UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
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)
1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203
(Address of principal executive offices) (Zip code)
Matthew Prasse
Allspring Funds Management, LLC
1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-222-8222
Date of fiscal year end: September 30
Registrant is making a filing for 12 of its series:
Allspring Diversified Capital Builder Fund, Allspring Diversified Income Builder Fund, Allspring Index Asset Allocation Fund, Allspring International Bond Fund, Allspring Income Plus Fund, Allspring Global Investment Grade Credit Fund, Allspring C&B Mid Cap Value Fund, Allspring Common Stock Fund, Allspring Discovery SMID Cap Growth Fund, Allspring Discovery Mid Cap Growth Fund, Allspring Opportunity Fund, and Allspring Special Mid Cap Value Fund.
Date of reporting period: March 31, 2023
| ITEM 1. | REPORT TO STOCKHOLDERS |
Semi-Annual Report
March 31, 2023
Allspring International Bond Fund
The views expressed and any forward-looking statements are as of March 31, 2023, 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.
Allspring International Bond Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring International Bond Fund for the six-month period that ended March 31, 2023. Globally, stocks and bonds rebounded strongly despite ongoing volatility. While navigating persistently high inflation and the impact of ongoing aggressive central bank rate hikes, markets rallied on signs of declining inflation, anticipation of an end to the central bank monetary tightening cycle, and the stimulating impact of China removing its strict COVID-19 lockdowns in December. For the six-month period, domestic U.S. and global stocks and bonds had strong results. After suffering deep and broad losses through 2022, recent fixed income performance benefited from a base of higher yields that can now generate higher income.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 15.62%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 22.13%, while the MSCI EM Index (Net) (USD)3 returned 14.04%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 4.89%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned 10.07%, the Bloomberg Municipal Bond Index6 gained 7.00%, and the ICE BofA U.S. High Yield Index7 returned 7.89%.
Despite high inflation and central bank rate hikes, markets rally.
Equities had a reprieve in October. Value stocks and small caps fared best. Globally, developed markets outpaced emerging market equities, which were hurt by weakness among Chinese stocks. Central banks continued to try to curtail high inflation with aggressive interest rate hikes. Geopolitical risks persisted, including the ongoing Russia-Ukraine war and economic, financial market, and political turmoil in the U.K. Concerns over Europe’s energy crisis eased thanks to unseasonably warm weather and plentiful gas on hand. The U.S. labor market continued its resilience against rising prices as unemployment remained near a record low.
Stocks and bonds rallied in November. Economic news was encouraging, driven by U.S. labor market strength. Although central banks kept raising rates, hopes rose for an easing in the pace of rate hikes and a possible end to central bank monetary tightening in 2023. Although inflation remained at record highs in the eurozone, we began to see signs of a possible decline in inflationary pressures as U.S. inflation moderated, with a 7.1% annual price rise in November and a monthly price increase of just 0.1%. China’s economic data remained weak, reflecting its zero-COVID-19 policy.
| 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 2023. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring International Bond Fund
Letter to shareholders (unaudited)
Financial markets cooled in December, with U.S. equities posting negative overall results in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever with flat overall monthly returns as markets weighed the hopes for an end to the monetary tightening cycle with the reality that central banks had not completed their jobs yet. U.S. Consumer Price Index (CPI)1 data showed a strong consistent trend downward, which brought down the 12-month CPI to 6.5% in December from 9.1% in June. Other countries and regions reported still-high but declining inflation rates as the year winded down.
The year 2023 began with a rally across global equities and fixed income securities. Investor optimism rose in response to data indicating declining inflation rates and the reopening of China’s economy with the abrupt end to its zero-COVID-19 policy. The U.S. reported surprisingly strong job gains––employers added more than 500,000 jobs––and unemployment fell to 3.4%, the lowest level since 1969. Meanwhile, wage growth, seen as a potential contributor to ongoing high inflation, continued to moderate. All eyes remained fixed on the Federal Reserve (Fed) and on how many more rate hikes remain in this tightening cycle. The 0.25% federal funds rate hike announced in January was the Fed’s smallest rate increase since March 2022.
Financial markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks will likely continue their monetary tightening cycle for longer than markets had priced in. In this environment—where strong economic data is seen as bad news—the resilient U.S. labor market was seen as a negative while the inflation rate has not been falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the Bank of England and the European Central Bank both raised rates by 0.50%. At this stage in the economic cycle, the overriding question remained: “What will central banks do?” In February, the answer appeared to be: “Move rates higher for longer.”
The collapse of Silicon Valley Bank in March, the second-largest banking failure in U.S. history, led to a classic bank run that spread to Europe, where Switzerland’s Credit Suisse was taken over by its rival, UBS. The sudden banking industry uncertainty led some clients of regional banks to transfer deposits to a handful of U.S. banking giants while bank shareholders sold stock. The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. The U.S. labor market remained resilient. The euro-area composite Purchasing Managers’ Index2 rose to 53.70, indicating expansion, for March. And China’s economy continued to rebound after the removal of its COVID-19 lockdown. Inflation rates in the U.S., the U.K., and Europe all remained higher than central bank targets, leading to additional rate hikes in March.
“ The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China.”
| 1 | The U.S. 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. |
| 2 | The Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. You cannot invest directly in an index. |
Allspring International Bond Fund | 3
Letter to shareholders (unaudited)
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.
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
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.
4 | Allspring International Bond Fund
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Performance highlights (unaudited)
| Investment objective | The Fund seeks total return, consisting of income and capital appreciation. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments (UK) Limited |
| Portfolio managers | Michael Lee, Henrietta Pacquement, CFA, Alex Perrin, Lauren van Biljon, CFA |
| Average annual total returns (%) as of March 31, 2023 |
| | | 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 (ESIYX) | 9-30-2003 | -17.61 | -5.65 | -2.76 | | -13.75 | -4.79 | -2.31 | | 1.25 | 1.03 |
| Class C (ESIVX) | 9-30-2003 | -15.36 | -5.38 | -2.84 | | -14.36 | -5.38 | -2.84 | | 2.00 | 1.78 |
| Class R6 (ESIRX) | 11-30-2012 | – | – | – | | -13.40 | -4.41 | -1.93 | | 0.87 | 0.65 |
| Administrator Class (ESIDX) | 7-30-2010 | – | – | – | | -13.70 | -4.62 | -2.15 | | 1.19 | 0.85 |
| Institutional Class (ESICX) | 12-15-1993 | – | – | – | | -13.46 | -4.47 | -1.99 | | 0.92 | 0.70 |
| Bloomberg Global Aggregate ex-USD Index3 | – | – | – | – | | -10.72 | -3.17 | -0.99 | | – | – |
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 return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. 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.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
For Class A shares, the maximum front-end sales charge is 4.50%. 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. Class R6, Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
| 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 January 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.03% for Class A, 1.78% for Class C, 0.65% for Class R6, 0.85% for Administrator Class, and 0.70% for Institutional 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. 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 | The Bloomberg Global Aggregate ex-USD Index 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. |
Bond 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 held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. The use of derivatives may reduce returns and/or increase volatility. Securities issued by U.S. government agencies or government-sponsored entities may not be guaranteed by the U.S. Treasury. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to high-yield securities risk and geographic risk. Consult the Fund’s prospectus for additional information on these and other risks.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
6 | Allspring International Bond Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of March 31, 20231 |
| Network Rail Infrastructure Finance plc, 4.75%, 11-29-2035 | 4.57 |
| Canada, 1.90%, 3-15-2031 | 4.29 |
| Italy, 0.95%, 6-1-2032 | 3.99 |
| Spain, 1.25%, 10-31-2030 | 3.98 |
| U.S. Treasury Note, 2.75%, 8-15-2032 | 3.72 |
| United Kingdom, 0.88%, 7-31-2033 | 2.73 |
| U.S. Treasury Note, 4.13%, 9-30-2027 | 2.56 |
| Australia, 2.75%, 11-21-2028 | 2.53 |
| Queensland Treasury Corporation, 1.50%, 8-20-2032 | 2.41 |
| Norway, 2.13%, 5-18-2032 | 2.35 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Portfolio allocation as of March 31, 20231 |
| 1 | Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
| Effective maturity distribution as of March 31, 20231 |
| 1 | Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring International Bond Fund | 7
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 October 1, 2022 to March 31, 2023.
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 sales charges (loads) and 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
10-1-2022 | Ending
account value
3-31-2023 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class A | | | | |
| Actual | $1,000.00 | $1,086.61 | $5.36 | 1.03% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.80 | $5.19 | 1.03% |
| Class C | | | | |
| Actual | $1,000.00 | $1,081.72 | $9.24 | 1.78% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,016.06 | $8.95 | 1.78% |
| Class R6 | | | | |
| Actual | $1,000.00 | $1,088.01 | $3.38 | 0.65% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,021.69 | $3.28 | 0.65% |
| Administrator Class | | | | |
| Actual | $1,000.00 | $1,085.49 | $4.42 | 0.85% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.69 | $4.28 | 0.85% |
| Institutional Class | | | | |
| Actual | $1,000.00 | $1,088.46 | $3.64 | 0.70% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,021.44 | $3.53 | 0.70% |
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 182 divided by 365 (to reflect the one-half-year period).
8 | Allspring International Bond Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | | Principal | Value |
| Corporate bonds and notes: 4.20% | | | | | | |
| United States: 4.20% | | | | | | |
| American Tower Corporation (Real estate, Specialized REITs) | | 3.80% | 8-15-2029 | $ | 200,000 | $ 185,869 |
| Anthem Incorporated (Health care, Health care providers & services) | | 2.55 | 3-15-2031 | | 200,000 | 172,124 |
| Bank of America Corporation (3 Month LIBOR +1.21%) (Financials, Banks) ± | | 3.97 | 2-7-2030 | | 200,000 | 186,936 |
| Berry Global Incorporated (Materials, Containers & packaging) | | 1.00 | 1-15-2025 | | 150,000 | 154,137 |
| BP Capital Markets America Incorporated (Energy, Oil, gas & consumable fuels) | | 1.75 | 8-10-2030 | | 200,000 | 165,504 |
| Broadcom Incorporated (Information technology, Semiconductors & semiconductor equipment) 144A | | 4.15 | 4-15-2032 | | 150,000 | 136,678 |
| Citigroup Incorporated (Financials, Banks) | | 3.20 | 10-21-2026 | | 150,000 | 141,511 |
| Coca Cola Company (Consumer staples, Beverages) | | 0.38 | 3-15-2033 | | 300,000 | 241,350 |
| JPMorgan Chase & Company (3 Month EURIBOR +1.13%) (Financials, Banks) ± | | 1.96 | 3-23-2030 | | 175,000 | 167,524 |
| Magallanes Incorporated (Communication services, Media) 144A | | 4.28 | 3-15-2032 | | 200,000 | 178,559 |
| McDonald's Corporation (Consumer discretionary, Hotels, restaurants & leisure) | | 2.38 | 5-31-2029 | | 175,000 | 176,100 |
| Motorola Solutions Incorporated (Information technology, Communications equipment) | | 2.75 | 5-24-2031 | | 200,000 | 165,160 |
| Oracle Corporation (Information technology, Software) | | 6.25 | 11-9-2032 | | 150,000 | 161,333 |
| Thermo Fisher Scientific Incorporated (Health care, Life sciences tools & services) | | 1.13 | 10-18-2033 | | 200,000 | 168,885 |
| Total Corporate bonds and notes (Cost $2,641,470) | | | | | | 2,401,670 |
| Foreign corporate bonds and notes: 9.56% | | | | | | |
| Belgium: 0.71% | | | | | | |
| Anheuser-Busch InBev SA (Consumer staples, Beverages) | | 2.88 | 4-2-2032 | EUR | 200,000 | 204,828 |
| KBC Group NV (Financials, Banks) | | 3.00 | 8-25-2030 | EUR | 200,000 | 201,463 |
| | | | | | | 406,291 |
| Canada: 0.31% | | | | | | |
| Toronto Dominion Bank (Financials, Banks) | | 2.55 | 8-3-2027 | EUR | 175,000 | 177,856 |
| France: 0.71% | | | | | | |
| BNP Paribas (Financials, Banks) | | 3.63 | 9-1-2029 | EUR | 200,000 | 209,607 |
| BPCE SA (Financials, Banks) | | 0.38 | 2-2-2026 | EUR | 200,000 | 197,172 |
| | | | | | | 406,779 |
| Germany: 0.37% | | | | | | |
| Eurogrid Company (Utilities, Electric utilities) | | 3.28 | 9-5-2031 | EUR | 100,000 | 106,232 |
| RWE AG (Utilities, Independent power & renewable electricity producers) | | 2.75 | 5-24-2030 | EUR | 100,000 | 100,735 |
| | | | | | | 206,967 |
The accompanying notes are an integral part of these financial statements.
Allspring International Bond Fund | 9
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | | Principal | Value |
| Ireland: 0.17% | | | | | | |
| Smurfit Kappa Treasury Company (Materials, Paper & forest products) | | 1.50% | 9-15-2027 | EUR | 100,000 | $ 97,561 |
| Netherlands: 1.58% | | | | | | |
| ABN Amro Bank NV (Financials, Banks) | | 0.50 | 9-23-2029 | EUR | 200,000 | 173,464 |
| American Medical Systems Europe BV (Health care, Health care providers & services) | | 1.63 | 3-8-2031 | EUR | 200,000 | 185,740 |
| Enel Finance International NV (Utilities, Electric utilities) | | 0.38 | 6-17-2027 | EUR | 175,000 | 165,095 |
| Koninklijke Philips NV (Health care, Health care equipment & supplies) | | 2.63 | 5-5-2033 | EUR | 175,000 | 168,572 |
| Shell International Finance Company (Financials, Financial services) | | 1.88 | 4-7-2032 | EUR | 225,000 | 210,019 |
| | | | | | | 902,890 |
| United Kingdom: 5.71% | | | | | | |
| Nationwide Building Society (Financials, Financial services) | | 3.25 | 9-5-2029 | EUR | 175,000 | 178,439 |
| NatWest Markets plc (Financials, Banks) | | 1.38 | 3-2-2027 | EUR | 175,000 | 170,873 |
| Network Rail Infrastructure Finance plc (Industrials, Transportation infrastructure) | | 4.75 | 11-29-2035 | GBP | 2,000,000 | 2,614,895 |
| Pinewood Finance Company Limited (Financials, Financial services) | | 3.25 | 9-30-2025 | GBP | 100,000 | 115,342 |
| Thames Water Utilities Finance plc (Utilities, Water utilities) | | 0.88 | 1-31-2028 | EUR | 200,000 | 187,154 |
| | | | | | | 3,266,703 |
| Total Foreign corporate bonds and notes (Cost $6,726,790) | | | | | | 5,465,047 |
| Foreign government bonds: 78.02% | | | | | | |
| Australia | | 1.75 | 11-21-2032 | AUD | 1,825,000 | 1,064,522 |
| Australia | | 2.75 | 11-21-2028 | AUD | 2,200,000 | 1,445,566 |
| Brazil | | 10.00 | 1-1-2031 | BRL | 875,000 | 151,219 |
| Brazil | | 10.00 | 1-1-2025 | BRL | 1,100,000 | 210,586 |
| Brazil | | 10.00 | 1-1-2029 | BRL | 2,850,000 | 507,066 |
| Canada | | 1.50 | 12-1-2031 | CAD | 640,000 | 423,702 |
| Canada 144A | | 1.90 | 3-15-2031 | CAD | 3,675,000 | 2,456,064 |
| Canada | | 2.00 | 6-1-2032 | CAD | 950,000 | 652,875 |
| Canada | | 2.00 | 12-1-2051 | CAD | 700,000 | 414,235 |
| Chile | | 4.50 | 3-1-2026 | CLP | 120,000,000 | 144,322 |
| China | | 3.02 | 5-27-2031 | CNY | 1,750,000 | 258,202 |
| China | | 3.03 | 3-11-2026 | CNY | 2,600,000 | 383,998 |
| Colombia | | 6.00 | 4-28-2028 | COP | 1,885,000,000 | 323,775 |
| Czech Republic | | 0.25 | 2-10-2027 | CZK | 4,000,000 | 154,918 |
| Czech Republic | | 1.75 | 6-23-2032 | CZK | 37,000,000 | 1,342,590 |
| France | | 0.50 | 5-25-2029 | EUR | 675,000 | 643,219 |
| France | | 1.25 | 5-25-2038 | EUR | 1,010,000 | 849,252 |
| France | | 2.00 | 11-25-2032 | EUR | 1,050,000 | 1,060,877 |
| Germany ¤ | | 0.00 | 8-15-2029 | EUR | 775,000 | 728,141 |
| Germany | | 0.20 | 6-14-2024 | EUR | 355,000 | 373,140 |
| Germany | | 1.00 | 5-15-2038 | EUR | 1,180,000 | 1,046,306 |
| Germany | | 1.70 | 8-15-2032 | EUR | 350,000 | 361,401 |
| Hungary | | 1.50 | 8-26-2026 | HUF | 30,000,000 | 64,539 |
| Hungary | | 2.25 | 4-20-2033 | HUF | 40,000,000 | 68,241 |
| Indonesia | | 6.38 | 4-15-2032 | IDR | 13,600,000,000 | 886,773 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring International Bond Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | | Principal | Value |
| Foreign government bonds: 78.02% (continued) | | | | | | |
| Indonesia | | 6.50% | 6-15-2025 | IDR | 3,150,000,000 | $ 210,728 |
| Indonesia | | 7.00 | 2-15-2033 | IDR | 14,000,000,000 | 947,924 |
| Italy ¤ | | 0.00 | 4-1-2026 | EUR | 775,000 | 760,295 |
| Italy 144A | | 0.60 | 8-1-2031 | EUR | 750,000 | 624,753 |
| Italy | | 0.95 | 6-1-2032 | EUR | 2,725,000 | 2,279,346 |
| Korea | | 1.88 | 6-10-2029 | KRW | 900,000,000 | 637,069 |
| Korea | | 2.38 | 12-10-2031 | KRW | 740,000,000 | 529,119 |
| Korea | | 3.13 | 9-10-2027 | KRW | 1,450,000,000 | 1,107,754 |
| Malaysia | | 3.58 | 7-15-2032 | MYR | 3,700,000 | 816,926 |
| Malaysia | | 3.90 | 11-30-2026 | MYR | 1,100,000 | 252,788 |
| Mexico | | 5.75 | 3-5-2026 | MXN | 7,400,000 | 370,333 |
| Mexico | | 7.50 | 5-26-2033 | MXN | 8,700,000 | 440,084 |
| Mexico | | 8.00 | 11-7-2047 | MXN | 6,000,000 | 296,221 |
| Mexico | | 8.50 | 5-31-2029 | MXN | 22,215,000 | 1,212,912 |
| Netherlands 144A | | 2.50 | 7-15-2033 | EUR | 475,000 | 507,766 |
| New South Wales | | 1.50 | 2-20-2032 | AUD | 980,000 | 533,083 |
| New South Wales | | 3.00 | 5-20-2027 | AUD | 1,040,000 | 683,792 |
| New Zealand | | 1.50 | 5-15-2031 | NZD | 1,300,000 | 661,686 |
| New Zealand | | 3.50 | 4-14-2033 | NZD | 1,300,000 | 766,227 |
| Norway 144A | | 2.13 | 5-18-2032 | NOK | 15,100,000 | 1,345,152 |
| Poland | | 0.25 | 10-25-2026 | PLN | 1,075,000 | 204,042 |
| Poland | | 1.25 | 10-25-2030 | PLN | 1,275,000 | 211,963 |
| Poland | | 1.75 | 4-25-2032 | PLN | 4,000,000 | 656,180 |
| Poland | | 2.75 | 10-25-2029 | PLN | 425,000 | 81,564 |
| Queensland Treasury Corporation 144A | | 1.50 | 8-20-2032 | AUD | 2,550,000 | 1,376,309 |
| Republic of Peru | | 6.35 | 8-12-2028 | PEN | 600,000 | 155,497 |
| Republic of South Africa | | 8.75 | 2-28-2048 | ZAR | 7,700,000 | 330,142 |
| Republic of South Africa | | 8.75 | 2-28-2048 | ZAR | 4,750,000 | 203,659 |
| Republic of South Africa | | 10.50 | 12-21-2026 | ZAR | 16,000,000 | 955,705 |
| Romania | | 2.50 | 10-25-2027 | RON | 475,000 | 85,109 |
| Romania | | 3.25 | 6-24-2026 | RON | 650,000 | 126,315 |
| Romania | | 3.65 | 9-24-2031 | RON | 2,475,000 | 414,708 |
| Romania | | 4.85 | 4-22-2026 | RON | 2,550,000 | 522,743 |
| Romania | | 5.00 | 2-12-2029 | RON | 2,675,000 | 520,172 |
| Russia (Acquired 9-23-2020, cost $3,553,656) ♦†> | | 4.50 | 7-16-2025 | RUB | 283,800,000 | 0 |
| Spain ¤ | | 0.00 | 1-31-2026 | EUR | 675,000 | 675,305 |
| Spain 144A | | 1.00 | 7-30-2042 | EUR | 640,000 | 438,075 |
| Spain 144A | | 1.25 | 10-31-2030 | EUR | 2,395,000 | 2,276,776 |
| Thailand | | 1.60 | 12-17-2029 | THB | 35,500,000 | 1,001,082 |
| Thailand | | 3.35 | 6-17-2033 | THB | 6,500,000 | 205,908 |
| United Kingdom | | 0.88 | 7-31-2033 | GBP | 1,645,000 | 1,564,065 |
| United Kingdom | | 1.25 | 7-31-2051 | GBP | 925,000 | 635,182 |
| United Kingdom | | 3.25 | 1-31-2033 | GBP | 410,000 | 494,671 |
| United Kingdom | | 3.75 | 1-29-2038 | GBP | 400,000 | 490,031 |
| Total Foreign government bonds (Cost $52,259,873) | | | | | | 44,624,690 |
| U.S. Treasury securities: 6.28% | | | | | | |
| U.S. Treasury Note | | 2.75 | 8-15-2032 | $ | 2,260,000 | 2,126,872 |
| U.S. Treasury Note | | 4.13 | 9-30-2027 | | 1,440,000 | 1,467,112 |
| Total U.S. Treasury securities (Cost $3,513,670) | | | | | | 3,593,984 |
The accompanying notes are an integral part of these financial statements.
Allspring International Bond Fund | 11
Portfolio of investments—March 31, 2023 (unaudited)
| | | Yield | | | Shares | Value |
| Short-term investments: 1.38% | | | | | | |
| Investment companies: 1.38% | | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 4.69% | | | 790,099 | $ 790,099 |
| Total Short-term investments (Cost $790,099) | | | | | | 790,099 |
| Total investments in securities (Cost $65,931,902) | 99.44% | | | | | 56,875,490 |
| Other assets and liabilities, net | 0.56 | | | | | 321,038 |
| Total net assets | 100.00% | | | | | $57,196,528 |
| ± | Variable rate investment. 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. |
| ¤ | The security is issued in zero coupon form with no periodic interest payments. |
| ♦ | The security is fair valued in accordance with Allspring Funds Management's valuation procedures, as the Board-designated valuation designee. |
| † | Non-income-earning security |
| > | Restricted security as to resale, excluding Rule 144A securities. The Fund held restricted securities with an aggregate current value of $0 (original aggregate cost of $3,553,656), representing 0.00% of its net assets as of period end. |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
| Abbreviations: |
| AUD | Australian dollar |
| BRL | Brazilian real |
| CAD | Canadian dollar |
| CLP | Chile Peso |
| CNY | China yuan |
| COP | Colombian peso |
| CZK | Czech Republic koruna |
| EUR | Euro |
| EURIBOR | Euro Interbank Offered Rate |
| GBP | Great British pound |
| HUF | Hungarian forint |
| IDR | Indonesian rupiah |
| KRW | Republic of Korea won |
| LIBOR | London Interbank Offered Rate |
| MXN | Mexican peso |
| MYR | Malaysian ringgit |
| NOK | Norwegian krone |
| NZD | New Zealand dollar |
| PEN | Peruvian sol |
| PLN | Polish zloty |
| REIT | Real estate investment trust |
| RON | Romanian lei |
| RUB | Russian ruble |
| THB | Thai baht |
| ZAR | South African rand |
The accompanying notes are an integral part of these financial statements.
12 | Allspring International Bond Fund
Portfolio of investments—March 31, 2023 (unaudited)
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | Net
change in
unrealized
gains
(losses) | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | |
| Allspring Government Money Market Fund Select Class | $831,989 | $10,059,291 | $(10,101,181) | $0 | $0 | $790,099 | 790,099 | $16,737 |
The accompanying notes are an integral part of these financial statements.
Allspring International Bond Fund | 13
Portfolio of investments—March 31, 2023 (unaudited)
Forward foreign currency contracts
Currency to be
received | Currency to be
delivered | Counterparty | Settlement
date | Unrealized
gains | Unrealized
losses |
| 3,640,323 USD | 5,380,000 AUD | State Street Bank & Trust Company | 6-6-2023 | $ 35,883 | $ 0 |
| 502,100 USD | 465,000 EUR | State Street Bank & Trust Company | 4-11-2023 | 0 | (2,384) |
| 100,000 EUR | 106,057 USD | State Street Bank & Trust Company | 4-11-2023 | 2,434 | 0 |
| 2,235,199 USD | 1,845,000 GBP | State Street Bank & Trust Company | 5-17-2023 | 0 | (42,796) |
| 177,407 USD | 68,000,000 HUF | State Street Bank & Trust Company | 4-11-2023 | 0 | (16,223) |
| 1,095,747 USD | 420,000,000 HUF | State Street Bank & Trust Company | 4-11-2023 | 0 | (100,201) |
| 135,848 USD | 51,000,000 HUF | State Street Bank & Trust Company | 4-11-2023 | 0 | (9,374) |
| 183,000,000 HUF | 495,989 USD | State Street Bank & Trust Company | 4-11-2023 | 25,103 | 0 |
| 288,000,000 HUF | 784,934 USD | State Street Bank & Trust Company | 4-11-2023 | 35,145 | 0 |
| 100,000,000 HUF | 280,371 USD | State Street Bank & Trust Company | 4-11-2023 | 4,378 | 0 |
| 850,449 USD | 13,250,000,000 IDR | State Street Bank & Trust Company | 4-12-2023 | 0 | (32,994) |
| 1,088,676 USD | 1,500,000 CAD | State Street Bank & Trust Company | 6-12-2023 | 0 | (22,439) |
| 475,686 USD | 7,190,000,000 IDR | State Street Bank & Trust Company | 4-12-2023 | 0 | (3,706) |
| 1,480,000,000 JPY | 11,375,646 USD | State Street Bank & Trust Company | 6-30-2023 | 0 | (86,214) |
| 1,266,024 USD | 1,590,000,000 KRW | State Street Bank & Trust Company | 5-8-2023 | 42,065 | 0 |
| 827,620 USD | 15,875,000 MXN | State Street Bank & Trust Company | 4-25-2023 | 0 | (49,734) |
| 281,521 USD | 5,400,000 MXN | State Street Bank & Trust Company | 4-25-2023 | 0 | (16,917) |
| 437,605 USD | 8,225,000 MXN | State Street Bank & Trust Company | 4-25-2023 | 0 | (16,961) |
| 400,000 MYR | 89,586 USD | State Street Bank & Trust Company | 6-1-2023 | 1,406 | 0 |
| 1,249,883 USD | 13,300,000 NOK | State Street Bank & Trust Company | 5-15-2023 | 0 | (22,841) |
| 28,214 USD | 300,000 NOK | State Street Bank & Trust Company | 5-15-2023 | 0 | (494) |
| 1,308,668 USD | 2,100,000 NZD | State Street Bank & Trust Company | 6-6-2023 | 0 | (4,532) |
| 51,400,000 CNY | 7,624,416 USD | State Street Bank & Trust Company | 5-15-2023 | 0 | (118,683) |
| 639,534 USD | 2,885,000 PLN | State Street Bank & Trust Company | 5-30-2023 | 0 | (26,532) |
| 987,368 USD | 34,000,000 THB | State Street Bank & Trust Company | 4-27-2023 | 0 | (9,398) |
| 16,900,000 THB | 498,672 USD | State Street Bank & Trust Company | 6-30-2023 | 0 | (134) |
| 1,100,000 TRY | 55,708 USD | State Street Bank & Trust Company | 4-26-2023 | 96 | 0 |
The accompanying notes are an integral part of these financial statements.
14 | Allspring International Bond Fund
Portfolio of investments—March 31, 2023 (unaudited)
Forward foreign currency contracts (continued)
Currency to be
received | Currency to be
delivered | Counterparty | Settlement
date | Unrealized
gains | | Unrealized
losses |
| 270,385 USD | 4,700,000 ZAR | State Street Bank & Trust Company | 4-28-2023 | $ 6,977 | | $ 0 |
| 498,586 USD | 9,130,000 ZAR | State Street Bank & Trust Company | 4-28-2023 | 0 | | (13,100) |
| 49,742 USD | 900,000 ZAR | State Street Bank & Trust Company | 4-28-2023 | 0 | | (698) |
| 123,579 USD | 2,750,000 CZK | State Street Bank & Trust Company | 4-24-2023 | 0 | | (3,365) |
| 1,505,415 USD | 33,500,000 CZK | State Street Bank & Trust Company | 4-24-2023 | 0 | | (40,994) |
| 11,400,000 CZK | 515,884 USD | State Street Bank & Trust Company | 4-24-2023 | 10,357 | | 0 |
| 3,580,000 EUR | 3,822,316 USD | State Street Bank & Trust Company | 4-11-2023 | 61,672 | | 0 |
| 210,000 EUR | 228,699 USD | State Street Bank & Trust Company | 4-11-2023 | 0 | | (868) |
| 590,308 USD | 550,000 EUR | State Street Bank & Trust Company | 4-11-2023 | 0 | | (6,394) |
| | | | | $225,516 | | $(647,976) |
The accompanying notes are an integral part of these financial statements.
Allspring International Bond Fund | 15
Statement of assets and liabilities—March 31, 2023 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $65,141,803)
| $ 56,085,391 |
Investments in affiliated securities, at value (cost $790,099)
| 790,099 |
Cash
| 2,210 |
Foreign currency, at value (cost $20,236)
| 20,305 |
Receivable for investments sold
| 997,915 |
Receivable for interest
| 582,154 |
Unrealized gains on forward foreign currency contracts
| 225,516 |
Receivable for Fund shares sold
| 103,511 |
Prepaid expenses and other assets
| 100,273 |
Total assets
| 58,907,374 |
| Liabilities | |
Payable for investments purchased
| 1,038,162 |
Unrealized losses on forward foreign currency contracts
| 647,976 |
Payable for Fund shares redeemed
| 15,447 |
Administration fees payable
| 4,407 |
Management fee payable
| 4,393 |
Trustees’ fees and expenses payable
| 365 |
Distribution fee payable
| 96 |
Total liabilities
| 1,710,846 |
Total net assets
| $ 57,196,528 |
| Net assets consist of | |
Paid-in capital
| $ 95,627,567 |
Total distributable loss
| (38,431,039) |
Total net assets
| $ 57,196,528 |
| Computation of net asset value and offering price per share | |
Net assets – Class A
| $ 4,540,452 |
Shares outstanding – Class A1
| 548,130 |
Net asset value per share – Class A
| $8.28 |
Maximum offering price per share – Class A2
| $8.67 |
Net assets – Class C
| $ 145,009 |
Shares outstanding – Class C1
| 18,561 |
Net asset value per share – Class C
| $7.81 |
Net assets – Class R6
| $ 1,145,154 |
Shares outstanding – Class R61
| 134,178 |
Net asset value per share – Class R6
| $8.53 |
Net assets – Administrator Class
| $ 3,696,749 |
Shares outstanding – Administrator Class1
| 440,985 |
Net asset value per share – Administrator Class
| $8.38 |
Net assets – Institutional Class
| $ 47,669,164 |
Shares outstanding – Institutional Class1
| 5,612,300 |
Net asset value per share – Institutional Class
| $8.49 |
| 1 | The Fund has an unlimited number of authorized shares. |
| 2 | Maximum offering price is computed as 100/95.50 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring International Bond Fund
Statement of operations—six months ended March 31, 2023 (unaudited)
| | |
| Investment income | |
Interest (net of foreign withholding taxes of $27,488)
| $ 1,100,425 |
Income from affiliated securities
| 16,737 |
Total investment income
| 1,117,162 |
| Expenses | |
Management fee
| 197,007 |
| Administration fees | |
Class A
| 3,683 |
Class C
| 118 |
Class R6
| 187 |
Administrator Class
| 6,038 |
Institutional Class
| 19,038 |
| Shareholder servicing fees | |
Class A
| 5,744 |
Class C
| 184 |
Administrator Class
| 15,067 |
| Distribution fee | |
Class C
| 551 |
Custody and accounting fees
| 28,701 |
Professional fees
| 32,674 |
Registration fees
| 41,138 |
Shareholder report expenses
| 20,607 |
Trustees’ fees and expenses
| 11,086 |
Other fees and expenses
| 12,920 |
Total expenses
| 394,743 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level
| (140,910) |
Class A
| (231) |
Administrator Class
| (4,238) |
Institutional Class
| (2,386) |
Net expenses
| 246,978 |
Net investment income
| 870,184 |
| Realized and unrealized gains (losses) on investments | |
| Net realized losses on | |
Unaffiliated securities
| (8,714,252) |
Forward foreign currency contracts
| (887,362) |
Net realized losses on investments
| (9,601,614) |
| Net change in unrealized gains (losses) on | |
Unaffiliated securities
| 16,085,001 |
Forward foreign currency contracts
| (407,309) |
Net change in unrealized gains (losses) on investments
| 15,677,692 |
Net realized and unrealized gains (losses) on investments
| 6,076,078 |
Net increase in net assets resulting from operations
| $ 6,946,262 |
The accompanying notes are an integral part of these financial statements.
Allspring International Bond Fund | 17
Statement of changes in net assets
| | | | | |
| | Six months ended
March 31, 2023
(unaudited) | Year ended
September 30, 2022 |
| Operations | | | | |
Net investment income
| | $ 870,184 | | $ 2,235,938 |
Net realized losses on investments
| | (9,601,614) | | (19,305,584) |
Net change in unrealized gains (losses) on investments
| | 15,677,692 | | (21,066,278) |
Net increase (decrease) in net assets resulting from operations
| | 6,946,262 | | (38,135,924) |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class A
| | 0 | | (10,524) |
Class R6
| | 0 | | (9,965) |
Administrator Class
| | 0 | | (67,210) |
Institutional Class
| | 0 | | (245,781) |
Total distributions to shareholders
| | 0 | | (333,480) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class A
| 20,144 | 161,689 | 32,938 | 316,163 |
Class C
| 98 | 751 | 372 | 3,552 |
Class R6
| 751 | 6,200 | 87,313 | 957,617 |
Administrator Class
| 94,173 | 749,353 | 574,161 | 5,502,525 |
Institutional Class
| 606,507 | 5,036,657 | 2,126,667 | 21,193,712 |
| | | 5,954,650 | | 27,973,569 |
| Reinvestment of distributions | | | | |
Class A
| 0 | 0 | 930 | 9,909 |
Class R6
| 0 | 0 | 300 | 3,281 |
Administrator Class
| 0 | 0 | 4,433 | 47,744 |
Institutional Class
| 0 | 0 | 21,939 | 238,697 |
| | | 0 | | 299,631 |
| Payment for shares redeemed | | | | |
Class A
| (80,102) | (642,062) | (391,949) | (4,060,241) |
Class C
| (2,030) | (16,019) | (5,908) | (48,948) |
Class R6
| (44,340) | (361,877) | (149,383) | (1,428,129) |
Administrator Class
| (3,042,513) | (25,568,768) | (768,586) | (7,225,233) |
Institutional Class
| (1,019,896) | (8,466,916) | (4,414,997) | (42,373,569) |
| | | (35,055,642) | | (55,136,120) |
Net decrease in net assets resulting from capital share transactions
| | (29,100,992) | | (26,862,920) |
Total decrease in net assets
| | (22,154,730) | | (65,332,324) |
| Net assets | | | | |
Beginning of period
| | 79,351,258 | | 144,683,582 |
End of period
| | $ 57,196,528 | | $ 79,351,258 |
The accompanying notes are an integral part of these financial statements.
18 | Allspring International Bond Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class A | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $7.62 | $10.86 | $11.08 | $10.45 | $9.69 | $10.31 |
Net investment income
| 0.10 1 | 0.16 1 | 0.10 1 | 0.18 1 | 0.32 1 | 0.27 1 |
Payment from affiliate
| 0.00 | 0.00 | 0.00 | 0.00 2 | 0.00 | 0.00 |
Net realized and unrealized gains (losses) on investments
| 0.56 | (3.38) | (0.24) | 0.45 | 0.44 | (0.89) |
Total from investment operations
| 0.66 | (3.22) | (0.14) | 0.63 | 0.76 | (0.62) |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | (0.02) | (0.07) | 0.00 | 0.00 | 0.00 |
Tax basis return of capital
| 0.00 | 0.00 | (0.01) | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders
| 0.00 | (0.02) | (0.08) | 0.00 | 0.00 | 0.00 |
Net asset value, end of period
| $8.28 | $7.62 | $10.86 | $11.08 | $10.45 | $9.69 |
Total return3
| 8.66% | (29.73)% | (1.30)% | 6.03% 4 | 7.84% | (6.01)% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.47% | 1.25% | 1.22% | 1.50% | 1.30% | 1.08% |
Net expenses
| 1.03% | 1.03% | 1.03% | 1.03% | 1.03% | 1.03% |
Net investment income
| 2.37% | 1.65% | 0.90% | 1.68% | 3.21% | 2.75% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 28% | 92% | 77% | 158% | 129% | 99% |
Net assets, end of period (000s omitted)
| $4,540 | $4,635 | $10,492 | $11,237 | $12,329 | $44,519 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Amount is less than $0.005. |
| 3 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
| 4 | During the year ended September 30, 2020, the Fund received a payment from an affiliate that had an impact of less than 0.005% on total return. |
The accompanying notes are an integral part of these financial statements.
Allspring International Bond Fund | 19
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class C | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $7.22 | $10.34 | $10.56 | $9.98 | $9.32 | $10.00 |
Net investment income
| 0.06 1 | 0.08 1 | 0.02 1 | 0.09 1 | 0.24 1 | 0.19 1 |
Payment from affiliate
| 0.00 | 0.00 | 0.00 | 0.06 | 0.00 | 0.00 |
Net realized and unrealized gains (losses) on investments
| 0.53 | (3.20) | (0.24) | 0.43 | 0.42 | (0.87) |
Total from investment operations
| 0.59 | (3.12) | (0.22) | 0.58 | 0.66 | (0.68) |
Net asset value, end of period
| $7.81 | $7.22 | $10.34 | $10.56 | $9.98 | $9.32 |
Total return2
| 8.17% | (30.17)% | (2.08)% | 5.81% 3 | 7.08% | (6.80)% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 2.21% | 2.00% | 1.98% | 2.25% | 2.04% | 1.83% |
Net expenses
| 1.78% | 1.78% | 1.78% | 1.78% | 1.78% | 1.78% |
Net investment income
| 1.61% | 0.91% | 0.16% | 0.94% | 2.51% | 2.00% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 28% | 92% | 77% | 158% | 129% | 99% |
Net assets, end of period (000s omitted)
| $145 | $148 | $269 | $704 | $1,027 | $2,652 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
| 3 | During the year ended September 30, 2020, the Fund received a payment from an affiliate which had a 0.58% impact on the total return. |
The accompanying notes are an integral part of these financial statements.
20 | Allspring International Bond Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class R6 | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $7.84 | $11.14 | $11.36 | $10.68 | $9.86 | $10.45 |
Net investment income
| 0.11 1 | 0.20 1 | 0.15 1 | 0.23 1 | 0.37 1 | 0.31 1 |
Net realized and unrealized gains (losses) on investments
| 0.58 | (3.47) | (0.25) | 0.45 | 0.45 | (0.90) |
Total from investment operations
| 0.69 | (3.27) | (0.10) | 0.68 | 0.82 | (0.59) |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | (0.03) | (0.11) | 0.00 | 0.00 | 0.00 |
Tax basis return of capital
| 0.00 | 0.00 | (0.01) | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders
| 0.00 | (0.03) | (0.12) | 0.00 | 0.00 | 0.00 |
Net asset value, end of period
| $8.53 | $7.84 | $11.14 | $11.36 | $10.68 | $9.86 |
Total return2
| 8.80% | (29.42)% | (0.89)% | 6.37% | 8.32% | (5.65)% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.08% | 0.87% | 0.85% | 1.13% | 0.90% | 0.72% |
Net expenses
| 0.65% | 0.65% | 0.65% | 0.65% | 0.65% | 0.65% |
Net investment income
| 2.75% | 2.03% | 1.27% | 2.08% | 3.68% | 3.18% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 28% | 92% | 77% | 158% | 129% | 99% |
Net assets, end of period (000s omitted)
| $1,145 | $1,393 | $2,668 | $6,020 | $8,979 | $49,749 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring International Bond Fund | 21
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Administrator Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $7.72 | $10.98 | $11.19 | $10.53 | $9.75 | $10.36 |
Net investment income
| 0.10 1 | 0.18 1 | 0.12 1 | 0.20 1 | 0.34 1 | 0.29 1 |
Net realized and unrealized gains (losses) on investments
| 0.56 | (3.42) | (0.24) | 0.46 | 0.44 | (0.90) |
Total from investment operations
| 0.66 | (3.24) | (0.12) | 0.66 | 0.78 | (0.61) |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | (0.02) | (0.07) | 0.00 | 0.00 | 0.00 |
Tax basis return of capital
| 0.00 | 0.00 | (0.02) | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders
| 0.00 | (0.02) | (0.09) | 0.00 | 0.00 | 0.00 |
Net asset value, end of period
| $8.38 | $7.72 | $10.98 | $11.19 | $10.53 | $9.75 |
Total return2
| 8.55% | (29.56)% | (1.11)% | 6.27% | 8.00% | (5.89)% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.35% | 1.20% | 1.16% | 1.44% | 1.24% | 1.01% |
Net expenses
| 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% |
Net investment income
| 2.59% | 1.86% | 1.09% | 1.87% | 3.37% | 2.93% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 28% | 92% | 77% | 158% | 129% | 99% |
Net assets, end of period (000s omitted)
| $3,697 | $26,159 | $39,296 | $34,221 | $18,213 | $27,911 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
22 | Allspring International Bond Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Institutional Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $7.80 | $11.09 | $11.31 | $10.64 | $9.83 | $10.43 |
Net investment income
| 0.11 1 | 0.19 1 | 0.14 1 | 0.22 1 | 0.37 1 | 0.31 1 |
Net realized and unrealized gains (losses) on investments
| 0.58 | (3.45) | (0.24) | 0.45 | 0.44 | (0.91) |
Total from investment operations
| 0.69 | (3.26) | (0.10) | 0.67 | 0.81 | (0.60) |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | (0.03) | (0.09) | 0.00 | 0.00 | 0.00 |
Tax basis return of capital
| 0.00 | 0.00 | (0.03) | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders
| 0.00 | (0.03) | (0.12) | 0.00 | 0.00 | 0.00 |
Net asset value, end of period
| $8.49 | $7.80 | $11.09 | $11.31 | $10.64 | $9.83 |
Total return2
| 8.85% | (29.48)% | (0.93)% | 6.30% | 8.24% | (5.75)% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.14% | 0.92% | 0.89% | 1.17% | 0.95% | 0.74% |
Net expenses
| 0.70% | 0.70% | 0.70% | 0.70% | 0.70% | 0.70% |
Net investment income
| 2.69% | 1.96% | 1.23% | 2.04% | 3.61% | 3.06% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 28% | 92% | 77% | 158% | 129% | 99% |
Net assets, end of period (000s omitted)
| $47,669 | $47,016 | $91,959 | $57,264 | $77,727 | $245,633 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring International Bond Fund | 23
Notes to financial statements (unaudited)
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 International Bond Fund (the "Fund") which is a diversified series of the Trust.
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
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
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.
The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee established by Allspring Funds Management, LLC ("Allspring Funds Management").
Forward foreign currency contracts are recorded at the forward rate provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee 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. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.
Forward foreign currency contracts
A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between
24 | Allspring International Bond Fund
Notes to financial statements (unaudited)
currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on forward foreign currency contracts. The Fund is subject to foreign currency risk and may be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund's maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the counterparty.
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. Interest income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
Distributions to shareholders
Distributions to shareholders are recorded on the ex-dividend date and paid from net investment income quarterly and any net realized gains are 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, as applicable, 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 March 31, 2023, the aggregate cost of all investments for federal income tax purposes was $64,489,213 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $ 696,517 |
| Gross unrealized losses | (8,732,700) |
| Net unrealized losses | $(8,036,183) |
As of September 30, 2022, the Fund had capital loss carryforwards which consisted of $6,089,338 in short-term capital losses and $4,425,206 in long-term capital losses.
As of September 30, 2022, the Fund had a qualified late-year ordinary loss of $7,671,337 which was recognized on the first day of the current fiscal year.
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 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.
Allspring International Bond Fund | 25
Notes to financial statements (unaudited)
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 March 31, 2023:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Corporate bonds and notes | $ 0 | $ 2,401,670 | $0 | $ 2,401,670 |
| Foreign corporate bonds and notes | 0 | 5,465,047 | 0 | 5,465,047 |
| Foreign government bonds | 0 | 44,624,690 | 0 | 44,624,690 |
| U.S. Treasury securities | 3,593,984 | 0 | 0 | 3,593,984 |
| Short-term investments | | | | |
| Investment companies | 790,099 | 0 | 0 | 790,099 |
| | 4,384,083 | 52,491,407 | 0 | 56,875,490 |
| Forward foreign currency contracts | 0 | 225,516 | 0 | 225,516 |
| Total assets | $4,384,083 | $52,716,923 | $0 | $57,101,006 |
| Liabilities | | | | |
| Forward foreign currency contracts | $ 0 | $ 647,976 | $0 | $ 647,976 |
| Total liabilities | $ 0 | $ 647,976 | $0 | $ 647,976 |
Forward foreign currency contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the table following the Portfolio of Investments. All other assets and liabilities are reported at their market value at measurement date.
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended March 31, 2023, 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:
26 | Allspring International Bond Fund
Notes to financial statements (unaudited)
| Average daily net assets | Management fee |
| First $500 million | 0.600% |
| Next $500 million | 0.575 |
| Next $2 billion | 0.550 |
| Next $2 billion | 0.525 |
| Next $5 billion | 0.490 |
| Over $10 billion | 0.480 |
For the six months ended March 31, 2023, the management fee was equivalent to an annual rate of 0.60% 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 (UK) Limited, 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 0.35% and declining to 0.20% 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 | 0.16% |
| Class C | 0.16 |
| Class R6 | 0.03 |
| Administrator Class | 0.10 |
| Institutional Class | 0.08 |
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 January 31, 2024 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. As of March 31, 2023, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class A | 1.03% |
| Class C | 1.78 |
| Class R6 | 0.65 |
| Administrator Class | 0.85 |
| Institutional Class | 0.70 |
Allspring International Bond Fund | 27
Notes to financial statements (unaudited)
Distribution fee
The Trust has adopted a distribution plan for Class C shares 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"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended March 31, 2023, Allspring Funds Distributor received $66 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended March 31, 2023.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
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. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six months ended March 31, 2023 were as follows:
| Purchases at cost | | Sales proceeds |
U.S.
government | Non-U.S.
government | | U.S.
government | Non-U.S.
government |
| $4,481,295 | $14,000,966 | | $982,046 | $45,764,299 |
6. DERIVATIVE TRANSACTIONS
During the six months ended March 31, 2023, the Fund entered into forward foreign currency contracts for economic hedging purposes. The Fund had average contract amounts of $35,170,765 in forward foreign currency contracts to buy and $31,854,969 in forward foreign currency contracts to sell during the six months ended March 31, 2023.
The fair value, realized gains or losses and change in unrealized gains or losses, if any, on derivative instruments are reflected in the corresponding financial statement captions.
For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by counterparty, including any collateral exposure, for OTC derivatives is as follows:
28 | Allspring International Bond Fund
Notes to financial statements (unaudited)
| Counterparty | Gross amounts
of assets in the
Statement of
Assets and
Liabilities | Amounts
subject to
netting
agreements | Collateral
received | Net amount
of assets |
| State Street Bank & Trust Company | $225,516 | $(225,516) | $0 | $0 |
| Counterparty | Gross amounts
of liabilities in the
Statement of
Assets and
Liabilities | Amounts
subject to
netting
agreements | Collateral
pledged | Net amount
of liabilities |
| State Street Bank & Trust Company | $647,976 | $(225,516) | $0 | $422,460 |
7. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended March 31, 2023, there were no borrowings by the Fund under the agreement.
8. MARKET RISKS
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 and Belarus 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. As of March 31, 2023, the Fund held 0.00% of its total net assets in Russian securities with unrealized losses in the amount of $3,553,656.
9. 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.
10. SUBSEQUENT EVENT
At a meeting of the Board of Trustees held on May 16-17, 2023, the Trustees of the Fund approved the liquidation of the Fund.
Effective at the close of business on May 22, 2023, the Fund is closed to new investors and to additional investments from existing shareholders, except that existing retirement plans, benefit plans, retirement plan platforms and intermediary centrally managed (home office) model portfolios may continue to add new participants and make additional purchases until the Fund’s liquidation.
The liquidation of the Fund is expected to occur after close of business on or about June 26, 2023. Shareholders of the Fund on the date of liquidation will receive a distribution of their account proceeds in complete redemption of their shares.
Allspring International Bond Fund | 29
Other information (unaudited)
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.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
30 | Allspring International Bond Fund
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 127 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 1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203. 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 Foundation (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. Member of the Advisory Board of CEF of East Central Florida. 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 | Distinguished Visiting Fellow at the Hoover Institution since 2022. 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 |
Allspring International Bond Fund | 31
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, from 2007-2022. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. | 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 | Retired. Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer, Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
32 | Allspring International Bond Fund
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 and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, from 2019 to 2022 and 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. |
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 from 2005 to 2010. |
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) | Chief Legal Officer, since 2022; 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.
Allspring International Bond Fund | 33
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
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.
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.
© 2023 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-04042023-y71mijki 05-23
SAR4316 03-23
Semi-Annual Report
March 31, 2023
Allspring Income Plus Fund
The views expressed and any forward-looking statements are as of March 31, 2023, 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.
Allspring Income Plus Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Income Plus Fund for the six-month period that ended March 31, 2023. Globally, stocks and bonds rebounded strongly despite ongoing volatility. While navigating persistently high inflation and the impact of ongoing aggressive central bank rate hikes, markets rallied on signs of declining inflation, anticipation of an end to the central bank monetary tightening cycle, and the stimulating impact of China removing its strict COVID-19 lockdowns in December. For the six-month period, domestic U.S. and global stocks and bonds had strong results. After suffering deep and broad losses through 2022, recent fixed income performance benefited from a base of higher yields that can now generate higher income.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 15.62%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 22.13%, while the MSCI EM Index (Net) (USD)3 returned 14.04%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 4.89%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned 10.07%, the Bloomberg Municipal Bond Index6 gained 7.00%, and the ICE BofA U.S. High Yield Index7 returned 7.89%.
Despite high inflation and central bank rate hikes, markets rally.
Equities had a reprieve in October. Value stocks and small caps fared best. Globally, developed markets outpaced emerging market equities, which were hurt by weakness among Chinese stocks. Central banks continued to try to curtail high inflation with aggressive interest rate hikes. Geopolitical risks persisted, including the ongoing Russia-Ukraine war and economic, financial market, and political turmoil in the U.K. Concerns over Europe’s energy crisis eased thanks to unseasonably warm weather and plentiful gas on hand. The U.S. labor market continued its resilience against rising prices as unemployment remained near a record low.
Stocks and bonds rallied in November. Economic news was encouraging, driven by U.S. labor market strength. Although central banks kept raising rates, hopes rose for an easing in the pace of rate hikes and a possible end to central bank monetary tightening in 2023. Although inflation remained at record highs in the eurozone, we began to see signs of a possible decline in inflationary pressures as U.S. inflation moderated, with a 7.1% annual price rise in November and a monthly price increase of just 0.1%. China’s economic data remained weak, reflecting its zero-COVID-19 policy.
| 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 2023. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring Income Plus Fund
Letter to shareholders (unaudited)
Financial markets cooled in December, with U.S. equities posting negative overall results in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever with flat overall monthly returns as markets weighed the hopes for an end to the monetary tightening cycle with the reality that central banks had not completed their jobs yet. U.S. Consumer Price Index (CPI)1 data showed a strong consistent trend downward, which brought down the 12-month CPI to 6.5% in December from 9.1% in June. Other countries and regions reported still-high but declining inflation rates as the year winded down.
The year 2023 began with a rally across global equities and fixed income securities. Investor optimism rose in response to data indicating declining inflation rates and the reopening of China’s economy with the abrupt end to its zero-COVID-19 policy. The U.S. reported surprisingly strong job gains––employers added more than 500,000 jobs––and unemployment fell to 3.4%, the lowest level since 1969. Meanwhile, wage growth, seen as a potential contributor to ongoing high inflation, continued to moderate. All eyes remained fixed on the Federal Reserve (Fed) and on how many more rate hikes remain in this tightening cycle. The 0.25% federal funds rate hike announced in January was the Fed’s smallest rate increase since March 2022.
Financial markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks will likely continue their monetary tightening cycle for longer than markets had priced in. In this environment—where strong economic data is seen as bad news—the resilient U.S. labor market was seen as a negative while the inflation rate has not been falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the Bank of England and the European Central Bank both raised rates by 0.50%. At this stage in the economic cycle, the overriding question remained: “What will central banks do?” In February, the answer appeared to be: “Move rates higher for longer.”
The collapse of Silicon Valley Bank in March, the second-largest banking failure in U.S. history, led to a classic bank run that spread to Europe, where Switzerland’s Credit Suisse was taken over by its rival, UBS. The sudden banking industry uncertainty led some clients of regional banks to transfer deposits to a handful of U.S. banking giants while bank shareholders sold stock. The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. The U.S. labor market remained resilient. The euro-area composite Purchasing Managers’ Index2 rose to 53.70, indicating expansion, for March. And China’s economy continued to rebound after the removal of its COVID-19 lockdown. Inflation rates in the U.S., the U.K., and Europe all remained higher than central bank targets, leading to additional rate hikes in March.
“ The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China.”
| 1 | The U.S. 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. |
| 2 | The Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. You cannot invest directly in an index. |
Allspring Income Plus Fund | 3
Letter to shareholders (unaudited)
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.
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
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.
4 | Allspring Income Plus Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks total return, consisting of a high level of current income and capital appreciation. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Christopher Kauffman, CFA, Janet Rilling, CFA, Michael Schueller, CFA, Michal Stanczyk, Noah Wise, CFA |
| Average annual total returns (%) as of March 31, 2023 |
| | | 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 (WSIAX) | 1-31-2013 | -7.37 | 1.14 | 1.55 | | -3.48 | 1.97 | 1.96 | | 1.08 | 0.91 |
| Class C (WSICX) | 1-31-2013 | -5.05 | 1.36 | 1.43 | | -4.05 | 1.36 | 1.43 | | 1.83 | 1.66 |
| Administrator Class (WSIDX) | 1-31-2013 | – | – | – | | -3.28 | 2.08 | 2.08 | | 1.02 | 0.76 |
| Institutional Class (WSINX) | 1-31-2013 | – | – | – | | -3.16 | 2.26 | 2.27 | | 0.75 | 0.61 |
| Bloomberg U.S. Aggregate Bond Index3 | – | – | – | – | | -4.78 | 0.91 | 1.36 | | – | – |
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 return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. 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.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
For Class A shares, the maximum front-end sales charge is 4.00%. 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. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
| 1 | Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses. |
| 2 | The manager has contractually committed through January 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.90% for Class A, 1.65% for Class C, 0.75% for Administrator Class, and 0.60% for Institutional 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. 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 | 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. |
Bond 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 held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. Loans are subject to risks similar to those associated with other below-investment-grade bond investments, such as credit risk (for example, risk of issuer default), below-investment-grade bond risk (for example, risk of greater volatility in value), and risk that the loan may become illiquid or difficult to price. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to mortgage- and asset-backed securities risk, regulatory risk, and geographic risk. Consult the Fund’s prospectus for additional information on these and other risks.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
6 | Allspring Income Plus Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of March 31, 20231 |
| Germany, 1.30%, 10-15-2027 | 4.55 |
| France, 0.75%, 2-25-2028 | 4.47 |
| FNMA, 6.00%, 4-13-2053 | 2.37 |
| GNMA, 5.50%, 4-20-2053 | 2.34 |
| Xtrackers USD High Yield Corporate Bond ETF | 2.06 |
| iShares Broad USD High Yield Corporate Bond ETF | 2.06 |
| U.S. Treasury Bond, 2.25%, 2-15-2052 | 1.56 |
| Bonos y Obligaciones del Estado, 0.00%, 1-31-2028 | 1.41 |
| FNMA, 5.50%, 4-13-2053 | 1.41 |
| FNMA, 3.50%, 4-13-2053 | 1.36 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Portfolio composition as of March 31, 20231 |
| 1 | Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
| Credit quality as of March 31, 20231 |
| 1 | The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the portfolio with the ratings depicted in the chart are calculated based on the market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of the three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified. |
| Effective maturity distribution as of March 31, 20231 |
| 1 | Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Income Plus Fund | 7
Consolidated 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 October 1, 2022 to March 31, 2023.
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 sales charges (loads) and 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
10-1-2022 | Ending
account value
3-31-2023 | Consolidated
expenses
paid during
the period1 | Annualized net
expense ratio |
| Class A | | | | |
| Actual | $1,000.00 | $1,051.16 | $4.60 | 0.90% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.44 | $4.53 | 0.90% |
| Class C | | | | |
| Actual | $1,000.00 | $1,048.25 | $8.43 | 1.65% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,016.70 | $8.30 | 1.65% |
| Administrator Class | | | | |
| Actual | $1,000.00 | $1,052.24 | $3.84 | 0.75% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,021.19 | $3.78 | 0.75% |
| Institutional Class | | | | |
| Actual | $1,000.00 | $1,053.05 | $3.07 | 0.60% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,021.94 | $3.02 | 0.60% |
1 Consolidated expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by 182 divided by 365 (to reflect the one-half-year period).
8 | Allspring Income Plus Fund
Consolidated portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Agency securities: 9.37% | | | | | | |
| FNMA %% | | 3.50% | 4-13-2053 | $ | 2,450,000 | $ 2,276,490 |
| FNMA %% | | 5.50 | 4-13-2053 | | 2,325,000 | 2,348,477 |
| FNMA %% | | 6.00 | 4-13-2053 | | 3,870,000 | 3,949,970 |
| GNMA %% | | 3.00 | 4-20-2053 | | 1,720,000 | 1,566,668 |
| GNMA %% | | 5.00 | 4-20-2053 | | 1,580,000 | 1,581,975 |
| GNMA %% | | 5.50 | 4-20-2053 | | 3,865,000 | 3,908,708 |
| Total Agency securities (Cost $15,458,758) | | | | | | 15,632,288 |
| Asset-backed securities: 8.59% | | | | | | |
| ACHV Trust Series2023-1PL Class A 144A | | 6.42 | 3-18-2030 | | 626,379 | 625,705 |
| ACM Auto Trust Series 2022-1A Class C 144A | | 5.48 | 4-20-2029 | | 775,000 | 767,130 |
| ACM Auto Trust Series 2023-1A Class A 144A | | 6.61 | 1-22-2030 | | 664,806 | 663,968 |
| Aqua Finance Trust Series 2019-A Class A 144A | | 3.14 | 7-16-2040 | | 163,553 | 154,668 |
| Aqua Finance Trust Series 2021-A Class A 144A | | 1.54 | 7-17-2046 | | 488,611 | 438,276 |
| Bankers Healthcare Group Series 2021-A Class A 144A | | 1.42 | 11-17-2033 | | 354,365 | 331,537 |
| Brean Asset-Backed Securities Trust 2021-RM2 Class A 144A±± | | 1.75 | 10-25-2061 | | 859,603 | 752,845 |
| Cajun Global LLC Series 2021-1 Class A2 144A | | 3.93 | 11-20-2051 | | 981,250 | 841,557 |
| Coinstar Funding LLC Series 2017-1A Class A2 144A | | 5.22 | 4-25-2047 | | 1,050,888 | 804,973 |
| CommonBond Student Loan Trust Series 2018-CGS Class C 144A | | 4.35 | 2-25-2046 | | 66,652 | 61,312 |
| CPS Auto Receivables Trust 2021-A Class D 144A | | 1.16 | 12-15-2026 | | 1,320,000 | 1,260,516 |
| DRB Prime Student Loan Trust Series 2017-C Class C 144A | | 3.29 | 11-25-2042 | | 295,202 | 269,783 |
| Driven Brands Funding LLC Series 2019-2A Class A2 144A | | 3.98 | 10-20-2049 | | 338,625 | 307,814 |
| Dryden Senior Loan Fund Series 2017-50A Class C (3 Month LIBOR +2.25%) 144A± | | 7.04 | 7-15-2030 | | 1,000,000 | 962,800 |
| Mission Lane Master Trust Series 2021 Class A 144A | | 1.59 | 9-15-2026 | | 1,000,000 | 971,267 |
| Ondeck Asset Securitization Trust Series 2021-1A Class A 144A | | 1.59 | 5-17-2027 | | 726,036 | 674,725 |
| Pagaya AI Debt Selection Trust Series 2021-3 Class B 144A | | 1.74 | 5-15-2029 | | 999,946 | 933,733 |
| SMB Private Education Loan Trust Series 2015-C Class C 144A | | 4.50 | 9-17-2046 | | 290,000 | 270,051 |
| SoFi Professional Loan Program LLC Series 2017-E Class B 144A | | 3.49 | 11-26-2040 | | 300,000 | 286,482 |
| Taco Bell Funding LLC Series 2016-1A Class A23 144A | | 4.97 | 5-25-2046 | | 1,413,750 | 1,380,400 |
| Taco Bell Funding LLC Series 2021 Class A2 144A | | 1.95 | 8-25-2051 | | 780,125 | 678,373 |
| Wingstop Funding LLC Series 2020-1A Class A2 144A | | 2.84 | 12-5-2050 | | 355,500 | 311,612 |
| Zaxby's Funding LLC Series 2021-1A Class A2 144A | | 3.24 | 7-30-2051 | | 689,500 | 577,376 |
| Total Asset-backed securities (Cost $15,541,508) | | | | | | 14,326,903 |
| Corporate bonds and notes: 20.37% | | | | | | |
| Communication services: 1.75% | | | | | | |
| Diversified telecommunication services: 0.04% | | | | | | |
| Cablevision Lightpath LLC 144A | | 5.63 | 9-15-2028 | | 100,000 | 69,005 |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Income Plus Fund | 9
Consolidated portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Media: 1.71% | | | | | | |
| CCO Holdings LLC 144A | | 4.25% | 1-15-2034 | $ | 500,000 | $ 391,060 |
| CSC Holdings LLC 144A | | 4.63 | 12-1-2030 | | 500,000 | 246,550 |
| DISH DBS Corporation 144A | | 5.75 | 12-1-2028 | | 50,000 | 37,313 |
| DISH Network Corporation 144A | | 11.75 | 11-15-2027 | | 400,000 | 388,000 |
| Gray Escrow II Incorporated 144A | | 5.38 | 11-15-2031 | | 1,000,000 | 664,000 |
| Nexstar Broadcasting Incorporated 144A | | 5.63 | 7-15-2027 | | 150,000 | 138,605 |
| Outfront Media Capital Corporation 144A | | 4.63 | 3-15-2030 | | 175,000 | 145,944 |
| Scripps Escrow II Incorporated 144A | | 5.38 | 1-15-2031 | | 545,000 | 374,688 |
| Scripps Escrow II Incorporated 144A | | 5.88 | 7-15-2027 | | 125,000 | 92,069 |
| Townsquare Media Incorporated 144A | | 6.88 | 2-1-2026 | | 400,000 | 378,404 |
| | | | | | | 2,856,633 |
| Consumer discretionary: 1.74% | | | | | | |
| Automobile components: 0.05% | | | | | | |
| Adient Global Holdings 144A | | 3.50 | 8-15-2024 | | 76,968 | 83,010 |
| Broadline retail: 0.27% | | | | | | |
| LSF9 Atlantis Holdings LLC 144A | | 7.75 | 2-15-2026 | | 500,000 | 454,165 |
| Diversified consumer services: 0.05% | | | | | | |
| Howard University | | 5.21 | 10-1-2052 | | 90,000 | 75,975 |
| Hotels, restaurants & leisure: 0.90% | | | | | | |
| Carnival Corporation 144A | | 10.50 | 6-1-2030 | | 500,000 | 480,000 |
| Royal Caribbean Cruises Limited | | 4.25 | 6-15-2023 | | 500,000 | 506,493 |
| Royal Caribbean Cruises Limited 144A | | 5.50 | 8-31-2026 | | 125,000 | 116,944 |
| Royal Caribbean Cruises Limited 144A | | 5.50 | 4-1-2028 | | 95,000 | 83,874 |
| Royal Caribbean Cruises Limited 144A | | 11.63 | 8-15-2027 | | 300,000 | 322,214 |
| | | | | | | 1,509,525 |
| Specialty retail: 0.47% | | | | | | |
| Michaels Companies Incorporated 144A | | 7.88 | 5-1-2029 | | 170,000 | 119,000 |
| NMG Holding Company Incorporated 144A | | 7.13 | 4-1-2026 | | 500,000 | 469,435 |
| Rent-A-Center Incorporated 144A | | 6.38 | 2-15-2029 | | 230,000 | 193,120 |
| | | | | | | 781,555 |
| Energy: 2.64% | | | | | | |
| Energy equipment & services: 0.73% | | | | | | |
| Bristow Group Incorporated 144A | | 6.88 | 3-1-2028 | | 500,000 | 465,188 |
| Hilcorp Energy Company 144A | | 5.75 | 2-1-2029 | | 55,000 | 50,630 |
| Hilcorp Energy Company 144A | | 6.00 | 2-1-2031 | | 55,000 | 50,641 |
| Oceaneering International Incorporated | | 6.00 | 2-1-2028 | | 400,000 | 375,831 |
| Pattern Energy Operations LP 144A | | 4.50 | 8-15-2028 | | 300,000 | 274,453 |
| | | | | | | 1,216,743 |
| Oil, gas & consumable fuels: 1.91% | | | | | | |
| Aethon United 144A | | 8.25 | 2-15-2026 | | 500,000 | 490,610 |
| Buckeye Partners LP | | 5.85 | 11-15-2043 | | 100,000 | 75,509 |
| Encino Acquisition Partners Company 144A | | 8.50 | 5-1-2028 | | 480,000 | 420,000 |
| EnLink Midstream Partners LP | | 5.05 | 4-1-2045 | | 115,000 | 88,261 |
| EnLink Midstream Partners LP | | 5.38 | 6-1-2029 | | 220,000 | 211,750 |
| Kinder Morgan Incorporated | | 5.20 | 6-1-2033 | | 1,000,000 | 993,496 |
| Occidental Petroleum Corporation | | 6.45 | 9-15-2036 | | 420,000 | 441,601 |
| Rockies Express Pipeline LLC 144A | | 6.88 | 4-15-2040 | | 340,000 | 283,303 |
The accompanying notes are an integral part of these consolidated financial statements.
10 | Allspring Income Plus Fund
Consolidated portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Oil, gas & consumable fuels (continued) | | | | | | |
| Southwestern Energy Company | | 4.75% | 2-1-2032 | $ | 100,000 | $ 88,299 |
| Tallgrass Energy Partners LP 144A | | 6.00 | 12-31-2030 | | 95,000 | 84,904 |
| | | | | | | 3,177,733 |
| Financials: 6.64% | | | | | | |
| Banks: 1.73% | | | | | | |
| Bank of America Corporation (U.S. SOFR +0.96%) ± | | 1.73 | 7-22-2027 | | 1,000,000 | 896,710 |
| Bank of America Corporation (3 Month LIBOR +4.55%) ± | | 6.30 | 12-29-2049 | | 265,000 | 264,669 |
| Citigroup Incorporated (5 Year Treasury Constant Maturity +3.42%) ʊ± | | 3.88 | 2-18-2026 | | 425,000 | 358,913 |
| JPMorgan Chase & Company (U.S. SOFR 3 Month +3.13%) ʊ± | | 4.60 | 2-1-2025 | | 500,000 | 465,000 |
| JPMorgan Chase & Company (3 Month LIBOR +3.25%) ± | | 5.15 | 12-29-2049 | | 350,000 | 343,003 |
| JPMorgan Chase & Company (3 Month LIBOR +3.30%) ± | | 6.00 | 12-31-2049 | | 100,000 | 97,875 |
| PNC Financial Services (3 Month LIBOR +3.30%) ± | | 5.00 | 12-29-2049 | | 250,000 | 226,250 |
| PNC Financial Services (7 Year Treasury Constant Maturity +2.81%) ʊ± | | 6.25 | 12-29-2049 | | 250,000 | 232,500 |
| | | | | | | 2,884,920 |
| Capital markets: 1.91% | | | | | | |
| Goldman Sachs Group Incorporated (U.S. SOFR +1.25%) ± | | 2.38 | 7-21-2032 | | 750,000 | 608,913 |
| Goldman Sachs Group Incorporated (5 Year Treasury Constant Maturity +2.97%) ʊ± | | 3.80 | 5-10-2026 | | 550,000 | 455,565 |
| Morgan Stanley (U.S. SOFR +1.29%) ± | | 2.94 | 1-21-2033 | | 1,500,000 | 1,270,743 |
| Owl Rock Capital Corporation | | 2.63 | 1-15-2027 | | 1,000,000 | 845,495 |
| | | | | | | 3,180,716 |
| Consumer finance: 0.68% | | | | | | |
| Ford Motor Credit Company LLC | | 4.39 | 1-8-2026 | | 175,000 | 166,031 |
| Ford Motor Credit Company LLC | | 5.11 | 5-3-2029 | | 275,000 | 258,170 |
| General Motors Financial Company (5 Year Treasury Constant Maturity +5.00%) ʊ± | | 5.70 | 9-30-2030 | | 500,000 | 430,325 |
| Navient Corporation | | 5.00 | 3-15-2027 | | 70,000 | 61,663 |
| PRA Group Incorporated 144A | | 5.00 | 10-1-2029 | | 265,000 | 221,695 |
| | | | | | | 1,137,884 |
| Financial services: 0.58% | | | | | | |
| Camelot Return Merger Sub Incorporated 144A | | 8.75 | 8-1-2028 | | 500,000 | 462,970 |
| Enact Holdings Incorporated 144A | | 6.50 | 8-15-2025 | | 400,000 | 390,000 |
| Ladder Capital Finance Holdings LP 144A | | 5.25 | 10-1-2025 | | 120,000 | 105,575 |
| | | | | | | 958,545 |
| Insurance: 1.59% | | | | | | |
| Broadstreet Partners Incorporated 144A | | 5.88 | 4-15-2029 | | 500,000 | 422,865 |
| Guardian Life Insurance Company 144A | | 4.85 | 1-24-2077 | | 200,000 | 174,265 |
| Maple Grove Funding Trust 144A | | 4.16 | 8-15-2051 | | 900,000 | 646,110 |
| MetLife Incorporated | | 6.40 | 12-15-2066 | | 1,200,000 | 1,161,168 |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Income Plus Fund | 11
Consolidated portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Insurance (continued) | | | | | | |
| OneAmerica Financial Partners Incorporated 144A | | 4.25% | 10-15-2050 | $ | 45,000 | $ 32,869 |
| Prudential Financial Incorporated (5 Year Treasury Constant Maturity +3.04%) ± | | 3.70 | 10-1-2050 | | 270,000 | 219,934 |
| | | | | | | 2,657,211 |
| Mortgage REITs: 0.15% | | | | | | |
| Starwood Property Trust Incorporated 144A | | 4.38 | 1-15-2027 | | 300,000 | 247,938 |
| Health care: 0.63% | | | | | | |
| Biotechnology: 0.03% | | | | | | |
| Amgen Incorporated | | 5.65 | 3-2-2053 | | 30,000 | 31,221 |
| Amgen Incorporated | | 5.75 | 3-2-2063 | | 20,000 | 20,753 |
| | | | | | | 51,974 |
| Health care providers & services: 0.60% | | | | | | |
| Air Methods Corporation 144A | | 8.00 | 5-15-2025 | | 75,000 | 4,500 |
| DaVita Incorporated 144A | | 3.75 | 2-15-2031 | | 1,000,000 | 788,750 |
| Select Medical Corporation 144A | | 6.25 | 8-15-2026 | | 205,000 | 198,850 |
| | | | | | | 992,100 |
| Industrials: 2.93% | | | | | | |
| Aerospace & defense: 0.16% | | | | | | |
| Spirit AeroSystems Incorporated 144A | | 9.38 | 11-30-2029 | | 250,000 | 272,813 |
| Commercial services & supplies: 0.84% | | | | | | |
| Allied Universal Holdco LLC 144A | | 6.00 | 6-1-2029 | | 650,000 | 485,199 |
| CoreCivic Incorporated | | 8.25 | 4-15-2026 | | 910,000 | 917,262 |
| | | | | | | 1,402,461 |
| Industrial conglomerates: 0.28% | | | | | | |
| General Electric Company (3 Month LIBOR +3.33%) ± | | 8.20 | 12-29-2049 | | 459,000 | 458,541 |
| Machinery: 0.05% | | | | | | |
| TK Elevator US Newco Incorporated 144A | | 5.25 | 7-15-2027 | | 95,000 | 89,690 |
| Passenger airlines: 1.45% | | | | | | |
| Delta Air Lines Incorporated 144A | | 4.75 | 10-20-2028 | | 150,000 | 144,677 |
| Delta Air Lines Pass-Through Certificates Series 2015-B | | 4.25 | 1-30-2025 | | 398,528 | 394,697 |
| Mileage Plus Holdings LLC 144A | | 6.50 | 6-20-2027 | | 637,500 | 635,447 |
| Spirit Loyalty Cayman Limited 144A | | 8.00 | 9-20-2025 | | 300,000 | 300,750 |
| United Airlines Pass-Through Trust Certificates Series 2020-1 Class A | | 5.88 | 4-15-2029 | | 203,724 | 203,109 |
| US Airways Group Incorporated | | 3.95 | 5-15-2027 | | 798,896 | 746,723 |
| | | | | | | 2,425,403 |
| Trading companies & distributors: 0.06% | | | | | | |
| Fortress Transportation & Infrastructure Investors LLC 144A | | 5.50 | 5-1-2028 | | 100,000 | 91,234 |
| Transportation infrastructure: 0.09% | | | | | | |
| Toll Road Investors Partnership II LP 144A¤ | | 0.00 | 2-15-2027 | | 200,000 | 152,358 |
The accompanying notes are an integral part of these consolidated financial statements.
12 | Allspring Income Plus Fund
Consolidated portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Information technology: 1.22% | | | | | | |
| Communications equipment: 0.09% | | | | | | |
| CommScope Technologies LLC 144A | | 5.00% | 3-15-2027 | $ | 200,000 | $ 146,234 |
| IT services: 0.35% | | | | | | |
| Sabre GLBL Incorporated 144A | | 9.25 | 4-15-2025 | | 135,000 | 127,170 |
| Sabre GLBL Incorporated 144A | | 11.25 | 12-15-2027 | | 500,000 | 465,920 |
| | | | | | | 593,090 |
| Software: 0.78% | | | | | | |
| MPH Acquisition Holdings LLC 144A | | 5.50 | 9-1-2028 | | 105,000 | 83,480 |
| MPH Acquisition Holdings LLC 144A | | 5.75 | 11-1-2028 | | 290,000 | 208,659 |
| Oracle Corporation | | 2.88 | 3-25-2031 | | 190,000 | 162,583 |
| Oracle Corporation | | 6.90 | 11-9-2052 | | 750,000 | 840,650 |
| | | | | | | 1,295,372 |
| Materials: 0.16% | | | | | | |
| Containers & packaging: 0.16% | | | | | | |
| Clydesdale Acquisition Holdings Incorporated 144A | | 8.75 | 4-15-2030 | | 300,000 | 272,622 |
| Real estate: 1.26% | | | | | | |
| Diversified REITs: 1.03% | | | | | | |
| Brandywine Operating Partnership Series 3 | | 7.55 | 3-15-2028 | | 185,000 | 165,912 |
| GLP Capital LP | | 4.00 | 1-15-2031 | | 1,000,000 | 857,810 |
| MPT Operating Partnership LP | | 3.50 | 3-15-2031 | | 500,000 | 336,600 |
| WEA Finance LLC 144A | | 4.75 | 9-17-2044 | | 500,000 | 363,675 |
| | | | | | | 1,723,997 |
| Specialized REITs: 0.23% | | | | | | |
| EPR Properties | | 3.75 | 8-15-2029 | | 500,000 | 383,006 |
| Utilities: 1.40% | | | | | | |
| Electric utilities: 1.19% | | | | | | |
| NRG Energy Incorporated 144A | | 4.45 | 6-15-2029 | | 1,500,000 | 1,360,049 |
| Oglethorpe Power Corporation | | 4.25 | 4-1-2046 | | 400,000 | 311,674 |
| The Southern Company (5 Year Treasury Constant Maturity +3.73%) ± | | 4.00 | 1-15-2051 | | 330,000 | 302,754 |
| | | | | | | 1,974,477 |
Independent power & renewable electricity
producers: 0.21% | | | | | | |
| NSG Holdings LLC 144A | | 7.75 | 12-15-2025 | | 25,430 | 25,048 |
| TerraForm Power Operating LLC 144A | | 4.75 | 1-15-2030 | | 369,000 | 330,877 |
| | | | | | | 355,925 |
| Total Corporate bonds and notes (Cost $37,891,259) | | | | | | 33,972,855 |
| Foreign corporate bonds and notes : 7.57% | | | | | | |
| Communication services: 0.70% | | | | | | |
| Media: 0.70% | | | | | | |
| SES SA Company (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +3.19%) ʊ± | | 2.88 | 5-27-2026 | EUR | 575,000 | 505,106 |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Income Plus Fund | 13
Consolidated portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Media (continued) | | | | | | |
| Tele Columbus AG 144A | | 3.88% | 5-2-2025 | EUR | 510,000 | $ 410,396 |
| Ziggo Bond Company BV 144A | | 3.38 | 2-28-2030 | EUR | 300,000 | 251,535 |
| | | | | | | 1,167,037 |
| Consumer discretionary: 0.75% | | | | | | |
| Automobile components: 0.43% | | | | | | |
| Adler Pelzer Holding GmbH 144A | | 4.13 | 4-1-2024 | EUR | 800,000 | 724,619 |
| Automobiles: 0.32% | | | | | | |
| Peugeot SA Company | | 2.00 | 3-20-2025 | EUR | 500,000 | 526,172 |
| Consumer staples: 1.28% | | | | | | |
| Consumer staples distribution & retail: 0.62% | | | | | | |
| Casino Guichard Perracho SA | | 3.58 | 2-7-2025 | EUR | 400,000 | 130,990 |
| Iceland Bondco plc 144A | | 4.38 | 5-15-2028 | GBP | 1,000,000 | 907,932 |
| | | | | | | 1,038,922 |
| Food products: 0.26% | | | | | | |
| Sigma Holdings Company BV 144A | | 5.75 | 5-15-2026 | EUR | 500,000 | 429,625 |
| Tobacco: 0.40% | | | | | | |
| BAT International Finance plc | | 2.25 | 1-16-2030 | EUR | 750,000 | 667,724 |
| Energy: 0.46% | | | | | | |
| Oil, gas & consumable fuels: 0.46% | | | | | | |
| Eni SpA | | 1.13 | 9-19-2028 | EUR | 800,000 | 760,839 |
| Financials: 2.42% | | | | | | |
| Banks: 1.21% | | | | | | |
| ABN AMRO Bank NV (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +3.90%) | | 4.75 | 9-22-2027 | EUR | 500,000 | 432,131 |
| Asian Development Bank | | 6.20 | 10-6-2026 | INR | 18,450,000 | 219,606 |
| Caixa Geral de Depositos SA (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +5.50%) ± | | 5.75 | 6-28-2028 | EUR | 400,000 | 430,538 |
| Permanent TSB Group (EUR Swap Annual (vs. 6 Month EURIBOR) 1 Year +2.55%) ± | | 2.13 | 9-26-2024 | EUR | 600,000 | 641,664 |
| Raiffeisen Bank International AG (EURIBOR ICE Swap Rate 11:00am +1.60%) ± | | 1.38 | 6-17-2033 | EUR | 400,000 | 302,445 |
| | | | | | | 2,026,384 |
| Capital markets: 0.76% | | | | | | |
| Deutsche Bank (3 Month EURIBOR +2.95%) ± | | 5.00 | 9-5-2030 | EUR | 700,000 | 723,236 |
| International Finance Corporation | | 6.30 | 11-25-2024 | INR | 45,000,000 | 538,992 |
| | | | | | | 1,262,228 |
| Consumer finance: 0.25% | | | | | | |
| Cellnex Finance Company SA | | 2.00 | 9-15-2032 | EUR | 500,000 | 418,566 |
| Financial services: 0.20% | | | | | | |
| Deutsche Pfandbriefbank AG (EURIBOR ICE Swap Rate 11:00am +2.75%) ± | | 4.68 | 6-28-2027 | EUR | 400,000 | 338,364 |
The accompanying notes are an integral part of these consolidated financial statements.
14 | Allspring Income Plus Fund
Consolidated portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Industrials: 0.64% | | | | | | |
| Commercial services & supplies: 0.24% | | | | | | |
| Prosegur Cash SA | | 1.38% | 2-4-2026 | EUR | 400,000 | $ 406,748 |
| Containers & packaging: 0.27% | | | | | | |
| Can-Pack SA 144A | | 2.38 | 11-1-2027 | EUR | 500,000 | 440,258 |
| Hotels, restaurants & leisure: 0.13% | | | | | | |
| Gamma Bidco SpA 144A | | 6.25 | 7-15-2025 | EUR | 200,000 | 216,087 |
| Materials: 0.66% | | | | | | |
| Chemicals: 0.66% | | | | | | |
| Azelis Finance NV 144A | | 5.75 | 3-15-2028 | EUR | 1,000,000 | 1,096,972 |
| Real estate: 0.66% | | | | | | |
| Diversified REITs: 0.28% | | | | | | |
| Aedas Homes Opco SLU 144A | | 4.00 | 8-15-2026 | EUR | 500,000 | 473,113 |
| Real estate management & development: 0.16% | | | | | | |
| Akelius Residential Property AB (EURIBOR ICE Swap Rate 11:00am +3.49%) ± | | 3.88 | 10-5-2078 | EUR | 251,000 | 261,150 |
| Retail REITs: 0.22% | | | | | | |
| Unibail-Rodamco-Westfield SE (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +1.68%) ʊ± | | 2.13 | 10-25-2023 | EUR | 400,000 | 368,761 |
| Total Foreign corporate bonds and notes (Cost $15,358,823) | | | | | | 12,623,569 |
| Foreign government bonds : 13.54% | | | | | | |
| Bonos y Obligaciones del Estado ¤ | | 0.00 | 1-31-2028 | EUR | 2,495,000 | 2,348,604 |
| Brazil ¤ | | 0.00 | 1-1-2024 | BRL | 7,000,000 | 1,258,641 |
| Brazil ¤ | | 0.00 | 7-1-2024 | BRL | 8,000,000 | 1,365,230 |
| France | | 0.75 | 2-25-2028 | EUR | 7,535,000 | 7,455,048 |
| Germany | | 1.30 | 10-15-2027 | EUR | 7,330,000 | 7,590,835 |
| Indonesia | | 6.50 | 6-15-2025 | IDR | 13,500,000,000 | 903,121 |
| Malaysia | | 3.88 | 3-14-2025 | MYR | 7,255,000 | 1,664,716 |
| Russia (Acquired 3-13-2020, cost $270,927) ♦†> | | 6.50 | 2-28-2024 | RUB | 35,000,000 | 0 |
| Total Foreign government bonds (Cost $23,068,558) | | | | | | 22,586,195 |
| | | | | Shares | |
| Investment companies: 4.82% | | | | | | |
| Exchange-traded funds: 4.82% | | | | | | |
| iShares Broad USD High Yield Corporate Bond ETF | | | | | 96,500 | 3,430,575 |
| VanEck Vectors JPMorgan Emerging Markets Local Currency Bond ETF | | | | | 46,200 | 1,166,550 |
| Xtrackers USD High Yield Corporate Bond ETF | | | | | 98,800 | 3,433,300 |
| Total Investment companies (Cost $8,038,205) | | | | | | 8,030,425 |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Income Plus Fund | 15
Consolidated portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Loans: 2.14% | | | | | | |
| Communication services: 0.53% | | | | | | |
| Media: 0.53% | | | | | | |
| Charter Communications Operating LLC (1 Month LIBOR +1.75%) ± | | 6.56% | 4-30-2025 | $ | 477,330 | $ 476,733 |
| DIRECTV Financing LLC (1 Month LIBOR +5.00%) ± | | 9.84 | 8-2-2027 | | 346,000 | 332,278 |
| Gray Television Incorporated (U.S. SOFR 1 Month +2.50%) ± | | 7.36 | 1-2-2026 | | 84,964 | 83,319 |
| | | | | | | 892,330 |
| Energy: 0.44% | | | | | | |
| Oil, gas & consumable fuels: 0.44% | | | | | | |
| AL NGPL Holdings LLC (1 Month LIBOR +3.75%) ± | | 8.56 | 4-14-2028 | | 357,162 | 352,808 |
| GIP II Blue Holdings LP (1 Month LIBOR +4.50%) ± | | 9.66 | 9-29-2028 | | 386,384 | 383,486 |
| | | | | | | 736,294 |
| Financials: 0.04% | | | | | | |
| Insurance: 0.04% | | | | | | |
| Asurion LLC (1 Month LIBOR +5.25%) ± | | 10.09 | 1-31-2028 | | 75,000 | 62,175 |
| Health care: 0.08% | | | | | | |
| Health care equipment & supplies: 0.08% | | | | | | |
| Surgery Center Holdings Incorporated (1 Month LIBOR +3.75%) ± | | 8.46 | 8-31-2026 | | 139,020 | 138,009 |
| Industrials: 1.00% | | | | | | |
| Commercial services & supplies: 0.31% | | | | | | |
| The Geo Group Incorporated (1 Month LIBOR +7.13%) ± | | 11.93 | 3-23-2027 | | 515,705 | 521,615 |
| Machinery: 0.17% | | | | | | |
| Vertical US Newco Incorporated (1 Month LIBOR +3.50%) ± | | 8.60 | 7-30-2027 | | 87,613 | 85,231 |
| Werner FinCo LP (3 Month LIBOR +4.00%) ± | | 9.14 | 7-24-2024 | | 202,848 | 189,030 |
| | | | | | | 274,261 |
| Passenger airlines: 0.52% | | | | | | |
| AAdvantage Loyalty IP Limited (1 Month LIBOR +4.75%) ± | | 9.56 | 4-20-2028 | | 266,000 | 269,732 |
| Mileage Plus Holdings LLC (1 Month LIBOR +5.25%) ± | | 10.21 | 6-21-2027 | | 573,750 | 594,623 |
| | | | | | | 864,355 |
| Information technology: 0.05% | | | | | | |
| Software: 0.05% | | | | | | |
| MPH Acquisition Holdings LLC (1 Month LIBOR +4.25%) ± | | 9.20 | 9-1-2028 | | 98,747 | 84,367 |
| Total Loans (Cost $3,588,926) | | | | | | 3,573,406 |
The accompanying notes are an integral part of these consolidated financial statements.
16 | Allspring Income Plus Fund
Consolidated portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Municipal obligations: 0.08% | | | | | | |
| Illinois: 0.03% | | | | | | |
| GO revenue: 0.03% | | | | | | |
| Chicago IL Refunding Bonds Taxable Project Series E | | 6.05% | 1-1-2029 | $ | 40,000 | $ 40,740 |
| Kansas: 0.01% | | | | | | |
| Health revenue: 0.01% | | | | | | |
| Kansas Development Finance Authority Village Shalom Project Series 2018-B | | 4.00 | 11-15-2025 | | 25,000 | 23,490 |
| Maryland: 0.04% | | | | | | |
| Education revenue: 0.04% | | | | | | |
| Maryland Health & HEFAR Green Street Academy Series B 144A | | 6.75 | 7-1-2023 | | 65,000 | 64,776 |
| Total Municipal obligations (Cost $129,372) | | | | | | 129,006 |
| Non-agency mortgage-backed securities: 17.40% | | | | | | |
| Achieve Mortgage Series 2022-HE1 Class A 144A±± | | 7.00 | 10-25-2037 | | 609,560 | 610,781 |
| Affirm Incorporated Series 2021-B Class A 144A | | 1.03 | 8-17-2026 | | 1,010,000 | 965,655 |
| AFN LLC Series 2019-1A Class A2 144A | | 4.46 | 5-20-2049 | | 693,450 | 622,344 |
| APEX Credit CLO LLC Series 2017 Class 2A (3 Month LIBOR +1.60%) 144A± | | 6.56 | 9-20-2029 | | 1,000,000 | 972,387 |
| Apidos CLO Series 2019 Class 3-1-A (3 Month LIBOR +3.10%) 144A± | | 7.89 | 4-15-2031 | | 500,000 | 467,061 |
| Bojangles Issuer LLC Series 2020-1A Class A2 144A | | 3.83 | 10-20-2050 | | 697,950 | 635,953 |
| Brightspire Capital Incorporated Series 2021-FL1 Class A (1 Month LIBOR +1.15%) 144A± | | 5.91 | 8-19-2038 | | 1,065,000 | 1,025,063 |
| BX Trust Series 2019-11 Class D 144A±± | | 3.94 | 12-9-2041 | | 500,000 | 412,604 |
| BX Trust Series 2021-ARIA Class D (1 Month LIBOR +1.90%) 144A± | | 6.58 | 10-15-2036 | | 550,000 | 510,009 |
| BX Trust Series 2022 Class C 144A | | 6.79 | 10-13-2027 | | 750,000 | 723,650 |
| Carlyle Global Market Series 2016-1A Class R2 (3 Month LIBOR +3.35%) 144A± | | 8.16 | 4-20-2034 | | 1,000,000 | 910,212 |
| Carlyle Global Market Series 2017-2A Class R2 (3 Month LIBOR +1.60%) 144A± | | 6.41 | 7-20-2031 | | 750,000 | 725,030 |
| Cascade Funding Mortgage Trust Series 2021-HB7 Class M2 144A±± | | 2.68 | 10-27-2031 | | 1,000,000 | 916,242 |
| CFCRE Commercial Mortgage Trust Series 2016-C7 Class AM | | 4.16 | 12-10-2054 | | 400,000 | 372,740 |
| CIFC Funding Limited Series 2018-1A Class B (3 Month LIBOR +1.40%) 144A± | | 6.19 | 4-18-2031 | | 1,000,000 | 961,310 |
| Colt Funding LLC Series 2022-7 Class A1 144A | | 5.16 | 4-25-2067 | | 453,147 | 445,288 |
| Foundation Finance Trust Series 2019-1A Class A 144A | | 3.86 | 11-15-2034 | | 135,615 | 133,164 |
| FREMF Mortgage Trust Series 2017-K724 Class B 144A±± | | 3.50 | 12-25-2049 | | 400,000 | 392,590 |
| FREMF Mortgage Trust Series 2020-KF76 Class B (1 Month LIBOR +2.75%) 144A± | | 7.42 | 1-25-2030 | | 224,061 | 214,761 |
| FS Rialto Issuer Limited Series 2021-FL3 Class B (1 Month LIBOR +1.80%) 144A± | | 6.53 | 11-16-2036 | | 1,000,000 | 954,338 |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Income Plus Fund | 17
Consolidated portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Non-agency mortgage-backed securities (continued) | | | | | | |
| Goldman Sachs Mortgage Security Trust Series 2018-LUAU Class B (1 Month LIBOR +1.40%) 144A± | | 6.08% | 11-15-2032 | $ | 1,600,000 | $ 1,560,786 |
| Gracie Point International Funding Series 2022-2A Class A (30 Day Average U.S. SOFR +2.75%) 144A± | | 7.38 | 7-1-2024 | | 595,000 | 595,176 |
| Imperial Fund Mortgage Trust Series 2022-NQM3 Class A3 144A±± | | 4.45 | 5-25-2067 | | 1,130,000 | 963,094 |
| Jonah Energy LLC Series 2022-1 Class A1 144A | | 7.20 | 12-10-2037 | | 625,728 | 618,297 |
| JPMorgan Chase & Company Series 2017-6 Class B 144A±± | | 3.78 | 12-25-2048 | | 444,805 | 326,128 |
| Longtrain Leasing III LLC Series 2015-1A Class A2 144A | | 4.06 | 1-15-2045 | | 1,555,563 | 1,480,847 |
| Madison Park Funding Limited Series 2018-29A Class B (3 Month LIBOR +1.75%) 144A± | | 6.54 | 10-18-2030 | | 700,000 | 681,637 |
| MED Trust Series 2021-MDLN Class B (1 Month LIBOR +1.45%) 144A± | | 6.14 | 11-15-2038 | | 997,038 | 953,153 |
| MF1 Multifamily Housing Mortgage Loan Trust Series 2021-FL7 Class C (1 Month LIBOR +2.05%) 144A± | | 6.81 | 10-16-2036 | | 1,000,000 | 927,500 |
| MF1 Multifamily Housing Mortgage Series 2022-FL8 Class A (30 Day Average U.S. SOFR +1.35%) 144A± | | 5.91 | 2-19-2037 | | 1,000,000 | 967,601 |
| MFRA Trust Series 2020-NQM3 Class M1 144A±± | | 2.65 | 1-26-2065 | | 1,000,000 | 790,166 |
| MFRA Trust Series 2021-NQM1 Class A1 144A±± | | 1.15 | 4-25-2065 | | 100,291 | 87,978 |
| Morgan Stanley Capital I Trust 2014-150E Class A 144A | | 3.91 | 9-9-2032 | | 1,195,000 | 1,008,950 |
| Neuberger Berman CLO Limited Series 2017-25A Class BR (3 Month LIBOR +1.35%) 144A± | | 6.14 | 10-18-2029 | | 250,000 | 240,710 |
| Octane Receivables Trust 2023-1 Class A 144A | | 5.87 | 5-21-2029 | | 187,753 | 188,158 |
| Octane Receivables Trust 2023-1 Class B 144A | | 5.96 | 7-20-2029 | | 160,000 | 160,965 |
| Octane Receivables Trust Series 2020-1A Class B 144A | | 1.98 | 6-20-2025 | | 765,000 | 743,896 |
| Oxford Finance Funding Trust Series 2019-1A Class A2 144A | | 4.46 | 2-15-2027 | | 244,464 | 242,821 |
| Pagaya AI Debt Selection Trust 2023-1 144A | | 7.56 | 7-15-2030 | | 845,000 | 845,433 |
| Residential Mortgage Loan Trust Series 2019-3 Class A3 144A±± | | 3.04 | 9-25-2059 | | 159,557 | 156,133 |
| SFAVE Commercial Mortgage Securities Trust Series 2015-5AVE Class D 144A±± | | 4.39 | 1-5-2043 | | 700,000 | 374,793 |
| TRK Toorak Mortgage Corporation Series 2021-INV2 Class A2 144A±± | | 2.12 | 11-25-2056 | | 846,571 | 705,119 |
| Verus Securitization Trust Series 2021-2 Class A1 144A±± | | 1.03 | 2-25-2066 | | 95,484 | 80,980 |
| Verus Securitization Trust Series 2021-8 Class A2 144A±± | | 2.29 | 11-25-2066 | | 1,204,719 | 1,011,322 |
| Verus Securitization Trust Series 2021-R3 Class A2 144A±± | | 1.28 | 4-25-2064 | | 383,648 | 341,135 |
| Total Non-agency mortgage-backed securities (Cost $31,058,626) | | | | | | 29,023,960 |
| U.S. Treasury securities: 3.09% | | | | | | |
| U.S. Treasury Bond | | 2.25 | 2-15-2052 | | 3,485,000 | 2,598,775 |
| U.S. Treasury Bond | | 2.38 | 5-15-2051 | | 45,000 | 34,555 |
| U.S. Treasury Bond | | 3.00 | 2-15-2049 | | 150,000 | 131,309 |
The accompanying notes are an integral part of these consolidated financial statements.
18 | Allspring Income Plus Fund
Consolidated portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| U.S. Treasury securities (continued) | | | | | | |
| U.S. Treasury Bond | | 3.00% | 8-15-2052 | $ | 985,000 | $ 865,261 |
| U.S. Treasury Note | | 3.25 | 5-15-2042 | | 565,000 | 521,235 |
| U.S. Treasury Note | | 3.50 | 1-31-2028 | | 40,000 | 39,791 |
| U.S. Treasury Note | | 3.50 | 2-15-2033 | | 925,000 | 926,445 |
| U.S. Treasury Note | | 4.00 | 11-15-2052 | | 35,000 | 37,144 |
| Total U.S. Treasury securities (Cost $5,586,654) | | | | | | 5,154,515 |
| Yankee corporate bonds and notes: 11.77% | | | | | | |
| Consumer discretionary: 1.31% | | | | | | |
| Automobile components: 0.54% | | | | | | |
| Faurecia SE | | 7.25 | 6-15-2026 | | 800,000 | 893,718 |
| Broadline retail: 0.55% | | | | | | |
| MercadoLibre Incorporated | | 3.13 | 1-14-2031 | | 750,000 | 590,966 |
| Prosus NV 144A | | 4.03 | 8-3-2050 | | 500,000 | 328,276 |
| | | | | | | 919,242 |
| Hotels, restaurants & leisure: 0.22% | | | | | | |
| International Game Technology 144A | | 3.50 | 6-15-2026 | | 350,000 | 365,720 |
| Consumer staples: 0.54% | | | | | | |
| Beverages: 0.54% | | | | | | |
| Coca-Cola Icecek AS 144A | | 4.50 | 1-20-2029 | | 1,000,000 | 893,240 |
| Energy: 0.95% | | | | | | |
| Oil, gas & consumable fuels: 0.95% | | | | | | |
| BP Capital Markets plc (5 Year Treasury Constant Maturity +4.40%) ʊ± | | 4.88 | 3-22-2030 | | 325,000 | 295,344 |
| Enbridge Incorporated (5 Year Treasury Constant Maturity +5.31%) ± | | 5.75 | 7-15-2080 | | 1,000,000 | 889,693 |
| NorthRiver Midstream Finance LP 144A | | 5.63 | 2-15-2026 | | 220,000 | 206,439 |
| Petroleos Mexicanos | | 6.70 | 2-16-2032 | | 250,000 | 199,003 |
| | | | | | | 1,590,479 |
| Financials: 6.14% | | | | | | |
| Banks: 3.86% | | | | | | |
| African Export Import Bank 144A | | 3.80 | 5-17-2031 | | 200,000 | 161,000 |
| Banco do Brasil SA 144A | | 4.88 | 1-11-2029 | | 375,000 | 351,656 |
| Banco Mercantil del Norte SA (5 Year Treasury Constant Maturity +4.64%) 144Aʊ± | | 5.88 | 1-24-2027 | | 750,000 | 637,500 |
| Credit Agricole SA (USD Swap Semi Annual (vs. 3 Month LIBOR) 5 Year +6.19%) 144Aʊ± | | 8.13 | 12-29-2049 | | 1,000,000 | 963,478 |
| Deutsche Bank AG (USD ICE Swap Rate 11:00am NY 5 Year +2.55%) ± | | 4.88 | 12-1-2032 | | 275,000 | 223,402 |
| HSBC Holdings plc (3 Month LIBOR +1.61%) ± | | 3.97 | 5-22-2030 | | 590,000 | 532,297 |
| Intesa Sanpaolo SpA 144A | | 5.71 | 1-15-2026 | | 635,000 | 601,654 |
| Itau Unibanco Holding SA 144A | | 3.25 | 1-24-2025 | | 800,000 | 770,480 |
| Mitsubishi UFJ Financial Group Incorporated (1 Year Treasury Constant Maturity +1.63%) ± | | 5.44 | 2-22-2034 | | 400,000 | 404,178 |
| NatWest Group plc (5 Year Treasury Constant Maturity +5.63%) ʊ± | | 6.00 | 12-29-2025 | | 400,000 | 364,840 |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Income Plus Fund | 19
Consolidated portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Banks (continued) | | | | | | |
| Societe Generale SA (1 Year Treasury Constant Maturity +3.20%) 144A± | | 6.22% | 6-15-2033 | $ | 1,000,000 | $ 929,055 |
| Unicredit SpA (5 Year Treasury Constant Maturity +4.75%) 144A± | | 5.46 | 6-30-2035 | | 600,000 | 494,258 |
| | | | | | | 6,433,798 |
| Capital markets: 1.33% | | | | | | |
| CI Financial Corporation | | 4.10 | 6-15-2051 | | 780,000 | 471,692 |
| Credit Suisse Group AG (U.S. SOFR +5.02%) 144A± | | 9.02 | 11-15-2033 | | 500,000 | 592,450 |
| MacQuarie Group Limited (U.S. SOFR +2.21%) 144A± | | 5.11 | 8-9-2026 | | 1,000,000 | 994,343 |
| UBS Group AG (5 Year Treasury Constant Maturity +3.40%) 144Aʊ± | | 4.88 | 2-12-2027 | | 200,000 | 155,774 |
| | | | | | | 2,214,259 |
| Diversified consumer services: 0.24% | | | | | | |
| Cirsa Finance International 144A | | 10.38 | 11-30-2027 | | 350,000 | 401,401 |
| Financial services: 0.26% | | | | | | |
| Castlelake Aviation Finance 144A | | 5.00 | 4-15-2027 | | 130,000 | 115,084 |
| Doric Nimrod Air Alpha Pass-Through Trust Certificates Series 2013-1 Class A 144A | | 5.25 | 5-30-2025 | | 317,505 | 316,305 |
| Unifin Financiera SAB de CV 144A | | 9.88 | 1-28-2029 | | 600,000 | 15,000 |
| | | | | | | 446,389 |
| Insurance: 0.45% | | | | | | |
| Swiss Re Finance (Luxembourg) SA (5 Year Treasury Constant Maturity +3.58%) 144A± | | 5.00 | 4-2-2049 | | 800,000 | 750,000 |
| Health care: 0.49% | | | | | | |
| Life sciences tools & services: 0.49% | | | | | | |
| Danaher Corporation | | 2.50 | 3-30-2030 | | 800,000 | 814,395 |
| Industrials: 0.94% | | | | | | |
| Commercial services & supplies: 0.12% | | | | | | |
| Verisure Holding AB 144A | | 9.25 | 10-15-2027 | | 175,000 | 203,321 |
| Passenger airlines: 0.60% | | | | | | |
| Air Canada Pass-Through Trust Series 2020-1 Class C 144A | | 10.50 | 7-15-2026 | | 500,000 | 531,793 |
| VistaJet Malta Finance PLC 144A | | 6.38 | 2-1-2030 | | 520,000 | 463,443 |
| | | | | | | 995,236 |
| Trading companies & distributors: 0.22% | | | | | | |
| Fly Leasing Limited 144A | | 7.00 | 10-15-2024 | | 420,000 | 367,333 |
| Materials: 0.71% | | | | | | |
| Chemicals: 0.71% | | | | | | |
| Braskem Netherlands BV 144A | | 7.25 | 2-13-2033 | | 235,000 | 225,718 |
| Westlake Chemical Corporation | | 1.63 | 7-17-2029 | | 750,000 | 683,697 |
| Yara International 144A | | 7.38 | 11-14-2032 | | 250,000 | 276,228 |
| | | | | | | 1,185,643 |
The accompanying notes are an integral part of these consolidated financial statements.
20 | Allspring Income Plus Fund
Consolidated portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Utilities: 0.69% | | | | | | |
| Electric utilities: 0.69% | | | | | | |
| Comision Federal de Electricidad SA de CV 144A | | 3.35% | 2-9-2031 | $ | 200,000 | $ 158,022 |
| Comision Federal de Electricidad SA de CV 144A | | 3.88 | 7-26-2033 | | 500,000 | 380,043 |
| Duke Energy Corporation | | 3.10 | 6-15-2028 | | 200,000 | 206,458 |
| Duke Energy Corporation | | 3.85 | 6-15-2034 | | 400,000 | 405,035 |
| | | | | | | 1,149,558 |
| Total Yankee corporate bonds and notes (Cost $21,659,473) | | | | | | 19,623,732 |
| Yankee government bonds: 2.46% | | | | | | |
| Commonwealth of Bahamas 144A | | 6.00 | 11-21-2028 | | 785,000 | 591,681 |
| Dominican Republic 144A | | 4.50 | 1-30-2030 | | 200,000 | 173,897 |
| Dominican Republic 144A | | 4.88 | 9-23-2032 | | 200,000 | 169,577 |
| Dominican Republic 144A | | 5.50 | 2-22-2029 | | 200,000 | 188,116 |
| Dominican Republic 144A | | 7.05 | 2-3-2031 | | 200,000 | 203,070 |
| Government of Bermuda 144A | | 5.00 | 7-15-2032 | | 200,000 | 200,588 |
| Mexico | | 6.35 | 2-9-2035 | | 345,000 | 366,355 |
| Mongolia Government | | 5.63 | 5-1-2023 | | 200,000 | 198,340 |
| Nota Do Tesouro Nacional | | 10.00 | 1-1-2027 | | 3,100,000 | 589,313 |
| Provincia de Cordoba 144A | | 6.88 | 12-10-2025 | | 254,472 | 215,918 |
| Provincia de Cordoba (PIK at 6.88%) 144A¥ | | 6.88 | 2-1-2029 | | 557,619 | 356,234 |
| Republic of Columbia | | 7.50 | 2-2-2034 | | 550,000 | 539,741 |
| Sultanate of Oman 144A | | 6.25 | 1-25-2031 | | 300,000 | 304,981 |
| Total Yankee government bonds (Cost $4,337,147) | | | | | | 4,097,811 |
| | | Yield | | Shares | |
| Short-term investments: 5.70% | | | | | | |
| Investment companies: 5.70% | | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞* | | 4.69 | | | 9,505,734 | 9,505,734 |
| Total Short-term investments (Cost $9,505,734) | | | | | | 9,505,734 |
| Total investments in securities (Cost $191,223,043) | 106.90% | | | | | 178,280,399 |
| Other assets and liabilities, net | (6.90) | | | | | (11,514,419) |
| Total net assets | 100.00% | | | | | $166,765,980 |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Income Plus Fund�� | 21
Consolidated portfolio of investments—March 31, 2023 (unaudited)
| 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. |
| ±± | The coupon of the security is adjusted based on the principal and/or interest payments received from the underlying pool of mortgages as well as the credit quality and the actual prepayment speed of the underlying mortgages. 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. |
| ¤ | The security is issued in zero coupon form with no periodic interest payments. |
| ♦ | The security is fair valued in accordance with Allspring Funds Management's valuation procedures, as the Board-designated valuation designee. |
| † | Non-income-earning security |
| > | Restricted security as to resale, excluding Rule 144A securities. The Fund held restricted securities with an aggregate current value of $0 (original aggregate cost of $270,927), representing 0.00% of its net assets as of period end. |
| ¥ | A payment-in-kind (PIK) security is a security in which the issuer may make interest or dividend payments in cash or additional securities or a combination of both. The rate shown is the rate in effect at period end. |
| * | A portion of the holding represents an investment held in Strategic Income Special Investment (Cayman) Ltd., the consolidated subsidiary. |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
| %% | The security is purchased on a when-issued basis. |
| ʊ | Security is perpetual in nature and has no stated maturity date. The date shown reflects the next call date. |
| Abbreviations: |
| BRL | Brazilian real |
| EUR | Euro |
| EURIBOR | Euro Interbank Offered Rate |
| FNMA | Federal National Mortgage Association |
| GBP | Great British pound |
| GNMA | Government National Mortgage Association |
| GO | General obligation |
| HEFAR | Higher Education Facilities Authority Revenue |
| IDR | Indonesian rupiah |
| INR | Indian rupee |
| LIBOR | London Interbank Offered Rate |
| MYR | Malaysian ringgit |
| RUB | Russian ruble |
| SOFR | Secured Overnight Financing Rate |
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | $9,279,572 | $45,737,605 | $(45,511,443) | $0 | | $0 | | $ 9,505,734 | 9,505,734 | $ 46,438 |
Investments in affiliates no longer
held at end of period | | | | | | | | | | |
| Securities Lending Cash Investment LLC | 769,598 | 17,029,127 | (17,798,725) | 0 | | 0 | | 0 | 0 | 16,779 # |
| | | | | $0 | | $0 | | $9,505,734 | | $63,217 |
| # | Amount shown represents income before fees and rebates. |
The accompanying notes are an integral part of these consolidated financial statements.
22 | Allspring Income Plus Fund
Consolidated portfolio of investments—March 31, 2023 (unaudited)
Forward foreign currency contracts
Currency to be
received | Currency to be
delivered | Counterparty | Settlement
date | Unrealized
gains | | Unrealized
losses |
| 33,293,777 USD | 30,771,194 EUR | Citibank National Association | 6-30-2023 | $ 0 | | $ (240,834) |
| 1,196,247 USD | 975,000 GBP | Citibank National Association | 6-30-2023 | 0 | | (8,538) |
| 516,033 USD | 7,950,000,000 IDR | Morgan Stanley Incorporated | 6-30-2023 | 0 | | (13,009) |
| 45,689,962 JPY | 347,611 USD | Citibank National Association | 6-30-2023 | 912 | | 0 |
| | | | | $912 | | $(262,381) |
Futures contracts
| Description | Number of
contracts | Expiration
date | Notional
cost | Notional
value | Unrealized
gains | | Unrealized
losses |
| Long | | | | | | | |
| 10-Year U.S. Treasury Notes | 40 | 6-21-2023 | $ 4,467,891 | $ 4,596,875 | $ 128,984 | | $ 0 |
| 2-Year U.S. Treasury Notes | 95 | 6-30-2023 | 19,608,914 | 19,613,047 | 4,133 | | 0 |
| 5-Year U.S. Treasury Notes | 43 | 6-30-2023 | 4,617,191 | 4,708,836 | 91,645 | | 0 |
| Short | | | | | | | |
| Euro-Bund Futures | (39) | 6-8-2023 | (5,535,608) | (5,745,420) | 0 | | (209,812) |
| 10-Year U.S. Ultra Treasury Notes | (19) | 6-21-2023 | (2,224,927) | (2,301,672) | 0 | | (76,745) |
| | | | | | $224,762 | | $(286,557) |
Centrally cleared credit default swap contracts
| Reference index | Fixed rate
received | Payment
frequency | Maturity
date | Notional
amount | Value | Premiums
paid
(received) | Unrealized
gains | | Unrealized
losses |
| Sell protection | | | | | | | | | | |
| Markit CDX Emerging Markets Index * | 1.00% | Quarterly | 6-20-2026 | USD | 920,000 | $ (22,012) | $ (17,234) | $0 | | $ (4,778) |
| Markit iTraxx Europe Crossover * | 5.00 | Quarterly | 6-20-2026 | EUR | 3,000,000 | 154,271 | 286,145 | 0 | | (131,874) |
| Markit iTraxx Europe Subordinated Financial Index * | 1.00 | Quarterly | 6-20-2026 | EUR | 12,000,000 | (164,312) | (29,424) | 0 | | (134,888) |
| | | | | | | | | $0 | | $(271,540) |
| * | A portion of the holding represents an investment held in Strategic Income Special Investment (Cayman) Ltd., the consolidated subsidiary. |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Income Plus Fund | 23
Consolidated statement of assets and liabilities—March 31, 2023 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $181,717,309)
| $ 168,774,665 |
Investments in affiliated securities, at value (cost $9,505,734)
| 9,505,734 |
Segregated cash for forward foreign currency contracts
| 361,563 |
Cash at broker segregated for futures contracts
| 1,459,000 |
Segregated cash for swap contracts
| 1,102,828 |
Foreign currency, at value (cost $465,616)
| 491,180 |
Receivable for investments sold
| 3,206,504 |
Receivable for dividends and interest
| 1,630,841 |
Receivable for daily variation margin on centrally cleared swap contracts
| 1,293,281 |
Receivable for Fund shares sold
| 84,047 |
Receivable for daily variation margin on open futures contracts
| 36,852 |
Receivable for securities lending income, net
| 962 |
Unrealized gains on forward foreign currency contracts
| 912 |
Prepaid expenses and other assets
| 134,647 |
Total assets
| 188,083,016 |
| Liabilities | |
Payable for investments purchased
| 19,553,412 |
Payable for daily variation margin on centrally cleared swap contracts
| 1,249,272 |
Unrealized losses on forward foreign currency contracts
| 262,381 |
Management fee payable
| 58,476 |
Payable for daily variation margin on open futures contracts
| 45,418 |
Overdraft due to custodian bank
| 23,695 |
Payable for Fund shares redeemed
| 16,122 |
Administration fees payable
| 13,218 |
Trustees’ fees and expenses payable
| 3,157 |
Distribution fee payable
| 856 |
Accrued expenses and other liabilities
| 91,029 |
Total liabilities
| 21,317,036 |
Total net assets
| $166,765,980 |
| Net assets consist of | |
Paid-in capital
| $ 184,410,945 |
Total distributable loss
| (17,644,965) |
Total net assets
| $166,765,980 |
| Computation of net asset value and offering price per share | |
Net assets – Class A
| $ 14,748,522 |
Shares outstanding – Class A1
| 1,711,200 |
Net asset value per share – Class A
| $8.62 |
Maximum offering price per share – Class A2
| $8.98 |
Net assets – Class C
| $ 1,269,825 |
Shares outstanding – Class C1
| 146,493 |
Net asset value per share – Class C
| $8.67 |
Net assets – Administrator Class
| $ 2,069,487 |
Shares outstanding – Administrator Class1
| 237,972 |
Net asset value per share – Administrator Class
| $8.70 |
Net assets – Institutional Class
| $ 148,678,146 |
Shares outstanding – Institutional Class1
| 17,286,877 |
Net asset value per share – Institutional Class
| $8.60 |
| 1 | The Fund has an unlimited number of authorized shares. |
| 2 | Maximum offering price is computed as 100/96 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these consolidated financial statements.
24 | Allspring Income Plus Fund
Consolidated statement of operations— six months ended March 31, 2023 (unaudited)
| | |
| Investment income | |
Interest (net of foreign withholding taxes of $3,016)
| $ 4,030,806 |
Income from affiliated securities
| 164,824 |
Dividends
| 76,680 |
Total investment income
| 4,272,310 |
| Expenses | |
Management fee
| 427,498 |
| Administration fees | |
Class A
| 11,525 |
Class C
| 970 |
Administrator Class
| 1,006 |
Institutional Class
| 58,089 |
| Shareholder servicing fees | |
Class A
| 18,008 |
Class C
| 1,515 |
Administrator Class
| 2,516 |
| Distribution fee | |
Class C
| 4,546 |
Custody and accounting fees
| 16,511 |
Professional fees
| 36,511 |
Registration fees
| 19,410 |
Shareholder report expenses
| 19,034 |
Trustees’ fees and expenses
| 11,087 |
Other fees and expenses
| 2,391 |
Total expenses
| 630,617 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level
| (109,000) |
Class A
| (2,167) |
Class C
| (182) |
Administrator Class
| (1,211) |
Net expenses
| 518,057 |
Net investment income
| 3,754,253 |
| Realized and unrealized gains (losses) on investments | |
| Net realized gains (losses) on | |
Unaffiliated securities
| (3,237,899) |
Forward foreign currency contracts
| (1,186,414) |
Futures contracts
| (203,252) |
Swap contracts
| 152,090 |
Net realized losses on investments
| (4,475,475) |
| Net change in unrealized gains (losses) on | |
Unaffiliated securities
| 8,259,681 |
Forward foreign currency contracts
| (339,397) |
Futures contracts
| 399,875 |
Swap contracts
| 636,740 |
Net change in unrealized gains (losses) on investments
| 8,956,899 |
Net realized and unrealized gains (losses) on investments
| 4,481,424 |
Net increase in net assets resulting from operations
| $ 8,235,677 |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Income Plus Fund | 25
Consolidated statement of changes in net assets
| | | | | |
| | Six months ended
March 31, 2023
(unaudited) | Year ended
September 30, 2022 |
| Operations | | | | |
Net investment income
| | $ 3,754,253 | | $ 5,673,590 |
Net realized gains (losses) on investments
| | (4,475,475) | | 2,063,697 |
Net change in unrealized gains (losses) on investments
| | 8,956,899 | | (28,372,326) |
Net increase (decrease) in net assets resulting from operations
| | 8,235,677 | | (20,635,039) |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class A
| | (310,970) | | (685,837) |
Class C
| | (21,863) | | (79,643) |
Administrator Class
| | (43,660) | | (361,182) |
Institutional Class
| | (3,406,182) | | (10,427,170) |
Total distributions to shareholders
| | (3,782,675) | | (11,553,832) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class A
| 199,997 | 1,704,772 | 1,682,286 | 16,330,701 |
Class C
| 27,764 | 239,157 | 63,146 | 603,993 |
Administrator Class
| 29,358 | 257,906 | 299,073 | 2,948,472 |
Institutional Class
| 2,692,953 | 23,130,296 | 7,915,708 | 73,200,984 |
| | | 25,332,131 | | 93,084,150 |
| Reinvestment of distributions | | | | |
Class A
| 36,416 | 309,983 | 73,161 | 682,559 |
Class C
| 2,552 | 21,863 | 8,331 | 79,643 |
Administrator Class
| 5,083 | 43,660 | 37,139 | 361,043 |
Institutional Class
| 400,978 | 3,406,176 | 1,099,311 | 10,369,573 |
| | | 3,781,682 | | 11,492,818 |
| Payment for shares redeemed | | | | |
Class A
| (191,805) | (1,637,527) | (352,310) | (3,189,842) |
Class C
| (9,542) | (82,804) | (72,697) | (663,225) |
Administrator Class
| (23,874) | (206,522) | (816,237) | (7,946,957) |
Institutional Class
| (2,752,441) | (23,484,321) | (8,284,277) | (76,954,857) |
| | | (25,411,174) | | (88,754,881) |
Net increase in net assets resulting from capital share transactions
| | 3,702,639 | | 15,822,087 |
Total increase (decrease) in net assets
| | 8,155,641 | | (16,366,784) |
| Net assets | | | | |
Beginning of period
| | 158,610,339 | | 174,977,123 |
End of period
| | $166,765,980 | | $158,610,339 |
The accompanying notes are an integral part of these consolidated financial statements.
26 | Allspring Income Plus Fund
Consolidated financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class A | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $8.38 | $10.12 | $9.64 | $9.50 | $9.43 | $9.59 |
Net investment income
| 0.17 | 0.28 1 | 0.27 | 0.29 | 0.34 1 | 0.31 1 |
Net realized and unrealized gains (losses) on investments
| 0.25 | (1.41) | 0.51 | 0.14 | 0.09 | (0.16) |
Total from investment operations
| 0.42 | (1.13) | 0.78 | 0.43 | 0.43 | 0.15 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.18) | (0.36) | (0.30) | (0.29) | (0.36) | (0.31) |
Net realized gains
| 0.00 | (0.25) | 0.00 | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders
| (0.18) | (0.61) | (0.30) | (0.29) | (0.36) | (0.31) |
Net asset value, end of period
| $8.62 | $8.38 | $10.12 | $9.64 | $9.50 | $9.43 |
Total return2
| 5.12% | (11.77)% | 8.18% | 4.60% | 4.66% | 1.59% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.06% | 1.07% | 1.07% | 1.08% | 1.09% | 1.45% |
Net expenses
| 0.90% | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% |
Net investment income
| 4.26% | 3.09% | 3.00% | 3.43% | 3.65% | 3.26% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 56% | 113% | 128% | 88% | 116% | 50% |
Net assets, end of period (000s omitted)
| $14,749 | $13,960 | $2,667 | $1,662 | $1,394 | $1,266 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Income Plus Fund | ��27
Consolidated financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class C | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $8.42 | $10.16 | $9.68 | $9.49 | $9.41 | $9.57 |
Net investment income
| 0.14 1 | 0.21 1 | 0.22 | 0.23 | 0.27 | 0.23 |
Payment from affiliate
| 0.00 | 0.00 | 0.00 | 0.07 | 0.00 | 0.00 |
Net realized and unrealized gains (losses) on investments
| 0.26 | (1.41) | 0.49 | 0.12 | 0.10 | (0.15) |
Total from investment operations
| 0.40 | (1.20) | 0.71 | 0.42 | 0.37 | 0.08 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.15) | (0.29) | (0.23) | (0.23) | (0.29) | (0.24) |
Net realized gains
| 0.00 | (0.25) | 0.00 | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders
| (0.15) | (0.54) | (0.23) | (0.23) | (0.29) | (0.24) |
Net asset value, end of period
| $8.67 | $8.42 | $10.16 | $9.68 | $9.49 | $9.41 |
Total return2
| 4.82% | (12.38)% 3 | 7.36% | 4.45% 4 | 4.00% | 0.88% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.81% | 1.77% | 1.82% | 1.83% | 1.84% | 2.20% |
Net expenses
| 1.65% | 1.63% | 1.65% | 1.65% | 1.65% | 1.65% |
Net investment income
| 3.60% | 2.30% | 2.23% | 2.67% | 2.92% | 2.52% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 56% | 113% | 128% | 88% | 116% | 50% |
Net assets, end of period (000s omitted)
| $1,270 | $1,059 | $1,290 | $647 | $520 | $517 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
| 3 | During the year ended September 30, 2022, the Fund received a payment from a service provider which had a 0.10% impact on the total return. |
| 4 | During the year ended September 30, 2022, the Fund received a payment from an affiliate which had a 0.79% impact on the total return. |
The accompanying notes are an integral part of these consolidated financial statements.
28 | Allspring Income Plus Fund
Consolidated financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Administrator Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $8.45 | $10.20 | $9.71 | $9.56 | $9.46 | $9.61 |
Net investment income
| 0.17 | 0.29 1 | 0.29 1 | 0.34 1 | 0.36 1 | 0.33 1 |
Net realized and unrealized gains (losses) on investments
| 0.27 | (1.43) | 0.51 | 0.11 | 0.09 | (0.16) |
Total from investment operations
| 0.44 | (1.14) | 0.80 | 0.45 | 0.45 | 0.17 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.19) | (0.36) | (0.31) | (0.30) | (0.35) | (0.32) |
Net realized gains
| 0.00 | (0.25) | 0.00 | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders
| (0.19) | (0.61) | (0.31) | (0.30) | (0.35) | (0.32) |
Net asset value, end of period
| $8.70 | $8.45 | $10.20 | $9.71 | $9.56 | $9.46 |
Total return2
| 5.22% | (11.77)% | 8.31% | 4.72% | 4.83% | 1.81% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.00% | 1.01% | 1.00% | 1.02% | 1.08% | 1.38% |
Net expenses
| 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% |
Net investment income
| 4.50% | 2.97% | 2.83% | 3.61% | 3.80% | 3.48% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 56% | 113% | 128% | 88% | 116% | 50% |
Net assets, end of period (000s omitted)
| $2,069 | $1,921 | $7,215 | $40 | $75 | $5,471 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Income Plus Fund | 29
Consolidated financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Institutional Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $8.36 | $10.10 | $9.63 | $9.49 | $9.42 | $9.58 |
Net investment income
| 0.20 | 0.31 | 0.33 | 0.36 | 0.37 1 | 0.34 |
Net realized and unrealized gains (losses) on investments
| 0.24 | (1.42) | 0.47 | 0.10 | 0.09 | (0.16) |
Total from investment operations
| 0.44 | (1.11) | 0.80 | 0.46 | 0.46 | 0.18 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.20) | (0.38) | (0.33) | (0.32) | (0.39) | (0.34) |
Net realized gains
| 0.00 | (0.25) | 0.00 | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders
| (0.20) | (0.63) | (0.33) | (0.32) | (0.39) | (0.34) |
Net asset value, end of period
| $8.60 | $8.36 | $10.10 | $9.63 | $9.49 | $9.42 |
Total return2
| 5.31% | (11.53)% | 8.43% | 4.96% | 5.00% | 1.93% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.73% | 0.74% | 0.74% | 0.75% | 0.75% | 1.12% |
Net expenses
| 0.60% | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% |
Net investment income
| 4.65% | 3.33% | 3.34% | 3.72% | 3.97% | 3.54% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 56% | 113% | 128% | 88% | 116% | 50% |
Net assets, end of period (000s omitted)
| $148,678 | $141,671 | $163,806 | $149,722 | $153,414 | $45,175 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these consolidated financial statements.
30 | Allspring Income Plus Fund
Notes to consolidated financial statements (unaudited)
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 consolidated financial statements report on the Allspring Income Plus Fund (the "Fund") which is a diversified series of the Trust.
2. INVESTMENT IN SUBSIDIARY
The Fund invests in Strategic Income Special Investment (Cayman) Ltd. (the “Subsidiary”), a wholly-owned subsidiary incorporated on July 11, 2019 under the laws of the Cayman Islands as an exempted segregated portfolio company with limited liability. As of March 31, 2023, the Subsidiary had $7,078,726 invested in swap contracts and cash equivalents and had $1,102,828 in cash segregated at the broker for the swap contracts which in the aggregate represented 100.71% of its net assets. The Fund is the sole shareholder of the Subsidiary. As of March 31, 2023, the Fund held $8,289,246 in the Subsidiary, representing 4.97% of the Fund’s net assets prior to consolidation.
The consolidated financial statements of the Fund include the financial results of its wholly-owned subsidiary. The Consolidated Portfolio of Investments includes positions of the Fund and the Subsidiary and the consolidated financial statements include the accounts of the Fund and the Subsidiary. Accordingly, all interfund balances and transactions between the Fund and the Subsidiary have been eliminated in consolidation.
3. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the consolidated 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 consolidated financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
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.
Equity securities, exchange-traded funds and futures contracts that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee established by Allspring Funds Management, LLC ("Allspring Funds Management").
Forward foreign currency contracts are recorded at the forward rate provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee.
Swap contracts are valued at the evaluated price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee 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. On a quarterly basis, the Board of Trustees receives reports of
Allspring Income Plus Fund | 31
Notes to consolidated financial statements (unaudited)
valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.
Securities lending
During the period, the Fund participated in a program to lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities were on loan, the Fund received interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions was invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Effective at the close of business on March 29, 2023, the Fund is no longer participating in the securities lending program and the Securities Lending Fund was liquidated. Securities Lending Fund was managed by Allspring Funds Management and was subadvised by Allspring Global Investments, LLC ("Allspring Investments"), an affiliate of Allspring Funds Management and wholly owned subsidiary of Allspring Global Investments Holdings, LLC. Allspring Funds Management received an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increased. All of the fees received by Allspring Funds Management were paid to Allspring Investments for its services as subadviser.
Investments in Securities Lending Fund were valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Consolidated Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
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.
Loans
The Fund may invest in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When the Fund purchases participations, it generally has no rights to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund assumes the credit risk of both the borrower and the lender that is selling the participation. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan
32 | Allspring Income Plus Fund
Notes to consolidated financial statements (unaudited)
and may enforce compliance by the borrower with the terms of the loan agreement. Loans may include fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding.
Forward foreign currency contracts
A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on forward foreign currency contracts. The Fund is subject to foreign currency risk and may be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund's maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the counterparty.
Futures contracts
Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at a specified price on a specified date. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in interest rates and is subject to interest rate risk. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market. Futures contracts are generally entered into on a regulated futures exchange and cleared through a clearinghouse associated with the exchange. With futures contracts, there is minimal counterparty risk to the Fund since futures contracts are exchange-traded and the exchange’s clearinghouse, as the counterparty to all exchange-traded futures, guarantees the futures contracts against default.
Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) with the broker in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are paid to or from the broker each day equal to the daily changes in the contract value. Such payments are recorded as unrealized gains or losses and, if any, shown as variation margin receivable (payable) in the Consolidated Statement of Assets and Liabilities. Should the Fund fail to make requested variation margin payments, the broker can gain access to the initial margin to satisfy the Fund’s payment obligations. When the contracts are closed, a realized gain or loss is recorded in the Consolidated Statement of Operations.
Swap contracts
Swap contracts are agreements between the Fund or the Subsidiary and a counterparty to exchange a series of cash flows over a specified period. Swap agreements are privately negotiated contracts between the Fund or the Subsidiary that are entered into as bilateral contracts in the over-the-counter market or centrally cleared (“centrally cleared swaps”) with a central clearinghouse.
The Fund or the Subsidiary entered into centrally cleared swaps. In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the counterparty on the swap agreement becomes the CCP. Upon entering into a centrally cleared swap, the Fund or the Subsidiary is required to deposit an initial margin with the broker in the form of cash or securities. Securities deposited as initial margin are designated in the Consolidated Portfolio of Investments and cash deposited is shown as cash segregated for centrally cleared swaps in the Consolidated Statement of Assets and Liabilities. Pursuant to the contract, the Fund or the Subsidiary agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). The variation margin is recorded as an unrealized gain (or loss) and shown as daily variation margin receivable (or payable) on centrally cleared swaps in the Consolidated Statement of Assets and Liabilities. Payments received from (paid to) the counterparty are recorded as realized gains (losses) in the Consolidated Statement of Operations when the contract is closed.
Credit default swaps
The Fund may enter into credit default swaps for hedging or speculative purposes to provide or receive a measure of protection against default on a referenced entity, obligation or index or a basket of single-name issuers or traded indexes. An index credit default swap references all the names in the index, and if a credit event is triggered, the credit event is settled based on that name’s weight in the index. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the protection seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring).
The Fund may enter into credit default swaps as either the seller of protection or the buyer of protection. If the Fund is the buyer of protection and a credit event occurs, the Fund will either receive from the seller an amount equal to the notional
Allspring Income Plus Fund | 33
Notes to consolidated financial statements (unaudited)
amount of the swap and deliver the referenced security or underlying securities comprising the index, or receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. If the Fund is the seller of protection and a credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.
As the seller of protection, the Fund is subject to investment exposure on the notional amount of the swap and has assumed the risk of default of the underlying security or index. As the buyer of protection, the Fund could be exposed to risks if the seller of the protection defaults on its obligation to perform, or if there are unfavorable changes in the fluctuation of interest rates.
By entering into credit default swap contracts, the Fund is exposed to credit risk. In addition, certain credit default swap contracts entered into by the Fund provide for conditions that result in events of default or termination that enable the counterparty to the agreement to cause an early termination of the transactions under those agreements.
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. Paydown gains and losses are included in interest income.
Dividend income is recognized on the ex-dividend date.
Income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
Income dividends and capital gain distributions from investment companies are recorded on the ex-dividend date. Capital gain distributions from investment companies are treated as realized gains.
Distributions to shareholders
Distributions to shareholders are recorded on the ex-dividend date and paid from net investment income monthly and any net realized gains are 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 Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
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, as applicable, 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 March 31, 2023, the aggregate cost of all investments for federal income tax purposes was $208,910,784 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $ 5,738,640 |
| Gross unrealized losses | (36,963,829) |
| Net unrealized losses | $(31,225,189) |
34 | Allspring Income Plus Fund
Notes to consolidated financial statements (unaudited)
As of September 30, 2022, the Fund had current year deferred post-October capital losses consisting of $2,873,706 in short-term capital losses and $46,802 in long-term capital losses which was recognized in the first day of the current fiscal year.
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 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.
4. 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.
Allspring Income Plus Fund | 35
Notes to consolidated financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2023:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Agency securities | $ 0 | $ 15,632,288 | $0 | $ 15,632,288 |
| Asset-backed securities | 0 | 14,326,903 | 0 | 14,326,903 |
| Corporate bonds and notes | 0 | 33,972,855 | 0 | 33,972,855 |
| Foreign corporate bonds and notes | 0 | 12,623,569 | 0 | 12,623,569 |
| Foreign government bonds | 0 | 22,586,195 | 0 | 22,586,195 |
| Investment companies | 8,030,425 | 0 | 0 | 8,030,425 |
| Loans | 0 | 3,573,406 | 0 | 3,573,406 |
| Municipal obligations | 0 | 129,006 | 0 | 129,006 |
| Non-agency mortgage-backed securities | 0 | 29,023,960 | 0 | 29,023,960 |
| U.S. Treasury securities | 5,154,515 | 0 | 0 | 5,154,515 |
| Yankee corporate bonds and notes | 0 | 19,623,732 | 0 | 19,623,732 |
| Yankee government bonds | 0 | 4,097,811 | 0 | 4,097,811 |
| Short-term investments | | | | |
| Investment companies | 9,505,734 | 0 | 0 | 9,505,734 |
| | 22,690,674 | 155,589,725 | 0 | 178,280,399 |
| Forward foreign currency contracts | 0 | 912 | 0 | 912 |
| Futures contracts | 224,762 | 0 | 0 | 224,762 |
| Total assets | $22,915,436 | $155,590,637 | $0 | $178,506,073 |
| Liabilities | | | | |
| Forward foreign currency contracts | $ 0 | $ 262,381 | $0 | $ 262,381 |
| Futures contracts | 286,557 | 0 | 0 | 286,557 |
| Swap contracts | 0 | 271,540 | 0 | 271,540 |
| Total liabilities | $ 286,557 | $ 533,921 | $0 | $ 820,478 |
Futures contracts, forward foreign currency contracts and swap contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the tables following the Consolidated Portfolio of Investments. For futures contracts and centrally cleared swap contracts, the current day’s variation margin is reported on the Consolidated Statement of Assets and Liabilities. All other assets and liabilities are reported at their market value at measurement date.
Additional sector, industry or geographic detail, if any, is included in the Consolidated Portfolio of Investments.
For the six months ended March 31, 2023, the Fund did not have any transfers into/out of Level 3.
5. 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:
36 | Allspring Income Plus Fund
Notes to consolidated financial statements (unaudited)
| Average daily net assets | Management fee |
| First $500 million | 0.525% |
| Next $500 million | 0.500 |
| Next $2 billion | 0.475 |
| Next $2 billion | 0.450 |
| Next $5 billion | 0.415 |
| Over $10 billion | 0.405 |
For the six months ended March 31, 2023, the management fee was equivalent to an annual rate of 0.525% of the Fund’s average daily net assets.
The Subsidiary has entered into a separate advisory contract with Allspring Funds Management to manage the investment and reinvestment of its assets in conformity with its investment objectives and restrictions. Under this agreement, the Subsidiary does not pay Allspring Funds Management a fee for its services.
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 Investments is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.35% and declining to 0.20% 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 | 0.16% |
| Class C | 0.16 |
| Administrator Class | 0.10 |
| Institutional Class | 0.08 |
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 January 31, 2024 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. As of March 31, 2023, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class A | 0.90% |
| Class C | 1.65 |
| Administrator Class | 0.75 |
| Institutional Class | 0.60 |
Allspring Income Plus Fund | 37
Notes to consolidated financial statements (unaudited)
Distribution fee
The Trust has adopted a distribution plan for Class C shares 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"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. Allspring Funds Distributor did not receive any front-end or contingent deferred sales charges from Class A or Class C shares for the six months ended March 31, 2023.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
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.
6. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six months ended March 31, 2023 were as follows:
| Purchases at cost | | Sales proceeds |
U.S.
government | Non-U.S.
government | | U.S.
government | Non-U.S.
government |
| $30,615,353 | $75,335,287 | | $56,876,410 | $29,456,837 |
7. DERIVATIVE TRANSACTIONS
During the six months ended March 31, 2023, the Fund entered into futures contracts for economic hedging purposes. The Fund also entered into forward foreign currency contracts for economic hedging purposes and entered into swap contracts as a substitute for taking a position in the underlying security or index to potentially enhance the Fund’s total return.
The volume of the Fund's derivative activity during the six months ended March 31, 2023 was as follows:
| Futures contracts | |
| Average notional balance on long futures | $35,851,549 |
| Average notional balance on short futures | 10,579,842 |
| Forward foreign currency contracts | |
| Average contract amounts to buy | $ 4,922,650 |
| Average contract amounts to sell | 33,511,591 |
| Swap contracts | |
| Average notional balance | $18,433,919 |
The swap transactions may contain provisions for early termination in the event the net assets of the Fund declines below specific levels identified by the counterparty. If these levels are triggered, the counterparty may terminate the transaction and seek payment or request full collateralization of the derivative transactions in net liability positions.
A summary of the location of derivative instruments on the financial statements by primary risk exposure is outlined in the following tables.
38 | Allspring Income Plus Fund
Notes to consolidated financial statements (unaudited)
The fair value of derivative instruments as of March 31, 2023 by primary risk type was as follows for the Fund:
| | Asset derivatives | | Liability derivatives |
| | Consolidated Statement of
Assets and Liabilities location | Fair value | | Consolidated Statement of
Assets and Liabilities location | Fair value |
| Interest rate risk | Unrealized gains on futures contracts | $ 224,762* | | Unrealized losses on futures contracts | $ 286,557* |
| Foreign currency risk | Unrealized gains on forward foreign currency contracts | 912 | | Unrealized losses on forward foreign currency contracts | 262,381 |
| Credit risk | Unrealized gains on swap contracts | 0* | | Unrealized losses on swap contracts | 271,540* |
| | | $225,674 | | | $820,478 |
* Amount represents the cumulative unrealized gains (losses) as reported in the table following the Consolidated Portfolio of Investments. For futures contracts and centrally cleared swap contracts, only the current day's variation margin as of March 31, 2023 is reported separately on the Consolidated Statement of Assets and Liabilities.
The effect of derivative instruments on the Consolidated Statement of Operations for the six months ended March 31, 2023 was as follows:
| | Net realized gains (losses) on derivatives |
| | Forward
foreign
currency
contracts | Futures
contracts | Swap
contracts | Total |
| Interest rate risk | $ 0 | $ (203,252) | $ 0 | $ (203,252) |
| Foreign currency risk | (1,160,850) | 0 | 0 | (1,160,850) |
| Credit risk | 0 | 0 | 152,090 | 152,090 |
| | $(1,160,850) | $(203,252) | $152,090 | $(1,212,012) |
| | Net change in unrealized gains (losses) on derivatives |
| | Forward
foreign
currency
contracts | Futures
contracts | Swap
contracts | Total |
| Interest rate risk | $ 0 | $ 399,875 | $ 0 | $ 399,875 |
| Foreign currency risk | (339,397) | 0 | 0 | (339,397) |
| Credit risk | 0 | 0 | 636,740 | 636,740 |
| | $(339,397) | $399,875 | $636,740 | $ 697,218 |
For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Consolidated Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Consolidated Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Consolidated Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Consolidated Statement of Assets and Liabilities to the net amounts by counterparty, including any collateral exposure, for OTC derivatives is as follows:
Allspring Income Plus Fund | 39
Notes to consolidated financial statements (unaudited)
| Counterparty | Gross amounts
of assets in the
Consolidated
Statement of
Assets and
Liabilities | Amounts
subject to
netting
agreements | Collateral
received | Net amount
of assets |
| Citibank National Association | $912 | $(912) | $0 | $0 |
| Counterparty | Gross amounts
of liabilities in the
Consolidated
Statement of
Assets and
Liabilities | Amounts
subject to
netting
agreements | Collateral
pledged | Net amount
of liabilities |
| Citibank National Association | $249,372 | $(912) | $0 | $248,460 |
| Morgan Stanley Incorporated | 13,009 | 0 | 0 | 13,009 |
8. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended March 31, 2023, there were no borrowings by the Fund under the agreement.
9. MARKET RISKS
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 and Belarus 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. As of March 31, 2023, the Fund held 0.00% of its total net assets in Russian securities with unrealized losses in the amount of $474,124.
10. 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.
40 | Allspring Income Plus Fund
Other information (unaudited)
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.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
Allspring Income Plus Fund | 41
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 127 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 1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203. 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 Foundation (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. Member of the Advisory Board of CEF of East Central Florida. 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 | Distinguished Visiting Fellow at the Hoover Institution since 2022. 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 |
42 | Allspring Income Plus Fund
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, from 2007-2022. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. | 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 | Retired. Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer, Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Allspring Income Plus Fund | 43
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 and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, from 2019 to 2022 and 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. |
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 from 2005 to 2010. |
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) | Chief Legal Officer, since 2022; 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.
44 | Allspring Income Plus Fund
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
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.
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.
© 2023 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-04042023-8gjunoea 05-23
SAR3365 03-23
Semi-Annual Report
March 31, 2023
Allspring Global Investment
Grade Credit Fund
The views expressed and any forward-looking statements are as of March 31, 2023, 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.
Allspring Global Investment Grade Credit Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Global Investment Grade Credit Fund for the six-month period that ended March 31, 2023. Globally, stocks and bonds rebounded strongly despite ongoing volatility. While navigating persistently high inflation and the impact of ongoing aggressive central bank rate hikes, markets rallied on signs of declining inflation, anticipation of an end to the central bank monetary tightening cycle, and the stimulating impact of China removing its strict COVID-19 lockdowns in December. For the six-month period, domestic U.S. and global stocks and bonds had strong results. After suffering deep and broad losses through 2022, recent fixed income performance benefited from a base of higher yields that can now generate higher income.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 15.62%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 22.13%, while the MSCI EM Index (Net) (USD)3 returned 14.04%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 4.89%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned 10.07%, the Bloomberg Municipal Bond Index6 gained 7.00%, and the ICE BofA U.S. High Yield Index7 returned 7.89%.
Despite high inflation and central bank rate hikes, markets rally.
Equities had a reprieve in October. Value stocks and small caps fared best. Globally, developed markets outpaced emerging market equities, which were hurt by weakness among Chinese stocks. Central banks continued to try to curtail high inflation with aggressive interest rate hikes. Geopolitical risks persisted, including the ongoing Russia-Ukraine war and economic, financial market, and political turmoil in the U.K. Concerns over Europe’s energy crisis eased thanks to unseasonably warm weather and plentiful gas on hand. The U.S. labor market continued its resilience against rising prices as unemployment remained near a record low.
Stocks and bonds rallied in November. Economic news was encouraging, driven by U.S. labor market strength. Although central banks kept raising rates, hopes rose for an easing in the pace of rate hikes and a possible end to central bank monetary tightening in 2023. Although inflation remained at record highs in the eurozone, we began to see signs of a possible decline in inflationary pressures as U.S. inflation moderated, with a 7.1% annual price rise in November and a monthly price increase of just 0.1%. China’s economic data remained weak, reflecting its zero-COVID-19 policy.
| 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 2023. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring Global Investment Grade Credit Fund
Letter to shareholders (unaudited)
Financial markets cooled in December, with U.S. equities posting negative overall results in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever with flat overall monthly returns as markets weighed the hopes for an end to the monetary tightening cycle with the reality that central banks had not completed their jobs yet. U.S. Consumer Price Index (CPI)1 data showed a strong consistent trend downward, which brought down the 12-month CPI to 6.5% in December from 9.1% in June. Other countries and regions reported still-high but declining inflation rates as the year winded down.
The year 2023 began with a rally across global equities and fixed income securities. Investor optimism rose in response to data indicating declining inflation rates and the reopening of China’s economy with the abrupt end to its zero-COVID-19 policy. The U.S. reported surprisingly strong job gains––employers added more than 500,000 jobs––and unemployment fell to 3.4%, the lowest level since 1969. Meanwhile, wage growth, seen as a potential contributor to ongoing high inflation, continued to moderate. All eyes remained fixed on the Federal Reserve (Fed) and on how many more rate hikes remain in this tightening cycle. The 0.25% federal funds rate hike announced in January was the Fed’s smallest rate increase since March 2022.
Financial markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks will likely continue their monetary tightening cycle for longer than markets had priced in. In this environment—where strong economic data is seen as bad news—the resilient U.S. labor market was seen as a negative while the inflation rate has not been falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the Bank of England and the European Central Bank both raised rates by 0.50%. At this stage in the economic cycle, the overriding question remained: “What will central banks do?” In February, the answer appeared to be: “Move rates higher for longer.”
The collapse of Silicon Valley Bank in March, the second-largest banking failure in U.S. history, led to a classic bank run that spread to Europe, where Switzerland’s Credit Suisse was taken over by its rival, UBS. The sudden banking industry uncertainty led some clients of regional banks to transfer deposits to a handful of U.S. banking giants while bank shareholders sold stock. The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. The U.S. labor market remained resilient. The euro-area composite Purchasing Managers’ Index2 rose to 53.70, indicating expansion, for March. And China’s economy continued to rebound after the removal of its COVID-19 lockdown. Inflation rates in the U.S., the U.K., and Europe all remained higher than central bank targets, leading to additional rate hikes in March.
“ The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China.”
| 1 | The U.S. 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. |
| 2 | The Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. You cannot invest directly in an index. |
Allspring Global Investment Grade Credit Fund | 3
Letter to shareholders (unaudited)
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.
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
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.
4 | Allspring Global Investment Grade Credit Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks total return, consisting of income and capital appreciation. |
| Manager | Allspring Funds Management, LLC |
| Subadvisers | Allspring Global Investments, LLC |
| | Allspring Global Investments (UK) Limited |
| Portfolio managers | Henrietta Pacquement, CFA, Scott M. Smith, CFA, Alex Temple, Jonathan Terry, CFA |
| Average annual total returns (%) as of March 31, 2023 |
| | | Including sales charge | | Excluding sales charge | | Expense ratios1(%) |
| | Inception date | 1 year | Since
inception | | 1 year | Since
inception | | Gross | Net 2 |
| Class A (ACPCX)3 | 6-1-2022 | -10.61 | -0.62 | | -6.44 | 0.51 | | 1.14 | 0.83 |
| Class C (WGCCX)4 | 6-1-2022 | -8.00 | -0.21 | | -7.00 | -0.21 | | 1.89 | 1.58 |
| Class R6 (WGCRX) | 2-28-2019 | - | - | | -6.19 | 0.86 | | 0.76 | 0.45 |
| Institutional Class (WGCIX) | 2-28-2019 | - | - | | -6.24 | 0.81 | | 0.81 | 0.50 |
| Bloomberg Global Aggregate Credit Index (USD Hedged)5 | – | - | - | | -5.07 | 0.78* | | - | - |
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 return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. 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.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
For Class A shares, the maximum front-end sales charge is 4.50%. 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. Class R6 and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
| * | Based on the inception date of the oldest Fund class. |
| 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 January 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.83% for Class A, 1.58% for Class C, 0.45% for Class R6 and 0.50% for Institutional 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. 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 Class A shares prior to their inception reflects the performance of the Institutional Class shares and includes the higher expenses applicable to the Class A shares. |
| 4 | Historical performance shown for the Class C shares prior to their inception reflects the performance of the Institutional Class shares and includes the higher expenses applicable to the Class C shares. |
| 5 | Bloomberg Global Aggregate Credit Index (USD Hedged) measures the credit sector of the global investment grade fixed-rate bond market, including corporate, government and agency securities, hedged in USD. You cannot invest directly in an index. |
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
6 | Allspring Global Investment Grade Credit Fund
Performance highlights (unaudited)
Bond 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 held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. The use of derivatives may reduce returns and/or increase volatility. Securities issued by U.S. government agencies or government-sponsored entities may not be guaranteed by the U.S. Treasury. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to municipal securities risk, high-yield securities risk, and mortgage- and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks.
Allspring Global Investment Grade Credit Fund | 7
Performance highlights (unaudited)
| Ten largest holdings (%) as of March 31, 20231 |
| Bank of America Corporation, 4.13%, 1-22-2024 | 1.95 |
| Morgan Stanley, 3.13%, 7-27-2026 | 1.90 |
| Citigroup Incorporated, 3.30%, 4-27-2025 | 1.78 |
| Energy Transfer Operating Partners LP, 6.25%, 4-15-2049 | 1.37 |
| Verizon Communications Incorporated, 3.40%, 3-22-2041 | 1.25 |
| Reckitt Benckiser Treasury Services plc, 2.75%, 6-26-2024 | 1.23 |
| Motorola Solutions Incorporated, 4.60%, 2-23-2028 | 1.22 |
| British Airways Series 2019-1 Class AA Pass-Through Trust, 3.30%, 6-15-2034 | 1.12 |
| Credit Suisse New York, 3.63%, 9-9-2024 | 1.11 |
| Oracle Corporation, 2.88%, 3-25-2031 | 1.08 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Portfolio composition as of March 31, 20231 |
| 1 | Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
| Credit quality as of March 31, 20231 |
| 1 | The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the portfolio with the ratings depicted in the chart are calculated based on the market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of the three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified. |
| Effective maturity distribution as of March 31, 20231 |
| 1 | Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
8 | Allspring Global Investment Grade Credit Fund
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 October 1, 2022 to March 31, 2023.
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 sales charges (loads) and 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
10-1-2022 | Ending
account value
3-31-2023 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class A | | | | |
| Actual | $1,000.00 | $1,063.74 | $4.27 | 0.83% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.79 | $4.18 | 0.83% |
| Class C | | | | |
| Actual | $1,000.00 | $1,060.97 | $6.42 | 1.25% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,018.70 | $6.29 | 1.25% |
| Class R6 | | | | |
| Actual | $1,000.00 | $1,064.73 | $2.32 | 0.45% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,022.69 | $2.27 | 0.45% |
| Institutional Class | | | | |
| Actual | $1,000.00 | $1,064.45 | $2.57 | 0.50% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,022.44 | $2.52 | 0.50% |
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 182 divided by 365 (to reflect the one-half-year period).
Allspring Global Investment Grade Credit Fund | 9
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Asset-backed securities: 1.80% | | | | | | |
| American Airlines Series 2014-1 Class A Pass-Through Trust | | 3.70% | 4-1-2028 | $ | 210,142 | $ 192,401 |
| British Airways Series 2019-1 Class AA Pass-Through Trust 144A | | 3.30 | 6-15-2034 | | 364,132 | 314,343 |
| Total Asset-backed securities (Cost $573,687) | | | | | | 506,744 |
| Corporate bonds and notes: 51.04% | | | | | | |
| Communication services: 6.84% | | | | | | |
| Diversified telecommunication services: 3.35% | | | | | | |
| AT&T Incorporated | | 3.65 | 6-1-2051 | | 225,000 | 170,417 |
| T-Mobile USA Incorporated | | 2.55 | 2-15-2031 | | 40,000 | 33,904 |
| T-Mobile USA Incorporated | | 3.30 | 2-15-2051 | | 155,000 | 110,214 |
| Verizon Communications Incorporated | | 3.40 | 3-22-2041 | | 445,000 | 353,798 |
| Verizon Communications Incorporated | | 4.13 | 8-15-2046 | | 325,000 | 277,555 |
| | | | | | | 945,888 |
| Media: 2.99% | | | | | | |
| Charter Communications Operating LLC | | 2.80 | 4-1-2031 | | 90,000 | 72,447 |
| Charter Communications Operating LLC | | 4.20 | 3-15-2028 | | 180,000 | 170,361 |
| Charter Communications Operating LLC | | 4.91 | 7-23-2025 | | 55,000 | 54,451 |
| Comcast Corporation | | 3.40 | 4-1-2030 | | 100,000 | 93,493 |
| Magallanes Incorporated 144A | | 5.05 | 3-15-2042 | | 75,000 | 62,733 |
| Magallanes Incorporated 144A | | 5.14 | 3-15-2052 | | 335,000 | 271,428 |
| ViacomCBS Incorporated | | 4.95 | 1-15-2031 | | 130,000 | 119,941 |
| | | | | | | 844,854 |
| Wireless telecommunication services: 0.50% | | | | | | |
| T-Mobile USA Incorporated | | 3.75 | 4-15-2027 | | 145,000 | 139,385 |
| Consumer discretionary: 2.14% | | | | | | |
| Automobiles: 0.67% | | | | | | |
| General Motors Company | | 6.13 | 10-1-2025 | | 185,000 | 188,493 |
| Hotels, restaurants & leisure: 1.27% | | | | | | |
| Hyatt Hotels Corporation | | 1.80 | 10-1-2024 | | 315,000 | 298,224 |
| McDonald's Corporation | | 1.45 | 9-1-2025 | | 30,000 | 27,933 |
| McDonald's Corporation | | 4.20 | 4-1-2050 | | 35,000 | 30,867 |
| | | | | | | 357,024 |
| Specialty retail: 0.20% | | | | | | |
| Lowe's Companies Incorporated | | 4.25 | 4-1-2052 | | 70,000 | 57,442 |
| Consumer staples: 1.10% | | | | | | |
| Food products: 0.41% | | | | | | |
| Smithfield Foods Incorporated 144A | | 3.00 | 10-15-2030 | | 145,000 | 115,694 |
| Tobacco: 0.69% | | | | | | |
| BAT Capital Corporation | | 4.54 | 8-15-2047 | | 260,000 | 193,630 |
| Energy: 7.24% | | | | | | |
| Oil, gas & consumable fuels: 7.24% | | | | | | |
| BP Capital Markets America Incorporated | | 2.94 | 6-4-2051 | | 345,000 | 239,220 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Global Investment Grade Credit Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Oil, gas & consumable fuels (continued) | | | | | | |
| Energy Transfer Operating Partners LP | | 3.75% | 5-15-2030 | $ | 160,000 | $ 147,650 |
| Energy Transfer Operating Partners LP | | 6.25 | 4-15-2049 | | 390,000 | 386,384 |
| Exxon Mobil Corporation | | 2.61 | 10-15-2030 | | 160,000 | 143,791 |
| Kinder Morgan Energy Partners LP | | 5.40 | 9-1-2044 | | 200,000 | 185,235 |
| Marathon Petroleum Corporation | | 3.80 | 4-1-2028 | | 220,000 | 209,710 |
| MPLX LP | | 4.00 | 3-15-2028 | | 315,000 | 301,389 |
| ONEOK Incorporated | | 6.10 | 11-15-2032 | | 75,000 | 77,643 |
| Sabine Pass Liquefaction LLC | | 4.50 | 5-15-2030 | | 110,000 | 106,109 |
| Sabine Pass Liquefaction LLC | | 5.75 | 5-15-2024 | | 245,000 | 245,582 |
| | | | | | | 2,042,713 |
| Financials: 15.68% | | | | | | |
| Banks: 6.38% | | | | | | |
| Bank of America Corporation | | 4.13 | 1-22-2024 | | 555,000 | 550,569 |
| Citigroup Incorporated (U.S. SOFR +1.17%) ± | | 2.56 | 5-1-2032 | | 170,000 | 141,041 |
| Citigroup Incorporated | | 3.30 | 4-27-2025 | | 520,000 | 501,770 |
| JPMorgan Chase & Company (U.S. SOFR +1.25%) ± | | 2.58 | 4-22-2032 | | 150,000 | 126,248 |
| JPMorgan Chase & Company (U.S. SOFR +2.52%) ± | | 2.96 | 5-13-2031 | | 145,000 | 125,340 |
| JPMorgan Chase & Company (3 Month LIBOR +1.34%) ± | | 3.78 | 2-1-2028 | | 145,000 | 138,642 |
| Santander Holdings USA Incorporated | | 4.40 | 7-13-2027 | | 230,000 | 215,329 |
| | | | | | | 1,798,939 |
| Capital markets: 5.15% | | | | | | |
| Belrose Funding Trust 144A | | 2.33 | 8-15-2030 | | 185,000 | 143,803 |
| Blackrock Incorporated | | 1.90 | 1-28-2031 | | 35,000 | 29,061 |
| Goldman Sachs Group Incorporated (U.S. SOFR +1.41%) ± | | 3.10 | 2-24-2033 | | 115,000 | 98,759 |
| Intercontinental Exchange Incorporated | | 3.00 | 6-15-2050 | | 140,000 | 98,091 |
| Morgan Stanley | | 3.13 | 7-27-2026 | | 565,000 | 535,076 |
| Morgan Stanley | | 3.70 | 10-23-2024 | | 310,000 | 303,542 |
| S&P Global Incorporated | | 1.25 | 8-15-2030 | | 100,000 | 80,259 |
| S&P Global Incorporated | | 2.30 | 8-15-2060 | | 90,000 | 52,071 |
| State Street Corporation | | 2.40 | 1-24-2030 | | 130,000 | 112,586 |
| | | | | | | 1,453,248 |
| Consumer finance: 2.77% | | | | | | |
| Aviation Capital Group Corporation 144A | | 5.50 | 12-15-2024 | | 305,000 | 301,080 |
| Ford Motor Credit Company LLC | | 3.40 | 1-15-2026 | | 155,000 | 139,093 |
| Hyundai Capital America Corporation 144A | | 1.80 | 10-15-2025 | | 295,000 | 270,615 |
| Hyundai Capital America Corporation 144A | | 1.80 | 1-10-2028 | | 85,000 | 72,088 |
| | | | | | | 782,876 |
| Insurance: 1.38% | | | | | | |
| American International Group Incorporated | | 4.75 | 4-1-2048 | | 330,000 | 296,185 |
| Brighthouse Financial Incorporated | | 4.70 | 6-22-2047 | | 77,000 | 56,250 |
| Unum Group | | 4.50 | 12-15-2049 | | 50,000 | 36,629 |
| | | | | | | 389,064 |
| Health care: 4.02% | | | | | | |
| Biotechnology: 0.59% | | | | | | |
| AbbVie Incorporated | | 4.25 | 11-21-2049 | | 145,000 | 127,959 |
| Amgen Incorporated | | 4.20 | 2-22-2052 | | 45,000 | 38,180 |
| | | | | | | 166,139 |
The accompanying notes are an integral part of these financial statements.
Allspring Global Investment Grade Credit Fund | 11
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Health care providers & services: 3.02% | | | | | | |
| Anthem Incorporated | | 2.25% | 5-15-2030 | $ | 20,000 | $ 17,172 |
| Centene Corporation | | 2.45 | 7-15-2028 | | 210,000 | 182,700 |
| CVS Health Corporation | | 4.25 | 4-1-2050 | | 110,000 | 91,914 |
| CVS Health Corporation | | 4.30 | 3-25-2028 | | 27,000 | 26,515 |
| HCA Incorporated 144A | | 3.63 | 3-15-2032 | | 130,000 | 114,599 |
| HCA Incorporated 144A | | 4.38 | 3-15-2042 | | 130,000 | 109,265 |
| UnitedHealth Group Incorporated | | 5.88 | 2-15-2053 | | 190,000 | 213,559 |
| UnitedHealth Group Incorporated | | 6.05 | 2-15-2063 | | 85,000 | 96,776 |
| | | | | | | 852,500 |
| Pharmaceuticals: 0.41% | | | | | | |
| Bristol-Myers Squibb Company | | 2.55 | 11-13-2050 | | 175,000 | 117,084 |
| Industrials: 3.67% | | | | | | |
| Aerospace & defense: 0.94% | | | | | | |
| United Technologies Corporation | | 4.13 | 11-16-2028 | | 270,000 | 266,116 |
| Ground transportation: 1.06% | | | | | | |
| Penske Truck Leasing Company LP 144A | | 3.45 | 7-1-2024 | | 240,000 | 233,627 |
| Union Pacific Corporation | | 2.40 | 2-5-2030 | | 75,000 | 65,965 |
| | | | | | | 299,592 |
| Passenger airlines: 0.69% | | | | | | |
| US Airways Group Incorporated | | 4.63 | 12-3-2026 | | 206,094 | 194,701 |
| Professional services: 0.98% | | | | | | |
| Equifax Incorporated | | 3.10 | 5-15-2030 | | 175,000 | 152,149 |
| Equifax Incorporated | | 2.35 | 9-15-2031 | | 155,000 | 124,755 |
| | | | | | | 276,904 |
| Information technology: 6.02% | | | | | | |
| Communications equipment: 1.22% | | | | | | |
| Motorola Solutions Incorporated | | 4.60 | 2-23-2028 | | 350,000 | 345,384 |
| Electronic equipment, instruments & components: 0.48% | | | | | | |
| Jabil Incorporated | | 3.60 | 1-15-2030 | | 150,000 | 135,439 |
| Financial services: 1.22% | | | | | | |
| Fiserv Incorporated | | 2.65 | 6-1-2030 | | 45,000 | 38,847 |
| Fiserv Incorporated | | 3.50 | 7-1-2029 | | 140,000 | 129,946 |
| Western Union Company | | 4.25 | 6-9-2023 | | 175,000 | 174,073 |
| | | | | | | 342,866 |
| Semiconductors & semiconductor equipment: 1.41% | | | | | | |
| Intel Corporation | | 2.80 | 8-12-2041 | | 265,000 | 192,182 |
| Marvell Technology Incorporated | | 4.88 | 6-22-2028 | | 80,000 | 78,561 |
| Microchip Technology Incorporated | | 2.67 | 9-1-2023 | | 130,000 | 128,176 |
| | | | | | | 398,919 |
| Software: 1.22% | | | | | | |
| Oracle Corporation | | 2.88 | 3-25-2031 | | 355,000 | 303,774 |
| Oracle Corporation | | 3.60 | 4-1-2050 | | 55,000 | 39,011 |
| | | | | | | 342,785 |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Global Investment Grade Credit Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Technology hardware, storage & peripherals: 0.47% | | | | | | |
| Dell International LLC / EMC Corporation | | 6.20% | 7-15-2030 | $ | 95,000 | $ 99,072 |
| NetApp Incorporated | | 2.70 | 6-22-2030 | | 40,000 | 34,278 |
| | | | | | | 133,350 |
| Real estate: 2.00% | | | | | | |
| Diversified REITs: 0.41% | | | | | | |
| Sabra Health Care LP | | 3.20 | 12-1-2031 | | 110,000 | 80,681 |
| Vornado Realty LP | | 3.40 | 6-1-2031 | | 50,000 | 34,588 |
| | | | | | | 115,269 |
| Real estate management & development: 0.80% | | | | | | |
| Simon Property Group LP | | 1.75 | 2-1-2028 | | 60,000 | 51,611 |
| Simon Property Group LP | | 3.25 | 9-13-2049 | | 255,000 | 173,540 |
| | | | | | | 225,151 |
| Specialized REITs: 0.79% | | | | | | |
| Equinix Incorporated | | 2.15 | 7-15-2030 | | 275,000 | 224,855 |
| Utilities: 2.33% | | | | | | |
| Electric utilities: 2.33% | | | | | | |
| Duke Energy Florida LLC | | 1.75 | 6-15-2030 | | 90,000 | 74,328 |
| New York State Electric & Gas Corporation 144A | | 3.25 | 12-1-2026 | | 145,000 | 138,284 |
| Oglethorpe Power Corporation | | 3.75 | 8-1-2050 | | 125,000 | 95,979 |
| Pacificorp | | 3.50 | 6-15-2029 | | 295,000 | 278,011 |
| Union Electric Company | | 2.95 | 3-15-2030 | | 80,000 | 72,027 |
| | | | | | | 658,629 |
| Total Corporate bonds and notes (Cost $16,264,564) | | | | | | 14,404,933 |
| Foreign corporate bonds and notes : 25.30% | | | | | | |
| Communication services: 0.72% | | | | | | |
| Diversified telecommunication services: 0.37% | | | | | | |
| Chorus Limited Company | | 3.63 | 9-7-2029 | EUR | 100,000 | 105,736 |
| Wireless telecommunication services: 0.35% | | | | | | |
| Tele2 AB | | 2.13 | 5-15-2028 | EUR | 100,000 | 99,048 |
| Consumer staples: 0.58% | | | | | | |
| Household products: 0.58% | | | | | | |
| Essity AB | | 0.25 | 2-8-2031 | EUR | 200,000 | 163,226 |
| Energy: 1.86% | | | | | | |
| Oil, gas & consumable fuels: 1.86% | | | | | | |
| BP Capital Markets plc (U.S. Treasury 3 Month Bill +4.17%) ʊ± | | 4.25 | 3-22-2027 | GBP | 100,000 | 110,238 |
| National Grid Gas plc | | 1.13 | 1-14-2033 | GBP | 200,000 | 165,164 |
| Shell International Finance BV | | 1.00 | 12-10-2030 | GBP | 150,000 | 141,857 |
| TotalEnergies SE (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +2.75%) ± | | 2.71 | 5-5-2023 | EUR | 100,000 | 108,034 |
| | | | | | | 525,293 |
The accompanying notes are an integral part of these financial statements.
Allspring Global Investment Grade Credit Fund | 13
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Financials: 11.05% | | | | | | |
| Banks: 6.91% | | | | | | |
| Argenta Spaarbank NV (EUR Swap Annual (vs. 6 Month EURIBOR) 1 Year +1.10%) ± | | 1.38% | 2-8-2029 | EUR | 200,000 | $ 175,910 |
| Bawag Group AG (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +2.30%) ± | | 2.38 | 3-26-2029 | EUR | 100,000 | 101,712 |
| Belfius Bank SA (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +1.30%) ± | | 1.25 | 4-6-2034 | EUR | 200,000 | 170,102 |
| BPER Banca SR (3 Month EURIBOR +3.60%) ± | | 6.13 | 2-1-2028 | EUR | 150,000 | 162,888 |
| Credit Agricole Assurances | | 2.00 | 7-17-2030 | EUR | 200,000 | 174,794 |
| Credit Agricole SA | | 4.13 | 3-7-2030 | EUR | 100,000 | 111,346 |
| De Volksbank NV | | 4.88 | 3-7-2030 | EUR | 100,000 | 110,185 |
| European Union | | 2.75 | 12-4-2037 | EUR | 200,000 | 204,899 |
| Intesa Sanpaolo SpA (3 Month EURIBOR +1.70%) ± | | 5.00 | 3-8-2028 | EUR | 150,000 | 162,613 |
| Mizuho Financial Group (3 Month EURIBOR +0.68%) ± | | 0.47 | 9-6-2029 | EUR | 100,000 | 88,775 |
| Natwest Group plc (GBP Swap Semi Annual (vs. 6 Month LIBOR) 1 Year +1.49%) ± | | 2.88 | 9-19-2026 | GBP | 100,000 | 114,804 |
| Raiffeisen Bank International AG (EURIBOR ICE Swap Rate 11:00am +3.15%) ± | | 2.88 | 6-18-2032 | EUR | 100,000 | 83,910 |
| Toronto Dominion Bank SR | | 3.63 | 12-13-2029 | EUR | 100,000 | 104,395 |
| Unicredit SpA (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +3.16%) ± | | 2.73 | 1-15-2032 | EUR | 200,000 | 184,781 |
| | | | | | | 1,951,114 |
| Capital markets: 1.79% | | | | | | |
| Acciona Energia Financial Company | | 1.38 | 1-26-2032 | EUR | 100,000 | 88,807 |
| Cellnex Finance Company SA | | 2.00 | 2-15-2033 | EUR | 100,000 | 83,014 |
| Investec plc (U.S. Treasury 3 Month Bill +5.91%) ± | | 9.13 | 3-6-2033 | GBP | 100,000 | 123,071 |
| UBS Group AG (EURIBOR ICE Swap Rate 11:00am +0.80%) ± | | 1.00 | 3-21-2025 | EUR | 200,000 | 209,363 |
| | | | | | | 504,255 |
| Financial services: 0.67% | | | | | | |
| CCEP Finance Ireland Company | | 0.88 | 5-6-2033 | EUR | 100,000 | 81,064 |
| Paccar Financial Europe SR | | 3.25 | 11-29-2025 | EUR | 100,000 | 107,886 |
| | | | | | | 188,950 |
| Insurance: 1.68% | | | | | | |
| Berkshire Hathaway Incorporated | | 2.38 | 6-19-2039 | GBP | 100,000 | 88,688 |
| Mandatum Life Insurance Company Limited (3 Month EURIBOR +2.30%) ± | | 1.88 | 10-4-2049 | EUR | 200,000 | 198,339 |
| Sampo Oyj (3 Month EURIBOR +3.05%) ± | | 3.38 | 5-23-2049 | EUR | 100,000 | 96,240 |
| Swiss Re Finance (Luxembourg) SA (EURIBOR ICE Swap Rate 11:00am +1.85%) ± | | 2.53 | 4-30-2050 | EUR | 100,000 | 89,624 |
| | | | | | | 472,891 |
| Health care: 2.66% | | | | | | |
| Biotechnology: 0.47% | | | | | | |
| GlaxoSmithKline Capital Incorporated | | 1.63 | 5-12-2035 | GBP | 150,000 | 132,540 |
| Health care equipment & supplies: 1.11% | | | | | | |
| Koninklijke Philips NV | | 2.13 | 11-5-2029 | EUR | 100,000 | 97,487 |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Global Investment Grade Credit Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Health care equipment & supplies (continued) | | | | | | |
| Molnlycke Holding AB | | 0.63% | 1-15-2031 | EUR | 100,000 | $ 82,974 |
| Motability Operations Group plc | | 2.38 | 7-3-2039 | GBP | 150,000 | 132,761 |
| | | | | | | 313,222 |
| Pharmaceuticals: 1.08% | | | | | | |
| Astrazeneca plc | | 3.75 | 3-3-2032 | EUR | 100,000 | 110,455 |
| Bayer AG (EURIBOR ICE Swap Rate 11:00am +2.65%) ± | | 2.38 | 11-12-2079 | EUR | 100,000 | 100,528 |
| Bayer AG (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +3.11%) ± | | 3.13 | 11-12-2079 | EUR | 100,000 | 93,704 |
| | | | | | | 304,687 |
| Industrials: 0.32% | | | | | | |
| Commercial services & supplies: 0.32% | | | | | | |
| Rentokil Initial plc | | 0.50 | 10-14-2028 | EUR | 100,000 | 89,865 |
| Information technology: 1.45% | | | | | | |
| Communications equipment: 1.45% | | | | | | |
| Nokia Oyj | | 4.38 | 8-21-2031 | EUR | 100,000 | 107,295 |
| Telefonaktiebolaget LM Ericsson | | 1.13 | 2-8-2027 | EUR | 100,000 | 94,723 |
| Telefonica Deutschland Company | | 1.75 | 7-5-2025 | EUR | 200,000 | 206,684 |
| | | | | | | 408,702 |
| Materials: 1.37% | | | | | | |
| Chemicals: 1.08% | | | | | | |
| Arkema SA (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +1.57%) ʊ± | | 1.50 | 10-1-2025 | EUR | 100,000 | 94,080 |
| Solvay SA (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +3.92%) ʊ± | | 4.25 | 12-4-2023 | EUR | 100,000 | 107,398 |
| Syngenta Finance NV | | 3.38 | 4-16-2026 | EUR | 100,000 | 105,012 |
| | | | | | | 306,490 |
| Construction materials: 0.29% | | | | | | |
| Holcim Finance (Luxembourg) SA | | 0.50 | 4-23-2031 | EUR | 100,000 | 80,777 |
| Real estate: 2.05% | | | | | | |
| Diversified REITs: 0.25% | | | | | | |
| Castellum Helsinki | | 0.88 | 9-17-2029 | EUR | 100,000 | 71,001 |
| Industrial REITs: 0.29% | | | | | | |
| Tritax Big Box REIT plc | | 1.50 | 11-27-2033 | GBP | 100,000 | 82,641 |
| Real estate management & development: 1.51% | | | | | | |
| Akelius Residential Property AB (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +2.48%) ± | | 2.25 | 5-17-2081 | EUR | 100,000 | 87,136 |
| Grand City Properties SA (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +2.18%) ʊ± | | 1.50 | 3-11-2026 | EUR | 100,000 | 37,475 |
| Heimstaden Bostad AB (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +3.90%) ʊ± | | 3.63 | 10-14-2027 | EUR | 100,000 | 54,376 |
| LEG Immobilien SE | | 0.75 | 6-30-2031 | EUR | 100,000 | 77,050 |
| Prologis International Funding II SA | | 4.63 | 2-21-2035 | EUR | 100,000 | 100,978 |
| Vonovia SE | | 0.75 | 9-1-2032 | EUR | 100,000 | 69,464 |
| | | | | | | 426,479 |
The accompanying notes are an integral part of these financial statements.
Allspring Global Investment Grade Credit Fund | 15
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Utilities: 3.24% | | | | | | |
| Electric utilities: 2.00% | | | | | | |
| Electricite de France SA (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +2.86%) ʊ± | | 2.63% | 12-1-2027 | EUR | 200,000 | $ 171,893 |
| Electricite de France SA | | 5.50 | 10-17-2041 | GBP | 100,000 | 113,103 |
| Iberdrola International BV (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +2.32%) ʊ± | | 1.87 | 1-28-2026 | EUR | 200,000 | 194,786 |
| Reseau de Transport d'Electricite | | 1.88 | 10-23-2037 | EUR | 100,000 | 85,936 |
| | | | | | | 565,718 |
| Gas utilities: 0.59% | | | | | | |
| APT Pipelines Limited | | 2.00 | 7-15-2030 | EUR | 180,000 | 165,229 |
| Multi-utilities: 0.32% | | | | | | |
| Veolia Environnement SA (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year +2.08%) ʊ± | | 2.00 | 11-15-2027 | EUR | 100,000 | 89,705 |
| Water utilities: 0.33% | | | | | | |
| Thames Water Utilities Finance plc | | 0.88 | 1-31-2028 | EUR | 100,000 | 93,577 |
| Total Foreign corporate bonds and notes (Cost $8,704,840) | | | | | | 7,141,146 |
| Municipal obligations: 0.52% | | | | | | |
| New Jersey: 0.52% | | | | | | |
| Transportation revenue: 0.52% | | | | | | |
| New Jersey TTFA Transportation System Refunding Bond Series B | | 4.13 | 6-15-2042 | $ | 165,000 | 145,654 |
| Total Municipal obligations (Cost $165,000) | | | | | | 145,654 |
| U.S. Treasury securities: 1.55% | | | | | | |
| U.S. Treasury Bond | | 2.25 | 2-15-2052 | | 165,000 | 123,041 |
| U.S. Treasury Note | | 2.75 | 8-15-2032 | | 165,000 | 155,280 |
| U.S. Treasury Note | | 3.50 | 2-15-2033 | | 160,000 | 160,250 |
| Total U.S. Treasury securities (Cost $457,229) | | | | | | 438,571 |
| Yankee corporate bonds and notes: 16.64% | | | | | | |
| Communication services: 1.43% | | | | | | |
| Media: 0.57% | | | | | | |
| WPP Finance Limited 2010 | | 3.75 | 9-19-2024 | | 165,000 | 161,047 |
| Wireless telecommunication services: 0.86% | | | | | | |
| Telefonica Emisiones SAU | | 4.10 | 3-8-2027 | | 250,000 | 241,877 |
| Consumer discretionary: 0.52% | | | | | | |
| Broadline retail: 0.52% | | | | | | |
| Prosus NV 144A | | 3.83 | 2-8-2051 | | 230,000 | 147,451 |
| Consumer staples: 1.23% | | | | | | |
| Household products: 1.23% | | | | | | |
| Reckitt Benckiser Treasury Services plc 144A | | 2.75 | 6-26-2024 | | 355,000 | 345,761 |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Global Investment Grade Credit Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Energy: 0.32% | | | | | | |
| Oil, gas & consumable fuels: 0.32% | | | | | | |
| Equinor ASA | | 2.38% | 5-22-2030 | $ | 30,000 | $ 26,496 |
| Saudi Arabian Oil Company 144A | | 4.38 | 4-16-2049 | | 75,000 | 64,409 |
| | | | | | | 90,905 |
| Financials: 9.07% | | | | | | |
| Banks: 6.14% | | | | | | |
| Banco Santander SA | | 3.49 | 5-28-2030 | | 200,000 | 174,631 |
| Credit Suisse New York | | 3.63 | 9-9-2024 | | 330,000 | 314,002 |
| HSBC Holdings plc (U.S. SOFR +2.39%) ± | | 2.85 | 6-4-2031 | | 200,000 | 168,006 |
| HSBC Holdings plc | | 4.30 | 3-8-2026 | | 230,000 | 222,456 |
| National Australia Bank 144A | | 2.33 | 8-21-2030 | | 260,000 | 203,006 |
| Natwest Group plc | | 3.88 | 9-12-2023 | | 290,000 | 286,604 |
| Santander UK Group Holdings (U.S. SOFR +2.75%) ± | | 6.83 | 11-21-2026 | | 200,000 | 202,576 |
| Sumitomo Mitsui Financial Group | | 2.13 | 7-8-2030 | | 200,000 | 162,970 |
| | | | | | | 1,734,251 |
| Capital markets: 0.57% | | | | | | |
| UBS Group AG (1 Year Treasury Constant Maturity +1.10%) 144A± | | 2.75 | 2-11-2033 | | 200,000 | 160,256 |
| Consumer finance: 1.05% | | | | | | |
| Avolon Holdings Limited 144A | | 4.38 | 5-1-2026 | | 315,000 | 295,564 |
| Financial services: 0.44% | | | | | | |
| AerCap Ireland Capital | | 3.30 | 1-30-2032 | | 150,000 | 124,264 |
| Insurance: 0.87% | | | | | | |
| Athene Holding Limited | | 3.50 | 1-15-2031 | | 295,000 | 245,181 |
| Information technology: 1.72% | | | | | | |
| IT services: 0.59% | | | | | | |
| Computershare US Incorporated | | 1.13 | 10-7-2031 | | 200,000 | 165,884 |
| Semiconductors & semiconductor equipment: 1.13% | | | | | | |
| NXP BV | | 3.40 | 5-1-2030 | | 85,000 | 76,431 |
| NXP BV | | 3.88 | 6-18-2026 | | 250,000 | 241,432 |
| | | | | | | 317,863 |
| Materials: 1.24% | | | | | | |
| Chemicals: 0.65% | | | | | | |
| Westlake Chemical Corporation | | 1.63 | 7-17-2029 | | 200,000 | 182,319 |
| Construction materials: 0.59% | | | | | | |
| Aliaxis Finance SA | | 0.88 | 11-8-2028 | | 200,000 | 166,815 |
| Real estate: 0.85% | | | | | | |
| Diversified REITs: 0.85% | | | | | | |
| Scentre Group Trust 2 (5 Year Treasury Constant Maturity +4.69%) 144A± | | 5.13 | 9-24-2080 | | 285,000 | 240,552 |
The accompanying notes are an integral part of these financial statements.
Allspring Global Investment Grade Credit Fund | 17
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Utilities: 0.26% | | | | | | |
| Multi-utilities: 0.26% | | | | | | |
| Engie SA | | 1.00% | 10-26-2036 | $ | 100,000 | $ 74,516 |
| Total Yankee corporate bonds and notes (Cost $5,429,335) | | | | | | 4,694,506 |
| | | Yield | | Shares | |
| Short-term investments: 2.35% | | | | | | |
| Investment companies: 2.35% | | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 4.69 | | | 664,333 | 664,333 |
| Total Short-term investments (Cost $664,333) | | | | | | 664,333 |
| Total investments in securities (Cost $32,258,988) | 99.20% | | | | | 27,995,887 |
| Other assets and liabilities, net | 0.80 | | | | | 224,710 |
| Total net assets | 100.00% | | | | | $28,220,597 |
| 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. |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
| ʊ | Security is perpetual in nature and has no stated maturity date. The date shown reflects the next call date. |
| Abbreviations: |
| EUR | Euro |
| EURIBOR | Euro Interbank Offered Rate |
| GBP | Great British pound |
| LIBOR | London Interbank Offered Rate |
| REIT | Real estate investment trust |
| SOFR | Secured Overnight Financing Rate |
| TTFA | Transportation Trust Fund Authority |
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | Net
change in
unrealized
gains
(losses) | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | |
| Allspring Government Money Market Fund Select Class | $1,133,268 | $2,744,320 | $(3,213,255) | $0 | $0 | $664,333 | 664,333 | $10,649 |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Global Investment Grade Credit Fund
Portfolio of investments—March 31, 2023 (unaudited)
Forward foreign currency contracts
Currency to be
received | Currency to be
delivered | Counterparty | Settlement
date | Unrealized
gains | | Unrealized
losses |
| 6,586,476 USD | 6,170,000 EUR | State Street Bank & Trust Company | 4-26-2023 | $0 | | $ (113,112) |
| 110,435 EUR | 120,000 USD | State Street Bank & Trust Company | 4-26-2023 | 0 | | (86) |
| 1,250,564 USD | 1,025,000 GBP | State Street Bank & Trust Company | 4-26-2023 | 0 | | (14,454) |
| | | | | $0 | | $(127,652) |
The accompanying notes are an integral part of these financial statements.
Allspring Global Investment Grade Credit Fund | 19
Statement of assets and liabilities—March 31, 2023 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $31,594,655)
| $ 27,331,554 |
Investments in affiliated securities, at value (cost $664,333)
| 664,333 |
Foreign currency, at value (cost $5,727)
| 5,753 |
Receivable for interest
| 291,958 |
Prepaid expenses and other assets
| 91,637 |
Total assets
| 28,385,235 |
| Liabilities | |
Unrealized losses on forward foreign currency contracts
| 127,652 |
Payable for Fund shares redeemed
| 20,883 |
Professional fees payable
| 11,276 |
Trustees’ fees and expenses payable
| 3,406 |
Administration fees payable
| 768 |
Management fee payable
| 252 |
Accrued expenses and other liabilities
| 401 |
Total liabilities
| 164,638 |
Total net assets
| $28,220,597 |
| Net assets consist of | |
Paid-in capital
| $ 32,488,036 |
Total distributable loss
| (4,267,439) |
Total net assets
| $28,220,597 |
| Computation of net asset value and offering price per share | |
Net assets – Class A
| $ 26,502 |
Shares outstanding – Class A1
| 3,083 |
Net asset value per share – Class A
| $8.60 |
Maximum offering price per share – Class A2
| $9.01 |
Net assets – Class C
| $ 24,414 |
Shares outstanding – Class C1
| 2,845 |
Net asset value per share – Class C
| $8.58 |
Net assets – Class R6
| $ 28,146,502 |
Shares outstanding – Class R61
| 3,275,378 |
Net asset value per share – Class R6
| $8.59 |
Net assets – Institutional Class
| $ 23,179 |
Shares outstanding – Institutional Class1
| 2,697 |
Net asset value per share – Institutional Class
| $8.59 |
| 1 | The Fund has an unlimited number of authorized shares. |
| 2 | Maximum offering price is computed as 100/95.50 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Global Investment Grade Credit Fund
Statement of operations—six months ended March 31, 2023 (unaudited)
| | |
| Investment income | |
Interest
| $ 505,822 |
Income from affiliated securities
| 10,649 |
Total investment income
| 516,471 |
| Expenses | |
Management fee
| 56,894 |
| Administration fees | |
Class A
| 24 |
Class C
| 19 |
Class R6
| 4,256 |
Institutional Class
| 9 |
| Shareholder servicing fees | |
Class A
| 36 |
Class C
| 30 |
| Distribution fee | |
Class C
| 11 |
Custody and accounting fees
| 2,219 |
Professional fees
| 24,669 |
Registration fees
| 10,131 |
Shareholder report expenses
| 7,862 |
Trustees’ fees and expenses
| 10,973 |
Other fees and expenses
| 1,592 |
Total expenses
| 118,725 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level
| (54,563) |
Net expenses
| 64,162 |
Net investment income
| 452,309 |
| Realized and unrealized gains (losses) on investments | |
| Net realized losses on | |
Unaffiliated securities
| (333,292) |
Forward foreign currency contracts
| (1,035,750) |
Net realized losses on investments
| (1,369,042) |
| Net change in unrealized gains (losses) on | |
Unaffiliated securities
| 2,757,445 |
Forward foreign currency contracts
| (17,404) |
Net change in unrealized gains (losses) on investments
| 2,740,041 |
Net realized and unrealized gains (losses) on investments
| 1,370,999 |
Net increase in net assets resulting from operations
| $ 1,823,308 |
The accompanying notes are an integral part of these financial statements.
Allspring Global Investment Grade Credit Fund | 21
Statement of changes in net assets
| | | | | |
| | Six months ended
March 31, 2023
(unaudited) | Year ended
September 30, 2022 |
| Operations | | | | |
Net investment income
| | $ 452,309 | | $ 903,846 |
Net realized gains (losses) on investments
| | (1,369,042) | | 2,000,783 |
Net change in unrealized gains (losses) on investments
| | 2,740,041 | | (9,666,270) |
Net increase (decrease) in net assets resulting from operations
| | 1,823,308 | | (6,761,641) |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class A
| | (429) | | (185) 1 |
Class C
| | (361) | | (132) 1 |
Class R6
| | (497,350) | | (2,441,309) |
Institutional Class
| | (390) | | (1,586) |
Total distributions to shareholders
| | (498,530) | | (2,443,212) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class A
| 230 | 2,000 | 6,857 1 | 58,655 1 |
Class C
| 0 | 0 | 2,787 1 | 25,000 1 |
Class R6
| 44,485 | 363,875 | 186,222 | 1,837,385 |
| | | 365,875 | | 1,921,040 |
| Reinvestment of distributions | | | | |
Class A
| 50 | 429 | 22 1 | 185 1 |
Class C
| 42 | 361 | 16 1 | 132 1 |
Class R6
| 58,741 | 497,350 | 244,985 | 2,426,080 |
Institutional Class
| 46 | 390 | 151 | 1,484 |
| | | 498,530 | | 2,427,881 |
| Payment for shares redeemed | | | | |
Class A
| (4,076) | (33,299) | 0 1 | 0 1 |
Class R6
| (280,733) | (2,376,486) | (1,227,364) | (12,042,103) |
| | | (2,409,785) | | (12,042,103) |
Net decrease in net assets resulting from capital share transactions
| | (1,545,380) | | (7,693,182) |
Total decrease in net assets
| | (220,602) | | (16,898,035) |
| Net assets | | | | |
Beginning of period
| | 28,441,199 | | 45,339,234 |
End of period
| | $28,220,597 | | $ 28,441,199 |
| 1 | For the period from June 1, 2022 (commencement of class operations) to September 30, 2022 |
The accompanying notes are an integral part of these financial statements.
22 | Allspring Global Investment Grade Credit Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class A | Six months ended
March 31, 2023
(unaudited) | 2022 1 |
Net asset value, beginning of period
| $8.21 | $8.97 |
Net investment income
| 0.11 | 0.07 2 |
Net realized and unrealized gains (losses) on investments
| 0.41 | (0.76) |
Total from investment operations
| 0.52 | (0.69) |
| Distributions to shareholders from | | |
Net investment income
| (0.13) | (0.07) |
Net asset value, end of period
| $8.60 | $8.21 |
Total return3
| 6.37% | (7.76)% |
| Ratios to average net assets (annualized) | | |
Gross expenses
| 1.21% | 1.18% |
Net expenses
| 0.83% | 0.83% |
Net investment income
| 2.80% | 2.45% |
| Supplemental data | | |
Portfolio turnover rate
| 8% | 21% |
Net assets, end of period (000s omitted)
| $27 | $56 |
| 1 | For the period from June 1, 2022 (commencement of class operations) to September 30, 2022 |
| 2 | Calculated based upon average shares outstanding |
| 3 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Global Investment Grade Credit Fund | 23
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class C | Six months ended
March 31, 2023
(unaudited) | 2022 1 |
Net asset value, beginning of period
| $8.21 | $8.97 |
Net investment income
| 0.10 | 0.05 2 |
Net realized and unrealized gains (losses) on investments
| 0.40 | (0.76) |
Total from investment operations
| 0.50 | (0.71) |
| Distributions to shareholders from | | |
Net investment income
| (0.13) | (0.05) |
Net asset value, end of period
| $8.58 | $8.21 |
Total return3
| 6.10% | (7.96)% |
| Ratios to average net assets (annualized) | | |
Gross expenses
| 1.31% | 1.80% |
Net expenses
| 1.25% | 1.51% |
Net investment income
| 2.39% | 1.75% |
| Supplemental data | | |
Portfolio turnover rate
| 8% | 21% |
Net assets, end of period (000s omitted)
| $24 | $23 |
| 1 | For the period from June 1, 2022 (commencement of class operations) to September 30, 2022 |
| 2 | Calculated based upon average shares outstanding |
| 3 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
24 | Allspring Global Investment Grade Credit Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class R6 | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 1 |
Net asset value, beginning of period
| $8.21 | $10.66 | $10.91 | $10.75 | $10.00 |
Net investment income
| 0.13 | 0.24 2 | 0.24 2 | 0.24 2 | 0.13 |
Net realized and unrealized gains (losses) on investments
| 0.40 | (2.06) | 0.07 | 0.39 | 0.73 |
Total from investment operations
| 0.53 | (1.82) | 0.31 | 0.63 | 0.86 |
| Distributions to shareholders from | | | | | |
Net investment income
| (0.15) | (0.23) | (0.31) | (0.34) | (0.11) |
Net realized gains
| 0.00 | (0.40) | (0.25) | (0.13) | 0.00 |
Total distributions to shareholders
| (0.15) | (0.63) | (0.56) | (0.47) | (0.11) |
Net asset value, end of period
| $8.59 | $8.21 | $10.66 | $10.91 | $10.75 |
Total return3
| 6.47% | (17.97)% | 2.86% | 6.10% | 8.64% |
| Ratios to average net assets (annualized) | | | | | |
Gross expenses
| 0.83% | 0.76% | 0.68% | 0.77% | 0.86% |
Net expenses
| 0.45% | 0.45% | 0.45% | 0.45% | 0.45% |
Net investment income
| 3.18% | 2.48% | 2.22% | 2.29% | 2.34% |
| Supplemental data | | | | | |
Portfolio turnover rate
| 8% | 21% | 28% | 79% | 36% |
Net assets, end of period (000s omitted)
| $28,147 | $28,340 | $45,313 | $76,847 | $96,835 |
| 1 | For the period from February 28, 2019 (commencement of class operations) to September 30, 2019 |
| 2 | Calculated based upon average shares outstanding |
| 3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Global Investment Grade Credit Fund | 25
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Institutional Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 1 |
Net asset value, beginning of period
| $8.21 | $10.66 | $10.91 | $10.75 | $10.00 |
Net investment income
| 0.13 | 0.23 2 | 0.23 | 0.24 | 0.14 |
Net realized and unrealized gains (losses) on investments
| 0.40 | (2.05) | 0.07 | 0.38 | 0.72 |
Total from investment operations
| 0.53 | (1.82) | 0.30 | 0.62 | 0.86 |
| Distributions to shareholders from | | | | | |
Net investment income
| (0.15) | (0.23) | (0.30) | (0.33) | (0.11) |
Net realized gains
| 0.00 | (0.40) | (0.25) | (0.13) | 0.00 |
Total distributions to shareholders
| (0.15) | (0.63) | (0.55) | (0.46) | (0.11) |
Net asset value, end of period
| $8.59 | $8.21 | $10.66 | $10.91 | $10.75 |
Total return3
| 6.44% | (18.01)% | 2.81% | 6.04% | 8.64% |
| Ratios to average net assets (annualized) | | | | | |
Gross expenses
| 0.88% | 0.81% | 0.73% | 0.83% | 0.97% |
Net expenses
| 0.50% | 0.50% | 0.50% | 0.50% | 0.50% |
Net investment income
| 3.14% | 2.47% | 2.18% | 2.24% | 2.34% |
| Supplemental data | | | | | |
Portfolio turnover rate
| 8% | 21% | 28% | 79% | 36% |
Net assets, end of period (000s omitted)
| $23 | $22 | $27 | $27 | $27 |
| 1 | For the period from February 28, 2019 (commencement of class operations) to September 30, 2019 |
| 2 | Calculated based upon average shares outstanding |
| 3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
26 | Allspring Global Investment Grade Credit Fund
Notes to financial statements (unaudited)
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 Global Investment Grade Credit Fund (the "Fund") which is a diversified series of the Trust.
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
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
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.
The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee established by Allspring Funds Management, LLC ("Allspring Funds Management").
Forward foreign currency contracts are recorded at the forward rate provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee 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. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.
Forward foreign currency contracts
A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between
Allspring Global Investment Grade Credit Fund | 27
Notes to financial statements (unaudited)
currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on forward foreign currency contracts. The Fund is subject to foreign currency risk and may be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund's maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the counterparty.
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. Paydown gains and losses are included in interest income.
Distributions to shareholders
Distributions to shareholders are recorded on the ex-dividend date and paid from net investment income monthly and any net realized gains are 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, as applicable, 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 March 31, 2023, the aggregate cost of all investments for federal income tax purposes was $30,695,582 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $ 1,672,394 |
| Gross unrealized losses | (4,499,741) |
| Net unrealized losses | $(2,827,347) |
As of September 30, 2022, the Fund had current year deferred post-October capital losses consisting of $119,280 in short-term capital losses and $64,770 in long-term capital gains which was recognized in the first day of the current fiscal year.
Class allocations
The separate classes of shares offered by the Fund differ principally in applicable sales charges, administration fees, shareholder servicing fees, and distribution 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.
28 | Allspring Global Investment Grade Credit Fund
Notes to financial statements (unaudited)
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 March 31, 2023:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Asset-backed securities | $ 0 | $ 506,744 | $0 | $ 506,744 |
| Corporate bonds and notes | 0 | 14,404,933 | 0 | 14,404,933 |
| Foreign corporate bonds and notes | 0 | 7,141,146 | 0 | 7,141,146 |
| Municipal obligations | 0 | 145,654 | 0 | 145,654 |
| U.S. Treasury securities | 438,571 | 0 | 0 | 438,571 |
| Yankee corporate bonds and notes | 0 | 4,694,506 | 0 | 4,694,506 |
| Short-term investments | | | | |
| Investment companies | 664,333 | 0 | 0 | 664,333 |
| Total assets | $1,102,904 | $26,892,983 | $0 | $27,995,887 |
| Liabilities | | | | |
| Forward foreign currency contracts | $ 0 | $ 127,652 | $0 | $ 127,652 |
| Total liabilities | $ 0 | $ 127,652 | $0 | $ 127,652 |
Forward foreign currency contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the table following the Portfolio of Investments. All other assets and liabilities are reported at their market value at measurement date.
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended March 31, 2023, 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 subadvisers 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:
Allspring Global Investment Grade Credit Fund | 29
Notes to financial statements (unaudited)
| Average daily net assets | Management fee |
| First $500 million | 0.400% |
| Next $500 million | 0.375 |
| Next $2 billion | 0.350 |
| Next $2 billion | 0.325 |
| Next $5 billion | 0.290 |
| Over $10 billion | 0.280 |
For the six months ended March 31, 2023, the management fee was equivalent to an annual rate of 0.40% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of subadvisers to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited, each an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC,are subadvisers to the Fund and are each entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.10% and declining to 0.05% 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 | 0.16% |
| Class C | 0.16 |
| Class R6 | 0.03 |
| Institutional Class | 0.08 |
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 January 31, 2024 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. As of March 31, 2023, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class A | 0.83% |
| Class C | 1.58 |
| Class R6 | 0.45 |
| Institutional Class | 0.50 |
30 | Allspring Global Investment Grade Credit Fund
Notes to financial statements (unaudited)
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. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six months ended March 31, 2023 were as follows:
| Purchases at cost | | Sales proceeds |
U.S.
government | Non-U.S.
government | | U.S.
government | Non-U.S.
government |
| $160,481 | $2,017,932 | | $2,350,969 | $1,224,856 |
6. DERIVATIVE TRANSACTIONS
During the six months ended March 31, 2023, the Fund entered into forward foreign currency contracts for economic hedging purposes. The Fund had average contract amounts of $155,720 in forward foreign currency contracts to buy and $8,661,605 in forward foreign currency contracts to sell during the six months ended March 31, 2023.
The fair value, realized gains or losses and change in unrealized gains or losses, if any, on derivative instruments are reflected in the corresponding financial statement captions.
For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by counterparty, including any collateral exposure, for OTC derivatives is as follows:
| Counterparty | Gross amount
of liabilities in the
Statement of
Assets and
Liabilities | Amounts
subject to
netting
agreements | Collateral
pledged | Net amount
of liabilities |
| State Steet Bank & Trust Company | $127,652 | $0 | $0 | $127,652 |
7. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended March 31, 2023, there were no borrowings by the Fund under the agreement.
8. CONCENTRATION RISK
A fund with a concentration of ownership may be more affected by the investment activity of those shareholders than would be a fund that does not have any ownership concentration. As of March 31, 2023, Allspring Funds Management or one of its affiliates owned 93% of Class A, 100% of Class C, and 100% of the Institutional Class of the Fund.
Allspring Global Investment Grade Credit Fund | 31
Notes to financial statements (unaudited)
9. 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.
32 | Allspring Global Investment Grade Credit Fund
Other information (unaudited)
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.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
Allspring Global Investment Grade Credit Fund | 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 127 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 1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203. 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 Foundation (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. Member of the Advisory Board of CEF of East Central Florida. 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 | Distinguished Visiting Fellow at the Hoover Institution since 2022. 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 | Allspring Global Investment Grade Credit Fund
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, from 2007-2022. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. | 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 | Retired. Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer, Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Allspring Global Investment Grade Credit Fund | 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 and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, from 2019 to 2022 and 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. |
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 from 2005 to 2010. |
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) | Chief Legal Officer, since 2022; 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 | Allspring Global Investment Grade Credit Fund
Allspring Funds
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.
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.
© 2023 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-04042023-yor2hoon 05-23
SAR4337 03-23
Semi-Annual Report
March 31, 2023
Allspring
C&B Mid Cap Value Fund
The views expressed and any forward-looking statements are as of March 31, 2023, 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.
Allspring C&B Mid Cap Value Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring C&B Mid Cap Value Fund for the six-month period that ended March 31, 2023. Globally, stocks and bonds rebounded strongly despite ongoing volatility. While navigating persistently high inflation and the impact of ongoing aggressive central bank rate hikes, markets rallied on signs of declining inflation, anticipation of an end to the central bank monetary tightening cycle, and the stimulating impact of China removing its strict COVID-19 lockdowns in December. For the six-month period, domestic U.S. and global stocks and bonds had strong results. After suffering deep and broad losses through 2022, recent fixed income performance benefited from a base of higher yields that can now generate higher income.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 15.62%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 22.13%, while the MSCI EM Index (Net) (USD)3 returned 14.04%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 4.89%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned 10.07%, the Bloomberg Municipal Bond Index6 gained 7.00%, and the ICE BofA U.S. High Yield Index7 returned 7.89%.
Despite high inflation and central bank rate hikes, markets rally.
Equities had a reprieve in October. Value stocks and small caps fared best. Globally, developed markets outpaced emerging market equities, which were hurt by weakness among Chinese stocks. Central banks continued to try to curtail high inflation with aggressive interest rate hikes. Geopolitical risks persisted, including the ongoing Russia-Ukraine war and economic, financial market, and political turmoil in the U.K. Concerns over Europe’s energy crisis eased thanks to unseasonably warm weather and plentiful gas on hand. The U.S. labor market continued its resilience against rising prices as unemployment remained near a record low.
Stocks and bonds rallied in November. Economic news was encouraging, driven by U.S. labor market strength. Although central banks kept raising rates, hopes rose for an easing in the pace of rate hikes and a possible end to central bank monetary tightening in 2023. Although inflation remained at record highs in the eurozone, we began to see signs of a possible decline in inflationary pressures as U.S. inflation moderated, with a 7.1% annual price rise in November and a monthly price increase of just 0.1%. China’s economic data remained weak, reflecting its zero-COVID-19 policy.
| 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 2023. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring C&B Mid Cap Value Fund
Letter to shareholders (unaudited)
Financial markets cooled in December, with U.S. equities posting negative overall results in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever with flat overall monthly returns as markets weighed the hopes for an end to the monetary tightening cycle with the reality that central banks had not completed their jobs yet. U.S. Consumer Price Index (CPI)1 data showed a strong consistent trend downward, which brought down the 12-month CPI to 6.5% in December from 9.1% in June. Other countries and regions reported still-high but declining inflation rates as the year winded down.
The year 2023 began with a rally across global equities and fixed income securities. Investor optimism rose in response to data indicating declining inflation rates and the reopening of China’s economy with the abrupt end to its zero-COVID-19 policy. The U.S. reported surprisingly strong job gains––employers added more than 500,000 jobs––and unemployment fell to 3.4%, the lowest level since 1969. Meanwhile, wage growth, seen as a potential contributor to ongoing high inflation, continued to moderate. All eyes remained fixed on the Federal Reserve (Fed) and on how many more rate hikes remain in this tightening cycle. The 0.25% federal funds rate hike announced in January was the Fed’s smallest rate increase since March 2022.
Financial markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks will likely continue their monetary tightening cycle for longer than markets had priced in. In this environment—where strong economic data is seen as bad news—the resilient U.S. labor market was seen as a negative while the inflation rate has not been falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the Bank of England and the European Central Bank both raised rates by 0.50%. At this stage in the economic cycle, the overriding question remained: “What will central banks do?” In February, the answer appeared to be: “Move rates higher for longer.”
The collapse of Silicon Valley Bank in March, the second-largest banking failure in U.S. history, led to a classic bank run that spread to Europe, where Switzerland’s Credit Suisse was taken over by its rival, UBS. The sudden banking industry uncertainty led some clients of regional banks to transfer deposits to a handful of U.S. banking giants while bank shareholders sold stock. The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. The U.S. labor market remained resilient. The euro-area composite Purchasing Managers’ Index2 rose to 53.70, indicating expansion, for March. And China’s economy continued to rebound after the removal of its COVID-19 lockdown. Inflation rates in the U.S., the U.K., and Europe all remained higher than central bank targets, leading to additional rate hikes in March.
“ The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China.”
| 1 | The U.S. 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. |
| 2 | The Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. You cannot invest directly in an index. |
Allspring C&B Mid Cap Value Fund | 3
Letter to shareholders (unaudited)
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.
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
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.
4 | Allspring C&B Mid Cap Value Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks maximum long-term return (current income and capital appreciation), consistent with minimizing risk to principal. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Cooke & Bieler, L.P. |
| Portfolio managers | Andrew B. Armstrong, CFA, Wesley Lim, CFA, Steve Lyons, CFA, Michael M. Meyer, CFA, Edward W. O'Connor, CFA, R. James O'Neil, CFA, Mehul Trivedi, CFA, William Weber, CFA |
| Average annual total returns (%) as of March 31, 2023 |
| | | 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 (CBMAX) | 7-26-2004 | -12.58 | 4.38 | 7.80 | | -7.24 | 5.63 | 8.44 | | 1.25 | 1.25 |
| Class C (CBMCX) | 7-26-2004 | -8.96 | 4.88 | 7.81 | | -7.96 | 4.88 | 7.81 | | 2.00 | 2.00 |
| Class R6 (CBMYX)3 | 7-31-2018 | – | – | – | | -6.83 | 6.10 | 8.85 | | 0.82 | 0.80 |
| Administrator Class (CBMIX) | 7-26-2004 | – | – | – | | -7.16 | 5.73 | 8.53 | | 1.17 | 1.15 |
| Institutional Class (CBMSX) | 7-26-2004 | – | – | – | | -6.93 | 6.00 | 8.80 | | 0.92 | 0.90 |
| Russell Midcap® Value Index4 | – | – | – | – | | -9.22 | 6.54 | 8.80 | | – | – |
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 return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. 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.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
For Class A shares, the maximum front-end sales charge is 5.75%. 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. Class R6, Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
| 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 January 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.25% for Class A, 2.00% for Class C, 0.80% for Class R6, 1.15% for Administrator Class, and 0.90% for Institutional 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. 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 Class R6 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 Class R6 shares would be higher. |
| 4 | The Russell Midcap® Value Index measures the performance of those Russell Midcap companies with lower price/book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000® Value Index. You cannot invest directly in an index |
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Consult the Fund’s prospectus for additional information on these and other risks.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
6 | Allspring C&B Mid Cap Value Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of March 31, 20231 |
| AerCap Holdings NV | 3.65 |
| Omnicom Group Incorporated | 3.32 |
| State Street Corporation | 3.12 |
| Open Text Corporation | 3.06 |
| Arrow Electronics Incorporated | 3.02 |
| TE Connectivity Limited | 2.81 |
| Gentex Corporation | 2.75 |
| Gildan Activewear Incorporated | 2.75 |
| Globe Life Incorporated | 2.49 |
| Integra LifeSciences Holdings Corporation | 2.48 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Sector allocation as of March 31, 20231 |
| 1 | Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring C&B Mid Cap Value Fund | 7
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 October 1, 2022 to March 31, 2023.
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 sales charges (loads) and 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
10-1-2022 | Ending
account value
3-31-2023 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class A | | | | |
| Actual | $1,000.00 | $1,174.39 | $ 6.78 | 1.25% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,018.70 | $ 6.29 | 1.25% |
| Class C | | | | |
| Actual | $1,000.00 | $1,170.05 | $10.82 | 2.00% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,014.96 | $10.05 | 2.00% |
| Class R6 | | | | |
| Actual | $1,000.00 | $1,176.82 | $ 4.34 | 0.80% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.94 | $ 4.03 | 0.80% |
| Administrator Class | | | | |
| Actual | $1,000.00 | $1,174.85 | $ 6.24 | 1.15% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.20 | $ 5.79 | 1.15% |
| Institutional Class | | | | |
| Actual | $1,000.00 | $1,176.29 | $ 4.88 | 0.90% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.44 | $ 4.53 | 0.90% |
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 182 divided by 365 (to reflect the one-half-year period).
8 | Allspring C&B Mid Cap Value Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Common stocks: 98.53% | | | | | |
| Communication services: 5.02% | | | | | |
| Entertainment: 1.70% | | | | | |
| Activision Blizzard Incorporated | | | | 64,650 | $ 5,533,394 |
| Media: 3.32% | | | | | |
| Omnicom Group Incorporated | | | | 114,250 | 10,778,345 |
| Consumer discretionary: 16.99% | | | | | |
| Automobile components: 2.75% | | | | | |
| Gentex Corporation | | | | 319,068 | 8,943,476 |
| Distributors: 1.01% | | | | | |
| LKQ Corporation | | | | 57,690 | 3,274,484 |
| Household durables: 3.71% | | | | | |
| Helen of Troy Limited † | | | | 79,009 | 7,519,287 |
| Whirlpool Corporation | | | | 34,350 | 4,534,887 |
| | | | | | 12,054,174 |
| Leisure products: 2.09% | | | | | |
| Hasbro Incorporated | | | | 126,270 | 6,779,436 |
| Specialty retail: 3.65% | | | | | |
| American Eagle Outfitters Incorporated | | | | 394,530 | 5,302,483 |
| CarMax Incorporated † | | | | 102,150 | 6,566,202 |
| | | | | | 11,868,685 |
| Textiles, apparel & luxury goods: 3.78% | | | | | |
| Gildan Activewear Incorporated | | | | 269,160 | 8,933,420 |
| HanesBrands Incorporated | | | | 632,158 | 3,325,151 |
| | | | | | 12,258,571 |
| Consumer staples: 1.24% | | | | | |
| Food products: 1.24% | | | | | |
| Ingredion Incorporated | | | | 39,520 | 4,020,370 |
| Energy: 2.14% | | | | | |
| Oil, gas & consumable fuels: 2.14% | | | | | |
| The Williams Companies Incorporated | | | | 233,200 | 6,963,352 |
| Financials: 25.21% | | | | | |
| Banks: 2.64% | | | | | |
| Glacier Bancorp Incorporated | | | | 78,620 | 3,302,826 |
| M&T Bank Corporation | | | | 43,960 | 5,256,297 |
| | | | | | 8,559,123 |
| Capital markets: 7.11% | | | | | |
| Brookfield Asset Management Incorporated Class A | | | | 222,180 | 7,269,730 |
| Cboe Global Markets Incorporated | | | | 42,400 | 5,691,776 |
| State Street Corporation | | | | 133,850 | 10,131,107 |
| | | | | | 23,092,613 |
The accompanying notes are an integral part of these financial statements.
Allspring C&B Mid Cap Value Fund | 9
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Consumer finance: 2.58% | | | | | |
| Discover Financial Services | | | | 48,590 | $ 4,802,636 |
| FirstCash Holdings Incorporated | | | | 37,415 | 3,568,269 |
| | | | | | 8,370,905 |
| Financial services: 2.32% | | | | | |
| Essent Group Limited | | | | 188,070 | 7,532,204 |
| Insurance: 10.56% | | | | | |
| Arch Capital Group Limited † | | | | 77,825 | 5,281,983 |
| Fidelity National Financial Incorporated | | | | 215,677 | 7,533,598 |
| Globe Life Incorporated | | | | 73,600 | 8,097,472 |
| Markel Corporation † | | | | 3,800 | 4,854,158 |
| RenaissanceRe Holdings Limited | | | | 16,151 | 3,235,691 |
| The Allstate Corporation | | | | 47,900 | 5,307,799 |
| | | | | | 34,310,701 |
| Health care: 12.85% | | | | | |
| Health care equipment & supplies: 9.12% | | | | | |
| Baxter International Incorporated | | | | 173,450 | 7,035,130 |
| Dentsply Sirona Incorporated | | | | 203,150 | 7,979,732 |
| Integra LifeSciences Holdings Corporation † | | | | 140,263 | 8,052,499 |
| Teleflex Incorporated | | | | 25,930 | 6,568,328 |
| | | | | | 29,635,689 |
| Health care providers & services: 1.71% | | | | | |
| Laboratory Corporation of America Holdings | | | | 24,240 | 5,561,141 |
| Pharmaceuticals: 2.02% | | | | | |
| Perrigo Company plc | | | | 182,740 | 6,554,884 |
| Industrials: 20.92% | | | | | |
| Aerospace & defense: 4.35% | | | | | |
| BWX Technologies Incorporated | | | | 118,430 | 7,465,827 |
| Woodward Incorporated | | | | 68,287 | 6,649,105 |
| | | | | | 14,114,932 |
| Building products: 1.52% | | | | | |
| Armstrong World Industries Incorporated | | | | 69,440 | 4,946,906 |
| Commercial services & supplies: 1.93% | | | | | |
| Ritchie Bros. Auctioneers Incorporated | | | | 111,418 | 6,271,719 |
| Electrical equipment: 3.88% | | | | | |
| Acuity Brands Incorporated | | | | 31,620 | 5,777,923 |
| AMETEK Incorporated | | | | 46,860 | 6,810,164 |
| | | | | | 12,588,087 |
| Machinery: 5.59% | | | | | |
| ESAB Corporation | | | | 125,980 | 7,441,639 |
| Gates Industrial Corporation plc † | | | | 352,050 | 4,889,975 |
| Stanley Black & Decker Incorporated | | | | 72,440 | 5,837,215 |
| | | | | | 18,168,829 |
| Trading companies & distributors: 3.65% | | | | | |
| AerCap Holdings NV † | | | | 210,600 | 11,842,038 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring C&B Mid Cap Value Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Information technology: 11.00% | | | | | |
| Electronic equipment, instruments & components: 5.84% | | | | | |
| Arrow Electronics Incorporated | | | | 78,666 | $ 9,823,023 |
| TE Connectivity Limited | | | | 69,575 | 9,124,761 |
| | | | | | 18,947,784 |
| Semiconductors & semiconductor equipment: 2.10% | | | | | |
| MKS Instruments Incorporated | | | | 76,983 | 6,822,233 |
| Software: 3.06% | | | | | |
| Open Text Corporation | | | | 257,930 | 9,943,202 |
| Real estate: 1.64% | | | | | |
| Real estate management & development: 1.64% | | | | | |
| CBRE Group Incorporated Class A † | | | | 73,340 | 5,339,885 |
| Utilities: 1.52% | | | | | |
| Gas utilities: 1.52% | | | | | |
| Atmos Energy Corporation | | | | 44,000 | 4,943,840 |
| Total Common stocks (Cost $274,103,210) | | | | | 320,021,002 |
| | | Yield | | | |
| Short-term investments: 1.38% | | | | | |
| Investment companies: 1.38% | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 4.69% | | 4,484,001 | 4,484,001 |
| Total Short-term investments (Cost $4,484,001) | | | | | 4,484,001 |
| Total investments in securities (Cost $278,587,211) | 99.91% | | | | 324,505,003 |
| Other assets and liabilities, net | 0.09 | | | | 300,639 |
| Total net assets | 100.00% | | | | $324,805,642 |
| † | Non-income-earning security |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
The accompanying notes are an integral part of these financial statements.
Allspring C&B Mid Cap Value Fund | 11
Portfolio of investments—March 31, 2023 (unaudited)
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | $7,211,111 | $75,674,631 | $(78,401,741) | $0 | | $0 | | $ 4,484,001 | 4,484,001 | $ 161,154 |
Investments in affiliates no longer
held at end of period | | | | | | | | | | |
| Securities Lending Cash Investments LLC | 5,778,950 | 1,979,250 | (7,758,200) | 0 | | 0 | | 0 | 0 | 5,060 # |
| | | | | $0 | | $0 | | $4,484,001 | | $166,214 |
| # | Amount shown represents income before fees and rebates. |
The accompanying notes are an integral part of these financial statements.
12 | Allspring C&B Mid Cap Value Fund
Statement of assets and liabilities—March 31, 2023 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $274,103,210)
| $ 320,021,002 |
Investments in affiliated securities, at value (cost $4,484,001)
| 4,484,001 |
Cash
| 67,337 |
Receivable for investments sold
| 866,382 |
Receivable for dividends
| 420,620 |
Receivable for Fund shares sold
| 209,812 |
Prepaid expenses and other assets
| 79,483 |
Total assets
| 326,148,637 |
| Liabilities | |
Payable for Fund shares redeemed
| 1,058,934 |
Management fee payable
| 209,401 |
Administration fees payable
| 45,136 |
Trustees’ fees and expenses payable
| 1,133 |
Distribution fee payable
| 995 |
Accrued expenses and other liabilities
| 27,396 |
Total liabilities
| 1,342,995 |
Total net assets
| $324,805,642 |
| Net assets consist of | |
Paid-in capital
| $ 281,063,883 |
Total distributable earnings
| 43,741,759 |
Total net assets
| $324,805,642 |
| Computation of net asset value and offering price per share | |
Net assets – Class A
| $ 100,608,532 |
Shares outstanding – Class A1
| 2,685,973 |
Net asset value per share – Class A
| $37.46 |
Maximum offering price per share – Class A2
| $39.75 |
Net assets – Class C
| $ 1,492,585 |
Shares outstanding – Class C1
| 44,086 |
Net asset value per share – Class C
| $33.86 |
Net assets – Class R6
| $ 18,636,692 |
Shares outstanding – Class R61
| 492,042 |
Net asset value per share – Class R6
| $37.88 |
Net assets – Administrator Class
| $ 13,634,343 |
Shares outstanding – Administrator Class1
| 358,438 |
Net asset value per share – Administrator Class
| $38.04 |
Net assets – Institutional Class
| $ 190,433,490 |
Shares outstanding – Institutional Class1
| 5,027,708 |
Net asset value per share – Institutional Class
| $37.88 |
| 1 | The Fund has an unlimited number of authorized shares. |
| 2 | Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial statements.
Allspring C&B Mid Cap Value Fund | 13
Statement of operations—six months ended March 31, 2023 (unaudited)
| | |
| Investment income | |
Dividends (net of foreign withholdings taxes of $48,568)
| $ 3,201,646 |
Income from affiliated securities
| 161,663 |
Total investment income
| 3,363,309 |
| Expenses | |
Management fee
| 1,418,726 |
| Administration fees | |
Class A
| 109,380 |
Class C
| 1,751 |
Class R6
| 2,779 |
Administrator Class
| 8,607 |
Institutional Class
| 156,466 |
| Shareholder servicing fees | |
Class A
| 130,213 |
Class C
| 2,079 |
Administrator Class
| 16,549 |
| Distribution fee | |
Class C
| 6,236 |
Custody and accounting fees
| 16,436 |
Professional fees
| 27,857 |
Registration fees
| 42,604 |
Shareholder report expenses
| 38,791 |
Trustees’ fees and expenses
| 11,087 |
Other fees and expenses
| 6,154 |
Total expenses
| 1,995,715 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level
| (60,354) |
Class A
| (5,223) |
Class R6
| (2,779) |
Administrator Class
| (1,992) |
Institutional Class
| (24,138) |
Net expenses
| 1,901,229 |
Net investment income
| 1,462,080 |
| Realized and unrealized gains (losses) on investments | |
Net realized gains on investments
| 14,688,340 |
Net change in unrealized gains (losses) on investments
| 47,932,686 |
Net realized and unrealized gains (losses) on investments
| 62,621,026 |
Net increase in net assets resulting from operations
| $64,083,106 |
The accompanying notes are an integral part of these financial statements.
14 | Allspring C&B Mid Cap Value Fund
Statement of changes in net assets
| | | | | |
| | Six months ended
March 31, 2023
(unaudited) | Year ended
September 30, 2022 |
| Operations | | | | |
Net investment income
| | $ 1,462,080 | | $ 3,606,345 |
Net realized gains on investments
| | 14,688,340 | | 32,049,456 |
Net change in unrealized gains (losses) on investments
| | 47,932,686 | | (148,146,298) |
Net increase (decrease) in net assets resulting from operations
| | 64,083,106 | | (112,490,497) |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class A
| | (10,397,117) | | (12,663,809) |
Class C
| | (178,702) | | (414,701) |
Class R6
| | (1,863,610) | | (2,090,622) |
Administrator Class
| | (1,228,694) | | (2,175,381) |
Institutional Class
| | (23,651,466) | | (48,137,552) |
Total distributions to shareholders
| | (37,319,589) | | (65,482,065) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class A
| 52,115 | 1,987,620 | 102,705 | 4,585,571 |
Class C
| 182 | 5,900 | 2,317 | 102,968 |
Class R6
| 34,436 | 1,320,851 | 71,915 | 3,210,874 |
Administrator Class
| 61,232 | 2,412,935 | 87,164 | 3,823,768 |
Institutional Class
| 669,343 | 25,559,387 | 3,568,693 | 162,182,510 |
| | | 31,286,693 | | 173,905,691 |
| Reinvestment of distributions | | | | |
Class A
| 277,684 | 10,064,909 | 268,854 | 12,251,625 |
Class C
| 5,478 | 178,702 | 9,955 | 414,701 |
Class R6
| 42,681 | 1,567,994 | 35,855 | 1,655,325 |
Administrator Class
| 33,172 | 1,221,127 | 46,880 | 2,165,321 |
Institutional Class
| 562,292 | 20,634,386 | 1,041,926 | 48,045,059 |
| | | 33,667,118 | | 64,532,031 |
| Payment for shares redeemed | | | | |
Class A
| (361,605) | (13,653,018) | (515,897) | (22,656,685) |
Class C
| (16,072) | (555,664) | (52,619) | (2,205,246) |
Class R6
| (61,408) | (2,415,366) | (77,649) | (3,416,512) |
Administrator Class
| (99,332) | (3,814,976) | (293,190) | (13,583,368) |
Institutional Class
| (4,430,745) | (168,649,876) | (6,893,246) | (300,962,171) |
| | | (189,088,900) | | (342,823,982) |
Net decrease in net assets resulting from capital share transactions
| | (124,135,089) | | (104,386,260) |
Total decrease in net assets
| | (97,371,572) | | (282,358,822) |
| Net assets | | | | |
Beginning of period
| | 422,177,214 | | 704,536,036 |
End of period
| | $ 324,805,642 | | $ 422,177,214 |
The accompanying notes are an integral part of these financial statements.
Allspring C&B Mid Cap Value Fund | 15
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class A | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $35.36 | $48.43 | $34.40 | $39.67 | $37.88 | $35.07 |
Net investment income
| 0.09 | 0.14 | 0.03 | 0.10 1 | 0.16 | 0.06 |
Net realized and unrealized gains (losses) on investments
| 5.92 | (8.72) | 14.08 | (4.21) | 1.69 | 2.75 |
Total from investment operations
| 6.01 | (8.58) | 14.11 | (4.11) | 1.85 | 2.81 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.29) | (0.04) | (0.08) | (0.15) | (0.06) | (0.00) 2 |
Net realized gains
| (3.62) | (4.45) | 0.00 | (1.01) | 0.00 | 0.00 |
Total distributions to shareholders
| (3.91) | (4.49) | (0.08) | (1.16) | (0.06) | (0.00) 2 |
Net asset value, end of period
| $37.46 | $35.36 | $48.43 | $34.40 | $39.67 | $37.88 |
Total return3
| 17.44% | (19.80)% | 41.04% | (10.81)% | 4.91% | 8.02% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.29% | 1.25% | 1.25% | 1.27% | 1.29% | 1.29% |
Net expenses
| 1.25% | 1.24% | 1.24% | 1.25% | 1.25% | 1.25% |
Net investment income
| 0.55% | 0.31% | 0.05% | 0.29% | 0.43% | 0.16% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 15% | 40% | 47% | 45% | 42% | 39% |
Net assets, end of period (000s omitted)
| $100,609 | $96,106 | $138,604 | $104,922 | $106,975 | $111,354 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Amount is less than $0.005. |
| 3 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring C&B Mid Cap Value Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class C | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $32.15 | $44.70 | $31.94 | $36.98 | $35.51 | $33.12 |
Net investment loss
| (0.04) 1 | (0.18) 1 | (0.30) 1 | (0.16) 1 | (0.12) 1 | (0.20) 1 |
Net realized and unrealized gains (losses) on investments
| 5.37 | (7.92) | 13.06 | (3.87) | 1.59 | 2.59 |
Total from investment operations
| 5.33 | (8.10) | 12.76 | (4.03) | 1.47 | 2.39 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| (3.62) | (4.45) | 0.00 | (1.01) | 0.00 | 0.00 |
Net asset value, end of period
| $33.86 | $32.15 | $44.70 | $31.94 | $36.98 | $35.51 |
Total return2
| 17.01% | (20.42)% | 39.98% | (11.32)% | 4.14% | 7.22% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 2.03% | 2.00% | 1.99% | 2.01% | 2.04% | 2.04% |
Net expenses
| 2.00% | 1.99% | 1.99% | 2.00% | 2.00% | 2.00% |
Net investment loss
| (0.21)% | (0.45)% | (0.72)% | (0.47)% | (0.36)% | (0.59)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 15% | 40% | 47% | 45% | 42% | 39% |
Net assets, end of period (000s omitted)
| $1,493 | $1,752 | $4,240 | $3,217 | $4,592 | $8,371 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring C&B Mid Cap Value Fund | 17
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class R6 | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 1 |
Net asset value, beginning of period
| $35.81 | $48.97 | $34.77 | $40.06 | $38.27 | $37.39 |
Net investment income
| 0.19 | 0.33 | 0.24 | 0.27 | 0.35 2 | 0.08 2 |
Net realized and unrealized gains (losses) on investments
| 5.97 | (8.80) | 14.20 | (4.25) | 1.67 | 0.80 |
Total from investment operations
| 6.16 | (8.47) | 14.44 | (3.98) | 2.02 | 0.88 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.47) | (0.24) | (0.24) | (0.30) | (0.23) | 0.00 |
Net realized gains
| (3.62) | (4.45) | 0.00 | (1.01) | 0.00 | 0.00 |
Total distributions to shareholders
| (4.09) | (4.69) | (0.24) | (1.31) | (0.23) | 0.00 |
Net asset value, end of period
| $37.88 | $35.81 | $48.97 | $34.77 | $40.06 | $38.27 |
Total return3
| 17.68% | (19.43)% | 41.66% | (10.42)% | 5.39% | 2.35% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.86% | 0.82% | 0.82% | 0.84% | 0.86% | 0.86% |
Net expenses
| 0.80% | 0.80% | 0.80% | 0.80% | 0.80% | 0.80% |
Net investment income
| 1.01% | 0.75% | 0.49% | 0.73% | 0.95% | 1.24% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 15% | 40% | 47% | 45% | 42% | 39% |
Net assets, end of period (000s omitted)
| $18,637 | $17,055 | $21,853 | $12,156 | $15,112 | $26 |
| 1 | For the period from July 31, 2018 (commencement of class operations) to September 30, 2018 |
| 2 | Calculated based upon average shares outstanding |
| 3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
18 | Allspring C&B Mid Cap Value Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Administrator Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $35.86 | $49.03 | $34.80 | $40.14 | $38.35 | $35.52 |
Net investment income
| 0.12 1 | 0.17 1 | 0.07 1 | 0.14 1 | 0.20 1 | 0.10 1 |
Net realized and unrealized gains (losses) on investments
| 5.99 | (8.83) | 14.25 | (4.27) | 1.70 | 2.78 |
Total from investment operations
| 6.11 | (8.66) | 14.32 | (4.13) | 1.90 | 2.88 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.31) | (0.06) | (0.09) | (0.20) | (0.11) | (0.05) |
Net realized gains
| (3.62) | (4.45) | 0.00 | (1.01) | 0.00 | 0.00 |
Total distributions to shareholders
| (3.93) | (4.51) | (0.09) | (1.21) | (0.11) | (0.05) |
Net asset value, end of period
| $38.04 | $35.86 | $49.03 | $34.80 | $40.14 | $38.35 |
Total return2
| 17.48% | (19.72)% | 41.19% | (10.74)% | 5.03% | 8.13% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.21% | 1.17% | 1.17% | 1.19% | 1.21% | 1.21% |
Net expenses
| 1.15% | 1.15% | 1.15% | 1.15% | 1.15% | 1.15% |
Net investment income
| 0.64% | 0.38% | 0.14% | 0.38% | 0.53% | 0.26% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 15% | 40% | 47% | 45% | 42% | 39% |
Net assets, end of period (000s omitted)
| $13,634 | $13,030 | $25,617 | $23,691 | $24,036 | $20,960 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring C&B Mid Cap Value Fund | 19
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Institutional Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $35.77 | $48.93 | $34.74 | $40.04 | $38.26 | $35.41 |
Net investment income
| 0.16 1 | 0.29 1 | 0.19 | 0.23 1 | 0.28 | 0.19 |
Net realized and unrealized gains (losses) on investments
| 5.98 | (8.80) | 14.20 | (4.25) | 1.70 | 2.78 |
Total from investment operations
| 6.14 | (8.51) | 14.39 | (4.02) | 1.98 | 2.97 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.41) | (0.20) | (0.20) | (0.27) | (0.20) | (0.12) |
Net realized gains
| (3.62) | (4.45) | 0.00 | (1.01) | 0.00 | 0.00 |
Total distributions to shareholders
| (4.03) | (4.65) | (0.20) | (1.28) | (0.20) | (0.12) |
Net asset value, end of period
| $37.88 | $35.77 | $48.93 | $34.74 | $40.04 | $38.26 |
Total return2
| 17.63% | (19.52)% | 41.55% | (10.52)% | 5.29% | 8.41% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.95% | 0.92% | 0.92% | 0.94% | 0.96% | 0.96% |
Net expenses
| 0.90% | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% |
Net investment income
| 0.86% | 0.65% | 0.39% | 0.64% | 0.79% | 0.56% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 15% | 40% | 47% | 45% | 42% | 39% |
Net assets, end of period (000s omitted)
| $190,433 | $294,234 | $514,222 | $315,449 | $246,702 | $200,335 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
20 | Allspring C&B Mid Cap Value Fund
Notes to financial statements (unaudited)
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 C&B Mid Cap Value Fund (the "Fund") which is a diversified series of the Trust.
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
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC ("Allspring Funds Management"), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee 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. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio of investments.
Securities lending
During the period, the Fund participated in a program to lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities were on loan, the Fund received interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions was invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Effective at the close of business on March 29, 2023, the Fund is no longer participating in the securities lending program and the Securities Lending Fund was liquidated. Securities Lending Fund was managed by Allspring Funds Management and was subadvised by Allspring Global Investments, LLC ("Allspring Investments"), an affiliate of Allspring Funds Management and wholly owned subsidiary of Allspring Global Investments Holdings, LLC. Allspring Funds Management received an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increased. All of the fees received by Allspring Funds Management were paid to Allspring Investments for its services as subadviser.
Investments in Securities Lending Fund were valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the
Allspring C&B Mid Cap Value Fund | 21
Notes to financial statements (unaudited)
collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
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.
Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
Distributions to shareholders
Distributions to shareholders from net investment income and any net realized gains 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, as applicable, 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 March 31, 2023, the aggregate cost of all investments for federal income tax purposes was $278,679,062 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $ 72,319,161 |
| Gross unrealized losses | (26,493,220) |
| Net unrealized gains | $ 45,825,941 |
As of September 30, 2022, the Fund had current year deferred post-October capital losses consisting of $704,580 in short-term capital losses which was recognized in the first day of the current fiscal year.
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 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.
22 | Allspring C&B Mid Cap Value Fund
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2023:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Common stocks | | | | |
| Communication services | $ 16,311,739 | $0 | $0 | $ 16,311,739 |
| Consumer discretionary | 55,178,826 | 0 | 0 | 55,178,826 |
| Consumer staples | 4,020,370 | 0 | 0 | 4,020,370 |
| Energy | 6,963,352 | 0 | 0 | 6,963,352 |
| Financials | 81,865,546 | 0 | 0 | 81,865,546 |
| Health care | 41,751,714 | 0 | 0 | 41,751,714 |
| Industrials | 67,932,511 | 0 | 0 | 67,932,511 |
| Information technology | 35,713,219 | 0 | 0 | 35,713,219 |
| Real estate | 5,339,885 | 0 | 0 | 5,339,885 |
| Utilities | 4,943,840 | 0 | 0 | 4,943,840 |
| Short-term investments | | | | |
| Investment companies | 4,484,001 | 0 | 0 | 4,484,001 |
| Total assets | $324,505,003 | $0 | $0 | $324,505,003 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended March 31, 2023, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES
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 $500 million | 0.750% |
| Next $500 million | 0.725 |
| Next $1 billion | 0.700 |
| Next $2 billion | 0.675 |
| Next $1 billion | 0.650 |
| Next $5 billion | 0.640 |
| Next $2 billion | 0.630 |
| Next $4 billion | 0.620 |
| Over $16 billion | 0.610 |
For the six months ended March 31, 2023, the management fee was equivalent to an annual rate of 0.75% 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. Cooke & Bieler, L.P., which is not an affiliate of Allspring
Allspring C&B Mid Cap Value Fund | 23
Notes to financial statements (unaudited)
Funds Management, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.45% and declining to 0.35% 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 | 0.21% |
| Class C | 0.21 |
| Class R6 | 0.03 |
| Administrator Class | 0.13 |
| Institutional Class | 0.13 |
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 January 31, 2024 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. As of March 31, 2023, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class A | 1.25% |
| Class C | 2.00 |
| Class R6 | 0.80 |
| Administrator Class | 1.15 |
| Institutional Class | 0.90 |
Distribution fee
The Trust has adopted a distribution plan for Class C shares 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"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended March 31, 2023, Allspring Funds Distributor received $151 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended March 31, 2023.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
24 | Allspring C&B Mid Cap Value Fund
Notes to financial statements (unaudited)
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. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended March 31, 2023 were $55,831,310 and $211,423,022, respectively.
6. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended March 31, 2023, there were no borrowings by the Fund under the agreement.
7. CONCENTRATION RISKS
As of the end of the period, the Fund concentrated its portfolio of investments in the financials sector. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.
8. 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.
Allspring C&B Mid Cap Value Fund | 25
Other information (unaudited)
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.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
26 | Allspring C&B Mid Cap Value Fund
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 127 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 1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203. 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 Foundation (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. Member of the Advisory Board of CEF of East Central Florida. 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 | Distinguished Visiting Fellow at the Hoover Institution since 2022. 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 |
Allspring C&B Mid Cap Value Fund | 27
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, from 2007-2022. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. | 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 | Retired. Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer, Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
28 | Allspring C&B Mid Cap Value Fund
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 and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, from 2019 to 2022 and 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. |
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 from 2005 to 2010. |
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) | Chief Legal Officer, since 2022; 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.
Allspring C&B Mid Cap Value Fund | 29
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
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.
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.
© 2023 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-04042023-8fbahxod 05-23
SAR1857 03-23
Semi-Annual Report
March 31, 2023
Allspring Common Stock Fund
The views expressed and any forward-looking statements are as of March 31, 2023, 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.
Allspring Common Stock Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Common Stock Fund for the six-month period that ended March 31, 2023. Globally, stocks and bonds rebounded strongly despite ongoing volatility. While navigating persistently high inflation and the impact of ongoing aggressive central bank rate hikes, markets rallied on signs of declining inflation, anticipation of an end to the central bank monetary tightening cycle, and the stimulating impact of China removing its strict COVID-19 lockdowns in December. For the six-month period, domestic U.S. and global stocks and bonds had strong results. After suffering deep and broad losses through 2022, recent fixed income performance benefited from a base of higher yields that can now generate higher income.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 15.62%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 22.13%, while the MSCI EM Index (Net) (USD)3 returned 14.04%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 4.89%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned 10.07%, the Bloomberg Municipal Bond Index6 gained 7.00%, and the ICE BofA U.S. High Yield Index7 returned 7.89%.
Despite high inflation and central bank rate hikes, markets rally.
Equities had a reprieve in October. Value stocks and small caps fared best. Globally, developed markets outpaced emerging market equities, which were hurt by weakness among Chinese stocks. Central banks continued to try to curtail high inflation with aggressive interest rate hikes. Geopolitical risks persisted, including the ongoing Russia-Ukraine war and economic, financial market, and political turmoil in the U.K. Concerns over Europe’s energy crisis eased thanks to unseasonably warm weather and plentiful gas on hand. The U.S. labor market continued its resilience against rising prices as unemployment remained near a record low.
Stocks and bonds rallied in November. Economic news was encouraging, driven by U.S. labor market strength. Although central banks kept raising rates, hopes rose for an easing in the pace of rate hikes and a possible end to central bank monetary tightening in 2023. Although inflation remained at record highs in the eurozone, we began to see signs of a possible decline in inflationary pressures as U.S. inflation moderated, with a 7.1% annual price rise in November and a monthly price increase of just 0.1%. China’s economic data remained weak, reflecting its zero-COVID-19 policy.
| 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 2023. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring Common Stock Fund
Letter to shareholders (unaudited)
Financial markets cooled in December, with U.S. equities posting negative overall results in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever with flat overall monthly returns as markets weighed the hopes for an end to the monetary tightening cycle with the reality that central banks had not completed their jobs yet. U.S. Consumer Price Index (CPI)1 data showed a strong consistent trend downward, which brought down the 12-month CPI to 6.5% in December from 9.1% in June. Other countries and regions reported still-high but declining inflation rates as the year winded down.
The year 2023 began with a rally across global equities and fixed income securities. Investor optimism rose in response to data indicating declining inflation rates and the reopening of China’s economy with the abrupt end to its zero-COVID-19 policy. The U.S. reported surprisingly strong job gains––employers added more than 500,000 jobs––and unemployment fell to 3.4%, the lowest level since 1969. Meanwhile, wage growth, seen as a potential contributor to ongoing high inflation, continued to moderate. All eyes remained fixed on the Federal Reserve (Fed) and on how many more rate hikes remain in this tightening cycle. The 0.25% federal funds rate hike announced in January was the Fed’s smallest rate increase since March 2022.
Financial markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks will likely continue their monetary tightening cycle for longer than markets had priced in. In this environment—where strong economic data is seen as bad news—the resilient U.S. labor market was seen as a negative while the inflation rate has not been falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the Bank of England and the European Central Bank both raised rates by 0.50%. At this stage in the economic cycle, the overriding question remained: “What will central banks do?” In February, the answer appeared to be: “Move rates higher for longer.”
The collapse of Silicon Valley Bank in March, the second-largest banking failure in U.S. history, led to a classic bank run that spread to Europe, where Switzerland’s Credit Suisse was taken over by its rival, UBS. The sudden banking industry uncertainty led some clients of regional banks to transfer deposits to a handful of U.S. banking giants while bank shareholders sold stock. The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. The U.S. labor market remained resilient. The euro-area composite Purchasing Managers’ Index2 rose to 53.70, indicating expansion, for March. And China’s economy continued to rebound after the removal of its COVID-19 lockdown. Inflation rates in the U.S., the U.K., and Europe all remained higher than central bank targets, leading to additional rate hikes in March.
“ The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China.”
| 1 | The U.S. 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. |
| 2 | The Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. You cannot invest directly in an index. |
Allspring Common Stock Fund | 3
Letter to shareholders (unaudited)
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.
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
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.
4 | Allspring Common Stock Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks long-term capital appreciation. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Christopher G. Miller, CFA, Garth B. Newport, CFA |
| Average annual total returns (%) as of March 31, 2023 |
| | | 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 (SCSAX) | 11-30-2000 | -10.24 | 5.93 | 8.07 | | -4.75 | 7.19 | 8.72 | | 1.26 | 1.26 |
| Class C (STSAX) | 11-30-2000 | -6.37 | 6.50 | 8.11 | | -5.37 | 6.50 | 8.11 | | 2.01 | 2.01 |
| Class R6 (SCSRX)3 | 6-28-2013 | – | – | – | | -4.35 | 7.64 | 9.18 | | 0.83 | 0.83 |
| Administrator Class (SCSDX) | 7-30-2010 | – | – | – | | -4.53 | 7.73 | 9.07 | | 1.18 | 1.10 |
| Institutional Class (SCNSX) | 7-30-2010 | – | – | – | | -4.38 | 7.61 | 9.15 | | 0.93 | 0.85 |
| Russell 2500™ Index4 | – | – | – | – | | -10.39 | 6.65 | 9.07 | | – | – |
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 return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. 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.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
For Class A shares, the maximum front-end sales charge is 5.75%. 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. Class R6, Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
| 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 January 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.26% for Class A, 2.01% for Class C, 0.83% for Class R6, 1.10% for Administrator Class, and 0.85% for Institutional 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. 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 Class R6 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 Class R6 shares would be higher. |
| 4 | The Russell 2500TM Index measures the performance of the 2,500 smallest companies in the Russell 3000® Index, which represents approximately 16% of the total market capitalization of the Russell 3000® Index. You cannot invest directly in an index. |
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
6 | Allspring Common Stock Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of March 31, 20231 |
| Atkore Incorporated | 2.90 |
| MTU Aero Engines AG | 2.38 |
| Carlisle Companies Incorporated | 2.35 |
| Masonite International Corporation | 2.20 |
| Bio-Rad Laboratories Incorporated Class A | 1.98 |
| Sun Communities Incorporated | 1.95 |
| Burlington Stores Incorporated | 1.90 |
| Teledyne Technologies Incorporated | 1.89 |
| Marvell Technology Incorporated | 1.80 |
| Pagerduty Incorporated | 1.80 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Sector allocation as of March 31, 20231 |
| 1 | Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Common Stock Fund | 7
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 October 1, 2022 to March 31, 2023.
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 sales charges (loads) and 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
10-1-2022 | Ending
account value
3-31-2023 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class A | | | | |
| Actual | $1,000.00 | $1,175.01 | $ 6.83 | 1.26% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,018.65 | $ 6.34 | 1.26% |
| Class C | | | | |
| Actual | $1,000.00 | $1,171.12 | $10.50 | 1.94% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,015.26 | $ 9.75 | 1.94% |
| Class R6 | | | | |
| Actual | $1,000.00 | $1,177.71 | $ 4.51 | 0.83% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.79 | $ 4.18 | 0.83% |
| Administrator Class | | | | |
| Actual | $1,000.00 | $1,175.52 | $ 5.97 | 1.10% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.45 | $ 5.54 | 1.10% |
| Institutional Class | | | | |
| Actual | $1,000.00 | $1,177.45 | $ 4.61 | 0.85% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.69 | $ 4.28 | 0.85% |
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 182 divided by 365 (to reflect the one-half-year period).
8 | Allspring Common Stock Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Common stocks: 97.69% | | | | | |
| Communication services: 0.87% | | | | | |
| Interactive media & services: 0.87% | | | | | |
| Bumble Incorporated Class A † | | | | 381,225 | $ 7,452,949 |
| Consumer discretionary: 11.82% | | | | | |
| Automobile components: 1.03% | | | | | |
| Dana Incorporated | | | | 585,515 | 8,812,001 |
| Diversified consumer services: 1.04% | | | | | |
| Service Corporation International | | | | 130,278 | 8,960,521 |
| Hotels, restaurants & leisure: 1.35% | | | | | |
| Planet Fitness Incorporated Class A † | | | | 149,593 | 11,618,888 |
| Household durables: 0.97% | | | | | |
| Mohawk Industries Incorporated † | | | | 82,819 | 8,300,120 |
| Specialty retail: 6.05% | | | | | |
| Burlington Stores Incorporated † | | | | 80,828 | 16,335,339 |
| Leslie's Incorporated † | | | | 966,583 | 10,642,079 |
| National Vision Holdings Incorporated † | | | | 336,168 | 6,333,405 |
| Revolve Group Incorporated † | | | | 487,705 | 12,826,642 |
| Tractor Supply Company | | | | 24,579 | 5,777,048 |
| | | | | | 51,914,513 |
| Textiles, apparel & luxury goods: 1.38% | | | | | |
| Deckers Outdoor Corporation † | | | | 26,330 | 11,836,652 |
| Consumer staples: 2.72% | | | | | |
| Food products: 1.44% | | | | | |
| Nomad Foods Limited † | | | | 656,950 | 12,311,243 |
| Household products: 1.13% | | | | | |
| Church & Dwight Company Incorporated | | | | 110,091 | 9,733,145 |
| Personal care products: 0.15% | | | | | |
| The Honest Company Incorporated † | | | | 707,441 | 1,273,394 |
| Financials: 10.69% | | | | | |
| Banks: 1.79% | | | | | |
| Pinnacle Financial Partners Incorporated | | | | 109,739 | 6,053,203 |
| Webster Financial Corporation | | | | 235,947 | 9,301,031 |
| | | | | | 15,354,234 |
| Capital markets: 2.34% | | | | | |
| Cboe Global Markets Incorporated | | | | 99,149 | 13,309,762 |
| Raymond James Financial Incorporated | | | | 73,254 | 6,832,401 |
| | | | | | 20,142,163 |
| Financial services: 1.12% | | | | | |
| Essent Group Limited | | | | 239,617 | 9,596,661 |
| Insurance: 5.44% | | | | | |
| Arch Capital Group Limited † | | | | 196,737 | 13,352,540 |
The accompanying notes are an integral part of these financial statements.
Allspring Common Stock Fund | 9
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Insurance (continued) | | | | | |
| Axis Capital Holdings Limited | | | | 205,970 | $ 11,229,484 |
| First American Financial Corporation | | | | 167,512 | 9,323,718 |
| Reinsurance Group of America Incorporated | | | | 96,274 | 12,781,336 |
| | | | | | 46,687,078 |
| Health care: 11.90% | | | | | |
| Biotechnology: 0.20% | | | | | |
| Sage Therapeutics Incorporated † | | | | 40,978 | 1,719,437 |
| Health care equipment & supplies: 4.62% | | | | | |
| Haemonetics Corporation † | | | | 166,521 | 13,779,613 |
| Integer Holdings Corporation † | | | | 168,019 | 13,021,473 |
| LivaNova plc † | | | | 218,159 | 9,507,369 |
| ViewRay Incorporated † | | | | 975,691 | 3,375,891 |
| | | | | | 39,684,346 |
| Health care providers & services: 2.60% | | | | | |
| HealthEquity Incorporated † | | | | 243,151 | 14,275,395 |
| Humana Incorporated | | | | 16,609 | 8,063,005 |
| | | | | | 22,338,400 |
| Health care technology: 0.49% | | | | | |
| Schrodinger Incorporated † | | | | 160,553 | 4,227,360 |
| Life sciences tools & services: 3.99% | | | | | |
| Azenta Incorporated † | | | | 238,041 | 10,621,389 |
| Bio-Rad Laboratories Incorporated Class A † | | | | 35,446 | 16,979,343 |
| Codexis Incorporated † | | | | 338,972 | 1,403,344 |
| Sotera Health Company † | | | | 290,463 | 5,202,192 |
| | | | | | 34,206,268 |
| Industrials: 25.71% | | | | | |
| Aerospace & defense: 2.37% | | | | | |
| MTU Aero Engines AG | | | | 81,502 | 20,395,038 |
| Building products: 8.01% | | | | | |
| Armstrong World Industries Incorporated | | | | 132,351 | 9,428,685 |
| Carlisle Companies Incorporated | | | | 89,089 | 20,140,350 |
| Masonite International Corporation † | | | | 207,939 | 18,874,623 |
| Tecnoglass Incorporated | | | | 158,805 | 6,663,458 |
| The AZEK Company Incorporated † | | | | 580,487 | 13,664,664 |
| | | | | | 68,771,780 |
| Commercial services & supplies: 1.97% | | | | | |
| Republic Services Incorporated | | | | 53,188 | 7,192,081 |
| Stericycle Incorporated † | | | | 223,627 | 9,752,373 |
| | | | | | 16,944,454 |
| Construction & engineering: 1.39% | | | | | |
| APi Group Corporation † | | | | 531,437 | 11,946,702 |
| Electrical equipment: 2.90% | | | | | |
| Atkore Incorporated † | | | | 177,228 | 24,896,989 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Common Stock Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Machinery: 1.17% | | | | | |
| Ingersoll Rand Incorporated | | | | 172,046 | $ 10,009,636 |
| Professional services: 4.98% | | | | | |
| CACI International Incorporated Class A † | | | | 36,971 | 10,953,768 |
| Dun & Bradstreet Holdings Incorporated | | | | 774,169 | 9,088,744 |
| Genpact Limited | | | | 255,771 | 11,821,736 |
| TransUnion | | | | 175,181 | 10,885,747 |
| | | | | | 42,749,995 |
| Trading companies & distributors: 2.92% | | | | | |
| Air Lease Corporation | | | | 263,540 | 10,375,570 |
| United Rentals Incorporated | | | | 37,035 | 14,656,972 |
| | | | | | 25,032,542 |
| Information technology: 16.21% | | | | | |
| Electronic equipment, instruments & components: 1.89% | | | | | |
| Teledyne Technologies Incorporated † | | | | 36,283 | 16,231,563 |
| IT services: 1.51% | | | | | |
| Okta Incorporated † | | | | 149,903 | 12,927,635 |
| Semiconductors & semiconductor equipment: 3.51% | | | | | |
| Marvell Technology Incorporated | | | | 357,243 | 15,468,622 |
| ON Semiconductor Corporation † | | | | 178,002 | 14,653,125 |
| | | | | | 30,121,747 |
| Software: 9.30% | | | | | |
| 8x8 Incorporated † | | | | 518,307 | 2,161,340 |
| Black Knight Incorporated † | | | | 192,935 | 11,105,339 |
| Instructure Holdings Incorporated † | | | | 409,034 | 10,593,981 |
| New Relic Incorporated † | | | | 189,765 | 14,287,407 |
| Pagerduty Incorporated † | | | | 440,782 | 15,418,554 |
| Q2 Holdings Incorporated † | | | | 282,517 | 6,955,569 |
| Riskified Limited Class A † | | | | 411,515 | 2,320,945 |
| SPS Commerce Incorporated † | | | | 59,251 | 9,023,927 |
| WalkMe Limited † | | | | 753,746 | 8,019,857 |
| | | | | | 79,886,919 |
| Materials: 7.96% | | | | | |
| Chemicals: 4.87% | | | | | |
| Ashland Global Holdings Incorporated | | | | 147,417 | 15,141,200 |
| Quaker Chemical Corporation | | | | 67,732 | 13,407,549 |
| Westlake Chemical Corporation | | | | 114,760 | 13,309,865 |
| | | | | | 41,858,614 |
| Containers & packaging: 1.11% | | | | | |
| Crown Holdings Incorporated | | | | 114,775 | 9,493,040 |
| Metals & mining: 1.98% | | | | | |
| Reliance Steel & Aluminum Company | | | | 31,231 | 8,018,247 |
| Steel Dynamics Incorporated | | | | 79,460 | 8,983,748 |
| | | | | | 17,001,995 |
The accompanying notes are an integral part of these financial statements.
Allspring Common Stock Fund | 11
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Real estate: 9.81% | | | | | |
| Industrial REITs: 1.44% | | | | | |
| Terreno Realty Corporation | | | | 191,423 | $ 12,365,926 |
| Residential REITs: 4.38% | | | | | |
| American Homes 4 Rent Class A | | | | 348,671 | 10,965,703 |
| Apartment Income REIT Corporation | | | | 275,373 | 9,861,107 |
| Sun Communities Incorporated | | | | 118,961 | 16,759,226 |
| | | | | | 37,586,036 |
| Specialized REITs: 3.99% | | | | | |
| Life Storage Incorporated | | | | 109,113 | 14,303,623 |
| SBA Communications Corporation | | | | 37,654 | 9,830,330 |
| VICI Properties Incorporated | | | | 311,779 | 10,170,231 |
| | | | | | 34,304,184 |
| Total Common stocks (Cost $696,208,858) | | | | | 838,694,168 |
| | | | | | |
| Investment companies: 1.21% | | | | | |
| Exchange-traded funds: 1.21% | | | | | |
| SPDR S&P Biotech ETF | | | | 135,841 | 10,352,443 |
| Total Investment companies (Cost $9,011,519) | | | | | 10,352,443 |
| | | Yield | | | |
| Short-term investments: 1.40% | | | | | |
| Investment companies: 1.40% | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 4.69% | | 12,033,389 | 12,033,389 |
| Total Short-term investments (Cost $12,033,389) | | | | | 12,033,389 |
| Total investments in securities (Cost $717,253,766) | 100.30% | | | | 861,080,000 |
| Other assets and liabilities, net | (0.30) | | | | (2,574,127) |
| Total net assets | 100.00% | | | | $858,505,873 |
| † | Non-income-earning security |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
| Abbreviations: |
| REIT | Real estate investment trust |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Common Stock Fund
Portfolio of investments—March 31, 2023 (unaudited)
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | $11,844,758 | $82,699,238 | $ (82,510,607) | $ 0 | | $0 | | $ 12,033,389 | 12,033,389 | $ 163,734 |
Investments in affiliates no
longer held at end of period | | | | | | | | | | |
| Securities Lending Cash Investments LLC | 30,992,000 | 92,887,953 | (123,880,963) | 1,010 | | 0 | | 0 | 0 | 332,430 # |
| | | | | $1,010 | | $0 | | $12,033,389 | | $496,164 |
| # | Amount shown represents income before fees and rebates. |
The accompanying notes are an integral part of these financial statements.
Allspring Common Stock Fund | 13
Statement of assets and liabilities—March 31, 2023 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $705,220,377)
| $ 849,046,611 |
Investments in affiliated securities, at value (cost $12,033,389)
| 12,033,389 |
Receivable for dividends
| 638,368 |
Receivable for Fund shares sold
| 223,047 |
Receivable for investments sold
| 178,067 |
Prepaid expenses and other assets
| 45,384 |
Total assets
| 862,164,866 |
| Liabilities | |
Payable for investments purchased
| 1,702,173 |
Payable for Fund shares redeemed
| 681,112 |
Management fee payable
| 590,035 |
Administration fees payable
| 149,780 |
Due to custodian bank, foreign currency, at value
| 127,226 |
Trustees’ fees and expenses payable
| 3,238 |
Distribution fee payable
| 730 |
Accrued expenses and other liabilities
| 404,699 |
Total liabilities
| 3,658,993 |
Total net assets
| $858,505,873 |
| Net assets consist of | |
Paid-in capital
| $ 727,433,105 |
Total distributable earnings
| 131,072,768 |
Total net assets
| $858,505,873 |
| Computation of net asset value and offering price per share | |
Net assets – Class A
| $ 739,826,794 |
Shares outstanding – Class A1
| 45,358,573 |
Net asset value per share – Class A
| $16.31 |
Maximum offering price per share – Class A2
| $17.31 |
Net assets – Class C
| $ 1,214,219 |
Shares outstanding – Class C1
| 156,703 |
Net asset value per share – Class C
| $7.75 |
Net assets – Class R6
| $ 35,538,808 |
Shares outstanding – Class R61
| 1,945,168 |
Net asset value per share – Class R6
| $18.27 |
Net assets – Administrator Class
| $ 1,461,906 |
Shares outstanding – Administrator Class1
| 83,660 |
Net asset value per share – Administrator Class
| $17.47 |
Net assets – Institutional Class
| $ 80,464,146 |
Shares outstanding – Institutional Class1
| 4,430,621 |
Net asset value per share – Institutional Class
| $18.16 |
| 1 | The Fund has an unlimited number of authorized shares. |
| 2 | Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Common Stock Fund
Statement of operations—six months ended March 31, 2023 (unaudited)
| | |
| Investment income | |
Dividends
| $ 3,633,772 |
Income from affiliated securities
| 199,935 |
Total investment income
| 3,833,707 |
| Expenses | |
Management fee
| 3,316,806 |
| Administration fees | |
Class A
| 773,869 |
Class C
| 1,371 |
Class R6
| 4,867 |
Administrator Class
| 1,178 |
Institutional Class
| 51,128 |
| Shareholder servicing fees | |
Class A
| 916,456 |
Class C
| 1,630 |
Administrator Class
| 2,257 |
| Distribution fee | |
Class C
| 4,436 |
Custody and accounting fees
| 25,749 |
Professional fees
| 25,072 |
Registration fees
| 32,369 |
Shareholder report expenses
| 4,084 |
Trustees’ fees and expenses
| 11,087 |
Other fees and expenses
| 8,000 |
Total expenses
| 5,180,359 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level
| (12,256) |
Class R6
| (1,627) |
Administrator Class
| (727) |
Institutional Class
| (31,550) |
Net expenses
| 5,134,199 |
Net investment loss
| (1,300,492) |
| Realized and unrealized gains (losses) on investments | |
| Net realized gains (losses) on | |
Unaffiliated securities
| 16,072,202 |
Affiliated securities
| 1,010 |
Foreign currency and foreign currency translations
| (9,367) |
Net realized gains on investments
| 16,063,845 |
Net change in unrealized gains (losses) on investments
| 119,719,905 |
Net realized and unrealized gains (losses) on investments
| 135,783,750 |
Net increase in net assets resulting from operations
| $134,483,258 |
The accompanying notes are an integral part of these financial statements.
Allspring Common Stock Fund | 15
Statement of changes in net assets
| | | | | |
| | Six months ended
March 31, 2023
(unaudited) | Year ended
September 30, 2022 |
| Operations | | | | |
Net investment loss
| | $ (1,300,492) | | $ (5,275,143) |
Net realized gains on investments
| | 16,063,845 | | 135,230,616 |
Net change in unrealized gains (losses) on investments
| | 119,719,905 | | (331,527,596) |
Net increase (decrease) in net assets resulting from operations
| | 134,483,258 | | (201,572,123) |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class A
| | (110,542,437) | | (161,912,121) |
Class C
| | (373,786) | | (554,558) |
Class R6
| | (4,204,252) | | (5,673,249) |
Administrator Class
| | (273,959) | | (470,883) |
Institutional Class
| | (10,704,809) | | (16,369,856) |
Total distributions to shareholders
| | (126,099,243) | | (184,980,667) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class A
| 222,971 | 3,683,271 | 515,797 | 10,515,467 |
Class C
| 10,875 | 90,038 | 8,409 | 96,379 |
Class R6
| 296,497 | 5,418,036 | 241,271 | 5,277,178 |
Administrator Class
| 1,661 | 29,191 | 6,582 | 147,341 |
Institutional Class
| 602,785 | 11,414,773 | 575,509 | 13,413,042 |
| | | 20,635,309 | | 29,449,407 |
| Reinvestment of distributions | | | | |
Class A
| 6,756,457 | 104,725,081 | 7,213,374 | 154,077,651 |
Class C
| 48,549 | 358,288 | 44,905 | 534,818 |
Class R6
| 242,080 | 4,197,673 | 240,353 | 5,629,071 |
Administrator Class
| 14,790 | 245,511 | 18,524 | 418,464 |
Institutional Class
| 619,644 | 10,682,657 | 699,847 | 16,313,433 |
| | | 120,209,210 | | 176,973,437 |
| Payment for shares redeemed | | | | |
Class A
| (3,573,505) | (58,996,229) | (4,429,784) | (88,762,949) |
Class C
| (47,978) | (385,350) | (63,666) | (818,413) |
Class R6
| (110,053) | (2,069,119) | (300,987) | (6,361,696) |
Administrator Class
| (37,689) | (668,678) | (34,067) | (746,635) |
Institutional Class
| (976,925) | (17,819,136) | (824,533) | (18,168,005) |
| | | (79,938,512) | | (114,857,698) |
Net increase in net assets resulting from capital share transactions
| | 60,906,007 | | 91,565,146 |
Total increase (decrease) in net assets
| | 69,290,022 | | (294,987,644) |
| Net assets | | | | |
Beginning of period
| | 789,215,851 | | 1,084,203,495 |
End of period
| | $ 858,505,873 | | $ 789,215,851 |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Common Stock Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class A | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $16.31 | $24.46 | $17.88 | $21.07 | $24.58 | $24.06 |
Net investment loss
| (0.03) | (0.12) | (0.12) | (0.03) | (0.01) | (0.04) |
Net realized and unrealized gains (losses) on investments
| 2.74 | (3.79) | 7.75 | (0.52) | (0.20) | 3.10 |
Total from investment operations
| 2.71 | (3.91) | 7.63 | (0.55) | (0.21) | 3.06 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | 0.00 | 0.00 | (0.00) 1 | 0.00 | 0.00 |
Net realized gains
| (2.71) | (4.24) | (1.05) | (2.64) | (3.30) | (2.54) |
Total distributions to shareholders
| (2.71) | (4.24) | (1.05) | (2.64) | (3.30) | (2.54) |
Net asset value, end of period
| $16.31 | $16.31 | $24.46 | $17.88 | $21.07 | $24.58 |
Total return2
| 17.50% | (20.08)% | 43.77% | (3.48)% | 0.91% | 13.62% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.26% | 1.26% | 1.25% | 1.27% | 1.26% | 1.25% |
Net expenses
| 1.26% | 1.23% | 1.23% | 1.23% | 1.26% | 1.25% |
Net investment loss
| (0.36)% | (0.58)% | (0.50)% | (0.14)% | (0.03)% | (0.18)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 18% | 40% | 48% | 61% | 40% | 33% |
Net assets, end of period (000s omitted)
| $739,827 | $684,178 | $945,399 | $722,547 | $870,369 | $971,731 |
| 1 | Amount is less than $0.005. |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Common Stock Fund | 17
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class C | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $9.05 | $15.45 | $11.70 | $14.72 | $18.40 | $18.75 |
Net investment loss
| (0.04) 1 | (0.14) 1 | (0.18) 1 | (0.11) 1 | (0.11) 1 | (0.17) 1 |
Payment from affiliate
| 0.00 | 0.00 | 0.00 | 0.05 | 0.00 | 0.00 |
Net realized and unrealized gains (losses) on investments
| 1.45 | (2.02) | 4.98 | (0.32) | (0.27) | 2.36 |
Total from investment operations
| 1.41 | (2.16) | 4.80 | (0.38) | (0.38) | 2.19 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| (2.71) | (4.24) | (1.05) | (2.64) | (3.30) | (2.54) |
Net asset value, end of period
| $7.75 | $9.05 | $15.45 | $11.70 | $14.72 | $18.40 |
Total return2
| 17.11% | (20.56)% | 42.64% | (3.88)% 3 | 0.17% | 12.74% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.94% | 1.88% | 1.99% | 2.01% | 2.01% | 2.00% |
Net expenses
| 1.94% | 1.88% | 1.99% | 2.01% | 2.01% | 2.00% |
Net investment loss
| (1.05)% | (1.23)% | (1.26)% | (0.92)% | (0.78)% | (0.94)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 18% | 40% | 48% | 61% | 40% | 33% |
Net assets, end of period (000s omitted)
| $1,214 | $1,314 | $2,405 | $3,020 | $7,925 | $16,541 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
| 3 | During the year ended September 30, 2020, the Fund received a payment from an affiliate which had a 0.39% impact on the total return. |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Common Stock Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class R6 | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $17.94 | $26.41 | $19.16 | $22.39 | $25.80 | $25.03 |
Net investment income (loss)
| 0.01 1 | (0.04) 1 | (0.02) 1 | 0.05 1 | 0.09 1 | 0.05 1 |
Net realized and unrealized gains (losses) on investments
| 3.03 | (4.19) | 8.32 | (0.56) | (0.20) | 3.26 |
Total from investment operations
| 3.04 | (4.23) | 8.30 | (0.51) | (0.11) | 3.31 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | 0.00 | 0.00 | (0.08) | 0.00 | 0.00 |
Net realized gains
| (2.71) | (4.24) | (1.05) | (2.64) | (3.30) | (2.54) |
Total distributions to shareholders
| (2.71) | (4.24) | (1.05) | (2.72) | (3.30) | (2.54) |
Net asset value, end of period
| $18.27 | $17.94 | $26.41 | $19.16 | $22.39 | $25.80 |
Total return2
| 17.77% | (19.77)% | 44.37% | (3.10)% | 1.31% | 14.12% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.84% | 0.83% | 0.82% | 0.84% | 0.83% | 0.82% |
Net expenses
| 0.83% | 0.83% | 0.82% | 0.83% | 0.83% | 0.82% |
Net investment income (loss)
| 0.08% | (0.17)% | (0.09)% | 0.27% | 0.40% | 0.20% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 18% | 40% | 48% | 61% | 40% | 33% |
Net assets, end of period (000s omitted)
| $35,539 | $27,209 | $35,280 | $27,628 | $36,069 | $36,477 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Common Stock Fund | 19
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Administrator Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $17.28 | $25.63 | $18.67 | $21.56 | $25.04 | $24.42 |
Net investment income (loss)
| (0.02) 1 | (0.10) 1 | (0.09) 1 | 0.00 1,2 | 0.03 | (0.01) 1 |
Payment from affiliate
| 0.00 | 0.00 | 0.00 | 0.32 | 0.00 | 0.00 |
Net realized and unrealized gains (losses) on investments
| 2.92 | (4.01) | 8.10 | (0.54) | (0.21) | 3.17 |
Total from investment operations
| 2.90 | (4.11) | 8.01 | (0.22) | (0.18) | 3.16 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | 0.00 | 0.00 | (0.03) | 0.00 | 0.00 |
Net realized gains
| (2.71) | (4.24) | (1.05) | (2.64) | (3.30) | (2.54) |
Total distributions to shareholders
| (2.71) | (4.24) | (1.05) | (2.67) | (3.30) | (2.54) |
Net asset value, end of period
| $17.47 | $17.28 | $25.63 | $18.67 | $21.56 | $25.04 |
Total return3
| 17.55% | (19.87)% 4 | 43.96% | (1.68)% 5 | 1.03% | 13.84% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.18% | 1.17% | 1.17% | 1.17% | 1.18% | 1.17% |
Net expenses
| 1.10% | 1.10% | 1.10% | 1.10% | 1.10% | 1.10% |
Net investment income (loss)
| (0.23)% | (0.45)% | (0.36)% | 0.01% | 0.14% | (0.04)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 18% | 40% | 48% | 61% | 40% | 33% |
Net assets, end of period (000s omitted)
| $1,462 | $1,813 | $2,918 | $2,239 | $3,572 | $6,141 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Amount is less than $0.005. |
| 3 | Returns for periods of less than one year are not annualized. |
| 4 | During the year ended September 30, 2022, the Fund received payments from a service provider which had a 0.09% impact on the total return. |
| 5 | During the year ended September 30, 2020, the Fund received a payment from an affiliate which had a 1.69% impact on the total return. |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Common Stock Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Institutional Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $17.85 | $26.30 | $19.09 | $22.32 | $25.73 | $24.97 |
Net investment income (loss)
| 0.01 1 | (0.04) 1 | (0.03) 1 | 0.05 1 | 0.08 1 | 0.05 1 |
Net realized and unrealized gains (losses) on investments
| 3.01 | (4.17) | 8.29 | (0.56) | (0.19) | 3.25 |
Total from investment operations
| 3.02 | (4.21) | 8.26 | (0.51) | (0.11) | 3.30 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | 0.00 | 0.00 | (0.08) | 0.00 | 0.00 |
Net realized gains
| (2.71) | (4.24) | (1.05) | (2.64) | (3.30) | (2.54) |
Total distributions to shareholders
| (2.71) | (4.24) | (1.05) | (2.72) | (3.30) | (2.54) |
Net asset value, end of period
| $18.16 | $17.85 | $26.30 | $19.09 | $22.32 | $25.73 |
Total return2
| 17.74% | (19.78)% | 44.32% | (3.13)% | 1.31% | 14.12% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.93% | 0.93% | 0.92% | 0.94% | 0.93% | 0.92% |
Net expenses
| 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% |
Net investment income (loss)
| 0.06% | (0.20)% | (0.14)% | 0.24% | 0.37% | 0.21% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 18% | 40% | 48% | 61% | 40% | 33% |
Net assets, end of period (000s omitted)
| $80,464 | $74,701 | $98,202 | $126,279 | $159,426 | $172,197 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Common Stock Fund | 21
Notes to financial statements (unaudited)
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 Common Stock Fund (the "Fund") which is a diversified series of the Trust.
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
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities and exchange-traded funds that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee established by Allspring Funds Management, LLC ("Allspring Funds Management").
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures implemented by Allspring Funds Management are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On March 31, 2023, such fair value pricing was used in pricing certain foreign securities.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee 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. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates.
22 | Allspring Common Stock Fund
Notes to financial statements (unaudited)
The changes in net assets arising from changes in exchange rates of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.
Securities lending
During the period, the Fund participated in a program to lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities were on loan, the Fund received interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions was invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Effective at the close of business on March 29, 2023, the Fund is no longer participating in the securities lending program and the Securities Lending Fund was liquidated. Securities Lending Fund was managed by Allspring Funds Management and was subadvised by Allspring Global Investments, LLC ("Allspring Investments"), an affiliate of Allspring Funds Management and wholly owned subsidiary of Allspring Global Investments Holdings, LLC. Allspring Funds Management received an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increased. All of the fees received by Allspring Funds Management were paid to Allspring Investments for its services as subadviser.
Investments in Securities Lending Fund were valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
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.
Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date.
Income dividends and capital gain distributions from investment companies are recorded on the ex-dividend date. Capital gain distributions from investment companies are treated as realized gains.
Distributions to shareholders
Distributions to shareholders from net investment income and any net realized gains 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, as applicable, for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
Allspring Common Stock Fund | 23
Notes to financial statements (unaudited)
As of March 31, 2023, the aggregate cost of all investments for federal income tax purposes was $715,041,604 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $227,024,866 |
| Gross unrealized losses | (80,986,470) |
| Net unrealized gains | $146,038,396 |
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 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 March 31, 2023:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Common stocks | | | | |
| Communication services | $ 7,452,949 | $ 0 | $0 | $ 7,452,949 |
| Consumer discretionary | 101,442,695 | 0 | 0 | 101,442,695 |
| Consumer staples | 23,317,782 | 0 | 0 | 23,317,782 |
| Financials | 91,780,136 | 0 | 0 | 91,780,136 |
| Health care | 102,175,811 | 0 | 0 | 102,175,811 |
| Industrials | 200,352,098 | 20,395,038 | 0 | 220,747,136 |
| Information technology | 139,167,864 | 0 | 0 | 139,167,864 |
| Materials | 68,353,649 | 0 | 0 | 68,353,649 |
| Real estate | 84,256,146 | 0 | 0 | 84,256,146 |
| Investment companies | 10,352,443 | 0 | 0 | 10,352,443 |
| Short-term investments | | | | |
| Investment companies | 12,033,389 | 0 | 0 | 12,033,389 |
| Total assets | $840,684,962 | $20,395,038 | $0 | $861,080,000 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended March 31, 2023, the Fund did not have any transfers into/out of Level 3.
24 | Allspring Common Stock Fund
Notes to financial statements (unaudited)
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 $500 million | 0.800% |
| Next $500 million | 0.750 |
| Next $1 billion | 0.700 |
| Next $2 billion | 0.675 |
| Next $1 billion | 0.650 |
| Next $5 billion | 0.640 |
| Over $10 billion | 0.630 |
For the six months ended March 31, 2023, the management fee was equivalent to an annual rate of 0.78% 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 Investments is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.45% and declining to 0.30% 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 | 0.21% |
| Class C | 0.21 |
| Class R6 | 0.03 |
| Administrator Class | 0.13 |
| Institutional Class | 0.13 |
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 January 31, 2024 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
Allspring Common Stock Fund | 25
Notes to financial statements (unaudited)
caps may be terminated only with the approval of the Board of Trustees. As of March 31, 2023, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class A | 1.26% |
| Class C | 2.01 |
| Class R6 | 0.83 |
| Administrator Class | 1.10 |
| Institutional Class | 0.85 |
Distribution fee
The Trust has adopted a distribution plan for Class C shares 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"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended March 31, 2023, Allspring Funds Distributor received $135 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended March 31, 2023.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
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. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended March 31, 2023 were $151,472,265 and $215,922,601, respectively.
6. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended March 31, 2023, there were no borrowings by the Fund under the agreement.
7. CONCENTRATION RISKS
As of the end of the period, the Fund concentrated its portfolio of investments in the industrials sector. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.
8. 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
26 | Allspring Common Stock Fund
Notes to financial statements (unaudited)
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.
Allspring Common Stock Fund | 27
Other information (unaudited)
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.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
28 | Allspring Common Stock Fund
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 127 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 1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203. 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 Foundation (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. Member of the Advisory Board of CEF of East Central Florida. 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 | Distinguished Visiting Fellow at the Hoover Institution since 2022. 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 |
Allspring Common Stock Fund | 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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, from 2007-2022. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. | 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 | Retired. Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer, Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
30 | Allspring Common Stock Fund
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 and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, from 2019 to 2022 and 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. |
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 from 2005 to 2010. |
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) | Chief Legal Officer, since 2022; 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.
Allspring Common Stock Fund | 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
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.
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.
© 2023 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-04042023-eiyvh5c5 05-23
SAR3301 03-23
Semi-Annual Report
March 31, 2023
Allspring
Discovery SMID Cap Growth Fund
The views expressed and any forward-looking statements are as of March 31, 2023, 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.
Allspring Discovery SMID Cap Growth Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Discovery SMID Cap Growth Fund for the six-month period that ended March 31, 2023. Globally, stocks and bonds rebounded strongly despite ongoing volatility. While navigating persistently high inflation and the impact of ongoing aggressive central bank rate hikes, markets rallied on signs of declining inflation, anticipation of an end to the central bank monetary tightening cycle, and the stimulating impact of China removing its strict COVID-19 lockdowns in December. For the six-month period, domestic U.S. and global stocks and bonds had strong results. After suffering deep and broad losses through 2022, recent fixed income performance benefited from a base of higher yields that can now generate higher income.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 15.62%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 22.13%, while the MSCI EM Index (Net) (USD)3 returned 14.04%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 4.89%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned 10.07%, the Bloomberg Municipal Bond Index6 gained 7.00%, and the ICE BofA U.S. High Yield Index7 returned 7.89%.
Despite high inflation and central bank rate hikes, markets rally.
Equities had a reprieve in October. Value stocks and small caps fared best. Globally, developed markets outpaced emerging market equities, which were hurt by weakness among Chinese stocks. Central banks continued to try to curtail high inflation with aggressive interest rate hikes. Geopolitical risks persisted, including the ongoing Russia-Ukraine war and economic, financial market, and political turmoil in the U.K. Concerns over Europe’s energy crisis eased thanks to unseasonably warm weather and plentiful gas on hand. The U.S. labor market continued its resilience against rising prices as unemployment remained near a record low.
Stocks and bonds rallied in November. Economic news was encouraging, driven by U.S. labor market strength. Although central banks kept raising rates, hopes rose for an easing in the pace of rate hikes and a possible end to central bank monetary tightening in 2023. Although inflation remained at record highs in the eurozone, we began to see signs of a possible decline in inflationary pressures as U.S. inflation moderated, with a 7.1% annual price rise in November and a monthly price increase of just 0.1%. China’s economic data remained weak, reflecting its zero-COVID-19 policy.
| 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 2023. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring Discovery SMID Cap Growth Fund
Letter to shareholders (unaudited)
Financial markets cooled in December, with U.S. equities posting negative overall results in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever with flat overall monthly returns as markets weighed the hopes for an end to the monetary tightening cycle with the reality that central banks had not completed their jobs yet. U.S. Consumer Price Index (CPI)1 data showed a strong consistent trend downward, which brought down the 12-month CPI to 6.5% in December from 9.1% in June. Other countries and regions reported still-high but declining inflation rates as the year winded down.
The year 2023 began with a rally across global equities and fixed income securities. Investor optimism rose in response to data indicating declining inflation rates and the reopening of China’s economy with the abrupt end to its zero-COVID-19 policy. The U.S. reported surprisingly strong job gains––employers added more than 500,000 jobs––and unemployment fell to 3.4%, the lowest level since 1969. Meanwhile, wage growth, seen as a potential contributor to ongoing high inflation, continued to moderate. All eyes remained fixed on the Federal Reserve (Fed) and on how many more rate hikes remain in this tightening cycle. The 0.25% federal funds rate hike announced in January was the Fed’s smallest rate increase since March 2022.
Financial markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks will likely continue their monetary tightening cycle for longer than markets had priced in. In this environment—where strong economic data is seen as bad news—the resilient U.S. labor market was seen as a negative while the inflation rate has not been falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the Bank of England and the European Central Bank both raised rates by 0.50%. At this stage in the economic cycle, the overriding question remained: “What will central banks do?” In February, the answer appeared to be: “Move rates higher for longer.”
The collapse of Silicon Valley Bank in March, the second-largest banking failure in U.S. history, led to a classic bank run that spread to Europe, where Switzerland’s Credit Suisse was taken over by its rival, UBS. The sudden banking industry uncertainty led some clients of regional banks to transfer deposits to a handful of U.S. banking giants while bank shareholders sold stock. The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. The U.S. labor market remained resilient. The euro-area composite Purchasing Managers’ Index2 rose to 53.70, indicating expansion, for March. And China’s economy continued to rebound after the removal of its COVID-19 lockdown. Inflation rates in the U.S., the U.K., and Europe all remained higher than central bank targets, leading to additional rate hikes in March.
“ The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China.”
| 1 | The U.S. 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. |
| 2 | The Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. You cannot invest directly in an index. |
Allspring Discovery SMID Cap Growth Fund | 3
Letter to shareholders (unaudited)
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.
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
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.
4 | Allspring Discovery SMID Cap Growth Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks long-term capital appreciation. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Michael T. Smith, CFA, Christopher J. Warner, CFA |
| Average annual total returns (%) as of March 31, 2023 |
| | | 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 (WFDAX) | 7-31-2007 | -19.83 | 4.61 | 8.39 | | -14.94 | 5.85 | 9.03 | | 1.21 | 1.21 |
| Class C (WDSCX) | 7-31-2007 | -16.62 | 5.07 | 8.38 | | -15.62 | 5.07 | 8.38 | | 1.96 | 1.96 |
| Class R6 (WFDRX)3 | 6-28-2013 | – | – | – | | -14.61 | 6.30 | 9.50 | | 0.78 | 0.78 |
| Administrator Class (WFDDX) | 4-8-2005 | – | – | – | | -14.86 | 5.94 | 9.14 | | 1.13 | 1.13 |
| Institutional Class (WFDSX) | 8-31-2006 | – | – | – | | -14.70 | 6.19 | 9.40 | | 0.88 | 0.88 |
| Russell 2500™ Growth Index4 | – | – | – | – | | -10.35 | 6.82 | 10.05 | | – | – |
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 return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. 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.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
For Class A shares, the maximum front-end sales charge is 5.75%. 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. Class R6, Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
| 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 January 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.22% for Class A, 1.97% for Class C, 0.79% for Class R6, 1.14% for Administrator Class, and 0.89% for Institutional 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. 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 Class R6 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 Class R6 shares would be higher. |
| 4 | The Russell 2500® Growth Index measures the performance of those Russell 2500 companies with higher price/book ratios and higher forecasted growth values. You cannot invest directly in an index. |
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
6 | Allspring Discovery SMID Cap Growth Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of March 31, 20231 |
| Teledyne Technologies Incorporated | 3.10 |
| WNS Holdings Limited ADR | 2.55 |
| Casella Waste Systems Incorporated Class A | 2.42 |
| MarketAxess Holdings Incorporated | 2.41 |
| MercadoLibre Incorporated | 2.41 |
| Rexford Industrial Realty Incorporated | 2.28 |
| Novanta Incorporated | 2.21 |
| Axon Enterprise Incorporated | 2.18 |
| Bio-Techne Corporation | 1.98 |
| Tetra Tech Incorporated | 1.93 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Sector allocation as of March 31, 20231 |
| 1 | Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Discovery SMID Cap Growth Fund | 7
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 October 1, 2022 to March 31, 2023.
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 sales charges (loads) and 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
10-1-2022 | Ending
account value
3-31-2023 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class A | | | | |
| Actual | $1,000.00 | $1,131.08 | $ 6.48 | 1.22% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,018.85 | $ 6.14 | 1.22% |
| Class C | | | | |
| Actual | $1,000.00 | $1,127.04 | $10.45 | 1.97% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,015.11 | $ 9.90 | 1.97% |
| Class R6 | | | | |
| Actual | $1,000.00 | $1,133.64 | $ 4.20 | 0.79% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.99 | $ 3.98 | 0.79% |
| Administrator Class | | | | |
| Actual | $1,000.00 | $1,131.51 | $ 5.90 | 1.11% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.40 | $ 5.59 | 1.11% |
| Institutional Class | | | | |
| Actual | $1,000.00 | $1,133.12 | $ 4.73 | 0.89% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.49 | $ 4.48 | 0.89% |
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 182 divided by 365 (to reflect the one-half-year period).
8 | Allspring Discovery SMID Cap Growth Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Common stocks: 97.00% | | | | | |
| Communication services: 5.35% | | | | | |
| Entertainment: 3.04% | | | | | |
| Liberty Media Corporation † | | | | 329,200 | $ 24,634,036 |
| Warner Music Group Corporation Class A | | | | 504,700 | 16,841,839 |
| | | | | | 41,475,875 |
| Interactive media & services: 2.31% | | | | | |
| IAC/InterActiveCorp † | | | | 326,115 | 16,827,534 |
| ZoomInfo Technologies Incorporated † | | | | 596,457 | 14,738,452 |
| | | | | | 31,565,986 |
| Consumer discretionary: 12.40% | | | | | |
| Broadline retail: 3.85% | | | | | |
| Global-E Online Limited † | | | | 609,643 | 19,648,794 |
| MercadoLibre Incorporated † | | | | 24,932 | 32,861,872 |
| | | | | | 52,510,666 |
| Diversified consumer services: 0.67% | | | | | |
| Mister Car Wash Incorporated † | | | | 1,052,066 | 9,068,809 |
| Hotels, restaurants & leisure: 5.52% | | | | | |
| Chipotle Mexican Grill Incorporated † | | | | 13,021 | 22,243,644 |
| Hyatt Hotels Corporation Class A † | | | | 112,800 | 12,609,912 |
| MGM Resorts International | | | | 404,200 | 17,954,564 |
| Wingstop Incorporated | | | | 122,600 | 22,506,908 |
| | | | | | 75,315,028 |
| Leisure products: 1.20% | | | | | |
| Callaway Golf Company † | | | | 760,191 | 16,435,329 |
| Textiles, apparel & luxury goods: 1.16% | | | | | |
| On Holding AG Class A † | | | | 511,400 | 15,868,742 |
| Consumer staples: 2.55% | | | | | |
| Personal care products: 2.55% | | | | | |
| Bellring Brands Incorporated † | | | | 615,100 | 20,913,400 |
| Coty Incorporated Class A † | | | | 1,152,800 | 13,902,768 |
| | | | | | 34,816,168 |
| Financials: 4.32% | | | | | |
| Capital markets: 3.77% | | | | | |
| MarketAxess Holdings Incorporated | | | | 84,010 | 32,872,274 |
| Morningstar Incorporated | | | | 91,100 | 18,496,033 |
| | | | | | 51,368,307 |
| Insurance: 0.55% | | | | | |
| Goosehead Insurance Incorporated Class A † | | | | 143,546 | 7,493,101 |
| Health care: 20.89% | | | | | |
| Biotechnology: 4.97% | | | | | |
| Ascendis Pharma AS ADR † | | | | 97,247 | 10,426,823 |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery SMID Cap Growth Fund | 9
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Biotechnology (continued) | | | | | |
| CRISPR Therapeutics AG † | | | | 128,316 | $ 5,803,733 |
| Exact Sciences Corporation † | | | | 264,100 | 17,908,621 |
| Mirati Therapeutics Incorporated † | | | | 94,184 | 3,501,761 |
| Natera Incorporated † | | | | 233,700 | 12,975,024 |
| Sarepta Therapeutics Incorporated † | | | | 107,200 | 14,775,376 |
| Zentalis Pharmaceuticals Incorporated † | | | | 143,226 | 2,463,487 |
| | | | | | 67,854,825 |
| Health care equipment & supplies: 8.54% | | | | | |
| DexCom Incorporated † | | | | 116,456 | 13,529,858 |
| ICU Medical Incorporated † | | | | 111,500 | 18,393,040 |
| Inari Medical Incorporated † | | | | 215,740 | 13,319,788 |
| Inspire Medical Systems Incorporated † | | | | 93,100 | 21,791,917 |
| iRhythm Technologies Incorporated † | | | | 148,000 | 18,356,440 |
| Shockwave Medical Incorporated † | | | | 97,865 | 21,220,068 |
| TransMedics Group Incorporated † | | | | 130,300 | 9,867,619 |
| | | | | | 116,478,730 |
| Health care providers & services: 3.12% | | | | | |
| HealthEquity Incorporated † | | | | 325,300 | 19,098,363 |
| Option Care Health Incorporated † | | | | 737,709 | 23,437,015 |
| | | | | | 42,535,378 |
| Life sciences tools & services: 4.26% | | | | | |
| Bio-Rad Laboratories Incorporated Class A † | | | | 39,833 | 19,080,804 |
| Bio-Techne Corporation | | | | 363,600 | 26,975,484 |
| Waters Corporation † | | | | 39,000 | 12,075,570 |
| | | | | | 58,131,858 |
| Industrials: 22.19% | | | | | |
| Aerospace & defense: 2.18% | | | | | |
| Axon Enterprise Incorporated † | | | | 132,458 | 29,783,181 |
| Building products: 2.08% | | | | | |
| Advanced Drainage Systems Incorporated | | | | 155,076 | 13,058,956 |
| Trex Company Incorporated † | | | | 313,668 | 15,266,222 |
| | | | | | 28,325,178 |
| Commercial services & supplies: 6.45% | | | | | |
| Casella Waste Systems Incorporated Class A † | | | | 399,583 | 33,029,531 |
| Ritchie Bros. Auctioneers Incorporated | | | | 170,400 | 9,591,816 |
| Rollins Incorporated | | | | 507,200 | 19,035,216 |
| Tetra Tech Incorporated | | | | 179,000 | 26,296,890 |
| | | | | | 87,953,453 |
| Ground transportation: 2.79% | | | | | |
| J.B. Hunt Transport Services Incorporated | | | | 99,100 | 17,388,086 |
| Saia Incorporated † | | | | 75,948 | 20,663,932 |
| | | | | | 38,052,018 |
| Machinery: 1.49% | | | | | |
| RBC Bearings Incorporated † | | | | 87,600 | 20,387,148 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Discovery SMID Cap Growth Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Professional services: 3.95% | | | | | |
| FTI Consulting Incorporated † | | | | 96,600 | $ 19,064,010 |
| WNS Holdings Limited ADR † | | | | 374,023 | 34,847,723 |
| | | | | | 53,911,733 |
| Trading companies & distributors: 3.25% | | | | | |
| SiteOne Landscape Supply Incorporated † | | | | 153,257 | 20,976,286 |
| Watsco Incorporated | | | | 73,500 | 23,384,760 |
| | | | | | 44,361,046 |
| Information technology: 24.27% | | | | | |
| Electronic equipment, instruments & components: 6.22% | | | | | |
| Novanta Incorporated † | | | | 189,894 | 30,210,236 |
| Teledyne Technologies Incorporated † | | | | 94,472 | 42,262,988 |
| Zebra Technologies Corporation Class A † | | | | 39,000 | 12,402,000 |
| | | | | | 84,875,224 |
| IT services: 3.51% | | | | | |
| Globant SA † | | | | 140,445 | 23,034,384 |
| MongoDB Incorporated † | | | | 65,263 | 15,214,111 |
| StoneCo Limited Class A † | | | | 1,007,295 | 9,609,594 |
| | | | | | 47,858,089 |
| Semiconductors & semiconductor equipment: 4.52% | | | | | |
| Entegris Incorporated | | | | 213,900 | 17,541,939 |
| Impinj Incorporated † | | | | 183,300 | 24,840,816 |
| Monolithic Power Systems Incorporated | | | | 24,800 | 12,413,392 |
| Wolfspeed Incorporated † | | | | 106,500 | 6,917,175 |
| | | | | | 61,713,322 |
| Software: 10.02% | | | | | |
| BILL Holdings Incorporated † | | | | 171,714 | 13,932,874 |
| CCC Intelligent Solutions † | | | | 1,912,700 | 17,156,919 |
| Confluent Incorporated Class A † | | | | 704,600 | 16,959,722 |
| Fair Isaac Corporation † | | | | 34,300 | 24,102,267 |
| HubSpot Incorporated † | | | | 43,400 | 18,607,750 |
| Olo Incorporated Class A † | | | | 1,219,751 | 9,953,168 |
| Tyler Technologies Incorporated † | | | | 61,900 | 21,952,216 |
| Zscaler Incorporated † | | | | 119,600 | 13,972,868 |
| | | | | | 136,637,784 |
| Materials: 1.04% | | | | | |
| Metals & mining: 1.04% | | | | | |
| Allegheny Technologies Incorporated † | | | | 359,700 | 14,193,762 |
| Real estate: 3.99% | | | | | |
| Industrial REITs: 2.28% | | | | | |
| Rexford Industrial Realty Incorporated | | | | 522,365 | 31,159,072 |
| Residential REITs: 1.71% | | | | | |
| Equity Lifestyle Properties Incorporated | | | | 347,196 | 23,307,267 |
| Total Common stocks (Cost $1,155,549,030) | | | | | 1,323,437,079 |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery SMID Cap Growth Fund | 11
Portfolio of investments—March 31, 2023 (unaudited)
| | | Yield | | Shares | Value |
| Short-term investments: 3.32% | | | | | |
| Investment companies: 3.32% | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 4.69% | | 45,324,645 | $ 45,324,645 |
| Total Short-term investments (Cost $45,324,645) | | | | | 45,324,645 |
| Total investments in securities (Cost $1,200,873,675) | 100.32% | | | | 1,368,761,724 |
| Other assets and liabilities, net | (0.32) | | | | (4,428,503) |
| Total net assets | 100.00% | | | | $1,364,333,221 |
| † | Non-income-earning security |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
| Abbreviations: |
| ADR | American depositary receipt |
| REIT | Real estate investment trust |
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | $50,223,365 | $249,830,081 | $(254,728,801) | $ 0 | | $0 | | $ 45,324,645 | 45,324,645 | $ 721,288 |
Investments in affiliates no
longer held at end of period | | | | | | | | | | |
| Securities Lending Cash Investments LLC | 11,862,800 | 55,209,354 | (67,072,172) | 18 | | 0 | | 0 | 0 | 141,018 # |
| | | | | $18 | | $0 | | $45,324,645 | | $862,306 |
| # | Amount shown represents income before fees and rebates. |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Discovery SMID Cap Growth Fund
Statement of assets and liabilities—March 31, 2023 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $1,155,549,030)
| $ 1,323,437,079 |
Investments in affiliated securities, at value (cost $45,324,645)
| 45,324,645 |
Receivable for Fund shares sold
| 1,318,899 |
Receivable for dividends
| 538,495 |
Prepaid expenses and other assets
| 51,288 |
Total assets
| 1,370,670,406 |
| Liabilities | |
Payable for investments purchased
| 3,400,477 |
Payable for Fund shares redeemed
| 1,594,073 |
Management fee payable
| 901,031 |
Administration fees payable
| 156,084 |
Trustees’ fees and expenses payable
| 5,366 |
Distribution fee payable
| 2,373 |
Accrued expenses and other liabilities
| 277,781 |
Total liabilities
| 6,337,185 |
Total net assets
| $1,364,333,221 |
| Net assets consist of | |
Paid-in capital
| $ 1,268,234,714 |
Total distributable earnings
| 96,098,507 |
Total net assets
| $1,364,333,221 |
| Computation of net asset value and offering price per share | |
Net assets – Class A
| $ 431,486,941 |
Shares outstanding – Class A1
| 19,598,590 |
Net asset value per share – Class A
| $22.02 |
Maximum offering price per share – Class A2
| $23.36 |
Net assets – Class C
| $ 3,613,454 |
Shares outstanding – Class C1
| 228,577 |
Net asset value per share – Class C
| $15.81 |
Net assets – Class R6
| $ 365,414,809 |
Shares outstanding – Class R61
| 13,800,250 |
Net asset value per share – Class R6
| $26.48 |
Net assets – Administrator Class
| $ 55,779,501 |
Shares outstanding – Administrator Class1
| 2,364,362 |
Net asset value per share – Administrator Class
| $23.59 |
Net assets – Institutional Class
| $ 508,038,516 |
Shares outstanding – Institutional Class1
| 19,492,834 |
Net asset value per share – Institutional Class
| $26.06 |
| 1 | The Fund has an unlimited number of authorized shares. |
| 2 | Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery SMID Cap Growth Fund | 13
Statement of operations—six months ended March 31, 2023 (unaudited)
| | |
| Investment income | |
Dividends (net of foreign withholdings taxes of $36,947)
| $ 2,039,421 |
Income from affiliated securities
| 740,025 |
Total investment income
| 2,779,446 |
| Expenses | |
Management fee
| 5,166,825 |
| Administration fees | |
Class A
| 440,166 |
Class C
| 3,756 |
Class R6
| 54,343 |
Administrator Class
| 43,112 |
Institutional Class
| 336,695 |
| Shareholder servicing fees | |
Class A
| 523,426 |
Class C
| 4,456 |
Administrator Class
| 68,971 |
| Distribution fee | |
Class C
| 13,344 |
Custody and accounting fees
| 38,746 |
Professional fees
| 19,798 |
Registration fees
| 38,102 |
Shareholder report expenses
| 201 |
Trustees’ fees and expenses
| 11,088 |
Other fees and expenses
| 9,624 |
Total expenses
| 6,772,653 |
| Less: Fee waivers and/or expense reimbursements | |
Class A
| (24,544) |
Class C
| (129) |
Class R6
| (21,380) |
Administrator Class
| (595) |
Institutional Class
| (30,307) |
Net expenses
| 6,695,698 |
Net investment loss
| (3,916,252) |
| Realized and unrealized gains (losses) on investments | |
| Net realized gains (losses) on | |
Unaffiliated securities
| (37,812,309) |
Affiliated securities
| 18 |
Net realized losses on investments
| (37,812,291) |
Net change in unrealized gains (losses) on investments
| 211,943,758 |
Net realized and unrealized gains (losses) on investments
| 174,131,467 |
Net increase in net assets resulting from operations
| $170,215,215 |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Discovery SMID Cap Growth Fund
Statement of changes in net assets
| | | | | |
| | Six months ended
March 31, 2023
(unaudited) | Year ended
September 30, 2022 |
| Operations | | | | |
Net investment loss
| | $ (3,916,252) | | $ (17,116,503) |
Net realized gains (losses) on investments
| | (37,812,291) | | 74,988,101 |
Net change in unrealized gains (losses) on investments
| | 211,943,758 | | (1,160,043,505) |
Net increase (decrease) in net assets resulting from operations
| | 170,215,215 | | (1,102,171,907) |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class A
| | (5,764,741) | | (226,994,997) |
Class C
| | (68,656) | | (5,111,680) |
Class R6
| | (4,198,420) | | (165,661,046) |
Administrator Class
| | (911,280) | | (56,057,581) |
Institutional Class
| | (6,049,430) | | (256,462,316) |
Total distributions to shareholders
| | (16,992,527) | | (710,287,620) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class A
| 618,649 | 13,113,421 | 1,603,151 | 44,784,508 |
Class C
| 9,007 | 135,098 | 35,937 | 788,463 |
Class R6
| 1,599,866 | 39,863,599 | 5,128,157 | 167,424,619 |
Administrator Class
| 143,374 | 3,248,107 | 1,407,092 | 55,751,355 |
Institutional Class
| 2,195,990 | 54,634,029 | 5,577,521 | 182,260,658 |
| | | 110,994,254 | | 451,009,603 |
| Reinvestment of distributions | | | | |
Class A
| 273,924 | 5,609,967 | 6,880,085 | 220,025,107 |
Class C
| 4,404 | 64,912 | 216,386 | 5,043,951 |
Class R6
| 162,483 | 3,997,088 | 4,131,760 | 157,667,968 |
Administrator Class
| 41,485 | 910,181 | 1,638,234 | 55,994,841 |
Institutional Class
| 236,456 | 5,726,963 | 6,386,688 | 240,267,206 |
| | | 16,309,111 | | 678,999,073 |
| Payment for shares redeemed | | | | |
Class A
| (2,272,960) | (47,165,093) | (5,937,218) | (162,852,481) |
Class C
| (38,124) | (566,724) | (466,458) | (10,122,285) |
Class R6
| (2,908,645) | (72,434,901) | (8,590,366) | (304,144,512) |
Administrator Class
| (1,169,741) | (26,864,626) | (3,489,704) | (108,890,307) |
Institutional Class
| (5,172,887) | (128,173,771) | (10,124,985) | (316,152,662) |
| | | (275,205,115) | | (902,162,247) |
Net increase (decrease) in net assets resulting from capital share transactions
| | (147,901,750) | | 227,846,429 |
Total increase (decrease) in net assets
| | 5,320,938 | | (1,584,613,098) |
| Net assets | | | | |
Beginning of period
| | 1,359,012,283 | | 2,943,625,381 |
End of period
| | $1,364,333,221 | | $ 1,359,012,283 |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery SMID Cap Growth Fund | 15
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class A | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $19.73 | $47.48 | $39.95 | $33.24 | $38.03 | $36.47 |
Net investment loss
| (0.08) 1 | (0.30) 1 | (0.53) | (0.31) | (0.26) | (0.26) |
Net realized and unrealized gains (losses) on investments
| 2.66 | (14.84) | 10.51 | 11.37 | 0.53 | 7.85 |
Total from investment operations
| 2.58 | (15.14) | 9.98 | 11.06 | 0.27 | 7.59 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| (0.29) | (12.61) | (2.45) | (4.35) | (5.06) | (6.03) |
Net asset value, end of period
| $22.02 | $19.73 | $47.48 | $39.95 | $33.24 | $38.03 |
Total return2
| 13.11% | (42.03)% | 25.48% | 37.49% | 3.81% | 23.86% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.23% | 1.21% | 1.19% | 1.21% | 1.21% | 1.20% |
Net expenses
| 1.22% | 1.19% | 1.18% | 1.19% | 1.20% | 1.20% |
Net investment loss
| (0.81)% | (1.08)% | (1.08)% | (0.91)% | (0.77)% | (0.69)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 30% | 58% | 51% | 53% | 71% | 67% |
Net assets, end of period (000s omitted)
| $431,487 | $414,018 | $875,257 | $762,758 | $627,336 | $676,930 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Discovery SMID Cap Growth Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class C | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $14.30 | $38.31 | $32.88 | $28.27 | $33.46 | $32.99 |
Net investment loss
| (0.12) 1 | (0.42) 1 | (0.70) 1 | (0.45) 1 | (0.41) 1 | (0.46) |
Net realized and unrealized gains (losses) on investments
| 1.92 | (10.98) | 8.58 | 9.41 | 0.28 | 6.96 |
Total from investment operations
| 1.80 | (11.40) | 7.88 | 8.96 | (0.13) | 6.50 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| (0.29) | (12.61) | (2.45) | (4.35) | (5.06) | (6.03) |
Net asset value, end of period
| $15.81 | $14.30 | $38.31 | $32.88 | $28.27 | $33.46 |
Total return2
| 12.70% | (42.48)% | 24.52% | 36.54% | 3.01% | 22.94% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.98% | 1.94% | 1.94% | 1.96% | 1.95% | 1.95% |
Net expenses
| 1.97% | 1.94% | 1.94% | 1.96% | 1.95% | 1.95% |
Net investment loss
| (1.56)% | (1.84)% | (1.84)% | (1.66)% | (1.51)% | (1.45)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 30% | 58% | 51% | 53% | 71% | 67% |
Net assets, end of period (000s omitted)
| $3,613 | $3,622 | $17,909 | $28,509 | $30,982 | $40,860 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery SMID Cap Growth Fund | 17
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class R6 | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $23.63 | $54.02 | $44.98 | $36.76 | $41.26 | $38.93 |
Net investment loss
| (0.02) | (0.22) 1 | (0.35) 1 | (0.18) 1 | (0.12) 1 | (0.10) 1 |
Net realized and unrealized gains (losses) on investments
| 3.16 | (17.56) | 11.84 | 12.75 | 0.68 | 8.46 |
Total from investment operations
| 3.14 | (17.78) | 11.49 | 12.57 | 0.56 | 8.36 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| (0.29) | (12.61) | (2.45) | (4.35) | (5.06) | (6.03) |
Net asset value, end of period
| $26.48 | $23.63 | $54.02 | $44.98 | $36.76 | $41.26 |
Total return2
| 13.36% | (41.80)% | 26.01% | 38.06% | 4.26% | 24.39% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.80% | 0.78% | 0.76% | 0.78% | 0.77% | 0.78% |
Net expenses
| 0.79% | 0.78% | 0.76% | 0.78% | 0.77% | 0.78% |
Net investment loss
| (0.38)% | (0.66)% | (0.66)% | (0.50)% | (0.33)% | (0.26)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 30% | 58% | 51% | 53% | 71% | 67% |
Net assets, end of period (000s omitted)
| $365,415 | $353,183 | $771,279 | $597,851 | $405,610 | $530,879 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Discovery SMID Cap Growth Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Administrator Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $21.12 | $49.83 | $41.79 | $34.55 | $39.27 | $37.44 |
Net investment loss
| (0.08) 1 | (0.30) 1 | (0.49) 1 | (0.29) 1 | (0.23) 1 | (0.23) |
Net realized and unrealized gains (losses) on investments
| 2.84 | (15.80) | 10.98 | 11.88 | 0.57 | 8.09 |
Total from investment operations
| 2.76 | (16.10) | 10.49 | 11.59 | 0.34 | 7.86 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| (0.29) | (12.61) | (2.45) | (4.35) | (5.06) | (6.03) |
Net asset value, end of period
| $23.59 | $21.12 | $49.83 | $41.79 | $34.55 | $39.27 |
Total return2
| 13.15% | (41.98)% | 25.58% | 37.61% | 3.88% | 23.97% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.11% | 1.09% | 1.11% | 1.13% | 1.13% | 1.12% |
Net expenses
| 1.11% | 1.09% | 1.11% | 1.13% | 1.13% | 1.12% |
Net investment loss
| (0.71)% | (0.98)% | (1.01)% | (0.84)% | (0.70)% | (0.62)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 30% | 58% | 51% | 53% | 71% | 67% |
Net assets, end of period (000s omitted)
| $55,780 | $70,724 | $189,022 | $374,366 | $333,814 | $353,042 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery SMID Cap Growth Fund | 19
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Institutional Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $23.27 | $53.45 | $44.57 | $36.50 | $41.05 | $38.79 |
Net investment loss
| (0.06) 1 | (0.25) 1 | (0.40) 1 | (0.21) 1 | (0.15) 1 | (0.18) |
Net realized and unrealized gains (losses) on investments
| 3.14 | (17.32) | 11.73 | 12.63 | 0.66 | 8.47 |
Total from investment operations
| 3.08 | (17.57) | 11.33 | 12.42 | 0.51 | 8.29 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| (0.29) | (12.61) | (2.45) | (4.35) | (5.06) | (6.03) |
Net asset value, end of period
| $26.06 | $23.27 | $53.45 | $44.57 | $36.50 | $41.05 |
Total return2
| 13.31% | (41.88)% | 25.91% | 37.91% | 4.15% | 24.25% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.90% | 0.88% | 0.86% | 0.88% | 0.87% | 0.87% |
Net expenses
| 0.89% | 0.88% | 0.86% | 0.88% | 0.87% | 0.87% |
Net investment loss
| (0.49)% | (0.76)% | (0.76)% | (0.58)% | (0.42)% | (0.36)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 30% | 58% | 51% | 53% | 71% | 67% |
Net assets, end of period (000s omitted)
| $508,039 | $517,465 | $1,090,159 | $908,157 | $1,096,888 | $1,352,027 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Discovery SMID Cap Growth Fund
Notes to financial statements (unaudited)
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 Discovery SMID Cap Growth Fund (the "Fund") which is a diversified series of the Trust.
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
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC ("Allspring Funds Management"), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee 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. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio of investments.
Securities lending
During the period, the Fund participated in a program to lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities were on loan, the Fund received interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions was invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Effective at the close of business on March 29, 2023, the Fund is no longer participating in the securities lending program and the Securities Lending Fund was liquidated. Securities Lending Fund was managed by Allspring Funds Management and was subadvised by Allspring Global Investments, LLC ("Allspring Investments"), an affiliate of Allspring Funds Management and wholly owned subsidiary of Allspring Global Investments Holdings, LLC. Allspring Funds Management received an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increased. All of the fees received by Allspring Funds Management were paid to Allspring Investments for its services as subadviser.
Investments in Securities Lending Fund were valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the
Allspring Discovery SMID Cap Growth Fund | 21
Notes to financial statements (unaudited)
collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
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.
Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
Distributions to shareholders
Distributions to shareholders from net investment income and any net realized gains 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, as applicable, 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 March 31, 2023, the aggregate cost of all investments for federal income tax purposes was $1,234,848,698 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $ 606,737,637 |
| Gross unrealized losses | (472,824,611) |
| Net unrealized gains | $ 133,913,026 |
As of September 30, 2022, the Fund had a qualified late-year ordinary loss of $10,593,725 which was recognized on the first day of the current fiscal year.
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 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.
22 | Allspring Discovery SMID Cap Growth Fund
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2023:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Common stocks | | | | |
| Communication services | $ 73,041,861 | $0 | $0 | $ 73,041,861 |
| Consumer discretionary | 169,198,574 | 0 | 0 | 169,198,574 |
| Consumer staples | 34,816,168 | 0 | 0 | 34,816,168 |
| Financials | 58,861,408 | 0 | 0 | 58,861,408 |
| Health care | 285,000,791 | 0 | 0 | 285,000,791 |
| Industrials | 302,773,757 | 0 | 0 | 302,773,757 |
| Information technology | 331,084,419 | 0 | 0 | 331,084,419 |
| Materials | 14,193,762 | 0 | 0 | 14,193,762 |
| Real estate | 54,466,339 | 0 | 0 | 54,466,339 |
| Short-term investments | | | | |
| Investment companies | 45,324,645 | 0 | 0 | 45,324,645 |
| Total assets | $1,368,761,724 | $0 | $0 | $1,368,761,724 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended March 31, 2023, 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 $500 million | 0.800% |
| Next $500 million | 0.750 |
| Next $1 billion | 0.700 |
| Next $2 billion | 0.675 |
| Next $1 billion | 0.650 |
| Next $5 billion | 0.640 |
| Over $10 billion | 0.630 |
For the six months ended March 31, 2023, the management fee was equivalent to an annual rate of 0.75% 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 Investments is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.45% and declining to 0.35% as the average daily net assets of the Fund increase.
Allspring Discovery SMID Cap Growth Fund | 23
Notes to financial statements (unaudited)
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 | 0.21% |
| Class C | 0.21 |
| Class R6 | 0.03 |
| Administrator Class | 0.13 |
| Institutional Class | 0.13 |
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 January 31, 2024 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. As of March 31, 2023, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class A | 1.22% |
| Class C | 1.97 |
| Class R6 | 0.79 |
| Administrator Class | 1.14 |
| Institutional Class | 0.89 |
Distribution fee
The Trust has adopted a distribution plan for Class C shares 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"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended March 31, 2023, Allspring Funds Distributor received $708 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended March 31, 2023.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
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.
24 | Allspring Discovery SMID Cap Growth Fund
Notes to financial statements (unaudited)
5. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended March 31, 2023 were $402,203,216 and $563,019,884, respectively.
6. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended March 31, 2023, there were no borrowings by the Fund under the agreement.
7. CONCENTRATION RISKS
As of the end of the period, the Fund concentrated its portfolio of investments in the health care and information technology sectors. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.
8. 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.
9. REDEMPTIONS IN-KIND
During the year ended September 30, 2022, the Fund redeemed assets through in-kind redemptions for shareholders in Class R6. The redemption transactions are reflected on the Statement of Changes in Net Assets. The date of the redemption transaction, value of securities issued from the redemption, cash paid, realized gains (losses) and the percentage of the Fund redeemed by the shareholder was as follows:
| Date | Value of
securities issued | Cash | Realized
gains (losses) | % of the
Fund |
| 12-17-2021 | $61,696,045 | $1,402,107 | $22,077,191 | 2.43% |
Allspring Discovery SMID Cap Growth Fund | 25
Other information (unaudited)
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.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
26 | Allspring Discovery SMID Cap Growth Fund
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 127 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 1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203. 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 Foundation (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. Member of the Advisory Board of CEF of East Central Florida. 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 | Distinguished Visiting Fellow at the Hoover Institution since 2022. 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 |
Allspring Discovery SMID Cap Growth Fund | 27
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, from 2007-2022. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. | 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 | Retired. Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer, Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
28 | Allspring Discovery SMID Cap Growth Fund
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 and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, from 2019 to 2022 and 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. |
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 from 2005 to 2010. |
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) | Chief Legal Officer, since 2022; 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.
Allspring Discovery SMID Cap Growth Fund | 29
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
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.
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.
© 2023 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-04042023-0026pmlf 05-23
SAR3321 03-23
Semi-Annual Report
March 31, 2023
Allspring
Discovery Mid Cap Growth Fund
The views expressed and any forward-looking statements are as of March 31, 2023, 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.
Allspring Discovery Mid Cap Growth Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Discovery Mid Cap Growth Fund for the six-month period that ended March 31, 2023. Globally, stocks and bonds rebounded strongly despite ongoing volatility. While navigating persistently high inflation and the impact of ongoing aggressive central bank rate hikes, markets rallied on signs of declining inflation, anticipation of an end to the central bank monetary tightening cycle, and the stimulating impact of China removing its strict COVID-19 lockdowns in December. For the six-month period, domestic U.S. and global stocks and bonds had strong results. After suffering deep and broad losses through 2022, recent fixed income performance benefited from a base of higher yields that can now generate higher income.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 15.62%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 22.13%, while the MSCI EM Index (Net) (USD)3 returned 14.04%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 4.89%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned 10.07%, the Bloomberg Municipal Bond Index6 gained 7.00%, and the ICE BofA U.S. High Yield Index7 returned 7.89%.
Despite high inflation and central bank rate hikes, markets rally.
Equities had a reprieve in October. Value stocks and small caps fared best. Globally, developed markets outpaced emerging market equities, which were hurt by weakness among Chinese stocks. Central banks continued to try to curtail high inflation with aggressive interest rate hikes. Geopolitical risks persisted, including the ongoing Russia-Ukraine war and economic, financial market, and political turmoil in the U.K. Concerns over Europe’s energy crisis eased thanks to unseasonably warm weather and plentiful gas on hand. The U.S. labor market continued its resilience against rising prices as unemployment remained near a record low.
Stocks and bonds rallied in November. Economic news was encouraging, driven by U.S. labor market strength. Although central banks kept raising rates, hopes rose for an easing in the pace of rate hikes and a possible end to central bank monetary tightening in 2023. Although inflation remained at record highs in the eurozone, we began to see signs of a possible decline in inflationary pressures as U.S. inflation moderated, with a 7.1% annual price rise in November and a monthly price increase of just 0.1%. China’s economic data remained weak, reflecting its zero-COVID-19 policy.
| 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 2023. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring Discovery Mid Cap Growth Fund
Letter to shareholders (unaudited)
Financial markets cooled in December, with U.S. equities posting negative overall results in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever with flat overall monthly returns as markets weighed the hopes for an end to the monetary tightening cycle with the reality that central banks had not completed their jobs yet. U.S. Consumer Price Index (CPI)1 data showed a strong consistent trend downward, which brought down the 12-month CPI to 6.5% in December from 9.1% in June. Other countries and regions reported still-high but declining inflation rates as the year winded down.
The year 2023 began with a rally across global equities and fixed income securities. Investor optimism rose in response to data indicating declining inflation rates and the reopening of China’s economy with the abrupt end to its zero-COVID-19 policy. The U.S. reported surprisingly strong job gains––employers added more than 500,000 jobs––and unemployment fell to 3.4%, the lowest level since 1969. Meanwhile, wage growth, seen as a potential contributor to ongoing high inflation, continued to moderate. All eyes remained fixed on the Federal Reserve (Fed) and on how many more rate hikes remain in this tightening cycle. The 0.25% federal funds rate hike announced in January was the Fed’s smallest rate increase since March 2022.
Financial markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks will likely continue their monetary tightening cycle for longer than markets had priced in. In this environment—where strong economic data is seen as bad news—the resilient U.S. labor market was seen as a negative while the inflation rate has not been falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the Bank of England and the European Central Bank both raised rates by 0.50%. At this stage in the economic cycle, the overriding question remained: “What will central banks do?” In February, the answer appeared to be: “Move rates higher for longer.”
The collapse of Silicon Valley Bank in March, the second-largest banking failure in U.S. history, led to a classic bank run that spread to Europe, where Switzerland’s Credit Suisse was taken over by its rival, UBS. The sudden banking industry uncertainty led some clients of regional banks to transfer deposits to a handful of U.S. banking giants while bank shareholders sold stock. The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. The U.S. labor market remained resilient. The euro-area composite Purchasing Managers’ Index2 rose to 53.70, indicating expansion, for March. And China’s economy continued to rebound after the removal of its COVID-19 lockdown. Inflation rates in the U.S., the U.K., and Europe all remained higher than central bank targets, leading to additional rate hikes in March.
“ The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China.”
| 1 | The U.S. 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. |
| 2 | The Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. You cannot invest directly in an index. |
Allspring Discovery Mid Cap Growth Fund | 3
Letter to shareholders (unaudited)
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.
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
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.
4 | Allspring Discovery Mid Cap Growth Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks long-term capital appreciation. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Michael T. Smith, CFA, Christopher J. Warner, CFA |
| Average annual total returns (%) as of March 31, 2023 |
| | | 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 (SENAX) | 2-24-2000 | -25.06 | 5.05 | 8.44 | | -20.50 | 6.30 | 9.09 | | 1.23 | 1.18 |
| Class C (WENCX) | 3-31-2008 | -22.12 | 5.50 | 8.43 | | -21.12 | 5.50 | 8.43 | | 1.98 | 1.93 |
| Class R6 (WENRX)3 | 10-31-2014 | – | – | – | | -20.20 | 6.71 | 9.49 | | 0.80 | 0.80 |
| Administrator Class (SEPKX) | 8-30-2002 | – | – | – | | -20.43 | 6.39 | 9.19 | | 1.15 | 1.10 |
| Institutional Class (WFEIX) | 6-30-2003 | – | – | – | | -20.25 | 6.65 | 9.44 | | 0.90 | 0.85 |
| Russell Midcap® Growth Index4 | – | – | – | – | | -8.52 | 9.07 | 11.17 | | – | – |
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 return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. 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.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
For Class A shares, the maximum front-end sales charge is 5.75%. 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. Class R6, Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
| 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 January 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.18% for Class A, 1.93% for Class C, 0.80% for Class R6, 1.10% for Administrator Class, and 0.85% for Institutional 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. 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 Class R6 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 Class R6 shares would be higher. |
| 4 | The Russell Midcap® Growth Index measures the performance of those Russell Midcap companies with higher price/book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000® Growth index. You cannot invest directly in an index. |
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
6 | Allspring Discovery Mid Cap Growth Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of March 31, 20231 |
| Cadence Design Systems Incorporated | 4.50 |
| Waste Connections Incorporated | 3.38 |
| Teledyne Technologies Incorporated | 3.21 |
| Chipotle Mexican Grill Incorporated | 3.13 |
| DexCom Incorporated | 3.09 |
| MercadoLibre Incorporated | 2.98 |
| MSCI Incorporated | 2.69 |
| lululemon athletica Incorporated | 2.63 |
| Crowdstrike Holdings Incorporated Class A | 2.55 |
| Ferrari NV | 2.12 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Sector allocation as of March 31, 20231 |
| 1 | Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Discovery Mid Cap Growth Fund | 7
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 October 1, 2022 to March 31, 2023.
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 sales charges (loads) and 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
10-1-2022 | Ending
account value
3-31-2023 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class A | | | | |
| Actual | $1,000.00 | $1,133.31 | $ 6.28 | 1.18% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.05 | $ 5.94 | 1.18% |
| Class C | | | | |
| Actual | $1,000.00 | $1,129.09 | $10.24 | 1.93% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,015.31 | $ 9.70 | 1.93% |
| Class R6 | | | | |
| Actual | $1,000.00 | $1,135.68 | $ 4.26 | 0.80% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.94 | $ 4.03 | 0.80% |
| Administrator Class | | | | |
| Actual | $1,000.00 | $1,134.20 | $ 5.85 | 1.10% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.45 | $ 5.54 | 1.10% |
| Institutional Class | | | | |
| Actual | $1,000.00 | $1,135.36 | $ 4.53 | 0.85% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.69 | $ 4.28 | 0.85% |
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 182 divided by 365 (to reflect the one-half-year period).
8 | Allspring Discovery Mid Cap Growth Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Common stocks: 99.40% | | | | | |
| Communication services: 6.17% | | | | | |
| Entertainment: 3.36% | | | | | |
| Liberty Media Corporation † | | | | 160,700 | $ 12,025,181 |
| Spotify Technology SA † | | | | 65,133 | 8,703,071 |
| | | | | | 20,728,252 |
| Interactive media & services: 1.01% | | | | | |
| ZoomInfo Technologies Incorporated † | | | | 250,696 | 6,194,698 |
| Media: 1.80% | | | | | |
| The Trade Desk Incorporated Class A † | | | | 182,500 | 11,116,075 |
| Consumer discretionary: 16.92% | | | | | |
| Automobiles: 2.12% | | | | | |
| Ferrari NV | | | | 48,216 | 13,063,642 |
| Broadline retail: 4.18% | | | | | |
| Global-E Online Limited † | | | | 230,580 | 7,431,593 |
| MercadoLibre Incorporated † | | | | 13,942 | 18,376,393 |
| | | | | | 25,807,986 |
| Hotels, restaurants & leisure: 6.74% | | | | | |
| Chipotle Mexican Grill Incorporated † | | | | 11,315 | 19,329,301 |
| Domino's Pizza Incorporated | | | | 18,109 | 5,973,616 |
| Hyatt Hotels Corporation Class A † | | | | 69,400 | 7,758,226 |
| MGM Resorts International | | | | 191,100 | 8,488,662 |
| | | | | | 41,549,805 |
| Leisure products: 1.25% | | | | | |
| Callaway Golf Company † | | | | 357,656 | 7,732,523 |
| Textiles, apparel & luxury goods: 2.63% | | | | | |
| lululemon athletica Incorporated † | | | | 44,497 | 16,205,362 |
| Consumer staples: 1.15% | | | | | |
| Beverages: 1.15% | | | | | |
| Constellation Brands Incorporated Class A | | | | 31,500 | 7,115,535 |
| Financials: 5.93% | | | | | |
| Capital markets: 4.41% | | | | | |
| MarketAxess Holdings Incorporated | | | | 27,200 | 10,643,088 |
| MSCI Incorporated | | | | 29,600 | 16,566,824 |
| | | | | | 27,209,912 |
| Financial services: 1.52% | | | | | |
| Adyen NV ADR † | | | | 592,200 | 9,380,448 |
| Health care: 20.70% | | | | | |
| Biotechnology: 1.64% | | | | | |
| Exact Sciences Corporation † | | | | 99,200 | 6,726,752 |
| Sarepta Therapeutics Incorporated † | | | | 24,400 | 3,363,052 |
| | | | | | 10,089,804 |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery Mid Cap Growth Fund | 9
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Health care equipment & supplies: 9.13% | | | | | |
| DexCom Incorporated † | | | | 164,068 | $ 19,061,420 |
| IDEXX Laboratories Incorporated † | | | | 25,600 | 12,802,048 |
| Inari Medical Incorporated † | | | | 82,216 | 5,076,016 |
| Inspire Medical Systems Incorporated † | | | | 37,581 | 8,796,585 |
| Insulet Corporation † | | | | 33,152 | 10,574,162 |
| | | | | | 56,310,231 |
| Health care providers & services: 1.32% | | | | | |
| Centene Corporation † | | | | 128,780 | 8,140,184 |
| Health care technology: 2.05% | | | | | |
| Veeva Systems Incorporated Class A † | | | | 68,900 | 12,663,131 |
| Life sciences tools & services: 6.56% | | | | | |
| Azenta Incorporated † | | | | 91,027 | 4,061,625 |
| Bio-Rad Laboratories Incorporated Class A † | | | | 21,194 | 10,152,350 |
| Bio-Techne Corporation | | | | 147,184 | 10,919,581 |
| Illumina Incorporated † | | | | 19,200 | 4,464,960 |
| Waters Corporation † | | | | 35,100 | 10,868,013 |
| | | | | | 40,466,529 |
| Industrials: 19.90% | | | | | |
| Aerospace & defense: 2.05% | | | | | |
| Axon Enterprise Incorporated † | | | | 56,228 | 12,642,866 |
| Building products: 0.95% | | | | | |
| Trex Company Incorporated † | | | | 120,200 | 5,850,134 |
| Commercial services & supplies: 7.51% | | | | | |
| Ritchie Bros. Auctioneers Incorporated | | | | 68,500 | 3,855,865 |
| Rollins Incorporated | | | | 290,400 | 10,898,712 |
| Tetra Tech Incorporated | | | | 73,000 | 10,724,430 |
| Waste Connections Incorporated | | | | 150,106 | 20,875,241 |
| | | | | | 46,354,248 |
| Ground transportation: 2.96% | | | | | |
| J.B. Hunt Transport Services Incorporated | | | | 49,600 | 8,702,816 |
| Saia Incorporated † | | | | 35,167 | 9,568,237 |
| | | | | | 18,271,053 |
| Machinery: 1.45% | | | | | |
| RBC Bearings Incorporated † | | | | 38,500 | 8,960,105 |
| Professional services: 1.81% | | | | | |
| Equifax Incorporated | | | | 54,881 | 11,132,062 |
| Trading companies & distributors: 3.17% | | | | | |
| SiteOne Landscape Supply Incorporated † | | | | 72,188 | 9,880,372 |
| Watsco Incorporated | | | | 30,400 | 9,672,064 |
| | | | | | 19,552,436 |
| Information technology: 25.04% | | | | | |
| Electronic equipment, instruments & components: 6.20% | | | | | |
| Novanta Incorporated † | | | | 48,000 | 7,636,320 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Discovery Mid Cap Growth Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Electronic equipment, instruments & components (continued) | | | | | |
| Teledyne Technologies Incorporated † | | | | 44,238 | $ 19,790,312 |
| Zebra Technologies Corporation Class A † | | | | 33,987 | 10,807,866 |
| | | | | | 38,234,498 |
| IT services: 2.22% | | | | | |
| Globant SA † | | | | 52,618 | 8,629,878 |
| Snowflake Incorporated Class A † | | | | 32,651 | 5,037,723 |
| | | | | | 13,667,601 |
| Semiconductors & semiconductor equipment: 5.08% | | | | | |
| Advanced Micro Devices Incorporated † | | | | 98,128 | 9,617,525 |
| Enphase Energy Incorporated † | | | | 42,700 | 8,978,956 |
| Monolithic Power Systems Incorporated | | | | 20,300 | 10,160,962 |
| Wolfspeed Incorporated † | | | | 40,100 | 2,604,495 |
| | | | | | 31,361,938 |
| Software: 11.54% | | | | | |
| BILL Holdings Incorporated † | | | | 78,554 | 6,373,872 |
| Cadence Design Systems Incorporated † | | | | 132,165 | 27,766,545 |
| Crowdstrike Holdings Incorporated Class A † | | | | 114,463 | 15,711,191 |
| Datadog Incorporated Class A † | | | | 131,854 | 9,580,512 |
| Tyler Technologies Incorporated † | | | | 33,200 | 11,774,048 |
| | | | | | 71,206,168 |
| Real estate: 3.59% | | | | | |
| Industrial REITs: 1.56% | | | | | |
| Rexford Industrial Realty Incorporated | | | | 161,500 | 9,633,475 |
| Specialized REITs: 2.03% | | | | | |
| SBA Communications Corporation | | | | 47,969 | 12,523,267 |
| Total Common stocks (Cost $501,158,017) | | | | | 613,163,968 |
| | | Yield | | | |
| Short-term investments: 0.94% | | | | | |
| Investment companies: 0.94% | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 4.69% | | 5,782,243 | 5,782,243 |
| Total Short-term investments (Cost $5,782,243) | | | | | 5,782,243 |
| Total investments in securities (Cost $506,940,260) | 100.34% | | | | 618,946,211 |
| Other assets and liabilities, net | (0.34) | | | | (2,077,518) |
| Total net assets | 100.00% | | | | $616,868,693 |
| † | Non-income-earning security |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
| Abbreviations: |
| ADR | American depositary receipt |
| REIT | Real estate investment trust |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery Mid Cap Growth Fund | 11
Portfolio of investments—March 31, 2023 (unaudited)
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | $19,501,650 | $83,926,196 | $(97,645,603) | $ 0 | | $0 | | $ 5,782,243 | 5,782,243 | $ 202,770 |
Investments in affiliates no longer
held at end of period | | | | | | | | | | |
| Securities Lending Cash Investments LLC | 0 | 6,687,650 | (6,687,471) | (179) | | 0 | | 0 | 0 | 13,209 # |
| | | | | $ (179) | | $0 | | $5,782,243 | | $215,979 |
| # | Amount shown represents income before fees and rebates. |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Discovery Mid Cap Growth Fund
Statement of assets and liabilities—March 31, 2023 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $501,158,017)
| $ 613,163,968 |
Investments in affiliated securities, at value (cost $5,782,243)
| 5,782,243 |
Cash
| 29 |
Receivable for dividends
| 123,360 |
Receivable for Fund shares sold
| 30,348 |
Prepaid expenses and other assets
| 123,765 |
Total assets
| 619,223,713 |
| Liabilities | |
Payable for Fund shares redeemed
| 1,614,874 |
Management fee payable
| 372,624 |
Administration fees payable
| 102,286 |
Trustees’ fees and expenses payable
| 2,342 |
Distribution fee payable
| 579 |
Accrued expenses and other liabilities
| 262,315 |
Total liabilities
| 2,355,020 |
Total net assets
| $616,868,693 |
| Net assets consist of | |
Paid-in capital
| $ 545,909,520 |
Total distributable earnings
| 70,959,173 |
Total net assets
| $616,868,693 |
| Computation of net asset value and offering price per share | |
Net assets – Class A
| $ 526,644,771 |
Shares outstanding – Class A1
| 12,932,005 |
Net asset value per share – Class A
| $40.72 |
Maximum offering price per share – Class A2
| $43.20 |
Net assets – Class C
| $ 875,019 |
Shares outstanding – Class C1
| 27,556 |
Net asset value per share – Class C
| $31.75 |
Net assets – Class R6
| $ 56,299,767 |
Shares outstanding – Class R61
| 1,163,724 |
Net asset value per share – Class R6
| $48.38 |
Net assets – Administrator Class
| $ 2,955,553 |
Shares outstanding – Administrator Class1
| 66,618 |
Net asset value per share – Administrator Class
| $44.37 |
Net assets – Institutional Class
| $ 30,093,583 |
Shares outstanding – Institutional Class1
| 626,111 |
Net asset value per share – Institutional Class
| $48.06 |
| 1 | The Fund has an unlimited number of authorized shares. |
| 2 | Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery Mid Cap Growth Fund | 13
Statement of operations—six months ended March 31, 2023 (unaudited)
| | |
| Investment income | |
Dividends (net of foreign withholdings taxes of $30,272)
| $ 853,305 |
Income from affiliated securities
| 203,716 |
Total investment income
| 1,057,021 |
| Expenses | |
Management fee
| 2,229,235 |
| Administration fees | |
Class A
| 532,060 |
Class C
| 946 |
Class R6
| 8,061 |
Administrator Class
| 2,034 |
Institutional Class
| 21,628 |
| Shareholder servicing fees | |
Class A
| 632,335 |
Class C
| 1,121 |
Administrator Class
| 3,555 |
| Distribution fee | |
Class C
| 3,358 |
Custody and accounting fees
| 29,169 |
Professional fees
| 25,504 |
Registration fees
| 24,099 |
Shareholder report expenses
| 8,953 |
Trustees’ fees and expenses
| 10,937 |
Other fees and expenses
| 7,229 |
Total expenses
| 3,540,224 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level
| (32,266) |
Class A
| (127,029) |
Class C
| (181) |
Administrator Class
| (471) |
Institutional Class
| (8,341) |
Net expenses
| 3,371,936 |
Net investment loss
| (2,314,915) |
| Realized and unrealized gains (losses) on investments | |
| Net realized losses on | |
Unaffiliated securities
| (8,292,350) |
Affiliated securities
| (179) |
Net realized losses on investments
| (8,292,529) |
Net change in unrealized gains (losses) on investments
| 85,816,987 |
Net realized and unrealized gains (losses) on investments
| 77,524,458 |
Net increase in net assets resulting from operations
| $75,209,543 |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Discovery Mid Cap Growth Fund
Statement of changes in net assets
| | | | | |
| | Six months ended
March 31, 2023
(unaudited) | Year ended
September 30, 2022 |
| Operations | | | | |
Net investment loss
| | $ (2,314,915) | | $ (8,464,826) |
Net realized losses on investments
| | (8,292,529) | | (24,340,791) |
Net change in unrealized gains (losses) on investments
| | 85,816,987 | | (459,655,915) |
Net increase (decrease) in net assets resulting from operations
| | 75,209,543 | | (492,461,532) |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class A
| | 0 | | (144,445,304) |
Class C
| | 0 | | (442,606) |
Class R6
| | 0 | | (12,175,959) |
Administrator Class
| | 0 | | (1,511,423) |
Institutional Class
| | 0 | | (9,781,443) |
Total distributions to shareholders
| | 0 | | (168,356,735) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class A
| 48,554 | 1,860,745 | 206,972 | 12,378,239 |
Class C
| 1,264 | 37,493 | 8,622 | 394,228 |
Class R6
| 56,555 | 2,549,801 | 157,592 | 9,697,741 |
Administrator Class
| 1,753 | 72,067 | 50,499 | 3,351,136 |
Institutional Class
| 80,279 | 3,571,926 | 348,630 | 19,291,344 |
| | | 8,092,032 | | 45,112,688 |
| Reinvestment of distributions | | | | |
Class A
| 0 | 0 | 2,181,619 | 136,874,615 |
Class C
| 0 | 0 | 8,761 | 432,892 |
Class R6
| 0 | 0 | 158,244 | 11,736,955 |
Administrator Class
| 0 | 0 | 21,525 | 1,469,697 |
Institutional Class
| 0 | 0 | 125,544 | 9,257,639 |
| | | 0 | | 159,771,798 |
| Payment for shares redeemed | | | | |
Class A
| (776,161) | (29,627,076) | (1,753,139) | (89,115,356) |
Class C
| (7,238) | (215,198) | (24,052) | (901,071) |
Class R6
| (92,094) | (4,134,358) | (193,317) | (11,541,702) |
Administrator Class
| (15,557) | (663,824) | (124,006) | (7,020,368) |
Institutional Class
| (297,800) | (13,367,020) | (528,346) | (30,048,488) |
| | | (48,007,476) | | (138,626,985) |
Net increase (decrease) in net assets resulting from capital share transactions
| | (39,915,444) | | 66,257,501 |
Total increase (decrease) in net assets
| | 35,294,099 | | (594,560,766) |
| Net assets | | | | |
Beginning of period
| | 581,574,594 | | 1,176,135,360 |
End of period
| | $616,868,693 | | $ 581,574,594 |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery Mid Cap Growth Fund | 15
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class A | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $35.92 | $76.01 | $64.21 | $49.98 | $52.96 | $48.80 |
Net investment loss
| (0.19) | (0.55) | (0.77) 1 | (0.41) 1 | (0.29) | (0.31) |
Net realized and unrealized gains (losses) on investments
| 4.99 | (28.31) | 19.17 | 17.93 | 3.05 | 9.66 |
Total from investment operations
| 4.80 | (28.86) | 18.40 | 17.52 | 2.76 | 9.35 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| 0.00 | (11.23) | (6.60) | (3.29) | (5.74) | (5.19) |
Net asset value, end of period
| $40.72 | $35.92 | $76.01 | $64.21 | $49.98 | $52.96 |
Total return2
| 13.33% | (44.27)% | 29.90% | 37.19% | 8.00% | 20.83% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.24% | 1.23% | 1.21% | 1.24% | 1.25% | 1.25% |
Net expenses
| 1.18% | 1.16% | 1.17% | 1.16% | 1.18% | 1.18% |
Net investment loss
| (0.89)% | (1.03)% | (1.06)% | (0.79)% | (0.59)% | (0.61)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 23% | 46% | 41% | 62% | 50% | 62% |
Net assets, end of period (000s omitted)
| $526,645 | $490,694 | $990,030 | $813,725 | $649,106 | $655,338 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Discovery Mid Cap Growth Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class C | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $28.12 | $62.41 | $54.11 | $42.93 | $46.74 | $43.95 |
Net investment loss
| (0.25) 1 | (0.75) 1 | (1.10) 1 | (0.68) 1 | (0.52) 1 | (0.60) 1 |
Net realized and unrealized gains (losses) on investments
| 3.88 | (22.31) | 16.00 | 15.15 | 2.45 | 8.58 |
Total from investment operations
| 3.63 | (23.06) | 14.90 | 14.47 | 1.93 | 7.98 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| 0.00 | (11.23) | (6.60) | (3.29) | (5.74) | (5.19) |
Net asset value, end of period
| $31.75 | $28.12 | $62.41 | $54.11 | $42.93 | $46.74 |
Total return2
| 12.91% | (44.71)% | 28.92% | 36.13% | 7.20% | 19.93% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.98% | 1.96% | 1.96% | 1.98% | 2.00% | 2.00% |
Net expenses
| 1.93% | 1.93% | 1.93% | 1.93% | 1.93% | 1.93% |
Net investment loss
| (1.65)% | (1.80)% | (1.82)% | (1.55)% | (1.29)% | (1.37)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 23% | 46% | 41% | 62% | 50% | 62% |
Net assets, end of period (000s omitted)
| $875 | $943 | $2,509 | $2,224 | $2,513 | $7,629 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery Mid Cap Growth Fund | 17
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class R6 | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $42.59 | $87.70 | $72.94 | $56.15 | $58.47 | $53.17 |
Net investment loss
| (0.09) | (0.40) 1 | (0.57) 1 | (0.25) 1 | (0.11) 1 | (0.13) 1 |
Net realized and unrealized gains (losses) on investments
| 5.88 | (33.48) | 21.93 | 20.33 | 3.53 | 10.62 |
Total from investment operations
| 5.79 | (33.88) | 21.36 | 20.08 | 3.42 | 10.49 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| 0.00 | (11.23) | (6.60) | (3.29) | (5.74) | (5.19) |
Net asset value, end of period
| $48.38 | $42.59 | $87.70 | $72.94 | $56.15 | $58.47 |
Total return2
| 13.57% | (44.07)% | 30.41% | 37.69% | 8.41% | 21.30% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.81% | 0.80% | 0.78% | 0.81% | 0.82% | 0.82% |
Net expenses
| 0.80% | 0.79% | 0.78% | 0.80% | 0.80% | 0.80% |
Net investment loss
| (0.51)% | (0.66)% | (0.68)% | (0.43)% | (0.21)% | (0.23)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 23% | 46% | 41% | 62% | 50% | 62% |
Net assets, end of period (000s omitted)
| $56,300 | $51,082 | $94,430 | $71,641 | $52,783 | $48,363 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Discovery Mid Cap Growth Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Administrator Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $39.12 | $81.70 | $68.54 | $53.10 | $55.82 | $51.12 |
Net investment loss
| (0.17) 1 | (0.58) 1 | (0.79) 1 | (0.40) 1 | (0.25) 1 | (0.28) 1 |
Net realized and unrealized gains (losses) on investments
| 5.42 | (30.77) | 20.55 | 19.13 | 3.27 | 10.17 |
Total from investment operations
| 5.25 | (31.35) | 19.76 | 18.73 | 3.02 | 9.89 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| 0.00 | (11.23) | (6.60) | (3.29) | (5.74) | (5.19) |
Net asset value, end of period
| $44.37 | $39.12 | $81.70 | $68.54 | $53.10 | $55.82 |
Total return2
| 13.42% | (44.25)% | 30.00% | 37.29% | 8.06% | 20.95% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.14% | 1.12% | 1.13% | 1.15% | 1.16% | 1.16% |
Net expenses
| 1.10% | 1.09% | 1.10% | 1.10% | 1.10% | 1.10% |
Net investment loss
| (0.82)% | (0.98)% | (1.00)% | (0.72)% | (0.51)% | (0.53)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 23% | 46% | 41% | 62% | 50% | 62% |
Net assets, end of period (000s omitted)
| $2,956 | $3,146 | $10,818 | $4,205 | $3,687 | $3,687 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery Mid Cap Growth Fund | 19
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Institutional Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $42.33 | $87.27 | $72.66 | $55.97 | $58.33 | $53.08 |
Net investment loss
| (0.13) 1 | (0.44) 1 | (0.62) 1 | (0.28) 1 | (0.14) 1 | (0.15) 1 |
Net realized and unrealized gains (losses) on investments
| 5.86 | (33.27) | 21.83 | 20.26 | 3.52 | 10.59 |
Total from investment operations
| 5.73 | (33.71) | 21.21 | 19.98 | 3.38 | 10.44 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| 0.00 | (11.23) | (6.60) | (3.29) | (5.74) | (5.19) |
Net asset value, end of period
| $48.06 | $42.33 | $87.27 | $72.66 | $55.97 | $58.33 |
Total return2
| 13.54% | (44.11)% | 30.31% | 37.63% | 8.36% | 21.24% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.91% | 0.90% | 0.88% | 0.91% | 0.92% | 0.92% |
Net expenses
| 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% |
Net investment loss
| (0.57)% | (0.72)% | (0.74)% | (0.48)% | (0.26)% | (0.29)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 23% | 46% | 41% | 62% | 50% | 62% |
Net assets, end of period (000s omitted)
| $30,094 | $35,710 | $78,349 | $67,735 | $52,296 | $48,446 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Discovery Mid Cap Growth Fund
Notes to financial statements (unaudited)
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 Discovery Mid Cap Growth Fund (the "Fund") which is a diversified series of the Trust.
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
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC ("Allspring Funds Management"), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee 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. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio of investments.
Securities lending
During the period, the Fund participated in a program to lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities were on loan, the Fund received interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions was invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Effective at the close of business on March 29, 2023, the Fund is no longer participating in the securities lending program and the Securities Lending Fund was liquidated. Securities Lending Fund was managed by Allspring Funds Management and was subadvised by Allspring Global Investments, LLC ("Allspring Investments"), an affiliate of Allspring Funds Management and wholly owned subsidiary of Allspring Global Investments Holdings, LLC. Allspring Funds Management received an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increased. All of the fees received by Allspring Funds Management were paid to Allspring Investments for its services as subadviser.
Investments in Securities Lending Fund were valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the
Allspring Discovery Mid Cap Growth Fund | 21
Notes to financial statements (unaudited)
collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
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.
Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
Distributions to shareholders
Distributions to shareholders from net investment income and any net realized gains 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, as applicable, 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 March 31, 2023, the aggregate cost of all investments for federal income tax purposes was $507,591,812 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $171,149,849 |
| Gross unrealized losses | (59,795,450) |
| Net unrealized gains | $111,354,399 |
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 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.
22 | Allspring Discovery Mid Cap Growth Fund
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2023:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Common stocks | | | | |
| Communication services | $ 38,039,025 | $0 | $0 | $ 38,039,025 |
| Consumer discretionary | 104,359,318 | 0 | 0 | 104,359,318 |
| Consumer staples | 7,115,535 | 0 | 0 | 7,115,535 |
| Financials | 36,590,360 | 0 | 0 | 36,590,360 |
| Health care | 127,669,879 | 0 | 0 | 127,669,879 |
| Industrials | 122,762,904 | 0 | 0 | 122,762,904 |
| Information technology | 154,470,205 | 0 | 0 | 154,470,205 |
| Real estate | 22,156,742 | 0 | 0 | 22,156,742 |
| Short-term investments | | | | |
| Investment companies | 5,782,243 | 0 | 0 | 5,782,243 |
| Total assets | $618,946,211 | $0 | $0 | $618,946,211 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended March 31, 2023, 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 $500 million | 0.750% |
| Next $500 million | 0.725 |
| Next $1 billion | 0.700 |
| Next $2 billion | 0.675 |
| Next $1 billion | 0.650 |
| Next $5 billion | 0.640 |
| Next $2 billion | 0.630 |
| Next $4 billion | 0.620 |
| Over $16 billion | 0.610 |
For the six months ended March 31, 2023, the management fee was equivalent to an annual rate of 0.75% 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 Investments is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.45% and declining to 0.30% as the average daily net assets of the Fund increase.
Allspring Discovery Mid Cap Growth Fund | 23
Notes to financial statements (unaudited)
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 | 0.21% |
| Class C | 0.21 |
| Class R6 | 0.03 |
| Administrator Class | 0.13 |
| Institutional Class | 0.13 |
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 January 31, 2024 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. As of March 31, 2023, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class A | 1.18% |
| Class C | 1.93 |
| Class R6 | 0.80 |
| Administrator Class | 1.10 |
| Institutional Class | 0.85 |
Distribution fee
The Trust has adopted a distribution plan for Class C shares 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"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended March 31, 2023, Allspring Funds Distributor received $255 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended March 31, 2023.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
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.
24 | Allspring Discovery Mid Cap Growth Fund
Notes to financial statements (unaudited)
5. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended March 31, 2023 were $145,834,300 and $176,468,779, respectively.
6. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended March 31, 2023, there were no borrowings by the Fund under the agreement.
7. CONCENTRATION RISKS
As of the end of the period, the Fund concentrated its portfolio of investments in the information technology sector. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.
8. 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.
Allspring Discovery Mid Cap Growth Fund | 25
Other information (unaudited)
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.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
26 | Allspring Discovery Mid Cap Growth Fund
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 127 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 1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203. 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 Foundation (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. Member of the Advisory Board of CEF of East Central Florida. 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 | Distinguished Visiting Fellow at the Hoover Institution since 2022. 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 |
Allspring Discovery Mid Cap Growth Fund | 27
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, from 2007-2022. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. | 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 | Retired. Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer, Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
28 | Allspring Discovery Mid Cap Growth Fund
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 and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, from 2019 to 2022 and 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. |
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 from 2005 to 2010. |
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) | Chief Legal Officer, since 2022; 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.
Allspring Discovery Mid Cap Growth Fund | 29
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
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.
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.
© 2023 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-04042023-nerlor62 05-23
SAR3018 03-23
Semi-Annual Report
March 31, 2023
Allspring Opportunity Fund
The views expressed and any forward-looking statements are as of March 31, 2023, 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.
Allspring Opportunity Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Opportunity Fund for the six-month period that ended March 31, 2023. Globally, stocks and bonds rebounded strongly despite ongoing volatility. While navigating persistently high inflation and the impact of ongoing aggressive central bank rate hikes, markets rallied on signs of declining inflation, anticipation of an end to the central bank monetary tightening cycle, and the stimulating impact of China removing its strict COVID-19 lockdowns in December. For the six-month period, domestic U.S. and global stocks and bonds had strong results. After suffering deep and broad losses through 2022, recent fixed income performance benefited from a base of higher yields that can now generate higher income.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 15.62%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 22.13%, while the MSCI EM Index (Net) (USD)3 returned 14.04%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 4.89%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned 10.07%, the Bloomberg Municipal Bond Index6 gained 7.00%, and the ICE BofA U.S. High Yield Index7 returned 7.89%.
Despite high inflation and central bank rate hikes, markets rally.
Equities had a reprieve in October. Value stocks and small caps fared best. Globally, developed markets outpaced emerging market equities, which were hurt by weakness among Chinese stocks. Central banks continued to try to curtail high inflation with aggressive interest rate hikes. Geopolitical risks persisted, including the ongoing Russia-Ukraine war and economic, financial market, and political turmoil in the U.K. Concerns over Europe’s energy crisis eased thanks to unseasonably warm weather and plentiful gas on hand. The U.S. labor market continued its resilience against rising prices as unemployment remained near a record low.
Stocks and bonds rallied in November. Economic news was encouraging, driven by U.S. labor market strength. Although central banks kept raising rates, hopes rose for an easing in the pace of rate hikes and a possible end to central bank monetary tightening in 2023. Although inflation remained at record highs in the eurozone, we began to see signs of a possible decline in inflationary pressures as U.S. inflation moderated, with a 7.1% annual price rise in November and a monthly price increase of just 0.1%. China’s economic data remained weak, reflecting its zero-COVID-19 policy.
| 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 2023. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring Opportunity Fund
Letter to shareholders (unaudited)
Financial markets cooled in December, with U.S. equities posting negative overall results in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever with flat overall monthly returns as markets weighed the hopes for an end to the monetary tightening cycle with the reality that central banks had not completed their jobs yet. U.S. Consumer Price Index (CPI)1 data showed a strong consistent trend downward, which brought down the 12-month CPI to 6.5% in December from 9.1% in June. Other countries and regions reported still-high but declining inflation rates as the year winded down.
The year 2023 began with a rally across global equities and fixed income securities. Investor optimism rose in response to data indicating declining inflation rates and the reopening of China’s economy with the abrupt end to its zero-COVID-19 policy. The U.S. reported surprisingly strong job gains––employers added more than 500,000 jobs––and unemployment fell to 3.4%, the lowest level since 1969. Meanwhile, wage growth, seen as a potential contributor to ongoing high inflation, continued to moderate. All eyes remained fixed on the Federal Reserve (Fed) and on how many more rate hikes remain in this tightening cycle. The 0.25% federal funds rate hike announced in January was the Fed’s smallest rate increase since March 2022.
Financial markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks will likely continue their monetary tightening cycle for longer than markets had priced in. In this environment—where strong economic data is seen as bad news—the resilient U.S. labor market was seen as a negative while the inflation rate has not been falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the Bank of England and the European Central Bank both raised rates by 0.50%. At this stage in the economic cycle, the overriding question remained: “What will central banks do?” In February, the answer appeared to be: “Move rates higher for longer.”
The collapse of Silicon Valley Bank in March, the second-largest banking failure in U.S. history, led to a classic bank run that spread to Europe, where Switzerland’s Credit Suisse was taken over by its rival, UBS. The sudden banking industry uncertainty led some clients of regional banks to transfer deposits to a handful of U.S. banking giants while bank shareholders sold stock. The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. The U.S. labor market remained resilient. The euro-area composite Purchasing Managers’ Index2 rose to 53.70, indicating expansion, for March. And China’s economy continued to rebound after the removal of its COVID-19 lockdown. Inflation rates in the U.S., the U.K., and Europe all remained higher than central bank targets, leading to additional rate hikes in March.
“ The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China.”
| 1 | The U.S. 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. |
| 2 | The Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. You cannot invest directly in an index. |
Allspring Opportunity Fund | 3
Letter to shareholders (unaudited)
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.
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
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.
4 | Allspring Opportunity Fund
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Performance highlights (unaudited)
| Investment objective | The Fund seeks long-term capital appreciation. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Kurt Gunderson, Christopher G. Miller, CFA |
| Average annual total returns (%) as of March 31, 2023 |
| | | 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 (SOPVX) | 2-24-2000 | -11.58 | 8.30 | 9.54 | | -6.19 | 9.58 | 10.19 | | 1.19 | 1.18 |
| Class C (WFOPX) | 3-31-2008 | -7.76 | 9.07 | 9.66 | | -6.76 | 9.07 | 9.66 | | 1.94 | 1.93 |
| Class R6 (WOFRX)3 | 5-29-2020 | – | – | – | | -5.77 | 10.07 | 10.69 | | 0.76 | 0.72 |
| Administrator Class (WOFDX) | 8-30-2002 | – | – | – | | -6.02 | 9.80 | 10.41 | | 1.11 | 1.00 |
| Institutional Class (WOFNX) | 7-30-2010 | – | – | – | | -5.79 | 10.06 | 10.68 | | 0.86 | 0.75 |
| Russell 3000® Index4 | – | – | – | – | | -8.58 | 10.45 | 11.73 | | – | – |
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 return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. 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.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
For Class A shares, the maximum front-end sales charge is 5.75%. 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. Class R6, Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
| 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 January 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.18% for Class A, 1.93% for Class C, 0.72% for Class R6, 1.00% for Administrator Class, and 0.75% for Institutional 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. 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 Class R6 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 Class R6 shares would be higher. |
| 4 | The Russell 3000® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index. |
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
6 | Allspring Opportunity Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of March 31, 20231 |
| Apple Incorporated | 5.31 |
| Alphabet Incorporated Class C | 4.18 |
| Salesforce.com Incorporated | 3.42 |
| Amazon.com Incorporated | 3.39 |
| Texas Instruments Incorporated | 2.90 |
| Meta Platforms Incorporated Class A | 2.80 |
| MasterCard Incorporated Class A | 2.73 |
| Teledyne Technologies Incorporated | 2.24 |
| MTU Aero Engines AG | 2.22 |
| Fortive Corporation | 1.99 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Sector allocation as of March 31, 20231 |
| 1 | Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Opportunity Fund | 7
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 October 1, 2022 to March 31, 2023.
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 sales charges (loads) and 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
10-1-2022 | Ending
account value
3-31-2023 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class A | | | | |
| Actual | $1,000.00 | $1,160.85 | $ 6.36 | 1.18% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.05 | $ 5.94 | 1.18% |
| Class C | | | | |
| Actual | $1,000.00 | $1,156.94 | $10.16 | 1.89% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,015.51 | $ 9.50 | 1.89% |
| Class R6 | | | | |
| Actual | $1,000.00 | $1,163.77 | $ 3.88 | 0.72% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,021.34 | $ 3.63 | 0.72% |
| Administrator Class | | | | |
| Actual | $1,000.00 | $1,161.89 | $ 5.39 | 1.00% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.95 | $ 5.04 | 1.00% |
| Institutional Class | | | | |
| Actual | $1,000.00 | $1,163.64 | $ 4.05 | 0.75% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,021.19 | $ 3.78 | 0.75% |
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 182 divided by 365 (to reflect the one-half-year period).
8 | Allspring Opportunity Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Common stocks: 98.85% | | | | | |
| Communication services: 9.01% | | | | | |
| Entertainment: 1.10% | | | | | |
| Activision Blizzard Incorporated | | | | 219,236 | $ 18,764,405 |
| Interactive media & services: 6.98% | | | | | |
| Alphabet Incorporated Class C † | | | | 685,757 | 71,318,728 |
| Meta Platforms Incorporated Class A † | | | | 225,438 | 47,779,330 |
| | | | | | 119,098,058 |
| Wireless telecommunication services: 0.93% | | | | | |
| T-Mobile US Incorporated † | | | | 109,344 | 15,837,385 |
| Consumer discretionary: 8.14% | | | | | |
| Broadline retail: 3.39% | | | | | |
| Amazon.com Incorporated † | | | | 560,755 | 57,920,384 |
| Specialty retail: 3.70% | | | | | |
| Burlington Stores Incorporated † | | | | 143,274 | 28,955,675 |
| Farfetch Limited Class A † | | | | 486,276 | 2,387,615 |
| The Home Depot Incorporated | | | | 107,472 | 31,717,137 |
| | | | | | 63,060,427 |
| Textiles, apparel & luxury goods: 1.05% | | | | | |
| Deckers Outdoor Corporation † | | | | 39,695 | 17,844,887 |
| Consumer staples: 4.17% | | | | | |
| Consumer staples distribution & retail: 2.66% | | | | | |
| Dollar General Corporation | | | | 114,847 | 24,170,700 |
| Sysco Corporation | | | | 275,588 | 21,283,661 |
| | | | | | 45,454,361 |
| Household products: 1.51% | | | | | |
| Church & Dwight Company Incorporated | | | | 291,264 | 25,750,650 |
| Financials: 8.60% | | | | | |
| Capital markets: 4.31% | | | | | |
| Intercontinental Exchange Incorporated | | | | 238,794 | 24,903,826 |
| S&P Global Incorporated | | | | 76,953 | 26,531,086 |
| The Charles Schwab Corporation | | | | 422,163 | 22,112,898 |
| | | | | | 73,547,810 |
| Financial services: 2.73% | | | | | |
| MasterCard Incorporated Class A | | | | 128,186 | 46,584,074 |
| Insurance: 1.56% | | | | | |
| Marsh & McLennan Companies Incorporated | | | | 159,511 | 26,566,557 |
| Health care: 10.97% | | | | | |
| Health care equipment & supplies: 4.76% | | | | | |
| Align Technology Incorporated † | | | | 60,934 | 20,360,487 |
| Boston Scientific Corporation † | | | | 511,128 | 25,571,734 |
The accompanying notes are an integral part of these financial statements.
Allspring Opportunity Fund | 9
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Health care equipment & supplies (continued) | | | | | |
| LivaNova plc † | | | | 366,391 | $ 15,967,320 |
| Medtronic plc | | | | 239,138 | 19,279,306 |
| | | | | | 81,178,847 |
| Health care providers & services: 1.57% | | | | | |
| UnitedHealth Group Incorporated | | | | 56,776 | 26,831,770 |
| Health care technology: 0.43% | | | | | |
| Schrodinger Incorporated † | | | | 280,060 | 7,373,980 |
| Life sciences tools & services: 4.21% | | | | | |
| Agilent Technologies Incorporated | | | | 134,070 | 18,547,244 |
| Bio-Rad Laboratories Incorporated Class A † | | | | 49,994 | 23,948,126 |
| Thermo Fisher Scientific Incorporated | | | | 50,768 | 29,261,152 |
| | | | | | 71,756,522 |
| Industrials: 19.24% | | | | | |
| Aerospace & defense: 2.22% | | | | | |
| MTU Aero Engines AG | | | | 151,720 | 37,966,371 |
| Building products: 3.09% | | | | | |
| Carlisle Companies Incorporated | | | | 144,674 | 32,706,451 |
| The AZEK Company Incorporated † | | | | 849,450 | 19,996,053 |
| | | | | | 52,702,504 |
| Commercial services & supplies: 1.53% | | | | | |
| Republic Services Incorporated | | | | 193,798 | 26,205,366 |
| Machinery: 4.13% | | | | | |
| Fortive Corporation | | | | 498,655 | 33,993,311 |
| Ingersoll Rand Incorporated | | | | 431,575 | 25,109,034 |
| SPX Technologies Incorporated † | | | | 160,288 | 11,313,127 |
| | | | | | 70,415,472 |
| Professional services: 5.00% | | | | | |
| CoStar Group Incorporated † | | | | 297,862 | 20,507,799 |
| Dun & Bradstreet Holdings Incorporated | | | | 1,762,576 | 20,692,642 |
| Genpact Limited | | | | 494,807 | 22,869,980 |
| TransUnion | | | | 341,398 | 21,214,472 |
| | | | | | 85,284,893 |
| Trading companies & distributors: 3.27% | | | | | |
| Air Lease Corporation | | | | 632,318 | 24,894,360 |
| United Rentals Incorporated | | | | 77,942 | 30,846,326 |
| | | | | | 55,740,686 |
| Information technology: 25.24% | | | | | |
| Electronic equipment, instruments & components: 4.03% | | | | | |
| Amphenol Corporation Class A | | | | 372,496 | 30,440,373 |
| Teledyne Technologies Incorporated † | | | | 85,586 | 38,287,753 |
| | | | | | 68,728,126 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Opportunity Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Semiconductors & semiconductor equipment: 4.69% | | | | | |
| Marvell Technology Incorporated | | | | 703,579 | $ 30,464,971 |
| Texas Instruments Incorporated | | | | 266,284 | 49,531,487 |
| | | | | | 79,996,458 |
| Software: 11.21% | | | | | |
| Black Knight Incorporated † | | | | 252,409 | 14,528,662 |
| Palo Alto Networks Incorporated † | | | | 141,584 | 28,279,988 |
| Riskified Limited Class A † | | | | 651,949 | 3,676,992 |
| Salesforce.com Incorporated † | | | | 291,951 | 58,325,971 |
| ServiceNow Incorporated † | | | | 60,365 | 28,052,823 |
| Splunk Incorporated † | | | | 280,293 | 26,874,493 |
| Workday Incorporated Class A † | | | | 152,332 | 31,462,651 |
| | | | | | 191,201,580 |
| Technology hardware, storage & peripherals: 5.31% | | | | | |
| Apple Incorporated | | | | 549,760 | 90,655,424 |
| Materials: 5.60% | | | | | |
| Chemicals: 4.58% | | | | | |
| Ashland Global Holdings Incorporated | | | | 203,028 | 20,853,006 |
| Olin Corporation | | | | 536,247 | 29,761,709 |
| The Sherwin-Williams Company | | | | 122,627 | 27,562,871 |
| | | | | | 78,177,586 |
| Metals & mining: 1.02% | | | | | |
| Steel Dynamics Incorporated | | | | 153,778 | 17,386,141 |
| Real estate: 7.88% | | | | | |
| Industrial REITs: 1.58% | | | | | |
| Prologis Incorporated | | | | 216,154 | 26,969,535 |
| Residential REITs: 1.89% | | | | | |
| Sun Communities Incorporated | | | | 228,658 | 32,213,339 |
| Specialized REITs: 4.41% | | | | | |
| American Tower Corporation | | | | 122,862 | 25,105,621 |
| Equinix Incorporated | | | | 37,674 | 27,164,461 |
| VICI Properties Incorporated | | | | 701,843 | 22,894,119 |
| | | | | | 75,164,201 |
| Total Common stocks (Cost $1,047,557,557) | | | | | 1,686,377,799 |
| | | Yield | | | |
| Short-term investments: 1.19% | | | | | |
| Investment companies: 1.19% | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 4.69% | | 20,306,801 | 20,306,801 |
| Total Short-term investments (Cost $20,306,801) | | | | | 20,306,801 |
| Total investments in securities (Cost $1,067,864,358) | 100.04% | | | | 1,706,684,600 |
| Other assets and liabilities, net | (0.04) | | | | (678,759) |
| Total net assets | 100.00% | | | | $1,706,005,841 |
The accompanying notes are an integral part of these financial statements.
Allspring Opportunity Fund | 11
Portfolio of investments—March 31, 2023 (unaudited)
| † | Non-income-earning security |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
| Abbreviations: |
| REIT | Real estate investment trust |
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | $23,612,026 | $105,252,707 | $(108,557,932) | $ 0 | | $0 | | $ 20,306,801 | 20,306,801 | $ 436,453 |
Investments in affiliates no
longer held at end of period | | | | | | | | | | |
| Securities Lending Cash Investments LLC | 1,317,500 | 3,616,000 | (4,933,687) | 187 | | 0 | | 0 | 0 | 10,576 # |
| | | | | $187 | | $0 | | $20,306,801 | | $447,029 |
| # | Amount shown represents income before fees and rebates. |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Opportunity Fund
Statement of assets and liabilities—March 31, 2023 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $1,047,557,557)
| $ 1,686,377,799 |
Investments in affiliated securities, at value (cost $20,306,801)
| 20,306,801 |
Foreign currency, at value (cost $110)
| 110 |
Receivable for dividends
| 1,604,551 |
Receivable for Fund shares sold
| 287,709 |
Prepaid expenses and other assets
| 128,344 |
Total assets
| 1,708,705,314 |
| Liabilities | |
Management fee payable
| 1,039,443 |
Shareholder servicing fees payable
| 752,237 |
Payable for Fund shares redeemed
| 594,363 |
Administration fees payable
| 297,297 |
Trustees’ fees and expenses payable
| 3,106 |
Distribution fee payable
| 908 |
Accrued expenses and other liabilities
| 12,119 |
Total liabilities
| 2,699,473 |
Total net assets
| $1,706,005,841 |
| Net assets consist of | |
Paid-in capital
| $ 1,094,299,289 |
Total distributable earnings
| 611,706,552 |
Total net assets
| $1,706,005,841 |
| Computation of net asset value and offering price per share | |
Net assets – Class A
| $ 1,442,777,778 |
Shares outstanding – Class A1
| 33,685,075 |
Net asset value per share – Class A
| $42.83 |
Maximum offering price per share – Class A2
| $45.44 |
Net assets – Class C
| $ 1,538,088 |
Shares outstanding – Class C1
| 40,676 |
Net asset value per share – Class C
| $37.81 |
Net assets – Class R6
| $ 32,770 |
Shares outstanding – Class R61
| 643 |
Net asset value per share – Class R6
| $50.96 |
Net assets – Administrator Class
| $ 231,519,474 |
Shares outstanding – Administrator Class1
| 4,699,804 |
Net asset value per share – Administrator Class
| $49.26 |
Net assets – Institutional Class
| $ 30,137,731 |
Shares outstanding – Institutional Class1
| 591,883 |
Net asset value per share – Institutional Class
| $50.92 |
| 1 | The Fund has an unlimited number of authorized shares. |
| 2 | Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial statements.
Allspring Opportunity Fund | 13
Statement of operations—six months ended March 31, 2023 (unaudited)
| | |
| Investment income | |
Dividends
| $ 7,444,244 |
Income from affiliated securities
| 440,122 |
Total investment income
| 7,884,366 |
| Expenses | |
Management fee
| 5,967,595 |
| Administration fees | |
Class A
| 1,469,402 |
Class C
| 1,583 |
Class R6
| 5 |
Administrator Class
| 145,436 |
Institutional Class
| 17,476 |
| Shareholder servicing fees | |
Class A
| 1,747,570 |
Class C
| 1,881 |
Administrator Class
| 277,570 |
| Distribution fee | |
Class C
| 5,227 |
Custody and accounting fees
| 42,741 |
Professional fees
| 22,248 |
Registration fees
| 27,784 |
Shareholder report expenses
| 202 |
Trustees’ fees and expenses
| 11,087 |
Other fees and expenses
| 7,878 |
Total expenses
| 9,745,685 |
| Less: Fee waivers and/or expense reimbursements | |
Class A
| (111,653) |
Class C
| (20) |
Class R6
| (5) |
Administrator Class
| (127,835) |
Institutional Class
| (15,696) |
Net expenses
| 9,490,476 |
Net investment loss
| (1,606,110) |
| Realized and unrealized gains (losses) on investments | |
| Net realized gains (losses) on | |
Unaffiliated securities
| (8,952,947) |
Affiliated securities
| 187 |
Net realized losses on investments
| (8,952,760) |
Net change in unrealized gains (losses) on investments
| 254,599,591 |
Net realized and unrealized gains (losses) on investments
| 245,646,831 |
Net increase in net assets resulting from operations
| $244,040,721 |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Opportunity Fund
Statement of changes in net assets
| | | | | |
| | Six months ended
March 31, 2023
(unaudited) | Year ended
September 30, 2022 |
| Operations | | | | |
Net investment loss
| | $ (1,606,110) | | $ (7,668,786) |
Net realized gains (losses) on investments
| | (8,952,760) | | 170,174,797 |
Net change in unrealized gains (losses) on investments
| | 254,599,591 | | (554,945,642) |
Net increase (decrease) in net assets resulting from operations
| | 244,040,721 | | (392,439,631) |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class A
| | (135,924,780) | | (202,195,613) |
Class C
| | (163,434) | | (256,382) |
Class R6
| | (2,539) | | (3,523) |
Administrator Class
| | (19,167,609) | | (28,631,690) |
Institutional Class
| | (2,217,648) | | (3,020,160) |
Total distributions to shareholders
| | (157,476,010) | | (234,107,368) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class A
| 158,330 | 6,599,325 | 243,823 | 12,670,364 |
Class C
| 2,469 | 91,687 | 2,480 | 112,528 |
Administrator Class
| 12,803 | 620,225 | 31,556 | 1,797,574 |
Institutional Class
| 182,109 | 9,192,987 | 151,545 | 8,990,722 |
| | | 16,504,224 | | 23,571,188 |
| Reinvestment of distributions | | | | |
Class A
| 3,274,219 | 131,918,309 | 3,616,535 | 196,414,022 |
Class C
| 4,525 | 161,301 | 5,181 | 253,503 |
Class R6
| 53 | 2,539 | 56 | 3,523 |
Administrator Class
| 386,357 | 17,892,203 | 437,730 | 26,929,177 |
Institutional Class
| 44,993 | 2,152,021 | 43,679 | 2,761,828 |
| | | 152,126,373 | | 226,362,053 |
| Payment for shares redeemed | | | | |
Class A
| (1,814,342) | (75,950,825) | (2,901,700) | (146,526,191) |
Class C
| (5,890) | (222,113) | (7,705) | (340,145) |
Administrator Class
| (217,394) | (10,444,010) | (340,333) | (19,390,951) |
Institutional Class
| (126,536) | (6,287,001) | (150,295) | (8,627,502) |
| | | (92,903,949) | | (174,884,789) |
Net increase in net assets resulting from capital share transactions
| | 75,726,648 | | 75,048,452 |
Total increase (decrease) in net assets
| | 162,291,359 | | (551,498,547) |
| Net assets | | | | |
Beginning of period
| | 1,543,714,482 | | 2,095,213,029 |
End of period
| | $1,706,005,841 | | $1,543,714,482 |
The accompanying notes are an integral part of these financial statements.
Allspring Opportunity Fund | 15
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class A | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $40.84 | $57.30 | $45.64 | $43.37 | $46.31 | $45.83 |
Net investment income (loss)
| (0.04) | (0.22) | (0.20) | 0.01 | 0.10 | (0.01) 1 |
Payment from affiliate
| 0.00 | 0.00 | 0.00 | 0.00 2 | 0.00 | 0.00 |
Net realized and unrealized gains (losses) on investments
| 6.34 | (9.64) | 14.95 | 4.85 | 1.54 | 6.41 |
Total from investment operations
| 6.30 | (9.86) | 14.75 | 4.86 | 1.64 | 6.40 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | 0.00 | (0.02) | (0.10) | 0.00 | (0.17) |
Net realized gains
| (4.31) | (6.60) | (3.07) | (2.49) | (4.58) | (5.75) |
Total distributions to shareholders
| (4.31) | (6.60) | (3.09) | (2.59) | (4.58) | (5.92) |
Net asset value, end of period
| $42.83 | $40.84 | $57.30 | $45.64 | $43.37 | $46.31 |
Total return3
| 16.09% | (20.07)% | 33.63% | 11.62% 4 | 5.18% | 15.16% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.20% | 1.19% | 1.20% | 1.21% | 1.21% | 1.20% |
Net expenses
| 1.18% | 1.16% | 1.17% | 1.16% | 1.19% | 1.20% |
Net investment income (loss)
| (0.23)% | (0.43)% | (0.37)% | 0.04% | 0.23% | (0.01)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 14% | 22% | 29% | 43% | 28% | 30% |
Net assets, end of period (000s omitted)
| $1,442,778 | $1,309,459 | $1,782,585 | $1,453,975 | $1,461,345 | $1,528,852 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Amount is less than $0.005. |
| 3 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
| 4 | During the year ended September 30, 2020, the Fund received a payment from an affiliate that had an impact of less than 0.005% on the total return. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Opportunity Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class C | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $36.63 | $52.32 | $42.19 | $40.02 | $43.43 | $43.46 |
Net investment loss
| (0.18) 1 | (0.50) 1 | (0.55) 1 | (0.28) 1 | (0.26) 1 | (0.43) |
Payment from affiliate
| 0.00 | 0.00 | 0.00 | 0.54 | 0.00 | 0.00 |
Net realized and unrealized gains (losses) on investments
| 5.67 | (8.59) | 13.75 | 4.40 | 1.43 | 6.15 |
Total from investment operations
| 5.49 | (9.09) | 13.20 | 4.66 | 1.17 | 5.72 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| (4.31) | (6.60) | (3.07) | (2.49) | (4.58) | (5.75) |
Net asset value, end of period
| $37.81 | $36.63 | $52.32 | $42.19 | $40.02 | $43.43 |
Total return2
| 15.69% | (20.55)% 3 | 32.65% | 12.13% 4 | 4.37% | 14.31% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.89% | 1.85% | 1.92% | 1.94% | 1.96% | 1.95% |
Net expenses
| 1.89% | 1.84% | 1.91% | 1.92% | 1.95% | 1.95% |
Net investment loss
| (0.94)% | (1.11)% | (1.12)% | (0.71)% | (0.69)% | (0.76)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 14% | 22% | 29% | 43% | 28% | 30% |
Net assets, end of period (000s omitted)
| $1,538 | $1,450 | $2,073 | $2,268 | $3,739 | $31,381 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
| 3 | During the year ended September 30, 2022, the Fund received payments from a service provider which had a 0.09% impact on the total return. |
| 4 | During the year ended September 30, 2020, the Fund received a payment from an affiliate which had a 1.44% impact on the total return. |
The accompanying notes are an integral part of these financial statements.
Allspring Opportunity Fund | 17
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class R6 | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 1 |
Net asset value, beginning of period
| $47.73 | $65.66 | $51.83 | $46.84 |
Net investment income
| 0.06 2 | 0.01 2 | 0.04 | 0.04 |
Net realized and unrealized gains (losses) on investments
| 7.48 | (11.34) | 17.06 | 4.95 |
Total from investment operations
| 7.54 | (11.33) | 17.10 | 4.99 |
| Distributions to shareholders from | | | | |
Net investment income
| 0.00 | 0.00 | (0.20) | 0.00 |
Net realized gains
| (4.31) | (6.60) | (3.07) | 0.00 |
Total distributions to shareholders
| (4.31) | (6.60) | (3.27) | 0.00 |
Net asset value, end of period
| $50.96 | $47.73 | $65.66 | $51.83 |
Total return3
| 16.38% | (19.72)% | 34.23% | 10.65% |
| Ratios to average net assets (annualized) | | | | |
Gross expenses
| 0.76% | 0.75% | 0.76% | 0.76% |
Net expenses
| 0.72% | 0.72% | 0.72% | 0.72% |
Net investment income
| 0.23% | 0.01% | 0.08% | 0.25% |
| Supplemental data | | | | |
Portfolio turnover rate
| 14% | 22% | 29% | 43% |
Net assets, end of period (000s omitted)
| $33 | $28 | $35 | $28 |
| 1 | For the period from May 29, 2020 (commencement of class operations) to September 30, 2020 |
| 2 | Calculated based upon average shares outstanding |
| 3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Opportunity Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Administrator Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $46.33 | $64.07 | $50.68 | $47.85 | $50.50 | $49.45 |
Net investment income (loss)
| (0.01) 1 | (0.14) 1 | (0.10) | 0.18 | 0.21 | 0.07 |
Net realized and unrealized gains (losses) on investments
| 7.25 | (11.00) | 16.65 | 5.30 | 1.73 | 6.97 |
Total from investment operations
| 7.24 | (11.14) | 16.55 | 5.48 | 1.94 | 7.04 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | 0.00 | (0.09) | (0.16) | (0.01) | (0.24) |
Net realized gains
| (4.31) | (6.60) | (3.07) | (2.49) | (4.58) | (5.75) |
Total distributions to shareholders
| (4.31) | (6.60) | (3.16) | (2.65) | (4.59) | (5.99) |
Net asset value, end of period
| $49.26 | $46.33 | $64.07 | $50.68 | $47.85 | $50.50 |
Total return2
| 16.19% | (19.91)% | 33.87% | 11.85% | 5.37% | 15.38% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.11% | 1.11% | 1.12% | 1.13% | 1.13% | 1.12% |
Net expenses
| 1.00% | 0.97% | 0.98% | 0.97% | 1.00% | 1.00% |
Net investment income (loss)
| (0.05)% | (0.24)% | (0.18)% | 0.22% | 0.42% | 0.19% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 14% | 22% | 29% | 43% | 28% | 30% |
Net assets, end of period (000s omitted)
| $231,519 | $209,340 | $281,217 | $225,604 | $227,963 | $244,110 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Opportunity Fund | 19
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Institutional Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $47.70 | $65.64 | $51.83 | $48.89 | $51.50 | $50.30 |
Net investment income (loss)
| 0.05 1 | (0.01) 1 | 0.03 1 | 0.34 | 0.35 | 0.22 |
Net realized and unrealized gains (losses) on investments
| 7.48 | (11.33) | 17.04 | 5.37 | 1.74 | 7.08 |
Total from investment operations
| 7.53 | (11.34) | 17.07 | 5.71 | 2.09 | 7.30 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | 0.00 | (0.19) | (0.28) | (0.12) | (0.35) |
Net realized gains
| (4.31) | (6.60) | (3.07) | (2.49) | (4.58) | (5.75) |
Total distributions to shareholders
| (4.31) | (6.60) | (3.26) | (2.77) | (4.70) | (6.10) |
Net asset value, end of period
| $50.92 | $47.70 | $65.64 | $51.83 | $48.89 | $51.50 |
Total return2
| 16.36% | (19.76)% | 34.20% | 12.09% | 5.63% | 15.69% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.87% | 0.86% | 0.87% | 0.88% | 0.88% | 0.87% |
Net expenses
| 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% |
Net investment income (loss)
| 0.21% | (0.01)% | 0.05% | 0.44% | 0.66% | 0.44% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 14% | 22% | 29% | 43% | 28% | 30% |
Net assets, end of period (000s omitted)
| $30,138 | $23,437 | $29,303 | $24,710 | $26,447 | $29,562 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Opportunity Fund
Notes to financial statements (unaudited)
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 Opportunity Fund (the "Fund") which is a diversified series of the Trust.
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
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee established by Allspring Funds Management, LLC ("Allspring Funds Management").
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures implemented by Allspring Funds Management are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On March 31, 2023, such fair value pricing was used in pricing certain foreign securities.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee 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. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates.
Allspring Opportunity Fund | 21
Notes to financial statements (unaudited)
The changes in net assets arising from changes in exchange rates of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.
Securities lending
During the period, the Fund participated in a program to lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities were on loan, the Fund received interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions was invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Effective at the close of business on March 29, 2023, the Fund is no longer participating in the securities lending program and the Securities Lending Fund was liquidated. Securities Lending Fund was managed by Allspring Funds Management and was subadvised by Allspring Global Investments, LLC ("Allspring Investments"), an affiliate of Allspring Funds Management and wholly owned subsidiary of Allspring Global Investments Holdings, LLC. Allspring Funds Management received an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increased. All of the fees received by Allspring Funds Management were paid to Allspring Investments for its services as subadviser.
Investments in Securities Lending Fund were valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
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.
Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date.
Distributions to shareholders
Distributions to shareholders from net investment income and any net realized gains 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, as applicable, for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
22 | Allspring Opportunity Fund
Notes to financial statements (unaudited)
As of March 31, 2023, the aggregate cost of all investments for federal income tax purposes was $1,068,019,801 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $688,373,683 |
| Gross unrealized losses | (49,708,884) |
| Net unrealized gains | $638,664,799 |
As of September 30, 2022, the Fund had current year deferred post-October capital losses consisting of $2,766,299 in short-term capital losses which was recognized in the first day of the current fiscal year.
As of September 30, 2022, the Fund had a qualified late-year ordinary loss of $4,939,344 which was recognized on the first day of the current fiscal year.
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 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 March 31, 2023:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Common stocks | | | | |
| Communication services | $ 153,699,848 | $ 0 | $0 | $ 153,699,848 |
| Consumer discretionary | 138,825,698 | 0 | 0 | 138,825,698 |
| Consumer staples | 71,205,011 | 0 | 0 | 71,205,011 |
| Financials | 146,698,441 | 0 | 0 | 146,698,441 |
| Health care | 187,141,119 | 0 | 0 | 187,141,119 |
| Industrials | 290,348,921 | 37,966,371 | 0 | 328,315,292 |
| Information technology | 430,581,588 | 0 | 0 | 430,581,588 |
| Materials | 95,563,727 | 0 | 0 | 95,563,727 |
| Real estate | 134,347,075 | 0 | 0 | 134,347,075 |
| Short-term investments | | | | |
| Investment companies | 20,306,801 | 0 | 0 | 20,306,801 |
| Total assets | $1,668,718,229 | $37,966,371 | $0 | $1,706,684,600 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
Allspring Opportunity Fund | 23
Notes to financial statements (unaudited)
For the six months ended March 31, 2023, 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 $500 million | 0.750% |
| Next $500 million | 0.725 |
| Next $1 billion | 0.700 |
| Next $2 billion | 0.675 |
| Next $1 billion | 0.650 |
| Next $5 billion | 0.640 |
| Next $2 billion | 0.630 |
| Next $4 billion | 0.620 |
| Over $16 billion | 0.610 |
For the six months ended March 31, 2023, the management fee was equivalent to an annual rate of 0.72% 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 Investments is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.45% and declining to 0.30% 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 | 0.21% |
| Class C | 0.21 |
| Class R6 | 0.03 |
| Administrator Class | 0.13 |
| Institutional Class | 0.13 |
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
24 | Allspring Opportunity Fund
Notes to financial statements (unaudited)
reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through January 31, 2024 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. As of March 31, 2023, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class A | 1.18% |
| Class C | 1.93 |
| Class R6 | 0.72 |
| Administrator Class | 1.00 |
| Institutional Class | 0.75 |
Distribution fee
The Trust has adopted a distribution plan for Class C shares 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"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended March 31, 2023, Allspring Funds Distributor received $607 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended March 31, 2023.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
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. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended March 31, 2023 were $229,465,936 and $310,749,469, respectively.
6. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended March 31, 2023, there were no borrowings by the Fund under the agreement.
7. CONCENTRATION RISKS
As of the end of the period, the Fund concentrated its portfolio of investments in the information technology sector. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.
8. 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
Allspring Opportunity Fund | 25
Notes to financial statements (unaudited)
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.
26 | Allspring Opportunity Fund
Other information (unaudited)
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.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
Allspring Opportunity Fund | 27
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 127 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 1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203. 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 Foundation (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. Member of the Advisory Board of CEF of East Central Florida. 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 | Distinguished Visiting Fellow at the Hoover Institution since 2022. 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 |
28 | Allspring Opportunity Fund
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, from 2007-2022. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. | 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 | Retired. Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer, Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Allspring Opportunity Fund | 29
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 and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, from 2019 to 2022 and 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. |
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 from 2005 to 2010. |
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) | Chief Legal Officer, since 2022; 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.
30 | Allspring Opportunity Fund
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
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.
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.
© 2023 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-04042023-230mycww 05-23
SAR3002 03-23
Semi-Annual Report
March 31, 2023
Allspring
Special Mid Cap Value Fund
The views expressed and any forward-looking statements are as of March 31, 2023, 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.
Allspring Special Mid Cap Value Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Special Mid Cap Value Fund for the six-month period that ended March 31, 2023. Globally, stocks and bonds rebounded strongly despite ongoing volatility. While navigating persistently high inflation and the impact of ongoing aggressive central bank rate hikes, markets rallied on signs of declining inflation, anticipation of an end to the central bank monetary tightening cycle, and the stimulating impact of China removing its strict COVID-19 lockdowns in December. For the six-month period, domestic U.S. and global stocks and bonds had strong results. After suffering deep and broad losses through 2022, recent fixed income performance benefited from a base of higher yields that can now generate higher income.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 15.62%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 22.13%, while the MSCI EM Index (Net) (USD)3 returned 14.04%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 4.89%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned 10.07%, the Bloomberg Municipal Bond Index6 gained 7.00%, and the ICE BofA U.S. High Yield Index7 returned 7.89%.
Despite high inflation and central bank rate hikes, markets rally.
Equities had a reprieve in October. Value stocks and small caps fared best. Globally, developed markets outpaced emerging market equities, which were hurt by weakness among Chinese stocks. Central banks continued to try to curtail high inflation with aggressive interest rate hikes. Geopolitical risks persisted, including the ongoing Russia-Ukraine war and economic, financial market, and political turmoil in the U.K. Concerns over Europe’s energy crisis eased thanks to unseasonably warm weather and plentiful gas on hand. The U.S. labor market continued its resilience against rising prices as unemployment remained near a record low.
Stocks and bonds rallied in November. Economic news was encouraging, driven by U.S. labor market strength. Although central banks kept raising rates, hopes rose for an easing in the pace of rate hikes and a possible end to central bank monetary tightening in 2023. Although inflation remained at record highs in the eurozone, we began to see signs of a possible decline in inflationary pressures as U.S. inflation moderated, with a 7.1% annual price rise in November and a monthly price increase of just 0.1%. China’s economic data remained weak, reflecting its zero-COVID-19 policy.
| 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 2023. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring Special Mid Cap Value Fund
Letter to shareholders (unaudited)
Financial markets cooled in December, with U.S. equities posting negative overall results in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever with flat overall monthly returns as markets weighed the hopes for an end to the monetary tightening cycle with the reality that central banks had not completed their jobs yet. U.S. Consumer Price Index (CPI)1 data showed a strong consistent trend downward, which brought down the 12-month CPI to 6.5% in December from 9.1% in June. Other countries and regions reported still-high but declining inflation rates as the year winded down.
The year 2023 began with a rally across global equities and fixed income securities. Investor optimism rose in response to data indicating declining inflation rates and the reopening of China’s economy with the abrupt end to its zero-COVID-19 policy. The U.S. reported surprisingly strong job gains––employers added more than 500,000 jobs––and unemployment fell to 3.4%, the lowest level since 1969. Meanwhile, wage growth, seen as a potential contributor to ongoing high inflation, continued to moderate. All eyes remained fixed on the Federal Reserve (Fed) and on how many more rate hikes remain in this tightening cycle. The 0.25% federal funds rate hike announced in January was the Fed’s smallest rate increase since March 2022.
Financial markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks will likely continue their monetary tightening cycle for longer than markets had priced in. In this environment—where strong economic data is seen as bad news—the resilient U.S. labor market was seen as a negative while the inflation rate has not been falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the Bank of England and the European Central Bank both raised rates by 0.50%. At this stage in the economic cycle, the overriding question remained: “What will central banks do?” In February, the answer appeared to be: “Move rates higher for longer.”
The collapse of Silicon Valley Bank in March, the second-largest banking failure in U.S. history, led to a classic bank run that spread to Europe, where Switzerland’s Credit Suisse was taken over by its rival, UBS. The sudden banking industry uncertainty led some clients of regional banks to transfer deposits to a handful of U.S. banking giants while bank shareholders sold stock. The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. The U.S. labor market remained resilient. The euro-area composite Purchasing Managers’ Index2 rose to 53.70, indicating expansion, for March. And China’s economy continued to rebound after the removal of its COVID-19 lockdown. Inflation rates in the U.S., the U.K., and Europe all remained higher than central bank targets, leading to additional rate hikes in March.
“ The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China.”
| 1 | The U.S. 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. |
| 2 | The Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. You cannot invest directly in an index. |
Allspring Special Mid Cap Value Fund | 3
Letter to shareholders (unaudited)
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.
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
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.
4 | Allspring Special Mid Cap Value Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks long-term capital appreciation. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | James M. Tringas, CFA, Bryant VonCronkhite, CFA, CPA, Shane Zweck, CFA |
| Average annual total returns (%) as of March 31, 2023 |
| | | 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 (WFPAX) | 7-31-2007 | -7.53 | 7.47 | 9.37 | | -1.90 | 8.75 | 10.02 | | 1.12 | 1.12 |
| Class C (WFPCX) | 7-31-2007 | -3.62 | 7.95 | 9.36 | | -2.62 | 7.95 | 9.36 | | 1.87 | 1.87 |
| Class R (WFHHX)3 | 9-30-2015 | – | – | – | | -2.13 | 8.48 | 9.74 | | 1.37 | 1.37 |
| Class R6 (WFPRX)4 | 6-28-2013 | – | – | – | | -1.47 | 9.23 | 10.50 | | 0.69 | 0.69 |
| Administrator Class (WFMDX) | 4-8-2005 | – | – | – | | -1.82 | 8.84 | 10.12 | | 1.04 | 1.04 |
| Institutional Class (WFMIX) | 4-8-2005 | – | – | – | | -1.57 | 9.11 | 10.40 | | 0.79 | 0.79 |
| Russell Midcap® Value Index5 | – | – | – | – | | -9.22 | 6.54 | 8.80 | | – | – |
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 return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. 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.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
For Class A shares, the maximum front-end sales charge is 5.75%. 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. Class R, Class R6, Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
| 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 January 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.16% for Class A, 1.91% for Class C, 1.41% for Class R, 0.73% for Class R6, 1.08% for Administrator Class, and 0.83% for Institutional 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. 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 Class R shares prior to their inception reflects the performance of the Institutional Class shares, adjusted to reflect the higher expenses applicable to the Class R shares. |
| 4 | Historical performance shown for the Class R6 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 Class R6 shares would be higher. |
| 5 | The Russell Midcap® Value Index measures the performance of those Russell Midcap companies with lower price/book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000® Value Index. You cannot invest directly in an index |
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Consult the Fund’s prospectus for additional information on these and other risks.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
6 | Allspring Special Mid Cap Value Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of March 31, 20231 |
| LKQ Corporation | 3.36 |
| Republic Services Incorporated | 3.32 |
| Arch Capital Group Limited | 3.27 |
| Amdocs Limited | 3.24 |
| AerCap Holdings NV | 3.20 |
| Jacobs Solutions Incorporated | 2.97 |
| Vulcan Materials Company | 2.69 |
| Church & Dwight Company Incorporated | 2.67 |
| Keurig Dr. Pepper Incorporated | 2.52 |
| American Electric Power Company Incorporated | 2.51 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Sector allocation as of March 31, 20231 |
| 1 | Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Special Mid Cap Value Fund | 7
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 October 1, 2022 to March 31, 2023.
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 sales charges (loads) and 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
10-1-2022 | Ending
account value
3-31-2023 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class A | | | | |
| Actual | $1,000.00 | $1,147.65 | $6.00 | 1.12% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.35 | $5.64 | 1.12% |
| Class C | | | | |
| Actual | $1,000.00 | $1,143.57 | $9.99 | 1.87% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,015.61 | $9.40 | 1.87% |
| Class R | | | | |
| Actual | $1,000.00 | $1,146.17 | $7.33 | 1.37% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,018.10 | $6.89 | 1.37% |
| Class R6 | | | | |
| Actual | $1,000.00 | $1,150.26 | $3.70 | 0.69% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,021.49 | $3.48 | 0.69% |
| Administrator Class | | | | |
| Actual | $1,000.00 | $1,148.16 | $5.57 | 1.04% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.75 | $5.24 | 1.04% |
| Institutional Class | | | | |
| Actual | $1,000.00 | $1,149.62 | $4.23 | 0.79% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.99 | $3.98 | 0.79% |
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 182 divided by 365 (to reflect the one-half-year period).
8 | Allspring Special Mid Cap Value Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Common stocks: 94.83% | | | | | |
| Communication services: 0.71% | | | | | |
| Interactive media & services: 0.71% | | | | | |
| Match Group Incorporated † | | | | 2,166,800 | $ 83,183,452 |
| Consumer discretionary: 10.39% | | | | | |
| Automobile components: 1.84% | | | | | |
| Aptiv plc † | | | | 1,079,830 | 121,146,128 |
| Lear Corporation | | | | 677,800 | 94,546,322 |
| | | | | | 215,692,450 |
| Distributors: 3.36% | | | | | |
| LKQ Corporation | | | | 6,955,700 | 394,805,532 |
| Hotels, restaurants & leisure: 2.24% | | | | | |
| The Wendy's Company | | | | 3,900,500 | 84,952,890 |
| Yum China Holdings Incorporated | | | | 2,808,100 | 178,005,459 |
| | | | | | 262,958,349 |
| Household durables: 2.78% | | | | | |
| D.R. Horton Incorporated | | | | 2,999,800 | 293,050,462 |
| Helen of Troy Limited † | | | | 358,500 | 34,118,445 |
| | | | | | 327,168,907 |
| Specialty retail: 0.17% | | | | | |
| Foot Locker Incorporated | | | | 497,900 | 19,761,651 |
| Consumer staples: 7.67% | | | | | |
| Beverages: 2.52% | | | | | |
| Keurig Dr. Pepper Incorporated | | | | 8,381,514 | 295,699,814 |
| Household products: 5.15% | | | | | |
| Church & Dwight Company Incorporated | | | | 3,554,500 | 314,253,345 |
| Reynolds Consumer Products Incorporated ♠ | | | | 10,578,400 | 290,906,000 |
| | | | | | 605,159,345 |
| Energy: 5.91% | | | | | |
| Energy equipment & services: 1.43% | | | | | |
| Baker Hughes Company | | | | 3,974,000 | 114,689,640 |
| NOV Incorporated | | | | 2,880,800 | 53,323,608 |
| | | | | | 168,013,248 |
| Oil, gas & consumable fuels: 4.48% | | | | | |
| Devon Energy Corporation | | | | 2,518,600 | 127,466,346 |
| EOG Resources Incorporated | | | | 1,721,200 | 197,301,156 |
| Valero Energy Corporation | | | | 1,443,000 | 201,442,800 |
| | | | | | 526,210,302 |
| Financials: 15.41% | | | | | |
| Banks: 3.18% | | | | | |
| Citizens Financial Group Incorporated | | | | 1,721,500 | 52,281,955 |
The accompanying notes are an integral part of these financial statements.
Allspring Special Mid Cap Value Fund | 9
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Banks (continued) | | | | | |
| Fifth Third Bancorp | | | | 7,455,600 | $ 198,617,184 |
| Regions Financial Corporation | | | | 6,595,800 | 122,418,048 |
| | | | | | 373,317,187 |
| Capital markets: 0.00% | | | | | |
| Pershing Square Escrow Shares ♦† | | | | 7,483,000 | 0 |
| Consumer finance: 0.76% | | | | | |
| Discover Financial Services | | | | 908,600 | 89,806,024 |
| Insurance: 9.42% | | | | | |
| Arch Capital Group Limited † | | | | 5,658,700 | 384,055,969 |
| Axis Capital Holdings Limited | | | | 873,600 | 47,628,672 |
| Brown & Brown Incorporated | | | | 4,863,000 | 279,233,460 |
| Loews Corporation | | | | 2,725,800 | 158,150,916 |
| The Allstate Corporation | | | | 2,139,700 | 237,100,157 |
| | | | | | 1,106,169,174 |
| Mortgage REITs: 2.05% | | | | | |
| Annaly Capital Management Incorporated | | | | 12,579,749 | 240,399,003 |
| Health care: 7.17% | | | | | |
| Health care equipment & supplies: 5.54% | | | | | |
| Alcon Incorporated | | | | 4,146,400 | 292,487,056 |
| Teleflex Incorporated | | | | 605,000 | 153,252,550 |
| Zimmer Biomet Holdings Incorporated | | | | 1,583,900 | 204,639,880 |
| | | | | | 650,379,486 |
| Life sciences tools & services: 1.63% | | | | | |
| Charles River Laboratories International Incorporated † | | | | 952,514 | 192,236,375 |
| Industrials: 20.67% | | | | | |
| Aerospace & defense: 0.99% | | | | | |
| L3Harris Technologies Incorporated | | | | 592,700 | 116,311,448 |
| Building products: 3.43% | | | | | |
| Builders FirstSource Incorporated † | | | | 1,352,400 | 120,066,072 |
| Carlisle Companies Incorporated | | | | 1,250,400 | 282,677,928 |
| | | | | | 402,744,000 |
| Commercial services & supplies: 3.32% | | | | | |
| Republic Services Incorporated | | | | 2,883,600 | 389,920,392 |
| Construction & engineering: 3.18% | | | | | |
| APi Group Corporation † | | | | 4,711,716 | 105,919,385 |
| MasTec Incorporated † | | | | 2,840,700 | 268,275,708 |
| | | | | | 374,195,093 |
| Machinery: 2.67% | | | | | |
| Donaldson Company Incorporated | | | | 3,071,200 | 200,672,208 |
| Gates Industrial Corporation plc † | | | | 8,126,532 | 112,877,529 |
| | | | | | 313,549,737 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Special Mid Cap Value Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Professional services: 3.88% | | | | | |
| Dun & Bradstreet Holdings Incorporated | | | | 9,086,946 | $ 106,680,746 |
| Jacobs Solutions Incorporated | | | | 2,969,100 | 348,898,941 |
| | | | | | 455,579,687 |
| Trading companies & distributors: 3.20% | | | | | |
| AerCap Holdings NV † | | | | 6,684,200 | 375,852,566 |
| Information technology: 8.08% | | | | | |
| Financial services: 2.34% | | | | | |
| Euronet Worldwide Incorporated † | | | | 2,456,500 | 274,882,350 |
| IT services: 3.24% | | | | | |
| Amdocs Limited | | | | 3,955,900 | 379,885,077 |
| Semiconductors & semiconductor equipment: 0.60% | | | | | |
| ON Semiconductor Corporation † | | | | 858,600 | 70,679,952 |
| Software: 1.90% | | | | | |
| NCR Corporation † | | | | 4,937,700 | 116,480,343 |
| Synopsys Incorporated † | | | | 276,600 | 106,836,750 |
| | | | | | 223,317,093 |
| Materials: 5.89% | | | | | |
| Chemicals: 0.86% | | | | | |
| Huntsman Corporation | | | | 3,694,800 | 101,089,728 |
| Construction materials: 2.69% | | | | | |
| Vulcan Materials Company | | | | 1,844,100 | 316,373,796 |
| Containers & packaging: 0.81% | | | | | |
| AptarGroup Incorporated | | | | 803,300 | 94,942,027 |
| Metals & mining: 1.53% | | | | | |
| Freeport-McMoRan Incorporated | | | | 4,395,100 | 179,803,541 |
| Real estate: 6.24% | | | | | |
| Office REITs: 1.19% | | | | | |
| Boston Properties Incorporated | | | | 2,575,900 | 139,407,708 |
| Real estate management & development: 2.47% | | | | | |
| CBRE Group Incorporated Class A † | | | | 3,976,200 | 289,507,122 |
| Specialized REITs: 2.58% | | | | | |
| CubeSmart | | | | 1,981,000 | 91,561,820 |
| Gaming and Leisure Properties Incorporated | | | | 4,072,900 | 212,035,174 |
| | | | | | 303,596,994 |
| Utilities: 6.69% | | | | | |
| Electric utilities: 4.83% | | | | | |
| American Electric Power Company Incorporated | | | | 3,236,300 | 294,470,937 |
| FirstEnergy Corporation | | | | 6,797,100 | 272,291,826 |
| | | | | | 566,762,763 |
The accompanying notes are an integral part of these financial statements.
Allspring Special Mid Cap Value Fund | 11
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Water utilities: 1.86% | | | | | |
| American Water Works Company Incorporated | | | | 1,495,000 | $ 219,002,550 |
| Total Common stocks (Cost $8,701,962,047) | | | | | 11,138,363,923 |
| | | | Expiration
date | | |
| Warrants: 0.00% | | | | | |
| Financials: 0.00% | | | | | |
| Capital markets: 0.00% | | | | | |
| Pershing Square Warrant Escrow Shares ♦† | | | 7-24-2025 | 769,690 | 0 |
| Total Warrants (Cost $4,560,928) | | | | | 0 |
| | | Yield | | | |
| Short-term investments: 5.05% | | | | | |
| Investment companies: 5.05% | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 4.69% | | 593,825,763 | 593,825,763 |
| Total Short-term investments (Cost $593,825,763) | | | | | 593,825,763 |
| Total investments in securities (Cost $9,300,348,738) | 99.88% | | | | 11,732,189,686 |
| Other assets and liabilities, net | 0.12 | | | | 13,595,398 |
| Total net assets | 100.00% | | | | $11,745,785,084 |
| † | Non-income-earning security |
| ♦ | The security is fair valued in accordance with Allspring Funds Management's valuation procedures, as the Board-designated valuation designee. |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
| Abbreviations: |
| REIT | Real estate investment trust |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Special Mid Cap Value Fund
Portfolio of investments—March 31, 2023 (unaudited)
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Common stocks | | | | | | | | | |
| Reynolds Consumer Products Incorporated | $272,524,977 | $ 2,696,955 | $ 0 | $ 0 | | $ 15,684,068 | | $ 290,906,000 | 10,578,400 | $ 4,819,742 |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | 468,119,059 | 1,086,432,847 | (960,726,143) | 0 | | 0 | | 593,825,763 | 593,825,763 | 10,242,546 |
Investments in
affiliates no longer held at end of period | | | | | | | | | | |
| Securities Lending Cash Investments LLC | 21,600,000 | 5,851,560 | (27,452,122) | 562 | | 0 | | 0 | 0 | 18,216 # |
| | | | | $562 | | $15,684,068 | | $884,731,763 | | $15,080,504 |
| # | Amount shown represents income before fees and rebates. |
The accompanying notes are an integral part of these financial statements.
Allspring Special Mid Cap Value Fund | 13
Statement of assets and liabilities—March 31, 2023 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $8,431,301,043)
| $ 10,847,457,923 |
Investments in affiliated securities, at value (cost $869,047,695)
| 884,731,763 |
Cash
| 4,798 |
Receivable for Fund shares sold
| 29,077,583 |
Receivable for dividends
| 25,446,518 |
Receivable for investments sold
| 10,426,279 |
Prepaid expenses and other assets
| 968,836 |
Total assets
| 11,798,113,700 |
| Liabilities | |
Payable for investments purchased
| 28,637,693 |
Payable for Fund shares redeemed
| 15,063,287 |
Management fee payable
| 6,885,152 |
Administration fees payable
| 1,187,416 |
Distribution fees payable
| 84,638 |
Trustees’ fees and expenses payable
| 4,858 |
Accrued expenses and other liabilities
| 465,572 |
Total liabilities
| 52,328,616 |
Total net assets
| $11,745,785,084 |
| Net assets consist of | |
Paid-in capital
| $ 9,063,224,131 |
Total distributable earnings
| 2,682,560,953 |
Total net assets
| $11,745,785,084 |
| Computation of net asset value and offering price per share | |
Net assets – Class A
| $ 1,298,262,153 |
Shares outstanding – Class A1
| 30,010,789 |
Net asset value per share – Class A
| $43.26 |
Maximum offering price per share – Class A2
| $45.90 |
Net assets – Class C
| $ 117,637,906 |
Shares outstanding – Class C1
| 2,903,552 |
Net asset value per share – Class C
| $40.52 |
Net assets – Class R
| $ 24,628,316 |
Shares outstanding – Class R1
| 560,161 |
Net asset value per share – Class R
| $43.97 |
Net assets – Class R6
| $ 3,078,561,514 |
Shares outstanding – Class R61
| 68,753,657 |
Net asset value per share – Class R6
| $44.78 |
Net assets – Administrator Class
| $ 309,015,388 |
Shares outstanding – Administrator Class1
| 6,969,167 |
Net asset value per share – Administrator Class
| $44.34 |
Net assets – Institutional Class
| $ 6,917,679,807 |
Shares outstanding – Institutional Class1
| 154,737,260 |
Net asset value per share – Institutional Class
| $44.71 |
| 1 | The Fund has an unlimited number of authorized shares. |
| 2 | Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Special Mid Cap Value Fund
Statement of operations—six months ended March 31, 2023 (unaudited)
| | |
| Investment income | |
Dividends
| $ 106,469,005 |
Income from affiliated securities
| 15,063,747 |
Total investment income
| 121,532,752 |
| Expenses | |
Management fee
| 37,974,516 |
| Administration fees | |
Class A
| 1,325,959 |
Class C
| 125,149 |
Class R
| 26,572 |
Class R6
| 439,405 |
Administrator Class
| 202,730 |
Institutional Class
| 4,467,507 |
| Shareholder servicing fees | |
Class A
| 1,578,522 |
Class C
| 148,844 |
Class R
| 31,633 |
Administrator Class
| 388,645 |
| Distribution fees | |
Class C
| 446,531 |
Class R
| 31,574 |
Custody and accounting fees
| 192,864 |
Professional fees
| 23,427 |
Registration fees
| 18,218 |
Shareholder report expenses
| 201 |
Trustees’ fees and expenses
| 11,087 |
Other fees and expenses
| 51,530 |
Total expenses
| 47,484,914 |
Net investment income
| 74,047,838 |
| Realized and unrealized gains (losses) on investments | |
| Net realized gains on | |
Unaffiliated securities
| 310,051,325 |
Affiliated securities
| 562 |
Net realized gains on investments
| 310,051,887 |
| Net change in unrealized gains (losses) on | |
Unaffiliated securities
| 1,127,820,489 |
Affiliated securities
| 15,684,068 |
Net change in unrealized gains (losses) on investments
| 1,143,504,557 |
Net realized and unrealized gains (losses) on investments
| 1,453,556,444 |
Net increase in net assets resulting from operations
| $1,527,604,282 |
The accompanying notes are an integral part of these financial statements.
Allspring Special Mid Cap Value Fund | 15
Statement of changes in net assets
| | | | | |
| | Six months ended
March 31, 2023
(unaudited) | Year ended
September 30, 2022 |
| Operations | | | | |
Net investment income
| | $ 74,047,838 | | $ 100,142,762 |
Net realized gains on investments
| | 310,051,887 | | 840,973,766 |
Net change in unrealized gains (losses) on investments
| | 1,143,504,557 | | (1,827,828,925) |
Net increase (decrease) in net assets resulting from operations
| | 1,527,604,282 | | (886,712,397) |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class A
| | (102,285,171) | | (110,358,404) |
Class C
| | (9,430,371) | | (13,179,402) |
Class R
| | (1,960,608) | | (2,629,091) |
Class R6
| | (237,972,216) | | (285,467,612) |
Administrator Class
| | (24,865,616) | | (35,968,625) |
Institutional Class
| | (562,285,015) | | (709,096,674) |
Total distributions to shareholders
| | (938,798,997) | | (1,156,699,808) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class A
| 4,039,796 | 176,677,711 | 7,751,410 | 372,215,224 |
Class C
| 323,241 | 13,391,503 | 405,027 | 18,038,819 |
Class R
| 57,939 | 2,593,922 | 105,843 | 5,089,721 |
Class R6
| 10,177,500 | 464,678,061 | 15,938,770 | 778,779,921 |
Administrator Class
| 564,926 | 25,571,406 | 945,270 | 45,991,976 |
Institutional Class
| 20,806,461 | 949,629,736 | 34,907,411 | 1,701,993,232 |
| | | 1,632,542,339 | | 2,922,108,893 |
| Reinvestment of distributions | | | | |
Class A
| 2,185,133 | 94,493,841 | 2,107,086 | 100,816,278 |
Class C
| 223,322 | 9,002,114 | 275,193 | 12,400,184 |
Class R
| 44,728 | 1,960,608 | 54,264 | 2,629,091 |
Class R6
| 4,822,812 | 216,198,148 | 5,339,952 | 264,158,691 |
Administrator Class
| 558,463 | 24,747,212 | 731,733 | 35,793,083 |
Institutional Class
| 12,091,678 | 540,975,336 | 13,797,049 | 681,214,678 |
| | | 887,377,259 | | 1,097,012,005 |
| Payment for shares redeemed | | | | |
Class A
| (3,036,206) | (133,676,907) | (6,023,376) | (285,845,424) |
Class C
| (461,259) | (19,125,608) | (705,880) | (31,262,478) |
Class R
| (97,923) | (4,425,187) | (183,311) | (8,874,137) |
Class R6
| (6,142,414) | (280,540,133) | (19,063,414) | (935,061,047) |
Administrator Class
| (1,153,335) | (52,536,067) | (2,433,931) | (118,746,155) |
Institutional Class
| (25,000,528) | (1,142,068,827) | (44,254,040) | (2,144,475,188) |
| | | (1,632,372,729) | | (3,524,264,429) |
Net increase in net assets resulting from capital share transactions
| | 887,546,869 | | 494,856,469 |
Total increase (decrease) in net assets
| | 1,476,352,154 | | (1,548,555,736) |
| Net assets | | | | |
Beginning of period
| | 10,269,432,930 | | 11,817,988,666 |
End of period
| | $11,745,785,084 | | $10,269,432,930 |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Special Mid Cap Value Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class A | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $40.97 | $49.22 | $35.33 | $39.63 | $37.59 | $37.49 |
Net investment income
| 0.18 | 0.22 | 0.13 | 0.18 | 0.26 | 0.15 |
Net realized and unrealized gains (losses) on investments
| 5.84 | (3.63) | 13.91 | (2.85) | 2.54 | 1.50 |
Total from investment operations
| 6.02 | (3.41) | 14.04 | (2.67) | 2.80 | 1.65 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.32) | (0.11) | (0.15) | (0.23) | (0.17) | (0.23) |
Net realized gains
| (3.41) | (4.73) | 0.00 | (1.40) | (0.59) | (1.32) |
Total distributions to shareholders
| (3.73) | (4.84) | (0.15) | (1.63) | (0.76) | (1.55) |
Net asset value, end of period
| $43.26 | $40.97 | $49.22 | $35.33 | $39.63 | $37.59 |
Total return1
| 14.76% | (8.32)% | 39.83% | (7.22)% | 7.81% | 4.50% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.12% | 1.12% | 1.13% | 1.14% | 1.15% | 1.15% |
Net expenses
| 1.12% | 1.12% | 1.13% | 1.14% | 1.15% | 1.15% |
Net investment income
| 0.99% | 0.55% | 0.17% | 0.56% | 0.67% | 0.40% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 14% | 24% | 38% | 51% | 37% | 37% |
Net assets, end of period (000s omitted)
| $1,298,262 | $1,098,924 | $1,131,411 | $969,508 | $1,003,560 | $1,038,883 |
| 1 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Special Mid Cap Value Fund | 17
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class C | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $38.43 | $46.68 | $33.63 | $37.85 | $36.02 | $36.03 |
Net investment income (loss)
| 0.07 | (0.11) | (0.25) 1 | (0.11) | (0.07) | (0.14) |
Net realized and unrealized gains (losses) on investments
| 5.43 | (3.41) | 13.30 | (2.71) | 2.49 | 1.46 |
Total from investment operations
| 5.50 | (3.52) | 13.05 | (2.82) | 2.42 | 1.32 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.01) |
Net realized gains
| (3.41) | (4.73) | 0.00 | (1.40) | (0.59) | (1.32) |
Total distributions to shareholders
| (3.41) | (4.73) | 0.00 | (1.40) | (0.59) | (1.33) |
Net asset value, end of period
| $40.52 | $38.43 | $46.68 | $33.63 | $37.85 | $36.02 |
Total return2
| 14.36% | (9.03)% | 38.80% | (7.89)% | 7.00% | 3.72% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.87% | 1.87% | 1.88% | 1.89% | 1.90% | 1.90% |
Net expenses
| 1.87% | 1.87% | 1.88% | 1.89% | 1.90% | 1.90% |
Net investment income (loss)
| 0.23% | (0.22)% | (0.58)% | (0.19)% | (0.09)% | (0.35)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 14% | 24% | 38% | 51% | 37% | 37% |
Net assets, end of period (000s omitted)
| $117,638 | $108,314 | $132,741 | $110,318 | $147,086 | $174,839 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Special Mid Cap Value Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class R | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $41.50 | $49.81 | $35.74 | $40.10 | $38.09 | $38.08 |
Net investment income (loss)
| 0.16 | 0.13 | (0.04) 1 | 0.09 | 0.17 | 0.09 |
Net realized and unrealized gains (losses) on investments
| 5.88 | (3.71) | 14.15 | (2.90) | 2.57 | 1.49 |
Total from investment operations
| 6.04 | (3.58) | 14.11 | (2.81) | 2.74 | 1.58 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.16) | 0.00 | (0.04) | (0.15) | (0.14) | (0.25) |
Net realized gains
| (3.41) | (4.73) | 0.00 | (1.40) | (0.59) | (1.32) |
Total distributions to shareholders
| (3.57) | (4.73) | (0.04) | (1.55) | (0.73) | (1.57) |
Net asset value, end of period
| $43.97 | $41.50 | $49.81 | $35.74 | $40.10 | $38.09 |
Total return2
| 14.62% | (8.55)% | 39.51% | (7.45)% | 7.52% | 4.23% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.37% | 1.37% | 1.38% | 1.39% | 1.40% | 1.40% |
Net expenses
| 1.37% | 1.37% | 1.38% | 1.39% | 1.40% | 1.40% |
Net investment income (loss)
| 0.72% | 0.28% | (0.08)% | 0.31% | 0.43% | 0.18% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 14% | 24% | 38% | 51% | 37% | 37% |
Net assets, end of period (000s omitted)
| $24,628 | $23,048 | $28,821 | $24,705 | $31,961 | $24,575 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Special Mid Cap Value Fund | 19
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class R6 | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $42.36 | $50.72 | $36.39 | $40.76 | $38.67 | $38.52 |
Net investment income
| 0.30 | 0.46 | 0.29 | 0.36 | 0.40 | 0.32 1 |
Net realized and unrealized gains (losses) on investments
| 6.03 | (3.79) | 14.36 | (2.94) | 2.62 | 1.55 |
Total from investment operations
| 6.33 | (3.33) | 14.65 | (2.58) | 3.02 | 1.87 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.50) | (0.30) | (0.32) | (0.39) | (0.34) | (0.40) |
Net realized gains
| (3.41) | (4.73) | 0.00 | (1.40) | (0.59) | (1.32) |
Total distributions to shareholders
| (3.91) | (5.03) | (0.32) | (1.79) | (0.93) | (1.72) |
Net asset value, end of period
| $44.78 | $42.36 | $50.72 | $36.39 | $40.76 | $38.67 |
Total return2
| 15.03% | (7.93)% | 40.44% | (6.84)% | 8.28% | 4.95% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.69% | 0.69% | 0.70% | 0.71% | 0.72% | 0.72% |
Net expenses
| 0.69% | 0.69% | 0.70% | 0.71% | 0.72% | 0.72% |
Net investment income
| 1.43% | 0.96% | 0.60% | 0.99% | 1.12% | 0.85% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 14% | 24% | 38% | 51% | 37% | 37% |
Net assets, end of period (000s omitted)
| $3,078,562 | $2,537,407 | $2,925,693 | $2,103,895 | $2,094,860 | $1,493,787 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Special Mid Cap Value Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Administrator Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $41.90 | $50.22 | $36.02 | $40.35 | $38.23 | $38.12 |
Net investment income
| 0.24 | 0.39 | 0.23 | 0.24 1 | 0.27 1 | 0.18 1 |
Net realized and unrealized gains (losses) on investments
| 5.94 | (3.85) | 14.13 | (2.93) | 2.61 | 1.52 |
Total from investment operations
| 6.18 | (3.46) | 14.36 | (2.69) | 2.88 | 1.70 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.33) | (0.13) | (0.16) | (0.24) | (0.17) | (0.27) |
Net realized gains
| (3.41) | (4.73) | 0.00 | (1.40) | (0.59) | (1.32) |
Total distributions to shareholders
| (3.74) | (4.86) | (0.16) | (1.64) | (0.76) | (1.59) |
Net asset value, end of period
| $44.34 | $41.90 | $50.22 | $36.02 | $40.35 | $38.23 |
Total return2
| 14.82% | (8.26)% | 39.96% | (7.15)% | 7.88% | 4.58% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.04% | 1.04% | 1.05% | 1.06% | 1.07% | 1.07% |
Net expenses
| 1.04% | 1.04% | 1.05% | 1.06% | 1.07% | 1.07% |
Net investment income
| 1.05% | 0.60% | 0.25% | 0.65% | 0.72% | 0.47% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 14% | 24% | 38% | 51% | 37% | 37% |
Net assets, end of period (000s omitted)
| $309,015 | $293,286 | $389,512 | $324,727 | $604,126 | $978,368 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Special Mid Cap Value Fund | 21
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Institutional Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $42.28 | $50.63 | $36.33 | $40.70 | $38.61 | $38.47 |
Net investment income
| 0.29 | 0.42 | 0.24 | 0.32 | 0.38 1 | 0.26 |
Net realized and unrealized gains (losses) on investments
| 6.00 | (3.78) | 14.35 | (2.94) | 2.60 | 1.56 |
Total from investment operations
| 6.29 | (3.36) | 14.59 | (2.62) | 2.98 | 1.82 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.45) | (0.26) | (0.29) | (0.35) | (0.30) | (0.36) |
Net realized gains
| (3.41) | (4.73) | 0.00 | (1.40) | (0.59) | (1.32) |
Total distributions to shareholders
| (3.86) | (4.99) | (0.29) | (1.75) | (0.89) | (1.68) |
Net asset value, end of period
| $44.71 | $42.28 | $50.63 | $36.33 | $40.70 | $38.61 |
Total return2
| 14.96% | (8.01)% | 40.30% | (6.93)% | 8.17% | 4.84% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.79% | 0.79% | 0.80% | 0.81% | 0.82% | 0.82% |
Net expenses
| 0.79% | 0.79% | 0.80% | 0.81% | 0.82% | 0.82% |
Net investment income
| 1.31% | 0.86% | 0.50% | 0.89% | 1.00% | 0.73% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 14% | 24% | 38% | 51% | 37% | 37% |
Net assets, end of period (000s omitted)
| $6,917,680 | $6,208,455 | $7,209,810 | $5,197,362 | $5,349,953 | $4,937,901 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
22 | Allspring Special Mid Cap Value Fund
Notes to financial statements (unaudited)
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 Special Mid Cap Value Fund (the "Fund") which is a diversified series of the Trust.
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
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC ("Allspring Funds Management"), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee 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. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio of investments.
Securities lending
During the period, the Fund participated in a program to lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities were on loan, the Fund received interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions was invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Effective at the close of business on March 29, 2023, the Fund is no longer participating in the securities lending program and the Securities Lending Fund was liquidated. Securities Lending Fund was managed by Allspring Funds Management and was subadvised by Allspring Global Investments, LLC ("Allspring Investments"), an affiliate of Allspring Funds Management and wholly owned subsidiary of Allspring Global Investments Holdings, LLC. Allspring Funds Management received an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increased. All of the fees received by Allspring Funds Management were paid to Allspring Investments for its services as subadviser.
Investments in Securities Lending Fund were valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the
Allspring Special Mid Cap Value Fund | 23
Notes to financial statements (unaudited)
collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
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.
Dividend income is recognized on the ex-dividend date.
Distributions to shareholders
Distributions to shareholders from net investment income and any net realized gains 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, as applicable, 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 March 31, 2023, the aggregate cost of all investments for federal income tax purposes was $8,013,694,136 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $ 4,916,778,708 |
| Gross unrealized losses | (1,198,283,158) |
| Net unrealized gains | $ 3,718,495,550 |
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 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.
24 | Allspring Special Mid Cap Value Fund
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2023:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Common stocks | | | | |
| Communication services | $ 83,183,452 | $0 | $0 | $ 83,183,452 |
| Consumer discretionary | 1,220,386,889 | 0 | 0 | 1,220,386,889 |
| Consumer staples | 900,859,159 | 0 | 0 | 900,859,159 |
| Energy | 694,223,550 | 0 | 0 | 694,223,550 |
| Financials | 1,809,691,388 | 0 | 0 | 1,809,691,388 |
| Health care | 842,615,861 | 0 | 0 | 842,615,861 |
| Industrials | 2,428,152,923 | 0 | 0 | 2,428,152,923 |
| Information technology | 948,764,472 | 0 | 0 | 948,764,472 |
| Materials | 692,209,092 | 0 | 0 | 692,209,092 |
| Real estate | 732,511,824 | 0 | 0 | 732,511,824 |
| Utilities | 785,765,313 | 0 | 0 | 785,765,313 |
| Warrants | | | | |
| Financials | 0 | 0 | 0 | 0 |
| Short-term investments | | | | |
| Investment companies | 593,825,763 | 0 | 0 | 593,825,763 |
| Total assets | $11,732,189,686 | $0 | $0 | $11,732,189,686 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended March 31, 2023, 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 $500 million | 0.750% |
| Next $500 million | 0.725 |
| Next $1 billion | 0.700 |
| Next $2 billion | 0.675 |
| Next $1 billion | 0.650 |
| Next $5 billion | 0.640 |
| Next $2 billion | 0.630 |
| Next $4 billion | 0.620 |
| Over $16 billion | 0.610 |
For the six months ended March 31, 2023, the management fee was equivalent to an annual rate of 0.66% of the Fund’s average daily net assets.
Allspring Special Mid Cap Value Fund | 25
Notes to financial statements (unaudited)
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 Investments is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.45% and declining to 0.30% 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 | 0.21% |
| Class C | 0.21 |
| Class R | 0.21 |
| Class R6 | 0.03 |
| Administrator Class | 0.13 |
| Institutional Class | 0.13 |
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 January 31, 2024 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. As of March 31, 2023, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class A | 1.16% |
| Class C | 1.91 |
| Class R | 1.41 |
| Class R6 | 0.73 |
| Administrator Class | 1.08 |
| Institutional Class | 0.83 |
Distribution fees
The Trust has adopted a distribution plan for Class C and Class R shares pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class C and Class R shares and paid to Allspring Funds Distributor, LLC ("Allspring Funds Distributor"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares and up to 0.25% of the average daily net assets of Class R shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended March 31, 2023, Allspring Funds Distributor received $26,644 from the sale of Class A shares and $2 in contingent deferred sales charges from redemptions of Class C shares. No contingent deferred sales charges were incurred by Class A shares for the six months ended March 31, 2023.
26 | Allspring Special Mid Cap Value Fund
Notes to financial statements (unaudited)
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, Class R, and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
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. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended March 31, 2023 were $1,517,780,719 and $1,680,061,275, respectively.
6. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended March 31, 2023, there were no borrowings by the Fund under the agreement.
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 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. REDEMPTIONS IN-KIND
During the year ended September 30, 2022, the Fund redeemed assets through in-kind redemptions for shareholders in Class R6. The redemption transactions are reflected on the Statement of Changes in Net Assets. The date of the redemption transaction, value of securities issued from the redemption, cash paid, realized gains (losses) and the percentage of the Fund redeemed by the shareholder was as follows:
| Date | Value of
securities issued | Cash | Realized
losses | % of the
Fund |
| 7-8-2022 | $ 73,359,439 | $1,497,238 | $(7,233,287) | 0.68 % |
Allspring Special Mid Cap Value Fund | 27
Other information (unaudited)
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.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
28 | Allspring Special Mid Cap Value Fund
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 127 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 1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203. 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 Foundation (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. Member of the Advisory Board of CEF of East Central Florida. 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 | Distinguished Visiting Fellow at the Hoover Institution since 2022. 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 |
Allspring Special Mid Cap Value Fund | 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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, from 2007-2022. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. | 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 | Retired. Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer, Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
30 | Allspring Special Mid Cap Value Fund
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 and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, from 2019 to 2022 and 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. |
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 from 2005 to 2010. |
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) | Chief Legal Officer, since 2022; 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.
Allspring Special Mid Cap Value Fund | 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
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.
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.
© 2023 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-04042023-gxvlwsxg 05-23
SAR3323 03-23
Semi-Annual Report
March 31, 2023
Allspring
Diversified Capital Builder Fund
The views expressed and any forward-looking statements are as of March 31, 2023, 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.
Allspring Diversified Capital Builder Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Diversified Capital Builder Fund for the six-month period that ended March 31, 2023. Globally, stocks and bonds rebounded strongly despite ongoing volatility. While navigating persistently high inflation and the impact of ongoing aggressive central bank rate hikes, markets rallied on signs of declining inflation, anticipation of an end to the central bank monetary tightening cycle, and the stimulating impact of China removing its strict COVID-19 lockdowns in December. For the six-month period, domestic U.S. and global stocks and bonds had strong results. After suffering deep and broad losses through 2022, recent fixed income performance benefited from a base of higher yields that can now generate higher income.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 15.62%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 22.13%, while the MSCI EM Index (Net) (USD)3 returned 14.04%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 4.89%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned 10.07%, the Bloomberg Municipal Bond Index6 gained 7.00%, and the ICE BofA U.S. High Yield Index7 returned 7.89%.
Despite high inflation and central bank rate hikes, markets rally.
Equities had a reprieve in October. Value stocks and small caps fared best. Globally, developed markets outpaced emerging market equities, which were hurt by weakness among Chinese stocks. Central banks continued to try to curtail high inflation with aggressive interest rate hikes. Geopolitical risks persisted, including the ongoing Russia-Ukraine war and economic, financial market, and political turmoil in the U.K. Concerns over Europe’s energy crisis eased thanks to unseasonably warm weather and plentiful gas on hand. The U.S. labor market continued its resilience against rising prices as unemployment remained near a record low.
Stocks and bonds rallied in November. Economic news was encouraging, driven by U.S. labor market strength. Although central banks kept raising rates, hopes rose for an easing in the pace of rate hikes and a possible end to central bank monetary tightening in 2023. Although inflation remained at record highs in the eurozone, we began to see signs of a possible decline in inflationary pressures as U.S. inflation moderated, with a 7.1% annual price rise in November and a monthly price increase of just 0.1%. China’s economic data remained weak, reflecting its zero-COVID-19 policy.
| 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 2023. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring Diversified Capital Builder Fund
Letter to shareholders (unaudited)
Financial markets cooled in December, with U.S. equities posting negative overall results in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever with flat overall monthly returns as markets weighed the hopes for an end to the monetary tightening cycle with the reality that central banks had not completed their jobs yet. U.S. Consumer Price Index (CPI)1 data showed a strong consistent trend downward, which brought down the 12-month CPI to 6.5% in December from 9.1% in June. Other countries and regions reported still-high but declining inflation rates as the year winded down.
The year 2023 began with a rally across global equities and fixed income securities. Investor optimism rose in response to data indicating declining inflation rates and the reopening of China’s economy with the abrupt end to its zero-COVID-19 policy. The U.S. reported surprisingly strong job gains––employers added more than 500,000 jobs––and unemployment fell to 3.4%, the lowest level since 1969. Meanwhile, wage growth, seen as a potential contributor to ongoing high inflation, continued to moderate. All eyes remained fixed on the Federal Reserve (Fed) and on how many more rate hikes remain in this tightening cycle. The 0.25% federal funds rate hike announced in January was the Fed’s smallest rate increase since March 2022.
Financial markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks will likely continue their monetary tightening cycle for longer than markets had priced in. In this environment—where strong economic data is seen as bad news—the resilient U.S. labor market was seen as a negative while the inflation rate has not been falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the Bank of England and the European Central Bank both raised rates by 0.50%. At this stage in the economic cycle, the overriding question remained: “What will central banks do?” In February, the answer appeared to be: “Move rates higher for longer.”
The collapse of Silicon Valley Bank in March, the second-largest banking failure in U.S. history, led to a classic bank run that spread to Europe, where Switzerland’s Credit Suisse was taken over by its rival, UBS. The sudden banking industry uncertainty led some clients of regional banks to transfer deposits to a handful of U.S. banking giants while bank shareholders sold stock. The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. The U.S. labor market remained resilient. The euro-area composite Purchasing Managers’ Index2 rose to 53.70, indicating expansion, for March. And China’s economy continued to rebound after the removal of its COVID-19 lockdown. Inflation rates in the U.S., the U.K., and Europe all remained higher than central bank targets, leading to additional rate hikes in March.
“ The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China.”
| 1 | The U.S. 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. |
| 2 | The Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. You cannot invest directly in an index. |
Allspring Diversified Capital Builder Fund | 3
Letter to shareholders (unaudited)
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.
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
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.
4 | Allspring Diversified Capital Builder Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks long-term total return, consisting of capital appreciation and current income. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Robert Junkin, Margaret Patel |
| Average annual total returns (%) as of March 31, 2023 |
| | | 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 (EKBAX) | 1-20-1998 | -9.91 | 6.71 | 9.27 | | -4.41 | 7.98 | 9.91 | | 1.11 | 1.11 |
| Class C (EKBCX) | 1-22-1998 | -6.11 | 7.17 | 9.25 | | -5.11 | 7.17 | 9.25 | | 1.86 | 1.86 |
| Administrator Class (EKBDX) | 7-30-2010 | – | – | – | | -4.37 | 8.06 | 10.04 | | 1.03 | 1.03 |
| Institutional Class (EKBYX) | 1-26-1998 | – | – | – | | -4.13 | 8.33 | 10.30 | | 0.78 | 0.78 |
| Diversified Capital Builder Blended Index3 | – | – | – | – | | -7.04 | 9.02 | 10.07 | | – | – |
| ICE BofA U.S. Cash Pay High Yield Index4 | – | – | – | – | | -3.41 | 3.08 | 4.03 | | – | – |
| Russell 1000® Index5 | – | – | – | – | | -8.39 | 10.87 | 12.01 | | – | – |
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 return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. 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.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
For Class A shares, the maximum front-end sales charge is 5.75%. 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. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
| 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 January 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.12% for Class A, 1.87% for Class C, 1.05% for Administrator Class, and 0.78% for Institutional 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. 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 | Source: Allspring Funds Management, LLC. The Diversified Capital Builder Blended Index is composed 75% of the Russell 1000® Index and 25% of the ICE BofA U.S. Cash Pay High Yield Index. You cannot invest directly in an index. |
| 4 | The ICE BofA U.S. Cash Pay High Yield Index is an unmanaged market index that provides a broad-based performance measure of the non-investment grade U.S. domestic bond index. You cannot invest directly in an index. Copyright 2023. ICE Data Indices, LLC. All rights reserved. |
| 5 | The Russell 1000® Index measures the performance of the 1,000 largest companies in the Russell 3000® Index, which represents approximately 92% of the total market capitalization of the Russell 3000® Index. You cannot invest directly in an index. |
Balanced funds may invest in stocks and bonds. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond 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 held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to foreign investment risk, high-yield securities risk, and smaller-company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.
6 | Allspring Diversified Capital Builder Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of March 31, 20231 |
| Broadcom Incorporated | 4.40 |
| L3Harris Technologies Incorporated | 4.26 |
| Amphenol Corporation Class A | 4.26 |
| Leidos Holdings Incorporated | 3.74 |
| Advanced Micro Devices Incorporated | 3.60 |
| The Timken Company | 3.32 |
| Berry Global Group Incorporated | 3.25 |
| Microchip Technology Incorporated | 2.67 |
| AbbVie Incorporated | 2.62 |
| Parker-Hannifin Corporation | 2.43 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Portfolio composition as of March 31, 20231 |
| 1 | Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Diversified Capital Builder Fund | 7
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 October 1, 2022 to March 31, 2023.
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 sales charges (loads) and 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
10-1-2022 | Ending
account value
3-31-2023 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class A | | | | |
| Actual | $1,000.00 | $1,167.62 | $ 6.00 | 1.11% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.40 | $ 5.59 | 1.11% |
| Class C | | | | |
| Actual | $1,000.00 | $1,164.07 | $10.04 | 1.86% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,015.66 | $ 9.35 | 1.86% |
| Administrator Class | | | | |
| Actual | $1,000.00 | $1,167.91 | $ 5.57 | 1.03% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.80 | $ 5.19 | 1.03% |
| Institutional Class | | | | |
| Actual | $1,000.00 | $1,169.87 | $ 4.22 | 0.78% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,021.04 | $ 3.93 | 0.78% |
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 182 divided by 365 (to reflect the one-half-year period).
8 | Allspring Diversified Capital Builder Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Common stocks: 79.94% | | | | | |
| Energy: 0.61% | | | | | |
| Oil, gas & consumable fuels: 0.61% | | | | | |
| ONEOK Incorporated | | | | 100,000 | $ 6,354,000 |
| Financials: 5.00% | | | | | |
| Banks: 5.00% | | | | | |
| Bank of America Corporation | | | | 600,000 | 17,160,000 |
| PNC Financial Services Group Incorporated | | | | 135,000 | 17,158,500 |
| Regions Financial Corporation | | | | 490,000 | 9,094,400 |
| US Bancorp | | | | 230,000 | 8,291,500 |
| | | | | | 51,704,400 |
| Health care: 12.20% | | | | | |
| Biotechnology: 4.49% | | | | | |
| AbbVie Incorporated | | | | 170,000 | 27,092,900 |
| Amgen Incorporated | | | | 80,000 | 19,340,000 |
| | | | | | 46,432,900 |
| Health care equipment & supplies: 0.91% | | | | | |
| Abbott Laboratories | | | | 35,000 | 3,544,098 |
| Becton Dickinson & Company | | | | 20,000 | 4,950,800 |
| STERIS plc | | | | 5,000 | 956,400 |
| | | | | | 9,451,298 |
| Life sciences tools & services: 3.96% | | | | | |
| Bio-Rad Laboratories Incorporated Class A † | | | | 15,000 | 7,185,300 |
| Charles River Laboratories International Incorporated † | | | | 30,000 | 6,054,600 |
| Danaher Corporation | | | | 40,000 | 10,081,600 |
| IQVIA Holdings Incorporated † | | | | 60,000 | 11,933,400 |
| Thermo Fisher Scientific Incorporated | | | | 10,000 | 5,763,700 |
| | | | | | 41,018,600 |
| Pharmaceuticals: 2.84% | | | | | |
| Bristol-Myers Squibb Company | | | | 300,000 | 20,793,000 |
| Catalent Incorporated † | | | | 50,000 | 3,285,500 |
| Merck & Company Incorporated | | | | 50,000 | 5,319,500 |
| | | | | | 29,398,000 |
| Industrials: 23.43% | | | | | |
| Aerospace & defense: 5.20% | | | | | |
| Curtiss-Wright Corporation | | | | 55,000 | 9,694,300 |
| L3Harris Technologies Incorporated | | | | 225,000 | 44,154,000 |
| | | | | | 53,848,300 |
| Commercial services & supplies: 0.69% | | | | | |
| Clean Harbors Incorporated † | | | | 50,000 | 7,128,000 |
| Electrical equipment: 3.60% | | | | | |
| AMETEK Incorporated | | | | 145,000 | 21,072,850 |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Capital Builder Fund | 9
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Electrical equipment (continued) | | | | | |
| Eaton Corporation plc | | | | 85,000 | $ 14,563,900 |
| Generac Holdings Incorporated † | | | | 15,000 | 1,620,150 |
| | | | | | 37,256,900 |
| Machinery: 10.20% | | | | | |
| Crane Holdings Company | | | | 60,000 | 6,810,000 |
| IDEX Corporation | | | | 80,000 | 18,482,400 |
| John Bean Technologies Corporation | | | | 175,000 | 19,125,750 |
| Oshkosh Corporation | | | | 20,000 | 1,663,600 |
| Parker-Hannifin Corporation | | | | 75,000 | 25,208,250 |
| The Timken Company | | | | 420,000 | 34,322,400 |
| | | | | | 105,612,400 |
| Professional services: 3.74% | | | | | |
| Leidos Holdings Incorporated | | | | 420,000 | 38,665,200 |
| Information technology: 29.10% | | | | | |
| Communications equipment: 2.29% | | | | | |
| Motorola Solutions Incorporated | | | | 83,000 | 23,748,790 |
| Electronic equipment, instruments & components: 7.40% | | | | | |
| Amphenol Corporation Class A | | | | 540,000 | 44,128,800 |
| Jabil Circuit Incorporated | | | | 115,000 | 10,138,400 |
| Teledyne Technologies Incorporated † | | | | 50,000 | 22,368,000 |
| | | | | | 76,635,200 |
| Semiconductors & semiconductor equipment: 15.60% | | | | | |
| Advanced Micro Devices Incorporated † | | | | 380,000 | 37,243,800 |
| Broadcom Incorporated | | | | 71,000 | 45,549,340 |
| Marvell Technology Incorporated | | | | 500,000 | 21,650,000 |
| Microchip Technology Incorporated | | | | 330,000 | 27,647,400 |
| Micron Technology Incorporated | | | | 210,000 | 12,671,400 |
| NVIDIA Corporation | | | | 27,000 | 7,499,790 |
| Qualcomm Incorporated | | | | 50,000 | 6,379,000 |
| Synaptics Incorporated † | | | | 25,000 | 2,778,750 |
| | | | | | 161,419,480 |
| Software: 3.62% | | | | | |
| Adobe Incorporated † | | | | 20,000 | 7,707,400 |
| Ansys Incorporated † | | | | 30,000 | 9,984,000 |
| Autodesk Incorporated † | | | | 30,000 | 6,244,800 |
| Synopsys Incorporated † | | | | 35,000 | 13,518,750 |
| | | | | | 37,454,950 |
| Technology hardware, storage & peripherals: 0.19% | | | | | |
| NetApp Incorporated | | | | 30,000 | 1,915,500 |
| Materials: 9.60% | | | | | |
| Chemicals: 4.86% | | | | | |
| Celanese Corporation Series A | | | | 40,000 | 4,355,600 |
| Eastman Chemical Company | | | | 160,000 | 13,494,400 |
| Huntsman Corporation | | | | 315,000 | 8,618,400 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Diversified Capital Builder Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Chemicals (continued) | | | | | |
| Olin Corporation | | | | 210,000 | $ 11,655,000 |
| Westlake Chemical Corporation | | | | 105,000 | 12,177,900 |
| | | | | | 50,301,300 |
| Containers & packaging: 4.74% | | | | | |
| AptarGroup Incorporated | | | | 76,500 | 9,041,535 |
| Berry Global Group Incorporated | | | | 570,000 | 33,573,000 |
| Sealed Air Corporation | | | | 140,000 | 6,427,400 |
| | | | | | 49,041,935 |
| Total Common stocks (Cost $638,988,802) | | | | | 827,387,153 |
| | | Interest
rate | Maturity
date | Principal | |
| Corporate bonds and notes: 15.38% | | | | | |
| Consumer staples: 1.21% | | | | | |
| Food products: 0.72% | | | | | |
| Post Holdings Incorporated 144A | | 4.50% | 9-15-2031 | $ 8,435,000 | 7,423,644 |
| Household durables: 0.49% | | | | | |
| Spectrum Brands Incorporated 144A | | 3.88 | 3-15-2031 | 6,200,000 | 5,070,465 |
| Health care: 2.61% | | | | | |
| Health care equipment & supplies: 0.47% | | | | | |
| Hologic Incorporated 144A | | 3.25 | 2-15-2029 | 5,440,000 | 4,839,791 |
| Health care providers & services: 1.84% | | | | | |
| AMN Healthcare Incorporated 144A | | 4.00 | 4-15-2029 | 1,000,000 | 885,000 |
| AMN Healthcare Incorporated 144A | | 4.63 | 10-1-2027 | 1,000,000 | 926,903 |
| Catalent Pharma Solutions Incorporated 144A | | 3.13 | 2-15-2029 | 1,000,000 | 879,108 |
| Davita Incorporated 144A | | 4.63 | 6-1-2030 | 13,550,000 | 11,566,145 |
| Encompass Health Corporation | | 4.63 | 4-1-2031 | 5,500,000 | 4,804,498 |
| | | | | | 19,061,654 |
| Life sciences tools & services: 0.17% | | | | | |
| Charles River Laboratories Incorporated 144A | | 4.00 | 3-15-2031 | 2,000,000 | 1,749,989 |
| Pharmaceuticals: 0.13% | | | | | |
| Organon Finance 1 LLC 144A | | 5.13 | 4-30-2031 | 1,500,000 | 1,331,464 |
| Industrials: 2.97% | | | | | |
| Aerospace & defense: 1.06% | | | | | |
| TransDigm Group Incorporated | | 4.63 | 1-15-2029 | 9,000,000 | 8,001,000 |
| TransDigm Group Incorporated | | 6.38 | 6-15-2026 | 3,000,000 | 2,932,500 |
| | | | | | 10,933,500 |
| Commercial services & supplies: 1.06% | | | | | |
| ACCO Brands Corporation 144A | | 4.25 | 3-15-2029 | 2,000,000 | 1,726,520 |
| Clean Harbors Incorporated 144A | | 6.38 | 2-1-2031 | 8,000,000 | 8,162,040 |
| Stericycle Incorporated 144A | | 3.88 | 1-15-2029 | 1,310,000 | 1,143,608 |
| | | | | | 11,032,168 |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Capital Builder Fund | 11
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Construction & engineering: 0.85% | | | | | |
| Dycom Industries Incorporated 144A | | 4.50% | 4-15-2029 | $ 9,720,000 | $ 8,772,300 |
| Information technology: 1.79% | | | | | |
| Electronic equipment, instruments & components: 0.75% | | | | | |
| TTM Technologies Incorporated 144A | | 4.00 | 3-1-2029 | 8,890,000 | 7,734,300 |
| IT services: 0.37% | | | | | |
| Gartner Incorporated 144A | | 3.63 | 6-15-2029 | 4,350,000 | 3,881,527 |
| Semiconductors & semiconductor equipment: 0.67% | | | | | |
| Synaptics Incorporated 144A | | 4.00 | 6-15-2029 | 8,000,000 | 6,889,087 |
| Materials: 3.82% | | | | | |
| Chemicals: 2.00% | | | | | |
| Koppers Incorporated 144A | | 6.00 | 2-15-2025 | 8,190,000 | 8,188,362 |
| Tronox Incorporated 144A | | 4.63 | 3-15-2029 | 5,310,000 | 4,446,594 |
| Valvoline Incorporated 144A | | 3.63 | 6-15-2031 | 9,495,000 | 8,057,077 |
| | | | | | 20,692,033 |
| Containers & packaging: 1.82% | | | | | |
| Ball Corporation | | 2.88 | 8-15-2030 | 12,000,000 | 9,995,460 |
| Berry Global Incorporated 144A | | 4.50 | 2-15-2026 | 1,189,000 | 1,144,413 |
| Sealed Air Corporation 144A | | 5.00 | 4-15-2029 | 5,000,000 | 4,698,238 |
| Sealed Air Corporation 144A | | 6.13 | 2-1-2028 | 3,000,000 | 3,033,465 |
| | | | | | 18,871,576 |
| Real estate: 1.86% | | | | | |
| Specialized REITs: 1.86% | | | | | |
| Iron Mountain Incorporated 144A | | 4.50 | 2-15-2031 | 12,350,000 | 10,612,726 |
| SBA Communications Corporation | | 3.13 | 2-1-2029 | 10,000,000 | 8,699,400 |
| | | | | | 19,312,126 |
| Utilities: 1.12% | | | | | |
| Electric utilities: 0.09% | | | | | |
| NRG Energy Incorporated 144A | | 5.25 | 6-15-2029 | 1,000,000 | 928,365 |
| Independent power & renewable electricity producers: 1.03% | | | | | |
| Vistra Operations Company LLC 144A | | 4.38 | 5-1-2029 | 12,000,000 | 10,624,984 |
| Total Corporate bonds and notes (Cost $177,567,018) | | | | | 159,148,973 |
| Yankee corporate bonds and notes: 0.96% | | | | | |
| Industrials: 0.25% | | | | | |
| Electrical equipment: 0.25% | | | | | |
| Sensata Technologies BV 144A | | 4.00 | 4-15-2029 | 2,880,000 | 2,602,008 |
| Information technology: 0.41% | | | | | |
| Technology hardware, storage & peripherals: 0.41% | | | | | |
| Seagate HDD | | 3.13 | 7-15-2029 | 1,500,000 | 1,188,484 |
| Seagate HDD | | 4.09 | 6-1-2029 | 3,488,000 | 3,081,635 |
| | | | | | 4,270,119 |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Diversified Capital Builder Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Materials: 0.30% | | | | | |
| Chemicals: 0.30% | | | | | |
| Methanex Corporation | | 5.25% | 12-15-2029 | $ 3,293,000 | $ 3,078,263 |
| Total Yankee corporate bonds and notes (Cost $11,122,653) | | | | | 9,950,390 |
| | | Yield | | Shares | |
| Short-term investments: 3.93% | | | | | |
| Investment companies: 3.93% | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 4.69 | | 40,698,119 | 40,698,119 |
| Total Short-term investments (Cost $40,698,119) | | | | | 40,698,119 |
| Total investments in securities (Cost $868,376,592) | 100.21% | | | | 1,037,184,635 |
| Other assets and liabilities, net | (0.21) | | | | (2,208,115) |
| Total net assets | 100.00% | | | | $1,034,976,520 |
| † | Non-income-earning security |
| 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. |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
| Abbreviations: |
| REIT | Real estate investment trust |
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | $45,655,057 | $119,174,092 | $(124,131,030) | $ 0 | | $0 | | $ 40,698,119 | 40,698,119 | $ 278,170 |
Investments in affiliates no
longer held at end of period | | | | | | | | | | |
| Securities Lending Cash Investments LLC | 853,650 | 10,415,155 | (11,268,545) | (260) | | 0 | | 0 | 0 | 21,117 # |
| | | | | $ (260) | | $0 | | $40,698,119 | | $299,287 |
| # | Amount shown represents income before fees and rebates. |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Capital Builder Fund | 13
Statement of assets and liabilities—March 31, 2023 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $827,678,473)
| $ 996,486,516 |
Investments in affiliated securities, at value (cost $40,698,119)
| 40,698,119 |
Cash
| 14 |
Receivable for investments sold
| 6,248,637 |
Receivable for Fund shares sold
| 2,874,403 |
Receivable for dividends and interest
| 2,720,745 |
Receivable for securities lending income, net
| 34 |
Prepaid expenses and other assets
| 113,884 |
Total assets
| 1,049,142,352 |
| Liabilities | |
Payable for investments purchased
| 12,261,238 |
Payable for Fund shares redeemed
| 890,681 |
Management fee payable
| 571,426 |
Administration fees payable
| 168,944 |
Distribution fee payable
| 73,255 |
Trustees’ fees and expenses payable
| 42 |
Accrued expenses and other liabilities
| 200,246 |
Total liabilities
| 14,165,832 |
Total net assets
| $1,034,976,520 |
| Net assets consist of | |
Paid-in capital
| $ 821,357,679 |
Total distributable earnings
| 213,618,841 |
Total net assets
| $1,034,976,520 |
| Computation of net asset value and offering price per share | |
Net assets – Class A
| $ 588,738,830 |
Shares outstanding – Class A1
| 54,771,052 |
Net asset value per share – Class A
| $10.75 |
Maximum offering price per share – Class A2
| $11.41 |
Net assets – Class C
| $ 109,990,117 |
Shares outstanding – Class C1
| 10,281,966 |
Net asset value per share – Class C
| $10.70 |
Net assets – Administrator Class
| $ 7,843,545 |
Shares outstanding – Administrator Class1
| 729,022 |
Net asset value per share – Administrator Class
| $10.76 |
Net assets – Institutional Class
| $ 328,404,028 |
Shares outstanding – Institutional Class1
| 30,828,523 |
Net asset value per share – Institutional Class
| $10.65 |
| 1 | The Fund has an unlimited number of authorized shares. |
| 2 | Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Diversified Capital Builder Fund
Statement of operations—six months ended March 31, 2023 (unaudited)
| | |
| Investment income | |
Dividends
| $ 6,700,333 |
Interest
| 3,618,443 |
Income from affiliated securities
| 282,808 |
Total investment income
| 10,601,584 |
| Expenses | |
Management fee
| 3,160,572 |
| Administration fees | |
Class A
| 609,274 |
Class C
| 113,343 |
Administrator Class
| 5,072 |
Institutional Class
| 206,661 |
| Shareholder servicing fees | |
Class A
| 723,956 |
Class C
| 134,893 |
Administrator Class
| 9,755 |
| Distribution fee | |
Class C
| 404,289 |
Custody and accounting fees
| 25,913 |
Professional fees
| 33,395 |
Registration fees
| 18,155 |
Shareholder report expenses
| 37,768 |
Trustees’ fees and expenses
| 11,087 |
Other fees and expenses
| 22,623 |
Total expenses
| 5,516,756 |
| Less: Fee waivers and/or expense reimbursements | |
Administrator Class
| (6) |
Institutional Class
| (5,227) |
Net expenses
| 5,511,523 |
Net investment income
| 5,090,061 |
| Realized and unrealized gains (losses) on investments | |
| Net realized gains (losses) on | |
Unaffiliated securities
| 44,533,728 |
Affiliated securities
| (260) |
Net realized gains on investments
| 44,533,468 |
Net change in unrealized gains (losses) on investments
| 104,609,798 |
Net realized and unrealized gains (losses) on investments
| 149,143,266 |
Net increase in net assets resulting from operations
| $154,233,327 |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Capital Builder Fund | 15
Statement of changes in net assets
| | | | | |
| | Six months ended
March 31, 2023
(unaudited) | Year ended
September 30, 2022 |
| Operations | | | | |
Net investment income
| | $ 5,090,061 | | $ 9,090,644 |
Net realized gains on investments
| | 44,533,468 | | 104,792,091 |
Net change in unrealized gains (losses) on investments
| | 104,609,798 | | (245,737,953) |
Net increase (decrease) in net assets resulting from operations
| | 154,233,327 | | (131,855,218) |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class A
| | (62,781,673) | | (48,856,763) |
Class C
| | (11,258,926) | | (8,492,157) |
Administrator Class
| | (844,131) | | (628,563) |
Institutional Class
| | (35,084,247) | | (28,118,033) |
Total distributions to shareholders
| | (109,968,977) | | (86,095,516) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class A
| 1,389,922 | 14,873,552 | 1,895,248 | 23,198,979 |
Class C
| 596,272 | 6,336,297 | 839,411 | 10,172,964 |
Administrator Class
| 45,113 | 484,899 | 158,199 | 1,917,899 |
Institutional Class
| 3,225,700 | 34,501,751 | 5,116,605 | 62,971,289 |
| | | 56,196,499 | | 98,261,131 |
| Reinvestment of distributions | | | | |
Class A
| 5,707,304 | 59,687,338 | 3,668,175 | 46,644,848 |
Class C
| 1,065,615 | 11,082,145 | 657,011 | 8,377,639 |
Administrator Class
| 80,379 | 841,385 | 49,242 | 626,639 |
Institutional Class
| 3,144,518 | 32,628,990 | 2,056,821 | 25,879,740 |
| | | 104,239,858 | | 81,528,866 |
| Payment for shares redeemed | | | | |
Class A
| (4,320,528) | (46,282,386) | (5,621,756) | (68,933,571) |
Class C
| (1,178,992) | (12,612,050) | (1,808,544) | (21,983,302) |
Administrator Class
| (123,917) | (1,333,595) | (131,220) | (1,620,634) |
Institutional Class
| (4,017,850) | (42,760,013) | (7,289,533) | (87,696,578) |
| | | (102,988,044) | | (180,234,085) |
Net increase (decrease) in net assets resulting from capital share transactions
| | 57,448,313 | | (444,088) |
Total increase (decrease) in net assets
| | 101,712,663 | | (218,394,822) |
| Net assets | | | | |
Beginning of period
| | 933,263,857 | | 1,151,658,679 |
End of period
| | $1,034,976,520 | | $ 933,263,857 |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Diversified Capital Builder Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class A | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $10.29 | $12.64 | $10.88 | $10.71 | $10.88 | $10.30 |
Net investment income
| 0.05 | 0.10 1 | 0.09 | 0.11 | 0.14 | 0.10 |
Net realized and unrealized gains (losses) on investments
| 1.63 | (1.50) | 1.87 | 0.63 | 0.37 | 1.06 |
Total from investment operations
| 1.68 | (1.40) | 1.96 | 0.74 | 0.51 | 1.16 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.05) | (0.10) | (0.10) | (0.13) | (0.14) | (0.09) |
Net realized gains
| (1.17) | (0.85) | (0.10) | (0.44) | (0.54) | (0.49) |
Total distributions to shareholders
| (1.22) | (0.95) | (0.20) | (0.57) | (0.68) | (0.58) |
Net asset value, end of period
| $10.75 | $10.29 | $12.64 | $10.88 | $10.71 | $10.88 |
Total return2
| 16.76% | (12.45)% | 18.18% | 7.26% | 5.60% | 11.72% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.11% | 1.11% | 1.11% | 1.11% | 1.12% | 1.11% |
Net expenses
| 1.11% | 1.10% | 1.11% | 1.11% | 1.12% | 1.11% |
Net investment income
| 0.98% | 0.77% | 0.76% | 1.09% | 1.38% | 0.96% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 18% | 19% | 28% | 44% | 61% | 31% |
Net assets, end of period (000s omitted)
| $588,739 | $534,863 | $657,696 | $601,951 | $616,346 | $574,760 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Capital Builder Fund | 17
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class C | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $10.24 | $12.58 | $10.86 | $10.69 | $10.86 | $10.28 |
Net investment income
| 0.01 | 0.00 1,2 | 0.00 1,2 | 0.03 | 0.06 | 0.02 |
Net realized and unrealized gains (losses) on investments
| 1.63 | (1.48) | 1.86 | 0.63 | 0.37 | 1.06 |
Total from investment operations
| 1.64 | (1.48) | 1.86 | 0.66 | 0.43 | 1.08 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.01) | (0.01) | (0.04) | (0.05) | (0.06) | (0.01) |
Net realized gains
| (1.17) | (0.85) | (0.10) | (0.44) | (0.54) | (0.49) |
Total distributions to shareholders
| (1.18) | (0.86) | (0.14) | (0.49) | (0.60) | (0.50) |
Net asset value, end of period
| $10.70 | $10.24 | $12.58 | $10.86 | $10.69 | $10.86 |
Total return3
| 16.41% | (13.12)% | 17.25% | 6.44% | 4.81% | 10.88% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.86% | 1.85% | 1.86% | 1.86% | 1.87% | 1.87% |
Net expenses
| 1.86% | 1.85% | 1.86% | 1.86% | 1.87% | 1.87% |
Net investment income
| 0.23% | 0.02% | 0.01% | 0.34% | 0.65% | 0.21% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 18% | 19% | 28% | 44% | 61% | 31% |
Net assets, end of period (000s omitted)
| $109,990 | $100,367 | $127,209 | $121,947 | $118,297 | $131,601 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Amount is less than $0.005. |
| 3 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Diversified Capital Builder Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Administrator Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $10.30 | $12.64 | $10.89 | $10.72 | $10.89 | $10.32 |
Net investment income
| 0.06 | 0.11 1 | 0.10 1 | 0.12 1 | 0.15 1 | 0.11 1 |
Net realized and unrealized gains (losses) on investments
| 1.63 | (1.49) | 1.86 | 0.63 | 0.37 | 1.06 |
Total from investment operations
| 1.69 | (1.38) | 1.96 | 0.75 | 0.52 | 1.17 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.06) | (0.11) | (0.11) | (0.14) | (0.15) | (0.11) |
Net realized gains
| (1.17) | (0.85) | (0.10) | (0.44) | (0.54) | (0.49) |
Total distributions to shareholders
| (1.23) | (0.96) | (0.21) | (0.58) | (0.69) | (0.60) |
Net asset value, end of period
| $10.76 | $10.30 | $12.64 | $10.89 | $10.72 | $10.89 |
Total return2
| 16.79% | (12.30)% | 18.17% | 7.33% | 5.67% | 11.73% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.03% | 1.03% | 1.03% | 1.03% | 1.04% | 1.03% |
Net expenses
| 1.03% | 1.03% | 1.03% | 1.03% | 1.04% | 1.03% |
Net investment income
| 1.06% | 0.86% | 0.84% | 1.19% | 1.47% | 1.04% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 18% | 19% | 28% | 44% | 61% | 31% |
Net assets, end of period (000s omitted)
| $7,844 | $7,489 | $8,234 | $6,429 | $9,708 | $13,821 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Capital Builder Fund | 19
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Institutional Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $10.20 | $12.54 | $10.79 | $10.64 | $10.81 | $10.25 |
Net investment income
| 0.07 | 0.13 1 | 0.13 | 0.14 | 0.18 | 0.14 |
Net realized and unrealized gains (losses) on investments
| 1.62 | (1.48) | 1.86 | 0.62 | 0.36 | 1.05 |
Total from investment operations
| 1.69 | (1.35) | 1.99 | 0.76 | 0.54 | 1.19 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.07) | (0.14) | (0.14) | (0.17) | (0.17) | (0.14) |
Net realized gains
| (1.17) | (0.85) | (0.10) | (0.44) | (0.54) | (0.49) |
Total distributions to shareholders
| (1.24) | (0.99) | (0.24) | (0.61) | (0.71) | (0.63) |
Net asset value, end of period
| $10.65 | $10.20 | $12.54 | $10.79 | $10.64 | $10.81 |
Total return2
| 16.99% | (12.19)% | 18.51% | 7.48% | 5.98% | 12.04% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.78% | 0.78% | 0.78% | 0.78% | 0.79% | 0.79% |
Net expenses
| 0.78% | 0.77% | 0.78% | 0.78% | 0.78% | 0.78% |
Net investment income
| 1.31% | 1.10% | 1.09% | 1.42% | 1.73% | 1.30% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 18% | 19% | 28% | 44% | 61% | 31% |
Net assets, end of period (000s omitted)
| $328,404 | $290,545 | $358,519 | $319,229 | $359,278 | $326,283 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Diversified Capital Builder Fund
Notes to financial statements (unaudited)
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 Diversified Capital Builder Fund (the "Fund") which is a diversified series of the Trust.
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
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
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 in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC ("Allspring Funds Management"), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee 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. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio of investments.
Securities lending
During the period, the Fund participated in a program to lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities were on loan, the Fund received interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions was invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Effective at the close of business on March 29, 2023, the Fund is no longer participating in the securities lending program and the Securities Lending Fund was liquidated. Securities Lending Fund was managed by Allspring Funds Management and was subadvised by Allspring Global Investments, LLC ("Allspring Investments"), an affiliate of Allspring Funds Management and wholly owned subsidiary of Allspring Global Investments Holdings, LLC. Allspring Funds Management received an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increased. All of the fees received by Allspring Funds Management were paid to Allspring Investments for its services as subadviser.
Investments in Securities Lending Fund were valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending
Allspring Diversified Capital Builder Fund | 21
Notes to financial statements (unaudited)
agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
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.
Dividend income is recognized on the ex-dividend date.
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 are recorded on the ex-dividend date and paid from net investment income quarterly and any net realized gains are 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, as applicable, 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 March 31, 2023, the aggregate cost of all investments for federal income tax purposes was $868,429,021 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $231,939,835 |
| Gross unrealized losses | (63,184,221) |
| Net unrealized gains | $168,755,614 |
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 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.
22 | Allspring Diversified Capital Builder Fund
Notes to financial statements (unaudited)
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 March 31, 2023:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Common stocks | | | | |
| Energy | $ 6,354,000 | $ 0 | $0 | $ 6,354,000 |
| Financials | 51,704,400 | 0 | 0 | 51,704,400 |
| Health care | 126,300,798 | 0 | 0 | 126,300,798 |
| Industrials | 242,510,800 | 0 | 0 | 242,510,800 |
| Information technology | 301,173,920 | 0 | 0 | 301,173,920 |
| Materials | 99,343,235 | 0 | 0 | 99,343,235 |
| Corporate bonds and notes | 0 | 159,148,973 | 0 | 159,148,973 |
| Yankee corporate bonds and notes | 0 | 9,950,390 | 0 | 9,950,390 |
| Short-term investments | | | | |
| Investment companies | 40,698,119 | 0 | 0 | 40,698,119 |
| Total assets | $868,085,272 | $169,099,363 | $0 | $1,037,184,635 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended March 31, 2023, 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:
Allspring Diversified Capital Builder Fund | 23
Notes to financial statements (unaudited)
| Average daily net assets | Management fee |
| First $500 million | 0.650% |
| Next $500 million | 0.600 |
| Next $2 billion | 0.550 |
| Next $2 billion | 0.525 |
| Next $5 billion | 0.490 |
| Over $10 billion | 0.480 |
For the six months ended March 31, 2023, the management fee was equivalent to an annual rate of 0.62% 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 Investments is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.35% and declining to 0.20% 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 | 0.21% |
| Class C | 0.21 |
| Administrator Class | 0.13 |
| Institutional Class | 0.13 |
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 January 31, 2024 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. As of March 31, 2023, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class A | 1.12% |
| Class C | 1.87 |
| Administrator Class | 1.05 |
| Institutional Class | 0.78 |
Prior to February 1, 2023, the Fund's expenses were contractually capped at 1.13% for Class A and 1.88% for Class C.
24 | Allspring Diversified Capital Builder Fund
Notes to financial statements (unaudited)
Distribution fee
The Trust has adopted a distribution plan for Class C shares 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"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended March 31, 2023, Allspring Funds Distributor received $13,406 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended March 31, 2023.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
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. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended March 31, 2023 were $174,875,290 and $199,433,801, respectively.
6. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended March 31, 2023, there were no borrowings by the Fund under the agreement.
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 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.
Allspring Diversified Capital Builder Fund | 25
Other information (unaudited)
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.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
26 | Allspring Diversified Capital Builder Fund
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 127 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 1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203. 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 Foundation (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. Member of the Advisory Board of CEF of East Central Florida. 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 | Distinguished Visiting Fellow at the Hoover Institution since 2022. 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 |
Allspring Diversified Capital Builder Fund | 27
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, from 2007-2022. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. | 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 | Retired. Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer, Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
28 | Allspring Diversified Capital Builder Fund
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 and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, from 2019 to 2022 and 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. |
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 from 2005 to 2010. |
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) | Chief Legal Officer, since 2022; 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.
Allspring Diversified Capital Builder Fund | 29
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
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.
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.
© 2023 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-04042023-o1evyzc6 05-23
SAR4324 03-23
Semi-Annual Report
March 31, 2023
Allspring
Diversified Income Builder Fund
The views expressed and any forward-looking statements are as of March 31, 2023, 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.
Allspring Diversified Income Builder Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Diversified Income Builder Fund for the six-month period that ended March 31, 2023. Globally, stocks and bonds rebounded strongly despite ongoing volatility. While navigating persistently high inflation and the impact of ongoing aggressive central bank rate hikes, markets rallied on signs of declining inflation, anticipation of an end to the central bank monetary tightening cycle, and the stimulating impact of China removing its strict COVID-19 lockdowns in December. For the six-month period, domestic U.S. and global stocks and bonds had strong results. After suffering deep and broad losses through 2022, recent fixed income performance benefited from a base of higher yields that can now generate higher income.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 15.62%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 22.13%, while the MSCI EM Index (Net) (USD)3 returned 14.04%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 4.89%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned 10.07%, the Bloomberg Municipal Bond Index6 gained 7.00%, and the ICE BofA U.S. High Yield Index7 returned 7.89%.
Despite high inflation and central bank rate hikes, markets rally.
Equities had a reprieve in October. Value stocks and small caps fared best. Globally, developed markets outpaced emerging market equities, which were hurt by weakness among Chinese stocks. Central banks continued to try to curtail high inflation with aggressive interest rate hikes. Geopolitical risks persisted, including the ongoing Russia-Ukraine war and economic, financial market, and political turmoil in the U.K. Concerns over Europe’s energy crisis eased thanks to unseasonably warm weather and plentiful gas on hand. The U.S. labor market continued its resilience against rising prices as unemployment remained near a record low.
Stocks and bonds rallied in November. Economic news was encouraging, driven by U.S. labor market strength. Although central banks kept raising rates, hopes rose for an easing in the pace of rate hikes and a possible end to central bank monetary tightening in 2023. Although inflation remained at record highs in the eurozone, we began to see signs of a possible decline in inflationary pressures as U.S. inflation moderated, with a 7.1% annual price rise in November and a monthly price increase of just 0.1%. China’s economic data remained weak, reflecting its zero-COVID-19 policy.
| 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 2023. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring Diversified Income Builder Fund
Letter to shareholders (unaudited)
Financial markets cooled in December, with U.S. equities posting negative overall results in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever with flat overall monthly returns as markets weighed the hopes for an end to the monetary tightening cycle with the reality that central banks had not completed their jobs yet. U.S. Consumer Price Index (CPI)1 data showed a strong consistent trend downward, which brought down the 12-month CPI to 6.5% in December from 9.1% in June. Other countries and regions reported still-high but declining inflation rates as the year winded down.
The year 2023 began with a rally across global equities and fixed income securities. Investor optimism rose in response to data indicating declining inflation rates and the reopening of China’s economy with the abrupt end to its zero-COVID-19 policy. The U.S. reported surprisingly strong job gains––employers added more than 500,000 jobs––and unemployment fell to 3.4%, the lowest level since 1969. Meanwhile, wage growth, seen as a potential contributor to ongoing high inflation, continued to moderate. All eyes remained fixed on the Federal Reserve (Fed) and on how many more rate hikes remain in this tightening cycle. The 0.25% federal funds rate hike announced in January was the Fed’s smallest rate increase since March 2022.
Financial markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks will likely continue their monetary tightening cycle for longer than markets had priced in. In this environment—where strong economic data is seen as bad news—the resilient U.S. labor market was seen as a negative while the inflation rate has not been falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the Bank of England and the European Central Bank both raised rates by 0.50%. At this stage in the economic cycle, the overriding question remained: “What will central banks do?” In February, the answer appeared to be: “Move rates higher for longer.”
The collapse of Silicon Valley Bank in March, the second-largest banking failure in U.S. history, led to a classic bank run that spread to Europe, where Switzerland’s Credit Suisse was taken over by its rival, UBS. The sudden banking industry uncertainty led some clients of regional banks to transfer deposits to a handful of U.S. banking giants while bank shareholders sold stock. The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. The U.S. labor market remained resilient. The euro-area composite Purchasing Managers’ Index2 rose to 53.70, indicating expansion, for March. And China’s economy continued to rebound after the removal of its COVID-19 lockdown. Inflation rates in the U.S., the U.K., and Europe all remained higher than central bank targets, leading to additional rate hikes in March.
“ The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China.”
| 1 | The U.S. 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. |
| 2 | The Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. You cannot invest directly in an index. |
Allspring Diversified Income Builder Fund | 3
Letter to shareholders (unaudited)
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.
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
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.
4 | Allspring Diversified Income Builder Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks long-term total return, consisting of current income and capital appreciation. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Kandarp R. Acharya, CFA, Petros N. Bocray, CFA, FRM |
| Average annual total returns (%) as of March 31, 2023 |
| | | 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 (EKSAX) | 4-14-1987 | -12.58 | 0.69 | 3.37 | | -7.27 | 1.89 | 3.97 | | 1.13 | 0.85 |
| Class C (EKSCX) | 2-1-1993 | -8.97 | 1.11 | 3.36 | | -7.97 | 1.11 | 3.36 | | 1.88 | 1.60 |
| Class R6 (EKSRX)3 | 7-31-2018 | – | – | – | | -6.89 | 2.30 | 4.39 | | 0.70 | 0.42 |
| Administrator Class (EKSDX) | 7-30-2010 | – | – | – | | -7.05 | 1.99 | 4.12 | | 1.05 | 0.77 |
| Institutional Class (EKSYX) | 1-13-1997 | – | – | – | | -6.97 | 2.22 | 4.34 | | 0.80 | 0.52 |
| Diversified Income Builder Blended Index4 | – | – | – | – | | -4.48 | 4.63 | 5.83 | | – | – |
| Bloomberg U.S. Aggregate Bond Index5 | – | – | – | – | | -4.78 | 0.91 | 1.36 | | – | – |
| ICE BofA U.S. Cash Pay High Yield Index6 | – | – | – | – | | -3.41 | 3.08 | 4.03 | | – | – |
| MSCI ACWI (Net)7 | – | – | – | – | | -7.44 | 6.93 | 8.06 | | – | – |
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 return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. 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.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
For Class A shares, the maximum front-end sales charge is 5.75%. 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. Class R6, Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
| 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 January 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.85% for Class A, 1.60% for Class C, 0.42% for Class R6, 0.77% for Administrator Class, and 0.52% for Institutional 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. 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 Class R6 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 Class R6 shares would be higher. |
| 4 | Source: Allspring Funds Management, LLC. The Diversified Income Builder Blended Index is composed 60% of the ICE BofA U.S. Cash Pay High Yield Index, 25% of the Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) (Net) and 15% of the Bloomberg U.S. Aggregate Bond Index. Prior to February 1, 2020, the Diversified Income Builder Blended Index was composed 65% of the ICE BofA U.S. Cash Pay High Yield Index, and 35% of the Russell 1000® Index. Prior to January 2, 2018, the Diversified Income Builder Blended Index was composed 75% of the ICE BofA U.S. Cash Pay High Yield Index, and 25% the Russell 1000® Index. You cannot invest directly in an index. |
| 5 | 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. |
| 6 | The ICE BofA U.S. Cash Pay High Yield Index is an unmanaged market index that provides a broad-based performance measure of the non-investment grade U.S. domestic bond index. You cannot invest directly in an index. Copyright 2023. ICE Data Indices, LLC. All rights reserved. |
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
6 | Allspring Diversified Income Builder Fund
Performance highlights (unaudited)
Footnotes continued from previous page
| 7 | The MSCI ACWI (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. 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 indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
Balanced funds may invest in stocks and bonds. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond 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 held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to foreign investment risk, high-yield securities risk, and smaller-company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.
Allspring Diversified Income Builder Fund | 7
Performance highlights (unaudited)
| Ten largest holdings (%) as of March 31, 20231 |
| Microsoft Corporation | 1.83 |
| Apple Incorporated | 1.51 |
| ING Groep NV, 6.75%, 4-16-2024 | 0.92 |
| Lloyds Banking Group plc, 7.50%, 6-27-2024 | 0.92 |
| Societe Generale SA, 8.00%, 2-9-2025 | 0.88 |
| Amazon.com Incorporated | 0.86 |
| Bankia SA, 6.38%, 9-19-2023 | 0.85 |
| Alphabet Incorporated Class A | 0.78 |
| Enviva Partners LP, 6.50%, 1-15-2026 | 0.77 |
| Service Experts Issuer Series 2021-1A Class C, 5.37%, 2-2-2032 | 0.69 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Portfolio composition as of March 31, 20231 |
| 1 | Figures represent the percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
8 | Allspring Diversified Income Builder Fund
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 October 1, 2022 to March 31, 2023.
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 sales charges (loads) and 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
10-1-2022 | Ending
account value
3-31-2023 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class A | | | | |
| Actual | $1,000.00 | $1,076.99 | $4.40 | 0.85% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.69 | $4.28 | 0.85% |
| Class C | | | | |
| Actual | $1,000.00 | $1,074.58 | $8.28 | 1.60% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,016.95 | $8.05 | 1.60% |
| Class R6 | | | | |
| Actual | $1,000.00 | $1,079.54 | $2.18 | 0.42% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,022.84 | $2.12 | 0.42% |
| Administrator Class | | | | |
| Actual | $1,000.00 | $1,079.66 | $3.99 | 0.77% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,021.09 | $3.88 | 0.77% |
| Institutional Class | | | | |
| Actual | $1,000.00 | $1,079.04 | $2.70 | 0.52% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,022.34 | $2.62 | 0.52% |
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 182 divided by 365 (to reflect the one-half-year period).
Allspring Diversified Income Builder Fund | 9
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Asset-backed securities: 1.64% | | | | | | |
| ABPCI Direct Lending Fund Series 2022-2A Class C 144A | | 8.24% | 3-1-2032 | $ | 1,000,000 | $ 835,214 |
| Aqua Finance Trust Series 2019-A Class A 144A | | 3.14 | 7-16-2040 | | 78,506 | 74,244 |
| Cologix Data Centers Issuer Series 2021-1A Class C 144A | | 5.99 | 12-26-2051 | | 2,400,000 | 2,033,386 |
| Dryden Senior Loan Fund Series 2019-80A Class DR (U.S. SOFR 3 Month +3.10%) 144A± | | 7.76 | 1-17-2033 | | 1,650,000 | 1,456,125 |
| Sound Point CLO Limited Series 2022-1A Class D (U.S. SOFR 3 Month +3.30%) 144A± | | 7.96 | 4-25-2035 | | 500,000 | 432,497 |
| VB-S1 Issuer LLC Series 2022-1A Class F 144A | | 5.27 | 2-15-2052 | | 1,500,000 | 1,352,894 |
| Total Asset-backed securities (Cost $7,128,545) | | | | | | 6,184,360 |
| | | | | Shares | |
| Common stocks: 30.36% | | | | | | |
| Communication services: 2.35% | | | | | | |
| Diversified telecommunication services: 0.58% | | | | | | |
| AT&T Incorporated # | | | | | 44,329 | 853,333 |
| Indus Towers Limited | | | | | 47,372 | 82,584 |
| Orange SA | | | | | 30,949 | 367,680 |
| PT Telekomunikasi Indonesia Persero Tbk | | | | | 2,898,281 | 787,008 |
| Saudi Telecom Company | | | | | 10,645 | 113,859 |
| | | | | | | 2,204,464 |
| Entertainment: 0.05% | | | | | | |
| Live Nation Entertainment Incorporated †# | | | | | 2,609 | 182,630 |
| Interactive media & services: 1.18% | | | | | | |
| Alphabet Incorporated Class A †# | | | | | 28,446 | 2,950,704 |
| Alphabet Incorporated Class C †# | | | | | 3,220 | 334,880 |
| Baidu Incorporated Class A † | | | | | 7,008 | 132,040 |
| Meta Platforms Incorporated Class A †# | | | | | 2,302 | 487,886 |
| Tencent Holdings Limited | | | | | 11,100 | 542,449 |
| | | | | | | 4,447,959 |
| Media: 0.37% | | | | | | |
| Comcast Corporation Class A # | | | | | 17,804 | 674,950 |
| Publicis Groupe SA | | | | | 9,081 | 708,861 |
| | | | | | | 1,383,811 |
| Wireless telecommunication services: 0.17% | | | | | | |
| America Movil SAB de CV ADR | | | | | 3,017 | 63,508 |
| SK Telecom Company Limited | | | | | 16,079 | 596,564 |
| | | | | | | 660,072 |
| Consumer discretionary: 3.65% | | | | | | |
| Automobiles: 0.85% | | | | | | |
| Bajaj Auto Limited | | | | | 3,032 | 143,428 |
| Bayerische Motoren Werke AG | | | | | 5,940 | 651,016 |
| General Motors Company # | | | | | 13,550 | 497,014 |
| Honda Motor Company Limited | | | | | 26,500 | 700,956 |
| Kia Corporation | | | | | 3,058 | 190,844 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Diversified Income Builder Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Automobiles (continued) | | | | | | |
| Stellantis NV | | | | | 36,257 | $ 659,380 |
| Tesla Motors Incorporated †# | | | | | 1,849 | 383,594 |
| | | | | | | 3,226,232 |
| Broadline retail: 1.19% | | | | | | |
| Alibaba Group Holding Limited † | | | | | 36,300 | 459,757 |
| Amazon.com Incorporated †# | | | | | 31,650 | 3,269,129 |
| JD.com Incorporated Class A | | | | | 20,000 | 436,724 |
| MercadoLibre Incorporated †# | | | | | 194 | 255,704 |
| Poya International Company Limited | | | | | 3,700 | 69,514 |
| | | | | | | 4,490,828 |
| Hotels, restaurants & leisure: 0.42% | | | | | | |
| Airbnb Incorporated Class A †# | | | | | 3,740 | 465,256 |
| Chipotle Mexican Grill Incorporated †# | | | | | 279 | 476,613 |
| Meituan Dianping † | | | | | 1,110 | 20,138 |
| Planet Fitness Incorporated Class A †# | | | | | 6,737 | 523,263 |
| Yum China Holdings Incorporated | | | | | 1,500 | 93,941 |
| | | | | | | 1,579,211 |
| Household durables: 0.22% | | | | | | |
| Barratt Developments plc | | | | | ��� 106,947 | 615,456 |
| Midea Group Company Limited Class A | | | | | 27,099 | 212,043 |
| | | | | | | 827,499 |
| Specialty retail: 0.82% | | | | | | |
| AutoZone Incorporated †# | | | | | 165 | 405,595 |
| Boot Barn Holdings Incorporated †# | | | | | 367 | 28,127 |
| China Yongda Automobile Service Holding Company | | | | | 87,000 | 61,805 |
| Chow Tai Fook Jewellery Company Limited | | | | | 65,000 | 129,161 |
| Five Below Incorporated †# | | | | | 1,957 | 403,083 |
| Floor & Decor Holdings Incorporated Class A †# | | | | | 4,936 | 484,814 |
| Leslie's Incorporated †# | | | | | 51,949 | 571,958 |
| O'Reilly Automotive Incorporated †# | | | | | 207 | 175,739 |
| Petco Health & Wellness Company †# | | | | | 3,775 | 33,975 |
| Tractor Supply Company # | | | | | 435 | 102,242 |
| Ulta Beauty Incorporated †# | | | | | 1,191 | 649,893 |
| United Electronics Company | | | | | 2,485 | 51,546 |
| | | | | | | 3,097,938 |
| Textiles, apparel & luxury goods: 0.15% | | | | | | |
| lululemon athletica Incorporated †# | | | | | 636 | 231,625 |
| On Holding AG Class A †# | | | | | 8,275 | 256,773 |
| Prada SPA | | | | | 13,300 | 94,311 |
| | | | | | | 582,709 |
| Consumer staples: 1.06% | | | | | | |
| Beverages: 0.44% | | | | | | |
| Ambev SA | | | | | 29,200 | 82,557 |
| Constellation Brands Incorporated Class A # | | | | | 1,401 | 316,472 |
| Thai Beverage PCL | | | | | 190,400 | 90,279 |
| The Coca-Cola Company # | | | | | 18,738 | 1,162,318 |
| | | | | | | 1,651,626 |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 11
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Consumer staples distribution & retail: 0.51% | | | | | | |
| Cencosud SA | | | | | 53,709 | $ 103,784 |
| Costco Wholesale Corporation # | | | | | 1,631 | 810,395 |
| Magnit PJSC (Acquired 4-29-2013, cost $71,562) ♦†> | | | | | 1,041 | 0 |
| Sysco Corporation # | | | | | 4,905 | 378,813 |
| Target Corporation # | | | | | 3,284 | 543,929 |
| Walmart de Mexico SAB de CV | | | | | 22,700 | 90,699 |
| | | | | | | 1,927,620 |
| Food products: 0.08% | | | | | | |
| China Feihe Limited 144A | | | | | 87,000 | 65,203 |
| Grupo Bimbo SAB de CV Series A | | | | | 16,400 | 82,437 |
| Inner Mongolia Yili Industrial Group Company Limited Class A | | | | | 22,400 | 94,756 |
| Tingyi Holding Corporation | | | | | 37,800 | 63,257 |
| | | | | | | 305,653 |
| Personal care products: 0.03% | | | | | | |
| The Estee Lauder Companies Incorporated Class A # | | | | | 451 | 111,153 |
| Energy: 0.85% | | | | | | |
| Energy equipment & services: 0.02% | | | | | | |
| Arabian Drilling Company † | | | | | 1,828 | 74,411 |
| Oil, gas & consumable fuels: 0.83% | | | | | | |
| ConocoPhillips # | | | | | 10,166 | 1,008,569 |
| Devon Energy Corporation # | | | | | 16,130 | 816,339 |
| Ecopetrol SA ADR | | | | | 8,429 | 89,010 |
| Industries Qatar | | | | | 14,023 | 50,250 |
| Pembina Pipeline Corporation | | | | | 22,863 | 740,616 |
| Shell plc | | | | | 15,893 | 452,928 |
| | | | | | | 3,157,712 |
| Financials: 5.35% | | | | | | |
| Banks: 1.48% | | | | | | |
| ABSA Group Limited | | | | | 5,914 | 60,449 |
| Alinma Bank | | | | | 11,108 | 87,593 |
| Bangkok Bank PCL | | | | | 41,300 | 183,166 |
| Bank of America Corporation # | | | | | 19,763 | 565,222 |
| Bank of the Philippine Islands | | | | | 36,633 | 69,260 |
| Bank Pekao SA | | | | | 4,108 | 81,722 |
| BNP Paribas SA | | | | | 11,539 | 689,081 |
| China Construction Bank Class H | | | | | 193,000 | 124,909 |
| Credicorp Limited | | | | | 433 | 57,325 |
| DBS Group Holdings Limited | | | | | 26,100 | 648,891 |
| Grupo Financiero Banorte SAB de CV | | | | | 7,700 | 64,830 |
| Hana Financial Group Incorporated | | | | | 2,662 | 83,371 |
| KB Financial Group Incorporated | | | | | 2,134 | 77,938 |
| National Bank of Greece SA † | | | | | 9,772 | 47,580 |
| Postal Savings Bank of China Company Limited H Shares 144A | | | | | 1,353,000 | 802,405 |
| PT Bank Mandiri Persero Tbk | | | | | 84,900 | 58,466 |
| PT Bank Negara Indonesia Persero Tbk | | | | | 197,050 | 123,302 |
| RHB Bank Bhd | | | | | 46,058 | 58,275 |
| Standard Bank Group Limited | | | | | 6,205 | 60,163 |
| Svenska Handelsbanken AB Class A | | | | | 54,972 | 476,105 |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Diversified Income Builder Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Banks (continued) | | | | | | |
| Tisco Financial Group PCL | | | | | 20,300 | $ 59,662 |
| US Bancorp | | | | | 17,432 | 628,424 |
| Woori Financial Group Incorporated | | | | | 55,386 | 487,213 |
| | | | | | | 5,595,352 |
| Capital markets: 2.00% | | | | | | |
| 3i Group plc | | | | | 34,996 | 729,438 |
| Ares Capital Corporation # | | | | | 44,749 | 817,788 |
| B3 Brasil Bolsa Balcao SA | | | | | 28,600 | 58,402 |
| Banco BTG Pactual SA | | | | | 16,804 | 65,148 |
| BlackRock Incorporated # | | | | | 479 | 320,508 |
| China International Capital Corporation Limited H Shares 144A | | | | | 55,600 | 111,552 |
| CME Group Incorporated # | | | | | 4,003 | 766,655 |
| Hong Kong Exchanges & Clearing Limited | | | | | 2,000 | 88,649 |
| Interactive Brokers Group Incorporated Class A # | | | | | 5,160 | 426,010 |
| Intercontinental Exchange Incorporated # | | | | | 2,163 | 225,579 |
| LPL Financial Holdings Incorporated # | | | | | 2,982 | 603,557 |
| Man Group plc | | | | | 189,660 | 552,522 |
| MarketAxess Holdings Incorporated # | | | | | 1,626 | 636,238 |
| Oaktree Specialty Lending Company # | | | | | 39,380 | 739,163 |
| Tradeweb Markets Incorporated Class A # | | | | | 17,748 | 1,402,447 |
| | | | | | | 7,543,656 |
| Consumer finance: 0.02% | | | | | | |
| 360 DigiTech Incorporated ADR Class A | | | | | 4,616 | 89,550 |
| Financial services: 0.96% | | | | | | |
| Flywire Corporation †# | | | | | 12,748 | 374,281 |
| LIC Housing Finance Limited | | | | | 32,948 | 132,182 |
| MasterCard Incorporated Class A # | | | | | 5,202 | 1,890,459 |
| PayPal Holdings Incorporated †# | | | | | 2,078 | 157,803 |
| Shift4 Payments Incorporated Class A †# | | | | | 3,198 | 242,408 |
| Visa Incorporated Class A # | | | | | 3,649 | 822,704 |
| | | | | | | 3,619,837 |
| Insurance: 0.75% | | | | | | |
| AXA SA | | | | | 32,445 | 990,143 |
| BB Seguridade Participacoes SA | | | | | 108,446 | 695,593 |
| Cathay Financial Holding Company | | | | | 86,000 | 118,409 |
| Ping An Insurance Group Company Class H | | | | | 23,700 | 153,320 |
| Progressive Corporation # | | | | | 1,643 | 235,048 |
| Sanlam Limited | | | | | 28,994 | 91,794 |
| Sompo Holdings Incorporated | | | | | 14,200 | 562,676 |
| | | | | | | 2,846,983 |
| Mortgage REITs: 0.14% | | | | | | |
| Starwood Property Trust Incorporated | | | | | 29,222 | 516,937 |
| Health care: 3.55% | | | | | | |
| Biotechnology: 0.84% | | | | | | |
| AbbVie Incorporated # | | | | | 4,801 | 765,135 |
| Argenx SE †# | | | | | 286 | 106,558 |
| BioMarin Pharmaceutical Incorporated †# | | | | | 2,373 | 230,751 |
| Gilead Sciences Incorporated # | | | | | 9,252 | 767,638 |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 13
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Biotechnology (continued) | | | | | | |
| Horizon Therapeutics plc †# | | | | | 3,524 | $ 384,609 |
| Sarepta Therapeutics Incorporated †# | | | | | 1,070 | 147,478 |
| Seagen Incorporated †# | | | | | 1,574 | 318,688 |
| Vertex Pharmaceuticals Incorporated †# | | | | | 1,215 | 382,810 |
| Zhejiang NHU Company Limited Class A | | | | | 22,048 | 57,587 |
| | | | | | | 3,161,254 |
| Health care equipment & supplies: 0.87% | | | | | | |
| Boston Scientific Corporation †# | | | | | 23,469 | 1,174,154 |
| Hologic Incorporated †# | | | | | 6,951 | 560,946 |
| Insulet Corporation †# | | | | | 1,261 | 402,209 |
| Intuitive Surgical Incorporated †# | | | | | 1,475 | 376,818 |
| iRhythm Technologies Incorporated †# | | | | | 971 | 120,433 |
| Penumbra Incorporated †# | | | | | 397 | 110,640 |
| Shockwave Medical Incorporated †# | | | | | 1,361 | 295,106 |
| Stryker Corporation # | | | | | 938 | 267,771 |
| | | | | | | 3,308,077 |
| Health care providers & services: 0.61% | | | | | | |
| Cardinal Health Incorporated # | | | | | 3,212 | 242,506 |
| Sinopharm Group Company Limited Class H | | | | | 35,200 | 106,366 |
| UnitedHealth Group Incorporated # | | | | | 4,156 | 1,964,084 |
| | | | | | | 2,312,956 |
| Health care technology: 0.09% | | | | | | |
| Veeva Systems Incorporated Class A †# | | | | | 1,835 | 337,255 |
| Life sciences tools & services: 0.23% | | | | | | |
| Agilent Technologies Incorporated # | | | | | 1,325 | 183,301 |
| Bio-Techne Corporation # | | | | | 1,540 | 114,253 |
| Repligen Corporation †# | | | | | 589 | 99,164 |
| Thermo Fisher Scientific Incorporated # | | | | | 192 | 110,663 |
| West Pharmaceutical Services Incorporated # | | | | | 1,012 | 350,628 |
| | | | | | | 858,009 |
| Pharmaceuticals: 0.91% | | | | | | |
| Bristol-Myers Squibb Company # | | | | | 13,314 | 922,793 |
| China Medical System Holding Limited | | | | | 334,000 | 526,974 |
| CSPC Pharmaceutical Group Limited | | | | | 96,000 | 94,110 |
| GSK plc | | | | | 36,932 | 652,563 |
| Pfizer Incorporated # | | | | | 17,347 | 707,758 |
| Revance Therapeutics Incorporated †# | | | | | 12,099 | 389,709 |
| Zoetis Incorporated # | | | | | 1,007 | 167,605 |
| | | | | | | 3,461,512 |
| Industrials: 2.89% | | | | | | |
| Aerospace & defense: 0.06% | | | | | | |
| Embraer SA † | | | | | 5,945 | 97,320 |
| TransDigm Group Incorporated # | | | | | 185 | 136,354 |
| | | | | | | 233,674 |
| Air freight & logistics: 0.07% | | | | | | |
| United Parcel Service Incorporated Class B # | | | | | 1,350 | 261,887 |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Diversified Income Builder Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Commercial services & supplies: 0.43% | | | | | | |
| Casella Waste Systems Incorporated Class A †# | | | | | 3,693 | $ 305,263 |
| Copart Incorporated †# | | | | | 17,282 | 1,299,779 |
| | | | | | | 1,605,042 |
| Construction & engineering: 0.05% | | | | | | |
| China Communications Services Corporation Limited H Shares | | | | | 164,000 | 80,699 |
| China State Construction International Holdings | | | | | 108,500 | 122,749 |
| | | | | | | 203,448 |
| Electrical equipment: 0.77% | | | | | | |
| Array Technologies Incorporated †# | | | | | 9,890 | 216,393 |
| Nextracker Incorporated Class A † | | | | | 515 | 18,674 |
| nVent Electric plc # | | | | | 20,520 | 881,129 |
| Schneider Electric SE | | | | | 4,062 | 678,857 |
| Shoals Technologies Group Class A †# | | | | | 25,393 | 578,706 |
| Signify NV 144A | | | | | 16,216 | 540,724 |
| | | | | | | 2,914,483 |
| Ground transportation: 0.20% | | | | | | |
| J.B. Hunt Transport Services Incorporated | | | | | 1,094 | 191,953 |
| Uber Technologies Incorporated †# | | | | | 17,149 | 543,623 |
| | | | | | | 735,576 |
| Industrial conglomerates: 0.22% | | | | | | |
| Siemens AG | | | | | 4,444 | 719,945 |
| The Bidvest Group Limited | | | | | 8,194 | 116,626 |
| | | | | | | 836,571 |
| Machinery: 0.45% | | | | | | |
| AGCO Corporation # | | | | | 4,858 | 656,802 |
| Doosan Bobcat Incorporated | | | | | 2,960 | 99,555 |
| Fortive Corporation # | | | | | 4,346 | 296,267 |
| Hillenbrand Incorporated # | | | | | 12,577 | 597,785 |
| Zoomlion Heavy Industry Science and Technology Company Limited H Shares | | | | | 97,400 | 51,513 |
| | | | | | | 1,701,922 |
| Marine transportation: 0.26% | | | | | | |
| A.P. Moller-Mærsk AS Class B | | | | | 226 | 410,802 |
| SITC International Holdings Incorporated | | | | | 269,000 | 578,124 |
| | | | | | | 988,926 |
| Passenger airlines: 0.02% | | | | | | |
| Copa Holdings SA Class A | | | | | 710 | 65,569 |
| Professional services: 0.16% | | | | | | |
| CoStar Group Incorporated †# | | | | | 1,926 | 132,605 |
| Persol Holdings Company Limited | | | | | 24,200 | 487,265 |
| | | | | | | 619,870 |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 15
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Trading companies & distributors: 0.20% | | | | | | |
| BOC Aviation Limited 144A | | | | | 11,900 | $ 92,282 |
| United Rentals Incorporated | | | | | 1,641 | 649,442 |
| | | | | | | 741,724 |
| Information technology: 8.76% | | | | | | |
| Communications equipment: 0.56% | | | | | | |
| Arista Networks Incorporated †# | | | | | 4,743 | 796,160 |
| Cisco Systems Incorporated # | | | | | 13,729 | 717,683 |
| Nokia Oyj | | | | | 124,183 | 609,600 |
| | | | | | | 2,123,443 |
| Electronic equipment, instruments & components: 0.11% | | | | | | |
| Chroma ATE Incorporated | | | | | 12,000 | 70,164 |
| E INK Holdings Incorporated | | | | | 14,000 | 85,451 |
| Hon Hai Precision Industry Company Limited | | | | | 17,900 | 61,272 |
| Zebra Technologies Corporation Class A †# | | | | | 613 | 194,934 |
| | | | | | | 411,821 |
| IT services: 0.73% | | | | | | |
| Accenture plc Class A # | | | | | 2,477 | 707,951 |
| Capgemini SE | | | | | 2,732 | 507,702 |
| DigitalOcean Holdings Incorporated †# | | | | | 7,040 | 275,757 |
| Globant SA † | | | | | 299 | 49,039 |
| Infosys Limited ADR | | | | | 13,089 | 228,272 |
| MongoDB Incorporated †# | | | | | 3,127 | 728,966 |
| Tech Mahindra Limited | | | | | 5,977 | 80,574 |
| Thoughtworks Holding Incorporated †# | | | | | 23,479 | 172,805 |
| | | | | | | 2,751,066 |
| Semiconductors & semiconductor equipment: 2.55% | | | | | | |
| Advanced Micro Devices Incorporated †# | | | | | 2,193 | 214,936 |
| Allegro MicroSystems Incorporated † | | | | | 21,099 | 1,012,541 |
| ASMPT Limited | | | | | 7,700 | 76,368 |
| Broadcom Incorporated # | | | | | 1,410 | 904,571 |
| KLA Corporation # | | | | | 1,777 | 709,325 |
| Mediatek Incorporated | | | | | 5,000 | 129,631 |
| Microchip Technology Incorporated # | | | | | 19,911 | 1,668,144 |
| Monolithic Power Systems Incorporated # | | | | | 2,404 | 1,203,298 |
| NVIDIA Corporation # | | | | | 4,896 | 1,359,962 |
| Qualcomm Incorporated # | | | | | 6,041 | 770,711 |
| Realtek Semiconductor Corporation | | | | | 8,000 | 102,115 |
| Taiwan Semiconductor Manufacturing Company Limited | | | | | 51,800 | 907,775 |
| Taiwan Semiconductor Manufacturing Company Limited ADR # | | | | | 4,980 | 463,240 |
| Vanguard International Semiconductor Corporation | | | | | 31,000 | 99,169 |
| | | | | | | 9,621,786 |
| Software: 3.05% | | | | | | |
| Clearwater Analytics Holdings Incorporated Class A †# | | | | | 9,680 | 154,493 |
| Crowdstrike Holdings Incorporated Class A †# | | | | | 2,551 | 350,150 |
| Datadog Incorporated Class A †# | | | | | 659 | 47,883 |
| Doubleverify Holdings Incorporated †# | | | | | 1,716 | 51,737 |
| Dynatrace Incorporated †# | | | | | 6,722 | 284,341 |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Diversified Income Builder Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Software (continued) | | | | | | |
| Fair Isaac Corporation †# | | | | | 661 | $ 464,478 |
| Five9 Incorporated †# | | | | | 3,131 | 226,340 |
| Intuit Incorporated # | | | | | 1,445 | 644,224 |
| Microsoft Corporation # | | | | | 24,048 | 6,933,038 |
| Open Text Corporation | | | | | 19,271 | 743,320 |
| Palo Alto Networks Incorporated †# | | | | | 2,736 | 546,489 |
| Paycom Software Incorporated †# | | | | | 1,260 | 383,053 |
| Paycor HCM Incorporated †# | | | | | 16,215 | 430,022 |
| ServiceNow Incorporated †# | | | | | 615 | 285,803 |
| | | | | | | 11,545,371 |
| Technology hardware, storage & peripherals: 1.76% | | | | | | |
| Advantech Company Limited | | | | | 9,300 | 113,775 |
| Apple Incorporated # | | | | | 34,630 | 5,710,487 |
| Samsung Electronics Company Limited | | | | | 6,916 | 342,003 |
| Samsung Electronics Company Limited GDR 144A | | | | | 383 | 473,114 |
| | | | | | | 6,639,379 |
| Materials: 0.75% | | | | | | |
| Chemicals: 0.33% | | | | | | |
| Formosa Plastics Corporation | | | | | 20,000 | 60,380 |
| Ganfeng Lithium Company Limited H Shares 144A | | | | | 8,120 | 50,599 |
| Hengli Petrochemical Company limited Class A | | | | | 46,300 | 109,242 |
| Linde plc | | | | | 2,640 | 938,362 |
| Petronas Chemicals Group Bhd | | | | | 30,400 | 48,852 |
| Sociedad Quimica Minera de Chile | | | | | 619 | 50,176 |
| | | | | | | 1,257,611 |
| Metals & mining: 0.42% | | | | | | |
| Alrosa PJSC (Acquired 5-6-2021, cost $65,232) ♦†> | | | | | 42,660 | 0 |
| Anglo American plc | | | | | 1,626 | 54,083 |
| Baoshan Iron & Steel Company Limited Class A | | | | | 102,900 | 93,435 |
| Companhia Brasileira de Aluminio | | | | | 39,021 | 58,357 |
| Fortescue Metals Group Limited | | | | | 30,230 | 454,404 |
| Gold Fields Limited ADR | | | | | 6,140 | 81,785 |
| Reliance Steel & Aluminum Company # | | | | | 2,281 | 585,624 |
| Southern Copper Corporation | | | | | 1,662 | 126,728 |
| Vale SA | | | | | 7,000 | 110,888 |
| | | | | | | 1,565,304 |
| Real estate: 0.64% | | | | | | |
| Office REITs: 0.03% | | | | | | |
| Embassy Office Parks REIT | | | | | 31,348 | 119,116 |
| Real estate management & development: 0.07% | | | | | | |
| China Resources Land Limited | | | | | 26,050 | 118,627 |
| China Vanke Company Limited H Shares | | | | | 44,700 | 70,534 |
| Country Garden Services Holdings Company Limited | | | | | 39,000 | 67,240 |
| | | | | | | 256,401 |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 17
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Retail REITs: 0.35% | | | | | | |
| Brixmor Property Group Incorporated # | | | | | 28,005 | $ 602,668 |
| Simon Property Group Incorporated # | | | | | 6,581 | 736,875 |
| | | | | | | 1,339,543 |
| Specialized REITs: 0.19% | | | | | | |
| Equinix Incorporated # | | | | | 187 | 134,834 |
| Weyerhaeuser Company # | | | | | 19,492 | 587,294 |
| | | | | | | 722,128 |
| Utilities: 0.51% | | | | | | |
| Electric utilities: 0.38% | | | | | | |
| EDP Energias do Brasil SA | | | | | 157,116 | 692,514 |
| Power Grid Corporation of India Limited | | | | | 53,255 | 146,615 |
| SSE plc | | | | | 26,677 | 595,266 |
| | | | | | | 1,434,395 |
| Gas utilities: 0.11% | | | | | | |
| ENN Energy Holdings Limited | | | | | 8,400 | 115,021 |
| Gail India Limited | | | | | 124,775 | 160,130 |
| Mahanagar Gas Limited | | | | | 13,325 | 159,661 |
| | | | | | | 434,812 |
Independent power & renewable electricity
producers: 0.02% | | | | | | |
| NHPC Limited | | | | | 119,333 | 58,542 |
| Total Common stocks (Cost $103,193,395) | | | | | | 114,752,316 |
| | | Interest
rate | Maturity
date | Principal | |
| Corporate bonds and notes: 40.63% | | | | | | |
| Communication services: 6.08% | | | | | | |
| Diversified telecommunication services: 0.19% | | | | | | |
| Cablevision Lightpath LLC 144A | | 3.88% | 9-15-2027 | $ | 550,000 | 442,602 |
| Cablevision Lightpath LLC 144A | | 5.63 | 9-15-2028 | | 375,000 | 258,769 |
| | | | | | | 701,371 |
| Entertainment: 0.52% | | | | | | |
| Dave & Buster's Incorporated 144A | | 7.63 | 11-1-2025 | | 325,000 | 331,199 |
| Live Nation Entertainment Incorporated 144A | | 5.63 | 3-15-2026 | | 545,000 | 527,288 |
| Live Nation Entertainment Incorporated 144A | | 6.50 | 5-15-2027 | | 1,115,000 | 1,126,980 |
| | | | | | | 1,985,467 |
| Media: 5.37% | | | | | | |
| CCO Holdings LLC 144A | | 4.25 | 1-15-2034 | | 1,255,000 | 981,561 |
| CCO Holdings LLC 144A | | 4.50 | 8-15-2030 | | 1,700,000 | 1,436,500 |
| CCO Holdings LLC 144A | | 5.13 | 5-1-2027 | | 1,520,000 | 1,436,400 |
| Cinemark USA Incorporated 144A | | 5.25 | 7-15-2028 | | 1,080,000 | 934,200 |
| Cinemark USA Incorporated 144A | | 5.88 | 3-15-2026 | | 200,000 | 188,648 |
| Cinemark USA Incorporated 144A | | 8.75 | 5-1-2025 | | 935,000 | 954,560 |
| Clear Channel Outdoor Holdings 144A | | 7.50 | 6-1-2029 | | 1,165,000 | 827,966 |
| CSC Holdings LLC 144A | | 4.13 | 12-1-2030 | | 1,025,000 | 736,145 |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Diversified Income Builder Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Media (continued) | | | | | | |
| CSC Holdings LLC 144A | | 5.75% | 1-15-2030 | $ | 1,800,000 | $ 947,745 |
| DIRECTV Financing LLC 144A | | 5.88 | 8-15-2027 | | 380,000 | 344,166 |
| DISH DBS Corporation 144A | | 5.75 | 12-1-2028 | | 390,000 | 291,038 |
| DISH Network Corporation 144A | | 11.75 | 11-15-2027 | | 880,000 | 853,600 |
| Gray Escrow II Incorporated 144A | | 5.38 | 11-15-2031 | | 3,550,000 | 2,357,200 |
| Match Group Holdings II LLC 144A | | 5.63 | 2-15-2029 | | 1,850,000 | 1,739,447 |
| Nexstar Broadcasting Incorporated 144A | | 5.63 | 7-15-2027 | | 650,000 | 600,620 |
| Outfront Media Capital Corporation 144A | | 4.63 | 3-15-2030 | | 775,000 | 646,325 |
| Outfront Media Capital Corporation 144A | | 5.00 | 8-15-2027 | | 290,000 | 261,241 |
| Scripps Escrow II Incorporated 144A | | 5.38 | 1-15-2031 | | 1,650,000 | 1,134,375 |
| Scripps Escrow II Incorporated 144A | | 5.88 | 7-15-2027 | | 1,420,000 | 1,045,901 |
| Sirius XM Radio Incorporated 144A | | 4.13 | 7-1-2030 | | 1,120,000 | 915,600 |
| Townsquare Media Incorporated 144A | | 6.88 | 2-1-2026 | | 1,755,000 | 1,660,248 |
| | | | | | | 20,293,486 |
| Consumer discretionary: 5.69% | | | | | | |
| Automobiles: 0.20% | | | | | | |
| Ford Motor Company | | 3.25 | 2-12-2032 | | 245,000 | 192,559 |
| Ford Motor Company | | 4.75 | 1-15-2043 | | 720,000 | 552,118 |
| | | | | | | 744,677 |
| Broadline retail: 0.55% | | | | | | |
| LSF9 Atlantis Holdings LLC 144A | | 7.75 | 2-15-2026 | | 1,478,000 | 1,342,513 |
| Macy's Retail Holdings LLC 144A | | 5.88 | 4-1-2029 | | 570,000 | 527,244 |
| Macy's Retail Holdings LLC 144A | | 6.13 | 3-15-2032 | | 240,000 | 211,270 |
| | | | | | | 2,081,027 |
| Diversified consumer services: 0.24% | | | | | | |
| Grand Canyon University | | 5.13 | 10-1-2028 | | 1,000,000 | 902,230 |
| Hotels, restaurants & leisure: 3.17% | | | | | | |
| Carnival Corporation 144A | | 4.00 | 8-1-2028 | | 650,000 | 559,540 |
| Carnival Corporation 144A | | 6.00 | 5-1-2029 | | 1,145,000 | 910,275 |
| Carnival Corporation 144A | | 9.88 | 8-1-2027 | | 680,000 | 700,465 |
| Carnival Corporation 144A | | 10.50 | 2-1-2026 | | 190,000 | 197,965 |
| Carnival Holdings Bermuda Limited 144A | | 10.38 | 5-1-2028 | | 1,130,000 | 1,215,609 |
| CCM Merger Incorporated 144A | | 6.38 | 5-1-2026 | | 2,575,000 | 2,514,127 |
| Churchill Downs Incorporated 144A | | 4.75 | 1-15-2028 | | 570,000 | 533,762 |
| NCL Corporation Limited 144A | | 5.88 | 3-15-2026 | | 905,000 | 770,227 |
| NCL Corporation Limited 144A | | 5.88 | 2-15-2027 | | 785,000 | 732,013 |
| NCL Corporation Limited 144A | | 7.75 | 2-15-2029 | | 495,000 | 424,430 |
| Royal Caribbean Cruises Limited 144A | | 5.38 | 7-15-2027 | | 160,000 | 142,512 |
| Royal Caribbean Cruises Limited 144A | | 5.50 | 8-31-2026 | | 215,000 | 201,143 |
| Royal Caribbean Cruises Limited 144A | | 5.50 | 4-1-2028 | | 1,525,000 | 1,346,400 |
| Royal Caribbean Cruises Limited 144A | | 9.25 | 1-15-2029 | | 585,000 | 621,563 |
| Royal Caribbean Cruises Limited 144A | | 11.63 | 8-15-2027 | | 1,055,000 | 1,133,117 |
| | | | | | | 12,003,148 |
| Household durables: 0.28% | | | | | | |
| Toll Brothers Finance Corporation | | 4.35 | 2-15-2028 | | 760,000 | 716,879 |
| TRI Pointe Homes Incorporated | | 5.70 | 6-15-2028 | | 375,000 | 360,825 |
| | | | | | | 1,077,704 |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 19
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Specialty retail: 0.84% | | | | | | |
| Bath & Body Works Incorporated 144A | | 9.38% | 7-1-2025 | $ | 410,000 | $ 438,028 |
| Michaels Companies Incorporated 144A | | 7.88 | 5-1-2029 | | 975,000 | 682,500 |
| NMG Holding Company Incorporated 144A | | 7.13 | 4-1-2026 | | 995,000 | 934,176 |
| PetSmart Incorporated 144A | | 4.75 | 2-15-2028 | | 270,000 | 253,463 |
| Rent-A-Center Incorporated 144A | | 6.38 | 2-15-2029 | | 1,015,000 | 852,247 |
| | | | | | | 3,160,414 |
| Textiles, apparel & luxury goods: 0.41% | | | | | | |
| G-III Apparel Group Limited 144A | | 7.88 | 8-15-2025 | | 1,650,000 | 1,555,125 |
| Consumer staples: 0.22% | | | | | | |
| Consumer staples distribution & retail: 0.06% | | | | | | |
| PetSmart Incorporated 144A | | 7.75 | 2-15-2029 | | 250,000 | 245,403 |
| Food products: 0.16% | | | | | | |
| CHS Incorporated 144A | | 5.25 | 5-15-2030 | | 750,000 | 588,338 |
| Energy: 8.43% | | | | | | |
| Energy equipment & services: 1.92% | | | | | | |
| Bristow Group Incorporated 144A | | 6.88 | 3-1-2028 | | 1,885,000 | 1,753,759 |
| Hilcorp Energy Company 144A | | 6.25 | 11-1-2028 | | 1,100,000 | 1,043,888 |
| Oceaneering International Incorporated | | 4.65 | 11-15-2024 | | 920,000 | 900,528 |
| Oceaneering International Incorporated | | 6.00 | 2-1-2028 | | 600,000 | 563,746 |
| Pattern Energy Operations LP 144A | | 4.50 | 8-15-2028 | | 2,425,000 | 2,218,496 |
| USA Compression Partners LP | | 6.88 | 4-1-2026 | | 725,000 | 704,661 |
| USA Compression Partners LP | | 6.88 | 9-1-2027 | | 75,000 | 71,669 |
| | | | | | | 7,256,747 |
| Oil, gas & consumable fuels: 6.51% | | | | | | |
| Aethon United 144A | | 8.25 | 2-15-2026 | | 1,195,000 | 1,172,558 |
| Archrock Partners LP 144A | | 6.25 | 4-1-2028 | | 190,000 | 182,400 |
| Archrock Partners LP 144A | | 6.88 | 4-1-2027 | | 945,000 | 927,281 |
| Buckeye Partners LP 144A | | 4.50 | 3-1-2028 | | 475,000 | 428,797 |
| Buckeye Partners LP | | 5.85 | 11-15-2043 | | 425,000 | 320,913 |
| CQP Holdco LP 144A | | 5.50 | 6-15-2031 | | 1,415,000 | 1,271,873 |
| DT Midstream Incorporated 144A | | 4.13 | 6-15-2029 | | 190,000 | 166,573 |
| DT Midstream Incorporated 144A | | 4.38 | 6-15-2031 | | 1,195,000 | 1,041,072 |
| Encino Acquisition Partners Company 144A | | 8.50 | 5-1-2028 | | 1,915,000 | 1,675,625 |
| EnLink Midstream Partners LP | | 5.38 | 6-1-2029 | | 1,620,000 | 1,559,250 |
| EnLink Midstream Partners LP | | 5.60 | 4-1-2044 | | 1,175,000 | 959,000 |
| EnLink Midstream Partners LP 144A | | 6.50 | 9-1-2030 | | 1,020,000 | 1,031,434 |
| Enviva Partners LP 144A | | 6.50 | 1-15-2026 | | 3,190,000 | 2,902,900 |
| EQM Midstream Partners 144A | | 7.50 | 6-1-2027 | | 15,000 | 15,060 |
| EQM Midstream Partners 144A | | 7.50 | 6-1-2030 | | 945,000 | 915,469 |
| Harvest Midstream LP 144A | | 7.50 | 9-1-2028 | | 690,000 | 688,151 |
| Hess Midstream Operation Company 144A | | 5.50 | 10-15-2030 | | 145,000 | 134,831 |
| Kinetik Holdings LP Company 144A | | 5.88 | 6-15-2030 | | 975,000 | 938,438 |
| Murphy Oil Corporation | | 6.38 | 7-15-2028 | | 340,000 | 335,020 |
| Nabors Industries Limited 144A | | 7.38 | 5-15-2027 | | 845,000 | 827,576 |
| Occidental Petroleum Corporation | | 6.45 | 9-15-2036 | | 1,950,000 | 2,050,289 |
| Rockies Express Pipeline LLC 144A | | 4.95 | 7-15-2029 | | 250,000 | 222,712 |
| Rockies Express Pipeline LLC 144A | | 6.88 | 4-15-2040 | | 855,000 | 712,424 |
| Southwestern Energy Company | | 4.75 | 2-1-2032 | | 1,390,000 | 1,227,356 |
| Tallgrass Energy Partners LP 144A | | 6.00 | 12-31-2030 | | 1,410,000 | 1,260,159 |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Diversified Income Builder Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Oil, gas & consumable fuels (continued) | | | | | | |
| Venture Global Calcasieu Pass LLC 144A | | 6.25% | 1-15-2030 | $ | 1,040,000 | $ 1,047,800 |
| Venture Global LNG Incorporated 144A | | 3.88 | 11-1-2033 | | 110,000 | 92,400 |
| Vital Energy Incorporated | | 9.50 | 1-15-2025 | | 500,000 | 503,510 |
| | | | | | | 24,610,871 |
| Financials: 8.28% | | | | | | |
| Banks: 1.75% | | | | | | |
| Bank of America Corporation (5 Year Treasury Constant Maturity +2.76%) ʊ± | | 4.38 | 1-27-2027 | | 1,500,000 | 1,275,207 |
| Citigroup Incorporated (U.S. SOFR +3.23%) ʊ± | | 4.70 | 1-30-2025 | | 1,000,000 | 875,000 |
| Citizens Financial Group Incorporated (5 Year Treasury Constant Maturity +5.31%) ʊ± | | 5.65 | 10-6-2025 | | 2,000,000 | 1,725,864 |
| Fifth Third Bancorp (5 Year Treasury Constant Maturity +4.22%) ʊ± | | 4.50 | 9-30-2025 | | 2,000,000 | 1,734,273 |
| JPMorgan Chase & Company (U.S. SOFR 3 Month +3.13%) ʊ± | | 4.60 | 2-1-2025 | | 1,000,000 | 930,000 |
| SVB Financial Group (10 Year Treasury Constant Maturity +3.06%) ʊ± | | 4.70 | 11-15-2031 | | 1,500,000 | 95,625 |
| | | | | | | 6,635,969 |
| Capital markets: 0.31% | | | | | | |
| Oppenheimer Holdings Incorporated | | 5.50 | 10-1-2025 | | 1,215,000 | 1,160,325 |
| Consumer finance: 2.56% | | | | | | |
| FirstCash Incorporated 144A | | 4.63 | 9-1-2028 | | 910,000 | 807,108 |
| Ford Motor Credit Company LLC | | 4.39 | 1-8-2026 | | 955,000 | 906,056 |
| Ford Motor Credit Company LLC | | 5.11 | 5-3-2029 | | 2,075,000 | 1,948,010 |
| Ford Motor Credit Company LLC | | 5.13 | 6-16-2025 | | 230,000 | 225,134 |
| LFS TopCo LLC 144A | | 5.88 | 10-15-2026 | | 705,000 | 614,488 |
| Navient Corporation | | 5.00 | 3-15-2027 | | 1,055,000 | 929,344 |
| OneMain Finance Corporation | | 3.50 | 1-15-2027 | | 355,000 | 297,938 |
| OneMain Finance Corporation | | 5.38 | 11-15-2029 | | 200,000 | 168,253 |
| OneMain Finance Corporation | | 7.13 | 3-15-2026 | | 720,000 | 692,129 |
| PECF USS Intermediate Holding III Corporation 144A | | 8.00 | 11-15-2029 | | 875,000 | 581,000 |
| PRA Group Incorporated 144A | | 5.00 | 10-1-2029 | | 1,465,000 | 1,225,598 |
| Rocket Mortgage LLC 144A | | 2.88 | 10-15-2026 | | 890,000 | 796,550 |
| Rocket Mortgage LLC 144A | | 4.00 | 10-15-2033 | | 615,000 | 488,218 |
| | | | | | | 9,679,826 |
| Financial services: 2.39% | | | | | | |
| Camelot Return Merger Sub Incorporated 144A | | 8.75 | 8-1-2028 | | 1,580,000 | 1,462,985 |
| Enact Holdings Incorporated 144A | | 6.50 | 8-15-2025 | | 2,490,000 | 2,427,750 |
| Hat Holdings LLC 144A | | 3.38 | 6-15-2026 | | 370,000 | 320,975 |
| Hat Holdings LLC 144A | | 3.75 | 9-15-2030 | | 760,000 | 573,800 |
| Hat Holdings LLC 144A | | 6.00 | 4-15-2025 | | 345,000 | 331,423 |
| Ladder Capital Finance Holdings LP 144A | | 4.25 | 2-1-2027 | | 600,000 | 474,000 |
| Ladder Capital Finance Holdings LP 144A | | 4.75 | 6-15-2029 | | 385,000 | 278,290 |
| Ladder Capital Finance Holdings LP 144A | | 5.25 | 10-1-2025 | | 1,210,000 | 1,064,552 |
| LPL Holdings Incorporated 144A | | 4.38 | 5-15-2031 | | 1,025,000 | 906,213 |
| United Wholesale Mortgage LLC 144A | | 5.50 | 11-15-2025 | | 795,000 | 752,396 |
| United Wholesale Mortgage LLC 144A | | 5.50 | 4-15-2029 | | 515,000 | 430,025 |
| | | | | | | 9,022,409 |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 21
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Insurance: 0.75% | | | | | | |
| Amwins Group Incorporated 144A | | 4.88% | 6-30-2029 | $ | 910,000 | $ 805,350 |
| AssuredPartners Incorporated 144A | | 5.63 | 1-15-2029 | | 775,000 | 669,600 |
| Broadstreet Partners Incorporated 144A | | 5.88 | 4-15-2029 | | 1,600,000 | 1,353,167 |
| | | | | | | 2,828,117 |
| Mortgage REITs: 0.52% | | | | | | |
| Starwood Property Trust Incorporated 144A | | 4.38 | 1-15-2027 | | 930,000 | 768,608 |
| Starwood Property Trust Incorporated | | 4.75 | 3-15-2025 | | 1,260,000 | 1,185,030 |
| | | | | | | 1,953,638 |
| Health care: 0.66% | | | | | | |
| Health care providers & services: 0.66% | | | | | | |
| Air Methods Corporation 144A | | 8.00 | 5-15-2025 | | 515,000 | 30,900 |
| Pediatrix Medical Group 144A | | 5.38 | 2-15-2030 | | 640,000 | 579,315 |
| Select Medical Corporation 144A | | 6.25 | 8-15-2026 | | 750,000 | 727,500 |
| Tenet Healthcare Corporation | | 4.88 | 1-1-2026 | | 475,000 | 465,671 |
| Toledo Hospital | | 6.02 | 11-15-2048 | | 1,000,000 | 675,000 |
| | | | | | | 2,478,386 |
| Industrials: 4.74% | | | | | | |
| Aerospace & defense: 0.81% | | | | | | |
| Spirit AeroSystems Incorporated 144A | | 7.50 | 4-15-2025 | | 230,000 | 230,000 |
| Spirit AeroSystems Incorporated 144A | | 9.38 | 11-30-2029 | | 1,155,000 | 1,260,394 |
| TransDigm Group Incorporated | | 7.50 | 3-15-2027 | | 1,565,000 | 1,561,088 |
| | | | | | | 3,051,482 |
| Commercial services & supplies: 1.26% | | | | | | |
| Allied Universal Holdco LLC 144A | | 6.00 | 6-1-2029 | | 1,425,000 | 1,063,706 |
| Allied Universal Holdco LLC 144A | | 6.63 | 7-15-2026 | | 600,000 | 576,603 |
| CoreCivic Incorporated | | 8.25 | 4-15-2026 | | 2,210,000 | 2,227,636 |
| Northern Light Health | | 5.02 | 7-1-2036 | | 1,000,000 | 897,679 |
| | | | | | | 4,765,624 |
| Ground transportation: 0.51% | | | | | | |
| Uber Technologies Incorporated 144A | | 4.50 | 8-15-2029 | | 2,105,000 | 1,918,181 |
| Machinery: 0.74% | | | | | | |
| Chart Industries Incorporated 144A | | 7.50 | 1-1-2030 | | 190,000 | 196,312 |
| Chart Industries Incorporated 144A | | 9.50 | 1-1-2031 | | 315,000 | 332,325 |
| TK Elevator US Newco Incorporated 144A | | 5.25 | 7-15-2027 | | 1,365,000 | 1,288,697 |
| Werner FinCo LP 144A | | 8.75 | 7-15-2025 | | 1,195,000 | 967,950 |
| | | | | | | 2,785,284 |
| Passenger airlines: 0.84% | | | | | | |
| American Airlines Group Incorporated 144A | | 5.50 | 4-20-2026 | | 325,000 | 319,836 |
| American Airlines Group Incorporated 144A | | 5.75 | 4-20-2029 | | 490,000 | 470,026 |
| Hawaiian Airlines Incorporated | | 3.90 | 7-15-2027 | | 429,830 | 385,587 |
| Hawaiian Brand Intellectual Property Limited 144A | | 5.75 | 1-20-2026 | | 685,000 | 650,308 |
| Spirit Loyalty Cayman Limited 144A | | 8.00 | 9-20-2025 | | 1,040,000 | 1,042,600 |
| Spirit Loyalty Cayman Limited 144A | | 8.00 | 9-20-2025 | | 315,000 | 317,029 |
| | | | | | | 3,185,386 |
The accompanying notes are an integral part of these financial statements.
22 | Allspring Diversified Income Builder Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Trading companies & distributors: 0.58% | | | | | | |
| Fortress Transportation & Infrastructure Investors LLC 144A | | 5.50% | 5-1-2028 | $ | 795,000 | $ 725,310 |
| Fortress Transportation & Infrastructure Investors LLC 144A | | 6.50 | 10-1-2025 | | 1,107,000 | 1,107,736 |
| Fortress Transportation & Infrastructure Investors LLC 144A | | 9.75 | 8-1-2027 | | 350,000 | 369,282 |
| | | | | | | 2,202,328 |
| Information technology: 2.12% | | | | | | |
| Communications equipment: 0.23% | | | | | | |
| CommScope Technologies LLC 144A | | 4.75 | 9-1-2029 | | 255,000 | 212,548 |
| CommScope Technologies LLC 144A | | 5.00 | 3-15-2027 | | 910,000 | 665,365 |
| | | | | | | 877,913 |
| IT services: 0.82% | | | | | | |
| Sabre GLBL Incorporated 144A | | 9.25 | 4-15-2025 | | 1,715,000 | 1,615,530 |
| Sabre GLBL Incorporated 144A | | 11.25 | 12-15-2027 | | 1,575,000 | 1,467,648 |
| | | | | | | 3,083,178 |
| Software: 1.07% | | | | | | |
| McAfee Corporation 144A | | 7.38 | 2-15-2030 | | 1,085,000 | 909,766 |
| MPH Acquisition Holdings LLC 144A | | 5.50 | 9-1-2028 | | 380,000 | 302,119 |
| MPH Acquisition Holdings LLC 144A | | 5.75 | 11-1-2028 | | 1,405,000 | 1,010,917 |
| NCR Corporation 144A | | 5.75 | 9-1-2027 | | 800,000 | 786,184 |
| NCR Corporation 144A | | 6.13 | 9-1-2029 | | 455,000 | 448,780 |
| SS&C Technologies Incorporated 144A | | 5.50 | 9-30-2027 | | 600,000 | 582,179 |
| | | | | | | 4,039,945 |
| Materials: 1.07% | | | | | | |
| Chemicals: 0.07% | | | | | | |
| Avient Corporation 144A | | 7.13 | 8-1-2030 | | 260,000 | 268,125 |
| Containers & packaging: 0.58% | | | | | | |
| Berry Global Incorporated 144A | | 5.63 | 7-15-2027 | | 1,205,000 | 1,196,945 |
| Clydesdale Acquisition Holdings Incorporated 144A | | 8.75 | 4-15-2030 | | 1,075,000 | 976,895 |
| | | | | | | 2,173,840 |
| Metals & mining: 0.33% | | | | | | |
| Arches Buyer Incorporated 144A | | 4.25 | 6-1-2028 | | 420,000 | 351,015 |
| Arches Buyer Incorporated 144A | | 6.13 | 12-1-2028 | | 1,100,000 | 907,500 |
| | | | | | | 1,258,515 |
| Paper & forest products: 0.09% | | | | | | |
| Clearwater Paper Corporation 144A | | 4.75 | 8-15-2028 | | 370,000 | 332,408 |
| Real estate: 1.36% | | | | | | |
| Diversified REITs: 0.49% | | | | | | |
| GLP Capital LP | | 3.25 | 1-15-2032 | | 635,000 | 515,214 |
| MPT Operating Partnership LP | | 3.50 | 3-15-2031 | | 1,995,000 | 1,343,034 |
| | | | | | | 1,858,248 |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 23
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Hotel & resort REITs: 0.27% | | | | | | |
| Service Properties Trust Company | | 4.35% | 10-1-2024 | $ | 520,000 | $ 497,385 |
| Service Properties Trust Company | | 4.75 | 10-1-2026 | | 300,000 | 250,483 |
| Service Properties Trust Company | | 4.95 | 2-15-2027 | | 335,000 | 283,581 |
| | | | | | | 1,031,449 |
| Specialized REITs: 0.60% | | | | | | |
| Iron Mountain Incorporated 144A | | 4.50 | 2-15-2031 | | 925,000 | 794,880 |
| Iron Mountain Incorporated 144A | | 5.25 | 7-15-2030 | | 1,615,000 | 1,456,216 |
| | | | | | | 2,251,096 |
| Utilities: 1.98% | | | | | | |
| Electric utilities: 0.51% | | | | | | |
| PG&E Corporation | | 5.25 | 7-1-2030 | | 2,100,000 | 1,949,430 |
Independent power & renewable electricity
producers: 1.47% | | | | | | |
| NSG Holdings LLC 144A | | 7.75 | 12-15-2025 | | 1,173,238 | 1,155,639 |
| TerraForm Power Operating LLC 144A | | 5.00 | 1-31-2028 | | 2,530,000 | 2,403,597 |
| Vistra Operations Company LLC 144A | | 4.38 | 5-1-2029 | | 740,000 | 655,207 |
| Vistra Operations Company LLC 144A | | 5.63 | 2-15-2027 | | 320,000 | 310,517 |
| Vistra Operations Company LLC 144A | | 7.00 | 8-1-2049 | | 1,155,000 | 1,016,382 |
| | | | | | | 5,541,342 |
| Total Corporate bonds and notes (Cost $170,172,875) | | | | | | 153,538,452 |
| Foreign corporate bonds and notes : 3.37% | | | | | | |
| Financials: 3.37% | | | | | | |
| Banks: 3.37% | | | | | | |
| ABN AMRO Bank NV ʊ | | 4.75 | 9-22-2027 | EUR | 3,000,000 | 2,592,785 |
| AIB Group plc ʊ | | 6.25 | 6-23-2025 | EUR | 2,000,000 | 1,981,637 |
| Banco Santander SA ʊ | | 4.38 | 1-14-2026 | EUR | 3,000,000 | 2,558,181 |
| Bankia SA ʊ | | 6.38 | 9-19-2023 | EUR | 3,000,000 | 3,200,468 |
| Commerzbank AG ʊ | | 6.13 | 10-9-2025 | EUR | 2,600,000 | 2,400,523 |
| Total Foreign corporate bonds and notes (Cost $15,840,608) | | | | | | 12,733,594 |
| Loans: 2.95% | | | | | | |
| Communication services: 0.44% | | | | | | |
| Diversified telecommunication services: 0.23% | | | | | | |
| Intelsat Jackson Holdings SA (U.S. SOFR 1 Month +4.25%) ± | | 9.08 | 2-1-2029 | $ | 895,158 | 883,968 |
| Entertainment: 0.04% | | | | | | |
| Dave & Buster's Incorporated (U.S. SOFR 1 Month +5.00%) ± | | 9.94 | 6-29-2029 | | 158,250 | 157,986 |
| Media: 0.17% | | | | | | |
| Clear Channel Outdoor Holdings (1 Month LIBOR +3.50%) ± | | 8.33 | 8-21-2026 | | 372,108 | 345,752 |
| Hubbard Radio LLC (1 Month LIBOR +4.25%) ± | | 9.10 | 3-28-2025 | | 335,791 | 290,795 |
| | | | | | | 636,547 |
The accompanying notes are an integral part of these financial statements.
24 | Allspring Diversified Income Builder Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Energy: 0.28% | | | | | | |
| Oil, gas & consumable fuels: 0.28% | | | | | | |
| GIP II Blue Holdings LP (1 Month LIBOR +4.50%) <± | | 9.66% | 9-29-2028 | $ | 704,343 | $ 699,060 |
| M6 ETX Holdings II MidCo LLC (U.S. SOFR 1 Month +4.50%) ± | | 9.36 | 9-19-2029 | | 349,125 | 344,614 |
| | | | | | | 1,043,674 |
| Financials: 0.73% | | | | | | |
| Financial services: 0.41% | | | | | | |
| Resolute Investment Managers Incorporated (1 Month LIBOR +4.25%) <± | | 9.39 | 4-30-2024 | | 642,553 | 466,924 |
| Russell Investments US Institutional Holdco Incorporated (1 Month LIBOR +3.50%) ± | | 8.34 | 5-30-2025 | | 1,090,771 | 1,065,890 |
| | | | | | | 1,532,814 |
| Insurance: 0.23% | | | | | | |
| Asurion LLC (3 Month LIBOR +3.25%) <± | | 8.09 | 12-23-2026 | | 770,477 | 712,969 |
| Asurion LLC (1 Month LIBOR +5.25%) ± | | 10.09 | 1-31-2028 | | 200,000 | 165,800 |
| | | | | | | 878,769 |
| Mortgage REITs: 0.09% | | | | | | |
| Claros Mortgage Trust Incorporated (U.S. SOFR 1 Month +4.50%) ౠ| | 9.34 | 8-9-2026 | | 404,875 | 346,168 |
| Health care: 0.13% | | | | | | |
| Health care equipment & supplies: 0.13% | | | | | | |
| Surgery Center Holdings Incorporated (1 Month LIBOR +3.75%) ± | | 8.46 | 8-31-2026 | | 490,884 | 487,316 |
| Industrials: 1.37% | | | | | | |
| Commercial services & supplies: 0.62% | | | | | | |
| The Geo Group Incorporated (1 Month LIBOR +7.13%) ± | | 11.93 | 3-23-2027 | | 2,328,777 | 2,355,465 |
| Machinery: 0.20% | | | | | | |
| Chart Industries Incorporated (U.S. SOFR 1 Month +3.75%) ± | | 8.59 | 8-18-2026 | | 180,000 | 179,325 |
| Werner FinCo LP (3 Month LIBOR +4.00%) ± | | 9.14 | 7-24-2024 | | 600,698 | 559,778 |
| | | | | | | 739,103 |
| Passenger airlines: 0.55% | | | | | | |
| Mileage Plus Holdings LLC (1 Month LIBOR +5.25%) ± | | 10.21 | 6-21-2027 | | 1,296,250 | 1,343,408 |
| SkyMiles IP Limited (3 Month LIBOR +3.75%) <± | | 8.56 | 10-20-2027 | | 710,750 | 735,541 |
| | | | | | | 2,078,949 |
| Total Loans (Cost $11,273,524) | | | | | | 11,140,759 |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 25
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Municipal obligations: 3.50% | | | | | | |
| California: 0.67% | | | | | | |
| Education revenue: 0.44% | | | | | | |
| California School Finance Authority Charter School 144A | | 4.25% | 7-1-2025 | $ | 530,000 | $ 535,305 |
| California School Finance Authority Charter School 144A | | 5.00 | 6-15-2031 | | 1,235,000 | 1,140,613 |
| | | | | | | 1,675,918 |
| Health revenue: 0.02% | | | | | | |
| California Municipal Finance Authority Series 2019B 144A | | 4.25 | 11-1-2023 | | 65,000 | 64,178 |
| Tobacco revenue: 0.21% | | | | | | |
| Golden State Tobacco Securitization Corporation | | 4.21 | 6-1-2050 | | 1,000,000 | 782,346 |
| Colorado: 0.12% | | | | | | |
| Health revenue: 0.12% | | | | | | |
| Denver CO Health & Hospital Authority Series B | | 5.15 | 12-1-2026 | | 445,000 | 439,273 |
| Florida: 0.54% | | | | | | |
| Education revenue: 0.25% | | | | | | |
| Capital Trust Agency Renaissance Charter School Project Series B 144A | | 5.63 | 6-15-2023 | | 105,000 | 104,478 |
| Florida HEFAR Jacksonville University Project Series A2 144A | | 5.43 | 6-1-2027 | | 835,000 | 838,123 |
| | | | | | | 942,601 |
| Water & sewer revenue: 0.29% | | | | | | |
| Charlotte County IDA Town & Country Utilities Project Series B 144A | | 5.00 | 10-1-2036 | | 1,250,000 | 1,086,090 |
| Georgia: 0.08% | | | | | | |
| Health revenue: 0.08% | | | | | | |
| Cobb County GA Development Authority Presbyterian Village Austell Project Series 2019B 144A | | 5.75 | 12-1-2028 | | 300,000 | 290,377 |
| Guam: 0.14% | | | | | | |
| Airport revenue: 0.14% | | | | | | |
| Guam International Airport Authority Series A | | 4.46 | 10-1-2043 | | 675,000 | 524,865 |
| Illinois: 0.32% | | | | | | |
| Miscellaneous revenue: 0.32% | | | | | | |
| Chicago IL Board of Education Taxable Build America Bonds Series E | | 6.04 | 12-1-2029 | | 1,255,000 | 1,231,421 |
| Indiana: 0.12% | | | | | | |
| Health revenue: 0.12% | | | | | | |
| Knox County IN Good Samaritian Hospital Project Industry Economic Development Series B | | 5.90 | 4-1-2034 | | 480,000 | 461,059 |
| Iowa: 0.30% | | | | | | |
| GO revenue: 0.30% | | | | | | |
| Coralville IA Series C | | 5.00 | 5-1-2030 | | 1,200,000 | 1,135,709 |
The accompanying notes are an integral part of these financial statements.
26 | Allspring Diversified Income Builder Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Louisiana: 0.18% | | | | | | |
| Health revenue: 0.18% | | | | | | |
| Louisiana Local Government Environmental Facilities & CDA | | 5.75% | 1-1-2029 | $ | 745,000 | $ 702,867 |
| New Jersey: 0.24% | | | | | | |
| Education revenue: 0.24% | | | | | | |
| New Jersey Educational Facilities Authority Georgian Court University Series H | | 4.25 | 7-1-2028 | | 1,000,000 | 913,162 |
| New York: 0.27% | | | | | | |
| Education revenue: 0.14% | | | | | | |
| Yonkers Economic Development Corporation Series 2019B | | 4.50 | 10-15-2024 | | 545,000 | 532,015 |
| Health revenue: 0.05% | | | | | | |
| Jefferson County NY Civic Facility Development Corporation Refunding Bond Series B Samaritan Medical Center Obligated Group | | 4.25 | 11-1-2028 | | 215,000 | 201,693 |
| Utilities revenue: 0.08% | | | | | | |
| New York Energy Research & Development Authority Green Bond Series A | | 4.81 | 4-1-2034 | | 290,000 | 284,935 |
| Oklahoma: 0.11% | | | | | | |
| Health revenue: 0.11% | | | | | | |
| Oklahoma Development Finance Authority | | 5.45 | 8-15-2028 | | 500,000 | 421,895 |
| Texas: 0.15% | | | | | | |
| Industrial development revenue: 0.15% | | | | | | |
| Port Beaumont TX IDA Jefferson Gulf Coast 144A | | 4.10 | 1-1-2028 | | 700,000 | 564,511 |
| Wisconsin: 0.26% | | | | | | |
| Education revenue: 0.26% | | | | | | |
| Burrell College of Osteopathic Medicine Project PFA 144A | | 5.13 | 6-1-2028 | | 1,040,000 | 992,962 |
| Total Municipal obligations (Cost $14,318,599) | | | | | | 13,247,877 |
| Non-agency mortgage-backed securities: 2.11% | | | | | | |
| Arroyo Mortgage Trust Series 2022-1 Class A3 144A | | 3.65 | 12-25-2056 | | 1,450,000 | 1,083,125 |
| Credit Suisse Mortgage Trust Series 2021-NQM8 Class M1 144A±± | | 3.26 | 10-25-2066 | | 2,000,000 | 1,284,417 |
| GCAT Series 2021-NQM6 Class M1 144A±± | | 3.41 | 8-25-2066 | | 2,000,000 | 1,381,498 |
| Golub Capital Partners Funding LLC Series2021-2A Class B 144A | | 3.99 | 10-19-2029 | | 500,000 | 425,430 |
| JPMorgan Mortgage Trust Series 2019-2 Class A3 144A±± | | 4.00 | 8-25-2049 | | 42,829 | 41,241 |
| PRKCM 2022-AFC1 Trust Class M1 144A±± | | 4.19 | 4-25-2057 | | 600,000 | 491,591 |
| Purewest Funding LLC Series 2021-1 Class A1 144A | | 4.09 | 12-22-2036 | | 612,647 | 584,525 |
| Sequoia Mortgage Trust Series 2018-6 Class A19 144A±± | | 4.00 | 7-25-2048 | | 80,063 | 74,022 |
| Service Experts Issuer Series 2021-1A Class C 144A | | 5.37 | 2-2-2032 | | 3,000,000 | 2,626,511 |
| Total Non-agency mortgage-backed securities (Cost $10,157,938) | | | | | | 7,992,360 |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 27
Portfolio of investments—March 31, 2023 (unaudited)
| | | Dividend Yield | | | Shares | Value |
| Preferred stocks: 0.17% | | | | | | |
| Energy: 0.02% | | | | | | |
| Oil, gas & consumable fuels: 0.02% | | | | | | |
| Petroleo Brasil SP ADR | | 7.69% | | | 6,040 | $ 56,051 |
| Financials: 0.02% | | | | | | |
| Banks: 0.02% | | | | | | |
| Itau Unibanco Holding SA | | 13.49 | | | 18,100 | 88,349 |
| Information technology: 0.08% | | | | | | |
| Technology hardware, storage & peripherals: 0.08% | | | | | | |
| Samsung Electronics Company Limited | | 2.63 | | | 7,198 | 299,542 |
| Materials: 0.05% | | | | | | |
| Chemicals: 0.05% | | | | | | |
| LG Chem Limited | | 3.29 | | | 780 | 186,892 |
| Total Preferred stocks (Cost $707,780) | | | | | | 630,834 |
| | | Interest
rate | Maturity
date | Principal | |
| Yankee corporate bonds and notes: 9.04% | | | | | | |
| Communication services: 0.29% | | | | | | |
| Media: 0.29% | | | | | | |
| Videotron Limited 144A | | 5.13 | 4-15-2027 | $ | 1,155,000 | 1,114,829 |
| Consumer discretionary: 0.13% | | | | | | |
| Automobile components: 0.13% | | | | | | |
| Adient Global Holdings Limited 144A | | 4.88 | 8-15-2026 | | 520,000 | 501,150 |
| Energy: 0.22% | | | | | | |
| Oil, gas & consumable fuels: 0.22% | | | | | | |
| NorthRiver Midstream Finance LP 144A | | 5.63 | 2-15-2026 | | 880,000 | 825,755 |
| Financials: 5.63% | | | | | | |
| Banks: 5.25% | | | | | | |
| Barclays plc (USD Swap Semi Annual (vs. 3 Month LIBOR) 5 Year +4.84%) ʊ± | | 7.75 | 9-15-2023 | | 2,160,000 | 1,981,338 |
| Credit Agricole SA (USD Swap Semi Annual (vs. 3 Month LIBOR) 5 Year +4.90%) 144Aʊ± | | 7.88 | 1-23-2024 | | 750,000 | 732,765 |
| Danske Bank AS (7 Year Treasury Constant Maturity +4.13%) ʊ± | | 7.00 | 6-26-2025 | | 2,300,000 | 2,118,875 |
| HSBC Holdings plc (USD ICE Swap Rate 11:00am NY 5 Year +4.37%) ʊ± | | 6.38 | 3-30-2025 | | 2,000,000 | 1,837,907 |
| ING Groep NV (USD ICE Swap Rate 11:00am NY 5 Year +4.20%) ʊ± | | 6.75 | 4-16-2024 | | 3,800,000 | 3,493,644 |
| Lloyds Banking Group plc (USD Swap Semi Annual (vs. 3 Month LIBOR) 5 Year +4.76%) ʊ± | | 7.50 | 6-27-2024 | | 3,665,000 | 3,464,195 |
| NatWest Group plc (5 Year Treasury Constant Maturity +3.10%) ʊ± | | 4.60 | 6-28-2031 | | 1,500,000 | 1,055,775 |
The accompanying notes are an integral part of these financial statements.
28 | Allspring Diversified Income Builder Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Banks (continued) | | | | | | |
| Skandinaviska Enskilda Banken AB (5 Year Treasury Constant Maturity +3.46%) ʊ± | | 5.13% | 5-13-2025 | $ | 2,000,000 | $ 1,845,408 |
| Societe Generale SA (USD ICE Swap Rate 11:00am NY 5 Year +5.87%) 144Aʊ± | | 8.00 | 2-9-2025 | | 3,535,000 | 3,305,225 |
| | | | | | | 19,835,132 |
| Financial services: 0.38% | | | | | | |
| Castlelake Aviation Finance 144A | | 5.00 | 4-15-2027 | | 980,000 | 867,556 |
| New Red Finance Incorporated 144A | | 4.00 | 10-15-2030 | | 650,000 | 557,375 |
| | | | | | | 1,424,931 |
| Health care: 0.58% | | | | | | |
| Biotechnology: 0.28% | | | | | | |
| Grifols Escrow Issuer SA 144A | | 4.75 | 10-15-2028 | | 1,270,000 | 1,041,400 |
| Pharmaceuticals: 0.30% | | | | | | |
| Teva Pharmaceutical Finance Netherlands III BV | | 6.75 | 3-1-2028 | | 655,000 | 655,072 |
| Teva Pharmaceutical Finance Netherlands III BV | | 8.13 | 9-15-2031 | | 470,000 | 493,359 |
| | | | | | | 1,148,431 |
| Industrials: 1.87% | | | | | | |
| Electrical equipment: 0.47% | | | | | | |
| Sensata Technologies BV 144A | | 4.00 | 4-15-2029 | | 1,335,000 | 1,206,139 |
| Sensata Technologies BV 144A | | 5.88 | 9-1-2030 | | 580,000 | 574,925 |
| | | | | | | 1,781,064 |
| Passenger airlines: 0.85% | | | | | | |
| Air Canada Pass-Through Trust Series 2020-1 Class C 144A | | 10.50 | 7-15-2026 | | 1,805,000 | 1,919,771 |
| VistaJet Malta Finance PLC 144A | | 6.38 | 2-1-2030 | | 1,470,000 | 1,310,117 |
| | | | | | | 3,229,888 |
| Trading companies & distributors: 0.55% | | | | | | |
| Fly Leasing Limited 144A | | 7.00 | 10-15-2024 | | 2,370,000 | 2,072,809 |
| Information technology: 0.20% | | | | | | |
| Technology hardware, storage & peripherals: 0.20% | | | | | | |
| Seagate HDD | | 4.13 | 1-15-2031 | | 881,000 | 737,824 |
| Materials: 0.12% | | | | | | |
| Containers & packaging: 0.12% | | | | | | |
| Ardagh Packaging Finance plc 144A | | 6.00 | 6-15-2027 | | 450,000 | 445,961 |
| Total Yankee corporate bonds and notes (Cost $37,116,304) | | | | | | 34,159,174 |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 29
Portfolio of investments—March 31, 2023 (unaudited)
| | | Yield | | Shares | Value |
| Short-term investments: 4.80% | | | | | | |
| Investment companies: 4.80% | | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞## | | 4.69% | | | 18,153,613 | $ 18,153,613 |
| Total Short-term investments (Cost $18,153,613) | | | | | | 18,153,613 |
| Total investments in securities (Cost $388,063,181) | 98.57% | | | | | 372,533,339 |
| Other assets and liabilities, net | 1.43 | | | | | 5,400,937 |
| Total net assets | 100.00% | | | | | $377,934,276 |
| 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. |
| † | Non-income-earning security |
| ♦ | The security is fair valued in accordance with Allspring Funds Management's valuation procedures, as the Board-designated valuation designee. |
| > | Restricted security as to resale, excluding Rule 144A securities. The Fund held restricted securities with an aggregate current value of $0 (original aggregate cost of $136,794), representing 0.00% of its net assets as of period end. |
| < | All or a portion of the position represents an unfunded loan commitment. The rate represents the current interest rate if the loan is partially funded. |
| ‡ | Security is valued using significant unobservable inputs. |
| ±± | The coupon of the security is adjusted based on the principal and/or interest payments received from the underlying pool of mortgages as well as the credit quality and the actual prepayment speed of the underlying mortgages. The rate shown is the rate in effect at period end. |
| ## | All or a portion of this security is segregated for unfunded loans. |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
| # | All or a portion of this security is segregated as collateral for investments in derivative instruments. |
| ʊ | Security is perpetual in nature and has no stated maturity date. The date shown reflects the next call date. |
| Abbreviations: |
| ADR | American depositary receipt |
| CDA | Community Development Authority |
| EUR | Euro |
| GDR | Global depositary receipt |
| GO | General obligation |
| HEFAR | Higher Education Facilities Authority Revenue |
| IDA | Industrial Development Authority |
| LIBOR | London Interbank Offered Rate |
| PFA | Public Finance Authority |
| REIT | Real estate investment trust |
| SOFR | Secured Overnight Financing Rate |
| SPA | Standby purchase agreement |
The accompanying notes are an integral part of these financial statements.
30 | Allspring Diversified Income Builder Fund
Portfolio of investments—March 31, 2023 (unaudited)
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | $23,698,082 | $69,508,296 | $(75,052,765) | $ 0 | | $0 | | $ 18,153,613 | 18,153,613 | $ 255,558 |
Investments in affiliates no
longer held at end of period | | | | | | | | | | |
| Securities Lending Cash Investment LLC | 3,949,063 | 23,655,196 | (27,604,329) | 70 | | 0 | | 0 | 0 | 110,527 # |
| | | | | $70 | | $0 | | $18,153,613 | | $366,085 |
| # | Amount shown represents income before fees and rebates. |
Forward foreign currency contracts
Currency to be
received | Currency to be
delivered | Counterparty | Settlement
date | Unrealized
gains | Unrealized
losses |
| 13,835,607 USD | 12,785,000 EUR | Citibank National Association | 6-30-2023 | $0 | $(99,619) |
Futures contracts
| Description | Number of
contracts | Expiration
date | Notional
cost | Notional
value | Unrealized
gains | Unrealized
losses |
| Long | | | | | | |
| 10-Year U.S. Treasury Notes | 79 | 6-21-2023 | $9,032,322 | $9,078,828 | $46,506 | $0 |
Centrally cleared credit default swap contracts
| Reference index | Fixed rate
received | Payment
frequency | Maturity
date | Notional
amount | Value | Premiums
paid
(received) | Unrealized
gains | Unrealized
losses |
| Buy protection | | | | | | | | | |
| Markit CDX North America High Yield Index | 5.00% | Quarterly | 12-20-2025 | USD | 990,000 | $27,914 | $48,610 | $0 | $(20,696) |
Written options
| Description | Counterparty | Number of
contracts | Notional
amount | Exercise
price | Expiration
date | Value |
| Call | | | | | | |
| iShares MSCI EAFE ETF | Morgan Stanley Company Incorporated | (378) | $ (2,721,600) | $ 72.00 | 4-14-2023 | $ (31,185) |
| iShares MSCI EAFE ETF | Morgan Stanley Company Incorporated | (489) | (3,569,700) | 73.00 | 4-21-2023 | (13,937) |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 31
Portfolio of investments—March 31, 2023 (unaudited)
Written options (continued)
| Description | Counterparty | Number of
contracts | Notional
amount | Exercise
price | Expiration
date | Value |
| Call (continued) | | | | | | |
| iShares MSCI EAFE ETF | Morgan Stanley Company Incorporated | (404) | $ (3,030,000) | $ 75.00 | 4-28-2023 | $ (5,454) |
| iShares MSCI Emerging Markets ETF | Morgan Stanley Company Incorporated | (1,272) | (5,278,800) | 41.50 | 4-6-2023 | (673) |
| iShares MSCI Emerging Markets ETF | Morgan Stanley Company Incorporated | (937) | (3,794,850) | 40.50 | 4-14-2023 | (14,992) |
| iShares MSCI Emerging Markets ETF | Morgan Stanley Company Incorporated | (1,065) | (4,419,750) | 41.50 | 4-21-2023 | (7,455) |
| iShares MSCI Emerging Markets ETF | Morgan Stanley Company Incorporated | (1,010) | (4,242,000) | 42.00 | 4-28-2023 | (7,070) |
| Nasdaq 100 Stock Index | Morgan Stanley Company Incorporated | (5) | (6,825,000) | 13,650.00 | 4-6-2023 | (3,325) |
| Nasdaq 100 Stock Index | Morgan Stanley Company Incorporated | (4) | (5,410,000) | 13,525.00 | 4-14-2023 | (31,838) |
| Nasdaq 100 Stock Index | Morgan Stanley Company Incorporated | (1) | (1,430,000) | 14,300.00 | 4-14-2023 | (305) |
| Nasdaq 100 Stock Index | Morgan Stanley Company Incorporated | (6) | (8,595,000) | 14,325.00 | 4-21-2023 | (3,780) |
| Nasdaq 100 Stock Index | Morgan Stanley Company Incorporated | (3) | (4,192,500) | 13,975.00 | 4-28-2023 | (15,345) |
| Nasdaq 100 Stock Index | Morgan Stanley Company Incorporated | (1) | (1,462,500) | 14,625.00 | 4-28-2023 | (625) |
| Russell 2000 Index | Morgan Stanley Company Incorporated | (21) | (4,063,500) | 1,935.00 | 4-6-2023 | (487) |
| Russell 2000 Index | Morgan Stanley Company Incorporated | (12) | (2,466,000) | 2,055.00 | 4-6-2023 | 0 |
| Russell 2000 Index | Morgan Stanley Company Incorporated | (17) | (3,383,000) | 1,990.00 | 4-14-2023 | (595) |
| Russell 2000 Index | Morgan Stanley Company Incorporated | (15) | (2,925,000) | 1,950.00 | 4-21-2023 | (2,288) |
| Russell 2000 Index | Morgan Stanley Company Incorporated | (21) | (4,221,000) | 2,010.00 | 4-28-2023 | (1,890) |
| S&P 500 Index | Morgan Stanley Company Incorporated | (26) | (11,245,000) | 4,325.00 | 4-6-2023 | (195) |
| S&P 500 Index | Morgan Stanley Company Incorporated | (26) | (11,310,000) | 4,350.00 | 4-14-2023 | (2,470) |
| S&P 500 Index | Morgan Stanley Company Incorporated | (23) | (9,982,000) | 4,340.00 | 4-21-2023 | (6,498) |
| S&P 500 Index | Morgan Stanley Company Incorporated | (25) | (11,125,000) | 4,450.00 | 4-28-2023 | (3,313) |
| SPDR Euro STOXX 50 ETF | Morgan Stanley Company Incorporated | (100) | (450,000) | 45.00 | 4-14-2023 | (6,600) |
| SPDR Euro STOXX 50 ETF | Morgan Stanley Company Incorporated | (89) | (404,950) | 45.50 | 4-21-2023 | (5,162) |
| | | | | | | $(165,482) |
The accompanying notes are an integral part of these financial statements.
32 | Allspring Diversified Income Builder Fund
Statement of assets and liabilities—March 31, 2023 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $369,909,568)
| $ 354,379,726 |
Investments in affiliated securities, at value (cost $18,153,613)
| 18,153,613 |
Cash
| 94,702 |
Segregated cash for forward foreign currency contracts
| 311,596 |
Cash at broker segregated for futures contracts
| 294,534 |
Segregated cash for swap contracts
| 67,754 |
Foreign currency, at value (cost $134,246)
| 133,671 |
Receivable for dividends and interest
| 4,437,688 |
Receivable for investments sold
| 2,549,052 |
Receivable for Fund shares sold
| 173,918 |
Receivable for daily variation margin on open futures contracts
| 27,605 |
Receivable for securities lending income, net
| 4,948 |
Receivable for daily variation margin on centrally cleared swap contracts
| 3,076 |
Prepaid expenses and other assets
| 139,235 |
Total assets
| 380,771,118 |
| Liabilities | |
Payable for investments purchased
| 1,533,125 |
Payable for Fund shares redeemed
| 713,475 |
Written options at value (premiums received $104,884)
| 165,482 |
Unrealized losses on forward foreign currency contracts
| 99,619 |
Management fee payable
| 68,289 |
Administration fees payable
| 55,008 |
Distribution fee payable
| 41,612 |
Trustees’ fees and expenses payable
| 1,544 |
Accrued expenses and other liabilities
| 158,688 |
Total liabilities
| 2,836,842 |
Total net assets
| $377,934,276 |
| Net assets consist of | |
Paid-in capital
| $ 440,685,132 |
Total distributable loss
| (62,750,856) |
Total net assets
| $377,934,276 |
| Computation of net asset value and offering price per share | |
Net assets – Class A
| $ 146,536,914 |
Shares outstanding – Class A1
| 27,070,496 |
Net asset value per share – Class A
| $5.41 |
Maximum offering price per share – Class A2
| $5.74 |
Net assets – Class C
| $ 61,234,951 |
Shares outstanding – Class C1
| 11,274,719 |
Net asset value per share – Class C
| $5.43 |
Net assets – Class R6
| $ 51,257,072 |
Shares outstanding – Class R61
| 9,734,457 |
Net asset value per share – Class R6
| $5.27 |
Net assets – Administrator Class
| $ 4,633,996 |
Shares outstanding – Administrator Class1
| 879,772 |
Net asset value per share – Administrator Class
| $5.27 |
Net assets – Institutional Class
| $ 114,271,343 |
Shares outstanding – Institutional Class1
| 21,720,920 |
Net asset value per share – Institutional Class
| $5.26 |
| 1 | The Fund has an unlimited number of authorized shares. |
| 2 | Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 33
Statement of operations—six months ended March 31, 2023 (unaudited)
| | |
| Investment income | |
Interest
| $ 9,290,049 |
Dividends (net of foreign withholdings taxes of $67,419)
| 1,286,473 |
Income from affiliated securities
| 323,715 |
Total investment income
| 10,900,237 |
| Expenses | |
Management fee
| 1,122,903 |
| Administration fees | |
Class A
| 161,811 |
Class C
| 69,184 |
Class R6
| 7,782 |
Administrator Class
| 3,086 |
Institutional Class
| 85,607 |
| Shareholder servicing fees | |
Class A
| 192,276 |
Class C
| 82,149 |
Administrator Class
| 5,933 |
| Distribution fee | |
Class C
| 246,446 |
Custody and accounting fees
| 162,195 |
Professional fees
| 33,788 |
Registration fees
| 40,117 |
Shareholder report expenses
| 35,039 |
Trustees’ fees and expenses
| 11,088 |
Other fees and expenses
| 78,374 |
Total expenses
| 2,337,778 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level
| (668,885) |
Class A
| (7,726) |
Class R6
| (2,601) |
Administrator Class
| (238) |
Institutional Class
| (6,603) |
Net expenses
| 1,651,725 |
Net investment income
| 9,248,512 |
| Realized and unrealized gains (losses) on investments | |
| Net realized gains (losses) on | |
Unaffiliated securities
| (22,096,378) |
Affiliated securities
| 70 |
Forward foreign currency contracts
| (1,053,456) |
Futures contracts
| (1,610,852) |
Swap contracts
| 14,182 |
Written options
| (190,641) |
Net realized losses on investments
| (24,937,075) |
| Net change in unrealized gains (losses) on | |
Unaffiliated securities
| 46,323,532 |
Forward foreign currency contracts
| (108,938) |
Futures contracts
| 1,259,237 |
Swap contracts
| 33,336 |
Written options
| (125,734) |
Net change in unrealized gains (losses) on investments
| 47,381,433 |
Net realized and unrealized gains (losses) on investments
| 22,444,358 |
Net increase in net assets resulting from operations
| $ 31,692,870 |
The accompanying notes are an integral part of these financial statements.
34 | Allspring Diversified Income Builder Fund
Statement of changes in net assets
| | | | | |
| | Six months ended
March 31, 2023
(unaudited) | Year ended
September 30, 2022 |
| Operations | | | | |
Net investment income
| | $ 9,248,512 | | $ 18,952,476 |
Net realized losses on investments
| | (24,937,075) | | (4,155,737) |
Net change in unrealized gains (losses) on investments
| | 47,381,433 | | (110,124,125) |
Net increase (decrease) in net assets resulting from operations
| | 31,692,870 | | (95,327,386) |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class A
| | (3,517,149) | | (7,233,748) |
Class C
| | (1,239,455) | | (2,626,966) |
Class R6
| | (1,338,963) | | (1,928,106) |
Administrator Class
| | (113,559) | | (242,669) |
Institutional Class
| | (3,285,218) | | (8,909,020) |
Total distributions to shareholders
| | (9,494,344) | | (20,940,509) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class A
| 970,189 | 5,214,272 | 2,638,951 | 16,065,353 |
Class C
| 438,235 | 2,345,797 | 1,179,023 | 7,250,221 |
Class R6
| 111,730 | 572,468 | 3,813,783 | 20,446,728 |
Administrator Class
| 33,953 | 178,707 | 109,349 | 647,272 |
Institutional Class
| 1,353,817 | 7,090,773 | 8,495,262 | 51,364,778 |
| | | 15,402,017 | | 95,774,352 |
| Reinvestment of distributions | | | | |
Class A
| 599,502 | 3,215,995 | 1,121,359 | 6,656,511 |
Class C
| 221,847 | 1,194,133 | 418,598 | 2,492,544 |
Class R6
| 256,315 | 1,337,743 | 334,158 | 1,926,012 |
Administrator Class
| 21,622 | 112,902 | 41,509 | 241,251 |
Institutional Class
| 548,633 | 2,861,522 | 1,275,240 | 7,392,813 |
| | | 8,722,295 | | 18,709,131 |
| Payment for shares redeemed | | | | |
Class A
| (4,955,309) | (26,608,426) | (7,334,179) | (43,613,089) |
Class C
| (2,698,203) | (14,525,214) | (4,422,132) | (26,374,659) |
Class R6
| (850,084) | (4,447,147) | (1,525,173) | (8,858,366) |
Administrator Class
| (119,757) | (626,756) | (402,349) | (2,365,687) |
Institutional Class
| (9,898,672) | (51,603,312) | (19,982,450) | (114,945,755) |
| | | (97,810,855) | | (196,157,556) |
Net decrease in net assets resulting from capital share transactions
| | (73,686,543) | | (81,674,073) |
Total decrease in net assets
| | (51,488,017) | | (197,941,968) |
| Net assets | | | | |
Beginning of period
| | 429,422,293 | | 627,364,261 |
End of period
| | $377,934,276 | | $ 429,422,293 |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 35
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class A | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $5.14 | $6.42 | $5.95 | $6.06 | $6.33 | $6.42 |
Net investment income
| 0.12 1 | 0.21 1 | 0.19 1 | 0.21 | 0.22 | 0.21 |
Net realized and unrealized gains (losses) on investments
| 0.27 | (1.27) | 0.49 | (0.12) | 0.02 | (0.01) |
Total from investment operations
| 0.39 | (1.06) | 0.68 | 0.09 | 0.24 | 0.20 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.12) | (0.22) | (0.21) | (0.20) | (0.23) | (0.19) |
Net realized gains
| 0.00 | 0.00 | 0.00 | 0.00 | (0.28) | (0.10) |
Total distributions to shareholders
| (0.12) | (0.22) | (0.21) | (0.20) | (0.51) | (0.29) |
Net asset value, end of period
| $5.41 | $5.14 | $6.42 | $5.95 | $6.06 | $6.33 |
Total return2
| 7.70% | (16.86)% | 11.58% | 1.59% | 4.51% | 3.23% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.19% | 1.13% | 1.08% | 1.07% | 1.05% | 1.04% |
Net expenses
| 0.85% | 0.85% | 0.85% | 0.85% | 0.85% | 0.90% |
Net investment income
| 4.50% | 3.38% | 3.07% | 3.50% | 3.75% | 3.34% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 21% | 86% | 87% | 39% | 43% | 50% |
Net assets, end of period (000s omitted)
| $146,537 | $156,487 | $218,615 | $213,551 | $251,673 | $231,176 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
36 | Allspring Diversified Income Builder Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class C | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $5.15 | $6.44 | $5.97 | $6.07 | $6.34 | $6.44 |
Net investment income
| 0.10 1 | 0.17 | 0.15 | 0.17 | 0.18 | 0.17 |
Net realized and unrealized gains (losses) on investments
| 0.28 | (1.28) | 0.48 | (0.11) | 0.02 | (0.02) |
Total from investment operations
| 0.38 | (1.11) | 0.63 | 0.06 | 0.20 | 0.15 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.10) | (0.18) | (0.16) | (0.16) | (0.19) | (0.15) |
Net realized gains
| 0.00 | 0.00 | 0.00 | 0.00 | (0.28) | (0.10) |
Total distributions to shareholders
| (0.10) | (0.18) | (0.16) | (0.16) | (0.47) | (0.25) |
Net asset value, end of period
| $5.43 | $5.15 | $6.44 | $5.97 | $6.07 | $6.34 |
Total return2
| 7.46% | (17.61)% | 10.70% | 0.98% | 3.71% | 2.32% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.93% | 1.87% | 1.83% | 1.82% | 1.80% | 1.79% |
Net expenses
| 1.60% | 1.60% | 1.60% | 1.60% | 1.60% | 1.65% |
Net investment income
| 3.74% | 2.61% | 2.31% | 2.75% | 2.99% | 2.59% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 21% | 86% | 87% | 39% | 43% | 50% |
Net assets, end of period (000s omitted)
| $61,235 | $68,612 | $103,956 | $115,929 | $140,722 | $166,750 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 37
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class R6 | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 1 |
Net asset value, beginning of period
| $5.00 | $6.26 | $5.81 | $5.91 | $6.18 | $6.17 |
Net investment income
| 0.13 | 0.24 | 0.23 | 0.22 | 0.24 2 | 0.02 2 |
Net realized and unrealized gains (losses) on investments
| 0.28 | (1.25) | 0.46 | (0.09) | 0.03 | 0.02 |
Total from investment operations
| 0.41 | (1.01) | 0.69 | 0.13 | 0.27 | 0.04 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.14) | (0.25) | (0.24) | (0.23) | (0.26) | (0.03) |
Net realized gains
| 0.00 | 0.00 | 0.00 | 0.00 | (0.28) | 0.00 |
Total distributions to shareholders
| (0.14) | (0.25) | (0.24) | (0.23) | (0.54) | (0.03) |
Net asset value, end of period
| $5.27 | $5.00 | $6.26 | $5.81 | $5.91 | $6.18 |
Total return3
| 8.16% | (16.61)% | 11.99% | 2.25% | 5.07% | 0.71% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.76% | 0.70% | 0.65% | 0.64% | 0.61% | 0.64% |
Net expenses
| 0.42% | 0.42% | 0.42% | 0.42% | 0.42% | 0.41% |
Net investment income
| 4.94% | 3.83% | 3.52% | 3.89% | 4.17% | 2.31% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 21% | 86% | 87% | 39% | 43% | 50% |
Net assets, end of period (000s omitted)
| $51,257 | $51,102 | $47,544 | $2,605 | $24 | $25 |
| 1 | For the period from July 31, 2018 (commencement of class operations) to September 30, 2018 |
| 2 | Calculated based upon average shares outstanding |
| 3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
38 | Allspring Diversified Income Builder Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Administrator Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $5.00 | $6.26 | $5.81 | $5.91 | $6.19 | $6.29 |
Net investment income
| 0.12 1 | 0.21 1 | 0.19 1 | 0.21 1 | 0.22 1 | 0.21 1 |
Net realized and unrealized gains (losses) on investments
| 0.28 | (1.24) | 0.48 | (0.10) | 0.02 | (0.01) |
Total from investment operations
| 0.40 | (1.03) | 0.67 | 0.11 | 0.24 | 0.20 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.13) | (0.23) | (0.22) | (0.21) | (0.24) | (0.20) |
Net realized gains
| 0.00 | 0.00 | 0.00 | 0.00 | (0.28) | (0.10) |
Total distributions to shareholders
| (0.13) | (0.23) | (0.22) | (0.21) | (0.52) | (0.30) |
Net asset value, end of period
| $5.27 | $5.00 | $6.26 | $5.81 | $5.91 | $6.19 |
Total return2
| 7.97% | (16.91)% | 11.61% | 1.89% | 4.52% | 3.21% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.11% | 1.04% | 1.00% | 0.99% | 0.97% | 0.96% |
Net expenses
| 0.77% | 0.77% | 0.77% | 0.77% | 0.77% | 0.81% |
Net investment income
| 4.59% | 3.43% | 3.15% | 3.57% | 3.77% | 3.40% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 21% | 86% | 87% | 39% | 43% | 50% |
Net assets, end of period (000s omitted)
| $4,634 | $4,722 | $7,486 | $7,868 | $11,916 | $32,938 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Diversified Income Builder Fund | 39
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Institutional Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $5.00 | $6.26 | $5.80 | $5.91 | $6.19 | $6.28 |
Net investment income
| 0.13 1 | 0.22 1 | 0.21 | 0.22 1 | 0.24 | 0.23 |
Net realized and unrealized gains (losses) on investments
| 0.26 | (1.24) | 0.48 | (0.11) | 0.01 | (0.01) |
Total from investment operations
| 0.39 | (1.02) | 0.69 | 0.11 | 0.25 | 0.22 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.13) | (0.24) | (0.23) | (0.22) | (0.25) | (0.21) |
Net realized gains
| 0.00 | 0.00 | 0.00 | 0.00 | (0.28) | (0.10) |
Total distributions to shareholders
| (0.13) | (0.24) | (0.23) | (0.22) | (0.53) | (0.31) |
Net asset value, end of period
| $5.26 | $5.00 | $6.26 | $5.80 | $5.91 | $6.19 |
Total return2
| 7.90% | (16.69)% | 12.08% | 1.98% | 4.80% | 3.62% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.86% | 0.79% | 0.75% | 0.74% | 0.72% | 0.71% |
Net expenses
| 0.52% | 0.52% | 0.52% | 0.52% | 0.52% | 0.57% |
Net investment income
| 4.80% | 3.67% | 3.40% | 3.83% | 4.07% | 3.67% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 21% | 86% | 87% | 39% | 43% | 50% |
Net assets, end of period (000s omitted)
| $114,271 | $148,499 | $249,764 | $254,963 | $312,093 | $335,589 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
40 | Allspring Diversified Income Builder Fund
Notes to financial statements (unaudited)
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 Diversified Income Builder Fund (the "Fund") which is a diversified series of the Trust.
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
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
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.
Equity securities and futures contracts that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee established by Allspring Funds Management, LLC ("Allspring Funds Management").
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures implemented by Allspring Funds Management are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On March 31, 2023, such fair value pricing was used in pricing certain foreign securities.
Forward foreign currency contracts are recorded at the forward rate provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee.
Options that are listed on a foreign or domestic exchange or market are valued at the closing mid-price. Non-listed options and swap contracts are valued at the evaluated price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Swap contracts are valued at the evaluated price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee 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. On a quarterly basis, the Board of Trustees receives reports of
Allspring Diversified Income Builder Fund | 41
Notes to financial statements (unaudited)
valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.
Securities lending
During the period, the Fund participated in a program to lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities were on loan, the Fund received interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions was invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Effective at the close of business on March 29, 2023, the Fund is no longer participating in the securities lending program and the Securities Lending Fund was liquidated. Securities Lending Fund was managed by Allspring Funds Management and was subadvised by Allspring Global Investments, LLC ("Allspring Investments"), an affiliate of Allspring Funds Management and wholly owned subsidiary of Allspring Global Investments Holdings, LLC. Allspring Funds Management received an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increased. All of the fees received by Allspring Funds Management were paid to Allspring Investments for its services as subadviser.
Investments in Securities Lending Fund were valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
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.
Loans
The Fund may invest in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When the Fund purchases participations, it generally has no rights to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund assumes the credit risk of both the borrower and the lender that is selling the participation. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan
42 | Allspring Diversified Income Builder Fund
Notes to financial statements (unaudited)
and may enforce compliance by the borrower with the terms of the loan agreement. Loans may include fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding.
Forward foreign currency contracts
A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on forward foreign currency contracts. The Fund is subject to foreign currency risk and may be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund's maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the counterparty.
Futures contracts
Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at a specified price on a specified date. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in interest rates, security values and foreign exchange rates and is subject to interest rate risk, equity price risk and foreign currency risk. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market. Futures contracts are generally entered into on a regulated futures exchange and cleared through a clearinghouse associated with the exchange. With futures contracts, there is minimal counterparty risk to the Fund since futures contracts are exchange-traded and the exchange’s clearinghouse, as the counterparty to all exchange-traded futures, guarantees the futures contracts against default.
Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) with the broker in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are paid to or from the broker each day equal to the daily changes in the contract value. Such payments are recorded as unrealized gains or losses and, if any, shown as variation margin receivable (payable) in the Statement of Assets and Liabilities. Should the Fund fail to make requested variation margin payments, the broker can gain access to the initial margin to satisfy the Fund’s payment obligations. When the contracts are closed, a realized gain or loss is recorded in the Statement of Operations.
Options
The Fund may write covered call options or secured put options on individual securities and/or indexes. When the Fund writes an option, an amount equal to the premium received is recorded as a liability and is subsequently adjusted to the current market value of the written option. Premiums received from written options that expire unexercised are recognized as realized gains on the expiration date. For exercised options, the difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in calculating the realized gain or loss on the sale. If a put option is exercised, the premium reduces the cost of the security purchased. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security and/or index underlying the written option.
The Fund may also purchase call or put options. Premiums paid are included in the Statement of Assets and Liabilities as investments, the values of which are subsequently adjusted based on the current market values of the options. Premiums paid for purchased options that expire are recognized as realized losses on the expiration date. Premiums paid for purchased options that are exercised or closed are added to the amount paid or offset against the proceeds received for the underlying security to determine the realized gain or loss. The risk of loss associated with purchased options is limited to the premium paid.
Options traded on an exchange are regulated and terms of the options are standardized. The Fund is subject to equity price risk. Purchased options traded over-the-counter expose the Fund to counterparty risk in the event the counterparty does not perform. This risk can be mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.
Swap contracts
Swap contracts are agreements between the Fund and a counterparty to exchange a series of cash flows over a specified period. Swap agreements are privately negotiated contracts between the Fund that are entered into as bilateral contracts in the over-the-counter market or centrally cleared (“centrally cleared swaps”) with a central clearinghouse.
Allspring Diversified Income Builder Fund | 43
Notes to financial statements (unaudited)
The Fund entered into centrally cleared swaps. In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the counterparty on the swap agreement becomes the CCP. Upon entering into a centrally cleared swap, the Fund is required to deposit an initial margin with the broker in the form of cash or securities. Securities deposited as initial margin are designated in the Portfolio of Investments and cash deposited is shown as cash segregated for centrally cleared swaps in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). The variation margin is recorded as an unrealized gain (or loss) and shown as daily variation margin receivable (or payable) on centrally cleared swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty are recorded as realized gains (losses) in the Statement of Operations when the contract is closed.
Credit default swaps
The Fund may enter into credit default swaps for hedging or speculative purposes to provide or receive a measure of protection against default on a referenced entity, obligation or index or a basket of single-name issuers or traded indexes. An index credit default swap references all the names in the index, and if a credit event is triggered, the credit event is settled based on that name’s weight in the index. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the protection seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring).
The Fund may enter into credit default swaps as either the seller of protection or the buyer of protection. If the Fund is the buyer of protection and a credit event occurs, the Fund will either receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. If the Fund is the seller of protection and a credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.
As the seller of protection, the Fund is subject to investment exposure on the notional amount of the swap and has assumed the risk of default of the underlying security or index. As the buyer of protection, the Fund could be exposed to risks if the seller of the protection defaults on its obligation to perform, or if there are unfavorable changes in the fluctuation of interest rates.
By entering into credit default swap contracts, the Fund is exposed to credit risk. In addition, certain credit default swap contracts entered into by the Fund provide for conditions that result in events of default or termination that enable the counterparty to the agreement to cause an early termination of the transactions under those agreements.
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. Paydown gains and losses are included in interest income.
Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date.
Income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
Distributions to shareholders
Distributions to shareholders are recorded on the ex-dividend date and paid from net investment income monthly and any net realized gains are 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.
44 | Allspring Diversified Income Builder Fund
Notes to financial statements (unaudited)
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, as applicable, 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 March 31, 2023, the aggregate cost of all investments for federal income tax purposes was $384,444,129 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $ 20,327,678 |
| Gross unrealized losses | (32,477,759) |
| Net unrealized losses | $(12,150,081) |
As of September 30, 2022, the Fund had capital loss carryforwards which consisted of $22,944,760 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 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.
Allspring Diversified Income Builder Fund | 45
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2023:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Asset-backed securities | $ 0 | $ 6,184,360 | $ 0 | $ 6,184,360 |
| Common stocks | | | | |
| Communication services | 5,547,891 | 3,331,045 | 0 | 8,878,936 |
| Consumer discretionary | 9,214,397 | 4,590,020 | 0 | 13,804,417 |
| Consumer staples | 3,682,557 | 313,495 | 0 | 3,996,052 |
| Energy | 2,728,945 | 503,178 | 0 | 3,232,123 |
| Financials | 12,553,535 | 7,658,780 | 0 | 20,212,315 |
| Health care | 12,001,463 | 1,437,600 | 0 | 13,439,063 |
| Industrials | 7,046,177 | 3,862,515 | 0 | 10,908,692 |
| Information technology | 29,434,153 | 3,658,713 | 0 | 33,092,866 |
| Materials | 1,951,920 | 870,995 | 0 | 2,822,915 |
| Real estate | 2,061,671 | 375,517 | 0 | 2,437,188 |
| Utilities | 692,514 | 1,235,235 | 0 | 1,927,749 |
| Corporate bonds and notes | 0 | 153,538,452 | 0 | 153,538,452 |
| Foreign corporate bonds and notes | 0 | 12,733,594 | 0 | 12,733,594 |
| Loans | 0 | 10,794,591 | 346,168 | 11,140,759 |
| Municipal obligations | 0 | 13,247,877 | 0 | 13,247,877 |
| Non-agency mortgage-backed securities | 0 | 7,992,360 | 0 | 7,992,360 |
| Preferred stocks | | | | |
| Energy | 56,051 | 0 | 0 | 56,051 |
| Financials | 88,349 | 0 | 0 | 88,349 |
| Information technology | 0 | 299,542 | 0 | 299,542 |
| Materials | 0 | 186,892 | 0 | 186,892 |
| Yankee corporate bonds and notes | 0 | 34,159,174 | 0 | 34,159,174 |
| Short-term investments | | | | |
| Investment companies | 18,153,613 | 0 | 0 | 18,153,613 |
| | 105,213,236 | 266,973,935 | 346,168 | 372,533,339 |
| Futures contracts | 46,506 | 0 | 0 | 46,506 |
| Total assets | $105,259,742 | $266,973,935 | $346,168 | $372,579,845 |
| Liabilities | | | | |
| Forward foreign currency contracts | $ 0 | $ 99,619 | $ 0 | $ 99,619 |
| Written options | 164,322 | 1,160 | 0 | 165,482 |
| Swap contracts | 0 | 20,696 | 0 | 20,696 |
| Total liabilities | $ 164,322 | $ 121,475 | $ 0 | $ 285,797 |
Futures contracts, forward foreign currency contracts and swap contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the tables following the Portfolio of Investments. For futures contracts and centrally cleared swap contracts, the current day’s variation margin is reported on the Statement of Assets and Liabilities. All other assets and liabilities are reported at their market value at measurement date.
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended March 31, 2023, the Fund did not have any transfers into/out of Level 3.
46 | Allspring Diversified Income Builder Fund
Notes to financial statements (unaudited)
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 $500 million | 0.550% |
| Next $500 million | 0.525 |
| Next $2 billion | 0.500 |
| Next $2 billion | 0.475 |
| Next $5 billion | 0.440 |
| Over $10 billion | 0.430 |
For the six months ended March 31, 2023, the management fee was equivalent to an annual rate of 0.55% 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 Investments is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.35% and declining to 0.20% 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 | 0.21% |
| Class C | 0.21 |
| Class R6 | 0.03 |
| Administrator Class | 0.13 |
| Institutional Class | 0.13 |
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 January 31, 2024 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. As of March 31, 2023, the contractual expense caps are as follows:
Allspring Diversified Income Builder Fund | 47
Notes to financial statements (unaudited)
| | Expense ratio caps |
| Class A | 0.85% |
| Class C | 1.60 |
| Class R6 | 0.42 |
| Administrator Class | 0.77 |
| Institutional Class | 0.52 |
Distribution fee
The Trust has adopted a distribution plan for Class C shares 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"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended March 31, 2023, Allspring Funds Distributor received $887 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended March 31, 2023.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
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. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended March 31, 2023 were $83,198,960 and $148,284,357, respectively.
As of March 31, 2023, the Fund had unfunded loan commitments of $712,874 with unrealized losses $120,917.
6. DERIVATIVE TRANSACTIONS
During the six months ended March 31, 2023, the Fund entered into futures contracts and written options for economic hedging purposes.. The Fund also entered into forward foreign currency contracts for economic hedging purposes and entered into credit default swap contracts for hedging or cash management purposes.
The volume of the Fund's derivative activity during the six months ended March 31, 2023 was as follows:
| Options | |
| Average number of contracts written | 6,715 |
| Futures contracts | |
| Average notional balance on long futures | $61,594,391 |
| Average notional balance on short futures | 21,108,034 |
| Forward foreign currency contracts | |
| Average contract amounts to buy | $ 1,574,751 |
| Average contract amounts to sell | 14,640,614 |
| Swap contracts | |
| Average notional balance | $ 1,137,568 |
The swap transactions may contain provisions for early termination in the event the net assets of the Fund declines below specific levels identified by the counterparty. If these levels are triggered, the counterparty may terminate the transaction and seek payment or request full collateralization of the derivative transactions in net liability positions.
48 | Allspring Diversified Income Builder Fund
Notes to financial statements (unaudited)
A summary of the location of derivative instruments on the financial statements by primary risk exposure is outlined in the following tables.
The fair value of derivative instruments as of March 31, 2023 by primary risk type was as follows for the Fund:
| | Asset derivatives | | Liability derivatives |
| | Statement of
Assets and Liabilities location | Fair value | | Statement of
Assets and Liabilities location | Fair value |
| Interest rate risk | Unrealized gains on futures contracts | $ 46,506* | | Unrealized losses on futures contracts | $ 0* |
| Equity risk | | | | Written Options, at value | 165,482 |
| Foreign currency risk | Unrealized gains on forward foreign currency contracts | 0 | | Unrealized losses on forward foreign currency contracts | 99,619 |
| Credit risk | Net unrealized gains on swap contracts | 0* | | Net unrealized losses on swap contracts | 20,696* |
| | | $46,506 | | | $285,797 |
* Amount represents the cumulative unrealized gains (losses) as reported in the table following the Portfolio of Investments. For futures contracts and centrally cleared swap contracts, only the current day's variation margin as of March 31, 2023 is reported separately on the Statement of Assets and Liabilities.
The effect of derivative instruments on the Statement of Operations for the six months ended March 31, 2023 was as follows:
| | Net realized gains (losses) on derivatives |
| | Forward
foreign
currency
contracts | Futures
contracts | Swap
contracts | Written
options | Total |
| Interest rate risk | $ 0 | $ (29,527) | $ 0 | $ 0 | $ (1,608,176) |
| Equity risk | 0 | (1,161,531) | 0 | (190,641) | (190,641) |
| Foreign currency risk | (1,053,456) | (419,794) | 0 | 0 | (1,053,456) |
| Credit risk | 0 | 0 | 14,182 | 0 | 14,182 |
| | $(1,053,456) | $(1,610,852) | $14,182 | $(190,641) | $(2,838,091) |
| | Net change in unrealized gains (losses) on derivatives |
| | Forward
foreign
currency
contracts | Futures
contracts | Swap
contracts | Written
options | Total |
| Interest rate risk | $ 0 | $ 960,949 | $ 0 | $ 0 | $ 960,949 |
| Equity risk | 0 | 350,285 | 0 | (125,734) | 224,551 |
| Foreign currency risk | (108,938) | (51,997) | 0 | 0 | (160,935) |
| Credit risk | 0 | 0 | 33,336 | 0 | 33,336 |
| | $(108,938) | $1,259,237 | $33,336 | $(125,734) | $1,057,901 |
For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty.
Allspring Diversified Income Builder Fund | 49
Notes to financial statements (unaudited)
A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by counterparty, including any collateral exposure, for OTC derivatives is as follows:
| Counterparty | Gross amounts
of liabilities in the
Statement of
Assets and
Liabilities | Amounts
subject to
netting
agreements | Collateral
pledged1 | Net amount
of liabilities |
| Citibank National Association | $99,619 | $0 | $(99,619) | $0 |
1 Collateral pledged within this table is limited to the collateral for the net transaction with the counterparty.
7. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended March 31, 2023, there were no borrowings by the Fund under the agreement.
8. 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.
50 | Allspring Diversified Income Builder Fund
Other information (unaudited)
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.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
Allspring Diversified Income Builder Fund | 51
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 127 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 1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203. 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 Foundation (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. Member of the Advisory Board of CEF of East Central Florida. 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 | Distinguished Visiting Fellow at the Hoover Institution since 2022. 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 |
52 | Allspring Diversified Income Builder Fund
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, from 2007-2022. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. | 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 | Retired. Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer, Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Allspring Diversified Income Builder Fund | 53
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 and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, from 2019 to 2022 and 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. |
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 from 2005 to 2010. |
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) | Chief Legal Officer, since 2022; 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.
54 | Allspring Diversified Income Builder Fund
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
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.
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.
© 2023 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-04042023-1366a5xo 05-23
SAR4304 03-23
Semi-Annual Report
March 31, 2023
Allspring
Index Asset Allocation Fund
The views expressed and any forward-looking statements are as of March 31, 2023, 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.
Allspring Index Asset Allocation Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Index Asset Allocation Fund for the six-month period that ended March 31, 2023. Globally, stocks and bonds rebounded strongly despite ongoing volatility. While navigating persistently high inflation and the impact of ongoing aggressive central bank rate hikes, markets rallied on signs of declining inflation, anticipation of an end to the central bank monetary tightening cycle, and the stimulating impact of China removing its strict COVID-19 lockdowns in December. For the six-month period, domestic U.S. and global stocks and bonds had strong results. After suffering deep and broad losses through 2022, recent fixed income performance benefited from a base of higher yields that can now generate higher income.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 15.62%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 22.13%, while the MSCI EM Index (Net) (USD)3 returned 14.04%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 4.89%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 returned 10.07%, the Bloomberg Municipal Bond Index6 gained 7.00%, and the ICE BofA U.S. High Yield Index7 returned 7.89%.
Despite high inflation and central bank rate hikes, markets rally.
Equities had a reprieve in October. Value stocks and small caps fared best. Globally, developed markets outpaced emerging market equities, which were hurt by weakness among Chinese stocks. Central banks continued to try to curtail high inflation with aggressive interest rate hikes. Geopolitical risks persisted, including the ongoing Russia-Ukraine war and economic, financial market, and political turmoil in the U.K. Concerns over Europe’s energy crisis eased thanks to unseasonably warm weather and plentiful gas on hand. The U.S. labor market continued its resilience against rising prices as unemployment remained near a record low.
Stocks and bonds rallied in November. Economic news was encouraging, driven by U.S. labor market strength. Although central banks kept raising rates, hopes rose for an easing in the pace of rate hikes and a possible end to central bank monetary tightening in 2023. Although inflation remained at record highs in the eurozone, we began to see signs of a possible decline in inflationary pressures as U.S. inflation moderated, with a 7.1% annual price rise in November and a monthly price increase of just 0.1%. China’s economic data remained weak, reflecting its zero-COVID-19 policy.
| 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 2023. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring Index Asset Allocation Fund
Letter to shareholders (unaudited)
Financial markets cooled in December, with U.S. equities posting negative overall results in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever with flat overall monthly returns as markets weighed the hopes for an end to the monetary tightening cycle with the reality that central banks had not completed their jobs yet. U.S. Consumer Price Index (CPI)1 data showed a strong consistent trend downward, which brought down the 12-month CPI to 6.5% in December from 9.1% in June. Other countries and regions reported still-high but declining inflation rates as the year winded down.
The year 2023 began with a rally across global equities and fixed income securities. Investor optimism rose in response to data indicating declining inflation rates and the reopening of China’s economy with the abrupt end to its zero-COVID-19 policy. The U.S. reported surprisingly strong job gains––employers added more than 500,000 jobs––and unemployment fell to 3.4%, the lowest level since 1969. Meanwhile, wage growth, seen as a potential contributor to ongoing high inflation, continued to moderate. All eyes remained fixed on the Federal Reserve (Fed) and on how many more rate hikes remain in this tightening cycle. The 0.25% federal funds rate hike announced in January was the Fed’s smallest rate increase since March 2022.
Financial markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks will likely continue their monetary tightening cycle for longer than markets had priced in. In this environment—where strong economic data is seen as bad news—the resilient U.S. labor market was seen as a negative while the inflation rate has not been falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the Bank of England and the European Central Bank both raised rates by 0.50%. At this stage in the economic cycle, the overriding question remained: “What will central banks do?” In February, the answer appeared to be: “Move rates higher for longer.”
The collapse of Silicon Valley Bank in March, the second-largest banking failure in U.S. history, led to a classic bank run that spread to Europe, where Switzerland’s Credit Suisse was taken over by its rival, UBS. The sudden banking industry uncertainty led some clients of regional banks to transfer deposits to a handful of U.S. banking giants while bank shareholders sold stock. The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. The U.S. labor market remained resilient. The euro-area composite Purchasing Managers’ Index2 rose to 53.70, indicating expansion, for March. And China’s economy continued to rebound after the removal of its COVID-19 lockdown. Inflation rates in the U.S., the U.K., and Europe all remained higher than central bank targets, leading to additional rate hikes in March.
“ The banking industry turmoil could make the job of central banks more challenging as they weigh inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China.”
| 1 | The U.S. 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. |
| 2 | The Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. You cannot invest directly in an index. |
Allspring Index Asset Allocation Fund | 3
Letter to shareholders (unaudited)
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.
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
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.
4 | Allspring Index Asset Allocation Fund
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Performance highlights (unaudited)
| Investment objective | The Fund seeks long-term total return, consisting of capital appreciation and current income. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Kandarp R. Acharya, CFA, FRM, Manjunath Boraiah, Petros N. Bocray, CFA, FRM, John R. Campbell, CFA, Travis L. Keshemberg, CFA, CIPM, FRM, David Neal, CFA, Nick Toporkov, Ph.D., CFA, Robert M. Wicentowski, CFA, Limin Xiao, Ph.D., CFA |
| Average annual total returns (%) as of March 31, 2023 |
| | | 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 (SFAAX) | 11-13-1986 | -12.69 | 5.50 | 7.43 | | -7.36 | 6.75 | 8.07 | | 1.10 | 1.08 |
| Class C (WFALX) | 4-1-1998 | -9.05 | 5.96 | 7.43 | | -8.05 | 5.96 | 7.43 | | 1.85 | 1.83 |
| Administrator Class (WFAIX) | 11-8-1999 | – | – | – | | -7.20 | 6.94 | 8.29 | | 1.02 | 0.90 |
| Institutional Class (WFATX)3 | 10-31-2016 | – | – | – | | -7.05 | 7.10 | 8.39 | | 0.77 | 0.75 |
| Index Asset Allocation Blended Index4 | – | – | – | – | | -6.09 | 7.35 | 8.46 | | – | – |
| Bloomberg U.S. Treasury Index5 | – | – | – | – | | -4.51 | 0.74 | 0.90 | | – | – |
| S&P 500 Index6 | – | – | – | – | | -7.73 | 11.19 | 12.24 | | – | – |
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 return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. 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.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
For Class A shares, the maximum front-end sales charge is 5.75%. 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. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
| 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 January 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.08% for Class A, 1.83% for Class C, 0.90% for Administrator Class, and 0.75% for Institutional 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. 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. |
| 4 | Source: Allspring Funds Management, LLC. The Index Asset Allocation Blended Index is composed 60% of the S&P 500 Index and 40% of the Bloomberg U.S. Treasury Index. Prior to April 1, 2015, the Index Asset Allocation Blended Index was composed 60% of the S&P 500 Index and 40% of the Bloomberg U.S. Treasury 20+ Year Index. You cannot invest directly in an index. |
| 5 | The Bloomberg U.S. Treasury Index is an unmanaged index of prices of U.S. Treasury bonds with maturities of 1 to 30 years. You cannot invest directly in an index. |
| 6 | 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. |
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
6 | Allspring Index Asset Allocation Fund
Performance highlights (unaudited)
Balanced funds may invest in stocks and bonds. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond 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 held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Consult the Fund’s prospectus for additional information on these and other risks.
Allspring Index Asset Allocation Fund | 7
Performance highlights (unaudited)
| Ten largest holdings (%) as of March 31, 20231 |
| Apple Incorporated | 4.33 |
| Microsoft Corporation | 3.79 |
| Amazon.com Incorporated | 1.63 |
| U.S. Treasury Note, 1.38%, 10-31-2028 | 1.61 |
| U.S. Treasury Note, 1.38%, 11-15-2031 | 1.47 |
| U.S. Treasury Bond, 6.88%, 8-15-2025 | 1.36 |
| NVIDIA Corporation | 1.21 |
| Alphabet Incorporated Class A | 1.09 |
| Tesla Motors Incorporated | 0.98 |
| Berkshire Hathaway Incorporated Class B | 0.98 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Allocation (%) as of March 31, 2023 |
| | Neutral
allocation | Effective
allocation1 |
| Bond Funds | 40 | 44 |
| Stock Funds | 60 | 60 |
| Effective Cash | 0 | (4) |
| 1 | Effective allocation reflects the effect of the tactical futures overlay that may be in place. Effective cash, if any, represents the net offset to such future positions. Effective allocations are subject to change and may have changed since the date specified. |
8 | Allspring Index Asset Allocation Fund
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 October 1, 2022 to March 31, 2023.
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 sales charges (loads) and 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
10-1-2022 | Ending
account value
3-31-2023 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class A | | | | |
| Actual | $1,000.00 | $1,098.71 | $5.65 | 1.08% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.55 | $5.44 | 1.08% |
| Class C | | | | |
| Actual | $1,000.00 | $1,094.75 | $9.56 | 1.83% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,015.81 | $9.20 | 1.83% |
| Administrator Class | | | | |
| Actual | $1,000.00 | $1,099.70 | $4.71 | 0.90% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.44 | $4.53 | 0.90% |
| Institutional Class | | | | |
| Actual | $1,000.00 | $1,100.65 | $3.93 | 0.75% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,021.19 | $3.78 | 0.75% |
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 182 divided by 365 (to reflect the one-half-year period).
Allspring Index Asset Allocation Fund | 9
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| Agency securities: 0.00% | | | | | |
| FNMA Series 2002-T1 Class A4 | | 9.50% | 11-25-2031 | $ 18,135 | $ 19,996 |
| Total Agency securities (Cost $18,135) | | | | | 19,996 |
| | | | | Shares | |
| Common stocks: 60.62% | | | | | |
| Communication services: 4.92% | | | | | |
| Diversified telecommunication services: 0.53% | | | | | |
| AT&T Incorporated | | | | 167,508 | 3,224,529 |
| Verizon Communications Incorporated | | | | 98,697 | 3,838,326 |
| | | | | | 7,062,855 |
| Entertainment: 0.87% | | | | | |
| Activision Blizzard Incorporated | | | | 16,736 | 1,432,434 |
| Electronic Arts Incorporated | | | | 6,122 | 737,395 |
| Live Nation Entertainment Incorporated † | | | | 3,350 | 234,500 |
| Netflix Incorporated † | | | | 10,466 | 3,615,794 |
| Take-Two Interactive Software Incorporated † | | | | 3,726 | 444,512 |
| The Walt Disney Company † | | | | 42,930 | 4,298,581 |
| Warner Bros. Discovery Incorporated † | | | | 51,931 | 784,158 |
| | | | | | 11,547,374 |
| Interactive media & services: 2.90% | | | | | |
| Alphabet Incorporated Class A † | | | | 139,966 | 14,518,673 |
| Alphabet Incorporated Class C † | | | | 122,016 | 12,689,664 |
| Match Group Incorporated † | | | | 6,564 | 251,992 |
| Meta Platforms Incorporated Class A † | | | | 52,305 | 11,085,522 |
| | | | | | 38,545,851 |
| Media: 0.47% | | | | | |
| Charter Communications Incorporated Class A † | | | | 2,475 | 885,085 |
| Comcast Corporation Class A | | | | 98,855 | 3,747,593 |
| DISH Network Corporation Class A † | | | | 5,907 | 55,112 |
| Fox Corporation Class A | | | | 6,978 | 237,601 |
| Fox Corporation Class B | | | | 3,239 | 101,413 |
| Interpublic Group of Companies Incorporated | | | | 9,130 | 340,001 |
| News Corporation Class A | | | | 8,986 | 155,188 |
| News Corporation Class B | | | | 2,770 | 48,281 |
| Omnicom Group Incorporated | | | | 4,764 | 449,436 |
| Paramount Global Class B | | | | 11,868 | 264,775 |
| | | | | | 6,284,485 |
| Wireless telecommunication services: 0.15% | | | | | |
| T-Mobile US Incorporated † | | | | 13,919 | 2,016,028 |
| Consumer discretionary: 6.14% | | | | | |
| Automobile components: 0.08% | | | | | |
| Aptiv plc † | | | | 6,367 | 714,314 |
| BorgWarner Incorporated | | | | 5,502 | 270,203 |
| | | | | | 984,517 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Index Asset Allocation Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Automobiles: 1.16% | | | | | |
| Ford Motor Company | | | | 92,010 | $ 1,159,326 |
| General Motors Company | | | | 32,774 | 1,202,150 |
| Tesla Motors Incorporated † | | | | 63,203 | 13,112,094 |
| | | | | | 15,473,570 |
| Broadline retail: 1.69% | | | | | |
| Amazon.com Incorporated † | | | | 209,505 | 21,639,771 |
| eBay Incorporated | | | | 12,752 | 565,806 |
| Etsy Incorporated † | | | | 2,954 | 328,869 |
| | | | | | 22,534,446 |
| Distributors: 0.09% | | | | | |
| Genuine Parts Company | | | | 3,313 | 554,298 |
| LKQ Corporation | | | | 5,965 | 338,573 |
| Pool Corporation | | | | 918 | 314,360 |
| | | | | | 1,207,231 |
| Hotels, restaurants & leisure: 1.28% | | | | | |
| Booking Holdings Incorporated † | | | | 912 | 2,418,998 |
| Caesars Entertainment Incorporated † | | | | 5,042 | 246,100 |
| Carnival Corporation † | | | | 23,550 | 239,033 |
| Chipotle Mexican Grill Incorporated † | | | | 649 | 1,108,680 |
| Darden Restaurants Incorporated | | | | 2,860 | 443,758 |
| Domino's Pizza Incorporated | | | | 832 | 274,452 |
| Expedia Group Incorporated † | | | | 3,474 | 337,082 |
| Hilton Worldwide Holdings Incorporated | | | | 6,262 | 882,128 |
| Las Vegas Sands Corporation † | | | | 7,723 | 443,686 |
| Marriott International Incorporated Class A | | | | 6,323 | 1,049,871 |
| McDonald's Corporation | | | | 17,212 | 4,812,647 |
| MGM Resorts International | | | | 7,394 | 328,441 |
| Norwegian Cruise Line Holdings Limited † | | | | 9,903 | 133,195 |
| Royal Caribbean Cruises Limited † | | | | 5,158 | 336,817 |
| Starbucks Corporation | | | | 27,009 | 2,812,447 |
| Wynn Resorts Limited † | | | | 2,423 | 271,158 |
| Yum! Brands Incorporated | | | | 6,580 | 869,086 |
| | | | | | 17,007,579 |
| Household durables: 0.21% | | | | | |
| D.R. Horton Incorporated | | | | 7,343 | 717,338 |
| Garmin Limited | | | | 3,603 | 363,615 |
| Lennar Corporation Class A | | | | 5,958 | 626,245 |
| Mohawk Industries Incorporated † | | | | 1,239 | 124,173 |
| Newell Rubbermaid Incorporated | | | | 8,845 | 110,032 |
| NVR Incorporated † | | | | 71 | 395,625 |
| PulteGroup Incorporated | | | | 5,302 | 309,001 |
| Whirlpool Corporation | | | | 1,281 | 169,118 |
| | | | | | 2,815,147 |
| Leisure products: 0.01% | | | | | |
| Hasbro Incorporated | | | | 3,051 | 163,808 |
| Specialty retail: 1.31% | | | | | |
| Advance Auto Parts Incorporated | | | | 1,392 | 169,281 |
| AutoZone Incorporated † | | | | 441 | 1,084,044 |
| Bath & Body Works Incorporated | | | | 5,368 | 196,361 |
The accompanying notes are an integral part of these financial statements.
Allspring Index Asset Allocation Fund | 11
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Specialty retail (continued) | | | | | |
| Best Buy Company Incorporated | | | | 4,628 | $ 362,234 |
| CarMax Incorporated † | | | | 3,714 | 238,736 |
| Lowe's Companies Incorporated | | | | 14,211 | 2,841,774 |
| O'Reilly Automotive Incorporated † | | | | 1,465 | 1,243,756 |
| Ross Stores Incorporated | | | | 8,093 | 858,910 |
| The Home Depot Incorporated | | | | 23,951 | 7,068,419 |
| The TJX Companies Incorporated | | | | 27,154 | 2,127,787 |
| Tractor Supply Company | | | | 2,596 | 610,164 |
| Ulta Beauty Incorporated † | | | | 1,196 | 652,621 |
| | | | | | 17,454,087 |
| Textiles, apparel & luxury goods: 0.31% | | | | | |
| Nike Incorporated Class B | | | | 29,273 | 3,590,041 |
| Ralph Lauren Corporation | | | | 966 | 112,703 |
| Tapestry Incorporated | | | | 5,548 | 239,174 |
| VF Corporation | | | | 7,763 | 177,850 |
| | | | | | 4,119,768 |
| Consumer staples: 4.39% | | | | | |
| Beverages: 1.10% | | | | | |
| Brown-Forman Corporation Class B | | | | 4,297 | 276,168 |
| Constellation Brands Incorporated Class A | | | | 3,815 | 861,770 |
| Keurig Dr. Pepper Incorporated | | | | 19,969 | 704,506 |
| Molson Coors Brewing Company Class B | | | | 4,418 | 228,322 |
| Monster Beverage Corporation † | | | | 17,902 | 966,887 |
| PepsiCo Incorporated | | | | 32,365 | 5,900,140 |
| The Coca-Cola Company | | | | 91,463 | 5,673,450 |
| | | | | | 14,611,243 |
| Consumer staples distribution & retail: 1.20% | | | | | |
| Costco Wholesale Corporation | | | | 10,428 | 5,181,360 |
| Dollar General Corporation | | | | 5,254 | 1,105,757 |
| Dollar Tree Incorporated † | | | | 4,886 | 701,385 |
| Sysco Corporation | | | | 11,929 | 921,277 |
| Target Corporation | | | | 10,817 | 1,791,620 |
| The Kroger Company | | | | 15,308 | 755,756 |
| Walgreens Boots Alliance Incorporated | | | | 16,823 | 581,739 |
| Walmart Incorporated | | | | 32,955 | 4,859,215 |
| | | | | | 15,898,109 |
| Food products: 0.70% | | | | | |
| Archer Daniels Midland Company | | | | 12,856 | 1,024,109 |
| Bunge Limited | | | | 3,520 | 336,230 |
| Campbell Soup Company | | | | 4,715 | 259,231 |
| ConAgra Foods Incorporated | | | | 11,201 | 420,710 |
| General Mills Incorporated | | | | 13,856 | 1,184,134 |
| Hormel Foods Corporation | | | | 6,806 | 271,423 |
| Kellogg Company | | | | 6,015 | 402,764 |
| Lamb Weston Holdings Incorporated | | | | 3,381 | 353,382 |
| McCormick & Company Incorporated | | | | 5,892 | 490,273 |
| Mondelez International Incorporated Class A | | | | 32,038 | 2,233,689 |
| The Hershey Company | | | | 3,454 | 878,732 |
| The J.M. Smucker Company | | | | 2,506 | 394,369 |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Index Asset Allocation Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Food products (continued) | | | | | |
| The Kraft Heinz Company | | | | 18,711 | $ 723,554 |
| Tyson Foods Incorporated Class A | | | | 6,712 | 398,156 |
| | | | | | 9,370,756 |
| Household products: 0.88% | | | | | |
| Church & Dwight Company Incorporated | | | | 5,731 | 506,678 |
| Colgate-Palmolive Company | | | | 19,628 | 1,475,044 |
| Kimberly-Clark Corporation | | | | 7,931 | 1,064,499 |
| The Clorox Company | | | | 2,903 | 459,371 |
| The Procter & Gamble Company | | | | 55,440 | 8,243,374 |
| | | | | | 11,748,966 |
| Personal care products: 0.10% | | | | | |
| The Estee Lauder Companies Incorporated Class A | | | | 5,444 | 1,341,728 |
| Tobacco: 0.41% | | | | | |
| Altria Group Incorporated | | | | 41,960 | 1,872,255 |
| Philip Morris International Incorporated | | | | 36,430 | 3,542,818 |
| | | | | | 5,415,073 |
| Energy: 2.79% | | | | | |
| Energy equipment & services: 0.22% | | | | | |
| Baker Hughes Company | | | | 23,641 | 682,279 |
| Halliburton Company | | | | 21,246 | 672,223 |
| Schlumberger Limited | | | | 33,374 | 1,638,663 |
| | | | | | 2,993,165 |
| Oil, gas & consumable fuels: 2.57% | | | | | |
| APA Corporation | | | | 7,556 | 272,469 |
| Chevron Corporation | | | | 41,805 | 6,820,904 |
| ConocoPhillips | | | | 28,761 | 2,853,379 |
| Coterra Energy Incorporated | | | | 18,529 | 454,702 |
| Devon Energy Corporation | | | | 15,362 | 777,471 |
| Diamondback Energy Incorporated | | | | 4,319 | 583,799 |
| EOG Resources Incorporated | | | | 13,804 | 1,582,353 |
| EQT Corporation | | | | 8,626 | 275,256 |
| Exxon Mobil Corporation | | | | 96,773 | 10,612,127 |
| Hess Corporation | | | | 6,521 | 862,989 |
| Kinder Morgan Incorporated | | | | 46,489 | 814,022 |
| Marathon Oil Corporation | | | | 14,924 | 357,579 |
| Marathon Petroleum Corporation | | | | 10,669 | 1,438,501 |
| Occidental Petroleum Corporation | | | | 17,088 | 1,066,804 |
| ONEOK Incorporated | | | | 10,503 | 667,361 |
| Phillips 66 | | | | 10,951 | 1,110,212 |
| Pioneer Natural Resources Company | | | | 5,584 | 1,140,476 |
| Targa Resources Corporation | | | | 5,320 | 388,094 |
| The Williams Companies Incorporated | | | | 28,623 | 854,683 |
| Valero Energy Corporation | | | | 9,060 | 1,264,776 |
| | | | | | 34,197,957 |
| Financials: 7.82% | | | | | |
| Banks: 1.89% | | | | | |
| Bank of America Corporation | | | | 164,018 | 4,690,915 |
| Citigroup Incorporated | | | | 45,516 | 2,134,245 |
The accompanying notes are an integral part of these financial statements.
Allspring Index Asset Allocation Fund | 13
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Banks (continued) | | | | | |
| Citizens Financial Group Incorporated | | | | 11,574 | $ 351,502 |
| Comerica Incorporated | | | | 3,078 | 133,647 |
| Fifth Third Bancorp | | | | 16,060 | 427,838 |
| First Republic Bank | | | | 4,366 | 61,080 |
| Huntington Bancshares Incorporated | | | | 33,912 | 379,814 |
| JPMorgan Chase & Company | | | | 68,930 | 8,982,268 |
| KeyCorp | | | | 21,933 | 274,601 |
| M&T Bank Corporation | | | | 3,978 | 475,649 |
| PNC Financial Services Group Incorporated | | | | 9,423 | 1,197,663 |
| Regions Financial Corporation | | | | 21,949 | 407,373 |
| Truist Financial Corporation | | | | 31,180 | 1,063,238 |
| US Bancorp | | | | 32,740 | 1,180,277 |
| Wells Fargo & Company | | | | 89,546 | 3,347,229 |
| Zions Bancorporation | | | | 3,516 | 105,234 |
| | | | | | 25,212,573 |
| Capital markets: 1.71% | | | | | |
| Ameriprise Financial Incorporated | | | | 2,475 | 758,588 |
| Bank of New York Mellon Corporation | | | | 17,285 | 785,430 |
| BlackRock Incorporated | | | | 3,519 | 2,354,633 |
| Cboe Global Markets Incorporated | | | | 2,493 | 334,660 |
| CME Group Incorporated | | | | 8,454 | 1,619,110 |
| FactSet Research Systems Incorporated | | | | 899 | 373,166 |
| Franklin Resources Incorporated | | | | 6,702 | 180,552 |
| Intercontinental Exchange Incorporated | | | | 13,133 | 1,369,641 |
| Invesco Limited | | | | 10,688 | 175,283 |
| MarketAxess Holdings Incorporated | | | | 884 | 345,900 |
| Moody's Corporation | | | | 3,702 | 1,132,886 |
| Morgan Stanley | | | | 30,703 | 2,695,723 |
| MSCI Incorporated | | | | 1,879 | 1,051,658 |
| Northern Trust Corporation | | | | 4,898 | 431,661 |
| Raymond James Financial Incorporated | | | | 4,555 | 424,845 |
| S&P Global Incorporated | | | | 7,736 | 2,667,141 |
| State Street Corporation | | | | 8,202 | 620,809 |
| T. Rowe Price Group Incorporated | | | | 5,271 | 595,096 |
| The Charles Schwab Corporation | | | | 35,845 | 1,877,561 |
| The Goldman Sachs Group Incorporated | | | | 7,958 | 2,603,141 |
| The NASDAQ Incorporated | | | | 7,966 | 435,501 |
| | | | | | 22,832,985 |
| Consumer finance: 0.31% | | | | | |
| American Express Company | | | | 13,991 | 2,307,815 |
| Capital One Financial Corporation | | | | 8,961 | 861,690 |
| Discover Financial Services | | | | 6,274 | 620,122 |
| Synchrony Financial | | | | 10,270 | 298,652 |
| | | | | | 4,088,279 |
| Financial services: 2.60% | | | | | |
| Berkshire Hathaway Incorporated Class B † | | | | 42,340 | 13,073,322 |
| Fidelity National Information Services Incorporated | | | | 13,944 | 757,578 |
| Fiserv Incorporated † | | | | 14,923 | 1,686,747 |
| FleetCor Technologies Incorporated † | | | | 1,733 | 365,403 |
| Global Payments Incorporated | | | | 6,182 | 650,594 |
| Jack Henry & Associates Incorporated | | | | 1,715 | 258,485 |
| MasterCard Incorporated Class A | | | | 19,827 | 7,205,330 |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Index Asset Allocation Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Financial services (continued) | | | | | |
| PayPal Holdings Incorporated † | | | | 26,587 | $ 2,019,017 |
| Visa Incorporated Class A | | | | 38,186 | 8,609,416 |
| | | | | | 34,625,892 |
| Insurance: 1.31% | | | | | |
| AFLAC Incorporated | | | | 13,157 | 848,890 |
| American International Group Incorporated | | | | 17,460 | 879,286 |
| Aon plc Class A | | | | 4,827 | 1,521,905 |
| Arch Capital Group Limited † | | | | 8,692 | 589,926 |
| Arthur J. Gallagher & Company | | | | 4,984 | 953,489 |
| Assurant Incorporated | | | | 1,242 | 149,127 |
| Brown & Brown Incorporated | | | | 5,524 | 317,188 |
| Chubb Limited | | | | 9,754 | 1,894,032 |
| Cincinnati Financial Corporation | | | | 3,694 | 414,024 |
| Everest Reinsurance Group Limited | | | | 920 | 329,378 |
| Globe Life Incorporated | | | | 2,126 | 233,903 |
| Lincoln National Corporation | | | | 3,619 | 81,319 |
| Loews Corporation | | | | 4,584 | 265,964 |
| Marsh & McLennan Companies Incorporated | | | | 11,632 | 1,937,310 |
| MetLife Incorporated | | | | 15,488 | 897,375 |
| Principal Financial Group Incorporated | | | | 5,348 | 397,463 |
| Progressive Corporation | | | | 13,745 | 1,966,360 |
| Prudential Financial Incorporated | | | | 8,648 | 715,536 |
| The Allstate Corporation | | | | 6,180 | 684,806 |
| The Hartford Financial Services Group Incorporated | | | | 7,405 | 516,054 |
| The Travelers Companies Incorporated | | | | 5,431 | 930,928 |
| W.R. Berkley Corporation | | | | 4,787 | 298,039 |
| Willis Towers Watson plc | | | | 2,509 | 583,041 |
| | | | | | 17,405,343 |
| Health care: 8.61% | | | | | |
| Biotechnology: 1.39% | | | | | |
| AbbVie Incorporated | | | | 41,559 | 6,623,258 |
| Amgen Incorporated | | | | 12,548 | 3,033,479 |
| Biogen Incorporated † | | | | 3,384 | 940,854 |
| Gilead Sciences Incorporated | | | | 29,304 | 2,431,353 |
| Incyte Corporation † | | | | 4,349 | 314,302 |
| Moderna Incorporated † | | | | 7,764 | 1,192,395 |
| Regeneron Pharmaceuticals Incorporated † | | | | 2,526 | 2,075,538 |
| Vertex Pharmaceuticals Incorporated † | | | | 6,042 | 1,903,653 |
| | | | | | 18,514,832 |
| Health care equipment & supplies: 1.74% | | | | | |
| Abbott Laboratories | | | | 40,974 | 4,149,027 |
| Align Technology Incorporated † | | | | 1,707 | 570,377 |
| Baxter International Incorporated | | | | 11,860 | 481,042 |
| Becton Dickinson & Company | | | | 6,672 | 1,651,587 |
| Boston Scientific Corporation † | | | | 33,659 | 1,683,960 |
| Dentsply Sirona Incorporated | | | | 5,050 | 198,364 |
| DexCom Incorporated † | | | | 9,081 | 1,055,031 |
| Edwards Lifesciences Corporation † | | | | 14,529 | 1,201,984 |
| GE HealthCare Technology Incorporated † | | | | 8,533 | 699,962 |
| Hologic Incorporated † | | | | 5,794 | 467,576 |
| IDEXX Laboratories Incorporated † | | | | 1,946 | 973,156 |
| Insulet Corporation † | | | | 1,632 | 520,543 |
The accompanying notes are an integral part of these financial statements.
Allspring Index Asset Allocation Fund | 15
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Health care equipment & supplies (continued) | | | | | |
| Intuitive Surgical Incorporated † | | | | 8,234 | $ 2,103,540 |
| Medtronic plc | | | | 31,259 | 2,520,101 |
| ResMed Incorporated | | | | 3,452 | 755,953 |
| STERIS plc | | | | 2,333 | 446,256 |
| Stryker Corporation | | | | 7,923 | 2,261,779 |
| Teleflex Incorporated | | | | 1,102 | 279,148 |
| The Cooper Companies Incorporated | | | | 1,160 | 433,098 |
| Zimmer Biomet Holdings Incorporated | | | | 4,932 | 637,214 |
| | | | | | 23,089,698 |
| Health care providers & services: 1.84% | | | | | |
| AmerisourceBergen Corporation | | | | 3,802 | 608,738 |
| Cardinal Health Incorporated | | | | 6,055 | 457,153 |
| Centene Corporation † | | | | 12,943 | 818,127 |
| Cigna Corporation | | | | 7,019 | 1,793,565 |
| CVS Health Corporation | | | | 30,177 | 2,242,453 |
| DaVita HealthCare Partners Incorporated † | | | | 1,292 | 104,794 |
| Elevance Health Incorporated | | | | 5,612 | 2,580,454 |
| HCA Healthcare Incorporated | | | | 4,983 | 1,313,917 |
| Henry Schein Incorporated † | | | | 3,185 | 259,705 |
| Humana Incorporated | | | | 2,937 | 1,425,796 |
| Laboratory Corporation of America Holdings | | | | 2,082 | 477,652 |
| McKesson Corporation | | | | 3,218 | 1,145,769 |
| Molina Healthcare Incorporated † | | | | 1,372 | 366,996 |
| Quest Diagnostics Incorporated | | | | 2,608 | 368,980 |
| UnitedHealth Group Incorporated | | | | 21,957 | 10,376,659 |
| Universal Health Services Incorporated Class B | | | | 1,508 | 191,667 |
| | | | | | 24,532,425 |
| Life sciences tools & services: 1.12% | | | | | |
| Agilent Technologies Incorporated | | | | 6,953 | 961,878 |
| Bio-Rad Laboratories Incorporated Class A † | | | | 506 | 242,384 |
| Bio-Techne Corporation | | | | 3,696 | 274,206 |
| Charles River Laboratories International Incorporated † | | | | 1,196 | 241,377 |
| Danaher Corporation | | | | 15,404 | 3,882,424 |
| Illumina Incorporated † | | | | 3,697 | 859,737 |
| IQVIA Holdings Incorporated † | | | | 4,364 | 867,956 |
| Mettler-Toledo International Incorporated † | | | | 519 | 794,179 |
| PerkinElmer Incorporated | | | | 2,968 | 395,516 |
| Thermo Fisher Scientific Incorporated | | | | 9,217 | 5,312,402 |
| Waters Corporation † | | | | 1,396 | 432,243 |
| West Pharmaceutical Services Incorporated | | | | 1,740 | 602,858 |
| | | | | | 14,867,160 |
| Pharmaceuticals: 2.52% | | | | | |
| Bristol-Myers Squibb Company | | | | 49,965 | 3,463,074 |
| Catalent Incorporated † | | | | 4,232 | 278,085 |
| Eli Lilly & Company | | | | 18,533 | 6,364,603 |
| Johnson & Johnson | | | | 61,440 | 9,523,200 |
| Merck & Company Incorporated | | | | 59,582 | 6,338,929 |
| Organon & Company | | | | 5,978 | 140,603 |
| Pfizer Incorporated | | | | 131,913 | 5,382,050 |
| Viatris Incorporated | | | | 28,498 | 274,151 |
| Zoetis Incorporated | | | | 10,953 | 1,823,017 |
| | | | | | 33,587,712 |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Index Asset Allocation Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Industrials: 5.25% | | | | | |
| Aerospace & defense: 1.06% | | | | | |
| General Dynamics Corporation | | | | 5,288 | $ 1,206,774 |
| Howmet Aerospace Incorporated | | | | 8,653 | 366,628 |
| Huntington Ingalls Industries Incorporated | | | | 937 | 193,978 |
| L3Harris Technologies Incorporated | | | | 4,474 | 877,978 |
| Lockheed Martin Corporation | | | | 5,340 | 2,524,378 |
| Northrop Grumman Corporation | | | | 3,381 | 1,561,075 |
| Raytheon Technologies Corporation | | | | 34,426 | 3,371,338 |
| Textron Incorporated | | | | 4,906 | 346,511 |
| The Boeing Company † | | | | 13,215 | 2,807,262 |
| TransDigm Group Incorporated | | | | 1,219 | 898,464 |
| | | | | | 14,154,386 |
| Air freight & logistics: 0.39% | | | | | |
| C.H. Robinson Worldwide Incorporated | | | | 2,766 | 274,857 |
| Expeditors International of Washington Incorporated | | | | 3,740 | 411,849 |
| FedEx Corporation | | | | 5,457 | 1,246,870 |
| United Parcel Service Incorporated Class B | | | | 17,151 | 3,327,122 |
| | | | | | 5,260,698 |
| Building products: 0.27% | | | | | |
| A.O. Smith Corporation | | | | 2,981 | 206,136 |
| Allegion plc | | | | 2,064 | 220,291 |
| Carrier Global Corporation | | | | 19,603 | 896,837 |
| Johnson Controls International plc | | | | 16,150 | 972,553 |
| Masco Corporation | | | | 5,292 | 263,118 |
| Trane Technologies plc | | | | 5,383 | 990,364 |
| | | | | | 3,549,299 |
| Commercial services & supplies: 0.30% | | | | | |
| Cintas Corporation | | | | 2,030 | 939,240 |
| Copart Incorporated † | | | | 10,074 | 757,666 |
| Republic Services Incorporated | | | | 4,827 | 652,707 |
| Rollins Incorporated | | | | 5,439 | 204,126 |
| Waste Management Incorporated | | | | 8,728 | 1,424,148 |
| | | | | | 3,977,887 |
| Construction & engineering: 0.04% | | | | | |
| Quanta Services Incorporated | | | | 3,358 | 559,577 |
| Electrical equipment: 0.34% | | | | | |
| AMETEK Incorporated | | | | 5,397 | 784,346 |
| Eaton Corporation plc | | | | 9,346 | 1,601,344 |
| Emerson Electric Company | | | | 13,428 | 1,170,116 |
| Generac Holdings Incorporated † | | | | 1,489 | 160,827 |
| Rockwell Automation Incorporated | | | | 2,697 | 791,435 |
| | | | | | 4,508,068 |
| Ground transportation: 0.49% | | | | | |
| CSX Corporation | | | | 49,407 | 1,479,246 |
| J.B. Hunt Transport Services Incorporated | | | | 1,950 | 342,147 |
| Norfolk Southern Corporation | | | | 5,353 | 1,134,836 |
The accompanying notes are an integral part of these financial statements.
Allspring Index Asset Allocation Fund | 17
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Ground transportation (continued) | | | | | |
| Old Dominion Freight Line Incorporated | | | | 2,129 | $ 725,648 |
| Union Pacific Corporation | | | | 14,379 | 2,893,918 |
| | | | | | 6,575,795 |
| Industrial conglomerates: 0.51% | | | | | |
| 3M Company | | | | 12,937 | 1,359,808 |
| General Electric Company | | | | 25,598 | 2,447,169 |
| Honeywell International Incorporated | | | | 15,701 | 3,000,775 |
| | | | | | 6,807,752 |
| Machinery: 1.09% | | | | | |
| Caterpillar Incorporated | | | | 12,230 | 2,798,713 |
| Cummins Incorporated | | | | 3,321 | 793,320 |
| Deere & Company | | | | 6,355 | 2,623,852 |
| Dover Corporation | | | | 3,283 | 498,819 |
| Fortive Corporation | | | | 8,293 | 565,334 |
| IDEX Corporation | | | | 1,772 | 409,385 |
| Illinois Tool Works Incorporated | | | | 6,524 | 1,588,268 |
| Ingersoll Rand Incorporated | | | | 9,516 | 553,641 |
| Nordson Corporation | | | | 1,263 | 280,714 |
| Otis Worldwide Corporation | | | | 9,749 | 822,816 |
| PACCAR Incorporated | | | | 12,267 | 897,944 |
| Parker-Hannifin Corporation | | | | 3,014 | 1,013,036 |
| Pentair plc | | | | 3,866 | 213,674 |
| Snap-on Incorporated | | | | 1,248 | 308,119 |
| Stanley Black & Decker Incorporated | | | | 3,477 | 280,177 |
| Wabtec Corporation | | | | 4,274 | 431,930 |
| Xylem Incorporated | | | | 4,236 | 443,509 |
| | | | | | 14,523,251 |
| Passenger airlines: 0.13% | | | | | |
| Alaska Air Group Incorporated † | | | | 2,997 | 125,754 |
| American Airlines Group Incorporated † | | | | 15,290 | 225,528 |
| Delta Air Lines Incorporated † | | | | 15,069 | 526,209 |
| Southwest Airlines Company | | | | 13,966 | 454,454 |
| United Airlines Holdings Incorporated † | | | | 7,683 | 339,973 |
| | | | | | 1,671,918 |
| Professional services: 0.47% | | | | | |
| Automatic Data Processing Incorporated | | | | 9,737 | 2,167,748 |
| Broadridge Financial Solutions Incorporated | | | | 2,766 | 405,413 |
| CoStar Group Incorporated † | | | | 9,557 | 657,999 |
| Equifax Incorporated | | | | 2,879 | 583,976 |
| Jacobs Solutions Incorporated | | | | 2,978 | 349,945 |
| Leidos Holdings Incorporated | | | | 3,212 | 295,697 |
| Paychex Incorporated | | | | 7,539 | 863,894 |
| Robert Half International Incorporated | | | | 2,531 | 203,923 |
| Verisk Analytics Incorporated | | | | 3,675 | 705,086 |
| | | | | | 6,233,681 |
| Trading companies & distributors: 0.16% | | | | | |
| Fastenal Company | | | | 13,415 | 723,605 |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Index Asset Allocation Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Trading companies & distributors (continued) | | | | | |
| United Rentals Incorporated | | | | 1,630 | $ 645,089 |
| W.W. Grainger Incorporated | | | | 1,057 | 728,072 |
| | | | | | 2,096,766 |
| Information technology: 15.81% | | | | | |
| Communications equipment: 0.57% | | | | | |
| Arista Networks Incorporated † | | | | 5,817 | 976,442 |
| Cisco Systems Incorporated | | | | 96,540 | 5,046,629 |
| F5 Networks Incorporated † | | | | 1,413 | 205,860 |
| Juniper Networks Incorporated | | | | 7,613 | 262,039 |
| Motorola Solutions Incorporated | | | | 3,929 | 1,124,205 |
| | | | | | 7,615,175 |
| Electronic equipment, instruments & components: 0.39% | | | | | |
| Amphenol Corporation Class A | | | | 13,973 | 1,141,874 |
| CDW Corporation of Delaware | | | | 3,182 | 620,140 |
| Corning Incorporated | | | | 17,889 | 631,124 |
| Keysight Technologies Incorporated † | | | | 4,191 | 676,763 |
| TE Connectivity Limited | | | | 7,437 | 975,363 |
| Teledyne Technologies Incorporated † | | | | 1,101 | 492,543 |
| Trimble Incorporated † | | | | 5,796 | 303,826 |
| Zebra Technologies Corporation Class A † | | | | 1,213 | 385,734 |
| | | | | | 5,227,367 |
| IT services: 0.73% | | | | | |
| Accenture plc Class A | | | | 14,799 | 4,229,702 |
| Akamai Technologies Incorporated † | | | | 3,695 | 289,319 |
| Cognizant Technology Solutions Corporation Class A | | | | 11,961 | 728,784 |
| DXC Technology Company † | | | | 5,351 | 136,772 |
| EPAM Systems Incorporated † | | | | 1,352 | 404,248 |
| Gartner Incorporated † | | | | 1,857 | 604,955 |
| International Business Machines Corporation | | | | 21,247 | 2,785,269 |
| VeriSign Incorporated † | | | | 2,153 | 454,993 |
| | | | | | 9,634,042 |
| Semiconductors & semiconductor equipment: 3.91% | | | | | |
| Advanced Micro Devices Incorporated † | | | | 37,890 | 3,713,599 |
| Analog Devices Incorporated | | | | 11,911 | 2,349,087 |
| Applied Materials Incorporated | | | | 19,812 | 2,433,508 |
| Broadcom Incorporated | | | | 9,820 | 6,299,923 |
| Enphase Energy Incorporated † | | | | 3,194 | 671,634 |
| First Solar Incorporated † | | | | 2,330 | 506,775 |
| Intel Corporation | | | | 97,219 | 3,176,145 |
| KLA Corporation | | | | 3,254 | 1,298,899 |
| Lam Research Corporation | | | | 3,171 | 1,681,011 |
| Microchip Technology Incorporated | | | | 12,873 | 1,078,500 |
| Micron Technology Incorporated | | | | 25,643 | 1,547,299 |
| Monolithic Power Systems Incorporated | | | | 1,052 | 526,568 |
| NVIDIA Corporation | | | | 57,810 | 16,057,884 |
| NXP Semiconductors NV | | | | 6,090 | 1,135,633 |
| ON Semiconductor Corporation † | | | | 10,151 | 835,630 |
| Qorvo Incorporated † | | | | 2,347 | 238,385 |
| Qualcomm Incorporated | | | | 26,202 | 3,342,851 |
| Skyworks Solutions Incorporated | | | | 3,736 | 440,773 |
The accompanying notes are an integral part of these financial statements.
Allspring Index Asset Allocation Fund | 19
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Semiconductors & semiconductor equipment (continued) | | | | | |
| Solaredge Technologies Incorporated † | | | | 1,314 | $ 399,390 |
| Teradyne Incorporated | | | | 3,660 | 393,487 |
| Texas Instruments Incorporated | | | | 21,296 | 3,961,269 |
| | | | | | 52,088,250 |
| Software: 5.73% | | | | | |
| Adobe Incorporated † | | | | 10,758 | 4,145,810 |
| Ansys Incorporated † | | | | 2,047 | 681,242 |
| Autodesk Incorporated † | | | | 5,071 | 1,055,579 |
| Cadence Design Systems Incorporated † | | | | 6,446 | 1,354,240 |
| Ceridian HCM Holding Incorporated † | | | | 3,616 | 264,764 |
| Fair Isaac Corporation † | | | | 591 | 415,290 |
| Fortinet Incorporated † | | | | 15,238 | 1,012,717 |
| Gen Digital | | | | 13,367 | 229,378 |
| Intuit Incorporated | | | | 6,602 | 2,943,370 |
| Microsoft Corporation | | | | 174,929 | 50,432,031 |
| Oracle Corporation | | | | 36,116 | 3,355,899 |
| Paycom Software Incorporated † | | | | 1,133 | 344,443 |
| PTC Incorporated † | | | | 2,501 | 320,703 |
| Roper Technologies Incorporated | | | | 2,492 | 1,098,199 |
| Salesforce.com Incorporated † | | | | 23,500 | 4,694,830 |
| ServiceNow Incorporated † | | | | 4,770 | 2,216,714 |
| Synopsys Incorporated † | | | | 3,582 | 1,383,548 |
| Tyler Technologies Incorporated † | | | | 979 | 347,193 |
| | | | | | 76,295,950 |
| Technology hardware, storage & peripherals: 4.48% | | | | | |
| Apple Incorporated | | | | 349,506 | 57,633,530 |
| Hewlett Packard Enterprise Company | | | | 30,123 | 479,859 |
| HP Incorporated | | | | 20,311 | 596,128 |
| NetApp Incorporated | | | | 5,066 | 323,464 |
| Seagate Technology Holdings plc | | | | 4,513 | 298,400 |
| Western Digital Corporation † | | | | 7,504 | 282,676 |
| | | | | | 59,614,057 |
| Materials: 1.60% | | | | | |
| Chemicals: 1.09% | | | | | |
| Air Products & Chemicals Incorporated | | | | 5,219 | 1,498,949 |
| Albemarle Corporation | | | | 2,753 | 608,523 |
| Celanese Corporation Series A | | | | 2,344 | 255,238 |
| CF Industries Holdings Incorporated | | | | 4,610 | 334,179 |
| Corteva Incorporated | | | | 16,751 | 1,010,253 |
| Dow Incorporated | | | | 16,565 | 908,093 |
| DuPont de Nemours Incorporated | | | | 10,766 | 772,676 |
| Eastman Chemical Company | | | | 2,792 | 235,477 |
| Ecolab Incorporated | | | | 5,823 | 963,881 |
| FMC Corporation | | | | 2,960 | 361,505 |
| International Flavors & Fragrances Incorporated | | | | 5,992 | 551,024 |
| Linde plc | | | | 11,575 | 4,114,218 |
| LyondellBasell Industries NV Class A | | | | 5,969 | 560,429 |
| PPG Industries Incorporated | | | | 5,523 | 737,762 |
| The Mosaic Company | | | | 8,001 | 367,086 |
| The Sherwin-Williams Company | | | | 5,542 | 1,245,675 |
| | | | | | 14,524,968 |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Index Asset Allocation Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Construction materials: 0.08% | | | | | |
| Martin Marietta Materials Incorporated | | | | 1,459 | $ 518,033 |
| Vulcan Materials Company | | | | 3,123 | 535,782 |
| | | | | | 1,053,815 |
| Containers & packaging: 0.16% | | | | | |
| Amcor plc | | | | 34,916 | 397,344 |
| Avery Dennison Corporation | | | | 1,903 | 340,504 |
| Ball Corporation | | | | 7,377 | 406,546 |
| International Paper Company | | | | 8,358 | 301,389 |
| Packaging Corporation of America | | | | 2,175 | 301,955 |
| Sealed Air Corporation | | | | 3,399 | 156,048 |
| WestRock Company | | | | 5,984 | 182,332 |
| | | | | | 2,086,118 |
| Metals & mining: 0.27% | | | | | |
| Freeport-McMoRan Incorporated | | | | 33,589 | 1,374,126 |
| Newmont Corporation | | | | 18,653 | 914,370 |
| Nucor Corporation | | | | 5,945 | 918,324 |
| Steel Dynamics Incorporated | | | | 3,920 | 443,195 |
| | | | | | 3,650,015 |
| Real estate: 1.55% | | | | | |
| Health care REITs: 0.11% | | | | | |
| Healthpeak Properties Incorporated | | | | 12,849 | 282,293 |
| Ventas Incorporated | | | | 9,400 | 407,490 |
| Welltower Incorporated | | | | 11,104 | 796,046 |
| | | | | | 1,485,829 |
| Hotel & resort REITs: 0.02% | | | | | |
| Host Hotels & Resorts Incorporated | | | | 16,803 | 277,081 |
| Industrial REITs: 0.20% | | | | | |
| Prologis Incorporated | | | | 21,692 | 2,706,511 |
| Office REITs: 0.05% | | | | | |
| Alexandria Real Estate Equities Incorporated | | | | 3,701 | 464,809 |
| Boston Properties Incorporated | | | | 3,352 | 181,410 |
| | | | | | 646,219 |
| Real estate management & development: 0.04% | | | | | |
| CBRE Group Incorporated Class A † | | | | 7,425 | 540,614 |
| Residential REITs: 0.21% | | | | | |
| AvalonBay Communities Incorporated | | | | 3,288 | 552,581 |
| Camden Property Trust | | | | 2,588 | 271,326 |
| Equity Residential | | | | 8,004 | 480,240 |
| Essex Property Trust Incorporated | | | | 1,518 | 317,475 |
| Invitation Homes Incorporated | | | | 13,650 | 426,290 |
| Mid-America Apartment Communities Incorporated | | | | 2,714 | 409,923 |
| UDR Incorporated | | | | 7,267 | 298,383 |
| | | | | | 2,756,218 |
| Retail REITs: 0.19% | | | | | |
| Federal Realty Investment Trust | | | | 1,721 | 170,086 |
| Kimco Realty Corporation | | | | 14,534 | 283,849 |
The accompanying notes are an integral part of these financial statements.
Allspring Index Asset Allocation Fund | 21
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Retail REITs (continued) | | | | | |
| Realty Income Corporation | | | | 14,738 | $ 933,210 |
| Regency Centers Corporation | | | | 3,619 | 221,410 |
| Simon Property Group Incorporated | | | | 7,683 | 860,266 |
| | | | | | 2,468,821 |
| Specialized REITs: 0.73% | | | | | |
| American Tower Corporation | | | | 10,942 | 2,235,888 |
| Crown Castle International Corporation | | | | 10,175 | 1,361,822 |
| Digital Realty Trust Incorporated | | | | 6,757 | 664,281 |
| Equinix Incorporated | | | | 2,175 | 1,568,262 |
| Extra Space Storage Incorporated | | | | 3,147 | 512,741 |
| Iron Mountain Incorporated | | | | 6,832 | 361,481 |
| Public Storage Incorporated | | | | 3,715 | 1,122,450 |
| SBA Communications Corporation | | | | 2,537 | 662,335 |
| VICI Properties Incorporated | | | | 23,587 | 769,408 |
| Weyerhaeuser Company | | | | 17,221 | 518,869 |
| | | | | | 9,777,537 |
| Utilities: 1.74% | | | | | |
| Electric utilities: 1.13% | | | | | |
| Alliant Energy Corporation | | | | 5,899 | 315,007 |
| American Electric Power Company Incorporated | | | | 12,076 | 1,098,795 |
| Constellation Energy Corporation | | | | 7,685 | 603,273 |
| Duke Energy Corporation | | | | 18,095 | 1,745,625 |
| Edison International | | | | 8,974 | 633,475 |
| Entergy Corporation | | | | 4,782 | 515,213 |
| Evergy Incorporated | | | | 5,394 | 329,681 |
| Eversource Energy | | | | 8,185 | 640,558 |
| Exelon Corporation | | | | 23,353 | 978,257 |
| FirstEnergy Corporation | | | | 12,764 | 511,326 |
| NextEra Energy Incorporated | | | | 46,698 | 3,599,482 |
| NRG Energy Incorporated | | | | 5,414 | 185,646 |
| PG&E Corporation † | | | | 37,836 | 611,808 |
| Pinnacle West Capital Corporation | | | | 2,659 | 210,699 |
| PPL Corporation | | | | 17,303 | 480,850 |
| The Southern Company | | | | 25,584 | 1,780,135 |
| Xcel Energy Incorporated | | | | 12,860 | 867,278 |
| | | | | | 15,107,108 |
| Gas utilities: 0.03% | | | | | |
| Atmos Energy Corporation | | | | 3,364 | 377,979 |
| Independent power & renewable electricity producers: 0.03% | | | | | |
| AES Corporation | | | | 15,697 | 377,984 |
| Multi-utilities: 0.50% | | | | | |
| Ameren Corporation | | | | 6,075 | 524,819 |
| CenterPoint Energy Incorporated | | | | 14,794 | 435,831 |
| CMS Energy Corporation | | | | 6,845 | 420,146 |
| Consolidated Edison Incorporated | | | | 8,339 | 797,792 |
| Dominion Energy Incorporated | | | | 19,582 | 1,094,830 |
| DTE Energy Company | | | | 4,553 | 498,736 |
| NiSource Incorporated | | | | 9,544 | 266,850 |
| Public Service Enterprise Group Incorporated | | | | 11,725 | 732,226 |
The accompanying notes are an integral part of these financial statements.
22 | Allspring Index Asset Allocation Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | | | Shares | Value |
| Multi-utilities (continued) | | | | | |
| Sempra Energy | | | | 7,387 | $ 1,116,619 |
| WEC Energy Group Incorporated | | | | 7,413 | 702,678 |
| | | | | | 6,590,527 |
| Water utilities: 0.05% | | | | | |
| American Water Works Company Incorporated | | | | 4,535 | 664,332 |
| Total Common stocks (Cost $235,453,336) | | | | | 807,036,237 |
| | | Interest
rate | | Principal | |
| Non-agency mortgage-backed securities: 0.00% | | | | | |
| Citigroup Mortgage Loan Trust Incorporated Series 2004-HYB4 Class AA (1 Month LIBOR +0.33%) ± | | 5.18% | 12-25-2034 | $ 2,603 | 2,338 |
| Total Non-agency mortgage-backed securities (Cost $2,603) | | | | | 2,338 |
| U.S. Treasury securities: 35.18% | | | | | |
| U.S. Treasury Bond | | 1.13 | 5-15-2040 | 2,251,000 | 1,497,882 |
| U.S. Treasury Bond | | 1.13 | 8-15-2040 | 2,981,000 | 1,970,371 |
| U.S. Treasury Bond | | 1.25 | 5-15-2050 | 3,785,000 | 2,200,327 |
| U.S. Treasury Bond | | 1.38 | 11-15-2040 | 1,746,000 | 1,202,626 |
| U.S. Treasury Bond | | 1.38 | 8-15-2050 | 4,388,000 | 2,635,028 |
| U.S. Treasury Bond | | 1.63 | 11-15-2050 | 4,394,000 | 2,817,824 |
| U.S. Treasury Bond | | 1.75 | 8-15-2041 | 4,938,000 | 3,575,421 |
| U.S. Treasury Bond | | 1.88 | 2-15-2041 | 4,559,000 | 3,409,633 |
| U.S. Treasury Bond | | 1.88 | 2-15-2051 | 4,844,000 | 3,308,490 |
| U.S. Treasury Bond | | 2.00 | 2-15-2050 | 3,135,000 | 2,221,931 |
| U.S. Treasury Bond | | 2.00 | 8-15-2051 | 4,900,000 | 3,446,652 |
| U.S. Treasury Bond | | 2.25 | 5-15-2041 | 4,397,000 | 3,492,008 |
| U.S. Treasury Bond | | 2.25 | 8-15-2046 | 1,961,000 | 1,479,866 |
| U.S. Treasury Bond | | 2.25 | 8-15-2049 | 3,118,000 | 2,344,468 |
| U.S. Treasury Bond | | 2.25 | 2-15-2052 | 645,000 | 480,979 |
| U.S. Treasury Bond | | 2.38 | 5-15-2051 | 4,919,000 | 3,777,254 |
| U.S. Treasury Bond | | 2.50 | 2-15-2045 | 2,144,000 | 1,710,761 |
| U.S. Treasury Bond | | 2.50 | 2-15-2046 | 1,960,000 | 1,556,669 |
| U.S. Treasury Bond | | 2.50 | 5-15-2046 | 1,949,000 | 1,547,628 |
| U.S. Treasury Bond | | 2.75 | 8-15-2047 | 1,864,000 | 1,549,377 |
| U.S. Treasury Bond | | 2.75 | 11-15-2047 | 1,853,000 | 1,541,609 |
| U.S. Treasury Bond | | 2.88 | 8-15-2045 | 1,430,000 | 1,218,516 |
| U.S. Treasury Bond | | 2.88 | 11-15-2046 | 3,221,000 | 2,744,770 |
| U.S. Treasury Bond | | 2.88 | 5-15-2049 | 2,582,000 | 2,209,425 |
| U.S. Treasury Bond | | 3.00 | 5-15-2042 | 776,000 | 689,064 |
| U.S. Treasury Bond | | 3.00 | 11-15-2044 | 1,951,000 | 1,701,790 |
| U.S. Treasury Bond | | 3.00 | 5-15-2045 | 1,115,000 | 970,878 |
| U.S. Treasury Bond | | 3.00 | 11-15-2045 | 834,000 | 725,678 |
| U.S. Treasury Bond | | 3.00 | 2-15-2047 | 1,889,000 | 1,643,799 |
| U.S. Treasury Bond | | 3.00 | 5-15-2047 | 1,921,000 | 1,671,795 |
| U.S. Treasury Bond | | 3.00 | 2-15-2048 | 2,119,000 | 1,848,331 |
| U.S. Treasury Bond | | 3.00 | 8-15-2048 | 2,099,000 | 1,832,935 |
| U.S. Treasury Bond | | 3.00 | 2-15-2049 | 2,614,000 | 2,288,271 |
| U.S. Treasury Bond | | 3.13 | 11-15-2041 | 846,000 | 771,182 |
| U.S. Treasury Bond | | 3.13 | 2-15-2042 | 919,000 | 833,993 |
| U.S. Treasury Bond | | 3.13 | 8-15-2044 | 1,999,000 | 1,783,483 |
| U.S. Treasury Bond | | 3.13 | 5-15-2048 | 2,283,000 | 2,037,578 |
| U.S. Treasury Bond | | 3.38 | 5-15-2044 | 1,432,000 | 1,331,872 |
The accompanying notes are an integral part of these financial statements.
Allspring Index Asset Allocation Fund | 23
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturitydate | Principal | Value |
| U.S. Treasury securities (continued) | | | | | |
| U.S. Treasury Bond | | 3.38% | 11-15-2048 | $ 2,541,000 | $ 2,376,828 |
| U.S. Treasury Bond | | 3.50 | 2-15-2039 | 731,000 | 722,148 |
| U.S. Treasury Bond | | 3.63 | 8-15-2043 | 824,000 | 799,795 |
| U.S. Treasury Bond | | 3.63 | 2-15-2044 | 1,547,000 | 1,496,420 |
| U.S. Treasury Bond | | 3.75 | 8-15-2041 | 929,000 | 927,512 |
| U.S. Treasury Bond | | 3.75 | 11-15-2043 | 1,660,000 | 1,639,639 |
| U.S. Treasury Bond | | 3.88 | 8-15-2040 | 946,000 | 970,093 |
| U.S. Treasury Bond | | 4.25 | 5-15-2039 | 681,000 | 734,496 |
| U.S. Treasury Bond | | 4.25 | 11-15-2040 | 977,000 | 1,048,787 |
| U.S. Treasury Bond | | 4.38 | 2-15-2038 | 381,000 | 417,195 |
| U.S. Treasury Bond | | 4.38 | 11-15-2039 | 757,000 | 827,023 |
| U.S. Treasury Bond | | 4.38 | 5-15-2040 | 1,078,000 | 1,176,199 |
| U.S. Treasury Bond | | 4.38 | 5-15-2041 | 842,000 | 916,004 |
| U.S. Treasury Bond | | 4.50 | 5-15-2038 | 428,000 | 474,645 |
| U.S. Treasury Bond | | 4.50 | 8-15-2039 | 721,000 | 800,648 |
| U.S. Treasury Bond | | 4.63 | 2-15-2040 | 730,000 | 821,535 |
| U.S. Treasury Bond | | 4.75 | 2-15-2037 | 264,000 | 301,043 |
| U.S. Treasury Bond | | 4.75 | 2-15-2041 | 1,084,000 | 1,234,786 |
| U.S. Treasury Bond | | 5.00 | 5-15-2037 | 375,000 | 437,300 |
| U.S. Treasury Bond | | 5.25 | 11-15-2028 | 479,000 | 518,387 |
| U.S. Treasury Bond | | 5.25 | 2-15-2029 | 349,000 | 378,283 |
| U.S. Treasury Bond | | 5.38 | 2-15-2031 | 752,000 | 847,381 |
| U.S. Treasury Bond | | 5.50 | 8-15-2028 | 369,000 | 402,080 |
| U.S. Treasury Bond | | 6.13 | 11-15-2027 | 525,000 | 580,125 |
| U.S. Treasury Bond | | 6.13 | 8-15-2029 | 293,000 | 334,638 |
| U.S. Treasury Bond | | 6.25 | 5-15-2030 | 478,000 | 558,438 |
| U.S. Treasury Bond | | 6.38 | 8-15-2027 | 224,000 | 248,141 |
| U.S. Treasury Bond | | 6.88 | 8-15-2025 | 16,974,000 | 18,126,375 |
| U.S. Treasury Note | | 0.13 | 2-15-2024 | 3,940,000 | 3,786,402 |
| U.S. Treasury Note | | 0.25 | 3-15-2024 | 3,929,000 | 3,769,538 |
| U.S. Treasury Note | | 0.25 | 5-15-2024 | 3,937,000 | 3,754,299 |
| U.S. Treasury Note | | 0.25 | 5-31-2025 | 10,364,000 | 9,563,219 |
| U.S. Treasury Note | | 0.25 | 8-31-2025 | 3,153,000 | 2,888,320 |
| U.S. Treasury Note | | 0.25 | 10-31-2025 | 3,586,000 | 3,269,564 |
| U.S. Treasury Note | | 0.38 | 4-15-2024 | 3,919,000 | 3,751,065 |
| U.S. Treasury Note | | 0.38 | 4-30-2025 | 2,591,000 | 2,403,153 |
| U.S. Treasury Note | | 0.38 | 11-30-2025 | 3,685,000 | 3,361,411 |
| U.S. Treasury Note | | 0.38 | 1-31-2026 | 4,058,000 | 3,683,745 |
| U.S. Treasury Note | | 0.38 | 7-31-2027 | 2,771,000 | 2,407,198 |
| U.S. Treasury Note | | 0.38 | 9-30-2027 | 3,141,000 | 2,716,106 |
| U.S. Treasury Note | | 0.50 | 3-31-2025 | 2,469,000 | 2,302,825 |
| U.S. Treasury Note | | 0.50 | 2-28-2026 | 4,104,000 | 3,729,991 |
| U.S. Treasury Note | | 0.50 | 4-30-2027 | 2,015,000 | 1,774,066 |
| U.S. Treasury Note | | 0.50 | 5-31-2027 | 2,282,000 | 2,002,455 |
| U.S. Treasury Note | | 0.50 | 6-30-2027 | 2,520,000 | 2,207,264 |
| U.S. Treasury Note | | 0.50 | 8-31-2027 | 2,918,000 | 2,543,447 |
| U.S. Treasury Note | | 0.50 | 10-31-2027 | 3,418,000 | 2,965,916 |
| U.S. Treasury Note | | 0.63 | 3-31-2027 | 1,681,000 | 1,490,312 |
| U.S. Treasury Note | | 0.63 | 11-30-2027 | 7,236,000 | 6,307,474 |
| U.S. Treasury Note | | 0.63 | 12-31-2027 | 3,852,000 | 3,350,036 |
| U.S. Treasury Note | | 0.63 | 5-15-2030 | 3,675,000 | 3,008,476 |
| U.S. Treasury Note | | 0.63 | 8-15-2030 | 4,582,000 | 3,733,793 |
| U.S. Treasury Note | | 0.75 | 3-31-2026 | 4,059,000 | 3,713,509 |
| U.S. Treasury Note | | 0.75 | 4-30-2026 | 4,130,000 | 3,765,076 |
| U.S. Treasury Note | | 0.75 | 5-31-2026 | 4,136,000 | 3,762,144 |
The accompanying notes are an integral part of these financial statements.
24 | Allspring Index Asset Allocation Fund
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturitydate | Principal | Value |
| U.S. Treasury securities (continued) | | | | | |
| U.S. Treasury Note | | 0.75% | 1-31-2028 | $ 4,214,000 | $ 3,680,666 |
| U.S. Treasury Note | | 0.88 | 11-15-2030 | 2,681,000 | 2,219,365 |
| U.S. Treasury Note | | 1.13 | 2-28-2025 | 2,444,000 | 2,310,917 |
| U.S. Treasury Note | | 1.13 | 2-28-2027 | 964,000 | 874,868 |
| U.S. Treasury Note | | 1.13 | 2-29-2028 | 4,178,000 | 3,710,423 |
| U.S. Treasury Note | | 1.13 | 2-15-2031 | 7,183,000 | 6,048,591 |
| U.S. Treasury Note | | 1.25 | 8-31-2024 | 1,400,000 | 1,340,555 |
| U.S. Treasury Note | | 1.25 | 3-31-2028 | 4,152,000 | 3,703,389 |
| U.S. Treasury Note | | 1.25 | 4-30-2028 | 4,224,000 | 3,760,845 |
| U.S. Treasury Note | | 1.25 | 5-31-2028 | 4,167,000 | 3,705,212 |
| U.S. Treasury Note | | 1.25 | 8-15-2031 | 7,687,000 | 6,447,772 |
| U.S. Treasury Note | | 1.38 | 1-31-2025 | 2,372,000 | 2,257,384 |
| U.S. Treasury Note | | 1.38 | 8-31-2026 | 1,787,000 | 1,649,555 |
| U.S. Treasury Note | | 1.38 | 10-31-2028 | 24,195,000 | 21,466,447 |
| U.S. Treasury Note | | 1.38 | 11-15-2031 | 23,180,000 | 19,565,369 |
| U.S. Treasury Note | | 1.50 | 9-30-2024 | 2,442,000 | 2,343,080 |
| U.S. Treasury Note | | 1.50 | 10-31-2024 | 2,391,000 | 2,290,503 |
| U.S. Treasury Note | | 1.50 | 11-30-2024 | 10,419,000 | 9,964,797 |
| U.S. Treasury Note | | 1.50 | 8-15-2026 | 3,430,000 | 3,183,603 |
| U.S. Treasury Note | | 1.50 | 1-31-2027 | 1,873,000 | 1,724,331 |
| U.S. Treasury Note | | 1.50 | 2-15-2030 | 4,305,000 | 3,773,938 |
| U.S. Treasury Note | | 1.63 | 2-15-2026 | 3,342,000 | 3,143,047 |
| U.S. Treasury Note | | 1.63 | 5-15-2026 | 3,385,000 | 3,169,338 |
| U.S. Treasury Note | | 1.63 | 10-31-2026 | 1,800,000 | 1,672,102 |
| U.S. Treasury Note | | 1.63 | 8-15-2029 | 2,854,000 | 2,545,634 |
| U.S. Treasury Note | | 1.63 | 5-15-2031 | 7,512,000 | 6,528,691 |
| U.S. Treasury Note | | 1.75 | 6-30-2024 | 2,424,000 | 2,345,409 |
| U.S. Treasury Note | | 1.75 | 7-31-2024 | 2,406,000 | 2,323,670 |
| U.S. Treasury Note | | 1.75 | 11-15-2029 | 2,229,000 | 2,001,747 |
| U.S. Treasury Note | | 1.88 | 8-31-2024 | 1,345,000 | 1,299,344 |
| U.S. Treasury Note | | 1.88 | 7-31-2026 | 1,828,000 | 1,719,748 |
| U.S. Treasury Note | | 1.88 | 11-15-2051 | 3,485,000 | 2,373,067 |
| U.S. Treasury Note | | 2.00 | 4-30-2024 | 7,435,000 | 7,230,828 |
| U.S. Treasury Note | | 2.00 | 5-31-2024 | 7,089,000 | 6,890,176 |
| U.S. Treasury Note | | 2.00 | 6-30-2024 | 1,939,000 | 1,881,436 |
| U.S. Treasury Note | | 2.00 | 2-15-2025 | 3,537,000 | 3,400,494 |
| U.S. Treasury Note | | 2.00 | 8-15-2025 | 3,491,000 | 3,339,769 |
| U.S. Treasury Note | | 2.00 | 11-15-2026 | 3,370,000 | 3,169,380 |
| U.S. Treasury Note | | 2.13 | 2-29-2024 | 1,298,000 | 1,268,187 |
| U.S. Treasury Note | | 2.13 | 3-31-2024 | 1,961,000 | 1,913,813 |
| U.S. Treasury Note | | 2.13 | 7-31-2024 | 1,927,000 | 1,870,394 |
| U.S. Treasury Note | | 2.13 | 9-30-2024 | 1,844,000 | 1,785,871 |
| U.S. Treasury Note | | 2.13 | 11-30-2024 | 1,852,000 | 1,789,857 |
| U.S. Treasury Note | | 2.13 | 5-15-2025 | 3,005,000 | 2,888,791 |
| U.S. Treasury Note | | 2.13 | 5-31-2026 | 1,793,000 | 1,704,050 |
| U.S. Treasury Note | | 2.25 | 4-30-2024 | 2,418,000 | 2,358,306 |
| U.S. Treasury Note | | 2.25 | 10-31-2024 | 1,882,000 | 1,823,776 |
| U.S. Treasury Note | | 2.25 | 11-15-2024 | 3,535,000 | 3,424,117 |
| U.S. Treasury Note | | 2.25 | 12-31-2024 | 1,911,000 | 1,848,445 |
| U.S. Treasury Note | | 2.25 | 11-15-2025 | 3,473,000 | 3,332,316 |
| U.S. Treasury Note | | 2.25 | 2-15-2027 | 3,350,000 | 3,173,732 |
| U.S. Treasury Note | | 2.25 | 8-15-2027 | 3,338,000 | 3,148,803 |
| U.S. Treasury Note | | 2.25 | 11-15-2027 | 3,248,000 | 3,055,150 |
| U.S. Treasury Note | | 2.38 | 2-29-2024 | 1,426,000 | 1,396,199 |
| U.S. Treasury Note | | 2.38 | 8-15-2024 | 3,101,000 | 3,018,387 |
The accompanying notes are an integral part of these financial statements.
Allspring Index Asset Allocation Fund | 25
Portfolio of investments—March 31, 2023 (unaudited)
| | | Interest
rate | Maturitydate | Principal | Value |
| U.S. Treasury securities (continued) | | | | | |
| U.S. Treasury Note | | 2.38% | 4-30-2026 | $ 1,812,000 | $ 1,737,963 |
| U.S. Treasury Note | | 2.38 | 5-15-2027 | 3,375,000 | 3,205,591 |
| U.S. Treasury Note | | 2.38 | 5-15-2029 | 3,295,000 | 3,074,261 |
| U.S. Treasury Note | | 2.50 | 5-15-2024 | 3,424,000 | 3,348,565 |
| U.S. Treasury Note | | 2.50 | 1-31-2025 | 1,936,000 | 1,879,886 |
| U.S. Treasury Note | | 2.50 | 2-28-2026 | 1,888,000 | 1,818,823 |
| U.S. Treasury Note | | 2.63 | 3-31-2025 | 1,884,000 | 1,833,147 |
| U.S. Treasury Note | | 2.63 | 12-31-2025 | 1,914,000 | 1,852,468 |
| U.S. Treasury Note | | 2.63 | 2-15-2029 | 3,512,000 | 3,330,089 |
| U.S. Treasury Note | | 2.75 | 2-15-2024 | 2,325,000 | 2,286,038 |
| U.S. Treasury Note | | 2.75 | 2-28-2025 | 1,955,000 | 1,906,736 |
| U.S. Treasury Note | | 2.75 | 6-30-2025 | 1,959,000 | 1,906,505 |
| U.S. Treasury Note | | 2.75 | 8-31-2025 | 2,020,000 | 1,964,371 |
| U.S. Treasury Note | | 2.75 | 2-15-2028 | 4,229,000 | 4,062,153 |
| U.S. Treasury Note | | 2.75 | 8-15-2032 | 2,430,000 | 2,286,858 |
| U.S. Treasury Note | | 2.88 | 4-30-2025 | 1,884,000 | 1,839,917 |
| U.S. Treasury Note | | 2.88 | 5-31-2025 | 1,939,000 | 1,892,873 |
| U.S. Treasury Note | | 2.88 | 7-31-2025 | 1,949,000 | 1,903,016 |
| U.S. Treasury Note | | 2.88 | 11-30-2025 | 1,880,000 | 1,832,413 |
| U.S. Treasury Note | | 2.88 | 5-15-2028 | 4,397,000 | 4,241,387 |
| U.S. Treasury Note | | 2.88 | 8-15-2028 | 4,422,000 | 4,258,766 |
| U.S. Treasury Note | | 3.00 | 9-30-2025 | 1,994,000 | 1,950,148 |
| U.S. Treasury Note | | 3.00 | 10-31-2025 | 1,814,000 | 1,774,106 |
| U.S. Treasury Note | | 3.13 | 11-15-2028 | 3,621,000 | 3,529,909 |
| U.S. Treasury Note | | 6.00 | 2-15-2026 | 445,000 | 471,352 |
| U.S. Treasury Note | | 6.50 | 11-15-2026 | 296,000 | 323,368 |
| U.S. Treasury Note | | 6.63 | 2-15-2027 | 215,000 | 237,365 |
| U.S. Treasury Note | | 6.75 | 8-15-2026 | 221,000 | 241,443 |
| U.S. Treasury Note | | 7.50 | 11-15-2024 | 240,000 | 252,413 |
| Total U.S. Treasury securities (Cost $515,727,868) | | | | | 468,294,526 |
| | | Yield | | Shares | |
| Short-term investments: 3.92% | | | | | |
| Investment companies: 3.92% | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 4.69 | | 52,226,545 | 52,226,545 |
| Total Short-term investments (Cost $52,226,545) | | | | | 52,226,545 |
| Total investments in securities (Cost $803,428,487) | 99.72% | | | | 1,327,579,642 |
| Other assets and liabilities, net | 0.28 | | | | 3,704,394 |
| Total net assets | 100.00% | | | | $1,331,284,036 |
| † | Non-income-earning security |
| ± | Variable rate investment. The rate shown is the rate in effect at period end. |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
| Abbreviations: |
| FNMA | Federal National Mortgage Association |
| LIBOR | London Interbank Offered Rate |
| REIT | Real estate investment trust |
The accompanying notes are an integral part of these financial statements.
26 | Allspring Index Asset Allocation Fund
Portfolio of investments—March 31, 2023 (unaudited)
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | $28,617,803 | $150,763,930 | $(127,155,188) | $ 0 | | $0 | | $ 52,226,545 | 52,226,545 | $ 698,003 |
Investments in affiliates no
longer held at end of period | | | | | | | | | | |
| Securities Lending Cash Investment LLC | 149,819 | 2,679,313 | (2,829,070) | (62) | | 0 | | 0 | 0 | 3,948 # |
| | | | | $ (62) | | $0 | | $52,226,545 | | $701,951 |
| # | Amount shown represents income before fees and rebates. |
Futures contracts
| Description | Number of
contracts | Expiration
date | Notional
cost | Notional
value | Unrealized
gains | | Unrealized
losses |
| Long | | | | | | | |
| E-Mini S&P 500 Index | 48 | 6-16-2023 | $ 9,362,392 | $ 9,930,600 | $ 568,208 | | $ 0 |
| 10-Year U.S. Treasury Notes | 487 | 6-21-2023 | 55,727,321 | 55,966,953 | 239,632 | | 0 |
| U.S. Long Term Bonds | 29 | 6-21-2023 | 3,724,135 | 3,803,531 | 79,396 | | 0 |
| U.S. Ultra Treasury Bonds | 47 | 6-21-2023 | 6,535,665 | 6,632,875 | 97,210 | | 0 |
| 2-Year U.S. Treasury Notes | 38 | 6-30-2023 | 7,834,966 | 7,845,219 | 10,253 | | 0 |
| 5-Year U.S. Treasury Notes | 116 | 6-30-2023 | 12,588,956 | 12,702,906 | 113,950 | | 0 |
| Short | | | | | | | |
| E-Mini S&P 500 Index | (79) | 6-16-2023 | (15,886,081) | (16,344,112) | 0 | | (458,031) |
| | | | | | $1,108,649 | | $(458,031) |
The accompanying notes are an integral part of these financial statements.
Allspring Index Asset Allocation Fund | 27
Statement of assets and liabilities—March 31, 2023 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $751,201,942)
| $ 1,275,353,097 |
Investments in affiliated securities, at value (cost $52,226,545)
| 52,226,545 |
Cash at broker segregated for futures contracts
| 2,680,460 |
Receivable for dividends and interest
| 3,247,313 |
Receivable for daily variation margin on open futures contracts
| 437,722 |
Receivable for Fund shares sold
| 234,598 |
Prepaid expenses and other assets
| 182,139 |
Total assets
| 1,334,361,874 |
| Liabilities | |
Payable for Fund shares redeemed
| 1,645,365 |
Management fee payable
| 636,719 |
Shareholder servicing fees payable
| 263,017 |
Administration fees payable
| 220,892 |
Payable for daily variation margin on open futures contracts
| 155,925 |
Distribution fee payable
| 71,487 |
Trustees’ fees and expenses payable
| 1,299 |
Accrued expenses and other liabilities
| 83,134 |
Total liabilities
| 3,077,838 |
Total net assets
| $1,331,284,036 |
| Net assets consist of | |
Paid-in capital
| $ 812,100,101 |
Total distributable earnings
| 519,183,935 |
Total net assets
| $1,331,284,036 |
| Computation of net asset value and offering price per share | |
Net assets – Class A
| $ 847,805,573 |
Shares outstanding – Class A1
| 23,101,084 |
Net asset value per share – Class A
| $36.70 |
Maximum offering price per share – Class A2
| $38.94 |
Net assets – Class C
| $ 106,114,180 |
Shares outstanding – Class C1
| 4,773,830 |
Net asset value per share – Class C
| $22.23 |
Net assets – Administrator Class
| $ 236,571,950 |
Shares outstanding – Administrator Class1
| 6,446,160 |
Net asset value per share – Administrator Class
| $36.70 |
Net assets – Institutional Class
| $ 140,792,333 |
Shares outstanding – Institutional Class1
| 3,841,636 |
Net asset value per share – Institutional Class
| $36.65 |
| 1 | The Fund has an unlimited number of authorized shares. |
| 2 | Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial statements.
28 | Allspring Index Asset Allocation Fund
Statement of operations—six months ended March 31, 2023 (unaudited)
| | |
| Investment income | |
Dividends (net of foreign withholdings taxes of $1,771)
| $ 7,216,237 |
Interest
| 5,494,800 |
Income from affiliated securities
| 698,140 |
Total investment income
| 13,409,177 |
| Expenses | |
Management fee
| 4,047,881 |
| Administration fees | |
Class A
| 872,178 |
Class C
| 116,132 |
Administrator Class
| 160,828 |
Institutional Class
| 95,740 |
| Shareholder servicing fees | |
Class A
| 1,038,307 |
Class C
| 138,047 |
Administrator Class
| 306,211 |
| Distribution fee | |
Class C
| 414,115 |
Custody and accounting fees
| 69,731 |
Professional fees
| 28,043 |
Registration fees
| 125,063 |
Shareholder report expenses
| 75,182 |
Trustees’ fees and expenses
| 11,087 |
Other fees and expenses
| 101,158 |
Total expenses
| 7,599,703 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level
| (324,795) |
Administrator Class
| (111,648) |
Net expenses
| 7,163,260 |
Net investment income
| 6,245,917 |
| Realized and unrealized gains (losses) on investments | |
| Net realized gains (losses) on | |
Unaffiliated securities
| 48,533,607 |
Affiliated securities
| (62) |
Futures contracts
| (2,658,919) |
Net realized gains on investments
| 45,874,626 |
| Net change in unrealized gains (losses) on | |
Unaffiliated securities
| 74,800,082 |
Futures contracts
| (326,685) |
Net change in unrealized gains (losses) on investments
| 74,473,397 |
Net realized and unrealized gains (losses) on investments
| 120,348,023 |
Net increase in net assets resulting from operations
| $126,593,940 |
The accompanying notes are an integral part of these financial statements.
Allspring Index Asset Allocation Fund | 29
Statement of changes in net assets
| | | | | |
| | Six months ended
March 31, 2023
(unaudited) | Year ended
September 30, 2022 |
| Operations | | | | |
Net investment income
| | $ 6,245,917 | | $ 8,406,497 |
Net realized gains on investments
| | 45,874,626 | | 31,927,212 |
Net change in unrealized gains (losses) on investments
| | 74,473,397 | | (278,621,617) |
Net increase (decrease) in net assets resulting from operations
| | 126,593,940 | | (238,287,908) |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class A
| | (37,593,161) | | (63,362,703) |
Class C
| | (4,535,716) | | (8,330,567) |
Administrator Class
| | (11,341,676) | | (23,576,011) |
Institutional Class
| | (7,170,489) | | (12,107,682) |
Total distributions to shareholders
| | (60,641,042) | | (107,376,963) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class A
| 455,498 | 16,394,420 | 821,497 | 33,696,572 |
Class C
| 179,315 | 3,904,897 | 485,683 | 12,236,383 |
Administrator Class
| 355,371 | 12,798,780 | 1,568,634 | 66,040,429 |
Institutional Class
| 345,485 | 12,468,710 | 1,646,285 | 68,227,108 |
| | | 45,566,807 | | 180,200,492 |
| Reinvestment of distributions | | | | |
Class A
| 1,012,961 | 36,181,484 | 1,411,239 | 60,948,990 |
Class C
| 204,027 | 4,402,900 | 303,625 | 8,012,673 |
Administrator Class
| 316,455 | 11,305,650 | 544,767 | 23,512,105 |
Institutional Class
| 170,583 | 6,088,403 | 220,986 | 9,487,456 |
| | | 57,978,437 | | 101,961,224 |
| Payment for shares redeemed | | | | |
Class A
| (1,322,727) | (47,773,990) | (2,443,961) | (99,973,810) |
Class C
| (857,527) | (18,674,616) | (1,240,343) | (30,566,657) |
Administrator Class
| (1,654,955) | (60,172,720) | (2,871,217) | (116,371,204) |
Institutional Class
| (997,979) | (35,669,100) | (1,324,804) | (53,709,439) |
| | | (162,290,426) | | (300,621,110) |
Net decrease in net assets resulting from capital share transactions
| | (58,745,182) | | (18,459,394) |
Total increase (decrease) in net assets
| | 7,207,716 | | (364,124,265) |
| Net assets | | | | |
Beginning of period
| | 1,324,076,320 | | 1,688,200,585 |
End of period
| | $1,331,284,036 | | $1,324,076,320 |
The accompanying notes are an integral part of these financial statements.
30 | Allspring Index Asset Allocation Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class A | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $34.96 | $43.74 | $38.89 | $35.13 | $34.63 | $31.99 |
Net investment income
| 0.17 | 0.21 | 0.19 | 0.30 | 0.33 | 0.27 |
Net realized and unrealized gains (losses) on investments
| 3.22 | (6.23) | 5.97 | 4.22 | 1.46 | 2.83 |
Total from investment operations
| 3.39 | (6.02) | 6.16 | 4.52 | 1.79 | 3.10 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.17) | (0.30) | (0.12) | (0.30) | (0.33) | (0.27) |
Net realized gains
| (1.48) | (2.46) | (1.19) | (0.46) | (0.96) | (0.19) |
Total distributions to shareholders
| (1.65) | (2.76) | (1.31) | (0.76) | (1.29) | (0.46) |
Net asset value, end of period
| $36.70 | $34.96 | $43.74 | $38.89 | $35.13 | $34.63 |
Total return1
| 9.87% | (14.91)% | 16.18% | 13.08% | 5.54% | 9.76% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.13% | 1.10% | 1.09% | 1.10% | 1.11% | 1.08% |
Net expenses
| 1.08% | 1.08% | 1.08% | 1.08% | 1.08% | 1.07% |
Net investment income
| 0.93% | 0.52% | 0.46% | 0.83% | 0.99% | 0.80% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 3% | 13% | 11% | 19% | 14% | 9% |
Net assets, end of period (000s omitted)
| $847,806 | $802,444 | $1,013,263 | $907,134 | $834,289 | $830,487 |
| 1 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Index Asset Allocation Fund | 31
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Class C | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $21.15 | $26.46 | $23.64 | $21.36 | $21.07 | $19.45 |
Net investment income (loss)
| 0.00 1 | (0.07) | (0.08) | 0.01 | 0.05 | 0.01 |
Net realized and unrealized gains (losses) on investments
| 1.98 | (3.75) | 3.63 | 2.57 | 0.88 | 1.73 |
Total from investment operations
| 1.98 | (3.82) | 3.55 | 2.58 | 0.93 | 1.74 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | 0.00 | (0.01) | (0.02) | (0.06) | (0.00) 1 |
Net realized gains
| (0.90) | (1.49) | (0.72) | (0.28) | (0.58) | (0.12) |
Total distributions to shareholders
| (0.90) | (1.49) | (0.73) | (0.30) | (0.64) | (0.12) |
Net asset value, end of period
| $22.23 | $21.15 | $26.46 | $23.64 | $21.36 | $21.07 |
Total return2
| 9.48% | (15.56)% | 15.31% | 12.22% | 4.75% | 8.97% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.88% | 1.85% | 1.84% | 1.85% | 1.86% | 1.83% |
Net expenses
| 1.83% | 1.83% | 1.83% | 1.83% | 1.83% | 1.82% |
Net investment income (loss)
| 0.18% | (0.24)% | (0.29)% | 0.08% | 0.24% | 0.05% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 3% | 13% | 11% | 19% | 14% | 9% |
Net assets, end of period (000s omitted)
| $106,114 | $110,992 | $150,795 | $144,828 | $144,264 | $153,322 |
| 1 | Amount is less than $0.005. |
| 2 | Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
32 | Allspring Index Asset Allocation Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Administrator Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $34.96 | $43.80 | $38.89 | $35.14 | $34.64 | $31.99 |
Net investment income
| 0.20 | 0.28 | 0.26 | 0.37 | 0.39 | 0.32 |
Net realized and unrealized gains (losses) on investments
| 3.24 | (6.22) | 5.98 | 4.20 | 1.46 | 2.84 |
Total from investment operations
| 3.44 | (5.94) | 6.24 | 4.57 | 1.85 | 3.16 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.21) | (0.43) | (0.14) | (0.36) | (0.39) | (0.32) |
Net realized gains
| (1.49) | (2.47) | (1.19) | (0.46) | (0.96) | (0.19) |
Total distributions to shareholders
| (1.70) | (2.90) | (1.33) | (0.82) | (1.35) | (0.51) |
Net asset value, end of period
| $36.70 | $34.96 | $43.80 | $38.89 | $35.14 | $34.64 |
Total return1
| 9.97% | (14.77)% | 16.40% | 13.26% | 5.73% | 9.94% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.04% | 1.02% | 1.01% | 1.02% | 1.03% | 1.00% |
Net expenses
| 0.90% | 0.90% | 0.90% | 0.90% | 0.90% | 0.90% |
Net investment income
| 1.10% | 0.69% | 0.63% | 1.01% | 1.17% | 0.97% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 3% | 13% | 11% | 19% | 14% | 9% |
Net assets, end of period (000s omitted)
| $236,572 | $259,704 | $358,573 | $281,988 | $229,390 | $216,611 |
| 1 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Index Asset Allocation Fund | 33
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended September 30 |
| Institutional Class | Six months ended
March 31, 2023
(unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 |
Net asset value, beginning of period
| $34.91 | $43.79 | $38.84 | $35.09 | $34.59 | $31.96 |
Net investment income
| 0.22 | 0.33 | 0.33 | 0.42 | 0.44 | 0.39 |
Net realized and unrealized gains (losses) on investments
| 3.23 | (6.20) | 5.97 | 4.21 | 1.46 | 2.81 |
Total from investment operations
| 3.45 | (5.87) | 6.30 | 4.63 | 1.90 | 3.20 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.23) | (0.54) | (0.16) | (0.42) | (0.44) | (0.38) |
Net realized gains
| (1.48) | (2.47) | (1.19) | (0.46) | (0.96) | (0.19) |
Total distributions to shareholders
| (1.71) | (3.01) | (1.35) | (0.88) | (1.40) | (0.57) |
Net asset value, end of period
| $36.65 | $34.91 | $43.79 | $38.84 | $35.09 | $34.59 |
Total return1
| 10.07% | (14.64)% | 16.57% | 13.44% | 5.89% | 10.11% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.80% | 0.77% | 0.76% | 0.77% | 0.78% | 0.75% |
Net expenses
| 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | 0.74% |
Net investment income
| 1.26% | 0.85% | 0.79% | 1.16% | 1.32% | 1.13% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 3% | 13% | 11% | 19% | 14% | 9% |
Net assets, end of period (000s omitted)
| $140,792 | $150,936 | $165,569 | $139,896 | $123,504 | $110,566 |
| 1 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
34 | Allspring Index Asset Allocation Fund
Notes to financial statements (unaudited)
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 Index Asset Allocation Fund (the "Fund") which is a diversified series of the Trust.
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
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities and futures contracts that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
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 in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC ("Allspring Funds Management"), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee 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. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio of investments.
Securities lending
During the period, the Fund participated in a program to lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities were on loan, the Fund received interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions was invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Effective at the close of business on March 29, 2023, the Fund is no longer participating in the securities lending program and the Securities Lending Fund was liquidated. Securities Lending Fund was managed by Allspring Funds Management and was subadvised by Allspring Global Investments, LLC ("Allspring Investments"), an affiliate of Allspring Funds Management and wholly owned subsidiary of Allspring Global Investments Holdings, LLC. Allspring Funds Management received an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increased. All of the fees received by Allspring Funds Management were paid to Allspring Investments for its services as subadviser.
Investments in Securities Lending Fund were valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending
Allspring Index Asset Allocation Fund | 35
Notes to financial statements (unaudited)
agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
Futures contracts
Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at a specified price on a specified date. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in interest rates and security values and is subject to interest rate risk and equity price risk. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market. Futures contracts are generally entered into on a regulated futures exchange and cleared through a clearinghouse associated with the exchange. With futures contracts, there is minimal counterparty risk to the Fund since futures contracts are exchange-traded and the exchange’s clearinghouse, as the counterparty to all exchange-traded futures, guarantees the futures contracts against default.
Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) with the broker in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are paid to or from the broker each day equal to the daily changes in the contract value. Such payments are recorded as unrealized gains or losses and, if any, shown as variation margin receivable (payable) in the Statement of Assets and Liabilities. Should the Fund fail to make requested variation margin payments, the broker can gain access to the initial margin to satisfy the Fund’s payment obligations. When the contracts are closed, a realized gain or loss is recorded in the Statement of Operations.
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.
Dividend income is recognized on the ex-dividend date.
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.
Income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
Distributions to shareholders
Distributions to shareholders are recorded on the ex-dividend date and paid from net investment income quarterly and any net realized gains are 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, as applicable, for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
36 | Allspring Index Asset Allocation Fund
Notes to financial statements (unaudited)
As of March 31, 2023, the aggregate cost of all investments for federal income tax purposes was $816,884,727 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $581,434,550 |
| Gross unrealized losses | (70,089,017) |
| Net unrealized gains | $511,345,533 |
As of September 30, 2022, the Fund had current year deferred post-October capital losses consisting of $4,258,328 in short-term capital losses which was recognized in the first day of the current fiscal year.
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 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.
Allspring Index Asset Allocation Fund | 37
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of March 31, 2023:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Agency securities | $ 0 | $ 19,996 | $0 | $ 19,996 |
| Common stocks | | | | |
| Communication services | 65,456,593 | 0 | 0 | 65,456,593 |
| Consumer discretionary | 81,760,153 | 0 | 0 | 81,760,153 |
| Consumer staples | 58,385,875 | 0 | 0 | 58,385,875 |
| Energy | 37,191,122 | 0 | 0 | 37,191,122 |
| Financials | 104,165,072 | 0 | 0 | 104,165,072 |
| Health care | 114,591,827 | 0 | 0 | 114,591,827 |
| Industrials | 69,919,078 | 0 | 0 | 69,919,078 |
| Information technology | 210,474,841 | 0 | 0 | 210,474,841 |
| Materials | 21,314,916 | 0 | 0 | 21,314,916 |
| Real estate | 20,658,830 | 0 | 0 | 20,658,830 |
| Utilities | 23,117,930 | 0 | 0 | 23,117,930 |
| Non-agency mortgage-backed securities | 0 | 2,338 | 0 | 2,338 |
| U.S. Treasury securities | 468,294,526 | 0 | 0 | 468,294,526 |
| Short-term investments | | | | |
| Investment companies | 52,226,545 | 0 | 0 | 52,226,545 |
| | 1,327,557,308 | 22,334 | 0 | 1,327,579,642 |
| Futures contracts | 1,108,649 | 0 | 0 | 1,108,649 |
| Total assets | $1,328,665,957 | $22,334 | $0 | $1,328,688,291 |
| Liabilities | | | | |
| Futures contracts | $ 458,031 | $ 0 | $0 | $ 458,031 |
| Total liabilities | $ 458,031 | $ 0 | $0 | $ 458,031 |
Futures contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the table following the Portfolio of Investments. For futures contracts, the current day’s variation margin is reported on the Statement of Assets and Liabilities. All other assets and liabilities are reported at their market value at measurement date.
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended March 31, 2023, 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:
38 | Allspring Index Asset Allocation Fund
Notes to financial statements (unaudited)
| Average daily net assets | Management fee |
| First $500 million | 0.650% |
| Next $500 million | 0.600 |
| Next $2 billion | 0.550 |
| Next $2 billion | 0.525 |
| Next $5 billion | 0.490 |
| Over $10 billion | 0.480 |
For the six months ended March 31, 2023, the management fee was equivalent to an annual rate of 0.61% 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 Investments is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.15% and declining to 0.10% 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 | 0.21% |
| Class C | 0.21 |
| Administrator Class | 0.13 |
| Institutional Class | 0.13 |
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 January 31, 2024 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. As of March 31, 2023, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class A | 1.08% |
| Class C | 1.83 |
| Administrator Class | 0.90 |
| Institutional Class | 0.75 |
Distribution fee
The Trust has adopted a distribution plan for Class C shares 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"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
Allspring Index Asset Allocation Fund | 39
Notes to financial statements (unaudited)
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended March 31, 2023, Allspring Funds Distributor received $9,864 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended March 31, 2023.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
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. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six months ended March 31, 2023 were as follows:
| Purchases at cost | | Sales proceeds |
U.S.
government | Non-U.S.
government | | U.S.
government | Non-U.S.
government |
| $27,398,524 | $7,998,628 | | $67,212,290 | $100,054,025 |
6. DERIVATIVE TRANSACTIONS
During the six months ended March 31, 2023, the Fund entered into futures contracts to manage the duration of the portfolio and to gain market exposure to certain asset classes by implementing tactical asset allocation shifts. The Fund had an average notional amount of $326,310,501 in long futures contracts and $181,795,023 in short futures contracts during the six months ended March 31, 2023.
The fair value of derivative instruments as of March 31, 2023 by primary risk type was as follows for the Fund:
| | Asset derivatives | | Liability derivatives |
| | Statement of
Assets and Liabilities location | Fair value | | Statement of
Assets and Liabilities location | Fair value |
| Interest rate risk | Unrealized gains on futures contracts | $ 540,441* | | Unrealized losses on futures contracts | $ 0* |
| Equity risk | Unrealized gains on futures contracts | 568,208* | | Unrealized losses on futures contracts | 458,031* |
| | | $1,108,649 | | | $458,031 |
| * | Amount represents cumulative unrealized gains (losses) on futures contracts as reported in the table following the Portfolio of Investments. For futures contracts, only the current day’s variation margin as of March 31, 2023 is reported separately on the Statement of Assets and Liabilities. |
The effect of derivative instruments on the Statement of Operations for the six months ended March 31, 2023 was as follows:
| | Net realized
gains (losses) on
derivatives | Net change in unrealized
gains (losses) on
derivatives |
| Interest rate risk | $ (1,110,217) | $ 5,289,942 |
| Equity risk | (1,548,702) | (5,616,627) |
| | $(2,658,919) | $ (326,685) |
40 | Allspring Index Asset Allocation Fund
Notes to financial statements (unaudited)
7. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended March 31, 2023, there were no borrowings by the Fund under the agreement.
8. 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.
Allspring Index Asset Allocation Fund | 41
Other information (unaudited)
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.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
42 | Allspring Index Asset Allocation Fund
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 127 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 1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203. 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 Foundation (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. Member of the Advisory Board of CEF of East Central Florida. 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 | Distinguished Visiting Fellow at the Hoover Institution since 2022. 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 |
Allspring Index Asset Allocation Fund | 43
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, from 2007-2022. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. | 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 | Retired. Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer, Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
44 | Allspring Index Asset Allocation Fund
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 and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, from 2019 to 2022 and 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. |
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 from 2005 to 2010. |
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) | Chief Legal Officer, since 2022; 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.
Allspring Index Asset Allocation Fund | 45
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
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.
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.
© 2023 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-04042023-vs9pfjxs 05-23
SAR0458 03-23
Not applicable.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT |
Not applicable.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Not applicable.
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS |
Not applicable.
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 MANAGEMEENT 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.
(a)(1) Not applicable.
(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: | | May 25, 2023 |
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.
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| Allspring Funds Trust |
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| By: | | /s/ Andrew Owen |
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| | Andrew Owen |
| | President |
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| Date: | | May 25, 2023 |
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| By: | | /s/ Jeremy DePalma |
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| | Jeremy DePalma |
| | Treasurer |
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| Date: | | May 25, 2023 |
