29%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 3.63%, while the MSCI EM Index (Net) (USD)3 had weaker performance with a -7.23% loss. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -2.97%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned -7.92%, the Bloomberg Municipal Bond Index6 lost -1.89%, and the ICE BofA U.S. High Yield Index7 returned 2.08%.
Efforts to contain COVID-19 drove market performance.
February 2021 saw major domestic equity indexes driven higher on the hope of a new stimulus bill, improving COVID-19 vaccination numbers, and the gradual reopening of the economy. Most S&P 500 companies reported better-than-expected earnings, with positive surprises coming from the financials, information technology, health care, and materials sectors. Japan saw its economy strengthen as a result of strong export numbers. Meanwhile, crude oil prices continued their climb, rising more than 25% for the year. Domestic government bonds experienced a sharp sell-off in late February as markets priced in a more robust economic recovery and higher future growth and inflation expectations.
The passage of the massive domestic stimulus bill highlighted March activity, leading to increased forecasts for U.S. growth in 2021. Domestic employment surged as COVID-19 vaccinations and an increasingly open economy spurred hiring. A majority of U.S. small companies reported they were operating at pre-pandemic capacity or higher. Value stocks continued their outperformance of growth stocks in the month, continuing the trend that started in late 2020. Meanwhile, most major developed global equity indexes were up month to date on the back of rising optimism regarding the outlook for global growth. While the U.S. and the U.K. have been the most successful in terms of the vaccine rollout, even in markets where the vaccine has lagged, such as in the eurozone and Japan, equity indexes in many of those countries have also been in positive territory for the year through March 2021.
| 1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index. |
| 2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
| 3 | The MSCI Emerging Markets (EM) Index (Net) (USD) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
| 4 | The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.-dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
| 5 | The Bloomberg Global Aggregate ex-USD Index (unhedged) is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
| 6 | The Bloomberg Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index. |
| 7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2022. ICE Data Indices, LLC. All rights reserved. |
2 | Institutional Money Market Funds
Letter to shareholders (unaudited)
Equity markets produced another strong showing in April. Domestically, the continued reopening of the economy had a strong impact on positive equity performance, as people started leaving their households and jobless claims continued to fall. Domestic corporate bonds performed well and the U.S. dollar weakened. Meanwhile, the U.S. government continued to seek to invest in the recovery, this time by outlining a package of over $2 trillion to improve infrastructure. The primary headwind in April was inflation, as investors tried to determine the breadth and longevity of recent price increases. Developed Europe was supported by a meaningful increase in the pace of vaccinations. Unfortunately many emerging market countries were not as successful. India in particular saw COVID-19 cases surge, serving as an example of the need to get vaccinations rolled out to less developed nations.
Vaccine rollouts continued in May, leading to loosened restrictions globally. As a result, equity markets in general saw a minor increase in returns. Concerns that the continued economic rebound could result in inflation increases becoming more than transitory were supported by the higher input costs businesses were experiencing. Meanwhile, those inflation concerns were tempered by the U.S. Federal Reserve (Fed), which stayed steady on its view of the economy and eased fears of a sudden and substantial policy change. Positive performance in the emerging market equity space was supported this month by steady consumer demand and strong commodity prices. Fixed-income markets were also slightly positive for the month, driven by inflation uncertainty and a softer U.S. dollar.
June witnessed the S&P 500 Index reach a new all-time high. 2021 economic growth and inflation forecasts were revised higher to reflect a strong economic recovery and some supply and demand imbalances. Late June saw a deal reached on a U.S. infrastructure package of approximately $1 trillion for road, bridge, and broadband network upgrades over the next eight years. The Fed’s June meeting yielded no change to policy, but its projections pointed to a possible interest rate rise in 2023. This, combined with a rebound in economic activity and investors searching for yield, led to U.S. Treasury yields being down for the month. Many European and Asian countries saw vaccination momentum increase, while the U.K. dealt with a rise in COVID-19 infections, specifically the Delta variant. Meanwhile, crude oil jumped over 10% in June on the back of the pickup in global economic activity and the Organization of the Petroleum Exporting Countries’ (OPEC) slow pace of supply growth.
July began the month seeing vaccinations making progress, as several major developed countries eased restrictions, only to be threatened again by the spread of COVID-19’s Delta variant. Inflation continued to climb, aided by the continued supply bottleneck in the face of high demand. As it pertains to the equity area of the market, U.S. equities led the way in positive return territory followed by international developed markets. In contrast, emerging markets were well in negative territory for the month, hindered by China’s plans for new regulations on a number of sectors, specifically education and technology. The U.S. 10-year Treasury bond yield continued to decline as strong demand swallowed up supply. After hitting a multiyear high earlier in the month, oil prices leveled off following an agreement by OPEC to raise oil production starting in August.
The Delta variant of COVID-19 produced outbreaks globally in August, increasing the potential for increased market volatility and bringing into question the ongoing economic recovery. Domestically, the U.S. economy continued to stay strong in the face of the Delta variant, continued inflationary pressures, and worries over Hurricane Ida. Emerging market equities experienced elevated volatility, largely influenced by China’s regulatory stance. Emerging market equities started the month with poor performance but rebounded to end the month in positive territory. Municipal debt experienced its first monthly performance drop since February 2021, slowing a rally that made it one of the best-performing sectors of the bond market. In the commodity segment of the market, crude oil fell sharply during the month on the back of dampened expectations as a result of the Delta variant but was still a leading asset-class performer for the year through August 2021.
Global markets suffered their broadest retreat in a year during September, with the exception of commodities. Concerns over inflation and the interest rate outlook depressed investor confidence and hurt performance. Emerging markets declined on concerns over the continued supply chain disruptions and worries over higher energy and food prices. Meanwhile, the Fed indicated it would slow the pace of asset purchases in the near future (pointing towards November). All eyes domestically were fixed on the raising of the debt ceiling, the 2022 budget plan, and the ongoing debate over the infrastructure package. Contrary to most asset classes, commodities thrived in September, driven by sharply higher energy prices.
“ Municipal debt experienced its first monthly performance drop since February 2021, slowing a rally that made it one of the best-performing sectors of the bond market.”
Institutional Money Market Funds | 3
Letter to shareholders (unaudited)
October’s key themes continued to be elevated inflation pressures and a supply bottleneck, but strong earnings provided a bright spot in the markets. Earnings releases in the U.S. were generally strong and consumer confidence was high. The Fed reaffirmed its plans to taper quantitative easing to a stop by mid-2022. Meanwhile, elevated inflation figures were considered transitory by the Fed. Similar to the U.S., the eurozone and many Asian countries saw positive earnings but were facing inflation pressures caused by supply bottlenecks while also experiencing energy price increases amid natural gas shortages. Globally, government bond yields rose as central banks prepared to lower monetary policy accommodation in the face of rising inflationary pressures. As previously referenced, positive commodity performance was driven by sharply higher energy costs.
November was dominated by rising COVID-19 hospitalizations and concerns regarding the Omicron variant. Most major asset classes, both domestically and internationally, declined in November with two exceptions: U.S. investment-grade bonds and Treasury Inflation-Protected Securities. The United Nations Climate Change Conference (COP26) took place during the month with hopes of agreement among countries to limit global warming. While several initiatives were discussed, the conference ultimately ended without the specifics required to instill confidence that the limiting of global warming would succeed. In the U.S., President Biden signed a long-awaited infrastructure bill to upgrade U.S. roads, bridges, and railways. Meanwhile, the Consumer Price Index1, a measure of domestic inflation conditions, jumped to its highest level in 31 years. While the threat of consistently high inflation led the Fed to discuss a faster pace of tapering, the Omicron strain makes that less likely to occur. Commodities came in negative for the month, largely driven by sharp declines in oil prices (and energy costs in general) as well as precious metals.
Global volatility in December lessened as data indicated a lower risk of severe disease and death as a result of the Omicron variant. Even so, a number of countries introduced restrictions on sectors such as travel and hospitality to try to reduce the spread. In the U.S., data indicated that the overall domestic economy remained stable and corporate earnings remained robust. Consumer spending capability looked strong heading into 2022 on the back of elevated household savings and the lowest ratio of U.S. household liabilities to assets since 1973. U.S. corporate and high-yield bonds produced positive returns for the month while Treasuries declined. Bonds were strongly affected by the projection of three 25-basis-point (bp; 100 bps equal 1.00%) policy rate hikes in 2022 by senior Federal Open Market Committee members, contrary to just one hike as previously believed.
Key themes in the first month of 2022 were the potential U.S. interest rate hikes and the Russia-Ukraine conflict. Comments from the Fed suggested a hike in interest rates in March is now likely. Meanwhile, Russia’s potential invasion of Ukraine, could threaten to disrupt its massive energy supplies and drive demand from non-Russian oil-producing countries. Elsewhere overseas, Europe saw food and energy prices spike, leading to rising inflation to match that being experienced in the U.S. Within fixed income, corporate bonds struggled in January and underperformed government bonds, as investors focused on continued elevated inflation and ongoing uncertainty over the U.S. monetary path.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Allspring Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
“ Bonds were strongly affected by the projection of three 25-basis-point (bp; 100 bps equal 1.00%) policy rate hikes in 2022 by senior Federal Open Market Committee members, contrary to just one hike as previously believed.”
| 1 | The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index. |
4 | Institutional Money Market Funds
Letter to shareholders (unaudited)
Information on transaction closing.
On November 1, 2021, GTCR LLC and Reverence Capital Partners, L.P., announced the beginning of Allspring Global Investments™, with the close of the transaction to acquire Wells Fargo Funds Management, LLC; Wells Capital Management, LLC; Galliard Capital Management, LLC.; Wells Fargo Asset Management (International) Ltd.; Wells Fargo Asset Management Luxembourg S.A.; and Wells Fargo Funds Distributor, LLC, as well as Wells Fargo Bank, N.A.’s business of acting as trustee to its collective investment trusts and all related Wells Fargo Asset Management legal entities. The transaction closed on November 1, 2021, forming Allspring Global Investments, a privately held asset management firm with $575 billion in AUM1 as of December 31, 2021.
Allspring Global Investments™ is a leading independent asset management firm with a full breadth of investment capabilities across diverse asset classes, serving the needs of its institutional and wealth management clients around the world. Allspring operates across 18 offices globally supported by more than 480 investment professionals. Allspring and its investment teams provide a broad range of differentiated investment products and solutions to help its diverse range of clients meet their investment objectives.
As part of this transition, all mutual funds within the Wells Fargo Funds family were rebranded as Allspring Funds. Each individual fund had “Wells Fargo” removed from its fund name and replaced with “Allspring.” The fund name changes went into effect on December 6, 2021.
Allspring Global Investments is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
President
Allspring Funds
Notice to Shareholders
Russia launched a large-scale invasion of Ukraine on February 24, 2022. As a result of this military action, the United States and many other countries have instituted various economic sanctions against Russian individuals and entities. The situation has led to increased financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities, such as oil and natural gas. The extent and duration of the military action, resulting sanctions imposed, other punitive action taken and the resulting market disruptions cannot be easily predicted.
Our solidarity and support goes out to our impacted employees and the people affected in Ukraine and their families. Allspring has a dedicated team of investment professionals actively monitoring the situation for any new developments and the potential impact to our clients and investment products. As the situation remains fluid, we are focused on the assessment of risks, valuation, and liquidity of impacted securities. Please visit our website at allspringglobal.com and click on “Russia-Ukraine Portfolio Impacts” for further information
For further information about your Fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
| 1 | As of December 31, 2021, assets under management (AUM) includes $91.6 billion from Galliard Capital Management, LLC, an investment advisor that is not part of the Allspring trade name/GIPS firm. |
Institutional Money Market Funds | 5
Performance highlights (unaudited)
| Investment objective | The Fund seeks current income exempt from regular federal income tax, while preserving capital and liquidity. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | James Randazzo, Jeffrey L. Weaver, CFA®‡ |
| Average annual total returns (%) as of January 31, 2022 | ||||||
| Expense ratios1 (%) | ||||||
| Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
| Administrator Class (WUCXX) | 7-9-2010 | 0.05 * | 0.73 | 0.41 | 0.44 | 0.30 |
| Institutional Class (EMMXX) | 11-20-1996 | 0.04 | 0.80 | 0.46 | 0.32 | 0.20 |
| Service Class (EISXX) | 11-25-1996 | 0.05 | 0.66 | 0.36 | 0.61 | 0.45 |
| * | Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the NAV at which the shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles. |
| 1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
| 2 | The manager has contractually committed through May 31, 2022, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.30% for Administrator Class, 0.20% for Institutional Class and 0.45% for Service Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. The manager and/or its affiliates may also voluntarily waive all or a portion of any fees to which they are entitled and/or reimburse certain expenses as they may determine from time to time. Without these caps, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses. |
| Yield summary (%) as of January 31, 2022 | |||
| Administrator Class | Institutional Class | Service Class | |
| 7-day current yield1 | 0.01 | 0.01 | 0.01 |
| 7-day compound yield | 0.01 | 0.01 | 0.01 |
| 30-day simple yield | 0.01 | 0.01 | 0.01 |
| 30-day compound yield | 0.01 | 0.01 | 0.01 |
| 1 | The manager has contractually committed through May 31, 2022, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses and may also voluntarily waive or reimburse additional fees and expenses which may be discontinued or modified at any time without notice. Without these reductions, the Fund’s 7-day current yield would have been -0.31%, -0.19% and -0.39% for Administrator Class, Institutional Class and Service Class, respectively. |
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 returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, allspringglobal.com.
Money market funds are sold without a front-end sales charge or contingent deferred sales charge. Other fees and expenses apply to an investment in the Fund and are described in the Fund’s current prospectus.
| ‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Institutional Money Market Funds
Performance highlights (unaudited)
For floating NAV money market funds: You could lose money by investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Institutional Money Market Funds | 7
Performance highlights (unaudited)
MANAGER'S DISCUSSION
The municipal money market space exhibited a welcome sense of calm during the period as investors continued to evaluate developments in the battle with COVID-19 and its variants throughout the year. The overwhelming fiscal and monetary policy response on the part of global central banks and governments in 2020 continued to have a profound impact on market dynamics in 2021. Interest rates in the short end of the market remained at extremely low absolute levels while demand for eligible investments easily outstripped supply in both the taxable and tax-exempt sectors. In contrast to 2020’s volatile markets, municipal money market yields remained generally range bound throughout the period.
With the Federal Open Market Committee (FOMC) maintaining the federal funds target rate in the 0.00% to 0.25% range for the entire period, there was little opportunity for tax-exempt rates to rise significantly, even during periods of seasonal weakness such as tax season in April. The SIFMA Index* began the period at 0.04%, or 44% of the 1-week London Interbank Offered Rate (LIBOR), and remained generally range-bound during the period as demand for overnight and weekly VRDNs** and tender option bonds (TOBs) remained robust. Yields on high-grade paper in the one-year space began the year at roughly 0.09% and remained range-bound as well.
| Portfolio composition as of January 31, 20221 |
| 1 | Figures represent the percentage of the Fund's total investments. These amounts are subject to change and may have changed since the date specified. |
With money market securities yielding next to zero, demand for tax-exempt income further out on the curve continued to grow. Municipal money market funds experienced roughly $19 billion in outflows during the period, falling to roughly $94 billion, according to Crane Data. In comparison, municipal bond funds were on a record-setting pace with roughly $101.7 billion in inflows during the period. This record-setting haul led to insatiable demand for tax-exempt securities, resulting in rich ratios throughout the yield curve.
While demand remained robust, new issue supply in the short-term note markets fell to roughly $31 billion, down roughly 37% from the previous year. With many municipal issuers flush with federal stimulus cash, there was less of a need to borrow in the cash flow markets. Many traditional borrowers such as the state of Texas skipped cash flow borrowing altogether during the year. This cut in supply helped push the yield on high-grade one-year notes to a multiyear low of 0.08% in mid-July.
| Effective maturity distribution as of January 31, 20221 |
| 1 | Figures represent the percentage of the Fund's total investments. These amounts are subject to change and may have changed since the date specified. |
| * | The Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index (SIFMA Index) is a seven-day high-grade market index composed of tax-exempt variable-rate demand obligations with certain characteristics. The index is calculated and published by Bloomberg. The index is overseen by SIFMA’s Municipal Swap Index Committee. You cannot invest directly in an index. |
| ** | Variable Rate Demand Notes (VRDNs) are debt securities commonly held within certain mutual funds. Like all bonds, VRDN values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes can be sudden and unpredictable. In addition to credit and interest rate risk, VRDNs are subject to municipal securities risk. |
8 | Institutional Money Market Funds
Performance highlights (unaudited)
In the second half of the period, the extreme imbalance between supply and demand made it difficult for yields in the municipal markets to keep pace with taxable counterparts even as the U.S. Federal Reserve (Fed) began to pivot toward tapering asset purchases and indicating that interest rate hikes were on the horizon. Yields in the short end of the money market space remained well contained as the level of supply and demand imbalances became increasingly more evident as the usage of the Fed’s reverse repurchase agreement program continued to swell.
Heading into year-end, yields in the municipal money market space finally began to show some signs of life, with the SIFMA Index rising to a year-to-date high of 0.11% (1.57% of 1-week LIBOR) due to typical year-end pressures and a larger-than-anticipated new issue calendar. Yields on high-grade one-year paper finished out the year at 0.20%, just 2 basis points lower than at the start of the year.
However, the municipal markets would experience a stunning reversal in sentiment during the final month of the period. As municipal bond funds began to experience moderate outflows in mid-January, demand for tax-exempts began to show clear signs of weakness. As a result, inventory levels of VRDNs and TOBs surged at month-end and the level of secondary market selling of short-term notes accelerated. Rates on overnight paper jumped to 0.12% and the SIFMA Index rose modestly to 0.06% to finish the month. Further out on the curve, the price action was more pronounced with yields on high-grade notes finishing the month at 0.50%, up from 0.20% at year-end.
During the period, we continued to emphasize portfolio liquidity by targeting our purchases predominantly in daily and weekly VRDNs and TOBs. With low absolute rates and a relatively flat yield curve, we remained very selective in our term investments. We continued to favor adding high-grade commercial paper in the one- to three-month space while selectively adding fixed-rate notes beyond six months. As we head into 2022, we believe our portfolios should be well positioned to take advantage of higher short-term rates as market participants expect the FOMC to embark on a rate-hiking cycle in early to mid-year 2022.
Institutional Money Market Funds | 9
Performance highlights (unaudited)
| Weighted average maturity as of January 31, 20221 |
| 8 days |
| 1 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
| Weighted average life as of January 31, 20221 |
| 10 days |
| 1 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
10 | Institutional Money Market Funds
Fund expenses (unaudited)
As a shareholder of the Fund, you incur ongoing costs including management fees, shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from August 1, 2021 to January 31, 2022.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Beginning account value 8-1-2021 | Ending account value 1-31-2022 | Expenses paid during the period1 | Annualized net expense ratio | |
| Administrator Class | ||||
| Actual | $1,000.00 | $1,000.10 | $0.40 | 0.08% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.80 | $0.41 | 0.08% |
| Institutional Class | ||||
| Actual | $1,000.00 | $1,000.10 | $0.40 | 0.08% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.80 | $0.41 | 0.08% |
| Service Class | ||||
| Actual | $1,000.00 | $1,000.10 | $0.40 | 0.08% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.80 | $0.41 | 0.08% |
1 Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).
Institutional Money Market Funds | 11
Portfolio of investments—January 31, 2022
| Principal | Value | ||||
| Closed end municipal bond fund obligations: 2.59% | |||||
| Nuveen AMT-Free Municipal Credit Income Fund MuniFund Preferred Shares Series D (20 shares) 0.26% 144Aø | $ 2,000,000 | $ 2,000,000 | |||
| Nuveen California AMT-Free Quality Municipal Income Fund MuniFund Preferred Shares Series A (30 shares) 0.15% 144Aø | 3,000,000 | 3,000,000 | |||
| Nuveen Quality Municipal Income Fund Series 1-2118 (40 shares) 0.15% 144Aø | 4,000,000 | 4,000,000 | |||
| Total Closed end municipal bond fund obligations (Cost $9,000,000) | 9,000,000 |
| Interest rate | Maturity date | ||||
| Municipal obligations: 94.10% | |||||
| Arizona: 2.72% | |||||
| Variable rate demand notes ø: 2.72% | |||||
| Arizona Health Facility Authority Floater Series 2015 XF 2050 (Health revenue, Morgan Stanley Bank LIQ) 144A | 0.09% | 1-1-2037 | 2,000,000 | 2,000,000 | |
| Maricopa County AZ IDA Solid Waste Disposal Series 2006 (Resource recovery revenue, Farm Credit Services America LOC) | 0.11 | 8-1-2026 | 2,500,000 | 2,500,000 | |
| Pinal County AZ IDA Shamrock Farms Project (Resource recovery revenue, Farm Credit Services America LOC) | 0.14 | 8-1-2022 | 3,700,000 | 3,700,000 | |
| Pinal County AZ IDA Solid Waste Disposal Feenstra Investments LLC Project Series 2002 (Resource recovery revenue, Farm Credit Services America LOC) | 0.14 | 8-1-2027 | 1,250,000 | 1,250,000 | |
| 9,450,000 | |||||
| California: 6.88% | |||||
| Other municipal debt : 4.33% | |||||
| Los Angeles CA Department Airports Revenue Subordinated Bond Series A2 (Airport revenue) | 0.07 | 2-3-2022 | 7,000,000 | 7,000,015 | |
| San Jose CA International Airport Series B (Airport revenue) | 0.12 | 2-3-2022 | 8,000,000 | 8,000,022 | |
| 15,000,037 | |||||
| Variable rate demand notes ø: 2.55% | |||||
| Modesto CA MFHR Live Oak Apartments Project (Tax revenue, FNMA Insured, FNMA LIQ) | 0.12 | 9-15-2024 | 230,000 | 230,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2016-XX1040 (Miscellaneous revenue, Barclays Bank plc LIQ) 144A | 0.08 | 2-1-2046 | 4,160,000 | 4,160,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-MIZ9012 (Housing revenue, Mizuho Capital Markets LLC LIQ) 144A | 0.31 | 10-1-2036 | 4,455,000 | 4,455,000 | |
| 8,845,000 |
The accompanying notes are an integral part of these financial statements.
12 | Institutional Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Colorado: 1.02% | |||||
| Variable rate demand notes ø: 1.02% | |||||
| Colorado ECFA Series F-2 (Miscellaneous revenue, Northern Trust Company LOC) | 0.13% | 7-1-2041 | $ 3,395,000 | $ 3,395,000 | |
| Colorado Springs CO Utilities System Improvement Bonds Series 2008A (Utilities revenue, U.S. Bank NA SPA) | 0.06 | 11-1-2038 | 135,000 | 135,000 | |
| 3,530,000 | |||||
| Connecticut: 0.12% | |||||
| Other municipal debt : 0.12% | |||||
| North Branford CT BAN (GO revenue) | 2.00 | 8-4-2022 | 400,000 | 402,927 | |
| District of Columbia: 1.15% | |||||
| Variable rate demand notes ø: 1.15% | |||||
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF0621 (Water & sewer revenue, Royal Bank of Canada LIQ) 144A | 0.09 | 4-1-2026 | 4,000,000 | 4,000,000 | |
| Florida: 3.56% | |||||
| Variable rate demand notes ø: 3.56% | |||||
| St. Lucie County FL Power & Light Company (Industrial development revenue) | 0.10 | 9-1-2028 | 5,000,000 | 5,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2017-TX1073 (Housing revenue, GNMA / FNMA / FHLMC Insured, Barclays Bank plc LIQ) 144A | 0.09 | 7-1-2037 | 4,335,000 | 4,335,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XG0173 (Health revenue, Credit Suisse LIQ) 144A | 0.11 | 10-1-2025 | 3,000,000 | 3,000,000 | |
| 12,335,000 | |||||
| Georgia: 0.84% | |||||
| Variable rate demand notes ø: 0.84% | |||||
| Roswell GA Housing Authority Refunding Bonds Belcourt Limited Project A (Housing revenue, Northern Trust Company LOC) | 0.07 | 9-1-2027 | 2,900,000 | 2,900,000 | |
| Idaho: 1.15% | |||||
| Variable rate demand notes ø: 1.15% | |||||
| Idaho Health Facilities Authority Hospital Trinity Health Credit Group Series D (Health revenue) | 0.10 | 12-1-2048 | 4,000,000 | 4,000,000 | |
| Illinois: 10.52% | |||||
| Variable rate demand notes ø: 10.52% | |||||
| Illinois Educational Facilities Authority Aurora University (Education revenue, BMO Harris Bank NA LOC) | 0.07 | 3-1-2032 | 5,800,000 | 5,800,000 | |
| Illinois Finance Authority American College of Surgeons (Education revenue, Northern Trust Company LOC) | 0.06 | 8-1-2026 | 2,676,000 | 2,676,000 | |
| Illinois Finance Authority Revenue Various Refunding Bond Northwestern Memorial (Health revenue, Barclays Bank plc SPA) | 0.12 | 7-15-2055 | 2,150,000 | 2,150,000 | |
| Peoria County IL Caterpillar Incorporated Project (Industrial development revenue) | 0.24 | 2-1-2030 | 4,300,000 | 4,300,000 |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 13
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Variable rate demand notes ø(continued) | |||||
| Royal Bank of Canada Municipal Products Incorporated Trust Series E-151 (Miscellaneous revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.10% | 11-30-2023 | $10,000,000 | $ 10,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates (Miscellaneous revenue, Bank of America NA LIQ) 144A | 0.11 | 3-1-2046 | 1,550,000 | 1,550,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XM0683 (Tax revenue, Bank of America NA LIQ) 144A | 0.20 | 1-1-2048 | 5,000,000 | 5,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2019-XF0779 (Tax revenue, BAM Insured, TD Bank NA LIQ) 144A | 0.11 | 1-1-2048 | 5,000,000 | 5,000,000 | |
| 36,476,000 | |||||
| Indiana: 1.80% | |||||
| Variable rate demand notes ø: 1.80% | |||||
| Indiana Finance Authority Duke Energy Indiana Incorporated Series 2009A-4 (Industrial development revenue, Sumitomo Mitsui Banking Corporation LOC) | 0.12 | 12-1-2039 | 2,500,000 | 2,500,000 | |
| Jeffersonville IN Economic Development Eagle Steel Products Incorporated Project (Industrial development revenue, Bank of America NA LOC) | 0.13 | 12-1-2027 | 2,000,000 | 2,000,000 | |
| Noblesville IN Greystone Apartments Project Series B (Housing revenue, FHLB LOC) | 0.12 | 3-1-2041 | 1,295,000 | 1,295,000 | |
| St. Joseph County IN Midcorr Land Development LLC Project (Industrial development revenue, PNC Bank NA LOC) | 0.09 | 10-1-2023 | 460,000 | 460,000 | |
| 6,255,000 | |||||
| Iowa: 3.77% | |||||
| Variable rate demand notes ø: 3.77% | |||||
| Iowa Finance Authority John Maassen & Sons Project (Industrial development revenue, Farm Credit Services America LOC) | 0.11 | 11-1-2035 | 2,075,000 | 2,075,000 | |
| Iowa Finance Authority Midwestern Disaster Area Bio-America Incorporated Project (Industrial development revenue, Korea Development Bank LOC) 144A | 0.10 | 12-1-2041 | 11,000,000 | 11,000,000 | |
| 13,075,000 | |||||
| Kansas: 1.99% | |||||
| Variable rate demand notes ø: 1.99% | |||||
| University of Kansas Hospital Authority Health System (Health revenue, U.S. Bank NA LOC) | 0.11 | 9-1-2034 | 6,900,000 | 6,900,000 | |
| Kentucky: 2.95% | |||||
| Variable rate demand notes ø: 2.95% | |||||
| Boone Country KY PCR Various Refunding Bonds Duke Energy (Industrial development revenue, Sumitomo Mitsui Banking Corporation LOC) | 0.08 | 8-1-2027 | 10,000,000 | 10,000,000 | |
| Jefferson County KY Industrial Building Dant Growth LLC Project Series 2002 (Industrial development revenue, Stock Yards Bank & Trust LOC) | 0.09 | 9-1-2022 | 250,000 | 250,000 | |
| 10,250,000 |
The accompanying notes are an integral part of these financial statements.
14 | Institutional Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Louisiana: 1.15% | |||||
| Variable rate demand notes ø: 1.15% | |||||
| Louisiana Local Government Environmental Facilities CDA Honeywell International Incorporated Project (Industrial development revenue) | 0.24% | 12-1-2036 | $ 4,000,000 | $ 4,000,000 | |
| Maryland: 1.00% | |||||
| Variable rate demand notes ø: 1.00% | |||||
| Tender Option Bond Trust Receipts/Floater Certificates Series 2021-XG0332 (Housing revenue, Bank of America NA LIQ) 144A | 0.09 | 9-1-2043 | 3,465,000 | 3,465,000 | |
| Michigan: 2.55% | |||||
| Other municipal debt : 1.44% | |||||
| University of Michigan Series L-1 (Education revenue) | 0.11 | 3-3-2022 | 5,000,000 | 4,999,877 | |
| Variable rate demand notes ø: 1.11% | |||||
| Tender Option Bond Trust Receipts/Certificates Series 2018-ZM0614 (Education revenue, Morgan Stanley Bank LIQ) 144A | 0.21 | 11-1-2028 | 3,835,000 | 3,835,000 | |
| Minnesota: 4.81% | |||||
| Variable rate demand notes ø: 4.81% | |||||
| Forest Lake MN Kilkenny Court Apartments Project Series 2008 (Housing revenue, FNMA LOC, FNMA LIQ) | 0.15 | 8-15-2038 | 690,000 | 690,000 | |
| JPMorgan Chase Puttable Tax-Exempt Receipts Trust Series 5027 (GO revenue, JPMorgan Chase & Company LIQ) 144A | 0.21 | 3-20-2024 | 10,000,000 | 10,000,000 | |
| Minnesota HEFAR Concordia University Series 6Q (Education revenue, U.S. Bank NA LOC) | 0.12 | 4-1-2037 | 3,640,000 | 3,640,000 | |
| Tender Option Bond Trust Receipts/Certificates Series 2018-XF2760 (Education revenue, Morgan Stanley Bank LIQ) 144A | 0.26 | 11-1-2037 | 2,365,000 | 2,365,000 | |
| 16,695,000 | |||||
| Montana: 0.61% | |||||
| Variable rate demand notes ø: 0.61% | |||||
| Floater/Residual Trust Tender Option Bond (Housing revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.31 | 6-1-2034 | 1,000,000 | 1,000,000 | |
| Floater/Residual Trust Tender Option Bond (Housing revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.31 | 6-1-2034 | 1,110,000 | 1,110,000 | |
| 2,110,000 | |||||
| Nebraska: 1.80% | |||||
| Variable rate demand notes ø: 1.80% | |||||
| Nebraska Investment Finance Authority Single Family Housing Series F (Housing revenue, GNMA / FNMA / FHLMC Insured, FHLB SPA) | 0.07 | 3-1-2038 | 6,230,000 | 6,230,000 |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 15
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Nevada: 1.18% | |||||
| Variable rate demand notes ø: 1.18% | |||||
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XM0866 (Tax revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.10% | 7-1-2026 | $ 4,100,000 | $ 4,100,000 | |
| New Jersey: 4.93% | |||||
| Other municipal debt : 0.29% | |||||
| Burlington County NJ Bridge Commission Series 2021C (Miscellaneous revenue) | 2.00 | 11-10-2022 | 1,000,000 | 1,010,288 | |
| Variable rate demand notes ø: 4.64% | |||||
| New Jersey HFA Series 2013-5 (Housing revenue, Citibank NA LOC) | 0.08 | 11-1-2046 | 5,600,000 | 5,600,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XG0205 (Miscellaneous revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.09 | 6-15-2050 | 7,500,000 | 7,500,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-ZF1206 (Transportation revenue, BAM Insured, JPMorgan Chase & Company LIQ) 144A | 0.09 | 11-1-2028 | 3,000,000 | 3,000,000 | |
| 16,100,000 | |||||
| New York: 8.39% | |||||
| Variable rate demand notes ø: 8.39% | |||||
| New York HFA Revenue Various 8 East 102nd Street Housing Series A (Housing revenue, TD Bank NA LOC) | 0.05 | 5-1-2044 | 7,000,000 | 7,000,000 | |
| New York Metropolitan Transportation Authority Subordinate Bond Series 2012A-2 (Transportation revenue, Bank of Montreal LOC) | 0.09 | 11-15-2041 | 4,000,000 | 4,000,000 | |
| New York NY Housing Development Corporation Refunding Bonds Series 2005-A (Housing revenue, Citibank NA LOC) | 0.09 | 6-1-2037 | 200,000 | 200,000 | |
| New York NY Subordinated Bond Series E-5 (GO revenue, TD Bank NA LOC) | 0.11 | 3-1-2048 | 2,500,000 | 2,500,000 | |
| New York Transitional Finance Authority Future Tax Secured Tax-Exempt Bond Fiscal 2015 Subordinate Bonds Series A-3 (Tax revenue, Mizuho Bank Limited SPA) | 0.12 | 8-1-2043 | 2,790,000 | 2,790,000 | |
| New York Various Fiscal 2018 Subordinated Bond Series B-5 (GO revenue, Barclays Bank plc SPA) | 0.12 | 10-1-2046 | 5,000,000 | 5,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates (Airport revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.10 | 7-15-2028 | 3,000,000 | 3,000,000 | |
| Triborough Bridge & Tunnel Authority Subordinated Bonds series B-2 (Transportation revenue, State Street Bank & Trust Company LOC) | 0.10 | 1-1-2032 | 2,500,000 | 2,500,000 | |
| Triborough Bridge & Tunnel Authority Subordinated Bonds Series B-2 (Transportation revenue, State Street Bank & Trust Company LOC) | 0.08 | 1-1-2032 | 2,100,000 | 2,100,000 | |
| 29,090,000 |
The accompanying notes are an integral part of these financial statements.
16 | Institutional Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| North Carolina: 1.66% | |||||
| Variable rate demand notes ø: 1.66% | |||||
| Rockingham County NC Industrial Facilities & PCFA Innofa USA Project Series 2007 (Industrial development revenue, Truist Bank LOC) | 0.18% | 1-1-2027 | $ 1,050,000 | $ 1,050,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2022-XF1270 (Miscellaneous revenue, JPMorgan Chase & Company LIQ) 144A | 0.09 | 1-1-2028 | 4,716,000 | 4,716,000 | |
| 5,766,000 | |||||
| Ohio: 6.71% | |||||
| Other municipal debt : 0.58% | |||||
| Milford OH Exempted Village School District BAN School Improvement (GO revenue) | 1.63 | 4-5-2022 | 2,000,000 | 2,003,285 | |
| Variable rate demand notes ø: 6.13% | |||||
| Franklin County OH Trinity Health Group (Health revenue) | 0.10 | 12-1-2046 | 3,000,000 | 3,000,000 | |
| Ohio Health System Cleveland Clinic Series F (Health revenue, U.S. Bank NA SPA) | 0.10 | 1-1-2052 | 2,500,000 | 2,500,000 | |
| Ohio Special Obligation Various Capital Facilities Lease (Miscellaneous revenue) | 0.05 | 12-1-2041 | 5,000,000 | 5,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2015-XF0225 (Water & sewer revenue, TD Bank NA LIQ) 144A | 0.11 | 11-15-2043 | 1,375,000 | 1,375,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XL0074 (Health revenue, JPMorgan Chase & Company LIQ) 144A | 0.13 | 2-1-2029 | 8,630,000 | 8,630,000 | |
| Tender Option Bond Trust Receipts/Various States (Miscellaneous revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.19 | 12-15-2040 | 750,000 | 750,000 | |
| 21,255,000 | |||||
| Oregon: 0.85% | |||||
| Variable rate demand notes ø: 0.85% | |||||
| Portland OR Portland International Airport Series 18-A (Airport revenue, Bank of China LOC) | 0.10 | 7-1-2026 | 235,000 | 235,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XM0814 (Education revenue, Royal Bank of Canada LIQ) 144A | 0.09 | 1-1-2028 | 2,700,000 | 2,700,000 | |
| 2,935,000 | |||||
| Pennsylvania: 2.20% | |||||
| Variable rate demand notes ø: 2.20% | |||||
| Floater/Residual Trust Tender Option Bond (Housing revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.31 | 11-1-2034 | 530,000 | 530,000 | |
| Pennsylvania EDFA Series D-7 (Industrial development revenue, PNC Bank NA LOC) | 0.09 | 8-1-2022 | 200,000 | 200,000 |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 17
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Variable rate demand notes ø(continued) | |||||
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-SM0860 (GO revenue, JPMorgan Chase & Company LOC, JPMorgan Chase & Company LIQ) 144A | 0.09% | 9-1-2027 | $ 4,275,000 | $ 4,275,000 | |
| Westmoreland County PA Municipal Authority Service Series 2016 Tender Option Bond Trust Receipts/Floater Certificates Series 2017-ZF0539 (Water & sewer revenue, BAM Insured, TD Bank NA LIQ) 144A | 0.20 | 8-15-2038 | 2,615,000 | 2,615,000 | |
| 7,620,000 | |||||
| South Dakota: 1.44% | |||||
| Variable rate demand notes ø: 1.44% | |||||
| South Dakota EDA Riverview Project (Resource recovery revenue, AgCountry Farm Credit Services LOC) | 0.11 | 11-1-2051 | 5,000,000 | 5,000,000 | |
| Texas: 8.16% | |||||
| Other municipal debt : 4.90% | |||||
| Harris County TX Cultural Education Facilities Finance Corporation Revenue Series C-2 (Education revenue) | 0.10 | 2-17-2022 | 2,000,000 | 1,999,990 | |
| San Antonio TX Electric & Gas Revenue Series A (Utilities revenue) | 0.10 | 2-10-2022 | 5,000,000 | 4,999,959 | |
| University of Texas Permanent University Fund Series A (Education revenue) | 0.10 | 3-8-2022 | 8,000,000 | 7,999,693 | |
| University of Texas University Revenue Series A (Education revenue) | 0.10 | 2-1-2022 | 2,000,000 | 2,000,000 | |
| 16,999,642 | |||||
| Variable rate demand notes ø: 3.26% | |||||
| Dallam County TX Industrial Development Corporation Dalhart Jersey Ranch Incorporated Series 2008 (Resource recovery revenue) | 0.11 | 8-1-2039 | 695,000 | 695,000 | |
| Port Arthur TX Navigation District Jefferson County Total Petrochemicals USA Incorporated Project Series 2003-C (Industrial development revenue) | 0.07 | 4-1-2027 | 3,000,000 | 3,000,000 | |
| Tender Option Bond Trust Receipts/Certificates Series 2021 MS0002 (Education revenue, Morgan Stanley Bank LIQ) 144A | 0.26 | 6-15-2056 | 3,000,000 | 3,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates (Transportation revenue, JPMorgan Chase & Company LIQ) 144A | 0.10 | 3-1-2051 | 3,055,000 | 3,055,000 | |
| Tender Option Bond Trust Receipts/Various States (GO revenue, Royal Bank of Canada LIQ) 144A | 0.09 | 2-15-2029 | 1,545,000 | 1,545,000 | |
| 11,295,000 | |||||
| Utah: 1.90% | |||||
| Variable rate demand notes ø: 1.90% | |||||
| Royal Bank of Canada Municipal Products Incorporated Trust Series E-142 (Utilities revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.09 | 5-1-2022 | 5,000,000 | 5,000,000 | |
| Utah County UT IHC Health Services Series B (Health revenue, U.S. Bank NA SPA) | 0.06 | 5-15-2035 | 1,575,000 | 1,575,000 | |
| 6,575,000 |
The accompanying notes are an integral part of these financial statements.
18 | Institutional Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Virginia: 2.54% | |||||
| Variable rate demand notes ø: 2.54% | |||||
| Albemarle County VA EDA Series 2018A & 2018B (Health revenue, TD Bank NA SPA) | 0.12% | 10-1-2048 | $ 3,920,000 | $ 3,920,000 | |
| Floater/Residual Trust Tender Option Bond Series 2020-MIZ9025 (Health revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.13 | 11-1-2035 | 2,890,000 | 2,890,000 | |
| Virginia MFHR Series M-031 Class A (Housing revenue, FHLMC LIQ) 144A | 0.09 | 12-15-2045 | 1,995,000 | 1,995,000 | |
| 8,805,000 | |||||
| Washington: 1.28% | |||||
| Variable rate demand notes ø: 1.28% | |||||
| Eclipse Funding Trust (Water & sewer revenue, U.S. Bank NA LIQ) 144A | 0.11 | 7-1-2042 | 4,430,000 | 4,430,000 | |
| Wisconsin: 2.47% | |||||
| Variable rate demand notes ø: 2.47% | |||||
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-YX1129 (GO revenue, Barclays Bank plc LIQ) 144A | 0.14 | 4-1-2035 | 7,835,000 | 7,835,000 | |
| Tender Option Bond Trust Receipts/Various States (Education revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.19 | 12-15-2040 | 735,000 | 735,000 | |
| 8,570,000 | |||||
| Total Municipal obligations (Cost $326,314,605) | 326,308,056 | ||||
| Repurchase agreements^^: 2.65% | |||||
| MUFG Securities Canada Limited, dated 1-31-2022, maturity value $9,200,013 | 0.05 | 2-1-2022 | 9,200,000 | 9,200,000 | |
| Total Repurchase agreements (Cost $9,200,000) | 9,200,000 | ||||
| Total investments in securities (Cost $344,514,605) | 99.34% | 344,508,056 | |||
| Other assets and liabilities, net | 0.66 | 2,276,481 | |||
| Total net assets | 100.00% | $346,784,537 |
| 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. |
| ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
| ^^ | Collateralized by U.S. government securities, 0.00% to 6.38%, 6-16-2022 to 2-15-2051, fair value including accrued interest is $9,384,000. |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 19
Portfolio of investments—January 31, 2022
| Abbreviations: | |
| BAM | Build America Mutual Assurance Company |
| BAN | Bond anticipation notes |
| CDA | Community Development Authority |
| ECFA | Educational & Cultural Facilities Authority |
| EDA | Economic Development Authority |
| EDFA | Economic Development Finance Authority |
| FHLB | Federal Home Loan Bank |
| FHLMC | Federal Home Loan Mortgage Corporation |
| FNMA | Federal National Mortgage Association |
| GNMA | Government National Mortgage Association |
| GO | General obligation |
| HEFAR | Higher Education Facilities Authority Revenue |
| HFA | Housing Finance Authority |
| IDA | Industrial Development Authority |
| LIQ | Liquidity agreement |
| LOC | Letter of credit |
| MFHR | Multifamily housing revenue |
| PCFA | Pollution Control Financing Authority |
| PCR | Pollution control revenue |
| SPA | Standby purchase agreement |
The accompanying notes are an integral part of these financial statements.
20 | Institutional Money Market Funds
Statement of assets and liabilities—January 31, 2022
| Assets | |
Investments in unaffiliated securities, at value (cost $344,514,605) | $ 344,508,056 |
Cash | 355,212 |
Receivable for investments sold | 1,885,000 |
Receivable for interest | 71,010 |
Receivable from manager | 18,954 |
Prepaid expenses and other assets | 26,386 |
Total assets | 346,864,618 |
| Liabilities | |
Professional fees payable | 39,085 |
Administration fees payable | 28,690 |
Payable for Fund shares redeemed | 41 |
Accrued expenses and other liabilities | 12,265 |
Total liabilities | 80,081 |
Total net assets | $346,784,537 |
| Net assets consist of | |
Paid-in capital | $ 346,762,374 |
Total distributable earnings | 22,163 |
Total net assets | $346,784,537 |
| Computation of net asset value per share | |
Net assets – Administrator Class | $ 5,277,804 |
Shares outstanding – Administrator Class1 | 5,274,634 |
Net asset value per share – Administrator Class | $1.0006 |
Net assets – Institutional Class | $ 324,812,824 |
Shares outstanding – Institutional Class1 | 324,634,801 |
Net asset value per share – Institutional Class | $1.0005 |
Net assets – Service Class | $ 16,693,909 |
Shares outstanding – Service Class1 | 16,662,997 |
Net asset value per share – Service Class | $1.0019 |
| 1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 21
Statement of operations—year ended January 31, 2022
| Investment income | |
Interest | $ 344,434 |
| Expenses | |
Management fee | 547,151 |
| Administration fees | |
Administrator Class | 3,338 |
Institutional Class | 275,152 |
Service Class | 20,987 |
| Shareholder servicing fees | |
Administrator Class | 3,337 |
Service Class | 43,723 |
Custody and accounting fees | 57,313 |
Professional fees | 55,043 |
Registration fees | 49,281 |
Shareholder report expenses | 26,368 |
Trustees’ fees and expenses | 19,272 |
Other fees and expenses | 26,587 |
Total expenses | 1,127,552 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level | (764,944) |
Administrator Class | (4,062) |
Service Class | (50,571) |
Net expenses | 307,975 |
Net investment income | 36,459 |
| Realized and unrealized gains (losses) on investments | |
Net realized gains on investments | 106,951 |
Net change in unrealized gains (losses) on investments | (15,014) |
Net realized and unrealized gains (losses) on investments | 91,937 |
Net increase in net assets resulting from operations | $ 128,396 |
The accompanying notes are an integral part of these financial statements.
22 | Institutional Money Market Funds
Statement of changes in net assets
| Year ended January 31, 2022 | Year ended January 31, 2021 | |||
| Operations | ||||
Net investment income | $ 36,459 | $ 930,787 | ||
Payment from affiliate | 0 | 23,941 | ||
Net realized gains on investments | 106,951 | 13,933 | ||
Net change in unrealized gains (losses) on investments | (15,014) | 7,474 | ||
Net increase in net assets resulting from operations | 128,396 | 976,135 | ||
| Distributions to shareholders from | ||||
| Net investment income and net realized gains | ||||
Administrator Class | (612) | (6,478) | ||
Institutional Class | (47,079) | (876,650) | ||
Service Class | (2,629) | (48,046) | ||
Total distributions to shareholders | (50,320) | (931,174) | ||
| Capital share transactions | Shares | Shares | ||
| Proceeds from shares sold | ||||
Administrator Class | 3,997,602 | 4,000,000 | 72,277 | 72,278 |
Institutional Class | 4,854,975,318 | 4,857,045,209 | 5,084,691,969 | 5,085,947,624 |
Service Class | 595,530 | 596,580 | 5,008,803 | 5,011,070 |
| 4,861,641,789 | 5,091,030,972 | |||
| Reinvestment of distributions | ||||
Administrator Class | 605 | 605 | 6,231 | 6,233 |
Institutional Class | 47,013 | 47,035 | 877,979 | 878,148 |
Service Class | 1,644 | 1,647 | 36,323 | 36,333 |
| 49,287 | 920,714 | |||
| Payment for shares redeemed | ||||
Administrator Class | 0 | 0 | (1,039,021) | (1,039,036) |
Institutional Class | (4,893,287,361) | (4,895,358,721) | (4,946,833,721) | (4,948,088,247) |
Service Class | (2,376,949) | (2,381,199) | (1,851,875) | (1,853,409) |
| (4,897,739,920) | (4,950,980,692) | |||
Net increase (decrease) in net assets resulting from capital share transactions | (36,048,844) | 140,970,994 | ||
Total increase (decrease) in net assets | (35,970,768) | 141,015,955 | ||
| Net assets | ||||
Beginning of period | 382,755,305 | 241,739,350 | ||
End of period | $ 346,784,537 | $ 382,755,305 | ||
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 23
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Administrator Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.0004 | $1.0004 | $1.0003 | $1.0010 | $1.0005 |
Net investment income | 0.0003 | 0.0033 | 0.0124 | 0.0125 | 0.0069 |
Net realized and unrealized gains (losses) on investments | 0.0001 | 0.0001 | 0.0005 | (0.0001) | 0.0005 |
Total from investment operations | 0.0004 | 0.0034 | 0.0129 | 0.0124 | 0.0074 |
| Distributions to shareholders from | |||||
Net investment income | (0.0001) | (0.0034) | (0.0125) | (0.0124) | (0.0069) |
Net realized gains | (0.0001) | (0.0000) 1 | (0.0003) | (0.0007) | (0.0000) 1 |
Total distributions to shareholders | (0.0002) | (0.0034) | (0.0128) | (0.0131) | (0.0069) |
Net asset value, end of period | $1.0006 | $1.0004 | $1.0004 | $1.0003 | $1.0010 |
Total return | 0.04% | 0.34% | 1.29% | 1.25% | 0.74% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.42% | 0.45% | 0.43% | 0.44% | 0.41% |
Net expenses | 0.08% * | 0.23% * | 0.30% | 0.30% | 0.30% |
Net investment income | 0.01% | 0.46% | 1.28% | 1.25% | 0.68% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $5,278 | $1,277 | $2,238 | $6,313 | $3,247 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.22% |
| Year ended January 31, 2021 | 0.06% |
| 1 | Amount is less than $0.00005. |
The accompanying notes are an integral part of these financial statements.
24 | Institutional Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Institutional Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.0003 | $1.0004 | $1.0004 | $1.0011 | $1.0005 |
Net investment income | 0.0001 | 0.0040 | 0.0137 | 0.0133 1 | 0.0080 |
Net realized and unrealized gains (losses) on investments | 0.0003 | (0.0003) | 0.0001 | 0.0001 | 0.0005 |
Total from investment operations | 0.0004 | 0.0037 | 0.0138 | 0.0134 | 0.0085 |
| Distributions to shareholders from | |||||
Net investment income | (0.0001) | (0.0038) | (0.0135) | (0.0134) | (0.0079) |
Net realized gains | (0.0001) | (0.0000) 2 | (0.0003) | (0.0007) | (0.0000) 2 |
Total distributions to shareholders | (0.0002) | (0.0038) | (0.0138) | (0.0141) | (0.0079) |
Net asset value, end of period | $1.0005 | $1.0003 | $1.0004 | $1.0004 | $1.0011 |
Total return | 0.04% | 0.38% | 1.38% | 1.35% | 0.85% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.29% | 0.32% | 0.31% | 0.31% | 0.29% |
Net expenses | 0.08% * | 0.18% * | 0.20% | 0.20% | 0.20% |
Net investment income | 0.01% | 0.41% | 1.34% | 1.32% | 0.79% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $324,813 | $363,006 | $224,247 | $166,024 | $336,215 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.12% |
| Year ended January 31, 2021 | 0.02% |
| 1 | Calculated based upon average shares outstanding |
| 2 | Amount is less than $0.00005. |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 25
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Service Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.0016 | $1.0003 | $1.0004 | $1.0010 | $1.0005 |
Net investment income | 0.0004 | 0.0024 | 0.0110 1 | 0.0109 1 | 0.0059 |
Payment from affiliate | 0.0000 | 0.0013 | 0.0000 | 0.0000 | 0.0000 |
Net realized and unrealized gains (losses) on investments | 0.0001 | 0.0006 | 0.0002 | 0.0001 | 0.0000 |
Total from investment operations | 0.0005 | 0.0043 | 0.0112 | 0.0110 | 0.0059 |
| Distributions to shareholders from | |||||
Net investment income | (0.0001) | (0.0030) | (0.0110) | (0.0109) | (0.0054) |
Net realized gains | (0.0001) | (0.0000) 2 | (0.0003) | (0.0007) | (0.0000) 2 |
Total distributions to shareholders | (0.0002) | (0.0030) | (0.0113) | (0.0116) | (0.0054) |
Net asset value, end of period | $1.0019 | $1.0016 | $1.0003 | $1.0004 | $1.0010 |
Total return | 0.05% | 0.44% 3 | 1.12% | 1.11% | 0.59% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.59% | 0.62% | 0.60% | 0.61% | 0.58% |
Net expenses | 0.09% * | 0.26% * | 0.45% | 0.45% | 0.45% |
Net investment income | 0.01% | 0.27% | 1.09% | 1.09% | 0.53% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $16,694 | $18,472 | $15,255 | $19,001 | $19,355 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.36% |
| Year ended January 31, 2021 | 0.19% |
| 1 | Calculated based upon average shares outstanding |
| 2 | Amount is less than $0.00005. |
| 3 | During the year ended January 31, 2021, the Fund received a payment from an affiliate which had a 0.13% impact on the total return. See Note 4 in the Notes to Financial Statements for additional information. |
The accompanying notes are an integral part of these financial statements.
26 | Institutional Money Market Funds
Notes to financial statements
1. ORGANIZATION
Allspring Funds Trust (the "Trust"), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Municipal Cash Management Money Market Fund (the "Fund") which is a diversified series of the Trust.
The Fund operates as an institutional non-government money market fund. As an institutional non-government money market fund, shareholders will transact at a floating net asset value (NAV) rounded to four decimal places in accordance with the valuation policies below.
Consistent with Rule 2a-7, the Board of Trustees of the Fund is permitted to impose a liquidity fee on redemptions from the Fund or a redemption gate (i.e., a suspension of the right to redeem) in the event that the Fund’s liquidity falls below required minimums because of market conditions or other factors. If the Fund’s weekly liquid assets (as defined in Rule 2a-7(34)) fall below 30% of the Fund’s total assets, the Board of Trustees is permitted, but not required, to: (i) impose a liquidity fee of no more than 2% of the amount redeemed; and/or (ii) impose a redemption gate. If the Fund’s weekly liquid assets fall below 10% of the Fund’s total assets, the Fund must impose, generally as of the beginning of the next business day, a liquidity fee of 1% of the amount redeemed unless the Board of Trustees determines that such a fee is not in the best interest of the Fund or determines that a lower or higher fee (subject to the 2% limit) is in the best interest of the Fund. Liquidity fees reduce the amount a shareholder receives upon redemption of its shares. The Fund retains any liquidity fees for the benefit of remaining shareholders. The Board of Trustees did not impose any liquidity fees and/or redemption gates during the year ended January 31, 2022.
Effective on November 1, 2021, the sale transaction of Wells Fargo Asset Management ("WFAM") by Wells Fargo & Company to GTCR LLC and Reverence Capital Partners, L.P. was closed. In connection with the closing of the transaction, WFAM became known as Allspring Global Investments (“Allspring”) and various entities that provided services to the Fund changed their names to "Allspring", including Allspring Funds Management, LLC, the investment manager to the Fund, Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited, both registered investment advisers providing subadvisory services to certain funds, and Allspring Funds Distributor, LLC, the Fund's principal underwriter. Consummation of the transaction resulted in a new investment management agreement and subadvisory agreement which became effective on November 1, 2021.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
Debt securities are valued at the evaluated bid price provided by an independent pricing service (e.g. taking into account various factors, including yields, maturities, or credit ratings) or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Allspring Global Investments Pricing Committee at Allspring Funds Management, LLC ("Allspring Funds Management"). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Allspring Global Investments Pricing Committee which may include items for ratification.
Repurchase agreements
The Fund may invest in repurchase agreements and may participate in pooled repurchase agreement transactions with other funds advised by Allspring Funds Management. Repurchase agreements are agreements where the seller of a security to the Fund agrees to repurchase that security from the Fund at a mutually agreed upon time and price. The repurchase agreements
Institutional Money Market Funds | 27
Notes to financial statements
must be fully collateralized based on values that are marked-to-market daily. The collateral may be held by an agent bank under a tri-party agreement. It is the custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain market value equal to or greater than the resale price (including accrued interest). The repurchase agreements are collateralized by securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. There could be potential loss to the Fund in the event that the Fund is delayed or prevented from exercising its rights to dispose of the collateral, including the risk of a possible decline in the value of the underlying obligations during the period in which the Fund seeks to assert its rights.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund's commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund's fiscal year end. Therefore, a portion of the Fund's distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund's tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of January 31, 2022, the aggregate cost of all investments for federal income tax purposes was $344,514,605 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $ 57 |
| Gross unrealized losses | (6,606) |
| Net unrealized losses | $(6,549) |
28 | Institutional Money Market Funds
Notes to financial statements
Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At January 31, 2022, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:
| Paid-in capital | Total distributable earnings |
| $27,010 | $(27,010) |
Class allocations
The separate classes of shares offered by the Fund differ principally in shareholder servicing and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
| ■ | Level 1 – quoted prices in active markets for identical securities |
| ■ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
| ■ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of January 31, 2022:
| Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
| Assets | ||||
| Investments in: | ||||
| Closed end municipal bond fund obligations | $0 | $ 9,000,000 | $0 | $ 9,000,000 |
| Municipal obligations | 0 | 326,308,056 | 0 | 326,308,056 |
| Repurchase agreements | 0 | 9,200,000 | 0 | 9,200,000 |
| Total assets | $0 | $344,508,056 | $0 | $344,508,056 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended January 31, 2022, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Allspring Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection
Institutional Money Market Funds | 29
Notes to financial statements
with the Fund’s operations. As compensation for its services under the investment management agreement, Allspring Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
| Average daily net assets | Management fee |
| First $5 billion | 0.150% |
| Next $5 billion | 0.140 |
| Next $5 billion | 0.130 |
| Next $85 billion | 0.125 |
| Over $100 billion | 0.120 |
Prior to June 1, 2021, the management fee rate was as follows:
| Average daily net assets | Management fee |
| First $5 billion | 0.150% |
| Next $5 billion | 0.140 |
| Over $10 billion | 0.130 |
For the year ended January 31, 2022, the management fee was equivalent to an annual rate of 0.15% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase.
Administration fees
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
| Class-level administration fee | |
| Administrator Class | 0.10% |
| Institutional Class | 0.08 |
| Service Class | 0.12 |
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through May 31, 2022 to waive fees and/or reimburse expenses to the extent necessary to cap expenses. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. In addition to the contractual waivers and/or reimbursements, Allspring Funds Management also voluntarily waived certain class-level expenses during the year ended January 31, 2022 in order to maintain a positive yield. These voluntary class-level waivers may be discontinued at any time. The contractual expense caps are as follows:
30 | Institutional Money Market Funds
Notes to financial statements
| Expense ratio caps | |
| Administrator Class | 0.30% |
| Institutional Class | 0.20 |
| Service Class | 0.45 |
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Service Class of the Fund is charged a fee at an annual rate of 0.25% of its average daily net assets. Administrator Class is charged a fee at an annual rate of 0.10% of its average daily net assets. A portion of these total shareholder servicing fees were paid to affiliates, and to certain entities that were affiliates of the Fund until November 1, 2021.
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund had $473,670,000, $483,920,000 and $0 in interfund purchases, sales and net realized gains (losses), respectively, during the year ended January 31, 2022.
Other transactions
On August 14, 2020, Service Class of the Fund was reimbursed by Allspring Funds Management in the amount of $23,941. The reimbursement was made in connection with resolving certain fee reimbursements.
5. DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid during the years ended January 31, 2022 and January 31, 2021 were as follows:
| Year ended January 31 | ||
| 2022 | 2021 | |
| Ordinary income | $20,183 | $ 32,248 |
| Tax-exempt income | 30,137 | 898,926 |
As of January 31, 2022, the components of distributable earnings on a tax basis were as follows:
| Undistributed ordinary income | Undistributed tax-exempt income | Undistributed long-term gain | Unrealized losses |
| $90,772 | $23,975 | $16,179 | $(6,549) |
6. INDEMNIFICATION
Under the Fund's organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
7. CORONAVIRUS (COVID-19) PANDEMIC
On March 11, 2020, the World Health Organization announced that it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general. There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial markets.
Institutional Money Market Funds | 31
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring Municipal Cash Management Money Market Fund (formerly, Wells Fargo Municipal Cash Management Money Market Fund) (the Fund), one of the funds constituting Allspring Funds Trust (formerly, Wells Fargo Funds Trust), including the portfolio of investments, as of January 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of January 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of January 31, 2022, by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
March 30, 2022
32 | Institutional Money Market Funds
Other information (unaudited)
TAX INFORMATION
For the fiscal year ended January 31, 2022, $6,321 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.
For the fiscal year ended January 31, 2022, $13,862 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.
Pursuant to Section 852 of the Internal Revenue Code, 83% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended January 31, 2022.
PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at allspringglobal.com.
Institutional Money Market Funds | 33
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Allspring family of funds, which consists of 139 mutual funds comprising the Allspring Funds Trust, Allspring Variable Trust, Allspring Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information1. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
| Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
| William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A |
| Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A |
| Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chair, since 2019 | Retired. Chairman of the Board of CIGNA Corporation from 2009 to 2021, and Director from 2005 to 2008. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Fellowship of Christian Athletes. Mr. Harris is a certified public accountant (inactive status). | N/A |
| David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business (Emeritus), Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A |
34 | Institutional Money Market Funds
Other information (unaudited)
| Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
| Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor since 1993, Wharton School of the University of Pennsylvania. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously taught at Cornell University from 1978 to 1993. | N/A |
| Timothy J. Penny (Born 1951) | Trustee, since 1996; Chair, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A |
| James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A |
| Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019. Interim President of the McKnight Foundation from January to September 2020. McKnight Foundation Consultant, November 2020 to February 2021. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Consultant (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Institutional Money Market Funds | 35
Other information (unaudited)
Officers2
| Name and year of birth | Position held and length of service | Principal occupations during past five years or longer |
| Andrew Owen (Born 1960) | President, since 2017 | President, Chief Executive Officer and Director of Allspring Funds Management, LLC since 2017 and co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, since 2019. Prior thereto, Head of Affiliated Managers, Allspring Global Investments, from 2014 to 2019 and Executive Vice President responsible for marketing, investments and product development for Allspring Funds Management, LLC, from 2009 to 2014. In addition, Mr. Owen was an Executive Vice President of Wells Fargo & Company from 2014 to 2021. |
| Jeremy DePalma (Born 1974) | Treasurer, since 2012 (for certain funds in the Fund Complex); since 2021 (for the remaining funds in the Fund Complex) | Senior Vice President of Allspring Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration. |
| Kate McKinley (Born 1977) | Chief Legal Officer, since 2021 | Chief Legal Officer of Allspring Global Investments since 2021. Prior thereto, held various roles at State Street Global Advisors beginning in 2010, including serving as Senior Vice President and General Counsel from 2019 to 2021, and Chief Operating Officer of the Institutional Client Group from 2016 - 2019. Prior to working at State Street Global Advisors served as Assistant General Counsel for Bank of America Corporation from 2005 to 2010 and as an Associate at WilmerHale from 2002 to 2005. |
| Christopher Baker (Born 1976) | Chief Compliance Officer, since 2022 | Global Chief Compliance Officer for Allspring Global Investments since 2022. Prior thereto, Chief Compliance Officer for State Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015 Vice President, Global Head of Investment and Marketing Compliance for State Street Global Advisors. |
| Matthew Prasse (Born 1983) | Secretary, since 2021 | Senior Counsel of the Allspring Legal Department since 2021. Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021. Previously, Counsel for Barings LLC from 2015 to 2018. Prior to joining Barings, Associate at Morgan, Lewis & Bockius LLP from 2008 to 2015. |
1 The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at allspringglobal.com.
2 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to 2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
36 | Institutional Money Market Funds
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund's website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2022 Allspring Global Investments Holdings, LLC. All rights reserved.
PAR-0222-00693 03-22
A307/AR307 01-22
A307/AR307 01-22
Annual Report
January 31, 2022
Retail Money Market Funds
| ■ | Allspring National Tax-Free Money Market Fund |
Contents
| 2 | |
| 6 | |
| 10 | |
| 11 | |
| Financial statements | |
| 23 | |
| 24 | |
| 25 | |
| 26 | |
| 30 | |
| 35 | |
| 36 |
The views expressed and any forward-looking statements are as of January 31, 2022, unless otherwise noted, and are those of the Fund's portfolio managers and/or Allspring Global Investments. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Allspring Global Investments disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.
Retail Money Market Funds | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring National Tax-Free Money Market Fund for the 12-month period that ended January 31, 2022. Global stocks yielded mixed results as the global economy continued to emerge from the haze of COVID-19. Tailwinds were provided by global stimulus programs, a rapid vaccination rollout, and recovering consumer and corporate sentiment, only to be dampened by persistent inflation. Bonds also saw mixed performance during the period.
For the 12-month period, equities had mixed returns as policymakers continued to fight the effects of COVID-19. U.S. stocks led both non-U.S. developed market equities and emerging market stocks. Returns by fixed-income securities were also a mix of positive and negative returns. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 23.29%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 3.63%, while the MSCI EM Index (Net) (USD)3 had weaker performance with a -7.23% loss. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -2.97%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned -7.92%, the Bloomberg Municipal Bond Index6 lost -1.89%, and the ICE BofA U.S. High Yield Index7 returned 2.08%.
Efforts to contain COVID-19 drove market performance.
February 2021 saw major domestic equity indexes driven higher on the hope of a new stimulus bill, improving COVID-19 vaccination numbers, and the gradual reopening of the economy. Most S&P 500 companies reported better-than-expected earnings, with positive surprises coming from the financials, information technology, health care, and materials sectors. Japan saw its economy strengthen as a result of strong export numbers. Meanwhile, crude oil prices continued their climb, rising more than 25% for the year. Domestic government bonds experienced a sharp sell-off in late February as markets priced in a more robust economic recovery and higher future growth and inflation expectations.
The passage of the massive domestic stimulus bill highlighted March activity, leading to increased forecasts for U.S. growth in 2021. Domestic employment surged as COVID-19 vaccinations and an increasingly open economy spurred hiring. A majority of U.S. small companies reported they were operating at pre-pandemic capacity or higher. Value stocks continued their outperformance of growth stocks in the month, continuing the trend that started in late 2020. Meanwhile, most major developed global equity indexes were up month to date on the back of rising optimism regarding the outlook for global growth. While the U.S. and the U.K. have been the most successful in terms of the vaccine rollout, even in markets where the vaccine has lagged, such as in the eurozone and Japan, equity indexes in many of those countries have also been in positive territory for the year through March 2021.
| 1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index. |
| 2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
| 3 | The MSCI Emerging Markets (EM) Index (Net) (USD) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
| 4 | The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.-dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
| 5 | The Bloomberg Global Aggregate ex-USD Index (unhedged) is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
| 6 | The Bloomberg Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index. |
| 7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2022. ICE Data Indices, LLC. All rights reserved. |
2 | Retail Money Market Funds
Letter to shareholders (unaudited)
Equity markets produced another strong showing in April. Domestically, the continued reopening of the economy had a strong impact on positive equity performance, as people started leaving their households and jobless claims continued to fall. Domestic corporate bonds performed well and the U.S. dollar weakened. Meanwhile, the U.S. government continued to seek to invest in the recovery, this time by outlining a package of over $2 trillion to improve infrastructure. The primary headwind in April was inflation, as investors tried to determine the breadth and longevity of recent price increases. Developed Europe was supported by a meaningful increase in the pace of vaccinations. Unfortunately many emerging market countries were not as successful. India in particular saw COVID-19 cases surge, serving as an example of the need to get vaccinations rolled out to less developed nations.
Vaccine rollouts continued in May, leading to loosened restrictions globally. As a result, equity markets in general saw a minor increase in returns. Concerns that the continued economic rebound could result in inflation increases becoming more than transitory were supported by the higher input costs businesses were experiencing. Meanwhile, those inflation concerns were tempered by the U.S. Federal Reserve (Fed), which stayed steady on its view of the economy and eased fears of a sudden and substantial policy change. Positive performance in the emerging market equity space was supported this month by steady consumer demand and strong commodity prices. Fixed-income markets were also slightly positive for the month, driven by inflation uncertainty and a softer U.S. dollar.
June witnessed the S&P 500 Index reach a new all-time high. 2021 economic growth and inflation forecasts were revised higher to reflect a strong economic recovery and some supply and demand imbalances. Late June saw a deal reached on a U.S. infrastructure package of approximately $1 trillion for road, bridge, and broadband network upgrades over the next eight years. The Fed’s June meeting yielded no change to policy, but its projections pointed to a possible interest rate rise in 2023. This, combined with a rebound in economic activity and investors searching for yield, led to U.S. Treasury yields being down for the month. Many European and Asian countries saw vaccination momentum increase, while the U.K. dealt with a rise in COVID-19 infections, specifically the Delta variant. Meanwhile, crude oil jumped over 10% in June on the back of the pickup in global economic activity and the Organization of the Petroleum Exporting Countries’ (OPEC) slow pace of supply growth.
July began the month seeing vaccinations making progress, as several major developed countries eased restrictions, only to be threatened again by the spread of COVID-19’s Delta variant. Inflation continued to climb, aided by the continued supply bottleneck in the face of high demand. As it pertains to the equity area of the market, U.S. equities led the way in positive return territory followed by international developed markets. In contrast, emerging markets were well in negative territory for the month, hindered by China’s plans for new regulations on a number of sectors, specifically education and technology. The U.S. 10-year Treasury bond yield continued to decline as strong demand swallowed up supply. After hitting a multiyear high earlier in the month, oil prices leveled off following an agreement by OPEC to raise oil production starting in August.
The Delta variant of COVID-19 produced outbreaks globally in August, increasing the potential for increased market volatility and bringing into question the ongoing economic recovery. Domestically, the U.S. economy continued to stay strong in the face of the Delta variant, continued inflationary pressures, and worries over Hurricane Ida. Emerging market equities experienced elevated volatility, largely influenced by China’s regulatory stance. Emerging market equities started the month with poor performance but rebounded to end the month in positive territory. Municipal debt experienced its first monthly performance drop since February 2021, slowing a rally that made it one of the best-performing sectors of the bond market. In the commodity segment of the market, crude oil fell sharply during the month on the back of dampened expectations as a result of the Delta variant but was still a leading asset-class performer for the year through August 2021.
Global markets suffered their broadest retreat in a year during September, with the exception of commodities. Concerns over inflation and the interest rate outlook depressed investor confidence and hurt performance. Emerging markets declined on concerns over the continued supply chain disruptions and worries over higher energy and food prices. Meanwhile, the Fed indicated it would slow the pace of asset purchases in the near future (pointing towards November). All eyes domestically were fixed on the raising of the debt ceiling, the 2022 budget plan, and the ongoing debate over the infrastructure package. Contrary to most asset classes, commodities thrived in September, driven by sharply higher energy prices.
“ Municipal debt experienced its first monthly performance drop since February 2021, slowing a rally that made it one of the best-performing sectors of the bond market.”
Retail Money Market Funds | 3
Letter to shareholders (unaudited)
October’s key themes continued to be elevated inflation pressures and a supply bottleneck, but strong earnings provided a bright spot in the markets. Earnings releases in the U.S. were generally strong and consumer confidence was high. The Fed reaffirmed its plans to taper quantitative easing to a stop by mid-2022. Meanwhile, elevated inflation figures were considered transitory by the Fed. Similar to the U.S., the eurozone and many Asian countries saw positive earnings but were facing inflation pressures caused by supply bottlenecks while also experiencing energy price increases amid natural gas shortages. Globally, government bond yields rose as central banks prepared to lower monetary policy accommodation in the face of rising inflationary pressures. As previously referenced, positive commodity performance was driven by sharply higher energy costs.
November was dominated by rising COVID-19 hospitalizations and concerns regarding the Omicron variant. Most major asset classes, both domestically and internationally, declined in November with two exceptions: U.S. investment-grade bonds and Treasury Inflation-Protected Securities. The United Nations Climate Change Conference (COP26) took place during the month with hopes of agreement among countries to limit global warming. While several initiatives were discussed, the conference ultimately ended without the specifics required to instill confidence that the limiting of global warming would succeed. In the U.S., President Biden signed a long-awaited infrastructure bill to upgrade U.S. roads, bridges, and railways. Meanwhile, the Consumer Price Index1, a measure of domestic inflation conditions, jumped to its highest level in 31 years. While the threat of consistently high inflation led the Fed to discuss a faster pace of tapering, the Omicron strain makes that less likely to occur. Commodities came in negative for the month, largely driven by sharp declines in oil prices (and energy costs in general) as well as precious metals.
Global volatility in December lessened as data indicated a lower risk of severe disease and death as a result of the Omicron variant. Even so, a number of countries introduced restrictions on sectors such as travel and hospitality to try to reduce the spread. In the U.S., data indicated that the overall domestic economy remained stable and corporate earnings remained robust. Consumer spending capability looked strong heading into 2022 on the back of elevated household savings and the lowest ratio of U.S. household liabilities to assets since 1973. U.S. corporate and high-yield bonds produced positive returns for the month while Treasuries declined. Bonds were strongly affected by the projection of three 25-basis-point (bp; 100 bps equal 1.00%) policy rate hikes in 2022 by senior Federal Open Market Committee members, contrary to just one hike as previously believed.
Key themes in the first month of 2022 were the potential U.S. interest rate hikes and the Russia-Ukraine conflict. Comments from the Fed suggested a hike in interest rates in March is now likely. Meanwhile, Russia’s potential invasion of Ukraine, could threaten to disrupt its massive energy supplies and drive demand from non-Russian oil-producing countries. Elsewhere overseas, Europe saw food and energy prices spike, leading to rising inflation to match that being experienced in the U.S. Within fixed income, corporate bonds struggled in January and underperformed government bonds, as investors focused on continued elevated inflation and ongoing uncertainty over the U.S. monetary path.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Allspring Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
“ Bonds were strongly affected by the projection of three 25-basis-point (bp; 100 bps equal 1.00%) policy rate hikes in 2022 by senior Federal Open Market Committee members, contrary to just one hike as previously believed.”
| 1 | The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index. |
4 | Retail Money Market Funds
Letter to shareholders (unaudited)
Information on transaction closing.
On November 1, 2021, GTCR LLC and Reverence Capital Partners, L.P., announced the beginning of Allspring Global Investments™, with the close of the transaction to acquire Wells Fargo Funds Management, LLC; Wells Capital Management, LLC; Galliard Capital Management, LLC.; Wells Fargo Asset Management (International) Ltd.; Wells Fargo Asset Management Luxembourg S.A.; and Wells Fargo Funds Distributor, LLC, as well as Wells Fargo Bank, N.A.’s business of acting as trustee to its collective investment trusts and all related Wells Fargo Asset Management legal entities. The transaction closed on November 1, 2021, forming Allspring Global Investments, a privately held asset management firm with $575 billion in AUM1 as of December 31, 2021.
Allspring Global Investments™ is a leading independent asset management firm with a full breadth of investment capabilities across diverse asset classes, serving the needs of its institutional and wealth management clients around the world. Allspring operates across 18 offices globally supported by more than 480 investment professionals. Allspring and its investment teams provide a broad range of differentiated investment products and solutions to help its diverse range of clients meet their investment objectives.
As part of this transition, all mutual funds within the Wells Fargo Funds family were rebranded as Allspring Funds. Each individual fund had “Wells Fargo” removed from its fund name and replaced with “Allspring.” The fund name changes went into effect on December 6, 2021.
Allspring Global Investments is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
President
Allspring Funds
Notice to Shareholders
Russia launched a large-scale invasion of Ukraine on February 24, 2022. As a result of this military action, the United States and many other countries have instituted various economic sanctions against Russian individuals and entities. The situation has led to increased financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities, such as oil and natural gas. The extent and duration of the military action, resulting sanctions imposed, other punitive action taken and the resulting market disruptions cannot be easily predicted.
Our solidarity and support goes out to our impacted employees and the people affected in Ukraine and their families. Allspring has a dedicated team of investment professionals actively monitoring the situation for any new developments and the potential impact to our clients and investment products. As the situation remains fluid, we are focused on the assessment of risks, valuation, and liquidity of impacted securities. Please visit our website at allspringglobal.com and click on “Russia-Ukraine Portfolio Impacts” for further information
For further information about your Fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
| 1 | As of December 31, 2021, assets under management (AUM) includes $91.6 billion from Galliard Capital Management, LLC, an investment advisor that is not part of the Allspring trade name/GIPS firm. |
Retail Money Market Funds | 5
Performance highlights (unaudited)
| Investment objective | The Fund seeks current income exempt from federal income tax, while preserving capital and liquidity. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | James Randazzo, Jeffrey L. Weaver, CFA®‡ |
| Average annual total returns (%) as of January 31, 2022 | ||||||
| Expense ratios1 (%) | ||||||
| Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
| Class A (NWMXX) | 7-28-2003 | 0.02 | 0.49 | 0.27 | 0.64 | 0.60 |
| Administrator Class (WNTXX) | 4-8-2005 | 0.02 | 0.70 | 0.39 | 0.37 | 0.30 |
| Premier Class (WFNXX) | 11-8-1999 | 0.02 | 0.77 | 0.43 | 0.25 | 0.20 |
| Service Class (MMIXX) | 8-3-1993 | 0.02 | 0.60 | 0.33 | 0.54 | 0.45 |
| 1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
| 2 | The manager has contractually committed through May 31, 2022, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.60% for Class A, 0.30% for Administrator Class, 0.20% for Premier Class and 0.45% for Service Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. The manager and/or its affiliates may also voluntarily waive all or a portion of any fees to which they are entitled and/or reimburse certain expenses as they may determine from time to time. Without these caps, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses. |
| Yield summary (%) as of January 31, 2022 | ||||
| Class A | Administrator Class | Premier Class | Service Class | |
| 7-day current yield1 | 0.01 | 0.01 | 0.01 | 0.01 |
| 7-day compound yield | 0.01 | 0.01 | 0.01 | 0.01 |
| 30-day simple yield | 0.01 | 0.01 | 0.01 | 0.01 |
| 30-day compound yield | 0.01 | 0.01 | 0.01 | 0.01 |
| 1 | The manager has contractually committed through May 31, 2022, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses and may also voluntarily waive or reimburse additional fees and expenses which may be discontinued or modified at any time without notice. Without these reductions, the Fund’s 7-day current yield would have been -0.54%, -0.28%, -0.17% and -0.40% for Class A, Administrator Class, Premier Class and Service Class, respectively. |
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 returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, allspringglobal.com.
Money market funds are sold without a front-end sales charge or contingent deferred sales charge. Other fees and expenses apply to an investment in the Fund and are described in the Fund’s current prospectus.
For retail money market funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
| ‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Retail Money Market Funds
Performance highlights (unaudited)
MANAGER'S DISCUSSION
The municipal money market space exhibited a welcome sense of calm during the period as investors continued to evaluate developments in the battle with COVID-19 and its variants throughout the year. The overwhelming fiscal and monetary policy response on the part of global central banks and governments in 2020 continued to have a profound impact on market dynamics in 2021. Interest rates in the short end of the market remained at extremely low absolute levels while demand for eligible investments easily outstripped supply in both the taxable and tax-exempt sectors. In contrast to 2020’s volatile markets, municipal money market yields remained generally range bound throughout the period.
With the Federal Open Market Committee (FOMC) maintaining the federal funds target rate in the 0.00% to 0.25% range for the entire period, there was little opportunity for tax-exempt rates to rise significantly, even during periods of seasonal weakness such as tax season in April. The SIFMA Index* began the period at 0.04%, or 44% of the 1-week London Interbank Offered Rate (LIBOR), and remained generally range-bound during the period as demand for overnight and weekly VRDNs** and tender option bonds (TOBs) remained robust. Yields on high-grade paper in the one-year space began the year at roughly 0.09% and remained range-bound as well.
| Portfolio composition as of January 31, 20221 |
| 1 | Figures represent the percentage of the Fund's total investments. These amounts are subject to change and may have changed since the date specified. |
With money market securities yielding next to zero, demand for tax-exempt income further out on the curve continued to grow. Municipal money market funds experienced roughly $19 billion in outflows during the period, falling to roughly $94 billion, according to Crane Data. In comparison, municipal bond funds were on a record-setting pace with roughly $101.7 billion in inflows during the period. This record-setting haul led to insatiable demand for tax-exempt securities, resulting in rich ratios throughout the yield curve.
While demand remained robust, new issue supply in the short-term note markets fell to roughly $31 billion, down roughly 37% from the previous year. With many municipal issuers flush with federal stimulus cash, there was less of a need to borrow in the cash flow markets. Many traditional borrowers such as the state of Texas skipped cash flow borrowing altogether during the year. This cut in supply helped push the yield on high-grade one-year notes to a multiyear low of 0.08% in mid-July.
| Effective maturity distribution as of January 31, 20221 |
| 1 | Figures represent the percentage of the Fund's total investments. These amounts are subject to change and may have changed since the date specified. |
| * | The Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index (SIFMA Index) is a seven-day high-grade market index composed of tax-exempt variable-rate demand obligations with certain characteristics. The index is calculated and published by Bloomberg. The index is overseen by SIFMA’s Municipal Swap Index Committee. You cannot invest directly in an index. |
| ** | Variable Rate Demand Notes (VRDNs) are debt securities commonly held within certain mutual funds. Like all bonds, VRDN values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes can be sudden and unpredictable. In addition to credit and interest rate risk, VRDNs are subject to municipal securities risk. |
Retail Money Market Funds | 7
Performance highlights (unaudited)
In the second half of the period, the extreme imbalance between supply and demand made it difficult for yields in the municipal markets to keep pace with taxable counterparts even as the U.S. Federal Reserve (Fed) began to pivot toward tapering asset purchases and indicating that interest rate hikes were on the horizon. Yields in the short end of the money market space remained well contained as the level of supply and demand imbalances became increasingly more evident as the usage of the Fed’s reverse repurchase agreement program continued to swell.
Heading into year-end, yields in the municipal money market space finally began to show some signs of life, with the SIFMA Index rising to a year-to-date high of 0.11% (1.57% of 1-week LIBOR) due to typical year-end pressures and a larger-than-anticipated new issue calendar. Yields on high-grade one-year paper finished out the year at 0.20%, just 2 basis points lower than at the start of the year.
However, the municipal markets would experience a stunning reversal in sentiment during the final month of the period. As municipal bond funds began to experience moderate outflows in mid-January, demand for tax-exempts began to show clear signs of weakness. As a result, inventory levels of VRDNs and TOBs surged at month-end and the level of secondary market selling of short-term notes accelerated. Rates on overnight paper jumped to 0.12% and the SIFMA Index rose modestly to 0.06% to finish the month. Further out on the curve, the price action was more pronounced with yields on high-grade notes finishing the month at 0.50%, up from 0.20% at year-end.
During the period, we continued to emphasize portfolio liquidity by targeting our purchases predominantly in daily and weekly VRDNs and TOBs. With low absolute rates and a relatively flat yield curve, we remained very selective in our term investments. We continued to favor adding high-grade commercial paper in the one- to three-month space while selectively adding fixed-rate notes beyond six months. As we head into 2022, we believe our portfolios should be well positioned to take advantage of higher short-term rates as market participants expect the FOMC to embark on a rate-hiking cycle in early to mid-year 2022.
8 | Retail Money Market Funds
Performance highlights (unaudited)
| Weighted average maturity as of January 31, 20221 |
| 22 days |
| 1 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
| Weighted average life as of January 31, 20221 |
| 24 days |
| 1 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
Retail Money Market Funds | 9
Fund expenses (unaudited)
As a shareholder of the Fund, you incur ongoing costs including management fees, shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from August 1, 2021 to January 31, 2022.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Beginning account value 8-1-2021 | Ending account value 1-31-2022 | Expenses paid during the period1 | Annualized net expense ratio | |
| Class A | ||||
| Actual | $1,000.00 | $1,000.19 | $0.50 | 0.10% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.70 | $0.51 | 0.10% |
| Administrator Class | ||||
| Actual | $1,000.00 | $1,000.19 | $0.50 | 0.10% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.70 | $0.51 | 0.10% |
| Premier Class | ||||
| Actual | $1,000.00 | $1,000.19 | $0.50 | 0.10% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.70 | $0.51 | 0.10% |
| Service Class | ||||
| Actual | $1,000.00 | $1,000.19 | $0.50 | 0.10% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.70 | $0.51 | 0.10% |
1 Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).
10 | Retail Money Market Funds
Portfolio of investments—January 31, 2022
| Principal | Value | ||||
| Closed end municipal bond fund obligations: 1.83% | |||||
| Nuveen AMT-Free Municipal Credit Income Fund MuniFund Preferred Shares Series D (50 shares) 0.26% 144Aø | $ 5,000,000 | $ 5,000,000 | |||
| Nuveen AMT-Free Quality Municipal Income Fund Preferred Shares Series C (100 shares) 0.12% 144Aø | 10,000,000 | 10,000,000 | |||
| Total Closed end municipal bond fund obligations (Cost $15,000,000) | 15,000,000 |
| Interest rate | Maturity date | ||||
| Municipal obligations: 96.25% | |||||
| Alabama: 0.55% | |||||
| Variable rate demand notes ø: 0.55% | |||||
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XL0098 (Utilities revenue, Royal Bank of Canada LIQ) 144A | 0.12% | 12-1-2022 | 4,500,000 | 4,500,000 | |
| Arizona: 6.15% | |||||
| Variable rate demand notes ø: 6.15% | |||||
| Arizona Health Facility Authority Floater Series 2015 XF 2050 (Health revenue, Morgan Stanley Bank LIQ) 144A | 0.09 | 1-1-2037 | 19,000,000 | 19,000,000 | |
| Phoenix AZ IDA Various Mayo Clinic Series A (Health revenue, Bank of America NA SPA) | 0.11 | 11-15-2052 | 4,700,000 | 4,700,000 | |
| Royal Bank of Canada Municipal Products Incorporated (Health revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.09 | 2-1-2025 | 5,000,000 | 5,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF2537 (Utilities revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.10 | 12-1-2037 | 3,215,000 | 3,215,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XF2862 (Education revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.19 | 12-15-2047 | 18,398,763 | 18,398,763 | |
| 50,313,763 | |||||
| California: 9.62% | |||||
| Other municipal debt : 3.90% | |||||
| Los Angeles CA Department Airports Revenue Subordinated Bond Series A2 (Airport revenue) | 0.07 | 2-3-2022 | 17,475,000 | 17,475,000 | |
| Los Angeles CA Municipal Improvement Corporation Lease Revenue Series A-3 (GO revenue) | 0.09 | 2-15-2022 | 3,500,000 | 3,500,000 | |
| San Jose CA International Airport Series B (Airport revenue) | 0.12 | 2-3-2022 | 10,912,000 | 10,912,000 | |
| 31,887,000 | |||||
| Variable rate demand notes ø: 5.72% | |||||
| Bay Area Toll Authority Series E-1 (Transportation revenue, Bank of Tokyo-Mitsubishi LOC) | 0.05 | 4-1-2045 | 4,250,000 | 4,250,000 | |
| California CDA Uptown Newport Apartments Series 2017 AA & BB (Housing revenue, East West Bank LOC) | 0.10 | 3-1-2057 | 3,000,000 | 3,000,000 | |
| California Series A (GO revenue, State Street Bank & Trust Company LOC) | 0.03 | 5-1-2048 | 600,000 | 600,000 | |
| Los Angeles CA Department Water & Power Revenue Various Power System Subordinated Bond Series A5 (Utilities revenue, Bank of America NA SPA) | 0.09 | 7-1-2035 | 100,000 | 100,000 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 11
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Variable rate demand notes ø(continued) | |||||
| Riverside County CA Certificates Various Refunding Bond Public Safety (Miscellaneous revenue, Bank of America NA LOC) | 0.05% | 11-1-2039 | $ 585,000 | $ 584,942 | |
| San Joaquin CA Delta Community College Tender Option Bond Trust Receipts/Floater Certificates Series 2015-ZF0180 (GO revenue, JPMorgan Chase & Company LIQ) 144A | 0.08 | 8-1-2022 | 2,415,000 | 2,415,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2015-ZF0179 (GO revenue, JPMorgan Chase & Company LIQ) 144A | 0.08 | 8-1-2022 | 2,050,000 | 2,050,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2017-XF2466 (GO revenue, BAM Insured, Citibank NA LIQ) 144A | 0.10 | 8-1-2024 | 2,200,000 | 2,200,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XG0188 (GO revenue, Royal Bank of Canada LIQ) 144A | 0.09 | 2-1-2026 | 1,600,000 | 1,600,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2019-MIZ9002 (Tax revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.31 | 7-7-2036 | 17,000,000 | 17,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2019-XF2830 (GO revenue, Mizuho Capital Markets LLC LIQ) 144A | 0.19 | 10-1-2034 | 3,460,000 | 3,460,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-MIZ9012 (Housing revenue, Mizuho Capital Markets LLC LIQ) 144A | 0.31 | 10-1-2036 | 6,037,000 | 6,037,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-YX1142 (Tax revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.11 | 10-1-2049 | 2,555,000 | 2,555,000 | |
| Tender Option Bond Trust Receipts/Various States (Housing revenue, Mizuho Capital Markets LLC LIQ) 144A | 0.19 | 2-1-2036 | 938,000 | 938,000 | |
| 46,789,942 | |||||
| Colorado: 0.04% | |||||
| Variable rate demand notes ø: 0.04% | |||||
| Colorado Springs CO Utilities System Improvement Bonds Series 2008A (Utilities revenue, U.S. Bank NA SPA) | 0.06 | 11-1-2038 | 300,000 | 300,000 | |
| Connecticut: 0.97% | |||||
| Other municipal debt : 0.62% | |||||
| North Branford CT BAN (GO revenue) | 2.00 | 8-4-2022 | 5,000,000 | 5,047,062 | |
| Variable rate demand notes ø: 0.35% | |||||
| Connecticut Residual Interest Bond Floater Trust Series 2017-016 (Miscellaneous revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.18 | 6-1-2037 | 2,600,000 | 2,600,000 | |
| Connecticut State Housing Authority Various Subordinated Bond Series A-3 (Housing revenue, Bank of America NA SPA) | 0.06 | 5-15-2048 | 250,000 | 249,975 | |
| 2,849,975 | |||||
| Delaware: 0.01% | |||||
| Variable rate demand notes ø: 0.01% | |||||
| University of Delaware (Education revenue, TD Bank NA SPA) | 0.12 | 11-1-2035 | 100,000 | 100,000 |
The accompanying notes are an integral part of these financial statements.
12 | Retail Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| District of Columbia: 0.60% | |||||
| Variable rate demand notes ø: 0.60% | |||||
| Tender Option Bond Trust Receipts/Floater Certificates Series 2019-ZF2784 (Housing revenue, FHA Insured, Morgan Stanley Bank LIQ) 144A | 0.09% | 9-1-2039 | $ 2,800,000 | $ 2,800,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2019-ZF2785 (Housing revenue, FHA Insured, Morgan Stanley Bank LIQ) 144A | 0.09 | 9-1-2039 | 2,070,000 | 2,070,000 | |
| 4,870,000 | |||||
| Florida: 8.03% | |||||
| Variable rate demand notes ø: 8.03% | |||||
| Florida Local Government Finance Commission Pooled Loan Program Series A-1 (GO revenue) | 0.11 | 2-2-2022 | 4,450,000 | 4,450,000 | |
| Highlands County FL Health Facilities Authority Adventist Health System Series A-2 (Health revenue) | 0.06 | 11-15-2037 | 5,000,000 | 5,000,000 | |
| Highlands County FL Health Facilities Authority Adventist Health System Series I5 (Health revenue) | 0.06 | 11-15-2035 | 300,000 | 300,000 | |
| Highlands County FL Health Facilities Authority Adventist Health System Sunbelt Obligated Group Series 2012 I-2 (Health revenue) | 0.06 | 11-15-2032 | 600,000 | 600,000 | |
| Miami Dade County FL IDA Revenue Various Refunding Florida Power & Light Company Project (Utilities revenue) | 0.13 | 5-1-2046 | 1,500,000 | 1,500,000 | |
| Orlando Florida Commission Utility System Refunding Bond Series B (Utilities revenue, TD Bank NA SPA) | 0.05 | 10-1-2039 | 18,000,000 | 18,000,000 | |
| Seminole County FL Tender Option Bond Trust Receipts/Floater Certificates Series 2016-ZF0444 (Tax revenue, NPFGC Insured, JPMorgan Chase & Company LIQ) 144A | 0.12 | 4-1-2027 | 5,250,000 | 5,250,000 | |
| St. Lucie County FL Power & Light Company (Industrial development revenue) | 0.10 | 9-1-2028 | 1,685,000 | 1,685,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2017-XF2517 (Health revenue, Morgan Stanley Bank LIQ) 144A | 0.11 | 8-15-2047 | 10,130,000 | 10,130,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF2523 (Health revenue, Barclays Bank plc LIQ) 144A | 0.12 | 8-15-2047 | 5,090,000 | 5,090,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XG0173 (Health revenue, Credit Suisse LIQ) 144A | 0.11 | 10-1-2025 | 8,000,000 | 8,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XX1136 (Transportation revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.10 | 7-1-2049 | 2,375,000 | 2,375,000 | |
| Tender Option Bond Trust Receipts/Various States (Water & sewer revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.09 | 4-1-2029 | 3,255,000 | 3,255,000 | |
| 65,635,000 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 13
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Georgia: 0.97% | |||||
| Variable rate demand notes ø: 0.97% | |||||
| Dekalb County GA Series 2006-B ROC RR-II-R-11900 (Water & sewer revenue, AGM Insured, JPMorgan Chase & Company LIQ) 144A | 0.09% | 4-1-2023 | $ 2,500,000 | $ 2,500,000 | |
| Roswell GA Housing Authority Refunding Bonds Belcourt Limited Project A (Housing revenue, Northern Trust Company LOC) | 0.07 | 9-1-2027 | 5,400,000 | 5,400,000 | |
| 7,900,000 | |||||
| Idaho: 0.61% | |||||
| Variable rate demand notes ø: 0.61% | |||||
| Idaho Health Facilities Authority Hospital Trinity Health Credit Group Series D (Health revenue) | 0.10 | 12-1-2048 | 5,000,000 | 5,000,000 | |
| Illinois: 7.53% | |||||
| Variable rate demand notes ø: 7.53% | |||||
| Illinois Finance Authority Elmhurst Memorial Healthcare Series D (Health revenue, Bank of America NA LOC) | 0.05 | 1-1-2048 | 1,250,000 | 1,250,000 | |
| Illinois Finance Authority Revenue Various Refunding Bond Northwestern Memorial (Health revenue, Barclays Bank plc SPA) | 0.12 | 7-15-2055 | 10,000,000 | 10,000,000 | |
| Lake County IL MFHR Various Whispering Oaks Apartments Project (Housing revenue, FHLMC LIQ) | 0.06 | 11-1-2045 | 250,000 | 249,975 | |
| Quad Cities Illinois Regional EDA Augustana College Series 2005 (Education revenue, BMO Harris Bank NA LOC) | 0.07 | 10-1-2035 | 3,600,000 | 3,600,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates (Miscellaneous revenue, Bank of America NA LIQ) 144A | 0.11 | 3-1-2046 | 1,000,000 | 1,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2015-XF2202 (Transportation revenue, TD Bank NA LIQ) 144A | 0.11 | 1-1-2037 | 1,140,000 | 1,140,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2015-ZM0120 (Transportation revenue, Royal Bank of Canada LIQ) 144A | 0.12 | 7-1-2023 | 3,100,000 | 3,100,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2017-XG0108 (Tax revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.14 | 4-1-2046 | 8,735,000 | 8,735,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF0722 (Tax revenue, Royal Bank of Canada LIQ) 144A | 0.20 | 7-1-2026 | 7,900,000 | 7,900,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF2547 (Tax revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.10 | 6-15-2031 | 4,355,000 | 4,355,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XM0683 (Tax revenue, Bank of America NA LIQ) 144A | 0.20 | 1-1-2048 | 3,340,000 | 3,340,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XM0713 (Tax revenue, Morgan Stanley Bank LIQ) 144A | 0.18 | 1-1-2043 | 8,000,000 | 8,000,000 |
The accompanying notes are an integral part of these financial statements.
14 | Retail Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Variable rate demand notes ø(continued) | |||||
| Tender Option Bond Trust Receipts/Floater Certificates Series 2019-XM0863 (GO revenue, BAM Insured, JPMorgan Chase & Company LIQ) 144A | 0.09% | 12-1-2026 | $ 6,375,000 | $ 6,375,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XG0299 (Health revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.10 | 5-15-2050 | 2,500,000 | 2,500,000 | |
| 61,544,975 | |||||
| Indiana: 0.76% | |||||
| Variable rate demand notes ø: 0.76% | |||||
| Indiana Finance Authority Duke Energy Indiana Incorporated Series 2009A-4 (Industrial development revenue, Sumitomo Mitsui Banking Corporation LOC) | 0.12 | 12-1-2039 | 5,200,000 | 5,200,000 | |
| Indiana Finance Authority Various Refunding Bond Duke Energy Industry project A-3 (Industrial development revenue, Mizuho Bank Limited LOC) | 0.08 | 12-1-2039 | 250,000 | 249,975 | |
| Purdue University Indiana University Revenue Adjusted Student Facilities System Series A (Education revenue) | 0.05 | 7-1-2029 | 785,000 | 784,923 | |
| 6,234,898 | |||||
| Iowa: 1.47% | |||||
| Variable rate demand notes ø: 1.47% | |||||
| Iowa Finance Authority Midwestern Disaster Area Bio-America Incorporated Project (Industrial development revenue, Korea Development Bank LOC) 144A | 0.10 | 12-1-2041 | 12,000,000 | 12,000,000 | |
| Louisiana: 0.39% | |||||
| Variable rate demand notes ø: 0.39% | |||||
| East Baton Rouge Parish Louisiana Incorporate Various ExxonMobil Project Gulf (Industrial development revenue) | 0.11 | 12-1-2051 | 228,000 | 227,977 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2019-XM0735 (Water & sewer revenue, Bank of America NA LOC, Bank of America NA LIQ) 144A | 0.11 | 12-1-2045 | 3,000,000 | 3,000,000 | |
| 3,227,977 | |||||
| Maryland: 0.61% | |||||
| Variable rate demand notes ø: 0.61% | |||||
| Montgomery County MD Housing Opportunities Commission Single Family Mortgage Revenue Various Series C (Housing revenue, PNC Bank NA LOC) | 0.06 | 1-1-2041 | 5,000,000 | 5,000,000 | |
| Massachusetts: 1.72% | |||||
| Variable rate demand notes ø: 1.72% | |||||
| Massachusetts Housing Finance Agency Housing Revenue Various Single Family Housing Series 200 (Housing revenue) | 0.06 | 12-1-2048 | 6,000,000 | 6,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF2692 (Education revenue, Citibank NA LIQ) 144A | 0.07 | 7-1-2025 | 4,190,000 | 4,190,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XF2891 (Health revenue, Barclays Bank plc LOC, AGM Insured, Barclays Bank plc LIQ) 144A | 0.10 | 10-1-2045 | 3,845,000 | 3,845,000 | |
| 14,035,000 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 15
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Michigan: 0.92% | |||||
| Other municipal debt : 0.92% | |||||
| University of Michigan Series L-1 (Education revenue) | 0.11% | 3-3-2022 | $ 7,525,000 | $ 7,525,000 | |
| Minnesota: 1.32% | |||||
| Variable rate demand notes ø: 1.32% | |||||
| Burnsville MN Bridgeway Apartments Project Series 2003 (Housing revenue, FNMA LOC, FNMA LIQ) | 0.14 | 10-15-2033 | 2,375,000 | 2,375,000 | |
| Forest Lake MN Kilkenny Court Apartments Project Series 2008 (Housing revenue, FNMA LOC, FNMA LIQ) | 0.15 | 8-15-2038 | 4,160,000 | 4,160,000 | |
| Minnesota HEFAR Concordia University Series 6Q (Education revenue, U.S. Bank NA LOC) | 0.12 | 4-1-2037 | 1,400,000 | 1,400,000 | |
| Plymouth MN Lancaster Village Apartments Project Series 2001 (Housing revenue, FNMA LOC, FNMA LIQ) | 0.14 | 9-15-2031 | 2,865,000 | 2,865,000 | |
| 10,800,000 | |||||
| Mississippi: 0.98% | |||||
| Variable rate demand notes ø: 0.98% | |||||
| Perry County MS PCR Various Refunding Bond Leaf River Cellulose (GO revenue) 144A | 0.09 | 10-1-2041 | 8,000,000 | 8,000,000 | |
| Missouri: 1.31% | |||||
| Variable rate demand notes ø: 1.31% | |||||
| Tender Option Bond Trust Receipts/Floater Certificates Series 2015-XF2198 (Water & sewer revenue, Citibank NA LIQ) 144A | 0.14 | 5-1-2023 | 10,680,000 | 10,680,000 | |
| Montana: 0.43% | |||||
| Variable rate demand notes ø: 0.43% | |||||
| Floater/Residual Trust Tender Option Bond (Housing revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.31 | 6-1-2034 | 3,515,000 | 3,515,000 | |
| Nebraska: 1.28% | |||||
| Variable rate demand notes ø: 1.28% | |||||
| Nebraska Investment Finance Authority MFHR Apple Creek Associates Project Series 1985-A (Housing revenue, Northern Trust Company LOC) | 0.45 | 9-1-2031 | 10,500,000 | 10,500,000 | |
| Nevada: 2.10% | |||||
| Other municipal debt : 1.10% | |||||
| Nevada Housing Division Single Family Mortgage Revenue Senior Series D (Housing revenue, GNMA / FNMA / FHLMC Insured) | 0.25 | 12-1-2022 | 9,000,000 | 9,000,000 | |
| Variable rate demand notes ø: 1.00% | |||||
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-ZM0634 (GO revenue, Royal Bank of Canada LIQ) 144A | 0.09 | 12-1-2025 | 3,330,000 | 3,330,000 |
The accompanying notes are an integral part of these financial statements.
16 | Retail Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Variable rate demand notes ø(continued) | |||||
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XM0845 (GO revenue, BAM Insured, JPMorgan Chase & Company LIQ) 144A | 0.10% | 6-15-2026 | $ 3,870,000 | $ 3,870,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XM0866 (Tax revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.10 | 7-1-2026 | 1,000,000 | 1,000,000 | |
| 8,200,000 | |||||
| New Jersey: 3.12% | |||||
| Other municipal debt : 1.24% | |||||
| Burlington County NJ Bridge Commission Series 2021C (Miscellaneous revenue) | 2.00 | 11-10-2022 | 10,000,000 | 10,138,759 | |
| Variable rate demand notes ø: 1.88% | |||||
| Tender Option Bond Trust Receipts/Floater Certificates Series 2017-XF2495 (Miscellaneous revenue, BAM Insured, Morgan Stanley Bank LIQ) 144A | 0.11 | 7-1-2031 | 8,450,000 | 8,450,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XG0205 (Miscellaneous revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.09 | 6-15-2050 | 3,135,000 | 3,135,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-ZF1206 (Transportation revenue, BAM Insured, JPMorgan Chase & Company LIQ) 144A | 0.09 | 11-1-2028 | 3,795,000 | 3,795,000 | |
| 15,380,000 | |||||
| New York: 9.85% | |||||
| Other municipal debt : 2.71% | |||||
| Corinth NY Central School District BAN (GO revenue) | 1.25 | 7-22-2022 | 8,000,000 | 8,040,403 | |
| Delhi NY Central School District BAN (GO revenue) | 1.13 | 7-28-2022 | 8,968,747 | 9,010,630 | |
| Franklinville NY Central School District BAN (GO revenue) | 1.25 | 6-28-2022 | 5,100,000 | 5,121,897 | |
| 22,172,930 | |||||
| Variable rate demand notes ø: 7.14% | |||||
| New York Fiscal Subordinate Bond Series 2017A-6 (GO revenue, JPMorgan Chase & Company SPA) | 0.12 | 8-1-2044 | 3,190,000 | 3,190,000 | |
| New York HFA Revenue Various 8 East 102nd Street Housing Series A (Housing revenue, TD Bank NA LOC) | 0.05 | 5-1-2044 | 16,545,000 | 16,545,000 | |
| New York Metropolitan Transportation Authority Subordinate Bond Series 2012A-2 (Transportation revenue, Bank of Montreal LOC) | 0.09 | 11-15-2041 | 8,300,000 | 8,300,000 | |
| New York Transitional Finance Authority Future Tax Secured Tax-Exempt Bond Fiscal 2015 Subordinate Bonds Series A-3 (Tax revenue, Mizuho Bank Limited SPA) | 0.12 | 8-1-2043 | 2,100,000 | 2,100,000 | |
| New York Various Fiscal 2018 Subordinated Bond Series B-5 (GO revenue, Barclays Bank plc SPA) | 0.12 | 10-1-2046 | 6,000,000 | 6,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF2556 (Tax revenue, TD Bank NA LIQ) 144A | 0.08 | 9-15-2025 | 6,720,000 | 6,720,000 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 17
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Variable rate demand notes ø(continued) | |||||
| Triborough Bridge & Tunnel Authority Subordinated Bonds series B-2 (Transportation revenue, State Street Bank & Trust Company LOC) | 0.10% | 1-1-2032 | $ 600,000 | $ 600,000 | |
| Triborough Bridge & Tunnel Authority Subordinated Bonds Series B-2 (Transportation revenue, State Street Bank & Trust Company LOC) | 0.08 | 1-1-2032 | 14,950,000 | 14,950,000 | |
| 58,405,000 | |||||
| North Carolina: 0.90% | |||||
| Variable rate demand notes ø: 0.90% | |||||
| Charlotte NC Water & Sewer Tender Option Bond Trust Receipts/Certificates Series 2018-XG0170 (Water & sewer revenue, Royal Bank of Canada LIQ) 144A | 0.09 | 1-1-2026 | 2,430,000 | 2,430,000 | |
| Charlotte-Mecklenburg Hospital Authority Atrium Health Series G (Health revenue, JPMorgan Chase & Company SPA) | 0.12 | 1-15-2048 | 2,665,000 | 2,665,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2015-ZM0105 (Education revenue, Morgan Stanley Bank LIQ) 144A | 0.09 | 10-1-2055 | 2,250,500 | 2,250,500 | |
| 7,345,500 | |||||
| Ohio: 9.37% | |||||
| Other municipal debt : 1.79% | |||||
| Mahoning County OH BAN Various Purpose (GO revenue) | 1.00 | 9-8-2022 | 1,590,000 | 1,597,615 | |
| Milford OH Exempted Village School District BAN School Improvement (GO revenue) | 1.63 | 4-5-2022 | 13,000,000 | 13,032,396 | |
| 14,630,011 | |||||
| Variable rate demand notes ø: 7.58% | |||||
| Allen County OH Catholic Healthcare Series C (Health revenue, Bank of Montreal LOC) | 0.09 | 6-1-2034 | 1,200,000 | 1,200,000 | |
| Franklin County OH Trinity Health Group (Health revenue) | 0.10 | 12-1-2046 | 11,445,000 | 11,445,000 | |
| Ohio Adult Correctional Capital Facilities Various Lease Appropriation Building (Miscellaneous revenue) | 0.05 | 10-1-2040 | 10,000,000 | 10,000,000 | |
| Ohio Capital Facilities Lease Adult Correctional Building Fund Series C (Miscellaneous revenue) | 0.01 | 10-1-2036 | 10,000,000 | 10,000,000 | |
| Ohio Special Obligation Various Capital Facilities Lease (Miscellaneous revenue) | 0.05 | 12-1-2041 | 5,000,000 | 5,000,000 | |
| Royal Bank of Canada Municipal Products Incorporated Trust Series 1 (Health revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.10 | 1-15-2037 | 8,000,000 | 8,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2015-XF0225 (Water & sewer revenue, TD Bank NA LIQ) 144A | 0.11 | 11-15-2043 | 8,000,000 | 8,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2017-XF2438 (Education revenue, JPMorgan Chase & Company LIQ) 144A | 0.09 | 12-1-2024 | 2,000,000 | 2,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-MIZ9020 (Health revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.14 | 5-1-2022 | 3,985,000 | 3,985,000 | |
| Tender Option Bond Trust Receipts/Various States (Miscellaneous revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.19 | 12-15-2040 | 2,370,000 | 2,370,000 | |
| 62,000,000 |
The accompanying notes are an integral part of these financial statements.
18 | Retail Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Oregon: 1.41% | |||||
| Variable rate demand notes ø: 1.41% | |||||
| Oregon Housing & Community Services Department Mortgage Revenue Various Single Family Mortgage Program (Housing revenue, Sumitomo Mitsui Banking Corporation LOC) | 0.07% | 7-1-2037 | $ 2,000,000 | $ 2,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XM0813 (Health revenue, Royal Bank of Canada LIQ) 144A | 0.11 | 5-15-2027 | 4,895,000 | 4,895,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XM0814 (Education revenue, Royal Bank of Canada LIQ) 144A | 0.09 | 1-1-2028 | 4,605,000 | 4,605,000 | |
| 11,500,000 | |||||
| Pennsylvania: 1.98% | |||||
| Variable rate demand notes ø: 1.98% | |||||
| Floater/Residual Trust Tender Option Bond (Housing revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.31 | 11-1-2034 | 3,000,000 | 3,000,000 | |
| Lehigh County General Purpose Authority Hospital Revenue Various Lehigh Valley Health Network (Health revenue, Bank of America NA LOC) | 0.06 | 7-1-2049 | 600,000 | 599,940 | |
| Pennsylvania EDFA Exempt Facilities Refunding Bond Energy Supply LLC (Utilities revenue, MUFG Bank Limited LOC) | 0.16 | 12-1-2038 | 1,000,000 | 1,000,000 | |
| Pennsylvania Public School Building Authority Series A (Miscellaneous revenue, AGM Insured, Citibank NA LIQ) 144A | 0.12 | 12-1-2023 | 5,000,000 | 5,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2015-ZM0081 (Health revenue, Morgan Stanley Bank LIQ) 144A | 0.09 | 6-1-2044 | 1,700,000 | 1,700,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2016-ZF0504 (Water & sewer revenue, TD Bank NA LIQ) 144A | 0.18 | 8-15-2042 | 4,875,000 | 4,875,000 | |
| 16,174,940 | |||||
| South Carolina: 1.37% | |||||
| Other municipal debt : 0.61% | |||||
| South Carolina Association Governmental Organizations Certificate of Participation Series A (Miscellaneous revenue) | 3.00 | 3-1-2022 | 5,000,000 | 5,011,114 | |
| Variable rate demand notes ø: 0.76% | |||||
| South Carolina Educational Facilities Authority for Private Non-Profit Institutions Higher Learning Educational Facilities Spartanburg Methodist Series 2005 (Education revenue, Truist Bank LOC) | 0.14 | 8-1-2025 | 1,475,000 | 1,475,000 | |
| South Carolina Jobs EDA Institutional Business & Home Safety Project Series 2009 (Industrial development revenue, Truist Bank LOC) | 0.14 | 11-1-2034 | 735,000 | 735,000 | |
| Tender Option Bond Trust Receipts/Certificates Series 2021-XF0185 (Utilities revenue, Barclays Bank plc LIQ) 144A | 0.14 | 12-1-2051 | 3,960,000 | 3,960,000 | |
| 6,170,000 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 19
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Texas: 12.38% | |||||
| Other municipal debt : 7.74% | |||||
| Harris County TX Cultural Education Facilities Finance Corporation Revenue Series C-2 (Education revenue) | 0.10% | 2-17-2022 | $18,580,000 | $ 18,580,000 | |
| San Antonio TX Electric & Gas Revenue Series A (Utilities revenue) | 0.10 | 2-10-2022 | 20,000,000 | 20,000,000 | |
| University of Texas Permanent University Fund Series A (Education revenue) | 0.10 | 3-8-2022 | 12,000,000 | 12,000,000 | |
| University of Texas University Revenue Series A (Education revenue) | 0.10 | 2-2-2022 | 5,000,000 | 5,000,000 | |
| University of Texas University Revenue Series A (Education revenue) | 0.10 | 2-1-2022 | 7,700,000 | 7,700,000 | |
| 63,280,000 | |||||
| Variable rate demand notes ø: 4.64% | |||||
| Bexar County TX Housing Finance Corporation Palisades Park Apartments Project Series 2009 (Housing revenue, FHLMC LIQ) | 0.14 | 9-1-2039 | 3,400,000 | 3,400,000 | |
| North East Texas Independent School District Series A (Education revenue) | 0.16 | 3-16-2022 | 9,000,000 | 9,000,000 | |
| Port Arthur TX Navigation District Industrial Development Corporation Total Petrochemicals USA Incorporated Project (Industrial development revenue) | 0.09 | 6-1-2041 | 5,000,000 | 5,000,000 | |
| Port Corpus Christi TX Solid Waste Disposal Flint Hills Resources Project Series 2002-B (Resource recovery revenue) | 0.10 | 7-1-2029 | 4,200,000 | 4,200,000 | |
| Tender Option Bond Trust Receipts/Certificates Series 2021 MS0002 (Education revenue, Morgan Stanley Bank LIQ) 144A | 0.26 | 6-15-2056 | 5,000,000 | 5,000,000 | |
| Tender Option Bond Trust Receipts/Certificates Series 2021-XF1235 (Education revenue, Royal Bank of Canada LIQ) 144A | 0.09 | 2-15-2029 | 1,600,000 | 1,600,000 | |
| Tender Option Bond Trust Receipts/Various States (GO revenue, Royal Bank of Canada LIQ) 144A | 0.09 | 2-15-2029 | 1,455,000 | 1,455,000 | |
| Upper Trinity Regional Water District Texas Water Revenue Commercial Paper Notes 3-A2 Series A (Water & sewer revenue) | 0.10 | 3-4-2022 | 8,300,000 | 8,300,000 | |
| 37,955,000 | |||||
| Utah: 2.03% | |||||
| Variable rate demand notes ø: 2.03% | |||||
| Royal Bank of Canada Municipal Products Incorporated Trust Series E-142 (Utilities revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.09 | 5-1-2022 | 16,600,000 | 16,600,000 | |
| Vermont: 0.27% | |||||
| Variable rate demand notes ø: 0.27% | |||||
| Vermont Educational & Health Buildings Financing Agency Landmark College Project Series 2008-A (Education revenue, TD Bank NA LOC) | 0.12 | 7-1-2033 | 2,200,000 | 2,200,000 | |
| Virginia: 1.26% | |||||
| Variable rate demand notes ø: 1.26% | |||||
| Floater/Residual Trust Tender Option Bond Series 2020-MIZ9025 (Health revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.13 | 11-1-2035 | 2,030,000 | 2,030,000 |
The accompanying notes are an integral part of these financial statements.
20 | Retail Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Variable rate demand notes ø(continued) | |||||
| Tender Option Bond Trust Receipts/Various States (Education revenue, Bank of America NA LIQ) 144A | 0.08% | 9-1-2051 | $ 7,310,000 | $ 7,310,000 | |
| Virginia MFHR Series M-031 Class A (Housing revenue, FHLMC LIQ) 144A | 0.09 | 12-15-2045 | 980,000 | 980,000 | |
| 10,320,000 | |||||
| Wisconsin: 3.94% | |||||
| Variable rate demand notes ø: 3.94% | |||||
| Tender Option Bond Trust Receipts/Floater Certificates Series 2015-XF0127 (Health revenue, JPMorgan Chase & Company LIQ) 144A | 0.09 | 9-29-2022 | 3,815,000 | 3,815,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF2634 (Health revenue, Credit Suisse LIQ) 144A | 0.08 | 8-15-2025 | 2,000,000 | 2,000,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2019-XF2831 (Housing revenue, Mizuho Capital Markets LLC LIQ) 144A | 0.19 | 7-1-2029 | 1,800,000 | 1,800,000 | |
| Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XL0148 (Health revenue, Barclays Bank plc LOC, AGM Insured, Barclays Bank plc LIQ) 144A | 0.10 | 6-1-2045 | 2,250,000 | 2,250,000 | |
| Tender Option Bond Trust Receipts/Various States (Education revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.19 | 12-15-2040 | 1,915,000 | 1,915,000 | |
| University of Wisconsin Hospitals and Clinics Authority Revenue Various Refunding Bond Series C (Health revenue, BMO Harris Bank NA SPA) | 0.12 | 4-1-2048 | 9,000,000 | 9,000,000 | |
| Wisconsin Housing & EDA Housing Revenue Series A (Housing revenue) | 0.20 | 11-1-2038 | 135,000 | 135,000 | |
| Wisconsin Series 2019A (GO revenue) | 0.06 | 5-1-2029 | 11,300,000 | 11,300,000 | |
| 32,215,000 | |||||
| Total Municipal obligations (Cost $786,953,846) | 786,953,846 | ||||
| Repurchase agreements^^: 1.47% | |||||
| MUFG Securities Canada Limited, dated 1-31-2022, maturity value $12,000,017 | 0.05 | 2-1-2022 | 12,000,000 | 12,000,000 | |
| Total Repurchase agreements (Cost $12,000,000) | 12,000,000 | ||||
| Total investments in securities (Cost $813,953,846) | 99.55% | 813,953,846 | |||
| Other assets and liabilities, net | 0.45 | 3,672,434 | |||
| Total net assets | 100.00% | $817,626,280 |
| 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. |
| ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
| ^^ | Collateralized by U.S. government securities, 0.00% to 6.38%, 6-16-2022 to 2-15-2051, fair value including accrued interest is $12,240,000. |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 21
Portfolio of investments—January 31, 2022
| Abbreviations: | |
| AGM | Assured Guaranty Municipal |
| BAM | Build America Mutual Assurance Company |
| BAN | Bond anticipation notes |
| CDA | Community Development Authority |
| EDA | Economic Development Authority |
| EDFA | Economic Development Finance Authority |
| FHA | Federal Housing Administration |
| FHLMC | Federal Home Loan Mortgage Corporation |
| FNMA | Federal National Mortgage Association |
| GNMA | Government National Mortgage Association |
| GO | General obligation |
| HEFAR | Higher Education Facilities Authority Revenue |
| HFA | Housing Finance Authority |
| IDA | Industrial Development Authority |
| LIQ | Liquidity agreement |
| LOC | Letter of credit |
| MFHR | Multifamily housing revenue |
| NPFGC | National Public Finance Guarantee Corporation |
| PCR | Pollution control revenue |
| SPA | Standby purchase agreement |
The accompanying notes are an integral part of these financial statements.
22 | Retail Money Market Funds
Statement of assets and liabilities—January 31, 2022
| Assets | |
Investments in unaffiliated securities, at amortized cost | $ 813,953,846 |
Cash | 298,115 |
Receivable for investments sold | 4,187,443 |
Receivable for interest | 512,563 |
Receivable for Fund shares sold | 230,158 |
Receivable from manager | 50,191 |
Prepaid expenses and other assets | 9,778 |
Total assets | 819,242,094 |
| Liabilities | |
Payable for Fund shares redeemed | 1,421,785 |
Administration fees payable | 69,696 |
Dividends payable | 3,496 |
Accrued expenses and other liabilities | 120,837 |
Total liabilities | 1,615,814 |
Total net assets | $817,626,280 |
| Net assets consist of | |
Paid-in capital | $ 817,682,258 |
Total distributable loss | (55,978) |
Total net assets | $817,626,280 |
| Computation of net asset value per share | |
Net assets – Class A | $ 84,531,970 |
Shares outstanding – Class A1 | 84,522,647 |
Net asset value per share – Class A | $1.00 |
Net assets – Administrator Class | $ 108,156,922 |
Shares outstanding – Administrator Class1 | 108,144,789 |
Net asset value per share – Administrator Class | $1.00 |
Net assets – Premier Class | $ 559,264,222 |
Shares outstanding – Premier Class1 | 559,202,461 |
Net asset value per share – Premier Class | $1.00 |
Net assets – Service Class | $ 65,673,166 |
Shares outstanding – Service Class1 | 65,665,925 |
Net asset value per share – Service Class | $1.00 |
| 1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 23
Statement of operations—year ended January 31, 2022
| Investment income | |
Interest | $ 1,071,835 |
| Expenses | |
Management fee | 1,273,584 |
| Administration fees | |
Class A | 204,779 |
Administrator Class | 102,320 |
Premier Class | 470,405 |
Service Class | 78,778 |
| Shareholder servicing fees | |
Class A | 232,704 |
Administrator Class | 97,856 |
Service Class | 164,121 |
Custody and accounting fees | 48,528 |
Professional fees | 55,690 |
Registration fees | 136,734 |
Shareholder report expenses | 19,450 |
Trustees’ fees and expenses | 19,272 |
Other fees and expenses | 24,686 |
Total expenses | 2,928,907 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level | (1,269,461) |
Class A | (362,333) |
Administrator Class | (119,748) |
Service Class | (190,420) |
Net expenses | 986,945 |
Net investment income | 84,890 |
Net realized gains on investments | 118,683 |
Net increase in net assets resulting from operations | $ 203,573 |
The accompanying notes are an integral part of these financial statements.
24 | Retail Money Market Funds
Statement of changes in net assets
| Year ended January 31, 2022 | Year ended January 31, 2021 | |||
| Operations | ||||
Net investment income | $ 84,890 | $ 3,873,355 | ||
Net realized gains on investments | 118,683 | 212,135 | ||
Net increase in net assets resulting from operations | 203,573 | 4,085,490 | ||
| Distributions to shareholders from | ||||
| Net investment income and net realized gains | ||||
Class A | (21,610) | (290,972) | ||
Administrator Class | (25,998) | (353,108) | ||
Premier Class | (138,801) | (3,237,560) | ||
Service Class | (16,045) | (195,932) | ||
Total distributions to shareholders | (202,454) | (4,077,572) | ||
| Capital share transactions | Shares | Shares | ||
| Proceeds from shares sold | ||||
Class A | 19,081,495 | 19,081,495 | 48,992,755 | 48,992,755 |
Administrator Class | 82,252,702 | 82,252,702 | 28,381,498 | 28,381,498 |
Premier Class | 239,015,930 | 239,015,930 | 742,724,878 | 742,724,878 |
Service Class | 4,336,224 | 4,336,224 | 3,786,718 | 3,786,718 |
| 344,686,351 | 823,885,849 | |||
| Reinvestment of distributions | ||||
Class A | 20,678 | 20,678 | 286,044 | 286,044 |
Administrator Class | 25,556 | 25,556 | 347,010 | 347,010 |
Premier Class | 83,214 | 83,214 | 2,209,973 | 2,209,973 |
Service Class | 3,828 | 3,828 | 56,873 | 56,873 |
| 133,276 | 2,899,900 | |||
| Payment for shares redeemed | ||||
Class A | (35,489,215) | (35,489,215) | (43,994,444) | (43,994,444) |
Administrator Class | (59,613,625) | (59,613,625) | (50,697,012) | (50,697,012) |
Premier Class | (311,871,568) | (311,871,568) | (960,769,724) | (960,769,724) |
Service Class | (2,850,800) | (2,850,800) | (4,464,228) | (4,464,228) |
| (409,825,208) | (1,059,925,408) | |||
Net decrease in net assets resulting from capital share transactions | (65,005,581) | (233,139,659) | ||
Total decrease in net assets | (65,004,462) | (233,131,741) | ||
| Net assets | ||||
Beginning of period | 882,630,742 | 1,115,762,483 | ||
End of period | $ 817,626,280 | $ 882,630,742 | ||
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 25
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Class A | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.01 | 0.01 | 0.00 1 |
Net realized gains (losses) on investments | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.01 | 0.01 | 0.00 1 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.01) | (0.01) | (0.00) 1 |
Net realized gains | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.01) | (0.01) | (0.00) 1 |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.02% | 0.27% | 0.93% | 0.89% | 0.35% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.66% | 0.64% | 0.66% | 0.66% | 0.68% |
Net expenses | 0.12% * | 0.33% * | 0.60% | 0.61% | 0.64% |
Net investment income | 0.01% | 0.25% | 0.92% | 0.88% | 0.30% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $84,532 | $100,920 | $95,632 | $101,680 | $119,524 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.48% |
| Year ended January 31, 2021 | 0.25% |
| 1 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
26 | Retail Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Administrator Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.01 | 0.01 | 0.01 |
Net realized gains (losses) on investments | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.01 | 0.01 | 0.01 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.01) | (0.01) | (0.01) |
Net realized gains | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.01) | (0.01) | (0.01) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.02% | 0.35% | 1.23% | 1.21% | 0.69% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.38% | 0.37% | 0.39% | 0.39% | 0.41% |
Net expenses | 0.11% * | 0.25% * | 0.30% | 0.30% | 0.30% |
Net investment income | 0.01% | 0.34% | 1.22% | 1.21% | 0.64% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $108,157 | $85,489 | $107,457 | $131,395 | $132,964 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.19% |
| Year ended January 31, 2021 | 0.04% |
| 1 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 27
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Premier Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.01 | 0.01 | 0.01 |
Net realized gains (losses) on investments | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.01 | 0.01 | 0.01 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.01) | (0.01) | (0.01) |
Net realized gains | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.01) | (0.01) | (0.01) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.02% | 0.40% | 1.33% | 1.31% | 0.79% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.27% | 0.25% | 0.27% | 0.27% | 0.28% |
Net expenses | 0.12% 2 | 0.20% | 0.20% | 0.20% | 0.20% |
Net investment income | 0.01% | 0.38% | 1.28% | 1.31% | 0.79% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $559,264 | $632,040 | $847,871 | $593,961 | $339,331 |
| 1 | Amount is less than $0.005. |
| 2 | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would have been 0.08% higher. |
The accompanying notes are an integral part of these financial statements.
28 | Retail Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Service Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.01 | 0.01 | 0.01 |
Net realized gains (losses) on investments | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.01 | 0.01 | 0.01 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.01) | (0.01) | (0.01) |
Net realized gains | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.01) | (0.01) | (0.01) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.02% | 0.30% | 1.08% | 1.06% | 0.54% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.56% | 0.54% | 0.56% | 0.56% | 0.58% |
Net expenses | 0.12% * | 0.29% * | 0.45% | 0.45% | 0.45% |
Net investment income | 0.01% | 0.28% | 1.06% | 1.05% | 0.49% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $65,673 | $64,183 | $64,802 | $65,682 | $66,460 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.33% |
| Year ended January 31, 2021 | 0.15% |
| 1 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 29
Notes to financial statements
1. ORGANIZATION
Allspring Funds Trust (the "Trust"), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring National Tax-Free Money Market Fund (the "Fund") which is a diversified series of the Trust.
Consistent with Rule 2a-7, the Board of Trustees of the Fund is permitted to impose a liquidity fee on redemptions from the Fund or a redemption gate (i.e., a suspension of the right to redeem) in the event that the Fund’s liquidity falls below required minimums because of market conditions or other factors. If the Fund’s weekly liquid assets (as defined in Rule 2a-7(34)) fall below 30% of the Fund’s total assets, the Board of Trustees is permitted, but not required, to: (i) impose a liquidity fee of no more than 2% of the amount redeemed; and/or (ii) impose a redemption gate. If the Fund’s weekly liquid assets fall below 10% of the Fund’s total assets, the Fund must impose, generally as of the beginning of the next business day, a liquidity fee of 1% of the amount redeemed unless the Board of Trustees determines that such a fee is not in the best interest of the Fund or determines that a lower or higher fee (subject to the 2% limit) is in the best interest of the Fund. Liquidity fees reduce the amount a shareholder receives upon redemption of its shares. The Fund retains any liquidity fees for the benefit of remaining shareholders. The Board of Trustees did not impose any liquidity fees and/or redemption gates during the year ended January 31, 2022.
Effective on November 1, 2021, the sale transaction of Wells Fargo Asset Management ("WFAM") by Wells Fargo & Company to GTCR LLC and Reverence Capital Partners, L.P. was closed. In connection with the closing of the transaction, WFAM became known as Allspring Global Investments (“Allspring”) and various entities that provided services to the Fund changed their names to "Allspring", including Allspring Funds Management, LLC, the investment manager to the Fund, Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited, both registered investment advisers providing subadvisory services to certain funds, and Allspring Funds Distributor, LLC, the Fund's principal underwriter. Consummation of the transaction resulted in a new investment management agreement and subadvisory agreement which became effective on November 1, 2021.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
As permitted under Rule 2a-7 of the 1940 Act, portfolio securities are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Allspring Global Investments Pricing Committee at Allspring Funds Management, LLC ("Allspring Funds Management"). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Allspring Global Investments Pricing Committee which may include items for ratification.
Repurchase agreements
The Fund may invest in repurchase agreements and may participate in pooled repurchase agreement transactions with other funds advised by Allspring Funds Management. Repurchase agreements are agreements where the seller of a security to the Fund agrees to repurchase that security from the Fund at a mutually agreed upon time and price. The repurchase agreements must be fully collateralized based on values that are marked-to-market daily. The collateral may be held by an agent bank under a tri-party agreement. It is the custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain market value equal to or greater than the resale price (including accrued interest). The repurchase agreements are collateralized by securities issued or guaranteed by the U.S. Government, its agencies or
30 | Retail Money Market Funds
Notes to financial statements
instrumentalities. There could be potential loss to the Fund in the event that the Fund is delayed or prevented from exercising its rights to dispose of the collateral, including the risk of a possible decline in the value of the underlying obligations during the period in which the Fund seeks to assert its rights.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund's commitment to purchase when-issued securities. Securities purchased on a when-issued basis are valued using amortized cost which approximates market value and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund's fiscal year end. Therefore, a portion of the Fund's distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund's tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of January 31, 2022, the cost of investments for federal income tax purposes is substantially the same as for financial reporting purposes.
Class allocations
The separate classes of shares offered by the Fund differ principally in shareholder servicing and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
Retail Money Market Funds | 31
Notes to financial statements
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
| ■ | Level 1 – quoted prices in active markets for identical securities |
| ■ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
| ■ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of January 31, 2022:
| Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
| Assets | ||||
| Investments in: | ||||
| Closed end municipal bond fund obligations | $0 | $ 15,000,000 | $0 | $ 15,000,000 |
| Municipal obligations | 0 | 786,953,846 | 0 | 786,953,846 |
| Repurchase agreements | 0 | 12,000,000 | 0 | 12,000,000 |
| Total assets | $0 | $813,953,846 | $0 | $813,953,846 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended January 31, 2022, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Allspring Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Allspring Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
| Average daily net assets | Management fee |
| First $5 billion | 0.150% |
| Next $5 billion | 0.140 |
| Next $5 billion | 0.130 |
| Next $85 billion | 0.125 |
| Over $100 billion | 0.120 |
Prior to June 1, 2021, the management fee rate was as follows:
32 | Retail Money Market Funds
Notes to financial statements
| Average daily net assets | Management fee |
| First $5 billion | 0.150% |
| Next $5 billion | 0.140 |
| Over $10 billion | 0.130 |
For the year ended January 31, 2022, the management fee was equivalent to an annual rate of 0.15% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase.
Administration fees
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
| Class-level administration fee | |
| Class A | 0.22% |
| Administrator Class | 0.10 |
| Premier Class | 0.08 |
| Service Class | 0.12 |
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through May 31, 2022 to waive fees and/or reimburse expenses to the extent necessary to cap expenses. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. In addition to the contractual waivers and/or reimbursements, Allspring Funds Management also voluntarily waived certain class-level expenses during the year ended January 31, 2022 in order to maintain a positive yield. These voluntary class-level waivers may be discontinued at any time. The contractual expense caps are as follows:
| Expense ratio caps | |
| Class A | 0.60% |
| Administrator Class | 0.30 |
| Premier Class | 0.20 |
| Service Class | 0.45 |
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A and Service Class of the Fund are charged a fee at an annual rate of 0.25% of the respective average daily net assets of each class. Administrator Class is charged a fee at an annual rate of 0.10% of its average daily net assets. A portion of these total shareholder servicing fees were paid to affiliates, and to certain entities that were affiliates of the Fund until November 1, 2021.
Retail Money Market Funds | 33
Notes to financial statements
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund had $505,160,000, $467,075,000 and $0 in interfund purchases, sales and net realized gains (losses), respectively, during the year ended January 31, 2022.
5. DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid during the years ended January 31, 2022 and January 31, 2021 were as follows:
| Year ended January 31 | ||
| 2022 | 2021 | |
| Ordinary income | $127,978 | $ 210,574 |
| Tax-exempt income | 74,476 | 3,794,946 |
| Long-term capital gain | 0 | 72,052 |
As of January 31, 2022, the components of distributable earnings on a tax basis were as follows:
| Undistributed ordinary income | Undistributed long-term gain |
| $613 | $5,513 |
6. INDEMNIFICATION
Under the Fund's organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
7. CORONAVIRUS (COVID-19) PANDEMIC
On March 11, 2020, the World Health Organization announced that it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general. There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial markets.
34 | Retail Money Market Funds
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring National Tax-Free Money Market Fund (formerly, Wells Fargo National Tax-Free Money Market Fund) (the Fund), one of the funds constituting Allspring Funds Trust (formerly, Wells Fargo Funds Trust), including the portfolio of investments, as of January 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of January 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of January 31, 2022, by correspondence with the custodian and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
March 30, 2022
Retail Money Market Funds | 35
Other information (unaudited)
TAX INFORMATION
For the fiscal year ended January 31, 2022, $7,375 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.
For the fiscal year ended January 31, 2022, $120,603 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.
Pursuant to Section 852 of the Internal Revenue Code, 91% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended January 31, 2022.
PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at allspringglobal.com.
36 | Retail Money Market Funds
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Allspring family of funds, which consists of 139 mutual funds comprising the Allspring Funds Trust, Allspring Variable Trust, Allspring Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information1. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
| Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
| William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A |
| Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A |
| Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chair, since 2019 | Retired. Chairman of the Board of CIGNA Corporation from 2009 to 2021, and Director from 2005 to 2008. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Fellowship of Christian Athletes. Mr. Harris is a certified public accountant (inactive status). | N/A |
| David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business (Emeritus), Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A |
Retail Money Market Funds | 37
Other information (unaudited)
| Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
| Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor since 1993, Wharton School of the University of Pennsylvania. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously taught at Cornell University from 1978 to 1993. | N/A |
| Timothy J. Penny (Born 1951) | Trustee, since 1996; Chair, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A |
| James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A |
| Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019. Interim President of the McKnight Foundation from January to September 2020. McKnight Foundation Consultant, November 2020 to February 2021. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Consultant (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
38 | Retail Money Market Funds
Other information (unaudited)
Officers2
| Name and year of birth | Position held and length of service | Principal occupations during past five years or longer |
| Andrew Owen (Born 1960) | President, since 2017 | President, Chief Executive Officer and Director of Allspring Funds Management, LLC since 2017 and co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, since 2019. Prior thereto, Head of Affiliated Managers, Allspring Global Investments, from 2014 to 2019 and Executive Vice President responsible for marketing, investments and product development for Allspring Funds Management, LLC, from 2009 to 2014. In addition, Mr. Owen was an Executive Vice President of Wells Fargo & Company from 2014 to 2021. |
| Jeremy DePalma (Born 1974) | Treasurer, since 2012 (for certain funds in the Fund Complex); since 2021 (for the remaining funds in the Fund Complex) | Senior Vice President of Allspring Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration. |
| Kate McKinley (Born 1977) | Chief Legal Officer, since 2021 | Chief Legal Officer of Allspring Global Investments since 2021. Prior thereto, held various roles at State Street Global Advisors beginning in 2010, including serving as Senior Vice President and General Counsel from 2019 to 2021, and Chief Operating Officer of the Institutional Client Group from 2016 - 2019. Prior to working at State Street Global Advisors served as Assistant General Counsel for Bank of America Corporation from 2005 to 2010 and as an Associate at WilmerHale from 2002 to 2005. |
| Christopher Baker (Born 1976) | Chief Compliance Officer, since 2022 | Global Chief Compliance Officer for Allspring Global Investments since 2022. Prior thereto, Chief Compliance Officer for State Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015 Vice President, Global Head of Investment and Marketing Compliance for State Street Global Advisors. |
| Matthew Prasse (Born 1983) | Secretary, since 2021 | Senior Counsel of the Allspring Legal Department since 2021. Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021. Previously, Counsel for Barings LLC from 2015 to 2018. Prior to joining Barings, Associate at Morgan, Lewis & Bockius LLP from 2008 to 2015. |
1 The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at allspringglobal.com.
2 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to 2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
Retail Money Market Funds | 39
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund's website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2022 Allspring Global Investments Holdings, LLC. All rights reserved.
PAR-0222-00685 03-22
A309/AR309 01-22
A309/AR309 01-22
Annual Report
January 31, 2022
Government Money Market Funds
| ■ | Allspring Treasury Plus Money Market Fund |
Contents
| 2 | |
| 6 | |
| 10 | |
| 11 | |
| Financial statements | |
| 14 | |
| 15 | |
| 16 | |
| 17 | |
| 22 | |
| 27 | |
| 28 |
The views expressed and any forward-looking statements are as of January 31, 2022, unless otherwise noted, and are those of the Fund's portfolio managers and/or Allspring Global Investments. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Allspring Global Investments disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.
Government Money Market Funds | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Treasury Plus Money Market Fund for the 12-month period that ended January 31, 2022. Global stocks yielded mixed results as the global economy continued to emerge from the haze of COVID-19. Tailwinds were provided by global stimulus programs, a rapid vaccination rollout, and recovering consumer and corporate sentiment, only to be dampened by persistent inflation. Bonds also saw mixed performance during the period.
For the 12-month period, equities had mixed returns as policymakers continued to fight the effects of COVID-19. U.S. stocks led both non-U.S. developed market equities and emerging market stocks. Returns by fixed-income securities were also a mix of positive and negative returns. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 23.29%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 3.63%, while the MSCI EM Index (Net) (USD)3 had weaker performance with a -7.23% loss. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -2.97%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned -7.92%, the Bloomberg Municipal Bond Index6 lost -1.89%, and the ICE BofA U.S. High Yield Index7 returned 2.08%.
Efforts to contain COVID-19 drove market performance.
February 2021 saw major domestic equity indexes driven higher on the hope of a new stimulus bill, improving COVID-19 vaccination numbers, and the gradual reopening of the economy. Most S&P 500 companies reported better-than-expected earnings, with positive surprises coming from the financials, information technology, health care, and materials sectors. Japan saw its economy strengthen as a result of strong export numbers. Meanwhile, crude oil prices continued their climb, rising more than 25% for the year. Domestic government bonds experienced a sharp sell-off in late February as markets priced in a more robust economic recovery and higher future growth and inflation expectations.
The passage of the massive domestic stimulus bill highlighted March activity, leading to increased forecasts for U.S. growth in 2021. Domestic employment surged as COVID-19 vaccinations and an increasingly open economy spurred hiring. A majority of U.S. small companies reported they were operating at pre-pandemic capacity or higher. Value stocks continued their outperformance of growth stocks in the month, continuing the trend that started in late 2020. Meanwhile, most major developed global equity indexes were up month to date on the back of rising optimism regarding the outlook for global growth. While the U.S. and the U.K. have been the most successful in terms of the vaccine rollout, even in markets where the vaccine has lagged, such as in the eurozone and Japan, equity indexes in many of those countries have also been in positive territory for the year through March 2021.
| 1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index. |
| 2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
| 3 | The MSCI Emerging Markets (EM) Index (Net) (USD) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
| 4 | The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.-dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
| 5 | The Bloomberg Global Aggregate ex-USD Index (unhedged) is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
| 6 | The Bloomberg Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index. |
| 7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2022. ICE Data Indices, LLC. All rights reserved. |
2 | Government Money Market Funds
Letter to shareholders (unaudited)
Equity markets produced another strong showing in April. Domestically, the continued reopening of the economy had a strong impact on positive equity performance, as people started leaving their households and jobless claims continued to fall. Domestic corporate bonds performed well and the U.S. dollar weakened. Meanwhile, the U.S. government continued to seek to invest in the recovery, this time by outlining a package of over $2 trillion to improve infrastructure. The primary headwind in April was inflation, as investors tried to determine the breadth and longevity of recent price increases. Developed Europe was supported by a meaningful increase in the pace of vaccinations. Unfortunately many emerging market countries were not as successful. India in particular saw COVID-19 cases surge, serving as an example of the need to get vaccinations rolled out to less developed nations.
Vaccine rollouts continued in May, leading to loosened restrictions globally. As a result, equity markets in general saw a minor increase in returns. Concerns that the continued economic rebound could result in inflation increases becoming more than transitory were supported by the higher input costs businesses were experiencing. Meanwhile, those inflation concerns were tempered by the U.S. Federal Reserve (Fed), which stayed steady on its view of the economy and eased fears of a sudden and substantial policy change. Positive performance in the emerging market equity space was supported this month by steady consumer demand and strong commodity prices. Fixed-income markets were also slightly positive for the month, driven by inflation uncertainty and a softer U.S. dollar.
June witnessed the S&P 500 Index reach a new all-time high. 2021 economic growth and inflation forecasts were revised higher to reflect a strong economic recovery and some supply and demand imbalances. Late June saw a deal reached on a U.S. infrastructure package of approximately $1 trillion for road, bridge, and broadband network upgrades over the next eight years. The Fed’s June meeting yielded no change to policy, but its projections pointed to a possible interest rate rise in 2023. This, combined with a rebound in economic activity and investors searching for yield, led to U.S. Treasury yields being down for the month. Many European and Asian countries saw vaccination momentum increase, while the U.K. dealt with a rise in COVID-19 infections, specifically the Delta variant. Meanwhile, crude oil jumped over 10% in June on the back of the pickup in global economic activity and the Organization of the Petroleum Exporting Countries’ (OPEC) slow pace of supply growth.
July began the month seeing vaccinations making progress, as several major developed countries eased restrictions, only to be threatened again by the spread of COVID-19’s Delta variant. Inflation continued to climb, aided by the continued supply bottleneck in the face of high demand. As it pertains to the equity area of the market, U.S. equities led the way in positive return territory followed by international developed markets. In contrast, emerging markets were well in negative territory for the month, hindered by China’s plans for new regulations on a number of sectors, specifically education and technology. The U.S. 10-year Treasury bond yield continued to decline as strong demand swallowed up supply. After hitting a multiyear high earlier in the month, oil prices leveled off following an agreement by OPEC to raise oil production starting in August.
The Delta variant of COVID-19 produced outbreaks globally in August, increasing the potential for increased market volatility and bringing into question the ongoing economic recovery. Domestically, the U.S. economy continued to stay strong in the face of the Delta variant, continued inflationary pressures, and worries over Hurricane Ida. Emerging market equities experienced elevated volatility, largely influenced by China’s regulatory stance. Emerging market equities started the month with poor performance but rebounded to end the month in positive territory. Municipal debt experienced its first monthly performance drop since February 2021, slowing a rally that made it one of the best-performing sectors of the bond market. In the commodity segment of the market, crude oil fell sharply during the month on the back of dampened expectations as a result of the Delta variant but was still a leading asset-class performer for the year through August 2021.
Global markets suffered their broadest retreat in a year during September, with the exception of commodities. Concerns over inflation and the interest rate outlook depressed investor confidence and hurt performance. Emerging markets declined on concerns over the continued supply chain disruptions and worries over higher energy and food prices. Meanwhile, the Fed indicated it would slow the pace of asset purchases in the near future (pointing towards November). All eyes domestically were fixed on the raising of the debt ceiling, the 2022 budget plan, and the ongoing debate over the infrastructure package. Contrary to most asset classes, commodities thrived in September, driven by sharply higher energy prices.
“ Municipal debt experienced its first monthly performance drop since February 2021, slowing a rally that made it one of the best-performing sectors of the bond market.”
Government Money Market Funds | 3
Letter to shareholders (unaudited)
October’s key themes continued to be elevated inflation pressures and a supply bottleneck, but strong earnings provided a bright spot in the markets. Earnings releases in the U.S. were generally strong and consumer confidence was high. The Fed reaffirmed its plans to taper quantitative easing to a stop by mid-2022. Meanwhile, elevated inflation figures were considered transitory by the Fed. Similar to the U.S., the eurozone and many Asian countries saw positive earnings but were facing inflation pressures caused by supply bottlenecks while also experiencing energy price increases amid natural gas shortages. Globally, government bond yields rose as central banks prepared to lower monetary policy accommodation in the face of rising inflationary pressures. As previously referenced, positive commodity performance was driven by sharply higher energy costs.
November was dominated by rising COVID-19 hospitalizations and concerns regarding the Omicron variant. Most major asset classes, both domestically and internationally, declined in November with two exceptions: U.S. investment-grade bonds and Treasury Inflation-Protected Securities. The United Nations Climate Change Conference (COP26) took place during the month with hopes of agreement among countries to limit global warming. While several initiatives were discussed, the conference ultimately ended without the specifics required to instill confidence that the limiting of global warming would succeed. In the U.S., President Biden signed a long-awaited infrastructure bill to upgrade U.S. roads, bridges, and railways. Meanwhile, the Consumer Price Index1, a measure of domestic inflation conditions, jumped to its highest level in 31 years. While the threat of consistently high inflation led the Fed to discuss a faster pace of tapering, the Omicron strain makes that less likely to occur. Commodities came in negative for the month, largely driven by sharp declines in oil prices (and energy costs in general) as well as precious metals.
Global volatility in December lessened as data indicated a lower risk of severe disease and death as a result of the Omicron variant. Even so, a number of countries introduced restrictions on sectors such as travel and hospitality to try to reduce the spread. In the U.S., data indicated that the overall domestic economy remained stable and corporate earnings remained robust. Consumer spending capability looked strong heading into 2022 on the back of elevated household savings and the lowest ratio of U.S. household liabilities to assets since 1973. U.S. corporate and high-yield bonds produced positive returns for the month while Treasuries declined. Bonds were strongly affected by the projection of three 25-basis-point (bp; 100 bps equal 1.00%) policy rate hikes in 2022 by senior Federal Open Market Committee members, contrary to just one hike as previously believed.
Key themes in the first month of 2022 were the potential U.S. interest rate hikes and the Russia-Ukraine conflict. Comments from the Fed suggested a hike in interest rates in March is now likely. Meanwhile, Russia’s potential invasion of Ukraine, could threaten to disrupt its massive energy supplies and drive demand from non-Russian oil-producing countries. Elsewhere overseas, Europe saw food and energy prices spike, leading to rising inflation to match that being experienced in the U.S. Within fixed income, corporate bonds struggled in January and underperformed government bonds, as investors focused on continued elevated inflation and ongoing uncertainty over the U.S. monetary path.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Allspring Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
“ Bonds were strongly affected by the projection of three 25-basis-point (bp; 100 bps equal 1.00%) policy rate hikes in 2022 by senior Federal Open Market Committee members, contrary to just one hike as previously believed.”
| 1 | The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index. |
4 | Government Money Market Funds
Letter to shareholders (unaudited)
Information on transaction closing.
On November 1, 2021, GTCR LLC and Reverence Capital Partners, L.P., announced the beginning of Allspring Global Investments™, with the close of the transaction to acquire Wells Fargo Funds Management, LLC; Wells Capital Management, LLC; Galliard Capital Management, LLC.; Wells Fargo Asset Management (International) Ltd.; Wells Fargo Asset Management Luxembourg S.A.; and Wells Fargo Funds Distributor, LLC, as well as Wells Fargo Bank, N.A.’s business of acting as trustee to its collective investment trusts and all related Wells Fargo Asset Management legal entities. The transaction closed on November 1, 2021, forming Allspring Global Investments, a privately held asset management firm with $575 billion in AUM1 as of December 31, 2021.
Allspring Global Investments™ is a leading independent asset management firm with a full breadth of investment capabilities across diverse asset classes, serving the needs of its institutional and wealth management clients around the world. Allspring operates across 18 offices globally supported by more than 480 investment professionals. Allspring and its investment teams provide a broad range of differentiated investment products and solutions to help its diverse range of clients meet their investment objectives.
As part of this transition, all mutual funds within the Wells Fargo Funds family were rebranded as Allspring Funds. Each individual fund had “Wells Fargo” removed from its fund name and replaced with “Allspring.” The fund name changes went into effect on December 6, 2021.
Allspring Global Investments is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
President
Allspring Funds
Notice to Shareholders
Russia launched a large-scale invasion of Ukraine on February 24, 2022. As a result of this military action, the United States and many other countries have instituted various economic sanctions against Russian individuals and entities. The situation has led to increased financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities, such as oil and natural gas. The extent and duration of the military action, resulting sanctions imposed, other punitive action taken and the resulting market disruptions cannot be easily predicted.
Our solidarity and support goes out to our impacted employees and the people affected in Ukraine and their families. Allspring has a dedicated team of investment professionals actively monitoring the situation for any new developments and the potential impact to our clients and investment products. As the situation remains fluid, we are focused on the assessment of risks, valuation, and liquidity of impacted securities. Please visit our website at allspringglobal.com and click on “Russia-Ukraine Portfolio Impacts” for further information
For further information about your Fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
| 1 | As of December 31, 2021, assets under management (AUM) includes $91.6 billion from Galliard Capital Management, LLC, an investment advisor that is not part of the Allspring trade name/GIPS firm. |
Government Money Market Funds | 5
Performance highlights (unaudited)
| Investment objective | The Fund seeks current income, while preserving capital and liquidity. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Michael C. Bird, CFA®‡, Jeffrey L. Weaver, CFA®‡, Laurie White |
| Average annual total returns (%) as of January 31, 2022 | ||||||
| Expense ratios1 (%) | ||||||
| Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
| Class A (PIVXX) | 7-28-2003 | 0.01 | 0.69 | 0.35 | 0.60 | 0.60 |
| Administrator Class (WTPXX) | 3-31-2008 | 0.01 | 0.85 | 0.44 | 0.33 | 0.33 |
| Institutional Class (PISXX) | 8-11-1995 | 0.01 | 0.95 | 0.50 | 0.21 | 0.20 |
| Select Class (WTLXX)3 | 3-15-2019 | 0.01 | 0.96 | 0.51 | 0.17 | 0.14 |
| Service Class (PRVXX) | 10-1-1985 | 0.01 | 0.78 | 0.40 | 0.50 | 0.45 |
| 1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
| 2 | The manager has contractually committed through May 31, 2022, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.60% for Class A, 0.34% for Administrator Class, 0.20% for Institutional Class, 0.14% for Select Class and 0.45% for Service Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. The manager and/or its affiliates may also voluntarily waive all or a portion of any fees to which they are entitled and/or reimburse certain expenses as they may determine from time to time. Without these caps, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses. |
| 3 | Historical performance shown for the Select Class shares prior to their inception reflects the performance of the Institutional Class shares, and includes the higher expenses applicable to the Institutional Class shares. If these expenses had not been included, returns for the Select Class shares would be higher. |
| Yield summary (%) as of January 31, 2022 | |||||
| Class A | Administrator Class | Institutional Class | Select Class | Service Class | |
| 7-day current yield1 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| 7-day compound yield | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| 30-day simple yield | 0.01 | 0.03 | 0.01 | 0.01 | 0.01 |
| 30-day compound yield | 0.01 | 0.03 | 0.01 | 0.01 | 0.01 |
| 1 | The manager has contractually committed through May 31, 2022, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses and may also voluntarily waive or reimburse additional fees and expenses which may be discontinued or modified at any time without notice. Without these reductions, the Fund’s 7-day current yield would have been -0.47%, -0.21%, -0.12%, -0.08% and -0.33% for Class A, Administrator Class, Institutional Class, Select Class and Service Class, respectively. |
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 returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, allspringglobal.com.
Money market funds are sold without a front-end sales charge or contingent deferred sales charge. Other fees and expenses apply to an investment in the Fund and are described in the Fund’s current prospectus.
| ‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Government Money Market Funds
Performance highlights (unaudited)
For government money market funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Government Money Market Funds | 7
Performance highlights (unaudited)
MANAGER'S DISCUSSION
Overnight interest rates were near zero for the entirety of the Fund’s fiscal year that ended January 31, 2022, as the U.S. government and U.S. Federal Reserve (Fed), along with other nations and major central banks, continued to support the global economy in the face of the ongoing COVID-19 global pandemic. The fiscal year began and ended with the Fed targeting the range on the federal funds rate at 0.00% to 0.25%. The Fed also bought Treasury and mortgage-backed securities throughout the year in another round of quantitative easing (QE) similar to those taken during the recovery from the 2008 global financial crisis, although it began to wind down those purchases in November 2021, with the intention of completing them in March 2022. Ending QE is the Fed’s first step in removing the monetary accommodation it has provided during the pandemic, and the Fed has signaled its intention to continue to remove the accommodation in 2022 by raising interest rates, reflecting the Fed’s conclusion that both inflation and employment are on paths requiring less monetary assistance.
Although the pandemic continues, the economy’s strong recovery from the economic shock that accompanied its onset in early 2020 continued in 2021, likely due in part to the effectiveness of vaccines and therapeutics. After growing an average of just 0.5% in 2020, U.S. gross domestic product grew an average of 5.5% in 2021, the strongest growth so far this century. The unemployment rate began the fiscal year at 6.4%, down from its pandemic peak of 14.8% in April 2020, and fell to 4.0% by fiscal year-end, a rapid improvement toward full employment that likely encouraged the Fed to begin to remove the accommodation.
| Portfolio composition as of January 31, 20221 |
| 1 | Figures represent the percentage of the Fund's total investments. These amounts are subject to change and may have changed since the date specified. |
In the previous fiscal year, the Fed formalized a commitment to meeting its 2% inflation target when it stated its intention to not raise rates until inflation reached 2% and was on track to moderately exceed 2% for some time. This seemed a significant hurdle, as inflation had rarely risen to 2% and had not exceeded it materially for any length of time over the preceding decade. However, pandemic effects on the workforce and global supply chains combined with the strong fiscal and monetary response to send consumer prices higher in 2021. After ending the prior fiscal year at 1.5%, the Core PCE Price Index*, the Fed’s preferred price measure, rose steadily throughout the year, ending the fiscal year at 4.9%, a level not seen since the 1980s.
Although interest rates on all categories of government money market securities stayed near zero for most of the fiscal year, consistent with the Fed’s stance, interest rates on longer-maturity securities rose in the last few months of the fiscal year, reflecting the Fed’s signals of higher rates to come in 2022. For example, 3-month Treasury bills (T-bills) yielded an average of 0.03% for the first 11 months of the fiscal year before rising to 0.18% at fiscal year-end. Similarly, 6-month T-bill yields averaged 0.04% for the first 10 months of the fiscal year before rising to 0.45% at the end of the fiscal year. The yields on repurchase agreements (repos) were also very low throughout the fiscal year. Overnight Treasury repo rates, as measured by the Fed’s Secured Overnight Financing Rate, averaged 0.04% for the fiscal year and ended the fiscal year at 0.05%.
| Effective maturity distribution as of January 31, 20221 |
| 1 | Figures represent the percentage of the Fund's total investments. These amounts are subject to change and may have changed since the date specified. |
| * | The Core Personal Consumption Expenditures (PCE) Price Index measures the prices paid by U.S. consumers for domestic goods and services, excluding the prices of food and energy. You cannot invest directly into an index. |
8 | Government Money Market Funds
Performance highlights (unaudited)
Our investment strategy remained consistent throughout the year. We invested in T-bills and U.S. Treasury notes—including floating-rate notes—as well as repos collateralized by Treasury securities while taking into account the Fund’s overall level of liquidity and average maturity.
Strategic outlook
In the statement issued after its meeting on January 26, 2022, the Fed’s Federal Open Market Committee said: “With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate.” This signal indicates that, after almost two years at nearly zero, money market interest rates look set to move higher in the upcoming fiscal year. The degree to which rates rise will depend upon the evolution of the economic recovery, which will in turn depend on many other factors, including the continuing pandemic itself. However, the economic backdrop differs from recent episodes of Fed rate hikes, as the Fed will need to deal with high inflation for the first time in decades. Until it is satisfied that inflation is in check, the Fed is likely to continue to remove accommodation throughout the year.
| Weighted average maturity as of January 31, 20221 |
| 34 days |
| 1 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
| Weighted average life as of January 31, 20221 |
| 90 days |
| 1 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
Government Money Market Funds | 9
Fund expenses (unaudited)
As a shareholder of the Fund, you incur ongoing costs including management fees, shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from August 1, 2021 to January 31, 2022.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| Beginning account value 8-1-2021 | Ending account value 1-31-2022 | Expenses paid during the period1 | Annualized net expense ratio | |
| Class A | ||||
| Actual | $1,000.00 | $1,000.06 | $0.30 | 0.06% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.90 | $0.31 | 0.06% |
| Administrator Class | ||||
| Actual | $1,000.00 | $1,000.07 | $0.30 | 0.06% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.90 | $0.31 | 0.06% |
| Institutional Class | ||||
| Actual | $1,000.00 | $1,000.06 | $0.30 | 0.06% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.90 | $0.31 | 0.06% |
| Select Class | ||||
| Actual | $1,000.00 | $1,000.06 | $0.30 | 0.06% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.90 | $0.31 | 0.06% |
| Service Class | ||||
| Actual | $1,000.00 | $1,000.06 | $0.30 | 0.06% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,024.90 | $0.31 | 0.06% |
1 Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period).
10 | Government Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| Repurchase agreements^^: 63.14% | |||||
| ANZ Bank New Zealand Limited, dated 1-31-2022, maturity value $49,999,183 (01) | 0.05% | 2-1-2022 | $ 49,999,114 | $ 49,999,114 | |
| Bank of America, dated 1-31-2022, maturity value $100,000,139 (02) | 0.05 | 2-1-2022 | 100,000,000 | 100,000,000 | |
| Bank of New York Mellon Corporation, dated 1-31-2022, maturity value $250,000,382 (03) | 0.06 | 2-1-2022 | 250,000,000 | 250,000,000 | |
| Barclays Bank plc, dated 1-31-2022, maturity value $780,001,083 (04) | 0.05 | 2-1-2022 | 780,000,000 | 780,000,000 | |
| BNP Paribas, dated 1-31-2022, maturity value $1,660,002,306 (05) | 0.05 | 2-1-2022 | 1,660,000,000 | 1,660,000,000 | |
| BNP Paribas, dated 1-31-2022, maturity value $1,000,001,528 (06) | 0.06 | 2-1-2022 | 1,000,000,000 | 1,000,000,000 | |
| Citigroup Global Markets Incorporated, dated 1-31-2022, maturity value $565,000,785 (07) | 0.05 | 2-1-2022 | 565,000,000 | 565,000,000 | |
| Citigroup Global Markets Incorporated, dated 1-27-2022, maturity value $250,002,431 (08) | 0.05 | 2-3-2022 | 250,000,000 | 250,000,000 | |
| Credit Agricole SA, dated 1-31-2022, maturity value $150,000,208 (09) | 0.05 | 2-1-2022 | 150,000,000 | 150,000,000 | |
| Federal Reserve Bank of New York, dated 1-31-2022, maturity value $7,250,010,069 (10) | 0.05 | 2-1-2022 | 7,250,000,000 | 7,250,000,000 | |
| ING Financial Markets LLC, dated 1-31-2022, maturity value $100,009,472 (11) | 0.05 | 2-1-2022 | 100,009,333 | 100,009,333 | |
| JPMorgan Securities, dated 1-2-2022, maturity value $100,005,000 (12) §∂øø | 0.06 | 2-1-2022 | 100,000,000 | 100,000,000 | |
| JPMorgan Securities, dated 1-31-2022, maturity value $100,000,153 (13) | 0.06 | 2-1-2022 | 100,000,000 | 100,000,000 | |
| MUFG Securities Canada Limited, dated 1-25-2022, maturity value $250,002,431 (14) | 0.05 | 2-1-2022 | 250,000,000 | 250,000,000 | |
| MUFG Securities Canada Limited, dated 1-31-2022, maturity value $228,800,318 (15) | 0.05 | 2-1-2022 | 228,800,000 | 228,800,000 | |
| MUFG Securities Canada Limited, dated 1-31-2022, maturity value $250,000,347 (16) | 0.05 | 2-1-2022 | 250,000,000 | 250,000,000 | |
| RBS Securities Incorporated, dated 1-31-2022, maturity value $1,000,001,528 (17) | 0.06 | 2-1-2022 | 1,000,000,000 | 1,000,000,000 | |
| Societe Generale NY, dated 1-4-2022, maturity value $75,003,875 (18) | 0.06 | 2-4-2022 | 75,000,000 | 75,000,000 | |
| Standard Chartered Bank, dated 1-31-2022, maturity value $142,125,197 (19) | 0.05 | 2-1-2022 | 142,125,000 | 142,125,000 | |
| Sumitomo Mitsui Banking Corporation, dated 1-26-2022, maturity value $405,528,539 (20) §∂øø | 0.07 | 2-9-2022 | 405,517,500 | 405,517,500 | |
| Total Repurchase agreements (Cost $14,706,450,947) | 14,706,450,947 | ||||
| U.S. Treasury securities: 36.83% | |||||
| U.S. Cash Management Bill ☼ | 0.07 | 4-5-2022 | 50,000,000 | 49,993,613 | |
| U.S. Cash Management Bill ☼ | 0.09 | 4-19-2022 | 100,000,000 | 99,981,285 | |
| U.S. Cash Management Bill ☼ | 0.11 | 4-26-2022 | 50,000,000 | 49,986,875 | |
| U.S. Cash Management Bill ☼ | 0.13 | 5-3-2022 | 50,000,000 | 49,983,253 | |
| U.S. Cash Management Bill ☼ | 0.15 | 5-10-2022 | 50,000,000 | 49,980,264 | |
| U.S. Cash Management Bill ☼ | 0.19 | 5-17-2022 | 30,000,000 | 29,983,113 | |
| U.S. Cash Management Bill ☼ | 0.28 | 5-24-2022 | 30,000,000 | 29,974,333 | |
| U.S. Treasury Bill ☼ | 0.04 | 2-22-2022 | 50,000,000 | 49,998,454 | |
| U.S. Treasury Bill ☼ | 0.05 | 2-10-2022 | 50,000,000 | 49,999,344 | |
| U.S. Treasury Bill ☼ | 0.05 | 2-17-2022 | 50,000,000 | 49,998,889 | |
| U.S. Treasury Bill ☼ | 0.05 | 3-8-2022 | 50,000,000 | 49,997,521 | |
| U.S. Treasury Bill ☼ | 0.06 | 3-10-2022 | 300,000,000 | 299,980,164 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 11
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| U.S. Treasury securities (continued) | |||||
| U.S. Treasury Bill ☼ | 0.08% | 3-22-2022 | $ 100,000,000 | $ 99,988,975 | |
| U.S. Treasury Bill ☼ | 0.08 | 3-24-2022 | 150,000,000 | 149,984,063 | |
| U.S. Treasury Bill ☼ | 0.08 | 3-31-2022 | 100,000,000 | 99,986,628 | |
| U.S. Treasury Bill ☼ | 0.08 | 4-14-2022 | 80,000,000 | 79,986,940 | |
| U.S. Treasury Bill ☼ | 0.08 | 4-21-2022 | 70,000,000 | 69,986,537 | |
| U.S. Treasury Bill ☼ | 0.09 | 4-7-2022 | 50,000,000 | 49,992,191 | |
| U.S. Treasury Bill ☼ | 0.10 | 6-2-2022 | 130,000,000 | 129,958,490 | |
| U.S. Treasury Bill ☼ | 0.10 | 9-8-2022 | 36,000,000 | 35,977,553 | |
| U.S. Treasury Bill ☼ | 0.11 | 10-6-2022 | 220,000,000 | 219,838,969 | |
| U.S. Treasury Bill ☼ | 0.13 | 3-29-2022 | 50,000,000 | 49,989,889 | |
| U.S. Treasury Bill ☼ | 0.15 | 6-23-2022 | 30,000,000 | 29,982,487 | |
| U.S. Treasury Bill ☼ | 0.16 | 11-3-2022 | 100,000,000 | 99,877,778 | |
| U.S. Treasury Bill ☼ | 0.19 | 4-28-2022 | 10,000,000 | 9,995,509 | |
| U.S. Treasury Bill ☼ | 0.21 | 6-30-2022 | 30,000,000 | 29,974,484 | |
| U.S. Treasury Bill ☼ | 0.22 | 7-7-2022 | 20,000,000 | 19,980,717 | |
| U.S. Treasury Bill ☼ | 0.27 | 7-14-2022 | 20,000,000 | 19,975,731 | |
| U.S. Treasury Bill ☼ | 0.36 | 7-21-2022 | 20,000,000 | 19,965,717 | |
| U.S. Treasury Bill ☼ | 0.38 | 7-28-2022 | 10,000,000 | 9,981,415 | |
| U.S. Treasury Bill ☼ | 0.39 | 12-29-2022 | 20,000,000 | 19,928,283 | |
| U.S. Treasury Bill ☼ | 0.62 | 1-26-2023 | 10,000,000 | 9,938,372 | |
| U.S. Treasury Note | 0.13 | 5-31-2022 | 30,000,000 | 30,003,795 | |
| U.S. Treasury Note | 0.13 | 6-30-2022 | 20,000,000 | 20,002,756 | |
| U.S. Treasury Note | 0.13 | 7-31-2022 | 220,000,000 | 220,032,204 | |
| U.S. Treasury Note | 0.13 | 8-31-2022 | 100,000,000 | 100,019,424 | |
| U.S. Treasury Note | 0.13 | 9-30-2022 | 158,000,000 | 158,034,446 | |
| U.S. Treasury Note | 0.13 | 10-31-2022 | 317,850,000 | 317,892,824 | |
| U.S. Treasury Note | 0.13 | 11-30-2022 | 152,000,000 | 151,927,870 | |
| U.S. Treasury Note | 0.13 | 12-31-2022 | 90,000,000 | 89,830,848 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.03%) ± | 0.22 | 4-30-2023 | 640,000,000 | 640,022,131 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.03%) ± | 0.22 | 7-31-2023 | 520,000,000 | 520,016,789 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.04%) ± | 0.23 | 10-31-2023 | 520,000,000 | 520,014,130 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.05%) ± | 0.24 | 1-31-2023 | 230,000,000 | 230,015,863 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.06%) ± | 0.25 | 7-31-2022 | 610,000,000 | 609,996,850 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.06%) ± | 0.25 | 10-31-2022 | 570,000,000 | 569,992,002 | |
| U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.11%) ± | 0.30 | 4-30-2022 | 730,000,000 | 730,019,750 | |
| U.S. Treasury Note | 0.38 | 3-31-2022 | 50,000,000 | 50,021,729 | |
| U.S. Treasury Note | 1.13 | 2-28-2022 | 60,000,000 | 60,045,866 | |
| U.S. Treasury Note | 1.38 | 10-15-2022 | 167,000,000 | 168,443,454 | |
| U.S. Treasury Note | 1.50 | 8-15-2022 | 30,000,000 | 30,227,290 | |
| U.S. Treasury Note | 1.50 | 9-15-2022 | 50,000,000 | 50,433,958 | |
| U.S. Treasury Note | 1.63 | 8-15-2022 | 40,000,000 | 40,329,749 | |
| U.S. Treasury Note | 1.63 | 8-31-2022 | 95,000,000 | 95,829,162 | |
| U.S. Treasury Note | 1.63 | 11-15-2022 | 30,600,000 | 30,962,728 | |
| U.S. Treasury Note | 1.75 | 2-28-2022 | 30,000,000 | 30,037,866 | |
| U.S. Treasury Note | 1.75 | 3-31-2022 | 130,000,000 | 130,346,508 | |
| U.S. Treasury Note | 1.75 | 6-30-2022 | 40,000,000 | 40,271,555 | |
| U.S. Treasury Note | 1.75 | 7-15-2022 | 100,000,000 | 100,745,106 | |
| U.S. Treasury Note | 1.75 | 9-30-2022 | 80,000,000 | 80,871,473 |
The accompanying notes are an integral part of these financial statements.
12 | Government Money Market Funds
Portfolio of investments—January 31, 2022
| Interest rate | Maturity date | Principal | Value | ||
| U.S. Treasury securities (continued) | |||||
| U.S. Treasury Note | 1.88% | 3-31-2022 | $ 60,000,000 | $ 60,169,197 | |
| U.S. Treasury Note | 1.88 | 4-30-2022 | 70,000,000 | 70,302,518 | |
| U.S. Treasury Note | 1.88 | 7-31-2022 | 140,000,000 | 141,227,665 | |
| U.S. Treasury Note | 1.88 | 8-31-2022 | 47,000,000 | 47,478,442 | |
| U.S. Treasury Note | 1.88 | 9-30-2022 | 83,000,000 | 83,973,575 | |
| U.S. Treasury Note | 2.00 | 7-31-2022 | 30,000,000 | 30,281,574 | |
| U.S. Treasury Note | 2.00 | 10-31-2022 | 45,000,000 | 45,614,130 | |
| U.S. Treasury Note | 2.00 | 11-30-2022 | 45,000,000 | 45,642,812 | |
| U.S. Treasury Note | 2.13 | 5-15-2022 | 60,000,000 | 60,347,023 | |
| U.S. Treasury Note | 2.13 | 12-31-2022 | 40,000,000 | 40,653,649 | |
| U.S. Treasury Note | 2.50 | 2-15-2022 | 20,000,000 | 20,018,435 | |
| Total U.S. Treasury securities (Cost $8,577,244,982) | 8,577,244,982 | ||||
| Total investments in securities (Cost $23,283,695,929) | 99.97% | 23,283,695,929 | |||
| Other assets and liabilities, net | 0.03 | 7,238,315 | |||
| Total net assets | 100.00% | $23,290,934,244 |
| ^^ | Collateralized by: |
| (01) U.S. government securities, 0.75% to 3.75%, 1-31-2024 to 8-15-2050, fair value including accrued interest is $50,738,014. | |
| (02) U.S. government securities, 1.13% to 2.75%, 2-15-2024 to 1-15-2025, fair value including accrued interest is $102,000,071. | |
| (03) U.S. government securities, 2.88% to 4.25%, 5-15,2028 to 5-15-2039, fair value including accrued interest is $255,000,093. | |
| (04) U.S. government securities, 0.00% to 7.63%, 2-1-2022 to 2-15-2051, fair value including accrued interest is $795,600,002. | |
| (05) U.S. government securities, 0.00% to 7.63%, 2-3-2022 to 5-15-2051, fair value including accrued interest is $1,693,200,000. | |
| (06) U.S. government securities, 1.00% to 1.25%, 7-31-2028 to 9-30-2028, fair value including accrued interest is $1,020,408,163. | |
| (07) U.S. government securities, 0.13% to 3.00%, 8-31-2025 to 1-15-2030, fair value including accrued interest is $576,300,112. | |
| (08) U.S. government securities, 0.13% to 2.88%, 2-28-2025 to 5-15-2025, fair value including accrued interest is $255,005,913. | |
| (09) U.S. government securities, 1.13%, 8-15-2040, fair value including accrued interest is $153,000,077. | |
| (10) U.S. government securities, 0.13% to 3.63%, 8-15-2022 to 5-15-2044, fair value including accrued interest is $7,250,010,118. | |
| (11) U.S. government securities, 0.63% to 2.75%, 3-31-2023 to 11-30-2027, fair value including accrued interest is $102,009,520. | |
| (12) U.S. government securities, 0.00%, 7-7-2022, fair value is $102,000,314. | |
| (13) U.S. government securities, 0.00% to 1.88%, 7-31-2022 to 10-15-2026, fair value including accrued interest is $102,000,026. | |
| (14) U.S. government securities, 0.00% to 6.38%, 1-31-2023 to 2-15-2051, fair value including accrued interest is $255,000,055. | |
| (15) U.S. government securities, 0.00% to 6.38%, 6-16-2022 to 2-15-2051, fair value including accrued interest is $233,376,000. | |
| (16) U.S. government securities, 0.13% to 4.38%, 7-15-2022 to 5-15-2041, fair value including accrued interest is $255,000,000. | |
| (17) U.S. government securities, 0.00% to 3.13%, 2-15-2022 to 8-15-2051, fair value including accrued interest is $1,020,000,037. | |
| (18) U.S. government securities, 0.00% to 7.63%, 2-3-2022 to 5-15-2050, fair value including accrued interest is $76,500,000. | |
| (19) U.S. government securities, 1.25%, 8-31-2028, fair value including accrued interest is $145,025,510. | |
| (20) U.S. government securities, 0.38% to 3.38%, 3-31-2022 to 5-15-2044, fair value including accrued interest is $413,766,417. | |
| § | The security is subject to a demand feature which reduces the effective maturity. |
| ∂ | The security represents a long-dated and extendible repurchase agreement which automatically renews on previously set terms. The maturity date represents the next put date. |
| øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
| ± | Variable rate investment. The rate shown is the rate in effect at period end. |
| ☼ | Zero coupon security. The rate represents the current yield to maturity. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 13
Statement of assets and liabilities—January 31, 2022
| Assets | |
Investments in unaffiliated securities, at amortized cost | $ 8,577,244,982 |
Investments in repurchase agreements, at amortized cost | 14,706,450,947 |
Cash | 184,136 |
Receivable for investments sold | 49,994,688 |
Receivable for interest | 7,157,397 |
Receivable from manager | 546,937 |
Receivable for Fund shares sold | 35,103 |
Prepaid expenses and other assets | 1,472,029 |
Total assets | 23,343,086,219 |
| Liabilities | |
Payable for investments purchased | 49,989,889 |
Administration fees payable | 1,762,327 |
Payable for Fund shares redeemed | 244,235 |
Dividends payable | 120,654 |
Accrued expenses and other liabilities | 34,870 |
Total liabilities | 52,151,975 |
Total net assets | $23,290,934,244 |
| Net assets consist of | |
Paid-in capital | $ 23,291,186,459 |
Total distributable loss | (252,215) |
Total net assets | $23,290,934,244 |
| Computation of net asset value per share | |
Net assets – Class A | $ 2,421,542,325 |
Shares outstanding – Class A1 | 2,421,326,490 |
Net asset value per share – Class A | $1.00 |
Net assets – Administrator Class | $ 117,555,835 |
Shares outstanding – Administrator Class1 | 117,547,725 |
Net asset value per share – Administrator Class | $1.00 |
Net assets – Institutional Class | $ 14,984,670,384 |
Shares outstanding – Institutional Class1 | 14,983,539,747 |
Net asset value per share – Institutional Class | $1.00 |
Net assets – Select Class | $ 4,360,651,693 |
Shares outstanding – Select Class1 | 4,360,246,689 |
Net asset value per share – Select Class | $1.00 |
Net assets – Service Class | $ 1,406,514,007 |
Shares outstanding – Service Class1 | 1,406,407,210 |
Net asset value per share – Service Class | $1.00 |
| 1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
14 | Government Money Market Funds
Statement of operations—year ended January 31, 2022
| Investment income | |
Interest | $ 16,772,807 |
| Expenses | |
Management fee | 31,503,929 |
| Administration fees | |
Class A | 4,405,629 |
Administrator Class | 87,097 |
Institutional Class | 12,314,042 |
Select Class | 1,747,665 |
Service Class | 1,744,808 |
| Shareholder servicing fees | |
Class A | 5,006,405 |
Administrator Class | 87,097 |
Service Class | 3,635,018 |
Custody and accounting fees | 884,727 |
Professional fees | 71,032 |
Registration fees | 304,347 |
Shareholder report expenses | 43,890 |
Trustees’ fees and expenses | 19,272 |
Other fees and expenses | 352,105 |
Total expenses | 62,207,063 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level | (27,974,397) |
Class A | (8,616,730) |
Administrator Class | (139,817) |
Institutional Class | (6,229,156) |
Service Class | (4,805,354) |
Net expenses | 14,441,609 |
Net investment income | 2,331,198 |
Net realized gains on investments | 78,655 |
Net increase in net assets resulting from operations | $ 2,409,853 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 15
Statement of changes in net assets
| Year ended January 31, 2022 | Year ended January 31, 2021 | |||
| Operations | ||||
Net investment income | $ 2,331,198 | $ 31,525,314 | ||
Net realized gains on investments | 78,655 | 100,625 | ||
Net increase in net assets resulting from operations | 2,409,853 | 31,625,939 | ||
| Distributions to shareholders from | ||||
| Net investment income and net realized gains | ||||
Class A | (214,632) | (1,570,166) | ||
Administrator Class | (9,840) | (274,712) | ||
Institutional Class | (1,626,052) | (24,959,137) | ||
Select Class | (469,032) | (3,152,338) | ||
Service Class | (153,404) | (1,646,130) | ||
Total distributions to shareholders | (2,472,960) | (31,602,483) | ||
| Capital share transactions | Shares | Shares | ||
| Proceeds from shares sold | ||||
Class A | 17,292,778,758 | 17,292,778,758 | 9,941,597,730 | 9,941,597,730 |
Administrator Class | 301,493,085 | 301,493,085 | 575,602,412 | 575,602,412 |
Institutional Class | 78,183,860,257 | 78,183,860,257 | 89,663,135,695 | 89,663,135,695 |
Select Class | 158,221,246,956 | 158,221,246,956 | 84,526,317,126 | 84,526,317,126 |
Service Class | 8,837,003,941 | 8,837,003,941 | 6,391,237,824 | 6,391,237,824 |
| 262,836,382,997 | 191,097,890,787 | |||
| Reinvestment of distributions | ||||
Class A | 102,289 | 102,289 | 827,512 | 827,512 |
Administrator Class | 9,834 | 9,834 | 284,450 | 284,450 |
Institutional Class | 513,020 | 513,020 | 9,197,042 | 9,197,042 |
Select Class | 321,522 | 321,522 | 2,646,092 | 2,646,092 |
Service Class | 31,358 | 31,358 | 396,877 | 396,877 |
| 978,023 | 13,351,973 | |||
| Payment for shares redeemed | ||||
Class A | (16,408,606,695) | (16,408,606,695) | (9,784,258,186) | (9,784,258,186) |
Administrator Class | (327,688,424) | (327,688,424) | (569,238,199) | (569,238,199) |
Institutional Class | (79,078,616,429) | (79,078,616,429) | (85,088,285,515) | (85,088,285,515) |
Select Class | (156,979,444,837) | (156,979,444,837) | (82,102,590,260) | (82,102,590,260) |
Service Class | (8,846,695,273) | (8,846,695,273) | (6,144,319,269) | (6,144,319,269) |
| (261,641,051,658) | (183,688,691,429) | |||
Net increase in net assets resulting from capital share transactions | 1,196,309,362 | 7,422,551,331 | ||
Total increase in net assets | 1,196,246,255 | 7,422,574,787 | ||
| Net assets | ||||
Beginning of period | 22,094,687,989 | 14,672,113,202 | ||
End of period | $ 23,290,934,244 | $ 22,094,687,989 | ||
The accompanying notes are an integral part of these financial statements.
16 | Government Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Class A | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.02 | 0.01 | 0.00 1 |
Net realized gains (losses) on investments | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.01 | 0.00 1 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.01) | (0.00) 1 |
Net realized gains | (0.00) 1 | 0.00 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.01) | (0.00) 1 |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.12% | 1.56% | 1.37% | 0.38% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.61% | 0.61% | 0.61% | 0.61% | 0.62% |
Net expenses | 0.06% * | 0.25% * | 0.60% | 0.60% | 0.61% |
Net investment income | 0.01% | 0.11% | 1.53% | 1.36% | 0.38% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $2,421,542 | $1,537,192 | $1,379,059 | $1,202,749 | $1,291,723 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.54% |
| Year ended January 31, 2021 | 0.35% |
| 1 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 17
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Administrator Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
Net realized gains (losses) on investments | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net realized gains | (0.00) 1 | 0.00 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.16% | 1.83% | 1.63% | 0.65% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.34% | 0.34% | 0.34% | 0.35% | 0.35% |
Net expenses | 0.06% * | 0.24% * | 0.34% | 0.35% | 0.35% |
Net investment income | 0.01% | 0.16% | 1.84% | 1.48% | 0.61% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $117,556 | $143,745 | $137,102 | $101,340 | $142,198 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.28% |
| Year ended January 31, 2021 | 0.10% |
| 1 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
18 | Government Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Institutional Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
Net realized gains (losses) on investments | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net realized gains | (0.00) 1 | 0.00 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.21% | 1.97% | 1.78% | 0.79% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.22% | 0.22% | 0.22% | 0.22% | 0.23% |
Net expenses | 0.06% * | 0.18% * | 0.20% | 0.20% | 0.20% |
Net investment income | 0.01% | 0.16% | 1.95% | 1.77% | 0.81% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $14,984,670 | $15,879,274 | $11,295,226 | $12,466,864 | $13,085,244 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.14% |
| Year ended January 31, 2021 | 0.02% |
| 1 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 19
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||
| Select Class | 2022 | 2021 | 2020 1 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 2 | 0.00 2 | 0.02 |
Net realized gains (losses) on investments | 0.00 2 | 0.00 2 | 0.00 2 |
Total from investment operations | 0.00 2 | 0.00 2 | 0.02 |
| Distributions to shareholders from | |||
Net investment income | (0.00) 2 | (0.00) 2 | (0.02) |
Net realized gains | (0.00) 2 | 0.00 | (0.00) 2 |
Total distributions to shareholders | (0.00) 2 | (0.00) 2 | (0.02) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.24% | 1.74% |
| Ratios to average net assets (annualized) | |||
Gross expenses | 0.18% | 0.18% | 0.18% |
Net expenses | 0.06% 3 | 0.14% | 0.14% |
Net investment income | 0.01% | 0.09% | 1.81% |
| Supplemental data | |||
Net assets, end of period (000s omitted) | $4,360,652 | $3,118,274 | $691,825 |
| 1 | For the period from March 15, 2019 (commencement of class operations) to January 31, 2020 |
| 2 | Amount is less than $0.005. |
| 3 | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would have been 0.08% higher. |
The accompanying notes are an integral part of these financial statements.
20 | Government Money Market Funds
Financial highlights
(For a share outstanding throughout each period)
| Year ended January 31 | |||||
| Service Class | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Net investment income | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
Net realized gains (losses) on investments | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 | 0.00 1 |
Total from investment operations | 0.00 1 | 0.00 1 | 0.02 | 0.02 | 0.01 |
| Distributions to shareholders from | |||||
Net investment income | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net realized gains | (0.00) 1 | 0.00 | (0.00) 1 | (0.00) 1 | (0.00) 1 |
Total distributions to shareholders | (0.00) 1 | (0.00) 1 | (0.02) | (0.02) | (0.01) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return | 0.01% | 0.14% | 1.72% | 1.53% | 0.54% |
| Ratios to average net assets (annualized) | |||||
Gross expenses | 0.51% | 0.51% | 0.51% | 0.51% | 0.52% |
Net expenses | 0.06% * | 0.23% * | 0.45% | 0.45% | 0.45% |
Net investment income | 0.01% | 0.12% | 1.71% | 1.51% | 0.54% |
| Supplemental data | |||||
Net assets, end of period (000s omitted) | $1,406,514 | $1,416,203 | $1,168,901 | $1,431,420 | $1,459,295 |
| * | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
| Year ended January 31, 2022 | 0.39% |
| Year ended January 31, 2021 | 0.22% |
| 1 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 21
Notes to financial statements
1. ORGANIZATION
Allspring Funds Trust (the "Trust"), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Treasury Plus Money Market Fund (the "Fund") which is a diversified series of the Trust.
Effective on November 1, 2021, the sale transaction of Wells Fargo Asset Management ("WFAM") by Wells Fargo & Company to GTCR LLC and Reverence Capital Partners, L.P. was closed. In connection with the closing of the transaction, WFAM became known as Allspring Global Investments (“Allspring”) and various entities that provided services to the Fund changed their names to "Allspring", including Allspring Funds Management, LLC, the investment manager to the Fund, Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited, both registered investment advisers providing subadvisory services to certain funds, and Allspring Funds Distributor, LLC, the Fund's principal underwriter. Consummation of the transaction resulted in a new investment management agreement and subadvisory agreement which became effective on November 1, 2021.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
As permitted under Rule 2a-7 of the 1940 Act, portfolio securities are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Allspring Global Investments Pricing Committee at Allspring Funds Management, LLC ("Allspring Funds Management"). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Allspring Global Investments Pricing Committee which may include items for ratification.
Repurchase agreements
The Fund may invest in repurchase agreements and may participate in pooled repurchase agreement transactions with other funds advised by Allspring Funds Management. Repurchase agreements are agreements where the seller of a security to the Fund agrees to repurchase that security from the Fund at a mutually agreed upon time and price. The repurchase agreements must be fully collateralized based on values that are marked-to-market daily. The collateral may be held by an agent bank under a tri-party agreement. It is the custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain market value equal to or greater than the resale price (including accrued interest). The repurchase agreements are collateralized by securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. There could be potential loss to the Fund in the event that the Fund is delayed or prevented from exercising its rights to dispose of the collateral, including the risk of a possible decline in the value of the underlying obligations during the period in which the Fund seeks to assert its rights.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund's commitment to purchase when-issued securities. Securities purchased on a when-issued basis are valued using amortized cost which approximates market value and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
22 | Government Money Market Funds
Notes to financial statements
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund's fiscal year end. Therefore, a portion of the Fund's distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund's tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of January 31, 2022, the cost of investments for federal income tax purposes is substantially the same as for financial reporting purposes.
Class allocations
The separate classes of shares offered by the Fund differ principally in shareholder servicing and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
| ■ | Level 1 – quoted prices in active markets for identical securities |
| ■ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
| ■ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
Government Money Market Funds | 23
Notes to financial statements
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of January 31, 2022:
| Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
| Assets | ||||
| Investments in: | ||||
| Repurchase agreements | $0 | $ 14,706,450,947 | $0 | $ 14,706,450,947 |
| U.S. Treasury securities | 0 | 8,577,244,982 | 0 | 8,577,244,982 |
| Total assets | $0 | $23,283,695,929 | $0 | $23,283,695,929 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended January 31, 2022, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Allspring Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Allspring Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
| Average daily net assets | Management fee |
| First $5 billion | 0.150% |
| Next $5 billion | 0.140 |
| Next $5 billion | 0.130 |
| Next $85 billion | 0.125 |
| Over $100 billion | 0.120 |
Prior to June 1, 2021, the management fee rate was as follows:
| Average daily net assets | Rate prior to June 1, 2021 |
| First $5 billion | 0.150% |
| Next $5 billion | 0.140 |
| Over $10 billion | 0.130 |
For the year ended January 31, 2022, the management fee was equivalent to an annual rate of 0.14% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase.
Administration fees
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement,
24 | Government Money Market Funds
Notes to financial statements
Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
| Class-level administration fee | |
| Class A | 0.22% |
| Administrator Class | 0.10 |
| Institutional Class | 0.08 |
| Select Class | 0.04 |
| Service Class | 0.12 |
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through May 31, 2022 to waive fees and/or reimburse expenses to the extent necessary to cap expenses. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. In addition to the contractual waivers and/or reimbursements, Allspring Funds Management also voluntarily waived certain class-level expenses during the year ended January 31, 2022 in order to maintain a positive yield. These voluntary class-level waivers may be discontinued at any time. The contractual expense caps are as follows:
| Expense ratio caps | |
| Class A | 0.60% |
| Administrator Class | 0.34 |
| Institutional Class | 0.20 |
| Select Class | 0.14 |
| Service Class | 0.45 |
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A and Service Class of the Fund are charged a fee at an annual rate of 0.25% of the respective average daily net assets of each class. Administrator Class is charged a fee at an annual rate of 0.10% of its average daily net assets. A portion of these total shareholder servicing fees were paid to affiliates, and to certain entities that were affiliates of the Fund until November 1, 2021.
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices.
5. DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid was $2,472,960 and $31,602,483 of ordinary income for the years ended January 31, 2022 and January 31, 2021, respectively.
As of January 31, 2022, distributable earnings on a tax basis consisted of $38,607 in undistributed ordinary income.
6. INDEMNIFICATION
Under the Fund's organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational
Government Money Market Funds | 25
Notes to financial statements
documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
7. CORONAVIRUS (COVID-19) PANDEMIC
On March 11, 2020, the World Health Organization announced that it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general. There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial markets.
26 | Government Money Market Funds
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring Treasury Plus Money Market Fund (formerly, Wells Fargo Treasury Plus Money Market Fund) (the Fund), one of the funds constituting Allspring Funds Trust (formerly, Wells Fargo Funds Trust), including the portfolio of investments, as of January 31, 2022, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of January 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of January 31, 2022, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
March 30, 2022
Government Money Market Funds | 27
Other information (unaudited)
TAX INFORMATION
For the fiscal year ended January 31, 2022, $2,312,612 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.
For the fiscal year ended January 31, 2022, $141,763 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.
For the fiscal year ended January 31, 2022, 69% of the ordinary income distributed was derived from interest on U.S. government securities.
For corporate shareholders, pursuant to Section 163(j) of the Internal Revenue Code, 100% of ordinary income dividends qualify as interest dividends for the fiscal year ended January 31, 2022.
PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
SPECIAL MEETING OF SHAREHOLDERS
On October 15, 2021, a Special Meeting of Shareholders for the Fund was held to consider the following proposals. The results of the proposals are indicated below.
Proposal 1 – To consider and approve a new investment management agreement with Wells Fargo Funds Management, LLC*.
| Shares voted “For” | 9,814,671,096 |
| Shares voted “Against” | 16,783,546 |
| Shares voted “Abstain” | 2,427,634,903 |
Proposal 2 – To consider and approve a new subadvisory agreement with Wells Capital Management, LLC**.
| Shares voted “For” | 9,818,924,095 |
| Shares voted “Against” | 18,704,483 |
| Shares voted “Abstain” | 2,421,460,967 |
* Effective November 1, 2021, known as Allspring Funds Management, LLC.
** Effective November 1, 2021, known as Allspring Global Investments, LLC.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at allspringglobal.com.
28 | Government Money Market Funds
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Allspring family of funds, which consists of 139 mutual funds comprising the Allspring Funds Trust, Allspring Variable Trust, Allspring Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information1. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
| Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
| William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A |
| Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A |
| Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chair, since 2019 | Retired. Chairman of the Board of CIGNA Corporation from 2009 to 2021, and Director from 2005 to 2008. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Fellowship of Christian Athletes. Mr. Harris is a certified public accountant (inactive status). | N/A |
| David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business (Emeritus), Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A |
Government Money Market Funds | 29
Other information (unaudited)
| Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
| Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor since 1993, Wharton School of the University of Pennsylvania. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously taught at Cornell University from 1978 to 1993. | N/A |
| Timothy J. Penny (Born 1951) | Trustee, since 1996; Chair, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A |
| James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A |
| Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019. Interim President of the McKnight Foundation from January to September 2020. McKnight Foundation Consultant, November 2020 to February 2021. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Consultant (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
30 | Government Money Market Funds
Other information (unaudited)
Officers2
| Name and year of birth | Position held and length of service | Principal occupations during past five years or longer |
| Andrew Owen (Born 1960) | President, since 2017 | President, Chief Executive Officer and Director of Allspring Funds Management, LLC since 2017 and co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, since 2019. Prior thereto, Head of Affiliated Managers, Allspring Global Investments, from 2014 to 2019 and Executive Vice President responsible for marketing, investments and product development for Allspring Funds Management, LLC, from 2009 to 2014. In addition, Mr. Owen was an Executive Vice President of Wells Fargo & Company from 2014 to 2021. |
| Jeremy DePalma (Born 1974) | Treasurer, since 2012 (for certain funds in the Fund Complex); since 2021 (for the remaining funds in the Fund Complex) | Senior Vice President of Allspring Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration. |
| Kate McKinley (Born 1977) | Chief Legal Officer, since 2021 | Chief Legal Officer of Allspring Global Investments since 2021. Prior thereto, held various roles at State Street Global Advisors beginning in 2010, including serving as Senior Vice President and General Counsel from 2019 to 2021, and Chief Operating Officer of the Institutional Client Group from 2016 - 2019. Prior to working at State Street Global Advisors served as Assistant General Counsel for Bank of America Corporation from 2005 to 2010 and as an Associate at WilmerHale from 2002 to 2005. |
| Christopher Baker (Born 1976) | Chief Compliance Officer, since 2022 | Global Chief Compliance Officer for Allspring Global Investments since 2022. Prior thereto, Chief Compliance Officer for State Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015 Vice President, Global Head of Investment and Marketing Compliance for State Street Global Advisors. |
| Matthew Prasse (Born 1983) | Secretary, since 2021 | Senior Counsel of the Allspring Legal Department since 2021. Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021. Previously, Counsel for Barings LLC from 2015 to 2018. Prior to joining Barings, Associate at Morgan, Lewis & Bockius LLP from 2008 to 2015. |
1 The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at allspringglobal.com.
2 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to 2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
Government Money Market Funds | 31
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund's website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2022 Allspring Global Investments Holdings, LLC. All rights reserved.
PAR-0222-00706 03-22
A314/AR314 01-22
A314/AR314 01-22
| ITEM 2. | CODE OF ETHICS |
(a) As of the end of the period covered by the report, Allspring Funds Trust has adopted a code of ethics that applies to its President and Treasurer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
(c) During the period covered by this report, there were no amendments to the provisions of the code of ethics adopted in Item 2(a) above.
(d) During the period covered by this report, there were no implicit or explicit waivers to the provisions of the code of ethics adopted in Item 2(a) above.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
The Board of Trustees of Allspring Funds Trust has determined that Isaiah Harris is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Harris is independent for purposes of Item 3 of Form N-CSR.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
(a), (b), (c), (d) The following table presents aggregate fees billed in each of the last two fiscal years for services rendered to the Registrant by the Registrant’s principal accountant. These fees were billed to the registrant and were approved by the Registrant’s audit committee.
| Fiscal year ended January 31, 2022 | Fiscal year ended January 31, 2021 | |||||||
Audit fees | $ | 328,850 | $ | 269,220 | ||||
Audit-related fees(1) | 16,400 | — | ||||||
Tax fees(2) | 14,665 | 12,120 | ||||||
All other fees | — | — | ||||||
|
|
|
| |||||
| $ | 359,915 | $ | 281,340 | |||||
|
|
|
| |||||
| (1) | Amount represents fees related to the merger of Allspring Cash Investment Money Market Fund into Allspring Heritage Money Market Fund on March 26, 2021. |
| (2) | Tax fees consist of fees for tax compliance, tax advice, tax planning and excise tax. |
(e) The Chair of the Audit Committees is authorized to pre-approve: (1) audit services for the mutual funds of Allspring Funds Trust; (2) non-audit tax or compliance consulting or training services provided to
the Funds by the independent auditors (“Auditors”) if the fees for any particular engagement are not anticipated to exceed $50,000; and (3) non-audit tax or compliance consulting or training services provided by the Auditors to a Fund’s investment adviser and its controlling entities (where pre-approval is required because the engagement relates directly to the operations and financial reporting of the Fund) if the fee to the Auditors for any particular engagement is not anticipated to exceed $50,000. For any such pre-approval sought from the Chair, Management shall prepare a brief description of the proposed services.
If the Chair approves of such service, he or she shall sign the statement prepared by Management. Such written statement shall be presented to the full Committees at their next regularly scheduled meetings.
(f) Not applicable
(g) Not applicable
(h) Not applicable
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS |
Not applicable.
| ITEM 6. | INVESTMENTS |
A Portfolio of Investments for each series of Allspring Funds Trust is included as part of the report to shareholders filed under Item 1 of this Form.
| ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
Not applicable.
| ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
Not applicable.
| ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS |
Not applicable.
| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.
| ITEM 11. | CONTROLS AND PROCEDURES |
(a) The President and Treasurer have concluded that the Allspring Funds Trust disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the registrant is made known to them by the appropriate persons based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.
(b) There were no significant changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the most recent fiscal half-year of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
| ITEM 12. | DISCLOSURES OF SECURITIES LENDING ACTIVITES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
Not applicable.
| ITEM 13. | EXHIBITS |
(a)(1) Code of Ethics.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Allspring Funds Trust | ||
By: | ||
/s/ Andrew Owen | ||
Andrew Owen | ||
President | ||
Date: | March 30, 2022 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.
| Allspring Funds Trust | ||
| By: | ||
| /s/ Andrew Owen | ||
| Andrew Owen | ||
| President | ||
| Date: | March 30, 2022 | |
| By: | ||
| /s/ Jeremy DePalma | ||
| Jeremy DePalma | ||
| Treasurer | ||
| Date: | March 30, 2022 | |