UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09253
Allspring Funds Trust
(Exact name of registrant as specified in charter)
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: June 30
Registrant is making a filing for 13 of its series: Allspring Alternative Risk Premia Fund, Allspring California Limited-Term Tax-Free Fund, Allspring California Tax-Free Fund, Allspring High Yield Municipal Bond Fund, Allspring Intermediate Tax/AMT-Free Fund, Allspring Minnesota Tax-Free Fund, Allspring Municipal Bond Fund, Allspring Municipal Sustainability Fund, Allspring Pennsylvania Tax-Free Fund, Allspring Short-Term Municipal Bond Fund, Allspring Strategic Municipal Bond Fund, Allspring Ultra Short-Term Municipal Income Fund, and Allspring Wisconsin Tax-Free Fund
Date of reporting period: June 30, 2023
ITEM 1. REPORT TO STOCKHOLDERS
2
Contents
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The views expressed and any forward-looking statements are as of June 30, 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 Alternative Risk Premia Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Alternative Risk Premia Fund for the 12-month period that ended June 30, 2023. Globally, stocks and bonds experienced heightened volatility through the period. The market was focused on persistently high inflation and the impact of ongoing aggressive central bank rate hikes. Compounding these concerns were the global reverberations of the Russia-Ukraine war. Riskier assets rallied in 2023, with anticipation of an end to the tight monetary policy despite concerns of a possible impending recession. After suffering deep and broad losses through 2022, bonds now benefit from a base of higher yields that can help generate higher income. However, ongoing rate hikes continued to be a headwind during recent months.
For the 12-month period, stocks generally outperformed bonds—both domestic U.S. and global. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 19.59%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 12.72%, while the MSCI EM Index (Net) (USD)3 had more muted performance, with a gain of 1.75%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -0.94%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 fell 1.83%, the Bloomberg Municipal Bond Index6 gained 3.19%, and the ICE BofA U.S. High Yield Index7 returned 8.97%.
Despite high inflation and central bank rate hikes, markets rallied.
Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong: July nonfarm payrolls grew by more than 500,000 and U.S. unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices—major contributors to recent overall inflation—fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with mortgage rates at a 13-year high. The Federal Reserve (Fed) raised the federal funds rate 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to further rate hikes.
August was a broadly challenging month. High inflation persisted, cresting 9% in the eurozone on an annual basis and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June peak. One positive was the resilient U.S. jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act. Its primary stated goals include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“ Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong. ”
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 the 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 Alternative Risk Premia Fund
Letter to shareholders (unaudited)
In September, all asset classes suffered further major losses. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar weighed on results for investors holding non-U.S.-dollar assets. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The Bank of England (BoE) then stepped in and bought long-dated government bonds.
Equities had a reprieve in October. 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 increasing 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.
Financial markets cooled in December, with U.S. equities declining overall in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever, with generally flat 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 wound 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 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.
Markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks would 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 was not falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the BoE and the European Central Bank (ECB) both raised rates by 0.50%.
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 banking industry turmoil created an additional challenge for central banks in balancing inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. 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 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. ”
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.
Allspring Alternative Risk Premia Fund | 3
Letter to shareholders (unaudited)
Economic data released in April pointed to global resilience, as Purchasing Managers Indexes1 in the U.S., U.K., and eurozone beat expectations and China reported first-quarter annualized economic growth of 4.5%. Despite banking industry stress, developed market stocks had monthly gains. The U.S. labor market remained strong, with a 3.5% jobless rate and monthly payroll gains above 200,000. However, uncertainty and inflationary concerns weighed on investors in the U.S. and abroad.
May was marked by a divergence between expanding activity in services and an overall contraction in manufacturing activity in the U.S., U.K., and eurozone. Core inflation remained elevated in the U.S. and Europe, despite the ongoing efforts of the Fed and ECB, which included rate hikes of 0.25% by both in May. Stubborn inflation and the resilient U.S. labor market led to expectations of further interest rate hikes, overall monthly declines across bond indexes, and mixed results for stocks in May. Investor worries over a U.S. debt ceiling impasse were modest, and market confidence was buoyed by a deal in late May to avert a potential U.S. debt default.
June featured the Fed’s first pause on interest rate hikes since March 2022, when it began its aggressive campaign to rein in inflation. However, core CPI, excluding food and energy prices, while continuing to decline, remained stubbornly high in June, at 4.8%, well above the Fed’s 2.0% target rate. With the U.S. unemployment rate still at 3.6%, near a historical low, and U.S. payrolls growing in June for the 30th consecutive month, expectations of more Fed rate hikes were reinforced. However, U.S. and global stocks had strong returns in June.
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
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.
1
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.
4 | Allspring Alternative Risk Premia Fund
Letter to shareholders (unaudited)
Notice to Shareholders |
Beginning in July 2024, the Fund will be required by the Securities and Exchange Commission to send shareholders a paper copy of a new tailored shareholder report in place of the full shareholder report that you are now receiving. The tailored shareholder report will contain concise information about the Fund, including certain expense and performance information and fund statistics. If you wish to receive this new tailored shareholder report electronically, please follow the instructions on the back cover of this report. |
Other information that is currently included in the shareholder report, such as the Fund’s financial statements, will be available online and upon request, free of charge, in paper or electronic format. |
Allspring Alternative Risk Premia Fund | 5
Performance highlights (unaudited)
Performance highlights
Investment objective | The Fund seeks long-term capital appreciation. |
Manager | Allspring Funds Management, LLC |
Subadvisers | Allspring Global Investments, LLC |
Allspring Global Investments (UK) Limited | |
Portfolio managers | Petros N. Bocray, CFA, FRM, Eddie Cheng, CFA, Monisha Jayakumar |
Average annual total returns (%) as of June 30, 2023 | |||||
Expense ratios1 (%) | |||||
Inception date | 1 year | Since inception | Gross | Net2 | |
Class R6 (WRPRX) | 1-29-2019 | 4.44 | -0.83 | 1.18 | 0.65 |
Institutional Class (WRPIX) | 1-29-2019 | 4.43 | -0.93 | 1.28 | 0.75 |
ICE BofA 3-Month U.S. Treasury Bill Index3 | – | 3.62 | 1.48 * | – | – |
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 sold, may be worth more or less than their original cost. 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.
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, which include the impact of 0.03% 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 October 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.62% for Class R6 and 0.72% 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 ICE BofA 3-Month U.S. Treasury Bill Index is an unmanaged index that is comprised of a single U.S. Treasury issue with approximately three months to final maturity, purchased at the beginning of each month and held for one full month. You cannot invest directly in an index. Copyright 2023. ICE Data Indices, LLC. All rights reserved. |
The investment techniques employed by the Fund create leverage. As a result, the sum of the Fund’s investment exposures will typically exceed the amount of the Fund’s net assets. These exposures may vary over time. We expect gross notional exposure of the Fund to be in a range of 400% to 1200% of the net asset value of the Fund under normal market conditions. Leverage may be significantly different (higher or lower) as deemed necessary by the investment manager. We expect net notional exposure of the Fund to be in a range of -200% to 200% of the net asset value of the Fund under normal market conditions.
Alternative risk premia investment risk is the Fund’s ability to achieve its investment objective depending largely upon the portfolio managers’ successful evaluation of the risks, potential returns, and correlation properties with respect to the various risk premia in which the Fund invests. 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 leverage results in certain risks, including, among others, the likelihood of greater volatility of net asset value. Short selling is generally considered speculative, has the potential for unlimited loss, and may involve leverage. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. 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 subsidiary risk and smaller-company securities 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 Alternative Risk Premia Fund
Performance highlights (unaudited)
Growth of $1,000,000 investment as of June 30, 20231 |
1 | The chart compares the performance of Institutional Class shares since inception with the ICE BofA 3-Month U.S. Treasury Bill Index. The chart assumes a hypothetical investment of $1,000,000 in Institutional Class shares and reflects all operating expenses. |
Allspring Alternative Risk Premia Fund | 7
Performance highlights (unaudited)
MANAGER’S DISCUSSION
Fund highlights
•The Fund outperformed its benchmark, the ICE BofA 3-Month U.S. Treasury Bill Index, for the 12-month period that ended June 30, 2023.
•The top contributors were our carry strategies—in particular, FX carry, which added 2.93%, and rates carry, which added 2.50%.
•The largest detractor was our rates reversion strategy, which detracted 2.53%.
•The Fund uses derivatives, including but not limited to equity futures, bond futures, commodity futures, and currency forwards, to achieve its desired exposure in different asset classes (which in turn helps the Fund arrive at its desired leverage, risk, and return targets). These derivatives are the most commonly traded instruments on main exchanges and are highly liquid.
Market attention shifted from high inflation to recession fear.
What the market took away in 2022, it mostly gave back in 2023. 2022 saw a sea of red for financial assets, as inflation, rate hikes and geopolitical concerns combined to produce significant negative returns for nearly all financial assets, excluding cash and commodities. While economic activity is slowing and inflation is persistently high, the impending recession fears appear to be fading, despite the brief banking turmoil led by Silicon Valley Bank in March. Perhaps it was related to fear of missing out on the artificial intelligence–driven rally. Stock investors said enough is enough and they have returned to the market. U.S. equities saw the Russell 3000® Index* advance 19%, with large caps outperforming small caps. Bonds generally continued to suffer in 2023 as central banks kept raising rates. Against this backdrop, our alternative risk premia strategy outperformed the benchmark, fulfilling its diversifying purpose to major assets.
We enhanced our trend strategy by leveraging our machine-learning research and mitigating idiosyncratic risk.
In December 2022, we deployed our enhanced version of cross-asset trend signal, following a productive research project we have concluded over the past year. The new signal aims to dynamically balance between fast and slow trends by leveraging on machine-learning techniques that identify different regimes. The purpose is to make the strategy more responsive during downturns while enjoying the market trend in quiet times.
Net asset exposure as of June 30, 20231 | ||
% of net assets | ||
Long positions | Short positions | |
Stocks | 55 | 42 |
Bond futures | 16 | 29 |
Commodity futures | 25 | 24 |
Currency forwards | 65 | 75 |
Equity index futures | 15 | 3 |
1 | Figures are subject to change and may have changed since the date specified. |
Over the course of the year, we kept monitoring the portfolio risk that is deemed to be idiosyncratic and not captured by the factors. We hedged our exposure to the Japanese bond market as we saw positioning turn one-sided with speculation that the Bank of Japan would widen its yield-curve control band—factors were not in fact driving Japanese government bonds in that environment. The story was similar for the U.K. gilt market, where we hedged exposure as we saw increased factor irrelevance and one-sided positioning as yields squeezed higher with political risks increasing.
Carry, momentum, and trend added strongly.
The past 12 months proved to be a conducive environment for carry, which invests in high-yielding assets while shorting low-yielding assets. The high inflation of 2022 created huge demand for commodities, and those high-yielding commodities exporters benefited from this ride. With market volatility cooling for most of the first half of 2023, rates carry also enjoyed the quieter market, as a carry strategy typically will do.
Cross-sectional momentum strategies as well as cross-asset trend also added to returns. The bulk of the returns for cross-sectional momentum came in currencies, while rates added on the margin. Trend includes a persistent contribution from equities, bonds, and commodities.
Macro value and multi-factor equities detracted.
Macro value and multi-factor equity strategies, on the other hand, detracted over the 12-month period. In currencies, on an absolute basis, the U.S. dollar’s strong performance led to all currencies but the Swiss franc ranking as cheap. For rates value and mean reversion, the political turmoil around the U.K. mini budget in September 2022 caused a headwind for the strategy. Despite our active risk mitigation, it still detracted at the portfolio level.
The strong and narrow rally in equities, mainly focused on a few names, led to a poor factor pay-off for value and low volatility among others. This put some pressure on multi-factor equities.
*
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.
8 | Allspring Alternative Risk Premia Fund
Performance highlights (unaudited)
Outlook
After a few continuous years of choppy performance, factors have bounced back strongly in 2021 and 2022 and continued to normalize in the first half of 2023. We believe in the long-term profitability of these risk premia as they are based on sound economic rationale, although from time to time the performance may fluctuate.
With central banks tightening at a historically aggressive pace, we consider cautions are still warranted. As economic activities are reined in and liquidity is withdrawn from the market, unforeseen idiosyncratic risks can emerge and become the dominant driver for the market, such as the episode we saw in March 2023. Importantly, not all of these risks will be captured and rewarded with defined factors, so investors must remain vigilant.
Overall, we remain confident that the strategy will deliver its long-run performance and continue to be a good diversifier to the existing strategies.
Allspring Alternative Risk Premia Fund | 9
Consolidated fund expenses (unaudited)
Consolidated fund expenses
As a shareholder of the Fund, you incur including management 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 January 1, 2023 to June 30, 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. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Beginning account value 1-1-2023 | Ending account value 6-30-2023 | Consolidated expenses paid during the period1 | Annualized net expense ratio | |
Class R6 | ||||
Actual | $1,000.00 | $1,022.28 | $3.11 | 0.62 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.72 | $3.11 | 0.62 % |
Institutional Class | ||||
Actual | $1,000.00 | $1,021.09 | $3.61 | 0.72 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.22 | $3.61 | 0.72 % |
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 181 divided by 365 (to reflect the one-half-year period). |
10 | Allspring Alternative Risk Premia Fund
Consolidated portfolio of investments—June 30, 2023
Consolidated portfolio of investments
Yield | Shares | Value | ||||
Short-term investments: 76.67% | ||||||
Investment companies: 14.88% | ||||||
Allspring Government Money Market Fund Select Class♠∞* | 5.02 % | 5,629,388 | $5,629,388 | |||
Maturity date | Principal | |||||
U.S. Treasury securities: 61.79% | ||||||
U.S. Treasury Bills☼ | 3.56 | 7-13-2023 | $ | 14,900,000 | 14,879,280 | |
U.S. Treasury Bills☼# | 4.53 | 12-28-2023 | 2,750,000 | 2,678,802 | ||
U.S. Treasury Bills☼# | 5.00 | 3-21-2024 | 3,000,000 | 2,888,262 | ||
U.S. Treasury Bills☼ | 5.12 | 11-24-2023 | 3,000,000 | 2,937,818 | ||
23,384,162 | ||||||
Total short-term investments (Cost $29,033,331) | 29,013,550 | |||||
Total investments in securities (Cost $29,033,331) | 76.67 % | 29,013,550 | ||||
Other assets and liabilities, net | 23.33 | 8,828,368 | ||||
Total net assets | 100.00 % | $37,841,918 | ||||
♠ | 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. |
* | A portion of the holding represents an investment held in Alt Risk Premia Special Investments (Cayman) Ltd., the consolidated entity. |
☼ | Zero coupon security. The rate represents the current yield to maturity. |
# | All or a portion of this security is segregated as collateral for investments in derivative instruments. |
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 | $26,833,161 | $60,080,200 | $(81,283,973 ) | $0 | $0 | $5,629,388 | 5,629,388 | $399,139 |
Forward foreign currency contracts
Currency to be received | Currency to be delivered | Counterparty | Settlement date | Unrealized gains | Unrealized losses | ||
USD | 5,865,651 | AUD | 8,582,000 | Goldman Sachs International | 7-19-2023 | $146,506 | $0 |
BRL | 6,842,000 | USD | 1,405,260 | Goldman Sachs International | 7-19-2023 | 20,071 | 0 |
USD | 5,173,907 | CAD | 6,871,000 | Goldman Sachs International | 7-19-2023 | 0 | (13,787 ) |
USD | 5,031,766 | CHF | 4,501,000 | Goldman Sachs International | 7-19-2023 | 0 | (4,078 ) |
CLP | 1,165,583,000 | USD | 1,451,138 | Goldman Sachs International | 7-19-2023 | 104 | 0 |
CZK | 5,356,000 | USD | 244,091 | Goldman Sachs International | 7-19-2023 | 1,619 | 0 |
EUR | 5,851,000 | USD | 6,361,465 | Goldman Sachs International | 7-19-2023 | 27,470 | 0 |
GBP | 3,223,000 | USD | 4,093,568 | Goldman Sachs International | 7-19-2023 | 23 | 0 |
HUF | 573,058,000 | USD | 1,658,959 | Goldman Sachs International | 7-19-2023 | 13,203 | 0 |
USD | 1,118,686 | INR | 91,871,000 | Goldman Sachs International | 7-19-2023 | 0 | (657 ) |
JPY | 407,713,000 | USD | 2,940,721 | Goldman Sachs International | 7-19-2023 | 0 | (109,245 ) |
USD | 1,037,011 | KRW | 1,315,510,000 | Goldman Sachs International | 7-19-2023 | 38,033 | 0 |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Alternative Risk Premia Fund | 11
Consolidated portfolio of investments—June 30, 2023
Forward foreign currency contracts (continued)
Currency to be received | Currency to be delivered | Counterparty | Settlement date | Unrealized gains | Unrealized losses | ||
MXN | 35,095,000 | USD | 2,037,202 | Goldman Sachs International | 7-19-2023 | $7,595 | $0 |
USD | 8,076,363 | NOK | 84,991,000 | Goldman Sachs International | 7-19-2023 | 154,269 | 0 |
USD | 1,471,982 | NZD | 2,364,000 | Goldman Sachs International | 7-19-2023 | 21,285 | 0 |
PLN | 7,261,000 | USD | 1,768,841 | Goldman Sachs International | 7-19-2023 | 15,695 | 0 |
SEK | 12,688,000 | USD | 1,191,062 | Goldman Sachs International | 7-19-2023 | 0 | (13,921 ) |
ZAR | 4,793,000 | USD | 261,423 | Goldman Sachs International | 7-19-2023 | 0 | (7,112 ) |
IDR | 3,703,715,000 | USD | 248,872 | Goldman Sachs International | 7-20-2023 | 0 | (1,867 ) |
$445,873 | $(150,667 ) | ||||||
Futures contracts
Description | Number of contracts | Expiration date | Notional cost | Notional value | Unrealized gains | Unrealized losses |
Long | ||||||
LME Copper Futures** | 6 | 7-17-2023 | $1,257,636 | $1,248,563 | $0 | $(9,073 ) |
LME Lead Futures** | 11 | 7-17-2023 | 556,796 | 577,913 | 21,117 | 0 |
CAC 40 Index | 7 | 7-21-2023 | 555,746 | 566,044 | 10,298 | 0 |
NY Harbor ULSD Futures** | 2 | 7-31-2023 | 208,713 | 205,598 | 0 | (3,115 ) |
Reformulated Gasoline Blendstock for Oxygen Blending Futures** | 6 | 7-31-2023 | 624,783 | 641,315 | 16,532 | 0 |
Lean Hogs Futures** | 33 | 8-14-2023 | 1,200,078 | 1,222,320 | 22,242 | 0 |
Live Cattle Futures** | 5 | 8-31-2023 | 324,090 | 354,350 | 30,260 | 0 |
TOPIX Index | 4 | 9-7-2023 | 612,519 | 634,256 | 21,737 | 0 |
S&P/TSX 60 Index | 4 | 9-14-2023 | 725,153 | 735,897 | 10,744 | 0 |
DAX Index | 1 | 9-15-2023 | 443,685 | 443,900 | 215 | 0 |
E-Mini NASDAQ 100 Index | 1 | 9-15-2023 | 294,750 | 306,740 | 11,990 | 0 |
E-Mini S&P 500 Index | 3 | 9-15-2023 | 652,380 | 673,238 | 20,858 | 0 |
Euro STOXX 50 Index | 12 | 9-15-2023 | 569,173 | 579,689 | 10,516 | 0 |
FTSE 100 Index | 7 | 9-15-2023 | 674,277 | 670,439 | 0 | (3,838 ) |
S&P ASX Share Price Index 200 | 6 | 9-21-2023 | 706,565 | 715,545 | 8,980 | 0 |
Long Gilt Futures | 5 | 9-27-2023 | 618,373 | 605,155 | 0 | (13,218 ) |
Silver Futures** | 5 | 9-27-2023 | 606,467 | 575,500 | 0 | (30,967 ) |
Number 11 World Sugar Futures** | 2 | 9-29-2023 | 56,635 | 51,050 | 0 | (5,585 ) |
Soybean Futures** | 23 | 11-14-2023 | 1,531,140 | 1,544,738 | 13,598 | 0 |
Number 2 Cotton Futures** | 6 | 12-6-2023 | 239,463 | 241,110 | 1,647 | 0 |
Corn Futures** | 63 | 12-14-2023 | 1,667,945 | 1,558,462 | 0 | (109,483 ) |
Soybean Meal Futures** | 24 | 12-14-2023 | 919,873 | 953,520 | 33,647 | 0 |
10-Year U.S. Treasury Notes | 3 | 9-20-2023 | 344,399 | 336,797 | 0 | (7,602 ) |
10-Year Canadian Bond | 52 | 9-20-2023 | 4,871,719 | 4,809,632 | 0 | (62,087 ) |
Short | ||||||
LME Nickel Futures** | (2 ) | 7-17-2023 | (248,571 ) | (244,728 ) | 3,843 | 0 |
LME Primary Aluminum Futures** | (15 ) | 7-17-2023 | (869,045 ) | (795,375 ) | 73,670 | 0 |
LME Zinc Futures** | (16 ) | 7-17-2023 | (1,032,720 ) | (954,500 ) | 78,220 | 0 |
Light Sweet Crude Oil Futures** | (11 ) | 7-20-2023 | (800,654 ) | (777,040 ) | 23,614 | 0 |
Henry Hub Natural Gas Futures** | (45 ) | 7-27-2023 | (1,126,212 ) | (1,259,100 ) | 0 | (132,888 ) |
Brent Crude Oil Futures** | (10 ) | 7-31-2023 | (725,584 ) | (754,100 ) | 0 | (28,516 ) |
Gas Oil Futures** | (2 ) | 8-10-2023 | (140,245 ) | (140,500 ) | 0 | (255 ) |
Gold 100 Troy Ounces Futures** | (10 ) | 8-29-2023 | (2,002,567 ) | (1,929,400 ) | 73,167 | 0 |
10-Year Euro BUND Index | (65 ) | 9-7-2023 | (9,512,742 ) | (9,485,914 ) | 26,828 | 0 |
Cocoa Futures** | (3 ) | 9-14-2023 | (94,428 ) | (100,590 ) | 0 | (6,162 ) |
Hard Red Winter Wheat Futures** | (16 ) | 9-14-2023 | (634,338 ) | (640,000 ) | 0 | (5,662 ) |
Wheat Futures** | (2 ) | 9-14-2023 | (64,092 ) | (65,100 ) | 0 | (1,008 ) |
10-Year Australian Bond | (13 ) | 9-15-2023 | (1,011,383 ) | (1,006,047 ) | 5,336 | 0 |
The accompanying notes are an integral part of these consolidated financial statements.
12 | Allspring Alternative Risk Premia Fund
Consolidated portfolio of investments—June 30, 2023
Futures contracts (continued)
Description | Number of contracts | Expiration date | Notional cost | Notional value | Unrealized gains | Unrealized losses |
Short (continued) | ||||||
E-Mini Russell 2000 Index | (5 ) | 9-15-2023 | $(471,675 ) | $(475,925 ) | $0 | $(4,250 ) |
MSCI Emerging Markets Index | (11 ) | 9-15-2023 | (554,481 ) | (548,845 ) | 5,636 | 0 |
C Coffee Futures** | (14 ) | 9-19-2023 | (960,789 ) | (834,750 ) | 126,039 | 0 |
Soybean Oil Futures** | (3 ) | 12-14-2023 | (102,030 ) | (106,146 ) | 0 | (4,116 ) |
$650,734 | $(427,825 ) |
** | Represents an investment held in Alt Risk Premia Special Investments (Cayman) Ltd., the consolidated entity. |
OTC swap contracts
Reference asset/index | Counterparty | Payment frequency | Maturity date | Notional amount | Value | Unrealized gains | Unrealized losses |
Synthetic total return swap † | Goldman Sachs International | Monthly | 2-1-2024 | $4,797,823 | $4,641,640 | $0 | $(156,183 ) |
† | The Fund receives or pays the difference between the total return on a portfolio of long and short positions underlying the total return swap and the return on a specified benchmark (either the Federal Funds Effective Rate or the 1D USD-SOFR), plus or minus a spread in a typical range of 20-75 basis points (bps; 100 bps equal 1.00%). The spread is determined based upon the country and/or currency of the individual underlying positions. Certain short positions may be subject to higher market rates. |
The following table represents components of the synthetic total return swap basket as of the end of the period which are in excess of 1% of the notional value of the synthetic total return swap basket.
Reference asset | Shares | Value | % of swap basket value | |
Long positions | ||||
Common stocks | ||||
Communication services | ||||
Diversified telecommunication services | ||||
Bandwidth, Inc. Class A | 6,294 | $86,102 | 1.86 % | |
IDT Corp. Class B | 2,090 | 54,026 | 1.16 | |
Liberty Global PLC Class A | 3,884 | 65,484 | 1.41 | |
Liberty Global PLC Class C | 5,390 | 95,780 | 2.06 | |
Entertainment | ||||
Bollore SE | 12,360 | 77,080 | 1.66 | |
Square Enix Holdings Co. Ltd. | 1,200 | 55,834 | 1.20 | |
Interactive media & services | ||||
Auto Trader Group PLC | 6,741 | 52,341 | 1.13 | |
QuinStreet, Inc. | 7,822 | 69,068 | 1.49 | |
Scout24 SE | 2,582 | 163,610 | 3.53 | |
Wireless telecommunication services | ||||
Tele2 AB Class B | 9,876 | 81,678 | 1.76 | |
801,003 | ||||
Consumer discretionary | ||||
Automobiles | ||||
Mazda Motor Corp. | 15,100 | 145,929 | 3.14 | |
Renault SA | 1,262 | 53,248 | 1.15 | |
Yamaha Motor Co. Ltd. | 2,500 | 71,871 | 1.55 |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Alternative Risk Premia Fund | 13
Consolidated portfolio of investments—June 30, 2023
Reference asset | Shares | Value | % of swap basket value | |
Long positions (continued) | ||||
Common stocks (continued) | ||||
Consumer discretionary (continued) | ||||
Broadline retail | ||||
Canadian Tire Corp. Ltd. Class A | 400 | $54,688 | 1.18 % | |
Dollarama, Inc. | 700 | 47,408 | 1.02 | |
Next PLC | 550 | 48,227 | 1.04 | |
Pan Pacific International Holdings Corp. | 6,200 | 111,040 | 2.39 | |
Hotels, restaurants & leisure | ||||
Domino’s Pizza, Inc. | 460 | 155,015 | 3.34 | |
Monogatari Corp. | 3,900 | 94,658 | 2.04 | |
Starbucks Corp. | 487 | 48,242 | 1.04 | |
Tabcorp Holdings Ltd. | 135,379 | 100,418 | 2.16 | |
Yum! Brands, Inc. | 431 | 59,715 | 1.29 | |
Household durables | ||||
NVR, Inc. | 18 | 114,311 | 2.46 | |
Specialty retail | ||||
Chewy, Inc. Class A | 2,637 | 104,082 | 2.24 | |
Haverty Furniture Cos., Inc. | 3,073 | 92,866 | 2.00 | |
PAL Group Holdings Co. Ltd. | 2,100 | 56,842 | 1.22 | |
Winmark Corp. | 299 | 99,409 | 2.14 | |
Textiles, apparel & luxury goods | ||||
Pandora AS | 976 | 87,236 | 1.88 | |
1,545,205 | ||||
Consumer staples | ||||
Beverages | ||||
Carlsberg AS Class B | 627 | 100,402 | 2.16 | |
Consumer staples distribution & retail | ||||
Empire Co. Ltd. Class A | 2,100 | 59,651 | 1.28 | |
Food products | ||||
Campbell Soup Co. | 1,566 | 71,582 | 1.54 | |
General Mills, Inc. | 894 | 68,570 | 1.48 | |
J M Smucker Co. | 386 | 57,001 | 1.23 | |
Lamb Weston Holdings, Inc. | 772 | 88,741 | 1.91 | |
Household products | ||||
Clorox Co. | 534 | 84,927 | 1.83 | |
Tobacco | ||||
Imperial Brands PLC | 2,667 | 59,033 | 1.27 | |
589,907 | ||||
Energy | ||||
Oil, gas & consumable fuels | ||||
Marathon Petroleum Corp. | 503 | 58,650 | 1.26 | |
58,650 | ||||
Financials | ||||
Banks | ||||
Bank of Ireland Group PLC | 6,053 | 57,790 | 1.24 | |
Commerzbank AG | 4,975 | 55,152 | 1.19 | |
Swedbank AB Class A | 3,288 | 55,489 | 1.19 | |
Capital markets | ||||
Amundi SA | 837 | 49,449 | 1.07 | |
BlackRock, Inc. | 68 | 46,998 | 1.01 |
The accompanying notes are an integral part of these consolidated financial statements.
14 | Allspring Alternative Risk Premia Fund
Consolidated portfolio of investments—June 30, 2023
Reference asset | Shares | Value | % of swap basket value | |
Long positions (continued) | ||||
Common stocks (continued) | ||||
Financials (continued) | ||||
Capital markets (continued) | ||||
Brightsphere Investment Group, Inc. | 4,906 | $102,781 | 2.21 % | |
Cboe Global Markets, Inc. | 788 | 108,752 | 2.34 | |
Hargreaves Lansdown PLC | 16,053 | 166,409 | 3.59 | |
IGM Financial, Inc. | 2,100 | 63,931 | 1.38 | |
Invesco Ltd. | 4,890 | 82,201 | 1.77 | |
MarketAxess Holdings, Inc. | 444 | 116,071 | 2.50 | |
MSCI, Inc. | 128 | 60,069 | 1.29 | |
Perella Weinberg Partners | 10,328 | 86,032 | 1.85 | |
SEI Investments Co. | 2,110 | 125,798 | 2.71 | |
StoneX Group, Inc. | 916 | 76,101 | 1.64 | |
Tradeweb Markets, Inc. Class A | 992 | 67,932 | 1.46 | |
Financial services | ||||
Element Fleet Management Corp. | 10,400 | 158,424 | 3.41 | |
Equitable Holdings, Inc. | 2,349 | 63,799 | 1.37 | |
Kinnevik AB Class B | 3,723 | 51,643 | 1.11 | |
Wendel SE | 1,030 | 105,787 | 2.28 | |
Insurance | ||||
American Financial Group, Inc. | 672 | 79,800 | 1.72 | |
Erie Indemnity Co. Class A | 743 | 156,037 | 3.36 | |
Globe Life, Inc. | 921 | 100,960 | 2.17 | |
iA Financial Corp., Inc. | 1,200 | 81,751 | 1.76 | |
Willis Towers Watson PLC | 254 | 59,817 | 1.29 | |
2,178,973 | ||||
Health care | ||||
Biotechnology | ||||
Allakos, Inc. | 15,247 | 66,477 | 1.43 | |
Gilead Sciences, Inc. | 1,426 | 109,902 | 2.37 | |
Kodiak Sciences, Inc. | 10,342 | 71,360 | 1.54 | |
Swedish Orphan Biovitrum AB | 2,767 | 54,082 | 1.17 | |
Health care equipment & supplies | ||||
DENTSPLY SIRONA, Inc. | 1,712 | 68,514 | 1.48 | |
Zynex, Inc. | 7,090 | 67,993 | 1.46 | |
Health care providers & services | ||||
Addus HomeCare Corp. | 538 | 49,873 | 1.07 | |
Life sciences tools & services | ||||
Agilent Technologies, Inc. | 408 | 49,062 | 1.06 | |
Bio-Rad Laboratories, Inc. Class A | 173 | 65,588 | 1.41 | |
Mettler-Toledo International, Inc. | 40 | 52,466 | 1.13 | |
Waters Corp. | 246 | 65,569 | 1.41 | |
Pharmaceuticals | ||||
Amneal Pharmaceuticals, Inc. | 17,281 | 53,571 | 1.15 | |
Ligand Pharmaceuticals, Inc. | 924 | 66,620 | 1.44 | |
Orion Oyj Class B | 2,604 | 108,069 | 2.33 | |
Viatris, Inc. | 10,673 | 106,517 | 2.29 | |
1,055,663 |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Alternative Risk Premia Fund | 15
Consolidated portfolio of investments—June 30, 2023
Reference asset | Shares | Value | % of swap basket value | |
Long positions (continued) | ||||
Common stocks (continued) | ||||
Industrials | ||||
Commercial services & supplies | ||||
Dai Nippon Printing Co. Ltd. | 2,000 | $56,811 | 1.22 % | |
TOPPAN, Inc. | 3,100 | 66,996 | 1.44 | |
Construction & engineering | ||||
Argan, Inc. | 2,061 | 81,224 | 1.75 | |
Monadelphous Group Ltd. | 9,114 | 71,299 | 1.54 | |
Electrical equipment | ||||
Hubbell, Inc. | 336 | 111,404 | 2.40 | |
Thermon Group Holdings, Inc. | 3,461 | 92,063 | 1.98 | |
TPI Composites, Inc. | 4,925 | 51,072 | 1.10 | |
Ground transportation | ||||
Covenant Logistics Group, Inc. | 1,148 | 50,317 | 1.09 | |
Keisei Electric Railway Co. Ltd. | 1,900 | 78,754 | 1.70 | |
Kintetsu Group Holdings Co. Ltd. | 2,600 | 90,044 | 1.94 | |
Industrial conglomerates | ||||
Nisshinbo Holdings, Inc. | 6,100 | 50,587 | 1.09 | |
Machinery | ||||
CIRCOR International, Inc. | 1,338 | 75,530 | 1.63 | |
Otis Worldwide Corp. | 1,095 | 97,466 | 2.10 | |
Toro Co. | 524 | 53,265 | 1.15 | |
Professional services | ||||
Barrett Business Services, Inc. | 1,329 | 115,889 | 2.50 | |
Booz Allen Hamilton Holding Corp. | 1,259 | 140,504 | 3.03 | |
Randstad NV | 1,943 | 102,473 | 2.21 | |
Trading companies & distributors | ||||
WW Grainger, Inc. | 72 | 56,778 | 1.22 | |
1,442,476 | ||||
Information technology | ||||
Electronic equipment, instruments & components | ||||
Arlo Technologies, Inc. | 5,122 | 55,881 | 1.21 | |
Arrow Electronics, Inc. | 364 | 52,136 | 1.12 | |
Azbil Corp. | 1,800 | 56,970 | 1.23 | |
Venture Corp. Ltd. | 9,300 | 101,535 | 2.19 | |
IT services | ||||
CGI, Inc. | 1,300 | 137,090 | 2.95 | |
Gartner, Inc. | 163 | 57,101 | 1.23 | |
Otsuka Corp. | 2,900 | 112,960 | 2.43 | |
VeriSign, Inc. | 428 | 96,715 | 2.08 | |
Wix.com Ltd. | 735 | 57,506 | 1.24 | |
Semiconductors & semiconductor equipment | ||||
Teradyne, Inc. | 1,063 | 118,344 | 2.55 | |
Software | ||||
Adeia, Inc. | 5,475 | 60,280 | 1.30 | |
Descartes Systems Group, Inc. | 1,000 | 80,106 | 1.72 | |
Dropbox, Inc. Class A | 8,062 | 215,013 | 4.63 | |
Fair Isaac Corp. | 199 | 161,033 | 3.47 | |
OneSpan, Inc. | 5,052 | 74,972 | 1.61 | |
Oracle Corp. Japan | 2,600 | 193,371 | 4.17 |
The accompanying notes are an integral part of these consolidated financial statements.
16 | Allspring Alternative Risk Premia Fund
Consolidated portfolio of investments—June 30, 2023
Reference asset | Shares | Value | % of swap basket value | |
Long positions (continued) | ||||
Common stocks (continued) | ||||
Information technology (continued) | ||||
Software (continued) | ||||
Telos Corp. | 23,027 | $58,949 | 1.27 % | |
Yext, Inc. | 8,203 | 92,776 | 2.00 | |
1,782,738 | ||||
Materials | ||||
Chemicals | ||||
Clariant AG | 3,743 | 54,148 | 1.17 | |
Johnson Matthey PLC | 5,951 | 132,110 | 2.85 | |
Koppers Holdings, Inc. | 1,928 | 65,745 | 1.42 | |
Orica Ltd. | 6,171 | 61,135 | 1.32 | |
Metals & mining | ||||
Reliance Steel & Aluminum Co. | 306 | 83,106 | 1.79 | |
396,244 | ||||
Real estate | ||||
Diversified REITs | ||||
British Land Co. PLC | 15,663 | 60,402 | 1.30 | |
H&R Real Estate Investment Trust | 11,200 | 86,658 | 1.87 | |
Stockland | 24,779 | 66,613 | 1.44 | |
Health care REITs | ||||
Medical Properties Trust, Inc. | 5,443 | 50,402 | 1.08 | |
Industrial REITs | ||||
CapitaLand Ascendas REIT | 40,600 | 81,946 | 1.77 | |
Office REITs | ||||
Covivio | 1,547 | 73,080 | 1.57 | |
Gecina SA | 535 | 57,073 | 1.23 | |
Ichigo Office REIT Investment Corp. | 95 | 58,947 | 1.27 | |
Real estate management & development | ||||
Swire Pacific Ltd. Class A | 7,000 | 53,779 | 1.16 | |
Retail REITs | ||||
CBL & Associates Properties, Inc. | 3,510 | 77,360 | 1.67 | |
Klepierre SA | 3,877 | 96,321 | 2.08 | |
Mercialys SA | 8,783 | 79,371 | 1.71 | |
RioCan Real Estate Investment Trust | 6,600 | 96,054 | 2.07 | |
Vicinity Ltd. | 57,170 | 70,406 | 1.52 | |
Waypoint REIT Ltd. | 52,189 | 90,265 | 1.95 | |
1,098,677 | ||||
Utilities | ||||
Gas utilities | ||||
Enagas SA | 2,609 | 51,276 | 1.10 | |
Independent power and renewable electricity producers | ||||
Orron Energy AB | 84,314 | 88,808 | 1.91 | |
Multi-utilities | ||||
Canadian Utilities Ltd. Class A | 2,500 | 64,748 | 1.40 | |
204,832 |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Alternative Risk Premia Fund | 17
Consolidated portfolio of investments—June 30, 2023
Reference asset | Dividend yield | Shares | Value | % of swap basket value |
Long positions (continued) | ||||
Preferred stocks | ||||
Consumer discretionary | ||||
Automobile components | ||||
Schaeffler AG | 0.20 % | 10,565 | $65,215 | 1.41 % |
Short positions | ||||
Common stocks | ||||
Communication services | ||||
Diversified telecommunication services | ||||
BCE, Inc. | (1,300 ) | $(59,272 ) | (1.28 )% | |
Cellnex Telecom SA | (3,614 ) | (146,019 ) | (3.14 ) | |
Entertainment | ||||
Warner Bros Discovery, Inc. | (6,571 ) | (82,400 ) | (1.78 ) | |
Media | ||||
Trade Desk, Inc. Class A | (1,631 ) | (125,946 ) | (2.71 ) | |
(413,637 ) | ||||
Consumer discretionary | ||||
Automobile components | ||||
Aptiv PLC | (696 ) | (71,055 ) | (1.53 ) | |
Denso Corp. | (1,600 ) | (107,923 ) | (2.33 ) | |
Automobiles | ||||
Rivian Automotive, Inc. Class A | (4,296 ) | (71,571 ) | (1.54 ) | |
Tesla, Inc. | (429 ) | (112,299 ) | (2.42 ) | |
Toyota Motor Corp. | (8,900 ) | (143,042 ) | (3.08 ) | |
Broadline retail | ||||
Rakuten Group, Inc. | (31,200 ) | (108,717 ) | (2.34 ) | |
Hotels, restaurants & leisure | ||||
Carnival Corp. | (5,116 ) | (96,334 ) | (2.08 ) | |
Dave & Buster’s Entertainment, Inc. | (1,302 ) | (58,017 ) | (1.25 ) | |
DoorDash, Inc. Class A | (1,286 ) | (98,276 ) | (2.12 ) | |
MGM Resorts International | (1,696 ) | (74,488 ) | (1.60 ) | |
Norwegian Cruise Line Holdings Ltd. | (2,339 ) | (50,920 ) | (1.10 ) | |
Planet Fitness, Inc. Class A | (1,499 ) | (101,093 ) | (2.18 ) | |
Royal Caribbean Cruises Ltd. | (635 ) | (65,875 ) | (1.42 ) | |
Household durables | ||||
GN Store Nord AS | (2,731 ) | (68,298 ) | (1.47 ) | |
Panasonic Holdings Corp. | (5,500 ) | (67,441 ) | (1.45 ) | |
Sony Group Corp. | (1,700 ) | (153,459 ) | (3.31 ) | |
Leisure products | ||||
Mattel, Inc. | (2,447 ) | (47,814 ) | (1.03 ) | |
Specialty retail | ||||
Floor & Decor Holdings, Inc. Class A | (987 ) | (102,609 ) | (2.21 ) | |
RH | (370 ) | (121,948 ) | (2.63 ) | |
Valvoline, Inc. | (1,380 ) | (51,764 ) | (1.11 ) | |
Textiles, apparel & luxury goods | ||||
LVMH Moet Hennessy Louis Vuitton SE | (52 ) | (49,032 ) | (1.06 ) | |
(1,821,975 ) |
The accompanying notes are an integral part of these consolidated financial statements.
18 | Allspring Alternative Risk Premia Fund
Consolidated portfolio of investments—June 30, 2023
Reference asset | Shares | Value | % of swap basket value | |
Short positions (continued) | ||||
Common stocks (continued) | ||||
Consumer staples | ||||
Beverages | ||||
Diageo PLC | (1,956 ) | $(84,090 ) | (1.81 )% | |
Consumer staples distribution & retail | ||||
Seven & i Holdings Co. Ltd. | (1,800 ) | (77,764 ) | (1.68 ) | |
Food products | ||||
Nestle SA | (1,003 ) | (120,652 ) | (2.60 ) | |
(282,506 ) | ||||
Energy | ||||
Oil, gas & consumable fuels | ||||
Enbridge, Inc. | (3,700 ) | (137,526 ) | (2.96 ) | |
Energy Fuels, Inc. | (8,100 ) | (50,321 ) | (1.08 ) | |
Gevo, Inc. | (36,697 ) | (55,779 ) | (1.20 ) | |
Santos Ltd. | (15,955 ) | (79,831 ) | (1.72 ) | |
TC Energy Corp. | (1,800 ) | (72,747 ) | (1.57 ) | |
(396,204 ) | ||||
Financials | ||||
Banks | ||||
National Australia Bank Ltd. | (2,881 ) | (50,671 ) | (1.09 ) | |
Royal Bank of Canada | (600 ) | (57,303 ) | (1.24 ) | |
Toronto-Dominion Bank | (1,100 ) | (68,180 ) | (1.47 ) | |
Capital markets | ||||
Brookfield Corp. | (2,100 ) | (70,700 ) | (1.52 ) | |
Coinbase Global, Inc. Class A | (1,438 ) | (102,889 ) | (2.22 ) | |
Deutsche Boerse AG | (297 ) | (54,830 ) | (1.18 ) | |
EQT AB | (5,848 ) | (112,584 ) | (2.43 ) | |
Macquarie Group Ltd. | (1,010 ) | (120,178 ) | (2.59 ) | |
S&P Global, Inc. | (387 ) | (155,144 ) | (3.34 ) | |
Consumer finance | ||||
SoFi Technologies, Inc. | (7,745 ) | (64,593 ) | (1.39 ) | |
Financial services | ||||
Apollo Global Management, Inc. | (1,427 ) | (109,608 ) | (2.36 ) | |
Berkshire Hathaway, Inc. Class B | (209 ) | (71,269 ) | (1.54 ) | |
Investor AB Class A | (3,646 ) | (72,969 ) | (1.57 ) | |
Investor AB Class B | (6,951 ) | (139,055 ) | (3.00 ) | |
Nexi SpA | (13,386 ) | (105,023 ) | (2.26 ) | |
Insurance | ||||
Brown & Brown, Inc. | (805 ) | (55,416 ) | (1.19 ) | |
Legal & General Group PLC | (37,967 ) | (109,926 ) | (2.37 ) | |
Tryg AS | (3,064 ) | (66,354 ) | (1.43 ) | |
Mortgage real estate investment trusts (REITs) | ||||
ARMOUR Residential REIT, Inc. | (11,461 ) | (61,087 ) | (1.32 ) | |
(1,647,779 ) | ||||
Health care | ||||
Biotechnology | ||||
Argenx SE | (159 ) | (62,009 ) | (1.34 ) | |
CSL Ltd. | (693 ) | (128,329 ) | (2.76 ) |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Alternative Risk Premia Fund | 19
Consolidated portfolio of investments—June 30, 2023
Reference asset | Shares | Value | % of swap basket value | |
Short positions (continued) | ||||
Common stocks (continued) | ||||
Health care (continued) | ||||
Health care providers & services | ||||
R1 RCM, Inc. | (3,074 ) | $(56,715 ) | (1.22 )% | |
UnitedHealth Group, Inc. | (175 ) | (84,112 ) | (1.81 ) | |
Pharmaceuticals | ||||
AstraZeneca PLC | (387 ) | (55,478 ) | (1.19 ) | |
JCR Pharmaceuticals Co. Ltd. | (6,000 ) | (53,182 ) | (1.15 ) | |
(439,825 ) | ||||
Industrials | ||||
Aerospace & defense | ||||
Safran SA | (620 ) | (97,160 ) | (2.09 ) | |
Building products | ||||
Daikin Industries Ltd. | (400 ) | (81,962 ) | (1.77 ) | |
Construction & engineering | ||||
Ferrovial SE | (1,563 ) | (49,410 ) | (1.06 ) | |
Electrical equipment | ||||
Emerson Electric Co. | (614 ) | (55,500 ) | (1.19 ) | |
ITM Power PLC | (75,203 ) | (69,175 ) | (1.49 ) | |
NIDEC Corp. | (1,100 ) | (60,616 ) | (1.31 ) | |
Ground transportation | ||||
Canadian Pacific Kansas City Ltd. | (1,800 ) | (145,386 ) | (3.13 ) | |
Grab Holdings Ltd. Class A | (50,252 ) | (172,364 ) | (3.71 ) | |
Machinery | ||||
Makita Corp. | (1,800 ) | (50,879 ) | (1.10 ) | |
SMC Corp. | (100 ) | (55,576 ) | (1.20 ) | |
Stanley Black & Decker, Inc. | (1,129 ) | (105,799 ) | (2.28 ) | |
Toyota Industries Corp. | (1,200 ) | (85,973 ) | (1.85 ) | |
Professional services | ||||
TransUnion | (805 ) | (63,056 ) | (1.36 ) | |
Trading companies & distributors | ||||
AerCap Holdings NV | (2,713 ) | (172,330 ) | (3.71 ) | |
Transportation infrastructure | ||||
Transurban Group | (5,702 ) | (54,291 ) | (1.17 ) | |
(1,319,477 ) | ||||
Information technology | ||||
Electronic equipment, instruments & components | ||||
Coherent Corp. | (2,457 ) | (125,258 ) | (2.70 ) | |
Hexagon AB Class B | (13,337 ) | (164,049 ) | (3.53 ) | |
Keyence Corp. | (100 ) | (47,516 ) | (1.02 ) | |
IT services | ||||
Nomura Research Institute Ltd. | (1,700 ) | (46,967 ) | (1.01 ) | |
Shopify, Inc. Class A | (1,100 ) | (71,094 ) | (1.53 ) | |
Snowflake, Inc. Class A | (621 ) | (109,284 ) | (2.36 ) | |
Semiconductors & semiconductor equipment | ||||
Advanced Micro Devices, Inc. | (1,166 ) | (132,819 ) | (2.86 ) | |
MKS Instruments Inc | (1,140 ) | (123,234 ) | (2.66 ) | |
Software | ||||
BILL Holdings, Inc. | (789 ) | (92,195 ) | (1.99 ) | |
Datadog, Inc. Class A | (557 ) | (54,798 ) | (1.18 ) | |
Unity Software, Inc. | (1,969 ) | (85,494 ) | (1.84 ) |
The accompanying notes are an integral part of these consolidated financial statements.
20 | Allspring Alternative Risk Premia Fund
Consolidated portfolio of investments—June 30, 2023
Reference asset | Shares | Value | % of swap basket value | |
Short positions (continued) | ||||
Common stocks (continued) | ||||
Information technology (continued) | ||||
Technology hardware, storage & peripherals | ||||
Fujifilm Holdings Corp. | (800 ) | $(47,666 ) | (1.03 )% | |
(1,100,374 ) | ||||
Materials | ||||
Chemicals | ||||
Air Liquide SA | (295 ) | (52,904 ) | (1.14 ) | |
Metals & mining | ||||
Agnico Eagle Mines Ltd. | (1,100 ) | (54,927 ) | (1.18 ) | |
Lithium Americas Corp. | (5,200 ) | (105,236 ) | (2.27 ) | |
Sayona Mining Ltd. | (688,044 ) | (81,134 ) | (1.75 ) | |
(294,201 ) | ||||
Real estate | ||||
Health care REITs | ||||
Welltower, Inc. | (912 ) | (73,772 ) | (1.59 ) | |
Industrial REITs | ||||
Rexford Industrial Realty, Inc. | (2,022 ) | (105,589 ) | (2.28 ) | |
Office REITs | ||||
Nippon Building Fund, Inc. | (14 ) | (55,050 ) | (1.19 ) | |
Orix JREIT, Inc. | (72 ) | (88,632 ) | (1.91 ) | |
Real estate management & development | ||||
Mitsubishi Estate Co. Ltd. | (5,100 ) | (60,590 ) | (1.30 ) | |
Vonovia SE | (4,360 ) | (85,149 ) | (1.83 ) | |
Retail REITs | ||||
Realty Income Corp. | (1,622 ) | (96,979 ) | (2.09 ) | |
(565,761 ) | ||||
Utilities | ||||
Independent power and renewable electricity producers | ||||
RWE AG | (1,496 ) | (65,190 ) | (1.41 ) | |
(65,190 ) |
Abbreviations: | |
REIT | Real estate investment trust |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Alternative Risk Premia Fund | 21
Consolidated statement of assets and liabilities—June 30, 2023
Consolidated financial statements
Consolidated statement of assets and liabilities
Assets | |
Investments in unaffiliated securities, at value (cost $23,403,943) | $23,384,162 |
Investments in affiliated securities, at value (cost $5,629,388) | 5,629,388 |
Cash | 10 |
Cash due from broker | 168,011 |
Cash at broker segregated for futures contracts | 7,885,297 |
Segregated cash for swap contracts | 1,117,000 |
Foreign currency, at value (cost $32) | 31 |
Unrealized gains on forward foreign currency contracts | 445,873 |
Receivable for daily variation margin on open futures contracts | 273,072 |
Receivable from manager | 48,558 |
Receivable for interest | 27,685 |
Receivable for Fund shares sold | 7,018 |
Prepaid expenses and other assets | 91,338 |
Total assets | 39,077,443 |
Liabilities | |
Cash collateral due to broker for forward foreign currency contracts | 330,000 |
Payable for swap contracts | 326,494 |
Payable for daily variation margin on open futures contracts | 207,395 |
Unrealized losses on swap contracts | 156,183 |
Unrealized losses on forward foreign currency contracts | 150,667 |
Payable for Fund shares redeemed | 47,602 |
Administration fees payable | 1,088 |
Trustees’ fees and expenses payable | 292 |
Accrued expenses and other liabilities | 15,804 |
Total liabilities | 1,235,525 |
Total net assets | $37,841,918 |
Net assets consist of | |
Paid-in capital | $38,435,365 |
Total distributable loss | (593,447 ) |
Total net assets | $37,841,918 |
Computation of net asset value per share | |
Net assets–Class R6 | $36,890,522 |
Shares outstanding–Class R61 | 4,466,947 |
Net asset value per share–Class R6 | $8.26 |
Net assets–Institutional Class | $951,396 |
Shares outstanding–Institutional Class1 | 115,595 |
Net asset value per share–Institutional Class | $8.23 |
1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these consolidated financial statements.
22 | Allspring Alternative Risk Premia Fund
Consolidated Statement of operations—year ended June 30, 2023
Consolidated statement of operations
Investment income | |
Interest | $1,033,331 |
Income from affiliated securities | 399,139 |
Total investment income | 1,432,470 |
Expenses | |
Management fee | 269,535 |
Administration fees | |
Class R6 | 13,195 |
Institutional Class | 1,221 |
Custody and accounting fees | 101,096 |
Professional fees | 96,954 |
Registration fees | 43,607 |
Shareholder report expenses | 27,918 |
Trustees’ fees and expenses | 20,431 |
Other fees and expenses | 93,732 |
Total expenses | 667,689 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (387,802 ) |
Institutional Class | (428 ) |
Net expenses | 279,459 |
Net investment income | 1,153,011 |
Realized and unrealized gains (losses) on investments | |
Net realized gains (losses) on | |
Unaffiliated securities | (5,699 ) |
Foreign currency and foreign currency translations | (85,980 ) |
Payment from affiliate | 130,877 |
Forward foreign currency contracts | 1,917,523 |
Futures contracts | (669,436 ) |
Swap contracts | 124,251 |
Net realized gains on investments | 1,411,536 |
Net change in unrealized gains (losses) on | |
Unaffiliated securities | (14,840 ) |
Foreign currency and foreign currency translations | 940 |
Forward foreign currency contracts | 411,670 |
Futures contracts | (879,434 ) |
Swap contracts | (395,230 ) |
Net change in unrealized gains (losses) on investments | (876,894 ) |
Net realized and unrealized gains (losses) on investments | 534,642 |
Net increase in net assets resulting from operations | $1,687,653 |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Alternative Risk Premia Fund | 23
Consolidated statement of changes in net assets
Consolidated statement of changes in net assets
Year ended June 30, 2023 | Year ended June 30, 2022 | |||
Operations | ||||
Net investment income (loss) | $1,153,011 | $(378,293 ) | ||
Net realized gains on investments | 1,411,536 | 3,935,291 | ||
Net change in unrealized gains (losses) on investments | (876,894 ) | 934,009 | ||
Net increase in net assets resulting from operations | 1,687,653 | 4,491,007 | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class R6 | (5,243,974 ) | 0 | ||
Institutional Class | (126,693 ) | 0 | ||
Total distributions to shareholders | (5,370,667 ) | 0 | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class R6 | 2,093,518 | 19,055,274 | 104,165 | 886,741 |
Institutional Class | 0 | 0 | 100,000 | 853,000 |
19,055,274 | 1,739,741 | |||
Reinvestment of distributions | ||||
Class R6 | 638,607 | 5,243,974 | 0 | 0 |
Institutional Class | 15,484 | 126,693 | 0 | 0 |
5,370,667 | 0 | |||
Payment for shares redeemed | ||||
Class R6 | (4,204,500 ) | (38,017,325 ) | (2,679,117 ) | (23,152,340 ) |
Institutional Class | (2,389 ) | (21,716 ) | 0 | 0 |
(38,039,041 ) | (23,152,340 ) | |||
Net decrease in net assets resulting from capital share transactions | (13,613,100 ) | (21,412,599 ) | ||
Total decrease in net assets | (17,296,114 ) | (16,921,592 ) | ||
Net assets | ||||
Beginning of period | 55,138,032 | 72,059,624 | ||
End of period | $37,841,918 | $55,138,032 | ||
The accompanying notes are an integral part of these consolidated financial statements.
24 | Allspring Alternative Risk Premia Fund
Consolidated financial highlights
Consolidated financial highlights
(For a share outstanding throughout each period)
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class R6 | 2023 | 2022 | 2021 | 2020 | 20191 |
Net asset value, beginning of period | $9.13 | $8.46 | $8.02 | $9.75 | $10.00 |
Net investment income (loss) | 0.33 | (0.11 ) | (0.05 )2 | 0.10 | 0.07 |
Payment from affiliate | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 |
Net realized and unrealized gains (losses) on investments | 0.01 | 0.78 | 0.49 | (1.73 ) | (0.32 ) |
Total from investment operations | 0.36 | 0.67 | 0.44 | (1.63 ) | (0.25 ) |
Distributions to shareholders from | |||||
Net investment income | (0.83 ) | 0.00 | 0.00 | (0.03 ) | 0.00 |
Net realized gains | (0.40 ) | 0.00 | 0.00 | (0.07 ) | 0.00 |
Total distributions to shareholders | (1.23 ) | 0.00 | 0.00 | (0.10 ) | 0.00 |
Net asset value, end of period | $8.26 | $9.13 | $8.46 | $8.02 | $9.75 |
Total return3 | 4.44 %* | 7.92 % | 5.49 % | (16.78 )% | (2.50 )% |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.48 % | 1.15 % | 1.09 % | 1.04 % | 1.56 % |
Net expenses | 0.62 % | 0.62 % | 0.62 % | 0.62 % | 0.62 % |
Net investment income (loss) | 2.56 % | (0.56 )% | (0.58 )% | 1.03 % | 1.78 % |
Supplemental data | |||||
Portfolio turnover rate | 0 % | 0 % | 0 % | 0 % | 0 % |
Net assets, end of period (000s omitted) | $36,891 | $54,205 | $72,039 | $65,765 | $38,957 |
* | For year ended June 30, 2023, the Fund received a payment from an affiliate that had an impact of 0.25% on total return. See Note 5 in the Notes to Financial Statements for additional information. |
1 | For the period from January 29, 2019 (commencement of class operations) to June 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 consolidated financial statements.
Allspring Alternative Risk Premia Fund | 25
Consolidated financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Institutional Class | 2023 | 2022 | 2021 | 2020 | 20191 |
Net asset value, beginning of period | $9.10 | $8.44 | $8.02 | $9.74 | $10.00 |
Net investment income (loss) | 0.29 | (0.10 ) | (0.05 ) | 0.09 | 0.07 |
Payment from affiliate | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 |
Net realized and unrealized gains (losses) on investments | 0.05 | 0.76 | 0.47 | (1.72 ) | (0.33 ) |
Total from investment operations | 0.36 | 0.66 | 0.42 | (1.63 ) | (0.26 ) |
Distributions to shareholders from | |||||
Net investment income | (0.83 ) | 0.00 | 0.00 | (0.02 ) | 0.00 |
Net realized gains | (0.40 ) | 0.00 | 0.00 | (0.07 ) | 0.00 |
Total distributions to shareholders | (1.23 ) | 0.00 | 0.00 | (0.09 ) | 0.00 |
Net asset value, end of period | $8.23 | $9.10 | $8.44 | $8.02 | $9.74 |
Total return2 | 4.43 %* | 7.82 % | 5.24 % | (16.87 )% | (2.60 )% |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.62 % | 1.35 % | 1.21 % | 1.15 % | 1.68 % |
Net expenses | 0.72 % | 0.72 % | 0.72 % | 0.72 % | 0.72 % |
Net investment income (loss) | 2.65 % | (0.53 )% | (0.68 )% | 0.95 % | 1.69 % |
Supplemental data | |||||
Portfolio turnover rate | 0 % | 0 % | 0 % | 0 % | 0 % |
Net assets, end of period (000s omitted) | $951 | $933 | $21 | $20 | $24 |
* | For year ended June 30, 2023, the Fund received a payment from an affiliate that had an impact of 0.25% on total return. See Note 5 in the Notes to Financial Statements for additional information. |
1 | For the period from January 29, 2019 (commencement of class operations) to June 30, 2019 |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these consolidated financial statements.
26 | Allspring Alternative Risk Premia Fund
Notes to consolidated financial statements
Notes to consolidated financial statements
1.
ORGANIZATION
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These consolidated financial statements report on the Allspring Alternative Risk Premia (the “Fund”) which is a diversified series of the Trust.
2.
INVESTMENT IN SUBSIDIARY
The Fund invests in direct or indirect investments in various derivatives, including commodity-linked derivatives, through Alt Risk Premia Special Investments (Cayman) Ltd. (the “Subsidiary”), a wholly owned subsidiary incorporated on October 2, 2018 under the laws of the Cayman Islands as an exempted segregated portfolio company with limited liability. As of June 30, 2023, the Subsidiary had $4,967,916 of investments in affiliates and cash at broker segregated for futures contacts representing 96.88% of its net assets. As of June 30, 2023, the Fund held $5,127,894 in the Subsidiary, representing 15.67% of the Fund’s net assets prior to consolidation.
The consolidated financial statements of the Fund include the financial results of the 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 Funds 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.
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.
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 at Allspring Funds Management, LLC (“Allspring Funds Management”).
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.
Investments which are not valued using any of 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.
Allspring Alternative Risk Premia Fund | 27
Notes to consolidated financial statements
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 the Subsidiary and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at a specified price and on a specified date. The Fund and the Subsidiary may buy and sell futures contracts in order to gain exposure to, or protect against, changes in interest rates, security values, commodity prices and foreign exchange rates and is subject to interest rate risk, equity price risk, commodity 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 Subsidiary 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 and the Subsidiary 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 and the Subsidiary are 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 received 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 and the Subsidiary fail to make requested variation margin payments, the broker can gain access to the initial margin to satisfy the Fund’s and the Subsidiary’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 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 (“OTC”) market (“OTC swaps”) or centrally cleared with a central clearinghouse.
The Fund entered into OTC swaps. For OTC swaps, any upfront premiums paid and any upfront fees received are amortized over the term of the contract. The daily fluctuations in market value are recorded as unrealized gains or losses on OTC swaps in the Consolidated Statement of Assets and Liabilities. Payments received or paid are recorded in the Consolidated Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Consolidated Statement of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.
Total return basket swaps
The Fund may enter into total return basket swap contracts to obtain exposure to a custom basket of long and short securities without owning such securities. The Fund has the ability to trade in and out of the long and short positions within the swap and receives the economic benefits and risks equivalent to direct investments in these positions. Under the terms of the contract, the Fund and the counterparty exchange periodic payments based on the total return of reference assets within a basket for a specified interest rate. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid, all of which are reflected in the swap’s market value. The market value also includes interest charges and credits (“financing fees”) related to the notional values of the long and short positions and cash balances within the swap. To the extent the total return of the reference assets exceeds or falls short of the offsetting interest rate obligation, the Fund will receive a payment from, or make a payment to, the counterparty. Positions within the swap are reset periodically. During a reset, any unrealized appreciation (depreciation) on positions and accrued financing fees become available for cash settlement between the Fund and the counterparty. The amounts that are available for cash settlement are recorded as realized gains or losses on swap contracts in the Consolidated Statement of Operations. Cash settlement in and out of the swap may occur at a reset date or any other date, at the discretion of the Fund and the counterparty, over the life of the agreement. Certain swaps have no stated expiration and can be terminated by either party at any time.
The Fund may enter into total return basket swap contracts to obtain exposure to a custom basket of long and short securities without owning such securities. The Fund has the ability to trade in and out of the long and short positions within the swap and receives the economic benefits and risks equivalent to direct investments in these positions. Under the terms of the contract, the Fund and the counterparty exchange periodic payments based on the total return of reference assets within a basket for a specified interest rate. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid, all of which are reflected in the swap’s market value. The market value also includes interest charges and credits (“financing fees”) related to the notional values of the long and short positions and cash balances within the swap. To the extent the total return of the reference assets exceeds or falls short of the offsetting interest rate obligation, the Fund will receive a payment from, or make a payment to, the counterparty. Positions within the swap are reset periodically. During a reset, any unrealized appreciation (depreciation) on positions and accrued financing fees become available for cash settlement between the Fund and the counterparty. The amounts that are available for cash settlement are recorded as realized gains or losses on swap contracts in the Consolidated Statement of Operations. Cash settlement in and out of the swap may occur at a reset date or any other date, at the discretion of the Fund and the counterparty, over the life of the agreement. Certain swaps have no stated expiration and can be terminated by either party at any time.
The Fund is exposed to risks if the counterparty defaults on its obligation to perform, or if there are unfavorable changes in the fluctuation of interest rates or in the price of the reference securities in the basket. In addition to counterparty credit risk, the Fund is subject to liquidity risk if there is no market for the contracts and is exposed to the market risk associated with the reference securities in the basket.
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.
28 | Allspring Alternative Risk Premia Fund
Notes to consolidated financial statements
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income 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 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 June 30, 2023, the aggregate cost of all investments for federal income tax purposes was $29,293,838 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $98,889 |
Gross unrealized losses | (17,245 ) |
Net unrealized gains | $81,644 |
As of June 30, 2023, the Fund had capital loss carryforwards which consist of $967,865 in short-term capital losses and $903,375 in long-term capital losses.
Class allocations
The separate classes of shares offered by the Fund differ principally in 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 Alternative Risk Premia Fund | 29
Notes to consolidated financial statements
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2023:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Short-term investments | ||||
Investment companies | $5,629,388 | $0 | $0 | $5,629,388 |
U.S. Treasury securities | 23,384,162 | 0 | 0 | 23,384,162 |
29,013,550 | 0 | 0 | 29,013,550 | |
Forward foreign currency contracts | 0 | 445,873 | 0 | 445,873 |
Futures contracts | 650,734 | 0 | 0 | 650,734 |
Total assets | $29,664,284 | $445,873 | $0 | $30,110,157 |
Liabilities | ||||
Forward foreign currency contracts | $0 | $150,667 | $0 | $150,667 |
Futures contracts | 427,825 | 0 | 0 | 427,825 |
Swap contracts | 0 | 156,183 | 0 | 156,183 |
Total liabilities | $427,825 | $306,850 | $0 | $734,675 |
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, 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 year ended June 30, 2023, the Fund did not have 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:
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 year ended June 30, 2023, the management fee was equivalent to an annual rate of 0.60% 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 certain subadvisers to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC (“Allspring Investments”) and Allspring Global Investments (UK) Limited (“Allspring UK”), each an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, serves as subadvisers to the Fund. Allspring Investments receives a subadvisory fee at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase. Allspring UK receives a subadvisory fee for its asset allocation services at an annual rate of 0.10% of the Fund’s average daily net assets and a fee for portfolio management services on the assets it co-manages with Allspring Investments at an annual rate starting at 0.15% and declining to 0.075%.
30 | Allspring Alternative Risk Premia Fund
Notes to consolidated financial statements
Administration fees
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
Class-level administration fee | |
Class R6 | 0.03 % |
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 October 31, 2023 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 June 30, 2023, the contractual expense caps are as follows:
EXPENSE RATIO CAPS | |
Class R6 | 0.62 % |
Institutional Class | 0.72 |
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices.
Other transactions
On November 17, 2022, Class R6 and Institutional Class of the Fund was reimbursed by Allspring Funds Management in the amount of $128,482 and $2,395, respectively. The reimbursements were made in connection with resolving a trade error.
6.
INVESTMENT PORTFOLIO TRANSACTIONS
For the year June 30, 2023, the Fund did not have any purchases and sales of securities, excluding any short-term securities.
7.
DERIVATIVE TRANSACTIONS
During the year ended June 30, 2023, in order to provide investors with exposure to sources of excess return (known as alternative risk premia), the Fund and the Subsidiary entered into both long and short positions in equities, fixed income, currencies and commodities directly or with derivatives. The derivative holdings included futures contracts, forward foreign currency contracts and swap contracts.
The volume of the Fund’s derivative activity during the year ended June 30, 2023 was as follows:
Futures contracts | |
Average notional balance on long futures | $24,899,706 |
Average notional balance on short futures | 35,814,574 |
Forward foreign currency contracts | |
Average contract amounts to buy | $20,172,757 |
Average contract amounts to sell | 28,406,580 |
Swap contracts | |
Average notional balance | $4,414,781 |
The Fund’s 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.
Allspring Alternative Risk Premia Fund | 31
Notes to consolidated financial statements
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 June 30, 2023 by primary risk type on the Consolidated Statement of Assets and Liabilities was as follows for the Fund:
Interest rate risk | Commodity risk | Equity risk | Foreign currency risk | Total | |
Asset derivatives | |||||
Futures contracts | $32,164 * | $517,596 * | $100,974 * | $0 | $650,734 |
Forward foreign currency contracts | 0 | 0 | 0 | 445,873 | 445,873 |
$32,164 | $517,596 | $100,974 | $445,873 | $1,096,607 | |
Liability derivatives | |||||
Futures contracts | $82,907 * | $336,830 * | $8,088 * | $0 | $427,825 |
Forward foreign currency contracts | 0 | 0 | 0 | 150,667 | 150,667 |
Swap contracts | 0 | 0 | 156,183 | 0 | 156,183 |
$82,907 | $336,830 | $164,271 | $150,667 | $734,675 | |
* | Amount represents the cumulative unrealized gains (losses) as reported in the table following the Consolidated Portfolio of Investments. For futures contracts, only the current day’s variation margin as of June 30, 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 year ended June 30, 2023 was as follows:
Interest rate risk | Commodity risk | Equity risk | Foreign currency risk | Total | |
Net realized gains (losses) on derivatives | |||||
Futures contracts | $(629,956 ) | $393,170 | $(432,650 ) | $0 | $(669,436 ) |
Forward foreign currency contracts | 0 | 0 | 0 | 1,917,523 | 1,917,523 |
Swap contracts | 0 | 0 | 124,251 | 0 | 124,251 |
$(629,956 ) | $393,170 | $(308,399 ) | $1,917,523 | $1,372,338 | |
Net change in unrealized gains (losses) on derivatives | |||||
Futures contracts | $(805,872 ) | $(162,886 ) | $89,324 | $0 | $(879,434 ) |
Forward foreign currency contracts | 0 | 0 | 0 | 411,670 | 411,670 |
Swap contracts | 0 | 0 | (395,230 ) | 0 | (395,230 ) |
$(805,872 ) | $(162,886 ) | $(305,906 ) | $411,670 | $(862,994 ) | |
For certain types of derivative transactions, the Fund and the Subsidiary have 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 and the Subsidiary 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 and the Subsidiary 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:
32 | Allspring Alternative Risk Premia Fund
Notes to consolidated financial statements
Counterparty | Gross amounts of assets in the Consolidated Statement of Assets and Liabilities | Amounts subject to netting agreements | Collateral received1 | Net amount of assets |
Goldman Sachs International | $445,873 | $(306,850 ) | $(139,023 ) | $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 |
Goldman Sachs International | $306,850 | $(306,850 ) | $0 | $0 |
1 | Collateral received within this table is limited to the collateral for the net transaction with the counterparty. |
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 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 year ended June 30, 2023, there were no borrowings by the Fund under the agreement.
9.
DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid during the years ended June 30, 2023 and June 30, 2022 were as follows:
Year ended June 30 | ||
2023 | 2022 | |
Ordinary income | $3,927,235 | $0 |
Long-term capital gain | 1,443,432 | 0 |
As of June 30, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed ordinary income | Unrealized gains | Capital loss carryforward |
$1,195,159 | $82,634 | $(1,871,240 ) |
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.
Allspring Alternative Risk Premia Fund | 33
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities of Allspring Alternative Risk Premia Fund and subsidiary (the Fund), one of the funds constituting Allspring Funds Trust, including the consolidated portfolio of investments, as of June 30, 2023, the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the consolidated financial statements) and the consolidated financial highlights for each of the years in the four-year period then ended and the period from January 29, 2019 (commencement of operations) to June 30, 2019. In our opinion, the consolidated financial statements and consolidated financial highlights present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the consolidated financial highlights for each of the years in the four-year period then ended and the period from January 29, 2019 to June 30, 2019, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These consolidated financial statements and consolidated financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements and consolidated financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements and consolidated financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements and consolidated financial highlights. Such procedures also included confirmation of securities owned as of June 30, 2023, by correspondence with the custodian, transfer agent and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements and consolidated financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
August 28, 2023
34 | Allspring Alternative Risk Premia Fund
Other information (unaudited)
Other information
Tax information
Pursuant to Section 852 of the Internal Revenue Code, $1,443,432 was designated as a 20% rate gain distribution for the fiscal year ended June 30, 2023.
For the fiscal year ended June 30, 2023, $850,585 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.
For the fiscal year ended June 30, 2023, $238,004 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.
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 1-866-259-3305, 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 Alternative Risk Premia Fund | 35
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 |
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 |
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.
36 | Allspring Alternative Risk Premia 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 |
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 Alternative Risk Premia Fund | 37
Other information (unaudited)
Officers1
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 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 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.
38 | Allspring Alternative Risk Premia Fund
Other information (unaudited)
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 15-17, 2023 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Alternative Risk Premia Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) investment sub-advisory agreements (the “Sub-Advisory Agreements”) with Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited (collectively, the “Sub-Advisers”), affiliates of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreements are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Advisers and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2023, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
The Board noted that it initially approved the Advisory Agreements at a Board meeting held in May 2021, each for a two-year term, in advance of the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC,1 a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. (the “Transaction”). The Trustees also noted that, while they did not specifically consider the continuation of the Advisory Agreements in 2022 as a result of the two-year term that was approved in 2021, the Trustees received and considered certain information at a Board meeting held in April 2022 that was applicable to the Advisory Agreements, including an overview and financial review of the Allspring Global Investments business, information regarding certain ancillary agreements that were approved by the Board at the April 2022 Board meeting, and comparative data regarding Fund fees and expenses.
In providing information to the Board, Allspring Funds Management and the Sub-Advisers were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2023. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Advisers about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Advisers under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Advisers under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Advisers are a part, and a summary of investments made in the Allspring Global Investments business. The Board also considered information about retention arrangements with respect to key personnel of Allspring Global Investments that were put in place in connection with the Transaction. The Board took into account information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the Transaction under a transition services agreement and the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
1
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
Allspring Alternative Risk Premia Fund | 39
Other information (unaudited)
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Advisers to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Advisers. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Advisers’ business continuity plans, their approaches to data privacy and cybersecurity, and Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program, and the Fund’s derivatives risk management program. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2022. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Institutional Class) was higher than the average investment performance of the Universe for the one-year period under review and lower than the average investment performance of the Universe for the three-year period under review. The Board also noted that the investment performance of the Fund was higher than the investment performance of its benchmark index, the ICE BofA U.S. 3-Month Treasury Bill Index, for the one-year period under review and lower than the investment performance of its benchmark index for the three-year period under review. The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s investment performance.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Allspring Funds Management to the Sub-Advisers for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than the sum of these average rates for the Fund’s expense Groups for all share classes.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Advisers for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Advisers, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Advisers, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Advisers to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
40 | Allspring Alternative Risk Premia Fund
Other information (unaudited)
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Advisers under the Sub-Advisory Agreements was reasonable.
Profitability
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Advisers’ profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and differences in how Allspring Global Investments calculates its pre-tax profit metric versus the methodology used when Allspring Funds Management was part of Wells Fargo. It was noted that the impact of such differences had only minor impact on the financial results presented. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Advisers
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Advisers, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Advisers’ business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Advisers and fees earned in the past by Allspring Funds Management and the Sub-Advisers from managing a private investment vehicle for the fund complex’s securities lending collateral.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Advisers, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Advisers under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
Allspring Alternative Risk Premia Fund | 41
Other information (unaudited)
Liquidity risk management program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that operate as money market funds), including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund’s investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the “Council”) composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 16-17, 2023, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2022 through December 31, 2022 (the “Reporting Period”). The Report noted significant liquidity events impacting the Funds related to extended foreign market holidays as well as the difficulty of trading and settlement of most Russia-related securities due to sanctions activity. The Report noted that there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage the Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
42 | Allspring Alternative Risk Premia 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
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.
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Contents
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The views expressed and any forward-looking statements are as of June 30, 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 California Limited-Term Tax-Free Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring California Limited-Term Tax-Free Fund for the 12-month period that ended June 30, 2023. Globally, stocks and bonds experienced heightened volatility through the period. The market was focused on persistently high inflation and the impact of ongoing aggressive central bank rate hikes. Compounding these concerns were the global reverberations of the Russia-Ukraine war. Riskier assets rallied in 2023, with anticipation of an end to the tight monetary policy despite concerns of a possible impending recession. After suffering deep and broad losses through 2022, bonds now benefit from a base of higher yields that can help generate higher income. However, ongoing rate hikes continued to be a headwind during recent months.
For the 12-month period, stocks generally outperformed bonds—both domestic U.S. and global. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 19.59%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 12.72%, while the MSCI EM Index (Net) (USD)3 had more muted performance, with a gain of 1.75%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -0.94%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 fell 1.83%, the Bloomberg Municipal Bond Index6 gained 3.19%, and the ICE BofA U.S. High Yield Index7 returned 8.97%.
Despite high inflation and central bank rate hikes, markets rallied.
Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong: July nonfarm payrolls grew by more than 500,000 and U.S. unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices—major contributors to recent overall inflation—fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with mortgage rates at a 13-year high. The Federal Reserve (Fed) raised the federal funds rate 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to further rate hikes.
August was a broadly challenging month. High inflation persisted, cresting 9% in the eurozone on an annual basis and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June peak. One positive was the resilient U.S. jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act. Its primary stated goals include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“ Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong. ”
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 the 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 California Limited-Term Tax-Free Fund
Letter to shareholders (unaudited)
In September, all asset classes suffered further major losses. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar weighed on results for investors holding non-U.S.-dollar assets. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The Bank of England (BoE) then stepped in and bought long-dated government bonds.
Equities had a reprieve in October. 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 increasing 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.
Financial markets cooled in December, with U.S. equities declining overall in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever, with generally flat 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 wound 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 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.
Markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks would 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 was not falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the BoE and the European Central Bank (ECB) both raised rates by 0.50%.
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 banking industry turmoil created an additional challenge for central banks in balancing inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. 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 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. ”
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.
Allspring California Limited-Term Tax-Free Fund | 3
Letter to shareholders (unaudited)
Economic data released in April pointed to global resilience, as Purchasing Managers Indexes1 in the U.S., U.K., and eurozone beat expectations and China reported first-quarter annualized economic growth of 4.5%. Despite banking industry stress, developed market stocks had monthly gains. The U.S. labor market remained strong, with a 3.5% jobless rate and monthly payroll gains above 200,000. However, uncertainty and inflationary concerns weighed on investors in the U.S. and abroad.
May was marked by a divergence between expanding activity in services and an overall contraction in manufacturing activity in the U.S., U.K., and eurozone. Core inflation remained elevated in the U.S. and Europe, despite the ongoing efforts of the Fed and ECB, which included rate hikes of 0.25% by both in May. Stubborn inflation and the resilient U.S. labor market led to expectations of further interest rate hikes, overall monthly declines across bond indexes, and mixed results for stocks in May. Investor worries over a U.S. debt ceiling impasse were modest, and market confidence was buoyed by a deal in late May to avert a potential U.S. debt default.
June featured the Fed’s first pause on interest rate hikes since March 2022, when it began its aggressive campaign to rein in inflation. However, core CPI, excluding food and energy prices, while continuing to decline, remained stubbornly high in June, at 4.8%, well above the Fed’s 2.0% target rate. With the U.S. unemployment rate still at 3.6%, near a historical low, and U.S. payrolls growing in June for the 30th consecutive month, expectations of more Fed rate hikes were reinforced. However, U.S. and global stocks had strong returns in June.
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
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.
1
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.
4 | Allspring California Limited-Term Tax-Free Fund
Letter to shareholders (unaudited)
Notice to Shareholders |
Beginning in July 2024, the Fund will be required by the Securities and Exchange Commission to send shareholders a paper copy of a new tailored shareholder report in place of the full shareholder report that you are now receiving. The tailored shareholder report will contain concise information about the Fund, including certain expense and performance information and fund statistics. If you wish to receive this new tailored shareholder report electronically, please follow the instructions on the back cover of this report. |
Other information that is currently included in the shareholder report, such as the Fund’s financial statements, will be available online and upon request, free of charge, in paper or electronic format. |
Allspring California Limited-Term Tax-Free Fund | 5
Performance highlights (unaudited)
Performance highlights
Investment objective | The Fund seeks current income exempt from federal income tax and California individual income tax, consistent with capital preservation. |
Manager | Allspring Funds Management, LLC |
Subadviser | Allspring Global Investments, LLC |
Portfolio manager | Terry J. Goode, Kim Nakahara, Adrian Van Poppel |
Average annual total returns (%) as of June 30, 2023 | |||||||||
Including sales charge | Excluding sales charge | Expense ratios1 (%) | |||||||
Inception date | 1 year | 5 year | 10 year | 1 year | 5 year | 10 year | Gross | Net2 | |
Class A (SFCIX) | 11-18-1992 | -0.25 | 0.13 | 0.83 | 1.73 | 0.54 | 1.04 | 0.85 | 0.80 |
Class C (SFCCX) | 8-30-2002 | -0.13 | -0.23 | 0.44 | 0.87 | -0.23 | 0.44 | 1.60 | 1.55 |
Administrator Class (SCTIX) | 9-6-1996 | – | – | – | 1.83 | 0.72 | 1.24 | 0.79 | 0.60 |
Institutional Class (SFCNX)3 | 10-31-2014 | – | – | – | 2.04 | 0.84 | 1.33 | 0.52 | 0.50 |
Bloomberg Municipal Bond 1-5 Year Blend Index4 | – | – | – | – | 1.17 | 1.19 | 1.30 | – | – |
Bloomberg California Municipal 1-5 Year Blend Index5 | – | – | – | – | 1.20 | 0.98 | 1.21 | – | – |
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 2.00%. 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. 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 October 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.80% for Class A, 1.55% for Class C, 0.60% for Administrator Class 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 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 | The Bloomberg Municipal Bond 1–5 Year Blend Index is the 1–5 Year component of the Bloomberg Municipal Bond Index. 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. |
5 | The Bloomberg California Municipal 1-5 Year Blend Index is the 1-5 Year component of the Bloomberg California Municipal Bond Index. 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. 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 California municipal securities risk and high-yield securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.
6 | Allspring California Limited-Term Tax-Free Fund
Performance highlights (unaudited)
Growth of $10,000 investment as of June 30, 20231 |
1 | The chart compares the performance of Class A shares for the most recent ten years with the Bloomberg Municipal Bond 1-5 Year Blend Index and Bloomberg California Municipal 1-5 Year Blend Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 2.00%. |
Allspring California Limited-Term Tax-Free Fund | 7
Performance highlights (unaudited)
MANAGER’S DISCUSSION
Fund highlights
•The Fund (Class A shares, excluding sales charge) outperformed both of its benchmarks, the Bloomberg Municipal Bond 1–5 Year Blend Index and the Bloomberg California Municipal 1–5 Year Blend Index, during the 12-month period that ended June 30, 2023.
•The primary contributors to performance were the Fund’s longer relative yield-curve exposure and credit profile, followed by selection.
•The portfolio started the period with shorter relative duration than its benchmarks but was extended during the period and ended longer. Rates generally moved higher during the period and the longer duration was a detractor.
Global economies increase lending rates in hopes of taming runaway inflation.
Entering 2022, the excitement of a post-pandemic world gave way to new whispers and fears of higher prices and broad-based inflation caused by supply chain bottlenecks, increased housing costs, wage increases, and employment market distortions. Those fears quickly became reality and prices began to rise at a historic rate. The U.S. Federal Open Market Committee acted quickly and with purpose: ending open market purchases, reducing its balance sheet, and raising the benchmark overnight lending rate at each monthly meeting through 2022 and early 2023. Fixed income and equity markets fell sharply but began to recover as annual inflation numbers peaked in June and began to recede.
The U.S. unemployment rate, which reached a multigenerational high of more than 14% in the spring of 2020, fell throughout the past year and has settled below 4%. Employers continue to add jobs, especially in service-oriented industries, and the resulting wage increases have further contributed to inflationary pressures. After the U.S. gross domestic product turned negative in the first and second quarters of 2022, it expanded at rates above 2% in each subsequent quarter. The U.S. federal funds rate, which began 2022 at 0.25% to 0.50%, was raised 10 consecutive times before a pause in June 2023. It now sits at 5.25% to 5.50% as the U.S. Federal Reserve (Fed) attempts to curb inflation. In this environment, some form of recession seems imminent.
In the wake of continued rate increases, U.S. fixed income yields rose dramatically as investors reacted to Fed actions, with the yield on the 10-year Treasury ending the period near 4%. Rising U.S. Treasury yields affected all fixed income sectors in 2022, with all seeing their worst returns in more than 40 years. The U.S. Treasury yield curve remained substantially inverted throughout the period, which has driven many investors into shorter-term interest-bearing vehicles, including money markets.
Municipals sold off drastically to start the period but began to rebound in the fourth quarter of 2022. The Bloomberg Municipal Bond Index* fell nearly 8% and the broader municipal market had more than $124 billion in outflows before stabilizing early in 2023. For the first time in history, the municipal yield curve also inverted but not to the degree seen in Treasuries.
While this environment has certainly been painful for municipal investors, the drawdown has created significantly improved opportunities and entry points. Municipal to Treasury ratios ended the period elevated but at far better levels than in 2021. Municipal credit spreads have widened
substantially while the underlying fundamental credit of municipalities remains strong following trillions of dollars in government stimulus. We believe investors will continue to return to the municipal market in the latter half of 2023, attracted by increased yields, positive fundamental strength, and good relative value.
Credit quality as of June 30, 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. |
*
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.
8 | Allspring California Limited-Term Tax-Free Fund
Performance highlights (unaudited)
From upward sloping to inverted, yield-curve positioning played a large role in performance.
The backup in rates that started earlier in 2022 created a great opportunity to take advantage of attractive yields that had not existed for several years. With the goal of locking in these yields for longer, we moved out the yield curve and up in duration. We reduced exposure to the 1- to 3-year segment and increased exposure to the 4- to 8-year segment. As a result, the portfolio’s weighted average maturity* extended from 3.60 years to 4.30 years and the duration extended from 2.56 years to 2.88 years. We increased sector exposure to gas, hospitals, and local general obligation (GO) bonds and reduced sector exposure to state GOs, housing, and dedicated tax. Additionally, we reduced the portfolio’s exposure to AA-rated and BB-rated bonds and increased exposure to A-rated and BBB-rated bonds.
Effective maturity distribution as of June 30, 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. |
Aggressive Fed tightening combined with an expectation for slowing inflation and a recession created a dramatic shift in the shape of the yield curve. Shorter-term rates experienced the largest increase (the yield on 1-year bonds increased 137 basis points [100 basis points equal 1.00%]), while rates in the 7- to 10-year range were flat or declining. As a result, price-related returns in shorter maturities (1- to 3-years) were negative by 2% to 3% and total returns were only modestly positive. However, both price returns and total returns in the 7- to 10-year range were significantly higher and the Fund benefited from an overweight to this maturity segment. Strong security selection within the industrial development revenue/pollution control revenue and electric revenue sectors played a large role in the Fund’s relative performance
As yields within the index maturity range (1- to 6-years) moved higher during the year, the extension in duration detracted from performance as yields increased. While the Fund’s overall sector profile was a positive factor, we were overweight special tax, which was among the bottom-performing sectors. Additionally, our selection within the water and sewer sector lagged similar bonds held in the index.
The outlook remains favorable for active bond management, in our view.
We believe the outlook for bond selection remains favorable. Increased dispersion within rating tiers and sectors offers the opportunity for differentiation among credits. As the period ended, primary and secondary market opportunities were favorable due to elevated municipal yields relative to the beginning of the period and wider credit spreads.
*
Weighted average maturity (WAM): An average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified.
Allspring California Limited-Term Tax-Free Fund | 9
Fund expenses (unaudited)
Fund expenses
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 January 1, 2023 to June 30, 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 1-1-2023 | Ending account value 6-30-2023 | Expenses paid during the period1 | Annualized net expense ratio | |
Class A | ||||
Actual | $1,000.00 | $1,013.23 | $3.99 | 0.80 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.83 | $4.01 | 0.80 % |
Class C | ||||
Actual | $1,000.00 | $1,008.46 | $7.72 | 1.55 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.11 | $7.75 | 1.55 % |
Administrator Class | ||||
Actual | $1,000.00 | $1,013.26 | $3.00 | 0.60 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.82 | $3.01 | 0.60 % |
Institutional Class | ||||
Actual | $1,000.00 | $1,013.76 | $2.50 | 0.50 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.32 | $2.51 | 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 181 divided by 365 (to reflect the one-half-year period). |
10 | Allspring California Limited-Term Tax-Free Fund
Portfolio of investments—June 30, 2023
Portfolio of investments
Interest rate | Maturity date | Principal | Value | |||
Municipal obligations: 93.81% | ||||||
California: 89.80% | ||||||
Airport revenue: 7.36% | ||||||
California Municipal Finance Authority LAX Integrated Express Solutions LLC Series A AMT | 5.00 % | 12-31-2023 | $ | 1,100,000 | $1,104,192 | |
California Municipal Finance Authority LAX Integrated Express Solutions LLC Series A AMT | 5.00 | 6-30-2024 | 1,115,000 | 1,124,223 | ||
California Municipal Finance Authority LAX Integrated Express Solutions LLC Series A AMT | 5.00 | 12-31-2024 | 750,000 | 759,620 | ||
California Municipal Finance Authority LAX Integrated Express Solutions LLC Series A AMT | 5.00 | 6-30-2027 | 450,000 | 469,080 | ||
California Municipal Finance Authority LAX Integrated Express Solutions LLC Series A AMT | 5.00 | 6-30-2028 | 390,000 | 411,781 | ||
California Municipal Finance Authority LAX Integrated Express Solutions LLC Series A AMT | 5.00 | 12-31-2029 | 3,815,000 | 4,039,947 | ||
City of Los Angeles Department of Airports Series B AMT | 5.00 | 5-15-2025 | 6,000,000 | 6,149,736 | ||
City of Los Angeles Department of Airports Series B AMT | 5.00 | 5-15-2026 | 2,500,000 | 2,602,630 | ||
City of Los Angeles Department of Airports Series C AMT | 5.00 | 5-15-2028 | 2,000,000 | 2,142,089 | ||
City of Los Angeles Department of Airports Series D AMT | 5.00 | 5-15-2028 | 2,705,000 | 2,897,176 | ||
City of Palm Springs Passenger Facility Charge Revenue AMT (BAM Insured) | 5.00 | 6-1-2027 | 1,205,000 | 1,233,240 | ||
County of Sacramento Airport System Revenue Series F AMT | 5.00 | 7-1-2024 | 1,760,000 | 1,778,008 | ||
Port of Oakland Series E | 5.00 | 11-1-2023 | 200,000 | 201,096 | ||
Port of Oakland Series E | 5.00 | 11-1-2026 | 1,200,000 | 1,275,773 | ||
San Diego County Regional Airport Authority Series C AMT | 5.00 | 7-1-2027 | 750,000 | 787,204 | ||
San Diego County Regional Airport Authority Series C AMT | 5.00 | 7-1-2028 | 1,000,000 | 1,062,899 | ||
San Diego County Regional Airport Authority Series C AMT | 5.00 | 7-1-2029 | 1,000,000 | 1,077,501 | ||
San Francisco City & County Airport Commission San Francisco International Airport Series A AMT | 5.50 | 5-1-2028 | 250,000 | 250,241 | ||
29,366,436 | ||||||
Education revenue: 6.99% | ||||||
California Educational Facilities Authority Loma Linda University Series A | 5.00 | 4-1-2024 | 550,000 | 556,056 | ||
California Educational Facilities Authority Loma Linda University Series A | 5.00 | 4-1-2026 | 325,000 | 337,731 | ||
California Infrastructure & Economic Development Bank Colburn School (SIFMA Municipal Swap+0.90%)± | 4.91 | 8-1-2072 | 5,000,000 | 4,848,225 | ||
California Municipal Finance Authority Albert Einstein Academy Charter School/Charter Middle School Series A | 6.00 | 8-1-2023 | 155,000 | 155,285 | ||
California Municipal Finance Authority Biola University, Inc. | 5.00 | 10-1-2027 | 790,000 | 821,667 | ||
California Municipal Finance Authority California Institute of the Arts | 4.00 | 10-1-2033 | 250,000 | 245,097 | ||
California Municipal Finance Authority California Institute of the Arts | 4.00 | 10-1-2035 | 350,000 | 337,439 | ||
California Municipal Finance Authority California Lutheran University | 5.00 | 10-1-2023 | 225,000 | 225,464 | ||
California Municipal Finance Authority California Lutheran University | 5.00 | 10-1-2024 | 275,000 | 278,213 | ||
California Municipal Finance Authority California Lutheran University | 5.00 | 10-1-2025 | 275,000 | 281,018 | ||
California Municipal Finance Authority California Lutheran University | 5.00 | 10-1-2026 | 300,000 | 310,221 | ||
California Municipal Finance Authority Palmdale Aerospace Academy, Inc. Series A144A | 3.88 | 7-1-2028 | 1,075,000 | 1,025,830 | ||
The accompanying notes are an integral part of these financial statements.
Allspring California Limited-Term Tax-Free Fund | 11
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
California Municipal Finance Authority University of the Pacific Series A | 5.00 % | 11-1-2024 | $ | 600,000 | $612,568 | |
California Municipal Finance Authority University of the Pacific Series A | 5.00 | 11-1-2025 | 600,000 | 627,053 | ||
California Municipal Finance Authority University of the Pacific Series A | 5.00 | 11-1-2026 | 625,000 | 667,529 | ||
California Municipal Finance Authority University of the Pacific Series A | 5.00 | 11-1-2027 | 650,000 | 709,884 | ||
California Municipal Finance Authority University of the Pacific Series A | 5.00 | 11-1-2028 | 700,000 | 777,416 | ||
California Municipal Finance Authority University of the Pacific Series A | 5.00 | 11-1-2029 | 470,000 | 526,427 | ||
California Municipal Finance Authority University of the Pacific Series A | 5.00 | 11-1-2030 | 500,000 | 568,980 | ||
California School Finance Authority Aspire Public Schools Obligated Group Series A144A | 2.13 | 8-1-2031 | 500,000 | 425,453 | ||
California School Finance Authority Bright Star Schools Obligated Group144A | 5.00 | 6-1-2027 | 855,000 | 856,704 | ||
California School Finance Authority Classical Academy Obligated Group Series A144A | 3.00 | 10-1-2031 | 375,000 | 345,244 | ||
California School Finance Authority Granada Hills Charter High School Obligated Group Series A144A | 4.00 | 7-1-2029 | 535,000 | 532,409 | ||
California School Finance Authority Hawking STEAM Charter Schools, Inc.144A | 5.00 | 7-1-2023 | 285,000 | 285,000 | ||
California School Finance Authority Hawking STEAM Charter Schools, Inc.144A | 5.00 | 7-1-2024 | 380,000 | 382,656 | ||
California School Finance Authority Hawking STEAM Charter Schools, Inc.144A | 5.00 | 7-1-2026 | 420,000 | 426,514 | ||
California School Finance Authority Hawking STEAM Charter Schools, Inc.144A | 5.00 | 7-1-2027 | 440,000 | 448,271 | ||
California School Finance Authority Hawking STEAM Charter Schools, Inc.144A | 5.00 | 7-1-2028 | 465,000 | 475,492 | ||
California School Finance Authority Hawking STEAM Charter Schools, Inc.144A | 5.00 | 7-1-2029 | 485,000 | 497,093 | ||
California School Finance Authority Hawking STEAM Charter Schools, Inc.144A | 5.00 | 7-1-2030 | 510,000 | 521,374 | ||
California School Finance Authority Hawking STEAM Charter Schools, Inc.144A | 5.00 | 7-1-2031 | 535,000 | 545,247 | ||
California School Finance Authority Hawking STEAM Charter Schools, Inc.144A | 5.00 | 7-1-2032 | 565,000 | 574,050 | ||
California School Finance Authority Rocketship Education Obligated Group Series A144A | 5.00 | 6-1-2026 | 295,000 | 295,623 | ||
California School Finance Authority Santa Clarita Valley International Charter School Series A144A | 4.00 | 6-1-2031 | 260,000 | 245,131 | ||
California State University Series B-2øø | 0.55 | 11-1-2049 | 6,500,000 | 5,766,181 | ||
California Statewide Communities Development Authority California Baptist University Series A144A | 5.13 | 11-1-2023 | 175,000 | 175,162 | ||
Fullerton Public Financing Authority Marshall B Ketchum University Series A | 4.00 | 2-1-2029 | 360,000 | 379,544 | ||
The accompanying notes are an integral part of these financial statements.
12 | Allspring California Limited-Term Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
Fullerton Public Financing Authority Marshall B Ketchum University Series A | 4.00 % | 2-1-2031 | $ | 415,000 | $437,203 | |
Fullerton Public Financing Authority Marshall B Ketchum University Series A | 4.00 | 2-1-2033 | 325,000 | 340,909 | ||
27,867,363 | ||||||
GO revenue: 20.02% | ||||||
Aromas-San Juan Unified School District CAB BAN¤ | 0.00 | 8-1-2027 | 1,375,000 | 1,172,677 | ||
Bassett Unified School District Series B (BAM Insured) | 5.00 | 8-1-2023 | 725,000 | 725,824 | ||
Cajon Valley Union School District | 5.00 | 8-1-2026 | 340,000 | 361,658 | ||
Cajon Valley Union School District | 5.00 | 8-1-2027 | 200,000 | 217,177 | ||
Carlsbad Unified School District Series B | 3.00 | 8-1-2031 | 300,000 | 299,029 | ||
Carlsbad Unified School District Series B | 3.00 | 8-1-2032 | 350,000 | 345,995 | ||
Carlsbad Unified School District Series B | 3.00 | 8-1-2034 | 300,000 | 292,370 | ||
Carlsbad Unified School District Series B | 3.00 | 8-1-2035 | 250,000 | 237,521 | ||
Carlsbad Unified School District Series B | 3.00 | 8-1-2036 | 350,000 | 326,273 | ||
Hayward Unified School District (AGM Insured) | 5.00 | 8-1-2023 | 805,000 | 806,016 | ||
Inglewood Unified School District Series B (BAM Insured) | 5.00 | 8-1-2023 | 195,000 | 195,222 | ||
Inglewood Unified School District Series B (BAM Insured) | 5.00 | 8-1-2024 | 150,000 | 152,774 | ||
Inglewood Unified School District Series B (BAM Insured) | 5.00 | 8-1-2025 | 170,000 | 176,433 | ||
Inglewood Unified School District Series B (BAM Insured) | 5.00 | 8-1-2026 | 235,000 | 248,973 | ||
Local Public Schools Funding Authority School Improvement District No. 2016-1 Series B (AGM Insured) | 3.00 | 8-1-2033 | 225,000 | 216,304 | ||
Local Public Schools Funding Authority School Improvement District No. 2016-1 Series B (AGM Insured) | 3.00 | 8-1-2034 | 375,000 | 355,444 | ||
Local Public Schools Funding Authority School Improvement District No. 2016-1 Series B (AGM Insured) | 3.00 | 8-1-2035 | 520,000 | 483,279 | ||
Los Angeles Unified School District Series C | 4.00 | 7-1-2032 | 1,000,000 | 1,085,655 | ||
Newman-Crows Landing Unified School District CAB BAN¤ | 0.00 | 8-1-2025 | 2,000,000 | 1,856,939 | ||
Oak Valley Hospital District | 5.00 | 7-1-2023 | 755,000 | 755,000 | ||
Oakland Unified School District/Alameda County | 5.00 | 8-1-2025 | 1,540,000 | 1,596,706 | ||
Oakland Unified School District/Alameda County | 5.00 | 8-1-2029 | 10,125,000 | 10,772,891 | ||
Oakland Unified School District/Alameda County Series A | 5.00 | 8-1-2024 | 600,000 | 611,350 | ||
Oakland Unified School District/Alameda County Series B | 5.00 | 8-1-2026 | 500,000 | 528,976 | ||
Oakland Unified School District/Alameda County Series C | 5.00 | 8-1-2025 | 795,000 | 824,274 | ||
Palomar Health Obligated Group Series A (NPFGC Insured)¤ | 0.00 | 8-1-2025 | 1,000,000 | 928,092 | ||
Pittsburg Unified School District (AGM Insured) | 4.00 | 8-1-2031 | 150,000 | 159,709 | ||
Pittsburg Unified School District (AGM Insured) | 4.00 | 8-1-2032 | 250,000 | 264,267 | ||
Sacramento City Unified School District Series E | 5.00 | 8-1-2029 | 1,500,000 | 1,626,104 | ||
Sacramento City Unified School District Series G (AGM Insured) | 4.00 | 8-1-2030 | 150,000 | 159,747 | ||
Sacramento City Unified School District Series G (AGM Insured) | 4.00 | 8-1-2031 | 200,000 | 211,160 | ||
Sacramento City Unified School District Series G (AGM Insured) | 4.00 | 8-1-2032 | 200,000 | 210,010 | ||
Sacramento City Unified School District Series G (AGM Insured) | 4.00 | 8-1-2033 | 200,000 | 209,384 | ||
San Bernardino City Unified School District Series A (AGM Insured) | 1.25 | 8-1-2029 | 435,000 | 377,996 | ||
San Bernardino City Unified School District Series A (AGM Insured) | 4.00 | 8-1-2031 | 875,000 | 926,678 | ||
San Diego Unified School District Series F2 | 5.00 | 7-1-2024 | 20,000,000 | 20,403,628 | ||
San Gorgonio Memorial Health Care District | 4.00 | 8-1-2027 | 1,090,000 | 1,026,654 | ||
San Gorgonio Memorial Health Care District | 4.00 | 8-1-2030 | 580,000 | 530,652 | ||
The accompanying notes are an integral part of these financial statements.
Allspring California Limited-Term Tax-Free Fund | 13
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
Sierra Kings Health Care District | 4.00 % | 8-1-2023 | $ | 405,000 | $405,107 | |
Sierra Kings Health Care District | 4.00 | 8-1-2024 | 420,000 | 422,186 | ||
State of California | 4.00 | 9-1-2026 | 6,000,000 | 6,188,876 | ||
State of California | 5.00 | 10-1-2023 | 8,400,000 | 8,439,364 | ||
State of California | 5.00 | 8-1-2025 | 3,500,000 | 3,645,331 | ||
State of California (BAM Insured) | 5.00 | 9-1-2027 | 8,500,000 | 9,082,312 | ||
79,862,017 | ||||||
Health revenue: 13.77% | ||||||
California HFFA Adventist Health System/West Obligated Group Series 2011-Aøø | 3.00 | 3-1-2041 | 6,125,000 | 6,094,139 | ||
California HFFA Adventist Health System/West Obligated Group Series Aøø | 5.00 | 3-1-2040 | 4,000,000 | 4,252,357 | ||
California HFFA CommonSpirit Health Obligated Group Series A | 5.00 | 4-1-2032 | 1,500,000 | 1,633,485 | ||
California HFFA El Camino Hospital | 5.00 | 2-1-2025 | 1,000,000 | 1,026,162 | ||
California HFFA On Lok Senior Health Services Obligated Group | 3.00 | 8-1-2025 | 475,000 | 465,549 | ||
California HFFA On Lok Senior Health Services Obligated Group | 3.00 | 8-1-2028 | 400,000 | 385,967 | ||
California HFFA On Lok Senior Health Services Obligated Group | 3.00 | 8-1-2030 | 210,000 | 199,210 | ||
California HFFA Providence St. Joseph Health Obligated Group Series B-3øø | 2.00 | 10-1-2036 | 5,000,000 | 4,815,112 | ||
California HFFA Stanford Health Care Obligated Group Series Aøø | 3.00 | 8-15-2054 | 4,700,000 | 4,692,032 | ||
California Municipal Finance Authority Aldersly Series B | 3.75 | 11-15-2028 | 2,990,000 | 2,996,739 | ||
California Municipal Finance Authority Aldersly Series B | 4.00 | 11-15-2028 | 595,000 | 596,317 | ||
California Municipal Finance Authority Carmel Valley Manor Obligated Group | 5.00 | 5-15-2024 | 185,000 | 187,652 | ||
California Municipal Finance Authority Carmel Valley Manor Obligated Group | 5.00 | 5-15-2025 | 200,000 | 206,303 | ||
California Municipal Finance Authority Carmel Valley Manor Obligated Group | 5.00 | 5-15-2026 | 185,000 | 194,398 | ||
California Municipal Finance Authority Community Hospitals of Central California Obligated Group Series A | 5.00 | 2-1-2024 | 500,000 | 505,555 | ||
California Municipal Finance Authority Community Hospitals of Central California Obligated Group Series A | 5.00 | 2-1-2025 | 1,000,000 | 1,018,463 | ||
California Municipal Finance Authority Community Hospitals of Central California Obligated Group Series A | 5.00 | 2-1-2027 | 1,000,000 | 1,039,170 | ||
California Municipal Finance Authority Congregational Homes, Inc. Obligated Group Series B | 2.13 | 11-15-2026 | 565,000 | 533,467 | ||
California Municipal Finance Authority Congregational Homes, Inc. Obligated Group Series B-1 | 2.75 | 11-15-2027 | 520,000 | 492,377 | ||
California Municipal Finance Authority Eisenhower Medical Center Series A | 5.00 | 7-1-2027 | 1,650,000 | 1,729,975 | ||
California Municipal Finance Authority Eisenhower Medical Center Series A | 5.00 | 7-1-2029 | 400,000 | 420,150 | ||
California Municipal Finance Authority Healthright 360 Series A144A | 5.00 | 11-1-2029 | 1,170,000 | 1,202,726 | ||
California Municipal Finance Authority Northern California Retired Officers Community Series B1 | 2.25 | 7-1-2025 | 1,190,000 | 1,160,577 | ||
California Municipal Finance Authority Open Door Community Health Centers | 4.00 | 9-15-2030 | 790,000 | 843,854 | ||
The accompanying notes are an integral part of these financial statements.
14 | Allspring California Limited-Term Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
California Municipal Finance Authority Open Door Community Health Centers | 4.00 % | 9-15-2033 | $ | 890,000 | $936,983 | |
California PFA Henry Mayo Newhall Hospital Obligated Group | 5.00 | 10-15-2030 | 1,165,000 | 1,212,189 | ||
California PFA Henry Mayo Newhall Hospital Obligated Group Series A | 4.00 | 10-15-2028 | 360,000 | 363,334 | ||
California PFA Henry Mayo Newhall Hospital Obligated Group Series Bøø | 4.00 | 10-15-2051 | 690,000 | 676,092 | ||
California PFA Kendal at Sonoma Obligated Group Series B-2144A | 2.38 | 11-15-2028 | 1,000,000 | 957,724 | ||
California Statewide CDA CommonSpirit Health Obligated Group Series F (AGM Insured)€øø | 4.03 | 7-1-2040 | 1,000,000 | 1,000,000 | ||
California Statewide Communities Development Authority Adventist Health System/West Obligated Group Series A | 5.00 | 3-1-2024 | 800,000 | 806,736 | ||
California Statewide Communities Development Authority Cedars- Sinai Medical Center Obligated Group | 5.00 | 7-1-2025 | 500,000 | 516,027 | ||
California Statewide Communities Development Authority Cedars- Sinai Medical Center Obligated Group | 5.00 | 7-1-2026 | 500,000 | 525,008 | ||
California Statewide Communities Development Authority Emanate Health Obligated Group Series A | 5.00 | 4-1-2028 | 755,000 | 805,000 | ||
California Statewide Communities Development Authority Emanate Health Obligated Group Series A | 5.00 | 4-1-2029 | 795,000 | 859,628 | ||
California Statewide Communities Development Authority Hebrew Home for Aged Disabled | 5.00 | 11-1-2030 | 900,000 | 966,954 | ||
California Statewide Communities Development Authority Henry Mayo Newhall Hospital Obligated Group Series A (AGM Insured) | 5.00 | 10-1-2023 | 500,000 | 501,572 | ||
California Statewide Communities Development Authority HumanGood California Obligated Group | 5.00 | 10-1-2026 | 720,000 | 736,180 | ||
California Statewide Communities Development Authority HumanGood California Obligated Group | 5.00 | 10-1-2027 | 1,000,000 | 1,024,129 | ||
California Statewide Communities Development Authority HumanGood California Obligated Group | 5.00 | 10-1-2028 | 1,125,000 | 1,154,231 | ||
California Statewide Communities Development Authority Loma Linda University Medical Center Obligated Group Series A144A | 5.00 | 12-1-2026 | 250,000 | 256,218 | ||
California Statewide Communities Development Authority Loma Linda University Medical Center Obligated Group Series A144A | 5.00 | 12-1-2027 | 300,000 | 307,146 | ||
California Statewide Communities Development Authority Loma Linda University Medical Center Obligated Group Series A144A | 5.00 | 12-1-2028 | 250,000 | 256,253 | ||
Sierra View Local Health Care District | 4.00 | 7-1-2023 | 500,000 | 500,000 | ||
Sierra View Local Health Care District | 4.00 | 7-1-2025 | 580,000 | 582,079 | ||
Sierra View Local Health Care District | 5.00 | 7-1-2027 | 630,000 | 663,643 | ||
Sierra View Local Health Care District | 5.00 | 7-1-2029 | 630,000 | 680,943 | ||
Washington Township Health Care District Series A | 4.00 | 7-1-2033 | 275,000 | 276,909 | ||
Washington Township Health Care District Series A | 5.00 | 7-1-2023 | 600,000 | 600,000 | ||
Washington Township Health Care District Series A | 5.00 | 7-1-2029 | 350,000 | 374,203 | ||
Washington Township Health Care District Series A | 5.00 | 7-1-2030 | 300,000 | 324,082 | ||
Washington Township Health Care District Series A | 5.00 | 7-1-2031 | 325,000 | 349,112 | ||
54,904,111 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring California Limited-Term Tax-Free Fund | 15
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue: 8.53% | ||||||
California Enterprise Development Authority Provident Group-SDSU Properties LLC Series A | 5.00 % | 8-1-2029 | $ | 200,000 | $213,123 | |
California Enterprise Development Authority Provident Group-SDSU Properties LLC Series A | 5.00 | 8-1-2030 | 325,000 | 348,979 | ||
California Housing Finance Agency Series 2 | 4.00 | 3-20-2033 | 4,935,888 | 4,847,031 | ||
California Housing Finance Agency Series 2021-1 | 3.50 | 11-20-2035 | 2,900,173 | 2,713,451 | ||
California Infrastructure & Economic Development Bank California State Teachers’ Retirement System | 5.00 | 8-1-2027 | 400,000 | 432,750 | ||
California Municipal Finance Authority CHF-Davis I LLC | 5.00 | 5-15-2024 | 1,200,000 | 1,210,304 | ||
California Municipal Finance Authority CHF-Davis I LLC | 5.00 | 5-15-2025 | 3,435,000 | 3,503,893 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 4.00 | 5-15-2032 | 700,000 | 720,104 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 5.00 | 5-15-2029 | 400,000 | 432,867 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 5.00 | 5-15-2030 | 450,000 | 491,743 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 5.00 | 5-15-2031 | 400,000 | 440,547 | ||
California State Public Works Board State of California Department of Corrections & Rehabilitation Series D | 5.00 | 9-1-2025 | 1,160,000 | 1,186,459 | ||
California Statewide Communities Development Authority CHF- Irvine LLC (BAM Insured) | 5.00 | 5-15-2026 | 1,605,000 | 1,674,894 | ||
California Statewide Communities Development Authority Lancer Educational Housing LLC Series A144A | 3.00 | 6-1-2029 | 635,000 | 575,280 | ||
City of Long Beach Harbor Revenue Series C AMT | 5.00 | 5-15-2027 | 500,000 | 514,578 | ||
Compton PFA144A | 4.00 | 9-1-2027 | 2,000,000 | 1,966,101 | ||
El Centro Financing Authority Series B | 4.00 | 10-1-2026 | 140,000 | 143,064 | ||
El Centro Financing Authority Series B | 4.00 | 10-1-2027 | 365,000 | 376,281 | ||
El Centro Financing Authority Series B | 4.00 | 10-1-2028 | 255,000 | 264,820 | ||
El Centro Financing Authority Series B | 4.00 | 10-1-2029 | 265,000 | 277,280 | ||
El Centro Financing Authority Series B | 4.00 | 10-1-2030 | 275,000 | 289,006 | ||
El Centro Financing Authority Series B | 4.00 | 10-1-2031 | 285,000 | 300,153 | ||
FHLMC Multifamily VRD Certificates Series M-057 | 2.40 | 10-15-2029 | 5,975,000 | 5,519,807 | ||
Independent Cities Finance Authority Millennium Housing of California | 4.25 | 5-15-2024 | 745,000 | 749,651 | ||
Los Angeles County Public Works Financing Authority Series D | 5.00 | 12-1-2027 | 1,605,000 | 1,688,530 | ||
Municipal Improvement Corp. of Los Angeles Series C | 5.00 | 11-1-2030 | 2,340,000 | 2,723,188 | ||
Sacramento County Housing Authority Series C (FNMA LIQ, FNMA Insured)ø | 2.72 | 7-15-2029 | 405,000 | 405,000 | ||
34,008,884 | ||||||
Industrial development revenue: 0.76% | ||||||
San Francisco City & County Airport Commission San Francisco International Airport SFO Fuel Co. LLC Series A AMT | 5.00 | 1-1-2025 | 3,000,000 | 3,050,195 | ||
Miscellaneous revenue: 6.17% | ||||||
California Housing Finance Agency Series N | 5.00 | 4-1-2029 | 630,000 | 698,521 | ||
California Housing Finance Agency Series N | 5.00 | 4-1-2031 | 730,000 | 827,811 | ||
California Municipal Finance Authority Southwestern Law School | 4.00 | 11-1-2031 | 175,000 | 175,020 | ||
The accompanying notes are an integral part of these financial statements.
16 | Allspring California Limited-Term Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue (continued) | ||||||
California Municipal Finance Authority Southwestern Law School | 5.00 % | 11-1-2026 | $ | 275,000 | $283,910 | |
California Municipal Finance Authority Southwestern Law School | 5.00 | 11-1-2027 | 290,000 | 302,853 | ||
California Municipal Finance Authority Southwestern Law School | 5.00 | 11-1-2028 | 200,000 | 211,050 | ||
California Municipal Finance Authority Southwestern Law School | 5.00 | 11-1-2029 | 210,000 | 223,587 | ||
California Municipal Finance Authority Southwestern Law School | 5.00 | 11-1-2030 | 220,000 | 235,781 | ||
California Statewide Communities Development Authority (BAM Insured) | 5.00 | 8-1-2027 | 2,185,000 | 2,325,826 | ||
California Statewide Communities Development Authority Series 2021-A | 4.00 | 9-2-2027 | 390,000 | 383,557 | ||
California Statewide Communities Development Authority Series 2021-A | 4.00 | 9-2-2028 | 260,000 | 254,523 | ||
City of Irvine Assessment District No. 21-1 | 4.00 | 9-2-2029 | 1,220,000 | 1,277,650 | ||
City of Irvine Assessment District No. 21-1 (BAM Insured) | 4.00 | 9-2-2033 | 270,000 | 283,535 | ||
City of Irvine Reassessment District No. 15-2 | 5.00 | 9-2-2023 | 800,000 | 801,243 | ||
City of Irvine Reassessment District No. 15-2 | 5.00 | 9-2-2024 | 850,000 | 860,219 | ||
County of Santa Barbara Series B AMT | 5.00 | 12-1-2029 | 600,000 | 646,546 | ||
Desert Sands Unified School District (BAM Insured) | 5.00 | 3-1-2024 | 1,500,000 | 1,516,722 | ||
Independent Cities Finance Authority City of Compton Sales Tax Revenue (AGM Insured)144A | 4.00 | 6-1-2028 | 500,000 | 512,843 | ||
Independent Cities Finance Authority City of Compton Sales Tax Revenue (AGM Insured)144A | 4.00 | 6-1-2030 | 550,000 | 568,452 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2029 | 485,000 | 493,770 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2030 | 505,000 | 512,850 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2031 | 525,000 | 531,931 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2032 | 550,000 | 554,154 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2033 | 570,000 | 574,828 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2034 | 595,000 | 603,153 | ||
Lodi Public Financing Authority (AGM Insured) | 5.00 | 9-1-2024 | 1,100,000 | 1,121,941 | ||
Mountain House Public Financing Authority Mountain House Community Services District Series A | 5.00 | 12-1-2029 | 520,000 | 566,717 | ||
Mountain House Public Financing Authority Mountain House Community Services District Series A | 5.00 | 12-1-2030 | 710,000 | 769,576 | ||
Mountain House Public Financing Authority Mountain House Community Services District Series A | 5.00 | 12-1-2031 | 745,000 | 802,879 | ||
Palomar Health Obligated Group COP | 5.00 | 11-1-2023 | 300,000 | 300,966 | ||
Palomar Health Obligated Group COP | 5.00 | 11-1-2024 | 300,000 | 304,067 | ||
Palomar Health Obligated Group COP | 5.00 | 11-1-2025 | 330,000 | 339,118 | ||
San Joaquin Area Flood Control Agency Smith Canal Area Assessment District (AGM Insured) | 5.00 | 10-1-2025 | 250,000 | 259,439 | ||
San Joaquin Area Flood Control Agency Smith Canal Area Assessment District (AGM Insured) | 5.00 | 10-1-2027 | 350,000 | 377,916 | ||
San Joaquin Area Flood Control Agency Smith Canal Area Assessment District (AGM Insured) | 5.00 | 10-1-2029 | 380,000 | 426,193 | ||
Sutter Butte Flood Control Agency Assessment District (BAM Insured) | 5.00 | 10-1-2023 | 1,280,000 | 1,285,566 | ||
The accompanying notes are an integral part of these financial statements.
Allspring California Limited-Term Tax-Free Fund | 17
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue (continued) | ||||||
Sutter Butte Flood Control Agency Assessment District (BAM Insured) | 5.00 % | 10-1-2024 | $ | 715,000 | $731,628 | |
Sutter Butte Flood Control Agency Assessment District (BAM Insured) | 5.00 | 10-1-2025 | 1,575,000 | 1,641,397 | ||
24,587,738 | ||||||
Tax revenue: 11.10% | ||||||
California Statewide Communities Development Authority Community Facilities District No. 2015-01 | 5.00 | 9-1-2027 | 335,000 | 345,212 | ||
Cathedral City Redevelopment Successor Agency Bond Merged Redevelopment Project Series C (BAM Insured) | 4.00 | 8-1-2027 | 580,000 | 596,766 | ||
Cathedral City Redevelopment Successor Agency Bond Merged Redevelopment Project Series C (BAM Insured) | 4.00 | 8-1-2029 | 500,000 | 522,955 | ||
Cathedral City Redevelopment Successor Agency Bond Merged Redevelopment Project Series C (BAM Insured) | 4.00 | 8-1-2031 | 600,000 | 627,271 | ||
Cathedral City Redevelopment Successor Agency Merged Redevelopment Project Series A (AGM Insured) | 5.00 | 8-1-2024 | 1,770,000 | 1,798,981 | ||
Chino Public Financing Authority Series A (AGM Insured) | 5.00 | 9-1-2024 | 660,000 | 674,071 | ||
City & County of San Francisco Community Facilities District No. 2016-1 Improvement Area No. 1 Series 2021 | 4.00 | 9-1-2032 | 350,000 | 347,810 | ||
City & County of San Francisco Community Facilities District No. 2016-1 Improvement Area No. 1 Series 2021 | 4.00 | 9-1-2033 | 865,000 | 856,879 | ||
City & County of San Francisco Community Facilities District No. 2016-1 Improvement Area No. 1 Series 2021 | 4.00 | 9-1-2034 | 700,000 | 692,245 | ||
City & County of San Francisco Community Facilities District No. 2016-1 Improvement Area No. 1 Series A144A | 4.00 | 9-1-2032 | 1,150,000 | 1,120,493 | ||
City & County of San Francisco Infrastructure & Revitalization Financing District No. 1 Series A144A | 5.00 | 9-1-2027 | 500,000 | 513,762 | ||
City of Fontana Community Facilities District No. 90 | 3.00 | 9-1-2025 | 110,000 | 105,948 | ||
City of Fontana Community Facilities District No. 90 | 4.00 | 9-1-2026 | 110,000 | 109,675 | ||
City of Fontana Community Facilities District No. 90 | 4.00 | 9-1-2027 | 125,000 | 125,001 | ||
City of Fontana Community Facilities District No. 90 | 4.00 | 9-1-2028 | 255,000 | 255,331 | ||
City of Fontana Community Facilities District No. 90 | 4.00 | 9-1-2030 | 140,000 | 139,513 | ||
City of Fontana Community Facilities District No. 90 | 4.00 | 9-1-2032 | 300,000 | 298,350 | ||
City of Fremont Community Facilities District No. 1 | 5.00 | 9-1-2024 | 1,000,000 | 1,013,008 | ||
City of Lincoln Community Facilities District No. 2003-1 | 4.00 | 9-1-2024 | 600,000 | 603,862 | ||
City of Lincoln Community Facilities District No. 2003-1 | 5.00 | 9-1-2025 | 550,000 | 568,377 | ||
City of Roseville Fiddyment Ranch Community Facilities District No. 1 Series A | 5.00 | 9-1-2024 | 1,905,000 | 1,929,781 | ||
City of Roseville Fiddyment Ranch Community Facilities District No. 1 Series A | 5.00 | 9-1-2029 | 1,595,000 | 1,684,225 | ||
City of Sacramento Transient Occupancy Tax Revenue Series A | 5.00 | 6-1-2027 | 575,000 | 612,855 | ||
City of San Diego Community Facilities District No. 2 | 4.00 | 9-1-2030 | 435,000 | 455,913 | ||
Commerce Community Development Commission Successor Agency Series A (AGM Insured) | 5.00 | 8-1-2023 | 600,000 | 600,660 | ||
Compton Community Redevelopment Successor Agency Series A (AGM Insured) | 5.00 | 8-1-2025 | 4,095,000 | 4,246,623 | ||
Fairfield Redevelopment Agency | 5.00 | 8-1-2023 | 1,025,000 | 1,026,263 | ||
The accompanying notes are an integral part of these financial statements.
18 | Allspring California Limited-Term Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue (continued) | ||||||
Hollister Redevelopment Successor Agency Hollister Community Development Project (BAM Insured) | 5.00 % | 10-1-2026 | $ | 700,000 | $717,742 | |
Inglewood Redevelopment Successor Agency Refunding Bond Subordinate Lien Merged Redevelopment Project Series A (BAM Insured) | 5.00 | 5-1-2025 | 1,000,000 | 1,028,319 | ||
Irwindale Community Redevelopment Agency City Industrial Development Project (AGM Insured) | 5.00 | 7-15-2023 | 375,000 | 375,177 | ||
Lancaster Redevelopment Successor Agency Combined Redevelopment Project Areas (AGM Insured) | 5.00 | 8-1-2024 | 870,000 | 885,626 | ||
Lancaster Redevelopment Successor Agency Combined Redevelopment Project Areas (AGM Insured) | 5.00 | 8-1-2029 | 400,000 | 426,447 | ||
Oakdale Community Redevelopment Agency Series A (AGM Insured) | 5.00 | 6-1-2027 | 350,000 | 376,105 | ||
Orange County Community Facilities District No. 2015-1 Series A | 5.00 | 8-15-2023 | 365,000 | 365,391 | ||
Orange County Community Facilities District No. 2015-1 Series A | 5.00 | 8-15-2025 | 325,000 | 332,538 | ||
Pittsburg Successor Agency Redevelopment Agency (AGM Insured) | 5.00 | 8-1-2023 | 780,000 | 780,886 | ||
Poway Unified School District Public Financing Authority District No. 6 Series B (BAM Insured) | 5.00 | 9-1-2024 | 1,115,000 | 1,138,515 | ||
Poway Unified School District Public Financing Authority District No. 6 Series B (BAM Insured) | 5.00 | 9-1-2025 | 775,000 | 807,955 | ||
Richmond County Redevelopment Successor Agency Series A (BAM Insured) | 4.50 | 9-1-2025 | 160,000 | 162,202 | ||
Richmond County Redevelopment Successor Agency Series A (BAM Insured) | 5.00 | 9-1-2023 | 265,000 | 265,625 | ||
Richmond County Redevelopment Successor Agency Series A (BAM Insured) | 5.00 | 9-1-2025 | 150,000 | 152,934 | ||
River Islands Public Financing Authority Community Facilities District No. 2003-1 Series A-1 (AGM Insured) | 5.00 | 9-1-2026 | 130,000 | 137,528 | ||
River Islands Public Financing Authority Community Facilities District No. 2003-1 Series A-1 (AGM Insured) | 5.00 | 9-1-2027 | 225,000 | 243,011 | ||
River Islands Public Financing Authority Community Facilities District No. 2003-1 Series A-1 (AGM Insured) | 5.00 | 9-1-2028 | 200,000 | 220,364 | ||
River Islands Public Financing Authority Community Facilities District No. 2003-1 Series A-1 (AGM Insured) | 5.00 | 9-1-2029 | 200,000 | 224,601 | ||
River Islands Public Financing Authority Community Facilities District No. 2003-1 Series A-1 (AGM Insured) | 5.00 | 9-1-2030 | 325,000 | 371,157 | ||
River Islands Public Financing Authority Community Facilities District No. 2021-1 | 4.00 | 9-1-2030 | 200,000 | 196,139 | ||
River Islands Public Financing Authority Community Facilities District No. 2021-1 | 4.00 | 9-1-2031 | 500,000 | 488,915 | ||
Riverside County Redevelopment Successor Agency Desert Communities Project Series D | 5.00 | 10-1-2023 | 470,000 | 471,760 | ||
Riverside County Redevelopment Successor Agency Project Area No. 1 Series A | 5.00 | 10-1-2023 | 460,000 | 461,723 | ||
Roseville Finance Authority Series A | 5.00 | 9-1-2023 | 400,000 | 401,121 | ||
Roseville Finance Authority Series A | 5.00 | 9-1-2029 | 300,000 | 327,443 | ||
San Francisco City & County Redevelopment Successor Agency Community Facilities District No. 6 Series A | 5.00 | 8-1-2025 | 1,600,000 | 1,607,272 | ||
South Orange County Public Financing Authority Series A | 5.00 | 8-15-2024 | 1,425,000 | 1,447,629 | ||
Stockton Redevelopment Successor Agency Series A (AGM Insured) | 5.00 | 9-1-2025 | 1,675,000 | 1,732,025 | ||
The accompanying notes are an integral part of these financial statements.
Allspring California Limited-Term Tax-Free Fund | 19
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue (continued) | ||||||
Successor Agency to the Richmond County Redevelopment Agency Series A (BAM Insured) | 4.00 % | 9-1-2027 | $ | 1,150,000 | $1,188,569 | |
Successor Agency to the Upland Community Redevelopment Agency Merged Project Tax Allocation Bond (AGM Insured) | 5.00 | 9-1-2023 | 1,000,000 | 1,002,517 | ||
Tracy Community Facilities District No. 2016-01 | 4.00 | 9-1-2024 | 135,000 | 134,596 | ||
Tracy Community Facilities District No. 2016-01 | 4.00 | 9-1-2025 | 155,000 | 154,305 | ||
Tracy Community Facilities District No. 2016-01 | 5.00 | 9-1-2028 | 425,000 | 447,187 | ||
Transbay Joint Powers Authority Transbay Redevelopment Project Tax Increment Series A | 5.00 | 10-1-2029 | 500,000 | 542,615 | ||
Transbay Joint Powers Authority Transbay Redevelopment Project Tax Increment Series A | 5.00 | 10-1-2030 | 500,000 | 546,052 | ||
Transbay Joint Powers Authority Transbay Redevelopment Project Tax Increment Series A | 5.00 | 10-1-2031 | 400,000 | 436,567 | ||
Tustin Community Facilities District No. 6-1 Series A | 5.00 | 9-1-2025 | 1,000,000 | 1,031,939 | ||
Yuba City Redevelopment Agency (AGM Insured) | 5.00 | 9-1-2025 | 750,000 | 775,534 | ||
44,277,861 | ||||||
Tobacco revenue: 1.88% | ||||||
California County Tobacco Securitization Agency Series A | 5.00 | 6-1-2030 | 450,000 | 496,590 | ||
California County Tobacco Securitization Agency Series A | 5.00 | 6-1-2031 | 550,000 | 605,874 | ||
California County Tobacco Securitization Agency Series A | 5.00 | 6-1-2032 | 300,000 | 329,700 | ||
California County Tobacco Securitization Agency Sonoma County Securitization Corp. Series A | 5.00 | 6-1-2029 | 950,000 | 1,035,986 | ||
California County Tobacco Securitization Agency Sonoma County Securitization Corp. Series A | 5.00 | 6-1-2030 | 200,000 | 220,707 | ||
California County Tobacco Securitization Agency Sonoma County Securitization Corp. Series A | 5.00 | 6-1-2031 | 225,000 | 249,319 | ||
California County Tobacco Securitization Agency Sonoma County Securitization Corp. Series A | 5.00 | 6-1-2032 | 250,000 | 276,330 | ||
Golden State Tobacco Securitization Corp. Series A-1 | 5.00 | 6-1-2026 | 3,000,000 | 3,185,236 | ||
Golden State Tobacco Securitization Corp. Series A-1 | 5.00 | 6-1-2028 | 1,000,000 | 1,086,901 | ||
7,486,643 | ||||||
Transportation revenue: 1.64% | ||||||
Bay Area Toll Authority Series A (Barclays Bank PLC LOC)ø | 3.00 | 4-1-2055 | 2,000,000 | 2,000,000 | ||
Bay Area Toll Authority Series E (SIFMA Municipal Swap+0.41%)± | 4.42 | 4-1-2056 | 1,500,000 | 1,458,741 | ||
Sacramento Regional Transit District Series A | 5.00 | 3-1-2031 | 410,000 | 473,787 | ||
Sacramento Regional Transit District Series A | 5.00 | 3-1-2033 | 1,425,000 | 1,639,615 | ||
San Joaquin Hills Transportation Corridor Agency Series A | 5.00 | 1-15-2030 | 865,000 | 955,334 | ||
6,527,477 | ||||||
Utilities revenue: 9.47% | ||||||
California Community Choice Financing Authority Series A-1 | 4.00 | 2-1-2027 | 2,290,000 | 2,307,722 | ||
California Community Choice Financing Authority Series A-1 | 4.00 | 2-1-2028 | 2,810,000 | 2,826,901 | ||
California Community Choice Financing Authority Series A-1øø | 5.00 | 12-1-2053 | 6,000,000 | 6,260,469 | ||
California Community Choice Financing Authority Series B-2 (SIFMA Municipal Swap+0.45%)± | 4.46 | 2-1-2052 | 7,000,000 | 6,600,712 | ||
California Community Choice Financing Authority Clean Energy Project Green Bond Series Aøø | 4.00 | 10-1-2052 | 11,650,000 | 11,600,232 | ||
The accompanying notes are an integral part of these financial statements.
20 | Allspring California Limited-Term Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue (continued) | ||||||
California Community Choice Financing Authority Clean Energy Project Green Bond Series Cøø | 5.25 % | 1-1-2054 | $ | 6,000,000 | $6,276,593 | |
California Statewide Communities Development Authority Southern California Edison Co. Series A | 1.75 | 9-1-2029 | 1,500,000 | 1,273,091 | ||
City of Vernon Electric System Revenue Series 2022-A | 5.00 | 8-1-2026 | 600,000 | 617,163 | ||
37,762,883 | ||||||
Water & sewer revenue: 2.11% | ||||||
California Pollution Control Financing Authority Poseidon Resources Channelside LP AMT144A | 5.00 | 7-1-2031 | 2,885,000 | 3,092,843 | ||
Lower Tule River Irrigation District Series A | 5.00 | 8-1-2027 | 680,000 | 731,067 | ||
Lower Tule River Irrigation District Series A | 5.00 | 8-1-2031 | 700,000 | 794,165 | ||
Middle Fork Project Finance Authority | 5.00 | 4-1-2029 | 3,525,000 | 3,788,739 | ||
8,406,814 | ||||||
358,108,422 | ||||||
Guam: 1.29% | ||||||
Airport revenue: 0.33% | ||||||
Port Authority of Guam Series B AMT | 5.00 | 7-1-2023 | 540,000 | 540,000 | ||
Port Authority of Guam Series B AMT | 5.00 | 7-1-2024 | 750,000 | 756,079 | ||
1,296,079 | ||||||
Miscellaneous revenue: 0.96% | ||||||
Guam Education Financing Foundation Series A COP | 5.00 | 10-1-2023 | 3,840,000 | 3,838,046 | ||
5,134,125 | ||||||
Illinois: 0.56% | ||||||
Housing revenue: 0.17% | ||||||
Metropolitan Pier & Exposition Authority Series B | 5.00 | 12-15-2025 | 650,000 | 667,187 | ||
Tax revenue: 0.39% | ||||||
Sales Tax Securitization Corp. Series A | 5.00 | 1-1-2026 | 1,500,000 | 1,556,775 | ||
2,223,962 | ||||||
New York: 1.41% | ||||||
Airport revenue: 0.11% | ||||||
New York Transportation Development Corp. JFK International Airport Terminal LLC Series A AMT | 5.00 | 12-1-2032 | 400,000 | 429,220 | ||
Industrial development revenue: 1.30% | ||||||
New York Transportation Development Corp. Delta Air Lines, Inc. Series A AMT | 5.00 | 1-1-2029 | 5,000,000 | 5,186,924 | ||
5,616,144 | ||||||
Texas: 0.75% | ||||||
Industrial development revenue: 0.75% | ||||||
City of Houston Airport System Revenue United Airlines, Inc. AMT | 5.00 | 7-1-2029 | 3,000,000 | 3,009,886 | ||
Total municipal obligations (Cost $386,498,755) | 374,092,539 | |||||
The accompanying notes are an integral part of these financial statements.
Allspring California Limited-Term Tax-Free Fund | 21
Portfolio of investments—June 30, 2023
Yield | Shares | Value | ||||
Short-term investments: 5.05% | ||||||
Investment companies: 5.05% | ||||||
Allspring Municipal Cash Management Money Market Fund Institutional Class♠∞ | 4.07 % | 20,146,985 | $20,151,015 | |||
Total short-term investments (Cost $20,151,015) | 20,151,015 | |||||
Total investments in securities (Cost $406,649,770) | 98.86 % | 394,243,554 | ||||
Other assets and liabilities, net | 1.14 | 4,562,316 | ||||
Total net assets | 100.00 % | $398,805,870 | ||||
± | 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. |
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
¤ | The security is issued in zero coupon form with no periodic interest payments. |
€ | The security is an auction-rate security which has an interest rate that resets at predetermined short-term intervals through a Dutch auction. The rate shown is the rate in effect at period end. |
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
♠ | The 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: | |
AGM | Assured Guaranty Municipal |
AMT | Alternative minimum tax |
BAM | Build America Mutual Assurance Company |
BAN | Bond anticipation note |
CAB | Capital appreciation bond |
CDA | Community Development Authority |
COP | Certificate of participation |
FHLMC | Federal Home Loan Mortgage Corporation |
FNMA | Federal National Mortgage Association |
GO | General obligation |
HFFA | Health Facilities Financing Authority |
LIQ | Liquidity agreement |
LOC | Letter of credit |
NPFGC | National Public Finance Guarantee Corporation |
PFA | Public Finance Authority |
SIFMA | Securities Industry and Financial Markets Association |
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 Municipal Cash Management Money Market Fund Institutional Class | $26,507,817 | $312,934,301 | $(319,278,737 ) | $(11,315 ) | $(1,051 ) | $20,151,015 | 20,146,985 | $341,335 |
The accompanying notes are an integral part of these financial statements.
22 | Allspring California Limited-Term Tax-Free Fund
Statement of assets and liabilities—June 30, 2023
Financial statements
Statement of assets and liabilities
Assets | |
Investments in unaffiliated securities, at value (cost $386,498,755) | $374,092,539 |
Investments in affiliated securities, at value (cost $20,151,015) | 20,151,015 |
Cash | 97,968 |
Receivable for interest | 4,860,981 |
Receivable for investments sold | 320,000 |
Receivable for Fund shares sold | 170,856 |
Prepaid expenses and other assets | 33,733 |
Total assets | 399,727,092 |
Liabilities | |
Payable for Fund shares redeemed | 493,991 |
Dividends payable | 245,320 |
Management fee payable | 94,919 |
Administration fees payable | 35,136 |
Distribution fee payable | 1,301 |
Trustees’ fees and expenses payable | 202 |
Accrued expenses and other liabilities | 50,353 |
Total liabilities | 921,222 |
Total net assets | $398,805,870 |
Net assets consist of | |
Paid-in capital | $427,138,263 |
Total distributable loss | (28,332,393 ) |
Total net assets | $398,805,870 |
Computation of net asset value and offering price per share | |
Net assets–Class A | $77,257,706 |
Shares outstanding–Class A1 | 7,721,234 |
Net asset value per share–Class A | $10.01 |
Maximum offering price per share – Class A2 | $10.21 |
Net assets–Class C | $2,017,581 |
Shares outstanding–Class C1 | 201,663 |
Net asset value per share–Class C | $10.00 |
Net assets–Administrator Class | $68,022,765 |
Shares outstanding–Administrator Class1 | 6,903,488 |
Net asset value per share–Administrator Class | $9.85 |
Net assets–Institutional Class | $251,507,818 |
Shares outstanding–Institutional Class1 | 25,531,363 |
Net asset value per share–Institutional Class | $9.85 |
1 | The Fund has an unlimited number of authorized shares. |
2 | Maximum offering price is computed as 100/98 of net asset value. On investments of $100,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial statements.
Allspring California Limited-Term Tax-Free Fund | 23
Statement of operations—year ended June 30, 2023
Statement of operations
Investment income | |
Interest | $12,305,915 |
Income from affiliated securities | 341,335 |
Total investment income | 12,647,250 |
Expenses | |
Management fee | 1,869,022 |
Administration fees | |
Class A | 164,213 |
Class C | 4,294 |
Administrator Class | 61,102 |
Institutional Class | 241,085 |
Shareholder servicing fees | |
Class A | 256,224 |
Class C | 6,682 |
Administrator Class | 152,734 |
Distribution fee | |
Class C | 20,046 |
Custody and accounting fees | 25,223 |
Professional fees | 76,097 |
Registration fees | 58,277 |
Shareholder report expenses | 33,826 |
Trustees’ fees and expenses | 22,016 |
Other fees and expenses | 15,235 |
Total expenses | 3,006,076 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (134,875 ) |
Class A | (29,268 ) |
Class C | (619 ) |
Administrator Class | (104,951 ) |
Net expenses | 2,736,363 |
Net investment income | 9,910,887 |
Realized and unrealized gains (losses) on investments | |
Net realized losses on | |
Unaffiliated securities | (3,357,764 ) |
Affiliated securities | (11,315 ) |
Net realized losses on investments | (3,369,079 ) |
Net change in unrealized gains (losses) on | |
Unaffiliated securities | (180,469 ) |
Affiliated securities | (1,051 ) |
Net change in unrealized gains (losses) on investments | (181,520 ) |
Net realized and unrealized gains (losses) on investments | (3,550,599 ) |
Net increase in net assets resulting from operations | $6,360,288 |
The accompanying notes are an integral part of these financial statements.
24 | Allspring California Limited-Term Tax-Free Fund
Statement of changes in net assets
Statement of changes in net assets
Year ended June 30, 2023 | Year ended June 30, 2022 | |||
Operations | ||||
Net investment income | $9,910,887 | $8,592,270 | ||
Net realized losses on investments | (3,369,079 ) | (3,552,858 ) | ||
Net change in unrealized gains (losses) on investments | (181,520 ) | (31,547,062 ) | ||
Net increase (decrease) in net assets resulting from operations | 6,360,288 | (26,507,650 ) | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class A | (1,970,855 ) | (1,417,298 ) | ||
Class C | (30,531 ) | (31,263 ) | ||
Administrator Class | (1,313,609 ) | (523,074 ) | ||
Institutional Class | (6,593,300 ) | (6,623,021 ) | ||
Total distributions to shareholders | (9,908,295 ) | (8,594,656 ) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class A | 4,496,273 | 45,256,530 | 1,227,534 | 13,008,495 |
Class C | 24,111 | 241,756 | 33,146 | 337,374 |
Administrator Class | 4,741,382 | 46,670,346 | 605,760 | 6,178,113 |
Institutional Class | 14,335,725 | 140,995,894 | 27,358,468 | 278,656,194 |
233,164,526 | 298,180,176 | |||
Reinvestment of distributions | ||||
Class A | 185,862 | 1,856,224 | 123,975 | 1,295,806 |
Class C | 2,977 | 29,737 | 2,931 | 30,594 |
Administrator Class | 132,628 | 1,304,260 | 50,858 | 522,681 |
Institutional Class | 412,877 | 4,060,303 | 401,807 | 4,129,632 |
7,250,524 | 5,978,713 | |||
Payment for shares redeemed | ||||
Class A | (5,426,559 ) | (54,188,980 ) | (2,790,407 ) | (29,285,529 ) |
Class C | (199,423 ) | (1,997,044 ) | (169,911 ) | (1,775,351 ) |
Administrator Class | (1,204,247 ) | (11,826,273 ) | (469,763 ) | (4,841,204 ) |
Institutional Class | (28,090,055 ) | (274,521,818 ) | (26,317,874 ) | (269,536,298 ) |
(342,534,115 ) | (305,438,382 ) | |||
Net decrease in net assets resulting from capital share transactions | (102,119,065 ) | (1,279,493 ) | ||
Total decrease in net assets | (105,667,072 ) | (36,381,799 ) | ||
Net assets | ||||
Beginning of period | 504,472,942 | 540,854,741 | ||
End of period | $398,805,870 | $504,472,942 | ||
The accompanying notes are an integral part of these financial statements.
Allspring California Limited-Term Tax-Free Fund | 25
Financial highlights
Financial highlights
(For a share outstanding throughout each period)
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class A | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.03 | $10.76 | $10.71 | $10.76 | $10.61 |
Net investment income | 0.19 1 | 0.15 1 | 0.16 | 0.19 | 0.20 |
Net realized and unrealized gains (losses) on investments | (0.02 ) | (0.73 ) | 0.05 | (0.05 ) | 0.15 |
Total from investment operations | 0.17 | (0.58 ) | 0.21 | 0.14 | 0.35 |
Distributions to shareholders from | |||||
Net investment income | (0.19 ) | (0.15 ) | (0.16 ) | (0.19 ) | (0.20 ) |
Net asset value, end of period | $10.01 | $10.03 | $10.76 | $10.71 | $10.76 |
Total return2 | 1.73 % | (5.42 )% | 1.99 % | 1.30 % | 3.33 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.86 % | 0.85 % | 0.85 % | 0.85 % | 0.85 % |
Net expenses | 0.80 % | 0.80 % | 0.80 % | 0.80 % | 0.80 % |
Net investment income | 1.92 % | 1.44 % | 1.51 % | 1.76 % | 1.87 % |
Supplemental data | |||||
Portfolio turnover rate | 35 % | 32 % | 18 % | 27 % | 11 % |
Net assets, end of period (000s omitted) | $77,258 | $84,928 | $106,602 | $108,189 | $101,765 |
1 | Calculated based upon average shares outstanding |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
26 | Allspring California Limited-Term Tax-Free Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class C | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.03 | $10.76 | $10.71 | $10.76 | $10.61 |
Net investment income | 0.11 1 | 0.07 1 | 0.08 1 | 0.11 1 | 0.12 |
Net realized and unrealized gains (losses) on investments | (0.02 ) | (0.73 ) | 0.05 | (0.05 ) | 0.15 |
Total from investment operations | 0.09 | (0.66 ) | 0.13 | 0.06 | 0.27 |
Distributions to shareholders from | |||||
Net investment income | (0.12 ) | (0.07 ) | (0.08 ) | (0.11 ) | (0.12 ) |
Net asset value, end of period | $10.00 | $10.03 | $10.76 | $10.71 | $10.76 |
Total return2 | 0.87 % | (6.13 )% | 1.23 % | 0.54 % | 2.56 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.60 % | 1.59 % | 1.59 % | 1.60 % | 1.60 % |
Net expenses | 1.55 % | 1.55 % | 1.55 % | 1.55 % | 1.55 % |
Net investment income | 1.14 % | 0.68 % | 0.75 % | 1.01 % | 1.12 % |
Supplemental data | |||||
Portfolio turnover rate | 35 % | 32 % | 18 % | 27 % | 11 % |
Net assets, end of period (000s omitted) | $2,018 | $3,751 | $5,464 | $11,981 | $19,929 |
1 | Calculated based upon average shares outstanding |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
Allspring California Limited-Term Tax-Free Fund | 27
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Administrator Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.88 | $10.60 | $10.55 | $10.60 | $10.45 |
Net investment income | 0.21 1 | 0.17 1 | 0.18 1 | 0.21 1 | 0.22 |
Net realized and unrealized gains (losses) on investments | (0.03 ) | (0.72 ) | 0.05 | (0.05 ) | 0.15 |
Total from investment operations | 0.18 | (0.55 ) | 0.23 | 0.16 | 0.37 |
Distributions to shareholders from | |||||
Net investment income | (0.21 ) | (0.17 ) | (0.18 ) | (0.21 ) | (0.22 ) |
Net asset value, end of period | $9.85 | $9.88 | $10.60 | $10.55 | $10.60 |
Total return | 1.83 % | (5.24 )% | 2.21 % | 1.50 % | 3.56 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.80 % | 0.79 % | 0.79 % | 0.78 % | 0.79 % |
Net expenses | 0.60 % | 0.60 % | 0.60 % | 0.60 % | 0.60 % |
Net investment income | 2.15 % | 1.65 % | 1.71 % | 1.95 % | 2.07 % |
Supplemental data | |||||
Portfolio turnover rate | 35 % | 32 % | 18 % | 27 % | 11 % |
Net assets, end of period (000s omitted) | $68,023 | $31,947 | $32,294 | $36,591 | $108,484 |
1 | Calculated based upon average shares outstanding |
The accompanying notes are an integral part of these financial statements.
28 | Allspring California Limited-Term Tax-Free Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Institutional Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.87 | $10.59 | $10.54 | $10.59 | $10.44 |
Net investment income | 0.22 1 | 0.18 | 0.19 | 0.22 | 0.23 |
Net realized and unrealized gains (losses) on investments | (0.02 ) | (0.72 ) | 0.05 | (0.05 ) | 0.15 |
Total from investment operations | 0.20 | (0.54 ) | 0.24 | 0.17 | 0.38 |
Distributions to shareholders from | |||||
Net investment income | (0.22 ) | (0.18 ) | (0.19 ) | (0.22 ) | (0.23 ) |
Net asset value, end of period | $9.85 | $9.87 | $10.59 | $10.54 | $10.59 |
Total return | 2.04 % | (5.15 )% | 2.31 % | 1.60 % | 3.66 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.53 % | 0.52 % | 0.52 % | 0.52 % | 0.52 % |
Net expenses | 0.50 % | 0.50 % | 0.50 % | 0.50 % | 0.50 % |
Net investment income | 2.19 % | 1.74 % | 1.81 % | 2.06 % | 2.17 % |
Supplemental data | |||||
Portfolio turnover rate | 35 % | 32 % | 18 % | 27 % | 11 % |
Net assets, end of period (000s omitted) | $251,508 | $383,847 | $396,495 | $380,649 | $322,273 |
1 | Calculated based upon average shares outstanding |
The accompanying notes are an integral part of these financial statements.
Allspring California Limited-Term Tax-Free Fund | 29
Notes to financial statements
Notes to financial statements
1.
ORGANIZATION
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring California Limited-Term Tax-Free 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 Funds 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.
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 any of 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.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, 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.
30 | Allspring California Limited-Term Tax-Free Fund
Notes to financial statements
As of June 30, 2023, the aggregate cost of all investments for federal income tax purposes was $406,709,872 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $718,447 |
Gross unrealized losses | (13,184,765 ) |
Net unrealized losses | $(12,466,318 ) |
As of June 30, 2023, the Fund had capital loss carryforwards which consist of $11,704,570 in short-term capital losses and $5,050,911 in long-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.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2023:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Municipal obligations | $0 | $374,092,539 | $0 | $374,092,539 |
Short-term investments | ||||
Investment companies | 20,151,015 | 0 | 0 | 20,151,015 |
Total assets | $20,151,015 | $374,092,539 | $0 | $394,243,554 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended June 30, 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
Allspring California Limited-Term Tax-Free Fund | 31
Notes to financial statements
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 | 0.400 % |
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 year ended June 30, 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 a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.15% 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 | 0.15 % |
Class C | 0.15 |
Administrator Class | 0.10 |
Institutional Class | 0.08 |
Prior to June 30, 2023, the class-level administration fee for Class A and Class C was 0.16% of the average daily net assets of each respective class.
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 October 31, 2023 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 June 30, 2023, the contractual expense caps are as follows:
EXPENSE RATIO CAPS | |
Class A | 0.80 % |
Class C | 1.55 |
Administrator Class | 0.60 |
Institutional Class | 0.50 |
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 year ended June 30, 2023, Allspring Funds Distributor received $142 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the year ended June 30, 2023.
32 | Allspring California Limited-Term Tax-Free Fund
Notes to financial statements
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. Pursuant to these procedures, the Fund had $35,456,153, $25,020,000 and $0 in interfund purchases, sales and net realized gains (losses), respectively, during the year ended June 30, 2023.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2023 were $149,464,108 and $198,027,026, 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 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 year ended June 30, 2023, there were no borrowings by the Fund under the agreement.
7.
DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid was $9,908,295 and $8,594,656 of tax-exempt income for the years ended June 30, 2023 and June 30, 2022, respectively.
As of June 30, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | Unrealized losses | Capital loss carryforward |
$1,134,726 | $(12,466,318 ) | $(16,755,481 ) |
8.
CONCENTRATION RISK
The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state or territory of the U.S. Therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt fund. As of the end of the period, the Fund’s investments were concentrated in the state of California.
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.
Allspring California Limited-Term Tax-Free Fund | 33
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring California Limited-Term Tax-Free Fund (the Fund), one of the funds constituting Allspring Funds Trust, including the portfolio of investments, as of June 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of June 30, 2023, by correspondence with the custodian and transfer agent. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
August 25, 2023
34 | Allspring California Limited-Term Tax-Free Fund
Other information (unaudited)
Other information
Tax information
Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2023.
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 1-866-259-3305, 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 California Limited-Term Tax-Free Fund | 35
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 |
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 |
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.
36 | Allspring California Limited-Term Tax-Free 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 |
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 California Limited-Term Tax-Free Fund | 37
Other information (unaudited)
Officers1
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 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 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.
38 | Allspring California Limited-Term Tax-Free Fund
Other information (unaudited)
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 15-17, 2023 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring California Limited-Term Tax-Free Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2023, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
The Board noted that it initially approved the Advisory Agreements at a Board meeting held in May 2021, each for a two-year term, in advance of the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC,1 a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. (the “Transaction”). The Trustees also noted that, while they did not specifically consider the continuation of the Advisory Agreements in 2022 as a result of the two-year term that was approved in 2021, the Trustees received and considered certain information at a Board meeting held in April 2022 that was applicable to the Advisory Agreements, including an overview and financial review of the Allspring Global Investments business, information regarding certain ancillary agreements that were approved by the Board at the April 2022 Board meeting, and comparative data regarding Fund fees and expenses.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2023. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business. The Board also considered information about retention arrangements with respect to key personnel of Allspring Global Investments that were put in place in connection with the Transaction. The Board took into account information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the Transaction under a transition services agreement and the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
1
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
Allspring California Limited-Term Tax-Free Fund | 39
Other information (unaudited)
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, and Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2022. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was lower than the average investment performance of the Universe for all periods under review, except that the investment performance of the Fund was higher than the average investment performance of the Universe for the ten-year period under review. The Board also noted that the investment performance of the Fund was lower than the investment performance of its benchmark index, the Bloomberg Municipal Bond 1-5 Year Blend Index, for all periods under review, except that the investment performance of the Fund was in range of its benchmark index for the ten-year period under review. The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s investment performance.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were in range of the median net operating expense ratios of the expense Groups for the all share classes, except that the net operating expense ratios of the Fund were higher than the median net operating expense ratios of the expense Groups for the Administrator Class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were in range of the sum of these average rates for the Fund’s expense Groups for all share classes, except that the Management Rates of the Fund were lower than the sum of these average rates for the Fund’s expense Groups for the Institutional Class.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
40 | Allspring California Limited-Term Tax-Free Fund
Other information (unaudited)
Profitability
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and differences in how Allspring Global Investments calculates its pre-tax profit metric versus the methodology used when Allspring Funds Management was part of Wells Fargo. It was noted that the impact of such differences had only minor impact on the financial results presented. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser and fees earned in the past by Allspring Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund complex’s securities lending collateral.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
Allspring California Limited-Term Tax-Free Fund | 41
Other information (unaudited)
Liquidity risk management program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that operate as money market funds), including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund’s investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the “Council”) composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 16-17, 2023, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2022 through December 31, 2022 (the “Reporting Period”). The Report noted significant liquidity events impacting the Funds related to extended foreign market holidays as well as the difficulty of trading and settlement of most Russia-related securities due to sanctions activity. The Report noted that there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage the Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
42 | Allspring California Limited-Term Tax-Free 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
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.
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Contents
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The views expressed and any forward-looking statements are as of June 30, 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 California Tax-Free Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring California Tax-Free Fund for the 12-month period that ended June 30, 2023. Globally, stocks and bonds experienced heightened volatility through the period. The market was focused on persistently high inflation and the impact of ongoing aggressive central bank rate hikes. Compounding these concerns were the global reverberations of the Russia-Ukraine war. Riskier assets rallied in 2023, with anticipation of an end to the tight monetary policy despite concerns of a possible impending recession. After suffering deep and broad losses through 2022, bonds now benefit from a base of higher yields that can help generate higher income. However, ongoing rate hikes continued to be a headwind during recent months.
For the 12-month period, stocks generally outperformed bonds—both domestic U.S. and global. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 19.59%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 12.72%, while the MSCI EM Index (Net) (USD)3 had more muted performance, with a gain of 1.75%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -0.94%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 fell 1.83%, the Bloomberg Municipal Bond Index6 gained 3.19%, and the ICE BofA U.S. High Yield Index7 returned 8.97%.
Despite high inflation and central bank rate hikes, markets rallied.
Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong: July nonfarm payrolls grew by more than 500,000 and U.S. unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices—major contributors to recent overall inflation—fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with mortgage rates at a 13-year high. The Federal Reserve (Fed) raised the federal funds rate 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to further rate hikes.
August was a broadly challenging month. High inflation persisted, cresting 9% in the eurozone on an annual basis and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June peak. One positive was the resilient U.S. jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act. Its primary stated goals include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“ Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong. ”
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 the 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 California Tax-Free Fund
Letter to shareholders (unaudited)
In September, all asset classes suffered further major losses. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar weighed on results for investors holding non-U.S.-dollar assets. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The Bank of England (BoE) then stepped in and bought long-dated government bonds.
Equities had a reprieve in October. 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 increasing 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.
Financial markets cooled in December, with U.S. equities declining overall in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever, with generally flat 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 wound 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 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.
Markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks would 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 was not falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the BoE and the European Central Bank (ECB) both raised rates by 0.50%.
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 banking industry turmoil created an additional challenge for central banks in balancing inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. 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 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. ”
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.
Allspring California Tax-Free Fund | 3
Letter to shareholders (unaudited)
Economic data released in April pointed to global resilience, as Purchasing Managers Indexes1 in the U.S., U.K., and eurozone beat expectations and China reported first-quarter annualized economic growth of 4.5%. Despite banking industry stress, developed market stocks had monthly gains. The U.S. labor market remained strong, with a 3.5% jobless rate and monthly payroll gains above 200,000. However, uncertainty and inflationary concerns weighed on investors in the U.S. and abroad.
May was marked by a divergence between expanding activity in services and an overall contraction in manufacturing activity in the U.S., U.K., and eurozone. Core inflation remained elevated in the U.S. and Europe, despite the ongoing efforts of the Fed and ECB, which included rate hikes of 0.25% by both in May. Stubborn inflation and the resilient U.S. labor market led to expectations of further interest rate hikes, overall monthly declines across bond indexes, and mixed results for stocks in May. Investor worries over a U.S. debt ceiling impasse were modest, and market confidence was buoyed by a deal in late May to avert a potential U.S. debt default.
June featured the Fed’s first pause on interest rate hikes since March 2022, when it began its aggressive campaign to rein in inflation. However, core CPI, excluding food and energy prices, while continuing to decline, remained stubbornly high in June, at 4.8%, well above the Fed’s 2.0% target rate. With the U.S. unemployment rate still at 3.6%, near a historical low, and U.S. payrolls growing in June for the 30th consecutive month, expectations of more Fed rate hikes were reinforced. However, U.S. and global stocks had strong returns in June.
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
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.
1
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.
4 | Allspring California Tax-Free Fund
Letter to shareholders (unaudited)
Notice to Shareholders |
Beginning in July 2024, the Fund will be required by the Securities and Exchange Commission to send shareholders a paper copy of a new tailored shareholder report in place of the full shareholder report that you are now receiving. The tailored shareholder report will contain concise information about the Fund, including certain expense and performance information and fund statistics. If you wish to receive this new tailored shareholder report electronically, please follow the instructions on the back cover of this report. |
Other information that is currently included in the shareholder report, such as the Fund’s financial statements, will be available online and upon request, free of charge, in paper or electronic format. |
Allspring California Tax-Free Fund | 5
Performance highlights (unaudited)
Performance highlights
Investment objective | The Fund seeks current income exempt from federal income tax and California individual income tax. |
Manager | Allspring Funds Management, LLC |
Subadviser | Allspring Global Investments, LLC |
Portfolio manager | Terry J. Goode, Kim Nakahara, Adrian Van Poppel |
Average annual total returns (%) as of June 30, 2023 | |||||||||
Including sales charge | Excluding sales charge | Expense ratios1 (%) | |||||||
Inception date | 1 year | 5 year | 10 year | 1 year | 5 year | 10 year | Gross | Net2 | |
Class A (SCTAX) | 10-6-1988 | -2.67 | -0.05 | 1.97 | 1.90 | 0.88 | 2.44 | 0.81 | 0.75 |
Class C (SCTCX) | 7-1-1993 | 0.16 | 0.13 | 1.83 | 1.16 | 0.13 | 1.83 | 1.56 | 1.50 |
Administrator Class (SGCAX) | 12-15-1997 | – | – | – | 2.11 | 1.09 | 2.65 | 0.75 | 0.55 |
Institutional Class (SGTIX)3 | 10-31-2014 | – | – | – | 2.18 | 1.16 | 2.71 | 0.48 | 0.48 |
Bloomberg California Municipal Bond Index4 | – | – | – | – | 3.49 | 1.76 | 2.84 | – | – |
Bloomberg Municipal Bond Index5 | – | – | – | – | 3.19 | 1.84 | 2.68 | – | – |
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. 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 October 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.75% for Class A, 1.50% for Class C, 0.55% for Administrator Class and 0.48% 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 | The Bloomberg California Municipal Bond Index is the California component of the Bloomberg Municipal Bond Index. You cannot invest directly in an index. |
5 | 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. |
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. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to California municipal securities risk, high-yield securities risk, and non-diversification risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.
6 | Allspring California Tax-Free Fund
Performance highlights (unaudited)
Growth of $10,000 investment as of June 30, 20231 |
1 | The chart compares the performance of Class A shares for the most recent ten years with the Bloomberg California Municipal Bond Index and Bloomberg Municipal Bond Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%. |
Allspring California Tax-Free Fund | 7
Performance highlights (unaudited)
MANAGER’S DISCUSSION
Fund highlights
•The Fund underperformed its primary benchmark, the Bloomberg California Municipal Bond Index, for the 12-month period that ended June 30, 2023.
•The primary drivers that detracted from performance were the Fund’s longer duration relative to the index, an underweight to general obligation (GO) bonds, and credit quality, with an underweight to the stronger-performing AAA-rated and AA-rated categories.
•Sector allocation was a detractor, with underweights to local GO, transportation, and leasing sub-sectors, all of which outperformed the index.
•Overall security selection contributed to performance, with strong performance in the water/sewer and industrial development revenue/pollution control revenue sub-sectors, in particular. An underweight to lower coupons also helped performance.
Global economies increase lending rates in hopes of taming runaway inflation.
Entering 2022, the excitement of a post-pandemic world gave way to new whispers and fears of higher prices and broad-based inflation caused by supply chain bottlenecks, increased housing costs, wage increases, and employment market distortions. Those fears quickly became reality and prices began to rise at a historic rate. The U.S. Federal Open Market Committee acted quickly and with purpose: ending open market purchases, reducing its balance sheet, and raising the benchmark overnight lending rate at each monthly meeting through 2022 and early 2023. Fixed income and equity markets fell sharply but began to recover as annual inflation numbers peaked in June and began to recede.
The U.S. unemployment rate, which reached a multigenerational high of more than 14% in the spring of 2020, fell throughout the past year and has settled below 4%. Employers continue to add jobs, especially in service-oriented industries, and the resulting wage increases have further contributed to inflationary pressures. After the U.S. gross domestic product turned negative in the first and second quarters of 2022, it expanded at rates above 2% in each subsequent quarter. The federal funds rate, which began 2022 at 0.25% to 0.50%, was raised 10 consecutive times before a pause in June 2023. It now sits at 5.25% to 5.50% as the U.S. Federal Reserve (Fed) attempts to curb inflation. In this environment, some form of recession seems imminent.
In the wake of continued rate increases, U.S. fixed income yields rose dramatically as investors reacted to Fed actions, with the yield on the 10-year Treasury ending the period near 4%. Rising U.S. Treasury yields affected all fixed income sectors in 2022, with all seeing their worst returns in more than 40 years. The U.S. Treasury yield curve remained substantially inverted throughout the period, which has driven many investors into shorter-term interest-bearing vehicles, including money markets.
Municipals sold off drastically to start the period but began to rebound in the fourth quarter of 2022. The Bloomberg Municipal Bond Index fell nearly 8% and the broader municipal market had more than $124 billion in outflows before stabilizing early in 2023. For the first time in history, the municipal yield curve also inverted but not to the degree seen in Treasuries.
Credit quality as of June 30, 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. |
While this environment has certainly been painful for municipal investors, the drawdown has created significantly improved opportunities and entry points. Municipal to Treasury ratios ended the period elevated but at far better levels than in 2021. Municipal credit spreads have widened substantially while the underlying fundamental credit of municipalities remains strong following trillions of dollars in government stimulus. We believe investors will continue to return to the municipal market in the latter half of 2023, attracted by increased yields, positive fundamental strength, and good relative value.
8 | Allspring California Tax-Free Fund
Performance highlights (unaudited)
Duration, yield-curve positioning, and sector allocation detracted from relative performance.
Security selection contributed marginally. Duration for the portfolio was slightly longer than its primary benchmark when the period began. We extended duration over the period with purchases at the long end of the curve and extended duration by about 6/10ths of a year longer than the benchmark, and the Fund performed well in the second half of the year. Similarly, yield-curve positioning was a modest detractor as we were underweight the better-performing shorter end of the yield curve and overweight the 20-year-and-longer end of the curve, which lagged the index. An overweight to bonds with 5% or higher coupons helped performance as these bonds tend to perform well in periods of rising rates.
Effective maturity distribution as of June 30, 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. |
For the Bloomberg California Municipal Bond Index, AA-rated and A-rated credits were the strongest performers. The portfolio was underweight AA-rated and overweight A-rated. The portfolio was also overweight very high-grade AAA-rated bonds, which was the worst-performing portion of in the index. The Fund was also underweight BBB-rated bonds, though not all BBB-rated bonds performed equally, with challenging liquidity, particularly in the second half of the period. We continue to use our strong credit research capabilities to identify relative-value opportunities within the A-rated and lower segments. Sector allocation detracted during the period, with an overweight to revenue bonds and an underweight to GO bonds. The main sub-sector overweights included special tax, hospitals, housing, and water/sewer. Local GO bonds were one of the strongest performers in the index during the period, and the underweight to local GO bonds detracted from performance. Contributors include our overweight to industrial development revenue/pollution control revenue, which was the best-performing sub-sector during the period, as well as our overweight to special tax, which outperformed the index.
The outlook remains favorable for active bond management, in our view.
We believe the outlook for bond selection remains favorable. Increased dispersion within rating tiers and sectors offers the opportunity for differentiation among credits. As the period ended, primary and secondary market opportunities were favorable, with benchmark municipal yields elevated relative to the beginning of the period and wider credit spreads.
Allspring California Tax-Free Fund | 9
Fund expenses (unaudited)
Fund expenses
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 January 1, 2023 to June 30, 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 1-1-2023 | Ending account value 6-30-2023 | Expenses paid during the period1 | Annualized net expense ratio | |
Class A | ||||
Actual | $1,000.00 | $1,019.67 | $3.76 | 0.75 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.08 | $3.76 | 0.75 % |
Class C | ||||
Actual | $1,000.00 | $1,016.76 | $7.50 | 1.50 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.36 | $7.50 | 1.50 % |
Administrator Class | ||||
Actual | $1,000.00 | $1,020.68 | $2.76 | 0.55 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.07 | $2.76 | 0.55 % |
Institutional Class | ||||
Actual | $1,000.00 | $1,021.03 | $2.41 | 0.48 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.41 | $2.41 | 0.48 % |
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 181 divided by 365 (to reflect the one-half-year period). |
10 | Allspring California Tax-Free Fund
Portfolio of investments—June 30, 2023
Portfolio of investments
Principal | Value | |||||
Closed-end fund obligations: 0.71% | ||||||
California: 0.71% | ||||||
Nuveen California AMT-Free Quality Municipal Income Fund Preferred Shares Series A (54 shares) 4.46%144Aø | $ | 5,400,000 | $5,400,000 | |||
Total closed-end fund obligations (Cost $5,400,000) | 5,400,000 | |||||
Interest rate | Maturity date | |||||
Municipal obligations: 96.43% | ||||||
California: 92.55% | ||||||
Airport revenue: 5.81% | ||||||
California Municipal Finance Authority LAX Integrated Express Solutions LLC Series A AMT | 5.00 % | 12-31-2043 | 5,730,000 | 5,820,779 | ||
City of Los Angeles Department of Airports Series A AMT | 5.00 | 5-15-2047 | 5,000,000 | 5,124,111 | ||
County of Sacramento Airport System Revenue Series C AMT | 5.00 | 7-1-2038 | 3,000,000 | 3,130,837 | ||
Norman Y Mineta San Jose International Airport Series A AMT | 5.00 | 3-1-2047 | 4,000,000 | 4,080,812 | ||
Norman Y Mineta San Jose International Airport Series B | 5.00 | 3-1-2042 | 1,750,000 | 1,824,153 | ||
San Diego County Regional Airport Authority Series A | 5.00 | 7-1-2044 | 3,045,000 | 3,239,587 | ||
San Diego County Regional Airport Authority Series B AMT | 5.00 | 7-1-2056 | 6,040,000 | 6,244,869 | ||
San Francisco City & County Airport Commission San Francisco International Airport Series A AMT | 4.00 | 5-1-2052 | 1,500,000 | 1,403,339 | ||
San Francisco City & County Airport Commission San Francisco International Airport Series A AMT | 5.00 | 5-1-2047 | 7,715,000 | 7,877,388 | ||
San Francisco City & County Airport Commission San Francisco International Airport Series A AMT | 5.00 | 5-1-2049 | 5,000,000 | 5,155,799 | ||
43,901,674 | ||||||
Education revenue: 8.44% | ||||||
California Educational Facilities Authority Loma Linda University Series A | 5.00 | 4-1-2042 | 2,645,000 | 2,730,525 | ||
California Municipal Finance Authority Biola University, Inc. | 5.00 | 10-1-2035 | 600,000 | 619,567 | ||
California Municipal Finance Authority California Baptist University Series A144A | 5.00 | 11-1-2025 | 660,000 | 663,101 | ||
California Municipal Finance Authority California Institute of the Arts | 4.00 | 10-1-2046 | 1,930,000 | 1,654,747 | ||
California Municipal Finance Authority California Institute of the Arts | 4.00 | 10-1-2051 | 1,150,000 | 955,547 | ||
California Municipal Finance Authority Literacy First Charter School Issuer LLC Series A | 5.00 | 12-1-2039 | 1,390,000 | 1,419,231 | ||
California Municipal Finance Authority Samuel Merritt University | 5.25 | 6-1-2053 | 9,500,000 | 10,161,441 | ||
California Municipal Finance Authority STREAM Charter School Series A144A | 5.00 | 6-15-2041 | 925,000 | 870,630 | ||
California Municipal Finance Authority STREAM Charter School Series A144A | 5.00 | 6-15-2051 | 1,265,000 | 1,132,190 | ||
California Municipal Finance Authority University of the Pacific Series A | 4.00 | 11-1-2042 | 1,600,000 | 1,570,879 | ||
California School Finance Authority Aspire Public Schools Obligated Group Series A144A | 4.00 | 8-1-2051 | 775,000 | 637,355 | ||
California School Finance Authority Aspire Public Schools Obligated Group Series A144A | 5.00 | 8-1-2050 | 3,540,000 | 3,491,249 | ||
California School Finance Authority Bright Star Schools Obligated Group144A | 5.00 | 6-1-2047 | 1,000,000 | 917,943 | ||
The accompanying notes are an integral part of these financial statements.
Allspring California Tax-Free Fund | 11
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
California School Finance Authority Bright Star Schools Obligated Group144A | 5.00 % | 6-1-2054 | $ | 1,000,000 | $895,092 | |
California School Finance Authority Girls Athletic Leadership Schools Los Angeles Series A144A | 4.00 | 6-1-2051 | 905,000 | 644,128 | ||
California School Finance Authority Green Dot Public Schools Obligated Group Series A144A | 4.00 | 8-1-2025 | 475,000 | 472,291 | ||
California School Finance Authority Green Dot Public Schools Obligated Group Series A144A | 5.00 | 8-1-2035 | 2,525,000 | 2,566,109 | ||
California School Finance Authority Kipp SoCal Public Schools Obligated Group Series A144A | 5.00 | 7-1-2035 | 1,000,000 | 1,020,285 | ||
California School Finance Authority Lifeline Education Charter School, Inc. Series A144A | 5.00 | 7-1-2045 | 800,000 | 741,632 | ||
California School Finance Authority Rocketship Education Obligated Group Series A144A | 5.00 | 6-1-2036 | 945,000 | 931,710 | ||
California School Finance Authority Rocketship Education Obligated Group Series A144A | 5.00 | 6-1-2046 | 2,100,000 | 1,933,307 | ||
California School Finance Authority Santa Clarita Valley International Charter School Series A144A | 4.00 | 6-1-2041 | 500,000 | 415,231 | ||
California School Finance Authority Santa Clarita Valley International Charter School Series A144A | 4.00 | 6-1-2051 | 650,000 | 495,027 | ||
California State University Series A | 5.00 | 11-1-2045 | 6,400,000 | 6,660,485 | ||
California State University Series A | 5.00 | 11-1-2047 | 1,000,000 | 1,052,668 | ||
California Statewide Communities Development Authority California Baptist University Series A144A | 5.00 | 11-1-2032 | 1,135,000 | 1,163,266 | ||
California Statewide Communities Development Authority California Baptist University Series A144A | 5.00 | 11-1-2041 | 2,875,000 | 2,854,350 | ||
Fullerton Public Financing Authority Marshall B Ketchum University Series A | 4.00 | 2-1-2051 | 2,500,000 | 2,355,928 | ||
University of California Series BN | 5.00 | 5-15-2043 | 4,000,000 | 4,535,734 | ||
University of California Series BN | 5.00 | 5-15-2044 | 2,630,000 | 2,973,616 | ||
University of California Series K | 4.00 | 5-15-2046 | 5,295,000 | 5,279,642 | ||
63,814,906 | ||||||
GO revenue: 17.47% | ||||||
Barstow Unified School District Series C (AGM Insured) | 5.00 | 8-1-2050 | 1,195,000 | 1,293,501 | ||
Bassett Unified School District Series B (BAM Insured) | 5.00 | 8-1-2027 | 1,050,000 | 1,096,917 | ||
Centinela Valley Union High School District Series C | 5.00 | 8-1-2035 | 2,000,000 | 2,042,722 | ||
Cerritos Community College District Series D CAB¤ | 0.00 | 8-1-2029 | 1,750,000 | 1,445,434 | ||
Cerritos Community College District Series D CAB¤ | 0.00 | 8-1-2033 | 1,500,000 | 1,059,858 | ||
College of the Sequoias Tulare Area Improvement District No. 3 Series A (AGC Insured)¤ | 0.00 | 8-1-2024 | 1,000,000 | 962,230 | ||
Compton Community College District Series C CAB¤ | 0.00 | 8-1-2035 | 3,445,000 | 2,180,164 | ||
Delano Joint Union High School District Series B (AGM Insured) | 5.75 | 8-1-2035 | 4,510,000 | 4,518,361 | ||
Escondido Union High School District Series A (AGC Insured)¤ | 0.00 | 8-1-2027 | 8,385,000 | 7,362,517 | ||
Inglewood Unified School District Election of 2012 Series B (BAM Insured) | 5.00 | 8-1-2036 | 200,000 | 212,027 | ||
Inglewood Unified School District Election of 2012 Series B (BAM Insured) | 5.00 | 8-1-2038 | 500,000 | 524,685 | ||
Long Beach Unified School District Series A | 5.50 | 8-1-2026 | 95,000 | 95,154 | ||
The accompanying notes are an integral part of these financial statements.
12 | Allspring California Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
Long Beach Unified School District Series B¤ | 0.00 % | 8-1-2035 | $ | 2,000,000 | $1,276,238 | |
Long Beach Unified School District Series C | 4.00 | 8-1-2053 | 10,000,000 | 9,772,697 | ||
Lynwood Unified School District Series A (AGM Insured) | 5.00 | 8-1-2033 | 5,000 | 5,006 | ||
Merced City School District | 5.00 | 8-1-2045 | 1,000,000 | 1,030,277 | ||
Merced Union High School District Series C CAB¤ | 0.00 | 8-1-2032 | 3,380,000 | 2,436,998 | ||
Mount San Antonio Community College District Series A CAB¤ | 0.00 | 8-1-2024 | 1,610,000 | 1,555,408 | ||
Norwalk-La Mirada Unified School District Series D (AGM Insured)¤ | 0.00 | 8-1-2023 | 1,500,000 | 1,496,398 | ||
Norwalk-La Mirada Unified School District Series F | 5.00 | 8-1-2051 | 7,000,000 | 7,653,731 | ||
Oakland Unified School District/Alameda County | 5.50 | 8-1-2023 | 260,000 | 260,396 | ||
Oakland Unified School District/Alameda County Series A | 5.00 | 8-1-2040 | 3,600,000 | 3,751,698 | ||
Paramount Unified School District CAB¤ | 0.00 | 8-1-2033 | 2,500,000 | 1,724,979 | ||
Pleasanton Unified School District | 4.00 | 8-1-2052 | 9,340,000 | 9,171,361 | ||
Pomona Unified School District Series A (NPFGC Insured) | 6.55 | 8-1-2029 | 1,295,000 | 1,445,915 | ||
Poway Unified School District Facilities Improvement District No. 2007-1 Series A¤ | 0.00 | 8-1-2024 | 1,800,000 | 1,739,042 | ||
Rialto Unified School District Series A (AGM Insured)¤ | 0.00 | 8-1-2026 | 3,320,000 | 3,001,358 | ||
Sacramento City Unified School District Series 2013-A (BAM Insured) | 5.25 | 8-1-2033 | 1,000,000 | 1,001,321 | ||
Sacramento City Unified School District Series C-1 (AGM Insured) | 5.00 | 8-1-2033 | 2,735,000 | 2,856,976 | ||
San Bernardino City Unified School District Series C (AGM Insured) | 5.00 | 8-1-2040 | 8,000,000 | 8,226,784 | ||
San Bernardino Community College District Series D | 5.00 | 8-1-2045 | 2,000,000 | 2,084,277 | ||
San Diego Unified School District Series I | 4.00 | 7-1-2047 | 2,025,000 | 1,999,155 | ||
San Gorgonio Memorial Health Care District | 5.00 | 8-1-2032 | 1,750,000 | 1,731,012 | ||
San Gorgonio Memorial Health Care District | 5.50 | 8-1-2028 | 2,525,000 | 2,526,548 | ||
San Rafael City High School District Series B (NPFGC Insured)¤ | 0.00 | 8-1-2023 | 1,260,000 | 1,256,775 | ||
San Rafael City High School District Series C | 4.00 | 8-1-2043 | 1,500,000 | 1,505,170 | ||
Sanger Unified School District (NPFGC Insured) | 5.60 | 8-1-2023 | 5,000 | 5,008 | ||
Santa Ana Unified School District Series B (AGC Insured)¤ | 0.00 | 8-1-2038 | 15,000,000 | 7,986,773 | ||
Sierra Joint Community College District Series C | 4.00 | 8-1-2053 | 4,000,000 | 3,924,376 | ||
Sierra Kings Health Care District | 5.00 | 8-1-2028 | 1,000,000 | 1,035,059 | ||
Sierra Kings Health Care District | 5.00 | 8-1-2032 | 1,500,000 | 1,554,274 | ||
Sierra Kings Health Care District | 5.00 | 8-1-2037 | 1,750,000 | 1,795,626 | ||
Sonoma Valley Unified School District Series A¤ | 0.00 | 8-1-2027 | 1,020,000 | 885,278 | ||
State of California | 5.00 | 9-1-2032 | 5,100,000 | 5,112,195 | ||
State of California | 5.00 | 8-1-2046 | 10,000,000 | 10,477,946 | ||
Stockton Unified School District Series A (AGM Insured) | 5.00 | 8-1-2038 | 1,025,000 | 1,038,107 | ||
Tulare Local Health Care District (BAM Insured) | 4.00 | 8-1-2039 | 1,850,000 | 1,872,998 | ||
Washington Township Health Care District Series B | 5.50 | 8-1-2038 | 1,500,000 | 1,534,983 | ||
West Contra Costa Unified School District Series B | 6.00 | 8-1-2027 | 1,080,000 | 1,207,899 | ||
Wiseburn School District (AGC Insured)¤ | 0.00 | 8-1-2027 | 1,525,000 | 1,336,358 | ||
132,069,970 | ||||||
Health revenue: 13.15% | ||||||
ABAG Finance Authority for Nonprofit Corps Odd Fellows Home of California Series A | 5.00 | 4-1-2042 | 1,100,000 | 1,101,391 | ||
California HFFA Cedars-Sinai Medical Center Obligated Group Series B | 4.00 | 8-15-2039 | 10,500,000 | 10,549,632 | ||
California HFFA Children’s Hospital Los Angeles Obligated Group Series A | 5.00 | 8-15-2047 | 10,050,000 | 10,081,300 | ||
The accompanying notes are an integral part of these financial statements.
Allspring California Tax-Free Fund | 13
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
California HFFA El Camino Hospital | 5.00 % | 2-1-2035 | $ | 3,000,000 | $3,175,966 | |
California HFFA Kaiser Foundation Hospitals Series A-2 | 4.00 | 11-1-2051 | 3,000,000 | 2,915,011 | ||
California HFFA Lundquist Institute For Biomedical Innovation at Harbor-UCLA Medical Center | 5.00 | 9-1-2048 | 6,095,000 | 6,172,705 | ||
California HFFA Marshall Medical Center Series A | 4.00 | 11-1-2040 | 1,375,000 | 1,387,593 | ||
California HFFA On Lok Senior Health Services Obligated Group | 5.00 | 8-1-2040 | 700,000 | 724,093 | ||
California HFFA On Lok Senior Health Services Obligated Group | 5.00 | 8-1-2050 | 1,000,000 | 1,014,590 | ||
California HFFA Sutter Health Obligated Group Series A | 4.00 | 11-15-2048 | 5,000,000 | 4,892,711 | ||
California HFFA Sutter Health Obligated Group Series B | 5.00 | 11-15-2046 | 5,000,000 | 5,235,411 | ||
California Municipal Finance Authority Channing House Series A | 5.00 | 5-15-2034 | 1,000,000 | 1,080,058 | ||
California Municipal Finance Authority Community Hospitals of Central California Obligated Group Series A | 4.00 | 2-1-2051 | 1,500,000 | 1,377,463 | ||
California Municipal Finance Authority Eisenhower Medical Center Series A | 5.00 | 7-1-2047 | 1,400,000 | 1,419,477 | ||
California Municipal Finance Authority HumanGood California Obligated Group | 4.00 | 10-1-2049 | 2,250,000 | 2,018,015 | ||
California Municipal Finance Authority Inland Christian Home, Inc. | 4.00 | 12-1-2039 | 1,240,000 | 1,256,041 | ||
California Municipal Finance Authority Inland Christian Home, Inc. | 4.00 | 12-1-2049 | 2,915,000 | 2,883,642 | ||
California Municipal Finance Authority Open Door Community Health Centers | 4.00 | 9-15-2046 | 3,300,000 | 3,285,266 | ||
California Municipal Finance Authority Open Door Community Health Centers | 4.00 | 9-15-2051 | 3,885,000 | 3,820,030 | ||
California Municipal Finance Authority Town & Country Manor of the Christian & Missionary Alliance | 5.00 | 7-1-2039 | 1,000,000 | 1,080,619 | ||
California Municipal Finance Authority Town and Country Manor of the Christian and Missionary Alliance | 5.00 | 7-1-2049 | 2,650,000 | 2,793,266 | ||
California PFA Henry Mayo Newhall Hospital Obligated Group | 5.00 | 10-15-2037 | 500,000 | 508,646 | ||
California PFA Henry Mayo Newhall Hospital Obligated Group | 5.00 | 10-15-2047 | 5,365,000 | 5,368,767 | ||
California PFA Kendal at Sonoma Obligated Group Series A144A | 5.00 | 11-15-2051 | 1,255,000 | 1,101,827 | ||
California PFA Kendal at Sonoma Obligated Group Series A144A | 5.00 | 11-15-2056 | 1,235,000 | 1,067,200 | ||
California Statewide Communities Development Authority Adventist Health System/West Obligated Group Series A | 5.00 | 3-1-2045 | 2,500,000 | 2,531,329 | ||
California Statewide Communities Development Authority Adventist Health System/West Obligated Group Series A | 5.00 | 3-1-2048 | 5,000,000 | 5,070,701 | ||
California Statewide Communities Development Authority Enloe Medical Center Obligated Group Series A (AGM Insured) | 5.25 | 8-15-2052 | 2,000,000 | 2,130,057 | ||
California Statewide Communities Development Authority Loma Linda University Medical Center Obligated Group Series A | 5.25 | 12-1-2044 | 5,150,000 | 5,099,512 | ||
California Statewide Communities Development Authority Marin General Hospital Obligated Group Series A | 5.00 | 8-1-2036 | 700,000 | 726,659 | ||
California Statewide Communities Development Authority Marin General Hospital Obligated Group Series A | 5.00 | 8-1-2037 | 500,000 | 515,622 | ||
California Statewide Communities Development Authority Marin General Hospital Obligated Group Series A | 5.00 | 8-1-2038 | 450,000 | 462,066 | ||
California Statewide Communities Development Authority Redwoods a Community of Seniors | 5.13 | 11-15-2035 | 1,500,000 | 1,511,583 | ||
Palomar Health Obligated Group | 5.00 | 11-1-2042 | 4,000,000 | 4,051,273 | ||
Washington Township Health Care District Series A | 5.00 | 7-1-2042 | 1,000,000 | 994,250 | ||
99,403,772 | ||||||
The accompanying notes are an integral part of these financial statements.
14 | Allspring California Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue: 13.09% | ||||||
Alameda County Joint Powers Authority Multiple Capital Projects Series A | 5.00 % | 12-1-2034 | $ | 1,005,000 | $1,012,932 | |
Anaheim Public Financing Authority Series A | 5.00 | 5-1-2039 | 3,000,000 | 3,049,503 | ||
Anaheim Public Financing Authority Series C (AGM Insured)¤ | 0.00 | 9-1-2025 | 10,000,000 | 9,275,554 | ||
California Community Housing Agency Annadel Apartments Series A144A | 5.00 | 4-1-2049 | 3,000,000 | 2,479,672 | ||
California Community Housing Agency Creekwood Apartments Series A144A | 4.00 | 2-1-2056 | 3,000,000 | 2,086,116 | ||
California Community Housing Agency Serenity at Larkspur Apartments Series A144A | 5.00 | 2-1-2050 | 3,000,000 | 2,469,946 | ||
California Enterprise Development Authority County of Riverside CA | 4.00 | 11-1-2049 | 1,900,000 | 1,838,155 | ||
California Housing Finance Agency Series 2 | 4.00 | 3-20-2033 | 8,139,968 | 7,993,431 | ||
California Housing Finance Agency Series 2021-2 (FHLMC Insured) | 3.75 | 3-25-2035 | 124,081 | 120,588 | ||
California Infrastructure & Economic Development Bank California State Teachers’ Retirement System | 5.00 | 8-1-2044 | 4,000,000 | 4,299,085 | ||
California Infrastructure & Economic Development Bank South Monterey County Joint Union High School District | 5.75 | 8-15-2029 | 2,150,000 | 2,151,643 | ||
California Municipal Finance Authority Caritas Corp. Series B | 4.00 | 8-15-2051 | 870,000 | 747,455 | ||
California Municipal Finance Authority CHF-Davis I LLC | 5.00 | 5-15-2051 | 6,700,000 | 6,784,393 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 4.00 | 5-15-2033 | 600,000 | 612,018 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 4.00 | 5-15-2034 | 700,000 | 714,322 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 4.00 | 5-15-2035 | 700,000 | 709,243 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 4.00 | 5-15-2036 | 600,000 | 602,751 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 4.00 | 5-15-2037 | 700,000 | 695,673 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 4.00 | 5-15-2038 | 750,000 | 737,893 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 4.00 | 5-15-2040 | 1,100,000 | 1,064,863 | ||
California Municipal Finance Authority CHF-Riverside II LLC | 5.00 | 5-15-2029 | 625,000 | 670,155 | ||
California Municipal Finance Authority CHF-Riverside II LLC | 5.00 | 5-15-2052 | 5,650,000 | 5,729,533 | ||
California Municipal Finance Authority Senior Caritas Projects Series A | 5.00 | 8-15-2029 | 500,000 | 523,976 | ||
California Municipal Finance Authority Special Finance Agency Latitude33 Series A144A | 4.00 | 12-1-2045 | 1,500,000 | 1,182,764 | ||
California Municipal Finance Authority Special Finance Agency XII Allure Apartments Series A2144A | 4.38 | 8-1-2049 | 1,800,000 | 1,393,287 | ||
California State Public Works Board Various Capital Projects Series I | 5.50 | 11-1-2033 | 2,000,000 | 2,012,961 | ||
California Statewide Communities Development Authority Poway RHF Housing, Inc. Series A | 5.25 | 11-15-2035 | 1,500,000 | 1,512,250 | ||
California Statewide Communities Development Authority Uptown Newport Building Owner LP Series BB (East West Bank LOC)ø | 4.09 | 3-1-2057 | 3,020,000 | 3,020,000 | ||
California Statewide Communities Development Authority Community Improvement Authority 1818 Platinum Triangle- Anaheim Series B144A | 4.00 | 4-1-2057 | 1,000,000 | 690,309 | ||
The accompanying notes are an integral part of these financial statements.
Allspring California Tax-Free Fund | 15
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
California Statewide Communities Development Authority Community Improvement Authority Altana Apartments Series A-2144A | 4.00 % | 10-1-2056 | $ | 2,000,000 | $1,474,289 | |
California Statewide Communities Development Authority Community Improvement Authority Theo Apartments Series B144A | 4.00 | 5-1-2057 | 1,500,000 | 1,021,022 | ||
California Statewide Communities Development Authority Community Improvement Authority Towne at Glendale Apartments144A | 5.00 | 9-1-2037 | 965,000 | 962,997 | ||
Compton PFA144A | 4.00 | 9-1-2027 | 5,620,000 | 5,524,744 | ||
Fresno Joint Powers Financing Authority Series A (AGM Insured) | 4.00 | 4-1-2046 | 1,225,000 | 1,220,309 | ||
Independent Cities Finance Authority Millennium Housing of California | 5.00 | 5-15-2048 | 2,000,000 | 2,059,510 | ||
Independent Cities Finance Authority San Juan Mobile Estates | 5.00 | 8-15-2030 | 1,000,000 | 1,024,984 | ||
Independent Cities Finance Authority Santa Rosa Leisure Mobile Home Park | 5.00 | 8-15-2046 | 1,570,000 | 1,588,433 | ||
Los Angeles County Public Works Financing Authority Series A | 5.00 | 12-1-2039 | 2,860,000 | 2,921,485 | ||
Montclair Financing Authority Public Facilities Project (AGM Insured) | 5.00 | 10-1-2035 | 2,400,000 | 2,441,142 | ||
Riverside County Asset Leasing Corp. (NPFGC Insured)¤ | 0.00 | 6-1-2026 | 10,000,000 | 9,020,477 | ||
Sacramento City Financing Authority (BAM Insured) | 5.00 | 12-1-2035 | 1,300,000 | 1,360,405 | ||
Sacramento City Schools Joint Powers Financing Authority Series A (BAM Insured) | 5.00 | 3-1-2040 | 2,165,000 | 2,182,247 | ||
98,982,515 | ||||||
Miscellaneous revenue: 7.73% | ||||||
California Municipal Finance Authority Palomar Health Obligated Group Series A (AGM Insured) | 5.25 | 11-1-2052 | 1,500,000 | 1,601,724 | ||
California Municipal Finance Authority Southwestern Law School | 4.00 | 11-1-2041 | 575,000 | 519,704 | ||
California Statewide Communities Development Authority Series A | 4.00 | 9-2-2041 | 995,000 | 862,696 | ||
California Statewide Communities Development Authority Series A | 5.00 | 9-2-2047 | 1,995,000 | 2,027,125 | ||
City of Irvine Reassessment District No. 15-2 | 5.00 | 9-2-2025 | 725,000 | 741,819 | ||
City of Irvine Reassessment District No. 15-2 | 5.00 | 9-2-2026 | 400,000 | 410,348 | ||
City of Irvine Reassessment District No. 15-2 | 5.00 | 9-2-2042 | 1,495,000 | 1,510,203 | ||
City of Porterville Water Revenue Water System Financing Project (AGM Insured) | 4.00 | 8-15-2050 | 1,000,000 | 985,414 | ||
City of Torrance COP | 5.25 | 6-1-2039 | 5,385,000 | 5,490,963 | ||
City of Upland San Antonio Regional Hospital Obligated Group COP | 5.00 | 1-1-2047 | 1,955,000 | 1,995,597 | ||
Fullerton Joint Union High School District (BAM Insured) | 5.00 | 9-1-2035 | 1,385,000 | 1,444,686 | ||
Hayward Unified School District COP | 5.25 | 8-1-2052 | 8,000,000 | 8,297,146 | ||
Independent Cities Finance Authority (AGM Insured)144A | 4.00 | 6-1-2051 | 750,000 | 738,224 | ||
Independent Cities Finance Authority City of Compton Sales Tax Revenue (AGM Insured)144A | 4.00 | 6-1-2041 | 1,700,000 | 1,713,950 | ||
Jefferson Union High School District (BAM Insured) | 4.00 | 8-1-2045 | 1,400,000 | 1,398,850 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2038 | 2,615,000 | 2,486,458 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2041 | 2,250,000 | 2,122,454 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2046 | 4,395,000 | 4,089,822 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2051 | 2,340,000 | 2,130,656 | ||
Modesto Irrigation District Electric System Revenue Series A | 5.00 | 10-1-2040 | 3,500,000 | 3,612,132 | ||
Mountain House Public Financing Authority Series A | 5.00 | 12-1-2034 | 535,000 | 567,247 | ||
The accompanying notes are an integral part of these financial statements.
16 | Allspring California Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue (continued) | ||||||
North Coast County Water District (AGM Insured) | 4.00 % | 10-1-2051 | $ | 1,745,000 | $1,721,314 | |
Pajaro Valley Water Management Agency Series C (BAM Insured) | 4.13 | 3-1-2053 | 4,250,000 | 4,234,027 | ||
San Jose Unified School District (AGM Insured)¤ | 0.00 | 1-1-2026 | 3,175,000 | 2,936,597 | ||
San Marino Unified School District Series A COP | 5.00 | 12-1-2041 | 500,000 | 500,428 | ||
Stockton Unified School District COP | 5.00 | 2-1-2033 | 550,000 | 595,956 | ||
Sutter Butte Flood Control Agency Assessment District (BAM Insured) | 5.00 | 10-1-2040 | 3,545,000 | 3,658,574 | ||
58,394,114 | ||||||
Tax revenue: 13.67% | ||||||
California Statewide Communities Development Authority | 4.00 | 9-1-2051 | 1,150,000 | 981,659 | ||
California Statewide Communities Development Authority | 5.00 | 9-1-2047 | 1,420,000 | 1,442,037 | ||
California Statewide Communities Development Authority | 5.00 | 9-1-2048 | 5,000,000 | 5,075,172 | ||
Cathedral City Redevelopment Successor Agency Merged Redevelopment Project Series A (AGM Insured) | 5.00 | 8-1-2032 | 1,450,000 | 1,473,564 | ||
Cathedral City Redevelopment Successor Agency Merged Redevelopment Project Series A (AGM Insured) | 5.00 | 8-1-2033 | 880,000 | 894,219 | ||
Chino Community Facilities District | 5.00 | 9-1-2048 | 2,500,000 | 2,535,299 | ||
Chula Vista Community Facilities District No. 06-1 | 5.00 | 9-1-2043 | 445,000 | 455,722 | ||
Chula Vista Community Facilities District No. 06-1 | 5.00 | 9-1-2048 | 895,000 | 910,507 | ||
City & County of San Francisco Community Facilities District No. 2016-1 Improvement Area No. 1 Series 2021 | 4.00 | 9-1-2041 | 1,000,000 | 906,647 | ||
City & County of San Francisco Community Facilities District No. 2016-1 Improvement Area No. 1 Series 2021 | 4.00 | 9-1-2051 | 1,250,000 | 1,058,647 | ||
City & County of San Francisco Community Facilities District No. 2016-1 Improvement Area No. 1 Series A144A | 4.00 | 9-1-2052 | 1,750,000 | 1,469,593 | ||
City & County of San Francisco Community Facilities District No. 2016-1 Improvement Area No. 1 Series A | 5.00 | 9-1-2052 | 1,000,000 | 1,049,664 | ||
City of Beaumont Community Facilities District No. 93-1 | 5.00 | 9-1-2043 | 750,000 | 762,888 | ||
City of Beaumont Community Facilities District No. 93-1 | 5.00 | 9-1-2048 | 1,100,000 | 1,111,517 | ||
City of Beaumont Community Facilities District No. 93-1 Series A | 5.00 | 9-1-2043 | 750,000 | 762,888 | ||
City of Beaumont Community Facilities District No. 93-1 Series A | 5.00 | 9-1-2048 | 1,035,000 | 1,045,836 | ||
City of Belmont Community Facilities District No. 2000-1 (Ambac Insured) | 5.75 | 8-1-2030 | 3,190,000 | 3,620,513 | ||
City of Fremont Community Facilities District No. 1 | 5.00 | 9-1-2040 | 2,700,000 | 2,729,088 | ||
City of Los Angeles Community Facilities District No. 11 | 4.00 | 9-1-2046 | 1,250,000 | 1,086,433 | ||
City of Roseville Creekview Community Facilities District No. 1 | 5.00 | 9-1-2045 | 1,280,000 | 1,306,011 | ||
City of Sacramento Transient Occupancy Tax Revenue Series A | 5.00 | 6-1-2048 | 3,750,000 | 3,917,582 | ||
City of San Clemente Community Facilities District No. 2006-1 | 5.00 | 9-1-2040 | 965,000 | 975,396 | ||
City of San Clemente Community Facilities District No. 2006-1 | 5.00 | 9-1-2046 | 1,175,000 | 1,184,013 | ||
Corona Community Facilities District City of Corona No. 2018-1 Series A | 5.00 | 9-1-2048 | 1,000,000 | 1,013,511 | ||
Corona-Norco Unified School District Community Facilities District No. 16-1 | 5.00 | 9-1-2048 | 1,500,000 | 1,522,552 | ||
County of San Bernardino | 5.00 | 9-1-2048 | 1,200,000 | 1,218,041 | ||
Dinuba Redevelopment Agency Merged City Redevelopment Project (BAM Insured) | 5.00 | 9-1-2033 | 1,500,000 | 1,541,475 | ||
Elk Grove Finance Authority (BAM Insured) | 5.00 | 9-1-2038 | 1,500,000 | 1,559,043 | ||
Fairfield Community Facilities District No. 2019-1 Series A144A | 5.00 | 9-1-2050 | 3,000,000 | 3,042,307 | ||
The accompanying notes are an integral part of these financial statements.
Allspring California Tax-Free Fund | 17
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue (continued) | ||||||
Folsom Ranch Financing Authority City of Folsom Community Facilities District No. 20 | 5.00 % | 9-1-2048 | $ | 1,650,000 | $1,654,562 | |
Inglewood Redevelopment Successor Agency Subordinate Lien Merged Redevelopment Project Series A (BAM Insured) | 5.00 | 5-1-2034 | 500,000 | 536,301 | ||
Inglewood Redevelopment Successor Agency Subordinate Lien Merged Redevelopment Project Series A (BAM Insured) | 5.00 | 5-1-2038 | 305,000 | 322,830 | ||
Inland Valley Development Agency Series A | 5.25 | 9-1-2037 | 4,000,000 | 4,037,866 | ||
Irvine Facilities Financing Authority City of Irvine Community Facilities District No. 2013-3 Series A (BAM Insured) | 4.00 | 9-1-2058 | 2,200,000 | 2,138,127 | ||
Lafayette Redevelopment Successor Agency (AGM Insured) | 5.00 | 8-1-2033 | 1,500,000 | 1,538,606 | ||
Lafayette Redevelopment Successor Agency (AGM Insured) | 5.00 | 8-1-2038 | 1,635,000 | 1,671,719 | ||
Lancaster Redevelopment Successor Agency Combined Redevelopment Project Areas (AGM Insured) | 5.00 | 8-1-2033 | 1,200,000 | 1,278,650 | ||
Lee Lake Water District Financing Corp. Temescal Valley Water District Community Facilities District No. 4 Terramor | 4.00 | 9-1-2051 | 930,000 | 787,812 | ||
Marina Redevelopment Successor Agency Series A | 5.00 | 9-1-2033 | 340,000 | 358,095 | ||
Marina Redevelopment Successor Agency Series A | 5.00 | 9-1-2038 | 400,000 | 413,620 | ||
Marina Redevelopment Successor Agency Series B | 5.00 | 9-1-2033 | 250,000 | 263,359 | ||
Marina Redevelopment Successor Agency Series B | 5.00 | 9-1-2038 | 250,000 | 258,513 | ||
Oakland Redevelopment Successor Agency Series TE (AGM Insured) | 5.00 | 9-1-2035 | 2,545,000 | 2,646,553 | ||
Oakland Redevelopment Successor Agency Series TE (AGM Insured) | 5.00 | 9-1-2036 | 4,000,000 | 4,161,510 | ||
Orange County Community Facilities District No. 2015-1 Series A | 5.25 | 8-15-2045 | 1,950,000 | 1,978,584 | ||
Rancho Cucamonga Redevelopment Successor Agency Project Area (AGM Insured) | 5.00 | 9-1-2032 | 1,870,000 | 1,919,363 | ||
Redwood City Redevelopment Successor Agency (Ambac Insured)¤ | 0.00 | 7-15-2030 | 3,505,000 | 2,757,260 | ||
Rio Vista Community Facilities District No. 2018-1 | 5.00 | 9-1-2048 | 1,185,000 | 1,192,026 | ||
River Islands Public Financing Authority No. 2016 (AGM Insured) | 5.25 | 9-1-2052 | 2,000,000 | 2,201,105 | ||
Riverside County Community Facilities Districts No. 5-8 | 5.00 | 9-1-2048 | 1,600,000 | 1,624,055 | ||
Romoland School District Community Facilities District No. 2004-1 | 5.00 | 9-1-2048 | 3,000,000 | 3,019,145 | ||
San Diego Redevelopment Successor Agency (AGM Insured)¤ | 0.00 | 9-1-2023 | 885,000 | 880,231 | ||
San Francisco City & County Redevelopment Successor Agency Mission Bay South Redevelopment Project Series A | 5.00 | 8-1-2043 | 2,500,000 | 2,553,639 | ||
San Francisco City & County Redevelopment Successor Agency Mission Bay South Redevelopment Project Subordinate Bond Series D CAB144A¤ | 0.00 | 8-1-2026 | 4,000,000 | 3,478,854 | ||
San Francisco City & County Redevelopment Successor Agency Transbay Infrastructure Project Third Lien Series B (AGM Insured) | 5.00 | 8-1-2046 | 1,500,000 | 1,582,974 | ||
San Marcos Unified School District Community Facilities District No. 4 (BAM Insured) | 5.00 | 9-1-2034 | 1,705,000 | 1,739,593 | ||
San Marcos Unified School District Community Facilities District No. 5 (BAM Insured) | 5.00 | 9-1-2028 | 1,290,000 | 1,315,436 | ||
San Marcos Unified School District Community Facilities District No. 5 (BAM Insured) | 5.00 | 9-1-2029 | 1,325,000 | 1,351,126 | ||
Sonoma Community Development Successor Agency Sonoma Redevelopment Project (NPFGC Insured) | 5.00 | 6-1-2033 | 1,325,000 | 1,410,570 | ||
Tracy Community Facilities District No. 2016-01 | 5.00 | 9-1-2048 | 2,750,000 | 2,788,829 | ||
Tustin Community Facilities District No. 14-1 Series A | 5.00 | 9-1-2040 | 750,000 | 757,926 | ||
The accompanying notes are an integral part of these financial statements.
18 | Allspring California Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue (continued) | ||||||
Tustin Community Facilities District No. 14-1 Series A | 5.00 % | 9-1-2045 | $ | 1,000,000 | $1,007,412 | |
Union City Community Redevelopment Successor Agency Community Redevelopment Project Series A | 5.00 | 10-1-2036 | 1,000,000 | 1,041,647 | ||
103,319,722 | ||||||
Tobacco revenue: 0.82% | ||||||
California County Tobacco Securitization Agency Series B | 5.00 | 6-1-2050 | 1,125,000 | 1,128,400 | ||
California County Tobacco Securitization Agency Series B-2 CAB¤ | 0.00 | 6-1-2055 | 14,000,000 | 2,373,719 | ||
Golden State Tobacco Securitization Corp. Series A-1 | 5.00 | 6-1-2028 | 2,000,000 | 2,173,802 | ||
Tobacco Securitization Authority of Northern California Sacramento County Tobacco Securitization Corp. Series B2 CAB¤ | 0.00 | 6-1-2060 | 3,250,000 | 504,832 | ||
6,180,753 | ||||||
Transportation revenue: 2.10% | ||||||
Bay Area Toll Authority Series A (Barclays Bank PLC LOC)ø | 3.00 | 4-1-2055 | 14,000,000 | 14,000,000 | ||
Riverside County Transportation Commission Series B1 | 4.00 | 6-1-2046 | 2,000,000 | 1,893,776 | ||
15,893,776 | ||||||
Utilities revenue: 5.19% | ||||||
Banning Financing Authority Refunding Bond Electric System Project (AGM Insured) | 5.00 | 6-1-2037 | 5,000,000 | 5,170,213 | ||
California Community Choice Financing Authority Clean Energy Project Green Bond Series Cøø | 5.25 | 1-1-2054 | 2,500,000 | 2,615,247 | ||
City of Burbank Electric Revenue | 5.00 | 6-1-2053 | 5,620,000 | 6,084,609 | ||
Imperial Irrigation District Electric System Revenue Series A | 5.00 | 11-1-2040 | 3,715,000 | 3,853,441 | ||
Imperial Irrigation District Electric System Revenue Series A | 5.00 | 11-1-2045 | 1,060,000 | 1,098,192 | ||
Imperial Irrigation District Electric System Revenue Series C | 5.00 | 11-1-2038 | 2,500,000 | 2,613,779 | ||
M-S-R Energy Authority Series B | 7.00 | 11-1-2034 | 4,000,000 | 4,893,016 | ||
M-S-R Energy Authority Series C | 6.13 | 11-1-2029 | 935,000 | 1,003,284 | ||
Redding Joint Powers Financing Authority Series A | 5.00 | 6-1-2032 | 440,000 | 463,218 | ||
Roseville Natural Gas Financing Authority | 5.00 | 2-15-2025 | 1,930,000 | 1,950,285 | ||
Sacramento Municipal Utility District Series K | 5.00 | 8-15-2053 | 3,000,000 | 3,329,055 | ||
Southern California Public Power Authority Los Angeles Department of Water & Power Power System Revenue Series 1 | 5.25 | 7-1-2053 | 1,700,000 | 1,932,072 | ||
Southern California Public Power Authority Project No. 1 Series A | 5.25 | 11-1-2025 | 1,000,000 | 1,026,188 | ||
Walnut Energy Center Authority Series A | 5.00 | 1-1-2034 | 3,115,000 | 3,163,526 | ||
39,196,125 | ||||||
Water & sewer revenue: 5.08% | ||||||
Adelanto Public Utility Authority Series A (AGM Insured) | 5.00 | 7-1-2039 | 2,000,000 | 2,127,924 | ||
California Pollution Control Financing Authority Poseidon Resources Channelside LP AMT144A | 5.00 | 11-21-2045 | 2,615,000 | 2,670,677 | ||
City of Compton Sewer Revenue | 6.00 | 9-1-2039 | 1,775,000 | 1,762,829 | ||
City of Tulare Sewer Revenue (AGM Insured) | 5.00 | 11-15-2041 | 1,500,000 | 1,555,187 | ||
El Dorado Irrigation District Series A (AGM Insured) | 5.25 | 3-1-2039 | 2,000,000 | 2,028,120 | ||
Florin Resource Conservation District Series A (NPFGC Insured) | 5.00 | 9-1-2032 | 2,000,000 | 2,036,240 | ||
Los Angeles Department of Water & Power Water System Revenue Series B-4ø | 3.00 | 7-1-2035 | 11,000,000 | 11,000,000 | ||
The accompanying notes are an integral part of these financial statements.
Allspring California Tax-Free Fund | 19
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Water & sewer revenue (continued) | ||||||
Merced Irrigation District Series A (AGM Insured) | 5.00 % | 10-1-2038 | $ | 4,000,000 | $4,073,933 | |
Metropolitan Water District of Southern California Series A | 5.00 | 4-1-2053 | 10,000,000 | 11,149,716 | ||
38,404,626 | ||||||
699,561,953 | ||||||
Guam: 0.26% | ||||||
Miscellaneous revenue: 0.13% | ||||||
Territory of Guam Series F | 4.00 | 1-1-2036 | 1,000,000 | 954,156 | ||
Water & sewer revenue: 0.13% | ||||||
Guam Government Waterworks Authority Series A | 5.00 | 1-1-2050 | 1,000,000 | 1,015,068 | ||
1,969,224 | ||||||
Illinois: 1.48% | ||||||
GO revenue: 1.48% | ||||||
State of Illinois | 5.00 | 2-1-2025 | 10,000,000 | 10,214,013 | ||
State of Illinois Series B | 4.50 | 5-1-2048 | 1,000,000 | 983,389 | ||
11,197,402 | ||||||
New York: 1.99% | ||||||
Industrial development revenue: 0.68% | ||||||
New York Transportation Development Corp. Delta Air Lines, Inc. Series A AMT | 5.00 | 1-1-2029 | 5,000,000 | 5,186,924 | ||
Tax revenue: 0.65% | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Series E1 | 3.00 | 2-1-2051 | 3,360,000 | 2,558,495 | ||
New York State Dormitory Authority State of New York Personal Income Tax Revenue Series A | 3.00 | 3-15-2050 | 3,000,000 | 2,331,259 | ||
4,889,754 | ||||||
Water & sewer revenue: 0.66% | ||||||
New York City Municipal Water Finance Authority Series DD | 4.13 | 6-15-2047 | 5,000,000 | 4,985,570 | ||
15,062,248 | ||||||
Ohio: 0.08% | ||||||
Tobacco revenue: 0.08% | ||||||
Buckeye Tobacco Settlement Financing Authority Series B-3 CAB¤ | 0.00 | 6-1-2057 | 5,000,000 | 618,448 | ||
Texas: 0.07% | ||||||
Resource recovery revenue: 0.07% | ||||||
Port of Port Arthur Navigation District Motiva Enterprises LLCø | 4.31 | 4-1-2040 | 500,000 | 500,000 | ||
Total municipal obligations (Cost $740,309,403) | 728,909,275 | |||||
The accompanying notes are an integral part of these financial statements.
20 | Allspring California Tax-Free Fund
Portfolio of investments—June 30, 2023
Yield | Shares | Value | ||||
Short-term investments: 2.17% | ||||||
Investment companies: 2.17% | ||||||
Allspring Municipal Cash Management Money Market Fund Institutional Class♠∞ | 4.07 % | 16,406,337 | $16,409,618 | |||
Total short-term investments (Cost $16,409,371) | 16,409,618 | |||||
Total investments in securities (Cost $762,118,774) | 99.31 % | 750,718,893 | ||||
Other assets and liabilities, net | 0.69 | 5,196,920 | ||||
Total net assets | 100.00 % | $755,915,813 | ||||
144A | The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
¤ | The security is issued in zero coupon form with no periodic interest payments. |
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
♠ | 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: | |
AGC | Assured Guaranty Corporation |
AGM | Assured Guaranty Municipal |
Ambac | Ambac Financial Group Incorporated |
AMT | Alternative minimum tax |
BAM | Build America Mutual Assurance Company |
CAB | Capital appreciation bond |
COP | Certificate of participation |
FHLMC | Federal Home Loan Mortgage Corporation |
GO | General obligation |
HFFA | Health Facilities Financing Authority |
LOC | Letter of credit |
NPFGC | National Public Finance Guarantee Corporation |
PFA | Public Finance 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 Municipal Cash Management Money Market Fund Institutional Class | $11,287,598 | $371,693,843 | $(366,570,085 ) | $(1,442 ) | $(296 ) | $16,409,618 | 16,406,337 | $361,500 |
Futures contracts
Description | Number of contracts | Expiration date | Notional cost | Notional value | Unrealized gains | Unrealized losses |
Long | ||||||
10-Year U.S. Treasury Notes | 298 | 9-20-2023 | $34,054,826 | $33,455,156 | $0 | $(599,670 ) |
The accompanying notes are an integral part of these financial statements.
Allspring California Tax-Free Fund | 21
Statement of assets and liabilities—June 30, 2023
Financial statements
Statement of assets and liabilities
Assets | |
Investments in unaffiliated securities, at value (cost $745,709,403) | $734,309,275 |
Investments in affiliated securities, at value (cost $16,409,371) | 16,409,618 |
Cash | 143,288 |
Cash at broker segregated for futures contracts | 680,000 |
Receivable for interest | 8,221,168 |
Receivable for Fund shares sold | 467,329 |
Receivable for investments sold | 55,000 |
Receivable for daily variation margin on open futures contracts | 41,906 |
Prepaid expenses and other assets | 48,314 |
Total assets | 760,375,898 |
Liabilities | |
Payable for Fund shares redeemed | 3,472,265 |
Dividends payable | 573,417 |
Management fee payable | 173,515 |
Administration fees payable | 79,675 |
Distribution fee payable | 6,535 |
Trustees’ fees and expenses payable | 289 |
Accrued expenses and other liabilities | 154,389 |
Total liabilities | 4,460,085 |
Total net assets | $755,915,813 |
Net assets consist of | |
Paid-in capital | $848,941,365 |
Total distributable loss | (93,025,552 ) |
Total net assets | $755,915,813 |
Computation of net asset value and offering price per share | |
Net assets–Class A | $331,000,042 |
Shares outstanding–Class A1 | 31,467,022 |
Net asset value per share–Class A | $10.52 |
Maximum offering price per share – Class A2 | $11.02 |
Net assets–Class C | $9,863,564 |
Shares outstanding–Class C1 | 919,529 |
Net asset value per share–Class C | $10.73 |
Net assets–Administrator Class | $172,773,691 |
Shares outstanding–Administrator Class1 | 16,393,421 |
Net asset value per share–Administrator Class | $10.54 |
Net assets–Institutional Class | $242,278,516 |
Shares outstanding–Institutional Class1 | 22,989,173 |
Net asset value per share–Institutional Class | $10.54 |
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.
22 | Allspring California Tax-Free Fund
Statement of operations—year ended June 30, 2023
Statement of operations
Investment income | |
Interest | $32,139,007 |
Income from affiliated securities | 361,500 |
Total investment income | 32,500,507 |
Expenses | |
Management fee | 3,297,452 |
Administration fees | |
Class A | 568,444 |
Class C | 17,111 |
Administrator Class | 218,897 |
Institutional Class | 209,290 |
Shareholder servicing fees | |
Class A | 886,832 |
Class C | 26,680 |
Administrator Class | 542,819 |
Distribution fee | |
Class C | 80,041 |
Custody and accounting fees | 49,173 |
Professional fees | 82,720 |
Registration fees | 60,295 |
Shareholder report expenses | 40,353 |
Trustees’ fees and expenses | 23,191 |
Other fees and expenses | 16,606 |
Total expenses | 6,119,904 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (173,019 ) |
Class A | (221,359 ) |
Class C | (6,396 ) |
Administrator Class | (435,551 ) |
Net expenses | 5,283,579 |
Net investment income | 27,216,928 |
Realized and unrealized gains (losses) on investments | |
Net realized losses on | |
Unaffiliated securities | (33,468,976 ) |
Affiliated securities | (1,442 ) |
Futures contracts | (541,577 ) |
Net realized losses on investments | (34,011,995 ) |
Net change in unrealized gains (losses) on | |
Unaffiliated securities | 19,025,228 |
Affiliated securities | (296 ) |
Futures contracts | (599,670 ) |
Net change in unrealized gains (losses) on investments | 18,425,262 |
Net realized and unrealized gains (losses) on investments | (15,586,733 ) |
Net increase in net assets resulting from operations | $11,630,195 |
The accompanying notes are an integral part of these financial statements.
Allspring California Tax-Free Fund | 23
Statement of changes in net assets
Statement of changes in net assets
Year ended June 30, 2023 | Year ended June 30, 2022 | |||
Operations | ||||
Net investment income | $27,216,928 | $33,632,993 | ||
Net realized losses on investments | (34,011,995 ) | (19,017,886 ) | ||
Net change in unrealized gains (losses) on investments | 18,425,262 | (139,862,538 ) | ||
Net increase (decrease) in net assets resulting from operations | 11,630,195 | (125,247,431 ) | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class A | (11,004,801 ) | (12,231,031 ) | ||
Class C | (251,461 ) | (290,228 ) | ||
Administrator Class | (7,166,876 ) | (10,633,943 ) | ||
Institutional Class | (8,793,753 ) | (10,482,832 ) | ||
Total distributions to shareholders | (27,216,891 ) | (33,638,034 ) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class A | 1,788,917 | 18,756,448 | 8,830,381 | 104,258,640 |
Class C | 113,070 | 1,205,517 | 77,931 | 931,768 |
Administrator Class | 10,394,387 | 110,089,691 | 7,732,532 | 89,652,025 |
Institutional Class | 12,102,657 | 128,041,745 | 13,875,016 | 158,722,682 |
258,093,401 | 353,565,115 | |||
Reinvestment of distributions | ||||
Class A | 991,921 | 10,425,233 | 1,008,834 | 11,677,026 |
Class C | 23,289 | 249,534 | 24,246 | 287,042 |
Administrator Class | 664,062 | 6,992,839 | 907,189 | 10,502,816 |
Institutional Class | 365,863 | 3,853,429 | 392,088 | 4,547,445 |
21,521,035 | 27,014,329 | |||
Payment for shares redeemed | ||||
Class A | (10,050,368 ) | (106,466,759 ) | (11,212,029 ) | (130,013,134 ) |
Class C | (280,111 ) | (3,014,550 ) | (579,735 ) | (6,824,136 ) |
Administrator Class | (26,824,331 ) | (280,817,286 ) | (7,910,999 ) | (89,148,723 ) |
Institutional Class | (18,032,227 ) | (189,734,272 ) | (17,310,888 ) | (195,721,790 ) |
(580,032,867 ) | (421,707,783 ) | |||
Net decrease in net assets resulting from capital share transactions | (300,418,431 ) | (41,128,339 ) | ||
Total decrease in net assets | (316,005,127 ) | (200,013,804 ) | ||
Net assets | ||||
Beginning of period | 1,071,920,940 | 1,271,934,744 | ||
End of period | $755,915,813 | $1,071,920,940 | ||
The accompanying notes are an integral part of these financial statements.
24 | Allspring California Tax-Free Fund
Financial highlights
Financial highlights
(For a share outstanding throughout each period)
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class A | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.65 | $12.13 | $11.91 | $11.91 | $11.64 |
Net investment income | 0.33 | 0.30 | 0.32 | 0.35 | 0.37 |
Net realized and unrealized gains (losses) on investments | (0.13 ) | (1.48 ) | 0.22 | 0.00 1 | 0.28 |
Total from investment operations | 0.20 | (1.18 ) | 0.54 | 0.35 | 0.65 |
Distributions to shareholders from | |||||
Net investment income | (0.33 ) | (0.30 ) | (0.32 ) | (0.35 ) | (0.38 ) |
Net asset value, end of period | $10.52 | $10.65 | $12.13 | $11.91 | $11.91 |
Total return2 | 1.90 % | (9.90 )% | 4.59 % | 2.93 % | 5.70 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.83 % | 0.81 % | 0.81 % | 0.81 % | 0.83 % |
Net expenses | 0.75 % | 0.75 % | 0.75 % | 0.75 % | 0.75 % |
Net investment income | 3.10 % | 2.57 % | 2.66 % | 2.92 % | 3.22 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 17 % | 9 % | 23 % | 9 % |
Net assets, end of period (000s omitted) | $331,000 | $412,553 | $486,668 | $494,450 | $482,395 |
1 | Amount is less than $0.005. |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
Allspring California Tax-Free Fund | 25
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class C | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.86 | $12.37 | $12.14 | $12.15 | $11.87 |
Net investment income | 0.26 | 0.22 | 0.24 | 0.27 | 0.29 |
Net realized and unrealized gains (losses) on investments | (0.14 ) | (1.51 ) | 0.23 | (0.02 ) | 0.29 |
Total from investment operations | 0.12 | (1.29 ) | 0.47 | 0.25 | 0.58 |
Distributions to shareholders from | |||||
Net investment income | (0.25 ) | (0.22 ) | (0.24 ) | (0.26 ) | (0.30 ) |
Net asset value, end of period | $10.73 | $10.86 | $12.37 | $12.14 | $12.15 |
Total return1 | 1.16 % | (10.58 )% | 3.86 % | 2.08 % | 4.95 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.58 % | 1.56 % | 1.56 % | 1.56 % | 1.58 % |
Net expenses | 1.50 % | 1.50 % | 1.50 % | 1.50 % | 1.50 % |
Net investment income | 2.35 % | 1.80 % | 1.91 % | 2.18 % | 2.47 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 17 % | 9 % | 23 % | 9 % |
Net assets, end of period (000s omitted) | $9,864 | $11,548 | $19,066 | $27,413 | $32,758 |
1 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
26 | Allspring California Tax-Free Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Administrator Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.67 | $12.16 | $11.93 | $11.94 | $11.66 |
Net investment income | 0.35 | 0.32 | 0.34 | 0.37 | 0.40 |
Net realized and unrealized gains (losses) on investments | (0.13 ) | (1.49 ) | 0.24 | (0.01 ) | 0.28 |
Total from investment operations | 0.22 | (1.17 ) | 0.58 | 0.36 | 0.68 |
Distributions to shareholders from | |||||
Net investment income | (0.35 ) | (0.32 ) | (0.35 ) | (0.37 ) | (0.40 ) |
Net asset value, end of period | $10.54 | $10.67 | $12.16 | $11.93 | $11.94 |
Total return | 2.11 % | (9.77 )% | 4.89 % | 3.05 % | 5.99 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.77 % | 0.75 % | 0.75 % | 0.75 % | 0.77 % |
Net expenses | 0.55 % | 0.55 % | 0.55 % | 0.55 % | 0.55 % |
Net investment income | 3.27 % | 2.78 % | 2.86 % | 3.13 % | 3.43 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 17 % | 9 % | 23 % | 9 % |
Net assets, end of period (000s omitted) | $172,774 | $343,154 | $382,093 | $301,919 | $231,252 |
The accompanying notes are an integral part of these financial statements.
Allspring California Tax-Free Fund | 27
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Institutional Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.67 | $12.16 | $11.93 | $11.94 | $11.66 |
Net investment income | 0.36 | 0.33 | 0.35 | 0.38 | 0.41 |
Net realized and unrealized gains (losses) on investments | (0.13 ) | (1.49 ) | 0.23 | (0.01 ) | 0.28 |
Total from investment operations | 0.23 | (1.16 ) | 0.58 | 0.37 | 0.69 |
Distributions to shareholders from | |||||
Net investment income | (0.36 ) | (0.33 ) | (0.35 ) | (0.38 ) | (0.41 ) |
Net asset value, end of period | $10.54 | $10.67 | $12.16 | $11.93 | $11.94 |
Total return | 2.18 % | (9.71 )% | 4.96 % | 3.12 % | 6.07 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.50 % | 0.48 % | 0.48 % | 0.48 % | 0.50 % |
Net expenses | 0.48 % | 0.48 % | 0.48 % | 0.48 % | 0.48 % |
Net investment income | 3.36 % | 2.83 % | 2.93 % | 3.19 % | 3.49 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 17 % | 9 % | 23 % | 9 % |
Net assets, end of period (000s omitted) | $242,279 | $304,666 | $384,108 | $328,107 | $293,180 |
The accompanying notes are an integral part of these financial statements.
28 | Allspring California Tax-Free Fund
Notes to financial statements
Notes to financial statements
1.
ORGANIZATION
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring California Tax-Free Fund (the “Fund”) which is a non-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.
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.
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, 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.
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 and 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 received 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.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S.
Allspring California Tax-Free Fund | 29
Notes to financial statements
generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, 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 June 30, 2023, the aggregate cost of all investments for federal income tax purposes was $761,649,698 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $13,334,910 |
Gross unrealized losses | (24,865,385 ) |
Net unrealized losses | $(11,530,475 ) |
As of June 30, 2023, the Fund had capital loss carryforwards which consist of $47,829,369 in short-term capital losses and $33,723,516 in long-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.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2023:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Closed-end fund obligations | $0 | $5,400,000 | $0 | $5,400,000 |
Municipal obligations | 0 | 728,909,275 | 0 | 728,909,275 |
Short-term investments | ||||
Investment companies | 16,409,618 | 0 | 0 | 16,409,618 |
Total assets | $16,409,618 | $734,309,275 | $0 | $750,718,893 |
Liabilities | ||||
Futures contracts | $599,670 | $0 | $0 | $599,670 |
Total liabilities | $599,670 | $0 | $0 | $599,670 |
30 | Allspring California Tax-Free Fund
Notes to financial statements
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 year ended June 30, 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 | 0.400 % |
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 year ended June 30, 2023, the management fee was equivalent to an annual rate of 0.39% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.20% 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 | 0.15 % |
Class C | 0.15 |
Administrator Class | 0.10 |
Institutional Class | 0.08 |
Prior to June 30, 2023, the class-level administration fee for Class A and Class C was 0.16% of the average daily net assets of each respective class.
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 October 31, 2023 to waive fees and/or reimburse expenses to the extent necessary to cap
Allspring California Tax-Free Fund | 31
Notes to financial statements
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 June 30, 2023, the contractual expense caps are as follows:
EXPENSE RATIO CAPS | |
Class A | 0.75 % |
Class C | 1.50 |
Administrator Class | 0.55 |
Institutional Class | 0.48 |
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 year ended June 30, 2023, Allspring Funds Distributor received $4,527 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the year ended June 30, 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. Pursuant to these procedures, the Fund had $27,020,000, $49,021,389 and $(410,034) in interfund purchases, sales and net realized gains (losses), respectively, during the year ended June 30, 2023.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2023 were $119,382,709 and $429,977,834, respectively.
6.
DERIVATIVE TRANSACTIONS
During the year ended June 30, 2023, the Fund entered into futures contracts as a tactical move to take advantage of dislocation in the market. The Fund had an average notional amount of $7,899,940 in long futures contracts during the year ended June 30, 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.
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 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 year ended June 30, 2023, there were no borrowings by the Fund under the agreement.
8.
DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid was $27,216,891 and $33,638,034 of tax-exempt income for the years ended June 30, 2023 and June 30, 2022, respectively.
32 | Allspring California Tax-Free Fund
Notes to financial statements
As of June 30, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | Unrealized losses | Capital loss carryforward |
$632,048 | $(11,530,475 ) | $(81,552,885 ) |
9.
CONCENTRATION RISK
The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state or territory of the U.S. Therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt fund. As of the end of the period, the Fund’s investments were concentrated in the state of California.
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.
Allspring California Tax-Free Fund | 33
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring California Tax-Free Fund (the Fund), one of the funds constituting Allspring Funds Trust, including the portfolio of investments, as of June 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of June 30, 2023, by correspondence with the custodian, transfer agent and brokers. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
August 25, 2023
34 | Allspring California Tax-Free Fund
Other information (unaudited)
Other information
Tax information
Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2023.
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 1-866-259-3305, 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 California Tax-Free Fund | 35
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 |
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 |
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.
36 | Allspring California Tax-Free 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 |
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 California Tax-Free Fund | 37
Other information (unaudited)
Officers1
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 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 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.
38 | Allspring California Tax-Free Fund
Other information (unaudited)
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 15-17, 2023 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring California Tax-Free Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2023, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
The Board noted that it initially approved the Advisory Agreements at a Board meeting held in May 2021, each for a two-year term, in advance of the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC,1 a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. (the “Transaction”). The Trustees also noted that, while they did not specifically consider the continuation of the Advisory Agreements in 2022 as a result of the two-year term that was approved in 2021, the Trustees received and considered certain information at a Board meeting held in April 2022 that was applicable to the Advisory Agreements, including an overview and financial review of the Allspring Global Investments business, information regarding certain ancillary agreements that were approved by the Board at the April 2022 Board meeting, and comparative data regarding Fund fees and expenses.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2023. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business. The Board also considered information about retention arrangements with respect to key personnel of Allspring Global Investments that were put in place in connection with the Transaction. The Board took into account information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the Transaction under a transition services agreement and the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
1
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
Allspring California Tax-Free Fund | 39
Other information (unaudited)
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, and Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2022. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was lower than the investment performance of its benchmark index, the Bloomberg Municipal Bond Index, for all periods under review, except that the investment performance of the Fund was higher than the investment performance of its benchmark index for the ten-year period under review. The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s investment performance.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for the Institutional Class, equal to the median net operating expense ratios of the expense Groups for the Class A shares, and in range of the median net operating expense ratios of the expense Groups for the Administrator Class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were in range of or lower than the sum of these average rates for the Fund’s expense Groups for all share classes.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received
40 | Allspring California Tax-Free Fund
Other information (unaudited)
information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Profitability
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and differences in how Allspring Global Investments calculates its pre-tax profit metric versus the methodology used when Allspring Funds Management was part of Wells Fargo. It was noted that the impact of such differences had only minor impact on the financial results presented. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser and fees earned in the past by Allspring Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund complex’s securities lending collateral.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
Allspring California Tax-Free Fund | 41
Other information (unaudited)
Liquidity risk management program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that operate as money market funds), including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund’s investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the “Council”) composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 16-17, 2023, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2022 through December 31, 2022 (the “Reporting Period”). The Report noted significant liquidity events impacting the Funds related to extended foreign market holidays as well as the difficulty of trading and settlement of most Russia-related securities due to sanctions activity. The Report noted that there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage the Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
42 | Allspring California Tax-Free 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
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.
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Contents
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The views expressed and any forward-looking statements are as of June 30, 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 High Yield Municipal Bond Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring High Yield Municipal Bond Fund for the 12-month period that ended June 30, 2023. Globally, stocks and bonds experienced heightened volatility through the period. The market was focused on persistently high inflation and the impact of ongoing aggressive central bank rate hikes. Compounding these concerns were the global reverberations of the Russia-Ukraine war. Riskier assets rallied in 2023, with anticipation of an end to the tight monetary policy despite concerns of a possible impending recession. After suffering deep and broad losses through 2022, bonds now benefit from a base of higher yields that can help generate higher income. However, ongoing rate hikes continued to be a headwind during recent months.
For the 12-month period, stocks generally outperformed bonds—both domestic U.S. and global. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 19.59%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 12.72%, while the MSCI EM Index (Net) (USD)3 had more muted performance, with a gain of 1.75%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -0.94%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 fell 1.83%, the Bloomberg Municipal Bond Index6 gained 3.19%, and the ICE BofA U.S. High Yield Index7 returned 8.97%.
Despite high inflation and central bank rate hikes, markets rallied.
Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong: July nonfarm payrolls grew by more than 500,000 and U.S. unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices—major contributors to recent overall inflation—fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with mortgage rates at a 13-year high. The Federal Reserve (Fed) raised the federal funds rate 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to further rate hikes.
August was a broadly challenging month. High inflation persisted, cresting 9% in the eurozone on an annual basis and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June peak. One positive was the resilient U.S. jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act. Its primary stated goals include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“ Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong. ”
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 the 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 High Yield Municipal Bond Fund
Letter to shareholders (unaudited)
In September, all asset classes suffered further major losses. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar weighed on results for investors holding non-U.S.-dollar assets. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The Bank of England (BoE) then stepped in and bought long-dated government bonds.
Equities had a reprieve in October. 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 increasing 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.
Financial markets cooled in December, with U.S. equities declining overall in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever, with generally flat 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 wound 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 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.
Markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks would 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 was not falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the BoE and the European Central Bank (ECB) both raised rates by 0.50%.
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 banking industry turmoil created an additional challenge for central banks in balancing inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. 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 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. ”
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.
Allspring High Yield Municipal Bond Fund | 3
Letter to shareholders (unaudited)
Economic data released in April pointed to global resilience, as Purchasing Managers Indexes1 in the U.S., U.K., and eurozone beat expectations and China reported first-quarter annualized economic growth of 4.5%. Despite banking industry stress, developed market stocks had monthly gains. The U.S. labor market remained strong, with a 3.5% jobless rate and monthly payroll gains above 200,000. However, uncertainty and inflationary concerns weighed on investors in the U.S. and abroad.
May was marked by a divergence between expanding activity in services and an overall contraction in manufacturing activity in the U.S., U.K., and eurozone. Core inflation remained elevated in the U.S. and Europe, despite the ongoing efforts of the Fed and ECB, which included rate hikes of 0.25% by both in May. Stubborn inflation and the resilient U.S. labor market led to expectations of further interest rate hikes, overall monthly declines across bond indexes, and mixed results for stocks in May. Investor worries over a U.S. debt ceiling impasse were modest, and market confidence was buoyed by a deal in late May to avert a potential U.S. debt default.
June featured the Fed’s first pause on interest rate hikes since March 2022, when it began its aggressive campaign to rein in inflation. However, core CPI, excluding food and energy prices, while continuing to decline, remained stubbornly high in June, at 4.8%, well above the Fed’s 2.0% target rate. With the U.S. unemployment rate still at 3.6%, near a historical low, and U.S. payrolls growing in June for the 30th consecutive month, expectations of more Fed rate hikes were reinforced. However, U.S. and global stocks had strong returns in June.
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
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.
1
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.
4 | Allspring High Yield Municipal Bond Fund
Letter to shareholders (unaudited)
Notice to Shareholders |
Beginning in July 2024, the Fund will be required by the Securities and Exchange Commission to send shareholders a paper copy of a new tailored shareholder report in place of the full shareholder report that you are now receiving. The tailored shareholder report will contain concise information about the Fund, including certain expense and performance information and fund statistics. If you wish to receive this new tailored shareholder report electronically, please follow the instructions on the back cover of this report. |
Other information that is currently included in the shareholder report, such as the Fund’s financial statements, will be available online and upon request, free of charge, in paper or electronic format. |
Allspring High Yield Municipal Bond Fund | 5
Performance highlights (unaudited)
Performance highlights
Investment objective | The Fund seeks high current income exempt from federal income tax, and capital appreciation. |
Manager | Allspring Funds Management, LLC |
Subadviser | Allspring Global Investments, LLC |
Portfolio managers | Dennis Derby, Terry J. Goode, Kerry Laurin |
Average annual total returns (%) as of June 30, 2023 | |||||||||
Including sales charge | Excluding sales charge | Expense ratios1 (%) | |||||||
Inception date | 1 year | 5 year | 10 year | 1 year | 5 year | 10 year | Gross | Net2 | |
Class A (WHYMX) | 1-31-2013 | -1.91 | 0.66 | 3.47 | 2.71 | 1.59 | 3.95 | 1.11 | 0.80 |
Class C (WHYCX) | 1-31-2013 | 0.94 | 0.83 | 3.33 | 1.94 | 0.83 | 3.33 | 1.86 | 1.55 |
Class R6 (EKHRX)3 | 7-31-2018 | – | – | – | 3.01 ♠ | 1.90 | 4.23 | 0.73 | 0.50 |
Administrator Class (WHYDX) | 1-31-2013 | – | – | – | 2.71 | 1.70 | 4.05 | 1.05 | 0.70 |
Institutional Class (WHYIX) | 1-31-2013 | – | – | – | 2.97 | 1.84 | 4.21 | 0.78 | 0.55 |
High Yield Municipal Bond Blended Index4 | – | – | – | – | 3.01 | 2.43 | 3.59 | – | – |
Bloomberg High Yield Municipal Bond Index5 | – | – | – | – | 2.85 | 2.79 | 4.17 | – | – |
Bloomberg Municipal Bond Index6 | – | – | – | – | 3.19 | 1.84 | 2.68 | – | – |
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.
♠ | Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the Net Asset Value (NAV) at which the shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles. |
1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the Financial Highlights of this report. |
2 | The manager has contractually committed through October 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.80% for Class A, 1.55% for Class C, 0.50% for Class R6, 0.70% for Administrator Class and 0.55% 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 High Yield Municipal Bond Blended Index is weighted 60% in the Bloomberg High Yield Municipal Bond Index and 40% in the Bloomberg Municipal Bond Index. You cannot invest directly in an index. |
5 | The Bloomberg High Yield Municipal Bond Index measures the non-investment-grade and nonrated U.S. dollar–denominated, fixed-rate, tax-exempt bond market within the 50 United States and four other qualifying regions (Washington, D.C.; Puerto Rico; Guam; and the Virgin Islands). The index allows state and local general obligation, revenue, insured, and prefunded bonds; however, historically the index has been composed of mostly revenue bonds. 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. |
6 | Allspring High Yield Municipal Bond Fund
Performance highlights (unaudited)
Growth of $10,000 investment as of June 30, 20231 |
1 | The chart compares the performance of Class A shares for the most recent ten years with the High Yield Municipal Bond Blended Index, Bloomberg High Yield Municipal Bond Index and Bloomberg Municipal Bond Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%. |
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. 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 municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.
Allspring High Yield Municipal Bond Fund | 7
Performance highlights (unaudited)
MANAGER’S DISCUSSION
Fund highlights
•The Fund (Class A, excluding sales charge) underperformed its benchmarks, the High Yield Municipal Bond Blended Index, the Bloomberg High Yield Municipal Bond Index, and the Bloomberg Municipal Bond Index, for the year that ended June 30, 2023.
•Underweights to tobacco and Puerto Rico detracted from performance. Overweight positions to leasing, education, and hospitals were detractors as well.
•Yield-curve positioning contributed to overall performance due to an overweight to the long-maturity segments, which underperformed in the index but overperformed in the portfolio due to credit selection.
•The Fund benefited from an overweight to the best-performing BBB-rated segment and an underweight to the weakest-performing AAA-rated segment.
• A shorter duration position at the beginning of the period contributed as rates increased over the year. The Fund added duration during market pullbacks.
Global economies increase lending rates in hopes of taming runaway inflation.
Entering 2022, the excitement of a post-pandemic world gave way to new whispers and fears of higher prices and broad-based inflation caused by supply chain bottlenecks, increased housing costs, wage increases, and employment market distortions. Those fears quickly became reality and prices began to rise at a historic rate. The U.S. Federal Open Market Committee acted quickly and with purpose: ending open market purchases, reducing its balance sheet, and raising the benchmark overnight lending rate at each monthly meeting through 2022 and early 2023. Fixed income and equity markets fell sharply but began to recover as annual inflation numbers peaked in June and began to recede.
U.S. unemployment, which reached a multigenerational high of more than 14% in the spring of 2020, fell throughout the past year and has settled below 4%. Employers continue to add jobs, especially in service-oriented industries, and the resulting wage increases have further contributed to inflationary pressures. After U.S. gross domestic product turned negative in the first and second quarters of 2022, it expanded at rates above 2% in each subsequent quarter. The federal funds rate, which began 2022 at 0.25% to 0.50%, was raised 10 consecutive times before a pause in June 2023. It now sits at 5.25% to 5.50% as the Federal Reserve (Fed) attempts to curb inflation. In this environment, some form of recession seems imminent.
In the wake of continued rate increases, U.S. fixed income yields rose dramatically as investors reacted to Fed actions, with the yield on the 10-year Treasury ending the period near 4%. Rising U.S. Treasury yields affected all fixed income sectors in 2022, with all seeing their worst returns in more than 40 years. The U.S. Treasury yield curve remained substantially inverted throughout the period, which has driven many investors into shorter-term interest-bearing vehicles, including money markets.
Municipals sold off drastically to start the period but began to rebound in the fourth quarter of 2022. The Bloomberg Municipal Bond Index fell nearly 8% and the broader municipal market had more than $124 billion in outflows before stabilizing early in 2023. For the first time in history, the municipal yield curve also inverted but not to the degree seen in Treasuries.
Credit quality as of June 30, 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. |
8 | Allspring High Yield Municipal Bond Fund
Performance highlights (unaudited)
While this environment has certainly been painful for municipal investors, the drawdown has created significantly improved opportunities and entry points. Municipal to Treasury ratios ended the period elevated but at far better levels than in 2021. Municipal credit spreads have widened substantially while the underlying fundamental credit of municipalities remains strong following trillions of dollars in government stimulus. We believe investors will continue to return to the municipal market in the latter half of 2023, attracted by increased yields, positive fundamental strength, and good relative value.
Factors across the market influenced Fund performance.
At the beginning of the fiscal year, the Fund was shorter relative to the index. Rates increased over the course of the year and management decided to extend duration during periods of market weakness, which was largely beneficial for the Fund’s performance. Additions to the portfolio over the past 12 months tended to be higher in credit quality, as spreads in the lower-rated investment-grade space and higher-quality below-investment-grade space were attractive and, in our opinion, offered more value than lower-rated high yield paper. This “high yield light” strategy capitalized on market disruptions and on ensuring the Fund was compensated for credit risks appropriately.
Effective maturity distribution as of June 30, 20231 |
1 | Figures represent the percentage of the Fund’s total investments. These amounts are subject to change and may have changed since the date specified. |
Duration, sector allocation, and quality allocation contributed to relative performance, while yield-curve positioning and individual security selection detracted.
We were overweight long maturities and underweight shorter and intermediate parts of the curve. The longer-duration paper in the portfolio outperformed the same maturities in the index due to security selection. The Fund maintained higher-than-typical liquidity so that the management team could be liquidity providers instead of liquidity takers. This was beneficial during market pullbacks, as the Fund was able to capitalize on market opportunities to add “high yield light” names, such as lower-rated airports.
We were overweight BBB-rated debt and A-rated debt for the period and underweight below-investment-grade for the period as we implemented our “high yield light” strategy of overweighting BBB-rated and A-rated paper. We remained underweight AA-rated debt and AAA-rated debt. Our substantial 2.4-year overweight to the BBB category added to performance as this was the overall best-performing space. Our underweight to AAA-rated bonds was beneficial. We anticipate investment-grade municipal defaults will remain rare, but we believe investors should continue to focus on security selection, especially within the lower-rated and nonrated sectors, as these are more likely to face credit event risk.
The Fund ended the year underweight general obligation (GO) bonds and slightly overweight revenue bonds. This detracted from performance as GO bonds performed well. However, our selection within the space was a positive as the Fund outperformed the index within that space. Revenue bonds underperformed relative to the index, with resource recovery being a detractor, while transportation, special tax, and leasing added to performance. Transportation had an overweight and was among the best-performing sectors in the index and the portfolio. Underexposure to senior living was somewhat beneficial to performance, while underexposure to industrial development revenue/pollution control revenue bonds, specifically tobacco bonds, detracted. Overweight exposures to New York, New Jersey, Illinois, and Colorado contributed to performance. Not having exposure to Puerto Rico was a detractor from performance for the year. Risks remain elevated in senior living and project finance sectors, and these sectors continued to see defaults over the period.
The Fund was slightly shorter in duration at the beginning of the period. We extended duration as rates rose, which contributed to performance. An underweight to zero coupons detracted. An overweight to premium coupons (5% and higher), which generally perform well in rising rate environments, also contributed to performance relative to the benchmark. The Fund was also overweight bonds subject to the alternative minimum tax over the year, which benefited the Fund’s performance.
The outlook for bond selection remains favorable, in our view. Increased dispersion within rating tiers and sectors offers the opportunity for differentiation among credits. As the period ended, primary and secondary market opportunities were favorable due to elevated municipal yields relative to the beginning of the period and wider credit spreads.
Allspring High Yield Municipal Bond Fund | 9
Fund expenses (unaudited)
Fund expenses
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 January 1, 2023 to June 30, 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 1-1-2023 | Ending account value 6-30-2023 | Expenses paid during the period1 | Annualized net expense ratio | |
Class A | ||||
Actual | $1,000.00 | $1,035.38 | $3.99 | 0.79 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.88 | $3.96 | 0.79 % |
Class C | ||||
Actual | $1,000.00 | $1,031.55 | $7.76 | 1.54 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.16 | $7.70 | 1.54 % |
Class R6 | ||||
Actual | $1,000.00 | $1,036.90 | $2.47 | 0.49 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.37 | $2.46 | 0.49 % |
Administrator Class | ||||
Actual | $1,000.00 | $1,034.78 | $3.48 | 0.69 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.37 | $3.46 | 0.69 % |
Institutional Class | ||||
Actual | $1,000.00 | $1,036.65 | $2.73 | 0.54 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.12 | $2.71 | 0.54 % |
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 181 divided by 365 (to reflect the one-half-year period). |
10 | Allspring High Yield Municipal Bond Fund
Portfolio of investments—June 30, 2023
Portfolio of investments
Interest rate | Maturity date | Principal | Value | |||
Municipal obligations: 99.73% | ||||||
Alabama: 1.32% | ||||||
Education revenue: 0.83% | ||||||
Jacksonville Public Educational Building Authority Jacksonville State University Series A (AGM Insured) | 5.00 % | 8-1-2054 | $ | 1,200,000 | $1,265,313 | |
Water & sewer revenue: 0.49% | ||||||
County of Jefferson Sewer Revenue Series B CAB (AGM Insured)¤ | 0.00 | 10-1-2027 | 920,000 | 740,643 | ||
2,005,956 | ||||||
Arizona: 1.66% | ||||||
Education revenue: 0.43% | ||||||
Florence Town, Inc. IDA Legacy Traditional School Obligated Group144A | 5.00 | 7-1-2023 | 55,000 | 55,000 | ||
IDA of the City of Phoenix Arizona Legacy Traditional School Obligated Group Series A144A | 6.50 | 7-1-2034 | 500,000 | 509,758 | ||
IDA of the County of Pima Partnership with Parents, Inc. | 6.00 | 5-1-2024 | 85,000 | 85,963 | ||
650,721 | ||||||
Health revenue: 1.23% | ||||||
IDA of the County of Pima La Posada at Park Centre, Inc. Obligated Group Series A144A | 7.00 | 11-15-2057 | 1,000,000 | 1,007,379 | ||
Tempe IDA Mirabella at ASU, Inc. Series A144A | 6.13 | 10-1-2052 | 1,400,000 | 853,103 | ||
1,860,482 | ||||||
2,511,203 | ||||||
Arkansas: 0.66% | ||||||
Industrial development revenue: 0.66% | ||||||
Arkansas Development Finance Authority United States Steel Corp. AMT | 5.45 | 9-1-2052 | 1,000,000 | 999,921 | ||
California: 5.12% | ||||||
Airport revenue: 0.67% | ||||||
California Municipal Finance Authority LAX Integrated Express Solutions LLC Series A AMT | 5.00 | 12-31-2043 | 1,000,000 | 1,015,843 | ||
Education revenue: 0.29% | ||||||
California Infrastructure & Economic Development Bank WFCS Holdings II LLC Series A-1144A | 5.00 | 1-1-2056 | 250,000 | 189,530 | ||
California Municipal Finance Authority Albert Einstein Academy Charter School/Charter Middle School Series A | 7.13 | 8-1-2043 | 250,000 | 250,684 | ||
440,214 | ||||||
Health revenue: 1.00% | ||||||
California PFA Kendal at Sonoma Obligated Group Series A144A | 5.00 | 11-15-2046 | 500,000 | 449,725 | ||
California Statewide Communities Development Authority Enloe Medical Center Obligated Group Series A (AGM Insured) | 5.25 | 8-15-2052 | 1,000,000 | 1,065,028 | ||
1,514,753 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Municipal Bond Fund | 11
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue: 1.34% | ||||||
California Community Housing Agency Creekwood Apartments Series A144A | 4.00 % | 2-1-2056 | $ | 500,000 | $347,686 | |
California Statewide Communities Development Authority Community Improvement Authority 1818 Platinum Triangle-Anaheim Series B144A | 4.00 | 4-1-2057 | 500,000 | 345,154 | ||
California Statewide Communities Development Authority Community Improvement Authority Waterscape Apartments Series B144A | 4.00 | 9-1-2046 | 425,000 | 353,765 | ||
Compton PFA144A | 4.00 | 9-1-2027 | 1,000,000 | 983,051 | ||
2,029,656 | ||||||
Miscellaneous revenue: 0.35% | ||||||
California Municipal Finance Authority Palomar Health Obligated Group Series A (AGM Insured) | 5.25 | 11-1-2052 | 500,000 | 533,908 | ||
Tax revenue: 0.57% | ||||||
San Francisco City & County Redevelopment Successor Agency Mission Bay South Redevelopment Project Subordinate Bond Series D CAB144A¤ | 0.00 | 8-1-2026 | 1,000,000 | 869,713 | ||
Tobacco revenue: 0.21% | ||||||
Tobacco Securitization Authority of Northern California Sacramento County Tobacco Securitization Corp. Series B2 CAB¤ | 0.00 | 6-1-2060 | 2,000,000 | 310,666 | ||
Utilities revenue: 0.69% | ||||||
California Community Choice Financing Authority Clean Energy Project Green Bond Series Cøø | 5.25 | 1-1-2054 | 1,000,000 | 1,046,099 | ||
7,760,852 | ||||||
Colorado: 6.82% | ||||||
Airport revenue: 0.69% | ||||||
City & County of Denver Airport System Revenue Series D AMT | 5.00 | 11-15-2053 | 1,000,000 | 1,045,582 | ||
Education revenue: 0.28% | ||||||
Colorado ECFA New Summit Academy Series A144A | 4.00 | 7-1-2061 | 600,000 | 426,614 | ||
GO revenue: 4.88% | ||||||
Berthoud-Heritage Metropolitan District No. 10 Series A | 4.75 | 12-1-2052 | 500,000 | 395,139 | ||
Chambers Highpoint Metropolitan District No. 2 | 5.00 | 12-1-2051 | 830,000 | 701,547 | ||
Clear Creek Transit Metropolitan District No. 2 Series A | 5.00 | 12-1-2050 | 1,000,000 | 866,159 | ||
Cornerstar Metropolitan District Series A | 5.25 | 12-1-2047 | 1,000,000 | 956,113 | ||
Cottonwood Highlands Metropolitan District No. 1 Series A | 5.00 | 12-1-2049 | 900,000 | 815,506 | ||
Denver International Business Center Metropolitan District No. 1 | 6.00 | 12-1-2048 | 1,145,000 | 1,140,769 | ||
Hogback Metropolitan District Series A | 5.00 | 12-1-2051 | 585,000 | 507,043 | ||
Murphy Creek Metropolitan District No. 5 Series A | 6.00 | 12-1-2052 | 1,000,000 | 973,028 | ||
Pronghorn Valley Metropolitan District Series A | 4.00 | 12-1-2051 | 250,000 | 186,855 | ||
Westgate Metropolitan District | 5.13 | 12-1-2051 | 1,000,000 | 855,504 | ||
7,397,663 | ||||||
Tax revenue: 0.64% | ||||||
Pueblo Urban Renewal Authority City of Pueblo Co. Sales Tax Revenue | 5.00 | 6-1-2036 | 1,000,000 | 978,561 | ||
The accompanying notes are an integral part of these financial statements.
12 | Allspring High Yield Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Transportation revenue: 0.33% | ||||||
Colorado High Performance Transportation Enterprise Plenary Roads Denver LLC AMT | 5.75 % | 1-1-2044 | $ | 500,000 | $499,988 | |
10,348,408 | ||||||
Delaware: 0.68% | ||||||
Education revenue: 0.68% | ||||||
Delaware State EDA Odyssey Charter School Series A144A | 7.00 | 9-1-2045 | 1,000,000 | 1,025,555 | ||
District of Columbia: 0.28% | ||||||
Tobacco revenue: 0.28% | ||||||
District of Columbia Tobacco Settlement Financing Corp. | 6.75 | 5-15-2040 | 420,000 | 431,089 | ||
Florida: 5.00% | ||||||
Education revenue: 2.20% | ||||||
Capital Trust Agency, Inc. Pineapple Cove Classical Academy Series A144A | 5.13 | 7-1-2039 | 2,000,000 | 1,902,518 | ||
Florida Development Finance Corp. Global Outreach Charter Academy Obligated Group Series A144A | 4.00 | 6-30-2056 | 625,000 | 439,477 | ||
Miami-Dade County IDA Youth Co-Op, Inc. Series A144A | 6.00 | 9-15-2045 | 1,000,000 | 1,000,707 | ||
3,342,702 | ||||||
Health revenue: 1.20% | ||||||
Holmes County Hospital Corp. | 6.00 | 11-1-2038 | 250,000 | 223,301 | ||
Lee County IDA Cypress Cove at Healthpark Florida Obligated Group Series A | 5.25 | 10-1-2052 | 1,000,000 | 848,690 | ||
St. Johns County IDA Senior Living Vicar’s Landing Project Series A | 4.00 | 12-15-2046 | 1,000,000 | 747,955 | ||
1,819,946 | ||||||
Miscellaneous revenue: 1.35% | ||||||
Village Community Development District No. 14 | 5.13 | 5-1-2037 | 1,000,000 | 1,031,559 | ||
Village Community Development District No. 15144A%% | 5.25 | 5-1-2054 | 1,000,000 | 1,013,950 | ||
2,045,509 | ||||||
Water & sewer revenue: 0.25% | ||||||
Charlotte County IDA MSKP Town & Country Utility LLC Series A AMT144A | 4.00 | 10-1-2051 | 500,000 | 381,276 | ||
7,589,433 | ||||||
Georgia: 3.85% | ||||||
Education revenue: 0.87% | ||||||
Private Colleges & Universities Authority Mercer University | 5.25 | 10-1-2051 | 1,250,000 | 1,322,938 | ||
Housing revenue: 0.53% | ||||||
Development Authority of Cobb County Kennesaw State University Real Estate Obligated Group 2015 ABC Series C | 5.00 | 7-15-2028 | 800,000 | 805,818 | ||
Transportation revenue: 0.67% | ||||||
Georgia State Road & Tollway Authority Series B CAB144A¤ | 0.00 | 6-1-2049 | 1,000,000 | 1,019,490 | ||
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Municipal Bond Fund | 13
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue: 1.78% | ||||||
Main Street Natural Gas, Inc. Series A | 5.00 % | 5-15-2049 | $ | 1,610,000 | $1,649,000 | |
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A | 5.50 | 7-1-2064 | 1,000,000 | 1,041,244 | ||
2,690,244 | ||||||
5,838,490 | ||||||
Guam: 0.32% | ||||||
Airport revenue: 0.32% | ||||||
Antonio B Won Pat International Airport Authority Series A AMT%% | 5.38 | 10-1-2043 | 500,000 | 492,969 | ||
Idaho: 0.16% | ||||||
Education revenue: 0.16% | ||||||
Idaho Housing & Finance Association Legacy Public Charter School, Inc. Series A | 6.25 | 5-1-2043 | 250,000 | 250,132 | ||
Illinois: 9.79% | ||||||
Education revenue: 0.97% | ||||||
Illinois Finance Authority Acero Charter Schools, Inc. Obligated Group144A | 4.00 | 10-1-2042 | 250,000 | 190,769 | ||
Illinois Finance Authority AIM Art in Motion Series A144A | 5.00 | 7-1-2051 | 1,000,000 | 770,917 | ||
Illinois Finance Authority Intrinsic Schools Series A144A | 5.25 | 12-1-2025 | 505,000 | 511,341 | ||
1,473,027 | ||||||
GO revenue: 4.35% | ||||||
Chicago Board of Education Series A (NPFGC Insured)¤ | 0.00 | 12-1-2025 | 500,000 | 453,251 | ||
Chicago Board of Education Dedicated Capital Improvement Tax | 5.75 | 4-1-2048 | 500,000 | 545,920 | ||
City of Chicago Series A | 5.50 | 1-1-2041 | 500,000 | 536,358 | ||
City of Chicago Series A | 5.50 | 1-1-2043 | 500,000 | 534,241 | ||
City of Chicago Series A | 6.00 | 1-1-2038 | 1,500,000 | 1,595,768 | ||
Cook County School District No. 144 Prairie Hills Series C CAB (AGM Insured)¤ | 0.00 | 12-1-2025 | 730,000 | 663,465 | ||
State of Illinois Series B | 4.50 | 5-1-2048 | 1,000,000 | 983,389 | ||
Will County Community High School District No. 210 Lincoln-Way Series B CAB (BAM Insured)¤ | 0.00 | 1-1-2027 | 685,000 | 600,149 | ||
Will County Community High School District No. 210 Lincoln-Way Series B CAB (BAM Insured)¤ | 0.00 | 1-1-2033 | 1,000,000 | 691,387 | ||
6,603,928 | ||||||
Health revenue: 1.39% | ||||||
Illinois Finance Authority University of Chicago Medical Center Obligated Group Series A | 5.00 | 8-15-2052 | 2,000,000 | 2,103,571 | ||
Housing revenue: 0.67% | ||||||
Metropolitan Pier & Exposition Authority Series A | 5.00 | 6-15-2050 | 1,000,000 | 1,016,608 | ||
Miscellaneous revenue: 0.45% | ||||||
Illinois Finance Authority Rogers Park Montessori School | 6.00 | 2-1-2034 | 680,000 | 682,654 | ||
The accompanying notes are an integral part of these financial statements.
14 | Allspring High Yield Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue: 0.88% | ||||||
Village of Hillside IL Mannheim Redevelopment Project Area | 5.00 % | 1-1-2030 | $ | 1,345,000 | $1,342,707 | |
Water & sewer revenue: 1.08% | ||||||
City of Chicago Wastewater Transmission Revenue Series A (AGM Insured) | 5.25 | 1-1-2053 | 1,500,000 | 1,633,805 | ||
14,856,300 | ||||||
Indiana: 1.36% | ||||||
Education revenue: 1.36% | ||||||
Indiana Finance Authority DePauw University Series A | 5.00 | 7-1-2047 | 2,055,000 | 2,067,707 | ||
Iowa: 0.92% | ||||||
Health revenue: 0.66% | ||||||
Iowa Finance Authority Iowa Health System Obligated Group Series F (JPMorgan Chase Bank N.A. LOC)ø | 3.75 | 7-1-2041 | 1,000,000 | 1,000,000 | ||
Tobacco revenue: 0.26% | ||||||
Iowa Tobacco Settlement Authority Series B-2 CAB¤ | 0.00 | 6-1-2065 | 3,490,000 | 401,097 | ||
1,401,097 | ||||||
Kansas: 1.37% | ||||||
Health revenue: 0.58% | ||||||
Kansas Development Finance Authority Village Shalom Obligated Group Series A | 5.25 | 11-15-2033 | 1,000,000 | 880,542 | ||
Tax revenue: 0.79% | ||||||
Wyandotte County-Kansas City Unified Government Sales Tax Revenue | 4.00 | 12-1-2028 | 205,000 | 191,999 | ||
Wyandotte County-Kansas City Unified Government Sales Tax Revenue CAB144A¤ | 0.00 | 9-1-2034 | 2,620,000 | 1,010,367 | ||
1,202,366 | ||||||
2,082,908 | ||||||
Kentucky: 0.61% | ||||||
Health revenue: 0.61% | ||||||
Kentucky EDFA Kenton Housing Obligated Group | 5.50 | 11-15-2035 | 1,000,000 | 923,834 | ||
Louisiana: 4.91% | ||||||
Airport revenue: 0.87% | ||||||
New Orleans Aviation Board Louis Armstrong New Orleans International Airport Series B AMT | 5.00 | 1-1-2048 | 1,305,000 | 1,322,181 | ||
Industrial development revenue: 1.65% | ||||||
East Baton Rouge Parish Industrial Development Board, Inc. Exxon Mobil Corp. Series Bø | 3.65 | 12-1-2040 | 2,500,000 | 2,500,000 | ||
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Municipal Bond Fund | 15
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue: 2.39% | ||||||
Louisiana Stadium & Exposition District Series A | 5.25 % | 7-1-2053 | $ | 1,500,000 | $1,628,692 | |
State of Louisiana Gasoline & Fuels Tax Revenue Series A-1 (Toronto- Dominion Bank LOC)ø | 3.60 | 5-1-2043 | 2,000,000 | 2,000,000 | ||
3,628,692 | ||||||
7,450,873 | ||||||
Maryland: 2.25% | ||||||
Education revenue: 0.68% | ||||||
County of Prince George’s Chesapeake Lighthouse Charter School Obligated Group Series A144A | 6.90 | 8-1-2041 | 1,000,000 | 1,027,178 | ||
Miscellaneous revenue: 0.28% | ||||||
Maryland Economic Development Corp. City of Baltimore MD Port Covington Development District | 4.00 | 9-1-2050 | 500,000 | 424,812 | ||
Transportation revenue: 1.29% | ||||||
Maryland Economic Development Corp. Purple Line Transit Partners LLC Series B AMT | 5.25 | 6-30-2055 | 1,900,000 | 1,961,808 | ||
3,413,798 | ||||||
Massachusetts: 2.68% | ||||||
Health revenue: 2.68% | ||||||
Massachusetts Development Finance Agency Boston Medical Center Corp. Obligated Group Series G | 5.25 | 7-1-2052 | 3,000,000 | 3,145,876 | ||
Massachusetts Development Finance Agency Salem Community Corp. Obligated Group | 5.13 | 1-1-2040 | 1,000,000 | 915,050 | ||
4,060,926 | ||||||
Michigan: 2.09% | ||||||
Education revenue: 0.27% | ||||||
Michigan Finance Authority Bradford Academy | 4.80 | 9-1-2040 | 150,000 | 124,802 | ||
Michigan Public Educational Facilities Authority Crescent Academy | 7.00 | 10-1-2036 | 277,500 | 277,596 | ||
402,398 | ||||||
Miscellaneous revenue: 1.47% | ||||||
Charyl Stockwell Academy | 4.88 | 10-1-2023 | 75,000 | 74,848 | ||
Michigan Finance Authority City of Detroit Income Tax Revenue Series F1 | 4.50 | 10-1-2029 | 1,000,000 | 999,504 | ||
Michigan Finance Authority Detroit Public Lighting Authority Utility Users Tax Revenue Series B | 5.00 | 7-1-2044 | 1,000,000 | 1,000,309 | ||
Michigan Public Educational Facilities Authority Chandler Park Academy | 6.35 | 11-1-2028 | 150,000 | 150,089 | ||
2,224,750 | ||||||
The accompanying notes are an integral part of these financial statements.
16 | Allspring High Yield Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue: 0.35% | ||||||
Detroit Downtown Development Authority Area No. 1¤ | 0.00 % | 7-1-2024 | $ | 20,000 | $18,966 | |
Detroit Downtown Development Authority Area No. 1¤ | 0.00 | 7-1-2025 | 580,000 | 519,362 | ||
538,328 | ||||||
3,165,476 | ||||||
Minnesota: 2.59% | ||||||
Education revenue: 1.78% | ||||||
City of Deephaven Eagle Ridge Academy Series A | 4.40 | 7-1-2025 | 45,000 | 44,637 | ||
City of Deephaven Eagle Ridge Academy Series A | 5.00 | 7-1-2030 | 195,000 | 195,767 | ||
City of Ramsey PACT Charter School Series A | 5.00 | 6-1-2032 | 1,000,000 | 1,003,503 | ||
City of St. Cloud Athlos Academy of St. Cloud Series A144A | 5.25 | 6-1-2032 | 1,000,000 | 980,462 | ||
City of Woodbury Woodbury Leadership Academy Series A | 4.00 | 7-1-2051 | 660,000 | 478,526 | ||
2,702,895 | ||||||
Health revenue: 0.32% | ||||||
City of Shakopee Senior Housing Revenue Benedictine Living Community of Shakopee LLC144Aøø | 5.85 | 11-1-2058 | 495,000 | 487,177 | ||
Housing revenue: 0.49% | ||||||
City of Minneapolis Riverton Community Housing | 4.70 | 8-1-2026 | 335,000 | 334,894 | ||
City of Minneapolis Riverton Community Housing | 4.80 | 8-1-2027 | 400,000 | 400,027 | ||
734,921 | ||||||
3,924,993 | ||||||
Missouri: 0.31% | ||||||
Tax revenue: 0.31% | ||||||
City of Richmond Heights | 5.63 | 11-1-2025 | 485,000 | 476,142 | ||
New Hampshire: 0.70% | ||||||
Education revenue: 0.70% | ||||||
New Hampshire Business Finance Authority University of Nevada Reno Series A (BAM Insured) | 4.50 | 6-1-2053 | 1,075,000 | 1,059,314 | ||
New Jersey: 4.77% | ||||||
Airport revenue: 0.33% | ||||||
New Jersey EDA Port Newark Container Terminal LLC AMT | 5.00 | 10-1-2047 | 500,000 | 500,150 | ||
Education revenue: 1.11% | ||||||
Camden County Improvement Authority Camden Prep, Inc.144A | 5.00 | 7-15-2042 | 1,175,000 | 1,180,692 | ||
Passaic County Improvement Authority Paterson Arts & Science Charter School | 5.38 | 7-1-2053 | 500,000 | 503,709 | ||
1,684,401 | ||||||
GO revenue: 0.68% | ||||||
City of Newark Series A | 5.00 | 7-15-2027 | 1,000,000 | 1,030,117 | ||
Housing revenue: 1.73% | ||||||
New Jersey EDA New Jersey Transit Corp. Series A | 5.00 | 11-1-2044 | 1,000,000 | 1,050,934 | ||
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Municipal Bond Fund | 17
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
New Jersey TTFA Series C | 5.25 % | 6-15-2032 | $ | 1,000,000 | $1,027,571 | |
New Jersey TTFA Series CC | 5.50 | 6-15-2050 | 500,000 | 552,530 | ||
2,631,035 | ||||||
Industrial development revenue: 0.17% | ||||||
New Jersey EDA United Airlines, Inc. | 5.25 | 9-15-2029 | 250,000 | 250,633 | ||
Transportation revenue: 0.75% | ||||||
South Jersey Transportation Authority Series A | 5.25 | 11-1-2052 | 1,075,000 | 1,136,923 | ||
7,233,259 | ||||||
New York: 10.89% | ||||||
Airport revenue: 2.44% | ||||||
New York Transportation Development Corp. JFK International Air Terminal LLC AMT | 5.00 | 12-1-2041 | 1,660,000 | 1,718,611 | ||
New York Transportation Development Corp. LaGuardia Gateway Partners LLC Series A AMT | 5.00 | 7-1-2046 | 1,000,000 | 988,009 | ||
New York Transportation Development Corp. LaGuardia Gateway Partners LLC Series A AMT | 5.25 | 1-1-2050 | 1,000,000 | 1,001,193 | ||
3,707,813 | ||||||
Education revenue: 4.25% | ||||||
Build NYC Resource Corp. East Harlem Scholars Academy Charter School Obligated Group144A | 5.75 | 6-1-2052 | 1,000,000 | 1,011,855 | ||
Build NYC Resource Corp. Hellenic Classical Charter Schools Series A144A | 5.00 | 12-1-2041 | 1,200,000 | 1,064,856 | ||
Hempstead Town Local Development Corp. Academy Charter School Series A | 4.60 | 2-1-2051 | 500,000 | 369,723 | ||
Hempstead Town Local Development Corp. Academy Charter School Series A | 5.73 | 2-1-2050 | 1,000,000 | 957,908 | ||
Hempstead Town Local Development Corp. Evergreen Charter School, Inc. Series A | 5.25 | 6-15-2052 | 2,000,000 | 1,908,455 | ||
New York State Dormitory Authority St. Joseph’s University/Brooklyn | 4.00 | 7-1-2035 | 400,000 | 384,513 | ||
New York State Dormitory Authority St. Joseph’s University/Brooklyn | 5.00 | 7-1-2051 | 750,000 | 750,384 | ||
6,447,694 | ||||||
Health revenue: 0.64% | ||||||
Westchester County Local Development Corp. Westchester County Health Care Corp. Obligated Group | 5.00 | 11-1-2046 | 1,000,000 | 969,268 | ||
Housing revenue: 1.32% | ||||||
MTA Hudson Rail Yards Trust Obligations Series A | 5.00 | 11-15-2056 | 2,000,000 | 2,001,471 | ||
Tax revenue: 1.02% | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Series E1 | 3.00 | 2-1-2051 | 1,000,000 | 761,457 | ||
New York State Dormitory Authority State of New York Personal Income Tax Revenue Series A | 3.00 | 3-15-2050 | 1,000,000 | 777,086 | ||
1,538,543 | ||||||
The accompanying notes are an integral part of these financial statements.
18 | Allspring High Yield Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tobacco revenue: 0.18% | ||||||
Suffolk Tobacco Asset Securitization Corp. Series B2 CAB¤ | 0.00 % | 6-1-2066 | $ | 2,500,000 | $278,615 | |
Transportation revenue: 1.04% | ||||||
Metropolitan Transportation Authority Series C | 5.25 | 11-15-2055 | 1,500,000 | 1,572,911 | ||
16,516,315 | ||||||
Ohio: 5.04% | ||||||
Education revenue: 1.18% | ||||||
Ohio Higher Educational Facility Commission Capital University | 6.00 | 9-1-2052 | 1,250,000 | 1,283,020 | ||
Ohio Higher Educational Facility Commission Cleveland Institute of Music | 5.38 | 12-1-2052 | 500,000 | 504,706 | ||
1,787,726 | ||||||
GO revenue: 1.33% | ||||||
Pickerington Local School District | 4.38 | 12-1-2049 | 2,000,000 | 2,018,120 | ||
Housing revenue: 1.28% | ||||||
State of Ohio Department of Transportation Series A AMT | 5.00 | 6-30-2053 | 2,000,000 | 1,939,576 | ||
Tobacco revenue: 1.25% | ||||||
Buckeye Tobacco Settlement Financing Authority Series B-2 | 5.00 | 6-1-2055 | 975,000 | 913,099 | ||
Buckeye Tobacco Settlement Financing Authority Series B-3 CAB¤ | 0.00 | 6-1-2057 | 8,000,000 | 989,516 | ||
1,902,615 | ||||||
7,648,037 | ||||||
Oregon: 1.30% | ||||||
Health revenue: 1.30% | ||||||
Oregon State Facilities Authority Samaritan Health Services, Inc. Obligated Group Series A | 5.00 | 10-1-2040 | 1,685,000 | 1,732,536 | ||
Polk County Hospital Facility Authority Dallas Mennonite Retirement Community Obligated Group Series A | 5.00 | 7-1-2025 | 235,000 | 233,030 | ||
1,965,566 | ||||||
Pennsylvania: 4.61% | ||||||
Education revenue: 0.42% | ||||||
Allegheny County IDA Propel Charter School - Sunrise | 5.25 | 7-15-2023 | 25,000 | 25,009 | ||
Philadelphia IDA Independence Charter School West | 5.00 | 6-15-2039 | 250,000 | 240,425 | ||
Philadelphia IDA Tacony Academy Charter School | 6.88 | 6-15-2033 | 375,000 | 375,792 | ||
641,226 | ||||||
Health revenue: 1.25% | ||||||
Lancaster County Hospital Authority Penn State Health Obligated Group | 5.00 | 11-1-2051 | 1,000,000 | 1,026,569 | ||
Quakertown General Authority LifeQuest Obligated Group Series C | 5.30 | 7-1-2042 | 1,000,000 | 864,302 | ||
1,890,871 | ||||||
Housing revenue: 2.39% | ||||||
Pennsylvania EDFA Commonwealth of Pennsylvania Department of Transportation AMT## | 5.25 | 6-30-2053 | 3,500,000 | 3,632,412 | ||
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Municipal Bond Fund | 19
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue: 0.55% | ||||||
Chester County IDA Woodlands at Greystone Neighborhood Improvement District144A | 5.13 % | 3-1-2048 | $ | 887,000 | $828,056 | |
6,992,565 | ||||||
South Carolina: 1.54% | ||||||
Education revenue: 0.67% | ||||||
South Carolina Jobs-EDA Columbia College/SC Obligated Group Series A | 5.75 | 10-1-2045 | 500,000 | 451,280 | ||
South Carolina Jobs-EDA York Preparatory Academy, Inc. Series A144A | 5.75 | 11-1-2023 | 35,000 | 35,242 | ||
South Carolina Jobs-EDA York Preparatory Academy, Inc. Series A144A | 7.25 | 11-1-2045 | 500,000 | 523,699 | ||
1,010,221 | ||||||
Health revenue: 0.55% | ||||||
South Carolina Jobs-EDA South Carolina Episcopal Home at Still Hopes Obligated Group Series A | 5.00 | 4-1-2048 | 1,000,000 | 838,035 | ||
Resource recovery revenue: 0.32% | ||||||
South Carolina Jobs-EDA RePower South Berkeley LLC† | 8.00 | 12-6-2029 | 100,000 | 81,952 | ||
South Carolina Jobs-EDA RePower South Berkeley LLC Series A AMT144A† | 6.25 | 2-1-2045 | 1,000,000 | 400,000 | ||
481,952 | ||||||
2,330,208 | ||||||
Tennessee: 0.74% | ||||||
Tax revenue: 0.74% | ||||||
Bristol Industrial Development Board Series B CAB144A¤ | 0.00 | 12-1-2031 | 1,000,000 | 620,966 | ||
Nashville Metropolitan Development & Housing Agency Fifth & Broadway Redevelopment Area144A | 5.13 | 6-1-2036 | 500,000 | 507,223 | ||
1,128,189 | ||||||
Texas: 4.68% | ||||||
Education revenue: 2.22% | ||||||
Arlington Higher Education Finance Corp. LTTS Charter School, Inc. Series A | 7.00 | 3-1-2034 | 320,000 | 321,298 | ||
Arlington Higher Education Finance Corp. School of Excellence in Education Series A144A | 6.38 | 2-15-2052 | 1,500,000 | 1,430,822 | ||
Arlington Higher Education Finance Corp. Wayside Schools Series A | 4.00 | 8-15-2046 | 860,000 | 648,160 | ||
Pottsboro Higher Education Finance Corp. Imagine International Academy of North Texas LLC Series A | 3.88 | 8-15-2026 | 1,000,000 | 963,456 | ||
3,363,736 | ||||||
GO revenue: 0.62% | ||||||
City of Port Isabel144A | 5.10 | 2-15-2049 | 925,000 | 938,165 | ||
Tax revenue: 0.27% | ||||||
Baytown Municipal Development District Baytown Convention Center Hotel Revenue Series B144A | 5.00 | 10-1-2050 | 500,000 | 415,032 | ||
The accompanying notes are an integral part of these financial statements.
20 | Allspring High Yield Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Transportation revenue: 1.44% | ||||||
Texas Private Activity Bond Surface Transportation Corp. NTE Mobility Partners Segments 3 LLC AMT | 5.00 % | 6-30-2058 | $ | 2,000,000 | $1,990,188 | |
Texas Private Activity Bond Surface Transportation Corp. NTE Mobility Partners Segments 3 LLC Series A AMT | 7.00 | 12-31-2038 | 200,000 | 200,901 | ||
2,191,089 | ||||||
Utilities revenue: 0.13% | ||||||
SA Energy Acquisition Public Facility Corp. | 5.50 | 8-1-2027 | 190,000 | 198,461 | ||
7,106,483 | ||||||
Utah: 1.68% | ||||||
Education revenue: 0.62% | ||||||
Utah Charter School Finance Authority Freedom Academy Foundation Series A144A | 5.00 | 6-15-2041 | 1,020,000 | 937,147 | ||
Miscellaneous revenue: 0.49% | ||||||
Mida Mountain Village Public Infrastructure District Mountain Village Assessment Area No. 2144A | 4.00 | 8-1-2050 | 1,000,000 | 753,727 | ||
Tax revenue: 0.57% | ||||||
Utah Inland Port Authority Crossroads Public Infrastructure District AJL Project Area144A | 4.38 | 6-1-2052 | 1,000,000 | 860,081 | ||
2,550,955 | ||||||
Virginia: 1.82% | ||||||
Health revenue: 0.49% | ||||||
Roanoke EDA Richfield Living Obligated Group Series 2020† | 5.13 | 9-1-2055 | 1,210,000 | 748,248 | ||
Transportation revenue: 1.33% | ||||||
Virginia Small Business Financing Authority I-66 Express Mobility Partners LLC AMT | 5.00 | 12-31-2052 | 2,000,000 | 2,015,775 | ||
2,764,023 | ||||||
Washington: 0.52% | ||||||
Health revenue: 0.52% | ||||||
Washington Health Care Facilities Authority Fred Hutchinson Cancer Center Obligated Group | 5.00 | 9-1-2050 | 750,000 | 783,690 | ||
West Virginia: 1.01% | ||||||
Tax revenue: 1.01% | ||||||
Monongalia County Commission Excise Tax District Series A144A | 5.75 | 6-1-2043 | 1,500,000 | 1,532,977 | ||
Wisconsin: 5.68% | ||||||
Education revenue: 4.53% | ||||||
PFA Contemporary Science Center, Inc. Series A144A | 5.63 | 7-1-2045 | 1,000,000 | 1,004,929 | ||
PFA Coral Academy of Science Las Vegas Series A | 5.00 | 7-1-2024 | 85,000 | 85,194 | ||
PFA Estancia Valley Classical Academy Series A144A | 4.25 | 7-1-2051 | 1,000,000 | 715,609 | ||
PFA Triad Educational Services, Inc. | 5.00 | 6-15-2042 | 1,140,000 | 1,094,469 | ||
PFA Triad Educational Services, Inc. | 5.25 | 6-15-2052 | 1,610,000 | 1,546,083 | ||
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Municipal Bond Fund | 21
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
PFA Uwharrie Charter Academy Series A144A | 5.00 % | 6-15-2042 | $ | 1,310,000 | $1,197,464 | |
PFA Wilson Preparatory Academy Series A144A | 5.00 | 6-15-2039 | 1,285,000 | 1,227,828 | ||
6,871,576 | ||||||
Health revenue: 0.78% | ||||||
Wisconsin HEFA Wisconsin Illinois Senior Housing, Inc. Series A | 5.25 | 8-1-2048 | 1,500,000 | 1,187,292 | ||
Housing revenue: 0.37% | ||||||
PFA Eastern Michigan University Campus Living LLC Series A-1 (BAM Insured) | 5.50 | 7-1-2052 | 500,000 | 552,732 | ||
8,611,600 | ||||||
Total municipal obligations (Cost $158,200,640) | 151,301,243 | |||||
Yield | Shares | |||||
Short-term investments: 0.55% | ||||||
Investment companies: 0.55% | ||||||
Allspring Municipal Cash Management Money Market Fund Institutional Class♠∞## | 4.07 | 832,184 | 832,351 | |||
Total short-term investments (Cost $832,351) | 832,351 | |||||
Total investments in securities (Cost $159,032,991) | 100.28 % | 152,133,594 | ||||
Other assets and liabilities, net | (0.28 ) | (419,274 ) | ||||
Total net assets | 100.00 % | $151,714,320 | ||||
¤ | The security is issued in zero coupon form with no periodic interest payments. |
144A | The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
%% | The security is purchased on a when-issued basis. |
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
## | All or a portion of this security is segregated for when-issued securities. |
† | 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: | |
AGM | Assured Guaranty Municipal |
AMT | Alternative minimum tax |
BAM | Build America Mutual Assurance Company |
CAB | Capital appreciation bond |
ECFA | Educational & Cultural Facilities Authority |
EDA | Economic Development Authority |
EDFA | Economic Development Finance Authority |
GO | General obligation |
HEFA | Health & Educational Facilities Authority |
IDA | Industrial Development Authority |
LOC | Letter of credit |
NPFGC | National Public Finance Guarantee Corporation |
PFA | Public Finance Authority |
TTFA | Transportation Trust Fund Authority |
The accompanying notes are an integral part of these financial statements.
22 | Allspring High Yield Municipal Bond Fund
Portfolio of investments—June 30, 2023
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 Municipal Cash Management Money Market Fund Institutional Class | $5,593,920 | $106,124,814 | $(110,881,542 ) | $(4,841 ) | $0 | $832,351 | 832,184 | $120,001 |
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Municipal Bond Fund | 23
Statement of assets and liabilities—June 30, 2023
Financial statements
Statement of assets and liabilities
Assets | |
Investments in unaffiliated securities, at value (cost $158,200,640) | $151,301,243 |
Investments in affiliated securities, at value (cost $832,351) | 832,351 |
Cash | 1,049,519 |
Receivable for interest | 1,775,991 |
Receivable for investments sold | 205,000 |
Receivable for Fund shares sold | 4,182 |
Prepaid expenses and other assets | 70,467 |
Total assets | 155,238,753 |
Liabilities | |
Payable for when-issued transactions | 1,491,185 |
Payable for investments purchased | 1,049,049 |
Payable for Fund shares redeemed | 865,806 |
Dividends payable | 55,856 |
Management fee payable | 15,986 |
Administration fees payable | 14,075 |
Distribution fee payable | 4,497 |
Trustees’ fees and expenses payable | 202 |
Accrued expenses and other liabilities | 27,777 |
Total liabilities | 3,524,433 |
Total net assets | $151,714,320 |
Net assets consist of | |
Paid-in capital | $161,627,820 |
Total distributable loss | (9,913,500 ) |
Total net assets | $151,714,320 |
The accompanying notes are an integral part of these financial statements.
24 | Allspring High Yield Municipal Bond Fund
Statement of assets and liabilities—June 30, 2023
Computation of net asset value and offering price per share | |
Net assets–Class A | $41,963,448 |
Shares outstanding–Class A1 | 4,456,203 |
Net asset value per share–Class A | $9.42 |
Maximum offering price per share – Class A2 | $9.86 |
Net assets–Class C | $7,184,846 |
Shares outstanding–Class C1 | 762,906 |
Net asset value per share–Class C | $9.42 |
Net assets–Class R6 | $23,867 |
Shares outstanding–Class R61 | 2,528 |
Net asset value per share–Class R6 | $9.44 |
Net assets–Administrator Class | $7,795,606 |
Shares outstanding–Administrator Class1 | 827,510 |
Net asset value per share–Administrator Class | $9.42 |
Net assets–Institutional Class | $94,746,553 |
Shares outstanding–Institutional Class1 | 10,061,915 |
Net asset value per share–Institutional Class | $9.42 |
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.
Allspring High Yield Municipal Bond Fund | 25
Statement of operations—year ended June 30, 2023
Statement of operations
Investment income | |
Interest | $6,754,628 |
Income from affiliated securities | 120,001 |
Total investment income | 6,874,629 |
Expenses | |
Management fee | 696,175 |
Administration fees | |
Class A | 63,988 |
Class C | 10,839 |
Class R6 | 7 |
Administrator Class | 7,793 |
Institutional Class | 67,701 |
Shareholder servicing fees | |
Class A | 99,916 |
Class C | 16,605 |
Administrator Class | 19,454 |
Distribution fee | |
Class C | 49,816 |
Custody and accounting fees | 10,063 |
Professional fees | 72,584 |
Registration fees | 78,269 |
Shareholder report expenses | 34,127 |
Trustees’ fees and expenses | 22,004 |
Other fees and expenses | 811 |
Total expenses | 1,250,152 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (264,146 ) |
Class A | (33,042 ) |
Class C | (4,206 ) |
Administrator Class | (9,917 ) |
Net expenses | 938,841 |
Net investment income | 5,935,788 |
Realized and unrealized gains (losses) on investments | |
Net realized losses on | |
Unaffiliated securities | (1,292,077 ) |
Affiliated securities | (4,841 ) |
Net realized losses on investments | (1,296,918 ) |
Net change in unrealized gains (losses) on investments | (231,205 ) |
Net realized and unrealized gains (losses) on investments | (1,528,123 ) |
Net increase in net assets resulting from operations | $4,407,665 |
The accompanying notes are an integral part of these financial statements.
26 | Allspring High Yield Municipal Bond Fund
Statement of changes in net assets
Statement of changes in net assets
Year ended June 30, 2023 | Year ended June 30, 2022 | |||
Operations | ||||
Net investment income | $5,935,788 | $3,790,032 | ||
Net realized losses on investments | (1,296,918 ) | (1,705,630 ) | ||
Net change in unrealized gains (losses) on investments | (231,205 ) | (13,871,298 ) | ||
Net increase (decrease) in net assets resulting from operations | 4,407,665 | (11,786,896 ) | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class A | (1,648,707 ) | (1,572,805 ) | ||
Class C | (228,896 ) | (252,745 ) | ||
Class R6 | (1,032 ) | (1,044 ) | ||
Administrator Class | (329,349 ) | (384,186 ) | ||
Institutional Class | (3,716,904 ) | (1,958,274 ) | ||
Total distributions to shareholders | (5,924,888 ) | (4,169,054 ) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class A | 1,359,385 | 12,768,066 | 1,829,910 | 19,247,400 |
Class C | 271,122 | 2,545,911 | 121,872 | 1,282,715 |
Administrator Class | 349,013 | 3,274,829 | 874,425 | 8,646,964 |
Institutional Class | 10,722,836 | 100,289,845 | 5,497,610 | 54,759,627 |
118,878,651 | 83,936,706 | |||
Reinvestment of distributions | ||||
Class A | 169,012 | 1,587,162 | 141,735 | 1,500,548 |
Class C | 24,023 | 225,597 | 23,517 | 249,871 |
Class R6 | 110 | 1,032 | 62 | 645 |
Administrator Class | 18,067 | 169,831 | 20,739 | 219,472 |
Institutional Class | 394,967 | 3,705,001 | 185,327 | 1,946,947 |
5,688,623 | 3,917,483 | |||
Payment for shares redeemed | ||||
Class A | (955,363 ) | (8,926,103 ) | (1,451,197 ) | (15,179,217 ) |
Class C | (205,070 ) | (1,933,069 ) | (231,805 ) | (2,409,232 ) |
Administrator Class | (437,078 ) | (4,151,878 ) | (866,104 ) | (8,538,467 ) |
Institutional Class | (6,992,229 ) | (65,278,557 ) | (3,730,743 ) | (36,960,703 ) |
(80,289,607 ) | (63,087,619 ) | |||
Net increase in net assets resulting from capital share transactions | 44,277,667 | 24,766,570 | ||
Total increase in net assets | 42,760,444 | 8,810,620 | ||
Net assets | ||||
Beginning of period | 108,953,876 | 100,143,256 | ||
End of period | $151,714,320 | $108,953,876 | ||
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Municipal Bond Fund | 27
Financial highlights
Financial highlights
(For a share outstanding throughout each period)
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class A | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.56 | $11.16 | $10.43 | $10.97 | $10.59 |
Net investment income | 0.39 1 | 0.38 | 0.41 | 0.44 | 0.39 |
Net realized and unrealized gains (losses) on investments | (0.14 ) | (1.56 ) | 0.73 | (0.54 ) | 0.38 |
Total from investment operations | 0.25 | (1.18 ) | 1.14 | (0.10 ) | 0.77 |
Distributions to shareholders from | |||||
Net investment income | (0.39 ) | (0.38 ) | (0.41 ) | (0.44 ) | (0.39 ) |
Net realized gains | 0.00 | (0.04 ) | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders | (0.39 ) | (0.42 ) | (0.41 ) | (0.44 ) | (0.39 ) |
Net asset value, end of period | $9.42 | $9.56 | $11.16 | $10.43 | $10.97 |
Total return2 | 2.71 % | (10.84 )% | 10.98 % | (0.98 )% | 7.43 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.07 % | 1.10 % | 1.14 % | 1.12 % | 1.09 % |
Net expenses | 0.80 % | 0.80 % | 0.80 % | 0.80 % | 0.80 % |
Net investment income | 4.13 % | 3.61 % | 3.74 % | 4.05 % | 3.68 % |
Supplemental data | |||||
Portfolio turnover rate | 24 % | 30 % | 55 % | 14 % | 20 % |
Net assets, end of period (000s omitted) | $41,963 | $37,138 | $37,514 | $24,791 | $23,674 |
1 | Calculated based upon average shares outstanding |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
28 | Allspring High Yield Municipal Bond Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class C | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.56 | $11.16 | $10.44 | $10.97 | $10.59 |
Net investment income | 0.32 1 | 0.30 | 0.32 | 0.36 | 0.31 |
Net realized and unrealized gains (losses) on investments | (0.14 ) | (1.55 ) | 0.72 | (0.53 ) | 0.38 |
Total from investment operations | 0.18 | (1.25 ) | 1.04 | (0.17 ) | 0.69 |
Distributions to shareholders from | |||||
Net investment income | (0.32 ) | (0.31 ) | (0.32 ) | (0.36 ) | (0.31 ) |
Net realized gains | 0.00 | (0.04 ) | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders | (0.32 ) | (0.35 ) | (0.32 ) | (0.36 ) | (0.31 ) |
Net asset value, end of period | $9.42 | $9.56 | $11.16 | $10.44 | $10.97 |
Total return2 | 1.94 % | (11.51 )% | 10.14 % | (1.63 )% | 6.63 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.80 % | 1.84 % | 1.89 % | 1.87 % | 1.84 % |
Net expenses | 1.55 % | 1.55 % | 1.55 % | 1.55 % | 1.55 % |
Net investment income | 3.39 % | 2.84 % | 3.02 % | 3.29 % | 2.91 % |
Supplemental data | |||||
Portfolio turnover rate | 24 % | 30 % | 55 % | 14 % | 20 % |
Net assets, end of period (000s omitted) | $7,185 | $6,435 | $8,471 | $9,250 | $9,955 |
1 | Calculated based upon average shares outstanding |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Municipal Bond Fund | 29
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class R6 | 2023 | 2022 | 2021 | 2020 | 20191 |
Net asset value, beginning of period | $9.59 | $11.16 | $10.44 | $10.98 | $10.61 |
Net investment income | 0.42 2 | 0.42 | 0.44 | 0.47 | 0.39 |
Net realized and unrealized gains (losses) on investments | (0.15 ) | (1.55 ) | 0.71 | (0.54 ) | 0.37 |
Total from investment operations | 0.27 | (1.13 ) | 1.15 | (0.07 ) | 0.76 |
Distributions to shareholders from | |||||
Net investment income | (0.42 ) | (0.40 ) | (0.43 ) | (0.47 ) | (0.39 ) |
Net realized gains | 0.00 | (0.04 ) | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders | (0.42 ) | (0.44 ) | (0.43 ) | (0.47 ) | (0.39 ) |
Net asset value, end of period | $9.44 | $9.59 | $11.16 | $10.44 | $10.98 |
Total return3 | 2.90 % | (10.53 )% | 11.28 % | (0.68 )% | 7.29 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.69 % | 0.72 % | 0.76 % | 0.73 % | 0.71 % |
Net expenses | 0.50 % | 0.50 % | 0.50 % | 0.50 % | 0.50 % |
Net investment income | 4.43 % | 3.91 % | 4.07 % | 4.34 % | 3.96 % |
Supplemental data | |||||
Portfolio turnover rate | 24 % | 30 % | 55 % | 14 % | 20 % |
Net assets, end of period (000s omitted) | $24 | $23 | $26 | $25 | $26 |
1 | For the period from July 31, 2018 (commencement of class operations) to June 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.
30 | Allspring High Yield Municipal Bond Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Administrator Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.57 | $11.16 | $10.44 | $10.98 | $10.59 |
Net investment income | 0.40 1 | 0.40 | 0.42 | 0.45 | 0.40 |
Net realized and unrealized gains (losses) on investments | (0.15 ) | (1.55 ) | 0.72 | (0.54 ) | 0.39 |
Total from investment operations | 0.25 | (1.15 ) | 1.14 | (0.09 ) | 0.79 |
Distributions to shareholders from | |||||
Net investment income | (0.40 ) | (0.40 ) | (0.42 ) | (0.45 ) | (0.40 ) |
Net realized gains | 0.00 | (0.04 ) | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders | (0.40 ) | (0.44 ) | (0.42 ) | (0.45 ) | (0.40 ) |
Net asset value, end of period | $9.42 | $9.57 | $11.16 | $10.44 | $10.98 |
Total return | 2.71 % | (10.65 )% | 11.10 % | (0.87 )% | 7.64 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.01 % | 1.05 % | 1.08 % | 1.05 % | 1.03 % |
Net expenses | 0.69 % | 0.68 % | 0.69 % | 0.70 % | 0.71 % |
Net investment income | 4.24 % | 3.73 % | 3.88 % | 4.12 % | 3.69 % |
Supplemental data | |||||
Portfolio turnover rate | 24 % | 30 % | 55 % | 14 % | 20 % |
Net assets, end of period (000s omitted) | $7,796 | $8,587 | $9,692 | $11,115 | $15,704 |
1 | Calculated based upon average shares outstanding |
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Municipal Bond Fund | 31
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Institutional Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.56 | $11.15 | $10.43 | $10.97 | $10.59 |
Net investment income | 0.42 1 | 0.41 | 0.43 | 0.46 | 0.42 |
Net realized and unrealized gains (losses) on investments | (0.14 ) | (1.55 ) | 0.72 | (0.53 ) | 0.38 |
Total from investment operations | 0.28 | (1.14 ) | 1.15 | (0.07 ) | 0.80 |
Distributions to shareholders from | |||||
Net investment income | (0.42 ) | (0.41 ) | (0.43 ) | (0.47 ) | (0.42 ) |
Net realized gains | 0.00 | (0.04 ) | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders | (0.42 ) | (0.45 ) | (0.43 ) | (0.47 ) | (0.42 ) |
Net asset value, end of period | $9.42 | $9.56 | $11.15 | $10.43 | $10.97 |
Total return | 2.97 % | (10.54 )% | 11.15 % | (0.74 )% | 7.70 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.74 % | 0.77 % | 0.81 % | 0.78 % | 0.76 % |
Net expenses | 0.55 % | 0.55 % | 0.55 % | 0.55 % | 0.55 % |
Net investment income | 4.40 % | 3.87 % | 4.00 % | 4.24 % | 3.92 % |
Supplemental data | |||||
Portfolio turnover rate | 24 % | 30 % | 55 % | 14 % | 20 % |
Net assets, end of period (000s omitted) | $94,747 | $56,771 | $44,440 | $37,049 | $85,187 |
1 | Calculated based upon average shares outstanding |
The accompanying notes are an integral part of these financial statements.
32 | Allspring High Yield Municipal Bond Fund
Notes to financial statements
Notes to financial statements
1.
ORGANIZATION
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring High Yield Municipal 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 Funds 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.
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 any of 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.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the 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 High Yield Municipal Bond Fund | 33
Notes to financial statements
As of June 30, 2023, the aggregate cost of all investments for federal income tax purposes was $159,216,084 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $2,370,708 |
Gross unrealized losses | (9,453,198 ) |
Net unrealized losses | $(7,082,490 ) |
As of June 30, 2023, the Fund had capital loss carryforwards which consist of $2,315,095 in short-term capital losses and $692,278 in long-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.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2023:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Municipal obligations | $0 | $151,301,243 | $0 | $151,301,243 |
Short-term investments | ||||
Investment companies | 832,351 | 0 | 0 | 832,351 |
Total assets | $832,351 | $151,301,243 | $0 | $152,133,594 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended June 30, 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
34 | Allspring High Yield Municipal Bond Fund
Notes to financial statements
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 | 0.500 % |
Next $500 million | 0.475 |
Next $2 billion | 0.450 |
Next $2 billion | 0.425 |
Next $5 billion | 0.390 |
Over $10 billion | 0.380 |
For the year ended June 30, 2023, the management fee was equivalent to an annual rate of 0.50% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.35% 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 | 0.15 % |
Class C | 0.15 |
Class R6 | 0.03 |
Administrator Class | 0.10 |
Institutional Class | 0.08 |
Prior to June 30, 2023, the class-level administration fee for Class A and Class C was 0.16% of the average daily net assets of each respective class.
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 October 31, 2023 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 June 30, 2023, the contractual expense caps are as follows:
EXPENSE RATIO CAPS | |
Class A | 0.80 % |
Class C | 1.55 |
Class R6 | 0.50 |
Administrator Class | 0.70 |
Institutional Class | 0.55 |
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
Allspring High Yield Municipal Bond Fund | 35
Notes to financial statements
from redemptions of Class C shares. For the year ended June 30, 2023, Allspring Funds Distributor received $3,729 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the year ended June 30, 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. Pursuant to these procedures, the Fund had $2,495,753, $11,850,000 and $0 in interfund purchases, sales and net realized gains (losses), respectively, during the year ended June 30, 2023.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2023 were $74,970,832 and $30,538,609, 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 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 year ended June 30, 2023, there were no borrowings by the Fund under the agreement.
7.
DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid during the years ended June 30, 2023 and June 30, 2022 were as follows:
Year ended June 30 | ||
2023 | 2022 | |
Ordinary income | $0 | $363,427 |
Tax-exempt income | 5,924,888 | 3,800,802 |
Long-term capital gain | 0 | 4,825 |
As of June 30, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | Unrealized losses | Capital loss carryforward |
$232,219 | $(7,082,490 ) | $(3,007,373 ) |
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.
36 | Allspring High Yield Municipal Bond Fund
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring High Yield Municipal Bond Fund (the Fund), one of the funds constituting Allspring Funds Trust, including the portfolio of investments, as of June 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of June 30, 2023, by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
August 25, 2023
Allspring High Yield Municipal Bond Fund | 37
Other information (unaudited)
Other information
Tax information
Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2023.
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 1-866-259-3305, 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.
38 | Allspring High Yield Municipal 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 |
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 |
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.
Allspring High Yield Municipal Bond Fund | 39
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 |
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. |
40 | Allspring High Yield Municipal Bond Fund
Other information (unaudited)
Officers1
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 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 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 High Yield Municipal Bond Fund | 41
Other information (unaudited)
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 15-17, 2023 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring High Yield Municipal Bond Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2023, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
The Board noted that it initially approved the Advisory Agreements at a Board meeting held in May 2021, each for a two-year term, in advance of the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC,1 a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. (the “Transaction”). The Trustees also noted that, while they did not specifically consider the continuation of the Advisory Agreements in 2022 as a result of the two-year term that was approved in 2021, the Trustees received and considered certain information at a Board meeting held in April 2022 that was applicable to the Advisory Agreements, including an overview and financial review of the Allspring Global Investments business, information regarding certain ancillary agreements that were approved by the Board at the April 2022 Board meeting, and comparative data regarding Fund fees and expenses.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2023. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business. The Board also considered information about retention arrangements with respect to key personnel of Allspring Global Investments that were put in place in connection with the Transaction. The Board took into account information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the Transaction under a transition services agreement and the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
1
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
42 | Allspring High Yield Municipal Bond Fund
Other information (unaudited)
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, and Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2022. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was lower than the investment performance of its benchmark index, the High Yield Municipal Bond Blended Index, for all periods under review.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory free rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were in range of the sum of these average rates for the Fund’s expense Groups for the Class A shares and the Class R6 shares, equal to the sum of these average rates for the Fund’s expense Groups for the Institutional Class, and higher than these average rates for the Fund’s expense Groups for the Administrator Class.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Allspring High Yield Municipal Bond Fund | 43
Other information (unaudited)
Profitability
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and differences in how Allspring Global Investments calculates its pre-tax profit metric versus the methodology used when Allspring Funds Management was part of Wells Fargo. It was noted that the impact of such differences had only minor impact on the financial results presented. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser and fees earned in the past by Allspring Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund complex’s securities lending collateral.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
44 | Allspring High Yield Municipal Bond Fund
Other information (unaudited)
Liquidity risk management program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that operate as money market funds), including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund’s investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the “Council”) composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 16-17, 2023, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2022 through December 31, 2022 (the “Reporting Period”). The Report noted significant liquidity events impacting the Funds related to extended foreign market holidays as well as the difficulty of trading and settlement of most Russia-related securities due to sanctions activity. The Report noted that there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage the Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
Allspring High Yield Municipal Bond 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
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.
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Contents
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The views expressed and any forward-looking statements are as of June 30, 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 Intermediate Tax/AMT-Free Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Intermediate Tax/AMT-Free Fund for the 12-month period that ended June 30, 2023. Globally, stocks and bonds experienced heightened volatility through the period. The market was focused on persistently high inflation and the impact of ongoing aggressive central bank rate hikes. Compounding these concerns were the global reverberations of the Russia-Ukraine war. Riskier assets rallied in 2023, with anticipation of an end to the tight monetary policy despite concerns of a possible impending recession. After suffering deep and broad losses through 2022, bonds now benefit from a base of higher yields that can help generate higher income. However, ongoing rate hikes continued to be a headwind during recent months.
For the 12-month period, stocks generally outperformed bonds—both domestic U.S. and global. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 19.59%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 12.72%, while the MSCI EM Index (Net) (USD)3 had more muted performance, with a gain of 1.75%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -0.94%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 fell 1.83%, the Bloomberg Municipal Bond Index6 gained 3.19%, and the ICE BofA U.S. High Yield Index7 returned 8.97%.
Despite high inflation and central bank rate hikes, markets rallied.
Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong: July nonfarm payrolls grew by more than 500,000 and U.S. unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices—major contributors to recent overall inflation—fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with mortgage rates at a 13-year high. The Federal Reserve (Fed) raised the federal funds rate 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to further rate hikes.
August was a broadly challenging month. High inflation persisted, cresting 9% in the eurozone on an annual basis and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June peak. One positive was the resilient U.S. jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act. Its primary stated goals include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“ Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong. ”
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 the 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 Intermediate Tax/AMT-Free Fund
Letter to shareholders (unaudited)
In September, all asset classes suffered further major losses. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar weighed on results for investors holding non-U.S.-dollar assets. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The Bank of England (BoE) then stepped in and bought long-dated government bonds.
Equities had a reprieve in October. 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 increasing 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.
Financial markets cooled in December, with U.S. equities declining overall in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever, with generally flat 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 wound 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 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.
Markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks would 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 was not falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the BoE and the European Central Bank (ECB) both raised rates by 0.50%.
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 banking industry turmoil created an additional challenge for central banks in balancing inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. 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 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. ”
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.
Allspring Intermediate Tax/AMT-Free Fund | 3
Letter to shareholders (unaudited)
Economic data released in April pointed to global resilience, as Purchasing Managers Indexes1 in the U.S., U.K., and eurozone beat expectations and China reported first-quarter annualized economic growth of 4.5%. Despite banking industry stress, developed market stocks had monthly gains. The U.S. labor market remained strong, with a 3.5% jobless rate and monthly payroll gains above 200,000. However, uncertainty and inflationary concerns weighed on investors in the U.S. and abroad.
May was marked by a divergence between expanding activity in services and an overall contraction in manufacturing activity in the U.S., U.K., and eurozone. Core inflation remained elevated in the U.S. and Europe, despite the ongoing efforts of the Fed and ECB, which included rate hikes of 0.25% by both in May. Stubborn inflation and the resilient U.S. labor market led to expectations of further interest rate hikes, overall monthly declines across bond indexes, and mixed results for stocks in May. Investor worries over a U.S. debt ceiling impasse were modest, and market confidence was buoyed by a deal in late May to avert a potential U.S. debt default.
June featured the Fed’s first pause on interest rate hikes since March 2022, when it began its aggressive campaign to rein in inflation. However, core CPI, excluding food and energy prices, while continuing to decline, remained stubbornly high in June, at 4.8%, well above the Fed’s 2.0% target rate. With the U.S. unemployment rate still at 3.6%, near a historical low, and U.S. payrolls growing in June for the 30th consecutive month, expectations of more Fed rate hikes were reinforced. However, U.S. and global stocks had strong returns in June.
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
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.
1
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.
4 | Allspring Intermediate Tax/AMT-Free Fund
Letter to shareholders (unaudited)
Notice to Shareholders |
Beginning in July 2024, the Fund will be required by the Securities and Exchange Commission to send shareholders a paper copy of a new tailored shareholder report in place of the full shareholder report that you are now receiving. The tailored shareholder report will contain concise information about the Fund, including certain expense and performance information and fund statistics. If you wish to receive this new tailored shareholder report electronically, please follow the instructions on the back cover of this report. |
Other information that is currently included in the shareholder report, such as the Fund’s financial statements, will be available online and upon request, free of charge, in paper or electronic format. |
Allspring Intermediate Tax/AMT-Free Fund | 5
Performance highlights (unaudited)
Performance highlights
Investment objective | The Fund seeks current income exempt from federal income tax. |
Manager | Allspring Funds Management, LLC |
Subadviser | Allspring Global Investments, LLC |
Portfolio managers | Bruce R. Johns, Robert J. Miller, Adrian Van Poppel, Nicholos Venditti |
Average annual total returns (%) as of June 30, 2023 | |||||||||
Including sales charge | Excluding sales charge | Expense ratios1 (%) | |||||||
Inception date | 1 year | 5 year | 10 year | 1 year | 5 year | 10 year | Gross | Net2 | |
Class A (WFTAX) | 7-31-2007 | -0.57 | 0.85 | 1.69 | 2.50 | 1.46 | 2.00 | 0.81 | 0.67 |
Class C (WFTFX) | 7-31-2007 | 0.73 | 0.70 | 1.39 | 1.73 | 0.70 | 1.39 | 1.56 | 1.42 |
Class R6 (WFRTX)3 | 7-31-2018 | – | – | – | 2.82 | 1.75 | 2.28 | 0.43 | 0.30 |
Administrator Class (WFITX) | 3-31-2008 | – | – | – | 2.69 | 1.56 | 2.10 | 0.75 | 0.60 |
Institutional Class (WITIX) | 3-31-2008 | – | – | – | 2.87 | 1.72 | 2.27 | 0.48 | 0.35 |
Bloomberg Municipal Bond 1-15 Year Blend Index4 | – | – | – | – | 2.78 | 1.83 | 2.34 | – | – |
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 3.00%. 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. 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 October 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.67% for Class A, 1.42% for Class C, 0.30% for Class R6, 0.60% for Administrator Class and 0.35% 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 Bloomberg Municipal Bond 1–15 Year Blend Index is the 1–15 year component of the Bloomberg Municipal Bond Index. 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. |
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. 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 municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.
6 | Allspring Intermediate Tax/AMT-Free Fund
Performance highlights (unaudited)
Growth of $10,000 investment as of June 30, 20231 |
1 | The chart compares the performance of Class A shares for the most recent ten years with the Bloomberg Municipal Bond 1-15 Year Blend Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 3.00%. |
Allspring Intermediate Tax/AMT-Free Fund | 7
Performance highlights (unaudited)
MANAGER’S DISCUSSION
Fund highlights
•The Fund (Class A, excluding sales charge) underperformed its benchmark, the Bloomberg Municipal Bond 1–15 Year Blend Index, for the 12-month period that ended June 30, 2023. Duration positioning modestly detracted from performance while credit, sector, and selection added to performance.
•An overweight to bonds longer than 17 years detracted as longer-dated bonds underperformed the overall market.
•Our overweight to lower-investment-grade bonds (A-rated and BBB-rated) was positive as higher-quality bonds (AA-rated and AAA-rated) underperformed the market.
•Our overweights to outperforming sectors, such as hospital, education, and leasing, were positive as these sectors had strong performance, offsetting an underweight to transportation, which also performed well.
•We tactically moved duration at the beginning of the period from short relative to the benchmark to modestly long by the end of the period. Our short duration helped in the first half of the period but detracted in the second half as we extended late in the cycle.
•Yield-curve positioning was the largest contributor to performance. Our moderate underweight to the 12- to 17-year parts of the yield curve was especially advantageous as this was the worst-performing maturity range in the index.
Global economies increase lending rates in hopes of taming runaway inflation.
Entering 2022, the excitement of a post-pandemic world gave way to new whispers and fears of higher prices and broad-based inflation caused by supply chain bottlenecks, increased housing costs, wage increases, and employment market distortions. Those fears quickly became reality and prices began to rise at a historic rate. The U.S. Federal Open Market Committee acted quickly and with purpose: ending open market purchases, reducing its balance sheet, and raising the benchmark overnight lending rate at each monthly meeting through 2022 and early 2023. Fixed income and equity markets fell sharply but began to recover as annual inflation numbers peaked in June and began to recede.
The U.S. unemployment rate, which reached a multigenerational high of more than 14% in the spring of 2020, fell throughout the past year and has settled below 4%. Employers continue to add jobs, especially in service-oriented industries, and the resulting wage increases have further contributed to inflationary pressures. After U.S. gross domestic product turned negative in the first and second quarters of 2022, it expanded at rates above 2% in each subsequent quarter. The federal funds rate, which began 2022 at 0.25% to 0.50%, was raised 10 consecutive times before a pause in June 2023. It now sits at 5.25% to 5.50% as the Federal Reserve (Fed) attempts to curb inflation. In this environment, some form of recession seems imminent.
In the wake of continued rate increases, U.S. fixed income yields rose dramatically as investors reacted to Fed actions, with the yield on the 10-year Treasury ending the period near 4%. Rising U.S. Treasury yields affected all fixed income sectors in 2022, with all seeing their worst returns in more than 40 years. The U.S. Treasury yield curve remained substantially inverted throughout the period, which has driven many investors into shorter-term interest-bearing vehicles, including money markets.
Municipals sold off drastically to start the period but began to rebound in the fourth quarter of 2022. The Bloomberg Municipal Bond Index* fell nearly 8% and the broader municipal market had more than $124 billion in outflows before stabilizing early in 2023. For the first time in history, the municipal yield curve also inverted but not to the degree seen in Treasuries.
While this environment has certainly been painful for municipal investors, the drawdown has created significantly improved opportunities and entry points. Municipal to Treasury ratios ended the period elevated but at far better levels than in 2021. Municipal credit spreads have widened substantially while the underlying fundamental credit of municipalities remains strong following trillions of dollars in government stimulus. We believe investors will continue to return to the municipal market in the latter half of 2023, attracted by increased yields, positive fundamental strength, and good relative value.
Market volatility was the norm during the period.
Coming into the fiscal year, municipal bonds had experienced their worst six-month period on record, down 8.98% through June 30, 2022. The strong technicals that had driven the market to record-low yields had evaporated and unwound with negative fund flows across the industry accelerating. According to the Bloomberg AAA scale, the 10-year municipal bond yield increased from 0.94% on December 31, 2021, to 2.60% on June 30, 2022, an increase of 166 basis points (bps; 100 bps equal 1.00%). As the period began in July 2022, negative fund flows continued, but the market began to stabilize. Price returns were still negative for the first half of the period, but income was sufficient to more than offset the declines. The market continued to improve in the second half as the Bloomberg Municipal Bond Index* returned 2.67% over this period. Over the entire period, the municipal market had a total return of 3.19%, pretty much on par with corporates, U.S. Treasuries, and the
*
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
8 | Allspring Intermediate Tax/AMT-Free Fund
Performance highlights (unaudited)
Bloomberg U.S. Aggregate Bond Index * Adjusted for taxes, municipal bonds outperformed these fixed income alternatives by a wide margin.
Credit quality as of June 30, 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. |
Yield curve positioning detracted while credit, sector, and selection aided performance.
Credit allocation contributed to performance. We were underweight AA-rated and AAA-rated bonds, which was positive as these rating categories trailed the overall market. Our overweight to lower-rated investment-grade bonds (A-rated and BBB-rated bonds) was additive as lower-quality bonds had strong performance. New purchases in the second half of the period focused on buying higher-quality bonds (those rated A or above), which improved the portfolio’s overall credit quality. We believe this is prudent: Although credit spreads have widened from historic tights, we don’t believe they represent good value at current levels, and we expect them to widen further if the economy slows or we enter a recession. Simply stated, we believe there will be a better entry point for lower investment-grade bonds and possibly high yield after the rate increases have more time to play out.
Sector allocation was an overall contributor to performance, with selection within the sectors providing the biggest boost to returns. Overweights to the local general obligation (GO), hospital, education, leasing, and special tax sectors were positive as these sectors performed well. Underweights to the state GO, electric, IDR/PCR, and water and sewer sectors were positive as these sectors trailed the market. Despite modest underweights to the weak electric and water and sewer sectors, the Fund outperformed both by a wide margin, indicating good selection within the sectors.
We tactically added to duration during the period as we refined our outlook. We began the period short duration to the benchmark in anticipation of higher rates. This worked well as the Fed aggressively raised rates in an effort to tame inflation. Late in the first half, after the market had sold off aggressively for the better part of the year, municipal bonds had cheapened to a level we felt represented a compelling value, and we began extending duration closer to neutral. We remained close to neutral through much of the second half and will look to extend further on any weakness in the belief that most rate increases are behind us.
Yield curve positioning detracted overall. While our underweight to bonds inside of six years and an overweight to bonds from 8 years to 12 years was positive, this was offset by a modest underweight to the 12-year to 17-year part of the curve (the best-performing part of the intermediate curve), and an out-of-index position in bonds with maturities longer than 17 years. Yields on longer-dated bonds rose by 10 to 25 bps over the period.
Effective maturity distribution as of June 30, 20231 |
1 | Figures represent the percentage of the Fund’s total investments. These amounts are subject to change and may have changed since the date specified. |
The outlook remains favorable for active bond management, in our view.
Fundamental credit factors remain strong in the municipal bond market as municipal credit is the strongest it has been in decades. We believe the Fed will continue its monetary tightening policy well into the second half of calendar-year 2023 to combat higher-than-average inflation and we are looking for signs of a slowing national economy. These actions should only have a modest effect on municipal credit quality and that, coupled with a weak technical market, makes municipal bonds attractive for buying
*
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
Allspring Intermediate Tax/AMT-Free Fund | 9
Performance highlights (unaudited)
lower-investment-grade bonds in the revenue and local GO sectors at attractive spreads relative to the past decade. We believe the Fed will reach its terminal rate in the second half of 2023, and with its view of higher rates for longer in 2024, there will be opportune times to invest.
We believe the outlook for bond selection remains favorable. Increased dispersion within rating tiers and sectors offers the opportunity for
differentiation among credits. As the period ended, primary and secondary market opportunities were favorable due to cheaper valuations relative to U.S. Treasuries and wider credit spreads.
10 | Allspring Intermediate Tax/AMT-Free Fund
Fund expenses (unaudited)
Fund expenses
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 January 1, 2023 to June 30, 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 1-1-2023 | Ending account value 6-30-2023 | Expenses paid during the period1 | Annualized net expense ratio | |
Class A | ||||
Actual | $1,000.00 | $1,017.49 | $3.45 | 0.69 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.37 | $3.46 | 0.69 % |
Class C | ||||
Actual | $1,000.00 | $1,013.70 | $7.19 | 1.44 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.65 | $7.20 | 1.44 % |
Class R6 | ||||
Actual | $1,000.00 | $1,019.14 | $1.80 | 0.36 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,023.01 | $1.81 | 0.36 % |
Administrator Class | ||||
Actual | $1,000.00 | $1,017.92 | $3.00 | 0.60 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.82 | $3.01 | 0.60 % |
Institutional Class | ||||
Actual | $1,000.00 | $1,018.88 | $2.05 | 0.41 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.76 | $2.06 | 0.41 % |
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 181 divided by 365 (to reflect the one-half-year period). |
Allspring Intermediate Tax/AMT-Free Fund | 11
Portfolio of investments—June 30, 2023
Portfolio of investments
Principal | Value | |||||
Closed-end fund obligations: 0.56% | ||||||
New York: 0.37% | ||||||
Nuveen New York AMT-Free Quality Municipal Income Fund (40 shares) 4.63%144Aø | $ | 4,000,000 | $4,000,000 | |||
Other: 0.19% | ||||||
Nuveen AMT-Free Municipal Credit Income Fund Preferred Shares Series C (20 shares) 0.25%144Aø | 2,000,000 | 2,000,000 | ||||
Total closed-end fund obligations (Cost $6,000,000) | 6,000,000 | |||||
Interest rate | Maturity date | |||||
Municipal obligations: 99.11% | ||||||
Alabama: 2.12% | ||||||
Education revenue: 0.32% | ||||||
Auburn University Series A | 4.00 % | 6-1-2033 | 1,000,000 | 1,017,007 | ||
University of West Alabama (AGM Insured) | 4.00 | 1-1-2033 | 595,000 | 611,180 | ||
University of West Alabama (AGM Insured) | 4.00 | 1-1-2035 | 865,000 | 885,040 | ||
University of West Alabama (AGM Insured) | 4.00 | 1-1-2037 | 920,000 | 924,134 | ||
3,437,361 | ||||||
Utilities revenue: 1.80% | ||||||
Black Belt Energy Gas District Series Cøø | 5.25 | 2-1-2053 | 3,000,000 | 3,140,456 | ||
Southeast Alabama Gas Supply District Southeast Alabama Gas Supply District Series B (1 Month LIBOR+0.85%)± | 4.31 | 6-1-2049 | 10,000,000 | 10,000,185 | ||
Southeast Energy Authority A Cooperative District Project No. 2 Series Bøø | 4.00 | 12-1-2051 | 1,000,000 | 972,037 | ||
Southeast Energy Authority A Cooperative District Project No. 5 Series Aøø | 5.25 | 1-1-2054 | 5,000,000 | 5,227,977 | ||
19,340,655 | ||||||
22,778,016 | ||||||
Alaska: 0.36% | ||||||
Housing revenue: 0.36% | ||||||
Borough of Matanuska-Susitna State of Alaska Department of Administration | 4.00 | 9-1-2030 | 3,870,000 | 3,894,387 | ||
Arizona: 1.62% | ||||||
Education revenue: 0.32% | ||||||
Arizona IDA Kipp NYC Public Charter Schools Series A | 4.00 | 7-1-2034 | 335,000 | 325,030 | ||
Arizona IDA Kipp NYC Public Charter Schools Series A | 4.00 | 7-1-2035 | 345,000 | 331,021 | ||
Arizona IDA Kipp NYC Public Charter Schools Series A | 4.00 | 7-1-2036 | 315,000 | 297,639 | ||
Arizona IDA Kipp NYC Public Charter Schools Series A | 5.00 | 7-1-2033 | 315,000 | 333,364 | ||
Arizona IDA Kipp NYC Public Charter Schools Series B | 4.00 | 7-1-2035 | 240,000 | 230,275 | ||
Arizona IDA Kipp NYC Public Charter Schools Series B | 4.00 | 7-1-2036 | 220,000 | 207,875 | ||
Pima County Community College District | 5.00 | 7-1-2034 | 500,000 | 547,630 | ||
Pima County Community College District | 5.00 | 7-1-2035 | 600,000 | 653,781 | ||
Pima County Community College District | 5.00 | 7-1-2036 | 500,000 | 540,542 | ||
3,467,157 | ||||||
The accompanying notes are an integral part of these financial statements.
12 | Allspring Intermediate Tax/AMT-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue: 0.06% | ||||||
Estrella Mountain Ranch Community Facilities District (AGM Insured) | 5.00 % | 7-15-2025 | $ | 585,000 | $604,750 | |
Health revenue: 0.07% | ||||||
Tempe IDA Tempe Life Care Village Obligated Group Series A | 4.00 | 12-1-2028 | 370,000 | 347,135 | ||
Tempe IDA Tempe Life Care Village Obligated Group Series A | 4.00 | 12-1-2029 | 385,000 | 356,516 | ||
703,651 | ||||||
Miscellaneous revenue: 0.53% | ||||||
City of Phoenix Civic Improvement Corp. Series D | 4.00 | 7-1-2040 | 5,000,000 | 4,928,823 | ||
City of Phoenix Civic Improvement Corp. Series D | 5.00 | 7-1-2024 | 190,000 | 193,331 | ||
State of Arizona COP | 5.00 | 9-1-2027 | 600,000 | 622,582 | ||
5,744,736 | ||||||
Tax revenue: 0.45% | ||||||
City of San Luis Series A (BAM Insured) | 5.00 | 7-1-2027 | 450,000 | 457,230 | ||
City of San Luis Series A (BAM Insured) | 5.00 | 7-1-2028 | 700,000 | 711,041 | ||
City of San Luis Series A (BAM Insured) | 5.00 | 7-1-2034 | 3,680,000 | 3,729,797 | ||
4,898,068 | ||||||
Utilities revenue: 0.19% | ||||||
Coconino County Pollution Control Corp. Series Bøø | 3.75 | 3-1-2039 | 2,000,000 | 2,006,315 | ||
17,424,677 | ||||||
Arkansas: 0.22% | ||||||
Miscellaneous revenue: 0.22% | ||||||
Arkansas Development Finance Authority Public Safety Charges Revenue | 4.00 | 6-1-2033 | 500,000 | 511,762 | ||
Arkansas Development Finance Authority Public Safety Charges Revenue | 4.00 | 6-1-2035 | 1,000,000 | 1,023,229 | ||
Arkansas Development Finance Authority Public Safety Charges Revenue | 4.00 | 6-1-2036 | 850,000 | 865,053 | ||
2,400,044 | ||||||
California: 4.09% | ||||||
GO revenue: 1.52% | ||||||
Alisal Union School District Series A (BAM Insured) | 5.25 | 8-1-2042 | 1,500,000 | 1,607,765 | ||
Compton Community College District Series C CAB¤ | 0.00 | 8-1-2029 | 1,565,000 | 1,265,136 | ||
Compton Community College District Series C CAB¤ | 0.00 | 8-1-2031 | 2,400,000 | 1,798,710 | ||
New Haven Unified School District (AGC Insured)¤ | 0.00 | 8-1-2033 | 5,590,000 | 3,853,241 | ||
Patterson Joint Unified School District Series B (AGM Insured)¤ | 0.00 | 8-1-2033 | 3,000,000 | 2,063,844 | ||
Rio Hondo Community College District Series C¤ | 0.00 | 8-1-2030 | 2,315,000 | 1,834,464 | ||
Sylvan Union School District (AGM Insured)¤ | 0.00 | 8-1-2031 | 2,590,000 | 1,944,189 | ||
Sylvan Union School District (AGM Insured)¤ | 0.00 | 8-1-2032 | 2,800,000 | 2,020,614 | ||
16,387,963 | ||||||
Housing revenue: 0.09% | ||||||
California Housing Finance Agency Series 2 | 4.00 | 3-20-2033 | 943,765 | 926,775 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 13
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue: 0.10% | ||||||
Foothill-De Anza Community College District COP | 5.00 % | 4-1-2033 | $ | 500,000 | $512,366 | |
Gold Coast Transit District COP | 5.00 | 7-1-2027 | 520,000 | 554,544 | ||
1,066,910 | ||||||
Transportation revenue: 0.92% | ||||||
Bay Area Toll Authority Series A (SIFMA Municipal Swap+1.25%)± | 5.26 | 4-1-2036 | 9,810,000 | 9,866,684 | ||
Utilities revenue: 1.46% | ||||||
California Community Choice Financing Authority Series B-1øø | 4.00 | 2-1-2052 | 1,500,000 | 1,490,128 | ||
California Community Choice Financing Authority Clean Energy Project Green Bond Series B-1øø | 5.00 | 7-1-2053 | 4,000,000 | 4,202,643 | ||
California Community Choice Financing Authority Clean Energy Project Green Bond Series C | 5.00 | 10-1-2031 | 830,000 | 858,778 | ||
City of Vernon Electric System Revenue Series 2022-A | 5.00 | 8-1-2026 | 600,000 | 617,164 | ||
City of Vernon Electric System Revenue Series A | 5.00 | 8-1-2031 | 1,160,000 | 1,256,511 | ||
City of Victorville Electric Revenue Series A | 5.00 | 5-1-2033 | 500,000 | 576,034 | ||
City of Victorville Electric Revenue Series A | 5.00 | 5-1-2034 | 500,000 | 573,845 | ||
M-S-R Energy Authority Series B | 7.00 | 11-1-2034 | 2,035,000 | 2,489,322 | ||
M-S-R Energy Authority Series C | 7.00 | 11-1-2034 | 3,000,000 | 3,669,762 | ||
15,734,187 | ||||||
43,982,519 | ||||||
Colorado: 1.40% | ||||||
Airport revenue: 0.32% | ||||||
City & County of Denver Airport System Revenue Series C | 5.25 | 11-15-2039 | 1,295,000 | 1,477,152 | ||
City & County of Denver Airport System Revenue Series C | 5.25 | 11-15-2040 | 670,000 | 758,458 | ||
City & County of Denver Airport System Revenue Series C | 5.25 | 11-15-2041 | 570,000 | 642,988 | ||
City & County of Denver Airport System Revenue Series C | 5.25 | 11-15-2042 | 500,000 | 561,776 | ||
3,440,374 | ||||||
GO revenue: 0.22% | ||||||
Mesa County Valley School District No. 51 Grand Junction | 5.50 | 12-1-2035 | 2,175,000 | 2,378,196 | ||
Tax revenue: 0.25% | ||||||
Regional Transportation District Denver Transit Partners LLC Series A | 5.00 | 7-15-2028 | 885,000 | 947,879 | ||
Regional Transportation District Denver Transit Partners LLC Series A | 5.00 | 1-15-2029 | 600,000 | 646,781 | ||
Regional Transportation District Denver Transit Partners LLC Series A | 5.00 | 1-15-2030 | 1,000,000 | 1,091,510 | ||
2,686,170 | ||||||
Utilities revenue: 0.56% | ||||||
Public Authority for Colorado Energy | 6.50 | 11-15-2038 | 5,000,000 | 6,034,023 | ||
Water & sewer revenue: 0.05% | ||||||
Central Weld County Water District (AGM Insured) | 4.00 | 12-1-2033 | 500,000 | 531,115 | ||
15,069,878 | ||||||
The accompanying notes are an integral part of these financial statements.
14 | Allspring Intermediate Tax/AMT-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Connecticut: 1.57% | ||||||
Education revenue: 0.21% | ||||||
Connecticut State HEFA University of Hartford Series N | 5.00 % | 7-1-2029 | $ | 480,000 | $487,939 | |
Connecticut State HEFA University of Hartford Series N | 5.00 | 7-1-2030 | 1,745,000 | 1,772,951 | ||
2,260,890 | ||||||
GO revenue: 0.90% | ||||||
City of Bridgeport Series A | 5.00 | 6-1-2031 | 1,855,000 | 2,080,835 | ||
State of Connecticut Series B | 4.00 | 6-1-2034 | 750,000 | 800,329 | ||
State of Connecticut Series F | 5.00 | 11-15-2032 | 300,000 | 312,068 | ||
Town of Hamden (AGM Insured) | 5.00 | 8-15-2033 | 1,100,000 | 1,252,371 | ||
Town of Hamden Series A (BAM Insured) | 5.00 | 8-15-2026 | 2,000,000 | 2,093,948 | ||
Town of Hamden Series A (BAM Insured) | 5.00 | 8-15-2027 | 1,200,000 | 1,275,786 | ||
Town of Hamden Series A (BAM Insured) | 5.00 | 8-15-2029 | 500,000 | 538,442 | ||
Town of Hamden Series A (BAM Insured) | 5.00 | 8-15-2030 | 1,200,000 | 1,293,083 | ||
9,646,862 | ||||||
Health revenue: 0.27% | ||||||
Connecticut State HEFA Stamford Hospital Obligated Group Series M | 4.00 | 7-1-2035 | 1,000,000 | 992,520 | ||
Connecticut State HEFA Stamford Hospital Obligated Group Series M | 4.00 | 7-1-2038 | 2,000,000 | 1,903,104 | ||
2,895,624 | ||||||
Tax revenue: 0.19% | ||||||
State of Connecticut Special Tax Revenue Series A | 4.00 | 9-1-2036 | 1,000,000 | 1,011,153 | ||
State of Connecticut Special Tax Revenue Series A | 5.00 | 8-1-2030 | 1,000,000 | 1,036,887 | ||
2,048,040 | ||||||
16,851,416 | ||||||
Delaware: 0.19% | ||||||
Education revenue: 0.19% | ||||||
Delaware State EDA Odyssey Charter School Series A144A | 6.75 | 9-1-2035 | 2,000,000 | 2,050,301 | ||
District of Columbia: 0.86% | ||||||
GO revenue: 0.43% | ||||||
District of Columbia Series C | 5.00 | 6-1-2034 | 3,000,000 | 3,046,457 | ||
District of Columbia Series C | 5.00 | 6-1-2035 | 1,620,000 | 1,642,765 | ||
4,689,222 | ||||||
Miscellaneous revenue: 0.07% | ||||||
Washington Convention & Sports Authority Series A | 4.00 | 10-1-2034 | 750,000 | 777,499 | ||
Tax revenue: 0.23% | ||||||
Washington Convention & Sports Authority Series B | 4.00 | 10-1-2033 | 720,000 | 751,104 | ||
Washington Convention & Sports Authority Series B | 4.00 | 10-1-2034 | 650,000 | 673,833 | ||
Washington Convention & Sports Authority Series B | 4.00 | 10-1-2035 | 1,000,000 | 1,028,678 | ||
2,453,615 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 15
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Transportation revenue: 0.13% | ||||||
Metropolitan Washington Airports Authority Dulles Toll Road Revenue Series B | 5.00 % | 10-1-2034 | $ | 1,250,000 | $1,353,121 | |
9,273,457 | ||||||
Florida: 7.03% | ||||||
Airport revenue: 0.55% | ||||||
County of Miami-Dade Aviation Revenue Series A | 4.00 | 10-1-2035 | 1,600,000 | 1,650,554 | ||
County of Miami-Dade Aviation Revenue Series A | 5.00 | 10-1-2041 | 2,000,000 | 2,053,088 | ||
Jacksonville Port Authority Series B | 5.00 | 11-1-2035 | 2,045,000 | 2,235,036 | ||
5,938,678 | ||||||
Health revenue: 1.36% | ||||||
City of Jacksonville Baptist Health System Obligated Group Series Eø | 4.10 | 8-1-2036 | 1,300,000 | 1,300,000 | ||
Highlands County Health Facilities Authority AdventHealth Obligated Group Series Aø | 4.10 | 11-15-2037 | 2,200,000 | 2,200,000 | ||
Lee County IDA Shell Point Obligated Group | 5.00 | 11-15-2039 | 4,140,000 | 4,107,777 | ||
Lee Memorial Health System Lee Memorial Health System Obligated Group Series A-1 | 5.00 | 4-1-2036 | 4,500,000 | 4,810,474 | ||
Miami-Dade County Health Facilities Authority Variety Children’s Hospital Obligated Group | 5.00 | 8-1-2031 | 500,000 | 526,797 | ||
Miami-Dade County Health Facilities Authority Variety Children’s Hospital Obligated Group | 5.00 | 8-1-2033 | 1,645,000 | 1,730,223 | ||
14,675,271 | ||||||
Miscellaneous revenue: 2.24% | ||||||
City of Orlando Tourist Development Tax Revenue Series A (AGM Insured) | 5.00 | 11-1-2032 | 2,000,000 | 2,134,600 | ||
City of Orlando Tourist Development Tax Revenue Series A (AGM Insured) | 5.00 | 11-1-2033 | 4,500,000 | 4,795,989 | ||
City of Orlando Tourist Development Tax Revenue Series A (AGM Insured) | 5.00 | 11-1-2034 | 600,000 | 635,895 | ||
County of Pasco Cigarette Tax Revenue Series A (AGM Insured) | 5.50 | 9-1-2042 | 500,000 | 562,654 | ||
Duval County Public Schools Series A (AGM Insured) | 5.00 | 7-1-2034 | 2,000,000 | 2,238,008 | ||
Duval County Public Schools Series A (AGM Insured) | 5.00 | 7-1-2035 | 2,000,000 | 2,221,274 | ||
Duval County Public Schools COP Series B | 5.00 | 7-1-2028 | 2,500,000 | 2,581,598 | ||
Duval County Public Schools COP Series B | 5.00 | 7-1-2029 | 5,000,000 | 5,160,272 | ||
Monroe County School District COP Series A | 5.00 | 6-1-2034 | 1,500,000 | 1,632,305 | ||
Monroe County School District COP Series A | 5.00 | 6-1-2035 | 1,000,000 | 1,084,341 | ||
Village Community Development District No. 15144A%% | 4.85 | 5-1-2038 | 1,000,000 | 1,007,665 | ||
24,054,601 | ||||||
Tax revenue: 0.30% | ||||||
Polk County School District | 5.00 | 10-1-2033 | 2,915,000 | 3,267,684 | ||
Transportation revenue: 0.40% | ||||||
County of Osceola Transportation Revenue Series A-1 | 5.00 | 10-1-2034 | 375,000 | 398,041 | ||
County of Osceola Transportation Revenue Series A-1 | 5.00 | 10-1-2035 | 400,000 | 421,339 | ||
County of Osceola Transportation Revenue Series A-1 | 5.00 | 10-1-2036 | 600,000 | 627,302 | ||
The accompanying notes are an integral part of these financial statements.
16 | Allspring Intermediate Tax/AMT-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Transportation revenue (continued) | ||||||
County of Osceola Transportation Revenue Series A-1 | 5.00 % | 10-1-2037 | $ | 525,000 | $545,911 | |
Miami-Dade County Expressway Authority Series ZF2385 (AGM Insured, Citibank N.A. LIQ)144Aø | 4.09 | 7-1-2035 | 1,050,000 | 1,050,000 | ||
Mid-Bay Bridge Authority Series A | 5.00 | 10-1-2025 | 1,250,000 | 1,266,116 | ||
4,308,709 | ||||||
Utilities revenue: 0.16% | ||||||
Fort Pierce Utilities Authority Series A (AGM Insured) | 5.00 | 10-1-2035 | 500,000 | 567,983 | ||
Fort Pierce Utilities Authority Series A (AGM Insured) | 5.00 | 10-1-2037 | 1,040,000 | 1,156,775 | ||
1,724,758 | ||||||
Water & sewer revenue: 2.02% | ||||||
North Sumter County Utility Dependent District (BAM Insured) | 5.00 | 10-1-2031 | 500,000 | 562,965 | ||
North Sumter County Utility Dependent District (BAM Insured) | 5.00 | 10-1-2032 | 950,000 | 1,068,643 | ||
North Sumter County Utility Dependent District (BAM Insured) | 5.00 | 10-1-2035 | 1,290,000 | 1,434,086 | ||
North Sumter County Utility Dependent District (BAM Insured) | 5.00 | 10-1-2036 | 880,000 | 970,521 | ||
Tohopekaliga Water Authority144A | 5.00 | 10-1-2025 | 12,000,000 | 12,532,394 | ||
Wildwood Utility Dependent District South Sumter Utility Project (BAM Insured) | 5.00 | 10-1-2029 | 400,000 | 447,897 | ||
Wildwood Utility Dependent District South Sumter Utility Project (BAM Insured) | 5.00 | 10-1-2031 | 200,000 | 230,634 | ||
Wildwood Utility Dependent District South Sumter Utility Project (BAM Insured) | 5.00 | 10-1-2033 | 800,000 | 917,409 | ||
Wildwood Utility Dependent District South Sumter Utility Project (BAM Insured) | 5.00 | 10-1-2034 | 900,000 | 1,030,851 | ||
Wildwood Utility Dependent District South Sumter Utility Project (BAM Insured) | 5.00 | 10-1-2035 | 750,000 | 852,794 | ||
Wildwood Utility Dependent District South Sumter Utility Project (BAM Insured) | 5.00 | 10-1-2037 | 1,500,000 | 1,674,278 | ||
21,722,472 | ||||||
75,692,173 | ||||||
Georgia: 2.24% | ||||||
Industrial development revenue: 0.05% | ||||||
George L Smith II Congress Center Authority Signia Hotel Management LLC Series A | 4.00 | 1-1-2036 | 500,000 | 476,617 | ||
Utilities revenue: 2.19% | ||||||
Board of Water Light & Sinking Fund Commissioners of The City of Dalton | 4.00 | 3-1-2033 | 1,100,000 | 1,108,269 | ||
Board of Water Light & Sinking Fund Commissioners of The City of Dalton | 4.00 | 3-1-2034 | 1,200,000 | 1,201,528 | ||
Development Authority of Burke County Oglethorpe Power Corp. Series Aøø | 1.50 | 1-1-2040 | 3,000,000 | 2,834,448 | ||
Development Authority of Burke County Oglethorpe Power Corp. Series Eøø | 3.25 | 11-1-2045 | 6,000,000 | 5,912,198 | ||
Main Street Natural Gas, Inc. Series A | 5.00 | 5-15-2029 | 2,600,000 | 2,678,434 | ||
Main Street Natural Gas, Inc. Series Aøø | 5.00 | 6-1-2053 | 5,000,000 | 5,176,800 | ||
Municipal Electric Authority of Georgia Series A | 4.00 | 1-1-2036 | 1,500,000 | 1,502,563 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 17
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue (continued) | ||||||
Municipal Electric Authority of Georgia Series A | 5.00 % | 1-1-2035 | $ | 925,000 | $989,621 | |
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project J Series A | 5.00 | 1-1-2032 | 525,000 | 561,986 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project J Series A | 5.00 | 1-1-2034 | 930,000 | 994,693 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project J Series A | 5.00 | 1-1-2035 | 600,000 | 638,427 | ||
23,598,967 | ||||||
24,075,584 | ||||||
Guam: 0.39% | ||||||
Airport revenue: 0.04% | ||||||
Antonio B Won Pat International Airport Authority Series B | 5.00 | 10-1-2023 | 400,000 | 401,421 | ||
Miscellaneous revenue: 0.12% | ||||||
Territory of Guam Series F | 4.00 | 1-1-2042 | 1,500,000 | 1,325,789 | ||
Water & sewer revenue: 0.23% | ||||||
Guam Government Waterworks Authority | 5.25 | 7-1-2033 | 2,500,000 | 2,500,000 | ||
4,227,210 | ||||||
Hawaii: 0.10% | ||||||
Airport revenue: 0.10% | ||||||
State of Hawaii Harbor System Revenue Series C | 4.00 | 7-1-2036 | 500,000 | 511,733 | ||
State of Hawaii Harbor System Revenue Series C | 4.00 | 7-1-2037 | 600,000 | 609,731 | ||
1,121,464 | ||||||
Illinois: 16.25% | ||||||
Airport revenue: 0.70% | ||||||
Chicago Midway International Airport Series B | 4.00 | 1-1-2035 | 2,860,000 | 2,873,692 | ||
Chicago Midway International Airport Series B | 5.00 | 1-1-2046 | 2,000,000 | 2,033,219 | ||
Chicago O’Hare International Airport Series A | 4.00 | 1-1-2038 | 1,000,000 | 1,005,896 | ||
Chicago O’Hare International Airport Series B | 5.00 | 1-1-2036 | 1,530,000 | 1,658,538 | ||
7,571,345 | ||||||
Education revenue: 0.73% | ||||||
Illinois Finance Authority Acero Charter Schools, Inc. Obligated Group144A | 4.00 | 10-1-2034 | 440,000 | 385,186 | ||
Illinois Finance Authority Acero Charter Schools, Inc. Obligated Group144A | 4.00 | 10-1-2035 | 1,025,000 | 879,402 | ||
Illinois Finance Authority Bradley University Series A | 4.00 | 8-1-2035 | 805,000 | 759,894 | ||
Illinois Finance Authority Bradley University Series C | 5.00 | 8-1-2032 | 2,500,000 | 2,568,353 | ||
Illinois Finance Authority Illinois Wesleyan University | 5.00 | 9-1-2026 | 680,000 | 707,108 | ||
Illinois Finance Authority Provident Group - UIUC Properties LLC Series A | 5.00 | 10-1-2026 | 450,000 | 471,901 | ||
Illinois Finance Authority Provident Group - UIUC Properties LLC Series A | 5.00 | 10-1-2031 | 400,000 | 438,128 | ||
Illinois Finance Authority Provident Group - UIUC Properties LLC Series A | 5.00 | 10-1-2039 | 700,000 | 730,168 | ||
The accompanying notes are an integral part of these financial statements.
18 | Allspring Intermediate Tax/AMT-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
Southern Illinois University Series A (BAM Insured) | 4.00 % | 4-1-2029 | $ | 400,000 | $409,248 | |
Southern Illinois University Series A (BAM Insured) | 4.00 | 4-1-2030 | 525,000 | 528,057 | ||
7,877,445 | ||||||
GO revenue: 4.71% | ||||||
Chicago Board of Education Series A | 5.00 | 12-1-2042 | 1,975,000 | 1,948,360 | ||
Chicago Board of Education Series B | 5.00 | 12-1-2030 | 3,000,000 | 3,172,800 | ||
Chicago Board of Education Series B-1 (NPFGC Insured)¤ | 0.00 | 12-1-2025 | 3,380,000 | 3,063,975 | ||
Chicago Board of Education Series C | 5.25 | 12-1-2039 | 5,000,000 | 5,011,140 | ||
Chicago Board of Education Series H | 5.00 | 12-1-2036 | 1,650,000 | 1,672,026 | ||
Chicago Board of Education Dedicated Capital Improvement Tax | 5.00 | 4-1-2041 | 2,250,000 | 2,346,295 | ||
Chicago Park District Series B (BAM Insured) | 5.00 | 1-1-2029 | 2,000,000 | 2,014,575 | ||
City of Chicago Series A | 5.00 | 1-1-2039 | 1,000,000 | 1,032,494 | ||
City of Chicago Series A | 5.50 | 1-1-2039 | 4,750,000 | 5,215,536 | ||
City of Chicago Series A | 5.50 | 1-1-2040 | 1,000,000 | 1,093,512 | ||
City of Waukegan Series B (AGM Insured) | 4.00 | 12-30-2024 | 1,030,000 | 1,040,325 | ||
Cook County Community College District No. 508 | 5.25 | 12-1-2025 | 1,665,000 | 1,670,513 | ||
Cook County Community College District No. 508 | 5.25 | 12-1-2027 | 1,295,000 | 1,299,054 | ||
Cook County Community College District No. 508 | 5.25 | 12-1-2028 | 1,250,000 | 1,253,773 | ||
Cook County Community College District No. 508 | 5.25 | 12-1-2030 | 3,000,000 | 3,005,827 | ||
Cook County Community College District No. 508 | 5.25 | 12-1-2031 | 3,200,000 | 3,205,713 | ||
County of Cook | 5.00 | 11-15-2034 | 1,300,000 | 1,333,342 | ||
County of Cook Series A | 5.00 | 11-15-2029 | 1,000,000 | 1,052,239 | ||
County of Sangamon (BAM Insured) | 4.00 | 12-15-2036 | 450,000 | 455,498 | ||
County of Sangamon (BAM Insured) | 4.00 | 12-15-2040 | 300,000 | 297,986 | ||
Madison Bond Etc Counties Community Unit School District No. 5 Highland Series B (AGM Insured) | 5.50 | 2-1-2033 | 600,000 | 686,212 | ||
Madison Bond Etc Counties Community Unit School District No. 5 Highland Series B (AGM Insured) | 5.50 | 2-1-2038 | 1,635,000 | 1,811,673 | ||
Sangamon Logan & Menard Counties Community Unit School District No. 15 Williamsville Series B (BAM Insured) | 4.00 | 12-1-2037 | 700,000 | 704,137 | ||
Sangamon Logan & Menard Counties Community Unit School District No. 15 Williamsville Series B (BAM Insured) | 5.00 | 12-1-2034 | 400,000 | 433,532 | ||
Sangamon Logan & Menard Counties Community Unit School District No. 15 Williamsville Series B (BAM Insured) | 5.00 | 12-1-2035 | 450,000 | 484,867 | ||
Sangamon Logan & Menard Counties Community Unit School District No. 15 Williamsville Series B (BAM Insured) | 5.00 | 12-1-2036 | 500,000 | 534,979 | ||
South Sangamon Water Commission (AGM Insured) | 4.00 | 1-1-2029 | 525,000 | 542,210 | ||
South Sangamon Water Commission (AGM Insured) | 4.00 | 1-1-2030 | 600,000 | 618,890 | ||
South Sangamon Water Commission (AGM Insured) | 4.00 | 1-1-2031 | 625,000 | 641,935 | ||
South Sangamon Water Commission (AGM Insured) | 4.00 | 1-1-2033 | 500,000 | 510,802 | ||
South Sangamon Water Commission (AGM Insured) | 4.00 | 1-1-2036 | 570,000 | 571,341 | ||
South Sangamon Water Commission (AGM Insured) | 4.00 | 1-1-2037 | 525,000 | 520,630 | ||
State of Illinois Series A | 5.00 | 3-1-2033 | 1,000,000 | 1,128,168 | ||
Stephenson County School District No. 145 Freeport Series A (AGM Insured) | 5.00 | 2-1-2033 | 285,000 | 311,924 | ||
50,686,283 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 19
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue: 0.33% | ||||||
Illinois Finance Authority Ann & Robert H Lurie Children’s Hospital of Chicago Obligated Group | 5.00 % | 8-15-2034 | $ | 1,000,000 | $1,058,154 | |
Illinois Finance Authority Edward-Elmhurst Healthcare Obligated Group Series A | 5.00 | 1-1-2026 | 1,000,000 | 1,045,637 | ||
Illinois Finance Authority Lutheran Life Communities Obligated Group Series A | 5.00 | 11-1-2035 | 900,000 | 832,670 | ||
Illinois Finance Authority University of Illinois | 5.00 | 10-1-2032 | 520,000 | 557,663 | ||
3,494,124 | ||||||
Housing revenue: 4.58% | ||||||
Illinois Sports Facilities Authority | 5.00 | 6-15-2028 | 1,000,000 | 1,026,591 | ||
Metropolitan Pier & Exposition Authority Series A (NPFGC Insured)¤ | 0.00 | 6-15-2029 | 10,000,000 | 7,988,324 | ||
Metropolitan Pier & Exposition Authority Series A (NPFGC Insured)¤## | 0.00 | 12-15-2029 | 33,200,000 | 26,040,460 | ||
Metropolitan Pier & Exposition Authority Series A (NPFGC Insured)¤ | 0.00 | 12-15-2030 | 12,800,000 | 9,605,313 | ||
Northern Illinois University (BAM Insured) | 4.00 | 10-1-2033 | 1,000,000 | 1,010,746 | ||
Northern Illinois University (BAM Insured) | 4.00 | 10-1-2036 | 1,650,000 | 1,631,691 | ||
Northern Illinois University (BAM Insured) | 5.00 | 10-1-2031 | 900,000 | 968,880 | ||
Peoria Public Building Commission Peoria City School District No. 150 (BAM Insured) | 5.00 | 12-1-2024 | 1,000,000 | 1,026,073 | ||
49,298,078 | ||||||
Miscellaneous revenue: 0.23% | ||||||
Illinois Finance Authority Field Museum of Natural History (U.S. SOFR+1.20%)± | 4.74 | 11-1-2034 | 1,480,000 | 1,478,878 | ||
Northern Illinois University (AGM Insured) | 5.00 | 9-1-2024 | 1,000,000 | 1,015,957 | ||
2,494,835 | ||||||
Tax revenue: 3.28% | ||||||
Chicago Transit Authority Sales Tax Receipts Fund | 5.25 | 12-1-2049 | 3,000,000 | 3,042,988 | ||
County of Cook Sales Tax Revenue | 5.00 | 11-15-2033 | 4,000,000 | 4,275,046 | ||
County of Cook Sales Tax Revenue | 5.25 | 11-15-2035 | 4,000,000 | 4,281,111 | ||
County of Cook Sales Tax Revenue Series A | 5.00 | 11-15-2036 | 1,160,000 | 1,256,741 | ||
County of Cook Sales Tax Revenue Series A | 5.00 | 11-15-2037 | 1,625,000 | 1,747,893 | ||
Illinois Sports Facilities Authority (AGM Insured) | 5.00 | 6-15-2028 | 2,500,000 | 2,525,180 | ||
Illinois Sports Facilities Authority (AGM Insured) | 5.25 | 6-15-2030 | 4,000,000 | 4,052,810 | ||
Illinois Sports Facilities Authority (AGM Insured) | 5.25 | 6-15-2032 | 3,000,000 | 3,038,771 | ||
Sales Tax Securitization Corp. Series A | 5.00 | 1-1-2029 | 1,000,000 | 1,090,406 | ||
Sales Tax Securitization Corp. Series C%% | 5.00 | 1-1-2035 | 2,500,000 | 2,771,615 | ||
Sales Tax Securitization Corp. Series C | 5.25 | 1-1-2035 | 4,700,000 | 5,096,159 | ||
Southwestern Illinois Development Authority | 5.00 | 3-1-2025 | 2,560,000 | 2,170,803 | ||
35,349,523 | ||||||
Transportation revenue: 0.27% | ||||||
Illinois State Toll Highway Authority Series A | 5.00 | 1-1-2037 | 1,250,000 | 1,380,307 | ||
Illinois State Toll Highway Authority Series A | 5.00 | 1-1-2038 | 1,355,000 | 1,483,559 | ||
2,863,866 | ||||||
The accompanying notes are an integral part of these financial statements.
20 | Allspring Intermediate Tax/AMT-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Water & sewer revenue: 1.42% | ||||||
City of Chicago Wastewater Transmission Revenue | 5.00 % | 1-1-2027 | $ | 2,865,000 | $2,883,460 | |
City of Chicago Wastewater Transmission Revenue | 5.00 | 1-1-2032 | 1,000,000 | 1,005,988 | ||
City of Chicago Wastewater Transmission Revenue | 5.00 | 1-1-2033 | 1,000,000 | 1,005,907 | ||
City of Chicago Wastewater Transmission Revenue | 5.00 | 1-1-2034 | 1,000,000 | 1,003,536 | ||
City of Chicago Wastewater Transmission Revenue | 5.00 | 1-1-2039 | 865,000 | 867,739 | ||
City of Chicago Waterworks Revenue (AGM Insured) | 5.25 | 11-1-2033 | 2,000,000 | 2,160,707 | ||
City of Chicago Waterworks Revenue Series B (AGM Insured) | 4.00 | 11-1-2040 | 2,000,000 | 1,983,927 | ||
City of Chicago Waterworks Revenue Second Lien Project | 5.00 | 11-1-2033 | 1,000,000 | 1,017,981 | ||
Illinois Finance Authority State of Illinois Water Revolving Fund - Clean Water Program | 5.25 | 7-1-2035 | 3,000,000 | 3,374,586 | ||
15,303,831 | ||||||
174,939,330 | ||||||
Indiana: 1.38% | ||||||
Airport revenue: 0.12% | ||||||
Indianapolis Local Public Improvement Bond Bank Series I-2 | 5.00 | 1-1-2033 | 1,120,000 | 1,260,505 | ||
Health revenue: 0.33% | ||||||
Indiana Finance Authority Indiana University Health, Inc. Obligated Group Series A | 4.00 | 12-1-2040 | 3,655,000 | 3,575,305 | ||
Housing revenue: 0.28% | ||||||
Indiana Finance Authority Marion County Capital Improvement Board Series A | 5.25 | 2-1-2028 | 2,000,000 | 2,081,962 | ||
North West Hendricks Multi-Building Corp. North West Hendricks School Corp. | 4.00 | 7-15-2031 | 900,000 | 939,883 | ||
3,021,845 | ||||||
Industrial development revenue: 0.24% | ||||||
Indiana Finance Authority Ohio Valley Electric Corp. Series B | 2.50 | 11-1-2030 | 2,925,000 | 2,557,544 | ||
Utilities revenue: 0.09% | ||||||
Indiana Finance Authority Ohio Valley Electric Corp. Series A | 4.25 | 11-1-2030 | 1,000,000 | 994,666 | ||
Water & sewer revenue: 0.32% | ||||||
Indiana Finance Authority CWA Authority, Inc. Series A | 5.00 | 10-1-2030 | 2,315,000 | 2,362,313 | ||
Indiana Finance Authority CWA Authority, Inc. Series A | 5.00 | 10-1-2031 | 1,035,000 | 1,055,773 | ||
3,418,086 | ||||||
14,827,951 | ||||||
Iowa: 0.51% | ||||||
Housing revenue: 0.23% | ||||||
City of Altoona Series C | 5.00 | 6-1-2027 | 2,310,000 | 2,431,479 | ||
Utilities revenue: 0.28% | ||||||
PEFA, Inc.øø | 5.00 | 9-1-2049 | 3,000,000 | 3,058,829 | ||
5,490,308 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 21
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Kansas: 0.11% | ||||||
Tax revenue: 0.11% | ||||||
Wyandotte County-Kansas City Unified Government Sales Tax Revenue CAB144A¤ | 0.00 % | 9-1-2034 | $ | 3,030,000 | $1,168,478 | |
Kentucky: 0.37% | ||||||
Education revenue: 0.15% | ||||||
Kentucky Bond Development Corp. Centre College of Kentucky | 4.00 | 6-1-2030 | 170,000 | 176,888 | ||
Kentucky Bond Development Corp. Centre College of Kentucky | 4.00 | 6-1-2031 | 260,000 | 270,138 | ||
Kentucky Bond Development Corp. Centre College of Kentucky | 4.00 | 6-1-2032 | 230,000 | 237,108 | ||
Kentucky Bond Development Corp. Centre College of Kentucky | 4.00 | 6-1-2033 | 180,000 | 184,112 | ||
Kentucky Bond Development Corp. Centre College of Kentucky | 4.00 | 6-1-2035 | 460,000 | 461,878 | ||
Kentucky Bond Development Corp. Centre College of Kentucky | 4.00 | 6-1-2036 | 235,000 | 233,435 | ||
1,563,559 | ||||||
Miscellaneous revenue: 0.12% | ||||||
Kentucky Interlocal School Transportation Association COP | 4.00 | 3-1-2033 | 1,300,000 | 1,321,239 | ||
Transportation revenue: 0.10% | ||||||
Kentucky Public Transportation Infrastructure Authority Series B CAB¤ | 0.00 | 7-1-2029 | 1,400,000 | 1,071,941 | ||
3,956,739 | ||||||
Louisiana: 3.19% | ||||||
Airport revenue: 0.27% | ||||||
New Orleans Aviation Board Louis Armstrong New Orleans International Airport Series A | 5.00 | 1-1-2033 | 750,000 | 792,517 | ||
New Orleans Aviation Board Louis Armstrong New Orleans International Airport Customer Facility Charge Revenue (AGM Insured) | 5.00 | 1-1-2035 | 2,000,000 | 2,124,775 | ||
2,917,292 | ||||||
Education revenue: 0.56% | ||||||
Louisiana Public Facilities Authority Loyola University New Orleans CAB¤ | 0.00 | 10-1-2027 | 3,380,000 | 3,433,254 | ||
Louisiana Public Facilities Authority Loyola University New Orleans CAB¤ | 0.00 | 10-1-2028 | 2,500,000 | 2,558,162 | ||
5,991,416 | ||||||
Housing revenue: 1.01% | ||||||
State of Louisiana 1-49 South Project | 5.00 | 9-1-2027 | 2,700,000 | 2,807,345 | ||
State of Louisiana 1-49 South Project | 5.00 | 9-1-2028 | 2,405,000 | 2,500,617 | ||
State of Louisiana 1-49 South Project | 5.00 | 9-1-2029 | 2,695,000 | 2,802,146 | ||
State of Louisiana 1-49 South Project | 5.00 | 9-1-2030 | 2,700,000 | 2,807,345 | ||
10,917,453 | ||||||
Miscellaneous revenue: 0.16% | ||||||
Louisiana Public Facilities Authority Roman Catholic Church of the Archdiocese of New Orleans | 5.00 | 7-1-2024 | 1,000,000 | 850,000 | ||
The accompanying notes are an integral part of these financial statements.
22 | Allspring Intermediate Tax/AMT-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue (continued) | ||||||
Louisiana Public Facilities Authority Roman Catholic Church of the Archdiocese of New Orleans | 5.00 % | 7-1-2025 | $ | 600,000 | $510,000 | |
Louisiana Public Facilities Authority Roman Catholic Church of the Archdiocese of New Orleans | 5.00 | 7-1-2026 | 500,000 | 425,000 | ||
1,785,000 | ||||||
Tax revenue: 0.20% | ||||||
Jefferson Sales Tax District Series B (AGM Insured) | 5.00 | 12-1-2031 | 1,000,000 | 1,081,970 | ||
Jefferson Sales Tax District Series B (AGM Insured) | 5.00 | 12-1-2032 | 1,000,000 | 1,079,959 | ||
2,161,929 | ||||||
Transportation revenue: 0.29% | ||||||
Greater New Orleans Expressway Commission (AGM Insured) | 5.00 | 11-1-2031 | 1,000,000 | 1,038,016 | ||
Greater New Orleans Expressway Commission (AGM Insured) | 5.00 | 11-1-2032 | 1,000,000 | 1,037,561 | ||
Greater New Orleans Expressway Commission (AGM Insured) | 5.00 | 11-1-2033 | 1,000,000 | 1,036,653 | ||
3,112,230 | ||||||
Water & sewer revenue: 0.70% | ||||||
City of New Orleans Sewerage Service Revenue Series B | 5.00 | 6-1-2032 | 1,000,000 | 1,106,925 | ||
City of New Orleans Sewerage Service Revenue Series B | 5.00 | 6-1-2033 | 695,000 | 768,577 | ||
City of New Orleans Sewerage Service Revenue Series B | 5.00 | 6-1-2034 | 600,000 | 662,931 | ||
City of New Orleans Sewerage Service Revenue Series B (AGM Insured) | 4.00 | 6-1-2035 | 400,000 | 415,731 | ||
City of New Orleans Sewerage Service Revenue Series B (AGM Insured) | 4.00 | 6-1-2036 | 325,000 | 334,251 | ||
City of New Orleans Sewerage Service Revenue Series B (AGM Insured) | 4.00 | 6-1-2037 | 335,000 | 339,801 | ||
Greater Ouachita Water Co. (BAM Insured) | 4.00 | 9-1-2030 | 500,000 | 521,352 | ||
Greater Ouachita Water Co. (BAM Insured) | 4.00 | 9-1-2031 | 600,000 | 623,640 | ||
Greater Ouachita Water Co. (BAM Insured) | 4.00 | 9-1-2032 | 1,655,000 | 1,713,197 | ||
Louisiana Local Government Environmental Facilities & CDA East Baton Rouge Sewerage Commission Series A | 5.00 | 2-1-2030 | 1,000,000 | 1,010,256 | ||
7,496,661 | ||||||
34,381,981 | ||||||
Maine: 0.79% | ||||||
Education revenue: 0.51% | ||||||
Maine Health & Higher Educational Facilities Authority University of New England Series A | 5.00 | 7-1-2029 | 1,015,000 | 1,075,802 | ||
Maine Health & Higher Educational Facilities Authority University of New England Series A | 5.00 | 7-1-2030 | 1,200,000 | 1,271,213 | ||
Maine Health & Higher Educational Facilities Authority University of New England Series A | 5.00 | 7-1-2032 | 1,415,000 | 1,498,278 | ||
Maine Health & Higher Educational Facilities Authority University of New England Series A | 5.00 | 7-1-2033 | 1,485,000 | 1,572,611 | ||
5,417,904 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 23
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue: 0.28% | ||||||
Maine Health & Higher Educational Facilities Authority Series A | 5.00 % | 7-1-2035 | $ | 1,000,000 | $1,087,146 | |
Maine Health & Higher Educational Facilities Authority Maine Health Obligated Group Series A | 4.00 | 7-1-2036 | 800,000 | 805,961 | ||
Maine Health & Higher Educational Facilities Authority Maine Health Obligated Group Series A | 4.00 | 7-1-2037 | 1,150,000 | 1,139,743 | ||
3,032,850 | ||||||
8,450,754 | ||||||
Maryland: 0.59% | ||||||
Education revenue: 0.40% | ||||||
City of Westminster McDaniel College, Inc. | 5.00 | 11-1-2026 | 2,450,000 | 2,540,978 | ||
Maryland Economic Development Corp. University Park Phase I & II at Salisbury University | 5.00 | 6-1-2027 | 410,000 | 410,113 | ||
Maryland Health & Higher Educational Facilities Authority Stevenson University, Inc. Series A | 4.00 | 6-1-2035 | 470,000 | 464,766 | ||
Maryland Health & Higher Educational Facilities Authority Stevenson University, Inc. Series A | 4.00 | 6-1-2037 | 450,000 | 432,597 | ||
Maryland Health & Higher Educational Facilities Authority Stevenson University, Inc. Series A | 4.00 | 6-1-2039 | 500,000 | 470,919 | ||
4,319,373 | ||||||
Tax revenue: 0.14% | ||||||
County of Howard Downtown Columbia Development District Series A144A | 4.00 | 2-15-2028 | 480,000 | 471,655 | ||
County of Howard Downtown Columbia Development District Series A144A | 4.13 | 2-15-2034 | 1,000,000 | 952,346 | ||
1,424,001 | ||||||
Water & sewer revenue: 0.05% | ||||||
City of Baltimore Water Utility Fund Series A | 5.00 | 7-1-2035 | 500,000 | 562,643 | ||
6,306,017 | ||||||
Massachusetts: 0.10% | ||||||
Health revenue: 0.10% | ||||||
Massachusetts Development Finance Agency Tufts Medicine Obligated Group Series C (AGM Insured) | 5.00 | 10-1-2033 | 525,000 | 573,631 | ||
Massachusetts Development Finance Agency Tufts Medicine Obligated Group Series C (AGM Insured) | 5.00 | 10-1-2034 | 500,000 | 545,067 | ||
1,118,698 | ||||||
Michigan: 3.51% | ||||||
Airport revenue: 0.14% | ||||||
Wayne County Airport Authority Detroit Metropolitan Wayne County Airport Series A | 5.00 | 12-1-2032 | 800,000 | 856,466 | ||
Wayne County Airport Authority Detroit Metropolitan Wayne County Airport Series A | 5.00 | 12-1-2034 | 600,000 | 641,591 | ||
1,498,057 | ||||||
The accompanying notes are an integral part of these financial statements.
24 | Allspring Intermediate Tax/AMT-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue: 0.48% | ||||||
Flint International Academy | 5.50 % | 10-1-2027 | $ | 1,985,000 | $1,962,195 | |
Michigan State University Series B | 5.00 | 2-15-2036 | 1,325,000 | 1,441,635 | ||
Western Michigan University | 5.25 | 11-15-2029 | 1,000,000 | 1,007,442 | ||
Western Michigan University (AGM Insured) | 5.25 | 11-15-2033 | 750,000 | 755,581 | ||
5,166,853 | ||||||
GO revenue: 0.34% | ||||||
County of Kent | 5.00 | 6-1-2030 | 1,040,000 | 1,094,988 | ||
Pinckney Community Schools (SBLF Insured) | 5.00 | 5-1-2026 | 2,505,000 | 2,536,726 | ||
3,631,714 | ||||||
Health revenue: 0.28% | ||||||
Michigan Finance Authority Trinity Health Corp. Obligated Group Series 2013-2 | 4.00 | 12-1-2035 | 3,000,000 | 3,041,813 | ||
Miscellaneous revenue: 0.28% | ||||||
Michigan Finance Authority City of Detroit Income Tax Revenue Series F1 | 4.00 | 10-1-2024 | 3,000,000 | 2,984,144 | ||
Water & sewer revenue: 1.99% | ||||||
Great Lakes Water Authority Sewage Disposal System Revenue Series C | 5.00 | 7-1-2030 | 3,350,000 | 3,517,005 | ||
Michigan Finance Authority Great Lakes Water Authority Water Supply System Revenue Series D1 (AGM Insured) | 5.00 | 7-1-2035 | 2,750,000 | 2,785,875 | ||
Michigan Finance Authority Great Lakes Water Authority Water Supply System Revenue Series D1 (AGM Insured) | 5.00 | 7-1-2037 | 2,000,000 | 2,021,044 | ||
Michigan Finance Authority Great Lakes Water Authority Water Supply System Revenue Series D4 | 5.00 | 7-1-2030 | 12,000,000 | 12,146,051 | ||
Michigan Finance Authority Great Lakes Water Authority Water Supply System Revenue Series D6 (NPFGC Insured) | 5.00 | 7-1-2025 | 1,000,000 | 1,013,857 | ||
21,483,832 | ||||||
37,806,413 | ||||||
Minnesota: 0.05% | ||||||
Health revenue: 0.05% | ||||||
City of Rochester Mayo Clinicø | 4.20 | 11-15-2047 | 500,000 | 500,000 | ||
Mississippi: 0.55% | ||||||
Health revenue: 0.29% | ||||||
Mississippi Hospital Equipment & Facilities Authority North Mississippi Medical Center Obligated Group Series IV | 5.00 | 10-1-2037 | 1,000,000 | 1,048,349 | ||
Mississippi Hospital Equipment & Facilities Authority North Mississippi Medical Center Obligated Group Series IV | 5.00 | 10-1-2038 | 1,000,000 | 1,042,541 | ||
Mississippi Hospital Equipment & Facilities Authority North Mississippi Medical Center Obligated Group Series IV | 5.00 | 10-1-2039 | 1,000,000 | 1,036,431 | ||
3,127,321 | ||||||
Water & sewer revenue: 0.26% | ||||||
West Rankin Utility Authority (AGM Insured) | 5.00 | 1-1-2026 | 525,000 | 538,764 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 25
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Water & sewer revenue (continued) | ||||||
West Rankin Utility Authority (AGM Insured) | 5.00 % | 1-1-2027 | $ | 435,000 | $446,405 | |
West Rankin Utility Authority (AGM Insured) | 5.00 | 1-1-2034 | 750,000 | 769,663 | ||
West Rankin Utility Authority (AGM Insured) | 5.00 | 1-1-2035 | 1,000,000 | 1,026,218 | ||
2,781,050 | ||||||
5,908,371 | ||||||
Missouri: 0.66% | ||||||
Education revenue: 0.23% | ||||||
HEFA of the State of Missouri Webster University | 5.00 | 4-1-2027 | 2,450,000 | 2,462,247 | ||
Health revenue: 0.20% | ||||||
HEFA of the State of Missouri BJC Healthcare Obligated Group Series Cøø | 5.00 | 5-1-2052 | 2,000,000 | 2,163,844 | ||
Miscellaneous revenue: 0.23% | ||||||
Poplar Bluff R-I School District Series I (AGM Insured) | 5.00 | 3-1-2032 | 1,500,000 | 1,514,478 | ||
Poplar Bluff R-I School District Series I (AGM Insured) | 5.00 | 3-1-2034 | 1,000,000 | 1,009,717 | ||
2,524,195 | ||||||
7,150,286 | ||||||
Nebraska: 0.30% | ||||||
Health revenue: 0.11% | ||||||
Douglas County Hospital Authority No. 2 Children’s Hospital Obligated Group Series A | 4.00 | 11-15-2038 | 1,200,000 | 1,184,190 | ||
Utilities revenue: 0.19% | ||||||
Central Plains Energy Project No. 4øø | 5.00 | 3-1-2050 | 2,000,000 | 2,008,277 | ||
3,192,467 | ||||||
Nevada: 0.68% | ||||||
GO revenue: 0.66% | ||||||
City of Las Vegas Series A | 5.00 | 5-1-2031 | 1,985,000 | 2,011,757 | ||
Clark County School District Series A | 4.00 | 6-15-2034 | 5,000,000 | 5,078,420 | ||
7,090,177 | ||||||
Miscellaneous revenue: 0.02% | ||||||
City of Las Vegas Special Improvement District No. 607 | 4.25 | 6-1-2024 | 200,000 | 200,685 | ||
7,290,862 | ||||||
New Hampshire: 0.23% | ||||||
Housing revenue: 0.23% | ||||||
New Hampshire Business Finance Authority Series 1A | 4.13 | 1-20-2034 | 2,374,299 | 2,315,672 | ||
New Hampshire HFA Series E AMT | 4.80 | 7-1-2028 | 205,000 | 207,999 | ||
2,523,671 | ||||||
New Jersey: 2.77% | ||||||
Airport revenue: 0.20% | ||||||
South Jersey Port Corp. Series S-1 | 5.00 | 1-1-2028 | 2,130,000 | 2,185,486 | ||
The accompanying notes are an integral part of these financial statements.
26 | Allspring Intermediate Tax/AMT-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue: 0.35% | ||||||
City of Trenton (BAM Insured) | 5.00 % | 12-1-2024 | $ | 1,775,000 | $1,820,539 | |
City of Trenton (BAM Insured) | 5.00 | 12-1-2025 | 1,860,000 | 1,942,906 | ||
3,763,445 | ||||||
Housing revenue: 1.59% | ||||||
Garden State Preservation Trust Series A (AGM Insured) | 5.75 | 11-1-2028 | 5,000,000 | 5,430,451 | ||
New Jersey EDA Motor Vehicle Surcharge Revenue Series A | 3.13 | 7-1-2029 | 445,000 | 424,788 | ||
New Jersey EDA Motor Vehicle Surcharge Revenue Series A | 5.00 | 7-1-2033 | 2,500,000 | 2,634,134 | ||
New Jersey EDA Motor Vehicle Surcharge Revenue Series A (NPFGC Insured) | 5.25 | 7-1-2026 | 2,320,000 | 2,427,488 | ||
New Jersey TTFA Series A¤ | 0.00 | 12-15-2030 | 2,000,000 | 1,517,366 | ||
New Jersey TTFA Series A | 5.00 | 12-15-2036 | 2,000,000 | 2,118,471 | ||
New Jersey TTFA Series C | 5.25 | 6-15-2032 | 2,500,000 | 2,568,927 | ||
17,121,625 | ||||||
Miscellaneous revenue: 0.11% | ||||||
North Hudson Sewerage Authority (AGM Insured) | 5.00 | 6-1-2038 | 1,000,000 | 1,147,117 | ||
Tax revenue: 0.52% | ||||||
New Jersey TTFA Series AA | 5.00 | 6-15-2036 | 2,000,000 | 2,174,324 | ||
New Jersey TTFA Series AA | 5.00 | 6-15-2038 | 3,250,000 | 3,479,812 | ||
5,654,136 | ||||||
29,871,809 | ||||||
New Mexico: 1.29% | ||||||
GO revenue: 0.12% | ||||||
Albuquerque Municipal School District No. 12 | 5.00 | 8-1-2034 | 1,150,000 | 1,264,043 | ||
Industrial development revenue: 0.20% | ||||||
City of Farmington Southern California Edison Co. | 1.80 | 4-1-2029 | 2,540,000 | 2,182,845 | ||
Miscellaneous revenue: 0.97% | ||||||
Town of Clayton (NPFGC Insured) | 5.00 | 11-1-2028 | 9,265,000 | 9,459,513 | ||
Town of Clayton (NPFGC Insured) | 5.00 | 11-1-2029 | 1,000,000 | 1,021,092 | ||
10,480,605 | ||||||
13,927,493 | ||||||
New York: 8.52% | ||||||
Airport revenue: 0.52% | ||||||
New York Transportation Development Corp. JFK International Air Terminal LLC Series C | 5.00 | 12-1-2029 | 1,160,000 | 1,267,702 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC Series C | 5.00 | 12-1-2035 | 1,000,000 | 1,083,998 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC Series C | 5.00 | 12-1-2038 | 3,000,000 | 3,197,226 | ||
5,548,926 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 27
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue: 1.73% | ||||||
Dutchess County Local Development Corp. Culinary Institute of America Series A-1 | 5.00 % | 7-1-2027 | $ | 335,000 | $344,327 | |
Hempstead Town Local Development Corp. Academy Charter School Series A | 4.45 | 2-1-2041 | 5,500,000 | 4,328,838 | ||
Hempstead Town Local Development Corp. Academy Charter School Series A | 5.53 | 2-1-2040 | 2,725,000 | 2,624,744 | ||
Hempstead Town Local Development Corp. Academy Charter School Series A | 5.89 | 2-1-2032 | 2,745,000 | 2,780,932 | ||
Hempstead Town Local Development Corp. Academy Charter School Series A | 6.24 | 2-1-2047 | 1,750,000 | 1,783,452 | ||
Hempstead Town Local Development Corp. Academy Charter School Series B | 5.57 | 2-1-2041 | 4,140,000 | 3,987,206 | ||
Monroe County Industrial Development Corp. Monroe Community College Association, Inc. (AGM Insured) | 5.00 | 1-15-2024 | 905,000 | 913,460 | ||
Westchester County Local Development Corp. Pace University Series Bøø | 4.73 | 5-1-2044 | 1,910,000 | 1,910,000 | ||
18,672,959 | ||||||
GO revenue: 0.40% | ||||||
City of New York Series D | 5.25 | 5-1-2040 | 1,500,000 | 1,704,120 | ||
City of Yonkers Series C (AGM Insured) | 5.00 | 3-15-2035 | 1,000,000 | 1,154,295 | ||
City of Yonkers Series F (BAM Insured) | 5.00 | 11-15-2035 | 425,000 | 491,755 | ||
City of Yonkers Series F (BAM Insured) | 5.00 | 11-15-2036 | 450,000 | 513,693 | ||
City of Yonkers Series F (BAM Insured) | 5.00 | 11-15-2037 | 425,000 | 480,519 | ||
4,344,382 | ||||||
Industrial development revenue: 0.08% | ||||||
New York Liberty Development Corp. One Bryant Park LLC | 2.80 | 9-15-2069 | 1,000,000 | 910,978 | ||
Tax revenue: 2.20% | ||||||
Metropolitan Transportation Authority Dedicated Tax Fund Series A | 5.25 | 11-15-2034 | 2,000,000 | 2,139,165 | ||
New York City Transitional Finance Authority Future Tax Secured Revenue Series C-1 | 4.00 | 5-1-2044 | 2,000,000 | 1,975,697 | ||
New York Convention Center Development Corp. New York City Hotel Unit Fee Revenue | 5.00 | 11-15-2028 | 8,000,000 | 8,275,090 | ||
New York State Dormitory Authority Personal Income Tax Revenue Series D | 4.00 | 2-15-2039 | 5,000,000 | 5,026,918 | ||
New York State Dormitory Authority State of New York Personal Income Tax Revenue Series A | 5.00 | 2-15-2031 | 3,000,000 | 3,177,322 | ||
New York State Urban Development Corp. State of New York Personal Income Tax Revenue Series C | 4.00 | 3-15-2037 | 3,000,000 | 3,068,235 | ||
23,662,427 | ||||||
Transportation revenue: 3.35% | ||||||
Metropolitan Transportation Authority Series A2 | 5.00 | 11-15-2027 | 12,640,000 | 13,264,794 | ||
Metropolitan Transportation Authority Series B | 5.00 | 11-15-2033 | 2,175,000 | 2,250,590 | ||
Metropolitan Transportation Authority Series B | 5.25 | 11-15-2037 | 1,000,000 | 1,006,879 | ||
Metropolitan Transportation Authority Series C1 | 5.25 | 11-15-2031 | 11,540,000 | 11,921,159 | ||
Metropolitan Transportation Authority Series D | 5.00 | 11-15-2031 | 3,415,000 | 3,538,043 | ||
The accompanying notes are an integral part of these financial statements.
28 | Allspring Intermediate Tax/AMT-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Transportation revenue (continued) | ||||||
Metropolitan Transportation Authority Series Døø | 5.00 % | 11-15-2034 | $ | 2,000,000 | $2,030,958 | |
Metropolitan Transportation Authority Series D-1 | 5.00 | 11-15-2030 | 2,010,000 | 2,066,518 | ||
36,078,941 | ||||||
Utilities revenue: 0.19% | ||||||
New York State Energy Research & Development Authority Electric & Gas Corp. Series C%% | 4.00 | 4-1-2034 | 2,000,000 | 2,012,902 | ||
Water & sewer revenue: 0.05% | ||||||
New York City Municipal Water Finance Authority New York City Water & Sewer Systemø | 3.65 | 6-15-2035 | 200,000 | 200,000 | ||
Western Nassau County Water Authority Series A | 5.00 | 4-1-2028 | 300,000 | 308,653 | ||
508,653 | ||||||
91,740,168 | ||||||
Ohio: 1.84% | ||||||
Education revenue: 0.57% | ||||||
Northeast Ohio Medical University (BAM Insured) | 5.00 | 12-1-2032 | 315,000 | 353,222 | ||
Northeast Ohio Medical University (BAM Insured) | 5.00 | 12-1-2033 | 890,000 | 994,256 | ||
Northeast Ohio Medical University (BAM Insured) | 5.00 | 12-1-2036 | 1,025,000 | 1,114,692 | ||
Northeast Ohio Medical University (BAM Insured) | 5.00 | 12-1-2038 | 1,070,000 | 1,150,873 | ||
Northeast Ohio Medical University (BAM Insured) | 5.00 | 12-1-2040 | 1,260,000 | 1,342,927 | ||
Ohio Higher Educational Facility Commission Xavier University | 5.00 | 5-1-2029 | 1,080,000 | 1,184,781 | ||
6,140,751 | ||||||
Health revenue: 0.11% | ||||||
County of Hamilton UC Health Obligated Group | 5.00 | 9-15-2035 | 1,100,000 | 1,118,307 | ||
Housing revenue: 0.28% | ||||||
Clermont County Port Authority West Clermont Local School District (BAM Insured) | 5.00 | 12-1-2025 | 500,000 | 521,696 | ||
Clermont County Port Authority West Clermont Local School District (BAM Insured) | 5.00 | 12-1-2026 | 600,000 | 625,043 | ||
Clermont County Port Authority West Clermont Local School District (BAM Insured) | 5.00 | 12-1-2028 | 1,250,000 | 1,302,763 | ||
RiverSouth Authority Series A | 5.75 | 12-1-2027 | 550,000 | 549,968 | ||
2,999,470 | ||||||
Miscellaneous revenue: 0.09% | ||||||
Warrensville Heights City School District Series B (BAM Insured) | 4.00 | 12-1-2037 | 1,000,000 | 976,241 | ||
Tobacco revenue: 0.19% | ||||||
Buckeye Tobacco Settlement Financing Authority Series A-2 | 4.00 | 6-1-2038 | 2,100,000 | 2,079,561 | ||
Utilities revenue: 0.60% | ||||||
City of Hamilton Electric System Revenue (BAM Insured) | 4.00 | 10-1-2034 | 710,000 | 742,945 | ||
City of Hamilton Electric System Revenue (BAM Insured) | 4.00 | 10-1-2035 | 1,000,000 | 1,041,734 | ||
Cleveland Department of Public Utilities Division of Public Power (AGM Insured) | 5.00 | 11-15-2033 | 625,000 | 679,846 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 29
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue (continued) | ||||||
Lancaster Port Authority Series A (Royal Bank of Canada LIQ)øø | 5.00 % | 8-1-2049 | $ | 3,000,000 | $3,045,802 | |
Ohio Air Quality Development Authority Ohio Valley Electric Corp. Series A | 3.25 | 9-1-2029 | 1,000,000 | 932,413 | ||
6,442,740 | ||||||
19,757,070 | ||||||
Oklahoma: 3.58% | ||||||
Education revenue: 0.07% | ||||||
Oklahoma State University Series A | 4.00 | 9-1-2036 | 750,000 | 760,160 | ||
Health revenue: 0.13% | ||||||
Tender Option Bond Trust Receipts/Certificates Series 2022-034 (Barclays Bank PLC LOC, Barclays Bank PLC LIQ)144Aø | 4.05 | 9-1-2045 | 1,365,000 | 1,365,000 | ||
Housing revenue: 3.15% | ||||||
Cache Educational Facilities Authority Comanche County Independent School District No. 1 Cache Series A | 5.00 | 9-1-2025 | 3,055,000 | 3,160,296 | ||
Canadian County Educational Facilities Authority Independent School District No. 69 Mustang | 5.00 | 9-1-2027 | 2,000,000 | 2,094,321 | ||
Canadian County Educational Facilities Authority Independent School District No. 69 Mustang | 5.00 | 9-1-2028 | 2,180,000 | 2,288,809 | ||
Carter County Public Facilities Authority | 5.00 | 12-1-2027 | 1,000,000 | 1,061,356 | ||
Carter County Public Facilities Authority | 5.00 | 12-1-2028 | 1,285,000 | 1,361,281 | ||
Carter County Public Facilities Authority Carter County Independent School District No. 27 Plainview | 5.00 | 12-1-2026 | 1,000,000 | 1,057,373 | ||
Cleveland County Educational Facilities Authority Independent School District No. 40 Noble | 5.00 | 9-1-2027 | 700,000 | 749,519 | ||
Cleveland County Educational Facilities Authority Independent School District No. 40 Noble | 5.00 | 9-1-2028 | 400,000 | 428,097 | ||
Cleveland County Educational Facilities Authority Independent School District No. 40 Noble | 5.00 | 9-1-2029 | 250,000 | 266,874 | ||
Cleveland County Educational Facilities Authority Independent School District No. 40 Noble | 5.00 | 9-1-2031 | 675,000 | 716,366 | ||
Comanche County Educational Facilities Authority Comanche County Independent School District No. 16 Elgin Series A | 5.00 | 12-1-2032 | 1,600,000 | 1,746,560 | ||
Dewey County Educational Facilities Authority Independent School District No. 8 Seiling | 5.00 | 9-1-2026 | 1,230,000 | 1,299,711 | ||
Dewey County Educational Facilities Authority Independent School District No. 8 Seiling | 5.00 | 9-1-2027 | 1,240,000 | 1,310,278 | ||
Garvin County Educational Facilities Authority Independent School District No. 9 Lindsay | 5.00 | 9-1-2026 | 1,000,000 | 1,035,733 | ||
Garvin County Educational Facilities Authority Independent School District No. 9 Lindsay | 5.00 | 9-1-2027 | 1,245,000 | 1,288,699 | ||
Grady County School Finance Authority Independent School District No. 97 Tuttle | 5.00 | 9-1-2025 | 500,000 | 517,550 | ||
Grady County School Finance Authority Independent School District No. 97 Tuttle | 5.00 | 9-1-2028 | 1,160,000 | 1,199,492 | ||
Muskogee Industrial Trust Muskogee County Independent School District No. 20 | 4.00 | 9-1-2029 | 3,000,000 | 3,002,321 | ||
The accompanying notes are an integral part of these financial statements.
30 | Allspring Intermediate Tax/AMT-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
Muskogee Industrial Trust Muskogee County Independent School District No. 20 | 4.00 % | 9-1-2032 | $ | 3,000,000 | $2,981,225 | |
Oklahoma Development Finance Authority Oklahoma State Regents for Higher Education Series B | 5.00 | 6-1-2030 | 500,000 | 552,947 | ||
Oklahoma Development Finance Authority Oklahoma State Regents for Higher Education Series B | 5.00 | 6-1-2031 | 520,000 | 574,932 | ||
Oklahoma Development Finance Authority Oklahoma State Regents for Higher Education Series B | 5.00 | 6-1-2032 | 550,000 | 607,612 | ||
Pontotoc County Educational Facilities Authority Independent School District No. 19 Ada | 4.00 | 9-1-2032 | 450,000 | 466,733 | ||
Pontotoc County Educational Facilities Authority Independent School District No. 19 Ada | 4.00 | 9-1-2033 | 800,000 | 825,157 | ||
Pontotoc County Educational Facilities Authority Independent School District No. 19 Ada | 4.00 | 9-1-2034 | 625,000 | 641,470 | ||
Pontotoc County Educational Facilities Authority Independent School District No. 19 Ada | 4.00 | 9-1-2035 | 810,000 | 822,838 | ||
Pontotoc County Educational Facilities Authority Independent School District No. 19 Ada | 4.00 | 9-1-2036 | 1,000,000 | 1,003,661 | ||
Tulsa County Industrial Authority Tulsa County Independent School District No. 13 Glenpool Series A | 5.00 | 9-1-2025 | 880,000 | 912,748 | ||
33,973,959 | ||||||
Tax revenue: 0.23% | ||||||
Oklahoma City Public Property Authority Hotel Tax | 5.00 | 10-1-2027 | 1,140,000 | 1,183,792 | ||
Oklahoma City Public Property Authority Hotel Tax | 5.00 | 10-1-2028 | 1,265,000 | 1,313,315 | ||
2,497,107 | ||||||
38,596,226 | ||||||
Oregon: 0.51% | ||||||
Airport revenue: 0.23% | ||||||
Port of Portland Airport Revenue Series 2023-XL0443 | 5.00 | 7-1-2033 | 530,000 | 600,827 | ||
Port of Portland Airport Revenue Series 2023-XL0443 | 5.00 | 7-1-2037 | 705,000 | 774,905 | ||
Port of Portland Airport Revenue Series 26-A | 4.00 | 7-1-2037 | 565,000 | 574,506 | ||
Port of Portland Airport Revenue Series 26-A | 5.00 | 7-1-2033 | 400,000 | 453,455 | ||
2,403,693 | ||||||
Health revenue: 0.28% | ||||||
Medford Hospital Facilities Authority Asante Health System Obligated Group Series A | 5.00 | 8-15-2037 | 1,400,000 | 1,498,979 | ||
Oregon State Facilities Authority Samaritan Health Services, Inc. Obligated Group Series A | 5.00 | 10-1-2026 | 1,500,000 | 1,547,876 | ||
3,046,855 | ||||||
5,450,548 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 31
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Pennsylvania: 11.85% | ||||||
Airport revenue: 0.07% | ||||||
City of Philadelphia Airport Revenue Series A | 5.00 % | 7-1-2028 | $ | 315,000 | $337,650 | |
City of Philadelphia Airport Revenue Series A | 5.00 | 7-1-2031 | 450,000 | 479,378 | ||
817,028 | ||||||
Education revenue: 0.74% | ||||||
Chester County IDA Collegium Charter School Series A | 5.00 | 10-15-2027 | 1,500,000 | 1,488,506 | ||
Northampton County General Purpose Authority Lafayette College | 5.00 | 11-1-2027 | 1,000,000 | 1,079,834 | ||
Northeastern Pennsylvania Hospital & Education Authority Wilkes University Series A | 5.00 | 3-1-2026 | 885,000 | 903,291 | ||
Northeastern Pennsylvania Hospital & Education Authority Wilkes University Series A | 5.00 | 3-1-2028 | 660,000 | 675,469 | ||
Philadelphia IDA West Philadelphia Achievement Charter Elementary School | 7.00 | 5-1-2026 | 475,000 | 475,658 | ||
State Public School Building Authority Community College of Philadelphia Series A | 5.00 | 6-15-2025 | 1,250,000 | 1,280,812 | ||
State Public School Building Authority Community College of Philadelphia Series A (BAM Insured) | 5.00 | 6-15-2026 | 2,000,000 | 2,054,980 | ||
7,958,550 | ||||||
GO revenue: 4.59% | ||||||
Central Dauphin School District | 5.00 | 2-1-2030 | 1,110,000 | 1,169,986 | ||
City of Philadelphia Series A | 5.00 | 8-1-2033 | 2,020,000 | 2,177,794 | ||
City of Philadelphia Series A | 5.25 | 7-15-2029 | 4,410,000 | 4,458,466 | ||
City of Reading Series A (BAM Insured) | 5.00 | 11-1-2026 | 1,000,000 | 1,059,891 | ||
McKeesport Area School District Series A (AGM Insured) | 4.00 | 10-1-2035 | 5,505,000 | 5,686,972 | ||
Moon Area School District Series A | 5.00 | 11-15-2024 | 3,425,000 | 3,503,546 | ||
Moon Area School District Series A | 5.00 | 11-15-2029 | 1,000,000 | 1,021,323 | ||
Norristown Area School District (BAM Insured) | 5.00 | 9-1-2035 | 2,035,000 | 2,132,215 | ||
Reading School District (AGM Insured) | 5.00 | 3-1-2037 | 2,000,000 | 2,109,603 | ||
Reading School District (AGM Insured) | 5.00 | 3-1-2038 | 1,735,000 | 1,816,441 | ||
School District of Philadelphia Series A | 5.00 | 9-1-2032 | 2,300,000 | 2,515,836 | ||
School District of Philadelphia Series C | 5.00 | 9-1-2033 | 6,180,000 | 6,813,685 | ||
School District of Philadelphia Series F | 5.00 | 9-1-2028 | 5,000,000 | 5,243,441 | ||
School District of Philadelphia Series F | 5.00 | 9-1-2029 | 5,000,000 | 5,237,329 | ||
School District of Philadelphia Series F | 5.00 | 9-1-2031 | 1,240,000 | 1,291,687 | ||
School District of Philadelphia Series F | 5.00 | 9-1-2032 | 2,595,000 | 2,694,525 | ||
Scranton School District Series A (BAM Insured) | 5.00 | 6-1-2037 | 500,000 | 542,582 | ||
49,475,322 | ||||||
Health revenue: 1.57% | ||||||
Allegheny County Hospital Development Authority UPMC Obligated Group Series A | 4.00 | 7-15-2037 | 2,000,000 | 1,996,318 | ||
Allegheny County Hospital Development Authority UPMC Obligated Group Series A | 5.00 | 7-15-2025 | 155,000 | 159,710 | ||
Cumberland County Municipal Authority Diakon Lutheran Social Ministries Obligated Group | 5.00 | 1-1-2025 | 1,340,000 | 1,363,364 | ||
Cumberland County Municipal Authority Diakon Lutheran Social Ministries Obligated Group | 5.00 | 1-1-2026 | 1,370,000 | 1,391,935 | ||
The accompanying notes are an integral part of these financial statements.
32 | Allspring Intermediate Tax/AMT-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
Cumberland County Municipal Authority Diakon Lutheran Social Ministries Obligated Group | 5.00 % | 1-1-2027 | $ | 1,225,000 | $1,244,573 | |
Hospitals & Higher Education Facilities Authority of Philadelphia Temple University Health System Obligated Group (AGM Insured) | 5.00 | 7-1-2036 | 2,505,000 | 2,726,663 | ||
Montgomery County Higher Education & Health Authority Thomas Jefferson University Obligated Group | 4.00 | 9-1-2037 | 1,000,000 | 972,911 | ||
Pennsylvania EDFA UPMC Obligated Group Series A | 4.00 | 11-15-2037 | 2,540,000 | 2,534,030 | ||
Pennsylvania EDFA UPMC Obligated Group Series A1 | 5.00 | 4-15-2031 | 1,000,000 | 1,111,242 | ||
Pennsylvania EDFA UPMC Obligated Group Series A1 | 5.00 | 4-15-2034 | 1,650,000 | 1,821,850 | ||
Pennsylvania EDFA UPMC Obligated Group Series A1 | 5.00 | 4-15-2035 | 1,450,000 | 1,590,862 | ||
16,913,458 | ||||||
Housing revenue: 0.78% | ||||||
Delaware County Vocational & Technical School Authority Delaware County Intermediate Unit (BAM Insured) | 5.25 | 11-1-2033 | 2,000,000 | 2,012,932 | ||
Pennsylvania Housing Finance Agency Series 142 | 4.15 | 10-1-2034 | 1,500,000 | 1,522,388 | ||
State Public School Building Authority Chester Upland School District Series B | 5.25 | 9-15-2030 | 1,990,000 | 2,154,896 | ||
State Public School Building Authority Harrisburg School District Series B-2 (BAM Insured) | 5.00 | 12-1-2025 | 340,000 | 348,251 | ||
State Public School Building Authority Harrisburg School District Series B-2 (BAM Insured) | 5.00 | 12-1-2026 | 645,000 | 660,563 | ||
State Public School Building Authority Harrisburg School District Series B-2 (BAM Insured) | 5.00 | 12-1-2027 | 360,000 | 368,836 | ||
York County School of Technology Authority Series B (BAM Insured) | 5.00 | 2-15-2027 | 800,000 | 814,018 | ||
York County School of Technology Authority Series B (BAM Insured) | 5.00 | 2-15-2029 | 500,000 | 508,487 | ||
8,390,371 | ||||||
Miscellaneous revenue: 1.70% | ||||||
Commonwealth of Pennsylvania COP Series A | 5.00 | 7-1-2029 | 480,000 | 523,657 | ||
Delaware Valley Regional Finance Authority Series D (TD Bank NA LOC)ø | 3.95 | 11-1-2055 | 1,000,000 | 1,000,000 | ||
Philadelphia Municipal Authority | 5.00 | 4-1-2031 | 3,630,000 | 3,913,740 | ||
Philadelphia Municipal Authority | 5.00 | 4-1-2034 | 1,800,000 | 1,942,143 | ||
State Public School Building Authority Harrisburg School District Series A (AGM Insured) | 5.00 | 12-1-2028 | 3,020,000 | 3,190,269 | ||
State Public School Building Authority Harrisburg School District Series A (AGM Insured) | 5.00 | 12-1-2033 | 3,505,000 | 3,662,300 | ||
State Public School Building Authority School District of Philadelphia Series A | 5.00 | 6-1-2034 | 1,750,000 | 1,814,322 | ||
State Public School Building Authority School District of Philadelphia Series B (AGM Insured) | 5.00 | 6-1-2029 | 2,000,000 | 2,221,045 | ||
18,267,476 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 33
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue: 0.22% | ||||||
Allentown Neighborhood Improvement Zone Development Authority | 5.00 % | 5-1-2033 | $ | 700,000 | $745,523 | |
Allentown Neighborhood Improvement Zone Development Authority | 5.00 | 5-1-2034 | 750,000 | 796,353 | ||
Allentown Neighborhood Improvement Zone Development Authority | 5.00 | 5-1-2035 | 750,000 | 789,375 | ||
2,331,251 | ||||||
Tobacco revenue: 0.77% | ||||||
Commonwealth Financing Authority | 5.00 | 6-1-2027 | 2,500,000 | 2,647,617 | ||
Commonwealth Financing Authority | 5.00 | 6-1-2028 | 2,500,000 | 2,690,073 | ||
Commonwealth Financing Authority (AGM Insured) | 4.00 | 6-1-2039 | 3,000,000 | 2,949,184 | ||
8,286,874 | ||||||
Transportation revenue: 0.94% | ||||||
Pennsylvania Turnpike Commission Series B2 | 5.00 | 6-1-2031 | 5,000,000 | 5,342,550 | ||
Pennsylvania Turnpike Commission Series E CAB (AGM Insured) | 6.00 | 12-1-2030 | 4,220,000 | 4,780,671 | ||
10,123,221 | ||||||
Water & sewer revenue: 0.47% | ||||||
Capital Region Water Revenue | 5.00 | 7-15-2030 | 1,500,000 | 1,636,374 | ||
City of Philadelphia Water & Wastewater Revenue Series B | 5.00 | 11-1-2033 | 1,760,000 | 1,897,812 | ||
Pittsburgh Water & Sewer Authority Series B (AGM Insured) | 5.00 | 9-1-2031 | 670,000 | 762,866 | ||
Pittsburgh Water & Sewer Authority Series B (AGM Insured) | 5.00 | 9-1-2033 | 675,000 | 766,750 | ||
5,063,802 | ||||||
127,627,353 | ||||||
South Carolina: 2.54% | ||||||
Education revenue: 0.56% | ||||||
South Carolina Jobs-EDA Furman University | 5.00 | 10-1-2028 | 700,000 | 720,467 | ||
South Carolina Jobs-EDA Furman University | 5.00 | 10-1-2030 | 1,885,000 | 1,936,024 | ||
South Carolina Jobs-EDA Furman University | 5.00 | 10-1-2031 | 2,155,000 | 2,211,466 | ||
South Carolina Jobs-EDA York Preparatory Academy, Inc. Series A144A | 7.00 | 11-1-2033 | 1,090,000 | 1,138,177 | ||
6,006,134 | ||||||
Health revenue: 0.86% | ||||||
South Carolina Jobs-EDA Prisma Health Obligated Group Series Cø | 4.48 | 5-1-2048 | 9,275,000 | 9,275,000 | ||
Miscellaneous revenue: 0.10% | ||||||
Laurens County School District No. 055 | 5.00 | 12-1-2025 | 1,000,000 | 1,037,504 | ||
Utilities revenue: 1.02% | ||||||
South Carolina Public Service Authority Series E (AGM Insured) | 5.25 | 12-1-2036 | 6,385,000 | 7,159,381 | ||
South Carolina Public Service Authority Series E (AGM Insured) | 5.25 | 12-1-2037 | 3,445,000 | 3,832,689 | ||
10,992,070 | ||||||
27,310,708 | ||||||
The accompanying notes are an integral part of these financial statements.
34 | Allspring Intermediate Tax/AMT-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tennessee: 1.29% | ||||||
Airport revenue: 0.26% | ||||||
Metropolitan Nashville Airport Authority Series A | 5.25 % | 7-1-2047 | $ | 2,500,000 | $2,757,023 | |
Housing revenue: 0.16% | ||||||
Chattanooga Health Educational & Housing Facility Board CDFI Phase I LLC | 5.00 | 10-1-2023 | 750,000 | 751,142 | ||
Chattanooga Health Educational & Housing Facility Board CDFI Phase I LLC | 5.00 | 10-1-2028 | 1,000,000 | 1,023,090 | ||
1,774,232 | ||||||
Utilities revenue: 0.87% | ||||||
Tennergy Corp. Series Aøø | 5.50 | 10-1-2053 | 3,000,000 | 3,176,088 | ||
Tennessee Energy Acquisition Corp. Series Aøø | 5.00 | 5-1-2052 | 2,500,000 | 2,593,512 | ||
Tennessee Energy Acquisition Corp. Series A-1øø | 5.00 | 5-1-2053 | 3,500,000 | 3,620,884 | ||
9,390,484 | ||||||
13,921,739 | ||||||
Texas: 5.01% | ||||||
Airport revenue: 0.75% | ||||||
City of Houston Airport System Revenue Series D | 5.00 | 7-1-2033 | 3,010,000 | 3,268,751 | ||
City of Houston Airport System Revenue Series D | 5.00 | 7-1-2035 | 2,000,000 | 2,160,039 | ||
Dallas Fort Worth International Airport Series A | 4.00 | 11-1-2034 | 2,500,000 | 2,608,711 | ||
8,037,501 | ||||||
GO revenue: 2.16% | ||||||
Bexar County Hospital District | 5.00 | 2-15-2037 | 1,250,000 | 1,326,036 | ||
City of Eagle Pass (AGM Insured) | 4.00 | 3-1-2037 | 695,000 | 712,254 | ||
City of San Antonio | 5.00 | 8-1-2036 | 3,990,000 | 4,322,193 | ||
County of Denton | 5.00 | 7-15-2030 | 1,000,000 | 1,019,020 | ||
County of El Paso Series A | 5.00 | 2-15-2031 | 2,000,000 | 2,093,335 | ||
County of El Paso Series A | 5.00 | 2-15-2032 | 2,120,000 | 2,217,349 | ||
Crane County Water District | 5.00 | 2-15-2026 | 1,000,000 | 1,030,192 | ||
Crane County Water District | 5.00 | 2-15-2030 | 1,130,000 | 1,158,653 | ||
Crane County Water District | 5.00 | 2-15-2031 | 1,000,000 | 1,025,357 | ||
El Paso County Hospital District | 5.00 | 8-15-2028 | 2,045,000 | 2,047,471 | ||
Fort Bend County Municipal Utility District No. 182 (BAM Insured) | 5.25 | 9-1-2030 | 1,185,000 | 1,314,225 | ||
San Antonio Independent School District | 5.00 | 8-15-2037 | 2,000,000 | 2,051,290 | ||
Viridian Municipal Management District (BAM Insured) | 4.00 | 12-1-2030 | 710,000 | 714,002 | ||
Waller Consolidated Independent School District (BAM Insured) | 5.00 | 2-15-2040 | 2,000,000 | 2,210,774 | ||
23,242,151 | ||||||
Housing revenue: 0.05% | ||||||
Austin Community College District Public Facility Corp. Series C | 5.00 | 8-1-2030 | 500,000 | 540,923 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 35
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue: 0.33% | ||||||
Lower Colorado River Authority | 5.50 % | 5-15-2031 | $ | 2,500,000 | $2,502,908 | |
Nueces River Authority City of Corpus Christi TX Utility System Revenue | 5.00 | 7-15-2026 | 1,000,000 | 1,033,752 | ||
3,536,660 | ||||||
Tax revenue: 0.15% | ||||||
Old Spanish Trail-Alemda Corridors RDA (BAM Insured) | 4.00 | 9-1-2031 | 1,540,000 | 1,609,473 | ||
Transportation revenue: 0.73% | ||||||
Grand Parkway Transportation Corp. Series A | 5.00 | 10-1-2034 | 1,500,000 | 1,633,966 | ||
Texas Private Activity Bond Surface Transportation Corp. NTE Mobility Partners LLC Series A | 5.00 | 12-31-2035 | 3,000,000 | 3,146,648 | ||
Texas Private Activity Bond Surface Transportation Corp. NTE Mobility Partners LLC Series A | 5.00 | 12-31-2036 | 3,015,000 | 3,140,173 | ||
7,920,787 | ||||||
Utilities revenue: 0.63% | ||||||
City of Brownsville Utilities System Revenue | 5.00 | 9-1-2026 | 2,190,000 | 2,270,950 | ||
City of Brownsville Utilities System Revenue | 5.00 | 9-1-2029 | 1,500,000 | 1,563,408 | ||
City of Brownsville Utilities System Revenue | 5.00 | 9-1-2030 | 2,500,000 | 2,605,873 | ||
City of Weatherford Utility System Revenue (AGM Insured) | 5.00 | 9-1-2026 | 375,000 | 388,861 | ||
6,829,092 | ||||||
Water & sewer revenue: 0.21% | ||||||
North Harris County Regional Water Authority (BAM Insured) | 5.00 | 12-15-2029 | 1,215,000 | 1,216,550 | ||
Trinity River Authority | 4.00 | 2-1-2027 | 1,000,000 | 1,023,170 | ||
2,239,720 | ||||||
53,956,307 | ||||||
Utah: 0.28% | ||||||
Education revenue: 0.06% | ||||||
Utah Charter School Finance Authority Freedom Academy Foundation144A | 4.50 | 6-15-2027 | 715,000 | 696,592 | ||
Housing revenue: 0.22% | ||||||
West Valley City Municipal Building Authority (AGM Insured) | 5.00 | 2-1-2032 | 1,555,000 | 1,640,897 | ||
West Valley City Municipal Building Authority (AGM Insured) | 5.00 | 2-1-2033 | 645,000 | 680,185 | ||
2,321,082 | ||||||
3,017,674 | ||||||
Virginia: 0.14% | ||||||
Tax revenue: 0.14% | ||||||
Greater Richmond Convention Center Authority | 5.00 | 6-15-2025 | 1,000,000 | 1,034,157 | ||
Marquis CDA of York County Virginia CAB144A | 7.50 | 9-1-2045 | 386,000 | 115,800 | ||
Marquis CDA of York County Virginia Series B | 5.63 | 9-1-2041 | 1,274,000 | 382,200 | ||
Marquis CDA of York County Virginia Series C CAB¤ | 0.00 | 9-1-2041 | 1,772,000 | 4,430 | ||
1,536,587 | ||||||
The accompanying notes are an integral part of these financial statements.
36 | Allspring Intermediate Tax/AMT-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Washington: 3.93% | ||||||
Education revenue: 0.10% | ||||||
Washington EDFA Washington Biomedical Research Properties I | 5.00 % | 6-1-2028 | $ | 1,000,000 | $1,015,755 | |
GO revenue: 1.84% | ||||||
King County Public Hospital District No. 1 | 5.00 | 12-1-2026 | 775,000 | 820,235 | ||
King County Public Hospital District No. 1 | 5.00 | 12-1-2029 | 1,600,000 | 1,687,037 | ||
King County Public Hospital District No. 1 | 5.00 | 12-1-2031 | 6,665,000 | 6,975,008 | ||
King County Public Hospital District No. 1 | 5.00 | 12-1-2032 | 2,905,000 | 3,029,690 | ||
King County Public Hospital District No. 1 | 5.00 | 12-1-2033 | 7,045,000 | 7,331,345 | ||
19,843,315 | ||||||
Health revenue: 0.24% | ||||||
Washington Health Care Facilities Authority Fred Hutchinson Cancer Center | 5.00 | 1-1-2028 | 1,350,000 | 1,400,399 | ||
Washington Health Care Facilities Authority Providence St. Joseph Health Obligated Group Series D | 5.00 | 10-1-2041 | 1,225,000 | 1,225,865 | ||
2,626,264 | ||||||
Housing revenue: 1.33% | ||||||
King County Housing Authority | 4.00 | 6-1-2026 | 560,000 | 566,227 | ||
King County Housing Authority | 4.00 | 12-1-2026 | 430,000 | 436,459 | ||
King County Housing Authority | 4.00 | 6-1-2027 | 590,000 | 600,390 | ||
King County Housing Authority | 4.00 | 12-1-2027 | 400,000 | 408,610 | ||
King County Housing Authority | 4.00 | 6-1-2028 | 360,000 | 367,590 | ||
King County Housing Authority | 4.00 | 12-1-2028 | 375,000 | 384,222 | ||
King County Housing Authority | 4.00 | 12-1-2029 | 960,000 | 989,783 | ||
King County Housing Authority | 4.00 | 12-1-2030 | 575,000 | 591,536 | ||
King County Housing Authority | 4.00 | 12-1-2031 | 450,000 | 458,933 | ||
Snohomish County Housing Authority | 5.00 | 4-1-2032 | 1,955,000 | 2,121,518 | ||
Snohomish County Housing Authority | 5.00 | 4-1-2033 | 1,550,000 | 1,676,433 | ||
Snohomish County Housing Authority | 5.00 | 4-1-2034 | 655,000 | 708,079 | ||
Washington State Housing Finance Commission Downtowner Apartments Project (FHLMC LIQ) | 3.70 | 7-1-2030 | 5,000,000 | 5,033,940 | ||
14,343,720 | ||||||
Miscellaneous revenue: 0.16% | ||||||
State of Washington COP Series B | 5.00 | 7-1-2037 | 1,585,000 | 1,716,516 | ||
Resource recovery revenue: 0.26% | ||||||
City of Seattle Solid Waste Revenue | 4.00 | 6-1-2033 | 1,175,000 | 1,206,788 | ||
City of Tacoma Solid Waste Utility Revenue Series B | 5.00 | 12-1-2029 | 1,525,000 | 1,597,838 | ||
2,804,626 | ||||||
42,350,196 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 37
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
West Virginia: 0.60% | ||||||
Health revenue: 0.13% | ||||||
West Virginia Hospital Finance Authority West Virginia United Health System Obligated Group Series A | 5.00 % | 6-1-2031 | $ | 375,000 | $392,672 | |
West Virginia Hospital Finance Authority West Virginia United Health System Obligated Group Series A | 5.00 | 6-1-2032 | 980,000 | 1,023,801 | ||
1,416,473 | ||||||
Miscellaneous revenue: 0.47% | ||||||
West Virginia EDA Lottery Excess Lottery Revenue Series A | 5.00 | 7-1-2038 | 2,980,000 | 3,204,704 | ||
West Virginia Lottery Excess Lottery Revenue Series A | 5.00 | 7-1-2029 | 1,755,000 | 1,817,081 | ||
5,021,785 | ||||||
6,438,258 | ||||||
Wisconsin: 3.50% | ||||||
GO revenue: 0.15% | ||||||
City of Milwaukee Series B4 (AGM Insured) | 5.00 | 4-1-2038 | 1,495,000 | 1,618,759 | ||
Health revenue: 2.05% | ||||||
Wisconsin HEFA Ascension Health Credit Group Series A | 4.00 | 11-15-2039 | 14,975,000 | 14,874,416 | ||
Wisconsin HEFA Ascension Health Credit Group Series A | 5.00 | 11-15-2035 | 5,000,000 | 5,191,601 | ||
Wisconsin HEFA Bellin Memorial Hospital Obligated Group Series A | 5.00 | 12-1-2039 | 1,000,000 | 1,057,911 | ||
Wisconsin HEFA Marshfield Clinic Health System Obligated Group Series Aø | 5.30 | 2-15-2053 | 1,000,000 | 1,000,000 | ||
22,123,928 | ||||||
Housing revenue: 1.09% | ||||||
Milwaukee RDA Milwaukee Board of School Directors | 5.00 | 11-15-2029 | 420,000 | 444,408 | ||
Milwaukee RDA Milwaukee Board of School Directors | 5.00 | 11-15-2030 | 635,000 | 670,864 | ||
PFA City of Boynton Beach | 4.00 | 7-1-2030 | 2,090,000 | 2,209,082 | ||
PFA City of Boynton Beach | 5.00 | 7-1-2035 | 3,590,000 | 3,855,026 | ||
PFA Eastern Michigan University Campus Living LLC Series A-1 (BAM Insured) | 5.25 | 7-1-2034 | 1,000,000 | 1,157,060 | ||
PFA Eastern Michigan University Campus Living LLC Series A-1 (BAM Insured) | 5.25 | 7-1-2035 | 1,000,000 | 1,146,464 | ||
PFA Eastern Michigan University Campus Living LLC Series A-1 (BAM Insured) | 5.25 | 7-1-2036 | 1,000,000 | 1,135,847 | ||
PFA Eastern Michigan University Campus Living LLC Series A-1 (BAM Insured) | 5.25 | 7-1-2037 | 1,000,000 | 1,125,400 | ||
11,744,151 | ||||||
Miscellaneous revenue: 0.21% | ||||||
Appleton RDA Fox Cities Performing Arts Center, Inc. Series B (Associated Bank N.A. LOC)ø | 4.55 | 6-1-2036 | 500,000 | 500,000 | ||
The accompanying notes are an integral part of these financial statements.
38 | Allspring Intermediate Tax/AMT-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue (continued) | ||||||
Wisconsin Center District Series C CAB (AGM Insured)¤ | 0.00 % | 12-15-2034 | $ | 1,250,000 | $787,255 | |
Wisconsin Center District Series C CAB (AGM Insured)¤ | 0.00 | 12-15-2035 | 1,600,000 | 955,263 | ||
2,242,518 | ||||||
37,729,356 | ||||||
Total municipal obligations (Cost $1,084,557,416) | 1,067,084,944 | |||||
Total investments in securities (Cost $1,090,557,416) | 99.67 % | 1,073,084,944 | ||||
Other assets and liabilities, net | 0.33 | 3,557,613 | ||||
Total net assets | 100.00 % | $1,076,642,557 | ||||
144A | The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
± | Variable rate investment. The rate shown is the rate in effect at period end. |
¤ | The security is issued in zero coupon form with no periodic interest payments. |
%% | The security is purchased on a when-issued basis. |
## | All or a portion of this security is segregated for when-issued securities. |
Abbreviations: | |
AGC | Assured Guaranty Corporation |
AGM | Assured Guaranty Municipal |
AMT | Alternative minimum tax |
BAM | Build America Mutual Assurance Company |
CAB | Capital appreciation bond |
CDA | Community Development Authority |
COP | Certificate of participation |
EDA | Economic Development Authority |
EDFA | Economic Development Finance Authority |
FHLMC | Federal Home Loan Mortgage Corporation |
GO | General obligation |
HEFA | Health & Educational Facilities Authority |
HFA | Housing Finance Authority |
IDA | Industrial Development Authority |
LIBOR | London Interbank Offered Rate |
LIQ | Liquidity agreement |
LOC | Letter of credit |
NPFGC | National Public Finance Guarantee Corporation |
PFA | Public Finance Authority |
RDA | Redevelopment Authority |
SBLF | Small Business Lending Fund |
SIFMA | Securities Industry and Financial Markets Association |
SOFR | Secured Overnight Financing Rate |
TTFA | Transportation Trust Fund Authority |
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 39
Statement of assets and liabilities—June 30, 2023
Financial statements
Statement of assets and liabilities
Assets | |
Investments in unaffiliated securities, at value (cost $1,090,557,416) | $1,073,084,944 |
Cash | 4,622,847 |
Receivable for interest | 11,902,240 |
Receivable for Fund shares sold | 1,275,570 |
Receivable for investments sold | 25,000 |
Prepaid expenses and other assets | 69,282 |
Total assets | 1,090,979,883 |
Liabilities | |
Payable for when-issued transactions | 5,808,475 |
Payable for investments purchased | 4,944,200 |
Payable for Fund shares redeemed | 2,242,766 |
Dividends payable | 922,113 |
Management fee payable | 203,213 |
Administration fees payable | 78,877 |
Distribution fee payable | 4,753 |
Trustees’ fees and expenses payable | 253 |
Accrued expenses and other liabilities | 132,676 |
Total liabilities | 14,337,326 |
Total net assets | $1,076,642,557 |
Net assets consist of | |
Paid-in capital | $1,107,514,679 |
Total distributable loss | (30,872,122 ) |
Total net assets | $1,076,642,557 |
Computation of net asset value and offering price per share | |
Net assets–Class A | $204,701,039 |
Shares outstanding–Class A1 | 18,921,128 |
Net asset value per share–Class A | $10.82 |
Maximum offering price per share – Class A2 | $11.15 |
Net assets–Class C | $7,268,131 |
Shares outstanding–Class C1 | 671,793 |
Net asset value per share–Class C | $10.82 |
Net assets–Class R6 | $269,728,702 |
Shares outstanding–Class R61 | 24,902,811 |
Net asset value per share–Class R6 | $10.83 |
Net assets–Administrator Class | $25,498,211 |
Shares outstanding–Administrator Class1 | 2,355,342 |
Net asset value per share–Administrator Class | $10.83 |
Net assets–Institutional Class | $569,446,474 |
Shares outstanding–Institutional Class1 | 52,552,562 |
Net asset value per share–Institutional Class | $10.84 |
1 | The Fund has an unlimited number of authorized shares. |
2 | Maximum offering price is computed as 100/97 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.
40 | Allspring Intermediate Tax/AMT-Free Fund
Statement of operations—year ended June 30, 2023
Statement of operations
Investment income | |
Interest | $40,584,286 |
Expenses | |
Management fee | 4,644,776 |
Administration fees | |
Class A | 326,484 |
Class C | 12,447 |
Class R6 | 103,149 |
Administrator Class | 27,243 |
Institutional Class | 509,068 |
Shareholder servicing fees | |
Class A | 509,319 |
Class C | 19,437 |
Administrator Class | 67,020 |
Distribution fee | |
Class C | 58,311 |
Custody and accounting fees | 75,300 |
Professional fees | 100,573 |
Registration fees | 96,869 |
Shareholder report expenses | 59,593 |
Trustees’ fees and expenses | 22,690 |
Other fees and expenses | 41,601 |
Total expenses | 6,673,880 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (741,859 ) |
Class A | (147,800 ) |
Class C | (5,403 ) |
Administrator Class | (27,509 ) |
Net expenses | 5,751,309 |
Net investment income | 34,832,977 |
Realized and unrealized gains (losses) on investments | |
Net realized losses on investments | (5,100,145 ) |
Net change in unrealized gains (losses) on investments | (4,834,841 ) |
Net realized and unrealized gains (losses) on investments | (9,934,986 ) |
Net increase in net assets resulting from operations | $24,897,991 |
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 41
Statement of changes in net assets
Statement of changes in net assets
Year ended June 30, 2023 | Year ended June 30, 2022 | |||
Operations | ||||
Net investment income | $34,832,977 | $43,701,331 | ||
Net realized gains (losses) on investments | (5,100,145 ) | 6,953,488 | ||
Net change in unrealized gains (losses) on investments | (4,834,841 ) | (169,556,314 ) | ||
Net increase (decrease) in net assets resulting from operations | 24,897,991 | (118,901,495 ) | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class A | (5,425,830 ) | (5,093,391 ) | ||
Class C | (147,473 ) | (142,620 ) | ||
Class R6 | (10,071,482 ) | (15,955,578 ) | ||
Administrator Class | (746,117 ) | (885,212 ) | ||
Institutional Class | (18,440,951 ) | (21,622,788 ) | ||
Total distributions to shareholders | (34,831,853 ) | (43,699,589 ) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class A | 4,105,227 | 44,098,490 | 1,251,183 | 14,251,621 |
Class C | 133,617 | 1,438,697 | 86,124 | 960,368 |
Class R6 | 6,783,343 | 73,523,007 | 12,915,001 | 149,434,203 |
Administrator Class | 342,577 | 3,681,877 | 283,136 | 3,208,139 |
Institutional Class | 38,578,001 | 416,148,650 | 28,939,320 | 328,622,467 |
538,890,721 | 496,476,798 | |||
Reinvestment of distributions | ||||
Class A | 475,024 | 5,127,019 | 421,216 | 4,831,998 |
Class C | 13,299 | 143,458 | 12,279 | 140,958 |
Class R6 | 81,232 | 877,596 | 81,145 | 931,361 |
Administrator Class | 64,694 | 698,503 | 73,451 | 845,963 |
Institutional Class | 1,613,793 | 17,426,333 | 1,785,945 | 20,535,850 |
24,272,909 | 27,286,130 | |||
Payment for shares redeemed | ||||
Class A | (4,169,169 ) | (44,974,190 ) | (3,811,202 ) | (43,275,042 ) |
Class C | (238,107 ) | (2,568,301 ) | (341,331 ) | (3,962,953 ) |
Class R6 | (25,871,540 ) | (277,830,476 ) | (30,140,846 ) | (347,586,987 ) |
Administrator Class | (745,219 ) | (8,060,170 ) | (1,650,035 ) | (19,002,588 ) |
Institutional Class | (57,854,817 ) | (619,462,149 ) | (38,031,014 ) | (430,638,034 ) |
(952,895,286 ) | (844,465,604 ) | |||
Net decrease in net assets resulting from capital share transactions | (389,731,656 ) | (320,702,676 ) | ||
Total decrease in net assets | (399,665,518 ) | (483,303,760 ) | ||
Net assets | ||||
Beginning of period | 1,476,308,075 | 1,959,611,835 | ||
End of period | $1,076,642,557 | $1,476,308,075 | ||
The accompanying notes are an integral part of these financial statements.
42 | Allspring Intermediate Tax/AMT-Free Fund
Financial highlights
Financial highlights
(For a share outstanding throughout each period)
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class A | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.84 | $11.92 | $11.72 | $11.66 | $11.31 |
Net investment income | 0.29 | 0.26 | 0.26 | 0.26 | 0.28 |
Net realized and unrealized gains (losses) on investments | (0.02 ) | (1.08 ) | 0.20 | 0.05 | 0.35 |
Total from investment operations | 0.27 | (0.82 ) | 0.46 | 0.31 | 0.63 |
Distributions to shareholders from | |||||
Net investment income | (0.29 ) | (0.26 ) | (0.26 ) | (0.25 ) | (0.28 ) |
Net asset value, end of period | $10.82 | $10.84 | $11.92 | $11.72 | $11.66 |
Total return1 | 2.50 % | (7.00 )% | 3.92 % | 2.72 % | 5.67 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.82 % | 0.81 % | 0.80 % | 0.79 % | 0.80 % |
Net expenses | 0.69 % | 0.70 % | 0.70 % | 0.70 % | 0.70 % |
Net investment income | 2.66 % | 2.22 % | 2.16 % | 2.18 % | 2.47 % |
Supplemental data | |||||
Portfolio turnover rate | 17 % | 7 % | 12 % | 24 % | 14 % |
Net assets, end of period (000s omitted) | $204,701 | $200,566 | $246,130 | $249,724 | $263,113 |
1 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 43
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class C | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.84 | $11.92 | $11.72 | $11.66 | $11.31 |
Net investment income | 0.21 | 0.17 | 0.17 | 0.17 | 0.20 |
Net realized and unrealized gains (losses) on investments | (0.02 ) | (1.08 ) | 0.20 | 0.06 | 0.35 |
Total from investment operations | 0.19 | (0.91 ) | 0.37 | 0.23 | 0.55 |
Distributions to shareholders from | |||||
Net investment income | (0.21 ) | (0.17 ) | (0.17 ) | (0.17 ) | (0.20 ) |
Net asset value, end of period | $10.82 | $10.84 | $11.92 | $11.72 | $11.66 |
Total return1 | 1.73 % | (7.70 )% | 3.14 % | 1.95 % | 4.88 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.57 % | 1.55 % | 1.55 % | 1.54 % | 1.55 % |
Net expenses | 1.44 % | 1.45 % | 1.45 % | 1.45 % | 1.45 % |
Net investment income | 1.89 % | 1.46 % | 1.40 % | 1.43 % | 1.73 % |
Supplemental data | |||||
Portfolio turnover rate | 17 % | 7 % | 12 % | 24 % | 14 % |
Net assets, end of period (000s omitted) | $7,268 | $8,268 | $11,990 | $19,082 | $26,737 |
1 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
44 | Allspring Intermediate Tax/AMT-Free Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class R6 | 2023 | 2022 | 2021 | 2020 | 20191 |
Net asset value, beginning of period | $10.85 | $11.93 | $11.74 | $11.67 | $11.33 |
Net investment income | 0.33 | 0.29 | 0.29 | 0.29 | 0.29 |
Net realized and unrealized gains (losses) on investments | (0.03 ) | (1.08 ) | 0.19 | 0.07 | 0.34 |
Total from investment operations | 0.30 | (0.79 ) | 0.48 | 0.36 | 0.63 |
Distributions to shareholders from | |||||
Net investment income | (0.32 ) | (0.29 ) | (0.29 ) | (0.29 ) | (0.29 ) |
Net asset value, end of period | $10.83 | $10.85 | $11.93 | $11.74 | $11.67 |
Total return2 | 2.82 % | (6.71 )% | 4.14 % | 3.11 % | 5.65 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.44 % | 0.43 % | 0.42 % | 0.41 % | 0.41 % |
Net expenses | 0.38 % | 0.40 % | 0.40 % | 0.40 % | 0.40 % |
Net investment income | 2.93 % | 2.50 % | 2.44 % | 2.48 % | 2.75 % |
Supplemental data | |||||
Portfolio turnover rate | 17 % | 7 % | 12 % | 24 % | 14 % |
Net assets, end of period (000s omitted) | $269,729 | $476,328 | $728,547 | $1,159,305 | $996,477 |
1 | For the period from July 31, 2018 (commencement of class operations) to June 30, 2019 |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 45
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Administrator Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.84 | $11.93 | $11.73 | $11.67 | $11.32 |
Net investment income | 0.30 | 0.27 | 0.27 | 0.27 | 0.29 |
Net realized and unrealized gains (losses) on investments | (0.01 ) | (1.09 ) | 0.20 | 0.06 | 0.35 |
Total from investment operations | 0.29 | (0.82 ) | 0.47 | 0.33 | 0.64 |
Distributions to shareholders from | |||||
Net investment income | (0.30 ) | (0.27 ) | (0.27 ) | (0.27 ) | (0.29 ) |
Net asset value, end of period | $10.83 | $10.84 | $11.93 | $11.73 | $11.67 |
Total return | 2.69 % | (6.99 )% | 4.02 % | 2.82 % | 5.77 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.76 % | 0.74 % | 0.73 % | 0.73 % | 0.74 % |
Net expenses | 0.60 % | 0.60 % | 0.60 % | 0.60 % | 0.60 % |
Net investment income | 2.74 % | 2.31 % | 2.25 % | 2.28 % | 2.57 % |
Supplemental data | |||||
Portfolio turnover rate | 17 % | 7 % | 12 % | 24 % | 14 % |
Net assets, end of period (000s omitted) | $25,498 | $29,202 | $47,552 | $60,435 | $177,742 |
The accompanying notes are an integral part of these financial statements.
46 | Allspring Intermediate Tax/AMT-Free Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Institutional Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.85 | $11.94 | $11.74 | $11.68 | $11.33 |
Net investment income | 0.32 | 0.29 | 0.29 | 0.28 | 0.31 |
Net realized and unrealized gains (losses) on investments | (0.01 ) | (1.09 ) | 0.20 | 0.06 | 0.35 |
Total from investment operations | 0.31 | (0.80 ) | 0.49 | 0.34 | 0.66 |
Distributions to shareholders from | |||||
Net investment income | (0.32 ) | (0.29 ) | (0.29 ) | (0.28 ) | (0.31 ) |
Net asset value, end of period | $10.84 | $10.85 | $11.94 | $11.74 | $11.68 |
Total return | 2.87 % | (6.84 )% | 4.17 % | 2.97 % | 5.93 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.49 % | 0.48 % | 0.47 % | 0.46 % | 0.47 % |
Net expenses | 0.43 % | 0.45 % | 0.45 % | 0.45 % | 0.45 % |
Net investment income | 2.90 % | 2.47 % | 2.40 % | 2.43 % | 2.72 % |
Supplemental data | |||||
Portfolio turnover rate | 17 % | 7 % | 12 % | 24 % | 14 % |
Net assets, end of period (000s omitted) | $569,446 | $761,944 | $925,392 | $1,125,657 | $1,199,588 |
The accompanying notes are an integral part of these financial statements.
Allspring Intermediate Tax/AMT-Free Fund | 47
Notes to financial statements
Notes to financial statements
1.
ORGANIZATION
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Intermediate Tax/AMT-Free 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 Funds 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.
Investments which are not valued using any of 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.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, 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.
48 | Allspring Intermediate Tax/AMT-Free Fund
Notes to financial statements
As of June 30, 2023, the aggregate cost of all investments for federal income tax purposes was $1,091,673,845 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $11,178,970 |
Gross unrealized losses | (29,767,871 ) |
Net unrealized losses | $(18,588,901 ) |
As of June 30, 2023, the Fund had capital loss carryforwards which consist of $7,929,965 in short-term capital losses and $4,601,848 in long-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.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2023:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Closed-end fund obligations | $0 | $6,000,000 | $0 | $6,000,000 |
Municipal obligations | 0 | 1,067,084,944 | 0 | 1,067,084,944 |
Total assets | $0 | $1,073,084,944 | $0 | $1,073,084,944 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended June 30, 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
Allspring Intermediate Tax/AMT-Free Fund | 49
Notes to financial statements
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 | 0.400 % |
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 year ended June 30, 2023, the management fee was equivalent to an annual rate of 0.38% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.20% 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 | 0.15 % |
Class C | 0.15 |
Class R6 | 0.03 |
Administrator Class | 0.10 |
Institutional Class | 0.08 |
Prior to June 30, 2023, the class-level administration fee for Class A and Class C was 0.16% of the average daily net assets of each respective class.
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 October 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 June 30, 2023, the contractual expense caps are as follows:
EXPENSE RATIO CAPS | |
Class A | 0.67 % |
Class C | 1.42 |
Class R6 | 0.30 |
Administrator Class | 0.60 |
Institutional Class | 0.35 |
Prior to April 17, 2023, the Fund’s expenses were capped at 0.70% for Class A shares, 1.45% for Class C shares, 0.40% for Class R6 shares, and 0.45% for Institutional Class shares.
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.
50 | Allspring Intermediate Tax/AMT-Free Fund
Notes to financial statements
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 year ended June 30, 2023, Allspring Funds Distributor received $3,710 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the year ended June 30, 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. Pursuant to these procedures, the Fund had $157,405,000, $250,540,000 and $0 in interfund purchases, sales and net realized gains (losses), respectively, during the year ended June 30, 2023.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2023 were $192,750,178 and $513,135,540, 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 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 year ended June 30, 2023, there were no borrowings by the Fund under the agreement.
7.
DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid was $34,831,853 and $43,699,589 of tax-exempt income for the years ended June 30, 2023 and June 30, 2022, respectively.
As of June 30, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | Unrealized losses | Capital loss carryforward |
$1,177,747 | $(18,588,901 ) | $(12,531,813 ) |
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 Intermediate Tax/AMT-Free Fund | 51
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring Intermediate Tax/AMT-Free Fund (the Fund), one of the funds constituting Allspring Funds Trust, including the portfolio of investments, as of June 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of June 30, 2023, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
August 25, 2023
52 | Allspring Intermediate Tax/AMT-Free Fund
Other information (unaudited)
Other information
Tax information
Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2023.
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 1-866-259-3305, 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 Intermediate Tax/AMT-Free Fund | 53
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 |
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 |
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.
54 | Allspring Intermediate Tax/AMT-Free 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 |
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 Intermediate Tax/AMT-Free Fund | 55
Other information (unaudited)
Officers1
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 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 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.
56 | Allspring Intermediate Tax/AMT-Free Fund
Other information (unaudited)
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 15-17, 2023 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Intermediate Tax/AMT-Free Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2023, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
The Board noted that it initially approved the Advisory Agreements at a Board meeting held in May 2021, each for a two-year term, in advance of the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC,1 a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. (the “Transaction”). The Trustees also noted that, while they did not specifically consider the continuation of the Advisory Agreements in 2022 as a result of the two-year term that was approved in 2021, the Trustees received and considered certain information at a Board meeting held in April 2022 that was applicable to the Advisory Agreements, including an overview and financial review of the Allspring Global Investments business, information regarding certain ancillary agreements that were approved by the Board at the April 2022 Board meeting, and comparative data regarding Fund fees and expenses.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2023. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business. The Board also considered information about retention arrangements with respect to key personnel of Allspring Global Investments that were put in place in connection with the Transaction. The Board took into account information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the Transaction under a transition services agreement and the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
1
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
Allspring Intermediate Tax/AMT-Free Fund | 57
Other information (unaudited)
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, and Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2022. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was lower than the investment performance of its benchmark index, the Bloomberg Municipal Bond 1-15 Year Blend Index, for all periods under review.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were equal to the median net operating expense ratios of the expense Groups for each share class, except that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for the Institutional Class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than the sum of these average rates for the Fund’s expense Groups for the Institutional Class and R6 Class shares, equal to the sum of these average rates for the Fund’s expense Groups for the Administrator Class shares and in range of the sum of these average rates for the Fund’s expense Groups for the Class A shares.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
58 | Allspring Intermediate Tax/AMT-Free Fund
Other information (unaudited)
Profitability
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and differences in how Allspring Global Investments calculates its pre-tax profit metric versus the methodology used when Allspring Funds Management was part of Wells Fargo. It was noted that the impact of such differences had only minor impact on the financial results presented. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser and fees earned in the past by Allspring Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund complex’s securities lending collateral.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
Allspring Intermediate Tax/AMT-Free Fund | 59
Other information (unaudited)
Liquidity risk management program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that operate as money market funds), including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund’s investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the “Council”) composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 16-17, 2023, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2022 through December 31, 2022 (the “Reporting Period”). The Report noted significant liquidity events impacting the Funds related to extended foreign market holidays as well as the difficulty of trading and settlement of most Russia-related securities due to sanctions activity. The Report noted that there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage the Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
60 | Allspring Intermediate Tax/AMT-Free 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
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.
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Contents
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The views expressed and any forward-looking statements are as of June 30, 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 Minnesota Tax-Free Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Minnesota Tax-Free Fund for the 12-month period that ended June 30, 2023. Globally, stocks and bonds experienced heightened volatility through the period. The market was focused on persistently high inflation and the impact of ongoing aggressive central bank rate hikes. Compounding these concerns were the global reverberations of the Russia-Ukraine war. Riskier assets rallied in 2023, with anticipation of an end to the tight monetary policy despite concerns of a possible impending recession. After suffering deep and broad losses through 2022, bonds now benefit from a base of higher yields that can help generate higher income. However, ongoing rate hikes continued to be a headwind during recent months.
For the 12-month period, stocks generally outperformed bonds—both domestic U.S. and global. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 19.59%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 12.72%, while the MSCI EM Index (Net) (USD)3 had more muted performance, with a gain of 1.75%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -0.94%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 fell 1.83%, the Bloomberg Municipal Bond Index6 gained 3.19%, and the ICE BofA U.S. High Yield Index7 returned 8.97%.
Despite high inflation and central bank rate hikes, markets rallied.
Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong: July nonfarm payrolls grew by more than 500,000 and U.S. unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices—major contributors to recent overall inflation—fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with mortgage rates at a 13-year high. The Federal Reserve (Fed) raised the federal funds rate 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to further rate hikes.
August was a broadly challenging month. High inflation persisted, cresting 9% in the eurozone on an annual basis and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June peak. One positive was the resilient U.S. jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act. Its primary stated goals include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“ Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong. ”
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 the 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 Minnesota Tax-Free Fund
Letter to shareholders (unaudited)
In September, all asset classes suffered further major losses. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar weighed on results for investors holding non-U.S.-dollar assets. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The Bank of England (BoE) then stepped in and bought long-dated government bonds.
Equities had a reprieve in October. 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 increasing 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.
Financial markets cooled in December, with U.S. equities declining overall in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever, with generally flat 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 wound 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 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.
Markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks would 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 was not falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the BoE and the European Central Bank (ECB) both raised rates by 0.50%.
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 banking industry turmoil created an additional challenge for central banks in balancing inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. 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 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. ”
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.
Allspring Minnesota Tax-Free Fund | 3
Letter to shareholders (unaudited)
Economic data released in April pointed to global resilience, as Purchasing Managers Indexes1 in the U.S., U.K., and eurozone beat expectations and China reported first-quarter annualized economic growth of 4.5%. Despite banking industry stress, developed market stocks had monthly gains. The U.S. labor market remained strong, with a 3.5% jobless rate and monthly payroll gains above 200,000. However, uncertainty and inflationary concerns weighed on investors in the U.S. and abroad.
May was marked by a divergence between expanding activity in services and an overall contraction in manufacturing activity in the U.S., U.K., and eurozone. Core inflation remained elevated in the U.S. and Europe, despite the ongoing efforts of the Fed and ECB, which included rate hikes of 0.25% by both in May. Stubborn inflation and the resilient U.S. labor market led to expectations of further interest rate hikes, overall monthly declines across bond indexes, and mixed results for stocks in May. Investor worries over a U.S. debt ceiling impasse were modest, and market confidence was buoyed by a deal in late May to avert a potential U.S. debt default.
June featured the Fed’s first pause on interest rate hikes since March 2022, when it began its aggressive campaign to rein in inflation. However, core CPI, excluding food and energy prices, while continuing to decline, remained stubbornly high in June, at 4.8%, well above the Fed’s 2.0% target rate. With the U.S. unemployment rate still at 3.6%, near a historical low, and U.S. payrolls growing in June for the 30th consecutive month, expectations of more Fed rate hikes were reinforced. However, U.S. and global stocks had strong returns in June.
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
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.
1
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.
4 | Allspring Minnesota Tax-Free Fund
Letter to shareholders (unaudited)
Notice to Shareholders |
Beginning in July 2024, the Fund will be required by the Securities and Exchange Commission to send shareholders a paper copy of a new tailored shareholder report in place of the full shareholder report that you are now receiving. The tailored shareholder report will contain concise information about the Fund, including certain expense and performance information and fund statistics. If you wish to receive this new tailored shareholder report electronically, please follow the instructions on the back cover of this report. |
Other information that is currently included in the shareholder report, such as the Fund’s financial statements, will be available online and upon request, free of charge, in paper or electronic format. |
Allspring Minnesota Tax-Free Fund | 5
Performance highlights (unaudited)
Performance highlights
Investment objective | The Fund seeks current income exempt from federal income tax and Minnesota individual income tax. |
Manager | Allspring Funds Management, LLC |
Subadviser | Allspring Global Investments, LLC |
Portfolio managers | Bruce R. Johns, Kerry Laurin |
Average annual total returns (%) as of June 30, 2023 | |||||||||
Including sales charge | Excluding sales charge | Expense ratios1 (%) | |||||||
Inception date | 1 year | 5 year | 10 year | 1 year | 5 year | 10 year | Gross | Net2 | |
Class A (NMTFX) | 1-12-1988 | -2.85 | 0.30 | 1.56 | 1.73 | 1.23 | 2.03 | 0.90 | 0.84 |
Class C (WMTCX) | 4-8-2005 | 0.00 | 0.48 | 1.42 | 1.00 | 0.48 | 1.42 | 1.65 | 1.59 |
Administrator Class (NWMIX) | 8-2-1993 | – | – | – | 1.98 ♠ | 1.48 | 2.28 | 0.85 | 0.60 |
Institutional Class (WMTIX)3 | 10-31-2016 | – | – | – | 2.07 ♠ | 1.54 | 2.34 | 0.58 | 0.52 |
Bloomberg Municipal Bond Index4 | – | – | – | – | 3.19 | 1.84 | 2.68 | – | – |
Bloomberg Minnesota Municipal Bond Index5 | – | – | – | – | 2.48 | 1.60 | 2.23 | – | – |
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. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
♠ | Total return differs from the return in the Financial Highlights in this report. The total return presented is calculated based on the Net Asset Value (NAV) at which the shareholder transactions were processed. The NAV and total return presented in the Financial Highlights reflects certain adjustments made to the net assets of the Fund that are necessary under U.S. generally accepted accounting principles. |
1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the Financial Highlights of this report. |
2 | The manager has contractually committed through October 31, 2023(October 31, 2024 for Class A and Class C), to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.84% for Class A, 1.59% for Class C, 0.60% 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 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 | 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. |
5 | The Bloomberg Minnesota Municipal Bond Index is the Minnesota component of the Bloomberg Municipal Bond Index. 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. 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 Minnesota municipal securities risk and high-yield securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.
6 | Allspring Minnesota Tax-Free Fund
Performance highlights (unaudited)
Growth of $10,000 investment as of June 30, 20231 |
1 | The chart compares the performance of Class A shares for the most recent ten years with the Bloomberg Municipal Bond Index and Bloomberg Minnesota Municipal Bond Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%. |
Allspring Minnesota Tax-Free Fund | 7
Performance highlights (unaudited)
MANAGER’S DISCUSSION
Fund highlights
•The Fund underperformed both the broader Bloomberg Municipal Bond Index and the Bloomberg Minnesota Municipal Bond Index for the 12-month period that ended June 30, 2023.
•Yield-curve positioning detracted from performance as the short end of the curve sold off considerably more than the intermediate and long end and we were overweight shorter- and medium-term bonds given the Federal Reserve’s (Fed) tightening policy. The municipal curve inverted over the second half of the year in the 1-year to 14-year segment, with shorter yields climbing higher than longer rates in this segment. Yield-curve positioning detracted from performance as we were underweight longer-term bonds, which performed strongly, and overweight shorter and intermediate bonds, which performed poorly. The Fund’s sector allocation versus the Bloomberg Minnesota Municipal Bond Index detracted from performance. We were underweight the transportation and hospital revenue sectors, which detracted from performance as these performed well.
•We began the period significantly short duration to the benchmark, which was positive given municipal rates increased over the 12-month period. As we progressed throughout the year, we extended duration. The Fund’s overweight to A-rated bonds drove performance, as these outperformed relative to higher-quality investment-grade bonds (AAA-rated and AA-rated). Our out-of-benchmark allocation to non-investment-grade bonds added to performance.
•Security selection in the housing, state general obligation (GO), and transportation sectors added to performance. Our overweight to the education sector helped performance as this sector was a strong performer. Our underweight in the GO category helped performance as these bonds trailed the market. Likewise, our market-weight position to the revenue sector as a whole helped performance as this category had strong performance.
Global economies increase lending rates in hopes of taming runaway inflation.
Entering 2022, the excitement of a post-pandemic world gave way to new whispers and fears of higher prices and broad-based inflation caused by supply chain bottlenecks, increased housing costs, wage increases, and employment market distortions. Those fears quickly became reality and prices began to rise at a historic rate. The U.S. Federal Open Market Committee acted quickly and with purpose: ending open market purchases, reducing its balance sheet, and raising the benchmark overnight lending rate at each monthly meeting through 2022 and early 2023. Fixed income and equity markets fell sharply but began to recover as annual inflation numbers peaked in June and began to recede.
The U.S. unemployment rate, which reached a multigenerational high of more than 14% in the spring of 2020, fell throughout the past year and has settled below 4%. Employers continue to add jobs, especially in service-oriented industries, and the resulting wage increases have further contributed to inflationary pressures. U.S. gross domestic product (GDP) turned negative in the first and second quarters of 2022 but expanded at rates above 2% in each subsequent quarter. The federal funds rate, which began 2022 at 0.25% to 0.50%, was raised 10 consecutive times before a pause in June 2023. It now sits at 5.25% to 5.50% as the Fed attempts to curb inflation. In this environment, some form of recession seems imminent.
In the wake of continued rate increases, U.S. fixed income yields rose dramatically as investors reacted to Fed actions, with the yield on the 10-year Treasury ending the period near 4%. Rising Treasury yields affected all fixed income sectors in 2022, with all seeing their worst returns in more than 40 years. The U.S. Treasury yield curve remained substantially inverted throughout the period, which has driven many investors into shorter-term interest-bearing vehicles, including money markets.
Credit quality as of June 30, 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. |
8 | Allspring Minnesota Tax-Free Fund
Performance highlights (unaudited)
Municipals sold off drastically to start the period but began to rebound in the fourth quarter of 2022. The Bloomberg Municipal Bond Index fell nearly 8% and the broader municipal market had more than $124 billion in outflows before stabilizing early in 2023. For the first time in history, the municipal yield curve also inverted but not to the degree seen in Treasuries.
While this environment has certainly been painful for municipal investors, the drawdown has created significantly improved opportunities and entry points. Municipal to Treasury ratios ended the period elevated but at far better levels than in 2021. Municipal credit spreads have widened substantially while the underlying fundamental credit of municipalities remains strong, following trillions of dollars in government stimulus. We believe investors will continue to return to the municipal market in the latter half of 2023, attracted by increased yields, positive fundamental strength, and good relative value.
Minnesota maintains highest credit quality.
Minnesota’s key credit fundamentals remain strong. Above-average economic and wealth metrics projected structural balance and strong reserve position over the next several years, in addition to a manageable debt profile with low pension burdens, should support stable credit metrics moving forward. With a population at 5.7 million, Minnesota is the 22nd-largest state in the U.S. Historically, personal income per capita and GDP per capita both modestly exceed national levels and the state’s unemployment rate for May 2023 was 2.9%, well below the U.S. national rate of 3.7%.
Minneapolis, the state’s largest metro area, is home to a highly educated labor force with major research institutions and corporate headquarters. The largest employers include the University of Minnesota (52,376 enrollment), Allina Health System, Fairview Health Services, and Target Corp. headquarters. Education and health services is the state’s largest employment sector, which should experience stable growth over the next decade. Structural balance for the 2022–2023 biennium as well as ample carry-forward balances are a key credit positive for Minnesota. The state built its reserve position to strong levels of $7.1 billion (or 24.6% of annual revenues) in 2021. The state’s forecast for the 2022–2023 biennium projects revenues will exceed expenditures by $3.4 billion. Solid fiscal performance is supported by a strong history of adhering to fiscal policies and practices. The state’s debt and pension profile is low and its pension funding progress has improved in recent years with no near-term pension pressure anticipated. Moody’s, S&P Global, and Fitch maintain AAA ratings on the state’s GO debt outstanding.
Effective maturity distribution as of June 30, 20231 |
1 | Figures represent the percentage of the Fund’s long-term investments. These amounts are subject to change and may have changed since the date specified. |
Credit quality and security selection contributed; yield-curve positioning and sector positioning detracted. Duration impact was mixed.
We began the period significantly short duration to the benchmark, which was positive given that municipal rates increased over the 12-month period. As we progressed throughout the year, we extended duration. Credit quality contributed to performance. We were overweight lower-quality investment-grade bonds (A-rated and BBB-rated), which performed well, and underweight higher-quality investment-grade bonds (AAA-rated and AA-rated), which performed poorly. Our out-of-benchmark allocation to non-investment-grade bonds contributed to performance as these were some of the best-performing bonds of the year. The Fund’s primary benchmark is the Bloomberg Municipal Bond Index of which Minnesota bonds only make up 1%. Given the Fund must maintain at least 95% of its income from Minnesota bonds, the universe to choose bonds from is limited.
The municipal yield curve inverted during the second half of the year in the 1-year to 14-year segments with shorter rates exceeding longer rates in this segment. The Fund’s yield-curve positioning detracted from performance as we were underweight longer bonds, which strongly outperformed the shorter and intermediate parts of the curve. We were about market weight in the revenue bond sector, which did well. We were underweight GO bonds, which trailed the market. However, our selection of Illinois state GO bonds contributed to our outperformance within the state GO category. We have a strong overweight to the education revenue sector, which performed well. While we were underweight the weak housing revenue sector, our security selection outperformed the benchmark sector return. Our performance lagged in some revenue bond sectors, as we were underweight transportation and hospitals, which performed well. However, our security selection within the transportation sector was strong.
Some of the better-performing bonds for the year were Minnesota State Housing Finance Agency, Hope Community Academy charter school, and St. Paul Independent School District. The main detractors from
Allspring Minnesota Tax-Free Fund | 9
Performance highlights (unaudited)
performance were high-quality names (AAA-rated/AA-rated) like Hennepin County GOs, Ramsey County GOs, and Rice County GOs. All of these high-quality names lagged the index and underperformed the lower-quality names above. Structure did play a large role in security performance over the past 12 months, with lower-coupon, longer-dated bonds facing challenges versus higher-coupon, longer-dated bonds given the rapidly rising rate environment.
Interest rate volatility has been the core focus of the markets. We believe issue selection remains a key driver in state-specific funds.
The U.S. economy continued to rebound over the past 12 months, even in the face of unprecedented rate hikes. We believe issue selection and yield-curve positioning will be a key driver in state-specific funds. While we
eventually expect the economy to slow, we believe the Fed may end its rate-hiking cycle toward the end of 2023 as it works to combat higher-than-average inflation. We have been and will work to continue to extend duration in the Fund through primary market purchases. Minnesota’s economy is strong and resilient. We believe most municipalities will continue to perform well over the next 12 months given their strong balance sheets. We continue to look for value in lower-credit-quality investment-grade names while opportunistically buying higher-grade names at attractive levels. The threat of a slowing economy could affect our sector allocation decisions as we look to move into areas that will be less affected by recessionary pressures. We will monitor the economy and interest rates, with a focus on the technical market and fundamental credit quality to adjust duration, yield-curve positioning, credit quality, and sector allocations over the next year.
10 | Allspring Minnesota Tax-Free Fund
Fund expenses (unaudited)
Fund expenses
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 January 1, 2023 to June 30, 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 1-1-2023 | Ending account value 6-30-2023 | Expenses paid during the period1 | Annualized net expense ratio | |
Class A | ||||
Actual | $1,000.00 | $1,015.20 | $4.25 | 0.85 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.58 | $4.26 | 0.85 % |
Class C | ||||
Actual | $1,000.00 | $1,010.76 | $7.63 | 1.53 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.21 | $7.65 | 1.53 % |
Administrator Class | ||||
Actual | $1,000.00 | $1,016.45 | $3.00 | 0.60 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.82 | $3.01 | 0.60 % |
Institutional Class | ||||
Actual | $1,000.00 | $1,015.85 | $2.60 | 0.52 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.22 | $2.61 | 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 181 divided by 365 (to reflect the one-half-year period). |
Allspring Minnesota Tax-Free Fund | 11
Portfolio of investments—June 30, 2023
Portfolio of investments
Interest rate | Maturity date | Principal | Value | |||
Municipal obligations: 99.86% | ||||||
Georgia: 0.27% | ||||||
Utilities revenue: 0.27% | ||||||
Main Street Natural Gas, Inc. Series C144Aøø | 4.00 % | 8-1-2052 | $ | 500,000 | $483,272 | |
Guam: 0.47% | ||||||
Airport revenue: 0.19% | ||||||
Antonio B Won Pat International Airport Authority Series A AMT%% | 5.25 | 10-1-2031 | 325,000 | 333,565 | ||
Water & sewer revenue: 0.28% | ||||||
Guam Government Waterworks Authority | 5.00 | 1-1-2046 | 500,000 | 504,841 | ||
838,406 | ||||||
Illinois: 0.17% | ||||||
Miscellaneous revenue: 0.17% | ||||||
City of Chicago Special Assessment Revenue Refunding Bonds Lakeshore East Project144A | 2.53 | 12-1-2025 | 327,000 | 315,117 | ||
Minnesota: 97.97% | ||||||
Airport revenue: 2.79% | ||||||
Minneapolis-St. Paul Metropolitan Airports Commission Series A | 5.00 | 1-1-2031 | 485,000 | 516,171 | ||
Minneapolis-St. Paul Metropolitan Airports Commission Series A | 5.00 | 1-1-2032 | 800,000 | 804,868 | ||
Minneapolis-St. Paul Metropolitan Airports Commission Series A | 5.00 | 1-1-2033 | 200,000 | 201,181 | ||
Minneapolis-St. Paul Metropolitan Airports Commission Series A | 5.00 | 1-1-2052 | 1,000,000 | 1,070,171 | ||
Minneapolis-St. Paul Metropolitan Airports Commission Series B AMT | 5.00 | 1-1-2026 | 1,100,000 | 1,104,199 | ||
Minneapolis-St. Paul Metropolitan Airports Commission Series C | 5.00 | 1-1-2046 | 1,000,000 | 1,031,633 | ||
Minneapolis-St. Paul Metropolitan Airports Commission Series D AMT | 5.00 | 1-1-2041 | 250,000 | 255,823 | ||
4,984,046 | ||||||
Education revenue: 21.32% | ||||||
City of Brooklyn Park Athlos Leadership Academy Series A | 5.50 | 7-1-2040 | 750,000 | 652,649 | ||
City of Cologne Cologne Academy Series A | 5.00 | 7-1-2029 | 590,000 | 586,984 | ||
City of Cologne Cologne Academy Series A | 5.00 | 7-1-2034 | 500,000 | 483,582 | ||
City of Columbus New Millennium Academy Series A | 5.50 | 7-1-2030 | 1,000,000 | 966,261 | ||
City of Deephaven Eagle Ridge Academy Series A | 4.00 | 7-1-2025 | 125,000 | 122,938 | ||
City of Deephaven Eagle Ridge Academy Series A | 4.00 | 7-1-2026 | 100,000 | 97,579 | ||
City of Deephaven Eagle Ridge Academy Series A | 4.00 | 7-1-2027 | 100,000 | 96,739 | ||
City of Deephaven Eagle Ridge Academy Series A | 5.25 | 7-1-2037 | 400,000 | 400,445 | ||
City of Deephaven Eagle Ridge Academy Series A | 5.25 | 7-1-2040 | 500,000 | 497,473 | ||
City of Forest Lake Lakes International Language Academy Series A | 5.50 | 8-1-2036 | 500,000 | 503,544 | ||
City of Ham Lake DaVinci Academy of Arts & Science Series A | 4.00 | 7-1-2028 | 370,000 | 354,942 | ||
City of Ham Lake DaVinci Academy of Arts & Science Series A | 5.00 | 7-1-2031 | 625,000 | 626,026 | ||
City of Hugo Noble Academy Series A | 5.00 | 7-1-2029 | 600,000 | 598,768 | ||
City of Minneapolis Northeast College Preparatory Series A | 5.00 | 7-1-2055 | 700,000 | 564,876 | ||
City of Minneapolis Yinghua Academy Series A | 5.00 | 7-1-2023 | 70,000 | 70,000 | ||
City of Moorhead Concordia College | 5.00 | 12-1-2025 | 1,540,000 | 1,557,860 | ||
City of Otsego Kaleidoscope Charter School Series A | 4.15 | 9-1-2024 | 190,000 | 187,466 | ||
City of Otsego Kaleidoscope Charter School Series A | 5.00 | 9-1-2034 | 1,100,000 | 1,048,340 | ||
City of Ramsey PACT Charter School Series A | 5.00 | 6-1-2032 | 1,000,000 | 1,003,502 | ||
City of St. Cloud Athlos Academy of St. Cloud Series A144A | 5.25 | 6-1-2032 | 355,000 | 348,064 | ||
The accompanying notes are an integral part of these financial statements.
12 | Allspring Minnesota Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
City of St. Cloud STRIDE Academy Series A | 5.00 % | 4-1-2036 | $ | 750,000 | $619,846 | |
City of Woodbury Math & Science Academy Series A | 4.00 | 12-1-2050 | 500,000 | 417,710 | ||
Housing & Redevelopment Authority of The City of St. Paul Minnesota Hmong College Preparatory Academy Series A | 5.00 | 9-1-2055 | 400,000 | 349,516 | ||
Housing & Redevelopment Authority of The City of St. Paul Minnesota Hmong College Preparatory Academy Series A | 5.25 | 9-1-2031 | 1,000,000 | 1,010,633 | ||
Housing & Redevelopment Authority of The City of St. Paul Minnesota Hope Community Academy Series A | 5.00 | 12-1-2034 | 1,645,000 | 1,573,225 | ||
Housing & Redevelopment Authority of The City of St. Paul Minnesota St. Paul Conservatory for Performing Artists Series A | 4.00 | 3-1-2028 | 150,000 | 142,276 | ||
Housing & Redevelopment Authority of The City of St. Paul Minnesota Twin Cities Academy Series A | 5.00 | 7-1-2035 | 925,000 | 883,217 | ||
Housing & Redevelopment Authority of The City of St. Paul Minnesota Twin Cities German Immersion School | 5.00 | 7-1-2055 | 750,000 | 647,647 | ||
Housing & Redevelopment Authority of The City of St. Paul Minnesota Twin Cities German Immersion School Series A | 4.00 | 7-1-2023 | 45,000 | 45,000 | ||
Minnesota Higher Education Facilities Authority Bethel University | 5.00 | 5-1-2037 | 1,250,000 | 1,207,535 | ||
Minnesota Higher Education Facilities Authority College of St. Benedict | 4.00 | 3-1-2036 | 410,000 | 396,725 | ||
Minnesota Higher Education Facilities Authority College of St. Scholastica, Inc. | 4.00 | 12-1-2040 | 1,000,000 | 897,843 | ||
Minnesota Higher Education Facilities Authority College of St. Scholastica, Inc. Series 7R | 4.25 | 12-1-2027 | 400,000 | 400,024 | ||
Minnesota Higher Education Facilities Authority Hamline University Series B | 5.00 | 10-1-2035 | 1,000,000 | 1,021,150 | ||
Minnesota Higher Education Facilities Authority Macalester College | 5.00 | 3-1-2028 | 400,000 | 427,804 | ||
Minnesota Higher Education Facilities Authority Macalester College | 5.00 | 3-1-2030 | 500,000 | 539,729 | ||
Minnesota Higher Education Facilities Authority St. Catherine University Series A | 5.00 | 10-1-2025 | 570,000 | 584,442 | ||
Minnesota Higher Education Facilities Authority St. Catherine University Series A | 5.00 | 10-1-2045 | 2,000,000 | 2,018,029 | ||
Minnesota Higher Education Facilities Authority St. John’s University | 4.00 | 10-1-2034 | 200,000 | 204,730 | ||
Minnesota Higher Education Facilities Authority St. John’s University | 4.00 | 10-1-2035 | 170,000 | 172,866 | ||
Minnesota Higher Education Facilities Authority St. John’s University | 4.00 | 10-1-2039 | 200,000 | 195,172 | ||
Minnesota Higher Education Facilities Authority St. John’s University | 4.00 | 10-1-2040 | 200,000 | 193,988 | ||
Minnesota Higher Education Facilities Authority St. Olaf College | 4.00 | 10-1-2046 | 2,750,000 | 2,690,940 | ||
Minnesota Higher Education Facilities Authority University of St. Thomas/Minneapolis | 4.00 | 10-1-2041 | 515,000 | 496,581 | ||
Minnesota Higher Education Facilities Authority University of St. Thomas/Minneapolis | 5.00 | 10-1-2040 | 750,000 | 786,895 | ||
Minnesota Higher Education Facilities Authority University of St. Thomas/Minneapolis Series 8 | 5.00 | 4-1-2028 | 920,000 | 964,009 | ||
Minnesota Higher Education Facilities Authority University of St. Thomas/Minneapolis Series 8 | 5.00 | 4-1-2029 | 750,000 | 788,185 | ||
Minnesota Higher Education Facilities Authority University of St. Thomas/Minneapolis Series 8L | 5.00 | 4-1-2035 | 750,000 | 784,936 | ||
Minnesota Higher Education Facilities Authority University of St. Thomas/Minneapolis Series A | 5.00 | 10-1-2026 | 295,000 | 310,283 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Minnesota Tax-Free Fund | 13
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
Minnesota Higher Education Facilities Authority University of St. Thomas/Minneapolis Series A | 5.00 % | 10-1-2052 | $ | 1,000,000 | $1,041,428 | |
Minnesota Higher Education Facilities Authority University of St. Thomas/Minneapolis Series B | 5.00 | 10-1-2036 | 775,000 | 836,945 | ||
Minnesota Office of Higher Education AMT | 4.00 | 11-1-2037 | 595,000 | 584,698 | ||
Minnesota Office of Higher Education AMT | 5.00 | 11-1-2026 | 700,000 | 724,004 | ||
Minnesota Office of Higher Education AMT | 5.00 | 11-1-2027 | 500,000 | 524,392 | ||
Minnesota Office of Higher Education AMT | 5.00 | 11-1-2033 | 1,000,000 | 1,093,446 | ||
University of Minnesota Series A | 5.00 | 4-1-2034 | 270,000 | 300,956 | ||
University of Minnesota Series A | 5.00 | 8-1-2035 | 500,000 | 606,857 | ||
University of Minnesota Series A | 5.00 | 9-1-2042 | 770,000 | 813,439 | ||
38,065,139 | ||||||
GO revenue: 25.97% | ||||||
Becker Independent School District No. 726 Series B | 4.00 | 2-1-2024 | 190,000 | 190,805 | ||
Becker Independent School District No. 726 Series B | 4.00 | 2-1-2026 | 100,000 | 102,084 | ||
Brainerd Independent School District No. 181 Series A | 4.00 | 2-1-2043 | 225,000 | 222,576 | ||
Buffalo-Hanover-Montrose Independent School District No. 877 | 2.85 | 2-1-2028 | 2,080,000 | 2,028,288 | ||
Canby Independent School District No. 891 Series A | 4.00 | 2-1-2043 | 1,320,000 | 1,316,368 | ||
Chisholm Independent School District No. 695 Series A | 6.00 | 2-1-2029 | 500,000 | 584,638 | ||
Chisholm Independent School District No. 695 Series A | 6.00 | 2-1-2030 | 750,000 | 898,971 | ||
City of Chaska Series C | 5.00 | 2-1-2028 | 235,000 | 256,146 | ||
City of Chaska Series C | 5.00 | 2-1-2029 | 250,000 | 277,693 | ||
City of Chaska Series C | 5.00 | 2-1-2030 | 230,000 | 259,841 | ||
City of Elk River Series A | 3.00 | 12-1-2044 | 2,000,000 | 1,685,763 | ||
City of Long Prairie Series A AMT | 5.00 | 2-1-2025 | 160,000 | 164,136 | ||
City of Long Prairie Series A AMT | 5.00 | 2-1-2026 | 185,000 | 192,973 | ||
City of Moorhead Series C | 4.00 | 2-1-2027 | 435,000 | 445,266 | ||
City of St. Cloud Series A | 4.00 | 2-1-2028 | 460,000 | 480,311 | ||
City of St. Cloud Series A | 4.00 | 2-1-2029 | 475,000 | 497,102 | ||
City of St. Cloud Series A | 4.00 | 2-1-2030 | 495,000 | 518,610 | ||
City of St. Cloud Series B | 4.00 | 2-1-2028 | 245,000 | 255,818 | ||
City of St. Cloud Series B | 4.00 | 2-1-2029 | 255,000 | 266,865 | ||
City of St. Cloud Series B | 4.00 | 2-1-2030 | 260,000 | 272,401 | ||
County of Douglas Series A | 5.00 | 8-1-2030 | 1,055,000 | 1,191,545 | ||
County of Hennepin Series A | 5.00 | 12-1-2033 | 160,000 | 175,496 | ||
County of Hennepin Series A | 5.00 | 12-1-2041 | 1,000,000 | 1,046,513 | ||
County of Hennepin Series B | 5.00 | 12-1-2029 | 450,000 | 478,060 | ||
County of Hennepin Series B | 5.00 | 12-15-2031 | 1,260,000 | 1,420,769 | ||
County of Hennepin Series C | 5.00 | 12-1-2031 | 2,000,000 | 2,116,735 | ||
County of Ramsey Series B | 5.00 | 2-1-2034 | 1,950,000 | 2,293,851 | ||
County of Rice Series A | 4.00 | 2-1-2048 | 1,500,000 | 1,468,415 | ||
Duluth Independent School District No. 709 Series C CAB¤ | 0.00 | 2-1-2033 | 1,075,000 | 742,135 | ||
Gibbon Independent School District No. 2365%% | 5.00 | 2-1-2041 | 300,000 | 326,631 | ||
Gibbon Independent School District No. 2365%% | 5.00 | 2-1-2048 | 1,700,000 | 1,823,872 | ||
Hastings Independent School District No. 200 Series A CAB¤ | 0.00 | 2-1-2032 | 1,305,000 | 954,505 | ||
Hastings Independent School District No. 200 Series A CAB¤ | 0.00 | 2-1-2033 | 1,145,000 | 794,926 | ||
Hawley Independent School District No. 150 Series A | 5.00 | 2-1-2040 | 750,000 | 811,527 | ||
The accompanying notes are an integral part of these financial statements.
14 | Allspring Minnesota Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
Hawley Independent School District No. 150 Series A | 5.00 % | 2-1-2041 | $ | 440,000 | $473,511 | |
Hopkins Independent School District No. 270 Series A | 4.00 | 2-1-2031 | 170,000 | 177,459 | ||
Jordan Independent School District No. 717 Series A%% | 5.00 | 2-1-2035 | 150,000 | 170,364 | ||
Jordan Independent School District No. 717 Series A%% | 5.00 | 2-1-2039 | 500,000 | 548,521 | ||
Marshall County Independent School District No. 441 Series A | 5.00 | 2-1-2037 | 250,000 | 277,922 | ||
Marshall County Independent School District No. 441 Series A | 5.00 | 2-1-2038 | 250,000 | 274,911 | ||
Minneapolis Special School District No. 1 Series A | 4.00 | 2-1-2040 | 1,150,000 | 1,165,321 | ||
Nashwauk Keewatin Independent School District No. 319 Series A | 5.00 | 2-1-2030 | 250,000 | 285,982 | ||
Nashwauk Keewatin Independent School District No. 319 Series A | 5.00 | 2-1-2031 | 325,000 | 378,444 | ||
North St. Paul-Maplewood-Oakdale Independent School District No. 622 Series B | 4.00 | 2-1-2029 | 2,735,000 | 2,876,524 | ||
Red Lake County Central Independent School District No. 2906 Series A | 5.00 | 2-1-2030 | 275,000 | 312,800 | ||
Red Lake County Central Independent School District No. 2906 Series A | 5.00 | 2-1-2031 | 465,000 | 537,316 | ||
Red Lake County Central Independent School District No. 2906 Series A | 5.00 | 2-1-2032 | 250,000 | 292,025 | ||
Red Lake County Central Independent School District No. 2906 Series A | 5.00 | 2-1-2033 | 310,000 | 363,537 | ||
Rosemount-Apple Valley-Eagan Independent School District No. 196 Series A | 5.00 | 2-1-2027 | 1,500,000 | 1,572,969 | ||
Roseville Independent School District No. 623 Series A | 5.00 | 2-1-2031 | 2,090,000 | 2,242,004 | ||
Russell Tyler Ruthton Independent School District No. 2902 Series A | 5.00 | 2-1-2030 | 1,620,000 | 1,813,049 | ||
Sartell-St. Stephen Independent School District No. 748 Series A | 5.00 | 2-1-2027 | 1,450,000 | 1,489,506 | ||
Shakopee Independent School District No. 720 Series B | 5.00 | 2-1-2025 | 405,000 | 416,411 | ||
St. Cloud Independent School District No. 742 Series B | 5.00 | 2-1-2031 | 200,000 | 225,937 | ||
State of Minnesota Series A | 5.00 | 8-1-2039 | 1,750,000 | 1,942,509 | ||
State of Minnesota Series B | 3.25 | 8-1-2034 | 140,000 | 140,109 | ||
State of Minnesota Series B | 4.00 | 8-1-2031 | 250,000 | 265,264 | ||
Worthington Independent School District No. 518 Series A | 4.00 | 2-1-2030 | 440,000 | 452,425 | ||
Worthington Independent School District No. 518 Series A | 4.00 | 2-1-2032 | 530,000 | 544,711 | ||
Worthington Independent School District No. 518 Series A | 4.00 | 2-1-2033 | 555,000 | 570,174 | ||
46,371,340 | ||||||
Health revenue: 19.42% | ||||||
City of Center City Hazelden Betty Ford Foundation | 5.00 | 11-1-2026 | 750,000 | 758,365 | ||
City of Center City Hazelden Betty Ford Foundation | 5.00 | 11-1-2027 | 500,000 | 505,256 | ||
City of Center City Hazelden Betty Ford Foundation | 5.00 | 11-1-2029 | 300,000 | 302,768 | ||
City of Maple Grove Hospital Corp. | 5.00 | 5-1-2030 | 850,000 | 888,726 | ||
City of Maple Grove Hospital Corp. | 5.00 | 5-1-2031 | 500,000 | 521,990 | ||
City of Maple Grove Hospital Corp. | 5.00 | 5-1-2032 | 725,000 | 753,903 | ||
City of Maple Grove North Memorial Health Care | 5.00 | 9-1-2023 | 655,000 | 656,318 | ||
City of Minneapolis Allina Health Obligated Group | 4.00 | 11-15-2038 | 975,000 | 958,882 | ||
City of Minneapolis Allina Health Obligated Group Series Bøø | 5.00 | 11-15-2053 | 1,000,000 | 1,103,740 | ||
City of Minneapolis Fairview Health Services Obligated Group Series A | 5.00 | 11-15-2033 | 3,000,000 | 3,120,721 | ||
City of Minneapolis Fairview Health Services Obligated Group Series A | 5.00 | 11-15-2035 | 390,000 | 412,346 | ||
City of Minneapolis Fairview Health Services Obligated Group Series A | 5.00 | 11-15-2036 | 1,100,000 | 1,156,080 | ||
City of Minneapolis Fairview Health Services Obligated Group Series A | 5.00 | 11-15-2049 | 1,000,000 | 1,016,547 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Minnesota Tax-Free Fund | 15
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
City of Minneapolis/St. Paul Housing & Redevelopment Authority Allina Health Obligated Group | 5.00 % | 11-15-2025 | $ | 225,000 | $233,360 | |
City of Minneapolis/St. Paul Housing & Redevelopment Authority Allina Health Obligated Group | 5.00 | 11-15-2026 | 645,000 | 680,796 | ||
City of Minneapolis/St. Paul Housing & Redevelopment Authority Allina Health Obligated Group | 5.00 | 11-15-2029 | 1,000,000 | 1,108,518 | ||
City of Minneapolis/St. Paul Housing & Redevelopment Authority Allina Health Obligated Group Series A | 5.00 | 11-15-2029 | 1,000,000 | 1,068,373 | ||
City of Plato Glencoe Regional Health Services | 5.00 | 4-1-2041 | 550,000 | 559,819 | ||
City of Shakopee St. Francis Regional Medical Center Obligated Group | 5.00 | 9-1-2024 | 420,000 | 426,130 | ||
City of Shakopee St. Francis Regional Medical Center Obligated Group | 5.00 | 9-1-2027 | 700,000 | 710,178 | ||
City of Shakopee St. Francis Regional Medical Center Obligated Group | 5.00 | 9-1-2029 | 725,000 | 735,372 | ||
City of Shakopee Senior Housing Revenue Benedictine Living Community of Shakopee LLC144Aøø | 5.85 | 11-1-2058 | 745,000 | 733,226 | ||
City of St. Cloud CentraCare Health System Obligated Group Series A | 5.00 | 5-1-2027 | 1,785,000 | 1,856,587 | ||
City of St. Cloud CentraCare Health System Obligated Group Series A | 5.00 | 5-1-2028 | 1,550,000 | 1,613,823 | ||
City of St. Cloud CentraCare Health System Obligated Group Series A | 5.00 | 5-1-2030 | 2,000,000 | 2,084,832 | ||
City of St. Cloud CentraCare Health System Obligated Group Series A | 5.00 | 5-1-2031 | 2,000,000 | 2,084,087 | ||
Duluth EDA Essentia Health Obligated Group Series A | 5.00 | 2-15-2048 | 650,000 | 656,970 | ||
Duluth EDA Essentia Health Obligated Group Series A | 5.00 | 2-15-2058 | 1,450,000 | 1,454,661 | ||
Duluth EDA Essentia Health Obligated Group Series A | 5.25 | 2-15-2053 | 2,500,000 | 2,583,484 | ||
Housing & Redevelopment Authority of The City of St. Paul Minnesota Fairview Health Services Obligated Group Series A | 5.00 | 11-15-2034 | 565,000 | 591,508 | ||
Housing & Redevelopment Authority of The City of St. Paul Minnesota HealthPartners Obligated Group Series A | 5.00 | 7-1-2025 | 520,000 | 534,143 | ||
Housing & Redevelopment Authority of The City of St. Paul Minnesota HealthPartners Obligated Group Series A | 5.00 | 7-1-2028 | 720,000 | 738,887 | ||
Housing & Redevelopment Authority of The City of St. Paul Minnesota HealthPartners Obligated Group Series A | 5.00 | 7-1-2031 | 2,010,000 | 2,060,742 | ||
34,671,138 | ||||||
Housing revenue: 7.33% | ||||||
City of Minneapolis Riverton Community Housing | 5.00 | 8-1-2032 | 860,000 | 861,033 | ||
City of New London EDA Southwest & West Central Service Cooperatives Series A | 4.50 | 2-1-2033 | 500,000 | 499,599 | ||
City of New London EDA Southwest & West Central Service Cooperatives Series A | 5.00 | 2-1-2038 | 880,000 | 879,064 | ||
Minnesota Housing Finance Agency Series A | 4.00 | 8-1-2031 | 300,000 | 313,256 | ||
Minnesota Housing Finance Agency Series A | 5.00 | 8-1-2027 | 1,665,000 | 1,695,435 | ||
Minnesota Housing Finance Agency Series A | 5.00 | 8-1-2032 | 500,000 | 507,606 | ||
Minnesota Housing Finance Agency Series B | 5.00 | 8-1-2029 | 320,000 | 356,961 | ||
Minnesota Housing Finance Agency Series B | 5.00 | 8-1-2030 | 465,000 | 527,147 | ||
Minnesota Housing Finance Agency Series B (GNMA / FNMA / FHLMC Insured) | 4.10 | 7-1-2038 | 1,000,000 | 967,728 | ||
Minnesota Housing Finance Agency Series C (Department of Housing and Urban Development Insured)øø | 0.30 | 2-1-2024 | 1,500,000 | 1,471,028 | ||
Minnesota Housing Finance Agency Series D | 5.00 | 8-1-2028 | 200,000 | 219,121 | ||
Minnesota Housing Finance Agency Series D (GNMA / FNMA / FHLMC Insured) (SIFMA Municipal Swap+0.43%)± | 4.44 | 1-1-2045 | 560,000 | 560,000 | ||
The accompanying notes are an integral part of these financial statements.
16 | Allspring Minnesota Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
Minnesota Housing Finance Agency Series E (GNMA / FNMA / FHLMC Insured) | 1.75 % | 1-1-2028 | $ | 630,000 | $575,654 | |
Minnesota Housing Finance Agency Series E (GNMA / FNMA / FHLMC Insured) | 1.75 | 7-1-2028 | 490,000 | 444,304 | ||
Minnesota Housing Finance Agency Series M (GNMA / FNMA / FHLMC Insured)## | 4.85 | 7-1-2037 | 3,055,000 | 3,207,954 | ||
13,085,890 | ||||||
Miscellaneous revenue: 9.30% | ||||||
Anoka-Hennepin Independent School District No. 11 Series A COP | 5.00 | 2-1-2034 | 1,000,000 | 1,008,382 | ||
City of Center City Hazelden Betty Ford Foundation | 4.00 | 11-1-2030 | 250,000 | 245,782 | ||
City of Center City Hazelden Betty Ford Foundation | 4.00 | 11-1-2031 | 250,000 | 244,445 | ||
City of Center City Hazelden Betty Ford Foundation | 4.00 | 11-1-2034 | 300,000 | 286,535 | ||
City of White Bear Lake Young Men’s Christian Association of the Greater Twin Cities | 5.00 | 6-1-2032 | 1,000,000 | 1,073,671 | ||
Duluth Independent School District No. 709 Series A COP | 4.00 | 3-1-2026 | 700,000 | 696,138 | ||
Duluth Independent School District No. 709 Series B COP | 5.00 | 2-1-2026 | 395,000 | 411,825 | ||
Duluth Independent School District No. 709 Series B COP | 5.00 | 2-1-2028 | 700,000 | 755,201 | ||
Goodhue County Education District No. 6051 COP | 5.00 | 2-1-2029 | 750,000 | 757,479 | ||
Lake Agassiz Education Cooperative No. 0397-52 Series A COP | 3.00 | 2-1-2028 | 290,000 | 277,640 | ||
Lake Agassiz Education Cooperative No. 0397-52 Series A COP | 3.00 | 2-1-2029 | 300,000 | 285,920 | ||
Lake Agassiz Education Cooperative No. 0397-52 Series A COP | 3.00 | 2-1-2030 | 310,000 | 294,320 | ||
Minneapolis Special School District No. 1 Series A COP | 5.00 | 4-1-2024 | 300,000 | 303,963 | ||
Minnesota Rural Water Finance Authority, Inc. Minnesota Rural Water Finance Authority, Inc. | 2.63 | 12-1-2023 | 1,500,000 | 1,487,982 | ||
Minnetonka Independent School District No. 276 Series C COP | 5.75 | 2-1-2042 | 2,145,000 | 2,233,950 | ||
Northeastern Metropolitan Intermediate School District No. 916 Series A COP | 4.00 | 2-1-2024 | 1,100,000 | 1,100,508 | ||
Northeastern Metropolitan Intermediate School District No. 916 Series B COP | 5.00 | 2-1-2034 | 1,500,000 | 1,536,460 | ||
Plymouth Intermediate District No. 287 Series A COP | 4.00 | 2-1-2024 | 130,000 | 130,367 | ||
Plymouth Intermediate District No. 287 Series A COP | 4.00 | 2-1-2025 | 215,000 | 216,733 | ||
Plymouth Intermediate District No. 287 Series A COP | 4.00 | 5-1-2026 | 500,000 | 506,136 | ||
Plymouth Intermediate District No. 287 Series A COP | 4.00 | 5-1-2027 | 1,000,000 | 1,015,216 | ||
St. Cloud Independent School District No. 742 COP | 5.00 | 2-1-2032 | 500,000 | 512,231 | ||
St. Cloud Independent School District No. 742 COP | 5.00 | 2-1-2034 | 350,000 | 358,507 | ||
White Bear Lake Independent School District No. 624 Series B COP | 5.00 | 4-1-2026 | 830,000 | 870,043 | ||
16,609,434 | ||||||
Transportation revenue: 0.61% | ||||||
Housing & Redevelopment Authority of The City of St. Paul Minnesota Series A | 4.00 | 8-1-2026 | 525,000 | 531,895 | ||
Housing & Redevelopment Authority of The City of St. Paul Minnesota Series A | 4.00 | 8-1-2027 | 545,000 | 553,025 | ||
1,084,920 | ||||||
Utilities revenue: 10.67% | ||||||
Central Minnesota Municipal Power Agency (AGM Insured) | 4.00 | 1-1-2042 | 350,000 | 351,504 | ||
Central Minnesota Municipal Power Agency (AGM Insured) | 5.00 | 1-1-2029 | 315,000 | 348,153 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Minnesota Tax-Free Fund | 17
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue (continued) | ||||||
Central Minnesota Municipal Power Agency (AGM Insured) | 5.00 % | 1-1-2030 | $ | 210,000 | $235,990 | |
Central Minnesota Municipal Power Agency (AGM Insured) | 5.00 | 1-1-2031 | 350,000 | 395,527 | ||
City of Elk River Electric Revenue Series B | 5.00 | 8-1-2028 | 300,000 | 330,614 | ||
City of Rochester Electric Utility Revenue Series A | 5.00 | 12-1-2037 | 500,000 | 521,787 | ||
City of Rochester Electric Utility Revenue Series B | 5.00 | 12-1-2025 | 315,000 | 317,332 | ||
City of Rochester Electric Utility Revenue Series B | 5.00 | 12-1-2026 | 250,000 | 251,851 | ||
Hutchinson Utilities Commission Series A | 5.00 | 12-1-2026 | 700,000 | 700,878 | ||
Minnesota Municipal Gas Agency Series A (Royal Bank of Canada LIQ)øø## | 4.00 | 12-1-2052 | 3,000,000 | 2,997,963 | ||
Minnesota Municipal Power Agency | 5.00 | 10-1-2047 | 500,000 | 516,112 | ||
Northern Municipal Power Agency | 5.00 | 1-1-2025 | 205,000 | 209,864 | ||
Northern Municipal Power Agency | 5.00 | 1-1-2030 | 520,000 | 542,462 | ||
Northern Municipal Power Agency | 5.00 | 1-1-2031 | 350,000 | 365,033 | ||
Northern Municipal Power Agency | 5.00 | 1-1-2036 | 100,000 | 105,009 | ||
Northern Municipal Power Agency | 5.00 | 1-1-2041 | 400,000 | 412,717 | ||
Northern Municipal Power Agency Series A | 4.00 | 1-1-2028 | 450,000 | 450,232 | ||
Northern Municipal Power Agency Series A | 5.00 | 1-1-2024 | 500,000 | 500,531 | ||
Northern Municipal Power Agency Series A | 5.00 | 1-1-2031 | 745,000 | 745,797 | ||
Southern Minnesota Municipal Power Agency Series A | 5.00 | 1-1-2029 | 515,000 | 537,497 | ||
Southern Minnesota Municipal Power Agency Series A | 5.00 | 1-1-2031 | 520,000 | 542,589 | ||
Southern Minnesota Municipal Power Agency Series A | 5.00 | 1-1-2041 | 480,000 | 494,464 | ||
Southern Minnesota Municipal Power Agency Badger Coulee Project Series A | 5.00 | 1-1-2032 | 700,000 | 792,099 | ||
Southern Minnesota Municipal Power Agency Badger Coulee Project Series A | 5.00 | 1-1-2033 | 560,000 | 631,312 | ||
Southern Minnesota Municipal Power Agency Badger Coulee Project Series A | 5.00 | 1-1-2034 | 615,000 | 692,076 | ||
St. Paul Port Authority District Energy St. Paul Obligated Group Series 1 | 3.00 | 10-1-2023 | 200,000 | 199,682 | ||
St. Paul Port Authority District Energy St. Paul Obligated Group Series 1 | 3.00 | 10-1-2027 | 100,000 | 98,246 | ||
St. Paul Port Authority District Energy St. Paul Obligated Group Series 1 | 3.00 | 10-1-2034 | 225,000 | 206,686 | ||
St. Paul Port Authority District Energy St. Paul Obligated Group Series 1 | 4.00 | 10-1-2028 | 400,000 | 413,457 | ||
St. Paul Port Authority District Energy St. Paul Obligated Group Series 1 | 4.00 | 10-1-2041 | 500,000 | 488,937 | ||
Western Minnesota Municipal Power Agency Series A | 5.00 | 1-1-2031 | 1,000,000 | 1,041,005 | ||
Western Minnesota Municipal Power Agency Series A | 5.00 | 1-1-2034 | 1,000,000 | 1,036,639 | ||
Western Minnesota Municipal Power Agency Series A | 5.00 | 1-1-2049 | 1,500,000 | 1,578,552 | ||
19,052,597 | ||||||
Water & sewer revenue: 0.56% | ||||||
City of St. Paul Water Revenue Series A | 4.00 | 12-1-2045 | 1,000,000 | 1,003,732 | ||
174,928,236 | ||||||
The accompanying notes are an integral part of these financial statements.
18 | Allspring Minnesota Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
New York: 0.16% | ||||||
Health revenue: 0.16% | ||||||
Westchester County Local Development Corp. Kendal on Hudson Obligated Group Series B | 5.00 % | 1-1-2027 | $ | 275,000 | $280,638 | |
Puerto Rico: 0.82% | ||||||
Health revenue: 0.82% | ||||||
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Financing Authority Hospital Auxilio Mutuo Obligated Group | 4.00 | 7-1-2037 | 275,000 | 251,611 | ||
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Financing Authority Hospital Auxilio Mutuo Obligated Group | 5.00 | 7-1-2028 | 760,000 | 808,160 | ||
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Financing Authority Hospital Auxilio Mutuo Obligated Group | 5.00 | 7-1-2031 | 365,000 | 402,282 | ||
1,462,053 | ||||||
Total municipal obligations (Cost $184,010,100) | 178,307,722 | |||||
Total investments in securities (Cost $184,010,100) | 99.86 % | 178,307,722 | ||||
Other assets and liabilities, net | 0.14 | 246,374 | ||||
Total net assets | 100.00 % | $178,554,096 | ||||
144A | The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
%% | The security is purchased on a when-issued basis. |
¤ | The security is issued in zero coupon form with no periodic interest payments. |
± | Variable rate investment. The rate shown is the rate in effect at period end. |
## | All or a portion of this security is segregated for when-issued securities. |
Abbreviations: | |
AGM | Assured Guaranty Municipal |
AMT | Alternative minimum tax |
CAB | Capital appreciation bond |
COP | Certificate of participation |
EDA | Economic Development Authority |
FHLMC | Federal Home Loan Mortgage Corporation |
FNMA | Federal National Mortgage Association |
GNMA | Government National Mortgage Association |
GO | General obligation |
LIQ | Liquidity agreement |
SIFMA | Securities Industry and Financial Markets Association |
The accompanying notes are an integral part of these financial statements.
Allspring Minnesota Tax-Free Fund | 19
Statement of assets and liabilities—June 30, 2023
Financial statements
Statement of assets and liabilities
Assets | |
Investments in unaffiliated securities, at value (cost $184,010,100) | $178,307,722 |
Cash | 3,675,271 |
Receivable for interest | 2,573,382 |
Receivable for investments sold | 743,049 |
Receivable for Fund shares sold | 68,921 |
Prepaid expenses and other assets | 64,217 |
Total assets | 185,432,562 |
Liabilities | |
Payable for Fund shares redeemed | 3,534,890 |
Payable for when-issued transactions | 3,195,332 |
Dividends payable | 74,082 |
Management fee payable | 31,484 |
Administration fees payable | 16,185 |
Distribution fee payable | 571 |
Trustees’ fees and expenses payable | 361 |
Accrued expenses and other liabilities | 25,561 |
Total liabilities | 6,878,466 |
Total net assets | $178,554,096 |
Net assets consist of | |
Paid-in capital | $184,446,128 |
Total distributable loss | (5,892,032 ) |
Total net assets | $178,554,096 |
Computation of net asset value and offering price per share | |
Net assets–Class A | $22,840,884 |
Shares outstanding–Class A1 | 2,269,309 |
Net asset value per share–Class A | $10.07 |
Maximum offering price per share – Class A2 | $10.54 |
Net assets–Class C | $1,061,978 |
Shares outstanding–Class C1 | 105,500 |
Net asset value per share–Class C | $10.07 |
Net assets–Administrator Class | $34,695,707 |
Shares outstanding–Administrator Class1 | 3,447,165 |
Net asset value per share–Administrator Class | $10.06 |
Net assets–Institutional Class | $119,955,527 |
Shares outstanding–Institutional Class1 | 11,911,463 |
Net asset value per share–Institutional Class | $10.07 |
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 Minnesota Tax-Free Fund
Statement of operations—year ended June 30, 2023
Statement of operations
Investment income | |
Interest | $5,673,581 |
Expenses | |
Management fee | 766,419 |
Administration fees | |
Class A | 40,004 |
Class C | 1,927 |
Administrator Class | 50,454 |
Institutional Class | 91,945 |
Shareholder servicing fees | |
Class A | 62,449 |
Class C | 2,827 |
Administrator Class | 125,371 |
Distribution fee | |
Class C | 8,480 |
Custody and accounting fees | 9,261 |
Professional fees | 76,749 |
Registration fees | 51,365 |
Shareholder report expenses | 32,746 |
Trustees’ fees and expenses | 24,151 |
Other fees and expenses | 8,343 |
Total expenses | 1,352,491 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (76,213 ) |
Class A | (6,310 ) |
Administrator Class | (107,949 ) |
Institutional Class | (30,373 ) |
Net expenses | 1,131,646 |
Net investment income | 4,541,935 |
Realized and unrealized gains (losses) on investments | |
Net realized losses on investments | (733,264 ) |
Net change in unrealized gains (losses) on investments | (44,807 ) |
Net realized and unrealized gains (losses) on investments | (778,071 ) |
Net increase in net assets resulting from operations | $3,763,864 |
The accompanying notes are an integral part of these financial statements.
Allspring Minnesota Tax-Free Fund | 21
Statement of changes in net assets
Statement of changes in net assets
Year ended June 30, 2023 | Year ended June 30, 2022 | |||
Operations | ||||
Net investment income | $4,541,935 | $3,555,926 | ||
Net realized losses on investments | (733,264 ) | (285,208 ) | ||
Net change in unrealized gains (losses) on investments | (44,807 ) | (14,731,962 ) | ||
Net increase (decrease) in net assets resulting from operations | 3,763,864 | (11,461,244 ) | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class A | (525,434 ) | (530,893 ) | ||
Class C | (16,882 ) | (18,937 ) | ||
Administrator Class | (1,186,463 ) | (1,225,069 ) | ||
Institutional Class | (2,813,156 ) | (2,025,072 ) | ||
Total distributions to shareholders | (4,541,935 ) | (3,799,971 ) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class A | 358,566 | 3,608,132 | 175,543 | 1,829,918 |
Class C | 58,785 | 588,041 | 11,415 | 122,003 |
Administrator Class | 2,691,521 | 27,039,073 | 1,338,902 | 14,180,966 |
Institutional Class | 8,575,654 | 86,040,406 | 7,339,926 | 75,455,903 |
117,275,652 | 91,588,790 | |||
Reinvestment of distributions | ||||
Class A | 51,758 | 520,123 | 49,574 | 529,205 |
Class C | 1,669 | 16,782 | 1,768 | 18,934 |
Administrator Class | 117,224 | 1,177,751 | 114,150 | 1,218,535 |
Institutional Class | 220,568 | 2,218,353 | 135,521 | 1,445,764 |
3,933,009 | 3,212,438 | |||
Payment for shares redeemed | ||||
Class A | (854,053 ) | (8,553,245 ) | (378,627 ) | (4,030,884 ) |
Class C | (68,376 ) | (682,129 ) | (86,673 ) | (903,922 ) |
Administrator Class | (4,661,379 ) | (46,855,663 ) | (1,665,542 ) | (17,447,828 ) |
Institutional Class | (7,182,406 ) | (72,115,731 ) | (5,504,066 ) | (56,987,358 ) |
(128,206,768 ) | (79,369,992 ) | |||
Net increase (decrease) in net assets resulting from capital share transactions | (6,998,107 ) | 15,431,236 | ||
Total increase (decrease) in net assets | (7,776,178 ) | 170,021 | ||
Net assets | ||||
Beginning of period | 186,330,274 | 186,160,253 | ||
End of period | $178,554,096 | $186,330,274 | ||
The accompanying notes are an integral part of these financial statements.
22 | Allspring Minnesota Tax-Free Fund
Financial highlights
Financial highlights
(For a share outstanding throughout each period)
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class A | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.11 | $11.02 | $10.86 | $10.77 | $10.51 |
Net investment income | 0.21 1 | 0.18 | 0.20 1 | 0.23 | 0.27 1 |
Net realized and unrealized gains (losses) on investments | (0.04 ) | (0.90 ) | 0.16 | 0.09 | 0.26 |
Total from investment operations | 0.17 | (0.72 ) | 0.36 | 0.32 | 0.53 |
Distributions to shareholders from | |||||
Net investment income | (0.21 ) | (0.18 ) | (0.20 ) | (0.23 ) | (0.27 ) |
Net realized gains | 0.00 | (0.01 ) | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders | (0.21 ) | (0.19 ) | (0.20 ) | (0.23 ) | (0.27 ) |
Net asset value, end of period | $10.07 | $10.11 | $11.02 | $10.86 | $10.77 |
Total return2 | 1.73 % | (6.59 )% | 3.32 % | 2.99 % | 5.13 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.91 % | 0.91 % | 0.92 % | 0.93 % | 0.94 % |
Net expenses | 0.85 % | 0.85 % | 0.85 % | 0.85 % | 0.85 % |
Net investment income | 2.10 % | 1.67 % | 1.80 % | 2.12 % | 2.57 % |
Supplemental data | |||||
Portfolio turnover rate | 28 % | 11 % | 9 % | 16 % | 18 % |
Net assets, end of period (000s omitted) | $22,841 | $27,431 | $31,586 | $29,317 | $27,399 |
1 | Calculated based upon average shares outstanding |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
Allspring Minnesota Tax-Free Fund | 23
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class C | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.11 | $11.02 | $10.86 | $10.77 | $10.51 |
Net investment income | 0.14 1 | 0.10 1 | 0.12 1 | 0.15 1 | 0.19 |
Net realized and unrealized gains (losses) on investments | (0.04 ) | (0.90 ) | 0.16 | 0.09 | 0.26 |
Total from investment operations | 0.10 | (0.80 ) | 0.28 | 0.24 | 0.45 |
Distributions to shareholders from | |||||
Net investment income | (0.14 ) | (0.10 ) | (0.12 ) | (0.15 ) | (0.19 ) |
Net realized gains | 0.00 | (0.01 ) | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders | (0.14 ) | (0.11 ) | (0.12 ) | (0.15 ) | (0.19 ) |
Net asset value, end of period | $10.07 | $10.11 | $11.02 | $10.86 | $10.77 |
Total return2 | 1.00 % | (7.29 )% | 2.54 % | 2.22 % | 4.35 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.60 % | 1.66 % | 1.66 % | 1.68 % | 1.69 % |
Net expenses | 1.56 % | 1.60 % | 1.60 % | 1.60 % | 1.60 % |
Net investment income | 1.40 % | 0.91 % | 1.06 % | 1.37 % | 1.83 % |
Supplemental data | |||||
Portfolio turnover rate | 28 % | 11 % | 9 % | 16 % | 18 % |
Net assets, end of period (000s omitted) | $1,062 | $1,147 | $2,060 | $4,020 | $5,254 |
1 | Calculated based upon average shares outstanding |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
24 | Allspring Minnesota Tax-Free Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Administrator Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.11 | $11.02 | $10.86 | $10.76 | $10.51 |
Net investment income | 0.24 1 | 0.21 | 0.23 1 | 0.26 1 | 0.30 1 |
Net realized and unrealized gains (losses) on investments | (0.05 ) | (0.90 ) | 0.16 | 0.10 | 0.25 |
Total from investment operations | 0.19 | (0.69 ) | 0.39 | 0.36 | 0.55 |
Distributions to shareholders from | |||||
Net investment income | (0.24 ) | (0.21 ) | (0.23 ) | (0.26 ) | (0.30 ) |
Net realized gains | 0.00 | (0.01 ) | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders | (0.24 ) | (0.22 ) | (0.23 ) | (0.26 ) | (0.30 ) |
Net asset value, end of period | $10.06 | $10.11 | $11.02 | $10.86 | $10.76 |
Total return | 1.88 % | (6.35 )% | 3.58 % | 3.34 % | 5.29 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.85 % | 0.85 % | 0.86 % | 0.87 % | 0.88 % |
Net expenses | 0.60 % | 0.60 % | 0.60 % | 0.60 % | 0.60 % |
Net investment income | 2.35 % | 1.92 % | 2.06 % | 2.38 % | 2.81 % |
Supplemental data | |||||
Portfolio turnover rate | 28 % | 11 % | 9 % | 16 % | 18 % |
Net assets, end of period (000s omitted) | $34,696 | $53,578 | $60,727 | $69,954 | $95,072 |
1 | Calculated based upon average shares outstanding |
The accompanying notes are an integral part of these financial statements.
Allspring Minnesota Tax-Free Fund | 25
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Institutional Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.12 | $11.02 | $10.87 | $10.77 | $10.52 |
Net investment income | 0.25 1 | 0.21 | 0.23 | 0.26 | 0.30 |
Net realized and unrealized gains (losses) on investments | (0.05 ) | (0.89 ) | 0.15 | 0.10 | 0.25 |
Total from investment operations | 0.20 | (0.68 ) | 0.38 | 0.36 | 0.55 |
Distributions to shareholders from | |||||
Net investment income | (0.25 ) | (0.21 ) | (0.23 ) | (0.26 ) | (0.30 ) |
Net realized gains | 0.00 | (0.01 ) | 0.00 | 0.00 | 0.00 |
Total distributions to shareholders | (0.25 ) | (0.22 ) | (0.23 ) | (0.26 ) | (0.30 ) |
Net asset value, end of period | $10.07 | $10.12 | $11.02 | $10.87 | $10.77 |
Total return | 1.96 % | (6.19 )% | 3.56 % | 3.42 % | 5.37 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.59 % | 0.58 % | 0.59 % | 0.60 % | 0.61 % |
Net expenses | 0.52 % | 0.52 % | 0.52 % | 0.52 % | 0.52 % |
Net investment income | 2.45 % | 2.01 % | 2.13 % | 2.43 % | 2.89 % |
Supplemental data | |||||
Portfolio turnover rate | 28 % | 11 % | 9 % | 16 % | 18 % |
Net assets, end of period (000s omitted) | $119,956 | $104,175 | $91,787 | $70,383 | $35,630 |
1 | Calculated based upon average shares outstanding |
The accompanying notes are an integral part of these financial statements.
26 | Allspring Minnesota Tax-Free Fund
Notes to financial statements
Notes to financial statements
1.
ORGANIZATION
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Minnesota Tax-Free 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 (generally4 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.
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.
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.
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.
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 and 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 received 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.
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.
Allspring Minnesota Tax-Free Fund | 27
Notes to financial statements
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, 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 June 30, 2023, the aggregate cost of all investments for federal income tax purposes was $184,010,098 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $384,757 |
Gross unrealized losses | (6,087,133 ) |
Net unrealized losses | $(5,702,376 ) |
As of June 30, 2023, the Fund had capital loss carryforwards which consist of $288,433 in short-term capital losses and $730,039 in long-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.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2023:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Municipal obligations | $0 | $178,307,722 | $0 | $178,307,722 |
Total assets | $0 | $178,307,722 | $0 | $178,307,722 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended June 30, 2023, the Fund did not have any transfers into/out of Level 3.
28 | Allspring Minnesota Tax-Free Fund
Notes to financial statements
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 | 0.400 % |
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 year ended June 30, 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 a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.20% 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 | 0.15 % |
Class C | 0.15 |
Administrator Class | 0.10 |
Institutional Class | 0.08 |
Prior to June 30, 2023, the class-level administration fee for Class A and Class C was 0.16% of the average daily net assets of each respective class.
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 October 31, 2023 (October 31, 2024 for Class A and Class C) 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 June 30, 2023, the contractual expense caps are as follows:
EXPENSE RATIO CAPS | |
Class A | 0.84 % |
Class C | 1.59 |
Administrator Class | 0.60 |
Institutional Class | 0.52 |
Prior to June 30, 2023, the Fund’s expenses were capped at 0.85% for Class A shares and 1.60% for Class C shares.
Allspring Minnesota Tax-Free Fund | 29
Notes to financial statements
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 year ended June 30, 2023, Allspring Funds Distributor received $50 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the year ended June 30, 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. Pursuant to these procedures, the Fund had $7,875,000, $27,300,000 and $0 in interfund purchases, sales and net realized gains (losses), respectively, during the year ended June 30, 2023.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2023 were $49,630,175 and $52,873,000, 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 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 year ended June 30, 2023, there were no borrowings by the Fund under the agreement.
7.
DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid during the years ended June 30, 2023 and June 30, 2022 were as follows:
Year ended June 30 | ||
2023 | 2022 | |
Ordinary income | $0 | $113,376 |
Tax-exempt income | 4,541,935 | 3,556,241 |
Long-term capital gain | 0 | 130,354 |
As of June 30, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | Unrealized losses | Capital loss carryforward |
$902,898 | $(5,702,376 ) | $(1,018,472 ) |
8.
CONCENTRATION RISK
The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state or territory of the U.S. Therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt fund. As of the end of the period, the Fund’s investments were concentrated in the state of Minnesota.
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
30 | Allspring Minnesota Tax-Free Fund
Notes to financial statements
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 Minnesota Tax-Free Fund | 31
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring Minnesota Tax-Free Fund (the Fund), one of the funds constituting Allspring Funds Trust, including the portfolio of investments, as of June 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of June 30, 2023, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific years that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
August 25, 2023
32 | Allspring Minnesota Tax-Free Fund
Other information (unaudited)
Other information
Tax information
Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2023.
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 1-866-259-3305, 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 Minnesota Tax-Free 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 |
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 |
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.
34 | Allspring Minnesota Tax-Free 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 |
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 Minnesota Tax-Free Fund | 35
Other information (unaudited)
Officers1
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 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 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 Minnesota Tax-Free Fund
Other information (unaudited)
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 15-17, 2023 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Minnesota Tax-Free Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2023, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
The Board noted that it initially approved the Advisory Agreements at a Board meeting held in May 2021, each for a two-year term, in advance of the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC,1 a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. (the “Transaction”). The Trustees also noted that, while they did not specifically consider the continuation of the Advisory Agreements in 2022 as a result of the two-year term that was approved in 2021, the Trustees received and considered certain information at a Board meeting held in April 2022 that was applicable to the Advisory Agreements, including an overview and financial review of the Allspring Global Investments business, information regarding certain ancillary agreements that were approved by the Board at the April 2022 Board meeting, and comparative data regarding Fund fees and expenses.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2023. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business. The Board also considered information about retention arrangements with respect to key personnel of Allspring Global Investments that were put in place in connection with the Transaction. The Board took into account information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the Transaction under a transition services agreement and the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
1
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
Allspring Minnesota Tax-Free Fund | 37
Other information (unaudited)
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, and Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2022. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was higher than the investment performance of its benchmark index, the Bloomberg Municipal Bond Index, for the one- and three-year periods under review, in range of the investment performance of its benchmark index for the five-year period under review and lower than the investment performance of its benchmark index for the ten-year period under review.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were in range of the median net operating expense ratios of the expense Groups for each share class, except that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for the Institutional Class. The Board noted that Allspring Funds Management had agreed to reduce the net operating expense caps for the Fund’s Class A shares.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than the sum of these average rates for the Fund’s expense Groups for all share classes, except that the Management Rates of the Fund were equal to the sum of these average rates for the Fund’s expense Groups for the Class A shares.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
38 | Allspring Minnesota Tax-Free Fund
Other information (unaudited)
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Profitability
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and differences in how Allspring Global Investments calculates its pre-tax profit metric versus the methodology used when Allspring Funds Management was part of Wells Fargo. It was noted that the impact of such differences had only minor impact on the financial results presented. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints and reductions in the net operating expense caps for the Fund’s Class A shares, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser and fees earned in the past by Allspring Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund complex’s securities lending collateral.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
Allspring Minnesota Tax-Free Fund | 39
Other information (unaudited)
Liquidity risk management program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that operate as money market funds), including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund’s investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the “Council”) composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 16-17, 2023, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2022 through December 31, 2022 (the “Reporting Period”). The Report noted significant liquidity events impacting the Funds related to extended foreign market holidays as well as the difficulty of trading and settlement of most Russia-related securities due to sanctions activity. The Report noted that there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage the Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
40 | Allspring Minnesota Tax-Free 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
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.
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The views expressed and any forward-looking statements are as of June 30, 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 Municipal Bond Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Municipal Bond Fund for the 12-month period that ended June 30, 2023. Globally, stocks and bonds experienced heightened volatility through the period. The market was focused on persistently high inflation and the impact of ongoing aggressive central bank rate hikes. Compounding these concerns were the global reverberations of the Russia-Ukraine war. Riskier assets rallied in 2023, with anticipation of an end to the tight monetary policy despite concerns of a possible impending recession. After suffering deep and broad losses through 2022, bonds now benefit from a base of higher yields that can help generate higher income. However, ongoing rate hikes continued to be a headwind during recent months.
For the 12-month period, stocks generally outperformed bonds—both domestic U.S. and global. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 19.59%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 12.72%, while the MSCI EM Index (Net) (USD)3 had more muted performance, with a gain of 1.75%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -0.94%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 fell 1.83%, the Bloomberg Municipal Bond Index6 gained 3.19%, and the ICE BofA U.S. High Yield Index7 returned 8.97%.
Despite high inflation and central bank rate hikes, markets rallied.
Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong: July nonfarm payrolls grew by more than 500,000 and U.S. unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices—major contributors to recent overall inflation—fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with mortgage rates at a 13-year high. The Federal Reserve (Fed) raised the federal funds rate 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to further rate hikes.
August was a broadly challenging month. High inflation persisted, cresting 9% in the eurozone on an annual basis and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June peak. One positive was the resilient U.S. jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act. Its primary stated goals include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“ Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong. ”
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 the 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 Municipal Bond Fund
Letter to shareholders (unaudited)
In September, all asset classes suffered further major losses. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar weighed on results for investors holding non-U.S.-dollar assets. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The Bank of England (BoE) then stepped in and bought long-dated government bonds.
Equities had a reprieve in October. 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 increasing 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.
Financial markets cooled in December, with U.S. equities declining overall in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever, with generally flat 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 wound 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 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.
Markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks would 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 was not falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the BoE and the European Central Bank (ECB) both raised rates by 0.50%.
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 banking industry turmoil created an additional challenge for central banks in balancing inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. 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 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. ”
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.
Allspring Municipal Bond Fund | 3
Letter to shareholders (unaudited)
Economic data released in April pointed to global resilience, as Purchasing Managers Indexes1 in the U.S., U.K., and eurozone beat expectations and China reported first-quarter annualized economic growth of 4.5%. Despite banking industry stress, developed market stocks had monthly gains. The U.S. labor market remained strong, with a 3.5% jobless rate and monthly payroll gains above 200,000. However, uncertainty and inflationary concerns weighed on investors in the U.S. and abroad.
May was marked by a divergence between expanding activity in services and an overall contraction in manufacturing activity in the U.S., U.K., and eurozone. Core inflation remained elevated in the U.S. and Europe, despite the ongoing efforts of the Fed and ECB, which included rate hikes of 0.25% by both in May. Stubborn inflation and the resilient U.S. labor market led to expectations of further interest rate hikes, overall monthly declines across bond indexes, and mixed results for stocks in May. Investor worries over a U.S. debt ceiling impasse were modest, and market confidence was buoyed by a deal in late May to avert a potential U.S. debt default.
June featured the Fed’s first pause on interest rate hikes since March 2022, when it began its aggressive campaign to rein in inflation. However, core CPI, excluding food and energy prices, while continuing to decline, remained stubbornly high in June, at 4.8%, well above the Fed’s 2.0% target rate. With the U.S. unemployment rate still at 3.6%, near a historical low, and U.S. payrolls growing in June for the 30th consecutive month, expectations of more Fed rate hikes were reinforced. However, U.S. and global stocks had strong returns in June.
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
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.
1
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.
4 | Allspring Municipal Bond Fund
Letter to shareholders (unaudited)
Notice to Shareholders |
Beginning in July 2024, the Fund will be required by the Securities and Exchange Commission to send shareholders a paper copy of a new tailored shareholder report in place of the full shareholder report that you are now receiving. The tailored shareholder report will contain concise information about the Fund, including certain expense and performance information and fund statistics. If you wish to receive this new tailored shareholder report electronically, please follow the instructions on the back cover of this report. |
Other information that is currently included in the shareholder report, such as the Fund’s financial statements, will be available online and upon request, free of charge, in paper or electronic format. |
Allspring Municipal Bond Fund | 5
Performance highlights (unaudited)
Performance highlights
Investment objective | The Fund seeks current income exempt from federal income tax. |
Manager | Allspring Funds Management, LLC |
Subadviser | Allspring Global Investments, LLC |
Portfolio manager | Terry J. Goode, Robert J. Miller, Nicholos Venditti |
Average annual total returns (%) as of June 30, 2023 | |||||||||
Including sales charge | Excluding sales charge | Expense ratios1 (%) | |||||||
Inception date | 1 year | 5 year | 10 year | 1 year | 5 year | 10 year | Gross | Net2 | |
Class A (WMFAX) | 4-8-2005 | -1.80 | 0.58 | 2.34 | 2.85 | 1.50 | 2.81 | 0.77 | 0.75 |
Class C (WMFCX) | 4-8-2005 | 1.08 | 0.74 | 2.20 | 2.08 | 0.74 | 2.20 | 1.52 | 1.50 |
Class R6 (WMBRX)3 | 7-31-2018 | – | – | – | 3.23 | 1.87 | 3.14 | 0.39 | 0.39 |
Administrator Class (WMFDX) | 4-8-2005 | – | – | – | 3.11 | 1.67 | 2.97 | 0.71 | 0.60 |
Institutional Class (WMBIX) | 3-31-2008 | – | – | – | 3.18 | 1.82 | 3.12 | 0.44 | 0.44 |
Bloomberg Municipal Bond Index4 | – | – | – | – | 3.19 | 1.84 | 2.68 | – | – |
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 October 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.75% for Class A, 1.50% for Class C, 0.40% for Class R6, 0.60% for Administrator Class and 0.45% 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 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. |
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. 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 municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.
6 | Allspring Municipal Bond Fund
Performance highlights (unaudited)
Growth of $10,000 investment as of June 30, 20231 |
1 | The chart compares the performance of Class A shares for the most recent ten years with the Bloomberg Municipal Bond Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%. |
Allspring Municipal Bond Fund | 7
Performance highlights (unaudited)
MANAGER’S DISCUSSION
Fund highlights
•The Fund (Class A, excluding sales charges) underperformed its benchmark, the Bloomberg Municipal Bond Index, for the 12-month period that ended June 30, 2023. Duration, yield-curve positioning, and credit were the main drivers of performance while sector was neutral and selection was a modest detractor.
•We were overweight A-rated bonds, which outperformed the overall market, and underweight AA-rated and AAA-rated bonds, which underperformed the market. This positioning offset an overweight to BBB-rated bonds, which also trailed the market.
•Curve positioning was a modest contributor. We were overweight to 17+ year bonds, which outperformed, and underweight inside of the 8-year segment, which underperformed. However, a slight underweight to 8-year to 12-year bonds detracted as bonds in that range outperformed.
•We tactically added to duration during the period, from short to the benchmark during the first half to neutral in the first quarter of 2023 to modestly long at period-end.
•Sector allocation was modestly positive while selection was neutral.
Global economies increase lending rates in hopes of taming runaway inflation.
Entering 2022, the excitement of a post-pandemic world gave way to new whispers and fears of higher prices and broad-based inflation caused by supply chain bottlenecks, increased housing costs, wage increases, and employment market distortions. Those fears quickly became reality and prices began to rise at a historic rate. The U.S. Federal Open Market Committee acted quickly and with purpose: ending open market purchases, reducing its balance sheet, and raising the benchmark overnight lending rate at each monthly meeting through 2022 and early 2023. Fixed income and equity markets fell sharply but began to recover as annual inflation numbers peaked in June and began to recede.
The U.S. unemployment rate, which reached a multigenerational high of more than 14% in the spring of 2020, fell throughout the past year and has settled below 4%. Employers continue to add new jobs, especially in service-oriented industries, and the resulting wage increases have further contributed to inflationary pressures. After the U.S. gross domestic product (GDP) turned negative in the first and second quarters of 2022, it expanded at rates above 2% in each subsequent quarter. The federal funds rate, which began 2022 at 0.25% to 0.50%, was raised 10 consecutive times before a pause in June 2023. It now sits at 5.25% to 5.50% as the Federal Reserve (Fed) attempts to curb inflation. In this environment, some form of recession seems imminent.
In the wake of continued rate increases, U.S. fixed income yields rose dramatically as investors reacted to Fed actions, with the yield on the 10-year Treasury ending the period near 4%. Rising Treasury yields affected all fixed income sectors in 2022, with all seeing their worst returns in more than 40 years. The U.S. Treasury yield curve remained substantially inverted throughout the period, which has driven many investors into shorter-term interest-bearing vehicles, including money markets.
Municipals sold off drastically to start the period but began to rebound in the fourth quarter of 2022. The Bloomberg Municipal Bond Index fell nearly 8% and the broader municipal market had more than $124 billion in outflows before stabilizing early in 2023. For the first time in history, the municipal yield curve also inverted but not to the degree seen in Treasuries.
Credit quality as of June 30, 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. |
8 | Allspring Municipal Bond Fund
Performance highlights (unaudited)
While this environment has certainly been painful for municipal investors, the drawdown has created significantly improved opportunities and entry points. Municipal to Treasury ratios ended the period elevated but at far better levels than in 2021. Municipal credit spreads have widened substantially while the underlying fundamental credit of municipalities remains strong, following trillions of dollars in government stimulus. We believe investors will continue to return to the municipal market in the latter half of 2023, attracted by increased yields, positive fundamental strength, and good relative value.
Market volatility was the norm during the period.
Coming into the fiscal year, municipal bonds had experienced their worst six-month period on record, down 8.98% through June 30, 2022. The strong technicals that had driven the market to record-low yields had evaporated and unwound with negative fund flows across the industry accelerating. According to the Bloomberg AAA scale, the 10-year municipal bond yield increased from 0.94% on December 31, 2021, to 2.60% on June 30, 2022, an increase of 166 basis points (bps; 100 bps equal 1.00%). As the period began in July 2022, negative fund flows continued, but the market began to stabilize. Price returns were still negative for the first half of the period, but income was sufficient to more than offset the declines, resulting in a modestly positive total return of 0.50%. The market continued to improve in the second half as the Bloomberg Municipal Bond Index returned 2.67% over this period. Over the entire period, the municipal market had a total return of 3.19%, pretty much on par with corporates, U.S. Treasuries, and the Bloomberg U.S. Aggregate Bond Index.* Adjusted for taxes, municipal bonds outperformed these fixed income alternatives by a wide margin.
Duration positioning, yield curve, and credit allocation contributed to performance with selection a modest detractor.
We tactically moved duration during the period as we refined our outlook. This active duration management contributed to relative performance. We began the period short duration to the benchmark in anticipation of higher rates. This worked well as the Fed aggressively raised rates in an effort to tame inflation. Around mid-September, after the market had sold off aggressively for most of the year, municipal bonds had cheapened to a level we felt represented a compelling value and we began extending duration closer to neutral. We remained close to neutral through March and extended to about 105% of the benchmark by the end of the period in anticipation of strong summer seasonals and believing that most rate increases are behind us.
Our curve positioning also contributed to performance. Overall, our underweight to shorter-dated bonds and overweight to bonds 15 years and longer was positive as shorter bonds underperformed and longer-dated bonds outperformed. We began the period underweight to longer-dated bonds, which was positive in the first half as longer-dated bonds underperformed by a wide margin. As we extended duration, we did so with longer-dated bonds (primarily the 20- to 25-year part of the curve),
going from an underweight in the first half of the period to an overweight in the second half, which was positive as longer-dated bonds outperformed during the second half.
Within yield curve positioning, we were slightly overweight bonds in the 8-year to 12-year space. This position detracted from relative performance as that portion of the yield curve outperformed the broader index.
Effective maturity distribution as of June 30, 20231 |
1 | Figures represent the percentage of the Fund’s long-term investments. These amounts are subject to change and may have changed since the date specified. |
Credit allocation contributed to performance. We were overweight A-rated bonds, which performed well, and underweight AA-rated and AAA-rated bonds, which performed poorly. This positioning offset an overweight to BBB-rated bonds, which also trailed the market. As we extended duration, we focused on buying higher-quality bonds (those rated A or above), which improved the portfolio’s overall credit quality. We believe this is prudent: Although credit spreads have widened, we don’t believe they represent good value at current levels, and we expect them to widen further if the economy slows or we enter a recession. Simply stated, we believe there will be a better entry point for lower investment-grade bonds and possibly high yield after the rate increases have more time to play out.
Our sector allocation was a modest contributor to performance. We were underweight state and local general obligation (GO) bonds, electric revenue bonds, and housing bonds, which was positive as these sectors underperformed. Overweights to the hospital, transportation, education, water and sewer, and special tax sectors were positive as these sectors had strong performance. An overweight to industrial development revenue/pollution control revenue bonds detracted as this sector had sub-par performance. Underweights to New York, New Jersey, and California detracted but were largely offset by overweights to Illinois and Pennsylvania. Overweights to higher-coupon bonds also contributed to performance.
*
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.
Allspring Municipal Bond Fund | 9
Performance highlights (unaudited)
The outlook remains favorable for active bond management, in our view.
Fundamental credit factors remain strong in the municipal bond market as municipal credit is the strongest it has been in decades. We believe the Fed will continue its monetary tightening policy well into the second half of calendar-year 2023 to combat higher-than-average inflation and we are looking for signs of a slowing national economy. These actions should only have a modest effect on municipal credit quality and that, coupled with a weak technical market, makes municipal bonds attractive for buying
lower-investment-grade bonds in the revenue and local GO sectors at attractive spreads relative to the past decade. We believe the Fed will reach its terminal rate in the second half of 2023, and with its view of higher rates for longer in 2024, there will be opportune times to invest.
We believe the outlook for bond selection remains favorable. Increased dispersion within rating tiers and sectors offers the opportunity for differentiation among credits. As the period ended, primary and secondary market opportunities were favorable due to cheaper valuations relative to U.S. Treasuries and wider credit spreads.
10 | Allspring Municipal Bond Fund
Fund expenses (unaudited)
Fund expenses
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 January 1, 2023 to June 30, 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 1-1-2023 | Ending account value 6-30-2023 | Expenses paid during the period1 | Annualized net expense ratio | |
Class A | ||||
Actual | $1,000.00 | $1,026.77 | $3.77 | 0.75 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.08 | $3.76 | 0.75 % |
Class C | ||||
Actual | $1,000.00 | $1,022.96 | $7.52 | 1.50 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.36 | $7.50 | 1.50 % |
Class R6 | ||||
Actual | $1,000.00 | $1,028.63 | $1.91 | 0.38 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.91 | $1.91 | 0.38 % |
Administrator Class | ||||
Actual | $1,000.00 | $1,027.52 | $3.02 | 0.60 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.82 | $3.01 | 0.60 % |
Institutional Class | ||||
Actual | $1,000.00 | $1,028.38 | $2.16 | 0.43 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.66 | $2.16 | 0.43 % |
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 181 divided by 365 (to reflect the one-half-year period). |
Allspring Municipal Bond Fund | 11
Portfolio of investments—June 30, 2023
Portfolio of investments
Principal | Value | |||||
Closed-end fund obligations: 0.66% | ||||||
California: 0.50% | ||||||
Nuveen California AMT-Free Quality Municipal Income Fund Preferred Shares Series A (320 shares) 4.63%144Aø | $ | 32,000,000 | $32,000,000 | |||
New York: 0.16% | ||||||
Nuveen New York AMT-Free Quality Municipal Income Fund (100 shares) 4.63%144Aø | 10,000,000 | 10,000,000 | ||||
Total closed-end fund obligations (Cost $42,000,000) | 42,000,000 | |||||
Interest rate | Maturity date | |||||
Municipal obligations: 99.34% | ||||||
Alabama: 2.67% | ||||||
Airport revenue: 0.07% | ||||||
Birmingham Airport Authority (BAM Insured) | 4.00 % | 7-1-2036 | 500,000 | 511,415 | ||
Birmingham Airport Authority (BAM Insured) | 4.00 | 7-1-2037 | 500,000 | 507,489 | ||
Birmingham Airport Authority (BAM Insured) | 4.00 | 7-1-2038 | 400,000 | 401,787 | ||
Birmingham Airport Authority (BAM Insured) | 5.00 | 7-1-2029 | 750,000 | 833,319 | ||
Birmingham Airport Authority (BAM Insured) | 5.00 | 7-1-2030 | 500,000 | 564,423 | ||
Birmingham Airport Authority (BAM Insured) | 5.00 | 7-1-2032 | 600,000 | 675,178 | ||
Birmingham Airport Authority (BAM Insured) | 5.00 | 7-1-2033 | 650,000 | 730,734 | ||
4,224,345 | ||||||
Education revenue: 0.08% | ||||||
Jacksonville Public Educational Building Authority Jacksonville State University Series A (AGM Insured) | 5.25 | 8-1-2048 | 4,500,000 | 4,903,518 | ||
Health revenue: 0.57% | ||||||
Alabama Special Care Facilities Financing Authority-Birmingham Ascension Health Credit Group Series B | 5.00 | 11-15-2046 | 11,000,000 | 11,181,228 | ||
Health Care Authority for Baptist Health Series A | 5.00 | 11-15-2031 | 11,970,000 | 13,244,431 | ||
Health Care Authority for Baptist Health Series Bø | 5.30 | 11-1-2042 | 10,000,000 | 10,000,000 | ||
UAB Medicine Finance Authority UAB Medicine Obligated Group Series B | 5.00 | 9-1-2034 | 1,000,000 | 1,091,956 | ||
UAB Medicine Finance Authority UAB Medicine Obligated Group Series B | 5.00 | 9-1-2035 | 1,000,000 | 1,083,482 | ||
36,601,097 | ||||||
Housing revenue: 0.12% | ||||||
Huntsville Public Building Authority City of Huntsville | 5.00 | 2-1-2052 | 7,000,000 | 7,437,650 | ||
Utilities revenue: 1.73% | ||||||
Black Belt Energy Gas District (Royal Bank of Canada LIQ)øø | 4.00 | 6-1-2051 | 5,500,000 | 5,433,669 | ||
Black Belt Energy Gas District Series Cøø | 5.25 | 2-1-2053 | 23,000,000 | 24,076,828 | ||
Lower Alabama Gas Districtøø | 4.00 | 12-1-2050 | 20,590,000 | 20,470,922 | ||
Southeast Alabama Gas Supply District Project No. 2 Series Aøø | 4.00 | 6-1-2049 | 28,850,000 | 28,794,144 | ||
Southeast Energy Authority A Cooperative District Project No. 1 Series Aøø | 4.00 | 11-1-2051 | 2,465,000 | 2,433,793 | ||
The accompanying notes are an integral part of these consolidated financial statements.
12 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue (continued) | ||||||
Southeast Energy Authority A Cooperative District Project No. 2 Series Bøø | 4.00 % | 12-1-2051 | $ | 3,000,000 | $2,916,110 | |
Southeast Energy Authority A Cooperative District Project No. 5 Series Aøø | 5.25 | 1-1-2054 | 25,000,000 | 26,139,888 | ||
110,265,354 | ||||||
Water & sewer revenue: 0.10% | ||||||
County of Jefferson Sewer Revenue Series B CAB (AGM Insured)¤ | 0.00 | 10-1-2025 | 710,000 | 632,415 | ||
County of Jefferson Sewer Revenue Series B CAB (AGM Insured)¤ | 0.00 | 10-1-2026 | 3,000,000 | 2,540,558 | ||
County of Jefferson Sewer Revenue Series B CAB (AGM Insured)¤ | 0.00 | 10-1-2029 | 4,115,000 | 2,950,922 | ||
6,123,895 | ||||||
169,555,859 | ||||||
Alaska: 0.03% | ||||||
Health revenue: 0.03% | ||||||
Alaska Industrial Development & Export Authority Dena’ Nena’ Henash Series A | 5.00 | 10-1-2033 | 1,930,000 | 2,075,494 | ||
Arizona: 1.33% | ||||||
Education revenue: 0.22% | ||||||
IDA of the City of Phoenix Arizona Legacy Traditional School Obligated Group Series A144A | 6.50 | 7-1-2034 | 2,000,000 | 2,039,030 | ||
IDA of the County of Pima American Leadership Academy, Inc. Series 2022144A | 4.00 | 6-15-2029 | 2,905,000 | 2,796,154 | ||
IDA of the County of Pima American Leadership Academy, Inc. Series 2022144A | 4.00 | 6-15-2041 | 3,195,000 | 2,613,017 | ||
IDA of the County of Pima Noah Webster Schools-Mesa Series A | 7.00 | 12-15-2043 | 3,225,000 | 3,256,893 | ||
La Paz County IDA Imagine Desert West Middle, Inc. Series A144A | 5.75 | 6-15-2038 | 1,085,000 | 1,036,807 | ||
La Paz County IDA Imagine Desert West Middle, Inc. Series A144A | 5.88 | 6-15-2048 | 2,435,000 | 2,245,421 | ||
Tender Option Bond Trust Receipts/Certificates Series 2020- XF2862 (Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ)144Aø | 4.41 | 12-15-2047 | 150,000 | 150,000 | ||
14,137,322 | ||||||
GO revenue: 0.06% | ||||||
Maricopa County Special Health Care District Series D | 4.00 | 7-1-2035 | 3,500,000 | 3,628,492 | ||
Health revenue: 0.32% | ||||||
Arizona Health Facilities Authority Banner Health Obligated Group Series A | 5.00 | 1-1-2044 | 5,000,000 | 5,042,500 | ||
Maricopa County IDA Banner Health Obligated Group Series A | 4.00 | 1-1-2041 | 15,750,000 | 15,469,459 | ||
20,511,959 | ||||||
Industrial development revenue: 0.07% | ||||||
Maricopa County IDA Commercial Metals Co. AMT144A | 4.00 | 10-15-2047 | 4,000,000 | 3,425,880 | ||
Maricopa County Pollution Control Corp. Southern California Edison Co. Series A | 2.40 | 6-1-2035 | 1,000,000 | 787,448 | ||
4,213,328 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 13
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue: 0.63% | ||||||
City of Phoenix Civic Improvement Corp. Series D | 4.00 % | 7-1-2040 | $ | 3,000,000 | $2,957,294 | |
City of Phoenix Civic Improvement Corp. Airport Revenue Series B AMT | 5.00 | 7-1-2044 | 5,570,000 | 5,801,700 | ||
City of Phoenix Civic Improvement Corp. Excise Tax Revenue Series A | 5.00 | 7-1-2034 | 13,875,000 | 14,346,821 | ||
City of Phoenix Civic Improvement Corp. Water System Revenue | 5.00 | 7-1-2034 | 8,805,000 | 9,281,371 | ||
Navajo Nation Series A144A | 5.50 | 12-1-2030 | 7,275,000 | 7,510,930 | ||
39,898,116 | ||||||
Water & sewer revenue: 0.03% | ||||||
City of Mesa Utility System Revenue | 4.00 | 7-1-2042 | 1,000,000 | 1,005,198 | ||
City of Mesa Utility System Revenue | 4.00 | 7-1-2043 | 1,000,000 | 1,004,785 | ||
2,009,983 | ||||||
84,399,200 | ||||||
Arkansas: 0.04% | ||||||
Miscellaneous revenue: 0.04% | ||||||
Arkansas Development Finance Authority Public Safety Charges Revenue | 4.00 | 6-1-2038 | 1,170,000 | 1,159,800 | ||
Arkansas Development Finance Authority Public Safety Charges Revenue | 4.00 | 6-1-2039 | 1,000,000 | 994,848 | ||
Arkansas Development Finance Authority Public Safety Charges Revenue | 4.00 | 6-1-2040 | 500,000 | 498,008 | ||
2,652,656 | ||||||
California: 5.03% | ||||||
Airport revenue: 1.30% | ||||||
City of Los Angeles Department of Airports Series A AMT | 5.00 | 5-15-2034 | 1,465,000 | 1,561,228 | ||
City of Los Angeles Department of Airports Series A AMT | 5.00 | 5-15-2046 | 7,000,000 | 7,338,299 | ||
City of Los Angeles Department of Airports Series A AMT | 5.25 | 5-15-2041 | 2,500,000 | 2,743,027 | ||
City of Los Angeles Department of Airports Series A AMT | 5.25 | 5-15-2042 | 2,000,000 | 2,185,363 | ||
City of Los Angeles Department of Airports Series A AMT | 5.25 | 5-15-2048 | 18,000,000 | 18,842,006 | ||
City of Los Angeles Department of Airports Series B AMT | 5.00 | 5-15-2034 | 1,750,000 | 1,815,622 | ||
City of Los Angeles Department of Airports Series G AMT | 5.25 | 5-15-2047 | 3,000,000 | 3,210,408 | ||
City of Los Angeles Department of Airports Series H AMT | 5.50 | 5-15-2047 | 5,000,000 | 5,474,719 | ||
Port of Oakland Series H AMT | 5.00 | 5-1-2026 | 2,500,000 | 2,583,212 | ||
Port of Oakland Series H AMT | 5.00 | 5-1-2029 | 1,875,000 | 2,020,704 | ||
San Francisco City & County Airport Commission San Francisco International Airport Series A AMT | 4.00 | 5-1-2052 | 1,500,000 | 1,403,339 | ||
San Francisco City & County Airport Commission San Francisco International Airport Series A AMT | 5.00 | 5-1-2052 | 3,000,000 | 3,142,275 | ||
San Francisco City & County Airport Commission San Francisco International Airport Series B AMT | 5.00 | 5-1-2046 | 30,000,000 | 30,408,156 | ||
82,728,358 | ||||||
Education revenue: 0.13% | ||||||
California Municipal Finance Authority Albert Einstein Academy Charter School/Charter Middle School Series A | 7.13 | 8-1-2043 | 2,230,000 | 2,236,098 | ||
The accompanying notes are an integral part of these consolidated financial statements.
14 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
California School Finance Authority Aspire Public Schools Obligated Group Series A144A | 5.00 % | 8-1-2042 | $ | 1,000,000 | $1,004,969 | |
University of California Series K | 4.00 | 5-15-2046 | 5,075,000 | 5,060,280 | ||
8,301,347 | ||||||
GO revenue: 0.83% | ||||||
Alhambra Unified School District Series B (AGC Insured)¤ | 0.00 | 8-1-2031 | 7,500,000 | 5,783,881 | ||
Alhambra Unified School District Series B (AGM Insured)¤ | 0.00 | 8-1-2031 | 2,175,000 | 1,677,325 | ||
Alhambra Unified School District Series B (AGM Insured)¤ | 0.00 | 8-1-2032 | 3,795,000 | 2,810,396 | ||
Alhambra Unified School District Series B (AGM Insured)¤ | 0.00 | 8-1-2034 | 5,000,000 | 3,414,933 | ||
Alhambra Unified School District Series B (AGM Insured)¤ | 0.00 | 8-1-2035 | 6,700,000 | 4,336,644 | ||
Colton Joint Unified School District Series B (AGM Insured)¤ | 0.00 | 8-1-2031 | 1,000,000 | 754,233 | ||
Colton Joint Unified School District Series B (AGM Insured)¤ | 0.00 | 8-1-2032 | 1,000,000 | 724,225 | ||
Colton Joint Unified School District Series B (AGM Insured)¤ | 0.00 | 8-1-2033 | 1,000,000 | 696,161 | ||
Compton Community College District Series C CAB¤ | 0.00 | 8-1-2032 | 2,515,000 | 1,808,488 | ||
Compton Community College District Series C CAB¤ | 0.00 | 8-1-2033 | 2,000,000 | 1,381,348 | ||
El Monte Union High School District CAB (AGM Insured)¤ | 0.00 | 6-1-2030 | 2,000,000 | 1,604,597 | ||
El Monte Union High School District CAB (AGM Insured)¤ | 0.00 | 6-1-2031 | 2,000,000 | 1,545,170 | ||
El Monte Union High School District CAB (AGM Insured)¤ | 0.00 | 6-1-2032 | 1,660,000 | 1,231,132 | ||
El Monte Union High School District CAB (AGM Insured)¤ | 0.00 | 6-1-2033 | 1,230,000 | 875,843 | ||
Los Angeles Unified School District Series RYQ | 4.00 | 7-1-2044 | 11,000,000 | 10,890,140 | ||
Ontario Montclair School District (AGC Insured)¤ | 0.00 | 8-1-2028 | 1,500,000 | 1,267,520 | ||
Ontario Montclair School District (AGC Insured)¤ | 0.00 | 8-1-2030 | 2,000,000 | 1,571,678 | ||
San Diego Unified School District Series C¤ | 0.00 | 7-1-2031 | 2,000,000 | 1,549,914 | ||
San Diego Unified School District Series C¤ | 0.00 | 7-1-2033 | 1,000,000 | 715,222 | ||
San Diego Unified School District Series C¤ | 0.00 | 7-1-2034 | 2,000,000 | 1,374,909 | ||
Whittier City School District Series C | 5.25 | 8-1-2046 | 4,850,000 | 5,169,582 | ||
Wiseburn School District Series B (AGM Insured)¤ | 0.00 | 8-1-2034 | 2,530,000 | 1,681,574 | ||
52,864,915 | ||||||
Health revenue: 0.88% | ||||||
California HFFA Kaiser Foundation Hospitals Series A-2 | 4.00 | 11-1-2044 | 10,000,000 | 9,848,642 | ||
California HFFA Stanford Health Care Obligated Group Series A | 4.00 | 8-15-2050 | 13,450,000 | 13,200,278 | ||
California HFFA Sutter Health Obligated Group Series A | 5.00 | 11-15-2048 | 3,000,000 | 3,108,232 | ||
California PFA Kendal at Sonoma Obligated Group Series B-3144A | 2.13 | 11-15-2027 | 4,000,000 | 3,854,676 | ||
California Statewide CDA CommonSpirit Health Obligated Group Series E (AGM Insured)€øø | 4.80 | 7-1-2040 | 13,775,000 | 13,775,000 | ||
California Statewide Communities Development Authority Scripps Health Obligated Group Series A (U.S. Bank N.A. LOC)ø | 2.60 | 8-1-2035 | 695,000 | 695,000 | ||
Regents of the University of California Medical Center Pooled Revenue Series L | 4.00 | 5-15-2037 | 7,525,000 | 7,547,250 | ||
Regents of the University of California Medical Center Pooled Revenue Series L | 5.00 | 5-15-2047 | 3,885,000 | 4,026,737 | ||
56,055,815 | ||||||
Housing revenue: 0.37% | ||||||
California Community Housing Agency California Community Housing Agency Serenity at Larkspur Apartments Series A144A | 5.00 | 2-1-2050 | 1,000,000 | 823,315 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 15
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
California Housing Finance Agency Series 2 | 4.00 % | 3-20-2033 | $ | 3,067,234 | $3,012,017 | |
California Statewide Communities Development Authority Community Improvement Authority Pasadena Portfolio Series B144A | 4.00 | 12-1-2056 | 1,500,000 | 1,062,713 | ||
Ontario PFA Series A (AGM Insured) | 5.00 | 11-1-2047 | 2,750,000 | 3,026,379 | ||
Pasadena PFA Series A¤ | 0.00 | 3-1-2027 | 2,095,000 | 1,841,163 | ||
Pasadena PFA Series A¤ | 0.00 | 3-1-2028 | 4,450,000 | 3,778,089 | ||
Pasadena PFA Series A¤ | 0.00 | 3-1-2029 | 4,520,000 | 3,706,180 | ||
Pasadena PFA Series A¤ | 0.00 | 3-1-2031 | 2,185,000 | 1,663,815 | ||
Pasadena PFA Series A¤ | 0.00 | 3-1-2032 | 2,000,000 | 1,461,069 | ||
Pasadena PFA Series A¤ | 0.00 | 3-1-2033 | 4,295,000 | 3,008,892 | ||
23,383,632 | ||||||
Industrial development revenue: 0.07% | ||||||
California Infrastructure & Economic Development Bank DesertXpress Enterprises LLC Series A AMT144Aøø | 3.65 | 1-1-2050 | 4,250,000 | 4,232,021 | ||
Miscellaneous revenue: 0.15% | ||||||
Hayward Unified School District COP | 5.25 | 8-1-2047 | 5,000,000 | 5,203,208 | ||
Mesa Water District COP | 4.00 | 3-15-2039 | 500,000 | 509,806 | ||
Mesa Water District COP | 4.00 | 3-15-2040 | 500,000 | 506,511 | ||
Mesa Water District COP | 4.00 | 3-15-2045 | 1,200,000 | 1,197,917 | ||
Pittsburg PFA Water Revenue Series A (AGM Insured) | 4.13 | 8-1-2047 | 2,000,000 | 1,963,855 | ||
9,381,297 | ||||||
Tax revenue: 0.01% | ||||||
San Diego County Regional Transportation Commission Series A | 5.00 | 4-1-2048 | 915,000 | 952,514 | ||
Tobacco revenue: 0.03% | ||||||
California County Tobacco Securitization Agency Series A | 4.00 | 6-1-2039 | 500,000 | 493,609 | ||
California County Tobacco Securitization Agency Series A | 4.00 | 6-1-2040 | 300,000 | 294,562 | ||
California County Tobacco Securitization Agency Series A | 4.00 | 6-1-2049 | 1,200,000 | 1,108,725 | ||
1,896,896 | ||||||
Transportation revenue: 0.51% | ||||||
Bay Area Toll Authority Series A (SIFMA Municipal Swap+1.25%)± | 5.26 | 4-1-2036 | 23,545,000 | 23,681,048 | ||
Foothill-Eastern Transportation Corridor Agency Series C | 4.00 | 1-15-2043 | 8,500,000 | 8,397,409 | ||
32,078,457 | ||||||
Utilities revenue: 0.75% | ||||||
California Community Choice Financing Authority Series B-1øø | 4.00 | 2-1-2052 | 2,360,000 | 2,344,467 | ||
California Community Choice Financing Authority Clean Energy Project Green Bond Series B-1øø | 5.00 | 7-1-2053 | 10,000,000 | 10,506,608 | ||
California Community Choice Financing Authority Clean Energy Project Green Bond Series Cøø | 5.25 | 1-1-2054 | 15,000,000 | 15,691,482 | ||
City of Vernon Electric System Revenue Series 2022-A | 5.00 | 8-1-2039 | 450,000 | 468,082 | ||
City of Vernon Electric System Revenue Series 2022-A | 5.00 | 8-1-2040 | 375,000 | 389,188 | ||
City of Vernon Electric System Revenue Series 2022-A | 5.00 | 8-1-2041 | 420,000 | 435,356 | ||
City of Victorville Electric Revenue Series A | 5.00 | 5-1-2036 | 1,210,000 | 1,365,695 | ||
The accompanying notes are an integral part of these consolidated financial statements.
16 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue (continued) | ||||||
City of Victorville Electric Revenue Series A | 5.00 % | 5-1-2037 | $ | 1,005,000 | $1,119,880 | |
M-S-R Energy Authority Series B | 6.13 | 11-1-2029 | 14,180,000 | 15,215,577 | ||
47,536,335 | ||||||
319,411,587 | ||||||
Colorado: 4.39% | ||||||
Airport revenue: 0.63% | ||||||
City & County of Denver Airport System Revenue Series A AMT | 5.00 | 12-1-2027 | 10,000,000 | 10,591,137 | ||
City & County of Denver Airport System Revenue Series A AMT | 5.00 | 12-1-2034 | 21,855,000 | 24,071,709 | ||
City & County of Denver Airport System Revenue Series A AMT | 5.00 | 12-1-2037 | 3,130,000 | 3,275,367 | ||
City & County of Denver Airport System Revenue Series B | 5.25 | 11-15-2053 | 2,000,000 | 2,201,723 | ||
40,139,936 | ||||||
Education revenue: 0.56% | ||||||
Board of Governors of Colorado State University System Series E-1 | 5.00 | 3-1-2040 | 2,000,000 | 2,056,790 | ||
Colorado ECFA Alexander Dawson School LLC | 5.00 | 2-15-2040 | 1,000,000 | 1,000,658 | ||
Colorado ECFA Aspen Ridge Preparatory School, Inc.144A | 4.13 | 7-1-2026 | 250,000 | 244,469 | ||
Colorado ECFA Banning Lewis Ranch Academy Building Co. LLC | 6.00 | 12-15-2037 | 2,965,000 | 3,071,764 | ||
Colorado ECFA Banning Lewis Ranch Academy Building Co. LLC Series B-2 | 7.00 | 12-15-2046 | 3,940,000 | 4,219,739 | ||
Colorado ECFA Ben Franklin Academy | 5.00 | 7-1-2036 | 750,000 | 764,814 | ||
Colorado ECFA Community Leadership Academy, Inc. | 7.00 | 8-1-2033 | 1,015,000 | 1,016,781 | ||
Colorado ECFA DCS Montessori Charter School | 5.00 | 7-15-2037 | 1,150,000 | 1,151,217 | ||
Colorado ECFA New Summit Academy Series A144A | 4.00 | 7-1-2051 | 715,000 | 535,494 | ||
Colorado ECFA Prospect Ridge Academy Series A | 5.00 | 3-15-2035 | 2,000,000 | 2,141,490 | ||
Colorado ECFA Rocky Mountain Classical Academy Series A | 7.50 | 9-1-2033 | 5,015,000 | 5,046,005 | ||
Colorado ECFA Rocky Mountain Classical Academy Series A | 8.00 | 9-1-2043 | 5,930,000 | 5,970,721 | ||
Colorado ECFA Rocky Mountain Classical Academy Series A | 8.13 | 9-1-2048 | 3,795,000 | 3,821,785 | ||
Colorado ECFA Twin Peaks Charter Academy Series A | 6.50 | 3-15-2043 | 1,290,000 | 1,291,569 | ||
Colorado ECFA Union Colony Schools | 5.00 | 4-1-2048 | 715,000 | 724,053 | ||
Colorado ECFA University Laboratory School144A | 5.00 | 12-15-2028 | 600,000 | 614,756 | ||
Colorado School of Mines Series A (AGM Insured) | 5.25 | 12-1-2047 | 1,730,000 | 1,884,755 | ||
35,556,860 | ||||||
GO revenue: 0.39% | ||||||
Broadway Station Metropolitan District No. 3 Series A | 5.00 | 12-1-2049 | 1,250,000 | 973,076 | ||
Colorado International Center Metropolitan District No. 3 | 4.63 | 12-1-2031 | 500,000 | 473,388 | ||
Cornerstar Metropolitan District Series A | 5.25 | 12-1-2047 | 1,000,000 | 956,113 | ||
Grand River Hospital District (AGM Insured) | 5.25 | 12-1-2035 | 1,750,000 | 1,859,461 | ||
Park 70 Metropolitan District | 5.00 | 12-1-2046 | 1,000,000 | 1,006,512 | ||
Thompson Crossing Metropolitan District No. 4 | 5.00 | 12-1-2049 | 2,125,000 | 1,867,971 | ||
Weld County School District No. RE-4 | 5.25 | 12-1-2047 | 13,000,000 | 14,594,473 | ||
Wheatlands Metropolitan District (BAM Insured) | 5.00 | 12-1-2030 | 650,000 | 672,703 | ||
Wiggins School District No. RE-50J Adams Morgan & Weld Counties (BAM Insured) | 4.00 | 12-1-2046 | 2,335,000 | 2,311,825 | ||
24,715,522 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 17
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue: 0.19% | ||||||
Aspen Valley Hospital District | 5.00 % | 10-15-2033 | $ | 600,000 | $600,201 | |
Colorado Health Facilities Authority AdventHealth Obligated Group Series A | 4.00 | 11-15-2043 | 3,500,000 | 3,432,762 | ||
Colorado Health Facilities Authority Christian Living Neighborhoods Obligated Group | 4.00 | 1-1-2042 | 1,000,000 | 732,381 | ||
Colorado Health Facilities Authority CommonSpirit Health Obligated Group Series A-2 | 5.00 | 8-1-2044 | 4,000,000 | 4,129,362 | ||
Colorado Health Facilities Authority Evangelical Lutheran Good Samaritan Obligated Group Series A | 5.00 | 6-1-2040 | 1,000,000 | 1,035,685 | ||
Colorado Health Facilities Authority Intermountain Healthcare Obligated Group Series A | 5.50 | 1-1-2035 | 1,000,000 | 1,010,662 | ||
Colorado Health Facilities Authority Parkview Medical Center, Inc. Obligated Group Series A | 4.00 | 9-1-2045 | 500,000 | 452,642 | ||
Colorado Health Facilities Authority Sunny Vista Living Center Obligated Group Series A144A | 5.00 | 12-1-2025 | 460,000 | 420,814 | ||
Denver Health & Hospital Authority Series A144A | 5.00 | 12-1-2034 | 500,000 | 521,926 | ||
12,336,435 | ||||||
Miscellaneous revenue: 1.20% | ||||||
City of Longmont COP Series A | 5.00 | 12-1-2034 | 1,000,000 | 1,007,200 | ||
City of Westminster COP Series A | 5.00 | 12-1-2035 | 2,000,000 | 2,069,387 | ||
Colorado Bridge Enterprise Colorado High Performance Transportation Enterprise AMT | 4.00 | 12-31-2029 | 2,705,000 | 2,732,237 | ||
Colorado Bridge Enterprise Colorado High Performance Transportation Enterprise AMT | 4.00 | 6-30-2030 | 3,115,000 | 3,141,400 | ||
Colorado Bridge Enterprise Colorado High Performance Transportation Enterprise AMT | 4.00 | 6-30-2031 | 665,000 | 670,635 | ||
Denver City & County School District No. 1 COP Series B | 5.00 | 12-15-2035 | 1,000,000 | 1,035,377 | ||
Denver City & County School District No. 1 COP Series B | 5.00 | 12-15-2045 | 1,200,000 | 1,229,426 | ||
E-470 Public Highway Authority Series A (NPFGC Insured)¤ | 0.00 | 9-1-2034 | 4,000,000 | 2,621,348 | ||
Park Creek Metropolitan District Park Creek Metropolitan District Westerly Creek District Service Area Series A | 5.00 | 12-1-2045 | 500,000 | 502,533 | ||
State of Colorado COP | 6.00 | 12-15-2039 | 4,225,000 | 5,073,321 | ||
State of Colorado COP | 6.00 | 12-15-2041 | 27,500,000 | 32,758,184 | ||
State of Colorado COP Series A | 4.00 | 12-15-2038 | 8,150,000 | 8,307,561 | ||
State of Colorado COP Series A | 4.00 | 12-15-2039 | 3,250,000 | 3,297,828 | ||
State of Colorado COP Series N | 4.00 | 3-15-2043 | 7,900,000 | 7,882,525 | ||
Westminster Public Schools (AGM Insured) | 5.00 | 12-1-2048 | 3,500,000 | 3,714,410 | ||
76,043,372 | ||||||
Tax revenue: 0.95% | ||||||
City & County of Denver Pledged Excise Tax Revenue Series A | 5.00 | 8-1-2044 | 3,000,000 | 3,100,723 | ||
City of Commerce City Sales & Use Tax Revenue (AGM Insured) | 5.00 | 8-1-2044 | 1,250,000 | 1,272,054 | ||
Regional Transportation District Denver Transit Partners LLC Series A | 4.00 | 7-15-2039 | 800,000 | 791,010 | ||
Regional Transportation District Denver Transit Partners LLC Series A | 5.00 | 1-15-2031 | 500,000 | 552,246 | ||
Regional Transportation District Denver Transit Partners LLC Series A | 5.00 | 7-15-2031 | 500,000 | 552,294 | ||
The accompanying notes are an integral part of these consolidated financial statements.
18 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue (continued) | ||||||
Regional Transportation District Sales Tax Revenue Fastracks Project Series A | 5.00 % | 11-1-2041 | $ | 50,945,000 | $52,917,453 | |
Thornton Development Authority East 144th Avenue & I-25 Project Series B | 5.00 | 12-1-2034 | 1,375,000 | 1,397,553 | ||
60,583,333 | ||||||
Transportation revenue: 0.16% | ||||||
Colorado High Performance Transportation Enterprise Plenary Roads Denver LLC AMT | 5.75 | 1-1-2044 | 3,360,000 | 3,359,919 | ||
E-470 Public Highway Authority Series A | 5.00 | 9-1-2034 | 1,300,000 | 1,471,235 | ||
E-470 Public Highway Authority Series A | 5.00 | 9-1-2035 | 1,250,000 | 1,403,813 | ||
E-470 Public Highway Authority Series A | 5.00 | 9-1-2036 | 1,400,000 | 1,555,391 | ||
E-470 Public Highway Authority Series A | 5.00 | 9-1-2040 | 2,000,000 | 2,020,821 | ||
9,811,179 | ||||||
Utilities revenue: 0.26% | ||||||
City of Colorado Springs Utilities System Revenue Series Aø | 3.95 | 11-1-2038 | 625,000 | 625,000 | ||
City of Colorado Springs Utilities System Revenue Series B-2 | 5.00 | 11-15-2038 | 3,000,000 | 3,013,194 | ||
Public Authority for Colorado Energy | 6.50 | 11-15-2038 | 10,495,000 | 12,665,415 | ||
16,303,609 | ||||||
Water & sewer revenue: 0.05% | ||||||
Central Weld County Water District (AGM Insured) | 4.00 | 12-1-2035 | 800,000 | 844,702 | ||
Central Weld County Water District (AGM Insured) | 4.00 | 12-1-2037 | 400,000 | 408,963 | ||
Central Weld County Water District (AGM Insured) | 4.00 | 12-1-2038 | 400,000 | 405,424 | ||
Central Weld County Water District (AGM Insured) | 4.00 | 12-1-2039 | 450,000 | 455,241 | ||
Central Weld County Water District (AGM Insured) | 4.00 | 12-1-2040 | 500,000 | 503,146 | ||
East Cherry Creek Valley Water & Sanitation District | 5.00 | 11-15-2032 | 750,000 | 776,657 | ||
3,394,133 | ||||||
278,884,379 | ||||||
Connecticut: 1.27% | ||||||
Education revenue: 0.34% | ||||||
Connecticut State HEFA Quinnipiac University Series N | 5.00 | 7-1-2048 | 5,000,000 | 5,295,458 | ||
Connecticut State HEFA Trustees of Trinity College Series R | 4.00 | 6-1-2045 | 2,500,000 | 2,304,188 | ||
Connecticut State HEFA Trustees of Trinity College Series R | 5.00 | 6-1-2037 | 950,000 | 1,029,208 | ||
Connecticut State HEFA Trustees of Trinity College Series R | 5.00 | 6-1-2038 | 1,000,000 | 1,076,264 | ||
Connecticut State HEFA Trustees of Trinity College Series R | 5.00 | 6-1-2039 | 1,600,000 | 1,714,976 | ||
Connecticut State HEFA Trustees of Trinity College Series R | 5.00 | 6-1-2040 | 1,100,000 | 1,171,411 | ||
Connecticut State HEFA University of Hartford Series N | 5.00 | 7-1-2031 | 75,000 | 76,123 | ||
Connecticut State HEFA University of Hartford Series N | 5.00 | 7-1-2032 | 550,000 | 556,805 | ||
Connecticut State HEFA University of Hartford Series N | 5.00 | 7-1-2033 | 605,000 | 610,916 | ||
Connecticut State HEFA University of Hartford Series N | 5.00 | 7-1-2034 | 450,000 | 453,237 | ||
Connecticut State Higher Education Supplement Loan Authority Series B AMT | 3.25 | 11-15-2036 | 1,350,000 | 1,193,750 | ||
Connecticut State Higher Education Supplement Loan Authority Series B AMT | 5.00 | 11-15-2027 | 610,000 | 643,359 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 19
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
Connecticut State Higher Education Supplement Loan Authority Series B AMT | 5.00 % | 11-15-2028 | $ | 530,000 | $565,896 | |
Connecticut State Higher Education Supplement Loan Authority Series B AMT | 5.00 | 11-15-2029 | 515,000 | 555,458 | ||
University of Connecticut Series A | 5.00 | 2-15-2039 | 1,510,000 | 1,646,667 | ||
University of Connecticut Series A | 5.00 | 2-15-2040 | 2,500,000 | 2,716,871 | ||
21,610,587 | ||||||
GO revenue: 0.13% | ||||||
City of Bridgeport Series A | 4.00 | 6-1-2039 | 1,750,000 | 1,723,632 | ||
City of New Britain Series A (BAM Insured) | 5.00 | 3-1-2047 | 1,855,000 | 1,963,872 | ||
City of New Haven Series A (AGM Insured) | 5.00 | 8-1-2039 | 3,000,000 | 3,174,111 | ||
State of Connecticut Series B | 5.00 | 6-1-2041 | 1,250,000 | 1,365,464 | ||
8,227,079 | ||||||
Health revenue: 0.17% | ||||||
Connecticut State HEFA Connecticut Children’s Medical Center Obligated Group Series E | 5.25 | 7-15-2048 | 3,700,000 | 3,985,213 | ||
Connecticut State HEFA McLean Affiliates Obligated Group Series A144A | 5.00 | 1-1-2045 | 1,000,000 | 883,412 | ||
Connecticut State HEFA Stamford Hospital Obligated Group Series M | 5.00 | 7-1-2032 | 2,705,000 | 2,995,953 | ||
Connecticut State HEFA Stamford Hospital Obligated Group Series M | 5.00 | 7-1-2033 | 3,000,000 | 3,296,980 | ||
11,161,558 | ||||||
Tax revenue: 0.63% | ||||||
State of Connecticut Special Tax Revenue Series A | 5.00 | 9-1-2028 | 10,105,000 | 10,319,604 | ||
State of Connecticut Special Tax Revenue Series A | 5.00 | 5-1-2040 | 1,700,000 | 1,855,935 | ||
State of Connecticut Special Tax Revenue Series A | 5.25 | 7-1-2043 | 3,000,000 | 3,410,329 | ||
State of Connecticut Special Tax Revenue Series A (AGM Insured) | 4.00 | 5-1-2038 | 5,000,000 | 5,145,796 | ||
State of Connecticut Special Tax Revenue Series B | 5.00 | 10-1-2036 | 5,000,000 | 5,403,373 | ||
State of Connecticut Special Tax Revenue Series B | 5.00 | 10-1-2037 | 7,500,000 | 8,062,720 | ||
State of Connecticut Special Tax Revenue Series D | 4.00 | 11-1-2039 | 2,000,000 | 2,029,650 | ||
State of Connecticut Special Tax Revenue Series D | 4.00 | 11-1-2040 | 3,500,000 | 3,538,246 | ||
39,765,653 | ||||||
80,764,877 | ||||||
Delaware: 0.35% | ||||||
Education revenue: 0.16% | ||||||
County of Kent Charter School, Inc. Series A | 4.00 | 5-1-2041 | 2,750,000 | 2,373,992 | ||
County of Kent Charter School, Inc. Series B | 4.00 | 5-1-2024 | 30,000 | 29,407 | ||
Delaware State EDA Odyssey Charter School Series A144A | 7.00 | 9-1-2045 | 7,500,000 | 7,691,660 | ||
10,095,059 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
20 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue: 0.04% | ||||||
Tender Option Bond Trust Receipts/Certificates Series 2021- XF2945 (Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ)144Aø | 4.41 % | 6-15-2043 | $ | 2,840,000 | $2,840,000 | |
Transportation revenue: 0.15% | ||||||
Delaware River & Bay Authority | 4.00 | 1-1-2039 | 650,000 | 655,271 | ||
Delaware River & Bay Authority | 4.00 | 1-1-2040 | 485,000 | 486,528 | ||
Delaware River & Bay Authority | 4.00 | 1-1-2041 | 320,000 | 320,024 | ||
Delaware River & Bay Authority | 4.00 | 1-1-2042 | 550,000 | 546,900 | ||
Delaware River & Bay Authority | 4.00 | 1-1-2046 | 1,000,000 | 983,540 | ||
Delaware River & Bay Authority | 5.00 | 1-1-2038 | 410,000 | 457,499 | ||
Delaware River & Bay Authority | 5.00 | 1-1-2039 | 450,000 | 496,897 | ||
Delaware River & Bay Authority | 5.00 | 1-1-2040 | 465,000 | 510,566 | ||
Delaware River & Bay Authority | 5.00 | 1-1-2041 | 500,000 | 544,164 | ||
Delaware River & Bay Authority | 5.00 | 1-1-2042 | 520,000 | 565,410 | ||
Delaware Transportation Authority Delaware Transportation Authority US 301 Project Revenue | 5.00 | 6-1-2055 | 3,950,000 | 4,007,395 | ||
9,574,194 | ||||||
22,509,253 | ||||||
District of Columbia: 1.03% | ||||||
Airport revenue: 0.18% | ||||||
Metropolitan Washington Airports Authority Aviation Revenue Series A AMT | 4.00 | 10-1-2038 | 2,500,000 | 2,478,405 | ||
Metropolitan Washington Airports Authority Aviation Revenue Series A AMT | 4.00 | 10-1-2039 | 3,405,000 | 3,350,362 | ||
Metropolitan Washington Airports Authority Aviation Revenue Series A AMT | 5.00 | 10-1-2032 | 5,000,000 | 5,538,803 | ||
11,367,570 | ||||||
GO revenue: 0.36% | ||||||
District of Columbia Series A | 5.00 | 6-1-2037 | 5,000,000 | 5,313,863 | ||
District of Columbia Series A | 5.00 | 10-15-2044 | 10,000,000 | 10,752,588 | ||
District of Columbia Series D | 5.00 | 2-1-2046 | 6,150,000 | 6,699,466 | ||
22,765,917 | ||||||
Health revenue: 0.12% | ||||||
District of Columbia Children’s National Medical Center Obligated Group | 5.00 | 7-15-2044 | 7,575,000 | 7,650,578 | ||
Housing revenue: 0.16% | ||||||
Washington Metropolitan Area Transit Authority Dedicated Revenue Series A | 4.00 | 7-15-2040 | 6,000,000 | 6,075,958 | ||
Washington Metropolitan Area Transit Authority Dedicated Revenue Series A | 4.00 | 7-15-2045 | 1,000,000 | 993,588 | ||
Washington Metropolitan Area Transit Authority Dedicated Revenue Series A | 4.00 | 7-15-2046 | 3,540,000 | 3,490,494 | ||
10,560,040 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 21
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue: 0.04% | ||||||
Washington Convention & Sports Authority Series A | 4.00 % | 10-1-2036 | $ | 670,000 | $682,471 | |
Washington Convention & Sports Authority Series A | 4.00 | 10-1-2037 | 1,115,000 | 1,125,246 | ||
Washington Convention & Sports Authority Series A | 4.00 | 10-1-2039 | 640,000 | 639,777 | ||
2,447,494 | ||||||
Tax revenue: 0.05% | ||||||
Washington Convention & Sports Authority Series B | 4.00 | 10-1-2037 | 1,000,000 | 1,009,189 | ||
Washington Convention & Sports Authority Series B | 4.00 | 10-1-2038 | 1,000,000 | 1,004,589 | ||
Washington Convention & Sports Authority Series B | 4.00 | 10-1-2039 | 1,000,000 | 999,651 | ||
3,013,429 | ||||||
Transportation revenue: 0.12% | ||||||
Metropolitan Washington Airports Authority Dulles Toll Road Revenue Series B (AGM Insured) | 4.00 | 10-1-2049 | 8,000,000 | 7,717,371 | ||
65,522,399 | ||||||
Florida: 6.06% | ||||||
Airport revenue: 2.47% | ||||||
County of Broward Airport System Revenue Series A AMT | 5.00 | 10-1-2034 | 1,750,000 | 1,886,235 | ||
County of Broward Airport System Revenue Series A AMT | 5.00 | 10-1-2036 | 12,440,000 | 12,660,668 | ||
County of Broward Airport System Revenue Series A AMT | 5.00 | 10-1-2038 | 2,000,000 | 2,107,512 | ||
County of Broward Airport System Revenue Series Q-1 | 4.00 | 10-1-2042 | 4,800,000 | 4,706,618 | ||
County of Broward Port Facilities Revenue Series B AMT | 4.00 | 9-1-2044 | 7,300,000 | 7,012,550 | ||
County of Miami-Dade Aviation Revenue AMT | 5.00 | 10-1-2030 | 11,000,000 | 11,098,444 | ||
County of Miami-Dade Aviation Revenue AMT | 5.00 | 10-1-2032 | 14,000,000 | 14,115,518 | ||
County of Miami-Dade Aviation Revenue Series A | 4.00 | 10-1-2038 | 3,250,000 | 3,268,902 | ||
County of Miami-Dade Aviation Revenue Series A | 4.00 | 10-1-2041 | 1,500,000 | 1,466,800 | ||
County of Miami-Dade Aviation Revenue Series A AMT | 5.00 | 10-1-2033 | 5,000,000 | 5,045,221 | ||
County of Miami-Dade Aviation Revenue Series A AMT | 5.00 | 10-1-2049 | 18,750,000 | 19,267,594 | ||
County of Miami-Dade Aviation Revenue Series B AMT | 5.00 | 10-1-2040 | 18,000,000 | 18,463,201 | ||
County of Miami-Dade Seaport Department Series A AMT | 5.25 | 10-1-2052 | 2,000,000 | 2,100,460 | ||
County of Miami-Dade Seaport Department Series B AMT | 6.00 | 10-1-2033 | 500,000 | 502,987 | ||
Greater Orlando Aviation Authority Series A AMT | 5.00 | 10-1-2046 | 3,000,000 | 3,050,954 | ||
Hillsborough County Aviation Authority Series A AMT | 5.00 | 10-1-2048 | 7,000,000 | 7,204,983 | ||
Hillsborough County Aviation Authority Series E AMT | 5.00 | 10-1-2048 | 10,000,000 | 10,316,460 | ||
Hillsborough County Aviation Authority Series F | 5.00 | 10-1-2048 | 17,000,000 | 17,871,469 | ||
Jacksonville Port Authority Series B | 5.00 | 11-1-2044 | 4,080,000 | 4,320,372 | ||
Jacksonville Port Authority Series B | 5.00 | 11-1-2048 | 9,870,000 | 10,417,252 | ||
156,884,200 | ||||||
Education revenue: 0.28% | ||||||
Capital Trust Agency Renaissance Charter School, Inc. Series 2019 Obligated Group Series A144A | 5.00 | 6-15-2039 | 3,610,000 | 3,376,197 | ||
Florida Development Finance Corp. Cornerstone Charter Academy A Challenge Foundation Academy, Inc.144A | 5.00 | 10-1-2042 | 1,605,000 | 1,521,310 | ||
Florida Higher Educational Facilities Financial Authority Jacksonville University Series A-1144A | 5.00 | 6-1-2048 | 2,000,000 | 1,802,593 | ||
The accompanying notes are an integral part of these consolidated financial statements.
22 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
Volusia County Educational Facility Authority Embry-Riddle Aeronautical University, Inc. Series A | 5.00 % | 10-15-2044 | $ | 6,500,000 | $6,806,990 | |
Volusia County Educational Facility Authority Embry-Riddle Aeronautical University, Inc. Series A | 5.00 | 10-15-2049 | 4,000,000 | 4,159,835 | ||
17,666,925 | ||||||
GO revenue: 0.53% | ||||||
County of Miami-Dade Building Better Communities Program Series 2014-A | 5.00 | 7-1-2043 | 12,935,000 | 13,317,659 | ||
County of Miami-Dade Public Health Trust Program Series A | 4.00 | 7-1-2042 | 5,000,000 | 5,005,764 | ||
School Board of Miami-Dade County | 5.00 | 3-15-2046 | 15,000,000 | 15,308,727 | ||
33,632,150 | ||||||
Health revenue: 0.63% | ||||||
City of Atlantic Beach Naval Continuing Care Retirement Foundation Obligated Group Series B | 5.63 | 11-15-2043 | 5,000,000 | 4,925,176 | ||
City of Jacksonville Genesis Health, Inc. Obligated Group | 4.00 | 11-1-2045 | 3,500,000 | 3,145,698 | ||
City of Tampa H Lee Moffitt Cancer Center & Research Institute Obligated Group Series B | 4.00 | 7-1-2038 | 1,025,000 | 1,006,143 | ||
City of Tampa H Lee Moffitt Cancer Center & Research Institute Obligated Group Series B | 4.00 | 7-1-2045 | 2,500,000 | 2,315,243 | ||
City of Tampa H Lee Moffitt Cancer Center & Research Institute Obligated Group Series B | 5.00 | 7-1-2040 | 700,000 | 726,426 | ||
Holmes County Hospital Corp. | 6.00 | 11-1-2038 | 2,500,000 | 2,233,006 | ||
Lee County IDA Shell Point Obligated Group | 5.00 | 11-15-2044 | 11,265,000 | 10,849,153 | ||
Lee County IDA Shell Point Obligated Group | 5.00 | 11-15-2049 | 5,500,000 | 5,184,863 | ||
Sarasota County Public Hospital District Obligated Group | 5.00 | 7-1-2052 | 8,000,000 | 8,349,406 | ||
St. Johns County IDA Senior Living Vicar’s Landing Project Series A | 4.00 | 12-15-2046 | 1,500,000 | 1,121,932 | ||
39,857,046 | ||||||
Housing revenue: 0.48% | ||||||
City of Orlando Series B | 5.00 | 10-1-2033 | 1,525,000 | 1,554,676 | ||
City of Orlando Series B | 5.00 | 10-1-2035 | 1,680,000 | 1,710,232 | ||
City of Orlando Series B | 5.00 | 10-1-2036 | 1,765,000 | 1,796,332 | ||
County of Hillsborough | 5.00 | 10-1-2038 | 8,000,000 | 8,211,351 | ||
Florida Housing Finance Corp. Journet Place LP Series 1144A | 7.60 | 12-15-2047 | 755,000 | 791,899 | ||
Florida Housing Finance Corp. Villa Capri III Associates Ltd. | 7.60 | 12-15-2042 | 2,435,000 | 2,437,768 | ||
Tender Option Bond Trust Receipts/Certificates Series 2022- XF3058 (Mizuho Capital Markets LLC LOC)144Aø | 4.41 | 11-1-2035 | 14,260,000 | 14,260,000 | ||
30,762,258 | ||||||
Industrial development revenue: 0.04% | ||||||
Florida Development Finance Corp. Waste Pro USA, Inc. AMT | 3.00 | 6-1-2032 | 3,500,000 | 2,779,406 | ||
Miscellaneous revenue: 0.69% | ||||||
County of Broward Tourist Development Tax Revenue Convention Center Expansion | 4.00 | 9-1-2047 | 15,000,000 | 14,312,302 | ||
County of Pasco State of Florida Cigarette Tax Revenue Series A (AGM Insured) | 5.00 | 9-1-2048 | 1,000,000 | 1,071,348 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 23
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue (continued) | ||||||
County of Pasco State of Florida Cigarette Tax Revenue Series A (AGM Insured) | 5.50 % | 9-1-2044 | $ | 875,000 | $980,198 | |
Duval County Public Schools Series A (AGM Insured) | 5.00 | 7-1-2033 | 4,750,000 | 5,330,440 | ||
Duval County Public Schools Series A (AGM Insured) | 5.00 | 7-1-2034 | 2,000,000 | 2,238,009 | ||
Duval County Public Schools Series A (AGM Insured) | 5.00 | 7-1-2035 | 3,000,000 | 3,331,912 | ||
Indigo Community Development District Series C | 7.00 | 5-1-2030 | 1,836,248 | 1,267,011 | ||
Julington Creek Plantation Community Development District (AGM Insured) | 4.38 | 5-1-2045 | 1,000,000 | 987,928 | ||
Julington Creek Plantation Community Development District (AGM Insured) | 4.63 | 5-1-2054 | 3,000,000 | 2,992,503 | ||
Lakeside Plantation Community Development District Series A | 6.95 | 5-1-2031 | 776,000 | 777,017 | ||
Marshall Creek Community Development District | 5.00 | 5-1-2032 | 1,445,000 | 1,434,563 | ||
Marshall Creek Community Development District | 6.32 | 5-1-2045 | 110,000 | 108,592 | ||
Pinellas County IDA Drs. Kiran & Pallavi Patel 2017 Foundation for Global Understanding, Inc. | 5.00 | 7-1-2039 | 2,000,000 | 2,010,259 | ||
St. Johns County School Board Series A (AGM Insured) | 5.25 | 7-1-2047 | 5,000,000 | 5,542,059 | ||
Village Community Development District No. 15144A%% | 5.00 | 5-1-2043 | 1,250,000 | 1,263,548 | ||
43,647,689 | ||||||
Resource recovery revenue: 0.11% | ||||||
Florida Development Finance Corp. Waste Pro USA, Inc. AMT144A | 5.25 | 8-1-2029 | 7,500,000 | 7,227,948 | ||
Tax revenue: 0.09% | ||||||
County of Lee Local Option Gas Tax Revenue | 5.25 | 8-1-2049 | 5,000,000 | 5,409,556 | ||
Transportation revenue: 0.23% | ||||||
Central Florida Expressway Authority (AGM Insured) | 4.00 | 7-1-2039 | 6,070,000 | 6,157,118 | ||
County of Osceola Transportation Revenue Series A-1 | 5.00 | 10-1-2044 | 4,250,000 | 4,338,399 | ||
Sunshine Skyway Bridge Series A (AGM Insured) | 4.00 | 7-1-2038 | 4,185,000 | 4,216,555 | ||
14,712,072 | ||||||
Utilities revenue: 0.06% | ||||||
City of Lakeland Department of Electric Utilities | 5.00 | 10-1-2048 | 1,250,000 | 1,415,754 | ||
Fort Pierce Utilities Authority Series A (AGM Insured) | 5.00 | 10-1-2038 | 1,000,000 | 1,102,850 | ||
Fort Pierce Utilities Authority Series A (AGM Insured) | 5.00 | 10-1-2042 | 1,000,000 | 1,097,823 | ||
3,616,427 | ||||||
Water & sewer revenue: 0.45% | ||||||
County of Manatee Public Utilities Revenue | 4.00 | 10-1-2048 | 3,345,000 | 3,320,037 | ||
Florida Keys Aqueduct Authority Series A | 5.00 | 9-1-2041 | 2,750,000 | 2,823,619 | ||
Lakewood Ranch Stewardship District Utility Revenue (AGM Insured)%% | 5.25 | 10-1-2048 | 2,605,000 | 2,810,664 | ||
Lakewood Ranch Stewardship District Utility Revenue (AGM Insured)%% | 5.25 | 10-1-2053 | 4,000,000 | 4,280,633 | ||
North Sumter County Utility Dependent District | 5.00 | 10-1-2049 | 3,250,000 | 3,373,748 | ||
The accompanying notes are an integral part of these consolidated financial statements.
24 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Water & sewer revenue (continued) | ||||||
North Sumter County Utility Dependent District (BAM Insured) | 5.00 % | 10-1-2044 | $ | 3,000,000 | $3,198,653 | |
Wildwood Utility Dependent District South Sumter Utility Project (BAM Insured) | 5.00 | 10-1-2046 | 8,250,000 | 8,848,247 | ||
28,655,601 | ||||||
384,851,278 | ||||||
Georgia: 2.75% | ||||||
Education revenue: 0.17% | ||||||
Development Authority of Cobb County Learning Center Foundation of Central Cobb, Inc. Series A | 6.38 | 7-1-2025 | 1,705,000 | 1,364,000 | ||
Private Colleges & Universities Authority Emory University Series B | 5.00 | 9-1-2048 | 4,000,000 | 4,293,483 | ||
Private Colleges & Universities Authority Mercer University | 5.00 | 10-1-2040 | 5,000,000 | 5,064,319 | ||
10,721,802 | ||||||
Health revenue: 0.20% | ||||||
Brookhaven Development Authority Children’s Healthcare of Atlanta Obligated Group Series A | 4.00 | 7-1-2044 | 6,000,000 | 5,910,334 | ||
Brookhaven Development Authority Children’s Healthcare of Atlanta Obligated Group Series A | 5.00 | 7-1-2038 | 1,500,000 | 1,619,248 | ||
Development Authority for Fulton County WellStar Health System Obligated Group Series A | 5.00 | 4-1-2047 | 2,250,000 | 2,299,506 | ||
Glynn-Brunswick Memorial Hospital Authority Southeast Georgia Health System Obligated Group | 5.00 | 8-1-2034 | 2,580,000 | 2,612,095 | ||
12,441,183 | ||||||
Industrial development revenue: 0.04% | ||||||
George L Smith II Congress Center Authority Signia Hotel Management LLC Series B144A | 5.00 | 1-1-2054 | 3,000,000 | 2,520,317 | ||
Miscellaneous revenue: 0.12% | ||||||
Brookhaven Urban Redevelopment Agency City of Brookhaven GA Special Service Tax District Series A | 4.00 | 7-1-2048 | 7,605,000 | 7,501,802 | ||
Tax revenue: 0.12% | ||||||
Metropolitan Atlanta Rapid Transit Authority Series B | 5.00 | 7-1-2044 | 7,500,000 | 7,776,276 | ||
Transportation revenue: 0.12% | ||||||
Georgia State Road & Tollway Authority Series B CAB144A¤ | 0.00 | 6-1-2049 | 5,600,000 | 5,709,144 | ||
Georgia State Road & Tollway Authority CCAB I-75 South Expressway Lanes Project Series A CAB144A¤ | 0.00 | 6-1-2034 | 3,750,000 | 1,968,456 | ||
7,677,600 | ||||||
Utilities revenue: 1.98% | ||||||
Board of Water Light & Sinking Fund Commissioners of the City of Dalton | 4.00 | 3-1-2040 | 1,000,000 | 978,834 | ||
Board of Water Light & Sinking Fund Commissioners of the City of Dalton | 4.00 | 3-1-2041 | 1,000,000 | 974,691 | ||
Development Authority of Burke County Georgia Power Co.øø | 2.93 | 11-1-2048 | 10,000,000 | 9,887,303 | ||
Development Authority of Burke County Georgia Power Co.øø | 2.93 | 11-1-2053 | 14,750,000 | 14,583,772 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 25
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue (continued) | ||||||
Development Authority of Burke County Georgia Power Co. Series 1995 | 2.20 % | 10-1-2032 | $ | 1,500,000 | $1,204,484 | |
Development Authority of Monroe County Georgia Power Co. Series 2øø | 3.88 | 10-1-2048 | 3,000,000 | 3,000,607 | ||
Main Street Natural Gas, Inc. Series Aøø | 4.00 | 7-1-2052 | 8,500,000 | 8,471,884 | ||
Main Street Natural Gas, Inc. Series A | 5.00 | 5-15-2032 | 3,745,000 | 3,864,245 | ||
Main Street Natural Gas, Inc. Series Aøø | 5.00 | 6-1-2053 | 16,000,000 | 16,565,760 | ||
Main Street Natural Gas, Inc. Series B | 5.00 | 6-1-2027 | 1,700,000 | 1,740,284 | ||
Main Street Natural Gas, Inc. Series B | 5.00 | 6-1-2028 | 2,900,000 | 2,991,712 | ||
Main Street Natural Gas, Inc. Series B | 5.00 | 6-1-2029 | 3,300,000 | 3,416,311 | ||
Main Street Natural Gas, Inc. Series Bøø | 5.00 | 7-1-2053 | 6,000,000 | 6,268,793 | ||
Main Street Natural Gas, Inc. Series B (1 Month LIBOR+0.75%)± | 4.21 | 4-1-2048 | 5,100,000 | 5,098,571 | ||
Main Street Natural Gas, Inc. Series C144Aøø | 4.00 | 8-1-2052 | 27,000,000 | 26,096,693 | ||
Municipal Electric Authority of Georgia Series A | 5.00 | 1-1-2044 | 3,580,000 | 3,661,484 | ||
Municipal Electric Authority of Georgia Series EE (Ambac Insured) | 7.25 | 1-1-2024 | 400,000 | 407,632 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A | 5.00 | 1-1-2037 | 1,100,000 | 1,154,839 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A | 5.00 | 1-1-2038 | 1,100,000 | 1,145,451 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A | 5.25 | 7-1-2064 | 8,000,000 | 8,364,883 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A (BAM Insured) | 5.00 | 1-1-2049 | 5,000,000 | 5,149,626 | ||
Municipal Electric Authority of Georgia Project One Subordinated Bond Series A | 4.00 | 1-1-2040 | 1,075,000 | 1,041,226 | ||
126,069,085 | ||||||
174,708,065 | ||||||
Guam: 0.12% | ||||||
Airport revenue: 0.04% | ||||||
Antonio B Won Pat International Airport Authority Series A AMT%% | 5.25 | 10-1-2035 | 530,000 | 534,489 | ||
Antonio B Won Pat International Airport Authority Series A AMT%% | 5.25 | 10-1-2036 | 1,000,000 | 999,065 | ||
Antonio B Won Pat International Airport Authority Series A AMT%% | 5.38 | 10-1-2043 | 750,000 | 739,453 | ||
Port Authority of Guam Series B AMT | 5.00 | 7-1-2030 | 500,000 | 529,210 | ||
2,802,217 | ||||||
Housing revenue: 0.00% | ||||||
Guam Housing Corp. Series A (FHLMC Insured) | 5.75 | 9-1-2031 | 60,000 | 60,087 | ||
Miscellaneous revenue: 0.04% | ||||||
Territory of Guam Series F | 4.00 | 1-1-2042 | 2,750,000 | 2,430,613 | ||
Water & sewer revenue: 0.04% | ||||||
Guam Government Waterworks Authority | 5.25 | 7-1-2023 | 1,000,000 | 1,000,000 | ||
Guam Government Waterworks Authority Series A | 5.00 | 1-1-2050 | 1,600,000 | 1,624,109 | ||
2,624,109 | ||||||
7,917,026 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
26 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Hawaii: 0.44% | ||||||
Airport revenue: 0.44% | ||||||
State of Hawaii Airports System Revenue Series A AMT | 5.00 % | 7-1-2034 | $ | 6,800,000 | $7,399,640 | |
State of Hawaii Airports System Revenue Series A AMT | 5.00 | 7-1-2041 | 9,500,000 | 9,590,406 | ||
State of Hawaii Airports System Revenue Series A AMT | 5.00 | 7-1-2048 | 7,000,000 | 7,196,630 | ||
State of Hawaii Harbor System Revenue Series A AMT | 4.00 | 7-1-2033 | 1,250,000 | 1,264,756 | ||
State of Hawaii Harbor System Revenue Series A AMT | 4.00 | 7-1-2034 | 875,000 | 885,954 | ||
State of Hawaii Harbor System Revenue Series A AMT | 4.00 | 7-1-2035 | 625,000 | 629,557 | ||
State of Hawaii Harbor System Revenue Series A AMT | 4.00 | 7-1-2036 | 300,000 | 299,789 | ||
State of Hawaii Harbor System Revenue Series C | 4.00 | 7-1-2040 | 425,000 | 425,514 | ||
27,692,246 | ||||||
Idaho: 0.10% | ||||||
Education revenue: 0.10% | ||||||
Idaho Housing & Finance Association Legacy Public Charter School, Inc. Series A | 5.85 | 5-1-2033 | 525,000 | 525,227 | ||
Idaho Housing & Finance Association Legacy Public Charter School, Inc. Series A | 6.25 | 5-1-2043 | 1,365,000 | 1,365,723 | ||
Idaho Housing & Finance Association Liberty Charter School, Inc. Series A144A | 4.00 | 6-1-2030 | 1,120,000 | 1,112,108 | ||
Idaho Housing & Finance Association Liberty Charter School, Inc. Series A144A | 4.00 | 6-1-2038 | 1,715,000 | 1,567,276 | ||
Idaho Housing & Finance Association North Star Charter School, Inc. Series A | 6.75 | 7-1-2048 | 1,322,876 | 1,378,533 | ||
Idaho Housing & Finance Association North Star Charter School, Inc. Series B CAB144A¤ | 0.00 | 7-1-2049 | 1,276,564 | 217,872 | ||
6,166,739 | ||||||
Illinois: 13.49% | ||||||
Airport revenue: 0.82% | ||||||
Chicago O’Hare International Airport Series A | 4.00 | 1-1-2035 | 7,500,000 | 7,757,195 | ||
Chicago O’Hare International Airport Series A | 5.00 | 1-1-2034 | 5,000,000 | 5,579,599 | ||
Chicago O’Hare International Airport Series A AMT | 5.00 | 1-1-2030 | 5,000,000 | 5,078,484 | ||
Chicago O’Hare International Airport Series B | 5.00 | 1-1-2039 | 10,250,000 | 10,636,025 | ||
Chicago O’Hare International Airport Passenger Facility Charge Revenue | 5.75 | 1-1-2043 | 4,500,000 | 4,517,416 | ||
Chicago O’Hare International Airport Passenger Facility Charge Revenue (AGM Insured) | 5.50 | 1-1-2043 | 4,530,000 | 4,534,652 | ||
Chicago O’Hare International Airport Passenger Facility Charge Revenue Series B AMT | 5.00 | 1-1-2026 | 5,000,000 | 5,002,517 | ||
Chicago O’Hare International Airport Passenger Facility Charge Revenue Series B AMT | 5.00 | 1-1-2032 | 8,000,000 | 8,003,499 | ||
Chicago O’Hare International Airport Transportation Infrastructure Purpose Obligated Group AMT | 5.00 | 7-1-2038 | 1,000,000 | 1,017,814 | ||
52,127,201 | ||||||
Education revenue: 0.37% | ||||||
Illinois Finance Authority Acero Charter Schools, Inc. Obligated Group144A | 4.00 | 10-1-2042 | 1,250,000 | 953,844 | ||
Illinois Finance Authority Bradley University Series A | 4.00 | 8-1-2043 | 750,000 | 641,151 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 27
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
Illinois Finance Authority Noble Network of Charter Schools | 6.25 % | 9-1-2039 | $ | 7,955,000 | $7,974,607 | |
Illinois Finance Authority University of Chicago Series A | 5.00 | 10-1-2036 | 1,500,000 | 1,800,420 | ||
Illinois Finance Authority University of Chicago Series A | 5.00 | 10-1-2037 | 1,350,000 | 1,617,125 | ||
Illinois Finance Authority University of Chicago Series A | 5.00 | 10-1-2038 | 1,500,000 | 1,788,221 | ||
Illinois Finance Authority University of Chicago Series A | 5.25 | 5-15-2048 | 2,385,000 | 2,636,671 | ||
Southern Illinois University Series A (BAM Insured) | 4.00 | 4-1-2035 | 500,000 | 492,107 | ||
Southern Illinois University Series A (BAM Insured) | 4.00 | 4-1-2037 | 1,000,000 | 968,318 | ||
Southern Illinois University Series A (BAM Insured) | 5.00 | 4-1-2032 | 500,000 | 542,493 | ||
University of Illinois Auxiliary Facilities System Series A (NPFGC Insured)¤ | 0.00 | 4-1-2026 | 2,355,000 | 2,144,627 | ||
University of Illinois Auxiliary Facilities System Series A (NPFGC Insured)¤ | 0.00 | 4-1-2027 | 2,435,000 | 2,147,069 | ||
23,706,653 | ||||||
GO revenue: 3.95% | ||||||
Chicago Board of Education Series A | 5.00 | 12-1-2035 | 6,630,000 | 6,887,193 | ||
Chicago Board of Education Series A | 5.00 | 12-1-2036 | 6,000,000 | 6,183,982 | ||
Chicago Board of Education Series A | 5.00 | 12-1-2040 | 2,000,000 | 2,022,108 | ||
Chicago Board of Education Series A | 5.00 | 12-1-2042 | 6,555,000 | 6,466,581 | ||
Chicago Board of Education Series B-1 (NPFGC Insured)¤ | 0.00 | 12-1-2023 | 2,930,000 | 2,881,887 | ||
Chicago Board of Education Series B-1 (NPFGC Insured)¤ | 0.00 | 12-1-2026 | 4,245,000 | 3,698,594 | ||
Chicago Board of Education Series D | 5.00 | 12-1-2046 | 15,000,000 | 14,675,311 | ||
Chicago Board of Education Series H | 5.00 | 12-1-2036 | 5,905,000 | 5,983,828 | ||
Chicago Board of Education Series H | 5.00 | 12-1-2046 | 4,000,000 | 3,921,805 | ||
Chicago Board of Education Dedicated Capital Improvement Tax | 5.75 | 4-1-2048 | 10,000,000 | 10,918,405 | ||
Chicago Park District Series C (BAM Insured) | 4.00 | 1-1-2041 | 4,025,000 | 3,904,523 | ||
Chicago Park District Series D (BAM Insured) | 4.00 | 1-1-2034 | 4,555,000 | 4,628,077 | ||
City of Chicago Series A | 5.00 | 1-1-2027 | 1,410,000 | 1,475,820 | ||
City of Chicago Series A | 5.00 | 1-1-2034 | 11,790,000 | 12,744,457 | ||
City of Chicago Series A | 5.25 | 1-1-2037 | 1,950,000 | 2,125,445 | ||
City of Chicago Series A | 5.50 | 1-1-2039 | 5,000,000 | 5,490,039 | ||
City of Chicago Series A | 5.50 | 1-1-2040 | 1,000,000 | 1,093,512 | ||
City of Chicago Series A | 5.50 | 1-1-2041 | 1,500,000 | 1,609,073 | ||
City of Chicago Series A | 5.50 | 1-1-2043 | 1,500,000 | 1,602,724 | ||
City of Chicago Series A | 6.00 | 1-1-2038 | 3,000,000 | 3,191,536 | ||
City of Chicago Series B | 4.00 | 1-1-2038 | 6,615,000 | 6,229,900 | ||
City of Chicago Series C CAB (AGM Insured)¤ | 0.00 | 1-1-2026 | 7,360,000 | 6,782,393 | ||
City of Chicago CAB-City Colleges (NPFGC Insured)¤ | 0.00 | 1-1-2025 | 9,935,000 | 9,367,081 | ||
City of Chicago CAB-City Colleges (NPFGC Insured)¤ | 0.00 | 1-1-2030 | 5,995,000 | 4,623,356 | ||
City of Peoria Series A (BAM Insured) | 5.00 | 1-1-2029 | 2,000,000 | 2,186,077 | ||
Cook County Community College District No. 508 | 5.13 | 12-1-2038 | 2,250,000 | 2,251,243 | ||
Kane Cook & DuPage Counties School District No. U-46 Elgin Series D | 5.00 | 1-1-2028 | 1,165,000 | 1,171,461 | ||
Kane Cook & DuPage Counties School District No. U-46 Elgin Series D | 5.00 | 1-1-2033 | 2,000,000 | 2,008,681 | ||
Kane Cook & DuPage Counties School District No. U-46 Elgin Series D | 5.00 | 1-1-2035 | 1,850,000 | 1,865,276 | ||
The accompanying notes are an integral part of these consolidated financial statements.
28 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
Kendall Kane & Will Counties Community Unit School District No. 308 (AGM Insured)¤ | 0.00 % | 2-1-2025 | $ | 855,000 | $807,516 | |
Kendall Kane & Will Counties Community Unit School District No. 308 (AGM Insured)¤ | 0.00 | 2-1-2026 | 5,050,000 | 4,602,597 | ||
Kendall Kane & Will Counties Community Unit School District No. 308 (AGM Insured)¤ | 0.00 | 2-1-2027 | 12,050,000 | 10,613,309 | ||
Lake County Community Consolidated School District No. 24 Millburn (NPFGC Insured)¤ | 0.00 | 1-1-2024 | 2,000,000 | 1,962,937 | ||
Lake County School District No. 38 Big Hollow (Ambac Insured)¤ | 0.00 | 2-1-2024 | 5,385,000 | 5,259,821 | ||
Madison Bond Etc Counties Community Unit School District No. 5 Highland Series B (AGM Insured) | 5.50 | 2-1-2040 | 1,265,000 | 1,391,520 | ||
Metropolitan Water Reclamation District of Greater Chicago Series C | 5.00 | 12-1-2045 | 10,000,000 | 10,216,873 | ||
Metropolitan Water Reclamation District of Greater Chicago Series C | 5.25 | 12-1-2032 | 1,565,000 | 1,882,087 | ||
Sangamon Logan & Menard Counties Community Unit School District No. 15 Williamsville Series B (BAM Insured) | 4.00 | 12-1-2044 | 1,500,000 | 1,442,091 | ||
State of Illinois | 5.00 | 11-1-2027 | 1,175,000 | 1,231,813 | ||
State of Illinois | 5.25 | 7-1-2030 | 2,500,000 | 2,500,654 | ||
State of Illinois | 5.50 | 5-1-2024 | 2,500,000 | 2,537,361 | ||
State of Illinois | 5.50 | 7-1-2025 | 6,000,000 | 6,001,775 | ||
State of Illinois | 5.50 | 7-1-2026 | 4,450,000 | 4,451,316 | ||
State of Illinois | 5.50 | 1-1-2030 | 2,900,000 | 3,277,315 | ||
State of Illinois | 5.50 | 7-1-2033 | 4,000,000 | 4,001,183 | ||
State of Illinois (AGM Insured) | 5.00 | 4-1-2026 | 3,000,000 | 3,030,545 | ||
State of Illinois Series 1 (NPFGC Insured) | 6.00 | 11-1-2026 | 3,200,000 | 3,357,009 | ||
State of Illinois Series A | 5.00 | 3-1-2046 | 2,500,000 | 2,599,720 | ||
State of Illinois Series A | 5.50 | 3-1-2042 | 3,500,000 | 3,851,546 | ||
State of Illinois Series A (AGM Insured) | 5.00 | 4-1-2024 | 3,000,000 | 3,004,529 | ||
State of Illinois Series B | 5.00 | 10-1-2028 | 2,750,000 | 2,974,968 | ||
State of Illinois Series B | 5.50 | 5-1-2047 | 6,500,000 | 7,057,799 | ||
State of Illinois Series C | 4.00 | 10-1-2038 | 4,820,000 | 4,693,656 | ||
State of Illinois Series C | 5.00 | 11-1-2029 | 2,965,000 | 3,162,676 | ||
Tazewell County School District No. 51 Washington Central (NPFGC Insured) | 9.00 | 12-1-2023 | 350,000 | 357,503 | ||
Village of Bolingbrook Series A | 4.00 | 1-1-2030 | 3,420,000 | 3,394,696 | ||
Will County Community High School District No. 210 Lincoln-Way CAB (AGM Insured)¤ | 0.00 | 1-1-2026 | 7,000,000 | 6,356,714 | ||
Will County Community High School District No. 210 Lincoln-Way Series B CAB (BAM Insured)¤ | 0.00 | 1-1-2033 | 2,830,000 | 1,956,626 | ||
Will County Community High School District No. 210 Lincoln-Way Series B CAB (BAM Insured)¤ | 0.00 | 1-1-2032 | 400,000 | 289,126 | ||
Will County Community Unit School District No. 201-U Crete-Monee CAB (NPFGC Insured)¤ | 0.00 | 11-1-2023 | 500,000 | 494,520 | ||
Will County Community Unit School District No. 209-U Wilmington Series A (AGM Insured) | 5.50 | 2-1-2041 | 3,660,000 | 4,035,715 | ||
250,787,884 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 29
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue: 1.49% | ||||||
Illinois Finance Authority Carle Foundation Obligated Group Series A | 4.00 % | 8-15-2040 | $ | 8,600,000 | $8,261,903 | |
Illinois Finance Authority Carle Foundation Obligated Group Series A | 4.00 | 8-15-2048 | 7,450,000 | 6,780,720 | ||
Illinois Finance Authority Carle Foundation Obligated Group Series A | 5.00 | 2-15-2045 | 25,000,000 | 25,438,040 | ||
Illinois Finance Authority Evangelical Retirement Homes of Greater Chicago Obligated Group | 5.00 | 2-15-2022 | 1,680,000 | 672,000 | ||
Illinois Finance Authority Lutheran Life Communities Obligated Group Series A | 5.00 | 11-1-2040 | 4,900,000 | 4,275,816 | ||
Illinois Finance Authority Northwestern Memorial Healthcare Obligated Group Series A | 4.00 | 7-15-2039 | 2,250,000 | 2,253,621 | ||
Illinois Finance Authority OSF Healthcare System Obligated Group Series A | 5.00 | 11-15-2045 | 12,980,000 | 13,070,586 | ||
Illinois Finance Authority University of Chicago Medical Center Obligated Group Series A | 5.00 | 8-15-2047 | 30,000,000 | 31,814,124 | ||
Illinois Finance Authority University of Illinois | 4.00 | 10-1-2050 | 2,000,000 | 1,751,494 | ||
94,318,304 | ||||||
Housing revenue: 0.91% | ||||||
Metropolitan Pier & Exposition Authority Series A | 4.00 | 12-15-2042 | 2,500,000 | 2,366,849 | ||
Metropolitan Pier & Exposition Authority Series A (NPFGC Insured)¤ | 0.00 | 12-15-2026 | 12,245,000 | 10,737,031 | ||
Metropolitan Pier & Exposition Authority Series A (NPFGC Insured)¤ | 0.00 | 6-15-2029 | 12,085,000 | 9,653,890 | ||
Metropolitan Pier & Exposition Authority Series A (NPFGC Insured)¤ | 0.00 | 12-15-2030 | 25,700,000 | 19,285,668 | ||
Metropolitan Pier & Exposition Authority Series A (NPFGC Insured)¤ | 0.00 | 6-15-2031 | 10,060,000 | 7,383,262 | ||
Metropolitan Pier & Exposition Authority Series A (NPFGC Insured)¤ | 0.00 | 12-15-2031 | 9,800,000 | 7,049,214 | ||
Northern Illinois University (BAM Insured) | 4.00 | 10-1-2037 | 1,650,000 | 1,602,350 | ||
58,078,264 | ||||||
Miscellaneous revenue: 0.48% | ||||||
Illinois Finance Authority Shedd Aquarium Society | 5.00 | 6-1-2044 | 4,000,000 | 4,260,174 | ||
Illinois Finance Authority Shedd Aquarium Society | 5.00 | 6-1-2047 | 5,000,000 | 5,294,425 | ||
Illinois Sports Facilities Authority (Ambac Insured)¤ | 0.00 | 6-15-2024 | 17,570,000 | 16,852,949 | ||
Illinois Sports Facilities Authority (Ambac Insured)¤ | 0.00 | 6-15-2025 | 2,575,000 | 2,362,735 | ||
Illinois Sports Facilities Authority (Ambac Insured)¤ | 0.00 | 6-15-2026 | 2,030,000 | 1,781,891 | ||
30,552,174 | ||||||
Tax revenue: 3.43% | ||||||
Chicago Transit Authority Sales Tax Receipts Fund | 5.00 | 12-1-2046 | 21,500,000 | 22,026,627 | ||
Chicago Transit Authority Sales Tax Receipts Fund | 5.25 | 12-1-2049 | 13,500,000 | 13,693,446 | ||
Chicago Transit Authority Sales Tax Receipts Fund (AGM Insured) | 5.00 | 12-1-2044 | 4,000,000 | 4,049,793 | ||
Chicago Transit Authority Sales Tax Receipts Fund Series A | 5.00 | 12-1-2045 | 1,750,000 | 1,829,675 | ||
Chicago Transit Authority Sales Tax Receipts Fund Series A (BAM Insured) | 5.00 | 12-1-2046 | 10,000,000 | 10,737,783 | ||
City of Chicago Sales Tax Revenue | 5.00 | 1-1-2027 | 3,000,000 | 3,076,452 | ||
City of Chicago Sales Tax Revenue | 5.00 | 1-1-2028 | 4,430,000 | 4,542,894 | ||
City of Chicago Sales Tax Revenue | 5.00 | 1-1-2029 | 1,500,000 | 1,538,226 | ||
City of Chicago Sales Tax Revenue | 5.00 | 1-1-2030 | 4,325,000 | 4,435,218 | ||
City of Chicago Motor Fuel Tax Revenue | 5.00 | 1-1-2024 | 680,000 | 685,780 | ||
The accompanying notes are an integral part of these consolidated financial statements.
30 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue (continued) | ||||||
County of Cook Sales Tax Revenue Series A | 4.00 % | 11-15-2041 | $ | 2,000,000 | $1,970,040 | |
County of Cook Sales Tax Revenue Series A | 5.25 | 11-15-2045 | 5,000,000 | 5,373,895 | ||
Illinois Sports Facilities Authority (AGM Insured) | 5.00 | 6-15-2025 | 3,745,000 | 3,780,540 | ||
Illinois Sports Facilities Authority (AGM Insured) | 5.00 | 6-15-2026 | 4,775,000 | 4,814,260 | ||
Illinois Sports Facilities Authority (AGM Insured) | 5.00 | 6-15-2027 | 8,845,000 | 8,927,535 | ||
Illinois Sports Facilities Authority (AGM Insured) | 5.00 | 6-15-2028 | 4,030,000 | 4,070,589 | ||
Illinois Sports Facilities Authority (AGM Insured) | 5.25 | 6-15-2032 | 3,500,000 | 3,545,233 | ||
Regional Transportation Authority Series A## | 5.00 | 6-1-2044 | 22,840,000 | 23,228,565 | ||
Regional Transportation Authority Series A (AGM Insured) | 5.75 | 6-1-2034 | 15,000,000 | 18,144,658 | ||
Regional Transportation Authority Series A (NPFGC Insured) | 6.00 | 7-1-2027 | 10,620,000 | 11,534,764 | ||
Regional Transportation Authority Series A (NPFGC Insured) | 6.00 | 7-1-2033 | 5,000,000 | 6,117,484 | ||
Regional Transportation Authority Series B (NPFGC Insured) | 5.50 | 6-1-2027 | 16,845,000 | 17,877,144 | ||
Sales Tax Securitization Corp. Series A | 4.00 | 1-1-2038 | 8,950,000 | 8,866,215 | ||
Sales Tax Securitization Corp. Series A | 4.00 | 1-1-2048 | 5,430,000 | 5,039,317 | ||
Sales Tax Securitization Corp. Series A | 5.00 | 1-1-2038 | 3,000,000 | 3,146,490 | ||
Sales Tax Securitization Corp. Series C | 5.00 | 1-1-2024 | 2,500,000 | 2,518,703 | ||
Southwestern Illinois Development Authority | 5.00 | 3-1-2025 | 2,910,000 | 2,467,592 | ||
State of Illinois Sales Tax Revenue Series A (BAM Insured) | 4.00 | 6-15-2034 | 2,000,000 | 2,020,421 | ||
State of Illinois Sales Tax Revenue Series A (BAM Insured) | 4.13 | 6-15-2037 | 1,945,000 | 1,957,588 | ||
State of Illinois Sales Tax Revenue Series C | 5.00 | 6-15-2028 | 3,500,000 | 3,733,124 | ||
State of Illinois Sales Tax Revenue Series D | 4.00 | 6-15-2030 | 12,000,000 | 12,087,010 | ||
217,837,061 | ||||||
Tobacco revenue: 0.05% | ||||||
Railsplitter Tobacco Settlement Authority | 5.00 | 6-1-2024 | 3,000,000 | 3,040,815 | ||
Transportation revenue: 0.84% | ||||||
Illinois State Toll Highway Authority Series A | 4.00 | 1-1-2046 | 20,000,000 | 19,201,886 | ||
Illinois State Toll Highway Authority Series A | 5.00 | 1-1-2043 | 9,000,000 | 9,736,442 | ||
Illinois State Toll Highway Authority Series A | 5.00 | 1-1-2046 | 15,245,000 | 16,402,413 | ||
Illinois State Toll Highway Authority Series B | 5.00 | 1-1-2039 | 1,500,000 | 1,506,915 | ||
Public Building Commission of Chicago (Ambac Insured) | 5.25 | 3-1-2025 | 2,960,000 | 3,038,041 | ||
Public Building Commission of Chicago (Ambac Insured) | 5.25 | 3-1-2027 | 3,400,000 | 3,618,563 | ||
53,504,260 | ||||||
Utilities revenue: 0.39% | ||||||
City of Springfield Electric Revenue (AGM Insured) | 4.00 | 3-1-2040 | 6,000,000 | 5,828,960 | ||
Illinois Municipal Electric Agency Series A | 5.00 | 2-1-2030 | 7,000,000 | 7,206,631 | ||
Illinois Municipal Electric Agency Series A | 5.00 | 2-1-2031 | 8,000,000 | 8,211,959 | ||
Northern Illinois Municipal Power Agency Series A | 4.00 | 12-1-2033 | 3,430,000 | 3,442,894 | ||
24,690,444 | ||||||
Water & sewer revenue: 0.76% | ||||||
City of Chicago Wastewater Transmission Revenue | 5.00 | 1-1-2039 | 11,525,000 | 11,561,491 | ||
City of Chicago Wastewater Transmission Revenue | 5.00 | 1-1-2044 | 4,425,000 | 4,421,087 | ||
City of Chicago Wastewater Transmission Revenue Series C | 5.00 | 1-1-2039 | 5,000,000 | 5,047,328 | ||
City of Chicago Waterworks Revenue (AGM Insured) | 5.25 | 11-1-2032 | 3,250,000 | 3,514,793 | ||
City of Chicago Waterworks Revenue Series A (AGM Insured) | 5.25 | 11-1-2048 | 5,000,000 | 5,470,442 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 31
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Water & sewer revenue (continued) | ||||||
City of Chicago Waterworks Revenue Series B (AGM Insured) | 4.00 % | 11-1-2040 | $ | 4,000,000 | $3,967,855 | |
City of Chicago Waterworks Revenue Second Lien Project | 5.00 | 11-1-2044 | 9,000,000 | 9,073,036 | ||
Illinois Finance Authority State of Illinois Water Revolving Fund - Clean Water Program | 4.00 | 7-1-2038 | 5,000,000 | 5,043,429 | ||
48,099,461 | ||||||
856,742,521 | ||||||
Indiana: 1.87% | ||||||
Education revenue: 0.28% | ||||||
Indiana Finance Authority DePauw University Series A | 5.00 | 7-1-2047 | 17,000,000 | 17,105,119 | ||
Indiana Finance Authority KIPP Indianapolis, Inc. Series A | 5.00 | 7-1-2040 | 350,000 | 335,308 | ||
17,440,427 | ||||||
Health revenue: 0.37% | ||||||
Indiana Finance Authority Franciscan Alliance, Inc. Obligated Group Series C | 4.00 | 11-1-2033 | 12,885,000 | 12,990,657 | ||
Indiana Finance Authority Franciscan Alliance, Inc. Obligated Group Series C | 4.00 | 11-1-2036 | 5,000,000 | 4,994,850 | ||
Indiana Finance Authority Marion General Hospital, Inc. Obligated Group Series A | 4.00 | 7-1-2045 | 2,560,000 | 2,450,860 | ||
Indiana Health Facility Financing Authority Ascension Health Credit Group Series 2001-A-1 | 5.00 | 11-15-2034 | 2,750,000 | 2,848,231 | ||
23,284,598 | ||||||
Housing revenue: 0.28% | ||||||
Greater Clark Building Corp. | 6.00 | 7-15-2038 | 5,000,000 | 5,983,396 | ||
Hobart Building Corp. | 4.00 | 7-15-2035 | 2,295,000 | 2,322,662 | ||
Northwestern School Building Corp. | 4.00 | 1-15-2043 | 3,005,000 | 2,905,858 | ||
Northwestern School Building Corp. | 6.00 | 7-15-2039 | 850,000 | 986,223 | ||
Tippecanoe County School Building Corp. Series B | 6.00 | 7-15-2036 | 1,000,000 | 1,237,363 | ||
Tippecanoe County School Building Corp. Series B | 6.00 | 7-15-2038 | 1,000,000 | 1,218,760 | ||
Tippecanoe County School Building Corp. Series B | 6.00 | 7-15-2041 | 1,750,000 | 2,105,113 | ||
Tippecanoe County School Building Corp. Series B | 6.00 | 1-15-2043 | 1,000,000 | 1,195,826 | ||
17,955,201 | ||||||
Industrial development revenue: 0.20% | ||||||
City of Valparaiso Pratt Paper LLC AMT | 5.88 | 1-1-2024 | 100,000 | 100,615 | ||
Indiana Finance Authority East End Crossing Partners LLC Series A | 5.00 | 7-1-2040 | 2,720,000 | 2,720,000 | ||
Indiana Finance Authority East End Crossing Partners LLC Series A | 5.00 | 7-1-2048 | 10,000,000 | 10,000,000 | ||
12,820,615 | ||||||
Miscellaneous revenue: 0.36% | ||||||
Carmel Local Public Improvement Bond Bank Series 2016 | 5.00 | 7-15-2031 | 6,000,000 | 6,287,024 | ||
Indianapolis Local Public Improvement Bond Bank Series A (AGM Insured) | 4.00 | 6-1-2039 | 10,535,000 | 10,444,114 | ||
The accompanying notes are an integral part of these consolidated financial statements.
32 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue (continued) | ||||||
Indianapolis Local Public Improvement Bond Bank Series A (AGM Insured) | 4.00 % | 6-1-2041 | $ | 3,000,000 | $2,959,098 | |
Indianapolis Local Public Improvement Bond Bank Series B | 5.25 | 2-1-2048 | 3,000,000 | 3,335,344 | ||
23,025,580 | ||||||
Tax revenue: 0.07% | ||||||
Indianapolis Local Public Improvement Bond Bank Community Justice Campus Courthouse & Jail Project Series A | 5.00 | 2-1-2049 | 4,000,000 | 4,204,739 | ||
Utilities revenue: 0.17% | ||||||
Indiana Finance Authority Ohio Valley Electric Corp. Series A | 3.00 | 11-1-2030 | 4,650,000 | 4,209,304 | ||
Indiana Finance Authority Ohio Valley Electric Corp. Series A | 4.25 | 11-1-2030 | 3,000,000 | 2,983,998 | ||
Indiana Finance Authority Ohio Valley Electric Corp. Series C | 3.00 | 11-1-2030 | 4,000,000 | 3,620,906 | ||
10,814,208 | ||||||
Water & sewer revenue: 0.14% | ||||||
City of Fishers Sewage Works Revenue (BAM Insured) | 4.00 | 7-1-2043 | 3,450,000 | 3,430,716 | ||
City of Fishers Sewage Works Revenue (BAM Insured) | 4.00 | 7-1-2045 | 3,160,000 | 3,108,651 | ||
Evansville Waterworks District Series A (BAM Insured) | 5.00 | 7-1-2047 | 2,250,000 | 2,408,257 | ||
8,947,624 | ||||||
118,492,992 | ||||||
Iowa: 0.09% | ||||||
GO revenue: 0.06% | ||||||
City of Cedar Rapids Series A | 4.00 | 6-1-2048 | 3,630,000 | 3,498,219 | ||
Housing revenue: 0.03% | ||||||
City of Altoona Series C | 5.00 | 6-1-2031 | 1,805,000 | 1,891,211 | ||
5,389,430 | ||||||
Kansas: 0.29% | ||||||
GO revenue: 0.09% | ||||||
Johnson County Unified School District No. 512 Shawnee Mission Series A | 4.00 | 10-1-2043 | 3,000,000 | 2,966,894 | ||
Wyandotte County Unified School District No. 203 Piper Series A (AGM Insured) | 5.25 | 9-1-2052 | 2,500,000 | 2,740,240 | ||
5,707,134 | ||||||
Health revenue: 0.01% | ||||||
University of Kansas Hospital Authority Health System Obligated Group (U.S. Bank N.A. LOC)ø | 3.85 | 9-1-2034 | 780,000 | 780,000 | ||
Tax revenue: 0.19% | ||||||
Wyandotte County-Kansas City Unified Government Sales Tax Revenue Sales Tax Revenue CAB144A¤ | 0.00 | 9-1-2034 | 31,575,000 | 12,176,466 | ||
18,663,600 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 33
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Kentucky: 1.64% | ||||||
Education revenue: 0.07% | ||||||
County of Boyle Centre College of Kentucky Series A | 5.25 % | 6-1-2049 | $ | 2,550,000 | $2,714,644 | |
Kentucky Bond Development Corp. Centre College of Kentucky | 4.00 | 6-1-2046 | 800,000 | 740,111 | ||
Kentucky Bond Development Corp. Centre College of Kentucky | 4.00 | 6-1-2051 | 1,250,000 | 1,131,924 | ||
4,586,679 | ||||||
Health revenue: 0.24% | ||||||
Kentucky EDFA Baptist Healthcare System Obligated Group Series B | 5.00 | 8-15-2046 | 2,070,000 | 2,117,006 | ||
Kentucky EDFA Norton Healthcare Obligated Group Series B CAB (NPFGC Insured)¤ | 0.00 | 10-1-2024 | 9,260,000 | 8,818,904 | ||
Kentucky EDFA Norton Healthcare Obligated Group Series B CAB (NPFGC Insured)¤ | 0.00 | 10-1-2028 | 5,140,000 | 4,225,229 | ||
15,161,139 | ||||||
Housing revenue: 0.19% | ||||||
Fayette County School District Finance Corp. Series A | 4.00 | 5-1-2038 | 5,600,000 | 5,607,324 | ||
Kentucky State Property & Building Commission Project No. 124 Series A (AGM Insured) | 5.00 | 11-1-2039 | 6,000,000 | 6,549,791 | ||
12,157,115 | ||||||
Miscellaneous revenue: 0.04% | ||||||
Kentucky State University (BAM Insured) | 4.00 | 11-1-2046 | 640,000 | 630,101 | ||
Kentucky State University (BAM Insured) | 4.00 | 11-1-2051 | 1,000,000 | 968,184 | ||
Kentucky State University (BAM Insured) | 4.00 | 11-1-2056 | 1,000,000 | 960,338 | ||
2,558,623 | ||||||
Tax revenue: 0.09% | ||||||
Tender Option Bond Trust Receipts/Certificates Series 2018- XG0161 (Bank of America NA LOC, AGM Insured, Bank of America NA LIQ)144Aø | 4.04 | 12-1-2041 | 5,460,000 | 5,460,000 | ||
Transportation revenue: 0.14% | ||||||
Kentucky Public Transportation Infrastructure Authority Series B CAB¤ | 0.00 | 7-1-2030 | 2,000,000 | 1,428,228 | ||
Kentucky Public Transportation Infrastructure Authority Series B CAB¤ | 0.00 | 7-1-2031 | 2,780,000 | 1,846,042 | ||
Kentucky Public Transportation Infrastructure Authority Series B CAB¤ | 0.00 | 7-1-2032 | 2,500,000 | 1,543,493 | ||
Kentucky Public Transportation Infrastructure Authority Series C CAB | 6.40 | 7-1-2033 | 1,000,000 | 1,152,037 | ||
Kentucky Public Transportation Infrastructure Authority Series C CAB | 6.45 | 7-1-2034 | 2,505,000 | 2,881,698 | ||
8,851,498 | ||||||
Utilities revenue: 0.87% | ||||||
Kentucky Public Energy Authority Series Aøø | 4.00 | 4-1-2048 | 8,190,000 | 8,182,671 | ||
Kentucky Public Energy Authority Series A-1øø | 4.00 | 12-1-2049 | 18,455,000 | 18,365,292 | ||
The accompanying notes are an integral part of these consolidated financial statements.
34 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue (continued) | ||||||
Kentucky Public Energy Authority Series Bøø | 4.00 % | 1-1-2049 | $ | 23,250,000 | $23,247,728 | |
Kentucky Public Energy Authority Series C-1øø | 4.00 | 12-1-2049 | 5,385,000 | 5,359,797 | ||
55,155,488 | ||||||
103,930,542 | ||||||
Louisiana: 1.15% | ||||||
Airport revenue: 0.30% | ||||||
New Orleans Aviation Board Louis Armstrong New Orleans International Airport Series A | 5.00 | 1-1-2040 | 3,000,000 | 3,040,882 | ||
New Orleans Aviation Board Louis Armstrong New Orleans International Airport Series B AMT | 5.00 | 1-1-2034 | 4,500,000 | 4,563,137 | ||
New Orleans Aviation Board Louis Armstrong New Orleans International Airport Series B AMT | 5.00 | 1-1-2048 | 1,145,000 | 1,160,074 | ||
New Orleans Aviation Board Louis Armstrong New Orleans International Airport Series B AMT (AGM Insured) | 5.00 | 1-1-2033 | 3,000,000 | 3,048,689 | ||
New Orleans Aviation Board Louis Armstrong New Orleans International Airport Customer Facility Charge Revenue (AGM Insured) | 5.00 | 1-1-2036 | 1,750,000 | 1,846,009 | ||
New Orleans Aviation Board Louis Armstrong New Orleans International Airport Customer Facility Charge Revenue (AGM Insured) | 5.00 | 1-1-2037 | 1,750,000 | 1,836,586 | ||
New Orleans Aviation Board Louis Armstrong New Orleans International Airport Customer Facility Charge Revenue (AGM Insured) | 5.00 | 1-1-2038 | 1,500,000 | 1,587,840 | ||
Port New Orleans Board of Commissioners Series E AMT | 5.00 | 4-1-2040 | 2,000,000 | 2,053,078 | ||
19,136,295 | ||||||
GO revenue: 0.03% | ||||||
City of New Orleans Series A | 5.00 | 12-1-2046 | 2,000,000 | 2,104,881 | ||
Industrial development revenue: 0.02% | ||||||
Calcasieu Parish Industrial Development Board, Inc. (JPMorgan Chase Bank N.A. LOC) HydroServe Westlake LLCø | 4.30 | 6-1-2025 | 1,500,000 | 1,500,000 | ||
Miscellaneous revenue: 0.03% | ||||||
Louisiana Local Government Environmental Facilities & CDA Parish of Jefferson LA144A | 4.00 | 11-1-2044 | 1,830,000 | 1,647,149 | ||
Tax revenue: 0.60% | ||||||
Ernest N Morial New Orleans Exhibition Hall Authority | 5.25 | 7-15-2048 | 10,000,000 | 10,880,033 | ||
Ernest N Morial New Orleans Exhibition Hall Authority | 5.50 | 7-15-2053 | 5,000,000 | 5,527,454 | ||
Louisiana Stadium & Exposition District Series A | 5.25 | 7-1-2053 | 20,000,000 | 21,715,896 | ||
38,123,383 | ||||||
Water & sewer revenue: 0.17% | ||||||
City of New Orleans Sewerage Service Revenue Series B | 4.00 | 6-1-2050 | 1,200,000 | 1,096,431 | ||
City of New Orleans Sewerage Service Revenue Series B | 5.00 | 6-1-2045 | 1,500,000 | 1,575,658 | ||
City of New Orleans Sewerage Service Revenue Series B (AGM Insured) | 4.00 | 6-1-2038 | 350,000 | 349,274 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 35
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Water & sewer revenue (continued) | ||||||
City of New Orleans Sewerage Service Revenue Series B (AGM Insured) | 4.00 % | 6-1-2039 | $ | 400,000 | $398,870 | |
City of New Orleans Sewerage Service Revenue Series B (AGM Insured) | 4.00 | 6-1-2040 | 350,000 | 347,757 | ||
City of Shreveport Water & Sewer Revenue Series B (AGM Insured) | 4.00 | 12-1-2036 | 730,000 | 724,864 | ||
City of Shreveport Water & Sewer Revenue Series B (AGM Insured) | 4.00 | 12-1-2044 | 1,000,000 | 965,020 | ||
East Baton Rouge Sewerage Commission Series Aøø | 1.30 | 2-1-2041 | 6,075,000 | 5,147,387 | ||
10,605,261 | ||||||
73,116,969 | ||||||
Maine: 0.17% | ||||||
Health revenue: 0.17% | ||||||
Maine Health & Higher Educational Facilities Authority | 5.00 | 7-1-2028 | 1,445,000 | 1,534,921 | ||
Maine Health & Higher Educational Facilities Authority Series A | 4.00 | 7-1-2040 | 1,700,000 | 1,659,543 | ||
Maine Health & Higher Educational Facilities Authority Series A | 4.00 | 7-1-2045 | 4,500,000 | 4,265,188 | ||
Maine Health & Higher Educational Facilities Authority Series A | 5.00 | 7-1-2029 | 1,535,000 | 1,679,831 | ||
Maine Health & Higher Educational Facilities Authority Series A (AGM Insured) | 4.00 | 7-1-2046 | 500,000 | 473,402 | ||
Maine Health & Higher Educational Facilities Authority Series A (AGM Insured) | 4.00 | 7-1-2050 | 1,000,000 | 920,813 | ||
10,533,698 | ||||||
Maryland: 0.50% | ||||||
Education revenue: 0.27% | ||||||
County of Prince George’s Chesapeake Lighthouse Charter School Obligated Group Series A144A | 6.90 | 8-1-2041 | 8,480,000 | 8,710,471 | ||
County of Prince George’s Chesapeake Lighthouse Foundation, Inc. Series A | 5.75 | 8-1-2033 | 1,585,000 | 1,588,780 | ||
County of Prince George’s Chesapeake Lighthouse Foundation, Inc. Series A | 7.00 | 8-1-2046 | 6,085,000 | 6,299,067 | ||
Maryland Economic Development Corp. University Park Phase I & II at Salisbury University | 5.00 | 6-1-2027 | 190,000 | 190,052 | ||
Maryland Economic Development Corp. University Park Phase I & II at Salisbury University | 5.00 | 6-1-2030 | 200,000 | 200,038 | ||
16,988,408 | ||||||
Health revenue: 0.10% | ||||||
County of Montgomery Trinity Health Corp. Obligated Group | 4.00 | 12-1-2044 | 5,000,000 | 4,834,226 | ||
Maryland Health & Higher Educational Facilities Authority Frederick Health, Inc. Obligated Group | 4.00 | 7-1-2045 | 745,000 | 705,117 | ||
Maryland Health & Higher Educational Facilities Authority Frederick Health, Inc. Obligated Group | 4.00 | 7-1-2050 | 850,000 | 784,712 | ||
6,324,055 | ||||||
Housing revenue: 0.05% | ||||||
Maryland Stadium Authority Series A%% | 5.00 | 9-1-2037 | 3,000,000 | 3,395,649 | ||
The accompanying notes are an integral part of these consolidated financial statements.
36 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue: 0.03% | ||||||
Maryland Economic Development Corp. City of Baltimore Port Covington Development District | 4.00 % | 9-1-2050 | $ | 2,500,000 | $2,124,062 | |
Water & sewer revenue: 0.05% | ||||||
City of Baltimore Water Utility Fund Series A | 4.00 | 7-1-2039 | 500,000 | 505,894 | ||
City of Baltimore Water Utility Fund Series A | 4.00 | 7-1-2040 | 500,000 | 504,028 | ||
City of Baltimore Water Utility Fund Series A | 4.00 | 7-1-2045 | 2,000,000 | 1,962,172 | ||
2,972,094 | ||||||
31,804,268 | ||||||
Massachusetts: 2.76% | ||||||
Airport revenue: 0.18% | ||||||
Massachusetts Port Authority Series A AMT | 5.00 | 7-1-2039 | 4,005,000 | 4,309,198 | ||
Massachusetts Port Authority Series A AMT | 5.00 | 7-1-2042 | 2,000,000 | 2,126,861 | ||
Massachusetts Port Authority Series B AMT | 4.00 | 7-1-2046 | 2,965,000 | 2,751,946 | ||
Massachusetts Port Authority Series E AMT | 5.00 | 7-1-2046 | 1,975,000 | 2,071,848 | ||
11,259,853 | ||||||
Education revenue: 0.24% | ||||||
Collegiate Charter School of Lowell | 5.00 | 6-15-2039 | 1,000,000 | 978,472 | ||
Collegiate Charter School of Lowell | 5.00 | 6-15-2049 | 1,750,000 | 1,643,562 | ||
Massachusetts Development Finance Agency Lasell University | 4.00 | 7-1-2045 | 2,400,000 | 1,954,542 | ||
Massachusetts Development Finance Agency Lasell University | 4.00 | 7-1-2050 | 2,750,000 | 2,154,024 | ||
Massachusetts Development Finance Agency Northeastern University | 5.00 | 10-1-2044 | 7,000,000 | 7,800,815 | ||
Massachusetts Development Finance Agency Suffolk University | 4.00 | 7-1-2051 | 1,000,000 | 838,151 | ||
15,369,566 | ||||||
GO revenue: 0.67% | ||||||
Commonwealth of Massachusetts Series A | 5.00 | 3-1-2041 | 7,500,000 | 7,555,696 | ||
Commonwealth of Massachusetts Series E | 5.00 | 11-1-2050 | 15,540,000 | 16,706,947 | ||
Commonwealth of Massachusetts Series E | 5.00 | 11-1-2052 | 5,000,000 | 5,452,186 | ||
Commonwealth of Massachusetts Series E | 5.25 | 9-1-2048 | 1,765,000 | 1,885,658 | ||
Commonwealth of Massachusetts Series F | 5.00 | 11-1-2041 | 5,000,000 | 5,289,096 | ||
Commonwealth of Massachusetts Series J | 4.00 | 12-1-2046 | 5,400,000 | 5,303,877 | ||
42,193,460 | ||||||
Health revenue: 0.54% | ||||||
Massachusetts Development Finance Agency Beth Israel Lahey Health Obligated Group Series F | 5.00 | 8-15-2045 | 4,950,000 | 5,030,815 | ||
Massachusetts Development Finance Agency Boston Medical Center Corp. Obligated Group Series D | 5.00 | 7-1-2044 | 6,000,000 | 6,029,592 | ||
Massachusetts Development Finance Agency Boston Medical Center Corp. Obligated Group Series G | 5.25 | 7-1-2048 | 7,805,000 | 8,241,443 | ||
Massachusetts Development Finance Agency Dana-Farber Cancer Institute Obligated Group Series N | 5.00 | 12-1-2046 | 3,000,000 | 3,069,660 | ||
Massachusetts Development Finance Agency Mass General Brigham, Inc. Series A-2 | 4.00 | 7-1-2040 | 1,000,000 | 986,968 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 37
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
Massachusetts Development Finance Agency Mass General Brigham, Inc. Series A-2 | 4.00 % | 7-1-2041 | $ | 1,200,000 | $1,176,719 | |
Massachusetts Development Finance Agency Mass General Brigham, Inc. Series Q | 5.00 | 7-1-2047 | 6,085,000 | 6,221,405 | ||
Massachusetts Development Finance Agency Tufts Medicine Obligated Group Series C (AGM Insured) | 4.00 | 10-1-2045 | 2,500,000 | 2,396,027 | ||
Massachusetts HEFA Mass General Brigham, Inc. (TD Bank NA LOC)�� | 3.95 | 7-1-2040 | 835,000 | 835,000 | ||
33,987,629 | ||||||
Miscellaneous revenue: 0.16% | ||||||
Massachusetts Bay Transportation Authority Assessment Revenue Series A-2 | 5.00 | 7-1-2052 | 9,450,000 | 10,354,713 | ||
Tax revenue: 0.66% | ||||||
Commonwealth of Massachusetts Transportation Fund Revenue Series A | 5.00 | 6-1-2047 | 6,485,000 | 6,790,187 | ||
Commonwealth of Massachusetts Transportation Fund Revenue Series A | 5.00 | 6-1-2048 | 11,510,000 | 12,155,608 | ||
Commonwealth of Massachusetts Transportation Fund Revenue Series A | 5.00 | 6-1-2049 | 21,500,000 | 22,985,682 | ||
41,931,477 | ||||||
Water & sewer revenue: 0.31% | ||||||
Massachusetts Water Resources Authority Series B (AGM Insured) | 5.25 | 8-1-2038 | 16,000,000 | 19,883,973 | ||
174,980,671 | ||||||
Michigan: 3.03% | ||||||
Airport revenue: 0.14% | ||||||
Wayne County Airport Authority Detroit Metropolitan Wayne County Airport Series B (BAM Insured) | 5.00 | 12-1-2046 | 1,400,000 | 1,470,578 | ||
Wayne County Airport Authority Detroit Metropolitan Wayne County Airport Series B AMT | 5.00 | 12-1-2041 | 1,145,000 | 1,210,582 | ||
Wayne County Airport Authority Detroit Metropolitan Wayne County Airport Series F AMT | 5.00 | 12-1-2029 | 6,000,000 | 6,170,016 | ||
8,851,176 | ||||||
Education revenue: 0.17% | ||||||
Michigan Finance Authority Albion College | 4.00 | 12-1-2041 | 4,750,000 | 4,154,445 | ||
Michigan Finance Authority Bradford Academy | 4.30 | 9-1-2030 | 1,065,000 | 961,420 | ||
Michigan Finance Authority Bradford Academy | 4.80 | 9-1-2040 | 1,205,000 | 1,002,576 | ||
Michigan Finance Authority Bradford Academy | 5.00 | 9-1-2050 | 4,530,000 | 3,610,144 | ||
Michigan Public Educational Facilities Authority Crescent Academy | 7.00 | 10-1-2036 | 1,032,500 | 1,032,857 | ||
10,761,442 | ||||||
Health revenue: 0.35% | ||||||
Kentwood Economic Development Corp. Holland Home Obligated Group Series 2021 | 4.00 | 11-15-2045 | 750,000 | 563,598 | ||
The accompanying notes are an integral part of these consolidated financial statements.
38 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
Kentwood Economic Development Corp. Holland Home Obligated Group Series 2022 | 4.00 % | 11-15-2031 | $ | 1,000,000 | $914,320 | |
Michigan Finance Authority Corewell Health Obligated Group Series A | 5.00 | 11-1-2044 | 4,000,000 | 4,061,288 | ||
Michigan Finance Authority Sparrow Health Obligated Group | 5.00 | 11-15-2045 | 8,000,000 | 8,162,793 | ||
Michigan Finance Authority Trinity Health Corp. Obligated Group Series 2016-MI | 5.00 | 12-1-2034 | 8,055,000 | 8,429,842 | ||
22,131,841 | ||||||
Housing revenue: 0.66% | ||||||
Michigan Finance Authority Detroit Regional Convention Facility Authority Series H-1 | 5.00 | 10-1-2031 | 1,340,000 | 1,357,115 | ||
Michigan Finance Authority Detroit Regional Convention Facility Authority Series H-1 | 5.00 | 10-1-2032 | 2,000,000 | 2,024,335 | ||
Michigan Finance Authority Detroit Regional Convention Facility Authority Series H-1 | 5.00 | 10-1-2033 | 2,975,000 | 3,010,480 | ||
Michigan Finance Authority Detroit Regional Convention Facility Authority Series H-1 | 5.00 | 10-1-2034 | 6,615,000 | 6,697,090 | ||
Michigan Finance Authority Detroit Regional Convention Facility Authority Series H-1 | 5.00 | 10-1-2039 | 7,955,000 | 8,034,506 | ||
Michigan Municipal Bond Authority Michigan Finance Authority Series B (Ambac Insured) | 5.25 | 12-1-2023 | 920,000 | 920,409 | ||
Michigan Municipal Bond Authority Michigan Finance Authority Series C (Ambac Insured) | 4.75 | 5-1-2027 | 4,610,000 | 4,660,657 | ||
Michigan State Building Authority Series I | 5.00 | 4-15-2041 | 13,000,000 | 13,543,315 | ||
Michigan State Housing Development Authority Series Cø | 3.95 | 12-1-2035 | 1,815,000 | 1,815,000 | ||
42,062,907 | ||||||
Miscellaneous revenue: 0.59% | ||||||
Michigan Finance Authority City of Detroit Income Tax Revenue Series F1 | 4.50 | 10-1-2029 | 7,000,000 | 6,996,529 | ||
Michigan Finance Authority County of Wayne | 4.00 | 11-1-2048 | 6,000,000 | 5,684,372 | ||
Michigan Finance Authority Detroit Public Lighting Authority Utility Users Tax Revenue Series B | 5.00 | 7-1-2039 | 7,895,000 | 7,905,026 | ||
Michigan Finance Authority Detroit Public Lighting Authority Utility Users Tax Revenue Series B | 5.00 | 7-1-2044 | 16,845,000 | 16,850,205 | ||
37,436,132 | ||||||
Tax revenue: 0.17% | ||||||
Detroit Downtown Development Authority Catalyst Development Area Series A (AGM Insured) | 5.00 | 7-1-2043 | 4,975,000 | 4,999,514 | ||
Detroit Downtown Development Authority Catalyst Development Area Series A (AGM Insured) | 5.00 | 7-1-2048 | 6,000,000 | 6,027,837 | ||
11,027,351 | ||||||
Water & sewer revenue: 0.95% | ||||||
Great Lakes Water Authority Sewage Disposal System Revenue Series C | 5.00 | 7-1-2036 | 8,500,000 | 8,874,241 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 39
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Water & sewer revenue (continued) | ||||||
Great Lakes Water Authority Water Supply System Revenue Series D | 4.00 % | 7-1-2032 | $ | 11,000,000 | $11,244,333 | |
Great Lakes Water Authority Water Supply System Revenue Series D (AGM Insured) | 4.00 | 7-1-2033 | 11,000,000 | 11,272,283 | ||
Michigan Finance Authority Great Lakes Water Authority Sewage Disposal System Revenue Series C | 5.00 | 7-1-2035 | 2,000,000 | 2,044,357 | ||
Michigan Finance Authority Great Lakes Water Authority Sewage Disposal System Revenue Series C-7 (NPFGC Insured) | 5.00 | 7-1-2025 | 2,000,000 | 2,027,715 | ||
Michigan Finance Authority Great Lakes Water Authority Sewage Disposal System Revenue Series C-7 (NPFGC Insured) | 5.00 | 7-1-2026 | 1,945,000 | 1,973,213 | ||
Michigan Finance Authority Great Lakes Water Authority Sewage Disposal System Revenue Series C-7 (NPFGC Insured) | 5.00 | 7-1-2027 | 2,260,000 | 2,294,545 | ||
Michigan Finance Authority Great Lakes Water Authority Sewage Disposal System Revenue Series C-7 (NPFGC Insured) | 5.00 | 7-1-2028 | 3,480,000 | 3,533,873 | ||
Michigan Finance Authority Great Lakes Water Authority Sewage Disposal System Revenue Series C-7 (NPFGC Insured) | 5.00 | 7-1-2032 | 5,750,000 | 5,835,089 | ||
Michigan Finance Authority Great Lakes Water Authority Water Supply System Revenue Series D4 | 5.00 | 7-1-2031 | 6,500,000 | 6,587,324 | ||
Michigan Finance Authority Great Lakes Water Authority Water Supply System Revenue Series D6 (NPFGC Insured) | 5.00 | 7-1-2027 | 1,000,000 | 1,015,286 | ||
Michigan Finance Authority Great Lakes Water Authority Water Supply System Revenue Series D6 (NPFGC Insured) | 5.00 | 7-1-2036 | 3,250,000 | 3,282,938 | ||
59,985,197 | ||||||
192,256,046 | ||||||
Minnesota: 0.48% | ||||||
GO revenue: 0.02% | ||||||
County of Hennepin Series A | 5.00 | 12-1-2037 | 1,000,000 | 1,077,893 | ||
Shakopee Independent School District No. 720 Series A | 4.00 | 2-1-2030 | 225,000 | 233,100 | ||
Shakopee Independent School District No. 720 Series A | 4.00 | 2-1-2032 | 240,000 | 249,280 | ||
1,560,273 | ||||||
Health revenue: 0.25% | ||||||
City of Minneapolis Fairview Health Services Obligated Group Series A | 4.00 | 11-15-2048 | 2,315,000 | 2,040,155 | ||
City of Shakopee Senior Housing Revenue Benedictine Living Community of Shakopee LLC144Aøø | 5.85 | 11-1-2058 | 13,890,000 | 13,670,474 | ||
15,710,629 | ||||||
Housing revenue: 0.15% | ||||||
Minnesota Housing Finance Agency Series G AMT (GNMA / FNMA / FHLMC Insured)ø | 3.98 | 1-1-2034 | 2,000,000 | 2,000,000 | ||
Minnesota Housing Finance Agency Series H (GNMA / FNMA / FHLMC Insured)ø | 4.56 | 7-1-2041 | 7,205,000 | 7,204,603 | ||
9,204,603 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
40 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue: 0.06% | ||||||
City of Rochester Electric Utility Revenue Series A | 5.00 % | 12-1-2042 | $ | 3,895,000 | $4,025,588 | |
30,501,093 | ||||||
Mississippi: 0.11% | ||||||
Miscellaneous revenue: 0.11% | ||||||
Mississippi Development Bank City of Jackson Water & Sewer System Revenue (AGM Insured) | 5.00 | 9-1-2030 | 6,830,000 | 6,837,537 | ||
Missouri: 0.75% | ||||||
GO revenue: 0.14% | ||||||
Liberty Public School District No. 53 | 4.00 | 3-1-2043 | 4,050,000 | 4,025,095 | ||
St. Louis School District Direct Deposit Program | 4.00 | 4-1-2030 | 4,840,000 | 4,959,717 | ||
8,984,812 | ||||||
Housing revenue: 0.19% | ||||||
Missouri Public Utilities Commission | 0.75 | 8-1-2023 | 12,000,000 | 11,965,944 | ||
Miscellaneous revenue: 0.42% | ||||||
Kansas City IDA Series B AMT (AGM Insured) | 5.00 | 3-1-2049 | 23,075,000 | 23,717,724 | ||
Kansas City IDA Airport Revenue Series B AMT | 5.00 | 3-1-2037 | 3,000,000 | 3,156,238 | ||
26,873,962 | ||||||
47,824,718 | ||||||
Nebraska: 0.12% | ||||||
Health revenue: 0.02% | ||||||
Douglas County Hospital Authority No. 2 Children’s Hospital Obligated Group Series A | 4.00 | 11-15-2040 | 1,150,000 | 1,122,180 | ||
Utilities revenue: 0.10% | ||||||
Central Plains Energy Project No. 3 Series A | 5.00 | 9-1-2033 | 6,000,000 | 6,463,433 | ||
7,585,613 | ||||||
Nevada: 1.98% | ||||||
GO revenue: 1.74% | ||||||
City of Henderson Series A-1 | 4.00 | 6-1-2045 | 9,140,000 | 9,144,575 | ||
City of Henderson Series B-1 | 4.00 | 6-1-2039 | 4,060,000 | 4,095,531 | ||
City of Henderson Series B-1 | 4.00 | 6-1-2040 | 3,340,000 | 3,353,422 | ||
City of Las Vegas Series A | 4.00 | 2-1-2038 | 1,335,000 | 1,356,285 | ||
Clark County School District Series A (AGM Insured) | 4.00 | 6-15-2035 | 9,585,000 | 9,727,008 | ||
Clark County School District Series A (AGM Insured) | 4.00 | 6-15-2036 | 850,000 | 867,348 | ||
Clark County School District Series A (AGM Insured) | 4.00 | 6-15-2037 | 900,000 | 910,924 | ||
Clark County School District Series A (AGM Insured) | 4.00 | 6-15-2038 | 850,000 | 856,601 | ||
Clark County School District Series A (AGM Insured) | 4.00 | 6-15-2039 | 1,000,000 | 1,003,341 | ||
Clark County School District Series A (AGM Insured) | 5.00 | 6-15-2030 | 875,000 | 992,923 | ||
Clark County School District Series A (AGM Insured) | 5.00 | 6-15-2032 | 900,000 | 1,020,597 | ||
Clark County School District Series A (AGM Insured) | 5.00 | 6-15-2033 | 825,000 | 934,645 | ||
Clark County School District Series A (AGM Insured) | 5.00 | 6-15-2034 | 950,000 | 1,073,294 | ||
Clark County School District Series A (AGM Insured) | 5.00 | 6-15-2035 | 1,000,000 | 1,121,575 | ||
County of Clark Series A | 5.00 | 6-1-2043 | 9,360,000 | 9,913,802 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 41
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
County of Clark Series A | 5.00 % | 5-1-2048 | $ | 50,215,000 | $52,847,587 | |
County of Clark Series C | 4.00 | 7-1-2032 | 6,000,000 | 6,199,010 | ||
Las Vegas Valley Water District Series A | 4.00 | 6-1-2034 | 4,600,000 | 4,914,998 | ||
110,333,466 | ||||||
Industrial development revenue: 0.01% | ||||||
County of Clark Southern California Edison Co. | 2.10 | 6-1-2031 | 1,250,000 | 1,043,906 | ||
Miscellaneous revenue: 0.00% | ||||||
City of Las Vegas Special Improvement District No. 607 | 5.00 | 6-1-2024 | 30,000 | 30,306 | ||
Tax revenue: 0.23% | ||||||
County of Clark Regional Transportation Commission of Southern Nevada Motor Fuel Tax Revenue (AGM Insured) | 4.00 | 7-1-2040 | 10,030,000 | 10,067,642 | ||
County of Clark Sales & Excise Tax Revenue | 4.00 | 7-1-2043 | 4,500,000 | 4,457,016 | ||
14,524,658 | ||||||
125,932,336 | ||||||
New Hampshire: 0.49% | ||||||
Education revenue: 0.27% | ||||||
New Hampshire Business Finance Authority University of Nevada Reno Series A (BAM Insured) | 5.25 | 6-1-2051 | 10,000,000 | 10,783,500 | ||
New Hampshire Health & Education Facilities Authority Act University System (BAM Insured) | 5.25 | 7-1-2048 | 5,860,000 | 6,474,992 | ||
17,258,492 | ||||||
Health revenue: 0.12% | ||||||
New Hampshire Health & Education Facilities Authority Act Concord Hospital Obligated Group | 5.00 | 10-1-2047 | 5,000,000 | 5,109,874 | ||
New Hampshire Health & Education Facilities Authority Act Dartmouth-Hitchcock Obligated Group Series A | 5.00 | 8-1-2036 | 2,660,000 | 2,782,760 | ||
7,892,634 | ||||||
Housing revenue: 0.10% | ||||||
New Hampshire Business Finance Authority Series 1A | 4.13 | 1-20-2034 | 6,173,178 | 6,020,749 | ||
31,171,875 | ||||||
New Jersey: 3.17% | ||||||
Airport revenue: 0.02% | ||||||
South Jersey Port Corp. Series S | 5.00 | 1-1-2039 | 1,350,000 | 1,369,011 | ||
Education revenue: 0.01% | ||||||
Atlantic County Improvement Authority Stockton University Series A (AGM Insured) | 4.00 | 7-1-2047 | 750,000 | 716,098 | ||
GO revenue: 0.30% | ||||||
City of Bayonne (AGM Insured) | 5.00 | 7-15-2023 | 2,505,000 | 2,506,091 | ||
City of Newark Series A | 5.00 | 7-15-2025 | 5,000,000 | 5,146,984 | ||
City of Newark Series A | 5.00 | 7-15-2026 | 2,205,000 | 2,270,675 | ||
The accompanying notes are an integral part of these consolidated financial statements.
42 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
City of Newark Series A | 5.00 % | 7-15-2027 | $ | 6,035,000 | $6,216,754 | |
City of Newark Series A | 5.25 | 7-15-2024 | 1,325,000 | 1,348,437 | ||
City of Newark Series B | 5.00 | 7-15-2025 | 385,000 | 396,318 | ||
City of Newark Series B | 5.00 | 7-15-2026 | 395,000 | 406,765 | ||
City of Newark Series B | 5.00 | 7-15-2027 | 405,000 | 417,197 | ||
City of Newark Series B | 5.25 | 7-15-2024 | 375,000 | 381,633 | ||
19,090,854 | ||||||
Housing revenue: 1.63% | ||||||
Garden State Preservation Trust Series A (AGM Insured) | 5.75 | 11-1-2028 | 15,000,000 | 16,291,353 | ||
New Jersey EDA Motor Vehicle Surcharge Revenue Series A | 3.13 | 7-1-2029 | 2,620,000 | 2,501,000 | ||
New Jersey EDA New Jersey Transit Corp. Series A | 5.00 | 11-1-2038 | 5,000,000 | 5,427,686 | ||
New Jersey EDA New Jersey Transit Corp. Series A | 5.25 | 11-1-2041 | 3,000,000 | 3,290,678 | ||
New Jersey Educational Facilities Authority State of New Jersey Department of the Treasury | 5.00 | 6-15-2025 | 5,830,000 | 5,914,572 | ||
New Jersey TTFA Series A¤ | 0.00 | 12-15-2026 | 1,150,000 | 1,017,283 | ||
New Jersey TTFA Series A¤ | 0.00 | 12-15-2028 | 10,100,000 | 8,319,546 | ||
New Jersey TTFA Series A¤ | 0.00 | 12-15-2029 | 11,875,000 | 9,402,980 | ||
New Jersey TTFA Series A¤ | 0.00 | 12-15-2030 | 8,000,000 | 6,069,463 | ||
New Jersey TTFA Series A¤ | 0.00 | 12-15-2031 | 4,500,000 | 3,274,644 | ||
New Jersey TTFA Series A¤ | 0.00 | 12-15-2039 | 10,000,000 | 4,875,692 | ||
New Jersey TTFA Series A | 5.00 | 12-15-2036 | 1,500,000 | 1,588,853 | ||
New Jersey TTFA Series AA | 5.00 | 6-15-2036 | 2,070,000 | 2,070,000 | ||
New Jersey TTFA Series AA | 5.00 | 6-15-2038 | 2,000,000 | 2,165,331 | ||
New Jersey TTFA Series AA | 5.00 | 6-15-2044 | 1,000,000 | 1,005,493 | ||
New Jersey TTFA Series AA | 5.25 | 6-15-2033 | 10,000,000 | 10,000,000 | ||
New Jersey TTFA Series C | 5.25 | 6-15-2032 | 8,000,000 | 8,220,566 | ||
New Jersey TTFA Series CC | 5.25 | 6-15-2046 | 6,000,000 | 6,550,893 | ||
New Jersey TTFA Series CC | 5.50 | 6-15-2050 | 5,000,000 | 5,525,300 | ||
103,511,333 | ||||||
Industrial development revenue: 0.09% | ||||||
New Jersey EDA United Airlines, Inc. | 5.25 | 9-15-2029 | 5,960,000 | 5,975,096 | ||
Miscellaneous revenue: 0.54% | ||||||
New Jersey TTFA Series A | 4.25 | 6-15-2040 | 4,375,000 | 4,393,502 | ||
New Jersey TTFA Series A (NPFGC Insured) | 5.75 | 6-15-2025 | 10,000,000 | 10,412,716 | ||
Newark Housing Authority Port Authority of New York & New Jersey (NPFGC Insured) | 5.00 | 1-1-2032 | 7,620,000 | 8,224,424 | ||
Newark Housing Authority Port Authority of New York & New Jersey (NPFGC Insured) | 5.25 | 1-1-2024 | 1,225,000 | 1,229,367 | ||
Union County Utilities Authority Covanta Union LLC Series A AMT | 5.25 | 12-1-2031 | 9,715,000 | 9,725,758 | ||
33,985,767 | ||||||
Tax revenue: 0.14% | ||||||
New Jersey TTFA Series AA | 4.00 | 6-15-2045 | 2,195,000 | 2,098,492 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 43
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue (continued) | ||||||
New Jersey TTFA Series AA | 5.00 % | 6-15-2039 | $ | 3,000,000 | $3,206,132 | |
New Jersey TTFA Series AA | 5.00 | 6-15-2045 | 3,500,000 | 3,702,158 | ||
9,006,782 | ||||||
Transportation revenue: 0.44% | ||||||
New Jersey Turnpike Authority Series A | 4.00 | 1-1-2042 | 16,405,000 | 16,445,059 | ||
New Jersey Turnpike Authority Series A | 4.00 | 1-1-2043 | 8,890,000 | 8,908,257 | ||
South Jersey Transportation Authority Series A | 5.00 | 11-1-2041 | 1,000,000 | 1,056,058 | ||
South Jersey Transportation Authority Series A | 5.25 | 11-1-2052 | 1,500,000 | 1,586,404 | ||
27,995,778 | ||||||
201,650,719 | ||||||
New Mexico: 0.25% | ||||||
Industrial development revenue: 0.16% | ||||||
City of Farmington Southern California Edison Co. | 1.80 | 4-1-2029 | 5,000,000 | 4,296,940 | ||
City of Farmington Southern California Edison Co. Series B | 1.80 | 4-1-2029 | 7,000,000 | 6,015,715 | ||
10,312,655 | ||||||
Utilities revenue: 0.09% | ||||||
New Mexico Municipal Energy Acquisition Authority Series A (Royal Bank of Canada LIQ)øø | 5.00 | 11-1-2039 | 5,140,000 | 5,249,493 | ||
15,562,148 | ||||||
New York: 11.37% | ||||||
Airport revenue: 1.07% | ||||||
New York Transportation Development Corp. JFK International Air Terminal LLC AMT | 5.00 | 12-1-2037 | 2,000,000 | 2,103,441 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC AMT | 5.00 | 12-1-2038 | 3,000,000 | 3,145,261 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC AMT | 5.00 | 12-1-2039 | 13,000,000 | 13,568,244 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC AMT | 5.00 | 12-1-2042 | 3,385,000 | 3,490,588 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC Series A AMT | 4.00 | 12-1-2039 | 700,000 | 670,962 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC Series A AMT | 4.00 | 12-1-2040 | 900,000 | 854,693 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC Series A AMT | 5.00 | 12-1-2032 | 1,000,000 | 1,073,050 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC Series A AMT | 5.00 | 12-1-2037 | 700,000 | 729,671 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC Series C | 5.00 | 12-1-2035 | 2,475,000 | 2,682,894 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC Series C | 5.00 | 12-1-2036 | 1,750,000 | 1,882,021 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC Series C | 5.00 | 12-1-2037 | 1,750,000 | 1,869,898 | ||
The accompanying notes are an integral part of these consolidated financial statements.
44 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Airport revenue (continued) | ||||||
New York Transportation Development Corp. Laguardia Gateway Partners LLC Series A AMT | 5.00 % | 7-1-2041 | $ | 3,250,000 | $3,248,299 | |
Port Authority of New York & New Jersey | 5.00 | 9-1-2048 | 2,000,000 | 2,133,774 | ||
Port Authority of New York & New Jersey AMT | 4.00 | 11-1-2041 | 2,275,000 | 2,230,218 | ||
Port Authority of New York & New Jersey Series 193 AMT | 5.00 | 10-15-2028 | 1,760,000 | 1,804,009 | ||
Port Authority of New York & New Jersey Series 205TH | 5.25 | 11-15-2039 | 16,580,000 | 17,871,201 | ||
Port Authority of New York & New Jersey Series 221 AMT | 4.00 | 7-15-2045 | 5,000,000 | 4,814,166 | ||
RBC Municipal Products, Inc. Trust Series G-120 (Royal Bank of Canada LOC, Royal Bank of Canada LIQ)144Aø | 4.07 | 10-1-2029 | 4,000,000 | 4,000,000 | ||
68,172,390 | ||||||
Education revenue: 0.52% | ||||||
Hempstead Town Local Development Corp. Series A | 4.60 | 2-1-2051 | 5,000,000 | 3,697,229 | ||
Hempstead Town Local Development Corp. Academy Charter School Series A | 5.73 | 2-1-2050 | 10,030,000 | 9,607,816 | ||
Hempstead Town Local Development Corp. Evergreen Charter School, Inc. Series A | 5.25 | 6-15-2042 | 6,085,000 | 6,063,103 | ||
New York State Dormitory Authority Barnard College Series A | 4.00 | 7-1-2045 | 1,270,000 | 1,155,304 | ||
New York State Dormitory Authority Barnard College Series A | 4.00 | 7-1-2049 | 1,000,000 | 891,674 | ||
New York State Dormitory Authority Iona College Series 2022 | 5.00 | 7-1-2027 | 335,000 | 350,225 | ||
New York State Dormitory Authority New York University Series A | 5.00 | 7-1-2049 | 4,265,000 | 4,561,204 | ||
New York State Dormitory Authority St. John’s University Series A | 4.00 | 7-1-2048 | 2,000,000 | 1,894,804 | ||
Westchester County Local Development Corp. Pace University Series Bøø | 4.73 | 5-1-2044 | 5,000,000 | 5,000,000 | ||
33,221,359 | ||||||
GO revenue: 1.53% | ||||||
City of New York Series A-1 | 5.25 | 9-1-2042 | 8,750,000 | 9,905,558 | ||
City of New York Series A-1 | 5.25 | 9-1-2043 | 21,165,000 | 23,937,359 | ||
City of New York Series B1 | 5.00 | 10-1-2038 | 2,650,000 | 2,888,561 | ||
City of New York Series C | 4.00 | 8-1-2039 | 3,000,000 | 3,024,314 | ||
City of New York Series D | 5.25 | 5-1-2041 | 6,000,000 | 6,793,613 | ||
City of New York Series D | 5.25 | 5-1-2042 | 1,000,000 | 1,127,959 | ||
City of New York Series E1 | 5.00 | 3-1-2039 | 8,800,000 | 9,379,196 | ||
City of New York Series E1 | 5.25 | 4-1-2047 | 10,000,000 | 11,297,427 | ||
City of New York Series F1 | 5.00 | 3-1-2043 | 4,000,000 | 4,371,545 | ||
City of New York Series F1 | 5.00 | 3-1-2050 | 6,500,000 | 7,020,749 | ||
City of New York Series G4ø | 4.00 | 3-1-2039 | 10,000,000 | 10,000,000 | ||
City of Yonkers Series C (AGM Insured) | 5.00 | 3-15-2036 | 2,000,000 | 2,279,439 | ||
City of Yonkers Series C (AGM Insured) | 5.00 | 3-15-2037 | 1,100,000 | 1,240,543 | ||
City of Yonkers Series C (AGM Insured) | 5.00 | 3-15-2038 | 1,140,000 | 1,273,860 | ||
City of Yonkers Series F (BAM Insured) | 5.00 | 11-15-2040 | 850,000 | 944,731 | ||
City of Yonkers Series F (BAM Insured) | 5.00 | 11-15-2041 | 750,000 | 829,384 | ||
City of Yonkers Series F (BAM Insured) | 5.00 | 11-15-2042 | 1,000,000 | 1,097,261 | ||
97,411,499 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 45
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue: 0.10% | ||||||
New York State Dormitory Authority Catholic Health System Obligated Group Series B (Manufacturers & Traders LOC)ø | 4.24 % | 7-1-2048 | $ | 5,000,000 | $5,000,000 | |
Westchester County Local Development Corp. Purchase Senior Learning Community Obligated Group Series D144A | 2.88 | 7-1-2026 | 1,500,000 | 1,430,154 | ||
6,430,154 | ||||||
Housing revenue: 0.49% | ||||||
New York City Transitional Finance Authority Building Aid Revenue Series S2 | 5.00 | 7-15-2041 | 13,805,000 | 14,183,548 | ||
New York City Transitional Finance Authority Building Aid Revenue Series S3A | 4.00 | 7-15-2038 | 4,500,000 | 4,539,519 | ||
New York State Dormitory Authority Series A (AGM Insured) | 5.00 | 10-1-2034 | 5,000 | 5,552 | ||
New York State Thruway Authority State of New York Personal Income Tax Revenue Series A1 | 4.00 | 3-15-2044 | 5,000,000 | 4,925,726 | ||
Yonkers Industrial Development Agency New Community School Project | 5.00 | 5-1-2047 | 5,000,000 | 5,393,796 | ||
Yonkers Industrial Development Agency New Community School Project | 5.25 | 5-1-2051 | 1,600,000 | 1,753,442 | ||
30,801,583 | ||||||
Industrial development revenue: 0.60% | ||||||
Monroe County Industrial Development Corp. CDS Monarch, Inc. (Citizens Bank LOC)ø | 4.06 | 7-1-2027 | 485,000 | 485,000 | ||
New York Liberty Development Corp. One Bryant Park LLC | 2.80 | 9-15-2069 | 1,000,000 | 910,978 | ||
New York Transportation Development Corp. American Airlines, Inc. AMT | 3.00 | 8-1-2031 | 2,000,000 | 1,778,712 | ||
New York Transportation Development Corp. Delta Air Lines, Inc. AMT | 5.00 | 10-1-2035 | 20,000,000 | 20,937,316 | ||
New York Transportation Development Corp. Delta Air Lines, Inc. Series A AMT | 5.00 | 1-1-2032 | 12,000,000 | 12,460,092 | ||
New York Transportation Development Corp. Empire State Thruway Partners LLC AMT | 4.00 | 10-31-2046 | 1,500,000 | 1,319,377 | ||
37,891,475 | ||||||
Miscellaneous revenue: 0.79% | ||||||
New York City Industrial Development Agency Queens Ballpark Co. LLC Series A (AGM Insured) | 5.00 | 1-1-2031 | 1,000,000 | 1,123,680 | ||
New York Liberty Development Corp. Port Authority of New York & New Jersey Series 1 | 4.00 | 2-15-2043 | 4,500,000 | 4,389,390 | ||
New York State Dormitory Authority Series A (AGM Insured) | 5.00 | 10-1-2034 | 1,745,000 | 1,901,912 | ||
New York State Dormitory Authority Series A (AGM Insured) | 5.00 | 10-1-2035 | 1,000,000 | 1,084,060 | ||
Triborough Bridge & Tunnel Authority Metropolitan Transportation Authority Payroll Mobility Tax Revenue Series A | 5.00 | 5-15-2047 | 15,000,000 | 16,349,911 | ||
Triborough Bridge & Tunnel Authority Metropolitan Transportation Authority Payroll Mobility Tax Revenue Series A-1 | 4.00 | 5-15-2046 | 1,250,000 | 1,224,419 | ||
Triborough Bridge & Tunnel Authority Metropolitan Transportation Authority Payroll Mobility Tax Revenue Series B | 5.00 | 5-15-2039 | 10,240,000 | 11,503,844 | ||
Triborough Bridge & Tunnel Authority Metropolitan Transportation Authority Payroll Mobility Tax Revenue Series C | 5.00 | 5-15-2047 | 8,000,000 | 8,719,953 | ||
The accompanying notes are an integral part of these consolidated financial statements.
46 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue (continued) | ||||||
Triborough Bridge & Tunnel Authority Metropolitan Transportation Authority Payroll Mobility Tax Revenue Series C1A | 4.00 % | 5-15-2042 | $ | 2,250,000 | $2,227,154 | |
Western Regional Off-Track Betting Corp.144A | 4.13 | 12-1-2041 | 2,400,000 | 1,810,066 | ||
50,334,389 | ||||||
Tax revenue: 2.96% | ||||||
New York City Transitional Finance Authority Building Aid Revenue Series S1 | 5.00 | 7-15-2040 | 3,155,000 | 3,221,459 | ||
New York City Transitional Finance Authority Future Tax Secured Revenue Series A1 | 4.00 | 8-1-2041 | 1,900,000 | 1,891,685 | ||
New York City Transitional Finance Authority Future Tax Secured Revenue Series A-1 | 5.00 | 8-1-2031 | 17,075,000 | 17,381,691 | ||
New York City Transitional Finance Authority Future Tax Secured Revenue Series A2 | 5.00 | 5-1-2038 | 5,000,000 | 5,422,908 | ||
New York City Transitional Finance Authority Future Tax Secured Revenue Series A-2 | 5.00 | 8-1-2037 | 12,140,000 | 12,910,431 | ||
New York City Transitional Finance Authority Future Tax Secured Revenue Series B-1 | 4.00 | 8-1-2041 | 5,580,000 | 5,555,579 | ||
New York City Transitional Finance Authority Future Tax Secured Revenue Series C-1 | 4.00 | 5-1-2044 | 6,500,000 | 6,421,014 | ||
New York City Transitional Finance Authority Future Tax Secured Revenue Series C-3 | 4.00 | 5-1-2043 | 2,335,000 | 2,309,586 | ||
New York City Transitional Finance Authority Future Tax Secured Revenue Series C-3 | 4.00 | 5-1-2044 | 10,710,000 | 10,579,855 | ||
New York City Transitional Finance Authority Future Tax Secured Revenue Series DS | 4.00 | 11-1-2035 | 5,000,000 | 5,228,472 | ||
New York City Transitional Finance Authority Future Tax Secured Revenue Series E1 | 4.00 | 2-1-2038 | 4,000,000 | 4,076,882 | ||
New York City Transitional Finance Authority Future Tax Secured Revenue Series F1 | 5.00 | 5-1-2042 | 2,390,000 | 2,510,341 | ||
New York State Dormitory Authority Personal Income Tax Revenue Series A | 4.00 | 3-15-2046 | 11,300,000 | 11,069,682 | ||
New York State Dormitory Authority Personal Income Tax Revenue Series A | 5.00 | 3-15-2043 | 6,750,000 | 7,239,383 | ||
New York State Dormitory Authority Personal Income Tax Revenue Series B | 5.00 | 2-15-2045 | 7,330,000 | 7,443,572 | ||
New York State Dormitory Authority Personal Income Tax Revenue Series D | 4.00 | 2-15-2039 | 5,000,000 | 5,026,918 | ||
New York State Dormitory Authority Personal Income Tax Revenue Series D | 5.00 | 2-15-2048 | 12,500,000 | 13,348,699 | ||
New York State Dormitory Authority Personal Income Tax Revenue Series E | 4.00 | 3-15-2042 | 6,000,000 | 5,954,909 | ||
New York State Dormitory Authority Personal Income Tax Revenue Series E | 4.00 | 3-15-2044 | 2,700,000 | 2,663,600 | ||
New York State Dormitory Authority Personal Income Tax Revenue Series E | 5.00 | 2-15-2044 | 9,600,000 | 9,753,571 | ||
New York State Dormitory Authority State of New York Personal Income Tax Revenue Series A | 5.00 | 2-15-2034 | 3,790,000 | 4,005,923 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 47
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue (continued) | ||||||
New York State Thruway Authority State of New York Personal Income Tax Revenue Series A | 5.00 % | 3-15-2048 | $ | 10,000,000 | $10,933,765 | |
New York State Urban Development Corp. Personal Income Tax Revenue Series A | 5.00 | 3-15-2042 | 4,075,000 | 4,436,962 | ||
New York State Urban Development Corp. Personal Income Tax Revenue Series C | 5.00 | 3-15-2047 | 8,000,000 | 8,628,178 | ||
New York State Urban Development Corp. State of New York Personal Income Tax Revenue Series A | 5.00 | 3-15-2041 | 3,750,000 | 4,101,309 | ||
New York State Urban Development Corp. State of New York Personal Income Tax Revenue Series C | 4.00 | 3-15-2042 | 8,045,000 | 7,994,971 | ||
New York State Urban Development Corp. State of New York Personal Income Tax Revenue Series E | 4.00 | 3-15-2043 | 8,040,000 | 7,985,141 | ||
188,096,486 | ||||||
Transportation revenue: 1.19% | ||||||
Metropolitan Transportation Authority Series Aøø | 5.00 | 11-15-2048 | 7,300,000 | 7,376,390 | ||
Metropolitan Transportation Authority Series C | 5.00 | 11-15-2040 | 3,425,000 | 3,585,199 | ||
Metropolitan Transportation Authority Series C (AGM Insured) | 5.00 | 11-15-2041 | 9,700,000 | 10,221,699 | ||
Metropolitan Transportation Authority Series C (BAM Insured) | 5.00 | 11-15-2042 | 3,005,000 | 3,155,349 | ||
Metropolitan Transportation Authority Series C1 | 5.00 | 11-15-2035 | 2,000,000 | 2,042,755 | ||
Metropolitan Transportation Authority Series Døø | 5.00 | 11-15-2034 | 5,000,000 | 5,077,395 | ||
Metropolitan Transportation Authority Series G3 (SIFMA Municipal Swap+0.43%)± | 4.44 | 11-1-2031 | 15,000,000 | 14,746,894 | ||
Triborough Bridge & Tunnel Authority Series A | 5.00 | 11-15-2047 | 4,000,000 | 4,357,196 | ||
Triborough Bridge & Tunnel Authority Series A | 5.00 | 11-15-2049 | 7,750,000 | 8,302,603 | ||
Triborough Bridge & Tunnel Authority Series A | 5.50 | 11-15-2057 | 4,000,000 | 4,487,715 | ||
Triborough Bridge & Tunnel Authority Series B2B (State Street Bank & Trust Co. LOC)ø | 4.00 | 1-1-2032 | 12,500,000 | 12,500,000 | ||
75,853,195 | ||||||
Utilities revenue: 0.49% | ||||||
Utility Debt Securitization Authority | 5.00 | 12-15-2032 | 22,785,000 | 23,902,094 | ||
Utility Debt Securitization Authority | 5.00 | 12-15-2037 | 3,780,000 | 3,929,027 | ||
Utility Debt Securitization Authority | 5.00 | 12-15-2040 | 2,870,000 | 3,095,063 | ||
30,926,184 | ||||||
Water & sewer revenue: 1.63% | ||||||
New York City Municipal Water Finance Authority Series DD | 5.25 | 6-15-2047 | 13,450,000 | 15,238,137 | ||
New York City Municipal Water Finance Authority New York City Water & Sewer System Series AA-1 | 5.25 | 6-15-2052 | 5,250,000 | 5,881,891 | ||
New York City Municipal Water Finance Authority New York City Water & Sewer System Series CC-1 | 5.00 | 6-15-2049 | 12,240,000 | 13,067,619 | ||
New York City Municipal Water Finance Authority New York City Water & Sewer System Series DD | 5.25 | 6-15-2047 | 11,490,000 | 12,071,368 | ||
New York City Municipal Water Finance Authority New York City Water & Sewer System Series DD1 | 5.00 | 6-15-2048 | 3,000,000 | 3,151,245 | ||
New York City Municipal Water Finance Authority New York City Water & Sewer System Series FF | 4.00 | 6-15-2041 | 8,250,000 | 8,262,673 | ||
The accompanying notes are an integral part of these consolidated financial statements.
48 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Water & sewer revenue (continued) | ||||||
New York City Municipal Water Finance Authority New York City Water & Sewer System Series FF-2 | 5.00 % | 6-15-2035 | $ | 25,000,000 | $27,812,395 | |
New York State Environmental Facilities Corp. State of New York State Revolving Fund Series A | 4.00 | 6-15-2049 | 5,000,000 | 4,954,806 | ||
New York State Environmental Facilities Corp. State of New York State Revolving Fund Series B | 5.00 | 6-15-2048 | 10,035,000 | 10,789,607 | ||
Western Nassau County Water Authority Series A | 4.00 | 4-1-2046 | 1,100,000 | 1,091,817 | ||
Western Nassau County Water Authority Series A | 4.00 | 4-1-2051 | 1,000,000 | 980,824 | ||
103,302,382 | ||||||
722,441,096 | ||||||
North Carolina: 0.51% | ||||||
Airport revenue: 0.06% | ||||||
Raleigh Durham Airport Authority Series A AMT | 5.00 | 5-1-2035 | 3,400,000 | 3,670,886 | ||
Education revenue: 0.10% | ||||||
North Carolina Capital Facilities Finance Agency Meredith College | 5.00 | 6-1-2038 | 500,000 | 512,793 | ||
North Carolina Capital Facilities Finance Agency Wake Forest University | 5.00 | 1-1-2033 | 1,000,000 | 1,046,238 | ||
University of North Carolina at Asheville | 5.00 | 6-1-2042 | 625,000 | 638,303 | ||
University of North Carolina at Chapel Hill Series Aø | 3.95 | 2-1-2024 | 305,000 | 305,000 | ||
University of North Carolina at Greensboro | 5.00 | 4-1-2033 | 2,000,000 | 2,022,315 | ||
University of North Carolina at Greensboro | 5.00 | 4-1-2039 | 1,620,000 | 1,638,075 | ||
6,162,724 | ||||||
Health revenue: 0.07% | ||||||
Charlotte-Mecklenburg Hospital Authority Atrium Health Obligated Group Series A | 5.00 | 1-15-2036 | 500,000 | 538,214 | ||
North Carolina Medical Care Commission Deerfield Episcopal Retirement Community Obligated Group | 5.00 | 11-1-2031 | 1,500,000 | 1,552,867 | ||
North Carolina Medical Care Commission Forest at Duke, Inc. Obligated Group | 4.00 | 9-1-2051 | 1,100,000 | 861,111 | ||
North Carolina Medical Care Commission Presbyterian Homes Obligated Group Series C | 4.00 | 10-1-2031 | 1,500,000 | 1,443,756 | ||
4,395,948 | ||||||
Housing revenue: 0.07% | ||||||
City of Raleigh Series A | 5.00 | 10-1-2033 | 1,000,000 | 1,020,574 | ||
North Carolina Capital Facilities Finance Agency Arc of North Carolina Obligated Group Series A (Department of Housing and Urban Development Insured) | 5.00 | 10-1-2034 | 2,250,000 | 2,255,788 | ||
North Carolina Capital Facilities Finance Agency North Carolina A&T University Foundation LLC Series A (AGC Insured) | 5.00 | 6-1-2027 | 1,000,000 | 1,026,151 | ||
4,302,513 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 49
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue: 0.03% | ||||||
City of Charlotte COP Series A | 5.00 % | 12-1-2026 | $ | 1,160,000 | $1,161,553 | |
City of Charlotte COP Series C | 5.00 | 6-1-2030 | 1,000,000 | 1,001,286 | ||
2,162,839 | ||||||
Resource recovery revenue: 0.08% | ||||||
North Carolina Capital Facilities Finance Agency Republic Services, Inc. AMTøø | 4.05 | 6-1-2038 | 5,000,000 | 5,000,294 | ||
Transportation revenue: 0.10% | ||||||
North Carolina Department of Transportation I-77 Mobility Partners LLC AMT | 5.00 | 6-30-2028 | 1,275,000 | 1,291,785 | ||
North Carolina Turnpike Authority (AGM Insured) | 5.00 | 1-1-2049 | 4,500,000 | 4,649,278 | ||
North Carolina Turnpike Authority Series A | 5.00 | 7-1-2042 | 500,000 | 509,753 | ||
6,450,816 | ||||||
32,146,020 | ||||||
North Dakota: 0.21% | ||||||
Miscellaneous revenue: 0.15% | ||||||
University of North Dakota COP Series A | 5.00 | 4-1-2057 | 9,000,000 | 9,325,497 | ||
Water & sewer revenue: 0.06% | ||||||
North Dakota PFA Series A | 5.00 | 10-1-2038 | 3,780,000 | 4,091,150 | ||
13,416,647 | ||||||
Ohio: 1.56% | ||||||
Education revenue: 0.07% | ||||||
Allen County Port Authority University of Northwestern Ohio Series A | 4.00 | 12-1-2035 | 650,000 | 602,210 | ||
Allen County Port Authority University of Northwestern Ohio Series A | 4.00 | 12-1-2040 | 720,000 | 622,758 | ||
Ohio Higher Educational Facility Commission Kenyon College | 5.00 | 7-1-2037 | 3,100,000 | 3,451,982 | ||
4,676,950 | ||||||
GO revenue: 0.07% | ||||||
State of Ohio Series A | 5.00 | 2-1-2036 | 4,265,000 | 4,441,309 | ||
Health revenue: 0.51% | ||||||
City of Middleburg Heights Southwest General Health Center Obligated Group Series A | 4.00 | 8-1-2041 | 4,830,000 | 4,463,272 | ||
City of Middleburg Heights Southwest General Health Center Obligated Group Series A | 4.00 | 8-1-2047 | 3,000,000 | 2,663,427 | ||
Cleveland-Cuyahoga County Port Authority Centers for Dialysis Care Obligated Group Series A | 5.00 | 12-1-2047 | 5,205,000 | 5,187,308 | ||
County of Franklin Trinity Health Corp. Obligated Group Series A | 4.00 | 12-1-2044 | 3,450,000 | 3,335,616 | ||
County of Hamilton Cincinnati Children’s Hospital Medical Center Obligated Group Series CC | 5.00 | 11-15-2041 | 2,250,000 | 2,542,395 | ||
County of Hamilton UC Health Obligated Group | 5.00 | 9-15-2045 | 7,500,000 | 7,330,582 | ||
The accompanying notes are an integral part of these consolidated financial statements.
50 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
County of Lucas Promedica Healthcare Obligated Group Series A | 5.25 % | 11-15-2048 | $ | 4,250,000 | $3,708,956 | |
County of Montgomery Premier Health Partners Obligated Group Series A | 4.00 | 11-15-2039 | 3,000,000 | 2,789,186 | ||
32,020,742 | ||||||
Housing revenue: 0.52% | ||||||
Ohio Water Development Authority | 5.00 | 12-1-2035 | 5,390,000 | 5,706,387 | ||
Ohio Water Development Authority | 5.00 | 12-1-2036 | 2,000,000 | 2,105,499 | ||
Ohio Water Development Authority Series B | 5.00 | 12-1-2034 | 1,895,000 | 2,016,953 | ||
RiverSouth Authority Series A | 5.75 | 12-1-2027 | 2,260,000 | 2,259,870 | ||
State of Ohio Department of Transportation AMT (AGM Insured) | 5.00 | 12-31-2039 | 2,500,000 | 2,507,875 | ||
State of Ohio Department of Transportation Series A AMT (AGM Insured) | 5.00 | 12-31-2026 | 2,030,000 | 2,065,220 | ||
State of Ohio Department of Transportation Series A AMT (AGM Insured) | 5.00 | 12-31-2028 | 1,610,000 | 1,637,933 | ||
State of Ohio Department of Transportation Series A AMT (AGM Insured) | 5.00 | 12-31-2030 | 2,250,000 | 2,288,177 | ||
State of Ohio Department of Transportation Series A AMT (AGM Insured) | 5.00 | 12-31-2035 | 12,000,000 | 12,119,207 | ||
32,707,121 | ||||||
Tax revenue: 0.08% | ||||||
County of Franklin Sales Tax Revenue | 5.00 | 6-1-2048 | 5,000,000 | 5,285,048 | ||
Transportation revenue: 0.28% | ||||||
Ohio Turnpike & Infrastructure Commission Series A | 5.00 | 2-15-2039 | 7,000,000 | 7,889,295 | ||
Ohio Turnpike & Infrastructure Commission Series A-4 CAB | 5.70 | 2-15-2034 | 8,500,000 | 10,143,239 | ||
18,032,534 | ||||||
Utilities revenue: 0.03% | ||||||
Ohio Air Quality Development Authority Duke Energy Corp. Series A AMTøø | 4.25 | 11-1-2039 | 2,000,000 | 1,984,122 | ||
99,147,826 | ||||||
Oklahoma: 0.95% | ||||||
Airport revenue: 0.48% | ||||||
Oklahoma City Airport Trust Series A AMT | 5.00 | 7-1-2043 | 9,000,000 | 9,271,879 | ||
Oklahoma City Airport Trust Series A AMT | 5.00 | 7-1-2047 | 11,500,000 | 11,835,067 | ||
Tulsa Airports Improvement Trust Series A AMT (AGM Insured) | 5.00 | 6-1-2043 | 4,485,000 | 4,628,299 | ||
Tulsa Airports Improvement Trust Series A AMT (AGM Insured) | 5.25 | 6-1-2048 | 3,770,000 | 3,906,965 | ||
Tulsa Airports Improvement Trust Series A AMT (BAM Insured) | 5.00 | 6-1-2035 | 1,055,000 | 1,068,222 | ||
30,710,432 | ||||||
Health revenue: 0.03% | ||||||
Oklahoma Development Finance Authority INTEGRIS Health Obligated Group Series Cø | 4.31 | 8-15-2031 | 1,695,000 | 1,695,000 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 51
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue: 0.36% | ||||||
Garfield County Educational Facilities Authority Garfield County Independent Enid School District No. 57 Series A | 5.00 % | 9-1-2030 | $ | 2,000,000 | $2,079,730 | |
Garfield County Educational Facilities Authority Garfield County Independent Enid School District No. 57 Series A | 5.00 | 9-1-2031 | 1,145,000 | 1,189,606 | ||
Muskogee Industrial Trust Muskogee County Independent School District No. 20 | 4.00 | 9-1-2030 | 4,440,000 | 4,444,312 | ||
Muskogee Industrial Trust Muskogee County Independent School District No. 20 | 4.00 | 9-1-2031 | 5,520,000 | 5,510,911 | ||
Muskogee Industrial Trust Muskogee County Independent School District No. 20 | 4.00 | 9-1-2032 | 4,000,000 | 3,974,967 | ||
Oklahoma Development Finance Authority Oklahoma State University Series A | 5.25 | 6-1-2037 | 4,535,000 | 5,113,967 | ||
Pontotoc County Educational Facilities Authority Ada Public Schools Project | 4.00 | 9-1-2040 | 1,000,000 | 924,588 | ||
23,238,081 | ||||||
Transportation revenue: 0.02% | ||||||
Oklahoma Turnpike Authority Series A | 5.00 | 1-1-2042 | 1,000,000 | 1,027,259 | ||
Water & sewer revenue: 0.06% | ||||||
Oklahoma Water Resources Board State of Oklahoma Drinking Water State Revolving Fund Series A (CERF Insured) | 4.00 | 4-1-2048 | 4,000,000 | 3,891,157 | ||
60,561,929 | ||||||
Oregon: 0.41% | ||||||
Airport revenue: 0.03% | ||||||
Port of Portland Airport Revenue Series 24-B AMT | 5.00 | 7-1-2034 | 1,905,000 | 1,990,216 | ||
Health revenue: 0.35% | ||||||
Clackamas County Hospital Facility Authority Rose Villa, Inc. Obligated Group Series A | 5.13 | 11-15-2040 | 500,000 | 474,876 | ||
Clackamas County Hospital Facility Authority Rose Villa, Inc. Obligated Group Series A | 5.25 | 11-15-2050 | 500,000 | 460,544 | ||
Clackamas County Hospital Facility Authority Rose Villa, Inc. Obligated Group Series A | 5.38 | 11-15-2055 | 1,000,000 | 924,494 | ||
Medford Hospital Facilities Authority Asante Health System Obligated Group Series A (AGM Insured) | 4.00 | 8-15-2045 | 13,650,000 | 13,084,491 | ||
Oregon Health & Science University Oregon Health & Science University Obligated Group Series A | 4.00 | 7-1-2044 | 2,000,000 | 2,005,540 | ||
Salem Hospital Facility Authority Salem Health Obligated Group Series A | 5.00 | 5-15-2046 | 5,000,000 | 5,095,847 | ||
22,045,792 | ||||||
Utilities revenue: 0.03% | ||||||
City of Eugene Electric Utility System Revenue Series A | 4.00 | 8-1-2045 | 1,260,000 | 1,260,318 | ||
City of Eugene Electric Utility System Revenue Series A | 4.00 | 8-1-2049 | 800,000 | 788,403 | ||
2,048,721 | ||||||
26,084,729 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
52 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Pennsylvania: 6.26% | ||||||
Airport revenue: 0.59% | ||||||
Allegheny County Airport Authority Series A AMT | 5.00 % | 1-1-2036 | $ | 10,000,000 | $10,766,707 | |
Allegheny County Airport Authority Series A AMT (AGM Insured) | 4.00 | 1-1-2046 | 2,000,000 | 1,881,309 | ||
City of Philadelphia Airport Revenue Series B AMT | 5.00 | 7-1-2029 | 1,000,000 | 1,053,032 | ||
City of Philadelphia Airport Revenue Series B AMT | 5.00 | 7-1-2031 | 750,000 | 790,344 | ||
City of Philadelphia Airport Revenue Series B AMT | 5.00 | 7-1-2042 | 7,860,000 | 8,043,076 | ||
City of Philadelphia Airport Revenue Series B AMT | 5.00 | 7-1-2047 | 9,950,000 | 10,150,142 | ||
City of Philadelphia Airport Revenue Series C AMT | 4.00 | 7-1-2037 | 1,695,000 | 1,653,395 | ||
City of Philadelphia Airport Revenue Series C AMT | 4.00 | 7-1-2038 | 1,260,000 | 1,224,491 | ||
City of Philadelphia Airport Revenue Series C AMT | 4.00 | 7-1-2039 | 1,830,000 | 1,771,876 | ||
37,334,372 | ||||||
Education revenue: 0.20% | ||||||
Montgomery County Higher Education & Health Authority Arcadia University | 5.00 | 4-1-2024 | 1,540,000 | 1,547,988 | ||
Montgomery County Higher Education & Health Authority Arcadia University | 5.00 | 4-1-2025 | 1,625,000 | 1,644,110 | ||
Pennsylvania Higher Educational Facilities Authority Drexel University Series A (AGM Insured) | 5.00 | 5-1-2046 | 4,885,000 | 5,186,153 | ||
Philadelphia IDA144A%% | 5.50 | 6-15-2043 | 1,250,000 | 1,235,042 | ||
Philadelphia IDA First Philadelphia Preparatory Charter School Series A | 7.00 | 6-15-2033 | 1,875,000 | 1,926,389 | ||
Philadelphia IDA St. Joseph’s University Series C | 4.00 | 11-1-2038 | 1,000,000 | 968,043 | ||
12,507,725 | ||||||
GO revenue: 0.30% | ||||||
North Pocono School District Series A (AGM Insured) | 4.00 | 9-15-2029 | 2,170,000 | 2,281,885 | ||
North Pocono School District Series A (AGM Insured) | 4.00 | 9-15-2032 | 1,750,000 | 1,824,509 | ||
School District of Philadelphia Series A | 5.00 | 9-1-2024 | 2,075,000 | 2,109,291 | ||
School District of Philadelphia Series F | 5.00 | 9-1-2035 | 3,820,000 | 3,928,634 | ||
West Mifflin School District (AGM Insured) | 5.00 | 4-1-2025 | 1,180,000 | 1,212,826 | ||
West Mifflin School District (AGM Insured) | 5.00 | 4-1-2026 | 1,200,000 | 1,257,250 | ||
West Mifflin School District (AGM Insured) | 5.00 | 4-1-2027 | 1,000,000 | 1,054,010 | ||
Williamsport Area School District (AGM Insured) | 4.00 | 3-1-2032 | 1,440,000 | 1,441,495 | ||
Williamsport Area School District (AGM Insured) | 4.00 | 3-1-2033 | 1,490,000 | 1,490,602 | ||
Williamsport Area School District (AGM Insured) | 4.00 | 3-1-2034 | 1,555,000 | 1,556,897 | ||
Williamsport Area School District (AGM Insured) | 4.00 | 3-1-2035 | 1,205,000 | 1,206,604 | ||
19,364,003 | ||||||
Health revenue: 1.82% | ||||||
Allegheny County Hospital Development Authority Allegheny Health Network Obligated Group Series A | 5.00 | 4-1-2047 | 5,000,000 | 5,059,741 | ||
Allegheny County Hospital Development Authority UPMC Obligated Group (SIFMA Municipal Swap+0.70%)± | 4.71 | 11-15-2047 | 10,000,000 | 9,765,402 | ||
Allegheny County Hospital Development Authority UPMC Obligated Group Series A | 4.00 | 7-15-2039 | 2,250,000 | 2,211,728 | ||
Chester County Health & Education Facilities Authority Main Line Health System, Inc. Obligated Group Series A | 4.00 | 9-1-2050 | 3,500,000 | 3,225,001 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 53
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
Geisinger Authority Geisinger Health System Obligated Group Series A-1 | 4.00 % | 2-15-2047 | $ | 10,000,000 | $9,285,317 | |
General Authority of Southcentral Pennsylvania WellSpan Health Obligated Group Series Eø | 4.00 | 6-1-2035 | 300,000 | 300,000 | ||
Hospitals & Higher Education Facilities Authority of Philadelphia Temple University Health System Obligated Group (AGM Insured) | 5.00 | 7-1-2037 | 4,175,000 | 4,492,746 | ||
Lancaster County Hospital Authority University of Pennsylvania Health System Obligated Group | 5.00 | 8-15-2046 | 10,000,000 | 10,192,888 | ||
Montgomery County Higher Education & Health Authority Thomas Jefferson University Obligated Group | 4.00 | 9-1-2035 | 2,750,000 | 2,744,438 | ||
Montgomery County Higher Education & Health Authority Thomas Jefferson University Obligated Group | 4.00 | 9-1-2038 | 1,000,000 | 965,046 | ||
Montgomery County Higher Education & Health Authority Thomas Jefferson University Obligated Group | 5.00 | 9-1-2031 | 4,100,000 | 4,438,952 | ||
Montgomery County Higher Education & Health Authority Thomas Jefferson University Obligated Group Series A | 5.00 | 9-1-2043 | 3,085,000 | 3,185,137 | ||
Montgomery County Higher Education & Health Authority Thomas Jefferson University Obligated Group Series Dø | 4.45 | 9-1-2050 | 9,425,000 | 9,425,000 | ||
Pennsylvania EDFA UPMC Obligated Group Series A | 4.00 | 2-15-2042 | 6,000,000 | 5,810,167 | ||
Pennsylvania EDFA UPMC Obligated Group Series A | 4.00 | 11-15-2042 | 4,000,000 | 3,870,115 | ||
Pennsylvania EDFA UPMC Obligated Group Series A | 5.00 | 2-15-2036 | 1,000,000 | 1,109,909 | ||
Pennsylvania EDFA UPMC Obligated Group Series A | 5.00 | 2-15-2038 | 2,150,000 | 2,345,108 | ||
Pennsylvania EDFA UPMC Obligated Group Series A | 5.00 | 7-1-2038 | 6,000,000 | 6,000,000 | ||
Pennsylvania EDFA UPMC Obligated Group Series A | 5.00 | 2-15-2039 | 3,500,000 | 3,801,513 | ||
Pennsylvania EDFA UPMC Obligated Group Series A1 | 4.00 | 4-15-2045 | 6,500,000 | 6,233,072 | ||
Pennsylvania EDFA UPMC Obligated Group Series A-2 | 4.00 | 5-15-2048 | 13,000,000 | 12,167,419 | ||
Pennsylvania Higher Educational Facilities Authority Thomas Jefferson University Obligated Group Series A | 5.00 | 9-1-2045 | 2,640,000 | 2,669,427 | ||
Pennsylvania Higher Educational Facilities Authority University of Pennsylvania Health System Obligated Group Series A | 5.00 | 8-15-2042 | 3,000,000 | 3,103,665 | ||
Quakertown General Authority LifeQuest Obligated Group Series C | 4.50 | 7-1-2027 | 610,000 | 581,489 | ||
Quakertown General Authority LifeQuest Obligated Group Series C | 5.00 | 7-1-2032 | 1,000,000 | 918,240 | ||
Westmoreland County IDA Excela Health Obligated Group Series A | 4.00 | 7-1-2037 | 625,000 | 572,428 | ||
Westmoreland County IDA Excela Health Obligated Group Series A | 5.00 | 7-1-2029 | 700,000 | 728,554 | ||
Westmoreland County IDA Excela Health Obligated Group Series A | 5.00 | 7-1-2030 | 550,000 | 576,187 | ||
115,778,689 | ||||||
Housing revenue: 0.69% | ||||||
Pennsylvania EDFA Bridges Finco LP | 5.00 | 12-31-2030 | 600,000 | 616,486 | ||
Pennsylvania EDFA Bridges Finco LP | 5.00 | 12-31-2034 | 16,375,000 | 16,731,381 | ||
Pennsylvania EDFA Commonwealth of Pennsylvania Department of Transportation AMT | 5.75 | 6-30-2048 | 12,000,000 | 13,184,971 | ||
Pennsylvania EDFA Commonwealth of Pennsylvania Department of Transportation AMT | 6.00 | 6-30-2061 | 3,500,000 | 3,898,961 | ||
Pennsylvania Housing Finance Agency Series 142 | 5.00 | 10-1-2043 | 5,900,000 | 6,147,652 | ||
Pennsylvania Housing Finance Agency Series 142 | 5.50 | 10-1-2053 | 3,000,000 | 3,188,792 | ||
43,768,243 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
54 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue: 0.55% | ||||||
Delaware Valley Regional Finance Authority Series C (Ambac Insured) | 7.75 % | 7-1-2027 | $ | 4,025,000 | $4,736,690 | |
Pennsylvania Finance Authority Pennsylvania Hills Project Series B (NPFGC Insured)¤ | 0.00 | 12-1-2025 | 1,060,000 | 966,574 | ||
State Public School Building Authority School District of Philadelphia Series A | 5.00 | 6-1-2024 | 2,250,000 | 2,278,801 | ||
State Public School Building Authority School District of Philadelphia Series A | 5.00 | 6-1-2034 | 1,915,000 | 1,985,387 | ||
State Public School Building Authority School District of Philadelphia Series A | 5.00 | 6-1-2035 | 16,715,000 | 17,264,639 | ||
State Public School Building Authority School District of Philadelphia Series A (AGM Insured) | 5.00 | 6-1-2030 | 3,800,000 | 4,001,700 | ||
Waverly Township Municipal Authority (BAM Insured) | 4.00 | 2-15-2030 | 1,065,000 | 1,118,672 | ||
Waverly Township Municipal Authority (BAM Insured) | 4.00 | 2-15-2031 | 1,110,000 | 1,164,608 | ||
Waverly Township Municipal Authority (BAM Insured) | 4.00 | 2-15-2032 | 1,155,000 | 1,211,787 | ||
34,728,858 | ||||||
Tax revenue: 0.10% | ||||||
Allentown Neighborhood Improvement Zone Development Authority | 5.00 | 5-1-2036 | 750,000 | 781,677 | ||
Allentown Neighborhood Improvement Zone Development Authority | 5.00 | 5-1-2042 | 2,000,000 | 2,018,704 | ||
Southeastern Pennsylvania Transportation Authority | 5.25 | 6-1-2047 | 3,000,000 | 3,334,570 | ||
6,134,951 | ||||||
Tobacco revenue: 0.18% | ||||||
Commonwealth Financing Authority (AGM Insured) | 4.00 | 6-1-2039 | 12,000,000 | 11,796,737 | ||
Transportation revenue: 1.50% | ||||||
Delaware River Port Authority | 5.00 | 1-1-2040 | 17,000,000 | 17,079,920 | ||
Pennsylvania Turnpike Commission Series 1 | 5.00 | 12-1-2040 | 1,000,000 | 1,109,826 | ||
Pennsylvania Turnpike Commission Series 1 | 5.00 | 12-1-2041 | 3,000,000 | 3,301,490 | ||
Pennsylvania Turnpike Commission Series 2nd | 5.00 | 12-1-2035 | 9,900,000 | 10,583,407 | ||
Pennsylvania Turnpike Commission Series A | 5.00 | 12-1-2044 | 8,905,000 | 9,411,783 | ||
Pennsylvania Turnpike Commission Series A (AGM Insured) | 4.00 | 12-1-2049 | 15,095,000 | 14,717,640 | ||
Pennsylvania Turnpike Commission Series A-1 | 5.00 | 12-1-2047 | 1,750,000 | 1,823,285 | ||
Pennsylvania Turnpike Commission Series B | 4.00 | 12-1-2046 | 3,000,000 | 2,928,823 | ||
Pennsylvania Turnpike Commission Series B | 5.25 | 12-1-2052 | 8,250,000 | 9,013,436 | ||
Pennsylvania Turnpike Commission Series B1 | 5.00 | 6-1-2027 | 1,150,000 | 1,229,200 | ||
Pennsylvania Turnpike Commission Series B1 | 5.00 | 6-1-2028 | 1,450,000 | 1,548,498 | ||
Pennsylvania Turnpike Commission Series B2 | 5.00 | 6-1-2027 | 1,260,000 | 1,346,775 | ||
Pennsylvania Turnpike Commission Series B2 | 5.00 | 6-1-2028 | 5,005,000 | 5,344,986 | ||
Pennsylvania Turnpike Commission Series C | 5.00 | 12-1-2046 | 4,125,000 | 4,380,829 | ||
Pennsylvania Turnpike Commission Oil Franchise Tax Revenue Series B | 5.00 | 12-1-2043 | 6,000,000 | 6,297,704 | ||
Pennsylvania Turnpike Commission Oil Franchise Tax Revenue Series B | 5.25 | 12-1-2048 | 5,145,000 | 5,424,691 | ||
95,542,293 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 55
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue: 0.08% | ||||||
Philadelphia Gas Works Co. Series A (AGM Insured) | 4.00 % | 8-1-2045 | $ | 5,000,000 | $4,916,670 | |
Water & sewer revenue: 0.25% | ||||||
City of Philadelphia Water & Wastewater Revenue Series B | 5.00 | 7-1-2033 | 8,000,000 | 8,240,866 | ||
City of Philadelphia Water & Wastewater Revenue Series C | 5.00 | 6-1-2042 | 2,200,000 | 2,362,128 | ||
Luzerne County IDA Pennsylvania-American Water Co. AMTøø | 2.45 | 12-1-2039 | 5,500,000 | 5,053,758 | ||
15,656,752 | ||||||
397,529,293 | ||||||
Puerto Rico: 0.02% | ||||||
GO revenue: 0.02% | ||||||
HTA HRRB Custodial Trust | 5.50 | 7-1-2029 | 825,000 | 850,357 | ||
Puerto Rico Custodial Trust | 5.50 | 7-1-2029 | 659,683 | 651,525 | ||
1,501,882 | ||||||
Rhode Island: 0.24% | ||||||
Airport revenue: 0.04% | ||||||
Rhode Island Commerce Corp. | 5.00 | 7-1-2031 | 2,115,000 | 2,277,933 | ||
Education revenue: 0.03% | ||||||
Rhode Island Health & Educational Building Corp. Providence College Series A | 5.00 | 11-1-2046 | 1,855,000 | 1,975,779 | ||
Tax revenue: 0.17% | ||||||
Rhode Island Turnpike & Bridge Authority Series A | 5.00 | 10-1-2040 | 10,640,000 | 10,911,151 | ||
15,164,863 | ||||||
South Carolina: 1.41% | ||||||
Education revenue: 0.16% | ||||||
South Carolina Jobs-EDA York Preparatory Academy, Inc. Series A144A | 7.25 | 11-1-2045 | 1,500,000 | 1,571,097 | ||
University of South Carolina Series A | 5.00 | 5-1-2043 | 8,155,000 | 8,532,104 | ||
10,103,201 | ||||||
Health revenue: 0.31% | ||||||
South Carolina Jobs-EDA Prisma Health Obligated Group Series Cø | 4.48 | 5-1-2048 | 19,800,000 | 19,800,000 | ||
Housing revenue: 0.19% | ||||||
Tender Option Bond Trust Receipts/Certificates Series 2023- XF3079 (Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ)144Aø | 4.41 | 7-1-2028 | 12,236,000 | 12,236,000 | ||
Resource recovery revenue: 0.04% | ||||||
South Carolina Jobs-EDA RePower South Berkeley LLC† | 8.00 | 12-6-2029 | 370,000 | 303,222 | ||
South Carolina Jobs-EDA RePower South Berkeley LLC AMT144A† | 6.00 | 2-1-2035 | 1,880,000 | 752,000 | ||
South Carolina Jobs-EDA RePower South Berkeley LLC Series A AMT144A† | 6.25 | 2-1-2045 | 2,750,000 | 1,100,000 | ||
2,155,222 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
56 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue: 0.71% | ||||||
Patriots Energy Group Financing Agency Series A (Royal Bank of Canada LIQ)øø | 4.00 % | 10-1-2048 | $ | 9,040,000 | $9,040,937 | |
South Carolina Public Service Authority Series A | 4.00 | 12-1-2040 | 1,500,000 | 1,467,293 | ||
South Carolina Public Service Authority Series E | 5.75 | 12-1-2047 | 31,250,000 | 34,484,603 | ||
44,992,833 | ||||||
89,287,256 | ||||||
South Dakota: 0.38% | ||||||
Health revenue: 0.16% | ||||||
South Dakota HEFA Avera Health Obligated Group | 5.00 | 7-1-2046 | 10,000,000 | 10,173,711 | ||
Housing revenue: 0.10% | ||||||
South Dakota Board of Regents Housing & Auxiliary Facilities System | 5.00 | 4-1-2024 | 1,100,000 | 1,113,724 | ||
South Dakota Board of Regents Housing & Auxiliary Facilities System | 5.00 | 4-1-2025 | 1,000,000 | 1,028,160 | ||
South Dakota Board of Regents Housing & Auxiliary Facilities System | 5.00 | 4-1-2026 | 1,540,000 | 1,612,233 | ||
South Dakota Board of Regents Housing & Auxiliary Facilities System | 5.00 | 4-1-2032 | 1,010,000 | 1,077,971 | ||
South Dakota Board of Regents Housing & Auxiliary Facilities System | 5.00 | 4-1-2033 | 1,250,000 | 1,330,737 | ||
6,162,825 | ||||||
Resource recovery revenue: 0.12% | ||||||
South Dakota EDFA (AgCountry Farm Credit Services LOC) Riverview LLP AMTø | 4.18 | 11-1-2051 | 8,000,000 | 8,000,000 | ||
24,336,536 | ||||||
Tennessee: 1.69% | ||||||
Airport revenue: 0.35% | ||||||
Metropolitan Nashville Airport Authority Series B AMT | 5.25 | 7-1-2047 | 15,750,000 | 16,814,585 | ||
Metropolitan Nashville Airport Authority Series B AMT | 5.50 | 7-1-2052 | 5,000,000 | 5,437,103 | ||
22,251,688 | ||||||
Health revenue: 0.11% | ||||||
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Vanderbilt University Medical Center Obligated Group Series A | 5.00 | 7-1-2046 | 4,000,000 | 4,069,982 | ||
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Vanderbilt University Medical Center Obligated Group Series A | 5.00 | 7-1-2048 | 2,750,000 | 2,807,011 | ||
6,876,993 | ||||||
Utilities revenue: 1.23% | ||||||
Tender Option Bond Trust Receipts/Certificates Series 2022- XM1024 (Morgan Stanley Bank LIQ)144Aø | 4.15 | 5-1-2052 | 7,500,000 | 7,500,000 | ||
Tennergy Corp. Series Aøø | 4.00 | 12-1-2051 | 25,000,000 | 24,665,427 | ||
Tennergy Corp. Series Aøø | 5.50 | 10-1-2053 | 10,000,000 | 10,586,961 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 57
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue (continued) | ||||||
Tennessee Energy Acquisition Corp.øø | 4.00 % | 11-1-2049 | $ | 25,000,000 | $24,863,865 | |
Tennessee Energy Acquisition Corp. Series Aøø | 5.00 | 5-1-2052 | 2,640,000 | 2,738,749 | ||
Tennessee Energy Acquisition Corp. Series A | 5.25 | 9-1-2026 | 1,020,000 | 1,041,925 | ||
Tennessee Energy Acquisition Corp. Series A-1øø | 5.00 | 5-1-2053 | 6,500,000 | 6,724,498 | ||
78,121,425 | ||||||
107,250,106 | ||||||
Texas: 8.89% | ||||||
Airport revenue: 0.48% | ||||||
City of Austin Airport System Revenue AMT | 5.00 | 11-15-2039 | 8,000,000 | 8,037,503 | ||
City of Austin Airport System Revenue AMT | 5.00 | 11-15-2040 | 3,000,000 | 3,199,042 | ||
City of Austin Airport System Revenue AMT | 5.00 | 11-15-2044 | 3,500,000 | 3,496,638 | ||
City of Houston Airport System Revenue Series A AMT | 5.00 | 7-1-2041 | 4,750,000 | 4,909,879 | ||
Dallas Fort Worth International Airport Series B | 5.00 | 11-1-2050 | 8,000,000 | 8,633,756 | ||
Port Authority of Houston of Harris County | 4.00 | 10-1-2039 | 2,500,000 | 2,532,582 | ||
30,809,400 | ||||||
Education revenue: 0.60% | ||||||
Arlington Higher Education Finance Corp. BASIS Texas Charter Schools, Inc.144Aøø | 4.50 | 6-15-2056 | 1,000,000 | 991,017 | ||
Arlington Higher Education Finance Corp. School of Excellence in Education Series A144A | 6.00 | 2-15-2042 | 500,000 | 473,192 | ||
Clifton Higher Education Finance Corp. IDEA Public Schools Series A | 4.00 | 8-15-2047 | 3,000,000 | 2,634,254 | ||
Clifton Higher Education Finance Corp. IDEA Public Schools Series T | 4.00 | 8-15-2047 | 2,500,000 | 2,424,645 | ||
Clifton Higher Education Finance Corp. International Leadership of Texas, Inc. Series A | 5.75 | 8-15-2038 | 2,000,000 | 2,010,889 | ||
Clifton Higher Education Finance Corp. International Leadership of Texas, Inc. Series D | 6.00 | 8-15-2038 | 6,000,000 | 6,074,089 | ||
Clifton Higher Education Finance Corp. International Leadership of Texas, Inc. Series D | 6.13 | 8-15-2048 | 6,750,000 | 6,796,484 | ||
Clifton Higher Education Finance Corp. Valor Texas Education Foundation Series A144A | 5.50 | 6-15-2033 | 3,020,000 | 3,027,593 | ||
Clifton Higher Education Finance Corp. Valor Texas Education Foundation Series A144A | 6.00 | 6-15-2048 | 3,000,000 | 2,883,770 | ||
Hale Center Education Facilities Corp. Wayland Baptist University | 5.00 | 3-1-2031 | 2,140,000 | 2,246,200 | ||
Southwest Higher Education Authority, Inc. | 5.00 | 10-1-2032 | 650,000 | 696,713 | ||
Southwest Higher Education Authority, Inc. | 5.00 | 10-1-2039 | 750,000 | 791,917 | ||
Southwest Higher Education Authority, Inc. | 5.00 | 10-1-2040 | 1,000,000 | 1,054,236 | ||
Southwest Higher Education Authority, Inc. | 5.00 | 10-1-2041 | 900,000 | 947,479 | ||
Southwest Higher Education Authority, Inc. Southern Methodist University | 5.00 | 10-1-2030 | 1,460,000 | 1,569,607 | ||
University of Houston Series A | 5.00 | 2-15-2047 | 3,000,000 | 3,231,557 | ||
37,853,642 | ||||||
GO revenue: 2.29% | ||||||
City of El Paso | 4.00 | 8-15-2031 | 6,500,000 | 6,615,101 | ||
The accompanying notes are an integral part of these consolidated financial statements.
58 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
City of Georgetown | 4.00 % | 8-15-2043 | $ | 2,140,000 | $2,137,809 | |
City of Houston Series A | 4.00 | 3-1-2034 | 1,000,000 | 1,024,878 | ||
City of Palestine (AGM Insured) | 4.00 | 2-15-2051 | 4,000,000 | 3,819,998 | ||
City of Port Isabel144A | 5.10 | 2-15-2049 | 930,000 | 943,236 | ||
City of Sugar Land | 5.00 | 2-15-2030 | 1,250,000 | 1,343,246 | ||
City of Temple | 5.00 | 8-1-2032 | 1,070,000 | 1,114,399 | ||
County of Dallas | 5.00 | 8-15-2042 | 4,275,000 | 4,761,753 | ||
County of Travis Series A | 5.00 | 3-1-2036 | 12,470,000 | 13,713,967 | ||
County of Travis Series A | 5.00 | 3-1-2039 | 6,250,000 | 6,744,866 | ||
Fort Worth Independent School District | 5.00 | 2-15-2047 | 5,935,000 | 6,255,498 | ||
Harris County Flood Control District Series A%% | 4.00 | 9-15-2042 | 3,545,000 | 3,560,351 | ||
Harris County Flood Control District Series A%% | 4.00 | 9-15-2048 | 14,000,000 | 13,743,775 | ||
Houston Independent School District Series Cøø | 4.00 | 6-1-2039 | 2,000,000 | 2,022,779 | ||
Nacogdoches Independent School District | 5.00 | 2-15-2049 | 8,560,000 | 9,122,156 | ||
Pasadena Independent School District | 5.00 | 2-15-2047 | 6,250,000 | 6,827,864 | ||
Royse City Independent School District | 5.00 | 8-15-2034 | 3,025,000 | 3,118,720 | ||
Salado Independent School District | 5.00 | 2-15-2049 | 1,605,000 | 1,710,404 | ||
San Antonio Independent School District Series B | 5.00 | 8-15-2048 | 13,000,000 | 13,219,633 | ||
State of Texas Series B | 5.00 | 10-1-2036 | 24,500,000 | 25,312,371 | ||
Viridian Municipal Management District (BAM Insured) | 4.00 | 12-1-2033 | 555,000 | 556,953 | ||
Viridian Municipal Management District (BAM Insured) | 4.00 | 12-1-2034 | 1,465,000 | 1,469,746 | ||
Viridian Municipal Management District (BAM Insured) | 4.00 | 12-1-2035 | 1,520,000 | 1,522,885 | ||
Viridian Municipal Management District (BAM Insured) | 4.00 | 12-1-2036 | 1,585,000 | 1,585,203 | ||
Waller Consolidated Independent School District (BAM Insured) | 5.00 | 2-15-2041 | 5,005,000 | 5,512,503 | ||
Waller Consolidated Independent School District (BAM Insured) | 5.00 | 2-15-2043 | 6,885,000 | 7,538,799 | ||
145,298,893 | ||||||
Health revenue: 0.28% | ||||||
Harris County Cultural Education Facilities Finance Corp. Series A | 4.00 | 10-1-2038 | 2,300,000 | 2,309,199 | ||
Harris County Cultural Education Facilities Finance Corp. Texas Children’s Hospital Obligated Group Series A | 4.00 | 10-1-2037 | 3,000,000 | 3,020,907 | ||
Harris County Health Facilities Development Corp. CHRISTUS Health Obligated Group Series A-3 (AGM Insured)€øø | 4.49 | 7-1-2031 | 2,375,000 | 2,375,000 | ||
New Hope Cultural Education Facilities Finance Corp. Children’s Health System of Texas Obligated Group Series A | 4.00 | 8-15-2033 | 2,050,000 | 2,084,038 | ||
Tarrant County Cultural Education Facilities Finance Corp. Baylor Scott & White Health Obligated Group Series D | 5.50 | 11-15-2047 | 7,025,000 | 7,728,911 | ||
17,518,055 | ||||||
Housing revenue: 0.28% | ||||||
Texas Department of Housing & Community Affairs Series A (GNMA Insured)%% | 5.13 | 9-1-2048 | 3,000,000 | 3,112,347 | ||
Texas Department of Housing & Community Affairs Series A (GNMA Insured)%% | 5.25 | 9-1-2053 | 3,000,000 | 3,121,248 | ||
Texas PFA Texas Facilities Commission | 4.00 | 2-1-2036 | 2,175,000 | 2,232,464 | ||
Texas PFA Texas Facilities Commission Series A | 4.00 | 2-1-2034 | 5,000,000 | 5,204,299 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 59
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
Texas PFA Texas Facilities Commission Series A | 4.00 % | 2-1-2035 | $ | 2,000,000 | $2,068,943 | |
Travis County Housing Finance Corp. Austin Gateway Apartments LPøø | 4.13 | 6-1-2045 | 2,000,000 | 2,002,760 | ||
17,742,061 | ||||||
Industrial development revenue: 0.12% | ||||||
City of Houston Airport System Revenue United Airlines, Inc. Series B-2 AMT | 5.00 | 7-15-2027 | 2,500,000 | 2,530,588 | ||
Harris County Industrial Development Corp. Energy Transfer LPøø | 4.05 | 11-1-2050 | 5,000,000 | 5,029,992 | ||
7,560,580 | ||||||
Miscellaneous revenue: 0.62% | ||||||
Greater Texoma Utility Authority City of Sherman Water & Sewer System Revenue (AGM Insured) | 5.00 | 10-1-2048 | 20,000,000 | 21,439,638 | ||
Greater Texoma Utility Authority City of Sherman Water & Sewer System Revenue Series A (BAM Insured)%% | 5.25 | 10-1-2048 | 10,000,000 | 10,909,466 | ||
Lower Colorado River Authority LCRA Transmission Services Corp. | 5.00 | 5-15-2045 | 2,000,000 | 2,029,267 | ||
Lower Colorado River Authority LCRA Transmission Services Corp. Series A (AGM Insured) | 4.00 | 5-15-2043 | 5,000,000 | 4,941,578 | ||
39,319,949 | ||||||
Tax revenue: 0.12% | ||||||
Dallas Area Rapid Transit Series A | 5.00 | 12-1-2048 | 5,000,000 | 5,232,341 | ||
Old Spanish Trail-Alemda Corridors RDA (BAM Insured) | 4.00 | 9-1-2036 | 1,125,000 | 1,158,166 | ||
Old Spanish Trail-Alemda Corridors RDA (BAM Insured) | 4.00 | 9-1-2037 | 1,430,000 | 1,461,165 | ||
7,851,672 | ||||||
Transportation revenue: 1.14% | ||||||
Central Texas Regional Mobility Authority Series A | 5.00 | 1-1-2044 | 3,000,000 | 3,154,741 | ||
Central Texas Regional Mobility Authority Series A | 5.00 | 1-1-2049 | 2,450,000 | 2,557,968 | ||
Central Texas Regional Mobility Authority Series B | 4.00 | 1-1-2041 | 800,000 | 787,708 | ||
Central Texas Regional Mobility Authority Series B | 5.00 | 1-1-2046 | 1,600,000 | 1,686,870 | ||
Grand Parkway Transportation Corp. Series B CAB¤ | 0.00 | 10-1-2029 | 1,015,000 | 1,101,588 | ||
Grand Parkway Transportation Corp. Series B CAB¤ | 0.00 | 10-1-2030 | 2,000,000 | 2,177,006 | ||
Grand Parkway Transportation Corp. Series C | 4.00 | 10-1-2039 | 2,500,000 | 2,509,091 | ||
Grand Parkway Transportation Corp. Series C | 4.00 | 10-1-2045 | 28,185,000 | 27,550,708 | ||
North Texas Tollway Authority Series A | 5.00 | 1-1-2033 | 3,600,000 | 3,680,429 | ||
North Texas Tollway Authority Series A | 5.00 | 1-1-2035 | 4,000,000 | 4,078,338 | ||
North Texas Tollway Authority Series A | 5.25 | 1-1-2038 | 3,500,000 | 3,877,004 | ||
Texas Private Activity Bond Surface Transportation Corp. NTE Mobility Partners LLC Series A | 4.00 | 12-31-2037 | 3,000,000 | 2,823,162 | ||
Texas Private Activity Bond Surface Transportation Corp. NTE Mobility Partners Segments 3 LLC Series A AMT | 6.75 | 6-30-2043 | 4,000,000 | 4,015,541 | ||
Texas Private Activity Bond Surface Transportation Corp. NTE Mobility Partners Segments 3 LLC Series A AMT | 7.00 | 12-31-2038 | 12,500,000 | 12,556,307 | ||
72,556,461 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
60 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue: 0.25% | ||||||
City of San Antonio Electric & Gas Systems Revenue (SIFMA Municipal Swap+0.87%)± | 4.88 % | 2-1-2048 | $ | 8,000,000 | $8,000,394 | |
Lower Colorado River Authority (AGM Insured) | 4.00 | 5-15-2040 | 2,500,000 | 2,494,240 | ||
Texas Municipal Gas Acquisition & Supply Corp. III | 5.00 | 12-15-2032 | 5,000,000 | 5,223,101 | ||
15,717,735 | ||||||
Water & sewer revenue: 2.71% | ||||||
City of Austin Water & Wastewater System Revenue | 5.00 | 11-15-2045 | 15,065,000 | 15,633,677 | ||
City of Brownsville Utilities System Revenue (BAM Insured) | 5.00 | 9-1-2046 | 1,000,000 | 1,064,726 | ||
City of Brownsville Utilities System Revenue (BAM Insured) | 5.00 | 9-1-2051 | 1,000,000 | 1,054,628 | ||
City of Dallas Waterworks & Sewer System Revenue Series A | 4.00 | 10-1-2042 | 4,455,000 | 4,485,587 | ||
City of Dallas Waterworks & Sewer System Revenue Series A | 5.00 | 10-1-2030 | 3,810,000 | 3,952,174 | ||
City of Dallas Waterworks & Sewer System Revenue Series A | 5.00 | 10-1-2047 | 7,000,000 | 7,811,087 | ||
City of Fort Worth Water & Sewer System Revenue | 4.13 | 2-15-2046 | 18,365,000 | 18,193,550 | ||
San Antonio Water System Series A | 5.00 | 5-15-2043 | 7,000,000 | 7,417,057 | ||
Tarrant Regional Water District | 5.00 | 9-1-2034 | 3,500,000 | 3,571,012 | ||
Tarrant Regional Water District Water Supply System Revenue | 5.00 | 3-1-2049 | 15,000,000 | 15,168,193 | ||
Texas Water Development Board State Revolving Fund | 4.00 | 8-1-2038 | 2,500,000 | 2,530,117 | ||
Texas Water Development Board State Water Implementation Revenue Fund for Texas | 4.00 | 10-15-2045 | 9,260,000 | 9,257,243 | ||
Texas Water Development Board State Water Implementation Revenue Fund for Texas Series A | 4.00 | 10-15-2036 | 5,000,000 | 5,096,378 | ||
Texas Water Development Board State Water Implementation Revenue Fund for Texas Series A | 4.00 | 10-15-2037 | 15,650,000 | 15,885,064 | ||
Texas Water Development Board State Water Implementation Revenue Fund for Texas Series A | 4.00 | 10-15-2038 | 6,500,000 | 6,572,173 | ||
Texas Water Development Board State Water Implementation Revenue Fund for Texas Series A | 4.00 | 10-15-2044 | 9,905,000 | 9,911,328 | ||
Texas Water Development Board State Water Implementation Revenue Fund for Texas Series B | 5.00 | 4-15-2049 | 42,000,000 | 44,580,199 | ||
172,184,193 | ||||||
564,412,641 | ||||||
Utah: 0.69% | ||||||
Airport revenue: 0.49% | ||||||
City of Salt Lake City Airport Revenue Series A AMT | 5.00 | 7-1-2034 | 5,910,000 | 6,491,448 | ||
City of Salt Lake City Airport Revenue Series A AMT | 5.00 | 7-1-2035 | 5,000,000 | 5,446,200 | ||
City of Salt Lake City Airport Revenue Series A AMT | 5.00 | 7-1-2036 | 2,500,000 | 2,626,209 | ||
City of Salt Lake City Airport Revenue Series A AMT | 5.00 | 7-1-2043 | 2,500,000 | 2,575,522 | ||
City of Salt Lake City Airport Revenue Series A AMT | 5.00 | 7-1-2048 | 5,500,000 | 5,642,101 | ||
City of Salt Lake City Airport Revenue Series A AMT | 5.25 | 7-1-2048 | 3,000,000 | 3,110,762 | ||
City of Salt Lake City Airport Revenue Series B | 5.00 | 7-1-2043 | 1,500,000 | 1,566,518 | ||
City of Salt Lake City Airport Revenue Series B | 5.00 | 7-1-2048 | 3,500,000 | 3,630,068 | ||
31,088,828 | ||||||
Education revenue: 0.04% | ||||||
University of Utah Series 2015-XM0056 (Citibank NA LIQ)144Aø | 3.69 | 8-1-2043 | 2,680,000 | 2,680,000 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 61
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue: 0.12% | ||||||
County of Utah Intermountain Healthcare Obligated Group Series A | 4.00 % | 5-15-2041 | $ | 8,220,000 | $8,060,992 | |
Miscellaneous revenue: 0.02% | ||||||
Mida Mountain Village Public Infrastructure District Mountain Village Assessment Area No. 2144A | 4.00 | 8-1-2050 | 1,500,000 | 1,130,590 | ||
Tax revenue: 0.02% | ||||||
Utah Telecommunication Open Infrastructure Agency | 5.50 | 6-1-2040 | 1,000,000 | 1,131,641 | ||
44,092,051 | ||||||
Virginia: 0.43% | ||||||
GO revenue: 0.09% | ||||||
City of Norfolk Series C | 4.00 | 9-1-2032 | 5,810,000 | 6,055,626 | ||
Health revenue: 0.10% | ||||||
Roanoke EDA Richfield Living Obligated Group Series 2020† | 5.00 | 9-1-2040 | 3,290,000 | 2,201,859 | ||
Virginia Commonwealth University Health System Authority Series B | 5.00 | 7-1-2046 | 4,270,000 | 4,359,794 | ||
6,561,653 | ||||||
Housing revenue: 0.05% | ||||||
Virginia Commonwealth Transportation Board | 4.00 | 5-15-2046 | 3,000,000 | 2,942,958 | ||
Tax revenue: 0.01% | ||||||
Marquis CDA of York County Virginia CAB144A | 7.50 | 9-1-2045 | 397,000 | 119,100 | ||
Marquis CDA of York County Virginia Series B | 5.63 | 9-1-2041 | 1,310,000 | 393,000 | ||
Marquis CDA of York County Virginia Series C CAB¤ | 0.00 | 9-1-2041 | 1,824,000 | 4,560 | ||
516,660 | ||||||
Transportation revenue: 0.18% | ||||||
Virginia Small Business Financing Authority 95 Express Lanes LLC AMT | 4.00 | 1-1-2040 | 1,800,000 | 1,676,661 | ||
Virginia Small Business Financing Authority 95 Express Lanes LLC AMT | 4.00 | 1-1-2048 | 6,000,000 | 5,291,553 | ||
Virginia Small Business Financing Authority Elizabeth River Crossings OpCo. LLC AMT | 4.00 | 7-1-2029 | 1,450,000 | 1,454,449 | ||
Virginia Small Business Financing Authority Elizabeth River Crossings OpCo. LLC AMT | 4.00 | 1-1-2040 | 3,250,000 | 3,034,447 | ||
11,457,110 | ||||||
27,534,007 | ||||||
Washington: 3.18% | ||||||
Airport revenue: 0.50% | ||||||
Port of Seattle AMT | 5.00 | 4-1-2044 | 16,000,000 | 16,565,751 | ||
Port of Seattle Series B AMT | 5.00 | 8-1-2047 | 2,900,000 | 3,041,300 | ||
Port of Seattle Series B AMT | 5.50 | 8-1-2047 | 3,850,000 | 4,180,648 | ||
Port of Seattle Series C AMT | 5.00 | 8-1-2046 | 7,865,000 | 8,226,501 | ||
32,014,200 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
62 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue: 0.04% | ||||||
Washington Higher Education Facilities Authority Seattle University | 4.00 % | 5-1-2045 | $ | 1,000,000 | $921,789 | |
Washington Higher Education Facilities Authority Seattle University | 5.00 | 5-1-2030 | 760,000 | 838,362 | ||
Washington Higher Education Facilities Authority Seattle University | 5.00 | 5-1-2032 | 335,000 | 368,308 | ||
Washington Higher Education Facilities Authority Seattle University | 5.00 | 5-1-2033 | 300,000 | 329,515 | ||
2,457,974 | ||||||
GO revenue: 1.77% | ||||||
City of Seattle | 4.00 | 12-1-2040 | 2,500,000 | 2,502,322 | ||
Clark County School District No. 114 Evergreen | 4.00 | 12-1-2031 | 9,000,000 | 9,406,343 | ||
Clark County School District No. 114 Evergreen | 4.00 | 12-1-2034 | 2,500,000 | 2,586,731 | ||
County of Grant | 5.25 | 12-1-2047 | 3,500,000 | 3,881,946 | ||
Grant County Public Hospital District No. 2 | 5.00 | 12-1-2038 | 4,000,000 | 4,122,047 | ||
King County Public Hospital District No. 1 | 5.00 | 12-1-2029 | 8,940,000 | 9,426,319 | ||
King County Public Hospital District No. 1 | 5.00 | 12-1-2035 | 9,430,000 | 9,730,984 | ||
King County School District No. 210 Federal Way | 4.00 | 12-1-2033 | 10,000,000 | 10,349,223 | ||
King County School District No. 414 Lake Washington | 5.00 | 12-1-2034 | 1,000,000 | 1,096,510 | ||
Snohomish County School District No. 103 Monroe | 5.00 | 12-1-2031 | 1,500,000 | 1,548,741 | ||
State of Washington Series 2016-B | 5.00 | 8-1-2032 | 8,545,000 | 8,866,617 | ||
State of Washington Series 2017-A | 5.00 | 8-1-2033 | 1,500,000 | 1,587,381 | ||
State of Washington Series 2017-A | 5.00 | 8-1-2041 | 2,500,000 | 2,600,857 | ||
State of Washington Series A | 5.00 | 8-1-2036 | 3,500,000 | 3,922,214 | ||
State of Washington Series A | 5.00 | 8-1-2040 | 3,500,000 | 3,645,340 | ||
State of Washington Series B | 5.00 | 6-1-2036 | 5,000,000 | 5,597,381 | ||
State of Washington Series B | 5.00 | 8-1-2037 | 6,400,000 | 6,701,857 | ||
State of Washington Series C | 5.00 | 2-1-2044 | 16,000,000 | 17,630,600 | ||
State of Washington Series F | 5.00 | 6-1-2038 | 6,500,000 | 7,274,623 | ||
112,478,036 | ||||||
Health revenue: 0.36% | ||||||
Washington Health Care Facilities Authority CommonSpirit Health Obligated Group Series A2 | 5.00 | 8-1-2038 | 3,000,000 | 3,139,443 | ||
Washington Health Care Facilities Authority Fred Hutchinson Cancer Center Obligated Group | 4.00 | 9-1-2045 | 3,000,000 | 2,814,235 | ||
Washington Health Care Facilities Authority Fred Hutchinson Cancer Center Obligated Group144A | 4.00 | 12-1-2045 | 2,450,000 | 2,297,320 | ||
Washington Health Care Facilities Authority Fred Hutchinson Cancer Center Obligated Group | 5.00 | 9-1-2040 | 1,000,000 | 1,056,080 | ||
Washington Health Care Facilities Authority Providence St. Joseph Health Obligated Group Series A | 5.00 | 10-1-2042 | 6,285,000 | 6,284,851 | ||
Washington Health Care Facilities Authority Providence St. Joseph Health Obligated Group Series D | 5.00 | 10-1-2041 | 6,000,000 | 6,004,236 | ||
Washington Health Care Facilities Authority Seattle Children’s Hospital Obligated Group Series A | 5.00 | 10-1-2047 | 1,055,000 | 1,088,056 | ||
22,684,221 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 63
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue: 0.15% | ||||||
FYI Properties State of Washington Consolidated Technology Services | 5.00 % | 6-1-2037 | $ | 7,395,000 | $7,910,110 | |
FYI Properties State of Washington Consolidated Technology Services | 5.00 | 6-1-2038 | 1,750,000 | 1,865,196 | ||
9,775,306 | ||||||
Miscellaneous revenue: 0.16% | ||||||
State of Washington COP Series A | 5.00 | 7-1-2038 | 3,265,000 | 3,456,798 | ||
State of Washington COP Series B | 5.00 | 7-1-2038 | 1,660,000 | 1,786,397 | ||
State of Washington COP Series B | 5.00 | 7-1-2039 | 1,745,000 | 1,872,032 | ||
State of Washington COP Series B | 5.00 | 7-1-2040 | 1,480,000 | 1,582,724 | ||
State of Washington COP Series B | 5.00 | 7-1-2041 | 1,555,000 | 1,654,606 | ||
10,352,557 | ||||||
Utilities revenue: 0.05% | ||||||
Energy Northwest Bonneville Power Administration Series A | 5.00 | 7-1-2034 | 2,500,000 | 2,851,444 | ||
Water & sewer revenue: 0.15% | ||||||
County of King Sewer Revenue | 5.00 | 7-1-2042 | 4,660,000 | 4,887,633 | ||
Eclipse Funding Trust Series 2017-0028 (U.S. Bank N.A. LIQ)144Aøø | 3.49 | 7-1-2042 | 4,370,000 | 4,370,000 | ||
9,257,633 | ||||||
201,871,371 | ||||||
West Virginia: 0.19% | ||||||
GO revenue: 0.04% | ||||||
Ohio County Board of Education | 3.00 | 6-1-2026 | 2,680,000 | 2,674,186 | ||
Health revenue: 0.08% | ||||||
West Virginia Hospital Finance Authority West Virginia United Health System Obligated Group Series A | 5.00 | 6-1-2043 | 4,750,000 | 5,055,060 | ||
Tax revenue: 0.07% | ||||||
Monongalia County Commission Excise Tax District Series A144A | 4.13 | 6-1-2043 | 1,515,000 | 1,342,014 | ||
Monongalia County Commission Excise Tax District Series A144A | 5.50 | 6-1-2037 | 2,500,000 | 2,551,385 | ||
Monongalia County Commission Excise Tax District Series A144A | 5.75 | 6-1-2043 | 675,000 | 689,839 | ||
4,583,238 | ||||||
12,312,484 | ||||||
Wisconsin: 3.00% | ||||||
Education revenue: 0.60% | ||||||
Milwaukee RDA Milwaukee Science Education Consortium, Inc. | 6.00 | 8-1-2033 | 2,120,000 | 2,123,993 | ||
Milwaukee RDA Milwaukee Science Education Consortium, Inc. | 6.25 | 8-1-2043 | 4,650,000 | 4,659,584 | ||
PFA Carolina International School Series A144A | 6.00 | 8-1-2023 | 85,000 | 85,084 | ||
PFA Carolina International School Series A144A | 6.75 | 8-1-2033 | 2,430,000 | 2,433,330 | ||
PFA Carolina International School Series A144A | 7.00 | 8-1-2043 | 1,575,000 | 1,576,805 | ||
PFA Carolina International School Series A144A | 7.20 | 8-1-2048 | 940,000 | 941,105 | ||
PFA Nevada Charter Academies Series A144A | 5.00 | 7-15-2039 | 1,375,000 | 1,285,681 | ||
PFA Northwest Nazarene University, Inc. | 4.25 | 10-1-2049 | 5,410,000 | 4,715,638 | ||
The accompanying notes are an integral part of these consolidated financial statements.
64 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
Wisconsin HEFA Marquette University | 5.00 % | 10-1-2031 | $ | 6,690,000 | $7,609,595 | |
Wisconsin HEFA Marquette University | 5.00 | 10-1-2032 | 7,040,000 | 8,098,955 | ||
Wisconsin HEFA Medical College of Wisconsin, Inc. | 4.00 | 12-1-2046 | 5,000,000 | 4,768,555 | ||
38,298,325 | ||||||
GO revenue: 0.13% | ||||||
City of Milwaukee Series B4 (AGM Insured) | 5.00 | 4-1-2038 | 3,000,000 | 3,248,346 | ||
Verona Area School District | 4.00 | 4-1-2027 | 3,385,000 | 3,473,867 | ||
Verona Area School District | 4.00 | 4-1-2028 | 1,380,000 | 1,419,491 | ||
8,141,704 | ||||||
Health revenue: 0.90% | ||||||
PFA WakeMed Obligated Group Series A | 4.00 | 10-1-2049 | 24,500,000 | 22,671,202 | ||
Wisconsin HEFA Ascension Health Credit Group Series A | 4.50 | 11-15-2039 | 4,925,000 | 4,966,033 | ||
Wisconsin HEFA Ascension Health Credit Group Series A | 5.00 | 11-15-2035 | 12,000,000 | 12,459,842 | ||
Wisconsin HEFA Ascension Health Credit Group Series B2 | 4.00 | 11-15-2043 | 5,000,000 | 4,837,047 | ||
Wisconsin HEFA Bellin Memorial Hospital Obligated Group Series A | 5.00 | 12-1-2041 | 1,315,000 | 1,377,852 | ||
Wisconsin HEFA Bellin Memorial Hospital Obligated Group Series A | 5.00 | 12-1-2042 | 2,000,000 | 2,095,085 | ||
Wisconsin HEFA Bellin Memorial Hospital Obligated Group Series A | 5.00 | 12-1-2043 | 3,540,000 | 3,699,165 | ||
Wisconsin HEFA Bellin Memorial Hospital Obligated Group Series A | 5.50 | 12-1-2052 | 2,000,000 | 2,166,875 | ||
Wisconsin HEFA Marshfield Clinic Health System Obligated Group Series Cø | 5.30 | 2-15-2053 | 3,000,000 | 3,000,000 | ||
57,273,101 | ||||||
Housing revenue: 0.70% | ||||||
PFA Wilmington LLC (AGM Insured) | 4.00 | 7-1-2023 | 350,000 | 350,000 | ||
PFA Wilmington LLC (AGM Insured) | 4.00 | 7-1-2024 | 800,000 | 801,270 | ||
PFA Wilmington LLC (AGM Insured) | 4.00 | 7-1-2025 | 920,000 | 923,298 | ||
PFA Wilmington LLC (AGM Insured) | 5.00 | 7-1-2026 | 1,360,000 | 1,410,332 | ||
PFA Wilmington LLC (AGM Insured) | 5.00 | 7-1-2027 | 1,675,000 | 1,764,448 | ||
PFA Wilmington LLC (AGM Insured) | 5.00 | 7-1-2028 | 2,025,000 | 2,165,724 | ||
PFA Wilmington LLC (AGM Insured) | 5.00 | 7-1-2029 | 2,190,000 | 2,348,301 | ||
PFA Wilmington LLC (AGM Insured) | 5.00 | 7-1-2030 | 2,300,000 | 2,467,933 | ||
PFA Wilmington LLC (AGM Insured) | 5.00 | 7-1-2031 | 1,415,000 | 1,518,623 | ||
PFA Wilmington LLC (AGM Insured) | 5.00 | 7-1-2048 | 16,775,000 | 17,314,499 | ||
PFA Wilmington LLC (AGM Insured) | 5.00 | 7-1-2053 | 5,000,000 | 5,142,076 | ||
State of Wisconsin Environmental Improvement Fund Revenue Series A | 5.00 | 6-1-2033 | 3,420,000 | 3,519,624 | ||
Wisconsin Housing & EDA Multifamily Housing Revenue Series Aø | 3.95 | 4-1-2046 | 2,790,000 | 2,790,000 | ||
Wisconsin Housing & EDA Home Ownership Revenue Series Eø | 4.00 | 9-1-2035 | 1,850,000 | 1,850,000 | ||
44,366,128 | ||||||
Industrial development revenue: 0.10% | ||||||
PFA Customer Facility Charge-SA LLC Series A | 5.00 | 2-1-2042 | 2,500,000 | 2,543,964 | ||
PFA Customer Facility Charge-SA LLC Series B144A | 5.50 | 2-1-2042 | 4,000,000 | 4,000,525 | ||
6,544,489 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 65
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue: 0.11% | ||||||
Wisconsin Center District Series C CAB (AGM Insured)¤ | 0.00 % | 12-15-2037 | $ | 1,600,000 | $848,805 | |
Wisconsin Center District Series C CAB (AGM Insured)¤ | 0.00 | 12-15-2038 | 1,600,000 | 803,939 | ||
Wisconsin Center District Series D CAB (AGM Insured)¤ | 0.00 | 12-15-2045 | 14,715,000 | 5,072,739 | ||
6,725,483 | ||||||
Tax revenue: 0.46% | ||||||
Village of Mount Pleasant Series A | 5.00 | 4-1-2043 | 20,205,000 | 21,246,048 | ||
Village of Mount Pleasant Series A | 5.00 | 4-1-2048 | 6,910,000 | 7,077,080 | ||
Village of Mount Pleasant Series A (BAM Insured) | 5.00 | 4-1-2048 | 650,000 | 668,515 | ||
28,991,643 | ||||||
190,340,873 | ||||||
Total municipal obligations (Cost $6,473,416,290) | 6,309,519,444 | |||||
Yield | Shares | |||||
Short-term investments: 0.54% | ||||||
Investment companies: 0.54% | ||||||
Allspring Municipal Cash Management Money Market Fund Institutional Class♠∞## | 4.07 | 34,481,658 | 34,488,555 | |||
Total short-term investments (Cost $34,488,541) | 34,488,555 | |||||
Total investments in securities (Cost $6,549,904,831) | 100.54 % | 6,386,007,999 | ||||
Other assets and liabilities, net | (0.54 ) | (34,420,165 ) | ||||
Total net assets | 100.00 % | $6,351,587,834 | ||||
144A | The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
¤ | The security is issued in zero coupon form with no periodic interest payments. |
€ | The security is an auction-rate security which has an interest rate that resets at predetermined short-term intervals through a Dutch auction. 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 purchased on a when-issued basis. |
## | All or a portion of this security is segregated for when-issued securities. |
† | 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 consolidated financial statements.
66 | Allspring Municipal Bond Fund
Portfolio of investments—June 30, 2023
Abbreviations: | |
AGC | Assured Guaranty Corporation |
AGM | Assured Guaranty Municipal |
Ambac | Ambac Financial Group Incorporated |
AMT | Alternative minimum tax |
BAM | Build America Mutual Assurance Company |
CAB | Capital appreciation bond |
CCAB | Convertible capital appreciation bond |
CDA | Community Development Authority |
CERF | Credit Enhancement Reserve Fund |
COP | Certificate of participation |
ECFA | Educational & Cultural Facilities Authority |
EDA | Economic Development Authority |
EDFA | Economic Development Finance Authority |
FHLMC | Federal Home Loan Mortgage Corporation |
FNMA | Federal National Mortgage Association |
GNMA | Government National Mortgage Association |
GO | General obligation |
HEFA | Health & Educational Facilities Authority |
HFFA | Health Facilities Financing Authority |
IDA | Industrial Development Authority |
LIBOR | London Interbank Offered Rate |
LIQ | Liquidity agreement |
LOC | Letter of credit |
NPFGC | National Public Finance Guarantee Corporation |
PFA | Public Finance Authority |
RDA | Redevelopment Authority |
SIFMA | Securities Industry and Financial Markets Association |
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 Municipal Cash Management Money Market Fund Institutional Class | $15,147,751 | $1,562,825,991 | $(1,543,466,263 ) | $(18,226 ) | $(698 ) | $34,488,555 | 34,481,658 | $1,382,862 |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Municipal Bond Fund | 67
Statement of assets and liabilities—June 30, 2023
Financial statements
Statement of assets and liabilities
Assets | |
Investments in unaffiliated securities, at value (cost $6,515,416,290) | $6,351,519,444 |
Investments in affiliated securities, at value (cost $34,488,541) | 34,488,555 |
Cash | 7,308,191 |
Receivable for interest | 71,438,797 |
Receivable for Fund shares sold | 3,943,027 |
Receivable for investments sold | 1,444,999 |
Prepaid expenses and other assets | 646,399 |
Total assets | 6,470,789,412 |
Liabilities | |
Payable for when-issued transactions | 49,538,125 |
Payable for investments purchased | 48,925,184 |
Payable for Fund shares redeemed | 12,977,289 |
Dividends payable | 4,957,902 |
Management fee payable | 1,703,508 |
Administration fees payable | 493,875 |
Distribution fee payable | 16,657 |
Cash due to broker | 1,733 |
Accrued expenses and other liabilities | 587,305 |
Total liabilities | 119,201,578 |
Total net assets | $6,351,587,834 |
Net assets consist of | |
Paid-in capital | $6,594,110,819 |
Total distributable loss | (242,522,985 ) |
Total net assets | $6,351,587,834 |
The accompanying notes are an integral part of these financial statements.
68 | Allspring Municipal Bond Fund
Statement of assets and liabilities—June 30, 2023
Computation of net asset value and offering price per share | |
Net assets–Class A | $819,018,772 |
Shares outstanding–Class A1 | 84,320,599 |
Net asset value per share–Class A | $9.71 |
Maximum offering price per share – Class A2 | $10.17 |
Net assets–Class C | $25,301,837 |
Shares outstanding–Class C1 | 2,605,713 |
Net asset value per share–Class C | $9.71 |
Net assets–Class R6 | $809,610,810 |
Shares outstanding–Class R61 | 83,341,889 |
Net asset value per share–Class R6 | $9.71 |
Net assets–Administrator Class | $1,263,909,733 |
Shares outstanding–Administrator Class1 | 130,086,482 |
Net asset value per share–Administrator Class | $9.72 |
Net assets–Institutional Class | $3,433,746,682 |
Shares outstanding–Institutional Class1 | 353,544,609 |
Net asset value per share–Institutional Class | $9.71 |
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.
Allspring Municipal Bond Fund | 69
Statement of operations—year ended June 30, 2023
Statement of operations
Investment income | |
Interest | $200,676,890 |
Income from affiliated securities | 1,382,862 |
Total investment income | 202,059,752 |
Expenses | |
Management fee | 19,791,968 |
Administration fees | |
Class A | 1,370,546 |
Class C | 46,671 |
Class R6 | 212,662 |
Administrator Class | 1,126,562 |
Institutional Class | 2,485,101 |
Shareholder servicing fees | |
Class A | 2,138,461 |
Class C | 72,690 |
Administrator Class | 2,812,579 |
Distribution fee | |
Class C | 218,070 |
Custody and accounting fees | 289,528 |
Professional fees | 105,342 |
Registration fees | 204,576 |
Shareholder report expenses | 213,170 |
Trustees’ fees and expenses | 24,875 |
Other fees and expenses | 140,099 |
Total expenses | 31,252,900 |
Less: Fee waivers and/or expense reimbursements | |
Class A | (150,427 ) |
Class C | (3,580 ) |
Administrator Class | (1,194,294 ) |
Net expenses | 29,904,599 |
Net investment income | 172,155,153 |
Realized and unrealized gains (losses) on investments | |
Net realized losses on | |
Unaffiliated securities | (10,420,298 ) |
Affiliated securities | (18,226 ) |
Net realized losses on investments | (10,438,524 ) |
Net change in unrealized gains (losses) on | |
Unaffiliated securities | 9,478,352 |
Affiliated securities | (698 ) |
Net change in unrealized gains (losses) on investments | 9,477,654 |
Net realized and unrealized gains (losses) on investments | (960,870 ) |
Net increase in net assets resulting from operations | $171,194,283 |
The accompanying notes are an integral part of these financial statements.
70 | Allspring Municipal Bond Fund
Statement of changes in net assets
Statement of changes in net assets
Year ended June 30, 2023 | Year ended June 30, 2022 | |||
Operations | ||||
Net investment income | $172,155,153 | $132,330,860 | ||
Net realized losses on investments | (10,438,524 ) | (29,696,038 ) | ||
Net change in unrealized gains (losses) on investments | 9,477,654 | (586,935,899 ) | ||
Net increase (decrease) in net assets resulting from operations | 171,194,283 | (484,301,077 ) | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class A | (23,155,494 ) | (22,307,254 ) | ||
Class C | (565,678 ) | (618,947 ) | ||
Class R6 | (21,866,954 ) | (11,522,096 ) | ||
Administrator Class | (32,304,792 ) | (22,759,543 ) | ||
Institutional Class | (94,100,017 ) | (75,114,595 ) | ||
Total distributions to shareholders | (171,992,935 ) | (132,322,435 ) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class A | 7,029,818 | 67,837,081 | 3,555,083 | 37,023,328 |
Class C | 489,210 | 4,712,486 | 298,478 | 3,190,333 |
Class R6 | 99,211,328 | 946,842,572 | 100,043,556 | 1,000,180,422 |
Administrator Class | 186,561,897 | 1,796,246,089 | 143,501,780 | 1,460,363,388 |
Institutional Class | 241,003,059 | 2,322,722,803 | 109,281,926 | 1,122,718,011 |
5,138,361,031 | 3,623,475,482 | |||
Reinvestment of distributions | ||||
Class A | 2,111,396 | 20,339,740 | 1,906,296 | 19,851,582 |
Class C | 55,461 | 534,001 | 56,879 | 592,739 |
Class R6 | 56,171 | 541,314 | 13,432 | 139,556 |
Administrator Class | 3,312,161 | 31,955,076 | 2,179,944 | 22,612,571 |
Institutional Class | 8,288,208 | 79,883,147 | 6,625,814 | 68,879,804 |
133,253,278 | 112,076,252 | |||
Payment for shares redeemed | ||||
Class A | (17,898,762 ) | (172,433,833 ) | (14,894,404 ) | (153,994,313 ) |
Class C | (1,503,738 ) | (14,497,210 ) | (1,430,615 ) | (14,862,619 ) |
Class R6 | (79,070,706 ) | (753,142,645 ) | (71,421,897 ) | (708,522,552 ) |
Administrator Class | (166,439,668 ) | (1,599,217,170 ) | (131,372,943 ) | (1,338,909,878 ) |
Institutional Class | (177,840,192 ) | (1,699,846,680 ) | (114,743,308 ) | (1,161,120,631 ) |
(4,239,137,538 ) | (3,377,409,993 ) | |||
Net increase in net assets resulting from capital share transactions | 1,032,476,771 | 358,141,741 | ||
Total increase (decrease) in net assets | 1,031,678,119 | (258,481,771 ) | ||
Net assets | ||||
Beginning of period | 5,319,909,715 | 5,578,391,486 | ||
End of period | $6,351,587,834 | $5,319,909,715 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Municipal Bond Fund | 71
Financial highlights
Financial highlights
(For a share outstanding throughout each period)
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class A | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.70 | $10.83 | $10.55 | $10.55 | $10.21 |
Net investment income | 0.26 | 0.23 | 0.24 | 0.25 | 0.30 1 |
Net realized and unrealized gains (losses) on investments | 0.01 | (1.13 ) | 0.28 | 0.01 | 0.34 |
Total from investment operations | 0.27 | (0.90 ) | 0.52 | 0.26 | 0.64 |
Distributions to shareholders from | |||||
Net investment income | (0.26 ) | (0.23 ) | (0.24 ) | (0.25 ) | (0.30 ) |
Net realized gains | 0.00 | 0.00 | 0.00 | (0.01 ) | 0.00 |
Total distributions to shareholders | (0.26 ) | (0.23 ) | (0.24 ) | (0.26 ) | (0.30 ) |
Net asset value, end of period | $9.71 | $9.70 | $10.83 | $10.55 | $10.55 |
Total return2 | 2.85 % | (8.47 )% | 4.95 % | 2.54 % | 6.35 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.77 % | 0.77 % | 0.77 % | 0.77 % | 0.78 % |
Net expenses | 0.75 % | 0.74 % | 0.74 % | 0.74 % | 0.75 % |
Net investment income | 2.72 % | 2.16 % | 2.22 % | 2.40 % | 2.89 % |
Supplemental data | |||||
Portfolio turnover rate | 8 % | 18 % | 16 % | 24 % | 20 % |
Net assets, end of period (000s omitted) | $819,019 | $902,671 | $1,110,503 | $1,138,934 | $1,206,717 |
1 | Calculated based upon average shares outstanding |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
72 | Allspring Municipal Bond Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class C | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.70 | $10.83 | $10.55 | $10.55 | $10.21 |
Net investment income | 0.19 | 0.15 1 | 0.16 1 | 0.17 | 0.22 |
Net realized and unrealized gains (losses) on investments | 0.01 | (1.13 ) | 0.28 | 0.01 | 0.34 |
Total from investment operations | 0.20 | (0.98 ) | 0.44 | 0.18 | 0.56 |
Distributions to shareholders from | |||||
Net investment income | (0.19 ) | (0.15 ) | (0.16 ) | (0.17 ) | (0.22 ) |
Net realized gains | 0.00 | 0.00 | 0.00 | (0.01 ) | 0.00 |
Total distributions to shareholders | (0.19 ) | (0.15 ) | (0.16 ) | (0.18 ) | (0.22 ) |
Net asset value, end of period | $9.71 | $9.70 | $10.83 | $10.55 | $10.55 |
Total return2 | 2.08 % | (9.16 )% | 4.16 % | 1.77 % | 5.56 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.51 % | 1.51 % | 1.51 % | 1.51 % | 1.53 % |
Net expenses | 1.50 % | 1.50 % | 1.50 % | 1.50 % | 1.50 % |
Net investment income | 1.95 % | 1.40 % | 1.47 % | 1.64 % | 2.15 % |
Supplemental data | |||||
Portfolio turnover rate | 8 % | 18 % | 16 % | 24 % | 20 % |
Net assets, end of period (000s omitted) | $25,302 | $34,561 | $50,251 | $79,863 | $98,411 |
1 | Calculated based upon average shares outstanding |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
Allspring Municipal Bond Fund | 73
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class R6 | 2023 | 2022 | 2021 | 2020 | 20191 |
Net asset value, beginning of period | $9.70 | $10.83 | $10.55 | $10.55 | $10.21 |
Net investment income | 0.30 | 0.26 | 0.28 | 0.29 | 0.30 |
Net realized and unrealized gains (losses) on investments | 0.01 | (1.13 ) | 0.28 | 0.01 | 0.34 |
Total from investment operations | 0.31 | (0.87 ) | 0.56 | 0.30 | 0.64 |
Distributions to shareholders from | |||||
Net investment income | (0.30 ) | (0.26 ) | (0.28 ) | (0.29 ) | (0.30 ) |
Net realized gains | 0.00 | 0.00 | 0.00 | (0.01 ) | 0.00 |
Total distributions to shareholders | (0.30 ) | (0.26 ) | (0.28 ) | (0.30 ) | (0.30 ) |
Net asset value, end of period | $9.71 | $9.70 | $10.83 | $10.55 | $10.55 |
Total return2 | 3.23 % | (8.14 )% | 5.33 % | 2.90 % | 6.43 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.39 % | 0.39 % | 0.39 % | 0.39 % | 0.40 % |
Net expenses | 0.39 % | 0.39 % | 0.39 % | 0.39 % | 0.40 % |
Net investment income | 3.10 % | 2.55 % | 2.58 % | 2.76 % | 3.16 % |
Supplemental data | |||||
Portfolio turnover rate | 8 % | 18 % | 16 % | 24 % | 20 % |
Net assets, end of period (000s omitted) | $809,611 | $612,487 | $373,876 | $276,204 | $72,655 |
1 | For the period from July 31, 2018 (commencement of class operations) to June 30, 2019 |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
74 | Allspring Municipal Bond Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Administrator Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.70 | $10.84 | $10.56 | $10.55 | $10.21 |
Net investment income | 0.28 | 0.24 | 0.25 | 0.27 | 0.31 1 |
Net realized and unrealized gains (losses) on investments | 0.02 | (1.14 ) | 0.28 | 0.02 | 0.34 |
Total from investment operations | 0.30 | (0.90 ) | 0.53 | 0.29 | 0.65 |
Distributions to shareholders from | |||||
Net investment income | (0.28 ) | (0.24 ) | (0.25 ) | (0.27 ) | (0.31 ) |
Net realized gains | 0.00 | 0.00 | 0.00 | (0.01 ) | 0.00 |
Total distributions to shareholders | (0.28 ) | (0.24 ) | (0.25 ) | (0.28 ) | (0.31 ) |
Net asset value, end of period | $9.72 | $9.70 | $10.84 | $10.56 | $10.55 |
Total return | 3.11 % | (8.42 )% | 5.10 % | 2.78 % | 6.51 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.71 % | 0.71 % | 0.71 % | 0.71 % | 0.72 % |
Net expenses | 0.60 % | 0.60 % | 0.60 % | 0.60 % | 0.60 % |
Net investment income | 2.89 % | 2.31 % | 2.37 % | 2.54 % | 3.02 % |
Supplemental data | |||||
Portfolio turnover rate | 8 % | 18 % | 16 % | 24 % | 20 % |
Net assets, end of period (000s omitted) | $1,263,910 | $1,034,623 | $1,000,652 | $1,017,781 | $832,318 |
1 | Calculated based upon average shares outstanding |
The accompanying notes are an integral part of these financial statements.
Allspring Municipal Bond Fund | 75
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Institutional Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.70 | $10.83 | $10.55 | $10.55 | $10.21 |
Net investment income | 0.29 | 0.26 | 0.27 | 0.29 | 0.33 |
Net realized and unrealized gains (losses) on investments | 0.01 | (1.13 ) | 0.28 | 0.01 | 0.34 |
Total from investment operations | 0.30 | (0.87 ) | 0.55 | 0.30 | 0.67 |
Distributions to shareholders from | |||||
Net investment income | (0.29 ) | (0.26 ) | (0.27 ) | (0.29 ) | (0.33 ) |
Net realized gains | 0.00 | 0.00 | 0.00 | (0.01 ) | 0.00 |
Total distributions to shareholders | (0.29 ) | (0.26 ) | (0.27 ) | (0.30 ) | (0.33 ) |
Net asset value, end of period | $9.71 | $9.70 | $10.83 | $10.55 | $10.55 |
Total return | 3.18 % | (8.19 )% | 5.28 % | 2.85 % | 6.67 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.44 % | 0.44 % | 0.44 % | 0.44 % | 0.45 % |
Net expenses | 0.44 % | 0.44 % | 0.44 % | 0.44 % | 0.45 % |
Net investment income | 3.05 % | 2.47 % | 2.53 % | 2.71 % | 3.15 % |
Supplemental data | |||||
Portfolio turnover rate | 8 % | 18 % | 16 % | 24 % | 20 % |
Net assets, end of period (000s omitted) | $3,433,747 | $2,735,568 | $3,043,109 | $3,006,622 | $2,862,588 |
The accompanying notes are an integral part of these financial statements.
76 | Allspring Municipal Bond Fund
Notes to financial statements
Notes to financial statements
1.
ORGANIZATION
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Municipal 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.
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.
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, 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.
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.
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 and 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 received 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.
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
Allspring Municipal Bond Fund | 77
Notes to financial statements
been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the 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 June 30, 2023, the aggregate cost of all investments for federal income tax purposes was $6,551,313,546 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $52,233,352 |
Gross unrealized losses | (217,538,899 ) |
Net unrealized losses | $(165,305,547 ) |
As of June 30, 2023, the Fund had capital loss carryforwards which consist of $57,261,025 in short-term capital losses and $20,141,339 in long-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.
78 | Allspring Municipal Bond Fund
Notes to financial statements
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2023:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Closed-end fund obligations | $0 | $42,000,000 | $0 | $42,000,000 |
Municipal obligations | 0 | 6,309,519,444 | 0 | 6,309,519,444 |
Short-term investments | ||||
Investment companies | 34,488,555 | 0 | 0 | 34,488,555 |
Total assets | $34,488,555 | $6,351,519,444 | $0 | $6,386,007,999 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended June 30, 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 | 0.400 % |
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 year ended June 30, 2023, the management fee was equivalent to an annual rate of 0.34% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.20% 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 | 0.15 % |
Class C | 0.15 |
Class R6 | 0.03 |
Administrator Class | 0.10 |
Institutional Class | 0.08 |
Prior to June 30, 2023, the class-level administration fee for Class A and Class C was 0.16% of the average daily net assets of each respective class.
Allspring Municipal Bond Fund | 79
Notes to financial statements
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 October 31, 2023 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 June 30, 2023, the contractual expense caps are as follows:
EXPENSE RATIO CAPS | |
Class A | 0.75 % |
Class C | 1.50 |
Class R6 | 0.40 |
Administrator Class | 0.60 |
Institutional Class | 0.45 |
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 year ended June 30, 2023, Allspring Funds Distributor received $13,173 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the year ended June 30, 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. Pursuant to these procedures, the Fund had $406,620,000, $244,280,000 and $0 in interfund purchases, sales and net realized gains (losses), respectively, during the year ended June 30, 2023.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2023 were $1,709,605,493 and $459,472,601, 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 year June 30, 2023, there were no borrowings by the Fund under the agreement.
7.
DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid was $171,992,935 and $132,322,435 of tax-exempt income for the years ended June 30, 2023 and June 30, 2022, respectively.
80 | Allspring Municipal Bond Fund
Notes to financial statements
As of June 30, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | Unrealized losses | Capital loss carryforward |
$5,208,753 | $(165,305,547 ) | $(77,402,364 ) |
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 Municipal Bond Fund | 81
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring Municipal Bond Fund (the Fund), one of the funds constituting Allspring Funds Trust, including the portfolio of investments, as of June 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of June 30, 2023, by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
August 25, 2023
82 | Allspring Municipal Bond Fund
Other information (unaudited)
Other information
Tax information
Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2023.
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 1-866-259-3305, 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 Municipal Bond Fund | 83
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 |
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 |
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.
84 | Allspring Municipal Bond 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 |
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 Municipal Bond Fund | 85
Other information (unaudited)
Officers1
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 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 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.
86 | Allspring Municipal Bond Fund
Other information (unaudited)
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 15-17, 2023 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Municipal Bond Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2023, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
The Board noted that it initially approved the Advisory Agreements at a Board meeting held in May 2021, each for a two-year term, in advance of the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC,1 a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. (the “Transaction”). The Trustees also noted that, while they did not specifically consider the continuation of the Advisory Agreements in 2022 as a result of the two-year term that was approved in 2021, the Trustees received and considered certain information at a Board meeting held in April 2022 that was applicable to the Advisory Agreements, including an overview and financial review of the Allspring Global Investments business, information regarding certain ancillary agreements that were approved by the Board at the April 2022 Board meeting, and comparative data regarding Fund fees and expenses.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2023. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business. The Board also considered information about retention arrangements with respect to key personnel of Allspring Global Investments that were put in place in connection with the Transaction. The Board took into account information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the Transaction under a transition services agreement and the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
1
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
Allspring Municipal Bond Fund | 87
Other information (unaudited)
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, and Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2022. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was higher than the investment performance of its benchmark index, the Bloomberg Municipal Bond Index, for the one- and ten-year periods under review, and that the investment performance of the Fund was in range of the investment performance of its benchmark index for the three- and five-year periods under review.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for the Institutional Class and the Class R6 shares, equal to the median net operating expense ratios of the expense Groups for the Administrator Class and in range of the median net operating expense ratios of the expense Groups for the Class A shares.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than the sum of these average rates for the Fund’s expense Groups for all share classes, except that the Management Rates of the Fund were in range of the sum of these average rates for the Fund’s expense Groups for the Class A shares.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
88 | Allspring Municipal Bond Fund
Other information (unaudited)
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Profitability
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and differences in how Allspring Global Investments calculates its pre-tax profit metric versus the methodology used when Allspring Funds Management was part of Wells Fargo. It was noted that the impact of such differences had only minor impact on the financial results presented. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser and fees earned in the past by Allspring Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund complex’s securities lending collateral.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
Allspring Municipal Bond Fund | 89
Other information (unaudited)
Liquidity risk management program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that operate as money market funds), including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund’s investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the “Council”) composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 16-17, 2023, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2022 through December 31, 2022 (the “Reporting Period”). The Report noted significant liquidity events impacting the Funds related to extended foreign market holidays as well as the difficulty of trading and settlement of most Russia-related securities due to sanctions activity. The Report noted that there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage the Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
90 | Allspring Municipal Bond 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
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.
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Contents
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The views expressed and any forward-looking statements are as of June 30, 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 Municipal Sustainability Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Municipal Sustainability Fund for the 12-month period that ended June 30, 2023. Globally, stocks and bonds experienced heightened volatility through the period. The market was focused on persistently high inflation and the impact of ongoing aggressive central bank rate hikes. Compounding these concerns were the global reverberations of the Russia-Ukraine war. Riskier assets rallied in 2023, with anticipation of an end to the tight monetary policy despite concerns of a possible impending recession. After suffering deep and broad losses through 2022, bonds now benefit from a base of higher yields that can help generate higher income. However, ongoing rate hikes continued to be a headwind during recent months.
For the 12-month period, stocks generally outperformed bonds—both domestic U.S. and global. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 19.59%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 12.72%, while the MSCI EM Index (Net) (USD)3 had more muted performance, with a gain of 1.75%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -0.94%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 fell 1.83%, the Bloomberg Municipal Bond Index6 gained 3.19%, and the ICE BofA U.S. High Yield Index7 returned 8.97%.
Despite high inflation and central bank rate hikes, markets rallied.
Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong: July nonfarm payrolls grew by more than 500,000 and U.S. unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices—major contributors to recent overall inflation—fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with mortgage rates at a 13-year high. The Federal Reserve (Fed) raised the federal funds rate 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to further rate hikes.
August was a broadly challenging month. High inflation persisted, cresting 9% in the eurozone on an annual basis and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June peak. One positive was the resilient U.S. jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act. Its primary stated goals include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“ Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong. ”
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 the 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 Municipal Sustainability Fund
Letter to shareholders (unaudited)
In September, all asset classes suffered further major losses. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar weighed on results for investors holding non-U.S.-dollar assets. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The Bank of England (BoE) then stepped in and bought long-dated government bonds.
Equities had a reprieve in October. 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 increasing 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.
Financial markets cooled in December, with U.S. equities declining overall in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever, with generally flat 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 wound 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 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.
Markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks would 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 was not falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the BoE and the European Central Bank (ECB) both raised rates by 0.50%.
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 banking industry turmoil created an additional challenge for central banks in balancing inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. 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 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. ”
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.
Allspring Municipal Sustainability Fund | 3
Letter to shareholders (unaudited)
Economic data released in April pointed to global resilience, as Purchasing Managers Indexes1 in the U.S., U.K., and eurozone beat expectations and China reported first-quarter annualized economic growth of 4.5%. Despite banking industry stress, developed market stocks had monthly gains. The U.S. labor market remained strong, with a 3.5% jobless rate and monthly payroll gains above 200,000. However, uncertainty and inflationary concerns weighed on investors in the U.S. and abroad.
May was marked by a divergence between expanding activity in services and an overall contraction in manufacturing activity in the U.S., U.K., and eurozone. Core inflation remained elevated in the U.S. and Europe, despite the ongoing efforts of the Fed and ECB, which included rate hikes of 0.25% by both in May. Stubborn inflation and the resilient U.S. labor market led to expectations of further interest rate hikes, overall monthly declines across bond indexes, and mixed results for stocks in May. Investor worries over a U.S. debt ceiling impasse were modest, and market confidence was buoyed by a deal in late May to avert a potential U.S. debt default.
June featured the Fed’s first pause on interest rate hikes since March 2022, when it began its aggressive campaign to rein in inflation. However, core CPI, excluding food and energy prices, while continuing to decline, remained stubbornly high in June, at 4.8%, well above the Fed’s 2.0% target rate. With the U.S. unemployment rate still at 3.6%, near a historical low, and U.S. payrolls growing in June for the 30th consecutive month, expectations of more Fed rate hikes were reinforced. However, U.S. and global stocks had strong returns in June.
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
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.
1
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.
4 | Allspring Municipal Sustainability Fund
Letter to shareholders (unaudited)
Notice to Shareholders |
Beginning in July 2024, the Fund will be required by the Securities and Exchange Commission to send shareholders a paper copy of a new tailored shareholder report in place of the full shareholder report that you are now receiving. The tailored shareholder report will contain concise information about the Fund, including certain expense and performance information and fund statistics. If you wish to receive this new tailored shareholder report electronically, please follow the instructions on the back cover of this report. |
Other information that is currently included in the shareholder report, such as the Fund’s financial statements, will be available online and upon request, free of charge, in paper or electronic format. |
Allspring Municipal Sustainability Fund | 5
Performance highlights (unaudited)
Performance highlights
Investment objective | The Fund seeks current income exempt from federal income tax. |
Manager | Allspring Funds Management, LLC |
Subadviser | Allspring Global Investments, LLC |
Portfolio managers | Terry J. Goode, Robert J. Miller, Nicholos Venditti |
Average annual total returns (%) as of June 30, 2023 | |||||||
Including sales charge | Excluding sales charge | Expense ratios1 (%) | |||||
Inception date | 1 year | Since inception | 1 year | Since inception | Gross | Net2 | |
Class A (WMSAX) | 2-28-2020 | -2.69 | -1.64 | 1.88 | -0.28 | 1.34 | 0.75 |
Class C (WMSCX) | 2-28-2020 | 0.90 | -0.59 | 1.90 | -0.59 | 2.09 | 1.50 |
Class R6 (WMSRX) | 2-28-2020 | – | – | 2.34 | 0.10 | 0.96 | 0.40 |
Administrator Class (WMSDX) | 2-28-2020 | – | – | 2.09 | -0.11 | 1.28 | 0.60 |
Institutional Class (WMSIX) | 2-28-2020 | – | – | 2.29 | 0.05 | 1.01 | 0.45 |
Bloomberg Municipal Bond Index3 | – | – | – | 3.19 | -0.82 * | – | – |
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.
* | 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 October 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.75% for Class A, 1.50% for Class C, 0.40% for Class R6, 0.60% for Administrator Class and 0.45% 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 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. |
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. The use of derivatives may reduce returns and/or increase volatility. Investing in environmental, social, and governance (ESG) carries the risk that, under certain market conditions, the investments may underperform products that invest in a broader array of investments. In addition, some ESG investments may be dependent on government tax incentives and subsidies and on political support for certain environmental technologies and companies. The ESG sector also may have challenges such as a limited number of issuers and liquidity in the market, including a robust secondary market. Investing primarily in responsible investments carries the risk that, under certain market conditions, an investment may underperform funds that do not use a responsible investment strategy. This fund is exposed to municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.
6 | Allspring Municipal Sustainability Fund
Performance highlights (unaudited)
Growth of $10,000 investment as of June 30, 20231 |
1 | The chart compares the performance of Class A shares since inception with the Bloomberg Municipal Bond Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%. |
Allspring Municipal Sustainability Fund | 7
Performance highlights (unaudited)
MANAGER’S DISCUSSION
Fund highlights
•The Fund underperformed its benchmark, the Bloomberg Municipal Bond Index, for the 12-month period that ended June 30, 2023.
•Sector and security selection were detractors from performance.
•Yield-curve positioning also detracted from relative performance, with an overweight to the weakest-performing 3-year maturity segment and an underweight to the best-performing 15-year maturity segment.
•A defensive duration position was positive as municipal rates rose over the period.
•The overweight to BBB-rated bonds contributed to relative performance as this was the best-performing segment of credit for the year.
Global economies increase lending rates in hopes of taming runaway inflation.
Entering 2022, the excitement of a post-pandemic world gave way to new whispers and fears of higher prices and broad-based inflation caused by supply chain bottlenecks, increased housing costs, wage increases, and employment market distortions. Those fears quickly became reality and prices began to rise at a historic rate. The U.S. Federal Open Market Committee acted quickly and with purpose: ending open market purchases, reducing its balance sheet, and raising the benchmark overnight lending rate at each monthly meeting through 2022 and early 2023. Fixed income and equity markets fell sharply but began to recover as annual inflation numbers peaked in June and began to recede.
The U.S. unemployment rate, which reached a multigenerational high of more than 14% in the spring of 2020, fell throughout the past year and has settled below 4%. Employers continue to add jobs, especially in service-oriented industries, and the resulting wage increases have further contributed to inflationary pressures. After U.S. gross domestic product turned negative in the first and second quarters of 2022, it expanded at rates above 2% in each subsequent quarter. The federal funds rate, which began 2022 at 0.25% to 0.50%, was raised 10 consecutive times before a pause in June 2023. It now sits at 5.25% to 5.50% as the Federal Reserve (Fed) attempts to curb inflation. In this environment, some form of recession seems imminent.
In the wake of continued rate increases, U.S. fixed income yields rose dramatically as investors reacted to Fed actions, with the yield on the 10-year Treasury ending the period near 4%. Rising U.S. Treasury yields affected all fixed income sectors in 2022, with all seeing their worst returns in more than 40 years. The U.S. Treasury yield curve remained substantially inverted throughout the period, which has driven many investors into shorter-term interest-bearing vehicles, including money markets.
Municipals sold off drastically to start the period but began to rebound in the fourth quarter of 2022. The Bloomberg Municipal Bond Index fell nearly 8% and the broader municipal market had more than $124 billion in outflows before stabilizing early in 2023. For the first time in history, the municipal yield curve also inverted but not to the degree seen in Treasuries.
While this environment has certainly been painful for municipal investors, the drawdown has created significantly improved opportunities and entry points. Municipal to Treasury ratios ended the period elevated but at far better levels than in 2021. Municipal credit spreads have widened substantially while the underlying fundamental credit of municipalities remains strong following trillions of dollars in government stimulus. We believe investors will continue to return to the municipal market in the latter half of 2023, attracted by increased yields, positive fundamental strength, and good relative value.
Credit quality as of June 30, 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. |
8 | Allspring Municipal Sustainability Fund
Performance highlights (unaudited)
We use a sustainable framework for municipal bond investing.
The Fund looks to take advantage of the natural alignment of the municipal sector with sustainable outcomes. Our robust framework and scoring methodology align with green bond principles and social bond principles as we seek to identify bonds that we believe have positive impact. We also evaluate environmental, social, and governance risk as part of our fundamental credit research. A variety of factors affected the Fund’s relative performance. We were overweight BBB-rated debt and A-rated debt and underweight AA-rated debt and AAA-rated debt, and we had out-of-benchmark allocations to non-investment-grade and nonrated credits. Spreads widened throughout the period for lower-rated investment-grade bonds. Controlling for duration and curve effects, our overweights to medium- and lower-quality credits contributed. High yield municipals (nonrated and non-investment-grade) performed poorly for the period. The highest-rated municipals also underperformed the index. As expected, negative fund flows caused lower-rated and nonrated sectors to underperform.
We anticipate that investment-grade municipal defaults will remain rare, but we believe investors should continue to focus on security selection. We were underweight general obligation bonds and overweight revenue bonds, which detracted from performance. Security selection was strong in the housing and electric sectors but lagged in the hospital, transportation, special tax, and water/sewer sectors. Federal stimulus support continues to bolster many municipal sectors, so we expect them to continue to perform well. Risks remain elevated in senior care and project finance sectors. An overweight to premium coupons (5.25% to 5.50%) contributed to performance.
Effective maturity distribution as of June 30, 20231 |
1 | Figures represent the percentage of the Fund’s total investments. These amounts are subject to change and may have changed since the date specified. |
The outlook remains favorable for active bond management, in our view.
We believe the outlook for bond selection remains favorable. Increased dispersion within rating tiers and sectors offers the opportunity for differentiation among credits. As the period ended, primary and secondary market opportunities were favorable due to elevated municipal yields relative to the beginning of the period and wider credit spreads.
Allspring Municipal Sustainability Fund | 9
Fund expenses (unaudited)
Fund expenses
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 January 1, 2023 to June 30, 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 1-1-2023 | Ending account value 6-30-2023 | Expenses paid during the period1 | Annualized net expense ratio | |
Class A | ||||
Actual | $1,000.00 | $1,019.62 | $3.76 | 0.75 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.08 | $3.76 | 0.75 % |
Class C | ||||
Actual | $1,000.00 | $1,022.04 | $6.52 | 1.30 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.35 | $6.51 | 1.30 % |
Class R6 | ||||
Actual | $1,000.00 | $1,022.48 | $2.01 | 0.40 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.81 | $2.01 | 0.40 % |
Administrator Class | ||||
Actual | $1,000.00 | $1,020.93 | $3.01 | 0.60 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.82 | $3.01 | 0.60 % |
Institutional Class | ||||
Actual | $1,000.00 | $1,022.23 | $2.26 | 0.45 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.56 | $2.26 | 0.45 % |
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 181 divided by 365 (to reflect the one-half-year period). |
10 | Allspring Municipal Sustainability Fund
Portfolio of investments—June 30, 2023
Portfolio of investments
Interest rate | Maturity date | Principal | Value | |||
Municipal obligations: 94.09% | ||||||
Arizona: 1.24% | ||||||
GO revenue: 1.24% | ||||||
Maricopa County Elementary School District No. 25-Liberty Series A (AGM Insured) | 5.00 % | 7-1-2023 | $ | 300,000 | $300,000 | |
California: 6.73% | ||||||
Education revenue: 0.46% | ||||||
California Municipal Finance Authority STREAM Charter School Series A144A | 5.00 | 6-15-2051 | 125,000 | 111,877 | ||
Health revenue: 0.44% | ||||||
California Municipal Finance Authority Eisenhower Medical Center Series A | 5.00 | 7-1-2027 | 100,000 | 104,847 | ||
Housing revenue: 4.25% | ||||||
California Infrastructure & Economic Development Bank California State Teachers’ Retirement System | 5.00 | 8-1-2030 | 310,000 | 348,458 | ||
California Municipal Finance Authority CHF-Riverside II LLC | 5.00 | 5-15-2029 | 375,000 | 402,093 | ||
California Municipal Finance Authority Special Finance Agency XII Allure Apartments Series A2144A | 4.38 | 8-1-2049 | 200,000 | 154,810 | ||
California Statewide Communities Development Authority Community Improvement Authority Series B144A | 4.00 | 9-1-2046 | 150,000 | 124,858 | ||
1,030,219 | ||||||
Miscellaneous revenue: 1.58% | ||||||
City & County of San Francisco Series A COP | 4.00 | 4-1-2034 | 370,000 | 383,362 | ||
1,630,305 | ||||||
Colorado: 6.75% | ||||||
Education revenue: 3.21% | ||||||
Colorado ECFA Prospect Ridge Academy Series A | 5.00 | 3-15-2027 | 535,000 | 560,292 | ||
Colorado School of Mines Series B (AGM Insured) | 5.25 | 12-1-2052 | 200,000 | 216,717 | ||
777,009 | ||||||
Health revenue: 2.02% | ||||||
Colorado Health Facilities Authority AdventHealth Obligated Group Series A | 4.00 | 11-15-2043 | 500,000 | 490,395 | ||
Tax revenue: 1.52% | ||||||
Regional Transportation District Denver Transit Partners LLC Series A | 4.00 | 7-15-2040 | 375,000 | 367,401 | ||
1,634,805 | ||||||
District of Columbia: 1.13% | ||||||
Water & sewer revenue: 1.13% | ||||||
District of Columbia Water & Sewer Authority Series A | 5.00 | 10-1-2038 | 250,000 | 274,866 | ||
Florida: 0.44% | ||||||
Education revenue: 0.44% | ||||||
Florida Development Finance Corp. United Cerebral Palsy of Central Florida, Inc. Series A | 5.00 | 6-1-2050 | 125,000 | 107,360 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Municipal Sustainability Fund | 11
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Georgia: 1.09% | ||||||
Education revenue: 1.09% | ||||||
Private Colleges & Universities Authority Mercer University | 5.25 % | 10-1-2051 | $ | 250,000 | $264,588 | |
Guam: 1.05% | ||||||
Water & sewer revenue: 1.05% | ||||||
Guam Government Waterworks Authority Series A | 5.00 | 1-1-2050 | 250,000 | 253,767 | ||
Idaho: 1.63% | ||||||
Health revenue: 1.63% | ||||||
Idaho Health Facilities Authority Trinity Health Corp. Obligated Group Series A | 5.00 | 12-1-2047 | 385,000 | 395,323 | ||
Illinois: 19.10% | ||||||
Education revenue: 2.55% | ||||||
Illinois Finance Authority Lawndale Educational & Regional Network Charter School Obligated Group | 4.00 | 11-1-2051 | 750,000 | 617,210 | ||
GO revenue: 2.12% | ||||||
City of Decatur (BAM Insured) | 5.00 | 3-1-2024 | 375,000 | 377,963 | ||
Kendall Kane & Will Counties Community Unit School District No. 308 (AGM Insured)¤ | 0.00 | 2-1-2027 | 155,000 | 136,520 | ||
514,483 | ||||||
Health revenue: 4.32% | ||||||
Illinois Finance Authority Carle Foundation Obligated Group Series A | 4.00 | 8-15-2048 | 500,000 | 455,082 | ||
Southwestern Illinois Development Authority Hospital Sisters Services Obligated Group Series A | 5.00 | 2-15-2025 | 580,000 | 592,626 | ||
1,047,708 | ||||||
Tax revenue: 2.13% | ||||||
Chicago Transit Authority Sales Tax Receipts Fund (AGM Insured) | 5.00 | 12-1-2046 | 500,000 | 516,252 | ||
Transportation revenue: 2.82% | ||||||
Public Building Commission of Chicago (Ambac Insured) | 5.25 | 3-1-2031 | 600,000 | 683,193 | ||
Water & sewer revenue: 5.16% | ||||||
City of Chicago Wastewater Transmission Revenue Series A (AGM Insured) | 5.25 | 1-1-2053 | 500,000 | 544,602 | ||
City of Chicago Wastewater Transmission Revenue Series C | 5.00 | 1-1-2024 | 700,000 | 705,090 | ||
1,249,692 | ||||||
4,628,538 | ||||||
Indiana: 4.54% | ||||||
Health revenue: 2.22% | ||||||
Indiana Finance Authority Series A%% | 5.00 | 10-1-2053 | 500,000 | 538,583 | ||
Housing revenue: 2.32% | ||||||
Indiana Finance Authority Indiana Finance Authority State Revolving Fund Series E | 5.00 | 2-1-2047 | 500,000 | 561,138 | ||
1,099,721 | ||||||
The accompanying notes are an integral part of these financial statements.
12 | Allspring Municipal Sustainability Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Massachusetts: 6.06% | ||||||
Education revenue: 2.14% | ||||||
Massachusetts Development Finance Agency Trustees of Boston College Series U | 5.00 % | 7-1-2025 | $ | 500,000 | $519,255 | |
Health revenue: 3.92% | ||||||
Massachusetts Development Finance Agency Boston Medical Center Corp. Obligated Group Series D | 5.00 | 7-1-2044 | 300,000 | 301,479 | ||
Massachusetts Development Finance Agency Boston Medical Center Corp. Obligated Group Series G | 5.25 | 7-1-2052 | 500,000 | 524,313 | ||
Massachusetts Development Finance Agency Milford Regional Medical Center Obligated Group Series G144A | 5.00 | 7-15-2025 | 125,000 | 124,890 | ||
950,682 | ||||||
1,469,937 | ||||||
Michigan: 3.92% | ||||||
Housing revenue: 2.19% | ||||||
Michigan State Building Authority Series I | 5.00 | 10-15-2031 | 500,000 | 529,738 | ||
Water & sewer revenue: 1.73% | ||||||
Great Lakes Water Authority Water Supply System Revenue Series D | 5.00 | 7-1-2031 | 400,000 | 419,645 | ||
949,383 | ||||||
Minnesota: 0.36% | ||||||
Education revenue: 0.36% | ||||||
Housing & Redevelopment Authority of The City of St. Paul Minnesota Hmong College Preparatory Academy Series A | 5.00 | 9-1-2055 | 100,000 | 87,379 | ||
Nevada: 2.32% | ||||||
GO revenue: 2.32% | ||||||
County of Clark | 5.00 | 11-1-2029 | 500,000 | 561,362 | ||
New Jersey: 4.37% | ||||||
Education revenue: 2.80% | ||||||
Passaic County Improvement Authority Paterson Arts & Science Charter School | 5.25 | 7-1-2043 | 670,000 | 679,143 | ||
Housing revenue: 1.57% | ||||||
Garden State Preservation Trust Series A (AGM Insured) | 5.75 | 11-1-2028 | 100,000 | 108,609 | ||
New Jersey EDA State of New Jersey Department of the Treasury Series XX | 4.00 | 6-15-2024 | 270,000 | 271,512 | ||
380,121 | ||||||
1,059,264 | ||||||
New York: 8.71% | ||||||
Education revenue: 5.85% | ||||||
Allegany County Capital Resource Corp. Houghton College Series A | 5.00 | 12-1-2026 | 390,000 | 396,604 | ||
Build NYC Resource Corp. East Harlem Scholars Academy Charter School Obligated Group144A | 5.00 | 6-1-2032 | 375,000 | 378,908 | ||
Build NYC Resource Corp. Integration Charter Schools Series A144A | 5.00 | 6-1-2041 | 150,000 | 142,447 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Municipal Sustainability Fund | 13
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
New York State Dormitory Authority Series A | 5.00 % | 7-1-2038 | $ | 270,000 | $290,359 | |
Tompkins County Development Corp. Ithaca College | 5.00 | 7-1-2041 | 205,000 | 209,590 | ||
1,417,908 | ||||||
GO revenue: 0.52% | ||||||
City of Poughkeepsie | 5.00 | 6-1-2024 | 125,000 | 125,414 | ||
Water & sewer revenue: 2.34% | ||||||
New York State Environmental Facilities Corp. New York State Revolving Fund Series A | 5.00 | 6-15-2032 | 500,000 | 567,797 | ||
2,111,119 | ||||||
North Carolina: 0.75% | ||||||
Housing revenue: 0.75% | ||||||
North Carolina Capital Facilities Finance Agency Arc of North Carolina Obligated Group Series A (Department of Housing and Urban Development Insured) | 5.00 | 10-1-2024 | 180,000 | 180,897 | ||
Oklahoma: 1.03% | ||||||
Housing revenue: 1.03% | ||||||
McIntosh County Educational Facilities Authority McIntosh County Independent School District No. 19 Checotah | 2.00 | 9-1-2023 | 250,000 | 249,019 | ||
Oregon: 4.05% | ||||||
GO revenue: 2.21% | ||||||
City of Bend | 5.00 | 6-1-2050 | 500,000 | 536,633 | ||
Health revenue: 1.84% | ||||||
Oregon State Facilities Authority Samaritan Health Services, Inc. Obligated Group Series A | 5.00 | 10-1-2031 | 430,000 | 445,743 | ||
982,376 | ||||||
Pennsylvania: 5.96% | ||||||
Education revenue: 1.03% | ||||||
Allegheny County Higher Education Building Authority Robert Morris University | 5.00 | 10-15-2037 | 250,000 | 249,596 | ||
Health revenue: 2.65% | ||||||
Lancaster County Hospital Authority Penn State Health Obligated Group | 5.00 | 11-1-2051 | 625,000 | 641,606 | ||
Transportation revenue: 2.28% | ||||||
Pennsylvania Turnpike Commission Series B1 | 5.25 | 6-1-2047 | 535,000 | 552,800 | ||
1,444,002 | ||||||
South Carolina: 1.20% | ||||||
Education revenue: 1.20% | ||||||
South Carolina Jobs-EDA Wofford College | 5.00 | 4-1-2033 | 270,000 | 292,024 | ||
The accompanying notes are an integral part of these financial statements.
14 | Allspring Municipal Sustainability Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Texas: 0.94% | ||||||
Water & sewer revenue: 0.94% | ||||||
Texas Water Development Board State Water Implementation Revenue Fund for Texas Series B | 5.00 % | 4-15-2024 | $ | 225,000 | $228,138 | |
Utah: 4.58% | ||||||
Housing revenue: 4.58% | ||||||
University of Utah Series B | 5.00 | 8-1-2042 | 1,000,000 | 1,110,178 | ||
Washington: 5.49% | ||||||
Education revenue: 0.63% | ||||||
Washington Higher Education Facilities Authority Seattle University | 5.00 | 5-1-2027 | 145,000 | 153,011 | ||
GO revenue: 2.73% | ||||||
King County Public Hospital District No. 1 | 5.00 | 12-1-2026 | 625,000 | 661,480 | ||
Utilities revenue: 2.13% | ||||||
Chelan County Public Utility District No. 1 Series A | 4.00 | 7-1-2036 | 500,000 | 516,093 | ||
1,330,584 | ||||||
Wisconsin: 0.65% | ||||||
Health revenue: 0.65% | ||||||
PFA Washoe Barton Medical Clinic Series A | 4.00 | 12-1-2051 | 200,000 | 158,063 | ||
Total municipal obligations (Cost $24,003,637) | 22,802,998 | |||||
Yield | Shares | |||||
Short-term investments: 6.79% | ||||||
Investment companies: 6.79% | ||||||
Allspring Municipal Cash Management Money Market Fund Institutional Class♠∞## | 4.07 | 1,645,858 | 1,646,188 | |||
Total short-term investments (Cost $1,646,187) | 1,646,188 | |||||
Total investments in securities (Cost $25,649,824) | 100.88 % | 24,449,186 | ||||
Other assets and liabilities, net | (0.88 ) | (212,642 ) | ||||
Total net assets | 100.00 % | $24,236,544 | ||||
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 purchased on a when-issued basis. |
♠ | 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 for when-issued securities. |
Abbreviations: | |
AGM | Assured Guaranty Municipal |
Ambac | Ambac Financial Group Incorporated |
BAM | Build America Mutual Assurance Company |
COP | Certificate of participation |
ECFA | Educational & Cultural Facilities Authority |
EDA | Economic Development Authority |
GO | General obligation |
PFA | Public Finance Authority |
The accompanying notes are an integral part of these financial statements.
Allspring Municipal Sustainability Fund | 15
Portfolio of investments—June 30, 2023
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 Municipal Cash Management Money Market Fund Institutional Class | $1,657,378 | $9,947,594 | $(9,958,535 ) | $(76 ) | $(173 ) | $1,646,188 | 1,645,858 | $16,990 |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Municipal Sustainability Fund
Statement of assets and liabilities—June 30, 2023
Financial statements
Statement of assets and liabilities
Assets | |
Investments in unaffiliated securities, at value (cost $24,003,637) | $22,802,998 |
Investments in affiliated securities, at value (cost $1,646,187) | 1,646,188 |
Cash | 198 |
Receivable for interest | 292,236 |
Receivable from manager | 18,307 |
Receivable for Fund shares sold | 2,966 |
Prepaid expenses and other assets | 35,553 |
Total assets | 24,798,446 |
Liabilities | |
Payable for when-issued transactions | 539,015 |
Payable for Fund shares redeemed | 7,221 |
Dividends payable | 3,372 |
Administration fees payable | 1,071 |
Trustees’ fees and expenses payable | 192 |
Accrued expenses and other liabilities | 11,031 |
Total liabilities | 561,902 |
Total net assets | $24,236,544 |
Net assets consist of | |
Paid-in capital | $26,098,589 |
Total distributable loss | (1,862,045 ) |
Total net assets | $24,236,544 |
Computation of net asset value and offering price per share | |
Net assets–Class A | $183,363 |
Shares outstanding–Class A1 | 9,799 |
Net asset value per share–Class A | $18.71 |
Maximum offering price per share – Class A2 | $19.59 |
Net assets–Class C | $26,051 |
Shares outstanding–Class C1 | 1,381 |
Net asset value per share–Class C | $18.86 |
Net assets–Class R6 | $20,394,827 |
Shares outstanding–Class R61 | 1,089,006 |
Net asset value per share–Class R6 | $18.73 |
Net assets–Administrator Class | $671,939 |
Shares outstanding–Administrator Class1 | 35,886 |
Net asset value per share–Administrator Class | $18.72 |
Net assets–Institutional Class | $2,960,364 |
Shares outstanding–Institutional Class1 | 158,079 |
Net asset value per share–Institutional Class | $18.73 |
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.
Allspring Municipal Sustainability Fund | 17
Statement of operations—year ended June 30, 2023
Statement of operations
Investment income | |
Interest | $703,336 |
Income from affiliated securities | 16,990 |
Total investment income | 720,326 |
Expenses | |
Management fee | 105,944 |
Administration fees | |
Class A | 1,794 |
Class C | 1,474 |
Class R6 | 6,051 |
Administrator Class | 1,309 |
Institutional Class | 2,370 |
Shareholder servicing fees | |
Class A | 2,803 |
Class C | 2,303 |
Administrator Class | 3,272 |
Custody and accounting fees | 6,101 |
Professional fees | 49,852 |
Registration fees | 61,161 |
Shareholder report expenses | 30,454 |
Trustees’ fees and expenses | 21,873 |
Other fees and expenses | 4,128 |
Total expenses | 300,889 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (176,939 ) |
Class A | (3 ) |
Class C | (273 ) |
Administrator Class | (1,462 ) |
Net expenses | 122,212 |
Net investment income | 598,114 |
Realized and unrealized gains (losses) on investments | |
Net realized losses on | |
Unaffiliated securities | (216,703 ) |
Affiliated securities | (76 ) |
Net realized losses on investments | (216,779 ) |
Net change in unrealized gains (losses) on | |
Unaffiliated securities | 202,536 |
Affiliated securities | (173 ) |
Net change in unrealized gains (losses) on investments | 202,363 |
Net realized and unrealized gains (losses) on investments | (14,416 ) |
Net increase in net assets resulting from operations | $583,698 |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Municipal Sustainability Fund
Statement of changes in net assets
Statement of changes in net assets
Year ended June 30, 2023 | Year ended June 30, 2022 | |||
Operations | ||||
Net investment income | $598,114 | $517,750 | ||
Net realized losses on investments | (216,779 ) | (195,609 ) | ||
Net change in unrealized gains (losses) on investments | 202,363 | (2,945,055 ) | ||
Net increase (decrease) in net assets resulting from operations | 583,698 | (2,622,914 ) | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class A | (21,904 ) | (20,430 ) | ||
Class C | (12,465 ) | (9,713 ) | ||
Class R6 | (466,948 ) | (420,586 ) | ||
Administrator Class | (27,846 ) | (20,570 ) | ||
Institutional Class | (67,783 ) | (47,135 ) | ||
Total distributions to shareholders | (596,946 ) | (518,434 ) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class A | 5,552 | 103,768 | 11,757 | 247,206 |
Administrator Class | 30,854 | 572,220 | 1,286 | 26,349 |
Institutional Class | 127,689 | 2,394,151 | 116,315 | 2,407,016 |
3,070,139 | 2,680,571 | |||
Reinvestment of distributions | ||||
Class A | 1,176 | 21,881 | 663 | 13,052 |
Class C | 664 | 12,425 | 283 | 5,551 |
Class R6 | 24,934 | 464,127 | 14,072 | 277,876 |
Administrator Class | 1,490 | 27,761 | 658 | 12,951 |
Institutional Class | 3,616 | 67,381 | 1,957 | 38,861 |
593,575 | 348,291 | |||
Payment for shares redeemed | ||||
Class A | (58,932 ) | (1,100,729 ) | (5,387 ) | (109,248 ) |
Class C | (49,566 ) | (933,310 ) | 0 | 0 |
Administrator Class | (54,592 ) | (1,021,309 ) | (482 ) | (9,946 ) |
Institutional Class | (105,313 ) | (1,958,155 ) | (41,768 ) | (819,382 ) |
(5,013,503 ) | (938,576 ) | |||
Net increase (decrease) in net assets resulting from capital share transactions | (1,349,789 ) | 2,090,286 | ||
Total decrease in net assets | (1,363,037 ) | (1,051,062 ) | ||
Net assets | ||||
Beginning of period | 25,599,581 | 26,650,643 | ||
End of period | $24,236,544 | $25,599,581 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Municipal Sustainability Fund | 19
Financial highlights
Financial highlights
(For a share outstanding throughout each period)
(For a share outstanding throughout each period)
Year ended June 30 | ||||
Class A | 2023 | 2022 | 2021 | 20201 |
Net asset value, beginning of period | $18.73 | $21.03 | $20.35 | $20.00 |
Net investment income | 0.37 2 | 0.32 | 0.34 | 0.10 |
Net realized and unrealized gains (losses) on investments | (0.02 ) | (2.29 ) | 0.68 | 0.35 |
Total from investment operations | 0.35 | (1.97 ) | 1.02 | 0.45 |
Distributions to shareholders from | ||||
Net investment income | (0.37 ) | (0.33 ) | (0.34 ) | (0.10 ) |
Net asset value, end of period | $18.71 | $18.73 | $21.03 | $20.35 |
Total return3 | 1.88 % | (9.47 )% | 5.04 % | 2.27 % |
Ratios to average net assets (annualized) | ||||
Gross expenses | 1.44 % | 1.34 % | 1.85 % | 2.26 % |
Net expenses | 0.75 % | 0.75 % | 0.75 % | 0.75 % |
Net investment income | 1.96 % | 1.60 % | 1.64 % | 1.52 % |
Supplemental data | ||||
Portfolio turnover rate | 19 % | 31 % | 77 % | 32 % |
Net assets, end of period (000s omitted) | $183 | $1,161 | $1,156 | $1,020 |
1 | For the period from February 28, 2020 (commencement of class operations) to June 30, 2020 |
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.
20 | Allspring Municipal Sustainability Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | ||||
Class C | 2023 | 2022 | 2021 | 20201 |
Net asset value, beginning of period | $18.83 | $21.03 | $20.35 | $20.00 |
Net investment income | 0.26 2 | 0.30 | 0.19 | 0.05 |
Net realized and unrealized gains (losses) on investments | 0.09 | (2.31 ) | 0.68 | 0.36 |
Total from investment operations | 0.35 | (2.01 ) | 0.87 | 0.41 |
Distributions to shareholders from | ||||
Net investment income | (0.32 ) | (0.19 ) | (0.19 ) | (0.06 ) |
Net asset value, end of period | $18.86 | $18.83 | $21.03 | $20.35 |
Total return3 | 1.90 % | (9.60 )% | 4.30 % | 2.04 % |
Ratios to average net assets (annualized) | ||||
Gross expenses | 1.44 % | 2.09 % | 2.35 % | 3.01 % |
Net expenses | 1.30 %* | 0.88 %* | 1.46 %* | 1.50 % |
Net investment income | 1.41 % | 1.47 % | 0.93 % | 0.78 % |
Supplemental data | ||||
Portfolio turnover rate | 19 % | 31 % | 77 % | 32 % |
Net assets, end of period (000s omitted) | $26 | $947 | $1,051 | $1,017 |
* | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
Year ended June 30, 2023 | 0.11% |
Year ended June 30, 2022 | 0.62% |
Year ended June 30, 2021 | 0.04% |
1 | For the period from February 28, 2020 (commencement of class operations) to June 30, 2020 |
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 Municipal Sustainability Fund | 21
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | ||||
Class R6 | 2023 | 2022 | 2021 | 20201 |
Net asset value, beginning of period | $18.73 | $21.03 | $20.35 | $20.00 |
Net investment income | 0.43 2 | 0.39 | 0.41 | 0.13 2 |
Net realized and unrealized gains (losses) on investments | 0.00 3 | (2.29 ) | 0.68 | 0.35 |
Total from investment operations | 0.43 | (1.90 ) | 1.09 | 0.48 |
Distributions to shareholders from | ||||
Net investment income | (0.43 ) | (0.40 ) | (0.41 ) | (0.13 ) |
Net asset value, end of period | $18.73 | $18.73 | $21.03 | $20.35 |
Total return4 | 2.34 % | (9.16 )% | 5.41 % | 2.39 % |
Ratios to average net assets (annualized) | ||||
Gross expenses | 1.09 % | 0.96 % | 1.48 % | 1.88 % |
Net expenses | 0.40 % | 0.40 % | 0.40 % | 0.40 % |
Net investment income | 2.32 % | 1.95 % | 1.99 % | 1.87 % |
Supplemental data | ||||
Portfolio turnover rate | 19 % | 31 % | 77 % | 32 % |
Net assets, end of period (000s omitted) | $20,395 | $19,929 | $22,082 | $21,367 |
1 | For the period from February 28, 2020 (commencement of class operations) to June 30, 2020 |
2 | Calculated based upon average shares outstanding |
3 | Amount is less than $0.005. |
4 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
22 | Allspring Municipal Sustainability Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | ||||
Administrator Class | 2023 | 2022 | 2021 | 20201 |
Net asset value, beginning of period | $18.73 | $21.03 | $20.35 | $20.00 |
Net investment income | 0.40 2 | 0.35 | 0.37 | 0.11 |
Net realized and unrealized gains (losses) on investments | (0.01 ) | (2.29 ) | 0.68 | 0.35 |
Total from investment operations | 0.39 | (1.94 ) | 1.05 | 0.46 |
Distributions to shareholders from | ||||
Net investment income | (0.40 ) | (0.36 ) | (0.37 ) | (0.11 ) |
Net asset value, end of period | $18.72 | $18.73 | $21.03 | $20.35 |
Total return3 | 2.09 % | (9.34 )% | 5.20 % | 2.32 % |
Ratios to average net assets (annualized) | ||||
Gross expenses | 1.40 % | 1.28 % | 1.77 % | 2.20 % |
Net expenses | 0.60 % | 0.60 % | 0.60 % | 0.60 % |
Net investment income | 2.13 % | 1.75 % | 1.80 % | 1.67 % |
Supplemental data | ||||
Portfolio turnover rate | 19 % | 31 % | 77 % | 32 % |
Net assets, end of period (000s omitted) | $672 | $1,089 | $1,192 | $1,017 |
1 | For the period from February 28, 2020 (commencement of class operations) to June 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.
Allspring Municipal Sustainability Fund | 23
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | ||||
Institutional Class | 2023 | 2022 | 2021 | 20201 |
Net asset value, beginning of period | $18.73 | $21.03 | $20.35 | $20.00 |
Net investment income | 0.43 2 | 0.39 | 0.40 | 0.12 |
Net realized and unrealized gains (losses) on investments | (0.01 ) | (2.30 ) | 0.68 | 0.35 |
Total from investment operations | 0.42 | (1.91 ) | 1.08 | 0.47 |
Distributions to shareholders from | ||||
Net investment income | (0.42 ) | (0.39 ) | (0.40 ) | (0.12 ) |
Net asset value, end of period | $18.73 | $18.73 | $21.03 | $20.35 |
Total return3 | 2.29 % | (9.20 )% | 5.36 % | 2.37 % |
Ratios to average net assets (annualized) | ||||
Gross expenses | 1.14 % | 1.01 % | 1.52 % | 1.93 % |
Net expenses | 0.45 % | 0.45 % | 0.45 % | 0.45 % |
Net investment income | 2.29 % | 1.90 % | 1.94 % | 1.82 % |
Supplemental data | ||||
Portfolio turnover rate | 19 % | 31 % | 77 % | 32 % |
Net assets, end of period (000s omitted) | $2,960 | $2,474 | $1,169 | $1,017 |
1 | For the period from February 28, 2020 (commencement of class operations) to June 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.
24 | Allspring Municipal Sustainability Fund
Notes to financial statements
Notes to financial statements
1.
ORGANIZATION
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Municipal Sustainability 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 Funds 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.
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 any of 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.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, 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 Municipal Sustainability Fund | 25
Notes to financial statements
As of June 30, 2023, the aggregate cost of all investments for federal income tax purposes was $25,649,824 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $18,588 |
Gross unrealized losses | (1,219,226 ) |
Net unrealized losses | $(1,200,638 ) |
As of June 30, 2023, the Fund had capital loss carryforwards which consist of $446,358 in short-term capital losses and $216,217 in long-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.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2023:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Municipal obligations | $0 | $22,802,998 | $0 | $22,802,998 |
Short-term investments | ||||
Investment companies | 1,646,188 | 0 | 0 | 1,646,188 |
Total assets | $1,646,188 | $22,802,998 | $0 | $24,449,186 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended June 30, 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
26 | Allspring Municipal Sustainability Fund
Notes to financial statements
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 | 0.400 % |
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 year ended June 30, 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 a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.20% 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 | 0.15 % |
Class C | 0.15 |
Class R6 | 0.03 |
Administrator Class | 0.10 |
Institutional Class | 0.08 |
Prior to June 30, 2023, the class-level administration fee for Class A and Class C was 0.16% of the average daily net assets of each respective class.
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 October 31, 2023 to waive fees and/or reimburse expenses to the extent necessary to cap expenses. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. In addition to the contractual waivers and/or reimbursements, Allspring Funds Management also voluntarily waived certain class-level expenses during the year ended June 30, 2023. These voluntary class-level waivers may be discontinued at any time. As of June 30, 2023, the contractual expense caps are as follows:
EXPENSE RATIO CAPS | |
Class A | 0.75 % |
Class C | 1.50 |
Class R6 | 0.40 |
Administrator Class | 0.60 |
Institutional Class | 0.45 |
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 Municipal Sustainability Fund | 27
Notes to financial statements
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 year ended June 30, 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. Pursuant to these procedures, the Fund had $0, $675,743 and $(14,039) in interfund purchases, sales and net realized gains (losses), respectively, during the year ended June 30, 2023.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2023 were $4,926,345 and $6,754,568, 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 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 year ended June 30, 2023, there were no borrowings by the Fund under the agreement.
7.
DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid was $596,946 and $518,434 of tax-exempt income for the years ended June 30, 2023 and June 30, 2022, respectively.
As of June 30, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | Unrealized losses | Capital loss carryforward |
$4,540 | $(1,200,638 ) | $(662,575 ) |
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.
28 | Allspring Municipal Sustainability Fund
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring Municipal Sustainability Fund (the Fund), one of the funds constituting Allspring Funds Trust, including the portfolio of investments, as of June 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the three-year period then ended and the period from February 28, 2020 (commencement of operations) to June 30, 2020. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the three-year period then ended and the period from February 28, 2020 to June 30, 2020, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of June 30, 2023, by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
August 25, 2023
Allspring Municipal Sustainability Fund | 29
Other information (unaudited)
Other information
Tax information
Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2023.
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 1-866-259-3305, 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 Municipal Sustainability 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 |
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 |
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.
Allspring Municipal Sustainability 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 |
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 Municipal Sustainability Fund
Other information (unaudited)
Officers1
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 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 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 Municipal Sustainability Fund | 33
Other information (unaudited)
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 15-17, 2023 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Municipal Sustainability Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2023, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
The Board noted that it initially approved the Advisory Agreements at a Board meeting held in May 2021, each for a two-year term, in advance of the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC,1 a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. (the “Transaction”). The Trustees also noted that, while they did not specifically consider the continuation of the Advisory Agreements in 2022 as a result of the two-year term that was approved in 2021, the Trustees received and considered certain information at a Board meeting held in April 2022 that was applicable to the Advisory Agreements, including an overview and financial review of the Allspring Global Investments business, information regarding certain ancillary agreements that were approved by the Board at the April 2022 Board meeting, and comparative data regarding Fund fees and expenses.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2023. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business. The Board also considered information about retention arrangements with respect to key personnel of Allspring Global Investments that were put in place in connection with the Transaction. The Board took into account information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the Transaction under a transition services agreement and the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
1
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
34 | Allspring Municipal Sustainability Fund
Other information (unaudited)
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, and Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2022. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was lower than the average investment performance of the Universe for the one-year period under review. The Board also noted that the investment performance of the Fund was lower than the investment performance of its benchmark index, the Bloomberg Municipal Bond Index, for the one-year period under review. The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s investment performance. The Board noted the short operational history of the Fund.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for the Class A shares and the Institutional Class, equal to the median net operating expense ratios of the expense Groups for the Administrator Class and in range of the median net operating expense ratios of the expense Groups for the Class R6 shares.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were equal to the sum of these average rates for the Fund’s expense Groups for the Administrator Class and the Institutional Class and in range of the sum of these average rates for the Fund’s expense Groups for the Class A shares and the Class R6 shares.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received
Allspring Municipal Sustainability Fund | 35
Other information (unaudited)
information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Profitability
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and differences in how Allspring Global Investments calculates its pre-tax profit metric versus the methodology used when Allspring Funds Management was part of Wells Fargo. It was noted that the impact of such differences had only minor impact on the financial results presented. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser and fees earned in the past by Allspring Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund complex’s securities lending collateral.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
36 | Allspring Municipal Sustainability Fund
Other information (unaudited)
Liquidity risk management program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that operate as money market funds), including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund’s investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the “Council”) composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 16-17, 2023, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2022 through December 31, 2022 (the “Reporting Period”). The Report noted significant liquidity events impacting the Funds related to extended foreign market holidays as well as the difficulty of trading and settlement of most Russia-related securities due to sanctions activity. The Report noted that there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage the Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
Allspring Municipal Sustainability Fund | 37
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
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-07102023-rmxpxqm3 08-23
AR4336 06-23
AR4336 06-23
Contents
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The views expressed and any forward-looking statements are as of June 30, 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 Pennsylvania Tax-Free Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Pennsylvania Tax-Free Fund for the 12-month period that ended June 30, 2023. Globally, stocks and bonds experienced heightened volatility through the period. The market was focused on persistently high inflation and the impact of ongoing aggressive central bank rate hikes. Compounding these concerns were the global reverberations of the Russia-Ukraine war. Riskier assets rallied in 2023, with anticipation of an end to the tight monetary policy despite concerns of a possible impending recession. After suffering deep and broad losses through 2022, bonds now benefit from a base of higher yields that can help generate higher income. However, ongoing rate hikes continued to be a headwind during recent months.
For the 12-month period, stocks generally outperformed bonds—both domestic U.S. and global. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 19.59%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 12.72%, while the MSCI EM Index (Net) (USD)3 had more muted performance, with a gain of 1.75%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -0.94%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 fell 1.83%, the Bloomberg Municipal Bond Index6 gained 3.19%, and the ICE BofA U.S. High Yield Index7 returned 8.97%.
Despite high inflation and central bank rate hikes, markets rallied.
Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong: July nonfarm payrolls grew by more than 500,000 and U.S. unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices—major contributors to recent overall inflation—fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with mortgage rates at a 13-year high. The Federal Reserve (Fed) raised the federal funds rate 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to further rate hikes.
August was a broadly challenging month. High inflation persisted, cresting 9% in the eurozone on an annual basis and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June peak. One positive was the resilient U.S. jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act. Its primary stated goals include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“ Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong. ”
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 the 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 Pennsylvania Tax-Free Fund
Letter to shareholders (unaudited)
In September, all asset classes suffered further major losses. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar weighed on results for investors holding non-U.S.-dollar assets. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The Bank of England (BoE) then stepped in and bought long-dated government bonds.
Equities had a reprieve in October. 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 increasing 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.
Financial markets cooled in December, with U.S. equities declining overall in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever, with generally flat 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 wound 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 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.
Markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks would 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 was not falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the BoE and the European Central Bank (ECB) both raised rates by 0.50%.
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 banking industry turmoil created an additional challenge for central banks in balancing inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. 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 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. ”
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.
Allspring Pennsylvania Tax-Free Fund | 3
Letter to shareholders (unaudited)
Economic data released in April pointed to global resilience, as Purchasing Managers Indexes1 in the U.S., U.K., and eurozone beat expectations and China reported first-quarter annualized economic growth of 4.5%. Despite banking industry stress, developed market stocks had monthly gains. The U.S. labor market remained strong, with a 3.5% jobless rate and monthly payroll gains above 200,000. However, uncertainty and inflationary concerns weighed on investors in the U.S. and abroad.
May was marked by a divergence between expanding activity in services and an overall contraction in manufacturing activity in the U.S., U.K., and eurozone. Core inflation remained elevated in the U.S. and Europe, despite the ongoing efforts of the Fed and ECB, which included rate hikes of 0.25% by both in May. Stubborn inflation and the resilient U.S. labor market led to expectations of further interest rate hikes, overall monthly declines across bond indexes, and mixed results for stocks in May. Investor worries over a U.S. debt ceiling impasse were modest, and market confidence was buoyed by a deal in late May to avert a potential U.S. debt default.
June featured the Fed’s first pause on interest rate hikes since March 2022, when it began its aggressive campaign to rein in inflation. However, core CPI, excluding food and energy prices, while continuing to decline, remained stubbornly high in June, at 4.8%, well above the Fed’s 2.0% target rate. With the U.S. unemployment rate still at 3.6%, near a historical low, and U.S. payrolls growing in June for the 30th consecutive month, expectations of more Fed rate hikes were reinforced. However, U.S. and global stocks had strong returns in June.
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
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.
1
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.
4 | Allspring Pennsylvania Tax-Free Fund
Letter to shareholders (unaudited)
Notice to Shareholders |
Beginning in July 2024, the Fund will be required by the Securities and Exchange Commission to send shareholders a paper copy of a new tailored shareholder report in place of the full shareholder report that you are now receiving. The tailored shareholder report will contain concise information about the Fund, including certain expense and performance information and fund statistics. If you wish to receive this new tailored shareholder report electronically, please follow the instructions on the back cover of this report. |
Other information that is currently included in the shareholder report, such as the Fund’s financial statements, will be available online and upon request, free of charge, in paper or electronic format. |
Allspring Pennsylvania Tax-Free Fund | 5
Performance highlights (unaudited)
Performance highlights
Investment objective | The Fund seeks current income exempt from federal income tax and Pennsylvania individual income tax. |
Manager | Allspring Funds Management, LLC |
Subadviser | Allspring Global Investments, LLC |
Portfolio managers | Bruce R. Johns, Kerry Laurin, Robert J. Miller |
Average annual total returns (%) as of June 30, 2023 | |||||||||
Including sales charge | Excluding sales charge | Expense ratios1 (%) | |||||||
Inception date | 1 year | 5 year | 10 year | 1 year | 5 year | 10 year | Gross | Net2 | |
Class A (EKVAX) | 12-27-1990 | -2.58 | 0.31 | 1.95 | 1.97 | 1.23 | 2.42 | 0.94 | 0.74 |
Class C (EKVCX) | 2-1-1993 | 0.20 | 0.49 | 1.81 | 1.20 | 0.49 | 1.81 | 1.69 | 1.49 |
Institutional Class (EKVYX) | 11-24-1997 | – | – | – | 2.23 | 1.49 | 2.68 | 0.61 | 0.49 |
Bloomberg Municipal Bond Index3 | – | – | – | – | 3.19 | 1.84 | 2.68 | – | – |
Bloomberg Pennsylvania Municipal Bond Index4 | – | – | – | – | 3.25 | 2.06 | 2.91 | – | – |
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. 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 October 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.74% for Class A, 1.49% for Class C and 0.49% 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 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. |
4 | The Bloomberg Pennsylvania Municipal Bond Index is a Pennsylvania-specific total return index. The index is composed of Pennsylvania bonds. The bonds are all investment-grade, fixed-rate, long-term maturities (greater than two years) and are selected from issues larger than $50 million dated since January 1984. Bonds are added to the index and weighted and updated monthly, with a one-month lag. 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. 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 Pennsylvania municipal securities risk and high-yield securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.
6 | Allspring Pennsylvania Tax-Free Fund
Performance highlights (unaudited)
Growth of $10,000 investment as of June 30, 20231 |
1 | The chart compares the performance of Class A shares for the most recent ten years with the Bloomberg Municipal Bond Index and Bloomberg Pennsylvania Municipal Bond Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%. |
Allspring Pennsylvania Tax-Free Fund | 7
Performance highlights (unaudited)
MANAGER’S DISCUSSION
Fund highlights
•The Fund underperformed both the Bloomberg Municipal Bond Index and the Bloomberg Pennsylvania Municipal Bond Index for the 12-month period that ended June 30, 2023.
•Sector allocation detracted from performance. For example, we had a strong overweight to the education sector, which underperformed the overall market, and an underweight to the transportation sector, which outperformed the market. We were underweight A-rated bonds, which modestly outperformed the benchmark index. Our selection in BBB-rated bonds detracted from the performance of this overall rating category.
•We began the period significantly short duration to the benchmark, which was positive given that municipal rates increased over the 12-month period. As we progressed throughout the year, we extended duration. We were underweight longer-term bonds, which had strong performance, although we had a modest underweight to the shorter end of the curve, which performed poorly. Our security selection contributed to performance in the education and transportation sectors. Our overweight to BBB-rated bonds was also positive.
Global economies increase lending rates in hopes of taming runaway inflation.
Entering 2022, the excitement of a post-pandemic world gave way to new whispers and fears of higher prices and broad-based inflation caused by supply chain bottlenecks, increased housing costs, wage increases, and employment market distortions. Those fears quickly became reality and prices began to rise at a historic rate. The U.S. Federal Open Market Committee acted quickly and with purpose: ending open market purchases, reducing its balance sheet, and raising the benchmark overnight lending rate at each monthly meeting through 2022 and early 2023. Fixed income and equity markets fell sharply but began to recover as annual inflation numbers peaked in June and began to recede.
The U.S. unemployment rate, which reached a multigenerational high of more than 14% in the spring of 2020, fell throughout the past year and has settled below 4%. Employers continue to add jobs, especially in service-oriented industries, and the resulting wage increases have further contributed to inflationary pressures. After the U.S. gross domestic product (GDP) turned negative in the first and second quarters of 2022, it expanded at rates above 2% in each subsequent quarter. The federal funds rate, which began 2022 at 0.25% to 0.50%, was raised 10 consecutive times before a pause in June 2023. It now sits at 5.25% to 5.50% as the Federal Reserve (Fed) attempts to curb inflation. In this environment, some form of recession seems imminent.
In the wake of continued rate increases, U.S. fixed income yields rose dramatically as investors reacted to Fed actions, with the yield on the 10-year Treasury ending the period near 4%. Rising Treasury yields affected all fixed income sectors in 2022, with all seeing their worst returns in more than 40 years. The U.S. Treasury yield curve remained substantially inverted throughout the period, which has driven many investors into shorter-term interest-bearing vehicles, including money markets.
Credit quality as of June 30, 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. |
8 | Allspring Pennsylvania Tax-Free Fund
Performance highlights (unaudited)
Municipals sold off drastically to start the period but began to rebound in the fourth quarter of 2022. The Bloomberg Municipal Bond Index fell nearly 8% and the broader municipal market had more than $124 billion in outflows before stabilizing early in 2023. For the first time in history, the municipal yield curve also inverted but not to the degree seen in Treasuries.
While this environment has certainly been painful for municipal investors, the drawdown has created significantly improved opportunities and entry points. Municipal to Treasury ratios ended the period elevated but at far better levels than in 2021. Municipal credit spreads have widened substantially while the underlying fundamental credit of municipalities remains strong following trillions of dollars in government stimulus. We believe investors will continue to return to the municipal market in the latter half of 2023, attracted by increased yields, positive fundamental strength, and good relative value.
The State of Pennsylvania offers municipal bond investing opportunities.
The Commonwealth of Pennsylvania is rated Aa3 (stable) and A+ (stable), by Moody’s Investors Service, Inc., and Standard & Poor’s Financial Services LLC, respectively. Pennsylvania is the sixth-largest state by population, according to the U.S. Census Bureau, as well as by GDP. Pennsylvania’s economy is diversified and stable in the health care and higher education sectors, primarily in the cities of Philadelphia and Pittsburgh. We note, however, that the state’s population, revenue, and employment growth have historically lagged national growth averages. The outbreak of COVID-19, the corresponding business closures, and other mitigation efforts had a significant impact on Pennsylvania’s economy and finances. Since then, while the state’s economy and finances have rebounded significantly, aided primarily by federal COVID-19 relief dollars, we note that the state’s recovery continues to lag that of the nation. The current unemployment rate of 4.0% (as of May 31, 2023) remains higher than the nation’s 3.7% rate for the same period. Until recently, Pennsylvania has historically had a very small rainy-day fund. The commonwealth currently has a rainy-day fund of approximately $5 billion or the equivalent of roughly 11.7% of fiscal-year 2023 general fund expenditures. The latest estimates show that the commonwealth is projecting to end fiscal-year 2023 (on June 30) with total general fund revenues of $44.9 billion, which is down 6.5% from fiscal-year 2022 but better than the originally estimated $42.1 billion, which is 12.4% below budgeted projections.
Yield-curve positioning, sector allocation, and credit quality detracted, while security selection was a modest contributor. Duration impact was mixed.
We maintained a shorter duration position in the Fund relative to the Bloomberg Municipal Bond Index while moving toward extending duration during the fiscal year. Our shorter duration positioning in the beginning of the 12-month period was positive for performance as municipal rates increased. The municipal curve inverted during the second half of the year in the 1-year to 14-year segments, with shorter rates exceeding longer rates in this segment. Shorter-term bonds underperformed longer-term bonds during this period. Our overweight to intermediate duration bonds
aided performance, although our underweight to 15-year-plus duration bonds detracted from performance.
Effective maturity distribution as of June 30, 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. |
Sector allocation also detracted from performance. We maintained an overall modest overweight to general obligation (GO) bonds with a stronger overweight to local GOs, which performed poorly. While we were underweight the state GO sector, our selection of Illinois state GO bonds contributed to our performance in this category. We had a modest underweight to revenue bonds, which modestly outperformed the market. Our overweight to the education sector detracted from performance, as this sector underperformed the overall market. Similarly, our underweight to transportation weighed on performance as this sector performed well. Our security selection was strong, however, in both of those sectors. We were underweight A-rated bonds compared with both indexes. This category performed well. We were overweight BBB-rated bonds, which outperformed the index, but weak selection offset that in this rating category. We remain underweight AA-rated bonds, which performed poorly, although our selection of AA-rated bonds was strong. Our modest overweight to non-investment-grade bonds also helped performance as our selection was strongly positive in this category.
Some of the better-performing bonds for the year were PennDOT Major Bridges Package One Project and the Pennsylvania State Turnpike Commission subordinate revenue bonds. These are both tied to the transportation sector, which performed well. Additionally, structure did play a role in security performance over the past 12 months, with higher-coupon, longer-dated bonds outperforming lower-coupon, longer-dated bonds. The Fund held bonds in the hospital sector, which performed poorly. Tower Health Obligated Group and Lebanon Valley Brethren Home project revenue bonds were two examples. Some health care systems still face stress as they attempt to recover from the COVID pandemic, and bonds in this sector were the largest detractors from performance.
Allspring Pennsylvania Tax-Free Fund | 9
Performance highlights (unaudited)
Interest rate volatility has been the core focus of the markets. We believe issue selection remains a key driver in state-specific funds.
The U.S. economy continued to rebound over the past 12 months, even in the face of unprecedented rate hikes. We believe issue selection and yield-curve positioning will be a key driver in state-specific funds. While we eventually expect the economy to slow, we believe the Fed may end its rate-hiking cycle toward the end of 2023 as it works to combat higher-than-average inflation. We will continue to modestly extend the Fund’s
duration. Pennsylvania’s economy typically lags the national economy. We believe most municipalities will continue to perform strongly over the next 12 months given their strong balance sheets. We continue to look for value in lower-credit-quality investment-grade names while opportunistically buying higher-grade names at attractive levels. The threat of a slowing economy could affect our sector allocation decisions as we look to move into areas that are less likely to be affected by recessionary pressures. We will monitor the economy and interest rates with a specific focus on the technical market and fundamental credit quality to adjust duration, yield-curve positioning, credit quality, and sector allocations over the next year.
10 | Allspring Pennsylvania Tax-Free Fund
Fund expenses (unaudited)
Fund expenses
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 January 1, 2023 to June 30, 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 1-1-2023 | Ending account value 6-30-2023 | Expenses paid during the period1 | Annualized net expense ratio | |
Class A | ||||
Actual | $1,000.00 | $1,022.54 | $3.71 | 0.74 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.13 | $3.71 | 0.74 % |
Class C | ||||
Actual | $1,000.00 | $1,018.75 | $7.46 | 1.49 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.41 | $7.45 | 1.49 % |
Institutional Class | ||||
Actual | $1,000.00 | $1,023.81 | $2.46 | 0.49 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.37 | $2.46 | 0.49 % |
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 181 divided by 365 (to reflect the one-half-year period). |
Allspring Pennsylvania Tax-Free Fund | 11
Portfolio of investments—June 30, 2023
Portfolio of investments
Interest rate | Maturity date | Principal | Value | |||
Municipal obligations: 98.04% | ||||||
Alabama: 0.75% | ||||||
Utilities revenue: 0.75% | ||||||
Southeast Energy Authority A Cooperative District Project No. 5 Series Aøø | 5.25 % | 1-1-2054 | $ | 750,000 | $784,197 | |
California: 0.49% | ||||||
Utilities revenue: 0.49% | ||||||
California Community Choice Financing Authority Clean Energy Project Green Bond Series C | 5.00 | 10-1-2031 | 500,000 | 517,336 | ||
Georgia: 0.46% | ||||||
Utilities revenue: 0.46% | ||||||
Main Street Natural Gas, Inc. Series C144Aøø | 4.00 | 8-1-2052 | 500,000 | 483,272 | ||
Guam: 1.18% | ||||||
Airport revenue: 0.76% | ||||||
Antonio B Won Pat International Airport Authority Series A AMT%% | 5.25 | 10-1-2031 | 200,000 | 205,271 | ||
Port Authority of Guam Series B AMT | 5.00 | 7-1-2032 | 550,000 | 582,058 | ||
787,329 | ||||||
Miscellaneous revenue: 0.42% | ||||||
Territory of Guam Series F | 4.00 | 1-1-2042 | 500,000 | 441,929 | ||
1,229,258 | ||||||
Illinois: 1.41% | ||||||
GO revenue: 1.12% | ||||||
State of Illinois | 5.00 | 5-1-2025 | 550,000 | 555,286 | ||
State of Illinois Series B | 5.00 | 9-1-2025 | 595,000 | 612,736 | ||
1,168,022 | ||||||
Miscellaneous revenue: 0.29% | ||||||
City of Chicago Special Assessment Revenue Refunding Bonds Lakeshore East Project144A | 2.27 | 12-1-2024 | 308,000 | 299,783 | ||
1,467,805 | ||||||
Pennsylvania: 93.75% | ||||||
Airport revenue: 3.52% | ||||||
Allegheny County Airport Authority Series A AMT | 5.00 | 1-1-2051 | 1,500,000 | 1,556,777 | ||
City of Philadelphia Airport Revenue Series A AMT | 5.00 | 6-15-2026 | 580,000 | 589,791 | ||
City of Philadelphia Airport Revenue Series A AMT | 5.00 | 6-15-2030 | 1,500,000 | 1,528,683 | ||
3,675,251 | ||||||
Education revenue: 18.99% | ||||||
Allegheny County Higher Education Building Authority Robert Morris University | 5.00 | 10-15-2037 | 750,000 | 748,788 | ||
Chester County IDA Avon Grove Charter School Series A | 5.00 | 12-15-2047 | 1,160,000 | 1,129,010 | ||
Chester County IDA Collegium Charter School Series A | 5.13 | 10-15-2037 | 1,000,000 | 963,154 | ||
Chester County IDA Renaissance Academy Charter School | 3.75 | 10-1-2024 | 255,000 | 254,749 | ||
Cumberland County Municipal Authority Dickinson College | 5.00 | 5-1-2032 | 940,000 | 975,630 | ||
The accompanying notes are an integral part of these financial statements.
12 | Allspring Pennsylvania Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
Delaware County Authority Neumann University | 5.00 % | 10-1-2039 | $ | 250,000 | $248,710 | |
General Authority of Southcentral Pennsylvania York College of Pennsylvania Series TT2 | 4.00 | 5-1-2032 | 330,000 | 331,165 | ||
General Authority of Southcentral Pennsylvania York College of Pennsylvania Series TT2 | 4.00 | 5-1-2033 | 315,000 | 315,768 | ||
General Authority of Southcentral Pennsylvania York College of Pennsylvania Series TT2 | 4.00 | 5-1-2034 | 550,000 | 552,722 | ||
Huntingdon County General Authority Juniata College Series T | 5.00 | 10-1-2051 | 2,000,000 | 1,960,955 | ||
Latrobe IDA Seton Hill University | 4.00 | 3-1-2051 | 800,000 | 617,185 | ||
Lehigh County General Purpose Authority Lehigh Valley Academy Regional Charter School | 4.00 | 6-1-2032 | 675,000 | 661,209 | ||
Lehigh County IDA Seven Generations Charter School Series A | 4.00 | 5-1-2051 | 750,000 | 553,143 | ||
Montgomery County Higher Education & Health Authority Arcadia University | 5.00 | 4-1-2030 | 1,500,000 | 1,530,424 | ||
Montgomery County IDA Series A | 4.00 | 10-1-2046 | 225,000 | 184,362 | ||
Montgomery County IDA Series A | 4.00 | 10-1-2051 | 825,000 | 652,420 | ||
Montgomery County IDA Public School of Germantown Series A | 4.00 | 10-1-2041 | 450,000 | 385,216 | ||
Northeastern Pennsylvania Hospital & Education Authority Wilkes University Series B | 5.25 | 3-1-2037 | 1,000,000 | 1,022,894 | ||
Pennsylvania Higher Educational Facilities Authority Ursinus College Series A | 5.00 | 11-1-2026 | 500,000 | 511,663 | ||
Pennsylvania Higher Educational Facilities Authority Ursinus College Series A | 5.00 | 11-1-2027 | 300,000 | 309,677 | ||
Philadelphia IDA144A%% | 5.50 | 6-15-2043 | 500,000 | 494,017 | ||
Philadelphia IDA First Philadelphia Preparatory Charter School Series A | 7.00 | 6-15-2033 | 940,000 | 965,763 | ||
Philadelphia IDA Green Woods Charter School Series A | 5.00 | 6-15-2032 | 340,000 | 339,504 | ||
Philadelphia IDA Independence Charter School West | 5.00 | 6-15-2039 | 250,000 | 240,425 | ||
Philadelphia IDA LaSalle University | 5.00 | 5-1-2036 | 1,355,000 | 1,208,081 | ||
Philadelphia IDA Philadelphia Performing Arts Charter School144A | 5.00 | 6-15-2029 | 220,000 | 227,779 | ||
Philadelphia IDA Philadelphia Performing Arts Charter School144A | 5.00 | 6-15-2030 | 145,000 | 149,866 | ||
Philadelphia IDA Tacony Academy Charter School | 6.88 | 6-15-2033 | 1,000,000 | 1,002,112 | ||
Philadelphia IDA West Philadelphia Achievement Charter Elementary School | 7.50 | 5-1-2031 | 1,285,000 | 1,286,876 | ||
19,823,267 | ||||||
GO revenue: 17.52% | ||||||
Blue Mountain School District Series B (AGM Insured) | 4.00 | 8-1-2035 | 250,000 | 260,456 | ||
Blue Mountain School District Series B (AGM Insured) | 4.00 | 8-1-2036 | 350,000 | 361,636 | ||
Blue Mountain School District Series B (AGM Insured) | 4.00 | 8-1-2037 | 350,000 | 358,266 | ||
Blue Mountain School District Series B (AGM Insured) | 4.00 | 8-1-2038 | 250,000 | 253,445 | ||
Central Dauphin School District | 5.00 | 2-1-2037 | 2,075,000 | 2,134,110 | ||
City of Oil City Series A (AGM Insured) | 4.00 | 12-1-2039 | 315,000 | 316,628 | ||
City of Oil City Series A (AGM Insured) | 4.00 | 12-1-2040 | 250,000 | 250,822 | ||
City of Oil City Series A (AGM Insured) | 4.00 | 12-1-2041 | 250,000 | 250,423 | ||
City of Oil City Series A (AGM Insured) | 4.00 | 12-1-2042 | 200,000 | 200,654 | ||
City of Philadelphia Series A | 5.00 | 8-1-2036 | 1,250,000 | 1,330,431 | ||
City of Pittsburgh | 5.00 | 9-1-2043 | 200,000 | 215,374 | ||
Coatesville School District Series C CAB (BAM Insured)¤ | 0.00 | 10-1-2033 | 1,000,000 | 658,161 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Pennsylvania Tax-Free Fund | 13
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
Conestoga Valley School District Series A | 4.00 % | 2-1-2043 | $ | 500,000 | $500,685 | |
Highlands School District (AGM Insured) | 5.00 | 4-15-2035 | 295,000 | 328,103 | ||
Moon Area School District Series A | 5.00 | 11-15-2028 | 150,000 | 153,420 | ||
Moon Area School District Series A | 5.00 | 11-15-2029 | 1,445,000 | 1,475,812 | ||
North Allegheny School District | 5.00 | 5-1-2030 | 100,000 | 113,470 | ||
North Allegheny School District | 5.00 | 5-1-2031 | 290,000 | 329,170 | ||
Parkland School District Series A | 4.00 | 2-1-2029 | 300,000 | 318,686 | ||
Parkland School District Series B | 4.00 | 2-1-2036 | 650,000 | 674,873 | ||
Penn Delco School District | 4.00 | 6-1-2045 | 1,000,000 | 985,444 | ||
Pequea Valley School District | 4.00 | 5-15-2049 | 750,000 | 739,455 | ||
School District of Philadelphia Series B | 5.00 | 9-1-2043 | 1,235,000 | 1,298,404 | ||
School District of Philadelphia Series C (AGM Insured) | 5.00 | 6-1-2024 | 1,225,000 | 1,240,681 | ||
School District of the City of Erie Series A (AGM Insured) | 5.00 | 4-1-2034 | 515,000 | 564,320 | ||
West Mifflin School District (AGM Insured) | 5.00 | 4-1-2028 | 1,000,000 | 1,055,587 | ||
West Shore School District | 5.00 | 11-15-2048 | 1,500,000 | 1,556,519 | ||
Wilkes-Barre Area School District (BAM Insured) | 5.00 | 4-15-2027 | 100,000 | 106,724 | ||
Wilkes-Barre Area School District (BAM Insured) | 5.00 | 4-15-2028 | 120,000 | 130,393 | ||
Wilkes-Barre Area School District (BAM Insured) | 5.00 | 4-15-2029 | 50,000 | 55,199 | ||
Wilkes-Barre Area School District (BAM Insured) | 5.00 | 4-15-2030 | 70,000 | 76,984 | ||
18,294,335 | ||||||
Health revenue: 23.48% | ||||||
Allegheny County Hospital Development Authority Allegheny Health Network Obligated Group Series A | 4.00 | 4-1-2044 | 1,810,000 | 1,632,743 | ||
Allegheny County Hospital Development Authority UPMC Obligated Group (SIFMA Municipal Swap+0.70%)± | 4.71 | 11-15-2047 | 1,000,000 | 976,540 | ||
Allegheny County Hospital Development Authority UPMC Obligated Group Series B (NPFGC Insured) | 6.00 | 7-1-2027 | 1,800,000 | 1,986,462 | ||
Berks County IDA Tower Health Obligated Group | 5.00 | 11-1-2037 | 430,000 | 278,087 | ||
Bucks County IDA St. Luke’s Hospital Obligated Group | 4.00 | 8-15-2050 | 400,000 | 358,783 | ||
Cumberland County Municipal Authority Diakon Lutheran Social Ministries Obligated Group | 5.00 | 1-1-2028 | 2,090,000 | 2,123,010 | ||
Dauphin County General Authority UPMC Obligated Group Series A | 5.00 | 6-1-2035 | 1,000,000 | 1,034,939 | ||
Doylestown Hospital Authority Doylestown Hospital Obligated Group Series A | 5.00 | 7-1-2049 | 250,000 | 203,249 | ||
East Hempfield Township IDA Willow Valley Communities Obligated Group | 5.00 | 12-1-2028 | 450,000 | 464,208 | ||
East Hempfield Township IDA Willow Valley Communities Obligated Group | 5.00 | 12-1-2029 | 375,000 | 386,847 | ||
Geisinger Authority Geisinger Health System Obligated Group Series A | 4.00 | 4-1-2050 | 1,000,000 | 919,130 | ||
Geisinger Authority Geisinger Health System Obligated Group Series A-1 | 5.00 | 2-15-2045 | 1,000,000 | 1,023,751 | ||
Geisinger Authority Geisinger Health System Obligated Group Series Cøø | 5.00 | 4-1-2043 | 645,000 | 698,844 | ||
Hospitals & Higher Education Facilities Authority of Philadelphia Temple University Health System Obligated Group (AGM Insured) | 5.00 | 7-1-2037 | 1,000,000 | 1,076,107 | ||
Lancaster County Hospital Authority St. Anne’s Retirement Community Obligated Group | 5.00 | 3-1-2045 | 500,000 | 408,946 | ||
The accompanying notes are an integral part of these financial statements.
14 | Allspring Pennsylvania Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
Montgomery County Higher Education & Health Authority Thomas Jefferson University Obligated Group Series B | 5.00 % | 5-1-2052 | $ | 1,000,000 | $1,031,880 | |
Montgomery County IDA ACTS Retirement-Life Communities, Inc. Obligated Group Series C | 5.00 | 11-15-2045 | 1,000,000 | 949,605 | ||
Montgomery County IDA Waverly Heights Ltd. Obligated Group | 5.00 | 12-1-2044 | 1,000,000 | 1,016,665 | ||
Northampton County General Purpose Authority St. Luke’s Hospital Obligated Group Series A | 5.00 | 8-15-2033 | 1,435,000 | 1,437,467 | ||
Pennsylvania EDFA UPMC Obligated Group Series A | 5.00 | 10-15-2035 | 645,000 | 715,613 | ||
Pennsylvania EDFA UPMC Obligated Group Series A | 5.00 | 10-15-2036 | 800,000 | 879,868 | ||
Pennsylvania EDFA UPMC Obligated Group Series A1 | 4.00 | 4-15-2037 | 700,000 | 698,648 | ||
Pennsylvania Higher Educational Facilities Authority University of Pennsylvania Health System Obligated Group | 5.00 | 8-15-2040 | 1,500,000 | 1,533,150 | ||
Pennsylvania Higher Educational Facilities Authority University of Pennsylvania Health System Obligated Group Series A | 5.00 | 8-15-2047 | 1,500,000 | 1,535,481 | ||
West Cornwall Township Municipal Authority Lebanon Valley Brethren Home Obligated Group Series A | 4.00 | 11-15-2023 | 75,000 | 74,793 | ||
West Cornwall Township Municipal Authority Lebanon Valley Brethren Home Obligated Group Series A | 4.00 | 11-15-2041 | 370,000 | 299,311 | ||
West Cornwall Township Municipal Authority Lebanon Valley Brethren Home Obligated Group Series A | 4.00 | 11-15-2046 | 525,000 | 401,011 | ||
Westmoreland County IDA Excela Health Obligated Group Series A | 4.00 | 7-1-2037 | 400,000 | 366,354 | ||
24,511,492 | ||||||
Housing revenue: 5.08% | ||||||
Chester County IDA University Student Housing LLC Series A | 5.00 | 8-1-2030 | 555,000 | 554,998 | ||
Commonwealth Financing Authority Commonwealth of Pennsylvania Department of Community & Economic Development Series B | 5.00 | 6-1-2031 | 250,000 | 285,097 | ||
Pennsylvania EDFA Commonwealth of Pennsylvania Department of Transportation AMT | 5.75 | 6-30-2048 | 1,500,000 | 1,648,121 | ||
Pennsylvania Housing Finance Agency LIH Wilkes-Barre LP (Department of Housing and Urban Development Insured)øø | 1.25 | 2-1-2025 | 1,000,000 | 983,247 | ||
State Public School Building Authority Chester Upland School District Series B | 5.25 | 9-15-2030 | 540,000 | 584,746 | ||
State Public School Building Authority Chester Upland School District Series C (AGM Insured) | 5.00 | 9-15-2026 | 875,000 | 876,072 | ||
State Public School Building Authority Harrisburg School District Series B-2 (BAM Insured) | 5.00 | 12-1-2027 | 360,000 | 368,836 | ||
5,301,117 | ||||||
Miscellaneous revenue: 7.78% | ||||||
Commonwealth of Pennsylvania Series A COP | 5.00 | 7-1-2038 | 1,000,000 | 1,061,239 | ||
Delaware County Authority Neumann University | 5.00 | 10-1-2031 | 1,500,000 | 1,518,689 | ||
Pennsylvania EDFA Philadelphia Water Department | 4.00 | 1-1-2030 | 1,000,000 | 991,865 | ||
Pennsylvania Finance Authority Pennsylvania Hills Project Series B (NPFGC Insured)¤## | 0.00 | 12-1-2023 | 3,790,000 | 3,730,891 | ||
Philadelphia IDA City of Philadelphia PA Series A | 5.00 | 2-15-2038 | 785,000 | 824,598 | ||
8,127,282 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Pennsylvania Tax-Free Fund | 15
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue: 2.10% | ||||||
Allentown Neighborhood Improvement Zone Development Authority | 5.00 % | 5-1-2042 | $ | 500,000 | $504,676 | |
Southeastern Pennsylvania Transportation Authority | 5.25 | 6-1-2042 | 1,500,000 | 1,688,630 | ||
2,193,306 | ||||||
Transportation revenue: 4.47% | ||||||
Delaware River Joint Toll Bridge Commission | 5.00 | 7-1-2042 | 580,000 | 605,591 | ||
Pennsylvania Turnpike Commission First Series | 5.00 | 12-1-2043 | 1,800,000 | 1,962,841 | ||
Pennsylvania Turnpike Commission Series A2 | 5.00 | 12-1-2048 | 2,000,000 | 2,098,551 | ||
4,666,983 | ||||||
Utilities revenue: 0.98% | ||||||
Philadelphia Gas Works Co. Series 15th | 5.00 | 8-1-2047 | 1,000,000 | 1,025,713 | ||
Water & sewer revenue: 9.83% | ||||||
Bucks County Water & Sewer Authority Series A (AGM Insured) | 5.25 | 12-1-2047 | 2,175,000 | 2,416,199 | ||
Capital Region Water Sewer Revenue | 5.00 | 7-15-2037 | 1,000,000 | 1,060,625 | ||
City of Philadelphia Water & Wastewater Revenue Series A | 5.00 | 10-1-2038 | 2,000,000 | 2,127,953 | ||
City of Philadelphia Water & Wastewater Revenue Series C | 5.00 | 6-1-2042 | 555,000 | 595,900 | ||
Erie City Water Authority (BAM Insured) | 4.25 | 12-1-2052 | 1,000,000 | 997,264 | ||
Lehigh County Authority CAB¤ | 0.00 | 12-1-2030 | 2,000,000 | 1,517,328 | ||
Luzerne County IDA Pennsylvania-American Water Co. AMTøø | 2.45 | 12-1-2039 | 500,000 | 459,433 | ||
Pittsburgh Water & Sewer Authority Series A (AGM Insured)%% | 5.00 | 9-1-2048 | 1,000,000 | 1,090,838 | ||
10,265,540 | ||||||
97,884,286 | ||||||
Total municipal obligations (Cost $106,872,985) | 102,366,154 | |||||
Yield | Shares | |||||
Short-term investments: 1.64% | ||||||
Investment companies: 1.64% | ||||||
Allspring Municipal Cash Management Money Market Fund Institutional Class♠∞## | 4.07 | 1,717,494 | 1,717,837 | |||
Total short-term investments (Cost $1,717,823) | 1,717,837 | |||||
Total investments in securities (Cost $108,590,808) | 99.68 % | 104,083,991 | ||||
Other assets and liabilities, net | 0.32 | 329,281 | ||||
Total net assets | 100.00 % | $104,413,272 | ||||
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
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 purchased on a when-issued basis. |
¤ | The security is issued in zero coupon form with no periodic interest payments. |
± | Variable rate investment. The rate shown is the rate in effect at period end. |
## | All or a portion of this security is segregated for when-issued securities. |
♠ | 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.
16 | Allspring Pennsylvania Tax-Free Fund
Portfolio of investments—June 30, 2023
Abbreviations: | |
AGM | Assured Guaranty Municipal |
AMT | Alternative minimum tax |
BAM | Build America Mutual Assurance Company |
CAB | Capital appreciation bond |
COP | Certificate of participation |
EDFA | Economic Development Finance Authority |
GO | General obligation |
IDA | Industrial Development Authority |
NPFGC | National Public Finance Guarantee Corporation |
SIFMA | Securities Industry and Financial Markets Association |
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 Municipal Cash Management Money Market Fund Institutional Class | $367,726 | $31,354,723 | $(30,003,895 ) | $(694 ) | $(23 ) | $1,717,837 | 1,717,494 | $47,738 |
The accompanying notes are an integral part of these financial statements.
Allspring Pennsylvania Tax-Free Fund | 17
Statement of assets and liabilities—June 30, 2023
Financial statements
Statement of assets and liabilities
Assets | |
Investments in unaffiliated securities, at value (cost $106,872,985) | $102,366,154 |
Investments in affiliated securities, at value (cost $1,717,823) | 1,717,837 |
Cash | 13 |
Receivable for investments sold | 1,163,012 |
Receivable for interest | 1,117,307 |
Receivable for Fund shares sold | 4,827 |
Prepaid expenses and other assets | 30,033 |
Total assets | 106,399,183 |
Liabilities | |
Payable for when-issued transactions | 1,780,375 |
Dividends payable | 100,934 |
Payable for Fund shares redeemed | 71,199 |
Administration fees payable | 9,807 |
Distribution fee payable | 1,804 |
Management fee payable | 1,383 |
Trustees’ fees and expenses payable | 1,242 |
Accrued expenses and other liabilities | 19,167 |
Total liabilities | 1,985,911 |
Total net assets | $104,413,272 |
Net assets consist of | |
Paid-in capital | $109,535,235 |
Total distributable loss | (5,121,963 ) |
Total net assets | $104,413,272 |
Computation of net asset value and offering price per share | |
Net assets–Class A | $33,064,847 |
Shares outstanding–Class A1 | 3,117,474 |
Net asset value per share–Class A | $10.61 |
Maximum offering price per share – Class A2 | $11.11 |
Net assets–Class C | $2,722,275 |
Shares outstanding–Class C1 | 257,109 |
Net asset value per share–Class C | $10.59 |
Net assets–Institutional Class | $68,626,150 |
Shares outstanding–Institutional Class1 | 6,470,038 |
Net asset value per share–Institutional Class | $10.61 |
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.
18 | Allspring Pennsylvania Tax-Free Fund
Statement of operations—year ended June 30, 2023
Statement of operations
Investment income | |
Interest | $3,861,465 |
Income from affiliated securities | 47,738 |
Total investment income | 3,909,203 |
Expenses | |
Management fee | 431,517 |
Administration fees | |
Class A | 55,646 |
Class C | 5,134 |
Institutional Class | 55,899 |
Shareholder servicing fees | |
Class A | 86,896 |
Class C | 7,992 |
Distribution fee | |
Class C | 23,976 |
Custody and accounting fees | 9,581 |
Professional fees | 69,226 |
Registration fees | 44,157 |
Shareholder report expenses | 24,486 |
Trustees’ fees and expenses | 23,972 |
Other fees and expenses | 6,917 |
Total expenses | 845,399 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (169,263 ) |
Class A | (26,500 ) |
Class C | (2,206 ) |
Net expenses | 647,430 |
Net investment income | 3,261,773 |
Realized and unrealized gains (losses) on investments | |
Net realized losses on | |
Unaffiliated securities | (17,118 ) |
Affiliated securities | (694 ) |
Net realized losses on investments | (17,812 ) |
Net change in unrealized gains (losses) on | |
Unaffiliated securities | (982,223 ) |
Affiliated securities | (23 ) |
Net change in unrealized gains (losses) on investments | (982,246 ) |
Net realized and unrealized gains (losses) on investments | (1,000,058 ) |
Net increase in net assets resulting from operations | $2,261,715 |
The accompanying notes are an integral part of these financial statements.
Allspring Pennsylvania Tax-Free Fund | 19
Statement of changes in net assets
Statement of changes in net assets
Year ended June 30, 2023 | Year ended June 30, 2022 | |||
Operations | ||||
Net investment income | $3,261,773 | $3,207,496 | ||
Net realized losses on investments | (17,812 ) | (539,117 ) | ||
Net change in unrealized gains (losses) on investments | (982,246 ) | (13,227,576 ) | ||
Net increase (decrease) in net assets resulting from operations | 2,261,715 | (10,559,197 ) | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class A | (1,002,878 ) | (988,899 ) | ||
Class C | (67,856 ) | (83,574 ) | ||
Institutional Class | (2,190,837 ) | (2,135,212 ) | ||
Total distributions to shareholders | (3,261,571 ) | (3,207,685 ) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class A | 368,922 | 3,965,261 | 521,913 | 6,192,904 |
Class C | 51,151 | 539,361 | 7,149 | 81,001 |
Institutional Class | 2,082,656 | 21,878,721 | 1,209,101 | 13,809,591 |
26,383,343 | 20,083,496 | |||
Reinvestment of distributions | ||||
Class A | 88,128 | 931,428 | 80,133 | 921,865 |
Class C | 6,302 | 66,481 | 7,039 | 81,111 |
Institutional Class | 113,016 | 1,195,044 | 83,220 | 955,668 |
2,192,953 | 1,958,644 | |||
Payment for shares redeemed | ||||
Class A | (584,916 ) | (6,192,666 ) | (859,724 ) | (9,851,073 ) |
Class C | (144,498 ) | (1,527,601 ) | (212,560 ) | (2,462,760 ) |
Institutional Class | (2,318,807 ) | (24,487,418 ) | (1,544,113 ) | (17,311,128 ) |
(32,207,685 ) | (29,624,961 ) | |||
Net decrease in net assets resulting from capital share transactions | (3,631,389 ) | (7,582,821 ) | ||
Total decrease in net assets | (4,631,245 ) | (21,349,703 ) | ||
Net assets | ||||
Beginning of period | 109,044,517 | 130,394,220 | ||
End of period | $104,413,272 | $109,044,517 | ||
The accompanying notes are an integral part of these financial statements.
20 | Allspring Pennsylvania Tax-Free Fund
Financial highlights
Financial highlights
(For a share outstanding throughout each period)
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class A | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.71 | $11.97 | $11.75 | $11.78 | $11.48 |
Net investment income | 0.31 1 | 0.28 | 0.31 | 0.35 | 0.35 |
Net realized and unrealized gains (losses) on investments | (0.10 ) | (1.26 ) | 0.22 | (0.04 ) | 0.32 |
Total from investment operations | 0.21 | (0.98 ) | 0.53 | 0.31 | 0.67 |
Distributions to shareholders from | |||||
Net investment income | (0.31 ) | (0.28 ) | (0.31 ) | (0.34 ) | (0.34 ) |
Tax basis return of capital | 0.00 | 0.00 | 0.00 | 0.00 | (0.03 ) |
Total distributions to shareholders | (0.31 ) | (0.28 ) | (0.31 ) | (0.34 ) | (0.37 ) |
Net asset value, end of period | $10.61 | $10.71 | $11.97 | $11.75 | $11.78 |
Total return2 | 1.97 % | (8.32 )% | 4.52 % | 2.65 % | 6.00 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.97 % | 0.94 % | 0.94 % | 0.97 % | 0.96 % |
Net expenses | 0.74 % | 0.74 % | 0.74 % | 0.74 % | 0.74 % |
Net investment income | 2.88 % | 2.41 % | 2.64 % | 2.92 % | 3.07 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 20 % | 21 % | 14 % | 9 % |
Net assets, end of period (000s omitted) | $33,065 | $34,755 | $41,945 | $41,550 | $41,255 |
1 | Calculated based upon average shares outstanding |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
Allspring Pennsylvania Tax-Free Fund | 21
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class C | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.69 | $11.95 | $11.73 | $11.76 | $11.45 |
Net investment income | 0.23 1 | 0.19 1 | 0.22 | 0.27 | 0.26 1 |
Net realized and unrealized gains (losses) on investments | (0.10 ) | (1.26 ) | 0.22 | (0.05 ) | 0.34 |
Total from investment operations | 0.13 | (1.07 ) | 0.44 | 0.22 | 0.60 |
Distributions to shareholders from | |||||
Net investment income | (0.23 ) | (0.19 ) | (0.22 ) | (0.25 ) | (0.26 ) |
Tax basis return of capital | 0.00 | 0.00 | 0.00 | 0.00 | (0.03 ) |
Total distributions to shareholders | (0.23 ) | (0.19 ) | (0.22 ) | (0.25 ) | (0.29 ) |
Net asset value, end of period | $10.59 | $10.69 | $11.95 | $11.73 | $11.76 |
Total return2 | 1.20 % | (9.03 )% | 3.74 % | 1.89 % | 5.31 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.72 % | 1.68 % | 1.68 % | 1.72 % | 1.70 % |
Net expenses | 1.49 % | 1.49 % | 1.49 % | 1.49 % | 1.49 % |
Net investment income | 2.12 % | 1.64 % | 1.89 % | 2.23 % | 2.32 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 20 % | 21 % | 14 % | 9 % |
Net assets, end of period (000s omitted) | $2,722 | $3,679 | $6,485 | $8,394 | $8,768 |
1 | Calculated based upon average shares outstanding |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
22 | Allspring Pennsylvania Tax-Free Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Institutional Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.71 | $11.97 | $11.75 | $11.78 | $11.48 |
Net investment income | 0.33 1 | 0.31 | 0.34 | 0.38 | 0.38 |
Net realized and unrealized gains (losses) on investments | (0.10 ) | (1.26 ) | 0.21 | (0.04 ) | 0.32 |
Total from investment operations | 0.23 | (0.95 ) | 0.55 | 0.34 | 0.70 |
Distributions to shareholders from | |||||
Net investment income | (0.33 ) | (0.31 ) | (0.33 ) | (0.37 ) | (0.37 ) |
Tax basis return of capital | 0.00 | 0.00 | 0.00 | 0.00 | (0.03 ) |
Total distributions to shareholders | (0.33 ) | (0.31 ) | (0.33 ) | (0.37 ) | (0.40 ) |
Net asset value, end of period | $10.61 | $10.71 | $11.97 | $11.75 | $11.78 |
Total return | 2.23 % | (8.10 )% | 4.78 % | 2.91 % | 6.27 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.65 % | 0.61 % | 0.61 % | 0.64 % | 0.62 % |
Net expenses | 0.49 % | 0.49 % | 0.49 % | 0.49 % | 0.49 % |
Net investment income | 3.14 % | 2.66 % | 2.88 % | 3.18 % | 3.31 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 20 % | 21 % | 14 % | 9 % |
Net assets, end of period (000s omitted) | $68,626 | $70,610 | $81,964 | $80,592 | $79,128 |
1 | Calculated based upon average shares outstanding |
The accompanying notes are an integral part of these financial statements.
Allspring Pennsylvania Tax-Free Fund | 23
Notes to financial statements
Notes to financial statements
1.
ORGANIZATION
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Pennsylvania Tax-Free 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.
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.
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, 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.
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.
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 and 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 received 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.
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
24 | Allspring Pennsylvania Tax-Free Fund
Notes to financial statements
been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, 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 June 30, 2023, the aggregate cost of all investments for federal income tax purposes was $108,590,808 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $682,146 |
Gross unrealized losses | (5,188,963 ) |
Net unrealized losses | $(4,506,817 ) |
As of June 30, 2023, the Fund had capital loss carryforwards which consist of $312,644 in short-term capital losses and $305,074 in long-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.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2023:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Municipal obligations | $0 | $102,366,154 | $0 | $102,366,154 |
Short-term investments | ||||
Investment companies | 1,717,837 | 0 | 0 | 1,717,837 |
Total assets | $1,717,837 | $102,366,154 | $0 | $104,083,991 |
Allspring Pennsylvania Tax-Free Fund | 25
Notes to financial statements
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended June 30, 2023, the Portfolio did not have 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 | 0.400 % |
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 year ended June 30, 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 a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.20% 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 | 0.15 % |
Class C | 0.15 |
Institutional Class | 0.08 |
Prior to June 30, 2023, the class-level administration fee for Class A and Class C was 0.16% of the average daily net assets of each respective class.
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 October 31, 2023 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 June 30, 2023, the contractual expense caps are as follows:
EXPENSE RATIO CAPS | |
Class A | 0.74 % |
Class C | 1.49 |
Institutional Class | 0.49 |
26 | Allspring Pennsylvania Tax-Free Fund
Notes to financial statements
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 year ended June 30, 2023, Allspring Funds Distributor received $1,155 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the year ended June 30, 2023.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A and Class C 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. Pursuant to these procedures, the Fund had $0, $4,000,000 and $0 in interfund purchases, sales and net realized gains (losses), respectively, during the year ended June 30, 2023.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2023 were $18,187,572 and $15,574,416, 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 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 year ended June 30, 2023, there were no borrowings by the Fund under the agreement.
7.
DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid was $3,261,571 and $3,207,685 of tax-exempt income for the years ended June 30, 2023 and June 30, 2022, respectively.
As of June 30, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | Unrealized losses | Capital loss carryforward |
$113,593 | $(4,506,817 ) | $(617,718 ) |
8.
CONCENTRATION RISK
The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state or territory of the U.S. Therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt fund. As of the end of the period, the Fund’s investments were concentrated in the state of Pennsylvania.
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.
Allspring Pennsylvania Tax-Free Fund | 27
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring Pennsylvania Tax-Free Fund (the Fund), one of the funds constituting Allspring Funds Trust, including the portfolio of investments, as of June 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of June 30, 2023, by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
August 25, 2023
28 | Allspring Pennsylvania Tax-Free Fund
Other information (unaudited)
Other information
Tax information
Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2023.
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 1-866-259-3305, 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 Pennsylvania Tax-Free Fund | 29
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 |
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 |
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.
30 | Allspring Pennsylvania Tax-Free 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 |
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 Pennsylvania Tax-Free Fund | 31
Other information (unaudited)
Officers1
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 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 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.
32 | Allspring Pennsylvania Tax-Free Fund
Other information (unaudited)
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 15-17, 2023 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Pennsylvania Tax-Free Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2023, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
The Board noted that it initially approved the Advisory Agreements at a Board meeting held in May 2021, each for a two-year term, in advance of the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC,1 a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. (the “Transaction”). The Trustees also noted that, while they did not specifically consider the continuation of the Advisory Agreements in 2022 as a result of the two-year term that was approved in 2021, the Trustees received and considered certain information at a Board meeting held in April 2022 that was applicable to the Advisory Agreements, including an overview and financial review of the Allspring Global Investments business, information regarding certain ancillary agreements that were approved by the Board at the April 2022 Board meeting, and comparative data regarding Fund fees and expenses.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2023. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business. The Board also considered information about retention arrangements with respect to key personnel of Allspring Global Investments that were put in place in connection with the Transaction. The Board took into account information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the Transaction under a transition services agreement and the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
1
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
Allspring Pennsylvania Tax-Free Fund | 33
Other information (unaudited)
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, and Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2022. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Class A shares) was higher than the average investment performance of the Universe for all periods under review, except that the investment performance of the Fund was equal to the average investment performance of the Universe for the five-year period under review. The Board also noted that the investment performance of the Fund was lower than the investment performance of its benchmark index, the Bloomberg Municipal Bond Index, for all periods under review, except that the investment performance of the Fund was in range of the investment performance of its benchmark index for the ten-year period under review.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than the sum of these average rates for the Fund’s expense Groups for the Institutional Class, and that the Management Rates of the Fund were in range of the sum of these average rates for the Fund’s expense Groups for the Class A shares.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
34 | Allspring Pennsylvania Tax-Free Fund
Other information (unaudited)
Profitability
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and differences in how Allspring Global Investments calculates its pre-tax profit metric versus the methodology used when Allspring Funds Management was part of Wells Fargo. It was noted that the impact of such differences had only minor impact on the financial results presented. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser and fees earned in the past by Allspring Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund complex’s securities lending collateral.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
Allspring Pennsylvania Tax-Free Fund | 35
Other information (unaudited)
Liquidity risk management program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that operate as money market funds), including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund’s investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the “Council”) composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 16-17, 2023, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2022 through December 31, 2022 (the “Reporting Period”). The Report noted significant liquidity events impacting the Funds related to extended foreign market holidays as well as the difficulty of trading and settlement of most Russia-related securities due to sanctions activity. The Report noted that there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage the Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
36 | Allspring Pennsylvania Tax-Free 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
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-07102023-v0eksi2l 08-23
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The views expressed and any forward-looking statements are as of June 30, 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 Short-Term Municipal Bond Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Short-Term Municipal Bond Fund for the 12-month period that ended June 30, 2023. Globally, stocks and bonds experienced heightened volatility through the period. The market was focused on persistently high inflation and the impact of ongoing aggressive central bank rate hikes. Compounding these concerns were the global reverberations of the Russia-Ukraine war. Riskier assets rallied in 2023, with anticipation of an end to the tight monetary policy despite concerns of a possible impending recession. After suffering deep and broad losses through 2022, bonds now benefit from a base of higher yields that can help generate higher income. However, ongoing rate hikes continued to be a headwind during recent months.
For the 12-month period, stocks generally outperformed bonds—both domestic U.S. and global. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 19.59%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 12.72%, while the MSCI EM Index (Net) (USD)3 had more muted performance, with a gain of 1.75%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -0.94%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 fell 1.83%, the Bloomberg Municipal Bond Index6 gained 3.19%, and the ICE BofA U.S. High Yield Index7 returned 8.97%.
Despite high inflation and central bank rate hikes, markets rallied.
Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong: July nonfarm payrolls grew by more than 500,000 and U.S. unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices—major contributors to recent overall inflation—fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with mortgage rates at a 13-year high. The Federal Reserve (Fed) raised the federal funds rate 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to further rate hikes.
August was a broadly challenging month. High inflation persisted, cresting 9% in the eurozone on an annual basis and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June peak. One positive was the resilient U.S. jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act. Its primary stated goals include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“ Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong. ”
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 the 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 Short-Term Municipal Bond Fund
Letter to shareholders (unaudited)
In September, all asset classes suffered further major losses. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar weighed on results for investors holding non-U.S.-dollar assets. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The Bank of England (BoE) then stepped in and bought long-dated government bonds.
Equities had a reprieve in October. 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 increasing 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.
Financial markets cooled in December, with U.S. equities declining overall in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever, with generally flat 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 wound 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 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.
Markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks would 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 was not falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the BoE and the European Central Bank (ECB) both raised rates by 0.50%.
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 banking industry turmoil created an additional challenge for central banks in balancing inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. 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 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. ”
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.
Allspring Short-Term Municipal Bond Fund | 3
Letter to shareholders (unaudited)
Economic data released in April pointed to global resilience, as Purchasing Managers Indexes1 in the U.S., U.K., and eurozone beat expectations and China reported first-quarter annualized economic growth of 4.5%. Despite banking industry stress, developed market stocks had monthly gains. The U.S. labor market remained strong, with a 3.5% jobless rate and monthly payroll gains above 200,000. However, uncertainty and inflationary concerns weighed on investors in the U.S. and abroad.
May was marked by a divergence between expanding activity in services and an overall contraction in manufacturing activity in the U.S., U.K., and eurozone. Core inflation remained elevated in the U.S. and Europe, despite the ongoing efforts of the Fed and ECB, which included rate hikes of 0.25% by both in May. Stubborn inflation and the resilient U.S. labor market led to expectations of further interest rate hikes, overall monthly declines across bond indexes, and mixed results for stocks in May. Investor worries over a U.S. debt ceiling impasse were modest, and market confidence was buoyed by a deal in late May to avert a potential U.S. debt default.
June featured the Fed’s first pause on interest rate hikes since March 2022, when it began its aggressive campaign to rein in inflation. However, core CPI, excluding food and energy prices, while continuing to decline, remained stubbornly high in June, at 4.8%, well above the Fed’s 2.0% target rate. With the U.S. unemployment rate still at 3.6%, near a historical low, and U.S. payrolls growing in June for the 30th consecutive month, expectations of more Fed rate hikes were reinforced. However, U.S. and global stocks had strong returns in June.
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
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.
1
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.
4 | Allspring Short-Term Municipal Bond Fund
Letter to shareholders (unaudited)
Notice to Shareholders |
Beginning in July 2024, the Fund will be required by the Securities and Exchange Commission to send shareholders a paper copy of a new tailored shareholder report in place of the full shareholder report that you are now receiving. The tailored shareholder report will contain concise information about the Fund, including certain expense and performance information and fund statistics. If you wish to receive this new tailored shareholder report electronically, please follow the instructions on the back cover of this report. |
Other information that is currently included in the shareholder report, such as the Fund’s financial statements, will be available online and upon request, free of charge, in paper or electronic format. |
Allspring Short-Term Municipal Bond Fund | 5
Performance highlights (unaudited)
Performance highlights
Investment objective | The Fund seeks current income exempt from federal income tax consistent with capital preservation. |
Manager | Allspring Funds Management, LLC |
Subadviser | Allspring Global Investments, LLC |
Portfolio managers | Bruce R. Johns, Nicholos Venditti |
Average annual total returns (%) as of June 30, 2023 | |||||||||
Including sales charge | Excluding sales charge | Expense ratios1 (%) | |||||||
Inception date | 1 year | 5 year | 10 year | 1 year | 5 year | 10 year | Gross | Net2 | |
Class A (WSMAX) | 7-18-2008 | -0.50 | 0.37 | 0.65 | 1.53 | 0.78 | 0.85 | 0.76 | 0.63 |
Class C (WSSCX) | 1-31-2003 | -0.23 | 0.02 | 0.25 | 0.77 | 0.02 | 0.25 | 1.51 | 1.38 |
Class R6 (WSSRX)3 | 7-31-2018 | – | – | – | 1.70 | 1.04 | 1.09 | 0.38 | 0.35 |
Administrator Class (WSTMX) | 7-30-2010 | – | – | – | 1.45 | 0.78 | 0.85 | 0.70 | 0.60 |
Institutional Class (WSBIX) | 3-31-2008 | – | – | – | 1.65 | 0.99 | 1.06 | 0.43 | 0.40 |
Bloomberg 1-3 Year Composite Municipal Bond Index4 | – | – | – | – | 1.10 | 1.07 | 1.04 | – | – |
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 2.00%. 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. 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 October 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.63% for Class A, 1.38% for Class C, 0.35% for Class R6, 0.60% for Administrator Class and 0.40% 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 Bloomberg 1-3 Year Composite Municipal Bond Index is a blended index weighted 50% in the Bloomberg 1-Year Municipal Bond Index and 50% in the Bloomberg 3-Year Municipal Bond Index. 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. 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 high-yield securities risk and municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.
6 | Allspring Short-Term Municipal Bond Fund
Performance highlights (unaudited)
Growth of $10,000 investment as of June 30, 20231 |
1 | The chart compares the performance of Class A shares for the most recent ten years with the Bloomberg 1-3 Year Composite Municipal Bond Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 2.00%. |
Allspring Short-Term Municipal Bond Fund | 7
Performance highlights (unaudited)
MANAGER’S DISCUSSION
Fund highlights
•The Fund (Class A, excluding sales change) outperformed its benchmark, the Bloomberg 1–3 Year Composite Municipal Bond Index, for the 12-month period that ended June 30, 2023.
•Individual security selection and credit-quality positioning were the biggest drivers of performance. The Fund maintained an overweight to lower-quality investment-grade bonds, which performed well, while being underweight higher-quality investment-grade bonds, which performed poorly. Our out-of-benchmark allocation to non-investment-grade bonds contributed, too. Yield-curve positioning modestly contributed to performance as the short-term Municipal Market Data (MMD) curve inverted for the year and our barbell yield-curve positioning benefited: The shortest and longest bonds outperformed the market significantly over the year as the 1-year to 10-year part of the curve inverted.
•Overweights to strong-performing sectors were positive, aided by security selection. In weaker sectors where we were underweight, our security selection was positive, leading us to perform well.
•Our long duration positioning detracted from performance as rates increased in all segments of the curve, particularly on shorter-term bonds. Sector allocation had a muted effect as general obligation (GO) bonds, which we are underweight, had index-like performance overall and revenue bonds, which we are overweight, outpaced the index.
Global economies increase lending rates in hopes of taming runaway inflation.
Entering 2022, the excitement of a post-pandemic world gave way to new whispers and fears of higher prices and broad-based inflation caused by supply chain bottlenecks, increased housing costs, wage increases, and employment market distortions. Those fears quickly became reality and prices began to rise at a historic rate. The Federal Open Market Committee acted quickly and with purpose: ending open market purchases, reducing its balance sheet, and raising the benchmark overnight lending rate at each monthly meeting through 2022 and early 2023. Fixed income and equity markets fell sharply but began to recover as annual inflation numbers peaked in June and began to recede.
The U.S. unemployment rate, which reached a multigenerational high of more than 14% in the spring of 2020, fell throughout the past year and has settled below 4%. Employers continue to add jobs, especially in service-oriented industries, and the resulting wage increases have further contributed to inflationary pressures. After U.S. gross domestic product (GDP) turned negative in the first and second quarters of 2022, it expanded at rates above 2% in each subsequent quarter. The federal funds rate, which began 2022 at 0.25% to 0.50%, was raised 10 consecutive times before a pause in June 2023. It now sits at 5.25% to 5.50% as the U.S. Federal Reserve (Fed) attempts to curb inflation. In this environment, some form of recession seems imminent.
In the wake of continued rate increases, U.S. fixed income yields rose dramatically as investors reacted to Fed actions, with the yield on the 10-year Treasury ending the period near 4%. Rising Treasury yields affected all fixed income sectors in 2022, with all seeing their worst returns in more than 40 years. The U.S. Treasury yield curve remained substantially inverted throughout the period, which has driven many investors into shorter-term interest-bearing vehicles, including money markets.
Credit quality as of June 30, 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. |
8 | Allspring Short-Term Municipal Bond Fund
Performance highlights (unaudited)
Municipals sold off drastically to start the period but began to rebound in the fourth quarter of 2022. The Bloomberg Municipal Bond Index* fell nearly 8% and the broader municipal market had more than $124 billion in outflows before stabilizing early in 2023. For the first time in history, the municipal yield curve also inverted but not to the degree seen in Treasuries.
While this environment has certainly been painful for municipal investors, the drawdown has created significantly improved opportunities and entry points. Municipal to Treasury ratios ended the period elevated but at far better levels than in 2021. Municipal credit spreads have widened substantially while the underlying fundamental credit of municipalities remains strong following trillions of dollars in government stimulus. We believe investors will continue to return to the municipal market in the latter half of 2023, attracted by increased yields, positive fundamental strength, and good relative value.
Factors across the market influenced Fund performance.
Coming into the fiscal year, municipal bonds had been selling off as the Fed launched its interest rate hiking cycle in March 2022 and continued to raise interest rates to a range of 5.25% to 5.50% over the 15-month period. Technical factors worked against municipal bonds, with net redemptions from municipal bond funds and outflows of $122 billion in 2022. Even though bond issuance dropped 20%, it could not stem the backup in rates of 145 basis points (bps; 100 bps equal 1.00%) on the front end of the MMD curve and 31 bps on the long end as the yield curve continued to flatten.
Facing high yields and fears of a Fed-induced recession, credit spreads expanded. Investors were apathetic to making bond purchases. Instead, they put funds into money market funds and short Treasury bonds at yields not seen in decades. Lower-investment-grade bonds in the A-rated and BBB-rated credit tiers rewarded investors with strong performance as an attractive alternative to A-rated and BBB-rated corporate bonds.
With the municipal yield curve significantly inverting over the course of the year, we have reached a higher nominal interest rate yield in a particularly short time frame and credit spreads have expanded. That dovetailed with fundamentally strong municipal credit, which attracted investors along with lower-rated investment-grade bonds. We have started to extend bond duration in anticipation of a Fed pause in rate hikes expected later in 2023 or 2024.
Security selection, credit quality, and yield-curve positioning drove performance, while duration detracted.
The Fund was at its target duration at the start of the period and ended with modestly long duration relative to the index. We expect the Fed to increase rates a couple more times as it nears the end of this rate-rising cycle, with inflationary pressure abating.
Being long duration modestly detracted from performance, but the barbell yield-curve positioning, with an overweight to bonds under one year and
overweight to 5- to 7-year bonds, benefited the Fund. A large driver of performance was our overweight to lower-quality investment-grade bonds (A-rated and BBB-rated), which outperformed relative to higher-quality investment-grade bonds (AAA-rated and AA-rated), which we are underweight. We also benefited from our out-of-benchmark allocation to non-investment-grade bonds, which had strong performance. The largest single driver of performance was our strong individual security selection. In sectors or credit tiers that we were overweight and that outperformed, we outpaced the index. However, we also did well in underperforming sectors and credit tiers where we were underweight as our security selection outpaced index-driven performance. This research-driven portfolio management security selection process benefited the Fund.
Positions that added to performance included New York City LaGuardia Airport bonds (transportation), Minnesota Municipal Gas Agency bonds (revenue-IDR/PCR), and Chandler Industrial Development Authority bonds (revenue-IDR/PCR). Underperformers included our holdings of Marquis Community Development Authority Revenue bonds (tax increment); Berks County Pennsylvania Industrial Authority bonds-Tower Health (hospital); and Minneapolis, MN Healthcare Revenue bonds-Allina Health (hospital). Over the long term, these bonds are expected to recover in pricing. As the market bounces back from the drawdown of the past 18 months and rates stabilize, we expect many of these bonds to strengthen.
Effective maturity distribution as of June 30, 20231 |
1 | Figures represent the percentage of the Fund’s long-term investments. These amounts are subject to change and may have changed since the date specified. |
Rates should increase modestly with favorable bond selection opportunities.
Our outlook is for long-term interest rates to increase modestly as the Fed continues to battle structural inflation. Employment and GDP growth should hold onto gains from last year’s growth, but we expect the tug of war between fighting inflation and adding recessionary pressure to intensify as the economy slows.
Fundamental credit factors remain strong in the municipal bond market. We believe the Fed will continue its monetary tightening policy well into the second half of calendar-year 2023 and we are looking for signs of a slowing national economy. These actions should only have a modest effect on municipal credit quality. That coupled with a weak technical market makes municipal bonds attractive for buying lower-investment-grade bonds in the revenue and local GO sectors. We believe the Fed will reach its terminal rate in the second half of 2023, and with its view of higher rates for
*
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.
Allspring Short-Term Municipal Bond Fund | 9
Performance highlights (unaudited)
longer in 2024, there will be opportune times to invest.
During the second half of 2023, we will continue to extend duration. We see opportunities for lower-investment-grade bond purchases in the 1- to 4-year maturity buckets and higher-investment-grade bonds in the 5- to 7-year maturity bucket.
We will continue to let the barbell yield-curve positioning roll down the curve, seeking to deploy more capital at higher yields due to the yield-
curve inversion and higher short-term rates. We will continue our overweight bias to lower-quality investment-grade bonds in the revenue and local GO sectors. We may add higher-quality bonds in the AAA-rated and AA-rated credit tiers as opportunities arise in cash flow notes, floating-rate notes, and corporate-backed gas bonds.
We believe the overall outlook for bond selection remains favorable in this environment.
10 | Allspring Short-Term Municipal Bond Fund
Fund expenses (unaudited)
Fund expenses
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 January 1, 2023 to June 30, 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 1-1-2023 | Ending account value 6-30-2023 | Expenses paid during the period1 | Annualized net expense ratio | |
Class A | ||||
Actual | $1,000.00 | $1,013.64 | $3.15 | 0.63 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.67 | $3.16 | 0.63 % |
Class C | ||||
Actual | $1,000.00 | $1,009.87 | $6.88 | 1.38 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.95 | $6.90 | 1.38 % |
Class R6 | ||||
Actual | $1,000.00 | $1,013.97 | $1.75 | 0.35 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,023.06 | $1.76 | 0.35 % |
Administrator Class | ||||
Actual | $1,000.00 | $1,012.73 | $2.99 | 0.60 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.82 | $3.01 | 0.60 % |
Institutional Class | ||||
Actual | $1,000.00 | $1,013.72 | $2.00 | 0.40 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.81 | $2.01 | 0.40 % |
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 181 divided by 365 (to reflect the one-half-year period). |
Allspring Short-Term Municipal Bond Fund | 11
Portfolio of investments—June 30, 2023
Portfolio of investments
Principal | Value | |||||
Closed-end fund obligations: 0.35% | ||||||
California: 0.35% | ||||||
Nuveen California AMT-Free Quality Municipal Income Fund Preferred Shares Series A (70 shares) 4.63%144Aø | $ | 7,000,000 | $7,000,000 | |||
Total closed-end fund obligations (Cost $7,000,000) | 7,000,000 | |||||
Interest rate | Maturity date | |||||
Municipal obligations: 99.36% | ||||||
Alabama: 3.60% | ||||||
Airport revenue: 0.10% | ||||||
Birmingham Airport Authority (BAM Insured) | 5.00 % | 7-1-2023 | 475,000 | 475,000 | ||
Birmingham Airport Authority (BAM Insured) | 5.00 | 7-1-2026 | 900,000 | 948,692 | ||
Birmingham Airport Authority (BAM Insured) | 5.00 | 7-1-2027 | 500,000 | 538,067 | ||
1,961,759 | ||||||
Industrial development revenue: 0.45% | ||||||
Industrial Development Board of the City of Mobile Alabama Alabama Power Co.øø | 1.00 | 6-1-2034 | 8,500,000 | 8,058,717 | ||
Selma Industrial Development Board International Paper Co. Series Aøø | 2.00 | 11-1-2033 | 1,000,000 | 976,977 | ||
9,035,694 | ||||||
Utilities revenue: 3.05% | ||||||
Black Belt Energy Gas District Series Aøø | 4.00 | 12-1-2048 | 8,000,000 | 7,997,366 | ||
Black Belt Energy Gas District Series D1 (Royal Bank of Canada LIQ)øø | 4.00 | 7-1-2052 | 3,500,000 | 3,489,101 | ||
Black Belt Energy Gas District Gas Supply Project No. 4 Series A-1 | 4.00 | 6-1-2024 | 3,640,000 | 3,642,544 | ||
Black Belt Energy Gas District Gas Supply Project No. 7 Series C-1 | 4.00 | 12-1-2025 | 1,500,000 | 1,495,104 | ||
Black Belt Energy Gas District Gas Supply Project No. 7 Series C-1øø | 4.00 | 10-1-2052 | 3,900,000 | 3,864,851 | ||
Chatom Industrial Development Board PowerSouth Energy Cooperative (AGM Insured) | 5.00 | 8-1-2024 | 985,000 | 1,001,128 | ||
Chatom Industrial Development Board PowerSouth Energy Cooperative (AGM Insured) | 5.00 | 8-1-2025 | 425,000 | 436,774 | ||
Chatom Industrial Development Board PowerSouth Energy Cooperative (AGM Insured) | 5.00 | 8-1-2026 | 500,000 | 521,355 | ||
Southeast Alabama Gas Supply District Series Aøø | 4.00 | 4-1-2049 | 4,000,000 | 3,994,131 | ||
Southeast Alabama Gas Supply District Project No. 2 Series Aøø | 4.00 | 6-1-2049 | 20,060,000 | 20,021,162 | ||
Southeast Energy Authority A Cooperative District Project No. 3 Series Aøø | 5.50 | 1-1-2053 | 2,000,000 | 2,126,694 | ||
Southeast Energy Authority A Cooperative District Project No. 5 Series Aøø | 5.25 | 1-1-2054 | 5,500,000 | 5,750,775 | ||
Tender Option Bond Trust Receipts/Certificates Series 2022- XF3073 (Morgan Stanley Bank LIQ)144Aø | 4.36 | 2-1-2053 | 6,300,000 | 6,300,000 | ||
60,640,985 | ||||||
71,638,438 | ||||||
The accompanying notes are an integral part of these financial statements.
12 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Alaska: 0.61% | ||||||
Airport revenue: 0.20% | ||||||
State of Alaska International Airports System Series C AMT | 5.00 % | 10-1-2026 | $ | 3,000,000 | $3,117,038 | |
State of Alaska International Airports System Series C AMT | 5.00 | 10-1-2028 | 775,000 | 828,400 | ||
3,945,438 | ||||||
Health revenue: 0.21% | ||||||
Alaska Industrial Development & Export Authority Dena’ Nena’ Henash Series A | 5.00 | 10-1-2023 | 600,000 | 601,886 | ||
Alaska Industrial Development & Export Authority Dena’ Nena’ Henash Series A | 5.00 | 10-1-2024 | 750,000 | 761,307 | ||
Alaska Industrial Development & Export Authority Dena’ Nena’ Henash Series A | 5.00 | 10-1-2025 | 1,310,000 | 1,346,312 | ||
Alaska Industrial Development & Export Authority Dena’ Nena’ Henash Series A | 5.00 | 10-1-2026 | 1,385,000 | 1,444,192 | ||
4,153,697 | ||||||
Miscellaneous revenue: 0.20% | ||||||
Alaska Municipal Bond Bank Authority | 5.00 | 12-1-2025 | 1,470,000 | 1,528,585 | ||
Alaska Municipal Bond Bank Authority | 5.00 | 12-1-2026 | 1,350,000 | 1,428,796 | ||
Alaska Municipal Bond Bank Authority Series 2 AMT | 5.00 | 12-1-2027 | 535,000 | 564,838 | ||
Alaska Municipal Bond Bank Authority Series 2 AMT | 5.00 | 12-1-2028 | 560,000 | 599,709 | ||
4,121,928 | ||||||
12,221,063 | ||||||
Arizona: 3.71% | ||||||
Airport revenue: 0.15% | ||||||
City of Phoenix Civic Improvement Corp. AMT | 5.00 | 7-1-2024 | 1,000,000 | 1,012,657 | ||
City of Phoenix Civic Improvement Corp. AMT | 5.00 | 7-1-2026 | 2,000,000 | 2,084,376 | ||
3,097,033 | ||||||
Education revenue: 0.02% | ||||||
Arizona IDA Kipp NYC Public Charter Schools Series B | 5.00 | 7-1-2027 | 170,000 | 174,926 | ||
Arizona IDA Kipp NYC Public Charter Schools Series B | 5.00 | 7-1-2028 | 175,000 | 180,526 | ||
355,452 | ||||||
GO revenue: 0.10% | ||||||
Vistancia Community Facilities District (BAM Insured) | 4.00 | 7-15-2024 | 1,150,000 | 1,157,691 | ||
Vistancia Community Facilities District (BAM Insured) | 4.00 | 7-15-2026 | 900,000 | 924,317 | ||
2,082,008 | ||||||
Health revenue: 1.54% | ||||||
Arizona Health Facilities Authority Banner Health Obligated Group Series B (SIFMA Municipal Swap+0.25%)± | 4.26 | 1-1-2046 | 4,000,000 | 3,920,542 | ||
Maricopa County IDA Banner Health Obligated Group Series A-3øø | 5.00 | 1-1-2053 | 12,000,000 | 13,325,939 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 13
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
Maricopa County IDA Banner Health Obligated Group Series C (SIFMA Municipal Swap+0.57%)± | 4.58 % | 1-1-2035 | $ | 4,405,000 | $4,391,804 | |
Maricopa County IDA HonorHealth Obligated Group Series C (SIFMA Municipal Swap+0.80%)± | 4.81 | 9-1-2048 | 9,000,000 | 8,982,181 | ||
30,620,466 | ||||||
Industrial development revenue: 1.77% | ||||||
Chandler IDA Intel Corp.øø## | 2.40 | 12-1-2035 | 28,085,000 | 28,033,425 | ||
Chandler IDA Intel Corp. AMTøø | 2.70 | 12-1-2037 | 1,175,000 | 1,172,769 | ||
Chandler IDA Intel Corp. AMTøø | 5.00 | 6-1-2049 | 5,920,000 | 5,965,583 | ||
35,171,777 | ||||||
Miscellaneous revenue: 0.13% | ||||||
City of Phoenix Civic Improvement Corp. AMT | 5.00 | 7-1-2028 | 2,500,000 | 2,500,000 | ||
73,826,736 | ||||||
Arkansas: 0.22% | ||||||
Health revenue: 0.07% | ||||||
Batesville Public Facilities Board White River Health System Obligated Group | 5.00 | 6-1-2025 | 1,385,000 | 1,406,647 | ||
Housing revenue: 0.10% | ||||||
Arkansas Development Finance Authority EC Cottages LLC (Department of Housing and Urban Development Insured)øø | 1.25 | 12-1-2024 | 2,000,000 | 1,979,939 | ||
Tax revenue: 0.05% | ||||||
City of Cabot Sales & Use Tax Revenue Series B | 5.00 | 12-1-2028 | 435,000 | 480,246 | ||
City of Springdale Sales & Use Tax Revenue Series B (BAM Insured)%% | 5.00 | 8-1-2030 | 100,000 | 111,403 | ||
City of Springdale Sales & Use Tax Revenue Series B (BAM Insured)%% | 5.00 | 8-1-2031 | 310,000 | 345,208 | ||
936,857 | ||||||
4,323,443 | ||||||
California: 2.77% | ||||||
Airport revenue: 0.13% | ||||||
City of Los Angeles Department of Airports Series D AMT | 5.00 | 5-15-2027 | 2,500,000 | 2,641,791 | ||
GO revenue: 0.35% | ||||||
Kern Community College District Facilities Improvement District No. 1 CAB BAN¤ | 0.00 | 8-1-2023 | 7,000,000 | 6,980,727 | ||
Health revenue: 0.34% | ||||||
California Statewide Communities Development Authority Emanate Health Obligated Group Series A | 5.00 | 4-1-2026 | 570,000 | 593,996 | ||
California Statewide Communities Development Authority Emanate Health Obligated Group Series A | 5.00 | 4-1-2027 | 845,000 | 890,098 | ||
Tender Option Bond Trust Receipts/Certificates Series 2018- XG0175 (Bank of America NA LIQ)144Aø | 4.14 | 3-1-2039 | 4,825,000 | 4,825,000 | ||
The accompanying notes are an integral part of these financial statements.
14 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
Washington Township Health Care District Series A | 5.00 % | 7-1-2024 | $ | 200,000 | $202,259 | |
Washington Township Health Care District Series A | 5.00 | 7-1-2025 | 200,000 | 204,397 | ||
6,715,750 | ||||||
Housing revenue: 0.35% | ||||||
Mizuho Floater/Residual Trust Series 2021-MIZ9063 (Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ)144Aø | 4.51 | 5-1-2049 | 7,000,000 | 7,000,000 | ||
Miscellaneous revenue: 0.31% | ||||||
California Infrastructure & Economic Development Bank J Paul Getty Trust Series B-2øø | 3.00 | 10-1-2047 | 1,000,000 | 992,687 | ||
California Municipal Finance Authority Palomar Health Obligated Group144A | 5.00 | 11-1-2027 | 3,000,000 | 3,083,357 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2024 | 400,000 | 400,532 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2025 | 415,000 | 416,418 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2026 | 435,000 | 438,052 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2027 | 450,000 | 454,695 | ||
Lassen Municipal Utility District COP | 4.00 | 5-1-2028 | 470,000 | 476,896 | ||
6,262,637 | ||||||
Tax revenue: 0.07% | ||||||
Riverside County PFA Project Area No. 1 Series A (BAM Insured) | 5.00 | 10-1-2026 | 1,250,000 | 1,300,690 | ||
Transportation revenue: 0.92% | ||||||
Bay Area Toll Authority Series C (SIFMA Municipal Swap+0.45%)± | 4.46 | 4-1-2056 | 2,750,000 | 2,719,408 | ||
Bay Area Toll Authority Series D (SIFMA Municipal Swap+0.30%)± | 4.31 | 4-1-2056 | 16,000,000 | 15,611,451 | ||
18,330,859 | ||||||
Utilities revenue: 0.30% | ||||||
California Community Choice Financing Authority Clean Energy Project Green Bond Series C | 5.00 | 10-1-2028 | 475,000 | 487,815 | ||
California Community Choice Financing Authority Clean Energy Project Green Bond Series C | 5.00 | 10-1-2029 | 675,000 | 696,171 | ||
California Community Choice Financing Authority Clean Energy Project Green Bond Series C | 5.00 | 10-1-2030 | 1,500,000 | 1,549,977 | ||
City of Vernon Electric System Revenue Series 2022-A | 5.00 | 8-1-2024 | 685,000 | 691,818 | ||
City of Vernon Electric System Revenue Series 2022-A | 5.00 | 8-1-2025 | 500,000 | 508,646 | ||
Long Beach Bond Finance Authority Series B (3 Month LIBOR+1.43%)± | 5.00 | 11-15-2026 | 2,000,000 | 1,981,170 | ||
5,915,597 | ||||||
55,148,051 | ||||||
Colorado: 1.29% | ||||||
Education revenue: 0.22% | ||||||
University of Colorado Series Cøø | 2.00 | 6-1-2054 | 2,000,000 | 1,950,700 | ||
University of Colorado Series C3Aøø | 2.00 | 6-1-2051 | 2,500,000 | 2,403,148 | ||
4,353,848 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 15
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue: 0.11% | ||||||
Grand River Hospital District (AGM Insured) | 5.00 % | 12-1-2024 | $ | 1,140,000 | $1,160,735 | |
Sand Creek Metropolitan District Series A (AGM Insured) | 4.00 | 12-1-2024 | 550,000 | 554,990 | ||
Sand Creek Metropolitan District Series A (AGM Insured) | 4.00 | 12-1-2025 | 400,000 | 406,424 | ||
2,122,149 | ||||||
Health revenue: 0.39% | ||||||
Colorado Health Facilities Authority AdventHealth Obligated Group Series Bøø | 5.00 | 11-15-2049 | 900,000 | 946,314 | ||
Colorado Health Facilities Authority AdventHealth Obligated Group Series Cøø | 5.00 | 11-15-2036 | 3,165,000 | 3,322,112 | ||
Colorado Health Facilities Authority Christian Living Neighborhoods Obligated Group | 4.00 | 1-1-2025 | 325,000 | 317,939 | ||
University of Colorado Hospital Authority University of Colorado Health Obligated Group Series Cø | 3.95 | 11-15-2039 | 3,200,000 | 3,200,000 | ||
7,786,365 | ||||||
Miscellaneous revenue: 0.39% | ||||||
Colorado Bridge Enterprise Colorado High Performance Transportation Enterprise AMT | 4.00 | 12-31-2023 | 1,285,000 | 1,288,996 | ||
Colorado Bridge Enterprise Colorado High Performance Transportation Enterprise AMT | 4.00 | 12-31-2025 | 2,455,000 | 2,466,967 | ||
Colorado Bridge Enterprise Colorado High Performance Transportation Enterprise AMT | 4.00 | 6-30-2026 | 4,050,000 | 4,075,333 | ||
7,831,296 | ||||||
Tax revenue: 0.02% | ||||||
Regional Transportation District Denver Transit Partners LLC Series A | 4.00 | 7-15-2033 | 500,000 | 518,948 | ||
Transportation revenue: 0.13% | ||||||
E-470 Public Highway Authority Series A | 5.00 | 9-1-2024 | 450,000 | 459,233 | ||
E-470 Public Highway Authority Series A | 5.00 | 9-1-2025 | 300,000 | 311,482 | ||
E-470 Public Highway Authority Series A | 5.00 | 9-1-2026 | 1,750,000 | 1,848,642 | ||
2,619,357 | ||||||
Water & sewer revenue: 0.03% | ||||||
Central Weld County Water District (AGM Insured) | 5.00 | 12-1-2027 | 500,000 | 542,725 | ||
25,774,688 | ||||||
Connecticut: 2.12% | ||||||
Education revenue: 0.45% | ||||||
Connecticut State HEFA Series B-2øø%% | 3.20 | 7-1-2037 | 5,000,000 | 5,003,625 | ||
Connecticut State HEFA University of Hartford Series N | 5.00 | 7-1-2024 | 120,000 | 120,045 | ||
Connecticut State HEFA University of Hartford Series N | 5.00 | 7-1-2025 | 140,000 | 140,183 | ||
Connecticut State HEFA University of Hartford Series N | 5.00 | 7-1-2028 | 570,000 | 577,270 | ||
Connecticut State Higher Education Supplement Loan Authority Series A AMT | 3.60 | 11-15-2023 | 1,265,000 | 1,266,085 | ||
Connecticut State Higher Education Supplement Loan Authority Series B AMT | 5.00 | 11-15-2024 | 250,000 | 254,062 | ||
The accompanying notes are an integral part of these financial statements.
16 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
Connecticut State Higher Education Supplement Loan Authority Series B AMT | 5.00 % | 11-15-2025 | $ | 400,000 | $410,101 | |
Connecticut State Higher Education Supplement Loan Authority Series B AMT | 5.00 | 11-15-2026 | 585,000 | 608,003 | ||
Connecticut State Higher Education Supplement Loan Authority Series D | 5.00 | 11-15-2025 | 500,000 | 522,563 | ||
8,901,937 | ||||||
GO revenue: 0.46% | ||||||
City of Bridgeport Series C | 5.00 | 2-15-2026 | 1,325,000 | 1,389,233 | ||
City of Danbury%% | 5.00 | 1-24-2024 | 3,000,000 | 3,019,050 | ||
City of Derby BAN | 6.00 | 8-15-2023 | 3,000,000 | 3,007,459 | ||
State of Connecticut Series C | 4.00 | 6-1-2025 | 1,000,000 | 1,018,818 | ||
Town of Hamden Series A (BAM Insured) | 5.00 | 8-1-2026 | 710,000 | 742,853 | ||
9,177,413 | ||||||
Health revenue: 0.64% | ||||||
Connecticut State HEFA Hartford HealthCare Obligated Group Series B-1øø | 5.00 | 7-1-2053 | 11,500,000 | 11,697,418 | ||
Connecticut State HEFA Stamford Hospital Obligated Group Series M | 5.00 | 7-1-2026 | 375,000 | 387,697 | ||
Connecticut State HEFA Stamford Hospital Obligated Group Series M | 5.00 | 7-1-2027 | 250,000 | 261,929 | ||
Connecticut State HEFA Stamford Hospital Obligated Group Series M | 5.00 | 7-1-2028 | 300,000 | 318,729 | ||
12,665,773 | ||||||
Housing revenue: 0.32% | ||||||
Connecticut HFA Series A4 (SIFMA Municipal Swap+0.30%)± | 4.31 | 11-15-2050 | 6,500,000 | 6,487,527 | ||
Tax revenue: 0.25% | ||||||
State of Connecticut Special Tax Revenue Series A | 5.00 | 5-1-2026 | 1,200,000 | 1,265,291 | ||
State of Connecticut Special Tax Revenue Series A | 5.00 | 5-1-2027 | 3,400,000 | 3,662,365 | ||
4,927,656 | ||||||
42,160,306 | ||||||
Delaware: 0.25% | ||||||
Housing revenue: 0.06% | ||||||
Delaware Transportation Authority | 5.00 | 9-1-2023 | 1,250,000 | 1,253,107 | ||
Utilities revenue: 0.19% | ||||||
Delaware State EDA Delmarva Power & Light Co. Series Aøø | 1.05 | 1-1-2031 | 4,000,000 | 3,786,715 | ||
5,039,822 | ||||||
District of Columbia: 0.89% | ||||||
Airport revenue: 0.50% | ||||||
Metropolitan Washington Airports Authority Aviation Revenue Series A AMT | 5.00 | 10-1-2025 | 6,320,000 | 6,495,184 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 17
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Airport revenue (continued) | ||||||
Metropolitan Washington Airports Authority Aviation Revenue Series A AMT | 5.00 % | 10-1-2026 | $ | 1,180,000 | $1,231,165 | |
Metropolitan Washington Airports Authority Aviation Revenue Series A AMT | 5.00 | 10-1-2027 | 1,000,000 | 1,058,084 | ||
Metropolitan Washington Airports Authority Aviation Revenue Series A AMT | 5.00 | 10-1-2028 | 1,000,000 | 1,074,347 | ||
9,858,780 | ||||||
Housing revenue: 0.10% | ||||||
Washington Metropolitan Area Transit Authority Dedicated Revenue Series A | 5.00 | 7-15-2025 | 2,000,000 | 2,075,495 | ||
Water & sewer revenue: 0.29% | ||||||
District of Columbia Water & Sewer Authority Series Cøø | 1.75 | 10-1-2054 | 6,000,000 | 5,830,621 | ||
17,764,896 | ||||||
Florida: 3.83% | ||||||
Airport revenue: 0.61% | ||||||
County of Miami-Dade Aviation Revenue AMT | 5.00 | 10-1-2028 | 10,000,000 | 10,100,248 | ||
Greater Orlando Aviation Authority Series A AMT | 5.00 | 10-1-2025 | 2,000,000 | 2,055,140 | ||
12,155,388 | ||||||
Education revenue: 0.23% | ||||||
Capital Projects Finance Authority CAPFA Capital Corp. 2000F Series A-1 | 5.00 | 10-1-2024 | 500,000 | 503,906 | ||
Capital Projects Finance Authority CAPFA Capital Corp. 2000F Series A-1 | 5.00 | 10-1-2025 | 1,000,000 | 1,014,938 | ||
Capital Projects Finance Authority CAPFA Capital Corp. 2000F Series A-1 | 5.00 | 10-1-2026 | 1,000,000 | 1,025,145 | ||
Florida Higher Educational Facilities Financial Authority Florida Institute of Technology, Inc. | 5.00 | 10-1-2025 | 500,000 | 507,512 | ||
Florida Higher Educational Facilities Financial Authority Florida Institute of Technology, Inc. | 5.00 | 10-1-2026 | 750,000 | 767,975 | ||
Palm Beach County Educational Facilities Authority | 4.00 | 10-1-2027 | 255,000 | 254,182 | ||
Palm Beach County Educational Facilities Authority | 4.00 | 10-1-2028 | 270,000 | 269,657 | ||
Palm Beach County Educational Facilities Authority Palm Beach Atlantic University Obligated Group | 4.00 | 10-1-2026 | 250,000 | 248,797 | ||
4,592,112 | ||||||
Health revenue: 0.21% | ||||||
City of Pompano Beach John Knox Village of Florida, Inc. Obligated Group | 3.25 | 9-1-2023 | 665,000 | 663,353 | ||
Halifax Hospital Medical Center Obligated Group | 5.00 | 6-1-2029 | 1,360,000 | 1,423,258 | ||
Highlands County Health Facilities Authority AdventHealth Obligated Group Series Aø | 4.10 | 11-15-2037 | 1,000,000 | 1,000,000 | ||
St. Johns County IDA Senior Living Vicar’s Landing Project Series A | 4.00 | 12-15-2023 | 115,000 | 114,450 | ||
St. Johns County IDA Senior Living Vicar’s Landing Project Series A | 4.00 | 12-15-2024 | 145,000 | 142,723 | ||
St. Johns County IDA Senior Living Vicar’s Landing Project Series A | 4.00 | 12-15-2025 | 180,000 | 175,137 | ||
St. Johns County IDA Senior Living Vicar’s Landing Project Series A | 4.00 | 12-15-2026 | 185,000 | 177,851 | ||
The accompanying notes are an integral part of these financial statements.
18 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
St. Johns County IDA Senior Living Vicar’s Landing Project Series A | 4.00 % | 12-15-2027 | $ | 215,000 | $204,136 | |
St. Johns County IDA Senior Living Vicar’s Landing Project Series A | 4.00 | 12-15-2028 | 200,000 | 188,379 | ||
4,089,287 | ||||||
Housing revenue: 0.50% | ||||||
Tender Option Bond Trust Receipts/Certificates Series 2022- XF3058 (Mizuho Capital Markets LLC LOC)144Aø | 4.41 | 11-1-2035 | 10,000,000 | 10,000,000 | ||
Miscellaneous revenue: 0.55% | ||||||
School Board of Miami-Dade County COP Series Aøø | 5.00 | 5-1-2031 | 10,115,000 | 10,241,463 | ||
Village Community Development District No. 15144A%% | 4.25 | 5-1-2028 | 700,000 | 701,262 | ||
10,942,725 | ||||||
Resource recovery revenue: 0.23% | ||||||
County of Lee Solid Waste System Revenue AMT | 5.00 | 10-1-2023 | 4,565,000 | 4,572,330 | ||
Tax revenue: 0.30% | ||||||
Leon County School District | 4.00 | 9-1-2026 | 6,000,000 | 6,007,426 | ||
Transportation revenue: 0.26% | ||||||
County of Osceola Transportation Revenue Series A-1 | 5.00 | 10-1-2024 | 300,000 | 304,125 | ||
County of Osceola Transportation Revenue Series A-1 | 5.00 | 10-1-2026 | 735,000 | 765,911 | ||
Miami-Dade County Expressway Authority Series A | 5.00 | 7-1-2028 | 4,000,000 | 4,047,907 | ||
5,117,943 | ||||||
Utilities revenue: 0.04% | ||||||
Orlando Utilities Commission Series Bøø | 1.25 | 10-1-2046 | 1,000,000 | 858,311 | ||
Water & sewer revenue: 0.90% | ||||||
North Sumter County Utility Dependent District (AGM Insured) | 5.00 | 10-1-2027 | 680,000 | 733,955 | ||
North Sumter County Utility Dependent District (AGM Insured) | 5.00 | 10-1-2028 | 1,360,000 | 1,496,710 | ||
Tohopekaliga Water Authority144A | 5.00 | 10-1-2025 | 14,160,000 | 14,788,225 | ||
Wildwood Utility Dependent District South Sumter Utility Project (BAM Insured) | 5.00 | 10-1-2026 | 400,000 | 423,247 | ||
Wildwood Utility Dependent District South Sumter Utility Project (BAM Insured) | 5.00 | 10-1-2027 | 200,000 | 214,714 | ||
Wildwood Utility Dependent District South Sumter Utility Project (BAM Insured) | 5.00 | 10-1-2028 | 250,000 | 274,876 | ||
17,931,727 | ||||||
76,267,249 | ||||||
Georgia: 3.93% | ||||||
Airport revenue: 0.63% | ||||||
City of Atlanta Airport Passenger Facility Charge Series A AMT | 5.00 | 1-1-2029 | 12,430,000 | 12,526,052 | ||
Health revenue: 0.05% | ||||||
Cobb County Kennestone Hospital Authority WellStar Health System Obligated Group Series B | 5.00 | 4-1-2026 | 1,000,000 | 1,041,299 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 19
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Industrial development revenue: 0.26% | ||||||
Savannah EDA International Paper Co. Series Aøø | 2.00 % | 11-1-2033 | $ | 1,000,000 | $976,977 | |
Savannah EDA International Paper Co. Series B | 1.90 | 8-1-2024 | 4,250,000 | 4,101,262 | ||
5,078,239 | ||||||
Utilities revenue: 2.99% | ||||||
Bartow County Development Authority Georgia Power Co.øø | 3.95 | 12-1-2032 | 3,000,000 | 2,992,748 | ||
Development Authority of Burke County Georgia Power Co.øø | 2.88 | 12-1-2049 | 3,500,000 | 3,397,550 | ||
Development Authority of Burke County Georgia Power Co. Series REMK-05øø | 3.80 | 10-1-2032 | 8,500,000 | 8,484,505 | ||
Development Authority of Monroe County Georgia Power Co. Series 1støø | 1.00 | 7-1-2049 | 2,500,000 | 2,219,528 | ||
Development Authority of Monroe County Oglethorpe Power Corp. Series Aøø | 1.50 | 1-1-2039 | 1,500,000 | 1,417,224 | ||
Main Street Natural Gas, Inc. Series A | 4.00 | 12-1-2027 | 4,000,000 | 3,976,218 | ||
Main Street Natural Gas, Inc. Series A | 4.00 | 12-1-2028 | 3,345,000 | 3,319,827 | ||
Main Street Natural Gas, Inc. Series Aøø | 4.00 | 7-1-2052 | 1,000,000 | 996,692 | ||
Main Street Natural Gas, Inc. Series A | 5.00 | 6-1-2028 | 1,500,000 | 1,548,107 | ||
Main Street Natural Gas, Inc. Series Aøø | 5.00 | 6-1-2053 | 3,920,000 | 4,058,611 | ||
Main Street Natural Gas, Inc. Series Bøø | 5.00 | 12-1-2052 | 4,000,000 | 4,126,356 | ||
Main Street Natural Gas, Inc. Series Bøø | 5.00 | 7-1-2053 | 3,000,000 | 3,134,396 | ||
Main Street Natural Gas, Inc. Series C | 4.00 | 12-1-2026 | 1,100,000 | 1,095,562 | ||
Main Street Natural Gas, Inc. Series C | 4.00 | 12-1-2027 | 1,215,000 | 1,207,776 | ||
Main Street Natural Gas, Inc. Series C144Aøø | 4.00 | 8-1-2052 | 8,000,000 | 7,732,354 | ||
Main Street Natural Gas, Inc. Series C (Royal Bank of Canada LIQ)øø | 4.00 | 8-1-2048 | 6,225,000 | 6,226,442 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A | 5.00 | 1-1-2025 | 200,000 | 204,015 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A | 5.00 | 1-1-2026 | 300,000 | 310,629 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A (AGM Insured) | 5.00 | 1-1-2027 | 165,000 | 175,086 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A (AGM Insured) | 5.00 | 7-1-2027 | 300,000 | 321,555 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A (AGM Insured) | 5.00 | 1-1-2028 | 200,000 | 215,971 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A (AGM Insured) | 5.00 | 7-1-2028 | 300,000 | 327,016 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A (AGM Insured) | 5.00 | 7-1-2029 | 600,000 | 663,534 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series B | 5.00 | 1-1-2024 | 400,000 | 402,779 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series B | 5.00 | 1-1-2025 | 1,000,000 | 1,017,893 | ||
59,572,374 | ||||||
78,217,964 | ||||||
Guam: 0.28% | ||||||
Airport revenue: 0.03% | ||||||
Antonio B Won Pat International Airport Authority Series A AMT%% | 5.00 | 10-1-2028 | 540,000 | 547,140 | ||
The accompanying notes are an integral part of these financial statements.
20 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue: 0.08% | ||||||
Territory of Guam Series F | 5.00 % | 1-1-2028 | $ | 500,000 | $517,832 | |
Territory of Guam Series F | 5.00 | 1-1-2029 | 1,000,000 | 1,041,272 | ||
1,559,104 | ||||||
Utilities revenue: 0.17% | ||||||
Guam Power Authority Series A | 5.00 | 10-1-2026 | 3,265,000 | 3,374,230 | ||
5,480,474 | ||||||
Hawaii: 1.01% | ||||||
GO revenue: 0.21% | ||||||
City & County of Honolulu Series A | 5.00 | 11-1-2024 | 1,000,000 | 1,024,866 | ||
City & County of Honolulu Series A | 5.00 | 11-1-2025 | 3,000,000 | 3,135,267 | ||
4,160,133 | ||||||
Housing revenue: 0.23% | ||||||
City & County of Honolulu Komohale Maunakea Venture LP (Department of Housing and Urban Development Insured)øø | 5.00 | 6-1-2027 | 4,500,000 | 4,669,343 | ||
Miscellaneous revenue: 0.42% | ||||||
State of Hawaii Airports System Revenue AMT | 5.25 | 8-1-2025 | 1,945,000 | 1,946,468 | ||
State of Hawaii Airports System Revenue AMT | 5.25 | 8-1-2026 | 6,350,000 | 6,354,743 | ||
8,301,211 | ||||||
Utilities revenue: 0.15% | ||||||
State of Hawaii Department of Budget & Finance Hawaiian Electric Co., Inc. Series A AMT | 3.10 | 5-1-2026 | 3,000,000 | 2,899,424 | ||
20,030,111 | ||||||
Illinois: 9.84% | ||||||
Airport revenue: 0.32% | ||||||
Chicago Midway International Airport Series A AMT | 5.00 | 1-1-2025 | 5,000,000 | 5,029,405 | ||
Chicago O’Hare International Airport Series D AMT | 5.00 | 1-1-2024 | 1,335,000 | 1,342,211 | ||
6,371,616 | ||||||
Education revenue: 0.30% | ||||||
Illinois Finance Authority Benedictine University | 5.00 | 10-1-2027 | 630,000 | 633,491 | ||
Illinois Finance Authority Noble Network of Charter Schools | 5.00 | 9-1-2025 | 680,000 | 679,438 | ||
Illinois State University Series A (AGM Insured) | 5.00 | 4-1-2025 | 700,000 | 718,875 | ||
Illinois State University Series B (AGM Insured) | 5.00 | 4-1-2024 | 415,000 | 419,327 | ||
Southern Illinois University Series A (BAM Insured) | 4.00 | 4-1-2026 | 825,000 | 832,497 | ||
Southern Illinois University Series A (BAM Insured) | 4.00 | 4-1-2027 | 780,000 | 792,071 | ||
Southern Illinois University Series A (BAM Insured) | 5.00 | 4-1-2027 | 400,000 | 420,058 | ||
Southern Illinois University Series A (BAM Insured) | 5.00 | 4-1-2028 | 500,000 | 532,213 | ||
Western Illinois University (BAM Insured) | 4.00 | 4-1-2024 | 1,000,000 | 1,002,627 | ||
6,030,597 | ||||||
GO revenue: 6.31% | ||||||
Boone McHenry & DeKalb Counties Community Unit School District 100 Series B | 4.00 | 1-1-2027 | 4,525,000 | 4,618,609 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 21
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
Boone McHenry & DeKalb Counties Community Unit School District 100 Series B | 4.00 % | 1-1-2028 | $ | 2,100,000 | $2,164,269 | |
Chicago Board of Education Series A (AGM Insured) | 5.00 | 12-1-2023 | 2,000,000 | 2,007,537 | ||
Chicago Board of Education Series A (NPFGC Insured) | 5.50 | 12-1-2026 | 2,250,000 | 2,328,306 | ||
Chicago Board of Education Series B | 5.00 | 12-1-2024 | 2,270,000 | 2,295,506 | ||
Chicago Board of Education Series B | 5.00 | 12-1-2025 | 2,460,000 | 2,519,200 | ||
Chicago Board of Education Series C | 5.00 | 12-1-2024 | 1,900,000 | 1,921,348 | ||
Chicago Board of Education Series D | 5.00 | 12-1-2031 | 4,500,000 | 4,616,122 | ||
Chicago Park District Series D | 5.00 | 1-1-2027 | 3,455,000 | 3,477,930 | ||
City of Chicago Series A | 5.00 | 1-1-2026 | 5,000,000 | 5,173,642 | ||
City of Chicago Series A | 5.00 | 1-1-2027 | 6,380,000 | 6,677,824 | ||
City of Chicago Series A | 5.00 | 1-1-2028 | 3,000,000 | 3,172,646 | ||
City of Chicago Series A | 5.00 | 1-1-2029 | 340,000 | 363,166 | ||
City of Chicago Series A | 5.25 | 1-1-2029 | 1,545,000 | 1,559,991 | ||
City of Chicago Series A | 5.25 | 1-1-2030 | 4,800,000 | 4,846,573 | ||
City of Geneva | 4.00 | 2-1-2027 | 450,000 | 463,213 | ||
City of Geneva | 4.00 | 2-1-2028 | 280,000 | 290,272 | ||
City of Waukegan Series B (AGM Insured) | 4.00 | 12-30-2023 | 500,000 | 501,424 | ||
Community Unit School District No. 427 DeKalb & Kane Counties Illinois Series B (AGM Insured)¤ | 0.00 | 1-1-2025 | 3,235,000 | 3,059,892 | ||
Cook County Township High School District No. 227 Rich Township Series B (BAM Insured) | 4.00 | 12-1-2031 | 2,000,000 | 2,098,723 | ||
County of Cook Series A | 5.00 | 11-15-2025 | 1,200,000 | 1,244,032 | ||
County of Cook Series A | 5.00 | 11-15-2026 | 1,950,000 | 2,056,949 | ||
Grundy Kendall & Will Counties Community High School District No. 111 Minooka | 4.00 | 5-1-2026 | 635,000 | 645,074 | ||
Grundy Kendall & Will Counties Community High School District No. 111 Minooka | 4.00 | 5-1-2027 | 500,000 | 511,126 | ||
Kane Cook & DuPage etc. Counties Community College District No. 509 Elgin Series B | 4.00 | 12-15-2026 | 960,000 | 993,026 | ||
Kane Cook & DuPage etc. Counties Community College District No. 509 Elgin Series B | 4.00 | 12-15-2027 | 795,000 | 833,410 | ||
Kendall Kane & Will Counties Community Unit School District No. 308 Series B | 5.00 | 10-1-2023 | 825,000 | 828,090 | ||
Macon County School District No. 61 Decatur Series C (AGM Insured) | 4.00 | 1-1-2024 | 475,000 | 476,752 | ||
Macon County School District No. 61 Decatur Series C (AGM Insured) | 4.00 | 1-1-2027 | 600,000 | 617,602 | ||
State of Illinois | 5.00 | 11-1-2023 | 2,955,000 | 2,967,288 | ||
State of Illinois | 5.00 | 5-1-2028 | 2,000,000 | 2,023,279 | ||
State of Illinois | 5.00 | 4-1-2029 | 1,470,000 | 1,486,085 | ||
State of Illinois | 5.25 | 7-1-2028 | 4,000,000 | 4,001,046 | ||
State of Illinois | 5.25 | 7-1-2029 | 1,480,000 | 1,480,387 | ||
State of Illinois | 5.50 | 7-1-2026 | 2,500,000 | 2,500,740 | ||
State of Illinois | 5.50 | 7-1-2038 | 13,650,000 | 13,654,038 | ||
State of Illinois Series B | 5.00 | 5-1-2030 | 13,500,000 | 14,941,363 | ||
State of Illinois Series D | 5.00 | 11-1-2023 | 4,095,000 | 4,112,029 | ||
State of Illinois Series D | 5.00 | 11-1-2027 | 9,975,000 | 10,637,639 | ||
Village of Matteson Series A (BAM Insured) | 4.00 | 12-1-2025 | 500,000 | 507,293 | ||
The accompanying notes are an integral part of these financial statements.
22 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
Village of Matteson Series A (BAM Insured) | 4.00 % | 12-1-2027 | $ | 575,000 | $593,312 | |
Village of Matteson Series B (BAM Insured) | 4.00 | 12-1-2025 | 400,000 | 405,280 | ||
Village of Matteson Series C (BAM Insured) | 4.00 | 12-1-2026 | 200,000 | 204,229 | ||
Village of Matteson Series C (BAM Insured) | 4.00 | 12-1-2027 | 300,000 | 309,181 | ||
Whiteside & Lee Counties Community Unit School District No. 5 Sterling Series A (BAM Insured) | 4.00 | 12-1-2024 | 1,490,000 | 1,504,009 | ||
Will County Community School District No. 161 Summit Hill | 4.00 | 1-1-2024 | 2,000,000 | 2,005,736 | ||
125,695,188 | ||||||
Health revenue: 0.67% | ||||||
Illinois Finance Authority | 4.00 | 10-15-2027 | 480,000 | 456,892 | ||
Illinois Finance Authority | 5.00 | 10-1-2026 | 500,000 | 519,042 | ||
Illinois Finance Authority Advocate Aurora Health Obligated Group Series 2008-A-2 | 4.00 | 11-1-2030 | 3,600,000 | 3,632,374 | ||
Illinois Finance Authority OSF Healthcare System Obligated Group Series A | 5.00 | 11-15-2027 | 800,000 | 828,742 | ||
Illinois Finance Authority OSF Healthcare System Obligated Group Series B-2øø | 5.00 | 5-15-2050 | 4,000,000 | 4,145,428 | ||
Illinois Finance Authority Presbyterian Homes Obligated Group Series B (SIFMA Municipal Swap+0.70%)± | 4.71 | 5-1-2042 | 2,250,000 | 2,194,305 | ||
Illinois Finance Authority University of Illinois | 5.00 | 10-1-2025 | 500,000 | 511,913 | ||
Illinois Finance Authority Washington & Jane Smith Community - Orland Park | 4.00 | 10-15-2026 | 465,000 | 448,759 | ||
Southwestern Illinois Development Authority Memorial Group Obligated Group | 6.38 | 11-1-2023 | 535,000 | 539,880 | ||
13,277,335 | ||||||
Housing revenue: 0.95% | ||||||
City of Chicago Heights Olympic Village LLC (FHA Insured)øø | 2.88 | 8-1-2027 | 4,500,000 | 4,364,879 | ||
Illinois Housing Development Authority Series H (GNMA / FNMA / FHLMC Insured)øø | 3.47 | 10-1-2053 | 5,000,000 | 4,986,237 | ||
Illinois Housing Development Authority Marshall Field Preservation LP (FNMA LOC, FNMA LIQ) (SIFMA Municipal Swap+1.00%)± | 5.01 | 5-15-2050 | 7,500,000 | 7,511,548 | ||
Metropolitan Pier & Exposition Authority Series A | 3.00 | 6-15-2025 | 2,000,000 | 1,966,170 | ||
18,828,834 | ||||||
Miscellaneous revenue: 0.01% | ||||||
City of Chicago Special Assessment Revenue Refunding Bonds Lakeshore East Project144A | 3.04 | 12-1-2028 | 241,000 | 224,670 | ||
Tax revenue: 0.61% | ||||||
Huntley Special Service Area No. 6 (BAM Insured) | 2.20 | 3-1-2024 | 409,000 | 404,323 | ||
Sales Tax Securitization Corp. Series A | 5.00 | 1-1-2028 | 5,000,000 | 5,381,880 | ||
State of Illinois Sales Tax Revenue | 5.00 | 6-15-2024 | 585,000 | 585,459 | ||
State of Illinois Sales Tax Revenue Series C | 4.00 | 6-15-2025 | 4,000,000 | 4,039,718 | ||
State of Illinois Sales Tax Revenue Series D | 5.00 | 6-15-2027 | 1,275,000 | 1,325,877 | ||
Village of Hillside Mannheim Redevelopment Project Area | 5.00 | 1-1-2024 | 330,000 | 330,785 | ||
12,068,042 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 23
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Transportation revenue: 0.11% | ||||||
Illinois State Toll Highway Authority Series C | 5.00 % | 1-1-2027 | $ | 2,050,000 | $2,187,197 | |
Utilities revenue: 0.15% | ||||||
City of Springfield Electric Revenue | 5.00 | 3-1-2029 | 3,000,000 | 3,065,211 | ||
Water & sewer revenue: 0.41% | ||||||
Chicago Wastewater Transmission Revenue Series C | 5.00 | 1-1-2030 | 1,500,000 | 1,526,373 | ||
City of Chicago Waterworks Revenue | 5.00 | 11-1-2028 | 2,500,000 | 2,614,839 | ||
City of Chicago Waterworks Revenue (BAM Insured) | 5.00 | 11-1-2030 | 3,500,000 | 3,702,011 | ||
City of Waukegan Water & Sewer System Revenue (AGM Insured) | 5.00 | 12-30-2027 | 280,000 | 302,831 | ||
8,146,054 | ||||||
195,894,744 | ||||||
Indiana: 1.34% | ||||||
Health revenue: 0.61% | ||||||
Indiana Finance Authority BHI Senior Living Obligated Group | 5.00 | 11-15-2023 | 500,000 | 500,904 | ||
Indiana Finance Authority Deaconess Health System Obligated Group Series B (SIFMA Municipal Swap+0.30%)± | 4.31 | 3-1-2039 | 5,545,000 | 5,426,249 | ||
Indiana Finance Authority Franciscan Alliance, Inc. Obligated Group Series B | 5.00 | 11-1-2023 | 1,270,000 | 1,276,835 | ||
Indiana Finance Authority Franciscan Alliance, Inc. Obligated Group Series B | 5.00 | 11-1-2024 | 3,000,000 | 3,066,752 | ||
Indiana Finance Authority Franciscan Alliance, Inc. Obligated Group Series C | 5.00 | 11-1-2023 | 800,000 | 804,305 | ||
Indiana Finance Authority Franciscan Alliance, Inc. Obligated Group Series C | 5.00 | 11-1-2024 | 1,000,000 | 1,022,251 | ||
12,097,296 | ||||||
Housing revenue: 0.12% | ||||||
Mishawaka RDA (BAM Insured) | 5.00 | 2-15-2027 | 1,025,000 | 1,093,908 | ||
Tippecanoe County School Building Corp. Series B | 5.00 | 1-15-2028 | 175,000 | 188,727 | ||
Tippecanoe County School Building Corp. Series B | 5.00 | 7-15-2028 | 225,000 | 244,558 | ||
Tippecanoe County School Building Corp. Series B | 5.00 | 1-15-2029 | 275,000 | 300,931 | ||
Tippecanoe County School Building Corp. Series B | 5.00 | 1-15-2030 | 500,000 | 555,325 | ||
2,383,449 | ||||||
Miscellaneous revenue: 0.48% | ||||||
Indianapolis Local Public Improvement Bond Bank Series A | 5.00 | 6-1-2026 | 3,000,000 | 3,134,809 | ||
Indianapolis Local Public Improvement Bond Bank Series A | 5.00 | 6-1-2027 | 6,000,000 | 6,385,935 | ||
9,520,744 | ||||||
Utilities revenue: 0.13% | ||||||
Indiana Finance Authority Ohio Valley Electric Corp. Series A | 4.25 | 11-1-2030 | 2,630,000 | 2,615,972 | ||
26,617,461 | ||||||
The accompanying notes are an integral part of these financial statements.
24 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Iowa: 0.69% | ||||||
Education revenue: 0.09% | ||||||
Iowa Student Loan Liquidity Corp. Series B AMT | 5.00 % | 12-1-2023 | $ | 700,000 | $703,569 | |
Iowa Student Loan Liquidity Corp. Series B AMT | 5.00 | 12-1-2024 | 1,000,000 | 1,013,389 | ||
1,716,958 | ||||||
GO revenue: 0.09% | ||||||
City of Indianola | 3.00 | 6-1-2027 | 855,000 | 857,277 | ||
City of Indianola | 4.00 | 6-1-2028 | 880,000 | 925,283 | ||
1,782,560 | ||||||
Utilities revenue: 0.51% | ||||||
PEFA, Inc.øø | 5.00 | 9-1-2049 | 10,000,000 | 10,196,097 | ||
13,695,615 | ||||||
Kansas: 0.85% | ||||||
Health revenue: 0.15% | ||||||
City of Topeka Congregational Home Obligated Group Series B | 5.13 | 12-1-2026 | 1,000,000 | 993,947 | ||
City of Wichita Presbyterian Manors Obligated Group | 4.00 | 5-15-2024 | 1,015,000 | 1,000,475 | ||
City of Wichita Presbyterian Manors Obligated Group | 5.00 | 5-15-2025 | 1,055,000 | 1,040,782 | ||
3,035,204 | ||||||
Housing revenue: 0.30% | ||||||
City of Wichita Crestview Residences LLCøø | 3.90 | 12-1-2024 | 5,900,000 | 5,899,373 | ||
Industrial development revenue: 0.40% | ||||||
City of Burlington Evergy Metro, Inc. Series A | 2.95 | 12-1-2023 | 8,000,000 | 7,971,655 | ||
16,906,232 | ||||||
Kentucky: 3.07% | ||||||
Education revenue: 0.07% | ||||||
City of Columbia Lindsey Wilson College, Inc. | 4.00 | 12-1-2027 | 525,000 | 507,100 | ||
City of Columbia Lindsey Wilson College, Inc. | 4.00 | 12-1-2028 | 545,000 | 521,776 | ||
Kentucky Bond Development Corp. Centre College of Kentucky | 4.00 | 6-1-2026 | 210,000 | 212,973 | ||
Kentucky Bond Development Corp. Centre College of Kentucky | 4.00 | 6-1-2028 | 250,000 | 258,232 | ||
1,500,081 | ||||||
Health revenue: 0.21% | ||||||
Louisville/Jefferson County Metropolitan Government Norton Healthcare Obligated Group Series Cøø | 5.00 | 10-1-2047 | 4,000,000 | 4,143,682 | ||
Industrial development revenue: 0.14% | ||||||
County of Boone Duke Energy Kentucky, Inc. Series A | 3.70 | 8-1-2027 | 2,750,000 | 2,701,439 | ||
Miscellaneous revenue: 0.28% | ||||||
Kentucky Interlocal School Transportation Association COP | 4.00 | 3-1-2027 | 1,130,000 | 1,141,097 | ||
Kentucky Interlocal School Transportation Association COP | 4.00 | 3-1-2029 | 1,000,000 | 1,017,032 | ||
Kentucky State University (BAM Insured) | 5.00 | 11-1-2027 | 160,000 | 172,639 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 25
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue (continued) | ||||||
Kentucky State University (BAM Insured) | 5.00 % | 11-1-2028 | $ | 200,000 | $219,934 | |
Rural Water Financing Agency Public Projects Construction Series A | 3.00 | 5-1-2024 | 3,000,000 | 2,974,465 | ||
5,525,167 | ||||||
Resource recovery revenue: 0.25% | ||||||
Kentucky EDFA Republic Services, Inc. Series Bøø | 3.80 | 4-1-2031 | 5,000,000 | 5,000,383 | ||
Utilities revenue: 2.12% | ||||||
County of Trimble Louisville Gas & Electric Co. Series A AMTøø | 1.30 | 9-1-2044 | 6,000,000 | 5,053,712 | ||
Kentucky Public Energy Authority Series A-1øø | 4.00 | 12-1-2049 | 9,500,000 | 9,453,821 | ||
Kentucky Public Energy Authority Series Bøø | 4.00 | 1-1-2049 | 21,085,000 | 21,082,940 | ||
Louisville/Jefferson County Metropolitan Government Louisville Gas & Electric Co. Series B AMT | 1.35 | 11-1-2027 | 7,500,000 | 6,620,599 | ||
42,211,072 | ||||||
61,081,824 | ||||||
Louisiana: 1.52% | ||||||
GO revenue: 0.15% | ||||||
City of Shreveport | 5.00 | 9-1-2027 | 1,420,000 | 1,447,837 | ||
State of Louisiana Series A | 5.00 | 2-1-2027 | 1,570,000 | 1,585,209 | ||
3,033,046 | ||||||
Health revenue: 0.38% | ||||||
Louisiana Public Facilities Authority Series Bøø | 5.00 | 5-15-2050 | 4,000,000 | 4,083,173 | ||
Louisiana Public Facilities Authority Louisiana Children’s Medical Center Obligated Group Series A3øø | 5.00 | 6-1-2045 | 3,250,000 | 3,463,733 | ||
7,546,906 | ||||||
Industrial development revenue: 0.71% | ||||||
Parish of St. John the Baptist Marathon Oil Corp. Series A-2øø | 2.10 | 6-1-2037 | 14,450,000 | 14,171,303 | ||
Miscellaneous revenue: 0.24% | ||||||
Louisiana Local Government Environmental Facilities & CDA East Baton Rouge Sewerage Commission Series Bøø | 0.88 | 2-1-2046 | 5,000,000 | 4,756,307 | ||
Water & sewer revenue: 0.04% | ||||||
East Baton Rouge Sewerage Commission Series Aøø | 1.30 | 2-1-2041 | 1,000,000 | 847,306 | ||
30,354,868 | ||||||
Maine: 0.09% | ||||||
Education revenue: 0.02% | ||||||
Finance Authority of Maine Series 2019-A-1 AMT (AGM Insured) | 5.00 | 12-1-2025 | 425,000 | 435,497 | ||
The accompanying notes are an integral part of these financial statements.
26 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue: 0.07% | ||||||
Maine Health & Higher Educational Facilities Authority Series A | 5.00 % | 7-1-2025 | $ | 810,000 | $833,163 | |
Maine Health & Higher Educational Facilities Authority MaineHealth Obligated Group Series A | 5.00 | 7-1-2026 | 500,000 | 522,105 | ||
1,355,268 | ||||||
1,790,765 | ||||||
Maryland: 1.99% | ||||||
Health revenue: 0.18% | ||||||
Maryland Health & Higher Educational Facilities Authority Doctors Hospital, Inc. Obligated Group Series A | 5.00 | 7-1-2031 | 3,500,000 | 3,644,624 | ||
Housing revenue: 1.50% | ||||||
Maryland Community Development Administration Series C | 3.00 | 4-1-2024 | 5,000,000 | 4,941,532 | ||
Maryland Community Development Administration South Street Senior LLC Series D | 3.15 | 7-1-2024 | 4,000,000 | 3,922,350 | ||
Maryland Community Development Administration Woodside Preservation LP Series A144A | 1.33 | 1-1-2024 | 7,000,000 | 6,868,814 | ||
Maryland Community Development Administration WV3 Housing Associates LP Series G (FHA Insured) | 1.05 | 12-1-2023 | 11,000,000 | 10,822,094 | ||
Tender Option Bond Trust Receipts/Certificates Series 2018- XF0605 (Bank of America NA LIQ)144Aø | 4.06 | 5-1-2047 | 3,300,000 | 3,300,000 | ||
29,854,790 | ||||||
Transportation revenue: 0.31% | ||||||
Maryland Economic Development Corp. Purple Line Transit Partners LLC Series A AMT | 5.00 | 11-12-2028 | 6,000,000 | 6,196,741 | ||
39,696,155 | ||||||
Massachusetts: 0.24% | ||||||
Education revenue: 0.07% | ||||||
Massachusetts Development Finance Agency | 4.00 | 7-1-2028 | 330,000 | 321,979 | ||
Massachusetts Development Finance Agency Lasell University | 4.00 | 7-1-2027 | 250,000 | 244,322 | ||
Massachusetts Development Finance Agency Springfield College Series A | 5.00 | 6-1-2026 | 420,000 | 426,986 | ||
Massachusetts Development Finance Agency Springfield College Series A | 5.00 | 6-1-2027 | 440,000 | 450,903 | ||
1,444,190 | ||||||
Health revenue: 0.17% | ||||||
Massachusetts Development Finance Agency Series C (AGM Insured) | 5.00 | 10-1-2027 | 410,000 | 435,475 | ||
Massachusetts Development Finance Agency Mass General Brigham, Inc. Series T-1 (SIFMA Municipal Swap+0.60%)144A± | 4.61 | 7-1-2049 | 2,600,000 | 2,571,385 | ||
Massachusetts Development Finance Agency Tufts Medicine Obligated Group Series C (AGM Insured) | 5.00 | 10-1-2026 | 300,000 | 313,569 | ||
3,320,429 | ||||||
4,764,619 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 27
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Michigan: 3.05% | ||||||
Education revenue: 0.06% | ||||||
Lake Superior State University (AGM Insured) | 4.00 % | 11-15-2026 | $ | 390,000 | $397,452 | |
Lake Superior State University (AGM Insured) | 4.00 | 11-15-2027 | 405,000 | 416,719 | ||
Lake Superior State University (AGM Insured) | 4.00 | 11-15-2028 | 405,000 | 419,041 | ||
1,233,212 | ||||||
GO revenue: 0.11% | ||||||
Clawson Public Schools (SBLF Insured) | 4.00 | 5-1-2026 | 285,000 | 292,348 | ||
Clawson Public Schools (SBLF Insured) | 4.00 | 5-1-2028 | 300,000 | 314,602 | ||
Kenowa Hills Public Schools Series II (SBLF Insured) | 5.25 | 11-1-2023 | 1,470,000 | 1,479,505 | ||
2,086,455 | ||||||
Health revenue: 1.18% | ||||||
Michigan Finance Authority Bronson Health Care Group Obligated Group Series Cøø | 3.75 | 11-15-2049 | 7,600,000 | 7,642,805 | ||
Michigan Finance Authority Corewell Health Obligated Group Series C (SIFMA Municipal Swap+0.75%)± | 4.76 | 4-15-2047 | 10,500,000 | 10,283,423 | ||
Michigan Finance Authority Trinity Health Corp. Obligated Group Series MI-1ø | 3.50 | 12-1-2034 | 5,000,000 | 5,001,042 | ||
Michigan Strategic Fund Holland Home Obligated Group | 4.00 | 11-15-2024 | 580,000 | 572,954 | ||
23,500,224 | ||||||
Industrial development revenue: 1.05% | ||||||
Michigan Strategic Fund Consumers Energy Co. AMTøø | 1.80 | 10-1-2049 | 19,500,000 | 18,947,450 | ||
Michigan Strategic Fund Graphic Packaging International LLC AMTøø | 4.00 | 10-1-2061 | 2,000,000 | 1,989,097 | ||
20,936,547 | ||||||
Miscellaneous revenue: 0.15% | ||||||
Michigan Finance Authority City of Detroit Income Tax Revenue Series F1 | 3.88 | 10-1-2023 | 3,000,000 | 2,997,211 | ||
Utilities revenue: 0.50% | ||||||
Michigan Strategic Fund DTE Electric Co. Series 2023-XL0443 AMTøø | 3.88 | 6-1-2053 | 10,000,000 | 9,995,991 | ||
60,749,640 | ||||||
Minnesota: 2.15% | ||||||
Airport revenue: 0.06% | ||||||
Minneapolis-St. Paul Metropolitan Airports Commission Series B AMT | 5.00 | 1-1-2025 | 1,100,000 | 1,120,162 | ||
GO revenue: 0.05% | ||||||
Hastings Independent School District No. 200 Series A CAB¤ | 0.00 | 2-1-2024 | 1,015,000 | 995,646 | ||
Health revenue: 0.91% | ||||||
City of Minneapolis Allina Health Obligated Group Series Bøø | 5.00 | 11-15-2053 | 15,500,000 | 17,107,978 | ||
City of Rochester Mayo Clinic Series Bø | 4.10 | 11-15-2038 | 1,000,000 | 1,000,000 | ||
18,107,978 | ||||||
The accompanying notes are an integral part of these financial statements.
28 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue: 0.31% | ||||||
Minnesota Housing Finance Agency Series D (GNMA / FNMA / FHLMC Insured) (SIFMA Municipal Swap+0.43%)± | 4.44 % | 1-1-2045 | $ | 6,165,000 | $6,165,000 | |
Miscellaneous revenue: 0.04% | ||||||
Duluth Independent School District No. 709 COP Series B | 5.00 | 2-1-2024 | 425,000 | 428,827 | ||
Duluth Independent School District No. 709 COP Series B | 5.00 | 2-1-2025 | 375,000 | 384,695 | ||
813,522 | ||||||
Utilities revenue: 0.78% | ||||||
Central Minnesota Municipal Power Agency (AGM Insured) | 5.00 | 1-1-2027 | 400,000 | 426,633 | ||
Central Minnesota Municipal Power Agency (AGM Insured) | 5.00 | 1-1-2028 | 500,000 | 542,985 | ||
Minnesota Municipal Gas Agency Series B (Royal Bank of Canada LIQ) (U.S. SOFR+1.00%)± | 4.39 | 12-1-2052 | 15,000,000 | 14,675,685 | ||
15,645,303 | ||||||
42,847,611 | ||||||
Mississippi: 0.14% | ||||||
Health revenue: 0.13% | ||||||
Mississippi Hospital Equipment & Facilities Authority Baptist Memorial Health Care Obligated Group Series A-1øø | 5.00 | 9-1-2044 | 2,500,000 | 2,581,462 | ||
Industrial development revenue: 0.01% | ||||||
Mississippi Business Finance Corp. Mississippi Power Co. AMTø | 4.25 | 5-1-2028 | 120,000 | 120,000 | ||
2,701,462 | ||||||
Missouri: 1.38% | ||||||
Education revenue: 0.13% | ||||||
HEFA of the State of Missouri Webster University | 5.00 | 4-1-2026 | 2,630,000 | 2,631,909 | ||
GO revenue: 0.27% | ||||||
Liberty Public School District No. 53 | 5.00 | 3-1-2024 | 5,225,000 | 5,289,036 | ||
Housing revenue: 0.78% | ||||||
County of Jackson Series A | 5.00 | 12-1-2026 | 2,985,000 | 3,148,363 | ||
County of Jackson Series A | 5.00 | 12-1-2030 | 2,040,000 | 2,301,199 | ||
Missouri Public Utilities Commission | 4.00 | 12-1-2024 | 10,000,000 | 10,027,254 | ||
15,476,816 | ||||||
Miscellaneous revenue: 0.03% | ||||||
County of Barry COP Law Enforcement Center Project | 5.00 | 10-1-2028 | 610,000 | 647,834 | ||
Utilities revenue: 0.17% | ||||||
Missouri State Environmental Improvement & Energy Resources Authority Evergy Metro, Inc. AMTøø | 3.50 | 5-1-2038 | 3,500,000 | 3,448,401 | ||
27,493,996 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 29
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Montana: 0.17% | ||||||
Health revenue: 0.17% | ||||||
Montana Facility Finance Authority Billings Clinic Obligated Group Series A | 5.00 % | 8-15-2024 | $ | 375,000 | $381,818 | |
Montana Facility Finance Authority Billings Clinic Obligated Group Series A | 5.00 | 8-15-2025 | 325,000 | 337,152 | ||
Montana Facility Finance Authority Billings Clinic Obligated Group Series A | 5.00 | 8-15-2027 | 500,000 | 539,554 | ||
Montana Facility Finance Authority Billings Clinic Obligated Group Series A | 5.00 | 8-15-2028 | 2,015,000 | 2,213,250 | ||
3,471,774 | ||||||
Nebraska: 0.97% | ||||||
Airport revenue: 0.05% | ||||||
Lincoln Airport Authority AMT | 5.00 | 7-1-2028 | 1,000,000 | 1,070,913 | ||
Education revenue: 0.11% | ||||||
County of Douglas Creighton University Series B (SIFMA Municipal Swap+0.53%)± | 4.54 | 7-1-2035 | 2,205,000 | 2,170,510 | ||
Health revenue: 0.17% | ||||||
Douglas County Hospital Authority No. 2 Children’s Hospital Obligated Group Series Bøø | 5.00 | 11-15-2053 | 3,250,000 | 3,333,345 | ||
Utilities revenue: 0.64% | ||||||
Central Plains Energy Project No. 4øø | 5.00 | 3-1-2050 | 7,000,000 | 7,028,971 | ||
Central Plains Energy Project (Royal Bank of Canada LIQ)øø | 4.00 | 12-1-2049 | 5,610,000 | 5,611,352 | ||
12,640,323 | ||||||
19,215,091 | ||||||
Nevada: 0.33% | ||||||
Airport revenue: 0.06% | ||||||
County of Clark Passenger Facility Charge Revenue Series B AMT | 5.00 | 7-1-2023 | 1,255,000 | 1,255,000 | ||
GO revenue: 0.27% | ||||||
Clark County School District Series B (AGM Insured) | 5.00 | 6-15-2027 | 5,000,000 | 5,367,861 | ||
6,622,861 | ||||||
New Jersey: 2.96% | ||||||
Airport revenue: 0.18% | ||||||
New Jersey EDA Port Newark Container Terminal LLC AMT | 5.00 | 10-1-2023 | 1,500,000 | 1,503,220 | ||
New Jersey EDA Port Newark Container Terminal LLC AMT | 5.00 | 10-1-2024 | 2,000,000 | 2,021,643 | ||
3,524,863 | ||||||
GO revenue: 1.61% | ||||||
City of Newark Series D BAN | 4.00 | 9-29-2023 | 1,500,000 | 1,499,880 | ||
City of Trenton BAN | 6.00 | 5-31-2024 | 13,549,000 | 13,814,693 | ||
New Jersey EDA Series GGG144A | 5.25 | 9-1-2023 | 16,000,000 | 16,042,607 | ||
The accompanying notes are an integral part of these financial statements.
30 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
Newark Board of Education (BAM Insured) | 5.00 % | 7-15-2027 | $ | 350,000 | $373,642 | |
Newark Board of Education (BAM Insured) | 5.00 | 7-15-2028 | 350,000 | 378,898 | ||
32,109,720 | ||||||
Housing revenue: 0.65% | ||||||
New Jersey EDA State of New Jersey Department of the Treasury Series DDD | 5.00 | 6-15-2024 | 2,605,000 | 2,643,587 | ||
New Jersey Housing & Mortgage Finance Agency New Jersey Housing & Mortgage Finance Agency Single-Family Home Mortgage Series B AMT | 2.95 | 10-1-2023 | 4,585,000 | 4,572,997 | ||
New Jersey Housing & Mortgage Finance Agency New Jersey Housing & Mortgage Finance Agency Single-Family Home Mortgage Series B AMT | 3.10 | 4-1-2024 | 2,170,000 | 2,153,963 | ||
New Jersey Housing & Mortgage Finance Agency New Jersey Housing & Mortgage Finance Agency Single-Family Home Mortgage Series B AMT | 3.25 | 4-1-2025 | 2,465,000 | 2,430,606 | ||
New Jersey Housing & Mortgage Finance Agency New Jersey Housing & Mortgage Finance Agency Single-Family Home Mortgage Series D AMT | 2.90 | 10-1-2025 | 1,200,000 | 1,170,803 | ||
12,971,956 | ||||||
Miscellaneous revenue: 0.27% | ||||||
New Jersey TTFA Series A | 5.00 | 6-15-2024 | 5,290,000 | 5,367,372 | ||
Water & sewer revenue: 0.25% | ||||||
New Jersey EDA New Jersey-American Water Co., Inc. Series B AMTøø | 3.75 | 11-1-2034 | 5,000,000 | 4,972,092 | ||
58,946,003 | ||||||
New Mexico: 0.50% | ||||||
Industrial development revenue: 0.50% | ||||||
City of Farmington Public Service Co. of New Mexico Series Døø | 3.90 | 6-1-2040 | 10,000,000 | 10,031,841 | ||
New York: 7.69% | ||||||
Airport revenue: 0.79% | ||||||
Albany County Airport Authority Series B AMT | 5.00 | 12-15-2026 | 1,070,000 | 1,113,801 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC AMT | 5.00 | 12-1-2027 | 5,000,000 | 5,237,337 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC Series A AMT | 5.00 | 12-1-2026 | 490,000 | 506,586 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC Series A AMT | 5.00 | 12-1-2027 | 500,000 | 523,734 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC Series A AMT | 5.00 | 12-1-2028 | 500,000 | 529,148 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC Series A AMT | 5.00 | 12-1-2029 | 500,000 | 533,652 | ||
Port Authority of New York & New Jersey AMT | 5.00 | 9-1-2026 | 7,150,000 | 7,247,867 | ||
15,692,125 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 31
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue: 0.28% | ||||||
Hempstead Town Local Development Corp. Academy Charter School Series A | 4.05 % | 2-1-2031 | $ | 1,000,000 | $869,937 | |
Hempstead Town Local Development Corp. Academy Charter School Series B | 4.76 | 2-1-2027 | 1,340,000 | 1,295,975 | ||
New York State Dormitory Authority Iona College Series 2022 | 5.00 | 7-1-2025 | 600,000 | 613,538 | ||
New York State Dormitory Authority Iona College Series 2022 | 5.00 | 7-1-2028 | 825,000 | 872,260 | ||
St. Lawrence County Industrial Development Agency Clarkson University Capital Region Campus Series Bøø | 1.55 | 9-1-2042 | 1,000,000 | 961,386 | ||
St. Lawrence County Industrial Development Agency St. Lawrence University | 5.00 | 7-1-2026 | 400,000 | 420,006 | ||
St. Lawrence County Industrial Development Agency St. Lawrence University | 5.00 | 7-1-2027 | 510,000 | 545,062 | ||
5,578,164 | ||||||
GO revenue: 0.88% | ||||||
City of Long Beach Series A BAN | 4.00 | 2-16-2024 | 2,985,000 | 2,979,473 | ||
City of Long Beach Series A BAN | 5.00 | 2-16-2024 | 4,528,435 | 4,549,460 | ||
City of New York Series J3 (AGM Insured)€øø | 4.84 | 6-1-2036 | 900,000 | 900,000 | ||
City of Poughkeepsie | 4.00 | 4-15-2027 | 480,000 | 474,198 | ||
County of Suffolk Series A (BAM Insured) | 5.00 | 6-15-2028 | 3,215,000 | 3,557,549 | ||
Hermon-DeKalb Central School District BAN | 4.50 | 6-28-2024 | 5,020,000 | 5,054,019 | ||
17,514,699 | ||||||
Health revenue: 0.61% | ||||||
Broome County Local Development Corp. United Health Services Hospitals Obligated Group (AGM Insured) | 5.00 | 4-1-2026 | 500,000 | 519,852 | ||
Broome County Local Development Corp. United Health Services Hospitals Obligated Group (AGM Insured) | 5.00 | 4-1-2027 | 950,000 | 1,000,020 | ||
New York State Dormitory Authority Montefiore Obligated Group Series A | 5.00 | 8-1-2024 | 1,600,000 | 1,606,248 | ||
New York State Dormitory Authority Montefiore Obligated Group Series A | 5.00 | 8-1-2025 | 3,000,000 | 3,005,189 | ||
New York State Dormitory Authority Montefiore Obligated Group Series A | 5.00 | 8-1-2026 | 1,000,000 | 1,001,649 | ||
New York State Dormitory Authority Northwell Health Obligated Group Series B2øø | 5.00 | 5-1-2048 | 4,000,000 | 4,017,134 | ||
Westchester County Local Development Corp. Purchase Senior Learning Community Obligated Group Series D144A | 2.88 | 7-1-2026 | 1,000,000 | 953,436 | ||
12,103,528 | ||||||
Housing revenue: 0.65% | ||||||
New York City Housing Development Corp. Series G-2 AMT | 1.75 | 11-1-2023 | 400,000 | 397,866 | ||
New York City Housing Development Corp. Series G-2 AMT | 1.80 | 5-1-2024 | 400,000 | 394,819 | ||
New York City Housing Development Corp. Series G-2 AMT | 1.85 | 11-1-2024 | 400,000 | 392,228 | ||
New York City Housing Development Corp. Series G-2 AMT | 1.90 | 5-1-2025 | 515,000 | 502,059 | ||
New York City Housing Development Corp. Series G-2 AMT | 1.95 | 11-1-2025 | 520,000 | 504,146 | ||
New York City Housing Development Corp. Series G-2 AMT | 2.00 | 5-1-2026 | 535,000 | 514,239 | ||
New York City Housing Development Corp. New York City Housing Development Corp. Series Aøø | 3.70 | 5-1-2063 | 5,500,000 | 5,500,899 | ||
The accompanying notes are an integral part of these financial statements.
32 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
New York Liberty Development Corp. Series A | 1.20 % | 11-15-2028 | $ | 2,500,000 | $2,136,829 | |
New York State Housing Finance Agency Series J-2 (Department of Housing and Urban Development Insured)øø | 1.10 | 11-1-2061 | 2,500,000 | 2,214,764 | ||
New York State Housing Finance Agency Series K2 (Department of Housing and Urban Development Insured)øø | 1.00 | 11-1-2061 | 500,000 | 454,666 | ||
13,012,515 | ||||||
Industrial development revenue: 1.79% | ||||||
New York Transportation Development Corp. Delta Air Lines, Inc. Series A AMT | 5.00 | 1-1-2024 | 7,205,000 | 7,232,582 | ||
New York Transportation Development Corp. Delta Air Lines, Inc. Series A AMT | 5.00 | 1-1-2025 | 22,925,000 | 23,208,167 | ||
New York Transportation Development Corp. Delta Air Lines, Inc. Series A AMT | 5.00 | 1-1-2028 | 5,000,000 | 5,187,896 | ||
35,628,645 | ||||||
Miscellaneous revenue: 0.97% | ||||||
New York City Industrial Development Agency Queens Ballpark Co. LLC Series A (AGM Insured) | 5.00 | 1-1-2024 | 1,250,000 | 1,259,958 | ||
New York City Industrial Development Agency Queens Ballpark Co. LLC Series A (AGM Insured) | 5.00 | 1-1-2030 | 1,000,000 | 1,109,401 | ||
Triborough Bridge & Tunnel Authority Metropolitan Transportation Authority Payroll Mobility Tax Revenue Series A2øø | 2.00 | 5-15-2045 | 6,000,000 | 5,479,226 | ||
Triborough Bridge & Tunnel Authority Metropolitan Transportation Authority Payroll Mobility Tax Revenue Series B | 5.00 | 5-15-2024 | 1,000,000 | 1,016,299 | ||
Triborough Bridge & Tunnel Authority Metropolitan Transportation Authority Payroll Mobility Tax Revenue Series B | 5.00 | 5-15-2026 | 10,000,000 | 10,561,376 | ||
19,426,260 | ||||||
Transportation revenue: 1.14% | ||||||
Metropolitan Transportation Authority Series A2 | 5.00 | 11-15-2028 | 3,500,000 | 3,640,751 | ||
Metropolitan Transportation Authority Series A2øø | 5.00 | 11-15-2045 | 8,310,000 | 8,948,277 | ||
Metropolitan Transportation Authority Series B | 5.00 | 11-15-2028 | 365,000 | 390,569 | ||
Metropolitan Transportation Authority Series D | 5.00 | 11-15-2026 | 4,475,000 | 4,667,827 | ||
Metropolitan Transportation Authority Series Døø | 5.00 | 11-15-2034 | 5,000,000 | 5,077,395 | ||
22,724,819 | ||||||
Utilities revenue: 0.46% | ||||||
Long Island Power Authority Series Bøø | 1.50 | 9-1-2051 | 3,500,000 | 3,242,025 | ||
Long Island Power Authority Series Bøø | 1.65 | 9-1-2049 | 6,000,000 | 5,854,482 | ||
9,096,507 | ||||||
Water & sewer revenue: 0.12% | ||||||
New York City Municipal Water Finance Authority New York City Water & Sewer System Series DD | 5.00 | 6-15-2026 | 2,225,000 | 2,361,308 | ||
153,138,570 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 33
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
North Carolina: 0.95% | ||||||
Health revenue: 0.17% | ||||||
Charlotte-Mecklenburg Hospital Authority Atrium Health Obligated Group Series Eøø | 0.80 % | 1-15-2048 | $ | 1,500,000 | $1,381,563 | |
North Carolina Medical Care Commission Friends Homes Obligated Group Series B2 | 2.30 | 9-1-2025 | 1,250,000 | 1,185,189 | ||
North Carolina Medical Care Commission Lutheran Services for the Aging, Inc. Obligated Group Series A | 5.00 | 3-1-2026 | 245,000 | 244,022 | ||
North Carolina Medical Care Commission Lutheran Services for the Aging, Inc. Obligated Group Series A | 5.00 | 3-1-2027 | 295,000 | 292,942 | ||
North Carolina Medical Care Commission Lutheran Services for the Aging, Inc. Obligated Group Series A | 5.00 | 3-1-2028 | 305,000 | 301,741 | ||
3,405,457 | ||||||
Housing revenue: 0.23% | ||||||
North Carolina Housing Finance Agency Wind Crest Senior Living LP | 4.50 | 6-1-2024 | 4,500,000 | 4,500,341 | ||
Industrial development revenue: 0.05% | ||||||
Columbus County Industrial Facilities & PCFA International Paper Co. Series Aøø | 2.00 | 11-1-2033 | 1,000,000 | 976,977 | ||
Resource recovery revenue: 0.50% | ||||||
North Carolina Capital Facilities Finance Agency Republic Services, Inc. AMTøø | 4.05 | 6-1-2038 | 10,000,000 | 10,000,589 | ||
18,883,364 | ||||||
North Dakota: 0.27% | ||||||
Health revenue: 0.27% | ||||||
City of Grand Forks Altru Health System Obligated Group | 5.00 | 12-1-2025 | 380,000 | 383,903 | ||
City of Grand Forks Altru Health System Obligated Group | 5.00 | 12-1-2026 | 435,000 | 443,054 | ||
City of Grand Forks Altru Health System Obligated Group | 5.00 | 12-1-2027 | 1,125,000 | 1,156,334 | ||
City of Grand Forks Altru Health System Obligated Group | 5.00 | 12-1-2028 | 1,525,000 | 1,581,434 | ||
City of Grand Forks Altru Health System Obligated Group | 5.00 | 12-1-2030 | 1,635,000 | 1,712,721 | ||
5,277,446 | ||||||
Ohio: 3.44% | ||||||
GO revenue: 0.73% | ||||||
City of Cleveland Series A | 5.00 | 12-1-2026 | 3,610,000 | 3,767,494 | ||
City of Delaware BAN%% | 4.63 | 7-3-2024 | 3,550,000 | 3,573,342 | ||
City of Forest Park | 4.25 | 5-22-2024 | 3,444,000 | 3,462,778 | ||
City of Uhrichsville BAN | 5.25 | 6-6-2024 | 895,000 | 906,750 | ||
City of Wooster | 4.50 | 6-7-2024 | 2,750,000 | 2,772,269 | ||
14,482,633 | ||||||
Health revenue: 0.73% | ||||||
County of Allen Hospital Facilities Revenue Bon Secours Mercy Health, Inc. Series B-1øø | 5.00 | 10-1-2049 | 10,000,000 | 10,558,712 | ||
County of Hamilton UC Health Obligated Group | 5.00 | 9-15-2026 | 655,000 | 659,098 | ||
The accompanying notes are an integral part of these financial statements.
34 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
State of Ohio Premier Health Partners Obligated Group | 5.00 % | 11-15-2025 | $ | 265,000 | $271,151 | |
State of Ohio University Hospitals Health System, Inc. Obligated Group Series Bøø | 5.00 | 1-15-2050 | 2,905,000 | 2,965,324 | ||
14,454,285 | ||||||
Housing revenue: 0.38% | ||||||
Cuyahoga Metropolitan Housing Authority Wade Park LP (FHA Insured)øø | 4.75 | 12-1-2027 | 4,000,000 | 4,062,269 | ||
Ohio Housing Finance Agency Boardwalk Glenville Apartments LP Series A (Department of Housing and Urban Development Insured)øø | 3.50 | 7-1-2025 | 3,550,000 | 3,530,078 | ||
7,592,347 | ||||||
Industrial development revenue: 0.18% | ||||||
Ohio Air Quality Development Authority Ohio Valley Electric Corp. Series A | 2.88 | 2-1-2026 | 3,750,000 | 3,541,714 | ||
Miscellaneous revenue: 0.03% | ||||||
Dayton City School District COP | 3.00 | 12-1-2026 | 180,000 | 178,944 | ||
Dayton City School District COP | 3.00 | 12-1-2027 | 270,000 | 268,362 | ||
Dayton City School District COP | 4.00 | 12-1-2028 | 230,000 | 239,428 | ||
686,734 | ||||||
Resource recovery revenue: 0.83% | ||||||
Ohio Air Quality Development Authority American Electric Power Co., Inc. Series Døø | 1.90 | 5-1-2026 | 12,000,000 | 11,577,744 | ||
State of Ohio Republic Services, Inc.øø | 3.80 | 11-1-2035 | 5,000,000 | 5,000,397 | ||
16,578,141 | ||||||
Tax revenue: 0.29% | ||||||
City of Akron Income Tax Revenue | 4.00 | 12-1-2027 | 3,540,000 | 3,683,492 | ||
City of Akron Income Tax Revenue | 4.00 | 12-1-2028 | 2,000,000 | 2,099,071 | ||
5,782,563 | ||||||
Utilities revenue: 0.27% | ||||||
American Municipal Power, Inc. AMP Fremont Energy Center Revenue Series A | 5.00 | 2-15-2027 | 400,000 | 425,763 | ||
American Municipal Power, Inc. AMP Fremont Energy Center Revenue Series A | 5.00 | 2-15-2029 | 350,000 | 385,251 | ||
American Municipal Power, Inc. Combined Hydroelectric Revenue Series A | 5.00 | 2-15-2025 | 1,200,000 | 1,232,954 | ||
American Municipal Power, Inc. Combined Hydroelectric Revenue Series A | 5.00 | 2-15-2026 | 1,500,000 | 1,565,807 | ||
American Municipal Power, Inc. Combined Hydroelectric Revenue Series A | 5.00 | 2-15-2027 | 1,600,000 | 1,703,050 | ||
5,312,825 | ||||||
68,431,242 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 35
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Oklahoma: 1.81% | ||||||
Health revenue: 0.60% | ||||||
Comanche County Hospital Authority | 5.00 % | 7-1-2025 | $ | 600,000 | $599,200 | |
Comanche County Hospital Authority | 5.00 | 7-1-2027 | 1,800,000 | 1,799,847 | ||
Oklahoma Development Finance Authority INTEGRIS Health Obligated Group Series Cø | 4.31 | 8-15-2031 | 8,450,000 | 8,450,000 | ||
Oklahoma Development Finance Authority OU Medicine Obligated Group Series B | 5.00 | 8-15-2023 | 500,000 | 499,048 | ||
Oklahoma Development Finance Authority OU Medicine Obligated Group Series B | 5.00 | 8-15-2024 | 600,000 | 591,205 | ||
11,939,300 | ||||||
Housing revenue: 1.06% | ||||||
Cleveland County Educational Facilities Authority Cleveland County Independent School District No. 29 Norman Series A | 5.00 | 6-1-2030 | 2,540,000 | 2,793,471 | ||
Kingfisher Special Projects Authority Kingfisher County Independent School District No. 7 Kingfisher | 4.00 | 3-1-2026 | 2,005,000 | 2,039,282 | ||
Mcintosh County Educational Facilities Authority McIntosh County Independent School District No. 19 Checotah | 2.00 | 9-1-2027 | 415,000 | 387,585 | ||
Oklahoma Capitol Improvement Authority Series A | 5.00 | 7-1-2029 | 5,880,000 | 5,962,429 | ||
Oklahoma County Finance Authority Oklahoma County Independent School District No. 9 Jones | 4.00 | 9-1-2025 | 550,000 | 556,818 | ||
Oklahoma County Finance Authority Oklahoma County Independent School District No. 9 Jones | 4.00 | 9-1-2026 | 590,000 | 599,791 | ||
Ottawa County Educational Facilities Authority Ottawa County Independent School District No. 23 Miami | 5.00 | 9-1-2023 | 830,000 | 831,514 | ||
Ottawa County Educational Facilities Authority Ottawa County Independent School District No. 23 Miami | 5.00 | 9-1-2024 | 1,080,000 | 1,096,007 | ||
Ottawa County Educational Facilities Authority Ottawa County Independent School District No. 23 Miami | 5.00 | 9-1-2025 | 930,000 | 954,830 | ||
Tulsa County Industrial Authority Tulsa County Independent School District No. 3 Broken Arrow | 5.00 | 9-1-2025 | 3,000,000 | 3,007,268 | ||
Wagoner County School Development Authority Wagoner County Independent School District No. 19 Wagoner | 4.00 | 9-1-2025 | 1,255,000 | 1,270,817 | ||
Weatherford Industrial Trust Custer County Independent School District No. 26 Weatherford | 5.00 | 3-1-2027 | 1,475,000 | 1,558,277 | ||
21,058,089 | ||||||
Miscellaneous revenue: 0.11% | ||||||
Kay County Public Buildings Authority Sales Tax Revenue | 2.25 | 4-1-2024 | 720,000 | 708,289 | ||
Kay County Public Buildings Authority Sales Tax Revenue | 2.25 | 4-1-2025 | 735,000 | 702,309 | ||
Kay County Public Buildings Authority Sales Tax Revenue | 2.38 | 4-1-2026 | 750,000 | 704,064 | ||
2,114,662 | ||||||
Tax revenue: 0.04% | ||||||
Jackson County Facilities Authority | 4.00 | 10-1-2027 | 810,000 | 832,120 | ||
35,944,171 | ||||||
The accompanying notes are an integral part of these financial statements.
36 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Oregon: 0.16% | ||||||
Airport revenue: 0.06% | ||||||
Port of Portland Airport Revenue Series 2023-XM1101 AMT | 5.00 % | 7-1-2026 | $ | 1,240,000 | $1,282,340 | |
GO revenue: 0.05% | ||||||
Port of Morrow Series A | 4.00 | 6-1-2026 | 345,000 | 350,697 | ||
Port of Morrow Series A | 4.00 | 6-1-2027 | 535,000 | 549,515 | ||
900,212 | ||||||
Health revenue: 0.05% | ||||||
Hospital Facilities Authority of Multnomah County Terwilliger Plaza, Inc. Obligated Group | 0.95 | 6-1-2027 | 1,200,000 | 1,047,782 | ||
3,230,334 | ||||||
Pennsylvania: 8.13% | ||||||
Airport revenue: 0.89% | ||||||
Allegheny County Airport Authority Series A AMT | 5.00 | 1-1-2027 | 2,000,000 | 2,088,592 | ||
Allegheny County Airport Authority Series A AMT | 5.00 | 1-1-2028 | 2,000,000 | 2,111,576 | ||
City of Philadelphia Airport Revenue Series A | 5.00 | 7-1-2026 | 1,160,000 | 1,222,759 | ||
City of Philadelphia Airport Revenue Series A | 5.00 | 7-1-2027 | 1,400,000 | 1,504,404 | ||
City of Philadelphia Airport Revenue Series C AMT | 5.00 | 7-1-2024 | 10,745,000 | 10,875,776 | ||
17,803,107 | ||||||
Education revenue: 2.31% | ||||||
Cumberland County Municipal Authority Messiah Collegeøø | 3.15 | 5-1-2044 | 3,500,000 | 3,478,874 | ||
Huntingdon County General Authority Juniata College Series T | 5.00 | 10-1-2027 | 385,000 | 398,608 | ||
Huntingdon County General Authority Juniata College Series T | 5.00 | 10-1-2028 | 415,000 | 433,496 | ||
Lehigh County General Purpose Authority Lehigh Valley Academy Regional Charter School | 4.00 | 6-1-2025 | 965,000 | 957,353 | ||
Lehigh County General Purpose Authority Lehigh Valley Academy Regional Charter School | 4.00 | 6-1-2026 | 1,005,000 | 994,854 | ||
Lehigh County General Purpose Authority Lehigh Valley Academy Regional Charter School | 4.00 | 6-1-2028 | 1,090,000 | 1,077,654 | ||
Lehigh County General Purpose Authority Muhlenberg College (SIFMA Municipal Swap+0.58%)± | 4.59 | 11-1-2037 | 9,540,000 | 9,529,774 | ||
Pennsylvania Higher Education Assistance Agency Series A | 5.00 | 6-1-2026 | 1,475,000 | 1,523,512 | ||
Pennsylvania Higher Education Assistance Agency Series A | 5.00 | 6-1-2028 | 500,000 | 524,835 | ||
Philadelphia IDA Thomas Jefferson University Obligated Group Series Bø | 4.45 | 9-1-2050 | 27,000,000 | 27,000,000 | ||
45,918,960 | ||||||
GO revenue: 1.29% | ||||||
Albert Gallatin Area School District Series A (AGM Insured) | 4.00 | 9-1-2025 | 1,130,000 | 1,150,459 | ||
Albert Gallatin Area School District Series B (AGM Insured) | 4.00 | 9-1-2025 | 350,000 | 356,337 | ||
Allentown City School District (BAM Insured) | 5.00 | 2-1-2027 | 3,875,000 | 4,087,716 | ||
Borough of Dunmore Series A (AGM Insured) | 2.00 | 9-1-2025 | 220,000 | 209,915 | ||
Borough of Dunmore Series A (AGM Insured) | 2.00 | 9-1-2027 | 200,000 | 184,787 | ||
Borough of Dunmore Series A (AGM Insured) | 2.00 | 9-1-2028 | 220,000 | 200,102 | ||
Butler Area School District (AGM Insured) | 5.00 | 10-1-2023 | 1,280,000 | 1,285,257 | ||
Butler Area School District (AGM Insured) | 5.00 | 10-1-2024 | 2,965,000 | 3,030,318 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 37
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
Butler Area School District (AGM Insured) | 5.00 % | 10-1-2025 | $ | 4,695,000 | $4,880,512 | |
Canon McMillan School District Series B (AGM Insured) | 4.50 | 12-15-2028 | 2,000,000 | 2,013,722 | ||
City of Oil City Series A (AGM Insured) | 4.00 | 12-1-2026 | 200,000 | 206,203 | ||
City of Oil City Series A (AGM Insured) | 4.00 | 12-1-2027 | 195,000 | 202,986 | ||
City of Oil City Series A (AGM Insured) | 4.00 | 12-1-2028 | 200,000 | 209,805 | ||
Coatesville School District (AGM Insured) | 5.00 | 8-1-2023 | 1,000,000 | 1,001,159 | ||
Laurel Highlands School District (BAM Insured) | 4.00 | 2-1-2027 | 1,325,000 | 1,360,229 | ||
School District of Philadelphia Series 2020 | 5.00 | 9-1-2023 | 4,500,000 | 4,508,702 | ||
School District of Philadelphia Series A | 5.00 | 9-1-2024 | 800,000 | 813,221 | ||
25,701,430 | ||||||
Health revenue: 1.55% | ||||||
Allegheny County Hospital Development Authority UPMC Obligated Group (SIFMA Municipal Swap+0.70%)± | 4.71 | 11-15-2047 | 6,000,000 | 5,859,241 | ||
Berks County IDA Tower Health Obligated Group | 5.00 | 11-1-2023 | 1,000,000 | 970,974 | ||
Berks County IDA Tower Health Obligated Group | 5.00 | 11-1-2024 | 1,000,000 | 771,473 | ||
Doylestown Hospital Authority Doylestown Hospital Obligated Group Series A | 5.00 | 7-1-2027 | 2,500,000 | 2,419,013 | ||
Geisinger Authority Geisinger Health System Obligated Group Series Bøø | 5.00 | 4-1-2043 | 10,000,000 | 10,451,687 | ||
General Authority of Southcentral Pennsylvania WellSpan Health Obligated Group Series A | 5.00 | 6-1-2027 | 2,085,000 | 2,114,859 | ||
General Authority of Southcentral Pennsylvania WellSpan Health Obligated Group Series D (Bank of America NA LIQ)ø | 3.85 | 6-1-2037 | 1,000,000 | 1,000,000 | ||
Monroeville Finance Authority UPMC Obligated Group Series C | 5.00 | 5-15-2029 | 440,000 | 482,516 | ||
Monroeville Finance Authority UPMC Obligated Group Series C | 5.00 | 5-15-2030 | 515,000 | 574,419 | ||
Montgomery County Higher Education & Health Authority Thomas Jefferson University Obligated Group Series A | 5.00 | 9-1-2023 | 1,050,000 | 1,051,832 | ||
Montgomery County Higher Education & Health Authority Thomas Jefferson University Obligated Group Series Dø | 4.45 | 9-1-2050 | 3,050,000 | 3,050,000 | ||
Westmoreland County IDA Excela Health Obligated Group Series A | 5.00 | 7-1-2029 | 1,935,000 | 2,013,932 | ||
30,759,946 | ||||||
Housing revenue: 1.23% | ||||||
Pennsylvania EDFA PA Bridges Finco LP | 5.00 | 6-30-2024 | 4,500,000 | 4,532,894 | ||
Pennsylvania Housing Finance Agency Series 125A AMT | 2.38 | 10-1-2025 | 8,625,000 | 8,356,874 | ||
Pennsylvania Housing Finance Agency Series 128A AMT | 4.75 | 4-1-2033 | 3,960,000 | 3,958,841 | ||
Pennsylvania Housing Finance Agency Series 137 | 5.00 | 10-1-2024 | 265,000 | 270,254 | ||
Pennsylvania Housing Finance Agency Series 137 | 5.00 | 10-1-2025 | 220,000 | 227,824 | ||
Pennsylvania Housing Finance Agency Series 137 | 5.00 | 4-1-2026 | 240,000 | 249,848 | ||
Pennsylvania Housing Finance Agency LIH Wilkes-Barre LP (Department of Housing and Urban Development Insured)øø | 1.25 | 2-1-2025 | 7,000,000 | 6,882,729 | ||
24,479,264 | ||||||
Miscellaneous revenue: 0.49% | ||||||
Pennsylvania EDFA Philadelphia Water Department | 3.00 | 1-1-2025 | 505,000 | 497,034 | ||
Pennsylvania EDFA Philadelphia Water Department | 4.00 | 1-1-2026 | 615,000 | 612,968 | ||
RDA of the City of Philadelphia Series A | 5.00 | 4-15-2028 | 2,300,000 | 2,353,876 | ||
The accompanying notes are an integral part of these financial statements.
38 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue (continued) | ||||||
Sports & Exhibition Authority of Pittsburgh & Allegheny County Allegheny Regional Asset District (AGM Insured) | 4.00 % | 2-1-2024 | $ | 1,700,000 | $1,705,285 | |
Sports & Exhibition Authority of Pittsburgh & Allegheny County Allegheny Regional Asset District (AGM Insured) | 5.00 | 2-1-2026 | 2,000,000 | 2,087,703 | ||
State Public School Building Authority Harrisburg School District Series A (AGM Insured) | 5.00 | 12-1-2023 | 2,505,000 | 2,520,978 | ||
9,777,844 | ||||||
Tax revenue: 0.08% | ||||||
Allentown Neighborhood Improvement Zone Development Authority | 5.00 | 5-1-2026 | 500,000 | 512,731 | ||
Allentown Neighborhood Improvement Zone Development Authority | 5.00 | 5-1-2027 | 500,000 | 517,289 | ||
Allentown Neighborhood Improvement Zone Development Authority | 5.00 | 5-1-2028 | 500,000 | 522,276 | ||
1,552,296 | ||||||
Transportation revenue: 0.23% | ||||||
Lancaster City Parking Authority Series A (BAM Insured) | 4.00 | 9-1-2025 | 530,000 | 537,604 | ||
Lancaster City Parking Authority Series A (BAM Insured) | 4.00 | 9-1-2026 | 545,000 | 557,855 | ||
Pennsylvania Turnpike Commission Series B | 5.00 | 12-1-2025 | 300,000 | 313,088 | ||
Pennsylvania Turnpike Commission Series B | 5.00 | 12-1-2026 | 350,000 | 372,641 | ||
Pennsylvania Turnpike Commission Series B (SIFMA Municipal Swap+0.70%)± | 4.36 | 12-1-2023 | 2,880,000 | 2,880,373 | ||
4,661,561 | ||||||
Water & sewer revenue: 0.06% | ||||||
Allegheny County Sanitary Authority Series A | 5.00 | 6-1-2026 | 850,000 | 899,311 | ||
Allegheny County Sanitary Authority Series A | 5.00 | 6-1-2027 | 300,000 | 324,448 | ||
1,223,759 | ||||||
161,878,167 | ||||||
Rhode Island: 0.06% | ||||||
Education revenue: 0.06% | ||||||
Rhode Island Student Loan Authority Series A AMT | 5.00 | 12-1-2023 | 1,175,000 | 1,180,516 | ||
South Carolina: 0.51% | ||||||
GO revenue: 0.18% | ||||||
County of Colleton (BAM Insured) | 4.00 | 7-1-2027 | 3,535,000 | 3,654,550 | ||
Health revenue: 0.05% | ||||||
South Carolina Jobs-EDA Prisma Health Obligated Group Series Cø | 4.48 | 5-1-2048 | 1,000,000 | 1,000,000 | ||
Utilities revenue: 0.28% | ||||||
Piedmont Municipal Power Agency (NPFGC Insured) | 5.38 | 1-1-2025 | 4,580,000 | 4,705,501 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 39
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue (continued) | ||||||
South Carolina Public Service Authority Series C | 5.00 % | 12-1-2026 | $ | 400,000 | $420,047 | |
South Carolina Public Service Authority Series C | 5.00 | 12-1-2027 | 420,000 | 446,944 | ||
5,572,492 | ||||||
10,227,042 | ||||||
Tennessee: 1.95% | ||||||
Airport revenue: 0.23% | ||||||
Metropolitan Nashville Airport Authority Series B AMT | 5.00 | 7-1-2027 | 675,000 | 710,533 | ||
Metropolitan Nashville Airport Authority Series B AMT | 5.00 | 7-1-2028 | 1,000,000 | 1,065,248 | ||
Metropolitan Nashville Airport Authority Series B AMT | 5.00 | 7-1-2029 | 2,675,000 | 2,889,805 | ||
4,665,586 | ||||||
GO revenue: 0.34% | ||||||
Metropolitan Government of Nashville & Davidson County | 5.00 | 7-1-2027 | 6,690,000 | 6,690,000 | ||
Health revenue: 0.13% | ||||||
Greeneville Health & Educational Facilities Board Ballad Health Obligated Group Series A | 5.00 | 7-1-2023 | 1,600,000 | 1,600,000 | ||
Knox County Health Educational & Housing Facility Board University Health System Obligated Group | 5.00 | 4-1-2024 | 1,000,000 | 1,009,258 | ||
2,609,258 | ||||||
Housing revenue: 0.40% | ||||||
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Richland Hills Housing Partners LP (Department of Housing and Urban Development Insured)øø | 1.25 | 12-1-2024 | 8,000,000 | 7,919,755 | ||
Utilities revenue: 0.85% | ||||||
City of Memphis Electric System Revenue Series A | 5.00 | 12-1-2025 | 600,000 | 627,454 | ||
City of Memphis Electric System Revenue Series A | 5.00 | 12-1-2026 | 600,000 | 641,022 | ||
City of Memphis Electric System Revenue Series A | 5.00 | 12-1-2027 | 450,000 | 490,397 | ||
Tennergy Corp. Series A | 5.50 | 12-1-2028 | 1,000,000 | 1,057,476 | ||
Tennergy Corp. Series A | 5.50 | 12-1-2029 | 2,000,000 | 2,123,223 | ||
Tennergy Corp. Series Aøø | 5.50 | 10-1-2053 | 2,500,000 | 2,646,740 | ||
Tennessee Energy Acquisition Corp.øø | 4.00 | 11-1-2049 | 7,500,000 | 7,459,159 | ||
Tennessee Energy Acquisition Corp. Series A | 5.25 | 9-1-2024 | 1,900,000 | 1,924,011 | ||
16,969,482 | ||||||
38,854,081 | ||||||
Texas: 9.71% | ||||||
Airport revenue: 1.12% | ||||||
City of Austin Airport System Revenue AMT | 5.00 | 11-15-2025 | 1,500,000 | 1,543,003 | ||
City of El Paso Airport Revenue AMT | 5.00 | 8-15-2025 | 3,110,000 | 3,178,328 | ||
City of Houston Airport System Revenue Series A%% | 5.00 | 7-1-2028 | 3,000,000 | 3,188,705 | ||
City of Houston Airport System Revenue Series A AMT | 5.00 | 7-1-2026 | 1,000,000 | 1,038,445 | ||
City of Houston Airport System Revenue Series A AMT | 5.00 | 7-1-2027 | 1,000,000 | 1,052,641 | ||
City of Houston Airport System Revenue Series B | 5.00 | 7-1-2026 | 1,500,000 | 1,584,230 | ||
City of Houston Airport System Revenue Series B | 5.00 | 7-1-2027 | 3,000,000 | 3,229,571 | ||
The accompanying notes are an integral part of these financial statements.
40 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Airport revenue (continued) | ||||||
Dallas Fort Worth International Airport Series A | 5.00 % | 11-1-2025 | $ | 1,000,000 | $1,041,887 | |
Dallas Fort Worth International Airport Series B | 5.00 | 11-1-2026 | 2,850,000 | 3,030,889 | ||
Love Field Airport Modernization Corp. AMT | 5.00 | 11-1-2026 | 3,250,000 | 3,376,861 | ||
22,264,560 | ||||||
Education revenue: 0.89% | ||||||
Arlington Higher Education Finance Corp. Harmony Public Schools Series A | 4.00 | 2-15-2027 | 350,000 | 357,153 | ||
Arlington Higher Education Finance Corp. Harmony Public Schools Series A | 4.00 | 2-15-2028 | 290,000 | 298,056 | ||
Clifton Higher Education Finance Corp. Series A | 5.00 | 8-15-2027 | 500,000 | 522,964 | ||
Clifton Higher Education Finance Corp. Series A | 5.00 | 8-15-2028 | 300,000 | 317,376 | ||
Clifton Higher Education Finance Corp. Series D | 5.00 | 8-15-2024 | 3,125,000 | 3,117,829 | ||
Clifton Higher Education Finance Corp. IDEA Public Schools Series A | 5.00 | 8-15-2025 | 360,000 | 367,470 | ||
Clifton Higher Education Finance Corp. International Leadership of Texas, Inc. Series A | 6.00 | 3-1-2029 | 830,000 | 835,009 | ||
Clifton Higher Education Finance Corp. International Leadership of Texas, Inc. Series D | 5.00 | 8-15-2023 | 1,510,000 | 1,509,345 | ||
Odessa Junior College District (AGM Insured) | 4.00 | 7-1-2028 | 400,000 | 418,553 | ||
Tender Option Bond Trust Receipts/Certificates Series 2022-035 (Morgan Stanley Municipal Funding LOC, Morgan Stanley Municipal Funding LIQ)144Aø | 4.41 | 6-15-2056 | 10,000,000 | 10,000,000 | ||
17,743,755 | ||||||
GO revenue: 2.58% | ||||||
Andrews County Hospital District | 5.00 | 3-15-2027 | 1,750,000 | 1,843,880 | ||
City of Port Arthur (BAM Insured) | 5.00 | 2-15-2026 | 290,000 | 303,167 | ||
City of Port Arthur (BAM Insured) | 5.00 | 2-15-2027 | 310,000 | 330,294 | ||
City of Port Arthur (BAM Insured) | 5.00 | 2-15-2028 | 365,000 | 396,188 | ||
Comal Independent School District | 5.00 | 2-1-2025 | 2,790,000 | 2,869,045 | ||
Cypress-Fairbanks Independent School District | 5.00 | 2-15-2029 | 6,530,000 | 6,716,587 | ||
Denton Independent School District Series Bøø | 2.00 | 8-1-2044 | 4,070,000 | 3,995,944 | ||
Eanes Independent School District Series Bøø | 1.75 | 8-1-2039 | 7,465,000 | 7,303,857 | ||
Fort Bend Independent School District Series Bøø | 0.72 | 8-1-2051 | 1,260,000 | 1,117,513 | ||
Leander Independent School District Series A CAB¤ | 0.00 | 8-15-2023 | 1,065,000 | 1,060,779 | ||
North East Independent School Districtøø | 2.20 | 8-1-2049 | 4,800,000 | 4,725,962 | ||
North East Independent School Districtøø%% | 3.60 | 8-1-2052 | 500,000 | 499,805 | ||
Northside Independent School Districtøø | 2.75 | 8-1-2048 | 20,305,000 | 20,283,061 | ||
51,446,082 | ||||||
Health revenue: 1.17% | ||||||
Harris County Cultural Education Facilities Finance Corp. Memorial Hermann Health System Obligated Group Series Bøø | 5.00 | 6-1-2050 | 5,000,000 | 5,404,205 | ||
Harris County Cultural Education Facilities Finance Corp. Memorial Hermann Health System Obligated Group Series C-2 (SIFMA Municipal Swap+0.57%)± | 4.58 | 12-1-2049 | 11,000,000 | 11,017,592 | ||
Tarrant County Cultural Education Facilities Finance Corp. Series A | 5.00 | 11-15-2026 | 1,440,000 | 1,454,872 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 41
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
Tarrant County Cultural Education Facilities Finance Corp. Baylor Scott & White Health Obligated Group Series Eøø | 5.00 % | 11-15-2052 | $ | 4,000,000 | $4,156,115 | |
Tarrant County Cultural Education Facilities Finance Corp. Buckner Retirement Services, Inc. Obligated Group Series A | 5.00 | 11-15-2024 | 1,305,000 | 1,307,970 | ||
23,340,754 | ||||||
Housing revenue: 0.65% | ||||||
City of Dallas Housing Finance Corp. TX Casa View 2018 Ltd.øø | 1.75 | 7-1-2037 | 7,000,000 | 7,000,000 | ||
Housing Synergy PFC Villages at Westlake Apartments LP (Department of Housing and Urban Development Insured)øø | 3.50 | 8-1-2025 | 4,000,000 | 3,977,919 | ||
Travis County Housing Finance Corp. Austin Gateway Apartments LPøø | 4.13 | 6-1-2045 | 2,000,000 | 2,002,761 | ||
12,980,680 | ||||||
Industrial development revenue: 0.44% | ||||||
Harris County Industrial Development Corp. Energy Transfer LPøø | 4.05 | 11-1-2050 | 7,000,000 | 7,041,990 | ||
Port Beaumont Navigation District Jefferson 2020 Bond Lessee & Borrower LLC Obligated Group Series A AMT144A | 1.88 | 1-1-2026 | 800,000 | 728,534 | ||
Port Beaumont Navigation District Jefferson 2020 Bond Lessee & Borrower LLC Obligated Group Series A AMT144A | 2.00 | 1-1-2027 | 525,000 | 461,581 | ||
Port Beaumont Navigation District Jefferson 2020 Bond Lessee & Borrower LLC Obligated Group Series A AMT144A | 2.13 | 1-1-2028 | 575,000 | 489,868 | ||
8,721,973 | ||||||
Miscellaneous revenue: 0.17% | ||||||
Greater Texoma Utility Authority City of Sherman Water & Sewer System Revenue (AGM Insured) | 5.00 | 10-1-2029 | 420,000 | 466,492 | ||
Greater Texoma Utility Authority City of Sherman Water & Sewer System Revenue (AGM Insured) | 5.00 | 10-1-2030 | 1,520,000 | 1,711,644 | ||
Greater Texoma Utility Authority City of Sherman Water & Sewer System Revenue Series A (BAM Insured)%% | 5.00 | 10-1-2029 | 400,000 | 444,170 | ||
Greater Texoma Utility Authority City of Sherman Water & Sewer System Revenue Series A (BAM Insured)%% | 5.00 | 10-1-2030 | 750,000 | 844,366 | ||
3,466,672 | ||||||
Tax revenue: 0.24% | ||||||
Baytown Municipal Development District Baytown Municipal Development District Baytown Convention Center Hotel Revenue Series C | 5.00 | 10-1-2025 | 480,000 | 487,417 | ||
Baytown Municipal Development District Convention Center Hotel Revenue Series C | 5.00 | 10-1-2026 | 510,000 | 521,758 | ||
Baytown Municipal Development District Convention Center Hotel Revenue Series C | 5.00 | 10-1-2027 | 845,000 | 870,554 | ||
Old Spanish Trail-Alemda Corridors Redevelopment Authority | 5.00 | 9-1-2025 | 2,805,000 | 2,897,540 | ||
4,777,269 | ||||||
Transportation revenue: 0.20% | ||||||
Central Texas Turnpike System Series C | 5.00 | 8-15-2029 | 3,840,000 | 3,886,173 | ||
The accompanying notes are an integral part of these financial statements.
42 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue: 1.60% | ||||||
City of San Antonio Electric & Gas Systems Revenueøø | 1.75 % | 2-1-2049 | $ | 11,500,000 | $10,858,372 | |
City of San Antonio Electric & Gas Systems Revenueøø | 3.65 | 2-1-2053 | 5,000,000 | 4,991,949 | ||
Lower Colorado River Authority | 5.00 | 5-15-2027 | 2,000,000 | 2,141,093 | ||
Lower Colorado River Authority (AGM Insured) | 5.00 | 5-15-2027 | 1,385,000 | 1,491,608 | ||
Lower Colorado River Authority (AGM Insured) | 5.00 | 5-15-2028 | 2,285,000 | 2,506,346 | ||
Texas Municipal Gas Acquisition & Supply Corp. II Texas Municipal Gas Acquisition and Supply Corp. II Series B (SIFMA Municipal Swap+0.55%)± | 4.56 | 9-15-2027 | 7,465,000 | 7,373,478 | ||
Texas Municipal Power Agency (AGM Insured) | 3.00 | 9-1-2026 | 950,000 | 931,675 | ||
Texas Municipal Power Agency (AGM Insured) | 3.00 | 9-1-2027 | 1,600,000 | 1,565,548 | ||
31,860,069 | ||||||
Water & sewer revenue: 0.65% | ||||||
City of Houston Combined Utility System Revenue Series B-3 (Sumitomo Mitsui Banking Corp. LOC)ø | 3.75 | 5-15-2034 | 550,000 | 550,000 | ||
San Antonio Water System Series Aøø | 2.63 | 5-1-2049 | 12,490,000 | 12,375,055 | ||
12,925,055 | ||||||
193,413,042 | ||||||
Utah: 0.46% | ||||||
Airport revenue: 0.45% | ||||||
City of Salt Lake City Airport Revenue Series A AMT | 5.00 | 7-1-2023 | 3,150,000 | 3,150,000 | ||
City of Salt Lake City Airport Revenue Series A AMT | 5.00 | 7-1-2024 | 2,000,000 | 2,021,820 | ||
City of Salt Lake City Airport Revenue Series A AMT | 5.00 | 7-1-2025 | 3,600,000 | 3,687,474 | ||
8,859,294 | ||||||
Miscellaneous revenue: 0.01% | ||||||
Utah Infrastructure Agency | 3.00 | 10-15-2026 | 310,000 | 296,203 | ||
9,155,497 | ||||||
Virginia: 1.69% | ||||||
Airport revenue: 0.08% | ||||||
Virginia Port Authority Series B AMT | 5.00 | 7-1-2029 | 1,500,000 | 1,557,623 | ||
Education revenue: 0.05% | ||||||
Virginia College Building Authority Regent University | 5.00 | 6-1-2026 | 300,000 | 305,564 | ||
Virginia College Building Authority Regent University | 5.00 | 6-1-2027 | 275,000 | 282,611 | ||
Virginia College Building Authority Regent University | 5.00 | 6-1-2028 | 300,000 | 310,965 | ||
899,140 | ||||||
Housing revenue: 0.31% | ||||||
Arlington County IDA Park Shirlington Preservation LP Series A | 5.00 | 1-1-2026 | 6,000,000 | 6,189,451 | ||
Tax revenue: 0.04% | ||||||
Marquis CDA of York County Virginia CAB144A | 7.50 | 9-1-2045 | 680,000 | 204,000 | ||
Marquis CDA of York County Virginia Series A | 5.10 | 9-1-2036 | 2,169,000 | 650,700 | ||
Marquis CDA of York County Virginia Series C CAB¤ | 0.00 | 9-1-2041 | 3,493,000 | 8,732 | ||
863,432 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 43
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Transportation revenue: 0.71% | ||||||
Chesapeake Bay Bridge & Tunnel District BAN | 5.00 % | 11-1-2023 | $ | 14,115,000 | $14,168,633 | |
Utilities revenue: 0.50% | ||||||
Louisa IDA Virginia Electric & Power Co. Series Aøø | 3.65 | 11-1-2035 | 10,000,000 | 9,960,009 | ||
33,638,288 | ||||||
Washington: 2.46% | ||||||
GO revenue: 0.48% | ||||||
State of Washington | 5.00 | 6-1-2025 | 1,000,000 | 1,037,191 | ||
State of Washington | 5.00 | 6-1-2026 | 1,570,000 | 1,661,531 | ||
State of Washington Series R | 5.00 | 7-1-2024 | 4,465,000 | 4,549,849 | ||
Tacoma Metropolitan Park District | 5.00 | 12-1-2026 | 2,250,000 | 2,326,161 | ||
9,574,732 | ||||||
Health revenue: 0.68% | ||||||
Skagit County Public Hospital District No. 1 | 5.00 | 12-1-2028 | 2,000,000 | 2,058,119 | ||
Washington Health Care Facilities Authority CommonSpirit Health Obligated Group Series B1øø | 5.00 | 8-1-2049 | 2,500,000 | 2,516,428 | ||
Washington Health Care Facilities Authority CommonSpirit Health Obligated Group Series B2øø | 5.00 | 8-1-2049 | 2,430,000 | 2,479,338 | ||
Washington Health Care Facilities Authority CommonSpirit Health Obligated Group Series B3øø | 5.00 | 8-1-2049 | 4,125,000 | 4,251,301 | ||
Washington Health Care Facilities Authority Fred Hutchinson Cancer Center Obligated Group144A | 5.00 | 12-1-2025 | 275,000 | 283,642 | ||
Washington Health Care Facilities Authority Fred Hutchinson Cancer Center Obligated Group144A | 5.00 | 12-1-2026 | 285,000 | 297,790 | ||
Washington State Housing Finance Commission Eliseo Obligated Group Series B-2144A | 2.13 | 7-1-2027 | 1,250,000 | 1,126,109 | ||
Washington State Housing Finance Commission Spokane United Methodist Homes Obligated Group Series B2144A | 3.00 | 7-1-2027 | 535,000 | 535,000 | ||
13,547,727 | ||||||
Housing revenue: 0.13% | ||||||
FYI Properties State of Washington Consolidated Technology Services | 5.00 | 6-1-2027 | 1,000,000 | 1,074,585 | ||
King County Housing Authority | 4.00 | 10-1-2027 | 300,000 | 306,064 | ||
Snohomish County Housing Authority | 5.00 | 4-1-2025 | 500,000 | 512,631 | ||
Snohomish County Housing Authority | 5.00 | 4-1-2026 | 730,000 | 759,954 | ||
2,653,234 | ||||||
Utilities revenue: 1.17% | ||||||
City of Seattle Municipal Light & Power Revenue Series C1 (SIFMA Municipal Swap+0.49%)± | 4.50 | 11-1-2046 | 23,190,000 | 23,193,142 | ||
48,968,835 | ||||||
West Virginia: 0.30% | ||||||
GO revenue: 0.05% | ||||||
Berkeley County Board of Education | 2.00 | 5-1-2024 | 1,000,000 | 986,585 | ||
The accompanying notes are an integral part of these financial statements.
44 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Resource recovery revenue: 0.25% | ||||||
West Virginia EDA Kentucky Power Co. Series A AMTøø | 4.70 % | 4-1-2036 | $ | 5,000,000 | $5,010,793 | |
5,997,378 | ||||||
Wisconsin: 3.80% | ||||||
GO revenue: 0.04% | ||||||
Monroe School District (AGM Insured) | 5.00 | 3-1-2030 | 675,000 | 751,927 | ||
Health revenue: 3.03% | ||||||
PFA Samaritan Housing Foundation Obligated Group Series B2144A | 2.25 | 6-1-2027 | 1,845,000 | 1,712,198 | ||
PFA Texas Biomedical Research Institute Series A | 5.00 | 6-1-2027 | 200,000 | 209,199 | ||
PFA Texas Biomedical Research Institute Series A | 5.00 | 6-1-2028 | 225,000 | 238,133 | ||
Wisconsin HEFA Advocate Aurora Health Obligated Group Series B-3øø | 5.00 | 8-15-2054 | 2,000,000 | 2,016,764 | ||
Wisconsin HEFA Advocate Aurora Health Obligated Group Series B-4øø | 5.00 | 8-15-2054 | 1,450,000 | 1,482,667 | ||
Wisconsin HEFA Advocate Aurora Health Obligated Group Series C-3øø | 5.00 | 8-15-2054 | 1,250,000 | 1,307,346 | ||
Wisconsin HEFA Advocate Aurora Health Obligated Group Series C-4 (SIFMA Municipal Swap+0.65%)± | 4.66 | 8-15-2054 | 4,200,000 | 4,200,608 | ||
Wisconsin HEFA Ascension Health Credit Groupøø | 5.00 | 11-15-2033 | 11,290,000 | 11,497,799 | ||
Wisconsin HEFA Beloit Health System Obligated Group | 5.00 | 7-1-2025 | 1,000,000 | 1,022,564 | ||
Wisconsin HEFA Beloit Health System Obligated Group | 5.00 | 7-1-2026 | 1,060,000 | 1,099,230 | ||
Wisconsin HEFA Marshfield Clinic Health System Obligated Group Series Aø | 5.30 | 2-15-2053 | 2,000,000 | 2,000,000 | ||
Wisconsin HEFA Marshfield Clinic Health System Obligated Group Series B1ø�� | 5.00 | 2-15-2052 | 12,000,000 | 12,130,390 | ||
Wisconsin HEFA Marshfield Clinic Health System Obligated Group Series B2øø | 5.00 | 2-15-2051 | 18,300,000 | 18,816,115 | ||
Wisconsin HEFA St. Camillus Health System Obligated Group Series A | 5.00 | 11-1-2024 | 155,000 | 153,199 | ||
Wisconsin HEFA St. Camillus Health System Obligated Group Series A | 5.00 | 11-1-2025 | 245,000 | 239,896 | ||
Wisconsin HEFA St. Camillus Health System Obligated Group Series A | 5.00 | 11-1-2026 | 355,000 | 344,212 | ||
Wisconsin HEFA St. John’s Communities, Inc. Obligated Group | 4.00 | 9-15-2026 | 795,000 | 777,705 | ||
Wisconsin HEFA St. John’s Communities, Inc. Obligated Group | 4.00 | 9-15-2028 | 860,000 | 827,120 | ||
Wisconsin HEFA St. John’s Communities, Inc. Obligated Group Series B | 4.00 | 9-15-2027 | 140,000 | 135,834 | ||
Wisconsin HEFA St. John’s Communities, Inc. Obligated Group Series B | 4.00 | 9-15-2028 | 195,000 | 187,545 | ||
60,398,524 | ||||||
Miscellaneous revenue: 0.33% | ||||||
PMA Levy & Aid Anticipation Notes Program Series A | 4.00 | 9-27-2023 | 3,000,000 | 3,000,940 | ||
PMA Levy & Aid Anticipation Notes Program Series B | 4.00 | 9-27-2023 | 3,500,000 | 3,501,082 | ||
6,502,022 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 45
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue: 0.18% | ||||||
Southeast Wisconsin Professional Baseball Park District Series A (NPFGC Insured) | 5.50 % | 12-15-2026 | $ | 3,360,000 | $3,529,187 | |
Utilities revenue: 0.15% | ||||||
PFA Duke Energy Progress LLC Series A-1øø | 3.30 | 10-1-2046 | 3,000,000 | 2,982,698 | ||
Water & sewer revenue: 0.07% | ||||||
Town of Clayton Water & Sewer System Revenue Series C BAN | 2.00 | 6-1-2026 | 1,600,000 | 1,500,845 | ||
75,665,203 | ||||||
Wyoming: 0.18% | ||||||
Health revenue: 0.18% | ||||||
Sublette County Hospital District Series A%% | 5.00 | 6-15-2026 | 3,500,000 | 3,500,181 | ||
Total municipal obligations (Cost $2,024,922,528) | 1,978,159,160 | |||||
Yield | ||||||
Short-term investments: 1.30% | ||||||
Commercial paper: 1.03% | ||||||
County of Mercer | 3.45 | 6-6-2024 | 5,000,000 | 4,999,582 | ||
County of Mercer | 3.50 | 7-12-2023 | 2,850,000 | 2,849,376 | ||
County of Mercer | 3.50 | 8-3-2023 | 12,650,000 | 12,645,795 | ||
Total commercial paper (Cost $20,499,996) | 20,494,753 | |||||
Shares | ||||||
Investment companies: 0.27% | ||||||
Allspring Municipal Cash Management Money Market Fund Institutional Class♠∞## | 4.07 | 5,497,677 | 5,498,777 | |||
Total short-term investments (Cost $25,998,773) | 25,993,530 | |||||
Total investments in securities (Cost $2,057,921,301) | 101.01 % | 2,011,152,690 | ||||
Other assets and liabilities, net | (1.01 ) | (20,137,234 ) | ||||
Total net assets | 100.00 % | $1,991,015,456 | ||||
144A | The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
± | Variable rate investment. The rate shown is the rate in effect at period end. |
## | All or a portion of this security is segregated for when-issued securities. |
%% | The security is purchased on a when-issued basis. |
¤ | The security is issued in zero coupon form with no periodic interest payments. |
€ | The security is an auction-rate security which has an interest rate that resets at predetermined short-term intervals through a Dutch auction. 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. |
The accompanying notes are an integral part of these financial statements.
46 | Allspring Short-Term Municipal Bond Fund
Portfolio of investments—June 30, 2023
Abbreviations: | |
AGM | Assured Guaranty Municipal |
AMT | Alternative minimum tax |
BAM | Build America Mutual Assurance Company |
BAN | Bond anticipation note |
CAB | Capital appreciation bond |
CDA | Community Development Authority |
COP | Certificate of participation |
EDA | Economic Development Authority |
EDFA | Economic Development Finance Authority |
FHA | Federal Housing Administration |
FHLMC | Federal Home Loan Mortgage Corporation |
FNMA | Federal National Mortgage Association |
GNMA | Government National Mortgage Association |
GO | General obligation |
HEFA | Health & Educational Facilities Authority |
HFA | Housing Finance Authority |
IDA | Industrial Development Authority |
LIBOR | London Interbank Offered Rate |
LIQ | Liquidity agreement |
LOC | Letter of credit |
NPFGC | National Public Finance Guarantee Corporation |
PCFA | Pollution Control Financing Authority |
PFA | Public Finance Authority |
RDA | Redevelopment Authority |
SBLF | Small Business Lending Fund |
SIFMA | Securities Industry and Financial Markets Association |
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 Municipal Cash Management Money Market Fund Institutional Class | $4,264,311 | $884,428,214 | $(883,185,636 ) | $(8,013 ) | $(99 ) | $5,498,777 | 5,497,677 | $629,908 |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 47
Statement of assets and liabilities—June 30, 2023
Financial statements
Statement of assets and liabilities
Assets | |
Investments in unaffiliated securities, at value (cost $2,052,422,524) | $2,005,653,913 |
Investments in affiliated securities, at value (cost $5,498,777) | 5,498,777 |
Cash | 263,352 |
Receivable for interest | 19,540,168 |
Receivable for Fund shares sold | 1,676,681 |
Receivable for investments sold | 405,000 |
Prepaid expenses and other assets | 2,711 |
Total assets | 2,033,040,602 |
Liabilities | |
Payable for when-issued transactions | 21,783,556 |
Payable for investments purchased | 15,011,706 |
Payable for Fund shares redeemed | 3,540,346 |
Dividends payable | 625,368 |
Management fee payable | 440,033 |
Administration fees payable | 163,848 |
Distribution fee payable | 3,193 |
Trustees’ fees and expenses payable | 273 |
Accrued expenses and other liabilities | 456,823 |
Total liabilities | 42,025,146 |
Total net assets | $1,991,015,456 |
Net assets consist of | |
Paid-in capital | $2,099,066,504 |
Total distributable loss | (108,051,048 ) |
Total net assets | $1,991,015,456 |
The accompanying notes are an integral part of these financial statements.
48 | Allspring Short-Term Municipal Bond Fund
Statement of assets and liabilities—June 30, 2023
Computation of net asset value and offering price per share | |
Net assets–Class A | $397,949,391 |
Shares outstanding–Class A1 | 41,821,952 |
Net asset value per share–Class A | $9.52 |
Maximum offering price per share – Class A2 | $9.71 |
Net assets–Class C | $4,730,902 |
Shares outstanding–Class C1 | 497,164 |
Net asset value per share–Class C | $9.52 |
Net assets–Class R6 | $179,524,093 |
Shares outstanding–Class R61 | 18,830,833 |
Net asset value per share–Class R6 | $9.53 |
Net assets–Administrator Class | $2,712,220 |
Shares outstanding–Administrator Class1 | 285,165 |
Net asset value per share–Administrator Class | $9.51 |
Net assets–Institutional Class | $1,406,098,850 |
Shares outstanding–Institutional Class1 | 147,512,327 |
Net asset value per share–Institutional Class | $9.53 |
1 | The Fund has an unlimited number of authorized shares. |
2 | Maximum offering price is computed as 100/98 of net asset value. On investments of $100,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 49
Statement of operations—year ended June 30, 2023
Statement of operations
Investment income | |
Interest | $42,506,839 |
Income from affiliated securities | 629,908 |
Total investment income | 43,136,747 |
Expenses | |
Management fee | 6,223,086 |
Administration fees | |
Class A | 730,724 |
Class C | 7,944 |
Class R6 | 69,431 |
Administrator Class | 4,491 |
Institutional Class | 911,718 |
Shareholder servicing fees | |
Class A | 1,138,842 |
Class C | 12,407 |
Administrator Class | 11,044 |
Distribution fee | |
Class C | 37,219 |
Custody and accounting fees | 79,044 |
Professional fees | 93,105 |
Registration fees | 77,009 |
Shareholder report expenses | 378 |
Trustees’ fees and expenses | 22,973 |
Other fees and expenses | 35,708 |
Total expenses | 9,455,123 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (557,767 ) |
Class A | (481,449 ) |
Class C | (5,202 ) |
Administrator Class | (3,155 ) |
Institutional Class | (69,567 ) |
Net expenses | 8,337,983 |
Net investment income | 34,798,764 |
Realized and unrealized gains (losses) on investments | |
Net realized losses on | |
Unaffiliated securities | (1,332,452 ) |
Affiliated securities | (8,013 ) |
Net realized losses on investments | (1,340,465 ) |
Net change in unrealized gains (losses) on | |
Unaffiliated securities | (4,775,147 ) |
Affiliated securities | (99 ) |
Net change in unrealized gains (losses) on investments | (4,775,246 ) |
Net realized and unrealized gains (losses) on investments | (6,115,711 ) |
Net increase in net assets resulting from operations | $28,683,053 |
The accompanying notes are an integral part of these financial statements.
50 | Allspring Short-Term Municipal Bond Fund
Statement of changes in net assets
Statement of changes in net assets
Year ended June 30, 2023 | Year ended June 30, 2022 | |||
Operations | ||||
Net investment income | $34,798,764 | $29,640,200 | ||
Net realized losses on investments | (1,340,465 ) | (6,806,537 ) | ||
Net change in unrealized gains (losses) on investments | (4,775,246 ) | (94,969,202 ) | ||
Net increase (decrease) in net assets resulting from operations | 28,683,053 | (72,135,539 ) | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class A | (7,804,675 ) | (6,448,479 ) | ||
Class C | (48,499 ) | (16,609 ) | ||
Class R6 | (4,538,078 ) | (5,926,588 ) | ||
Administrator Class | (76,328 ) | (101,255 ) | ||
Institutional Class | (22,364,997 ) | (17,109,887 ) | ||
Total distributions to shareholders | (34,832,577 ) | (29,602,818 ) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class A | 3,906,304 | 37,153,356 | 5,411,821 | 53,085,084 |
Class C | 241,988 | 2,293,649 | 93,167 | 892,311 |
Class R6 | 4,772,973 | 45,439,559 | 22,206,656 | 219,388,068 |
Administrator Class | 116,504 | 1,097,402 | 16,337 | 160,666 |
Institutional Class | 103,653,771 | 986,549,992 | 60,814,199 | 595,839,440 |
1,072,533,958 | 869,365,569 | |||
Reinvestment of distributions | ||||
Class A | 778,004 | 7,387,576 | 634,297 | 6,198,439 |
Class C | 4,992 | 47,413 | 1,676 | 16,314 |
Class R6 | 234,616 | 2,233,086 | 248,231 | 2,427,229 |
Administrator Class | 6,545 | 62,132 | 9,270 | 90,839 |
Institutional Class | 2,125,586 | 20,222,065 | 1,635,626 | 16,004,191 |
29,952,272 | 24,737,012 | |||
Payment for shares redeemed | ||||
Class A | (17,630,552 ) | (167,372,223 ) | (20,151,656 ) | (197,188,295 ) |
Class C | (279,885 ) | (2,653,079 ) | (264,125 ) | (2,599,228 ) |
Class R6 | (22,378,170 ) | (213,390,782 ) | (30,322,260 ) | (296,291,525 ) |
Administrator Class | (505,896 ) | (4,831,557 ) | (653,324 ) | (6,439,085 ) |
Institutional Class | (79,106,656 ) | (752,337,010 ) | (81,039,965 ) | (790,136,658 ) |
(1,140,584,651 ) | (1,292,654,791 ) | |||
Net decrease in net assets resulting from capital share transactions | (38,098,421 ) | (398,552,210 ) | ||
Total decrease in net assets | (44,247,945 ) | (500,290,567 ) | ||
Net assets | ||||
Beginning of period | 2,035,263,401 | 2,535,553,968 | ||
End of period | $1,991,015,456 | $2,035,263,401 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 51
Financial highlights
Financial highlights
(For a share outstanding throughout each period)
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class A | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.54 | $9.95 | $9.92 | $9.92 | $9.83 |
Net investment income | 0.16 1 | 0.10 | 0.12 | 0.15 | 0.15 1 |
Net realized and unrealized gains (losses) on investments | (0.01 ) | (0.41 ) | 0.03 | (0.01 ) | 0.10 |
Total from investment operations | 0.15 | (0.31 ) | 0.15 | 0.14 | 0.25 |
Distributions to shareholders from | |||||
Net investment income | (0.17 ) | (0.10 ) | (0.12 ) | (0.14 ) | (0.16 ) |
Tax basis return of capital | 0.00 | 0.00 | 0.00 | 0.00 | (0.00 )2 |
Total distributions to shareholders | (0.17 ) | (0.10 ) | (0.12 ) | (0.14 ) | (0.16 ) |
Net asset value, end of period | $9.52 | $9.54 | $9.95 | $9.92 | $9.92 |
Total return3 | 1.53 % | (3.09 )% | 1.52 % | 1.47 % | 2.57 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.76 % | 0.76 % | 0.77 % | 0.76 % | 0.76 % |
Net expenses | 0.63 % | 0.63 % | 0.63 % | 0.63 % | 0.63 % |
Net investment income | 1.71 % | 1.05 % | 1.20 % | 1.52 % | 1.59 % |
Supplemental data | |||||
Portfolio turnover rate | 30 % | 28 % | 20 % | 35 % | 33 % |
Net assets, end of period (000s omitted) | $397,949 | $522,582 | $685,618 | $743,254 | $991,514 |
1 | Calculated based upon average shares outstanding |
2 | Amount is less than $0.005. |
3 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
52 | Allspring Short-Term Municipal Bond Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class C | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.54 | $9.95 | $9.92 | $9.92 | $9.83 |
Net investment income | 0.09 1 | 0.03 | 0.05 | 0.08 | 0.08 |
Net realized and unrealized gains (losses) on investments | (0.02 ) | (0.41 ) | 0.03 | (0.01 ) | 0.10 |
Total from investment operations | 0.07 | (0.38 ) | 0.08 | 0.07 | 0.18 |
Distributions to shareholders from | |||||
Net investment income | (0.09 ) | (0.03 ) | (0.05 ) | (0.07 ) | (0.09 ) |
Tax basis return of capital | 0.00 | 0.00 | 0.00 | 0.00 | (0.00 )2 |
Total distributions to shareholders | (0.09 ) | (0.03 ) | (0.05 ) | (0.07 ) | (0.09 ) |
Net asset value, end of period | $9.52 | $9.54 | $9.95 | $9.92 | $9.92 |
Total return3 | 0.77 % | (3.82 )% | 0.76 % | 0.71 % | 1.81 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.51 % | 1.51 % | 1.51 % | 1.50 % | 1.51 % |
Net expenses | 1.38 % | 1.38 % | 1.38 % | 1.38 % | 1.38 % |
Net investment income | 0.97 % | 0.30 % | 0.45 % | 0.77 % | 0.84 % |
Supplemental data | |||||
Portfolio turnover rate | 30 % | 28 % | 20 % | 35 % | 33 % |
Net assets, end of period (000s omitted) | $4,731 | $5,058 | $6,962 | $16,870 | $34,381 |
1 | Calculated based upon average shares outstanding |
2 | Amount is less than $0.005. |
3 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 53
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class R6 | 2023 | 2022 | 2021 | 2020 | 20191 |
Net asset value, beginning of period | $9.56 | $9.97 | $9.94 | $9.94 | $9.86 |
Net investment income | 0.19 2 | 0.13 | 0.15 | 0.18 | 0.17 |
Net realized and unrealized gains (losses) on investments | (0.03 ) | (0.41 ) | 0.03 | (0.01 ) | 0.08 |
Total from investment operations | 0.16 | (0.28 ) | 0.18 | 0.17 | 0.25 |
Distributions to shareholders from | |||||
Net investment income | (0.19 ) | (0.13 ) | (0.15 ) | (0.17 ) | (0.17 ) |
Tax basis return of capital | 0.00 | 0.00 | 0.00 | 0.00 | (0.00 )3 |
Total distributions to shareholders | (0.19 ) | (0.13 ) | (0.15 ) | (0.17 ) | (0.17 ) |
Net asset value, end of period | $9.53 | $9.56 | $9.97 | $9.94 | $9.94 |
Total return4 | 1.70 % | (2.82 )% | 1.80 % | 1.75 % | 2.60 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.38 % | 0.38 % | 0.39 % | 0.38 % | 0.38 % |
Net expenses | 0.35 % | 0.35 % | 0.35 % | 0.35 % | 0.35 % |
Net investment income | 1.96 % | 1.33 % | 1.48 % | 1.80 % | 1.94 % |
Supplemental data | |||||
Portfolio turnover rate | 30 % | 28 % | 20 % | 35 % | 33 % |
Net assets, end of period (000s omitted) | $179,524 | $346,080 | $439,530 | $626,312 | $787,524 |
1 | For the period from July 31, 2018 (commencement of class operations) to June 30, 2019 |
2 | Calculated based upon average shares outstanding |
3 | Amount is less than $0.005. |
4 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
54 | Allspring Short-Term Municipal Bond Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Administrator Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.54 | $9.96 | $9.92 | $9.93 | $9.84 |
Net investment income | 0.16 1 | 0.12 | 0.12 1 | 0.16 | 0.16 |
Net realized and unrealized gains (losses) on investments | (0.02 ) | (0.42 ) | 0.04 | (0.02 ) | 0.09 |
Total from investment operations | 0.14 | (0.30 ) | 0.16 | 0.14 | 0.25 |
Distributions to shareholders from | |||||
Net investment income | (0.17 ) | (0.12 ) | (0.12 ) | (0.15 ) | (0.16 ) |
Tax basis return of capital | 0.00 | 0.00 | 0.00 | 0.00 | (0.00 )2 |
Total distributions to shareholders | (0.17 ) | (0.12 ) | (0.12 ) | (0.15 ) | (0.16 ) |
Net asset value, end of period | $9.51 | $9.54 | $9.96 | $9.92 | $9.93 |
Total return | 1.45 % | (3.08 )% | 1.65 % | 1.39 % | 2.60 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.70 % | 0.70 % | 0.71 % | 0.69 % | 0.70 % |
Net expenses | 0.60 % | 0.60 % | 0.60 % | 0.60 % | 0.60 % |
Net investment income | 1.70 % | 1.07 % | 1.23 % | 1.55 % | 1.62 % |
Supplemental data | |||||
Portfolio turnover rate | 30 % | 28 % | 20 % | 35 % | 33 % |
Net assets, end of period (000s omitted) | $2,712 | $6,372 | $12,906 | $18,560 | $35,517 |
1 | Calculated based upon average shares outstanding |
2 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Municipal Bond Fund | 55
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Institutional Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.56 | $9.97 | $9.94 | $9.94 | $9.85 |
Net investment income | 0.19 1 | 0.13 | 0.14 | 0.17 | 0.18 1 |
Net realized and unrealized gains (losses) on investments | (0.03 ) | (0.41 ) | 0.03 | (0.00 )2 | 0.09 |
Total from investment operations | 0.16 | (0.28 ) | 0.17 | 0.17 | 0.27 |
Distributions to shareholders from | |||||
Net investment income | (0.19 ) | (0.13 ) | (0.14 ) | (0.17 ) | (0.18 ) |
Tax basis return of capital | 0.00 | 0.00 | 0.00 | 0.00 | (0.00 )3 |
Total distributions to shareholders | (0.19 ) | (0.13 ) | (0.14 ) | (0.17 ) | (0.18 ) |
Net asset value, end of period | $9.53 | $9.56 | $9.97 | $9.94 | $9.94 |
Total return | 1.65 % | (2.86 )% | 1.75 % | 1.70 % | 2.81 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.44 % | 0.43 % | 0.44 % | 0.43 % | 0.43 % |
Net expenses | 0.40 % | 0.40 % | 0.40 % | 0.40 % | 0.40 % |
Net investment income | 1.96 % | 1.29 % | 1.42 % | 1.74 % | 1.80 % |
Supplemental data | |||||
Portfolio turnover rate | 30 % | 28 % | 20 % | 35 % | 33 % |
Net assets, end of period (000s omitted) | $1,406,099 | $1,155,172 | $1,390,537 | $1,919,898 | $2,159,113 |
1 | Calculated based upon average shares outstanding |
2 | Amount is more than $(0.005) |
3 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
56 | Allspring Short-Term Municipal Bond Fund
Notes to financial statements
Notes to financial statements
1.
ORGANIZATION
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Short-Term Municipal 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.
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 any of 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.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, 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 Short-Term Municipal Bond Fund | 57
Notes to financial statements
As of June 30, 2023, the aggregate cost of all investments for federal income tax purposes was $2,057,921,302 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $2,092,410 |
Gross unrealized losses | (48,861,022 ) |
Net unrealized losses | $(46,768,612 ) |
As of June 30, 2023, the Fund had capital loss carryforwards which consist of $9,308,213 in short-term capital losses and $52,513,087 in long-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.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2023:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Closed-end fund obligations | $0 | $7,000,000 | $0 | $7,000,000 |
Municipal obligations | 0 | 1,978,159,160 | 0 | 1,978,159,160 |
Short-term investments | ||||
Commercial paper | 0 | 20,494,753 | 0 | 20,494,753 |
Investment companies | 5,498,777 | 0 | 0 | 5,498,777 |
Total assets | $5,498,777 | $2,005,653,913 | $0 | $2,011,152,690 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended June 30, 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
58 | Allspring Short-Term Municipal Bond Fund
Notes to financial statements
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 $1 billion | 0.350 % |
Next $4 billion | 0.325 |
Next $3 billion | 0.290 |
Next $2 billion | 0.265 |
Over $10 billion | 0.255 |
For the year ended June 30, 2023, the management fee was equivalent to an annual rate of 0.34% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.15% 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 | 0.15 % |
Class C | 0.15 |
Class R6 | 0.03 |
Administrator Class | 0.10 |
Institutional Class | 0.08 |
Prior to June 30, 2023, the class-level administration fee for Class A and Class C was 0.16% of the average daily net assets of each respective class.
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 October 31, 2023 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 June 30, 2023, the contractual expense caps are as follows:
EXPENSE RATIO CAPS | |
Class A | 0.63 % |
Class C | 1.38 |
Class R6 | 0.35 |
Administrator Class | 0.60 |
Institutional Class | 0.40 |
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 year ended June 30, 2023, Allspring Funds Distributor received $649 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the year ended June 30, 2023.
Allspring Short-Term Municipal Bond Fund | 59
Notes to financial statements
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. Pursuant to these procedures, the Fund had $88,974,985, $178,273,000 and $0 in interfund purchases, sales and net realized gains (losses), respectively, during the year ended June 30, 2023.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2023 were $715,454,904 and $527,020,831, 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 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 year ended June 30, 2023, there were no borrowings by the Fund under the agreement.
7.
DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid was $34,832,577 and $29,602,818 of tax-exempt income for the years ended June 30, 2023 and June 30, 2022, respectively.
As of June 30, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | Unrealized losses | Capital loss carryforward |
$1,173,298 | $(46,768,612 ) | $(61,821,300 ) |
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.
60 | Allspring Short-Term Municipal Bond Fund
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring Short-Term Municipal Bond Fund (the Fund), one of the funds constituting Allspring Funds Trust, including the portfolio of investments, as of June 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of June 30, 2023, by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
August 25, 2023
Allspring Short-Term Municipal Bond Fund | 61
Other information (unaudited)
Other information
Tax information
Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2023.
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 1-866-259-3305, 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.
62 | Allspring Short-Term Municipal 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 |
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 |
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.
Allspring Short-Term Municipal Bond Fund | 63
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 |
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. |
64 | Allspring Short-Term Municipal Bond Fund
Other information (unaudited)
Officers1
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 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 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 Short-Term Municipal Bond Fund | 65
Other information (unaudited)
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 15-17, 2023 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Short-Term Municipal Bond Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2023, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
The Board noted that it initially approved the Advisory Agreements at a Board meeting held in May 2021, each for a two-year term, in advance of the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC,1 a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. (the “Transaction”). The Trustees also noted that, while they did not specifically consider the continuation of the Advisory Agreements in 2022 as a result of the two-year term that was approved in 2021, the Trustees received and considered certain information at a Board meeting held in April 2022 that was applicable to the Advisory Agreements, including an overview and financial review of the Allspring Global Investments business, information regarding certain ancillary agreements that were approved by the Board at the April 2022 Board meeting, and comparative data regarding Fund fees and expenses.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2023. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business. The Board also considered information about retention arrangements with respect to key personnel of Allspring Global Investments that were put in place in connection with the Transaction. The Board took into account information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the Transaction under a transition services agreement and the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
1
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
66 | Allspring Short-Term Municipal Bond Fund
Other information (unaudited)
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, and Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2022. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for the ten-year period under review, that the investment performance of the Fund was in range of the average investment performance of the Universe for the three- and five-year periods under review, and that the investment performance of the Fund was lower than the average investment performance of the Universe for the one-year period under review. The Board also noted that the investment performance of the Fund was lower than the investment performance of its benchmark index, the Bloomberg 1-3 Year Composite Municipal Bond Index, for all periods under review. The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s investment performance.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for each share class, except that the net operating expense ratios of the Fund were equal to the median net operating expense ratios of the expense Groups for the Institutional Class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than the sum of these average rates for the Fund’s expense Groups for the Institutional Class and the Class R6 shares, that the Management Rates of the Fund were equal to the sum of these average rates for the Fund’s expense Groups for the Administrator Class, and that the Management Rates of the Fund were in range of the sum of these average rates for the Fund’s expense Groups for the Class A shares.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received
Allspring Short-Term Municipal Bond Fund | 67
Other information (unaudited)
information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Profitability
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and differences in how Allspring Global Investments calculates its pre-tax profit metric versus the methodology used when Allspring Funds Management was part of Wells Fargo. It was noted that the impact of such differences had only minor impact on the financial results presented. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser and fees earned in the past by Allspring Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund complex’s securities lending collateral.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
68 | Allspring Short-Term Municipal Bond Fund
Other information (unaudited)
Liquidity risk management program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that operate as money market funds), including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund’s investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the “Council”) composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 16-17, 2023, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2022 through December 31, 2022 (the “Reporting Period”). The Report noted significant liquidity events impacting the Funds related to extended foreign market holidays as well as the difficulty of trading and settlement of most Russia-related securities due to sanctions activity. The Report noted that there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage the Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
Allspring Short-Term Municipal Bond Fund | 69
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
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.
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Contents
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The views expressed and any forward-looking statements are as of June 30, 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 Strategic Municipal Bond Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Strategic Municipal Bond Fund for the 12-month period that ended June 30, 2023. Globally, stocks and bonds experienced heightened volatility through the period. The market was focused on persistently high inflation and the impact of ongoing aggressive central bank rate hikes. Compounding these concerns were the global reverberations of the Russia-Ukraine war. Riskier assets rallied in 2023, with anticipation of an end to the tight monetary policy despite concerns of a possible impending recession. After suffering deep and broad losses through 2022, bonds now benefit from a base of higher yields that can help generate higher income. However, ongoing rate hikes continued to be a headwind during recent months.
For the 12-month period, stocks generally outperformed bonds—both domestic U.S. and global. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 19.59%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 12.72%, while the MSCI EM Index (Net) (USD)3 had more muted performance, with a gain of 1.75%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -0.94%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 fell 1.83%, the Bloomberg Municipal Bond Index6 gained 3.19%, and the ICE BofA U.S. High Yield Index7 returned 8.97%.
Despite high inflation and central bank rate hikes, markets rallied.
Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong: July nonfarm payrolls grew by more than 500,000 and U.S. unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices—major contributors to recent overall inflation—fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with mortgage rates at a 13-year high. The Federal Reserve (Fed) raised the federal funds rate 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to further rate hikes.
August was a broadly challenging month. High inflation persisted, cresting 9% in the eurozone on an annual basis and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June peak. One positive was the resilient U.S. jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act. Its primary stated goals include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“ Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong. ”
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 the 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 Strategic Municipal Bond Fund
Letter to shareholders (unaudited)
In September, all asset classes suffered further major losses. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar weighed on results for investors holding non-U.S.-dollar assets. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The Bank of England (BoE) then stepped in and bought long-dated government bonds.
Equities had a reprieve in October. 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 increasing 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.
Financial markets cooled in December, with U.S. equities declining overall in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever, with generally flat 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 wound 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 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.
Markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks would 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 was not falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the BoE and the European Central Bank (ECB) both raised rates by 0.50%.
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 banking industry turmoil created an additional challenge for central banks in balancing inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. 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 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. ”
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.
Allspring Strategic Municipal Bond Fund | 3
Letter to shareholders (unaudited)
Economic data released in April pointed to global resilience, as Purchasing Managers Indexes1 in the U.S., U.K., and eurozone beat expectations and China reported first-quarter annualized economic growth of 4.5%. Despite banking industry stress, developed market stocks had monthly gains. The U.S. labor market remained strong, with a 3.5% jobless rate and monthly payroll gains above 200,000. However, uncertainty and inflationary concerns weighed on investors in the U.S. and abroad.
May was marked by a divergence between expanding activity in services and an overall contraction in manufacturing activity in the U.S., U.K., and eurozone. Core inflation remained elevated in the U.S. and Europe, despite the ongoing efforts of the Fed and ECB, which included rate hikes of 0.25% by both in May. Stubborn inflation and the resilient U.S. labor market led to expectations of further interest rate hikes, overall monthly declines across bond indexes, and mixed results for stocks in May. Investor worries over a U.S. debt ceiling impasse were modest, and market confidence was buoyed by a deal in late May to avert a potential U.S. debt default.
June featured the Fed’s first pause on interest rate hikes since March 2022, when it began its aggressive campaign to rein in inflation. However, core CPI, excluding food and energy prices, while continuing to decline, remained stubbornly high in June, at 4.8%, well above the Fed’s 2.0% target rate. With the U.S. unemployment rate still at 3.6%, near a historical low, and U.S. payrolls growing in June for the 30th consecutive month, expectations of more Fed rate hikes were reinforced. However, U.S. and global stocks had strong returns in June.
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
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.
1
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.
4 | Allspring Strategic Municipal Bond Fund
Letter to shareholders (unaudited)
Notice to Shareholders |
Beginning in July 2024, the Fund will be required by the Securities and Exchange Commission to send shareholders a paper copy of a new tailored shareholder report in place of the full shareholder report that you are now receiving. The tailored shareholder report will contain concise information about the Fund, including certain expense and performance information and fund statistics. If you wish to receive this new tailored shareholder report electronically, please follow the instructions on the back cover of this report. |
Other information that is currently included in the shareholder report, such as the Fund’s financial statements, will be available online and upon request, free of charge, in paper or electronic format. |
Allspring Strategic Municipal Bond Fund | 5
Allspring Strategic Municipal Bond Fund
Investment objective | The Fund seeks current income exempt from regular federal income tax. |
Manager | Allspring Funds Management, LLC |
Subadviser | Allspring Global Investments, LLC |
Portfolio managers | Terry J. Goode, Robert J. Miller, Nicholos Venditti |
Average annual total returns (%) as of June 30, 2023 | |||||||||
Including sales charge | Excluding sales charge | Expense ratios1 (%) | |||||||
Inception date | 1 year | 5 year | 10 year | 1 year | 5 year | 10 year | Gross | Net2 | |
Class A (VMPAX) | 12-1-1994 | -2.03 | 0.37 | 1.28 | 2.03 | 1.19 | 1.70 | 0.78 | 0.78 |
Class C (DHICX) | 8-18-1997 | 0.27 | 0.44 | 1.09 | 1.27 | 0.44 | 1.09 | 1.53 | 1.53 |
Class R6 (VMPRX)3 | 7-31-2018 | – | – | – | 2.42 | 1.55 | 1.95 | 0.41 | 0.41 |
Administrator Class (VMPYX) | 10-6-1997 | – | – | – | 2.03 | 1.28 | 1.81 | 0.73 | 0.68 |
Institutional Class (STRIX) | 11-30-2012 | – | – | – | 2.37 | 1.52 | 2.04 | 0.46 | 0.46 |
Bloomberg Short-Intermediate Municipal Bond Index4 | – | – | – | – | 1.84 | 1.52 | 1.78 | – | – |
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 4.00%. 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. 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 October 31, 2023(October 31, 2024 for Class A and Class C), to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.79% for Class A, 1.54% for Class C, 0.42% for Class R6, 0.68% for Administrator Class and 0.47% 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 Administrator Class shares, and includes the higher expenses applicable to the Administrator Class shares. If these expenses had not been included, returns for the Class R6 shares would be higher. |
4 | The Bloomberg Short-Intermediate Municipal Bond Index is a rules-based, market-value-weighted index composed of publicly traded municipal bonds that cover the U.S. dollar–denominated short-term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, insured bonds, and prefunded bonds. 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. 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 municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the alternative minimum tax. Any capital gains distributions may be taxable.
6 | Allspring Strategic Municipal Bond Fund
Allspring Strategic Municipal Bond Fund
Growth of $10,000 investment as of June 30, 20231 |
1 | The chart compares the performance of Class A shares for the most recent ten years with the Bloomberg Short-Intermediate Municipal Bond Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.00%. |
Allspring Strategic Municipal Bond Fund | 7
Allspring Strategic Municipal Bond Fund
MANAGER’S DISCUSSION
Fund highlights
•The Fund (Class A, excluding sales charges) outperformed its benchmark, the Bloomberg Short-Intermediate Municipal Bond Index, for the 12-month period that ended June 30, 2023. Credit-quality allocation, security selection, and duration positioning were the main drivers of performance while sector was neutral.
•We tactically added to duration during the period, from short to the benchmark during the first half to neutral in the first quarter of 2023 to modestly long at period-end.
•Yield-curve positioning was a modest contributor. We were overweight the very front end of the yield curve as well as to 12-year-plus bonds, which performed well, and underweight the 1- to 6-year segments, which trailed the market.
•The portfolio has maintained an underweight to the highest-quality credit tiers while being overweight A-rated, BBB-rated, and high-yield-rated bonds. This position contributed to relative performance for the year as lower-rated credits did well. In general, as credit spreads have widened, allocations to A-rated and BBB-rated bonds have been beneficial due to their higher yields.
•Security selection was positive while sector allocation was neutral.
Global economies increase lending rates in hopes of taming runaway inflation.
Entering 2022, the excitement of a post-pandemic world gave way to new whispers and fears of higher prices and broad-based inflation caused by supply chain bottlenecks, increased housing costs, wage increases, and employment market distortions. Those fears quickly became reality and prices began to rise at a historic rate. The Federal Open Market Committee acted quickly and with purpose: ending open market purchases, reducing its balance sheet, and raising the benchmark overnight lending rate at each monthly meeting through 2022 and early 2023. Fixed income and equity markets fell sharply but began to recover as annual inflation numbers peaked in June and began to recede.
The U.S. unemployment rate, which reached a multigenerational high of more than 14% in the spring of 2020, fell throughout the past year and has settled below 4%. Employers continue to add jobs, especially in service-oriented industries, and the resulting wage increases have further contributed to inflationary pressures. After the U.S. gross domestic product (GDP) turned negative in the first and second quarters of 2022, it expanded at rates above 2% in each subsequent quarter. The federal funds rate, which began 2022 at 0.25% to 0.50%, was raised 10 consecutive times before a pause in June 2023. It now sits at 5.25% to 5.50% as the Federal Reserve (Fed) attempts to curb inflation. In this environment, some form of recession seems imminent.
In the wake of continued rate increases, U.S. fixed income yields rose dramatically as investors reacted to Fed actions, with the yield on the 10-year Treasury ending the period near 4%. Rising Treasury yields affected all fixed income sectors in 2022, with all seeing their worst returns in more than 40 years. The U.S. Treasury yield curve remained substantially inverted throughout the period, which has driven many investors into shorter-term interest-bearing vehicles, including money markets.
Credit quality as of June 30, 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. |
8 | Allspring Strategic Municipal Bond Fund
Allspring Strategic Municipal Bond Fund
Municipals sold off drastically to start the period but began to rebound in the fourth quarter of 2022. The Bloomberg Municipal Bond Index* fell nearly 8% and the broader municipal market had more than $124 billion in outflows before stabilizing early in 2023. For the first time in history, the municipal yield curve also inverted but not to the degree seen in Treasuries.
While this environment has certainly been painful for municipal investors, the drawdown has created significantly improved opportunities and entry points. Municipal to Treasury ratios ended the period elevated but at far better levels than in 2021. Municipal credit spreads have widened substantially while the underlying fundamental credit of municipalities remains strong, following trillions of dollars in government stimulus. We believe investors will continue to return to the municipal market in the latter half of 2023, attracted by increased yields, positive fundamental strength, and good relative value.
Market volatility was the norm during the period.
Coming into the fiscal year, municipal bonds had experienced their worst six-month period on record, down 8.98% through June 30, 2022. The strong technical forces that had driven the market to record-low yields evaporated and negative fund flows across the industry accelerated. According to Bloomberg AAA scale, the 10-year municipal bond yield rose from 0.94% on December 31, 2021, to 2.60% on June 30, 2022, an increase of 166 basis points (bps; 100 bps equal 1.00%). Negative fund flows continued as we entered the period, but the market began to stabilize. Price returns were still negative, but yields were high enough to offset the declines. The market continued to improve in the second half as the Bloomberg Municipal Bond Index* returned 2.67% in the first six months of 2023. Over the entire period, the municipal market returned 3.19%, on par with corporates, U.S. Treasuries and the Bloomberg U.S. Aggregate Bond Index.** Adjusted for taxes, municipal bonds outperformed these fixed income alternatives by a wide margin.
Duration positioning, yield curve, and credit allocation contributed to performance, with selection a modest detractor.
We tactically moved duration during the period as we refined our outlook. This active duration management contributed to relative performance. We began the period short duration to the benchmark in anticipation of higher rates. This worked well as the Fed aggressively raised rates in an effort to tame inflation. In mid-September, after the market had sold off aggressively, municipal bonds had cheapened to a level we felt represented a compelling value and we began extending duration closer to neutral. We remained close to neutral through March and extended, relative to the benchmark by period-end in anticipation of strong summer seasonals as we believe that most rate increases are behind us.
Our curve positioning also contributed to performance. Overall, our underweight to bonds inside of 1 year and overweight to bonds 12 years
and longer was positive. We began the period underweight to longer-dated bonds, which was positive in the first half as longer-dated bonds trailed the market by a wide margin. As we extended duration, we did so with longer-dated bonds (primarily the 20- year part of the curve), going from an underweight in the first half of the period to an overweight in the second half, which was positive as longer-dated bonds performed well during the second half.
Effective maturity distribution as of June 30, 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 allocation contributed to performance. The portfolio has maintained an underweight to the highest-quality credit tiers while being overweight A-rated, BBB-rated, and high-yield-rated bonds. This positioning contributed to relative performance for the period as lower-rated credits did well. In general, as credit spreads have widened, allocations to A-rated and BBB-rated bonds have been beneficial due to their higher yields. Looking forward, we remain cautious on lower-rated credit tiers and believe there will be a better entry point in the near future.
Our sector allocation was neutral for the quarter. We continue to be underweight general obligation (GO) bonds and overweight revenue bonds. Controlling for duration, curve, and quality allocation, contributors to relative performance included an overweight allocation to the housing and education sectors as well as an underweight to local GO debt. An overweight allocation to housing and an underweight allocation to state GO debt detracted. Underweights to New York and California detracted but were largely offset by overweights to Illinois and Pennsylvania. An overweight allocation to higher coupon bonds also contributed to performance.
The outlook remains favorable for active bond management, in our view.
Fundamental credit factors remain strong in the municipal bond market as municipal credit is the healthiest it has been in decades. We believe the
*
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.
**
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.
Allspring Strategic Municipal Bond Fund | 9
Allspring Strategic Municipal Bond Fund
Fed will continue its monetary tightening policy well into the second half of calendar-year 2023 to combat higher-than-average inflation, and we are looking for signs of a slowing national economy. These actions should only have a modest effect on municipal credit quality and that, coupled with a weak technical market, makes municipal bonds attractive for buying lower-investment-grade bonds in the revenue and local GO sectors at attractive spreads relative to the past decade. We believe the Fed will reach its terminal rate in the second half of 2023, and with its view of
higher rates for longer in 2024, there will be opportune times to invest.
We believe the outlook for bond selection remains favorable. Increased dispersion within rating tiers and sectors offers the opportunity for differentiation among credits. As the period ended, primary and secondary market opportunities were favorable due to cheaper valuations relative to U.S. Treasuries and wider credit spreads.
10 | Allspring Strategic Municipal Bond Fund
Fund expenses (unaudited)
Fund expenses
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 January 1, 2023 to June 30, 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 1-1-2023 | Ending account value 6-30-2023 | Expenses paid during the period1 | Annualized net expense ratio | |
Class A | ||||
Actual | $1,000.00 | $1,018.90 | $4.00 | 0.80 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.83 | $4.01 | 0.80 % |
Class C | ||||
Actual | $1,000.00 | $1,015.10 | $7.74 | 1.55 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.11 | $7.75 | 1.55 % |
Class R6 | ||||
Actual | $1,000.00 | $1,019.63 | $2.10 | 0.42 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.71 | $2.11 | 0.42 % |
Administrator Class | ||||
Actual | $1,000.00 | $1,018.33 | $3.40 | 0.68 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.42 | $3.41 | 0.68 % |
Institutional Class | ||||
Actual | $1,000.00 | $1,020.56 | $2.35 | 0.47 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.46 | $2.36 | 0.47 % |
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 181 divided by 365 (to reflect the one-half-year period). |
Allspring Strategic Municipal Bond Fund | 11
Portfolio of investments—June 30, 2023
Portfolio of investments
Principal | Value | |||||
Closed-end fund obligations: 0.15% | ||||||
Other: 0.15% | ||||||
Nuveen Quality Municipal Income Fund Series 1-2118 (30 shares) 4.11%144Aø | $ | 3,000,000 | $3,000,000 | |||
Total closed-end fund obligations (Cost $3,000,000) | 3,000,000 | |||||
Interest rate | Maturity date | |||||
Municipal obligations: 99.26% | ||||||
Alabama: 3.23% | ||||||
Housing revenue: 0.47% | ||||||
Alabama HFA South Oak Residences LP Series Aøø | 1.25 % | 12-1-2025 | 10,000,000 | 9,606,829 | ||
Industrial development revenue: 0.18% | ||||||
Selma Industrial Development Board International Paper Co. Series Aøø | 2.00 | 11-1-2033 | 3,675,000 | 3,590,389 | ||
Utilities revenue: 2.58% | ||||||
Black Belt Energy Gas District Series Aøø | 4.00 | 12-1-2048 | 2,000,000 | 1,999,342 | ||
Black Belt Energy Gas District Series Bøø | 4.00 | 10-1-2052 | 6,500,000 | 6,441,419 | ||
Black Belt Energy Gas District Series Cøø | 5.25 | 2-1-2053 | 7,800,000 | 8,165,185 | ||
Lower Alabama Gas Districtøø | 4.00 | 12-1-2050 | 8,660,000 | 8,609,917 | ||
Southeast Alabama Gas Supply District Project No. 2 Series Aøø | 4.00 | 6-1-2049 | 12,150,000 | 12,126,476 | ||
Southeast Energy Authority A Cooperative District Project No. 5 Series Aøø | 5.25 | 1-1-2054 | 11,000,000 | 11,501,550 | ||
Tender Option Bond Trust Receipts/Certificates Series 2022- XF3073 (Morgan Stanley Bank LIQ)144Aø | 4.36 | 2-1-2053 | 3,000,000 | 3,000,000 | ||
51,843,889 | ||||||
65,041,107 | ||||||
Alaska: 0.28% | ||||||
Health revenue: 0.28% | ||||||
Alaska Industrial Development & Export Authority Dena’ Nena’ Henash Series A | 5.00 | 10-1-2028 | 1,530,000 | 1,642,233 | ||
Alaska Industrial Development & Export Authority Dena’ Nena’ Henash Series A | 5.00 | 10-1-2029 | 2,220,000 | 2,413,105 | ||
Alaska Industrial Development & Export Authority Tanana Chiefs Conference Series A | 5.00 | 10-1-2027 | 1,455,000 | 1,540,101 | ||
5,595,439 | ||||||
Arizona: 1.90% | ||||||
Education revenue: 0.68% | ||||||
Arizona IDA Arizona Agribusiness & Equine Center, Inc. Series B144A | 4.00 | 3-1-2027 | 810,000 | 779,275 | ||
Arizona IDA Jerome Facility Project Series B | 5.00 | 7-1-2029 | 160,000 | 165,413 | ||
Arizona IDA Kipp NYC Public Charter Schools Series B | 4.00 | 7-1-2034 | 230,000 | 223,155 | ||
Arizona IDA Kipp NYC Public Charter Schools Series B | 5.00 | 7-1-2030 | 190,000 | 196,348 | ||
Arizona IDA Kipp NYC Public Charter Schools Series B | 5.00 | 7-1-2031 | 200,000 | 206,595 | ||
Arizona IDA Kipp NYC Public Charter Schools Series B | 5.00 | 7-1-2032 | 210,000 | 216,580 | ||
Arizona IDA Kipp NYC Public Charter Schools Series B | 5.00 | 7-1-2033 | 220,000 | 226,542 | ||
The accompanying notes are an integral part of these financial statements.
12 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
Arizona IDA Leman Academy of Excellence Obligated Group Series A144A | 4.50 % | 7-1-2029 | $ | 765,000 | $730,161 | |
IDA of the County of Pima American Leadership Academy, Inc.144A | 4.60 | 6-15-2025 | 425,000 | 421,798 | ||
IDA of the County of Pima American Leadership Academy, Inc. Series 2022144A | 4.00 | 6-15-2024 | 2,140,000 | 2,117,347 | ||
IDA of the County of Pima American Leadership Academy, Inc. Series 2022144A | 4.00 | 6-15-2026 | 2,585,000 | 2,524,628 | ||
IDA of the County of Pima American Leadership Academy, Inc. Series 2022144A | 4.00 | 6-15-2028 | 2,785,000 | 2,696,230 | ||
IDA of the County of Pima Edkey, Inc. Obligated Group144A | 3.50 | 7-1-2025 | 1,345,000 | 1,301,137 | ||
IDA of the County of Pima Noah Webster Schools-Mesa Series A | 5.50 | 12-15-2023 | 215,000 | 215,858 | ||
University of Arizona Series C | 5.00 | 8-1-2023 | 1,000,000 | 1,001,210 | ||
University of Arizona Series C | 5.00 | 8-1-2025 | 600,000 | 623,440 | ||
13,645,717 | ||||||
Health revenue: 0.18% | ||||||
Maricopa County IDA Christian Care Surprise, Inc.144A | 5.00 | 1-1-2026 | 2,630,000 | 2,459,529 | ||
Tempe IDA Tempe Life Care Village Obligated Group Series A | 4.00 | 12-1-2023 | 215,000 | 214,061 | ||
Tempe IDA Tempe Life Care Village Obligated Group Series A | 4.00 | 12-1-2024 | 220,000 | 216,661 | ||
Tempe IDA Tempe Life Care Village Obligated Group Series A | 4.00 | 12-1-2025 | 270,000 | 262,870 | ||
Tempe IDA Tempe Life Care Village Obligated Group Series A | 4.00 | 12-1-2026 | 245,000 | 235,700 | ||
Tempe IDA Tempe Life Care Village Obligated Group Series A | 4.00 | 12-1-2027 | 350,000 | 332,580 | ||
3,721,401 | ||||||
Housing revenue: 0.25% | ||||||
Arizona IDA Lincoln South Beltway Project | 5.00 | 2-1-2027 | 1,255,000 | 1,339,461 | ||
Arizona IDA State of Nebraska Department of Transportation | 5.00 | 5-1-2027 | 1,125,000 | 1,207,070 | ||
Arizona IDA State of Nebraska Department of Transportation | 5.00 | 8-1-2027 | 1,205,000 | 1,299,669 | ||
Arizona IDA State of Nebraska Department of Transportation | 5.00 | 11-1-2027 | 1,000,000 | 1,083,949 | ||
4,930,149 | ||||||
Industrial development revenue: 0.58% | ||||||
Chandler IDA Intel Corp. AMTøø | 5.00 | 6-1-2049 | 11,645,000 | 11,734,665 | ||
Miscellaneous revenue: 0.21% | ||||||
Navajo Nation Series A144A | 5.00 | 12-1-2025 | 4,110,000 | 4,171,599 | ||
38,203,531 | ||||||
Arkansas: 0.06% | ||||||
Tax revenue: 0.06% | ||||||
City of Bentonville Sales & Use Tax Revenue Series B | 1.05 | 11-1-2046 | 940,000 | 924,721 | ||
City of Cabot Sales & Use Tax Revenue Series B | 4.00 | 12-1-2029 | 230,000 | 241,578 | ||
City of Cabot Sales & Use Tax Revenue Series B | 4.00 | 12-1-2030 | 125,000 | 131,040 | ||
1,297,339 | ||||||
California: 3.32% | ||||||
Airport revenue: 0.01% | ||||||
Port of Oakland Series H AMT | 5.00 | 5-1-2024 | 225,000 | 228,455 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 13
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue: 0.03% | ||||||
California Municipal Finance Authority Nova Academy Series A144A | 4.00 % | 6-15-2026 | $ | 400,000 | $390,979 | |
California School Finance Authority Rocketship Education Obligated Group Series A144A | 4.50 | 6-1-2027 | 250,000 | 247,523 | ||
638,502 | ||||||
Health revenue: 1.19% | ||||||
California HFFA Kaiser Foundation Hospitals Series A-2 | 4.00 | 11-1-2044 | 6,000,000 | 5,909,185 | ||
California PFA Henry Mayo Newhall Hospital Obligated Group Series A | 4.00 | 10-15-2026 | 415,000 | 416,709 | ||
California PFA Henry Mayo Newhall Hospital Obligated Group Series A | 4.00 | 10-15-2027 | 400,000 | 402,821 | ||
California PFA Kendal at Sonoma Obligated Group Series A144A | 5.00 | 11-15-2036 | 2,000,000 | 1,941,077 | ||
California PFA Kendal at Sonoma Obligated Group Series B-2144A | 2.38 | 11-15-2028 | 1,000,000 | 957,724 | ||
California Statewide CDA CommonSpirit Health Obligated Group Series D (AGM Insured)€øø | 4.01 | 7-1-2041 | 7,700,000 | 7,700,000 | ||
California Statewide CDA CommonSpirit Health Obligated Group Series E (AGM Insured)€øø | 4.80 | 7-1-2040 | 6,525,000 | 6,525,000 | ||
23,852,516 | ||||||
Housing revenue: 0.43% | ||||||
California Housing Finance Agency Series 2 | 4.00 | 3-20-2033 | 1,415,646 | 1,390,162 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 5.00 | 5-15-2024 | 500,000 | 505,635 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 5.00 | 5-15-2025 | 400,000 | 409,765 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 5.00 | 5-15-2026 | 400,000 | 415,425 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 5.00 | 5-15-2027 | 500,000 | 527,062 | ||
California Municipal Finance Authority CHF-Davis II LLC (BAM Insured) | 5.00 | 5-15-2028 | 400,000 | 427,493 | ||
Mizuho Floater/Residual Trust Series 2021-MIZ9063 (Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ)144Aø | 4.51 | 5-1-2049 | 5,000,000 | 5,000,000 | ||
8,675,542 | ||||||
Miscellaneous revenue: 0.03% | ||||||
Independent Cities Finance Authority City of Compton Sales Tax Revenue (AGM Insured)144A | 4.00 | 6-1-2024 | 310,000 | 310,820 | ||
Independent Cities Finance Authority City of Compton Sales Tax Revenue (AGM Insured)144A | 4.00 | 6-1-2026 | 350,000 | 354,395 | ||
665,215 | ||||||
Tax revenue: 0.07% | ||||||
Riverside County PFA Project Area No. 1 Series A (BAM Insured) | 5.00 | 10-1-2026 | 1,250,000 | 1,300,690 | ||
The accompanying notes are an integral part of these financial statements.
14 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Transportation revenue: 0.78% | ||||||
Bay Area Toll Authority Series C (SIFMA Municipal Swap+0.45%)± | 4.46 % | 4-1-2056 | $ | 2,000,000 | $1,977,751 | |
Bay Area Toll Authority Series D (SIFMA Municipal Swap+0.30%)± | 4.31 | 4-1-2056 | 14,000,000 | 13,660,020 | ||
15,637,771 | ||||||
Utilities revenue: 0.78% | ||||||
California Community Choice Financing Authority Clean Energy Project Green Bond Series Cøø | 5.25 | 1-1-2054 | 15,000,000 | 15,691,482 | ||
66,690,173 | ||||||
Colorado: 1.19% | ||||||
Airport revenue: 0.27% | ||||||
City & County of Denver Airport System Revenue Series A AMT | 5.00 | 12-1-2030 | 5,000,000 | 5,490,673 | ||
Education revenue: 0.03% | ||||||
Colorado ECFA New Summit Academy Series A144A | 4.00 | 7-1-2031 | 310,000 | 293,702 | ||
Colorado ECFA Rocky Mountain Classical Academy Series A | 6.38 | 9-1-2023 | 325,000 | 326,435 | ||
620,137 | ||||||
GO revenue: 0.17% | ||||||
Aviation Station North Metropolitan District No. 2 Series A | 4.00 | 12-1-2029 | 499,000 | 469,826 | ||
Grand River Hospital District (AGM Insured) | 5.00 | 12-1-2025 | 1,000,000 | 1,032,825 | ||
Mirabelle Metropolitan District No. 2 Series A | 5.00 | 12-1-2039 | 700,000 | 665,360 | ||
Peak Metropolitan District No. 1 Series A144A | 4.00 | 12-1-2035 | 500,000 | 426,712 | ||
Sterling Ranch Community Authority Board Sterling Ranch Colorado Metropolitan District No 2 Series A | 3.38 | 12-1-2030 | 416,000 | 374,334 | ||
Thompson Crossing Metropolitan District No. 4 | 3.50 | 12-1-2029 | 515,000 | 464,937 | ||
3,433,994 | ||||||
Health revenue: 0.29% | ||||||
Colorado Health Facilities Authority Advent Health Obligated Group Series A | 4.00 | 11-15-2043 | 6,000,000 | 5,884,735 | ||
Miscellaneous revenue: 0.38% | ||||||
Colorado Bridge Enterprise Colorado High Performance Transportation Enterprise AMT | 4.00 | 12-31-2024 | 1,610,000 | 1,613,816 | ||
State of Colorado Series N | 4.00 | 3-15-2043 | 6,000,000 | 5,986,728 | ||
7,600,544 | ||||||
Tax revenue: 0.01% | ||||||
Pueblo Urban Renewal Authority Evraz Project Series B CAB144A¤ | 0.00 | 12-1-2025 | 200,000 | 161,450 | ||
Transportation revenue: 0.04% | ||||||
E-470 Public Highway Authority Series A | 5.00 | 9-1-2040 | 800,000 | 808,328 | ||
23,999,861 | ||||||
Connecticut: 1.79% | ||||||
Education revenue: 0.27% | ||||||
Connecticut State HEFA University of Hartford Series N | 5.00 | 7-1-2026 | 575,000 | 577,845 | ||
Connecticut State HEFA University of Hartford Series N | 5.00 | 7-1-2027 | 430,000 | 433,862 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 15
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
Connecticut State HEFA University of Hartford Series N | 5.00 % | 7-1-2028 | $ | 530,000 | $536,760 | |
Connecticut State HEFA Yale University Series A-2øø | 2.00 | 7-1-2042 | 1,500,000 | 1,420,691 | ||
Connecticut State Higher Education Supplement Loan Authority Series B AMT | 5.00 | 11-15-2026 | 940,000 | 976,963 | ||
Connecticut State Higher Education Supplement Loan Authority Series B AMT | 5.00 | 11-15-2027 | 500,000 | 529,620 | ||
Connecticut State Higher Education Supplement Loan Authority Series C | 5.00 | 11-15-2025 | 480,000 | 502,219 | ||
Connecticut State Higher Education Supplement Loan Authority Series C | 5.00 | 11-15-2026 | 385,000 | 411,748 | ||
Connecticut State Higher Education Supplement Loan Authority Series C | 5.00 | 11-15-2027 | 125,000 | 133,684 | ||
5,523,392 | ||||||
GO revenue: 0.23% | ||||||
City of Bridgeport Series A | 5.00 | 6-1-2026 | 1,220,000 | 1,286,940 | ||
City of Bridgeport Series A | 5.00 | 6-1-2027 | 1,425,000 | 1,535,649 | ||
City of Bridgeport Series A | 5.00 | 6-1-2028 | 1,605,000 | 1,755,927 | ||
4,578,516 | ||||||
Health revenue: 0.41% | ||||||
Connecticut State HEFA Hartford HealthCare Obligated Group Series B-2øø | 5.00 | 7-1-2053 | 7,800,000 | 8,168,958 | ||
Tax revenue: 0.88% | ||||||
State of Connecticut Special Tax Revenue Series A | 5.00 | 8-1-2029 | 17,125,000 | 17,751,624 | ||
36,022,490 | ||||||
Delaware: 0.05% | ||||||
Education revenue: 0.05% | ||||||
Delaware State EDA Odyssey Charter School Series A144A | 6.25 | 9-1-2025 | 945,000 | 960,932 | ||
District of Columbia: 0.60% | ||||||
Airport revenue: 0.31% | ||||||
Metropolitan Washington Airports Authority Aviation Revenue Series A AMT | 5.00 | 10-1-2025 | 6,000,000 | 6,166,314 | ||
Education revenue: 0.10% | ||||||
District of Columbia Latin American Montessori Bilingual Public Charter School Obligated Group | 4.00 | 6-1-2030 | 1,000,000 | 953,977 | ||
District of Columbia Two Rivers Public Charter School, Inc. | 3.00 | 6-1-2030 | 1,100,000 | 987,294 | ||
1,941,271 | ||||||
Water & sewer revenue: 0.19% | ||||||
District of Columbia Water & Sewer Authority Series Cøø | 1.75 | 10-1-2054 | 4,000,000 | 3,887,081 | ||
11,994,666 | ||||||
The accompanying notes are an integral part of these financial statements.
16 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Florida: 4.09% | ||||||
Airport revenue: 0.89% | ||||||
County of Broward Port Facilities Revenue Series C | 5.00 % | 9-1-2027 | $ | 2,330,000 | $2,516,510 | |
County of Miami-Dade Aviation Revenue AMT | 5.00 | 10-1-2029 | 11,000,000 | 11,103,383 | ||
County of Miami-Dade Aviation Revenue AMT | 5.00 | 10-1-2030 | 1,325,000 | 1,336,858 | ||
County of Miami-Dade Seaport Department Series B AMT | 6.00 | 10-1-2032 | 1,385,000 | 1,393,273 | ||
County of Miami-Dade Seaport Department Series B AMT | 6.00 | 10-1-2033 | 1,500,000 | 1,508,960 | ||
17,858,984 | ||||||
Education revenue: 0.54% | ||||||
Capital Trust Agency Renaissance Charter School, Inc. Series 2017 Obligated Group Series A144A | 4.38 | 6-15-2027 | 790,000 | 772,500 | ||
Capital Trust Agency Renaissance Charter School, Inc. Series 2019 Obligated Group Series A144A | 4.00 | 6-15-2029 | 2,065,000 | 1,952,763 | ||
Capital Trust Agency, Inc. Imagine-Pasco County LLC Series A144A | 3.00 | 12-15-2029 | 370,000 | 336,332 | ||
Florida Development Finance Corp. IDEA Florida, Inc.144A | 5.25 | 6-15-2029 | 2,200,000 | 2,175,641 | ||
Florida Development Finance Corp. Renaissance Charter School, Inc. Series 2020C/D Obligated Group Series C144A | 4.00 | 9-15-2030 | 470,000 | 429,851 | ||
Florida Higher Educational Facilities Financial Authority Florida Institute of Technology, Inc. | 5.00 | 10-1-2027 | 650,000 | 671,697 | ||
Florida Higher Educational Facilities Financial Authority Florida Institute of Technology, Inc. | 5.00 | 10-1-2028 | 1,050,000 | 1,094,782 | ||
Florida Higher Educational Facilities Financial Authority Florida Institute of Technology, Inc. | 5.00 | 10-1-2029 | 1,000,000 | 1,050,836 | ||
Miami-Dade County IDA Youth Co-Op, Inc. Series A144A | 5.00 | 9-15-2025 | 400,000 | 397,024 | ||
Palm Beach County Educational Facilities Authority Palm Beach Atlantic University Obligated Group | 4.00 | 10-1-2029 | 420,000 | 419,335 | ||
Palm Beach County Educational Facilities Authority Palm Beach Atlantic University Obligated Group | 4.00 | 10-1-2030 | 870,000 | 866,422 | ||
Palm Beach County Educational Facilities Authority Palm Beach Atlantic University Obligated Group | 4.00 | 10-1-2031 | 660,000 | 655,105 | ||
10,822,288 | ||||||
GO revenue: 0.63% | ||||||
County of Miami-Dade Series A | 4.00 | 7-1-2042 | 12,605,000 | 12,619,532 | ||
Health revenue: 0.18% | ||||||
Florida Development Finance Corp. Mayflower Retirement Center, Inc. Obligated Group Series B-2144A | 1.75 | 6-1-2026 | 100,000 | 96,925 | ||
Lee Memorial Health System Obligated Group Series Bø | 4.47 | 4-1-2049 | 2,000,000 | 2,000,000 | ||
St. Johns County IDA Senior Living Vicar’s Landing Project Series A | 4.00 | 12-15-2029 | 225,000 | 210,486 | ||
St. Johns County IDA Senior Living Vicar’s Landing Project Series A | 4.00 | 12-15-2030 | 200,000 | 185,570 | ||
St. Johns County IDA Senior Living Vicar’s Landing Project Series A | 4.00 | 12-15-2031 | 205,000 | 188,618 | ||
St. Johns County IDA Senior Living Vicar’s Landing Project Series A | 4.00 | 12-15-2036 | 1,000,000 | 856,181 | ||
3,537,780 | ||||||
Housing revenue: 0.00% | ||||||
Deutsche Bank Spears/Lifers Trust Series DBE-8055 (Deutsche Bank LOC, Deutsche Bank LIQ)144Aø | 4.46 | 11-1-2058 | 14,976 | 14,976 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 17
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Industrial development revenue: 0.19% | ||||||
County of Escambia International Paper Co. Series Bøø | 2.00 % | 11-1-2033 | $ | 825,000 | $806,006 | |
Florida Development Finance Corp. Waste Pro USA, Inc. AMT | 3.00 | 6-1-2032 | 1,500,000 | 1,191,174 | ||
Florida Development Finance Corp. Waste Pro USA, Inc. AMT144A | 5.00 | 5-1-2029 | 2,000,000 | 1,905,591 | ||
3,902,771 | ||||||
Miscellaneous revenue: 0.23% | ||||||
Capital Trust Agency Marie Selby Botanical Gardens, Inc.144A | 4.00 | 6-15-2024 | 1,000,000 | 991,405 | ||
Capital Trust Agency Marie Selby Botanical Gardens, Inc.144A | 4.00 | 6-15-2025 | 350,000 | 343,392 | ||
County of Pasco Series A (AGM Insured) | 5.50 | 9-1-2038 | 725,000 | 829,715 | ||
County of Pasco State of Florida Cigarette Tax Revenue Series A (AGM Insured) | 5.25 | 9-1-2036 | 600,000 | 683,875 | ||
Pinellas County IDA Drs. Kiran & Pallavi Patel 2017 Foundation for Global Understanding, Inc. | 5.00 | 7-1-2029 | 710,000 | 726,094 | ||
Village Community Development District No. 13 | 2.63 | 5-1-2024 | 125,000 | 123,475 | ||
Village Community Development District No. 15144A%% | 4.38 | 5-1-2033 | 1,000,000 | 1,003,875 | ||
4,701,831 | ||||||
Resource recovery revenue: 0.24% | ||||||
Florida Development Finance Corp. Waste Pro USA, Inc. AMT144A | 5.25 | 8-1-2029 | 5,000,000 | 4,818,632 | ||
Transportation revenue: 0.07% | ||||||
County of Osceola Transportation Revenue Series A-1 | 5.00 | 10-1-2027 | 950,000 | 1,003,396 | ||
County of Osceola Transportation Revenue Series A-1 | 5.00 | 10-1-2029 | 450,000 | 485,158 | ||
1,488,554 | ||||||
Water & sewer revenue: 1.12% | ||||||
Charlotte County IDA MSKP Town & Country Utility LLC Series A AMT144A | 4.00 | 10-1-2041 | 1,250,000 | 1,028,919 | ||
North Sumter County Utility Dependent District (AGM Insured) | 5.00 | 10-1-2029 | 1,055,000 | 1,182,607 | ||
North Sumter County Utility Dependent District (AGM Insured) | 5.00 | 10-1-2030 | 1,760,000 | 2,005,199 | ||
North Sumter County Utility Dependent District (AGM Insured) | 5.00 | 10-1-2031 | 1,980,000 | 2,310,121 | ||
North Sumter County Utility Dependent District (AGM Insured) | 5.00 | 10-1-2032 | 2,080,000 | 2,404,024 | ||
Tohopekaliga Water Authority144A | 5.00 | 10-1-2025 | 12,000,000 | 12,532,395 | ||
Wildwood Utility Dependent District South Sumter Utility Project (BAM Insured) | 5.00 | 10-1-2041 | 900,000 | 976,785 | ||
22,440,050 | ||||||
82,205,398 | ||||||
Georgia: 5.79% | ||||||
Health revenue: 0.16% | ||||||
Fulton County Residential Care Facilities for the Elderly Authority All Saints-St. Luke’s Episcopal Home for the Retired Obligated Group Series B144A | 2.25 | 10-1-2028 | 3,665,000 | 3,121,509 | ||
The accompanying notes are an integral part of these financial statements.
18 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Industrial development revenue: 0.17% | ||||||
George L Smith II Congress Center Authority Signia Hotel Management LLC Series B144A | 3.63 % | 1-1-2031 | $ | 2,000,000 | $1,788,911 | |
George L Smith II Congress Center Authority Signia Hotel Management LLC Series B144A | 5.00 | 1-1-2036 | 1,750,000 | 1,663,595 | ||
3,452,506 | ||||||
Miscellaneous revenue: 0.17% | ||||||
Brookhaven Urban Redevelopment Agency City of Brookhaven GA Special Service Tax District Series A | 4.00 | 7-1-2042 | 3,455,000 | 3,489,797 | ||
Transportation revenue: 0.03% | ||||||
Georgia State Road & Tollway Authority I-75 S Express Lanes Project Series A CAB144A¤ | 0.00 | 6-1-2024 | 680,000 | 660,157 | ||
Utilities revenue: 5.26% | ||||||
Bartow County Development Authority Georgia Power Co.øø | 1.80 | 9-1-2029 | 1,000,000 | 839,362 | ||
Board of Water Light & Sinking Fund Commissioners of the City of Dalton | 5.00 | 3-1-2024 | 350,000 | 353,788 | ||
Board of Water Light & Sinking Fund Commissioners of the City of Dalton | 5.00 | 3-1-2025 | 400,000 | 409,278 | ||
Board of Water Light & Sinking Fund Commissioners of the City of Dalton | 5.00 | 3-1-2026 | 600,000 | 621,410 | ||
Board of Water Light & Sinking Fund Commissioners of the City of Dalton | 5.00 | 3-1-2027 | 700,000 | 734,601 | ||
Board of Water Light & Sinking Fund Commissioners of the City of Dalton | 5.00 | 3-1-2028 | 850,000 | 902,500 | ||
Board of Water Light & Sinking Fund Commissioners of the City of Dalton | 5.00 | 3-1-2029 | 1,000,000 | 1,071,995 | ||
Board of Water Light & Sinking Fund Commissioners of the City of Dalton | 5.00 | 3-1-2030 | 1,100,000 | 1,210,763 | ||
Board of Water Light & Sinking Fund Commissioners of the City of Dalton | 5.00 | 3-1-2031 | 1,000,000 | 1,101,209 | ||
Board of Water Light & Sinking Fund Commissioners of the City of Dalton | 5.00 | 3-1-2032 | 1,000,000 | 1,100,574 | ||
Development Authority of Appling County Oglethorpe Power Corp. Series Aøø | 1.50 | 1-1-2038 | 2,500,000 | 2,362,040 | ||
Development Authority of Burke County Georgia Power Co.øø | 1.70 | 12-1-2049 | 3,500,000 | 3,387,287 | ||
Development Authority of Burke County Oglethorpe Power Corp. Series Eøø | 3.25 | 11-1-2045 | 3,000,000 | 2,956,099 | ||
Main Street Natural Gas, Inc. Series A | 4.00 | 12-1-2028 | 3,000,000 | 2,977,423 | ||
Main Street Natural Gas, Inc. Series A | 4.00 | 12-1-2029 | 4,500,000 | 4,438,467 | ||
Main Street Natural Gas, Inc. Series A (Royal Bank of Canada LIQ)øø | 4.00 | 4-1-2048 | 2,640,000 | 2,642,607 | ||
Main Street Natural Gas, Inc. Series Bøø | 4.00 | 8-1-2049 | 10,000,000 | 10,028,668 | ||
Main Street Natural Gas, Inc. Series B | 5.00 | 6-1-2028 | 2,500,000 | 2,579,063 | ||
Main Street Natural Gas, Inc. Series B | 5.00 | 6-1-2029 | 1,630,000 | 1,687,451 | ||
Main Street Natural Gas, Inc. Series Bøø | 5.00 | 7-1-2053 | 1,665,000 | 1,739,590 | ||
Main Street Natural Gas, Inc. Series B (1 Month LIBOR+0.75%)± | 4.21 | 4-1-2048 | 4,700,000 | 4,698,684 | ||
Main Street Natural Gas, Inc. Series Cøø | 4.00 | 3-1-2050 | 10,235,000 | 10,173,424 | ||
Main Street Natural Gas, Inc. Series Cøø | 4.00 | 5-1-2052 | 7,265,000 | 7,155,052 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 19
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue (continued) | ||||||
Main Street Natural Gas, Inc. Series C144Aøø## | 4.00 % | 8-1-2052 | $ | 28,000,000 | $27,063,238 | |
Municipal Electric Authority of Georgia Series A | 5.00 | 1-1-2027 | 2,160,000 | 2,267,964 | ||
Municipal Electric Authority of Georgia Series A | 5.00 | 1-1-2028 | 2,305,000 | 2,461,141 | ||
Municipal Electric Authority of Georgia Series A | 5.00 | 1-1-2029 | 1,140,000 | 1,234,109 | ||
Municipal Electric Authority of Georgia Series A | 5.00 | 1-1-2030 | 1,025,000 | 1,109,996 | ||
Municipal Electric Authority of Georgia Series A | 5.00 | 1-1-2031 | 1,385,000 | 1,495,522 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A | 5.00 | 1-1-2027 | 300,000 | 314,995 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A | 5.00 | 1-1-2028 | 400,000 | 427,096 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A | 5.00 | 1-1-2029 | 400,000 | 427,410 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series B | 5.00 | 1-1-2028 | 1,000,000 | 1,054,940 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series B | 5.00 | 1-1-2029 | 910,000 | 963,808 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project J Series A (AGM Insured) | 5.00 | 7-1-2030 | 350,000 | 391,579 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project J Series A (AGM Insured) | 5.00 | 7-1-2032 | 1,100,000 | 1,249,988 | ||
105,633,121 | ||||||
116,357,090 | ||||||
Guam: 0.21% | ||||||
Airport revenue: 0.04% | ||||||
Antonio B Won Pat International Airport Authority Series A AMT%% | 5.25 | 10-1-2029 | 700,000 | 719,824 | ||
Miscellaneous revenue: 0.17% | ||||||
Guam Department of Education Series A | 3.63 | 2-1-2025 | 575,000 | 559,045 | ||
Guam Department of Education Series A | 4.25 | 2-1-2030 | 1,355,000 | 1,340,203 | ||
Territory of Guam Series F | 5.00 | 1-1-2030 | 750,000 | 783,153 | ||
Territory of Guam Series F | 5.00 | 1-1-2031 | 750,000 | 787,020 | ||
3,469,421 | ||||||
4,189,245 | ||||||
Hawaii: 0.37% | ||||||
Health revenue: 0.37% | ||||||
State of Hawaii Department of Budget & Finance Queen’s Health Systems Obligated Group Series B (SIFMA Municipal Swap+0.45%)± | 4.46 | 7-1-2039 | 7,405,000 | 7,405,000 | ||
Illinois: 17.07% | ||||||
Airport revenue: 2.48% | ||||||
Chicago Midway International Airport Series A AMT | 5.00 | 1-1-2026 | 7,000,000 | 7,022,679 | ||
Chicago Midway International Airport Series A AMT | 5.00 | 1-1-2030 | 5,925,000 | 5,946,951 | ||
Chicago Midway International Airport Series A AMT | 5.50 | 1-1-2027 | 3,925,000 | 3,928,058 | ||
Chicago O’Hare International Airport Series A AMT | 5.00 | 1-1-2028 | 10,820,000 | 10,973,042 | ||
Chicago O’Hare International Airport Series C AMT | 5.00 | 1-1-2031 | 530,000 | 582,187 | ||
Chicago O’Hare International Airport Series C AMT | 5.00 | 1-1-2032 | 400,000 | 443,715 | ||
The accompanying notes are an integral part of these financial statements.
20 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Airport revenue (continued) | ||||||
Chicago O’Hare International Airport Series C AMT | 5.00 % | 1-1-2033 | $ | 400,000 | $443,195 | |
Chicago O’Hare International Airport Series C AMT | 5.00 | 1-1-2034 | 325,000 | 359,293 | ||
Chicago O’Hare International Airport Series D AMT | 5.00 | 1-1-2025 | 2,450,000 | 2,493,126 | ||
Chicago O’Hare International Airport Passenger Facility Charge Revenue | 5.25 | 1-1-2024 | 1,665,000 | 1,667,002 | ||
Chicago O’Hare International Airport Passenger Facility Charge Revenue Series B AMT | 4.00 | 1-1-2029 | 10,955,000 | 10,943,559 | ||
Chicago O’Hare International Airport Passenger Facility Charge Revenue Series B AMT | 5.00 | 1-1-2032 | 5,125,000 | 5,127,241 | ||
49,930,048 | ||||||
Education revenue: 0.66% | ||||||
Illinois Finance Authority Acero Charter Schools, Inc. Obligated Group144A | 4.00 | 10-1-2028 | 580,000 | 546,115 | ||
Illinois Finance Authority Acero Charter Schools, Inc. Obligated Group144A | 4.00 | 10-1-2030 | 625,000 | 576,989 | ||
Illinois Finance Authority Acero Charter Schools, Inc. Obligated Group144A | 4.00 | 10-1-2031 | 985,000 | 899,727 | ||
Illinois Finance Authority Acero Charter Schools, Inc. Obligated Group144A | 4.00 | 10-1-2032 | 680,000 | 613,258 | ||
Illinois Finance Authority AIM Art in Motion Series A144A | 4.00 | 7-1-2031 | 1,735,000 | 1,512,274 | ||
Illinois Finance Authority AIM Art in Motion Series A144A | 5.00 | 7-1-2041 | 4,475,000 | 3,744,012 | ||
Illinois Finance Authority Bradley University Series C | 5.00 | 8-1-2028 | 1,860,000 | 1,916,096 | ||
Southern Illinois University Series A (BAM Insured) | 4.00 | 4-1-2028 | 725,000 | 739,905 | ||
Southern Illinois University Series A (BAM Insured) | 5.00 | 4-1-2029 | 675,000 | 725,503 | ||
Southern Illinois University Series A (BAM Insured) | 5.00 | 4-1-2030 | 800,000 | 866,928 | ||
Southern Illinois University Series A (BAM Insured) | 5.00 | 4-1-2031 | 570,000 | 622,525 | ||
Southern Illinois University Series A (BAM Insured) | 5.00 | 4-1-2032 | 500,000 | 547,153 | ||
13,310,485 | ||||||
GO revenue: 9.00% | ||||||
Chicago Board of Education Series A | 5.00 | 12-1-2033 | 5,300,000 | 5,572,778 | ||
Chicago Board of Education Series A | 5.00 | 12-1-2034 | 1,500,000 | 1,568,562 | ||
Chicago Board of Education Series A | 5.00 | 12-1-2035 | 2,560,000 | 2,659,308 | ||
Chicago Board of Education Series A | 5.00 | 12-1-2040 | 1,500,000 | 1,516,581 | ||
Chicago Board of Education Series A (AGM Insured) | 5.00 | 12-1-2024 | 3,000,000 | 3,043,039 | ||
Chicago Board of Education Series B | 5.00 | 12-1-2026 | 2,000,000 | 2,067,519 | ||
Chicago Board of Education Series B | 5.00 | 12-1-2027 | 1,625,000 | 1,692,489 | ||
Chicago Board of Education Series B | 5.00 | 12-1-2031 | 2,500,000 | 2,639,094 | ||
Chicago Board of Education Series C | 5.00 | 12-1-2034 | 1,945,000 | 1,991,045 | ||
Chicago Board of Education Series C | 5.25 | 12-1-2039 | 5,095,000 | 5,106,352 | ||
Chicago Board of Education Dedicated Capital Improvement Tax | 5.25 | 4-1-2033 | 1,375,000 | 1,545,296 | ||
Chicago Board of Education Dedicated Capital Improvement Tax | 5.25 | 4-1-2034 | 1,625,000 | 1,817,938 | ||
Chicago Park District Series A | 5.00 | 1-1-2024 | 550,000 | 553,822 | ||
Chicago Park District Series A | 5.00 | 1-1-2025 | 625,000 | 638,732 | ||
Chicago Park District Series C | 5.00 | 1-1-2024 | 410,000 | 412,849 | ||
Chicago Park District Series E | 5.00 | 11-15-2023 | 1,295,000 | 1,301,536 | ||
City of Berwyn Series A | 5.00 | 12-1-2028 | 3,000,000 | 3,058,723 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 21
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
City of Berwyn Series A | 5.00 % | 12-1-2029 | $ | 2,345,000 | $2,384,213 | |
City of Chicago | 5.13 | 1-1-2027 | 1,700,000 | 1,747,637 | ||
City of Chicago | 5.50 | 1-1-2032 | 1,145,000 | 1,168,749 | ||
City of Chicago (NPFGC Insured)¤ | 0.00 | 1-1-2024 | 14,800,000 | 14,516,679 | ||
City of Chicago Series A | 5.00 | 1-1-2025 | 2,000,000 | 2,039,065 | ||
City of Chicago Series A | 5.00 | 1-1-2027 | 8,000,000 | 8,373,446 | ||
City of Chicago Series A | 5.00 | 1-1-2028 | 6,125,000 | 6,508,830 | ||
City of Chicago Series A | 5.25 | 1-1-2036 | 1,500,000 | 1,642,873 | ||
City of Chicago Series C | 5.00 | 1-1-2026 | 970,000 | 1,003,606 | ||
City of Decatur | 5.00 | 3-1-2024 | 1,405,000 | 1,406,980 | ||
City of Waukegan Series A (AGM Insured) | 4.00 | 12-30-2030 | 980,000 | 994,523 | ||
City of Waukegan Series A (AGM Insured) | 5.00 | 12-30-2031 | 1,000,000 | 1,025,727 | ||
Community Unit School District No. 427 DeKalb & Kane Counties Illinois Series B CAB (AGM Insured)¤ | 0.00 | 1-1-2024 | 5,630,000 | 5,532,017 | ||
Cook County Community Consolidated School District No. 15 Palatine | 5.00 | 12-1-2026 | 2,540,000 | 2,644,219 | ||
Cook County School District No. 153 Homewood Series A (AGM Insured)¤ | 0.00 | 12-15-2023 | 1,225,000 | 1,205,106 | ||
Cook County School District No. 99 Cicero | 5.00 | 12-1-2024 | 1,000,000 | 1,022,743 | ||
Cook County School District No. 99 Cicero | 5.00 | 12-1-2025 | 1,000,000 | 1,040,560 | ||
Cook County School District No. 99 Cicero (BAM Insured) | 5.00 | 12-1-2026 | 3,030,000 | 3,217,926 | ||
Cook County School District No. 99 Cicero (BAM Insured) | 5.00 | 12-1-2027 | 2,950,000 | 3,189,395 | ||
Cook County School District No. 99 Cicero (BAM Insured) | 5.00 | 12-1-2028 | 2,285,000 | 2,517,864 | ||
Cook County Township High School District No. 227 Rich Township | 3.00 | 12-1-2024 | 965,000 | 960,210 | ||
County of Cook Series A | 5.00 | 11-15-2027 | 2,000,000 | 2,149,453 | ||
County of Cook Series A | 5.00 | 11-15-2030 | 2,200,000 | 2,314,211 | ||
County of Cook Series A | 5.00 | 11-15-2033 | 3,850,000 | 4,294,887 | ||
County of Cook Series A (AGM Insured) | 5.00 | 11-15-2026 | 3,000,000 | 3,177,293 | ||
Kane Cook & DuPage Counties School District No. U-46 Elgin Series A | 5.00 | 1-1-2028 | 1,555,000 | 1,563,624 | ||
Kane Cook & DuPage Counties School District No. U-46 Elgin Series D | 5.00 | 1-1-2032 | 1,025,000 | 1,029,548 | ||
Madison-Macoupin Etc Counties Community College District No. 536 Series A (BAM Insured) | 5.00 | 11-1-2025 | 1,620,000 | 1,658,798 | ||
Madison-Macoupin Etc Counties Community College District No. 536 Series A (BAM Insured) | 5.00 | 11-1-2026 | 1,410,000 | 1,445,800 | ||
Peoria City School District No. 150 Series A (AGM Insured) | 4.00 | 12-1-2027 | 1,000,000 | 1,034,087 | ||
Peoria City School District No. 150 Series A (AGM Insured) | 4.00 | 12-1-2028 | 950,000 | 983,947 | ||
Peoria City School District No. 150 Series A (AGM Insured) | 4.00 | 12-1-2029 | 4,000,000 | 4,149,336 | ||
State of Illinois | 5.00 | 11-1-2025 | 5,000,000 | 5,162,210 | ||
State of Illinois | 5.00 | 2-1-2026 | 2,000,000 | 2,073,012 | ||
State of Illinois | 5.50 | 7-1-2033 | 4,000,000 | 4,001,183 | ||
State of Illinois (AGM Insured) | 5.00 | 7-1-2023 | 4,875,000 | 4,875,000 | ||
State of Illinois Series A | 5.00 | 11-1-2023 | 8,955,000 | 8,992,239 | ||
State of Illinois Series A | 5.00 | 10-1-2026 | 3,000,000 | 3,142,986 | ||
State of Illinois Series A | 5.00 | 12-1-2035 | 650,000 | 681,258 | ||
State of Illinois Series B | 5.00 | 5-1-2037 | 5,000,000 | 5,403,004 | ||
The accompanying notes are an integral part of these financial statements.
22 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
Will County Community High School District No. 210 Lincoln-Way CAB (AGM Insured)¤ | 0.00 % | 1-1-2025 | $ | 14,385,000 | $13,568,644 | |
Will County Community High School District No. 210 Lincoln-Way CAB (AGM Insured)¤ | 0.00 | 1-1-2026 | 8,695,000 | 7,895,947 | ||
180,924,498 | ||||||
Health revenue: 0.53% | ||||||
Illinois Finance Authority Advocate Aurora Health Obligated Group | 5.00 | 8-1-2038 | 1,520,000 | 1,546,013 | ||
Illinois Finance Authority Advocate Aurora Health Obligated Group Series 2008-A-2 | 4.00 | 11-1-2030 | 3,000,000 | 3,026,978 | ||
Illinois Finance Authority Ascension Health Credit Group Series C | 4.00 | 2-15-2041 | 4,785,000 | 4,652,527 | ||
Illinois Finance Authority Lutheran Life Communities Obligated Group Series A | 4.00 | 11-1-2024 | 420,000 | 412,881 | ||
Illinois Finance Authority Washington & Jane Smith Community - Orland Park | 4.00 | 10-15-2025 | 295,000 | 287,962 | ||
Illinois Finance Authority Washington & Jane Smith Community - Orland Park | 4.00 | 10-15-2028 | 670,000 | 628,254 | ||
10,554,615 | ||||||
Housing revenue: 0.72% | ||||||
Illinois Housing Development Authority Series C | 2.90 | 8-1-2031 | 1,000,000 | 938,361 | ||
Illinois Sports Facilities Authority | 5.00 | 6-15-2028 | 1,000,000 | 1,026,591 | ||
Illinois Sports Facilities Authority (BAM Insured) | 5.00 | 6-15-2028 | 3,015,000 | 3,145,652 | ||
Illinois Sports Facilities Authority (BAM Insured) | 5.00 | 6-15-2030 | 5,250,000 | 5,540,220 | ||
Metropolitan Pier & Exposition Authority CAB (NPFGC Insured)¤ | 0.00 | 12-15-2023 | 1,125,000 | 1,105,320 | ||
Metropolitan Pier & Exposition Authority Series A (NPFGC Insured)¤ | 0.00 | 12-15-2029 | 1,750,000 | 1,372,615 | ||
Northern Illinois University (BAM Insured) | 5.00 | 10-1-2027 | 350,000 | 369,341 | ||
Northern Illinois University (BAM Insured) | 5.00 | 10-1-2029 | 650,000 | 700,107 | ||
Northern Illinois University (BAM Insured) | 5.00 | 10-1-2030 | 325,000 | 351,698 | ||
14,549,905 | ||||||
Miscellaneous revenue: 0.13% | ||||||
City of Chicago Special Assessment Revenue Refunding Bonds Lakeshore East Project144A | 3.20 | 12-1-2029 | 300,000 | 277,139 | ||
City of Chicago Special Assessment Revenue Refunding Bonds Lakeshore East Project144A | 3.29 | 12-1-2030 | 325,000 | 299,294 | ||
City of Chicago Special Assessment Revenue Refunding Bonds Lakeshore East Project144A | 3.38 | 12-1-2031 | 348,000 | 318,570 | ||
City of Chicago Special Assessment Revenue Refunding Bonds Lakeshore East Project144A | 3.45 | 12-1-2032 | 275,000 | 250,723 | ||
Illinois Sports Facilities Authority (Ambac Insured)¤ | 0.00 | 6-15-2026 | 1,740,000 | 1,527,335 | ||
2,673,061 | ||||||
Tax revenue: 2.86% | ||||||
City of St. Charles Sales Tax Revenue | 4.00 | 1-1-2024 | 885,000 | 880,365 | ||
City of St. Charles Sales Tax Revenue | 4.00 | 1-1-2025 | 925,000 | 909,029 | ||
County of Cook Sales Tax Revenue | 5.00 | 11-15-2029 | 1,000,000 | 1,069,907 | ||
County of Cook Sales Tax Revenue Series A | 5.00 | 11-15-2029 | 675,000 | 752,373 | ||
County of Cook Sales Tax Revenue Series A | 5.00 | 11-15-2030 | 3,575,000 | 4,032,718 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 23
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue (continued) | ||||||
County of Cook Sales Tax Revenue Series A | 5.00 % | 11-15-2031 | $ | 2,250,000 | $2,502,981 | |
Illinois Sports Facilities Authority | 5.00 | 6-15-2024 | 4,135,000 | 4,165,595 | ||
Regional Transportation Authority Series A (AGM Insured) | 5.25 | 6-1-2024 | 9,995,000 | 10,149,475 | ||
Regional Transportation Authority Series Bøø | 3.90 | 6-1-2025 | 3,250,000 | 3,250,000 | ||
Sales Tax Securitization Corp. Series A | 5.00 | 1-1-2026 | 4,815,000 | 4,997,246 | ||
Sales Tax Securitization Corp. Series A | 5.00 | 1-1-2027 | 1,000,000 | 1,056,721 | ||
Sales Tax Securitization Corp. Series A | 5.00 | 1-1-2028 | 5,000,000 | 5,381,879 | ||
State of Illinois Sales Tax Revenue | 5.00 | 6-15-2025 | 9,025,000 | 9,033,262 | ||
State of Illinois Sales Tax Revenue Series 1 (NPFGC Insured) | 6.00 | 6-15-2024 | 515,000 | 526,662 | ||
State of Illinois Sales Tax Revenue Series 1 (NPFGC Insured) | 6.00 | 6-15-2025 | 8,365,000 | 8,759,969 | ||
57,468,182 | ||||||
Utilities revenue: 0.25% | ||||||
City of Springfield Electric Revenue (AGM Insured) | 4.00 | 3-1-2040 | 2,000,000 | 1,942,986 | ||
Northern Illinois Municipal Power Agency Series A | 4.00 | 12-1-2032 | 3,000,000 | 3,018,593 | ||
4,961,579 | ||||||
Water & sewer revenue: 0.44% | ||||||
City of Chicago Wastewater Transmission Revenue Series B (AGM Insured) | 5.00 | 1-1-2031 | 3,140,000 | 3,296,135 | ||
City of Chicago Waterworks Revenue | 5.00 | 11-1-2028 | 2,560,000 | 2,677,595 | ||
City of Chicago Waterworks Revenue Series 2 (AGM Insured) | 5.00 | 11-1-2030 | 2,620,000 | 2,786,524 | ||
8,760,254 | ||||||
343,132,627 | ||||||
Indiana: 2.23% | ||||||
Education revenue: 0.01% | ||||||
Indiana Finance Authority KIPP Indianapolis, Inc. Series A | 4.00 | 7-1-2030 | 210,000 | 197,503 | ||
Industrial development revenue: 0.54% | ||||||
Indiana Finance Authority East End Crossing Partners LLC Series A | 5.00 | 7-1-2044 | 5,550,000 | 5,550,000 | ||
Indiana Finance Authority East End Crossing Partners LLC Series A | 5.00 | 7-1-2048 | 5,215,000 | 5,215,000 | ||
10,765,000 | ||||||
Miscellaneous revenue: 1.08% | ||||||
Indiana Bond Bank Hamilton Company Project CAB¤ | 0.00 | 7-15-2026 | 735,000 | 661,393 | ||
Indiana Bond Bank Hamilton Company Project CAB¤ | 0.00 | 7-15-2027 | 630,000 | 549,158 | ||
Indianapolis Local Public Improvement Bond Bank Series A | 5.00 | 6-1-2028 | 5,710,000 | 6,187,174 | ||
Indianapolis Local Public Improvement Bond Bank Series A | 5.00 | 6-1-2029 | 6,600,000 | 7,276,775 | ||
Indianapolis Local Public Improvement Bond Bank Series A | 5.00 | 6-1-2030 | 6,300,000 | 7,052,197 | ||
21,726,697 | ||||||
Utilities revenue: 0.60% | ||||||
Indiana Finance Authority Indianapolis Power & Light Co. Series Aøø | 0.75 | 12-1-2038 | 3,000,000 | 2,669,813 | ||
The accompanying notes are an integral part of these financial statements.
24 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue (continued) | ||||||
Indiana Finance Authority Ohio Valley Electric Corp. Series A | 4.25 % | 11-1-2030 | $ | 7,630,000 | $7,589,302 | |
Indiana Finance Authority Ohio Valley Electric Corp. Series B | 3.00 | 11-1-2030 | 2,000,000 | 1,810,453 | ||
12,069,568 | ||||||
44,758,768 | ||||||
Iowa: 0.47% | ||||||
Education revenue: 0.13% | ||||||
Iowa Student Loan Liquidity Corp. Series B AMT | 5.00 | 12-1-2025 | 1,295,000 | 1,329,981 | ||
Iowa Student Loan Liquidity Corp. Series B AMT | 5.00 | 12-1-2026 | 1,215,000 | 1,265,964 | ||
2,595,945 | ||||||
Utilities revenue: 0.25% | ||||||
PEFA, Inc.øø | 5.00 | 9-1-2049 | 4,975,000 | 5,072,558 | ||
Water & sewer revenue: 0.09% | ||||||
Xenia Rural Water District | 5.00 | 12-1-2031 | 1,615,000 | 1,729,212 | ||
9,397,715 | ||||||
Kansas: 0.49% | ||||||
Health revenue: 0.05% | ||||||
City of Wichita Presbyterian Manors Obligated Group | 5.00 | 5-15-2026 | 1,105,000 | 1,081,353 | ||
Tax revenue: 0.44% | ||||||
Wyandotte County-Kansas City Unified Government Sales Tax Revenue | 4.00 | 12-1-2028 | 205,000 | 191,998 | ||
Wyandotte County-Kansas City Unified Government Sales Tax Revenue CAB144A¤ | 0.00 | 9-1-2034 | 22,360,000 | 8,622,828 | ||
8,814,826 | ||||||
9,896,179 | ||||||
Kentucky: 3.33% | ||||||
Education revenue: 0.16% | ||||||
City of Columbia Lindsey Wilson College, Inc. | 3.00 | 12-1-2024 | 1,585,000 | 1,560,789 | ||
City of Columbia Lindsey Wilson College, Inc. | 4.00 | 12-1-2029 | 570,000 | 541,600 | ||
City of Columbia Lindsey Wilson College, Inc. | 4.00 | 12-1-2030 | 590,000 | 555,418 | ||
City of Columbia Lindsey Wilson College, Inc. | 4.00 | 12-1-2031 | 615,000 | 572,822 | ||
3,230,629 | ||||||
Health revenue: 0.34% | ||||||
Kentucky EDFA Kenton Housing Obligated Group | 5.00 | 11-15-2025 | 945,000 | 922,793 | ||
Kentucky EDFA Norton Healthcare Obligated Group Series B CAB (NPFGC Insured)¤ | 0.00 | 10-1-2026 | 3,000,000 | 2,648,175 | ||
Louisville/Jefferson County Metropolitan Government Norton Healthcare Obligated Group Series Cøø | 5.00 | 10-1-2047 | 3,000,000 | 3,107,762 | ||
6,678,730 | ||||||
Industrial development revenue: 0.12% | ||||||
County of Boone Duke Energy Kentucky, Inc. Series A | 3.70 | 8-1-2027 | 2,500,000 | 2,455,854 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 25
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue: 0.05% | ||||||
Kentucky State University (BAM Insured) | 3.00 % | 11-1-2032 | $ | 320,000 | $309,267 | |
Kentucky State University (BAM Insured) | 4.00 | 11-1-2033 | 130,000 | 137,457 | ||
Kentucky State University (BAM Insured) | 4.00 | 11-1-2034 | 130,000 | 136,898 | ||
Kentucky State University (BAM Insured) | 5.00 | 11-1-2029 | 200,000 | 223,889 | ||
Kentucky State University (BAM Insured) | 5.00 | 11-1-2030 | 175,000 | 199,019 | ||
1,006,530 | ||||||
Utilities revenue: 2.66% | ||||||
County of Trimble Louisville Gas & Electric Co. Series A | 0.63 | 9-1-2026 | 3,250,000 | 2,910,887 | ||
County of Trimble Louisville Gas & Electric Co. Series A AMTøø | 1.30 | 9-1-2044 | 6,250,000 | 5,264,283 | ||
County of Trimble Louisville Gas & Electric Co. Series B AMT | 1.35 | 11-1-2027 | 6,200,000 | 5,551,615 | ||
Kentucky Public Energy Authority Series A-1øø | 4.00 | 12-1-2049 | 3,755,000 | 3,736,747 | ||
Kentucky Public Energy Authority Series Bøø | 4.00 | 1-1-2049 | 14,725,000 | 14,723,561 | ||
Kentucky Public Energy Authority Series Cøø | 4.00 | 2-1-2050 | 14,960,000 | 14,790,961 | ||
Kentucky Public Energy Authority Series C-1øø | 4.00 | 12-1-2049 | 4,775,000 | 4,752,652 | ||
Louisville/Jefferson County Metropolitan Government Louisville Gas & Electric Co. Series B AMT | 1.35 | 11-1-2027 | 2,000,000 | 1,765,493 | ||
53,496,199 | ||||||
66,867,942 | ||||||
Louisiana: 1.62% | ||||||
Airport revenue: 0.23% | ||||||
New Orleans Aviation Board Louis Armstrong New Orleans International Airport Series A | 5.00 | 1-1-2032 | 1,000,000 | 1,023,464 | ||
New Orleans Aviation Board Louis Armstrong New Orleans International Airport Customer Facility Charge Revenue (AGM Insured) | 5.00 | 1-1-2031 | 1,250,000 | 1,343,698 | ||
New Orleans Aviation Board Louis Armstrong New Orleans International Airport Customer Facility Charge Revenue (AGM Insured) | 5.00 | 1-1-2032 | 2,000,000 | 2,145,033 | ||
4,512,195 | ||||||
GO revenue: 0.10% | ||||||
State of Louisiana Series A | 5.00 | 2-1-2027 | 2,000,000 | 2,019,375 | ||
Industrial development revenue: 0.88% | ||||||
Parish of St. John the Baptist Marathon Oil Corp. Series 2017-B-2øø | 2.38 | 6-1-2037 | 8,330,000 | 7,904,869 | ||
Parish of St. John the Baptist Marathon Oil Corp. Series A-1øø | 4.05 | 6-1-2037 | 3,250,000 | 3,235,524 | ||
Parish of St. John the Baptist Marathon Oil Corp. Series A-3øø | 2.20 | 6-1-2037 | 7,000,000 | 6,608,680 | ||
17,749,073 | ||||||
Miscellaneous revenue: 0.06% | ||||||
Louisiana Local Government Environmental Facilities & CDA Parish of Jefferson144A | 4.00 | 11-1-2044 | 1,380,000 | 1,242,113 | ||
Water & sewer revenue: 0.35% | ||||||
City of New Orleans Sewerage Service Revenue Series B | 5.00 | 6-1-2026 | 350,000 | 366,420 | ||
City of New Orleans Sewerage Service Revenue Series B | 5.00 | 6-1-2027 | 600,000 | 639,956 | ||
City of New Orleans Sewerage Service Revenue Series B | 5.00 | 6-1-2028 | 400,000 | 433,806 | ||
The accompanying notes are an integral part of these financial statements.
26 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Water & sewer revenue (continued) | ||||||
City of New Orleans Sewerage Service Revenue Series B | 5.00 % | 6-1-2029 | $ | 600,000 | $659,146 | |
City of New Orleans Sewerage Service Revenue Series B | 5.00 | 6-1-2030 | 600,000 | 665,726 | ||
East Baton Rouge Sewerage Commission Series Aøø | 1.30 | 2-1-2041 | 3,500,000 | 2,965,573 | ||
Greater Ouachita Water Co. (BAM Insured) | 3.00 | 9-1-2023 | 250,000 | 249,752 | ||
Greater Ouachita Water Co. (BAM Insured) | 5.00 | 9-1-2024 | 460,000 | 468,912 | ||
Greater Ouachita Water Co. (BAM Insured) | 5.00 | 9-1-2025 | 510,000 | 528,979 | ||
6,978,270 | ||||||
32,501,026 | ||||||
Maine: 0.14% | ||||||
Health revenue: 0.14% | ||||||
Maine Health & Higher Educational Facilities Authority Series A | 5.00 | 7-1-2027 | 750,000 | 797,221 | ||
Maine Health & Higher Educational Facilities Authority Northern Light Health Obligated Group Series C | 5.00 | 7-1-2039 | 1,865,000 | 1,943,509 | ||
2,740,730 | ||||||
Maryland: 2.15% | ||||||
Education revenue: 0.11% | ||||||
County of Prince George’s Chesapeake Lighthouse Foundation, Inc. Series A | 5.00 | 8-1-2026 | 1,005,000 | 996,234 | ||
Maryland Health & Higher Educational Facilities Authority Stevenson University, Inc. Series A | 5.00 | 6-1-2029 | 300,000 | 320,071 | ||
Maryland Health & Higher Educational Facilities Authority Stevenson University, Inc. Series A | 5.00 | 6-1-2031 | 350,000 | 379,874 | ||
Maryland Health & Higher Educational Facilities Authority Stevenson University, Inc. Series A | 5.00 | 6-1-2033 | 425,000 | 457,601 | ||
2,153,780 | ||||||
Health revenue: 0.09% | ||||||
Maryland Health & Higher Educational Facilities Authority Adventist Healthcare Obligated Group | 5.00 | 1-1-2026 | 495,000 | 506,839 | ||
Maryland Health & Higher Educational Facilities Authority Adventist Healthcare Obligated Group | 5.00 | 1-1-2027 | 430,000 | 445,764 | ||
Maryland Health & Higher Educational Facilities Authority Adventist Healthcare Obligated Group | 5.00 | 1-1-2028 | 300,000 | 314,961 | ||
Maryland Health & Higher Educational Facilities Authority Adventist Healthcare Obligated Group | 5.00 | 1-1-2029 | 290,000 | 307,665 | ||
Maryland Health & Higher Educational Facilities Authority Adventist Healthcare Obligated Group | 5.00 | 1-1-2030 | 285,000 | 304,940 | ||
1,880,169 | ||||||
Housing revenue: 1.35% | ||||||
Maryland Community Development Administration Series C | 3.00 | 4-1-2024 | 4,600,000 | 4,546,209 | ||
Maryland Community Development Administration Woodside Preservation LP Series A144A | 1.33 | 1-1-2024 | 6,000,000 | 5,887,555 | ||
Maryland Community Development Administration WV3 Housing Associates LP Series G (FHA Insured) | 1.05 | 12-1-2023 | 11,000,000 | 10,822,094 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 27
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
Maryland Stadium Authority Series A%% | 5.00 % | 3-1-2036 | $ | 2,890,000 | $3,317,751 | |
Maryland Stadium Authority Series A%% | 5.00 | 3-1-2037 | 2,250,000 | 2,557,514 | ||
27,131,123 | ||||||
Tax revenue: 0.46% | ||||||
State of Maryland Department of Transportation | 4.00 | 12-15-2027 | 9,260,000 | 9,295,645 | ||
Transportation revenue: 0.14% | ||||||
Maryland Economic Development Corp. Purple Line Transit Partners LLC Series A AMT | 5.00 | 11-12-2028 | 2,750,000 | 2,840,173 | ||
43,300,890 | ||||||
Massachusetts: 1.06% | ||||||
Airport revenue: 0.45% | ||||||
Massachusetts Port Authority Series E AMT | 5.00 | 7-1-2031 | 1,000,000 | 1,111,706 | ||
Massachusetts Port Authority Series E AMT | 5.00 | 7-1-2032 | 1,500,000 | 1,665,630 | ||
Massachusetts Port Authority Series E AMT | 5.00 | 7-1-2033 | 3,000,000 | 3,327,664 | ||
Massachusetts Port Authority Series E AMT | 5.00 | 7-1-2034 | 2,615,000 | 2,891,409 | ||
8,996,409 | ||||||
Education revenue: 0.37% | ||||||
Collegiate Charter School of Lowell | 4.00 | 6-15-2024 | 110,000 | 109,244 | ||
Collegiate Charter School of Lowell | 5.00 | 6-15-2029 | 490,000 | 494,789 | ||
Massachusetts Development Finance Agency Lasell University | 4.00 | 7-1-2029 | 340,000 | 329,598 | ||
Massachusetts Development Finance Agency Lasell University | 4.00 | 7-1-2030 | 355,000 | 342,390 | ||
Massachusetts Development Finance Agency Lasell University | 4.00 | 7-1-2031 | 370,000 | 354,341 | ||
Massachusetts Development Finance Agency SABIS International Charter School | 5.00 | 4-15-2025 | 430,000 | 430,689 | ||
Massachusetts Educational Financing Authority Series B AMT | 5.00 | 7-1-2026 | 1,000,000 | 1,033,574 | ||
Massachusetts Educational Financing Authority Series B AMT | 5.00 | 7-1-2027 | 1,500,000 | 1,567,607 | ||
Massachusetts Educational Financing Authority Series B AMT | 5.00 | 7-1-2028 | 1,250,000 | 1,319,276 | ||
Massachusetts Educational Financing Authority Series B AMT | 5.00 | 7-1-2029 | 1,400,000 | 1,492,167 | ||
7,473,675 | ||||||
Health revenue: 0.24% | ||||||
Massachusetts Development Finance Agency Mass General Brigham, Inc. Series T-1 (SIFMA Municipal Swap+0.60%)144A± | 4.61 | 7-1-2049 | 2,650,000 | 2,620,835 | ||
Massachusetts Development Finance Agency Milford Regional Medical Center Obligated Group Series G144A | 5.00 | 7-15-2026 | 150,000 | 149,974 | ||
Massachusetts Development Finance Agency Milford Regional Medical Center Obligated Group Series G144A | 5.00 | 7-15-2027 | 160,000 | 160,119 | ||
Massachusetts Development Finance Agency Milford Regional Medical Center Obligated Group Series G144A | 5.00 | 7-15-2028 | 175,000 | 175,009 | ||
Massachusetts Development Finance Agency Milford Regional Medical Center Obligated Group Series G144A | 5.00 | 7-15-2029 | 300,000 | 299,358 | ||
Massachusetts Development Finance Agency Milford Regional Medical Center Obligated Group Series G144A | 5.00 | 7-15-2030 | 320,000 | 317,634 | ||
Massachusetts Development Finance Agency Milford Regional Medical Center Obligated Group Series G144A | 5.00 | 7-15-2031 | 350,000 | 347,198 | ||
The accompanying notes are an integral part of these financial statements.
28 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
Massachusetts Development Finance Agency Milford Regional Medical Center Obligated Group Series G144A | 5.00 % | 7-15-2032 | $ | 400,000 | $393,159 | |
Massachusetts Development Finance Agency National Senior Communities, Inc. Obligated Group144A | 4.00 | 11-15-2023 | 310,000 | 309,201 | ||
4,772,487 | ||||||
21,242,571 | ||||||
Michigan: 1.98% | ||||||
Airport revenue: 0.20% | ||||||
Wayne County Airport Authority Detroit Metropolitan Series F AMT | 5.00 | 12-1-2030 | 4,000,000 | 4,114,356 | ||
Education revenue: 0.26% | ||||||
Lake Superior State University (AGM Insured) | 4.00 | 11-15-2029 | 1,220,000 | 1,269,589 | ||
Lake Superior State University (AGM Insured) | 4.00 | 11-15-2030 | 405,000 | 425,144 | ||
Lake Superior State University (AGM Insured) | 4.00 | 11-15-2031 | 400,000 | 419,750 | ||
Michigan Finance Authority Cesar Chavez Academy | 3.25 | 2-1-2024 | 90,000 | 89,205 | ||
Michigan Finance Authority College for Creative Studies | 5.00 | 12-1-2026 | 840,000 | 841,779 | ||
Michigan Finance Authority College for Creative Studies | 5.00 | 12-1-2027 | 585,000 | 586,495 | ||
Michigan Finance Authority College for Creative Studies | 5.00 | 12-1-2028 | 535,000 | 536,522 | ||
Michigan Finance Authority College for Creative Studies | 5.00 | 12-1-2029 | 590,000 | 591,894 | ||
Michigan Finance Authority College for Creative Studies | 5.00 | 12-1-2030 | 400,000 | 401,253 | ||
5,161,631 | ||||||
GO revenue: 0.10% | ||||||
Williamston Community Schools School District Series A (SBLF Insured) | 4.00 | 5-1-2024 | 1,025,000 | 1,030,663 | ||
Williamston Community Schools School District Series A (SBLF Insured) | 4.00 | 5-1-2025 | 1,000,000 | 1,014,340 | ||
2,045,003 | ||||||
Health revenue: 0.04% | ||||||
Kalamazoo Economic Development Corp. Heritage Community of Kalamazoo Obligated Group Series B1 | 2.88 | 5-15-2026 | 770,000 | 728,422 | ||
Industrial development revenue: 0.10% | ||||||
Michigan Strategic Fund Graphic Packaging International LLC AMTøø | 4.00 | 10-1-2061 | 2,000,000 | 1,989,096 | ||
Miscellaneous revenue: 0.74% | ||||||
Michigan Finance Authority City of Detroit Income Tax Revenue Series F1 | 3.88 | 10-1-2023 | 2,500,000 | 2,497,676 | ||
Michigan Finance Authority City of Detroit Income Tax Revenue Series F1 | 4.50 | 10-1-2029 | 5,685,000 | 5,682,181 | ||
Michigan Finance Authority County of Wayne | 5.00 | 11-1-2029 | 1,500,000 | 1,655,289 | ||
Michigan Finance Authority County of Wayne | 5.00 | 11-1-2028 | 865,000 | 952,559 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 29
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue (continued) | ||||||
Michigan Finance Authority Detroit Public Lighting Authority Utility Users Tax Revenue Series B | 5.00 % | 7-1-2032 | $ | 3,000,000 | $3,021,568 | |
Michigan Public Educational Facilities Authority Chandler Park Academy | 6.35 | 11-1-2028 | 1,005,000 | 1,005,595 | ||
14,814,868 | ||||||
Water & sewer revenue: 0.54% | ||||||
Michigan Finance Authority Great Lakes Water Authority Sewage Disposal System Revenue Series C-3 (AGM Insured) | 5.00 | 7-1-2031 | 3,000,000 | 3,044,979 | ||
Michigan Finance Authority Great Lakes Water Authority Water Supply System Revenue Series D1 (AGM Insured) | 5.00 | 7-1-2023 | 2,000,000 | 2,000,000 | ||
Michigan Finance Authority Great Lakes Water Authority Water Supply System Revenue Series D6 (NPFGC Insured) | 5.00 | 7-1-2023 | 3,670,000 | 3,670,000 | ||
Michigan Finance Authority Great Lakes Water Authority Water Supply System Revenue Series D6 (NPFGC Insured) | 5.00 | 7-1-2024 | 2,130,000 | 2,157,994 | ||
10,872,973 | ||||||
39,726,349 | ||||||
Minnesota: 1.35% | ||||||
Education revenue: 0.60% | ||||||
City of Cologne Cologne Academy Series A | 4.00 | 7-1-2023 | 260,000 | 260,000 | ||
City of Minneapolis Northeast College Preparatory Series A | 5.00 | 7-1-2040 | 875,000 | 776,599 | ||
City of Ramsey PACT Charter School Series A | 5.00 | 6-1-2032 | 6,500,000 | 6,522,766 | ||
City of Woodbury Series A | 4.00 | 7-1-2041 | 850,000 | 676,462 | ||
City of Woodbury Woodbury Leadership Academy Series A | 4.00 | 7-1-2031 | 690,000 | 631,343 | ||
Housing & Redevelopment Authority of The City of St. Paul Minnesota Hmong College Preparatory Academy Series A | 5.00 | 9-1-2026 | 815,000 | 815,867 | ||
Minnesota Higher Education Facilities Authority St. Catherine University Series A | 5.00 | 10-1-2024 | 545,000 | 553,018 | ||
Minnesota Higher Education Facilities Authority St. Catherine University Series A | 5.00 | 10-1-2027 | 1,035,000 | 1,090,113 | ||
Minnesota Higher Education Facilities Authority St. Catherine University Series A | 5.00 | 10-1-2029 | 660,000 | 703,786 | ||
12,029,954 | ||||||
Health revenue: 0.27% | ||||||
City of Shakopee Senior Housing Revenue Benedictine Living Community of Shakopee LLC144Aøø | 5.85 | 11-1-2058 | 5,455,000 | 5,368,786 | ||
Utilities revenue: 0.48% | ||||||
Minnesota Municipal Gas Agency Series B (Royal Bank of Canada LIQ) (U.S. SOFR+1.00%)± | 4.39 | 12-1-2052 | 10,000,000 | 9,783,790 | ||
27,182,530 | ||||||
The accompanying notes are an integral part of these financial statements.
30 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Mississippi: 0.54% | ||||||
Health revenue: 0.36% | ||||||
Mississippi Hospital Equipment & Facilities Authority Baptist Memorial Health Care Obligated Group Series A-1øø | 5.00 % | 9-1-2044 | $ | 3,000,000 | $3,097,755 | |
Mississippi Hospital Equipment & Facilities Authority North Mississippi Medical Center Obligated Group Series IIøø | 5.00 | 10-1-2040 | 3,930,000 | 4,103,809 | ||
7,201,564 | ||||||
Miscellaneous revenue: 0.18% | ||||||
Mississippi Development Bank City of Gulfport | 4.00 | 9-1-2029 | 620,000 | 635,682 | ||
Mississippi Development Bank City of Gulfport | 4.00 | 9-1-2030 | 565,000 | 576,976 | ||
Mississippi Development Bank City of Gulfport | 4.00 | 9-1-2031 | 400,000 | 406,607 | ||
Mississippi Development Bank City of Gulfport | 4.00 | 9-1-2032 | 435,000 | 439,793 | ||
Mississippi Development Bank City of Gulfport | 5.00 | 9-1-2024 | 355,000 | 361,069 | ||
Mississippi Development Bank City of Gulfport | 5.00 | 9-1-2025 | 255,000 | 263,413 | ||
Mississippi Development Bank City of Gulfport | 5.00 | 9-1-2026 | 225,000 | 236,299 | ||
Mississippi Development Bank City of Gulfport | 5.00 | 9-1-2027 | 385,000 | 411,152 | ||
Mississippi Development Bank City of Gulfport | 5.00 | 9-1-2028 | 315,000 | 341,567 | ||
3,672,558 | ||||||
10,874,122 | ||||||
Missouri: 2.82% | ||||||
Airport revenue: 0.11% | ||||||
City of St. Louis Airport Revenue Series D AMT (AGM Insured) | 5.00 | 7-1-2030 | 2,090,000 | 2,202,062 | ||
Education revenue: 0.35% | ||||||
HEFA of the State of Missouri A.T. Still University of Health Sciences Series A | 5.00 | 10-1-2026 | 925,000 | 962,808 | ||
HEFA of the State of Missouri A.T. Still University of Health Sciences Series A | 5.00 | 10-1-2027 | 975,000 | 1,028,879 | ||
HEFA of the State of Missouri A.T. Still University of Health Sciences Series A | 5.00 | 10-1-2028 | 1,025,000 | 1,094,111 | ||
HEFA of the State of Missouri Webster University | 5.00 | 4-1-2024 | 2,820,000 | 2,817,961 | ||
HEFA of the State of Missouri Webster University | 5.00 | 4-1-2025 | 600,000 | 599,262 | ||
HEFA of the State of Missouri Webster University | 5.00 | 4-1-2026 | 500,000 | 500,363 | ||
7,003,384 | ||||||
Health revenue: 1.25% | ||||||
HEFA of the State of Missouri BJC Healthcare Obligated Group Series Cøø | 5.00 | 5-1-2052 | 18,000,000 | 19,474,592 | ||
HEFA of the State of Missouri St. Luke’s Health SyStem Obligated Group | 5.00 | 11-15-2030 | 5,425,000 | 5,672,380 | ||
25,146,972 | ||||||
Housing revenue: 0.58% | ||||||
Missouri Public Utilities Commission | 0.75 | 8-1-2023 | 10,000,000 | 9,971,620 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 31
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
Missouri Southern State University Auxiliary Enterprise System Revenue | 3.00 % | 10-1-2026 | $ | 720,000 | $698,047 | |
Missouri Southern State University Auxiliary Enterprise System Revenue | 4.00 | 10-1-2031 | 1,000,000 | 961,174 | ||
11,630,841 | ||||||
Miscellaneous revenue: 0.37% | ||||||
Kansas City IDA Airport Revenue Series B AMT | 5.00 | 3-1-2028 | 3,000,000 | 3,172,095 | ||
Kansas City IDA Airport Revenue Series B AMT | 5.00 | 3-1-2030 | 2,000,000 | 2,140,802 | ||
Riverside-Quindaro Bend Levee District of Platte County Project L-385 | 5.00 | 3-1-2024 | 1,000,000 | 1,006,350 | ||
Riverside-Quindaro Bend Levee District of Platte County Project L-385 | 5.00 | 3-1-2025 | 1,105,000 | 1,117,660 | ||
7,436,907 | ||||||
Tax revenue: 0.11% | ||||||
Branson IDA Series A | 4.00 | 11-1-2023 | 750,000 | 748,502 | ||
City of Richmond Heights | 5.63 | 11-1-2025 | 720,000 | 706,849 | ||
City of St. Ann Northwest Plaza Redevelopment Series A144A | 4.63 | 11-1-2030 | 760,000 | 737,668 | ||
2,193,019 | ||||||
Water & sewer revenue: 0.05% | ||||||
City of Kansas City Sanitary Sewer System Revenue Series B | 5.00 | 1-1-2025 | 810,000 | 833,382 | ||
City of Kansas City Sanitary Sewer System Revenue Series B | 5.00 | 1-1-2028 | 275,000 | 301,308 | ||
1,134,690 | ||||||
56,747,875 | ||||||
Nebraska: 0.56% | ||||||
Airport revenue: 0.04% | ||||||
Lincoln Airport Authority AMT | 5.00 | 7-1-2029 | 835,000 | 907,692 | ||
Education revenue: 0.11% | ||||||
County of Douglas Series B (SIFMA Municipal Swap+0.53%)± | 4.54 | 7-1-2035 | 2,205,000 | 2,170,509 | ||
Utilities revenue: 0.41% | ||||||
Central Plains Energy Project Project No. 3 Series A | 5.00 | 9-1-2025 | 3,290,000 | 3,345,722 | ||
Central Plains Energy Project Project No. 3 Series A | 5.00 | 9-1-2026 | 3,750,000 | 3,839,885 | ||
Central Plains Energy Project Project No. 3 Series A | 5.00 | 9-1-2027 | 1,000,000 | 1,031,367 | ||
8,216,974 | ||||||
11,295,175 | ||||||
Nevada: 0.10% | ||||||
Miscellaneous revenue: 0.10% | ||||||
City of Las Vegas Special Improvement District No. 816 | 2.00 | 6-1-2024 | 150,000 | 146,553 | ||
City of Las Vegas Special Improvement District No. 816 | 2.00 | 6-1-2025 | 180,000 | 171,215 | ||
City of Las Vegas Special Improvement District No. 816 | 2.00 | 6-1-2026 | 225,000 | 208,041 | ||
City of Las Vegas Special Improvement District No. 816 | 2.25 | 6-1-2027 | 250,000 | 226,455 | ||
City of Las Vegas Special Improvement District No. 816 | 2.50 | 6-1-2028 | 250,000 | 222,879 | ||
The accompanying notes are an integral part of these financial statements.
32 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue (continued) | ||||||
City of Las Vegas Special Improvement District No. 816 | 2.50 % | 6-1-2029 | $ | 200,000 | $173,115 | |
City of Las Vegas Special Improvement District No. 816 | 2.63 | 6-1-2030 | 300,000 | 256,281 | ||
City of Las Vegas Special Improvement District No. 816 | 2.75 | 6-1-2031 | 225,000 | 189,762 | ||
City of Las Vegas Special Improvement District No. 816 | 2.75 | 6-1-2033 | 515,000 | 417,127 | ||
2,011,428 | ||||||
New Hampshire: 0.11% | ||||||
Housing revenue: 0.11% | ||||||
New Hampshire Business Finance Authority Series 1A | 4.13 | 1-20-2034 | 2,374,299 | 2,315,673 | ||
New Jersey: 3.59% | ||||||
Airport revenue: 0.32% | ||||||
New Jersey EDA Port Newark Container Terminal LLC AMT | 5.00 | 10-1-2025 | 2,750,000 | 2,799,901 | ||
New Jersey EDA Port Newark Container Terminal LLC AMT | 5.00 | 10-1-2026 | 2,130,000 | 2,181,612 | ||
South Jersey Port Corp. Series B AMT | 5.00 | 1-1-2027 | 1,000,000 | 1,031,717 | ||
South Jersey Port Corp. Series B AMT | 5.00 | 1-1-2028 | 500,000 | 521,161 | ||
6,534,391 | ||||||
Education revenue: 0.09% | ||||||
Atlantic County Improvement Authority Stockton University Series A (AGM Insured) | 4.00 | 7-1-2036 | 425,000 | 427,392 | ||
Atlantic County Improvement Authority Stockton University Series A (AGM Insured) | 4.00 | 7-1-2037 | 150,000 | 148,347 | ||
Atlantic County Improvement Authority Stockton University Series A (AGM Insured) | 4.00 | 7-1-2038 | 200,000 | 196,102 | ||
Atlantic County Improvement Authority Stockton University Series A (AGM Insured) | 5.00 | 7-1-2032 | 225,000 | 252,351 | ||
Atlantic County Improvement Authority Stockton University Series A (AGM Insured) | 5.00 | 7-1-2034 | 225,000 | 251,779 | ||
Passaic County Improvement Authority Paterson Arts & Science Charter School | 4.25 | 7-1-2033 | 620,000 | 624,890 | ||
1,900,861 | ||||||
GO revenue: 0.31% | ||||||
Atlantic City Board of Education (AGM Insured) | 4.00 | 4-1-2027 | 400,000 | 413,989 | ||
Atlantic City Board of Education (AGM Insured) | 4.00 | 4-1-2029 | 400,000 | 420,924 | ||
Atlantic City Board of Education (AGM Insured) | 4.00 | 4-1-2031 | 350,000 | 365,451 | ||
Atlantic City Board of Education (AGM Insured) | 4.00 | 4-1-2033 | 300,000 | 310,777 | ||
Atlantic City Board of Education (AGM Insured) | 4.00 | 4-1-2034 | 260,000 | 268,787 | ||
New Jersey EDA Series GGG144A | 5.25 | 9-1-2026 | 2,000,000 | 2,113,453 | ||
Newark Board of Education (BAM Insured) | 5.00 | 7-15-2029 | 340,000 | 374,063 | ||
Newark Board of Education (BAM Insured) | 5.00 | 7-15-2030 | 325,000 | 362,067 | ||
Newark Board of Education (BAM Insured) | 5.00 | 7-15-2031 | 400,000 | 451,139 | ||
Newark Board of Education (BAM Insured) | 5.00 | 7-15-2032 | 430,000 | 484,087 | ||
Newark Board of Education (BAM Insured) | 5.00 | 7-15-2033 | 520,000 | 584,722 | ||
6,149,459 | ||||||
Housing revenue: 2.39% | ||||||
Garden State Preservation Trust Series A (AGM Insured) | 5.75 | 11-1-2028 | 5,000,000 | 5,430,451 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 33
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
New Jersey EDA Series QQQ | 5.00 % | 6-15-2030 | $ | 1,000,000 | $1,115,417 | |
New Jersey EDA Series QQQ | 5.00 | 6-15-2031 | 500,000 | 559,818 | ||
New Jersey EDA Motor Vehicle Surcharge Revenue Series A | 3.13 | 7-1-2029 | 5,620,000 | 5,364,740 | ||
New Jersey EDA Motor Vehicle Surcharge Revenue Series A | 3.38 | 7-1-2030 | 9,705,000 | 9,397,911 | ||
New Jersey EDA State of New Jersey Department of the Treasury Series I (SIFMA Municipal Swap+1.25%)± | 5.26 | 9-1-2025 | 4,500,000 | 4,504,717 | ||
New Jersey TTFA Series A¤ | 0.00 | 12-15-2026 | 12,000,000 | 10,615,121 | ||
New Jersey TTFA Series A | 5.00 | 12-15-2025 | 1,000,000 | 1,036,566 | ||
New Jersey TTFA Series C (Ambac Insured)¤ | 0.00 | 12-15-2026 | 3,500,000 | 3,099,222 | ||
New Jersey TTFA Series D | 5.00 | 12-15-2023 | 6,960,000 | 7,005,566 | ||
48,129,529 | ||||||
Industrial development revenue: 0.01% | ||||||
New Jersey EDA Elite Pharmaceuticals, Inc. Series A | 6.50 | 9-1-2030 | 275,000 | 238,484 | ||
Tax revenue: 0.08% | ||||||
New Jersey TTFA Series BB | 5.00 | 6-15-2030 | 1,500,000 | 1,627,879 | ||
Transportation revenue: 0.06% | ||||||
South Jersey Transportation Authority Series A (BAM Insured) | 5.00 | 11-1-2036 | 500,000 | 561,326 | ||
South Jersey Transportation Authority Series A (BAM Insured) | 5.00 | 11-1-2037 | 500,000 | 556,739 | ||
1,118,065 | ||||||
Water & sewer revenue: 0.33% | ||||||
New Jersey EDA New Jersey-American Water Co., Inc. Series A AMTøø | 2.20 | 10-1-2039 | 5,500,000 | 4,782,980 | ||
New Jersey EDA New Jersey-American Water Co., Inc. Series D AMTøø | 1.10 | 11-1-2029 | 2,075,000 | 1,777,905 | ||
6,560,885 | ||||||
72,259,553 | ||||||
New Mexico: 0.85% | ||||||
Industrial development revenue: 0.43% | ||||||
City of Farmington Southern California Edison Co. Series A | 1.80 | 4-1-2029 | 10,000,000 | 8,593,879 | ||
Tax revenue: 0.08% | ||||||
Winrock Town Center Tax Increment Development District No. 1144A | 3.75 | 5-1-2028 | 771,000 | 728,532 | ||
Winrock Town Center Tax Increment Development District No. 1144A | 4.00 | 5-1-2033 | 1,035,000 | 916,072 | ||
1,644,604 | ||||||
Utilities revenue: 0.34% | ||||||
New Mexico Municipal Energy Acquisition Authority Series A (Royal Bank of Canada LIQ)øø | 5.00 | 11-1-2039 | 6,660,000 | 6,801,872 | ||
17,040,355 | ||||||
The accompanying notes are an integral part of these financial statements.
34 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
New York: 8.62% | ||||||
Airport revenue: 1.05% | ||||||
New York Transportation Development Corp. JFK International Air Terminal LLC AMT | 5.00 % | 12-1-2032 | $ | 5,500,000 | $5,992,207 | |
Port Authority of New York & New Jersey Series 205 | 5.00 | 11-15-2025 | 475,000 | 496,942 | ||
Port Authority of New York & New Jersey Series 207 AMT | 5.00 | 9-15-2027 | 13,880,000 | 14,687,616 | ||
21,176,765 | ||||||
Education revenue: 0.94% | ||||||
Build NYC Resource Corp. Integration Charter Schools Series A144A | 5.00 | 6-1-2036 | 525,000 | 521,548 | ||
Build NYC Resource Corp. Integration Charter Schools Series A144A | 5.00 | 6-1-2041 | 400,000 | 379,856 | ||
Build NYC Resource Corp. Richmond Preparatory Charter School Social Impact Project Series A144A | 4.00 | 6-1-2031 | 650,000 | 615,607 | ||
Hempstead Town Local Development Corp. Academy Charter School Series A | 4.05 | 2-1-2031 | 2,415,000 | 2,100,899 | ||
Hempstead Town Local Development Corp. Academy Charter School Series A | 4.45 | 2-1-2041 | 500,000 | 393,531 | ||
Hempstead Town Local Development Corp. Academy Charter School Series A | 4.76 | 2-1-2027 | 970,000 | 938,131 | ||
Hempstead Town Local Development Corp. Academy Charter School Series A | 5.45 | 2-1-2027 | 2,880,000 | 2,853,230 | ||
Hempstead Town Local Development Corp. Academy Charter School Series A | 6.47 | 2-1-2033 | 1,435,000 | 1,491,698 | ||
Hempstead Town Local Development Corp. Academy Charter School Series B | 4.76 | 2-1-2027 | 150,000 | 145,072 | ||
Hempstead Town Local Development Corp. Evergreen Charter School, Inc. Series A | 5.00 | 6-15-2032 | 7,115,000 | 7,347,929 | ||
New York City Industrial Development Agency Churchill School & Center for Learning Disabilities, Inc. (AGC Insured)ø | 2.25 | 10-1-2029 | 1,080,000 | 1,003,856 | ||
New York State Dormitory Authority Iona College Series 2022 | 5.00 | 7-1-2030 | 625,000 | 673,177 | ||
New York State Dormitory Authority Iona College Series 2022 | 5.00 | 7-1-2037 | 200,000 | 211,196 | ||
New York State Dormitory Authority Iona College Series 2022 | 5.00 | 7-1-2042 | 275,000 | 284,509 | ||
18,960,239 | ||||||
GO revenue: 0.07% | ||||||
City of Poughkeepsie | 4.00 | 4-15-2029 | 245,000 | 242,570 | ||
City of Poughkeepsie | 5.00 | 6-1-2024 | 340,000 | 341,126 | ||
City of Poughkeepsie | 5.00 | 6-1-2025 | 235,000 | 236,915 | ||
City of Poughkeepsie | 5.00 | 6-1-2031 | 600,000 | 613,600 | ||
1,434,211 | ||||||
Health revenue: 0.77% | ||||||
Huntington Local Development Corp. Gurwin Independent Housing Obligated Group Series C | 3.00 | 7-1-2025 | 80,000 | 80,000 | ||
New York State Dormitory Authority Catholic Health System Obligated Group Series B (Manufacturers & Traders LOC)ø | 4.24 | 7-1-2048 | 4,925,000 | 4,925,000 | ||
New York State Dormitory Authority Montefiore Obligated Group Series A | 5.00 | 9-1-2028 | 1,400,000 | 1,411,867 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 35
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
New York State Dormitory Authority Montefiore Obligated Group Series A | 5.00 % | 9-1-2029 | $ | 1,350,000 | $1,367,076 | |
New York State Dormitory Authority Northwell Health Obligated Group Series B3øø | 5.00 | 5-1-2048 | 6,000,000 | 6,179,256 | ||
Westchester County Local Development Corp. Purchase Senior Learning Community Obligated Group Series D144A | 2.88 | 7-1-2026 | 1,500,000 | 1,430,154 | ||
15,393,353 | ||||||
Housing revenue: 1.44% | ||||||
New York City Housing Development Corp. Series Aøø | 3.73 | 5-1-2063 | 5,000,000 | 5,006,477 | ||
New York Liberty Development Corp. Series A | 1.70 | 11-15-2030 | 4,000,000 | 3,420,334 | ||
New York Liberty Development Corp. Series A | 2.10 | 11-15-2032 | 5,000,000 | 4,299,139 | ||
New York State Housing Finance Agency Series J-2 (Department of Housing and Urban Development Insured)øø | 1.10 | 11-1-2061 | 2,500,000 | 2,214,764 | ||
New York State Housing Finance Agency Series K2 (Department of Housing and Urban Development Insured)øø | 1.00 | 11-1-2061 | 500,000 | 454,666 | ||
New York State Urban Development Corp. State of New York Sales Tax Revenue Series A | 4.00 | 3-15-2042 | 5,000,000 | 4,981,904 | ||
State of New York Mortgage Agency Series 235 AMT | 0.55 | 10-1-2023 | 760,000 | 754,097 | ||
State of New York Mortgage Agency Series 235 AMT | 0.65 | 4-1-2024 | 710,000 | 693,748 | ||
State of New York Mortgage Agency Series 235 AMT | 0.75 | 10-1-2024 | 825,000 | 794,642 | ||
State of New York Mortgage Agency Series 235 AMT | 0.88 | 4-1-2025 | 1,705,000 | 1,619,985 | ||
State of New York Mortgage Agency Series 235 AMT | 1.00 | 10-1-2025 | 2,415,000 | 2,270,357 | ||
State of New York Mortgage Agency Series 235 AMT | 1.05 | 4-1-2026 | 1,275,000 | 1,185,666 | ||
State of New York Mortgage Agency Series 235 AMT | 1.15 | 10-1-2026 | 1,335,000 | 1,232,018 | ||
28,927,797 | ||||||
Industrial development revenue: 1.27% | ||||||
New York Liberty Development Corp. One Bryant Park LLC | 2.80 | 9-15-2069 | 2,000,000 | 1,821,956 | ||
New York Transportation Development Corp. American Airlines, Inc. AMT | 2.25 | 8-1-2026 | 1,625,000 | 1,564,463 | ||
New York Transportation Development Corp. Delta Air Lines, Inc. AMT | 5.00 | 10-1-2035 | 9,250,000 | 9,683,509 | ||
New York Transportation Development Corp. Delta Air Lines, Inc. Series A AMT | 5.00 | 1-1-2026 | 11,030,000 | 11,268,218 | ||
New York Transportation Development Corp. Empire State Thruway Partners LLC AMT | 2.50 | 10-31-2031 | 750,000 | 625,520 | ||
New York Transportation Development Corp. Empire State Thruway Partners LLC AMT | 4.00 | 10-31-2034 | 500,000 | 493,015 | ||
25,456,681 | ||||||
Miscellaneous revenue: 0.79% | ||||||
New York City Industrial Development Agency Queens Ballpark Co. LLC Series A (AGM Insured) | 5.00 | 1-1-2025 | 1,250,000 | 1,280,572 | ||
New York City Industrial Development Agency Queens Ballpark Co. LLC Series A (AGM Insured) | 5.00 | 1-1-2030 | 1,750,000 | 1,941,453 | ||
RBC Municipal Products, Inc. Trust Series 2022-E-154 (Royal Bank of Canada LOC, Royal Bank of Canada LIQ)144Aø | 4.11 | 6-1-2028 | 5,000,000 | 5,000,000 | ||
The accompanying notes are an integral part of these financial statements.
36 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue (continued) | ||||||
Triborough Bridge & Tunnel Authority Metropolitan Transportation Authority Payroll Mobility Tax Revenue Series A2øø | 2.00 % | 5-15-2045 | $ | 7,900,000 | $7,214,315 | |
Western Regional Off-Track Betting Corp.144A | 3.00 | 12-1-2026 | 490,000 | 453,269 | ||
15,889,609 | ||||||
Resource recovery revenue: 0.09% | ||||||
New York State Environmental Facilities Corp. Casella Waste Systems, Inc. Series R-1 AMTøø | 2.75 | 9-1-2050 | 2,000,000 | 1,921,181 | ||
Tax revenue: 0.15% | ||||||
New York City Transitional Finance Authority Future Tax Secured Revenue Series A1 | 4.00 | 8-1-2041 | 3,000,000 | 2,986,870 | ||
Transportation revenue: 1.25% | ||||||
Metropolitan Transportation Authority Series Aøø | 5.00 | 11-15-2048 | 800,000 | 808,372 | ||
Metropolitan Transportation Authority Series C | 5.00 | 11-15-2024 | 3,535,000 | 3,601,103 | ||
Metropolitan Transportation Authority Series G1F (U.S. SOFR+0.43%)± | 3.82 | 11-1-2026 | 990,000 | 979,938 | ||
Metropolitan Transportation Authority Series G3 (SIFMA Municipal Swap+0.43%)± | 4.44 | 11-1-2031 | 20,000,000 | 19,662,526 | ||
25,051,939 | ||||||
Utilities revenue: 0.50% | ||||||
Long Island Power Authority Series Bøø | 0.85 | 9-1-2050 | 3,000,000 | 2,810,921 | ||
Long Island Power Authority Series Bøø | 1.50 | 9-1-2051 | 3,500,000 | 3,242,025 | ||
New York State Energy Research & Development Authority Electric & Gas Corp. Series C%% | 4.00 | 4-1-2034 | 4,000,000 | 4,025,803 | ||
10,078,749 | ||||||
Water & sewer revenue: 0.30% | ||||||
New York City Municipal Water Finance Authority New York City Water & Sewer System Series AA | 4.00 | 6-15-2040 | 6,000,000 | 6,021,122 | ||
173,298,516 | ||||||
North Carolina: 0.36% | ||||||
Education revenue: 0.08% | ||||||
North Carolina Capital Facilities Finance Agency Campbell University, Inc. Series A | 5.00 | 10-1-2028 | 450,000 | 470,488 | ||
North Carolina Capital Facilities Finance Agency Campbell University, Inc. Series A | 5.00 | 10-1-2029 | 550,000 | 580,441 | ||
North Carolina Capital Facilities Finance Agency Campbell University, Inc. Series A | 5.00 | 10-1-2030 | 450,000 | 478,149 | ||
1,529,078 | ||||||
Health revenue: 0.24% | ||||||
Charlotte-Mecklenburg Hospital Authority Atrium Health Obligated Group Series Eøø | 0.80 | 1-15-2048 | 2,000,000 | 1,842,084 | ||
North Carolina Medical Care Commission Friends Homes Obligated Group Series B1 | 2.55 | 9-1-2026 | 1,575,000 | 1,457,070 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 37
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
North Carolina Medical Care Commission Lutheran Services for the Aging, Inc. Obligated Group Series A | 4.00 % | 3-1-2029 | $ | 275,000 | $257,582 | |
North Carolina Medical Care Commission Lutheran Services for the Aging, Inc. Obligated Group Series A | 4.00 | 3-1-2030 | 285,000 | 263,525 | ||
North Carolina Medical Care Commission Lutheran Services for the Aging, Inc. Obligated Group Series A | 4.00 | 3-1-2031 | 290,000 | 265,825 | ||
North Carolina Medical Care Commission Lutheran Services for the Aging, Inc. Obligated Group Series A | 4.00 | 3-1-2036 | 900,000 | 762,598 | ||
4,848,684 | ||||||
Industrial development revenue: 0.04% | ||||||
Columbus County Industrial Facilities & Pollution Control Financing Authority International Paper Co. Series Bøø | 2.00 | 11-1-2033 | 850,000 | 830,430 | ||
7,208,192 | ||||||
North Dakota: 0.82% | ||||||
GO revenue: 0.65% | ||||||
Cass County Joint Water Resource District Series A | 0.48 | 5-1-2024 | 2,500,000 | 2,406,559 | ||
McKenzie County Public School District No. 1 Series A | 5.00 | 8-1-2025 | 960,000 | 989,308 | ||
McKenzie County Public School District No. 1 Series A | 5.00 | 8-1-2026 | 1,115,000 | 1,169,251 | ||
McKenzie County Public School District No. 1 Series A | 5.00 | 8-1-2027 | 1,170,000 | 1,247,692 | ||
McKenzie County Public School District No. 1 Series A | 5.00 | 8-1-2028 | 1,225,000 | 1,326,505 | ||
McKenzie County Public School District No. 1 Series A | 5.00 | 8-1-2029 | 1,290,000 | 1,397,223 | ||
McKenzie County Public School District No. 1 Series A | 5.00 | 8-1-2030 | 1,355,000 | 1,468,583 | ||
McKenzie County Public School District No. 1 Series A | 5.00 | 8-1-2031 | 1,420,000 | 1,539,222 | ||
McKenzie County Public School District No. 1 Series A | 5.00 | 8-1-2032 | 1,490,000 | 1,613,844 | ||
13,158,187 | ||||||
Health revenue: 0.17% | ||||||
City of Grand Forks Altru Health System Obligated Group | 5.00 | 12-1-2029 | 1,650,000 | 1,720,060 | ||
City of Grand Forks Altru Health System Obligated Group | 5.00 | 12-1-2030 | 1,600,000 | 1,676,058 | ||
3,396,118 | ||||||
16,554,305 | ||||||
Ohio: 2.12% | ||||||
Airport revenue: 0.11% | ||||||
Port of Greater Cincinnati Development Authorityøø | 4.38 | 6-15-2056 | 2,340,000 | 2,244,754 | ||
Education revenue: 0.04% | ||||||
Allen County Port Authority University of Northwestern Ohio Series A | 4.00 | 12-1-2031 | 710,000 | 688,299 | ||
Health revenue: 0.27% | ||||||
County of Hamilton | 5.00 | 9-15-2028 | 650,000 | 658,596 | ||
County of Hamilton UC Health Obligated Group | 5.00 | 9-15-2027 | 615,000 | 619,923 | ||
County of Montgomery Premier Health Partners Obligated Group Series A | 5.00 | 11-15-2033 | 4,000,000 | 4,185,122 | ||
5,463,641 | ||||||
The accompanying notes are an integral part of these financial statements.
38 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Resource recovery revenue: 0.24% | ||||||
Ohio Air Quality Development Authority American Electric Power Co., Inc. Series C AMTøø | 2.10 % | 12-1-2027 | $ | 4,930,000 | $4,768,226 | |
Tax revenue: 0.33% | ||||||
City of Akron Income Tax Revenue | 4.00 | 12-1-2029 | 4,515,000 | 4,762,388 | ||
City of Akron Income Tax Revenue | 4.00 | 12-1-2030 | 1,830,000 | 1,919,206 | ||
6,681,594 | ||||||
Utilities revenue: 0.83% | ||||||
American Municipal Power, Inc. AMP Fremont Energy Center Revenue Series A | 5.00 | 2-15-2031 | 1,700,000 | 1,924,387 | ||
Lancaster Port Authority Series A (Royal Bank of Canada LIQ)øø | 5.00 | 8-1-2049 | 6,355,000 | 6,452,023 | ||
Ohio Air Quality Development Authority Ohio Valley Electric Corp. Series A | 3.25 | 9-1-2029 | 7,000,000 | 6,526,889 | ||
Ohio Air Quality Development Authority Ohio Valley Electric Corp. Series Cøø | 1.50 | 2-1-2026 | 2,000,000 | 1,827,480 | ||
16,730,779 | ||||||
Water & sewer revenue: 0.30% | ||||||
City of Columbus Sewerage Revenue | 5.00 | 6-1-2031 | 5,825,000 | 5,970,399 | ||
42,547,692 | ||||||
Oklahoma: 0.79% | ||||||
Education revenue: 0.24% | ||||||
Oklahoma Development Finance Authority Oklahoma City University Obligated Group | 5.00 | 8-1-2025 | 925,000 | 933,671 | ||
Oklahoma Development Finance Authority Oklahoma City University Obligated Group | 5.00 | 8-1-2026 | 975,000 | 991,043 | ||
Oklahoma Development Finance Authority Oklahoma City University Obligated Group | 5.00 | 8-1-2027 | 1,370,000 | 1,403,097 | ||
Oklahoma Development Finance Authority Oklahoma City University Obligated Group | 5.00 | 8-1-2028 | 715,000 | 737,374 | ||
Oklahoma Development Finance Authority Oklahoma City University Obligated Group | 5.00 | 8-1-2029 | 755,000 | 783,749 | ||
4,848,934 | ||||||
Housing revenue: 0.34% | ||||||
Carter County Public Facilities Authority Dickson Public Schools Project | 4.00 | 9-1-2025 | 350,000 | 355,578 | ||
Carter County Public Facilities Authority Independent School District No 19 Ardmore | 5.00 | 9-1-2025 | 365,000 | 373,527 | ||
Muskogee Industrial Trust Muskogee County Independent School District No. 20 | 4.00 | 9-1-2028 | 2,500,000 | 2,497,777 | ||
Muskogee Industrial Trust Muskogee County Independent School District No. 20 | 5.00 | 9-1-2024 | 890,000 | 903,494 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 39
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
Muskogee Industrial Trust Muskogee County Independent School District No. 20 | 5.00 % | 9-1-2025 | $ | 855,000 | $874,263 | |
Muskogee Industrial Trust Muskogee County Independent School District No. 20 | 5.00 | 9-1-2026 | 1,810,000 | 1,865,805 | ||
6,870,444 | ||||||
Tax revenue: 0.21% | ||||||
Tulsa Public Facilities Authority City of Tulsa | 4.00 | 10-1-2027 | 4,050,000 | 4,167,892 | ||
15,887,270 | ||||||
Oregon: 0.85% | ||||||
Airport revenue: 0.06% | ||||||
Port of Portland Airport Revenue Series 28 AMT | 5.00 | 7-1-2024 | 1,125,000 | 1,138,037 | ||
Health revenue: 0.79% | ||||||
Hospital Facilities Authority of Multnomah County Terwilliger Plaza, Inc. Obligated Group | 0.95 | 6-1-2027 | 1,900,000 | 1,658,988 | ||
Hospital Facilities Authority of Multnomah County Oregon Adventist Health System/West Obligated Groupøø | 5.00 | 3-1-2040 | 9,500,000 | 9,630,033 | ||
Oregon State Facilities Authority Samaritan Health Services, Inc. Obligated Group Series A | 5.00 | 10-1-2025 | 400,000 | 408,668 | ||
Oregon State Facilities Authority Samaritan Health Services, Inc. Obligated Group Series A | 5.00 | 10-1-2026 | 125,000 | 128,990 | ||
Oregon State Facilities Authority Samaritan Health Services, Inc. Obligated Group Series A | 5.00 | 10-1-2027 | 300,000 | 312,501 | ||
Oregon State Facilities Authority Samaritan Health Services, Inc. Obligated Group Series A | 5.00 | 10-1-2031 | 1,750,000 | 1,814,072 | ||
Yamhill County Hospital Authority Friendsview Manor Obligated Group Series A | 5.00 | 11-15-2036 | 1,220,000 | 1,092,305 | ||
Yamhill County Hospital Authority Friendsview Manor Obligated Group Series B2 | 2.13 | 11-15-2027 | 1,000,000 | 903,915 | ||
15,949,472 | ||||||
17,087,509 | ||||||
Pennsylvania: 5.55% | ||||||
Airport revenue: 0.50% | ||||||
Allegheny County Airport Authority Series A AMT | 5.00 | 1-1-2029 | 4,000,000 | 4,278,436 | ||
Allegheny County Airport Authority Series A AMT | 5.00 | 1-1-2030 | 3,000,000 | 3,247,568 | ||
Allegheny County Airport Authority Series A AMT | 5.00 | 1-1-2031 | 2,250,000 | 2,462,241 | ||
9,988,245 | ||||||
Education revenue: 1.11% | ||||||
Chester County IDA Avon Grove Charter School Series A | 4.00 | 12-15-2027 | 1,260,000 | 1,234,105 | ||
Chester County IDA Collegium Charter School144A | 5.00 | 10-15-2032 | 3,025,000 | 2,993,796 | ||
General Authority of Southcentral Pennsylvania York College of Pennsylvania Series TT2 | 5.00 | 5-1-2029 | 245,000 | 266,054 | ||
General Authority of Southcentral Pennsylvania York College of Pennsylvania Series TT2 | 5.00 | 5-1-2030 | 395,000 | 434,714 | ||
The accompanying notes are an integral part of these financial statements.
40 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
General Authority of Southcentral Pennsylvania York College of Pennsylvania Series TT2 | 5.00 % | 5-1-2031 | $ | 485,000 | $540,258 | |
Lehigh County General Purpose Authority Lehigh Valley Academy Regional Charter School | 4.00 | 6-1-2030 | 1,175,000 | 1,157,005 | ||
Pennsylvania Higher Education Assistance Agency Series A | 5.00 | 6-1-2028 | 600,000 | 629,802 | ||
Pennsylvania Higher Education Assistance Agency Series A | 5.00 | 6-1-2030 | 800,000 | 857,913 | ||
Philadelphia IDA144A%% | 5.00 | 6-15-2033 | 2,000,000 | 2,010,780 | ||
Philadelphia IDA144A%% | 5.38 | 6-15-2038 | 500,000 | 497,690 | ||
Philadelphia IDA Independence Charter School West | 4.00 | 6-15-2029 | 300,000 | 285,470 | ||
Philadelphia IDA Mathematics Science & Technology Community Charter School Series A | 4.50 | 8-1-2026 | 1,400,000 | 1,401,018 | ||
Philadelphia IDA Mathematics Science & Technology Community Charter School Series B | 4.88 | 8-1-2026 | 920,000 | 925,597 | ||
Philadelphia IDA Thomas Jefferson University Obligated Group Series Bø | 4.45 | 9-1-2050 | 9,000,000 | 9,000,000 | ||
22,234,202 | ||||||
GO revenue: 0.78% | ||||||
Armstrong School District Series A (BAM Insured) | 5.00 | 3-15-2027 | 745,000 | 798,600 | ||
Armstrong School District Series A (BAM Insured) | 5.00 | 3-15-2029 | 920,000 | 1,023,303 | ||
City of Scranton144A | 5.00 | 9-1-2023 | 1,355,000 | 1,354,062 | ||
Laurel Highlands School District (BAM Insured) | 3.00 | 2-1-2030 | 675,000 | 669,088 | ||
Laurel Highlands School District (BAM Insured) | 4.00 | 2-1-2027 | 980,000 | 1,003,302 | ||
Laurel Highlands School District (BAM Insured) | 4.00 | 2-1-2029 | 1,150,000 | 1,191,045 | ||
Lower Moreland Township School District | 4.00 | 11-1-2043 | 1,000,000 | 989,281 | ||
Penn Hills School District (BAM Insured) | 5.00 | 11-15-2023 | 1,025,000 | 1,029,988 | ||
School District of Philadelphia Series A | 5.00 | 9-1-2030 | 2,500,000 | 2,741,358 | ||
School District of Philadelphia Series A | 5.00 | 9-1-2031 | 2,500,000 | 2,719,672 | ||
Scranton School District Series A | 5.00 | 6-1-2024 | 750,000 | 759,065 | ||
Scranton School District Series B (NPFGC Insured) | 5.00 | 6-1-2024 | 665,000 | 674,702 | ||
Scranton School District Series B (NPFGC Insured) | 5.00 | 6-1-2025 | 710,000 | 732,141 | ||
15,685,607 | ||||||
Health revenue: 0.65% | ||||||
Berks County Municipal Authority Tower Health Obligated Group Series Bøø | 5.00 | 2-1-2040 | 6,000,000 | 4,209,388 | ||
Bucks County IDA Grand View Hospital/Sellersville Obligated Group | 5.00 | 7-1-2026 | 1,350,000 | 1,326,858 | ||
Bucks County IDA Grand View Hospital/Sellersville Obligated Group | 5.00 | 7-1-2028 | 1,500,000 | 1,472,717 | ||
Bucks County IDA Grand View Hospital/Sellersville Obligated Group | 5.00 | 7-1-2031 | 1,120,000 | 1,095,351 | ||
Bucks County IDA St. Luke’s Hospital Obligated Group | 4.00 | 8-15-2031 | 750,000 | 757,090 | ||
Bucks County IDA St. Luke’s Hospital Obligated Group | 4.00 | 8-15-2032 | 1,390,000 | 1,395,614 | ||
Lancaster IDA | 4.00 | 7-1-2037 | 345,000 | 291,649 | ||
Lancaster IDA Landis Homes Obligated Group | 4.00 | 7-1-2031 | 390,000 | 354,945 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 41
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
Pennsylvania EDFA UPMC Obligated Group Series A | 4.00 % | 11-15-2042 | $ | 1,000,000 | $967,529 | |
Westmoreland County IDA Excela Health Obligated Group Series A | 5.00 | 7-1-2027 | 1,200,000 | 1,232,157 | ||
13,103,298 | ||||||
Housing revenue: 1.24% | ||||||
East Hempfield Township IDA Student Services, Inc. | 5.00 | 7-1-2025 | 555,000 | 564,969 | ||
Pennsylvania EDFA Commonwealth of Pennsylvania Department of Transportation AMT | 5.00 | 6-30-2032 | 2,770,000 | 3,049,510 | ||
Pennsylvania Housing Finance Agency Series 128A AMT | 4.75 | 4-1-2033 | 875,000 | 874,744 | ||
Pennsylvania Housing Finance Agency Series 142 | 4.20 | 10-1-2035 | 4,475,000 | 4,532,486 | ||
Pennsylvania Housing Finance Agency Series 142 | 4.50 | 10-1-2038 | 5,800,000 | 5,858,126 | ||
Pennsylvania Housing Finance Agency Series 142 | 5.50 | 10-1-2053 | 3,000,000 | 3,188,792 | ||
Pennsylvania Housing Finance Agency LIH Wilkes-Barre LP (Department of Housing and Urban Development Insured)øø | 1.25 | 2-1-2025 | 7,000,000 | 6,882,729 | ||
24,951,356 | ||||||
Miscellaneous revenue: 0.04% | ||||||
Delaware Valley Regional Finance Authority Series B (Ambac Insured) | 5.70 | 7-1-2027 | 675,000 | 742,709 | ||
Delaware Valley Regional Finance Authority Series C (Ambac Insured) | 7.75 | 7-1-2027 | 125,000 | 147,102 | ||
889,811 | ||||||
Resource recovery revenue: 0.66% | ||||||
Pennsylvania EDFA Waste Management, Inc. Series A AMTøø | 1.75 | 8-1-2038 | 13,500,000 | 13,179,996 | ||
Tax revenue: 0.11% | ||||||
Allentown Neighborhood Improvement Zone Development Authority | 5.00 | 5-1-2029 | 500,000 | 525,405 | ||
Allentown Neighborhood Improvement Zone Development Authority | 5.00 | 5-1-2030 | 500,000 | 528,069 | ||
Allentown Neighborhood Improvement Zone Development Authority | 5.00 | 5-1-2031 | 550,000 | 583,843 | ||
Allentown Neighborhood Improvement Zone Development Authority | 5.00 | 5-1-2032 | 600,000 | 639,768 | ||
2,277,085 | ||||||
Transportation revenue: 0.18% | ||||||
Lancaster City Parking Authority Series A (BAM Insured) | 4.00 | 9-1-2027 | 570,000 | 586,426 | ||
Lancaster City Parking Authority Series A (BAM Insured) | 4.00 | 9-1-2028 | 1,185,000 | 1,218,442 | ||
Lancaster City Parking Authority Series A (BAM Insured) | 4.00 | 9-1-2029 | 410,000 | 421,489 | ||
Lancaster City Parking Authority Series A (BAM Insured) | 4.00 | 9-1-2030 | 425,000 | 436,969 | ||
Lancaster City Parking Authority Series A (BAM Insured) | 4.00 | 9-1-2031 | 440,000 | 451,903 | ||
Lancaster City Parking Authority Series A (BAM Insured) | 4.00 | 9-1-2032 | 460,000 | 471,993 | ||
3,587,222 | ||||||
The accompanying notes are an integral part of these financial statements.
42 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Water & sewer revenue: 0.28% | ||||||
Luzerne County IDA Pennsylvania-American Water Co. AMTøø | 2.45 % | 12-1-2039 | $ | 3,250,000 | $2,986,311 | |
Pittsburgh Water & Sewer Authority Series C (AGM Insured) (SIFMA Municipal Swap+0.65%)± | 4.66 | 9-1-2040 | 2,670,000 | 2,670,168 | ||
5,656,479 | ||||||
111,553,301 | ||||||
Puerto Rico: 0.20% | ||||||
Water & sewer revenue: 0.20% | ||||||
Puerto Rico Commonwealth Aqueduct & Sewer Authority Series A144A | 4.00 | 7-1-2023 | 4,000,000 | 4,000,000 | ||
Rhode Island: 0.12% | ||||||
GO revenue: 0.07% | ||||||
City of Providence Series A | 5.00 | 1-15-2024 | 400,000 | 402,777 | ||
City of Providence Series A | 5.00 | 1-15-2025 | 450,000 | 460,287 | ||
City of Providence Series A | 5.00 | 1-15-2026 | 450,000 | 467,126 | ||
1,330,190 | ||||||
Housing revenue: 0.05% | ||||||
Providence Public Building Authority Series A (AGM Insured) | 4.00 | 9-15-2023 | 1,000,000 | 1,001,253 | ||
Rhode Island Housing & Mortgage Finance Corp. Series 10-A | 6.50 | 4-1-2027 | 15,000 | 15,029 | ||
1,016,282 | ||||||
2,346,472 | ||||||
South Carolina: 0.26% | ||||||
Education revenue: 0.01% | ||||||
South Carolina Jobs-EDA York Preparatory Academy, Inc. Series A144A | 5.75 | 11-1-2023 | 145,000 | 146,003 | ||
Miscellaneous revenue: 0.02% | ||||||
County of Berkeley Nexton Improvement District | 4.00 | 11-1-2030 | 425,000 | 399,432 | ||
Resource recovery revenue: 0.08% | ||||||
South Carolina Jobs-EDA RePower South Berkeley LLC† | 8.00 | 12-6-2029 | 260,000 | 213,075 | ||
South Carolina Jobs-EDA RePower South Berkeley LLC Series A AMT144A† | 5.25 | 2-1-2027 | 3,310,000 | 1,324,000 | ||
1,537,075 | ||||||
Utilities revenue: 0.15% | ||||||
South Carolina Public Service Authority Series A | 5.00 | 12-1-2031 | 2,850,000 | 3,113,230 | ||
5,195,740 | ||||||
South Dakota: 0.38% | ||||||
Health revenue: 0.38% | ||||||
South Dakota HEFA Avera Health Obligated Group Series Aøø | 5.00 | 7-1-2033 | 7,675,000 | 7,742,137 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 43
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tennessee: 1.03% | ||||||
Housing revenue: 0.39% | ||||||
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Richland Hills Housing Partners LP (Department of Housing and Urban Development Insured)øø | 1.25 % | 12-1-2024 | $ | 8,000,000 | $7,919,755 | |
Utilities revenue: 0.64% | ||||||
Tennergy Corp. Series Aøø | 4.00 | 12-1-2051 | 1,190,000 | 1,174,074 | ||
Tennergy Corp. Series Aøø | 5.50 | 10-1-2053 | 8,010,000 | 8,480,156 | ||
Tennessee Energy Acquisition Corp.øø | 4.00 | 11-1-2049 | 2,210,000 | 2,197,966 | ||
Tennessee Energy Acquisition Corp. Series B | 5.63 | 9-1-2026 | 925,000 | 950,593 | ||
12,802,789 | ||||||
20,722,544 | ||||||
Texas: 8.06% | ||||||
Airport revenue: 0.56% | ||||||
City of El Paso Airport Revenue | 5.00 | 8-15-2023 | 690,000 | 691,239 | ||
City of El Paso Airport Revenue | 5.00 | 8-15-2024 | 725,000 | 739,137 | ||
City of El Paso Airport Revenue | 5.00 | 8-15-2027 | 835,000 | 900,719 | ||
City of El Paso Airport Revenue | 5.00 | 8-15-2028 | 880,000 | 967,897 | ||
City of El Paso Airport Revenue | 5.00 | 8-15-2029 | 920,000 | 1,024,187 | ||
City of El Paso Airport Revenue | 5.00 | 8-15-2030 | 970,000 | 1,096,959 | ||
City of Houston Airport System Revenue United Airlines, Inc. Series A AMT | 5.00 | 7-1-2027 | 1,750,000 | 1,771,080 | ||
Dallas Fort Worth International Airport Series B | 5.00 | 11-1-2024 | 4,000,000 | 4,091,614 | ||
11,282,832 | ||||||
Education revenue: 2.05% | ||||||
Alamo Community College Districtøø | 1.70 | 11-1-2042 | 320,000 | 310,393 | ||
Arlington Higher Education Finance Corp. BASIS Texas Charter Schools, Inc.144Aøø | 4.50 | 6-15-2056 | 1,500,000 | 1,486,525 | ||
Arlington Higher Education Finance Corp. BASIS Texas Charter Schools, Inc. Series A144Aøø | 4.88 | 6-15-2056 | 2,195,000 | 2,197,618 | ||
Arlington Higher Education Finance Corp. Harmony Public Schools Series A | 4.00 | 2-15-2029 | 300,000 | 310,357 | ||
Arlington Higher Education Finance Corp. Harmony Public Schools Series A | 4.00 | 2-15-2030 | 305,000 | 316,776 | ||
Arlington Higher Education Finance Corp. Harmony Public Schools Series A | 4.00 | 2-15-2031 | 315,000 | 327,908 | ||
Arlington Higher Education Finance Corp. School of Excellence in Education Series A | 4.00 | 2-15-2031 | 1,240,000 | 1,101,341 | ||
Arlington Higher Education Finance Corp. School of Excellence in Education Series A144A | 5.00 | 2-15-2032 | 500,000 | 473,155 | ||
Arlington Higher Education Finance Corp. Wayside Schools Series A | 4.00 | 8-15-2029 | 80,000 | 75,305 | ||
Arlington Higher Education Finance Corp. Wayside Schools Series A | 4.00 | 8-15-2030 | 85,000 | 79,189 | ||
Arlington Higher Education Finance Corp. Wayside Schools Series A | 4.00 | 8-15-2031 | 80,000 | 73,709 | ||
The accompanying notes are an integral part of these financial statements.
44 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
Arlington Higher Education Finance Corp. Wayside Schools Series A | 5.00 % | 8-15-2023 | $ | 155,000 | $154,919 | |
Arlington Higher Education Finance Corp. Wayside Schools Series A | 5.00 | 8-15-2024 | 195,000 | 194,262 | ||
Arlington Higher Education Finance Corp. Wayside Schools Series A | 5.00 | 8-15-2025 | 205,000 | 203,493 | ||
Arlington Higher Education Finance Corp. Wayside Schools Series A | 5.00 | 8-15-2026 | 200,000 | 198,458 | ||
Arlington Higher Education Finance Corp. Wayside Schools Series A | 5.00 | 8-15-2027 | 205,000 | 203,488 | ||
Arlington Higher Education Finance Corp. Wayside Schools Series A | 5.00 | 8-15-2028 | 75,000 | 74,596 | ||
Clifton Higher Education Finance Corp. IDEA Public Schools Series A | 5.00 | 8-15-2029 | 315,000 | 336,669 | ||
Clifton Higher Education Finance Corp. IDEA Public Schools Series A | 5.00 | 8-15-2030 | 385,000 | 414,882 | ||
Clifton Higher Education Finance Corp. IDEA Public Schools Series A | 5.00 | 8-15-2031 | 435,000 | 471,946 | ||
Clifton Higher Education Finance Corp. IDEA Public Schools Series A | 5.00 | 8-15-2032 | 515,000 | 562,143 | ||
Clifton Higher Education Finance Corp. International Leadership of Texas, Inc. Series A | 4.63 | 8-15-2025 | 5,400,000 | 5,345,816 | ||
Clifton Higher Education Finance Corp. International Leadership of Texas, Inc. Series A | 6.00 | 3-1-2029 | 2,126,000 | 2,138,830 | ||
Clifton Higher Education Finance Corp. International Leadership of Texas, Inc. Series D | 5.00 | 8-15-2025 | 6,565,000 | 6,547,768 | ||
Clifton Higher Education Finance Corp. Uplift Education Series A | 4.00 | 12-1-2025 | 1,500,000 | 1,471,902 | ||
Clifton Higher Education Finance Corp. Valor Texas Education Foundation Series A144A | 5.50 | 6-15-2033 | 5,000,000 | 5,012,571 | ||
Hale Center Education Facilities Corp. Wayland Baptist University | 5.00 | 3-1-2028 | 1,635,000 | 1,690,545 | ||
Hale Center Education Facilities Corp. Wayland Baptist University | 5.00 | 3-1-2029 | 1,015,000 | 1,056,924 | ||
Hale Center Education Facilities Corp. Wayland Baptist University | 5.00 | 3-1-2030 | 2,040,000 | 2,134,804 | ||
New Hope Cultural Education Facilities Finance Corp. Cumberland Academy, Inc. Series A144A | 4.00 | 8-15-2030 | 1,735,000 | 1,593,052 | ||
Newark Higher Education Finance Corp. A+ Charter Schools, Inc. Series A144A | 4.63 | 8-15-2025 | 730,000 | 732,070 | ||
Odessa Junior College District (AGM Insured) | 4.00 | 7-1-2029 | 650,000 | 687,836 | ||
Odessa Junior College District (AGM Insured) | 4.00 | 7-1-2030 | 870,000 | 929,620 | ||
Odessa Junior College District (AGM Insured) | 4.00 | 7-1-2031 | 220,000 | 237,036 | ||
Odessa Junior College District (AGM Insured) | 4.00 | 7-1-2032 | 460,000 | 491,135 | ||
Odessa Junior College District (AGM Insured) | 4.00 | 7-1-2033 | 710,000 | 754,602 | ||
Odessa Junior College District (AGM Insured) | 4.00 | 7-1-2034 | 500,000 | 528,928 | ||
Odessa Junior College District (AGM Insured) | 4.00 | 7-1-2035 | 290,000 | 304,989 | ||
41,225,560 | ||||||
GO revenue: 1.69% | ||||||
Brazosport Independent School District Series A | 4.00 | 2-15-2029 | 2,355,000 | 2,435,473 | ||
City of Houston Series A | 4.00 | 3-1-2044 | 2,500,000 | 2,477,493 | ||
City of Lewisville | 4.00 | 2-15-2041 | 2,975,000 | 2,969,620 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 45
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
Cypress-Fairbanks Independent School District Series B1øø | 0.28 % | 2-15-2040 | $ | 2,735,000 | $2,628,161 | |
Fort Bend Independent School District Series Bøø | 0.72 | 8-1-2051 | 1,265,000 | 1,121,948 | ||
Grapevine-Colleyville Independent School District | 5.00 | 8-15-2034 | 2,890,000 | 2,999,862 | ||
Grapevine-Colleyville Independent School District | 5.00 | 8-15-2035 | 1,600,000 | 1,656,509 | ||
Leander Independent School District Series C CAB¤ | 0.00 | 8-15-2035 | 2,975,000 | 1,650,262 | ||
Northside Independent School Districtøø | 2.75 | 8-1-2048 | 11,275,000 | 11,262,817 | ||
Northwest Independent School District | 5.00 | 2-15-2032 | 1,750,000 | 1,799,926 | ||
State of Texas | 5.00 | 4-1-2027 | 3,010,000 | 3,050,425 | ||
34,052,496 | ||||||
Health revenue: 0.26% | ||||||
Harris County Cultural Education Facilities Finance Corp. Texas Medical Center Obligated Group Series Aøø | 0.90 | 5-15-2050 | 1,500,000 | 1,410,485 | ||
New Hope Cultural Education Facilities Finance Corp. Children’s Health System of Texas Obligated Group Series A | 5.00 | 8-15-2026 | 2,000,000 | 2,107,253 | ||
New Hope Cultural Education Facilities Finance Corp. Presbyterian Village North Obligated Group | 5.00 | 10-1-2023 | 1,570,000 | 1,568,333 | ||
Tarrant County Cultural Education Facilities Finance Corp. MRC Senior Living Fort Worth Obligated Group Series B2 | 3.00 | 11-15-2026 | 100,000 | 95,576 | ||
5,181,647 | ||||||
Housing revenue: 0.27% | ||||||
County of Wise | 5.00 | 8-15-2028 | 1,630,000 | 1,723,905 | ||
County of Wise | 5.00 | 8-15-2031 | 680,000 | 731,068 | ||
County of Wise | 5.00 | 8-15-2034 | 980,000 | 1,037,523 | ||
County of Wise Weatherford College of the Parker County Junior College District | 5.00 | 8-15-2025 | 505,000 | 520,164 | ||
New Hope Cultural Education Facilities Finance Corp. CHF- Stephenville III LLC Series A | 5.00 | 4-1-2025 | 480,000 | 494,831 | ||
Travis County Housing Finance Corp. Austin Gateway Apartments LPøø | 4.13 | 6-1-2045 | 1,000,000 | 1,001,380 | ||
5,508,871 | ||||||
Industrial development revenue: 0.56% | ||||||
Brazoria County Industrial Development Corp. Aleon Renewable Metals LLC AMT144Aøø | 10.00 | 6-1-2042 | 3,000,000 | 2,867,758 | ||
Harris County Industrial Development Corp. Energy Transfer LPøø | 4.05 | 11-1-2050 | 6,000,000 | 6,035,991 | ||
Port Beaumont Navigation District Jefferson 2020 Bond Lessee & Borrower LLC Obligated Group Series A AMT144A | 2.50 | 1-1-2030 | 800,000 | 648,305 | ||
Port Beaumont Navigation District Jefferson 2020 Bond Lessee & Borrower LLC Obligated Group Series A AMT144A | 2.63 | 1-1-2031 | 800,000 | 635,684 | ||
Port Beaumont Navigation District Jefferson 2020 Bond Lessee & Borrower LLC Obligated Group Series A AMT144A | 2.75 | 1-1-2036 | 1,500,000 | 1,064,119 | ||
11,251,857 | ||||||
The accompanying notes are an integral part of these financial statements.
46 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue: 0.16% | ||||||
Lower Colorado River Authority LCRA Transmission Services Corp. | 5.00 % | 5-15-2028 | $ | 1,845,000 | $1,867,674 | |
Lower Colorado River Authority LCRA Transmission Services Corp. Series A (AGM Insured) | 4.00 | 5-15-2043 | 1,250,000 | 1,235,395 | ||
3,103,069 | ||||||
Resource recovery revenue: 0.25% | ||||||
Brazoria County Industrial Development Corp. Aleon Renewable Metals LLC AMT144A | 12.00 | 6-1-2043 | 5,000,000 | 4,999,677 | ||
Transportation revenue: 0.43% | ||||||
Central Texas Regional Mobility Authority Series F BAN | 5.00 | 1-1-2025 | 2,000,000 | 2,027,095 | ||
County of Harris Series B | 5.00 | 8-15-2026 | 1,280,000 | 1,321,768 | ||
Texas Private Activity Bond Surface Transportation Corp. NTE Mobility Partners LLC Series A | 5.00 | 12-31-2030 | 1,000,000 | 1,062,276 | ||
Texas Private Activity Bond Surface Transportation Corp. NTE Mobility Partners LLC Series A | 5.00 | 12-31-2032 | 1,000,000 | 1,060,910 | ||
Texas Private Activity Bond Surface Transportation Corp. NTE Mobility Partners LLC Series A | 5.00 | 12-31-2033 | 3,000,000 | 3,177,097 | ||
8,649,146 | ||||||
Utilities revenue: 0.41% | ||||||
City of San Antonio Electric & Gas Systems Revenueøø | 1.75 | 2-1-2049 | 4,250,000 | 4,012,877 | ||
Lower Colorado River Authority (AGM Insured) | 5.00 | 5-15-2029 | 1,745,000 | 1,947,207 | ||
Lower Colorado River Authority (AGM Insured) | 5.00 | 5-15-2030 | 990,000 | 1,123,849 | ||
Texas Municipal Gas Acquisition & Supply Corp. III | 5.00 | 12-15-2024 | 1,100,000 | 1,112,558 | ||
8,196,491 | ||||||
Water & sewer revenue: 1.42% | ||||||
City of Dallas Waterworks & Sewer System Revenue Series A | 5.00 | 10-1-2029 | 16,225,000 | 17,152,541 | ||
City of Fort Worth Water & Sewer System Revenue | 4.13 | 2-15-2046 | 3,000,000 | 2,971,993 | ||
City of Garland Water & Sewer System Revenue | 4.00 | 3-1-2041 | 2,255,000 | 2,229,707 | ||
City of Garland Water & Sewer System Revenue | 4.00 | 3-1-2042 | 1,185,000 | 1,165,913 | ||
Texas Water Development Board State Water Implementation Revenue Fund for Texas | 4.00 | 10-15-2045 | 5,000,000 | 4,998,511 | ||
28,518,665 | ||||||
161,970,311 | ||||||
Utah: 0.53% | ||||||
Airport revenue: 0.20% | ||||||
City of Salt Lake City Airport Revenue Series A AMT | 5.00 | 7-1-2029 | 1,000,000 | 1,067,554 | ||
City of Salt Lake City Airport Revenue Series A AMT | 5.00 | 7-1-2031 | 2,705,000 | 2,883,904 | ||
3,951,458 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 47
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue: 0.05% | ||||||
Utah Charter School Finance Authority Freedom Academy Foundation Series A144A | 3.25 % | 6-15-2031 | $ | 540,000 | $480,948 | |
Utah Charter School Finance Authority Ronald Wilson Reagan Academy Series A144A | 3.50 | 2-15-2026 | 655,000 | 632,289 | ||
1,113,237 | ||||||
Health revenue: 0.08% | ||||||
County of Utah Intermountain Healthcare Obligated Group Series A | 4.00 | 5-15-2043 | 1,635,000 | 1,586,828 | ||
Miscellaneous revenue: 0.20% | ||||||
Mida Mountain Village Public Infrastructure District Mountain Village Assessment Area No 2144A | 4.00 | 8-1-2024 | 1,000,000 | 990,651 | ||
Mida Mountain Village Public Infrastructure District Mountain Village Assessment Area No. 2144A | 4.00 | 8-1-2026 | 1,000,000 | 969,251 | ||
Mida Mountain Village Public Infrastructure District Mountain Village Assessment Area No. 2144A | 4.00 | 8-1-2028 | 1,000,000 | 955,599 | ||
Mida Mountain Village Public Infrastructure District Mountain Village Assessment Area No. 2144A | 4.00 | 8-1-2029 | 580,000 | 549,643 | ||
Mida Mountain Village Public Infrastructure District Mountain Village Assessment Area No. 2144A | 4.00 | 8-1-2030 | 680,000 | 638,492 | ||
4,103,636 | ||||||
10,755,159 | ||||||
Vermont: 0.07% | ||||||
Housing revenue: 0.07% | ||||||
Vermont Housing Finance Agency Series A (GNMA / FNMA / FHLMC Insured) | 3.75 | 11-1-2050 | 1,365,000 | 1,345,836 | ||
Virginia: 1.48% | ||||||
Education revenue: 0.05% | ||||||
Virginia College Building Authority Regent University | 5.00 | 6-1-2029 | 330,000 | 344,604 | ||
Virginia College Building Authority Regent University | 5.00 | 6-1-2030 | 350,000 | 367,524 | ||
Virginia College Building Authority Regent University | 5.00 | 6-1-2031 | 300,000 | 316,358 | ||
1,028,486 | ||||||
GO revenue: 0.13% | ||||||
County of Arlington Series A | 4.00 | 8-1-2040 | 2,500,000 | 2,526,475 | ||
Health revenue: 0.03% | ||||||
Roanoke EDA Richfield Living Obligated Group Series 2020† | 4.30 | 9-1-2030 | 770,000 | 584,483 | ||
Transportation revenue: 0.75% | ||||||
Toll Road Investors Partnership II LP Series 1999B (NPFGC Insured)144A¤ | 0.00 | 2-15-2029 | 10,000,000 | 6,762,132 | ||
Virginia Small Business Financing Authority 95 Express Lanes LLC AMT | 5.00 | 1-1-2032 | 3,225,000 | 3,488,803 | ||
The accompanying notes are an integral part of these financial statements.
48 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Transportation revenue (continued) | ||||||
Virginia Small Business Financing Authority 95 Express Lanes LLC AMT | 5.00 % | 7-1-2032 | $ | 2,800,000 | $3,027,208 | |
Virginia Small Business Financing Authority Elizabeth River Crossings OpCo LLC AMT | 4.00 | 7-1-2029 | 1,750,000 | 1,755,369 | ||
15,033,512 | ||||||
Utilities revenue: 0.52% | ||||||
Louisa IDA Virginia Electric & Power Co. Series Cøø | 1.65 | 11-1-2035 | 2,000,000 | 1,946,378 | ||
Wise County IDA Virginia Electric & Power Co. Series Aøø | 0.75 | 10-1-2040 | 5,000,000 | 4,583,007 | ||
York County EDA Virginia Electric & Power Co. Series Aøø | 3.65 | 5-1-2033 | 4,000,000 | 3,984,004 | ||
10,513,389 | ||||||
29,686,345 | ||||||
Washington: 2.39% | ||||||
Airport revenue: 0.10% | ||||||
Port of Seattle Series A AMT | 5.00 | 5-1-2036 | 2,030,000 | 2,102,377 | ||
GO revenue: 0.12% | ||||||
State of Washington | 5.00 | 6-1-2029 | 1,000,000 | 1,126,688 | ||
State of Washington | 5.00 | 6-1-2030 | 1,150,000 | 1,319,668 | ||
2,446,356 | ||||||
Health revenue: 1.20% | ||||||
Skagit County Public Hospital District No. 1 | 5.00 | 12-1-2029 | 3,975,000 | 4,095,708 | ||
Washington Health Care Facilities Authority CommonSpirit Health Obligated Group Series B-2 (SIFMA Municipal Swap+1.40%)± | 5.41 | 1-1-2035 | 11,000,000 | 11,004,241 | ||
Washington Health Care Facilities Authority CommonSpirit Health Obligated Group Series B3øø | 5.00 | 8-1-2049 | 3,000,000 | 3,091,855 | ||
Washington Health Care Facilities Authority Providence St. Joseph Health Obligated Group Series D | 5.00 | 10-1-2038 | 3,000,000 | 3,003,116 | ||
Washington Health Care Facilities Authority Providence St. Joseph Health Obligated Group Series D | 5.00 | 10-1-2041 | 1,000,000 | 1,000,706 | ||
Washington State Housing Finance Commission Eliseo Obligated Group Series B-2144A | 2.13 | 7-1-2027 | 1,500,000 | 1,351,331 | ||
Washington State Housing Finance Commission Spokane United Methodist Homes Obligated Group Series B2144A | 3.00 | 7-1-2027 | 535,000 | 535,000 | ||
24,081,957 | ||||||
Housing revenue: 0.72% | ||||||
King County Housing Authority | 2.00 | 10-1-2033 | 600,000 | 507,363 | ||
King County Housing Authority | 2.13 | 10-1-2036 | 2,000,000 | 1,571,435 | ||
King County Housing Authority | 4.00 | 10-1-2029 | 225,000 | 231,781 | ||
King County Housing Authority | 4.00 | 10-1-2030 | 200,000 | 206,398 | ||
King County Housing Authority | 4.00 | 10-1-2031 | 290,000 | 297,231 | ||
Seattle Housing Authority Northgate Plaza Project | 1.00 | 6-1-2026 | 2,000,000 | 1,829,585 | ||
Snohomish County Housing Authority | 5.00 | 4-1-2027 | 1,130,000 | 1,195,596 | ||
Snohomish County Housing Authority | 5.00 | 4-1-2028 | 1,610,000 | 1,729,731 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 49
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
Snohomish County Housing Authority | 5.00 % | 4-1-2029 | $ | 1,690,000 | $1,841,169 | |
Washington State Housing Finance Commission Downtowner Apartments Project (FHLMC LIQ) | 3.70 | 7-1-2030 | 5,000,000 | 5,033,940 | ||
14,444,229 | ||||||
Tax revenue: 0.09% | ||||||
Central Puget Sound Regional Transit Authority Series S-1 | 5.00 | 11-1-2050 | 810,000 | 847,265 | ||
Central Puget Sound Regional Transit Authority Sales & Rental Car Taxes Revenue Series S-1 | 5.00 | 11-1-2036 | 1,000,000 | 1,046,006 | ||
1,893,271 | ||||||
Utilities revenue: 0.16% | ||||||
City of Seattle Municipal Light & Power Revenue Series B (SIFMA Municipal Swap+0.25%)± | 4.26 | 5-1-2045 | 3,250,000 | 3,195,525 | ||
48,163,715 | ||||||
West Virginia: 0.48% | ||||||
Education revenue: 0.05% | ||||||
West Virginia University Series Bøø | 5.00 | 10-1-2041 | 1,000,000 | 1,098,425 | ||
Tax revenue: 0.14% | ||||||
Monongalia County Commission Excise Tax District Series A144A | 4.13 | 6-1-2043 | 855,000 | 757,374 | ||
Monongalia County Commission Excise Tax District Series A144A | 4.50 | 6-1-2027 | 2,090,000 | 2,093,937 | ||
2,851,311 | ||||||
Utilities revenue: 0.25% | ||||||
West Virginia EDA Wheeling Power Co. Series 2013-A AMTøø | 3.00 | 6-1-2037 | 5,245,000 | 4,997,529 | ||
Water & sewer revenue: 0.04% | ||||||
City of Parkersburg Combined Waterworks & Sewerage System Revenue Series A (BAM Insured) | 3.00 | 8-1-2024 | 400,000 | 398,189 | ||
City of Parkersburg Combined Waterworks & Sewerage System Revenue Series A (BAM Insured) | 3.00 | 8-1-2025 | 400,000 | 396,380 | ||
794,569 | ||||||
9,741,834 | ||||||
Wisconsin: 1.81% | ||||||
Education revenue: 0.34% | ||||||
Milwaukee RDA Milwaukee Science Education Consortium, Inc. | 4.75 | 8-1-2023 | 220,000 | 220,222 | ||
PFA Corvian Community School, Inc. Series A144A | 4.00 | 6-15-2029 | 810,000 | 756,882 | ||
PFA Corvian Community School, Inc. Series A144A | 4.25 | 6-15-2029 | 765,000 | 724,475 | ||
PFA Estancia Valley Classical Academy Series A144A | 4.00 | 7-1-2031 | 1,150,000 | 1,009,035 | ||
PFA Foundation of The University of North Carolina at Charlotte Inc Series A144A | 4.00 | 9-1-2036 | 1,000,000 | 895,599 | ||
PFA Nevada Charter Academies Series A144A | 4.00 | 7-15-2029 | 575,000 | 541,667 | ||
PFA Pine Lake Preparatory, Inc.144A | 4.35 | 3-1-2025 | 770,000 | 763,634 | ||
PFA Roseman University of Health Sciences144A | 4.00 | 4-1-2032 | 865,000 | 826,410 | ||
The accompanying notes are an integral part of these financial statements.
50 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
PFA Triad Educational Services, Inc. | 4.25 % | 6-15-2027 | $ | 480,000 | $472,167 | |
PFA Triad Educational Services, Inc. | 5.00 | 6-15-2032 | 725,000 | 744,991 | ||
6,955,082 | ||||||
GO revenue: 0.60% | ||||||
Eau Claire Area School District | 5.00 | 4-1-2024 | 1,000,000 | 1,013,210 | ||
Milwaukee Metropolitan Sewerage District Series A | 4.00 | 10-1-2043 | 8,000,000 | 7,846,823 | ||
State of Wisconsin Series 2 | 5.00 | 11-1-2029 | 3,000,000 | 3,166,562 | ||
12,026,595 | ||||||
Health revenue: 0.32% | ||||||
PFA Texas Biomedical Research Institute Series A | 5.00 | 6-1-2029 | 175,000 | 187,187 | ||
PFA Texas Biomedical Research Institute Series A | 5.00 | 6-1-2030 | 175,000 | 189,214 | ||
PFA Texas Biomedical Research Institute Series A | 5.00 | 6-1-2031 | 275,000 | 300,242 | ||
PFA Texas Biomedical Research Institute Series A | 5.00 | 6-1-2032 | 350,000 | 376,755 | ||
PFA Texas Biomedical Research Institute Series A | 5.00 | 6-1-2033 | 550,000 | 591,414 | ||
PFA Texas Biomedical Research Institute Series A | 5.00 | 6-1-2034 | 570,000 | 614,325 | ||
PFA Washoe Barton Medical Clinic Series A | 4.00 | 12-1-2031 | 700,000 | 670,685 | ||
Wisconsin HEFA Beloit Health System Obligated Group | 5.00 | 7-1-2027 | 1,145,000 | 1,206,145 | ||
Wisconsin HEFA Beloit Health System Obligated Group | 5.00 | 7-1-2028 | 600,000 | 641,696 | ||
Wisconsin HEFA St. Camillus Health System Obligated Group Series A | 5.00 | 11-1-2027 | 375,000 | 360,325 | ||
Wisconsin HEFA St. Camillus Health System Obligated Group Series A | 5.00 | 11-1-2028 | 470,000 | 447,787 | ||
Wisconsin HEFA St. John’s Communities, Inc. Obligated Group | 4.00 | 9-15-2029 | 895,000 | 852,818 | ||
6,438,593 | ||||||
Industrial development revenue: 0.33% | ||||||
PFA Customer Facility Charge-SA LLC Series A | 3.75 | 2-1-2032 | 850,000 | 802,033 | ||
PFA Customer Facility Charge-SA LLC Series B144A | 5.50 | 2-1-2042 | 5,950,000 | 5,950,781 | ||
6,752,814 | ||||||
Miscellaneous revenue: 0.14% | ||||||
Wisconsin Center District Series C CAB (AGM Insured)¤ | 0.00 | 12-15-2029 | 1,050,000 | 831,421 | ||
Wisconsin Center District Series C CAB (AGM Insured)¤ | 0.00 | 12-15-2031 | 1,350,000 | 979,954 | ||
Wisconsin Center District Series D CAB (AGM Insured)¤ | 0.00 | 12-15-2028 | 260,000 | 214,166 | ||
Wisconsin Center District Series D CAB (AGM Insured)¤ | 0.00 | 12-15-2029 | 390,000 | 308,814 | ||
Wisconsin Center District Series D CAB (AGM Insured)¤ | 0.00 | 12-15-2030 | 550,000 | 417,276 | ||
2,751,631 | ||||||
Water & sewer revenue: 0.08% | ||||||
State of Wisconsin Clean Water Fund Leveraged Loan Portfolio Series 1 | 5.00 | 6-1-2026 | 1,525,000 | 1,547,522 | ||
36,472,237 | ||||||
Total municipal obligations (Cost $2,077,267,336) | 1,995,532,894 | |||||
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 51
Portfolio of investments—June 30, 2023
Yield | Shares | Value | ||||
Short-term investments: 0.20% | ||||||
Investment companies: 0.20% | ||||||
Allspring Municipal Cash Management Money Market Fund Institutional Class♠∞## | 4.07 % | 4,072,289 | $4,073,103 | |||
Total short-term investments (Cost $4,073,092) | 4,073,103 | |||||
Total investments in securities (Cost $2,084,340,428) | 99.61 % | 2,002,605,997 | ||||
Other assets and liabilities, net | 0.39 | 7,926,037 | ||||
Total net assets | 100.00 % | $2,010,532,034 | ||||
144A | The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
€ | The security is an auction-rate security which has an interest rate that resets at predetermined short-term intervals through a Dutch auction. 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 purchased on a when-issued basis. |
## | All or a portion of this security is segregated for when-issued securities. |
† | 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: | |
AGC | Assured Guaranty Corporation |
AGM | Assured Guaranty Municipal |
Ambac | Ambac Financial Group Incorporated |
AMT | Alternative minimum tax |
BAM | Build America Mutual Assurance Company |
BAN | Bond anticipation note |
CAB | Capital appreciation bond |
CDA | Community Development Authority |
ECFA | Educational & Cultural Facilities Authority |
EDA | Economic Development Authority |
EDFA | Economic Development Finance Authority |
FHA | Federal Housing Administration |
FHLMC | Federal Home Loan Mortgage Corporation |
FNMA | Federal National Mortgage Association |
GNMA | Government National Mortgage Association |
GO | General obligation |
HEFA | Health & Educational Facilities Authority |
HFA | Housing Finance Authority |
HFFA | Health Facilities Financing Authority |
IDA | Industrial Development Authority |
LIBOR | London Interbank Offered Rate |
LIQ | Liquidity agreement |
LOC | Letter of credit |
NPFGC | National Public Finance Guarantee Corporation |
PFA | Public Finance Authority |
RDA | Redevelopment Authority |
SBLF | Small Business Lending Fund |
SIFMA | Securities Industry and Financial Markets Association |
SOFR | Secured Overnight Financing Rate |
TTFA | Transportation Trust Fund Authority |
The accompanying notes are an integral part of these financial statements.
52 | Allspring Strategic Municipal Bond Fund
Portfolio of investments—June 30, 2023
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 Municipal Cash Management Money Market Fund Institutional Class | $63,253,150 | $698,065,373 | $(757,223,913 ) | $(19,395 ) | $(2,112 ) | $4,073,103 | 4,072,289 | $894,203 |
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 53
Statement of assets and liabilities—June 30, 2023
Financial statements
Statement of assets and liabilities
Assets | |
Investments in unaffiliated securities, at value (cost $2,080,267,336) | $1,998,532,894 |
Investments in affiliated securities, at value (cost $4,073,092) | 4,073,103 |
Cash | 181 |
Receivable for interest | 20,444,140 |
Receivable for investments sold | 4,963,004 |
Receivable for Fund shares sold | 4,047,852 |
Prepaid expenses and other assets | 104,295 |
Total assets | 2,032,165,469 |
Liabilities | |
Payable for when-issued transactions | 14,049,948 |
Payable for Fund shares redeemed | 5,686,692 |
Dividends payable | 881,083 |
Management fee payable | 639,925 |
Administration fees payable | 171,767 |
Distribution fee payable | 18,293 |
Trustees’ fees and expenses payable | 6,149 |
Accrued expenses and other liabilities | 179,578 |
Total liabilities | 21,633,435 |
Total net assets | $2,010,532,034 |
Net assets consist of | |
Paid-in capital | $2,122,594,296 |
Total distributable loss | (112,062,262 ) |
Total net assets | $2,010,532,034 |
Computation of net asset value and offering price per share | |
Net assets–Class A | $407,927,757 |
Shares outstanding–Class A1 | 47,006,713 |
Net asset value per share–Class A | $8.68 |
Maximum offering price per share – Class A2 | $9.04 |
Net assets–Class C | $27,858,058 |
Shares outstanding–Class C1 | 3,199,146 |
Net asset value per share–Class C | $8.71 |
Net assets–Class R6 | $24,489,603 |
Shares outstanding–Class R61 | 2,821,909 |
Net asset value per share–Class R6 | $8.68 |
Net assets–Administrator Class | $48,377,613 |
Shares outstanding–Administrator Class1 | 5,577,362 |
Net asset value per share–Administrator Class | $8.67 |
Net assets–Institutional Class | $1,501,879,003 |
Shares outstanding–Institutional Class1 | 173,111,626 |
Net asset value per share–Institutional Class | $8.68 |
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 financial statements.
54 | Allspring Strategic Municipal Bond Fund
Statement of operations—year ended June 30, 2023
Statement of operations
Investment income | |
Interest | $59,811,834 |
Income from affiliated securities | 894,203 |
Total investment income | 60,706,037 |
Expenses | |
Management fee | 7,977,319 |
Administration fees | |
Class A | 724,816 |
Class C | 52,831 |
Class R6 | 4,689 |
Administrator Class | 56,480 |
Institutional Class | 1,290,514 |
Shareholder servicing fees | |
Class A | 1,130,438 |
Class C | 82,270 |
Administrator Class | 139,657 |
Distribution fee | |
Class C | 246,808 |
Custody and accounting fees | 107,070 |
Professional fees | 82,445 |
Registration fees | 126,552 |
Shareholder report expenses | 87,581 |
Trustees’ fees and expenses | 22,721 |
Other fees and expenses | 58,996 |
Total expenses | 12,191,187 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (20,811 ) |
Class A | (451 ) |
Administrator Class | (32,060 ) |
Net expenses | 12,137,865 |
Net investment income | 48,568,172 |
Realized and unrealized gains (losses) on investments | |
Net realized gains (losses) on | |
Unaffiliated securities | (11,446,748 ) |
Affiliated securities | (19,395 ) |
Futures contracts | 31,058 |
Net realized losses on investments | (11,435,085 ) |
Net change in unrealized gains (losses) on | |
Unaffiliated securities | 5,894,904 |
Affiliated securities | (2,112 ) |
Futures contracts | 56,590 |
Net change in unrealized gains (losses) on investments | 5,949,382 |
Net realized and unrealized gains (losses) on investments | (5,485,703 ) |
Net increase in net assets resulting from operations | $43,082,469 |
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 55
Statement of changes in net assets
Statement of changes in net assets
Year ended June 30, 2023 | Year ended June 30, 2022 | |||
Operations | ||||
Net investment income | $48,568,172 | $47,681,555 | ||
Net realized losses on investments | (11,435,085 ) | (10,033,222 ) | ||
Net change in unrealized gains (losses) on investments | 5,949,382 | (200,621,301 ) | ||
Net increase (decrease) in net assets resulting from operations | 43,082,469 | (162,972,968 ) | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class A | (9,050,337 ) | (8,226,378 ) | ||
Class C | (410,231 ) | (312,087 ) | ||
Class R6 | (382,545 ) | (240,075 ) | ||
Administrator Class | (1,184,938 ) | (1,512,513 ) | ||
Institutional Class | (37,545,117 ) | (37,387,253 ) | ||
Total distributions to shareholders | (48,573,168 ) | (47,678,306 ) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class A | 9,138,756 | 79,081,429 | 10,739,692 | 98,440,532 |
Class C | 463,984 | 3,997,713 | 636,058 | 5,888,091 |
Class R6 | 2,155,461 | 18,817,504 | 576,086 | 5,291,077 |
Administrator Class | 782,594 | 6,735,821 | 3,043,843 | 28,151,678 |
Institutional Class | 84,615,361 | 731,366,768 | 105,486,944 | 953,288,175 |
839,999,235 | 1,091,059,553 | |||
Reinvestment of distributions | ||||
Class A | 923,677 | 7,978,929 | 813,995 | 7,373,477 |
Class C | 43,942 | 380,788 | 31,998 | 289,895 |
Class R6 | 19,072 | 164,796 | 16,150 | 146,388 |
Administrator Class | 130,634 | 1,128,390 | 162,068 | 1,469,491 |
Institutional Class | 3,714,574 | 32,089,865 | 3,602,410 | 32,646,734 |
41,742,768 | 41,925,985 | |||
Payment for shares redeemed | ||||
Class A | (21,646,610 ) | (186,740,121 ) | (19,694,585 ) | (177,517,874 ) |
Class C | (1,866,372 ) | (16,196,066 ) | (2,145,684 ) | (19,520,756 ) |
Class R6 | (620,716 ) | (5,327,315 ) | (1,210,075 ) | (11,157,810 ) |
Administrator Class | (4,190,566 ) | (36,177,224 ) | (6,280,931 ) | (56,916,202 ) |
Institutional Class | (123,394,925 ) | (1,063,878,668 ) | 143,530,875 | (1,284,623,827 ) |
(1,308,319,394 ) | (1,549,736,469 ) | |||
Net decrease in net assets resulting from capital share transactions | (426,577,391 ) | (416,750,931 ) | ||
Total decrease in net assets | (432,068,090 ) | (627,402,205 ) | ||
Net assets | ||||
Beginning of period | 2,442,600,124 | 3,070,002,329 | ||
End of period | $2,010,532,034 | $2,442,600,124 | ||
The accompanying notes are an integral part of these consolidated financial statements.
56 | Allspring Strategic Municipal Bond Fund
Financial highlights
Financial highlights
(For a share outstanding throughout each period)
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class A | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $8.68 | $9.33 | $9.17 | $9.14 | $8.93 |
Net investment income | 0.17 | 0.13 | 0.14 | 0.17 | 0.18 |
Net realized and unrealized gains (losses) on investments | 0.00 1 | (0.65 ) | 0.16 | 0.03 | 0.21 |
Total from investment operations | 0.17 | (0.52 ) | 0.30 | 0.20 | 0.39 |
Distributions to shareholders from | |||||
Net investment income | (0.17 ) | (0.13 ) | (0.14 ) | (0.16 ) | (0.18 ) |
Net realized gains | 0.00 | 0.00 | 0.00 | (0.01 ) | 0.00 |
Total distributions to shareholders | (0.17 ) | (0.13 ) | (0.14 ) | (0.17 ) | (0.18 ) |
Net asset value, end of period | $8.68 | $8.68 | $9.33 | $9.17 | $9.14 |
Total return2 | 2.03 % | (5.66 )% | 3.26 % | 2.23 % | 4.41 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.80 % | 0.79 % | 0.79 % | 0.79 % | 0.80 % |
Net expenses | 0.80 % | 0.79 % | 0.79 % | 0.79 % | 0.80 % |
Net investment income | 2.00 % | 1.38 % | 1.47 % | 1.81 % | 1.99 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 24 % | 11 % | 26 % | 29 % |
Net assets, end of period (000s omitted) | $407,928 | $508,573 | $622,409 | $545,670 | $528,004 |
1 | Amount is less than $0.005. |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 57
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class C | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $8.71 | $9.36 | $9.20 | $9.17 | $8.96 |
Net investment income | 0.12 | 0.06 | 0.07 | 0.10 | 0.11 1 |
Net realized and unrealized gains (losses) on investments | (0.01 ) | (0.65 ) | 0.16 | 0.04 | 0.21 |
Total from investment operations | 0.11 | (0.59 ) | 0.23 | 0.14 | 0.32 |
Distributions to shareholders from | |||||
Net investment income | (0.11 ) | (0.06 ) | (0.07 ) | (0.10 ) | (0.11 ) |
Net realized gains | 0.00 | 0.00 | 0.00 | (0.01 ) | 0.00 |
Total distributions to shareholders | (0.11 ) | (0.06 ) | (0.07 ) | (0.11 ) | (0.11 ) |
Net asset value, end of period | $8.71 | $8.71 | $9.36 | $9.20 | $9.17 |
Total return2 | 1.27 % | (6.34 )% | 2.49 % | 1.47 % | 3.62 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.55 % | 1.54 % | 1.54 % | 1.54 % | 1.55 % |
Net expenses | 1.55 % | 1.54 % | 1.54 % | 1.54 % | 1.55 % |
Net investment income | 1.24 % | 0.62 % | 0.72 % | 1.06 % | 1.24 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 24 % | 11 % | 26 % | 29 % |
Net assets, end of period (000s omitted) | $27,858 | $39,696 | $56,483 | $69,472 | $82,331 |
1 | Calculated based upon average shares outstanding |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
58 | Allspring Strategic Municipal Bond Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class R6 | 2023 | 2022 | 2021 | 2020 | 20191 |
Net asset value, beginning of period | $8.68 | $9.33 | $9.17 | $9.15 | $8.94 |
Net investment income | 0.21 | 0.16 | 0.17 | 0.20 | 0.20 |
Net realized and unrealized gains (losses) on investments | 0.00 2 | (0.65 ) | 0.16 | 0.03 | 0.21 |
Total from investment operations | 0.21 | (0.49 ) | 0.33 | 0.23 | 0.41 |
Distributions to shareholders from | |||||
Net investment income | (0.21 ) | (0.16 ) | (0.17 ) | (0.20 ) | (0.20 ) |
Net realized gains | 0.00 | 0.00 | 0.00 | (0.01 ) | 0.00 |
Total distributions to shareholders | (0.21 ) | (0.16 ) | (0.17 ) | (0.21 ) | (0.20 ) |
Net asset value, end of period | $8.68 | $8.68 | $9.33 | $9.17 | $9.15 |
Total return3 | 2.42 % | (5.30 )% | 3.65 % | 2.51 % | 4.61 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.42 % | 0.41 % | 0.41 % | 0.41 % | 0.41 % |
Net expenses | 0.42 % | 0.41 % | 0.41 % | 0.41 % | 0.41 % |
Net investment income | 2.45 % | 1.74 % | 1.85 % | 2.19 % | 2.39 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 24 % | 11 % | 26 % | 29 % |
Net assets, end of period (000s omitted) | $24,490 | $11,008 | $17,590 | $20,459 | $13,291 |
1 | For the period from July 31, 2018 (commencement of class operations) to June 30, 2019 |
2 | Amount is less than $0.005. |
3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 59
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Administrator Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $8.68 | $9.32 | $9.17 | $9.14 | $8.93 |
Net investment income | 0.18 | 0.13 | 0.15 | 0.17 | 0.19 |
Net realized and unrealized gains (losses) on investments | 0.00 1 | (0.63 ) | 0.15 | 0.04 | 0.21 |
Total from investment operations | 0.18 | (0.50 ) | 0.30 | 0.21 | 0.40 |
Distributions to shareholders from | |||||
Net investment income | (0.19 ) | (0.14 ) | (0.15 ) | (0.17 ) | (0.19 ) |
Net realized gains | 0.00 | 0.00 | 0.00 | (0.01 ) | 0.00 |
Total distributions to shareholders | (0.19 ) | (0.14 ) | (0.15 ) | (0.18 ) | (0.19 ) |
Net asset value, end of period | $8.67 | $8.68 | $9.32 | $9.17 | $9.14 |
Total return | 2.03 % | (5.46 )% | 3.27 % | 2.34 % | 4.53 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.74 % | 0.73 % | 0.73 % | 0.73 % | 0.73 % |
Net expenses | 0.68 % | 0.68 % | 0.68 % | 0.68 % | 0.68 % |
Net investment income | 2.10 % | 1.48 % | 1.58 % | 1.92 % | 2.10 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 24 % | 11 % | 26 % | 29 % |
Net assets, end of period (000s omitted) | $48,378 | $76,816 | $111,200 | $115,889 | $149,097 |
1 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
60 | Allspring Strategic Municipal Bond Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Institutional Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $8.68 | $9.32 | $9.17 | $9.14 | $8.93 |
Net investment income | 0.20 | 0.16 | 0.17 | 0.20 | 0.21 |
Net realized and unrealized gains (losses) on investments | 0.00 1 | (0.64 ) | 0.15 | 0.04 | 0.21 |
Total from investment operations | 0.20 | (0.48 ) | 0.32 | 0.24 | 0.42 |
Distributions to shareholders from | |||||
Net investment income | (0.20 ) | (0.16 ) | (0.17 ) | (0.20 ) | (0.21 ) |
Net realized gains | 0.00 | 0.00 | 0.00 | (0.01 ) | 0.00 |
Total distributions to shareholders | (0.20 ) | (0.16 ) | (0.17 ) | (0.21 ) | (0.21 ) |
Net asset value, end of period | $8.68 | $8.68 | $9.32 | $9.17 | $9.14 |
Total return | 2.37 % | (5.25 )% | 3.49 % | 2.57 % | 4.75 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.47 % | 0.46 % | 0.46 % | 0.46 % | 0.47 % |
Net expenses | 0.47 % | 0.46 % | 0.46 % | 0.46 % | 0.47 % |
Net investment income | 2.33 % | 1.71 % | 1.80 % | 2.14 % | 2.32 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 24 % | 11 % | 26 % | 29 % |
Net assets, end of period (000s omitted) | $1,501,879 | $1,806,507 | $2,262,320 | $1,829,368 | $1,647,093 |
1 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
Allspring Strategic Municipal Bond Fund | 61
Notes to financial statements
Notes to financial statements
1.
ORGANIZATION
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Strategic Municipal 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.
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.
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 any of 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.
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.
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 and 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 received 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.
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
62 | Allspring Strategic Municipal Bond Fund
Notes to financial statements
been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, 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 June 30, 2023, the aggregate cost of all investments for federal income tax purposes was $2,084,932,887 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $4,921,949 |
Gross unrealized losses | (87,248,839 ) |
Net unrealized losses | $(82,326,890 ) |
As of June 30, 2023, the Fund had capital loss carryforwards which consist of $16,235,227 in short-term capital losses and $13,582,589 in long-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 Strategic Municipal Bond Fund | 63
Notes to financial statements
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2023:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Closed-end fund obligations | $0 | $3,000,000 | $0 | $3,000,000 |
Municipal obligations | 0 | 1,995,532,894 | 0 | 1,995,532,894 |
Short-term investments | ||||
Investment companies | 4,073,103 | 0 | 0 | 4,073,103 |
Total assets | $4,073,103 | $1,998,532,894 | $0 | $2,002,605,997 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended June 30, 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 | 0.400 % |
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 year ended June 30, 2023, the management fee was equivalent to an annual rate of 0.37% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.20% 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 | 0.15 % |
Class C | 0.15 |
Class R6 | 0.03 |
Administrator Class | 0.10 |
Institutional Class | 0.08 |
Prior to June 30, 2023, the class-level administration fee for Class A and Class C was 0.16% of the average daily net assets of each respective class.
64 | Allspring Strategic Municipal Bond Fund
Notes to financial statements
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 October 31, 2023 (October 31, 2024 for Class A and Class C) 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 June 30, 2023, the contractual expense caps are as follows:
EXPENSE RATIO CAPS | |
Class A | 0.79 % |
Class C | 1.54 |
Class R6 | 0.42 |
Administrator Class | 0.68 |
Institutional Class | 0.47 |
Prior to June 30, 2023, the Fund’s expenses were contractually capped at 0.80% for Class A shares and 1.55% for Class C shares. Prior to November 1, 2022, the Fund’s expenses were contractually capped at 0.81% for Class A shares, 1.56% for Class C shares, 0.43% for Class R6 shares and 0.48% for Institutional Class shares.
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 year ended June 30, 2023, Allspring Funds Distributor received $2,409 from the sale of Class A shares and $115 in contingent deferred sales charges from redemptions of Class C shares. No contingent deferred sales charges were incurred by Class A shares for the year ended June 30, 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. Pursuant to these procedures, the Fund had $115,460,733, $87,400,000 and $0 in interfund purchases, sales and net realized gains (losses), respectively, during the year ended June 30, 2023.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2023 were $303,364,336 and $524,674,730, respectively.
6.
DERIVATIVE TRANSACTIONS
During the year ended June 30, 2023, the Fund entered into futures contracts to take advantage of the differences between municipal and treasury yields and to help manage the duration of the portfolio. The Fund had an average notional amount of $3,654,154 in short futures contracts during the year ended June 30, 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.
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
Allspring Strategic Municipal Bond Fund | 65
Notes to financial statements
requests. Interest under the credit agreement is charged to the Fund based on 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 year ended June 30, 2023, there were no borrowings by the Fund under the agreement.
8.
DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid was $48,573,168 and $47,678,306 of tax-exempt income for the years ended June 30, 2023 and June 30, 2022, respectively.
As of June 30, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | Unrealized losses | Capital loss carryforward |
$971,921 | $(82,326,890 ) | $(29,817,816 ) |
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.
66 | Allspring Strategic Municipal Bond Fund
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring Strategic Municipal Bond Fund (the Fund), one of the funds constituting Allspring Funds Trust, including the portfolio of investments, as of June 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of June 30, 2023, by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
August 25, 2023
Allspring Strategic Municipal Bond Fund | 67
Other information (unaudited)
Other information
Tax information
Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2023.
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 1-866-259-3305, 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.
68 | Allspring Strategic Municipal 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 |
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 |
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.
Allspring Strategic Municipal Bond Fund | 69
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 |
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. |
70 | Allspring Strategic Municipal Bond Fund
Other information (unaudited)
Officers1
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 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 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 Strategic Municipal Bond Fund | 71
Other information (unaudited)
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 15-17, 2023 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Strategic Municipal Bond Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2023, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
The Board noted that it initially approved the Advisory Agreements at a Board meeting held in May 2021, each for a two-year term, in advance of the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC,1 a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. (the “Transaction”). The Trustees also noted that, while they did not specifically consider the continuation of the Advisory Agreements in 2022 as a result of the two-year term that was approved in 2021, the Trustees received and considered certain information at a Board meeting held in April 2022 that was applicable to the Advisory Agreements, including an overview and financial review of the Allspring Global Investments business, information regarding certain ancillary agreements that were approved by the Board at the April 2022 Board meeting, and comparative data regarding Fund fees and expenses.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2023. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business. The Board also considered information about retention arrangements with respect to key personnel of Allspring Global Investments that were put in place in connection with the Transaction. The Board took into account information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the Transaction under a transition services agreement and the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
1
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
72 | Allspring Strategic Municipal Bond Fund
Other information (unaudited)
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, and Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2022. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for the five- and ten-year periods under review, that the investment performance of the Fund was in range of the average investment performance of the Universe for the three-year period under review and that the investment performance of the Fund was lower than the average investment performance of the Universe for the one-year period under review. The Board also noted that the investment performance of the Fund was lower than the investment performance of its benchmark index, the Bloomberg Short-Intermediate Municipal Bond Index, for all periods under review, except that the investment performance of the Fund was higher than the investment performance of its benchmark index for the ten-year period under review. The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to changing market environments, including considerable variation in duration and a challenging peer group comparison, that affected the Fund’s investment performance.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were in range of the median net operating expense ratios of the expense Groups for each share class, except that the net operating expense ratios of the Fund were higher than the median net operating expense ratios of the expense Groups for the Class A shares. The Board noted that Allspring Funds Management had agreed to reduce the net operating expense caps for the Fund’s Class A shares.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were in range of the sum of these average rates for the Fund’s expense Groups for all share classes.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received
Allspring Strategic Municipal Bond Fund | 73
Other information (unaudited)
information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Profitability
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and differences in how Allspring Global Investments calculates its pre-tax profit metric versus the methodology used when Allspring Funds Management was part of Wells Fargo. It was noted that the impact of such differences had only minor impact on the financial results presented. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser and fees earned in the past by Allspring Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund complex’s securities lending collateral.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
74 | Allspring Strategic Municipal Bond Fund
Other information (unaudited)
Liquidity risk management program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that operate as money market funds), including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund’s investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the “Council”) composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 16-17, 2023, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2022 through December 31, 2022 (the “Reporting Period”). The Report noted significant liquidity events impacting the Funds related to extended foreign market holidays as well as the difficulty of trading and settlement of most Russia-related securities due to sanctions activity. The Report noted that there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage the Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
Allspring Strategic Municipal Bond Fund | 75
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
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.
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Contents
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The views expressed and any forward-looking statements are as of June 30, 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 Ultra Short-Term Municipal Income Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Ultra Short-Term Municipal Income Fund for the 12-month period that ended June 30, 2023. Globally, stocks and bonds experienced heightened volatility through the period. The market was focused on persistently high inflation and the impact of ongoing aggressive central bank rate hikes. Compounding these concerns were the global reverberations of the Russia-Ukraine war. Riskier assets rallied in 2023, with anticipation of an end to the tight monetary policy despite concerns of a possible impending recession. After suffering deep and broad losses through 2022, bonds now benefit from a base of higher yields that can help generate higher income. However, ongoing rate hikes continued to be a headwind during recent months.
For the 12-month period, stocks generally outperformed bonds—both domestic U.S. and global. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 19.59%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 12.72%, while the MSCI EM Index (Net) (USD)3 had more muted performance, with a gain of 1.75%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -0.94%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 fell 1.83%, the Bloomberg Municipal Bond Index6 gained 3.19%, and the ICE BofA U.S. High Yield Index7 returned 8.97%.
Despite high inflation and central bank rate hikes, markets rallied.
Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong: July nonfarm payrolls grew by more than 500,000 and U.S. unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices—major contributors to recent overall inflation—fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with mortgage rates at a 13-year high. The Federal Reserve (Fed) raised the federal funds rate 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to further rate hikes.
August was a broadly challenging month. High inflation persisted, cresting 9% in the eurozone on an annual basis and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June peak. One positive was the resilient U.S. jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act. Its primary stated goals include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“ Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong. ”
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 the 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 Ultra Short-Term Municipal Income Fund
Letter to shareholders (unaudited)
In September, all asset classes suffered further major losses. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar weighed on results for investors holding non-U.S.-dollar assets. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The Bank of England (BoE) then stepped in and bought long-dated government bonds.
Equities had a reprieve in October. 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 increasing 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.
Financial markets cooled in December, with U.S. equities declining overall in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever, with generally flat 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 wound 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 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.
Markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks would 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 was not falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the BoE and the European Central Bank (ECB) both raised rates by 0.50%.
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 banking industry turmoil created an additional challenge for central banks in balancing inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. 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 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. ”
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.
Allspring Ultra Short-Term Municipal Income Fund | 3
Letter to shareholders (unaudited)
Economic data released in April pointed to global resilience, as Purchasing Managers Indexes1 in the U.S., U.K., and eurozone beat expectations and China reported first-quarter annualized economic growth of 4.5%. Despite banking industry stress, developed market stocks had monthly gains. The U.S. labor market remained strong, with a 3.5% jobless rate and monthly payroll gains above 200,000. However, uncertainty and inflationary concerns weighed on investors in the U.S. and abroad.
May was marked by a divergence between expanding activity in services and an overall contraction in manufacturing activity in the U.S., U.K., and eurozone. Core inflation remained elevated in the U.S. and Europe, despite the ongoing efforts of the Fed and ECB, which included rate hikes of 0.25% by both in May. Stubborn inflation and the resilient U.S. labor market led to expectations of further interest rate hikes, overall monthly declines across bond indexes, and mixed results for stocks in May. Investor worries over a U.S. debt ceiling impasse were modest, and market confidence was buoyed by a deal in late May to avert a potential U.S. debt default.
June featured the Fed’s first pause on interest rate hikes since March 2022, when it began its aggressive campaign to rein in inflation. However, core CPI, excluding food and energy prices, while continuing to decline, remained stubbornly high in June, at 4.8%, well above the Fed’s 2.0% target rate. With the U.S. unemployment rate still at 3.6%, near a historical low, and U.S. payrolls growing in June for the 30th consecutive month, expectations of more Fed rate hikes were reinforced. However, U.S. and global stocks had strong returns in June.
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
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.
1
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.
4 | Allspring Ultra Short-Term Municipal Income Fund
Letter to shareholders (unaudited)
Notice to Shareholders |
Beginning in July 2024, the Fund will be required by the Securities and Exchange Commission to send shareholders a paper copy of a new tailored shareholder report in place of the full shareholder report that you are now receiving. The tailored shareholder report will contain concise information about the Fund, including certain expense and performance information and fund statistics. If you wish to receive this new tailored shareholder report electronically, please follow the instructions on the back cover of this report. |
Other information that is currently included in the shareholder report, such as the Fund’s financial statements, will be available online and upon request, free of charge, in paper or electronic format. |
Allspring Ultra Short-Term Municipal Income Fund | 5
Performance highlights (unaudited)
Performance highlights
Investment objective | The Fund seeks current income exempt from federal income tax, consistent with capital preservation. |
Manager | Allspring Funds Management, LLC |
Subadviser | Allspring Global Investments, LLC |
Portfolio manager | Bruce R. Johns, James Randazzo, Nicholos Venditti |
Average annual total returns (%) as of June 30, 2023 | |||||||||
Including sales charge | Excluding sales charge | Expense ratios1 (%) | |||||||
Inception date | 1 year | 5 year | 10 year | 1 year | 5 year | 10 year | Gross | Net2 | |
Class A (SMAVX) | 10-2-2000 | -0.21 | 0.35 | 0.35 | 1.83 | 0.76 | 0.55 | 0.66 | 0.50 |
Class A2 (WFUNX)3 | 5-29-2020 | – | – | – | 1.93 | 0.78 | 0.56 | 0.56 | 0.40 |
Class C (WFUSX) | 3-31-2008 | 0.62 | 0.36 | 0.02 | 1.62 | 0.36 | 0.02 | 1.41 | 1.25 |
Class R6 (WUSRX)4 | 7-31-2018 | – | – | – | 2.13 | 1.08 | 0.86 | 0.28 | 0.20 |
Administrator Class (WUSMX) | 7-30-2010 | – | – | – | 1.83 | 0.78 | 0.60 | 0.60 | 0.50 |
Institutional Class (SMAIX) | 7-31-2000 | – | – | – | 2.08 | 1.03 | 0.84 | 0.33 | 0.25 |
Ultra Short-Term Municipal Income Blended Index5 | – | – | – | – | 2.26 | 1.14 | 0.84 | – | – |
Bloomberg 1 Year Municipal Bond Index6 | – | – | – | – | 1.24 | 1.05 | 0.91 | – | – |
iMoneyNet Tax-Free National Institutional Money Market Funds Average7 | – | – | – | – | 3.28 | 1.23 | 0.76 | – | – |
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 2.00%. 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. Class A2, 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 October 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.50% for Class A, 0.40% for Class A2, 1.25% for Class C, 0.20% for Class R6, 0.50% for Administrator Class and 0.25% 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 for the Class A2 shares prior to their inception reflects the performance of the Class A shares, and includes the higher expenses applicable to the Class A shares. If these expenses had not been included, returns for the Class A2 shares would be higher. |
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 | Source: Allspring Funds Management LLC. The Ultra Short-Term Municipal Income Blended Index is composed 50% of the Bloomberg 1 Year Municipal Bond Index and 50% of the iMoneyNet Tax-Free National Institutional Money Market Funds Average. You cannot invest directly in an index. |
6 | The Bloomberg 1 Year Municipal Bond Index is the one-year component of the Bloomberg Municipal Bond Index, which 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 | iMoneyNet Tax-Free National Institutional Money Market Funds Average is the return of an unmanaged group of money market funds. You cannot invest directly in this average. |
6 | Allspring Ultra Short-Term Municipal Income Fund
Performance highlights (unaudited)
Growth of $10,000 investment as of June 30, 20231 |
1 | The chart compares the performance of Class A shares for the most recent ten years with the Ultra Short-Term Municipal Income Blended Index, Bloomberg 1 Year Municipal Bond Index and iMoneyNet Tax-Free National Institutional Money Market Funds Average. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 2.00%. |
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. 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 municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.
Allspring Ultra Short-Term Municipal Income Fund | 7
Performance highlights (unaudited)
MANAGER’S DISCUSSION
Fund highlights
•The Fund underperformed its benchmark, the Ultra Short-Term Municipal Income Blended Index for the 12-month period that ended June 30, 2023.
•Sector allocation was a modest detractor from performance along with lower-coupon bond structures.
•The Fund’s duration was shorter than the Bloomberg 1-Year Municipal Bond Index but longer than the Fund’s target duration. The short duration relative to the benchmark detracted from performance as interest rates increased across the curve, with the shortest rates underperforming.
•The Fund’s credit-quality allocations contributed to performance—being overweight to A-rated and BBB-rated bonds, which outperformed, and underweight to AAA-rated and AA-rated bonds, which underperformed. The single largest contributor to performance was individual security selection as the Fund’s bonds outperformed the market significantly. The modest barbell yield curve positioning also contributed.
Global economies increase lending rates in hopes of taming runaway inflation.
Entering 2022, the excitement of a post-pandemic world gave way to new whispers and fears of higher prices and broad-based inflation caused by supply chain bottlenecks, increased housing costs, wage increases, and employment market distortions. Those fears quickly became reality and prices began to rise at a historic rate. The Federal Open Market Committee acted quickly and with purpose: ending open market purchases, reducing its balance sheet, and raising the benchmark overnight lending rate at each monthly meeting through 2022 and early 2023. Fixed income and equity markets fell sharply but began to recover as annual inflation numbers peaked in June and began to recede.
The U.S. unemployment rate, which reached a multigenerational high of more than 14% in the spring of 2020, fell throughout the past year and has settled below 4%. Employers continue to add jobs, especially in service-oriented industries, and the resulting wage increases have further contributed to inflationary pressures. U.S. gross domestic product (GDP) turned negative in the first and second quarters of 2022 but expanded at rates above 2% in each subsequent quarter. The federal funds rate, which began 2022 at 0.25% to 0.50%, was raised 10 consecutive times before a pause in June 2023. It now sits at 5.25% to 5.50% as the U.S. Federal Reserve (Fed) attempts to curb inflation. In this environment, some form of recession seems imminent.
In the wake of continued rate increases, U.S. fixed income yields rose dramatically as investors reacted to Fed actions, with the yield on the 10-year Treasury ending the period near 4%. Rising Treasury yields affected all fixed income sectors in 2022, with all seeing their worst returns in more than 40 years. The U.S. Treasury yield curve remained substantially inverted throughout the period, which has driven many investors into shorter-term interest-bearing vehicles, including money markets.
Municipals sold off drastically to start the period but began to rebound in the fourth quarter of 2022. The Bloomberg Municipal Bond Index* fell nearly 8% and the broader municipal market had more than $124 billion in outflows before stabilizing early in 2023. For the first time in history, the municipal yield curve also inverted but not to the degree seen in Treasuries.
Credit quality as of June 30, 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. |
*
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
8 | Allspring Ultra Short-Term Municipal Income Fund
Performance highlights (unaudited)
While this environment has certainly been painful for municipal investors, the drawdown has created significantly improved opportunities and entry points. Municipal to Treasury ratios ended the period elevated but at far better levels than in 2021. Municipal credit spreads have widened substantially while the underlying fundamental credit of municipalities remains strong following trillions of dollars in government stimulus. We believe that investors will continue to return to the municipal market in the latter half of 2023, attracted by increased yields, positive fundamental strength, and good relative value.
Factors across the market influenced Fund performance.
Coming into the fiscal year, municipal bonds had been selling off as the Fed launched its interest rate hiking cycle in March 2022 and continued to raise interest rates to a range of 5.25% to 5.50% over the past 15 months. Technical factors worked against municipal bonds, with outflows of $122 billion in 2022. The drop in bond issuance of 20% in 2022 could not stem the backup in rates of 145 basis points (bps; 100 bps equal 1.00%) on the front end of the Municipal Market Data (MMD) curve and 31 bps on the long end as the yield curve continued to flatten.
Facing high yields and fears of a Fed-induced recession, credit spreads expanded. Investors were apathetic to making bond purchases. Instead, they invested in money market funds and short Treasury bonds at yields not seen in 15 years. Lower-investment-grade municipals in the A-rated and BBB-rated credit tiers rewarded investors with strong performance as an attractive alternative to A-rated and BBB-rated corporate bonds. With the municipal yield curve inverting significantly over the course of the year, we have reached a higher level in nominal interest rates of 5.0% and wider credit spreads, with improved municipal credit quality. We believe investors purchasing into the asset class and extending duration in lower-investment-grade bonds should be handsomely rewarded.
Effective maturity distribution as of June 30, 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. |
Security selection, credit quality, and yield-curve positioning drove performance; duration and sector allocation detracted.
We began the period long to the target duration at 0.97-year versus 0.75-year target but short to its benchmark of 1.23 years. We shortened duration over the year to 0.87 as the Fed’s view of higher rates for longer allows us to buy very short-term high-yielding bonds. The Fund’s long
duration detracted from performance modestly. However, the barbell yield-curve positioning, with an overweight to bonds of less than one year as well as bonds longer than three years benefited the Fund. Investors are being compensated for credit premiums and duration risk again.
Our overweight to the three-year to five-year bond segment outperformed the overall market significantly and drove performance. Credit spreads widened over the period as the Fed raised rates 350 bps. Being overweight lower-quality investment-grade bonds (A-rated and BBB-rated), which outperformed, and underweight (AAA-rated and AA-rated), which underperformed the market, also benefited the fund.
Strong individual security selection was the largest driver of performance, whether we were overweight an outperforming asset to the index or underweight an underperforming asset, our bonds outperformed in most categories. Sector allocation had a modest effect on performance. Lower-coupon bond structures detracted overall from performance as rates increased.
In the current environment of attractive yields and income, we are focusing primarily on bonds with coupons above 4.0%. Increased yields are giving the Fund a better income profile. We feel investors are being compensated for taking additional credit risk as the economy is on solid footing. While growth prospects are dimming, they seem robust and remain consistent in this post-pandemic environment. Also, the Fund’s overweight to lower-quality bonds with relatively short maturities provided a competitive yield without taking on much credit risk and interest rate risk. We were overweight revenue bonds, which performed well. Within the revenue category, we were overweight housing, hospitals, industrial development revenue/pollution control revenue, and transportation bonds, which all performed well and contributed to performance. We were underweight state general obligation (GO) bonds, which underperformed the market. However, security selection in the subset led us again to perform well as we picked better bonds.
Some of the better-performing bonds for the year were District of Columbia Housing bonds (housing), Louisiana Local Government Environment (water/sewer bonds), and Maryland State Community Housing bonds (housing). The largest detractors from performance were Maryland State Community Development Department bonds–Rosemont (housing), New York State Housing Finance Agency bonds (housing), and Harris Texas Cultural Facilities bonds–Texas Medical Center (hospital). We expect these bonds to improve in pricing. As the economy gradually slows, we expect these bonds to roll down the curve to maturity nicely and we plan to redeploy the capital at higher rates.
Tug of war likely for Fed between fighting inflation and offsetting recessionary pressure.
Our outlook is for long-term interest rates to increase modestly as the Fed continues to battle structural inflation. Employment and GDP growth should hold onto gains from last year, but we expect the tug of war between fighting inflation and recessionary pressure to intensify as the economy slows.
Fundamental credit factors remain strong in the municipal bond market. We believe the Fed will continue its monetary tightening policy well into the second half of calendar-year 2023, and we are looking for signs of a slowing national economy. This should only modestly affect municipal
Allspring Ultra Short-Term Municipal Income Fund | 9
Performance highlights (unaudited)
credit quality. That coupled with a weak technical backdrop should make municipal credit attractive from a long-term standpoint for buying lower investment-grade bonds as credit spreads have widened to fair value in the revenue and local GO sectors on the front end of the curve.
The municipal marketplace appears extremely attractive at decade-wide levels. In the second half of 2023, we plan to continue extending our long duration positioning beyond its target duration in an effort to add income over the economic cycle. However, we will let the barbell yield-curve positioning continue to roll down the curve to a key rate structure positioning in 1- to 3-year bonds, deploying more capital in the intermediate part of the short MMD curve.
We will continue our bias to overweighting lower-quality investment-grade bonds in the revenue and local GO sectors in purchases, holdings, and sell candidates, but this will be issuer-dependent based on our research. We will add higher-quality bonds in the AAA-rated and AA-rated areas as opportunities arise in cash flow notes, tender option bonds, and new bond issues, as issuers that have been on the sidelines since the pandemic relief funds were issued in 2020 to 2022 will have to come to market once again.
We will monitor the economy to see the effect of interest rate increases on the economy, with an eye on changes in the technical market and on fundamental credit quality.
10 | Allspring Ultra Short-Term Municipal Income Fund
Fund expenses (unaudited)
Fund expenses
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 January 1, 2023 to June 30, 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 1-1-2023 | Ending account value 6-30-2023 | Expenses paid during the period1 | Annualized net expense ratio | |
Class A | ||||
Actual | $1,000.00 | $1,013.36 | $2.50 | 0.50 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.32 | $2.51 | 0.50 % |
Class A2 | ||||
Actual | $1,000.00 | $1,013.87 | $2.00 | 0.40 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.81 | $2.01 | 0.40 % |
Class C | ||||
Actual | $1,000.00 | $1,009.65 | $6.23 | 1.25 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.60 | $6.26 | 1.25 % |
Class R6 | ||||
Actual | $1,000.00 | $1,014.87 | $1.00 | 0.20 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,023.80 | $1.00 | 0.20 % |
Administrator Class | ||||
Actual | $1,000.00 | $1,013.36 | $2.50 | 0.50 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.32 | $2.51 | 0.50 % |
Institutional Class | ||||
Actual | $1,000.00 | $1,014.62 | $1.25 | 0.25 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,023.56 | $1.25 | 0.25 % |
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 181 divided by 365 (to reflect the one-half-year period). |
Allspring Ultra Short-Term Municipal Income Fund | 11
Portfolio of investments—June 30, 2023
Portfolio of investments
Interest rate | Maturity date | Principal | Value | |||
Municipal obligations: 103.46% | ||||||
Alabama: 2.03% | ||||||
Education revenue: 0.06% | ||||||
University of South Alabama (BAM Insured) | 4.00 % | 4-1-2025 | $ | 500,000 | $504,432 | |
Health revenue: 0.53% | ||||||
Health Care Authority for Baptist Health Series Bø | 5.30 | 11-1-2042 | 4,500,000 | 4,500,000 | ||
Housing revenue: 0.12% | ||||||
Alabama Corrections Institution Finance Authority Series A | 5.00 | 7-1-2023 | 1,000,000 | 1,000,000 | ||
Utilities revenue: 1.32% | ||||||
Black Belt Energy Gas District Series D-2 (Royal Bank of Canada LIQ) (U.S. SOFR+1.40%)± | 4.79 | 7-1-2052 | 3,500,000 | 3,473,878 | ||
Black Belt Energy Gas District Gas Supply Project No. 7 Series E | 5.00 | 6-1-2025 | 1,250,000 | 1,275,053 | ||
Southeast Alabama Gas Supply District Series Aøø | 4.00 | 4-1-2049 | 4,000,000 | 3,994,132 | ||
Southeast Energy Authority Cooperative District Project No. 5 Series A | 5.00 | 7-1-2025 | 650,000 | 661,174 | ||
Southeast Energy Authority Cooperative District Project No. 5 Series A | 5.00 | 7-1-2026 | 1,750,000 | 1,791,357 | ||
11,195,594 | ||||||
17,200,026 | ||||||
Alaska: 0.68% | ||||||
Airport revenue: 0.24% | ||||||
State of Alaska International Airports System Series C AMT | 5.00 | 10-1-2025 | 2,000,000 | 2,053,271 | ||
Miscellaneous revenue: 0.44% | ||||||
Alaska Municipal Bond Bank Authority | 5.00 | 12-1-2023 | 1,900,000 | 1,912,066 | ||
Alaska Municipal Bond Bank Authority | 5.00 | 12-1-2024 | 1,750,000 | 1,790,527 | ||
3,702,593 | ||||||
5,755,864 | ||||||
Arizona: 1.65% | ||||||
Health revenue: 0.48% | ||||||
Arizona Health Facilities Authority Banner Health Obligated Group Series B (SIFMA Municipal Swap+0.25%)± | 4.26 | 1-1-2046 | 4,000,000 | 3,920,542 | ||
Maricopa County IDA HonorHealth Obligated Group Series A | 5.00 | 9-1-2024 | 150,000 | 152,667 | ||
4,073,209 | ||||||
Industrial development revenue: 0.81% | ||||||
Chandler IDA Intel Corp. AMTøø | 2.70 | 12-1-2037 | 3,415,000 | 3,408,516 | ||
Chandler IDA Intel Corp. AMTøø | 5.00 | 6-1-2049 | 2,425,000 | 2,443,672 | ||
IDA of the City of Phoenix Republic Services, Inc. Series D AMTøø | 3.88 | 12-1-2035 | 1,000,000 | 999,976 | ||
6,852,164 | ||||||
Utilities revenue: 0.36% | ||||||
Coconino County Pollution Control Corp. Nevada Power Co. Series A AMTøø | 4.13 | 9-1-2032 | 3,000,000 | 3,011,648 | ||
13,937,021 | ||||||
The accompanying notes are an integral part of these financial statements.
12 | Allspring Ultra Short-Term Municipal Income Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Arkansas: 0.47% | ||||||
Health revenue: 0.16% | ||||||
Batesville Public Facilities Board White River Health System Obligated Group | 5.00 % | 6-1-2024 | $ | 1,345,000 | $1,354,561 | |
Housing revenue: 0.21% | ||||||
Arkansas Development Finance Authority EC Cottages LLC (Department of Housing and Urban Development Insured)øø | 1.25 | 12-1-2024 | 1,835,000 | 1,816,594 | ||
Tax revenue: 0.10% | ||||||
City of Cabot Sales & Use Tax Revenue Series B | 5.00 | 12-1-2023 | 200,000 | 201,399 | ||
City of Cabot Sales & Use Tax Revenue Series B | 5.00 | 12-1-2025 | 275,000 | 287,192 | ||
City of Springdale Sales & Use Tax Revenue Series B (BAM Insured)%% | 5.00 | 8-1-2025 | 100,000 | 103,303 | ||
City of Springdale Sales & Use Tax Revenue Series B (BAM Insured)%% | 5.00 | 8-1-2026 | 125,000 | 131,299 | ||
City of Springdale Sales & Use Tax Revenue Series B (BAM Insured)%% | 5.00 | 8-1-2027 | 100,000 | 107,149 | ||
830,342 | ||||||
4,001,497 | ||||||
California: 4.69% | ||||||
Health revenue: 1.85% | ||||||
California HFFA Adventist Health System/West Obligated Group Series A | 5.00 | 3-1-2025 | 2,500,000 | 2,500,824 | ||
California PFA Henry Mayo Newhall Hospital Obligated Group Series A | 4.00 | 10-15-2025 | 400,000 | 400,669 | ||
California Statewide CDA CommonSpirit Health Obligated Group Series D (AGM Insured)€øø | 4.01 | 7-1-2041 | 8,850,000 | 8,850,000 | ||
California Statewide CDA CommonSpirit Health Obligated Group Series F (AGM Insured)€øø | 4.03 | 7-1-2040 | 3,125,000 | 3,125,000 | ||
California Statewide CDA Emanate Health Obligated Group Series A | 5.00 | 4-1-2025 | 750,000 | 768,818 | ||
15,645,311 | ||||||
Housing revenue: 0.24% | ||||||
Mizuho Floater/Residual Trust Series 2021-MIZ9063 (Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ)144Aø | 4.51 | 5-1-2049 | 2,000,000 | 2,000,000 | ||
Industrial development revenue: 1.41% | ||||||
California Infrastructure & Economic Development Bank DesertXpress Enterprises LLC Series A AMT144Aøø | 3.65 | 1-1-2050 | 12,000,000 | 11,949,235 | ||
Miscellaneous revenue: 0.24% | ||||||
California Infrastructure & Economic Development Bank J Paul Getty Trust Series B-1øø | 0.39 | 10-1-2047 | 2,000,000 | 1,972,452 | ||
Tax revenue: 0.07% | ||||||
Cathedral City Redevelopment Successor Agency Bond Merged Redevelopment Project Series C (BAM Insured) | 4.00 | 8-1-2025 | 600,000 | 606,875 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 13
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Transportation revenue: 0.41% | ||||||
Bay Area Toll Authority Series B (SIFMA Municipal Swap+0.28%)± | 4.29 % | 4-1-2056 | $ | 3,500,000 | $3,493,741 | |
Utilities revenue: 0.47% | ||||||
California Community Choice Financing Authority Clean Energy Project Green Bond Series A | 4.00 | 12-1-2023 | 800,000 | 800,251 | ||
California Community Choice Financing Authority Clean Energy Project Green Bond Series C | 5.00 | 10-1-2027 | 675,000 | 689,366 | ||
City of Vernon Electric System Revenue Series A | 5.00 | 10-1-2023 | 1,250,000 | 1,252,727 | ||
City of Vernon Electric System Revenue Series A | 5.00 | 10-1-2024 | 1,200,000 | 1,213,152 | ||
3,955,496 | ||||||
39,623,110 | ||||||
Colorado: 2.05% | ||||||
Airport revenue: 0.93% | ||||||
City & County of Denver Airport System Revenue Series B | 5.00 | 11-15-2025 | 2,835,000 | 2,849,219 | ||
City & County of Denver Airport System Revenue Series B2 AMTøø | 5.00 | 11-15-2031 | 1,840,000 | 1,888,558 | ||
City & County of Denver Airport System Revenue Series C | 5.00 | 11-15-2025 | 3,000,000 | 3,131,598 | ||
7,869,375 | ||||||
Education revenue: 0.17% | ||||||
University of Colorado Series Cøø | 2.00 | 6-1-2054 | 1,500,000 | 1,463,025 | ||
Health revenue: 0.06% | ||||||
Colorado Health Facilities Authority Christian Living Neighborhoods Obligated Group | 4.00 | 1-1-2024 | 530,000 | 526,234 | ||
Miscellaneous revenue: 0.52% | ||||||
Colorado Bridge Enterprise Colorado High Performance Transportation Enterprise AMT | 4.00 | 12-31-2023 | 1,385,000 | 1,389,307 | ||
Colorado Bridge Enterprise Colorado High Performance Transportation Enterprise AMT | 4.00 | 6-30-2024 | 2,000,000 | 2,005,083 | ||
Colorado Bridge Enterprise Colorado High Performance Transportation Enterprise AMT | 4.00 | 12-31-2024 | 1,000,000 | 1,002,370 | ||
4,396,760 | ||||||
Tax revenue: 0.04% | ||||||
Regional Transportation District Denver Transit Partners LLC Series A | 5.00 | 7-15-2024 | 300,000 | 302,440 | ||
Transportation revenue: 0.27% | ||||||
E-470 Public Highway Authority Series B (U.S. SOFR+0.35%)± | 3.74 | 9-1-2039 | 2,250,000 | 2,240,558 | ||
Water & sewer revenue: 0.06% | ||||||
Central Weld County Water District (AGM Insured) | 5.00 | 12-1-2025 | 520,000 | 541,949 | ||
17,340,341 | ||||||
Connecticut: 3.29% | ||||||
Education revenue: 1.09% | ||||||
Connecticut State HEFA Yale University Series 2017-B2øø | 0.55 | 7-1-2037 | 8,150,000 | 8,150,000 | ||
The accompanying notes are an integral part of these financial statements.
14 | Allspring Ultra Short-Term Municipal Income Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
Connecticut State Higher Education Supplement Loan Authority Series B AMT | 5.00 % | 11-15-2023 | $ | 440,000 | $442,565 | |
Connecticut State Higher Education Supplement Loan Authority Series D | 5.00 | 11-15-2024 | 585,000 | 599,733 | ||
9,192,298 | ||||||
GO revenue: 1.70% | ||||||
City of Bridgeport Series A | 5.00 | 6-1-2024 | 800,000 | 812,604 | ||
City of Bridgeport Series A | 5.00 | 6-1-2025 | 2,695,000 | 2,786,614 | ||
City of Bridgeport Series C | 5.00 | 2-15-2024 | 445,000 | 449,641 | ||
City of Bridgeport Series C | 5.00 | 2-15-2025 | 750,000 | 771,430 | ||
City of Danbury%% | 5.00 | 1-24-2024 | 5,000,000 | 5,031,749 | ||
State of Connecticut Series 2021-A | 3.00 | 1-15-2025 | 3,000,000 | 2,999,083 | ||
State of Connecticut Series C | 3.00 | 6-1-2024 | 1,055,000 | 1,054,066 | ||
State of Connecticut Series C | 4.00 | 6-1-2024 | 500,000 | 504,211 | ||
14,409,398 | ||||||
Health revenue: 0.09% | ||||||
Connecticut State HEFA Stamford Hospital Obligated Group Series L-1 | 4.00 | 7-1-2024 | 600,000 | 598,948 | ||
Connecticut State HEFA Stamford Hospital Obligated Group Series M | 5.00 | 7-1-2023 | 175,000 | 175,000 | ||
773,948 | ||||||
Housing revenue: 0.15% | ||||||
Connecticut HFA Series A-1 | 0.30 | 11-15-2024 | 500,000 | 477,885 | ||
Connecticut HFA Series A-1 | 0.40 | 5-15-2025 | 500,000 | 470,335 | ||
Connecticut HFA Series A-2 AMT | 0.40 | 11-15-2023 | 300,000 | 296,841 | ||
1,245,061 | ||||||
Tax revenue: 0.26% | ||||||
State of Connecticut Special Tax Revenue Series A | 5.00 | 5-1-2024 | 1,000,000 | 1,014,948 | ||
State of Connecticut Special Tax Revenue Series A | 5.00 | 5-1-2025 | 1,150,000 | 1,189,165 | ||
2,204,113 | ||||||
27,824,818 | ||||||
District of Columbia: 1.06% | ||||||
Airport revenue: 0.36% | ||||||
Metropolitan Washington Airports Authority Aviation Revenue Series A AMT | 5.00 | 10-1-2024 | 3,000,000 | 3,045,591 | ||
Housing revenue: 0.67% | ||||||
Washington Metropolitan Area Transit Authority Dedicated Revenue Series A | 5.00 | 7-15-2023 | 3,600,000 | 3,601,650 | ||
Washington Metropolitan Area Transit Authority Dedicated Revenue Series A | 5.00 | 7-15-2024 | 2,000,000 | 2,037,074 | ||
5,638,724 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 15
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Water & sewer revenue: 0.03% | ||||||
District of Columbia Water & Sewer Authority Series Cøø | 1.75 % | 10-1-2054 | $ | 300,000 | $291,531 | |
8,975,846 | ||||||
Florida: 4.11% | ||||||
Airport revenue: 0.39% | ||||||
Tender Option Bond Trust Receipts/Certificates Series 2017-XF0577 (JPMorgan Chase Bank N.A. LIQ)144Aø | 4.33 | 10-1-2025 | 1,665,000 | 1,665,000 | ||
Tender Option Bond Trust Receipts/Certificates Series 2021-XF2947 (Barclays Bank PLC LIQ)144Aø | 3.41 | 10-1-2045 | 1,600,000 | 1,600,000 | ||
3,265,000 | ||||||
Education revenue: 0.09% | ||||||
Florida Higher Educational Facilities Financial Authority Florida Institute of Technology, Inc. | 5.00 | 10-1-2023 | 500,000 | 500,851 | ||
Florida Higher Educational Facilities Financial Authority Florida Institute of Technology, Inc. | 5.00 | 10-1-2024 | 250,000 | 252,318 | ||
753,169 | ||||||
Health revenue: 0.77% | ||||||
City of Tampa BayCare Obligated Group Series B (SIFMA Municipal Swap+0.30%)± | 4.31 | 11-15-2033 | 1,500,000 | 1,500,000 | ||
Lee Memorial Health System Lee Memorial Health System Obligated Group Series Bø | 4.47 | 4-1-2049 | 5,000,000 | 5,000,000 | ||
6,500,000 | ||||||
Housing revenue: 2.41% | ||||||
Capital Trust Agency, Inc. EHDOC Council Towers LP Series A | 1.50 | 11-1-2023 | 10,450,000 | 10,397,615 | ||
Tender Option Bond Trust Receipts/Certificates Series 2022-XF3058 (Mizuho Capital Markets LLC LOC)144Aø | 4.41 | 11-1-2035 | 10,000,000 | 10,000,000 | ||
20,397,615 | ||||||
Miscellaneous revenue: 0.37% | ||||||
School Board of Miami-Dade County Series Aøø | 5.00 | 5-1-2031 | 3,100,000 | 3,138,758 | ||
Water & sewer revenue: 0.08% | ||||||
North Sumter County Utility Dependent District (AGM Insured) | 5.00 | 10-1-2025 | 635,000 | 658,835 | ||
34,713,377 | ||||||
Georgia: 5.53% | ||||||
Health revenue: 1.62% | ||||||
Cobb County Hospital Authority (Truist Bank LOC)ø | 3.22 | 4-1-2036 | 6,000,000 | 6,000,000 | ||
Cobb County Hospital Authority (Truist Bank LOC)ø | 3.97 | 4-1-2034 | 5,000,000 | 5,000,000 | ||
Cobb County Kennestone Hospital Authority WellStar Health System Obligated Group | 5.00 | 4-1-2025 | 660,000 | 676,111 | ||
Cobb County Kennestone Hospital Authority WellStar Health System Obligated Group Series B | 5.00 | 4-1-2024 | 1,300,000 | 1,313,364 | ||
Gainesville & Hall County Hospital Authority Northeast Georgia Health System Obligated Group Series A | 5.00 | 2-15-2026 | 700,000 | 724,843 | ||
13,714,318 | ||||||
The accompanying notes are an integral part of these financial statements.
16 | Allspring Ultra Short-Term Municipal Income Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue: 2.19% | ||||||
Augusta Housing Authority Capstone at Barton Chapel LP (Department of Housing and Urban Development Insured)øø | 1.25 % | 12-1-2024 | $ | 8,875,000 | $8,785,979 | |
College Park Business & IDA Somersby Family I LP Series Bøø | 1.25 | 7-1-2025 | 10,000,000 | 9,718,602 | ||
18,504,581 | ||||||
Utilities revenue: 1.72% | ||||||
Development Authority of Burke County Georgia Power Co.øø | 2.88 | 12-1-2049 | 3,000,000 | 2,912,186 | ||
Development Authority of Monroe County Georgia Power Co. Series 1støø | 1.00 | 7-1-2049 | 1,875,000 | 1,664,646 | ||
Main Street Natural Gas, Inc. Series A | 4.00 | 12-1-2023 | 1,000,000 | 999,753 | ||
Main Street Natural Gas, Inc. Series C | 4.00 | 12-1-2024 | 700,000 | 699,050 | ||
Main Street Natural Gas, Inc. Series C | 4.00 | 12-1-2025 | 1,000,000 | 996,283 | ||
Main Street Natural Gas, Inc. Series C144Aøø | 4.00 | 8-1-2052 | 4,000,000 | 3,866,177 | ||
Main Street Natural Gas, Inc. Series C | 5.00 | 9-1-2023 | 1,650,000 | 1,651,969 | ||
Main Street Natural Gas, Inc. Series C (Royal Bank of Canada LIQ)øø | 4.00 | 8-1-2048 | 805,000 | 805,186 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A | 5.00 | 1-1-2024 | 165,000 | 166,027 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A | 5.00 | 7-1-2025 | 200,000 | 205,207 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A (AGM Insured) | 5.00 | 1-1-2026 | 225,000 | 234,336 | ||
Municipal Electric Authority of Georgia Plant Vogtle Units 3&4 Project Series A (AGM Insured) | 5.00 | 7-1-2026 | 300,000 | 315,092 | ||
14,515,912 | ||||||
46,734,811 | ||||||
Guam: 0.17% | ||||||
Airport revenue: 0.17% | ||||||
Antonio B Won Pat International Airport Authority Series A AMT | 5.00 | 10-1-2023 | 1,395,000 | 1,399,117 | ||
Hawaii: 1.25% | ||||||
GO revenue: 0.48% | ||||||
City & County of Honolulu Series A | 5.00 | 11-1-2023 | 2,250,000 | 2,262,983 | ||
City & County of Honolulu Series A | 5.00 | 11-1-2024 | 1,750,000 | 1,793,515 | ||
4,056,498 | ||||||
Health revenue: 0.19% | ||||||
State of Hawaii Department of Budget & Finance Queen’s Health Systems Obligated Group Series B (SIFMA Municipal Swap+0.45%)± | 4.46 | 7-1-2039 | 1,645,000 | 1,645,000 | ||
Miscellaneous revenue: 0.24% | ||||||
State of Hawaii Airports System Revenue AMT | 5.25 | 8-1-2024 | 2,000,000 | 2,001,628 | ||
Utilities revenue: 0.34% | ||||||
State of Hawaii Department of Budget & Finance Hawaiian Electric Co., Inc. Series A AMT | 3.10 | 5-1-2026 | 3,000,000 | 2,899,423 | ||
10,602,549 | ||||||
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 17
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Idaho: 0.18% | ||||||
Housing revenue: 0.18% | ||||||
Idaho Housing & Finance Association Series Aø | 4.19 % | 1-1-2038 | $ | 1,485,000 | $1,485,000 | |
Illinois: 7.48% | ||||||
Airport revenue: 0.30% | ||||||
Chicago O’Hare International Airport Series D | 5.00 | 1-1-2025 | 2,500,000 | 2,562,976 | ||
Education revenue: 0.66% | ||||||
Illinois Finance Authority Benedictine University | 5.00 | 10-1-2025 | 600,000 | 599,502 | ||
Illinois Finance Authority University of Chicago Series A | 5.00 | 10-1-2023 | 1,400,000 | 1,405,851 | ||
Illinois Finance Authority University of Chicago Series A | 5.00 | 10-1-2025 | 1,500,000 | 1,561,581 | ||
Southern Illinois University Series A (BAM Insured) | 4.00 | 4-1-2024 | 1,200,000 | 1,201,848 | ||
Southern Illinois University Series A (BAM Insured) | 5.00 | 4-1-2025 | 750,000 | 765,763 | ||
5,534,545 | ||||||
GO revenue: 3.32% | ||||||
Chicago Board of Education Series B | 5.00 | 12-1-2023 | 1,150,000 | 1,154,112 | ||
Chicago Board of Education Series B-1 (NPFGC Insured)¤ | 0.00 | 12-1-2023 | 500,000 | 491,790 | ||
Chicago Board of Education Series F | 5.00 | 12-1-2024 | 2,500,000 | 2,528,090 | ||
City of Chicago (NPFGC Insured)¤ | 0.00 | 1-1-2024 | 3,670,000 | 3,599,744 | ||
City of Chicago Series A | 5.00 | 1-1-2025 | 2,500,000 | 2,548,831 | ||
City of Chicago Series B | 5.00 | 1-1-2026 | 2,750,000 | 2,814,157 | ||
City of Geneva | 4.00 | 2-1-2024 | 650,000 | 652,424 | ||
City of Peoria Series A (BAM Insured) | 4.00 | 1-1-2025 | 1,250,000 | 1,258,879 | ||
City of Peoria Series A (BAM Insured) | 4.00 | 1-1-2026 | 500,000 | 509,244 | ||
South Sangamon Water Commission (AGM Insured) | 4.00 | 1-1-2026 | 500,000 | 504,115 | ||
State of Illinois | 5.25 | 2-1-2029 | 1,500,000 | 1,514,742 | ||
State of Illinois Series A | 5.00 | 3-1-2024 | 1,500,000 | 1,513,009 | ||
State of Illinois Series B | 5.00 | 3-1-2025 | 1,500,000 | 1,533,814 | ||
State of Illinois Series D | 5.00 | 7-1-2023 | 6,000,000 | 6,000,000 | ||
Whiteside & Lee Counties Community Unit School District No. 5 Sterling Series A (BAM Insured) | 4.00 | 12-1-2023 | 1,435,000 | 1,438,333 | ||
28,061,284 | ||||||
Health revenue: 0.32% | ||||||
Illinois Finance Authority OSF Healthcare System Obligated Group Series B-1øø | 5.00 | 5-15-2050 | 1,200,000 | 1,211,998 | ||
Illinois Finance Authority Shirley Ryan AbilityLab Series A | 5.00 | 7-1-2023 | 1,100,000 | 1,100,000 | ||
Illinois Finance Authority Washington and Jane Smith Community - Orland Park | 4.00 | 10-15-2023 | 205,000 | 204,459 | ||
Illinois Finance Authority Washington and Jane Smith Community - Orland Park | 4.00 | 10-15-2024 | 210,000 | 207,240 | ||
2,723,697 | ||||||
Housing revenue: 0.82% | ||||||
City of Chicago Heights Olympic Village LLC (FHA Insured)øø | 2.88 | 8-1-2027 | 5,000,000 | 4,849,866 | ||
Metropolitan Pier & Exposition Authority Series A | 3.00 | 6-15-2024 | 2,100,000 | 2,078,865 | ||
6,928,731 | ||||||
The accompanying notes are an integral part of these financial statements.
18 | Allspring Ultra Short-Term Municipal Income Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue: 1.44% | ||||||
Regional Transportation Authority Series Bøø | 3.90 % | 6-1-2025 | $ | 11,195,000 | $11,195,000 | |
State of Illinois Sales Tax Revenue | 5.00 | 6-15-2024 | 1,000,000 | 1,000,784 | ||
12,195,784 | ||||||
Water & sewer revenue: 0.62% | ||||||
Chicago Wastewater Transmission Revenue Series B | 5.00 | 1-1-2024 | 1,600,000 | 1,610,730 | ||
City of Chicago Waterworks Revenue | 5.00 | 11-1-2023 | 1,645,000 | 1,652,099 | ||
City of Joliet Waterworks & Sewerage Revenue BAN | 5.00 | 1-1-2024 | 2,000,000 | 2,008,874 | ||
5,271,703 | ||||||
63,278,720 | ||||||
Indiana: 3.12% | ||||||
Education revenue: 0.07% | ||||||
Town of Upland Taylor University, Inc. | 4.00 | 9-1-2025 | 590,000 | 593,519 | ||
GO revenue: 0.51% | ||||||
Center Grove Community School Corp. Series B | 4.00 | 7-1-2023 | 2,025,000 | 2,025,000 | ||
Clark-Pleasant Community School Corp. | 5.00 | 7-15-2024 | 1,725,000 | 1,746,315 | ||
Town of Whitestown | 4.25 | 12-31-2023 | 535,000 | 534,075 | ||
4,305,390 | ||||||
Housing revenue: 0.88% | ||||||
City of Indianapolis Peppermill TC LLC Series A (FHA Insured)øø | 3.00 | 5-1-2027 | 1,251,000 | 1,244,494 | ||
Fort Wayne RDA | 4.00 | 8-1-2023 | 795,000 | 795,321 | ||
Fort Wayne RDA | 4.00 | 8-1-2024 | 730,000 | 735,332 | ||
Marion High School Building Corp. Marion Community Schools Series B | 4.00 | 7-15-2023 | 210,000 | 210,031 | ||
Marion High School Building Corp. Marion Community Schools Series B | 4.00 | 1-15-2024 | 215,000 | 215,670 | ||
Marion High School Building Corp. Marion Community Schools Series B | 4.00 | 7-15-2024 | 220,000 | 221,471 | ||
Marion High School Building Corp. Marion Community Schools Series B | 4.00 | 1-15-2025 | 225,000 | 226,991 | ||
Marion High School Building Corp. Marion Community Schools Series B | 4.00 | 7-15-2025 | 225,000 | 228,128 | ||
Posey County RDA Posey County Redevelopment Commission BAN | 5.00 | 7-15-2025 | 3,000,000 | 3,074,580 | ||
Vinton-Tecumseh School Building Corp. Lafayette School Corp. | 3.00 | 1-15-2025 | 505,000 | 500,787 | ||
7,452,805 | ||||||
Industrial development revenue: 0.78% | ||||||
City of Whiting BP Products North America , Inc. AMTøø | 5.00 | 11-1-2047 | 2,250,000 | 2,282,053 | ||
Indiana Finance Authority East End Crossing Partners LLC Series A | 5.00 | 7-1-2048 | 4,315,000 | 4,315,000 | ||
6,597,053 | ||||||
Miscellaneous revenue: 0.20% | ||||||
Indianapolis Local Public Improvement Bond Bank Series A | 5.00 | 6-1-2024 | 1,700,000 | 1,723,281 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 19
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utilities revenue: 0.68% | ||||||
City of Mount Vernon Southern Indiana Gas & Electric Co. AMTøø | 0.88 % | 9-1-2055 | $ | 5,750,000 | $5,723,834 | |
26,395,882 | ||||||
Iowa: 0.58% | ||||||
Industrial development revenue: 0.35% | ||||||
Iowa Finance Authority Gevo Iowa RNG LLC AMT ( Citibank NA LOC)øø | 1.50 | 1-1-2042 | 3,000,000 | 2,926,152 | ||
Utilities revenue: 0.23% | ||||||
PEFA, Inc.øø | 5.00 | 9-1-2049 | 1,920,000 | 1,957,650 | ||
4,883,802 | ||||||
Kansas: 0.23% | ||||||
GO revenue: 0.23% | ||||||
Reno County Unified School District No. 308 Hutchinson | 3.00 | 9-1-2024 | 2,000,000 | 1,968,756 | ||
Kentucky: 1.35% | ||||||
Education revenue: 0.11% | ||||||
City of Columbia Lindsey Wilson College, Inc. | 4.00 | 12-1-2023 | 450,000 | 450,141 | ||
City of Columbia Lindsey Wilson College, Inc. | 4.00 | 12-1-2025 | 485,000 | 474,947 | ||
925,088 | ||||||
Health revenue: 0.65% | ||||||
Louisville/Jefferson County Metropolitan Government Norton Healthcare Obligated Group Series A | 5.25 | 10-1-2026 | 1,500,000 | 1,505,162 | ||
Louisville/Jefferson County Metropolitan Government Norton Healthcare Obligated Group Series Bøø | 5.00 | 10-1-2047 | 4,000,000 | 4,010,938 | ||
5,516,100 | ||||||
Resource recovery revenue: 0.35% | ||||||
Kentucky EDFA Republic Services, Inc. Series Bøø | 3.80 | 4-1-2031 | 3,000,000 | 3,000,230 | ||
Utilities revenue: 0.24% | ||||||
Paducah Electric Plant Board | 5.00 | 10-1-2023 | 1,995,000 | 2,001,752 | ||
11,443,170 | ||||||
Louisiana: 1.70% | ||||||
Industrial development revenue: 0.12% | ||||||
Parish of St. John the Baptist Marathon Oil Corp. Series A-1øø | 4.05 | 6-1-2037 | 1,000,000 | 995,546 | ||
Miscellaneous revenue: 1.01% | ||||||
Louisiana Local Government Environmental Facilities & CDA East Baton Rouge Sewerage Commission Series Bøø | 0.88 | 2-1-2046 | 9,000,000 | 8,561,352 | ||
Tax revenue: 0.57% | ||||||
State of Louisiana Gasoline & Fuels Tax Revenue Series A (U.S. SOFR+0.50%)± | 4.04 | 5-1-2043 | 4,920,000 | 4,826,055 | ||
14,382,953 | ||||||
The accompanying notes are an integral part of these financial statements.
20 | Allspring Ultra Short-Term Municipal Income Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Maine: 0.16% | ||||||
Health revenue: 0.16% | ||||||
Maine Health & Higher Educational Facilities Authority Series A | 4.00 % | 7-1-2024 | $ | 755,000 | $759,520 | |
Maine Health & Higher Educational Facilities Authority Series A | 5.00 | 7-1-2023 | 575,000 | 575,000 | ||
1,334,520 | ||||||
Maryland: 5.02% | ||||||
Health revenue: 0.07% | ||||||
Maryland Health & Higher Educational Facilities Authority Adventist Healthcare Obligated Group | 5.00 | 1-1-2024 | 540,000 | 542,136 | ||
Housing revenue: 4.95% | ||||||
Maryland Community Development Administration New Alexander House LLC Series B## | 0.80 | 9-1-2023 | 15,000,000 | 14,900,784 | ||
Maryland Community Development Administration Rosemont Apartments 4 LLC Series A (GNMA Insured)144A | 4.50 | 11-1-2023 | 7,400,000 | 7,337,792 | ||
Maryland Community Development Administration South Street Senior LLC Series D | 3.15 | 7-1-2024 | 4,000,000 | 3,922,350 | ||
Maryland Community Development Administration Woodside Preservation LP Series A144A | 1.33 | 1-1-2024 | 6,000,000 | 5,887,555 | ||
Maryland Community Development Administration WV3 Housing Associates LP Series G (FHA Insured) | 1.05 | 12-1-2023 | 10,000,000 | 9,838,267 | ||
41,886,748 | ||||||
42,428,884 | ||||||
Massachusetts: 1.83% | ||||||
Education revenue: 0.18% | ||||||
Massachusetts Development Finance Agency Lasell University | 4.00 | 7-1-2023 | 210,000 | 210,000 | ||
Massachusetts Development Finance Agency Lasell University | 4.00 | 7-1-2024 | 225,000 | 223,110 | ||
Massachusetts Development Finance Agency Springfield College Series A | 5.00 | 6-1-2025 | 1,065,000 | 1,077,749 | ||
1,510,859 | ||||||
Health revenue: 0.99% | ||||||
Massachusetts Development Finance Agency Milford Regional Medical Center Obligated Group Series G144A | 5.00 | 7-15-2023 | 125,000 | 125,024 | ||
Massachusetts Development Finance Agency Milford Regional Medical Center Obligated Group Series G144A | 5.00 | 7-15-2024 | 125,000 | 126,004 | ||
Massachusetts Development Finance Agency Tufts Medicine Obligated Group Series C (AGM Insured) | 5.00 | 10-1-2023 | 635,000 | 636,996 | ||
Massachusetts HEFA Mass General Brigham, Inc. Series G-2 (AGM Insured)€øø | 4.09 | 7-1-2042 | 7,520,000 | 7,520,000 | ||
8,408,024 | ||||||
Housing revenue: 0.45% | ||||||
Boston Housing Authority Series B | 5.00 | 10-1-2024 | 650,000 | 664,718 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 21
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
Boston Housing Authority Series B | 5.00 % | 10-1-2025 | $ | 380,000 | $395,182 | |
Massachusetts Development Finance Agency Salem Heights II Preservation Associates LP Series Bøø | 0.25 | 7-1-2024 | 2,750,000 | 2,750,000 | ||
3,809,900 | ||||||
Tax revenue: 0.21% | ||||||
Massachusetts Bay Transportation Authority Sales Tax Revenue Series B-1 | 5.00 | 7-1-2023 | 1,775,000 | 1,775,000 | ||
15,503,783 | ||||||
Michigan: 1.21% | ||||||
Education revenue: 0.06% | ||||||
Lake Superior State University (AGM Insured) | 4.00 | 11-15-2023 | 525,000 | 526,202 | ||
GO revenue: 0.32% | ||||||
Carman-Ainsworth Community Schools | 4.00 | 5-1-2025 | 2,685,000 | 2,707,841 | ||
Health revenue: 0.83% | ||||||
Kent Hospital Finance Authority Corewell Health Obligated Group (SIFMA Municipal Swap+0.25%)± | 4.26 | 1-15-2047 | 2,000,000 | 2,000,000 | ||
Michigan Finance Authority Trinity Health Corp. Obligated Group Series MI-1ø | 3.50 | 12-1-2034 | 5,000,000 | 5,001,042 | ||
7,001,042 | ||||||
10,235,085 | ||||||
Minnesota: 0.68% | ||||||
Health revenue: 0.06% | ||||||
City of Rochester Mayo Clinicø | 4.20 | 11-15-2047 | 500,000 | 500,000 | ||
Miscellaneous revenue: 0.32% | ||||||
Lake Agassiz Education Cooperative No. 0397-52 COP Series A | 3.00 | 2-1-2024 | 265,000 | 262,874 | ||
Minnesota Rural Water Finance Authority, Inc. Public Projects Construction Note | 2.63 | 12-1-2023 | 2,500,000 | 2,479,971 | ||
2,742,845 | ||||||
Utilities revenue: 0.30% | ||||||
Minnesota Municipal Gas Agency Series A (Royal Bank of Canada LIQ) | 4.00 | 12-1-2023 | 2,500,000 | 2,502,591 | ||
5,745,436 | ||||||
Missouri: 1.37% | ||||||
Housing revenue: 1.37% | ||||||
Missouri Public Utilities Commission | 0.75 | 8-1-2023 | 5,400,000 | 5,384,675 | ||
Missouri Public Utilities Commission | 4.00 | 12-1-2024 | 6,200,000 | 6,216,897 | ||
11,601,572 | ||||||
The accompanying notes are an integral part of these financial statements.
22 | Allspring Ultra Short-Term Municipal Income Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Nebraska: 1.27% | ||||||
Miscellaneous revenue: 0.72% | ||||||
City of Gretna COP | 4.00 % | 12-15-2025 | $ | 3,000,000 | $3,022,369 | |
City of Gretna COP | 5.00 | 12-15-2025 | 3,000,000 | 3,072,290 | ||
6,094,659 | ||||||
Utilities revenue: 0.55% | ||||||
Central Plains Energy Project No. 4øø | 5.00 | 3-1-2050 | 4,600,000 | 4,619,038 | ||
10,713,697 | ||||||
New Jersey: 2.96% | ||||||
Education revenue: 0.14% | ||||||
New Jersey Higher Education Student Assistance Authority Series B AMT | 5.00 | 12-1-2023 | 300,000 | 301,469 | ||
New Jersey Higher Education Student Assistance Authority Series B AMT | 5.00 | 12-1-2025 | 850,000 | 872,763 | ||
1,174,232 | ||||||
GO revenue: 2.41% | ||||||
City of New Brunswick BAN | 5.00 | 5-31-2024 | 2,000,000 | 2,026,000 | ||
City of Newark Series D BAN | 4.00 | 9-29-2023 | 3,028,000 | 3,027,757 | ||
New Jersey EDA Series GGG144A | 5.25 | 9-1-2023 | 10,000,000 | 10,026,629 | ||
New Jersey EDA Series GGG144A | 5.25 | 9-1-2026 | 5,000,000 | 5,283,634 | ||
20,364,020 | ||||||
Housing revenue: 0.31% | ||||||
New Jersey TTFA Series D | 5.25 | 12-15-2023 | 2,600,000 | 2,619,861 | ||
Transportation revenue: 0.10% | ||||||
New Brunswick Parking Authority Series B (BAM Insured) | 5.00 | 9-1-2024 | 875,000 | 892,953 | ||
25,051,066 | ||||||
New Mexico: 0.82% | ||||||
Utilities revenue: 0.82% | ||||||
City of Farmington Public Service Co. of New Mexico Series Bøø | 3.00 | 6-1-2040 | 7,000,000 | 6,925,507 | ||
New York: 8.74% | ||||||
Airport revenue: 0.30% | ||||||
New York Transportation Development Corp. JFK International Air Terminal LLC Series A AMT | 5.00 | 12-1-2023 | 1,260,000 | 1,265,661 | ||
New York Transportation Development Corp. JFK International Air Terminal LLC Series A AMT | 5.00 | 12-1-2024 | 1,250,000 | 1,271,018 | ||
2,536,679 | ||||||
Education revenue: 0.51% | ||||||
Albany Industrial Development Agency Research Foundation of State University of New York Series Aø | 4.12 | 7-1-2032 | 2,120,000 | 2,120,000 | ||
New York State Dormitory Authority Iona College Series 2022 | 5.00 | 7-1-2023 | 550,000 | 550,000 | ||
Saratoga County Capital Resource Corp. Series 2021-A | 5.00 | 7-1-2024 | 600,000 | 609,640 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 23
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Education revenue (continued) | ||||||
Saratoga County Capital Resource Corp. Series 2021-A | 5.00 % | 7-1-2025 | $ | 425,000 | $438,209 | |
Saratoga County Capital Resource Corp. Skidmore College Series 2021-A | 5.00 | 7-1-2023 | 575,000 | 575,000 | ||
4,292,849 | ||||||
GO revenue: 2.78% | ||||||
City of Long Beach Series A | 5.00 | 9-1-2023 | 2,075,000 | 2,078,522 | ||
City of New York Series 2ø | 4.21 | 4-1-2042 | 500,000 | 500,000 | ||
City of New York Series A4 (AGM Insured)€øø | 4.49 | 8-1-2026 | 125,000 | 125,000 | ||
City of New York Series C4 (AGC Insured)€øø | 4.84 | 10-1-2027 | 8,050,000 | 8,050,000 | ||
City of New York Series C4 (AGM Insured)€øø | 4.93 | 1-1-2032 | 800,000 | 800,000 | ||
City of New York Series G4ø | 4.00 | 3-1-2039 | 10,000,000 | 10,000,000 | ||
City of New York Series J2 (AGM Insured)€øø | 4.17 | 6-1-2036 | 1,350,000 | 1,350,000 | ||
City of Yonkers Series A (AGM Insured) | 5.00 | 2-15-2025 | 315,000 | 323,850 | ||
City of Yonkers Series B (AGM Insured) | 5.00 | 2-15-2025 | 305,000 | 313,570 | ||
23,540,942 | ||||||
Health revenue: 0.56% | ||||||
Broome County Local Development Corp. (AGM Insured) | 5.00 | 4-1-2025 | 500,000 | 510,508 | ||
Broome County Local Development Corp. United Health Services Hospitals Obligated Group (AGM Insured) | 5.00 | 4-1-2024 | 500,000 | 505,872 | ||
New York City Health & Hospitals Corp. Series A | 5.00 | 2-15-2025 | 3,615,000 | 3,724,046 | ||
4,740,426 | ||||||
Housing revenue: 2.18% | ||||||
New York City Housing Development Corp. Series Aøø | 1.13 | 5-1-2060 | 4,000,000 | 3,845,158 | ||
New York City Housing Development Corp. Series C-2øø | 0.70 | 11-1-2060 | 1,000,000 | 933,501 | ||
New York City Housing Development Corp. New York City Housing Development Corp. Series Aøø | 3.70 | 5-1-2063 | 6,000,000 | 6,000,981 | ||
New York State Housing Finance Agency Series J | 0.75 | 5-1-2025 | 8,250,000 | 7,697,801 | ||
18,477,441 | ||||||
Industrial development revenue: 0.11% | ||||||
New York State Energy Research & Development Authority National Grid Generation LLC Series A (Ambac Insured)€øø | 4.59 | 10-1-2028 | 900,000 | 900,000 | ||
Miscellaneous revenue: 0.33% | ||||||
Triborough Bridge & Tunnel Authority Metropolitan Transportation Authority Payroll Mobility Tax Revenue Series B | 5.00 | 5-15-2024 | 2,705,000 | 2,749,088 | ||
Transportation revenue: 1.97% | ||||||
Metropolitan Transportation Authority Series A2 | 5.00 | 11-15-2027 | 2,000,000 | 2,082,356 | ||
Metropolitan Transportation Authority Series Døø | 5.00 | 11-15-2034 | 9,000,000 | 9,139,310 | ||
Triborough Bridge & Tunnel Authority Series A | 5.00 | 11-15-2023 | 1,570,000 | 1,571,913 | ||
Triborough Bridge & Tunnel Authority Series B (U.S. SOFR+0.38%)± | 3.77 | 1-1-2032 | 3,910,000 | 3,887,514 | ||
16,681,093 | ||||||
73,918,518 | ||||||
The accompanying notes are an integral part of these financial statements.
24 | Allspring Ultra Short-Term Municipal Income Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
North Carolina: 0.66% | ||||||
Health revenue: 0.22% | ||||||
Charlotte-Mecklenburg Hospital Authority Atrium Health Obligated Group Series Eøø | 0.80 % | 1-15-2048 | $ | 1,500,000 | $1,381,563 | |
North Carolina Medical Care Commission Lutheran Services for the Aging, Inc. Obligated Group Series A | 4.00 | 3-1-2024 | 215,000 | 213,537 | ||
North Carolina Medical Care Commission Lutheran Services for the Aging, Inc. Obligated Group Series A | 4.00 | 3-1-2025 | 265,000 | 260,372 | ||
1,855,472 | ||||||
Housing revenue: 0.24% | ||||||
North Carolina Housing Finance Agency Wind Crest Senior Living LP | 4.50 | 6-1-2024 | 2,000,000 | 2,000,143 | ||
Industrial development revenue: 0.20% | ||||||
Columbus County Industrial Facilities & Pollution Control Financing Authority International Paper Co. Series C AMTøø | 2.10 | 3-1-2027 | 1,750,000 | 1,711,804 | ||
5,567,419 | ||||||
North Dakota: 0.57% | ||||||
GO revenue: 0.57% | ||||||
Cass County Joint Water Resource District Series A | 0.48 | 5-1-2024 | 5,000,000 | 4,813,118 | ||
Ohio: 4.87% | ||||||
Education revenue: 0.11% | ||||||
Ohio Higher Educational Facility Commission Xavier University | 5.00 | 5-1-2025 | 885,000 | 907,222 | ||
GO revenue: 1.14% | ||||||
City of Elyria BAN | 4.50 | 6-27-2024 | 2,000,000 | 2,012,169 | ||
City of Newark BAN | 4.00 | 9-26-2023 | 5,000,000 | 5,000,439 | ||
City of Toledo | 3.00 | 12-1-2023 | 440,000 | 439,027 | ||
County of Licking BAN | 4.00 | 8-29-2023 | 2,200,000 | 2,199,868 | ||
9,651,503 | ||||||
Health revenue: 1.07% | ||||||
County of Allen Hospital Facilities Revenue Bon Secours Mercy Health, Inc. Series A | 5.00 | 12-1-2024 | 2,325,000 | 2,376,912 | ||
County of Allen Hospital Facilities Revenue Bon Secours Mercy Health, Inc. Series B-1øø | 5.00 | 10-1-2049 | 5,000,000 | 5,279,356 | ||
State of Ohio University Hospitals Health System, Inc. Obligated Group Series Bø | 4.41 | 1-15-2033 | 1,405,000 | 1,405,000 | ||
9,061,268 | ||||||
Housing revenue: 1.79% | ||||||
Ohio Housing Finance Agency Boardwalk Glenville Apartments LP Series A (Department of Housing and Urban Development Insured)øø | 3.50 | 7-1-2025 | 5,000,000 | 4,971,941 | ||
Ohio Housing Finance Agency Delaware Village Apartments LLC (Department of Housing and Urban Development Insured)øø | 3.00 | 10-1-2024 | 3,750,000 | 3,741,336 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 25
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
Ohio Housing Finance Agency RAD Post Oak LLC (Department of Housing and Urban Development Insured)øø | 3.35 % | 7-1-2025 | $ | 2,000,000 | $1,978,007 | |
Ohio Housing Finance Agency Windgrove Senior Housing LP (Department of Housing and Urban Development Insured)øø | 1.25 | 8-1-2024 | 4,500,000 | 4,491,666 | ||
15,182,950 | ||||||
Miscellaneous revenue: 0.10% | ||||||
Southeast Local School District/Wayne County COP | 3.00 | 12-1-2023 | 585,000 | 583,849 | ||
Southeast Local School District/Wayne County COP | 3.00 | 12-1-2024 | 230,000 | 228,718 | ||
812,567 | ||||||
Utilities revenue: 0.66% | ||||||
American Municipal Power, Inc. AMP Fremont Energy Center Revenue Series A | 5.00 | 2-15-2025 | 500,000 | 513,731 | ||
Lancaster Port Authority Series A (Royal Bank of Canada LIQ)øø | 5.00 | 8-1-2049 | 5,000,000 | 5,076,336 | ||
5,590,067 | ||||||
41,205,577 | ||||||
Oklahoma: 0.59% | ||||||
Education revenue: 0.06% | ||||||
University of Oklahoma Series B | 5.00 | 7-1-2025 | 510,000 | 526,546 | ||
Housing revenue: 0.53% | ||||||
Oklahoma County Finance Authority Independent School District No. 9 Jones | 4.00 | 9-1-2023 | 430,000 | 430,209 | ||
Oklahoma County Finance Authority Independent School District No. 9 Jones | 4.00 | 9-1-2024 | 525,000 | 527,644 | ||
Osage County Industrial Authority BAN | 2.00 | 9-1-2023 | 3,500,000 | 3,485,427 | ||
4,443,280 | ||||||
4,969,826 | ||||||
Oregon: 1.46% | ||||||
Education revenue: 0.10% | ||||||
County of Yamhill Linfield University Series A | 4.00 | 10-1-2024 | 850,000 | 844,699 | ||
GO revenue: 0.08% | ||||||
Port of Morrow Series A | 4.00 | 6-1-2024 | 325,000 | 326,435 | ||
Port of Morrow Series A | 4.00 | 6-1-2025 | 325,000 | 328,352 | ||
654,787 | ||||||
Health revenue: 0.10% | ||||||
Hospital Facilities Authority of Multnomah County Terwilliger Plaza, Inc. Obligated Group | 0.95 | 6-1-2027 | 1,000,000 | 873,151 | ||
Industrial development revenue: 1.18% | ||||||
Oregon State Business Development Commission Intel Corp. Series 232øø | 2.40 | 12-1-2040 | 10,000,000 | 9,981,636 | ||
12,354,273 | ||||||
The accompanying notes are an integral part of these financial statements.
26 | Allspring Ultra Short-Term Municipal Income Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Pennsylvania: 5.37% | ||||||
Airport revenue: 0.19% | ||||||
City of Philadelphia Airport Revenue Series A | 5.00 % | 7-1-2025 | $ | 1,545,000 | $1,597,236 | |
Education revenue: 0.47% | ||||||
Delaware County Authority Neumann University | 5.00 | 10-1-2024 | 500,000 | 502,056 | ||
Delaware County Authority Neumann University | 5.00 | 10-1-2025 | 525,000 | 528,206 | ||
Huntingdon County General Authority Juniata College Series T | 5.00 | 10-1-2025 | 355,000 | 360,561 | ||
Huntingdon County General Authority Juniata College Series T | 5.00 | 10-1-2026 | 430,000 | 440,830 | ||
Northampton County General Purpose Authority Lafayette Collegeø | 3.71 | 11-1-2023 | 150,000 | 150,000 | ||
Pennsylvania Higher Educational Facilities Authority Thomas Jefferson University Obligated Group Series Bø | 4.45 | 9-1-2045 | 150,000 | 150,000 | ||
Pennsylvania Higher Educational Facilities Authority York College of Pennsylvania Series T4øø | 3.50 | 5-1-2033 | 1,860,000 | 1,848,192 | ||
3,979,845 | ||||||
GO revenue: 0.57% | ||||||
Albert Gallatin Area School District Series A (AGM Insured) | 4.00 | 9-1-2023 | 1,000,000 | 1,000,877 | ||
Albert Gallatin Area School District Series A (AGM Insured) | 4.00 | 9-1-2024 | 725,000 | 730,763 | ||
Borough of Dunmore Series A (AGM Insured) | 2.00 | 9-1-2024 | 765,000 | 745,462 | ||
Borough of Dunmore Series A (AGM Insured) | 2.00 | 9-1-2026 | 170,000 | 159,653 | ||
Hollidaysburg Area School District | 4.00 | 7-15-2023 | 525,000 | 525,111 | ||
Octorara Area School District (AGM Insured) | 4.00 | 4-1-2025 | 600,000 | 607,649 | ||
Riverside School District (BAM Insured) | 3.00 | 10-15-2023 | 480,000 | 479,216 | ||
Riverside School District (BAM Insured) | 4.00 | 10-15-2025 | 550,000 | 558,598 | ||
4,807,329 | ||||||
Health revenue: 1.29% | ||||||
Allegheny County Hospital Development Authority UPMC Obligated Group (SIFMA Municipal Swap+0.70%)± | 4.71 | 11-15-2047 | 6,000,000 | 5,859,241 | ||
Doylestown Hospital Authority Series A | 5.00 | 7-1-2023 | 1,090,000 | 1,090,000 | ||
Montgomery County Higher Education & Health Authority Thomas Jefferson University Obligated Group Series Dø | 4.45 | 9-1-2050 | 4,000,000 | 4,000,000 | ||
10,949,241 | ||||||
Housing revenue: 1.65% | ||||||
Pennsylvania Housing Finance Agency (Department of Housing and Urban Development Insured)øø | 1.50 | 7-1-2024 | 5,000,000 | 5,000,000 | ||
Pennsylvania Housing Finance Agency Series 137 | 0.45 | 10-1-2023 | 325,000 | 322,591 | ||
Pennsylvania Housing Finance Agency LIH Wilkes-Barre LP (Department of Housing and Urban Development Insured)øø | 1.25 | 2-1-2025 | 6,675,000 | 6,563,174 | ||
Southeastern Pennsylvania Transportation Authority | 5.00 | 6-1-2024 | 1,000,000 | 1,014,410 | ||
Southeastern Pennsylvania Transportation Authority | 5.00 | 6-1-2025 | 1,000,000 | 1,033,431 | ||
13,933,606 | ||||||
Miscellaneous revenue: 0.50% | ||||||
Pennsylvania EDFA Philadelphia Water Department | 3.00 | 1-1-2024 | 865,000 | 862,244 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 27
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Miscellaneous revenue (continued) | ||||||
Sports & Exhibition Authority of Pittsburgh & Allegheny County Allegheny Regional Asset District (AGM Insured) | 4.00 % | 2-1-2025 | $ | 1,860,000 | $1,873,503 | |
State Public School Building Authority Harrisburg School District Series A (AGM Insured) | 5.00 | 12-1-2023 | 1,450,000 | 1,459,091 | ||
4,194,838 | ||||||
Resource recovery revenue: 0.11% | ||||||
Pennsylvania EDFA Waste Management, Inc. Series B AMTøø | 1.10 | 6-1-2031 | 1,000,000 | 906,746 | ||
Tax revenue: 0.08% | ||||||
Allentown Neighborhood Improvement Zone Development Authority | 5.00 | 5-1-2024 | 150,000 | 151,206 | ||
Allentown Neighborhood Improvement Zone Development Authority | 5.00 | 5-1-2025 | 500,000 | 507,517 | ||
658,723 | ||||||
Transportation revenue: 0.10% | ||||||
Pennsylvania Turnpike Commission Series B | 5.00 | 12-1-2023 | 425,000 | 427,854 | ||
Pennsylvania Turnpike Commission Series B | 5.00 | 12-1-2024 | 450,000 | 460,983 | ||
888,837 | ||||||
Water & sewer revenue: 0.41% | ||||||
Allegheny County Sanitary Authority Series A | 4.00 | 6-1-2025 | 150,000 | 152,432 | ||
Pittsburgh Water & Sewer Authority Series C (AGM Insured) (SIFMA Municipal Swap+0.65%)± | 4.66 | 9-1-2040 | 3,340,000 | 3,340,210 | ||
3,492,642 | ||||||
45,409,043 | ||||||
Rhode Island: 0.41% | ||||||
Health revenue: 0.29% | ||||||
Rhode Island Health & Educational Building Corp. Lifespan Obligated Group | 5.00 | 5-15-2024 | 2,475,000 | 2,495,557 | ||
Housing revenue: 0.12% | ||||||
Providence Public Building Authority Series A (AGM Insured) | 4.00 | 9-15-2023 | 1,000,000 | 1,001,253 | ||
3,496,810 | ||||||
South Carolina: 1.68% | ||||||
Housing revenue: 0.59% | ||||||
Tender Option Bond Trust Receipts/Certificates Series 2023-XF3079 (Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ)144Aø | 4.41 | 7-1-2028 | 5,000,000 | 5,000,000 | ||
Utilities revenue: 1.09% | ||||||
Patriots Energy Group Financing Agency Series A (Royal Bank of Canada LIQ)øø | 4.00 | 10-1-2048 | 9,225,000 | 9,225,956 | ||
14,225,956 | ||||||
The accompanying notes are an integral part of these financial statements.
28 | Allspring Ultra Short-Term Municipal Income Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tennessee: 1.31% | ||||||
Airport revenue: 0.57% | ||||||
Memphis-Shelby County Airport Authority Series A AMT | 5.00 % | 7-1-2025 | $ | 2,750,000 | $2,813,639 | |
Memphis-Shelby County Airport Authority Series B AMT | 5.00 | 7-1-2023 | 2,000,000 | 2,000,000 | ||
4,813,639 | ||||||
Utilities revenue: 0.74% | ||||||
City of Memphis Electric System Revenue Series A | 5.00 | 12-1-2023 | 425,000 | 428,284 | ||
City of Memphis Electric System Revenue Series A | 5.00 | 12-1-2024 | 500,000 | 513,593 | ||
Tennessee Energy Acquisition Corp. Series A | 5.25 | 9-1-2024 | 1,690,000 | 1,711,357 | ||
Tennessee Energy Acquisition Corp. Series A-1øø | 5.00 | 5-1-2053 | 3,500,000 | 3,620,884 | ||
6,274,118 | ||||||
11,087,757 | ||||||
Texas: 12.38% | ||||||
Airport revenue: 1.28% | ||||||
City of El Paso Airport Revenue AMT | 5.00 | 8-15-2026 | 2,000,000 | 2,071,800 | ||
City of Houston Airport System Revenue Series A%% | 5.00 | 7-1-2026 | 1,000,000 | 1,040,797 | ||
City of Houston Airport System Revenue Series A%% | 5.00 | 7-1-2027 | 3,000,000 | 3,157,574 | ||
Dallas Fort Worth International Airport Series A | 5.00 | 11-1-2024 | 1,500,000 | 1,534,355 | ||
Love Field Airport Modernization Corp. AMT | 5.00 | 11-1-2024 | 3,000,000 | 3,041,447 | ||
10,845,973 | ||||||
Education revenue: 1.60% | ||||||
Arlington Higher Education Finance Corp. Harmony Public Schools Series A | 4.00 | 2-15-2024 | 110,000 | 110,382 | ||
Arlington Higher Education Finance Corp. Harmony Public Schools Series A | 4.00 | 2-15-2025 | 170,000 | 171,782 | ||
Arlington Higher Education Finance Corp. Harmony Public Schools Series A | 4.00 | 2-15-2026 | 280,000 | 283,658 | ||
Hale Center Education Facilities Corp. Wayland Baptist University | 5.00 | 3-1-2026 | 675,000 | 687,760 | ||
Odessa Junior College District (AGM Insured) | 4.00 | 7-1-2023 | 500,000 | 500,000 | ||
Tender Option Bond Trust Receipts/Certificates Series 2022-035 (Morgan Stanley Municipal Funding LOC, Morgan Stanley Municipal Funding LIQ)144Aø | 4.41 | 6-15-2056 | 11,780,000 | 11,780,000 | ||
13,533,582 | ||||||
GO revenue: 4.65% | ||||||
Andrews County Hospital District | 5.00 | 3-15-2025 | 1,140,000 | 1,166,143 | ||
City of Beaumont | 5.00 | 3-1-2025 | 1,065,000 | 1,096,458 | ||
City of Port Arthur (BAM Insured) | 5.00 | 2-15-2025 | 445,000 | 456,797 | ||
Cypress-Fairbanks Independent School District Series B1øø | 0.28 | 2-15-2040 | 3,650,000 | 3,507,418 | ||
Fort Bend Independent School District Series Bøø | 0.88 | 8-1-2050 | 3,075,000 | 2,888,067 | ||
Georgetown Independent School District Series Bøø | 2.50 | 8-1-2044 | 5,700,000 | 5,695,823 | ||
Katy Independent School Districtøø | 1.50 | 8-15-2050 | 4,500,000 | 4,401,429 | ||
Little Elm Independent School Districtøø | 0.68 | 8-15-2048 | 515,000 | 487,864 | ||
North East Independent School Districtøø%% | 3.60 | 8-1-2052 | 3,000,000 | 2,998,829 | ||
North East Independent School District Series Bøø | 2.00 | 8-1-2052 | 2,565,000 | 2,562,506 | ||
Northside Independent School Districtøø | 1.60 | 8-1-2049 | 3,145,000 | 3,060,453 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 29
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
Plainview Independent School District Series Bøø | 1.50 % | 2-15-2050 | $ | 9,000,000 | $8,979,435 | |
Tomball Independent School District Series B1øø | 0.45 | 2-15-2036 | 2,000,000 | 1,991,239 | ||
39,292,461 | ||||||
Health revenue: 0.92% | ||||||
Coastal Bend Health Facilities Development Corp. CHRISTUS Health Obligated Group Series B-2 (AGM Insured)€øø | 4.49 | 7-1-2031 | 2,450,000 | 2,450,000 | ||
Harris County Cultural Education Facilities Finance Corp. Memorial Hermann Health System Obligated Group Series C-2øø | 5.00 | 6-1-2032 | 3,100,000 | 3,158,092 | ||
Harris County Health Facilities Development Corp. CHRISTUS Health Obligated Group Series A-3 (AGM Insured)€øø | 4.49 | 7-1-2031 | 350,000 | 350,000 | ||
Harris County Health Facilities Development Corp. CHRISTUS Health Obligated Group Series A-4 (AGM Insured)€øø | 4.49 | 7-1-2031 | 525,000 | 525,000 | ||
Tarrant County Cultural Education Facilities Finance Corp. Buckner Retirement Services, Inc. Obligated Group Series A | 5.00 | 11-15-2023 | 1,245,000 | 1,245,693 | ||
7,728,785 | ||||||
Housing revenue: 2.37% | ||||||
Cameron County Housing Finance Corp. Rockwell Manor Housing Partners LPøø | 3.50 | 12-1-2024 | 3,800,000 | 3,789,083 | ||
County of Wise Weatherford College of the Parker County Junior College District | 5.00 | 8-15-2024 | 450,000 | 457,474 | ||
Galveston Public Facility Corp. Oleanders at Broadway LP (Department of Housing and Urban Development Insured)øø | 0.47 | 8-1-2025 | 5,200,000 | 4,992,449 | ||
Housing Options, Inc. Brooks Manor LPøø | 0.50 | 8-1-2041 | 6,250,000 | 5,811,891 | ||
Housing Synergy PFC Villages at Westlake Apartments LP (Department of Housing and Urban Development Insured)øø | 3.50 | 8-1-2025 | 5,000,000 | 4,972,399 | ||
20,023,296 | ||||||
Miscellaneous revenue: 0.05% | ||||||
Dallas Performing Arts Cultural Facilities Corp. Dallas Center for the Performing Arts Foundation, Inc. Series A (Bank of America NA LOC)ø | 4.01 | 9-1-2041 | 448,000 | 448,000 | ||
Transportation revenue: 0.30% | ||||||
Central Texas Regional Mobility Authority Series F BAN | 5.00 | 1-1-2025 | 2,500,000 | 2,533,869 | ||
Utilities revenue: 1.21% | ||||||
City of San Antonio Electric & Gas Systems Revenueøø | 3.65 | 2-1-2053 | 3,000,000 | 2,995,170 | ||
City of San Antonio Electric & Gas Systems Revenue (SIFMA Municipal Swap+0.87%)± | 4.88 | 2-1-2048 | 4,000,000 | 4,000,197 | ||
Texas Municipal Gas Acquisition & Supply Corp. III | 5.00 | 12-15-2024 | 1,500,000 | 1,517,125 | ||
Texas Municipal Power Agency (AGM Insured) | 3.00 | 9-1-2024 | 750,000 | 745,627 | ||
Texas Municipal Power Agency (AGM Insured) | 3.00 | 9-1-2025 | 1,000,000 | 985,163 | ||
10,243,282 | ||||||
104,649,248 | ||||||
The accompanying notes are an integral part of these financial statements.
30 | Allspring Ultra Short-Term Municipal Income Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Utah: 0.16% | ||||||
Airport revenue: 0.16% | ||||||
City of Salt Lake City Airport Revenue Series A AMT | 5.00 % | 7-1-2025 | $ | 1,325,000 | $1,357,195 | |
Virginia: 3.49% | ||||||
Education revenue: 0.06% | ||||||
Virginia College Building Authority Regent University | 5.00 | 6-1-2024 | 225,000 | 225,983 | ||
Virginia College Building Authority Regent University | 5.00 | 6-1-2025 | 250,000 | 252,037 | ||
478,020 | ||||||
Health revenue: 0.06% | ||||||
Virginia Small Business Financing Authority National Senior Communities, Inc. Obligated Group Series A | 5.00 | 1-1-2024 | 500,000 | 502,363 | ||
Housing revenue: 1.70% | ||||||
Fairfax County Redevelopment & Housing Authority One University Senior LLCøø | 1.25 | 12-1-2025 | 15,000,000 | 14,410,244 | ||
Transportation revenue: 0.54% | ||||||
Chesapeake Bay Bridge & Tunnel District BAN | 5.00 | 11-1-2023 | 4,520,000 | 4,537,175 | ||
Utilities revenue: 1.13% | ||||||
Halifax County IDA Virginia Electric & Power Co. Series Aøø | 1.65 | 12-1-2041 | 3,500,000 | 3,406,161 | ||
Louisa IDA Virginia Electric & Power Co. Series Bøø | 0.75 | 11-1-2035 | 3,000,000 | 2,749,805 | ||
Wise County IDA Virginia Electric & Power Co. Series Aøø | 1.20 | 11-1-2040 | 3,525,000 | 3,419,620 | ||
9,575,586 | ||||||
29,503,388 | ||||||
Washington: 0.88% | ||||||
Airport revenue: 0.30% | ||||||
Port of Seattle Series C AMT | 5.00 | 4-1-2025 | 2,500,000 | 2,540,168 | ||
Health revenue: 0.05% | ||||||
Washington Health Care Facilities Authority Fred Hutchinson Cancer Center Obligated Group144A | 5.00 | 12-1-2023 | 250,000 | 251,547 | ||
Washington Health Care Facilities Authority Fred Hutchinson Cancer Center Obligated Group144A | 5.00 | 12-1-2024 | 195,000 | 199,219 | ||
450,766 | ||||||
Housing revenue: 0.53% | ||||||
Everett Housing Authorityøø | 0.30 | 9-1-2024 | 2,500,000 | 2,482,280 | ||
Seattle Housing Authority Northgate Plaza Project | 1.00 | 6-1-2026 | 2,175,000 | 1,989,674 | ||
4,471,954 | ||||||
7,462,888 | ||||||
West Virginia: 0.80% | ||||||
Health revenue: 0.48% | ||||||
West Virginia Hospital Finance Authority West Virginia United Health System Obligated Group Series A | 5.00 | 6-1-2024 | 4,000,000 | 4,051,560 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 31
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Industrial development revenue: 0.32% | ||||||
West Virginia EDA Appalachian Power Co. Series Aøø | 0.63 % | 12-1-2038 | $ | 3,000,000 | $2,730,024 | |
6,781,584 | ||||||
Wisconsin: 2.64% | ||||||
Education revenue: 0.24% | ||||||
Wisconsin HEFA Marquette University | 5.00 | 10-1-2023 | 2,000,000 | 2,007,202 | ||
GO revenue: 0.71% | ||||||
City of Milwaukee Series N3 (AGM Insured) | 5.00 | 4-1-2024 | 3,000,000 | 3,034,131 | ||
State of Wisconsin Series A (SIFMA Municipal Swap+0.42%)± | 4.43 | 5-1-2025 | 3,000,000 | 2,992,468 | ||
6,026,599 | ||||||
Health revenue: 0.76% | ||||||
PFA Renown Regional Medical Center Obligated Group Series A | 5.00 | 6-1-2024 | 2,000,000 | 2,020,253 | ||
PFA Renown Regional Medical Center Obligated Group Series A | 5.00 | 6-1-2025 | 385,000 | 393,570 | ||
Wisconsin HEFA Beloit Health System Obligated Group | 5.00 | 7-1-2024 | 945,000 | 956,318 | ||
Wisconsin HEFA Fort Healthcare, Inc. Obligated Group | 5.00 | 5-1-2024 | 1,485,000 | 1,498,506 | ||
Wisconsin HEFA St. Camillus Health System Obligated Group Series A | 5.00 | 11-1-2023 | 125,000 | 124,635 | ||
Wisconsin HEFA St. John’s Communities, Inc. Obligated Group | 4.00 | 9-15-2023 | 710,000 | 709,116 | ||
Wisconsin HEFA St. John’s Communities, Inc. Obligated Group | 4.00 | 9-15-2024 | 735,000 | 729,555 | ||
6,431,953 | ||||||
Miscellaneous revenue: 0.41% | ||||||
County of Waushara Series A | 4.75 | 12-1-2023 | 2,500,000 | 2,503,136 | ||
Town of Clayton Series B | 2.00 | 6-1-2026 | 1,000,000 | 938,028 | ||
3,441,164 | ||||||
Utilities revenue: 0.35% | ||||||
PFA Duke Energy Progress LLC Series A-1øø | 3.30 | 10-1-2046 | 3,000,000 | 2,982,698 | ||
Water & sewer revenue: 0.17% | ||||||
Town of Clayton Water & Sewer System Revenue Series C BAN | 2.00 | 6-1-2026 | 1,500,000 | 1,407,043 | ||
22,296,659 | ||||||
Wyoming: 0.51% | ||||||
Health revenue: 0.36% | ||||||
County of Laramie Cheyenne Regional Medical Center | 4.00 | 5-1-2025 | 1,030,000 | 1,042,034 | ||
Sublette County Hospital District Series A%% | 5.00 | 6-15-2026 | 2,000,000 | 2,000,103 | ||
3,042,137 | ||||||
Housing revenue: 0.15% | ||||||
Wyoming CDA Series 4 AMT (GNMA / FNMA / FHLMC Insured) | 0.35 | 12-1-2023 | 1,235,000 | 1,220,285 | ||
4,262,422 | ||||||
Total municipal obligations (Cost $888,109,527) | 874,847,891 | |||||
The accompanying notes are an integral part of these financial statements.
32 | Allspring Ultra Short-Term Municipal Income Fund
Portfolio of investments—June 30, 2023
Yield | Maturity date | Principal | Value | |||
Short-term investments: 1.33% | ||||||
Commercial paper: 0.24% | ||||||
County of Mercer | 3.50 % | 8-3-2023 | $ | 2,000,000 | $1,999,335 | |
Shares | ||||||
Investment companies: 1.09% | ||||||
Allspring Municipal Cash Management Money Market Fund Institutional Class♠∞## | 4.07 | 9,252,867 | 9,254,718 | |||
Total short-term investments (Cost $11,254,717) | 11,254,053 | |||||
Total investments in securities (Cost $899,364,244) | 104.79 % | 886,101,944 | ||||
Other assets and liabilities, net | (4.79 ) | (40,467,742 ) | ||||
Total net assets | 100.00 % | $845,634,202 | ||||
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
± | Variable rate investment. The rate shown is the rate in effect at period end. |
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
%% | The security is purchased on a when-issued basis. |
€ | The security is an auction-rate security which has an interest rate that resets at predetermined short-term intervals through a Dutch auction. 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. |
## | All or a portion of this security is segregated for when-issued securities. |
♠ | 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: | |
AGC | Assured Guaranty Corporation |
AGM | Assured Guaranty Municipal |
Ambac | Ambac Financial Group Incorporated |
AMT | Alternative minimum tax |
BAM | Build America Mutual Assurance Company |
BAN | Bond anticipation note |
CDA | Community Development Authority |
COP | Certificate of participation |
EDA | Economic Development Authority |
EDFA | Economic Development Finance Authority |
FHA | Federal Housing Administration |
FHLMC | Federal Home Loan Mortgage Corporation |
FNMA | Federal National Mortgage Association |
GNMA | Government National Mortgage Association |
GO | General obligation |
HEFA | Health & Educational Facilities Authority |
HFA | Housing Finance Authority |
HFFA | Health Facilities Financing Authority |
IDA | Industrial Development Authority |
LIQ | Liquidity agreement |
LOC | Letter of credit |
NPFGC | National Public Finance Guarantee Corporation |
PFA | Public Finance Authority |
RDA | Redevelopment Authority |
SIFMA | Securities Industry and Financial Markets Association |
SOFR | Secured Overnight Financing Rate |
TTFA | Transportation Trust Fund Authority |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 33
Portfolio of investments—June 30, 2023
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 Municipal Cash Management Money Market Fund Institutional Class | $34,898,697 | $657,502,422 | $(683,137,059 ) | $(9,342 ) | $0 | $9,254,718 | 9,252,867 | $263,823 |
The accompanying notes are an integral part of these financial statements.
34 | Allspring Ultra Short-Term Municipal Income Fund
Statement of assets and liabilities—June 30, 2023
Financial statements
Statement of assets and liabilities
Assets | |
Investments in unaffiliated securities, at value (cost $890,109,526) | $876,847,226 |
Investments in affiliated securities, at value (cost $9,254,718) | 9,254,718 |
Cash | 5,849 |
Receivable for interest | 6,812,762 |
Receivable for Fund shares sold | 2,331,669 |
Receivable for investments sold | 2,320,000 |
Prepaid expenses and other assets | 6,864 |
Total assets | 897,579,088 |
Liabilities | |
Payable for investments purchased | 34,410,014 |
Payable for when-issued transactions | 14,579,549 |
Payable for Fund shares redeemed | 1,908,652 |
Dividends payable | 592,813 |
Management fee payable | 71,385 |
Administration fees payable | 65,828 |
Distribution fee payable | 1,888 |
Trustees’ fees and expenses payable | 200 |
Accrued expenses and other liabilities | 314,557 |
Total liabilities | 51,944,886 |
Total net assets | $845,634,202 |
Net assets consist of | |
Paid-in capital | $891,516,537 |
Total distributable loss | (45,882,335 ) |
Total net assets | $845,634,202 |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 35
Statement of assets and liabilities—June 30, 2023
Computation of net asset value and offering price per share | |
Net assets–Class A | $224,085,644 |
Shares outstanding–Class A1 | 23,613,976 |
Net asset value per share–Class A | $9.49 |
Maximum offering price per share – Class A2 | $9.68 |
Net assets–Class A2 | $22,781,782 |
Shares outstanding–Class A21 | 2,400,752 |
Net asset value per share–Class A2 | $9.49 |
Net assets–Class C | $2,838,709 |
Shares outstanding–Class C1 | 301,680 |
Net asset value per share–Class C | $9.41 |
Net assets–Class R6 | $272,992,806 |
Shares outstanding–Class R61 | 28,770,443 |
Net asset value per share–Class R6 | $9.49 |
Net assets–Administrator Class | $7,689,072 |
Shares outstanding–Administrator Class1 | 810,134 |
Net asset value per share–Administrator Class | $9.49 |
Net assets–Institutional Class | $315,246,189 |
Shares outstanding–Institutional Class1 | 33,216,704 |
Net asset value per share–Institutional Class | $9.49 |
1 | The Fund has an unlimited number of authorized shares. |
2 | Maximum offering price is computed as 100/98 of net asset value. On investments of $100,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial statements.
36 | Allspring Ultra Short-Term Municipal Income Fund
Statement of operations—year ended June 30, 2023
Statement of operations
Investment income | |
Interest | $21,872,539 |
Income from affiliated securities | 263,823 |
Total investment income | 22,136,362 |
Expenses | |
Management fee | 2,962,426 |
Administration fees | |
Class A | 412,986 |
Class A2 | 49,793 |
Class C | 4,829 |
Class R6 | 134,910 |
Administrator Class | 9,079 |
Institutional Class | 365,177 |
Shareholder servicing fees | |
Class A | 641,282 |
Class A2 | 46,698 |
Class C | 7,550 |
Administrator Class | 22,452 |
Distribution fee | |
Class C | 22,648 |
Custody and accounting fees | 56,079 |
Professional fees | 70,332 |
Registration fees | 407 |
Shareholder report expenses | 27,387 |
Trustees’ fees and expenses | 21,982 |
Other fees and expenses | 15,587 |
Total expenses | 4,871,604 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (1,091,000 ) |
Class A | (214,450 ) |
Class A2 | (25,666 ) |
Class C | (2,630 ) |
Administrator Class | (1,869 ) |
Net expenses | 3,535,989 |
Net investment income | 18,600,373 |
Realized and unrealized gains (losses) on investments | |
Net realized losses on | |
Unaffiliated securities | (1,698,136 ) |
Affiliated securities | (9,342 ) |
Net realized losses on investments | (1,707,478 ) |
Net change in unrealized gains (losses) on investments | 5,063,907 |
Net realized and unrealized gains (losses) on investments | 3,356,429 |
Net increase in net assets resulting from operations | $21,956,802 |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 37
Statement of changes in net assets
Statement of changes in net assets
Year ended June 30, 2023 | Year ended June 30, 2022 | |||
Operations | ||||
Net investment income | $18,600,373 | $9,953,322 | ||
Net realized losses on investments | (1,707,478 ) | (3,377,534 ) | ||
Net change in unrealized gains (losses) on investments | 5,063,907 | (27,597,940 ) | ||
Net increase (decrease) in net assets resulting from operations | 21,956,802 | (21,022,152 ) | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class A | (3,539,473 ) | (865,557 ) | ||
Class A2 | (450,301 ) | (131,876 ) | ||
Class C | (19,921 ) | (248 ) | ||
Class R6 | (7,230,719 ) | (4,825,090 ) | ||
Administrator Class | (123,532 ) | (35,353 ) | ||
Institutional Class | (7,211,784 ) | (4,088,084 ) | ||
Total distributions to shareholders | (18,575,730 ) | (9,946,208 ) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class A | 967,918 | 9,129,100 | 7,968,345 | 76,073,481 |
Class A2 | 385,626 | 3,652,033 | 2,041,156 | 19,575,873 |
Class C | 85,052 | 794,711 | 201,436 | 1,874,708 |
Class R6 | 36,406,097 | 343,765,850 | 88,642,693 | 846,259,035 |
Administrator Class | 142,041 | 1,339,105 | 177,949 | 1,693,573 |
Institutional Class | 20,704,831 | 195,532,432 | 65,339,432 | 623,543,205 |
554,213,231 | 1,569,019,875 | |||
Reinvestment of distributions | ||||
Class A | 358,067 | 3,383,515 | 87,879 | 835,057 |
Class A2 | 47,407 | 447,852 | 13,879 | 131,851 |
Class C | 285 | 2,676 | 12 | 110 |
Class R6 | 37,069 | 350,429 | 26,441 | 253,024 |
Administrator Class | 12,649 | 119,554 | 3,673 | 34,931 |
Institutional Class | 690,762 | 6,527,373 | 346,770 | 3,303,797 |
10,831,399 | 4,558,770 | |||
Payment for shares redeemed | ||||
Class A | (8,496,035 ) | (80,239,978 ) | (10,322,156 ) | (98,496,147 ) |
Class A2 | (2,218,832 ) | (20,965,965 ) | (2,275,348 ) | (21,707,756 ) |
Class C | (46,211 ) | (434,015 ) | (114,010 ) | (1,077,939 ) |
Class R6 | (78,411,446 ) | (740,696,209 ) | (125,369,945 ) | (1,197,296,289 ) |
Administrator Class | (500,475 ) | (4,723,634 ) | (602,756 ) | (5,745,921 ) |
Institutional Class | (65,858,010 ) | (622,683,111 ) | (69,550,721 ) | (664,217,591 ) |
(1,469,742,912 ) | (1,988,541,643 ) | |||
Net decrease in net assets resulting from capital share transactions | (904,698,282 ) | (414,962,998 ) | ||
Total decrease in net assets | (901,317,210 ) | (445,931,358 ) | ||
Net assets | ||||
Beginning of period | 1,746,951,412 | 2,192,882,770 | ||
End of period | $845,634,202 | $1,746,951,412 | ||
The accompanying notes are an integral part of these financial statements.
38 | Allspring Ultra Short-Term Municipal Income Fund
Financial highlights
Financial highlights
(For a share outstanding throughout each period)
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class A | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.45 | $9.61 | $9.59 | $9.60 | $9.57 |
Net investment income | 0.13 1 | 0.03 | 0.04 | 0.12 | 0.12 1 |
Net realized and unrealized gains (losses) on investments | 0.04 | (0.16 ) | 0.02 | (0.01 ) | 0.03 |
Total from investment operations | 0.17 | (0.13 ) | 0.06 | 0.11 | 0.15 |
Distributions to shareholders from | |||||
Net investment income | (0.13 ) | (0.03 ) | (0.04 ) | (0.12 ) | (0.12 ) |
Net asset value, end of period | $9.49 | $9.45 | $9.61 | $9.59 | $9.60 |
Total return2 | 1.83 % | (1.38 )% | 0.62 % | 1.13 % | 1.63 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.67 % | 0.66 % | 0.66 % | 0.77 % | 0.77 % |
Net expenses | 0.50 % | 0.50 % | 0.50 % | 0.65 % | 0.67 % |
Net investment income | 1.37 % | 0.29 % | 0.42 % | 1.21 % | 1.28 % |
Supplemental data | |||||
Portfolio turnover rate | 29 % | 46 % | 30 % | 55 % | 55 % |
Net assets, end of period (000s omitted) | $224,086 | $291,008 | $317,609 | $376,203 | $444,581 |
1 | Calculated based upon average shares outstanding |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 39
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | ||||
Class A2 | 2023 | 2022 | 2021 | 20201 |
Net asset value, beginning of period | $9.45 | $9.61 | $9.59 | $9.58 |
Net investment income | 0.14 2 | 0.03 | 0.04 | 0.01 |
Net realized and unrealized gains (losses) on investments | 0.04 | (0.16 ) | 0.02 | 0.01 |
Total from investment operations | 0.18 | (0.13 ) | 0.06 | 0.02 |
Distributions to shareholders from | ||||
Net investment income | (0.14 ) | (0.03 ) | (0.04 ) | (0.01 ) |
Net asset value, end of period | $9.49 | $9.45 | $9.61 | $9.59 |
Total return3 | 1.93 % | (1.36 )% | 0.62 % | 0.18 % |
Ratios to average net assets (annualized) | ||||
Gross expenses | 0.57 % | 0.64 % | 0.66 % | 0.65 % |
Net expenses | 0.40 % | 0.48 % | 0.50 % | 0.50 % |
Net investment income | 1.45 % | 0.29 % | 0.40 % | 0.88 % |
Supplemental data | ||||
Portfolio turnover rate | 29 % | 46 % | 30 % | 55 % |
Net assets, end of period (000s omitted) | $22,782 | $39,575 | $42,354 | $25 |
1 | For the period from May 29, 2020 (commencement of class operations) to June 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.
40 | Allspring Ultra Short-Term Municipal Income Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class C | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.32 | $9.48 | $9.41 | $9.43 | $9.40 |
Net investment income | 0.06 1 | 0.00 1,2 | 0.00 1,2 | 0.04 1 | 0.05 1 |
Payment from affiliate | 0.00 | 0.00 | 0.07 | 0.00 | 0.00 |
Net realized and unrealized gains (losses) on investments | 0.09 | (0.16 ) | 0.00 | (0.02 ) | 0.03 |
Total from investment operations | 0.15 | (0.16 ) | 0.07 | 0.02 | 0.08 |
Distributions to shareholders from | |||||
Net investment income | (0.06 ) | (0.00 )2 | (0.00 )2 | (0.04 ) | (0.05 ) |
Net asset value, end of period | $9.41 | $9.32 | $9.48 | $9.41 | $9.43 |
Total return3 | 1.62 %4 | (1.67 )% | 0.76 %5 | 0.26 % | 0.87 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.42 % | 1.40 % | 1.41 % | 1.51 % | 1.52 % |
Net expenses | 1.25 % | 0.81 %* | 0.92 %* | 1.41 % | 1.42 % |
Net investment income | 0.66 % | 0.02 % | 0.02 % | 0.47 % | 0.54 % |
Supplemental data | |||||
Portfolio turnover rate | 29 % | 46 % | 30 % | 55 % | 55 % |
Net assets, end of period (000s omitted) | $2,839 | $2,448 | $1,659 | $2,925 | $10,135 |
* | Ratio includes class-level expenses which were voluntarily waived by the investment manager. Without this voluntary waiver, the net expense ratio would be increased by the following amounts: |
Year ended June 30, 2022 | 0.44% |
Year ended June 30, 2021 | 0.33% |
1 | Calculated based upon average shares outstanding |
2 | Amount is less than $0.005. |
3 | Total return calculations do not include any sales charges. |
4 | During the year ended June 30, 2023, the Fund received a payment from a service provider which had a 0.51% impact on the total return. |
5 | During the year ended June 30, 2021, the Fund received a payment from an affiliate which had a 0.73% impact on total return. |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 41
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class R6 | 2023 | 2022 | 2021 | 2020 | 20191 |
Net asset value, beginning of period | $9.45 | $9.61 | $9.59 | $9.60 | $9.58 |
Net investment income | 0.15 2 | 0.06 | 0.07 | 0.15 | 0.15 2 |
Net realized and unrealized gains (losses) on investments | 0.05 | (0.16 ) | 0.02 | (0.01 ) | 0.02 |
Total from investment operations | 0.20 | (0.10 ) | 0.09 | 0.14 | 0.17 |
Distributions to shareholders from | |||||
Net investment income | (0.16 ) | (0.06 ) | (0.07 ) | (0.15 ) | (0.15 ) |
Net asset value, end of period | $9.49 | $9.45 | $9.61 | $9.59 | $9.60 |
Total return3 | 2.13 % | (1.09 )% | 0.92 % | 1.47 % | 1.76 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.29 % | 0.28 % | 0.28 % | 0.38 % | 0.39 % |
Net expenses | 0.20 % | 0.20 % | 0.20 % | 0.31 % | 0.32 % |
Net investment income | 1.61 % | 0.56 % | 0.71 % | 1.54 % | 1.73 % |
Supplemental data | |||||
Portfolio turnover rate | 29 % | 46 % | 30 % | 55 % | 55 % |
Net assets, end of period (000s omitted) | $272,993 | $668,633 | $1,032,413 | $822,986 | $770,634 |
1 | For the period from July 31, 2018 (commencement of class operations) to June 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.
42 | Allspring Ultra Short-Term Municipal Income Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Administrator Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.45 | $9.61 | $9.59 | $9.60 | $9.57 |
Net investment income | 0.13 1 | 0.03 1 | 0.04 | 0.12 1 | 0.13 1 |
Net realized and unrealized gains (losses) on investments | 0.04 | (0.16 ) | 0.02 | (0.01 ) | 0.03 |
Total from investment operations | 0.17 | (0.13 ) | 0.06 | 0.11 | 0.16 |
Distributions to shareholders from | |||||
Net investment income | (0.13 ) | (0.03 ) | (0.04 ) | (0.12 ) | (0.13 ) |
Net asset value, end of period | $9.49 | $9.45 | $9.61 | $9.59 | $9.60 |
Total return | 1.83 % | (1.39 )% | 0.62 % | 1.19 % | 1.70 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.61 % | 0.60 % | 0.60 % | 0.70 % | 0.70 % |
Net expenses | 0.50 % | 0.50 % | 0.50 % | 0.59 % | 0.60 % |
Net investment income | 1.36 % | 0.27 % | 0.42 % | 1.28 % | 1.34 % |
Supplemental data | |||||
Portfolio turnover rate | 29 % | 46 % | 30 % | 55 % | 55 % |
Net assets, end of period (000s omitted) | $7,689 | $10,929 | $15,157 | $18,243 | $25,649 |
1 | Calculated based upon average shares outstanding |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Municipal Income Fund | 43
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Institutional Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $9.45 | $9.61 | $9.59 | $9.60 | $9.57 |
Net investment income | 0.15 1 | 0.05 | 0.06 | 0.14 | 0.15 1 |
Net realized and unrealized gains (losses) on investments | 0.05 | (0.16 ) | 0.02 | 0.00 | 0.03 |
Total from investment operations | 0.20 | (0.11 ) | 0.08 | 0.14 | 0.18 |
Distributions to shareholders from | |||||
Net investment income | (0.16 ) | (0.05 ) | (0.06 ) | (0.15 ) | (0.15 ) |
Net asset value, end of period | $9.49 | $9.45 | $9.61 | $9.59 | $9.60 |
Total return | 2.08 % | (1.14 )% | 0.87 % | 1.42 % | 1.93 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.34 % | 0.33 % | 0.33 % | 0.43 % | 0.44 % |
Net expenses | 0.25 % | 0.25 % | 0.25 % | 0.36 % | 0.37 % |
Net investment income | 1.58 % | 0.52 % | 0.66 % | 1.50 % | 1.56 % |
Supplemental data | |||||
Portfolio turnover rate | 29 % | 46 % | 30 % | 55 % | 55 % |
Net assets, end of period (000s omitted) | $315,246 | $734,360 | $783,690 | $685,081 | $643,762 |
1 | Calculated based upon average shares outstanding |
The accompanying notes are an integral part of these financial statements.
44 | Allspring Ultra Short-Term Municipal Income Fund
Notes to financial statements
Notes to financial statements
1.
ORGANIZATION
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Ultra Short-Term Municipal Income 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.
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 any of 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.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, 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 Ultra Short-Term Municipal Income Fund | 45
Notes to financial statements
As of June 30, 2023, the aggregate cost of all investments for federal income tax purposes was $899,364,244 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $230,769 |
Gross unrealized losses | (13,493,069 ) |
Net unrealized losses | $(13,262,300 ) |
As of June 30, 2023, the Fund had capital loss carryforwards which consist of $5,761,039 in short-term capital losses and $26,383,257 in long-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.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2023:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Municipal obligations | $0 | $874,847,891 | $0 | $874,847,891 |
Short-term investments | ||||
Commercial paper | 0 | 1,999,335 | 0 | 1,999,335 |
Investment companies | 9,254,718 | 0 | 0 | 9,254,718 |
Total assets | $9,254,718 | $876,847,226 | $0 | $886,101,944 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended June 30, 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
46 | Allspring Ultra Short-Term Municipal Income Fund
Notes to financial statements
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 $1 billion | 0.250 % |
Next $4 billion | 0.225 |
Next $5 billion | 0.190 |
Over $10 billion | 0.180 |
For the year ended June 30, 2023, the management fee was equivalent to an annual rate of 0.25% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.15% 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 | 0.15 % |
Class A2 | 0.15 |
Class C | 0.15 |
Class R6 | 0.03 |
Administrator Class | 0.10 |
Institutional Class | 0.08 |
Prior to June 30, 2023, the class-level administration fee for Class A, Class A2 and Class C was 0.16% of the average daily net assets of each respective class.
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 October 31, 2023 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 June 30, 2023, the contractual expense caps are as follows:
EXPENSE RATIO CAPS | |
Class A | 0.50 % |
Class A2 | 0.40 |
Class C | 1.25 |
Class R6 | 0.20 |
Administrator Class | 0.50 |
Institutional Class | 0.25 |
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 Ultra Short-Term Municipal Income Fund | 47
Notes to financial statements
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 year ended June 30, 2023, Allspring Funds Distributor received $143 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the year ended June 30, 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. Class A2 shares are charged a fee at an annual rate up to 0.15% of its average daily net assets. 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. Pursuant to these procedures, the Fund had $129,010,000, $296,030,000 and $0 in interfund purchases, sales and net realized gains (losses), respectively, during the year ended June 30, 2023.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2023 were $310,495,179 and $548,315,837, 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 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 year ended June 30, 2023, there were no borrowings by the Fund under the agreement.
7.
DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid was $18,575,730 and $9,946,208 of tax-exempt income for the years ended June 30, 2023 and June 30, 2022, respectively.
As of June 30, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | Unrealized losses | Capital loss carryforward |
$117,074 | $(13,262,300 ) | $(32,144,296 ) |
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.
48 | Allspring Ultra Short-Term Municipal Income Fund
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring Ultra Short-Term Municipal Income Fund (the Fund), one of the funds constituting Allspring Funds Trust, including the portfolio of investments, as of June 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of June 30, 2023, by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
August 25, 2023
Allspring Ultra Short-Term Municipal Income Fund | 49
Other information (unaudited)
Other information
Tax information
Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2023.
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 1-866-259-3305, 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.
50 | Allspring Ultra Short-Term Municipal Income 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 |
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 |
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.
Allspring Ultra Short-Term Municipal Income Fund | 51
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 |
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. |
52 | Allspring Ultra Short-Term Municipal Income Fund
Other information (unaudited)
Officers1
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 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 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 Ultra Short-Term Municipal Income Fund | 53
Other information (unaudited)
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 15-17, 2023 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Ultra Short-Term Municipal Income Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2023, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
he Board noted that it initially approved the Advisory Agreements at a Board meeting held in May 2021, each for a two-year term, in advance of the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC,1 a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. (the “Transaction”). The Trustees also noted that, while they did not specifically consider the continuation of the Advisory Agreements in 2022 as a result of the two-year term that was approved in 2021, the Trustees received and considered certain information at a Board meeting held in April 2022 that was applicable to the Advisory Agreements, including an overview and financial review of the Allspring Global Investments business, information regarding certain ancillary agreements that were approved by the Board at the April 2022 Board meeting, and comparative data regarding Fund fees and expenses.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2023. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business. The Board also considered information about retention arrangements with respect to key personnel of Allspring Global Investments that were put in place in connection with the Transaction. The Board took into account information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the Transaction under a transition services agreement and the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
1
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
54 | Allspring Ultra Short-Term Municipal Income Fund
Other information (unaudited)
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, and Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2022. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for the one- and three-year periods under review, and that the investment performance of the Fund was in range of the average investment performance of the Universe for the five- and ten-year periods under review. The Board also noted that the investment performance of the Fund was lower than the investment performance of its benchmark index, the Ultra Short-Term Municipal Income Blended Index, for all periods under review.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than the sum of these average rates for the Fund’s expense Groups for the Administrator Class, the Institutional Class and the Class R6 shares, that the Management Rates of the Fund were equal to the sum of these average rates for the Fund’s expense Groups for the Class A shares, and that the Management Rates of the Fund were in range of the sum of these average rates for the Fund’s expense Groups for the Class A2 shares.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Allspring Ultra Short-Term Municipal Income Fund | 55
Other information (unaudited)
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Profitability
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and differences in how Allspring Global Investments calculates its pre-tax profit metric versus the methodology used when Allspring Funds Management was part of Wells Fargo. It was noted that the impact of such differences had only minor impact on the financial results presented. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser and fees earned in the past by Allspring Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund complex’s securities lending collateral.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
56 | Allspring Ultra Short-Term Municipal Income Fund
Other information (unaudited)
Liquidity risk management program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that operate as money market funds), including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund’s investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the “Council”) composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 16-17, 2023, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2022 through December 31, 2022 (the “Reporting Period”). The Report noted significant liquidity events impacting the Funds related to extended foreign market holidays as well as the difficulty of trading and settlement of most Russia-related securities due to sanctions activity. The Report noted that there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage the Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
Allspring Ultra Short-Term Municipal Income Fund | 57
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
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.
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The views expressed and any forward-looking statements are as of June 30, 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 Wisconsin Tax-Free Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Allspring Funds
Dear Shareholder:
We are pleased to offer you this annual report for the Allspring Wisconsin Tax-Free Fund for the 12-month period that ended June 30, 2023. Globally, stocks and bonds experienced heightened volatility through the period. The market was focused on persistently high inflation and the impact of ongoing aggressive central bank rate hikes. Compounding these concerns were the global reverberations of the Russia-Ukraine war. Riskier assets rallied in 2023, with anticipation of an end to the tight monetary policy despite concerns of a possible impending recession. After suffering deep and broad losses through 2022, bonds now benefit from a base of higher yields that can help generate higher income. However, ongoing rate hikes continued to be a headwind during recent months.
For the 12-month period, stocks generally outperformed bonds—both domestic U.S. and global. For the period, U.S. stocks, based on the S&P 500 Index,1 gained 19.59%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 12.72%, while the MSCI EM Index (Net) (USD)3 had more muted performance, with a gain of 1.75%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned -0.94%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 fell 1.83%, the Bloomberg Municipal Bond Index6 gained 3.19%, and the ICE BofA U.S. High Yield Index7 returned 8.97%.
Despite high inflation and central bank rate hikes, markets rallied.
Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong: July nonfarm payrolls grew by more than 500,000 and U.S. unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices—major contributors to recent overall inflation—fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with mortgage rates at a 13-year high. The Federal Reserve (Fed) raised the federal funds rate 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to further rate hikes.
August was a broadly challenging month. High inflation persisted, cresting 9% in the eurozone on an annual basis and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June peak. One positive was the resilient U.S. jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act. Its primary stated goals include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“ Markets rebounded from a rough first half of the calendar year in July 2022, led by U.S. stocks. While U.S. economic activity showed signs of waning, the country’s labor market remained strong. ”
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 the 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 Wisconsin Tax-Free Fund
Letter to shareholders (unaudited)
In September, all asset classes suffered further major losses. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar weighed on results for investors holding non-U.S.-dollar assets. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The Bank of England (BoE) then stepped in and bought long-dated government bonds.
Equities had a reprieve in October. 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 increasing 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.
Financial markets cooled in December, with U.S. equities declining overall in response to a weakening U.S. dollar. Fixed income securities ended one of their worst years ever, with generally flat 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 wound 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 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.
Markets declined in February as investors responded unfavorably to resilient economic data. The takeaway: Central banks would 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 was not falling quickly enough for the Fed, which raised interest rates by 0.25% in early February. Meanwhile, the BoE and the European Central Bank (ECB) both raised rates by 0.50%.
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 banking industry turmoil created an additional challenge for central banks in balancing inflationary concerns against potential economic weakening. Meanwhile, recent data pointed to economic strength in the U.S., Europe, and China. 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 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. ”
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.
Allspring Wisconsin Tax-Free Fund | 3
Letter to shareholders (unaudited)
Economic data released in April pointed to global resilience, as Purchasing Managers Indexes1 in the U.S., U.K., and eurozone beat expectations and China reported first-quarter annualized economic growth of 4.5%. Despite banking industry stress, developed market stocks had monthly gains. The U.S. labor market remained strong, with a 3.5% jobless rate and monthly payroll gains above 200,000. However, uncertainty and inflationary concerns weighed on investors in the U.S. and abroad.
May was marked by a divergence between expanding activity in services and an overall contraction in manufacturing activity in the U.S., U.K., and eurozone. Core inflation remained elevated in the U.S. and Europe, despite the ongoing efforts of the Fed and ECB, which included rate hikes of 0.25% by both in May. Stubborn inflation and the resilient U.S. labor market led to expectations of further interest rate hikes, overall monthly declines across bond indexes, and mixed results for stocks in May. Investor worries over a U.S. debt ceiling impasse were modest, and market confidence was buoyed by a deal in late May to avert a potential U.S. debt default.
June featured the Fed’s first pause on interest rate hikes since March 2022, when it began its aggressive campaign to rein in inflation. However, core CPI, excluding food and energy prices, while continuing to decline, remained stubbornly high in June, at 4.8%, well above the Fed’s 2.0% target rate. With the U.S. unemployment rate still at 3.6%, near a historical low, and U.S. payrolls growing in June for the 30th consecutive month, expectations of more Fed rate hikes were reinforced. However, U.S. and global stocks had strong returns in June.
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
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.
1
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.
4 | Allspring Wisconsin Tax-Free Fund
Letter to shareholders (unaudited)
Notice to Shareholders |
Beginning in July 2024, the Fund will be required by the Securities and Exchange Commission to send shareholders a paper copy of a new tailored shareholder report in place of the full shareholder report that you are now receiving. The tailored shareholder report will contain concise information about the Fund, including certain expense and performance information and fund statistics. If you wish to receive this new tailored shareholder report electronically, please follow the instructions on the back cover of this report. |
Other information that is currently included in the shareholder report, such as the Fund’s financial statements, will be available online and upon request, free of charge, in paper or electronic format. |
Allspring Wisconsin Tax-Free Fund | 5
Performance highlights (unaudited)
Performance highlights
Investment objective | The Fund seeks current income exempt from federal income tax and Wisconsin individual income tax. |
Manager | Allspring Funds Management, LLC |
Subadviser | Allspring Global Investments, LLC |
Portfolio managers | Bruce R. Johns, Kerry Laurin, Thomas Stoeckmann |
Average annual total returns (%) as of June 30, 2023 | |||||||||
Including sales charge | Excluding sales charge | Expense ratios1 (%) | |||||||
Inception date | 1 year | 5 year | 10 year | 1 year | 5 year | 10 year | Gross | Net2 | |
Class A (WWTFX) | 3-31-2008 | -2.68 | 0.37 | 1.53 | 1.95 | 1.30 | 2.00 | 0.92 | 0.70 |
Class C (WWTCX) | 12-26-2002 | 0.18 | 0.54 | 1.39 | 1.18 | 0.54 | 1.39 | 1.67 | 1.45 |
Institutional Class (WWTIX)3 | 10-31-2016 | – | – | – | 2.13 | 1.48 | 2.12 | 0.59 | 0.52 |
Bloomberg Municipal Bond Index4 | – | – | – | – | 3.19 | 1.84 | 2.68 | – | – |
Bloomberg Wisconsin Municipal Bond Index5 | – | – | – | – | 2.36 | 1.51 | 2.36 | – | – |
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 4.50%. 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. 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 October 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.70% for Class A, 1.45% for Class C 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 Institutional Class shares prior to their inception reflects the performance of the Class A shares and includes the higher expenses applicable to the Class A shares. If these expenses had not been included, returns for the Institutional Class shares would be higher. |
4 | 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. |
5 | The Bloomberg Wisconsin Municipal Bond Index is the Wisconsin component of the Bloomberg Municipal Bond Index. 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. 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 Wisconsin and Puerto Rico municipal securities risk, high-yield securities risk, and non-diversification risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.
6 | Allspring Wisconsin Tax-Free Fund
Performance highlights (unaudited)
Growth of $10,000 investment as of June 30, 20231 |
1 | The chart compares the performance of Class A shares for the most recent ten years with the Bloomberg Municipal Bond Index and Bloomberg Wisconsin Municipal Bond Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%. |
Allspring Wisconsin Tax-Free Fund | 7
Performance highlights (unaudited)
MANAGER’S DISCUSSION
Fund highlights
•The Fund underperformed both the Bloomberg Wisconsin Municipal Bond Index and the Bloomberg Municipal Bond Index for the 12 months that ended June 30, 2023.
•Yield-curve positioning detracted from performance as we were underweight longer-term bonds, which performed well. Sector allocation primarily detracted from performance within various revenue bond categories, although, as noted above, security selection helped offset some of this. Within the revenue bond categories, the Fund was overweight the weak housing sector and underweight the hospital sector, which performed well. Credit positioning was mixed as we were overweight lower-quality investment-grade bonds. The BBB-rated category trailed the market, detracting from performance.
•We increased duration very modestly over the course of the year, but we remained shorter duration versus the Bloomberg Municipal Bond Index, which added to performance as rates rose during the period. We were underweight general obligation (GO) bonds, which did poorly, and overweight revenue bonds, which performed well. Our overweight to the education sector helped performance, as this sector performed strongly during the year. Our security selection within the state GO and revenue sectors was strong. With respect to credit quality, our overweight to the A-rated category was positive and we had strong security selection within that category.
Global economies increase lending rates in hopes of taming runaway inflation.
Entering 2022, the excitement of a post-pandemic world gave way to new whispers and fears of higher prices and broad-based inflation caused by supply chain bottlenecks, increased housing costs, wage increases, and employment market distortions. Those fears quickly became reality and prices began to rise at a historic rate. The Federal Open Market Committee acted quickly and with purpose: ending open market purchases, reducing its balance sheet, and raising the benchmark overnight lending rate at each monthly meeting through 2022 and early 2023. Fixed income and equity markets fell sharply but began to recover as annual inflation numbers peaked in June and began to recede.
The U.S. unemployment rate, which reached a multigenerational high of more than 14% in the spring of 2020, fell throughout the past year and has settled below 4%. Employers continue to add jobs, especially in service-oriented industries, and the resulting wage increases have further contributed to inflationary pressures. U.S. gross domestic product (GDP) turned negative in the first and second quarters of 2022 but expanded at rates above 2% in each subsequent quarter. The federal funds rate, which began 2022 at 0.25% to 0.50%, was raised 10 consecutive times before a pause in June 2023. It now sits at 5.25% to 5.50% as the U.S. Federal Reserve (Fed) attempts to curb inflation. In this environment, some form of recession seems imminent.
In the wake of continued rate increases, U.S. fixed income yields rose dramatically as investors reacted to Fed actions, with the yield on the 10-year Treasury ending the period near 4%. Rising Treasury yields affected all fixed income sectors in 2022, with all seeing their worst returns in more than 40 years. The U.S. Treasury yield curve remained substantially inverted throughout the period, which has driven many investors into shorter-term interest-bearing vehicles, including money markets.
Municipals sold off drastically to start the period but began to rebound in the fourth quarter of 2022. The Bloomberg Municipal Bond Index fell nearly 8% and the broader municipal market had more than $124 billion in outflows before stabilizing early in 2023. For the first time in history, the municipal yield curve also inverted but not to the degree seen in Treasuries.
Credit quality as of June 30, 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. |
8 | Allspring Wisconsin Tax-Free Fund
Performance highlights (unaudited)
While this environment has certainly been painful for municipal investors, the drawdown has created significantly improved opportunities and entry points. Municipal to Treasury ratios ended the period elevated but at far better levels than in 2021. Municipal credit spreads have widened substantially while the underlying fundamental credit of municipalities remains strong following trillions of dollars in government stimulus. We believe investors will continue to return to the municipal market in the latter half of 2023, attracted by increased yields, positive fundamental strength, and good relative value.
Duration had a modest positive impact on performance, while yield-curve positioning detracted. Credit quality and sector allocation detracted, while selection was positive.
Duration positioning modestly contributed to performance and yield-curve positioning versus the Bloomberg Municipal Bond Index detracted from performance. Our underweight to underperforming short-duration names and our overweight to intermediate-duration names added to relative performance. The municipal curve inverted during the second half of the year in the 1-year to 14-year segment, with shorter yields climbing higher-than-longer rates in this segment. Yield-curve positioning detracted from performance as we were underweight longer-term bonds, which performed strongly. Positively, we were underweight bonds in the 4-year to 8-year maturity category, which trailed the market.
Individual security selection contributed to performance while sector allocation detracted from performance in some of the revenue sectors. We had strong security selection in the GO and revenue bond categories. In the revenue bond category, we were overweight the underperforming housing sector, but our security selection in housing trailed the market. We were also underweight the hospital sector, which performed well. Positively, the Fund has maintained a strong overweight to education, which had strong performance during the year.
The Fund was overweight lower-quality investment-grade bonds (A-rated and BBB-rated), which had mixed results. The A-rated category performed well and our security selection was strong within this category. Our overweight to BBB-rated names detracted from performance as this category performed poorly. Our modest allocation to non-investment-grade names helped performance.
With the limited supply of double-tax-exempt bonds issued over the year, we found some opportunities in the State of Illinois, which added to performance in the state GO sector. One of the better-performing bonds was Rogers Memorial Hospital, which has recovered as we move past the COVID pandemic. Another strong performer was the Beloit Health System. Both of these bonds benefited from their A-rating category in the strong-performing hospital sector. Underperforming bonds included senior care bonds, such as the Three Pillars Senior Living Communities, which detracted from performance given their lower credit-quality and lower-coupon long-dated structure.
Wisconsin is well positioned headed into 2024.
Despite concerns about the possibility of the nation slipping into a recession in the second half of 2023, we believe the state of Wisconsin is well positioned to maintain a solid fiscal footing in 2023 and 2024 given
strong economic fundamentals and a budget surplus. With a population of nearly 5.9 million, Wisconsin is the 20th-largest state in the U.S. Traditionally, the state’s economic and income metrics have lagged U.S. averages, in part due to a heavier reliance on the manufacturing sector. However, state GDP has favorably rebounded from historic drops during the global pandemic.
The state is home to several large corporations, including Harley-Davidson, Kohler, Kohl’s, S.C. Johnson, and Aurora Health Care. The state’s fiscal strength is supported by solid income and sales tax revenue growth, as well as recent federal stimulus. At the end of the 2019–2021 biennium, the state’s combined reserve balance grew to $1.73 billion, or a healthy 9% of fiscal 2023 general purpose fund expenditures.
The state heads into the 2023–2025 biennium with a significant expected budget surplus. Current budget proposals include spending down a large portion of the state’s projected $7.0 billion net cash balance at the end of the 2021–2023 biennium to fund key initiatives, including education, local government aid, tax relief, and various grant programs. While the state’s debt profile is moderately high, it remains manageable, and the Wisconsin Retirement System is well funded. Moody’s, S&P Global, and Fitch maintain AA+ or equivalent ratings and stable outlooks on the state’s GO debt outstanding.
Effective maturity distribution as of June 30, 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. |
Issue selection will likely be a key driver of performance.
Interest rate volatility has been the core focus of the investment markets given structural inflation.
The U.S. economy continued to rebound over the past 12 months, even in the face of unprecedented rate hikes. We believe issue selection and yield-curve positioning will be key drivers in state-specific funds. While we eventually expect the economy to slow, we believe the Fed may end its rate-hiking cycle toward the end of 2023 as it works to combat higher-than-average inflation.
We have been and will work to continue to extend duration in the Fund. We believe that most municipalities will continue to perform strongly over the next 12 months given their strong balance sheets. We continue to look for value in lower-credit-quality investment-grade names while
Allspring Wisconsin Tax-Free Fund | 9
Performance highlights (unaudited)
opportunistically buying higher-grade names at attractive levels. The threat of a slowing economy could affect our sector allocation decisions as we look to move into areas that we expect to be less affected by recessionary pressures. We will monitor the economy and interest rates,
with a specific focus on the technical market and fundamental credit quality, to adjust duration, yield-curve positioning, credit quality, and sector allocations over the next year.
10 | Allspring Wisconsin Tax-Free Fund
Fund expenses (unaudited)
Fund expenses
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 January 1, 2023 to June 30, 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 1-1-2023 | Ending account value 6-30-2023 | Expenses paid during the period1 | Annualized net expense ratio | |
Class A | ||||
Actual | $1,000.00 | $1,019.67 | $3.51 | 0.70 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.32 | $3.51 | 0.70 % |
Class C | ||||
Actual | $1,000.00 | $1,015.87 | $7.25 | 1.45 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,017.60 | $7.25 | 1.45 % |
Institutional Class | ||||
Actual | $1,000.00 | $1,020.59 | $2.61 | 0.52 % |
Hypothetical (5% return before expenses) | $1,000.00 | $1,022.22 | $2.61 | 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 181 divided by 365 (to reflect the one-half-year period). |
Allspring Wisconsin Tax-Free Fund | 11
Portfolio of investments—June 30, 2023
Portfolio of investments
Interest rate | Maturity date | Principal | Value | |||
Municipal obligations: 98.50% | ||||||
Alabama: 1.23% | ||||||
Utilities revenue: 1.23% | ||||||
Black Belt Energy Gas District Gas Supply Project No. 7 Series C-1øø | 4.00 % | 10-1-2052 | $ | 1,000,000 | $990,987 | |
Southeast Energy Authority A Cooperative District Project No. 5 Series Aøø | 5.25 | 1-1-2054 | 750,000 | 784,197 | ||
1,775,184 | ||||||
California: 0.36% | ||||||
Utilities revenue: 0.36% | ||||||
California Community Choice Financing Authority Clean Energy Project Green Bond Series C | 5.00 | 10-1-2031 | 500,000 | 517,336 | ||
Georgia: 0.33% | ||||||
Utilities revenue: 0.33% | ||||||
Main Street Natural Gas, Inc. Series C144Aøø | 4.00 | 8-1-2052 | 500,000 | 483,272 | ||
Guam: 6.57% | ||||||
Airport revenue: 3.07% | ||||||
Antonio B Won Pat International Airport Authority Series A AMT | 5.00 | 10-1-2023 | 825,000 | 827,435 | ||
Antonio B Won Pat International Airport Authority Series A AMT%% | 5.25 | 10-1-2031 | 250,000 | 256,588 | ||
Antonio B Won Pat International Airport Authority Series C AMT (AGM Insured) | 6.00 | 10-1-2034 | 365,000 | 367,004 | ||
Antonio B Won Pat International Airport Authority Series C AMT (AGM Insured) | 6.13 | 10-1-2043 | 1,500,000 | 1,508,674 | ||
Port Authority of Guam Series A | 5.00 | 7-1-2048 | 1,000,000 | 1,019,111 | ||
Port Authority of Guam Series B AMT | 5.00 | 7-1-2034 | 445,000 | 470,438 | ||
4,449,250 | ||||||
Miscellaneous revenue: 0.31% | ||||||
Territory of Guam Series F | 4.00 | 1-1-2042 | 500,000 | 441,930 | ||
Tax revenue: 0.72% | ||||||
Territory of Guam Hotel Occupancy Tax Series A | 5.00 | 11-1-2035 | 1,000,000 | 1,041,836 | ||
Utilities revenue: 0.36% | ||||||
Guam Power Authority Series A | 5.00 | 10-1-2026 | 500,000 | 516,727 | ||
Water & sewer revenue: 2.11% | ||||||
Guam Government Waterworks Authority | 5.00 | 7-1-2034 | 500,000 | 518,014 | ||
Guam Government Waterworks Authority | 5.00 | 1-1-2046 | 2,215,000 | 2,236,448 | ||
Guam Government Waterworks Authority Series A | 5.00 | 1-1-2050 | 300,000 | 304,521 | ||
3,058,983 | ||||||
9,508,726 | ||||||
Illinois: 3.22% | ||||||
GO revenue: 3.05% | ||||||
Chicago Park District Series E | 5.00 | 11-15-2027 | 1,000,000 | 1,040,956 | ||
City of Chicago (NPFGC Insured)¤ | 0.00 | 1-1-2027 | 1,000,000 | 894,647 | ||
State of Illinois | 5.25 | 7-1-2028 | 500,000 | 500,131 | ||
The accompanying notes are an integral part of these consolidated financial statements.
12 | Allspring Wisconsin Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
GO revenue (continued) | ||||||
State of Illinois | 5.50 % | 7-1-2026 | $ | 250,000 | $250,074 | |
State of Illinois Series A | 5.00 | 3-1-2024 | 500,000 | 504,336 | ||
State of Illinois Series A | 5.25 | 3-1-2037 | 500,000 | 551,147 | ||
State of Illinois Series C | 5.00 | 11-1-2029 | 630,000 | 672,002 | ||
4,413,293 | ||||||
Miscellaneous revenue: 0.17% | ||||||
City of Chicago Special Assessment Revenue Refunding Bonds Lakeshore East Project144A | 2.69 | 12-1-2026 | 266,000 | 253,074 | ||
4,666,367 | ||||||
Maryland: 0.68% | ||||||
Housing revenue: 0.68% | ||||||
Maryland Community Development Administration South Street Senior LLC Series D | 3.15 | 7-1-2024 | 1,000,000 | 980,588 | ||
New Jersey: 1.32% | ||||||
Education revenue: 0.31% | ||||||
Camden County Improvement Authority KIPP Cooper Norcross Obligated Group | 6.00 | 6-15-2047 | 425,000 | 452,111 | ||
Housing revenue: 1.01% | ||||||
New Jersey TTFA Series A¤ | 0.00 | 12-15-2031 | 2,000,000 | 1,455,397 | ||
1,907,508 | ||||||
New York: 0.98% | ||||||
Education revenue: 0.98% | ||||||
Hempstead Town Local Development Corp. Academy Charter School Series A | 4.45 | 2-1-2041 | 500,000 | 393,531 | ||
Hempstead Town Local Development Corp. Academy Charter School Series A | 6.24 | 2-1-2047 | 1,000,000 | 1,019,115 | ||
1,412,646 | ||||||
Pennsylvania: 3.19% | ||||||
Education revenue: 0.40% | ||||||
Lehigh County General Purpose Authority Lehigh Valley Academy Regional Charter School | 4.00 | 6-1-2032 | 600,000 | 587,741 | ||
Health revenue: 1.43% | ||||||
Montgomery County Higher Education & Health Authority Thomas Jefferson University Obligated Group Series B | 5.00 | 5-1-2052 | 2,000,000 | 2,063,761 | ||
Housing revenue: 1.36% | ||||||
Pennsylvania Housing Finance Agency LIH Wilkes-Barre LP (Department of Housing and Urban Development Insured)øø | 1.25 | 2-1-2025 | 2,000,000 | 1,966,494 | ||
4,617,996 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Wisconsin Tax-Free Fund | 13
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Puerto Rico: 1.35% | ||||||
Health revenue: 1.35% | ||||||
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Financing Authority Hospital Auxilio Mutuo Obligated Group | 5.00 % | 7-1-2026 | $ | 205,000 | $212,117 | |
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Financing Authority Hospital Auxilio Mutuo Obligated Group | 5.00 | 7-1-2031 | 435,000 | 479,432 | ||
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Financing Authority Hospital Auxilio Mutuo Obligated Group | 5.00 | 7-1-2032 | 925,000 | 1,021,692 | ||
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Financing Authority Hospital Auxilio Mutuo Obligated Group | 5.00 | 7-1-2034 | 220,000 | 240,525 | ||
1,953,766 | ||||||
Texas: 2.08% | ||||||
Education revenue: 0.70% | ||||||
Hale Center Education Facilities Corp. Wayland Baptist University | 5.00 | 3-1-2027 | 990,000 | 1,016,695 | ||
GO revenue: 1.38% | ||||||
Denton Independent School District | 4.00 | 8-15-2048 | 2,000,000 | 1,989,672 | ||
3,006,367 | ||||||
Wisconsin: 77.19% | ||||||
Education revenue: 8.71% | ||||||
Milwaukee RDA Milwaukee Science Education Consortium, Inc. | 6.25 | 8-1-2043 | 2,100,000 | 2,104,328 | ||
Wisconsin HEFA Hmong American Peace Academy Ltd. | 4.00 | 3-15-2030 | 75,000 | 73,610 | ||
Wisconsin HEFA Hmong American Peace Academy Ltd. | 4.00 | 3-15-2040 | 1,555,000 | 1,366,231 | ||
Wisconsin HEFA Lawrence University of Wisconsin | 4.00 | 2-1-2045 | 1,685,000 | 1,508,877 | ||
Wisconsin HEFA Medical College of Wisconsin, Inc. | 5.00 | 12-1-2041 | 2,000,000 | 2,164,634 | ||
Wisconsin HEFA Milwaukee School of Engineering Series B (AGM Insured) | 2.00 | 4-1-2038 | 1,200,000 | 877,396 | ||
Wisconsin HEFA Milwaukee School of Engineering Series B (AGM Insured) | 2.13 | 4-1-2039 | 1,000,000 | 729,183 | ||
Wisconsin HEFA Milwaukee School of Engineering Series B (AGM Insured) | 2.13 | 4-1-2040 | 1,000,000 | 712,875 | ||
Wisconsin HEFA Milwaukee School of Engineering Series B (AGM Insured) | 2.25 | 4-1-2041 | 750,000 | 538,632 | ||
Wisconsin HEFA Milwaukee School of Engineering Series B (AGM Insured) | 2.25 | 4-1-2042 | 1,000,000 | 712,237 | ||
Wisconsin HEFA Milwaukee Science Education Consortium, Inc. Series A | 4.50 | 3-15-2033 | 735,000 | 748,082 | ||
Wisconsin HEFA Milwaukee Science Education Consortium, Inc. Series A | 5.00 | 3-15-2053 | 1,100,000 | 1,063,601 | ||
12,599,686 | ||||||
GO revenue: 3.54% | ||||||
City of Milwaukee Series B6 | 3.00 | 4-1-2024 | 570,000 | 564,880 | ||
City of Milwaukee Series B6 | 5.00 | 4-1-2025 | 550,000 | 560,443 | ||
State of Wisconsin Series A (SIFMA Municipal Swap+0.42%)±## | 4.43 | 5-1-2025 | 4,000,000 | 3,989,957 | ||
5,115,280 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
14 | Allspring Wisconsin Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue: 20.73% | ||||||
PFA Appalachian Regional Healthcare System Obligated Group Series A | 5.00 % | 7-1-2037 | $ | 275,000 | $287,136 | |
PFA Appalachian Regional Healthcare System Obligated Group Series A | 5.00 | 7-1-2038 | 375,000 | 388,587 | ||
Wisconsin HEFA Bellin Memorial Hospital Obligated Group | 3.13 | 12-1-2029 | 150,000 | 148,115 | ||
Wisconsin HEFA Bellin Memorial Hospital Obligated Group | 3.38 | 12-1-2031 | 180,000 | 180,022 | ||
Wisconsin HEFA Bellin Memorial Hospital Obligated Group | 4.00 | 12-1-2035 | 1,000,000 | 1,002,242 | ||
Wisconsin HEFA Bellin Memorial Hospital Obligated Group | 5.00 | 12-1-2026 | 1,740,000 | 1,766,791 | ||
Wisconsin HEFA Bellin Memorial Hospital Obligated Group Series A | 5.00 | 12-1-2027 | 175,000 | 186,300 | ||
Wisconsin HEFA Bellin Memorial Hospital Obligated Group Series A | 5.00 | 12-1-2029 | 150,000 | 164,379 | ||
Wisconsin HEFA Bellin Memorial Hospital Obligated Group Series A | 5.50 | 12-1-2052 | 2,500,000 | 2,708,593 | ||
Wisconsin HEFA Beloit Health System Obligated Group | 4.00 | 7-1-2036 | 4,000,000 | 3,989,064 | ||
Wisconsin HEFA Beloit Health System Obligated Group | 5.00 | 7-1-2028 | 50,000 | 53,475 | ||
Wisconsin HEFA Beloit Health System Obligated Group | 5.00 | 7-1-2029 | 1,270,000 | 1,372,695 | ||
Wisconsin HEFA Marshfield Clinic Health System Obligated Group Series A | 3.00 | 2-15-2031 | 230,000 | 222,398 | ||
Wisconsin HEFA Marshfield Clinic Health System Obligated Group Series C | 3.25 | 2-15-2032 | 185,000 | 181,562 | ||
Wisconsin HEFA Marshfield Clinic Health System Obligated Group Series C | 4.00 | 2-15-2042 | 500,000 | 447,850 | ||
Wisconsin HEFA Marshfield Clinic Health System Obligated Group Series C | 5.00 | 2-15-2027 | 400,000 | 416,313 | ||
Wisconsin HEFA Marshfield Clinic Health System Obligated Group Series C | 5.00 | 2-15-2028 | 650,000 | 674,258 | ||
Wisconsin HEFA Marshfield Clinic Health System Obligated Group Series C | 5.00 | 2-15-2029 | 500,000 | 518,958 | ||
Wisconsin HEFA Marshfield Clinic Health System Obligated Group Series C | 5.00 | 2-15-2047 | 3,385,000 | 3,327,712 | ||
Wisconsin HEFA Monroe Clinic, Inc. | 3.00 | 2-15-2035 | 520,000 | 517,680 | ||
Wisconsin HEFA Monroe Clinic, Inc. | 4.00 | 2-15-2031 | 900,000 | 914,758 | ||
Wisconsin HEFA Monroe Clinic, Inc. | 4.00 | 2-15-2033 | 550,000 | 559,019 | ||
Wisconsin HEFA Monroe Clinic, Inc. | 5.00 | 2-15-2028 | 900,000 | 932,987 | ||
Wisconsin HEFA Monroe Clinic, Inc. | 5.00 | 2-15-2029 | 575,000 | 596,075 | ||
Wisconsin HEFA Monroe Clinic, Inc. | 5.00 | 2-15-2030 | 340,000 | 352,462 | ||
Wisconsin HEFA Rogers Memorial Hospital, Inc. Obligated Group Series A | 5.00 | 7-1-2044 | 200,000 | 204,975 | ||
Wisconsin HEFA Rogers Memorial Hospital, Inc. Obligated Group Series A | 5.00 | 7-1-2049 | 250,000 | 255,304 | ||
Wisconsin HEFA Rogers Memorial Hospital, Inc. Obligated Group Series B | 5.00 | 7-1-2044 | 3,485,000 | 3,514,843 | ||
Wisconsin HEFA St. John’s Communities, Inc. Obligated Group | 4.00 | 9-15-2045 | 650,000 | 506,980 | ||
Wisconsin HEFA St. John’s Communities, Inc. Obligated Group Series B | 4.00 | 9-15-2045 | 475,000 | 370,486 | ||
Wisconsin HEFA Wisconsin Masonic Home Obligated Group Series A | 4.00 | 8-15-2023 | 125,000 | 124,872 | ||
Wisconsin HEFA Wisconsin Masonic Home Obligated Group Series A | 4.00 | 8-15-2024 | 125,000 | 123,792 | ||
Wisconsin HEFA Wisconsin Masonic Home Obligated Group Series A | 4.00 | 8-15-2030 | 100,000 | 94,359 | ||
Wisconsin HEFA Wisconsin Masonic Home Obligated Group Series A | 4.00 | 8-15-2031 | 75,000 | 70,332 | ||
Wisconsin HEFA Wisconsin Masonic Home Obligated Group Series A | 4.00 | 8-15-2041 | 2,145,000 | 1,778,873 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Wisconsin Tax-Free Fund | 15
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Health revenue (continued) | ||||||
Wisconsin HEFA Wisconsin Masonic Home Obligated Group Series A | 4.00 % | 8-15-2046 | $ | 850,000 | $668,372 | |
Wisconsin HEFA Wisconsin Masonic Home Obligated Group Series A | 4.00 | 8-15-2051 | �� | 500,000 | 379,858 | |
30,002,477 | ||||||
Housing revenue: 34.10% | ||||||
Ashwaubenon CDA County of Brown | 3.00 | 6-1-2044 | 1,680,000 | 1,319,773 | ||
Ashwaubenon CDA County of Brown | 4.00 | 6-1-2031 | 1,310,000 | 1,380,975 | ||
Ashwaubenon CDA County of Brown | 4.00 | 6-1-2035 | 900,000 | 928,806 | ||
Ashwaubenon CDA County of Brown | 4.00 | 6-1-2036 | 265,000 | 271,702 | ||
Ashwaubenon CDA County of Brown CAB¤ | 0.00 | 6-1-2049 | 8,000,000 | 2,355,141 | ||
Green Bay Housing Authority University Village Housing, Inc. | 2.00 | 4-1-2028 | 125,000 | 114,987 | ||
Green Bay Housing Authority University Village Housing, Inc. | 2.00 | 4-1-2029 | 250,000 | 225,003 | ||
Green Bay Housing Authority University Village Housing, Inc. | 2.00 | 4-1-2030 | 875,000 | 772,437 | ||
Green Bay Housing Authority University Village Housing, Inc. | 5.00 | 4-1-2039 | 1,500,000 | 1,586,867 | ||
Kaukauna RDA | 3.75 | 6-1-2032 | 850,000 | 854,184 | ||
Kaukauna RDA | 4.00 | 6-1-2025 | 425,000 | 430,946 | ||
Kaukauna RDA | 4.00 | 6-1-2028 | 425,000 | 431,757 | ||
Kaukauna RDA | 4.00 | 6-1-2035 | 900,000 | 911,093 | ||
Milwaukee RDA Milwaukee Board of School Directors | 5.00 | 11-15-2028 | 325,000 | 344,527 | ||
Milwaukee RDA Milwaukee Board of School Directors | 5.00 | 11-15-2030 | 185,000 | 195,448 | ||
Milwaukee RDA Milwaukee Board of School Directors | 5.00 | 11-15-2033 | 750,000 | 791,134 | ||
Milwaukee RDA Milwaukee Board of School Directors | 5.00 | 11-15-2034 | 675,000 | 712,021 | ||
Milwaukee RDA Milwaukee Board of School Directors | 5.00 | 11-15-2035 | 1,000,000 | 1,048,668 | ||
Milwaukee RDA Milwaukee Board of School Directors | 5.00 | 11-15-2036 | 500,000 | 524,496 | ||
Milwaukee RDA Milwaukee Public Schools Series A | 5.00 | 11-15-2024 | 280,000 | 286,346 | ||
Milwaukee RDA Milwaukee Public Schools Series A | 5.00 | 11-15-2026 | 220,000 | 233,435 | ||
Milwaukee RDA Milwaukee Public Schools Series A | 5.00 | 11-15-2027 | 1,020,000 | 1,076,275 | ||
Milwaukee RDA Milwaukee Public Schools Series A | 5.00 | 11-15-2028 | 1,000,000 | 1,060,082 | ||
Milwaukee RDA Milwaukee Public Schools Series A | 5.00 | 11-15-2031 | 750,000 | 792,114 | ||
Weston CDA Village of Weston Tax Incremental District No. 1 Series A | 1.90 | 10-1-2023 | 800,000 | 796,061 | ||
Weston CDA Village of Weston Tax Incremental District No. 1 Series A | 2.00 | 10-1-2024 | 625,000 | 608,655 | ||
Weston CDA Village of Weston Tax Incremental District No. 1 Series A | 2.15 | 10-1-2025 | 615,000 | 596,324 | ||
Weston CDA Village of Weston Tax Incremental District No. 1 Series A | 2.25 | 10-1-2026 | 940,000 | 904,414 | ||
Weston CDA Village of Weston Tax Incremental District No. 1 Series A | 2.40 | 10-1-2027 | 570,000 | 546,383 | ||
Wisconsin Center District Appropriation Milwaukee Arena Project | 4.00 | 12-15-2032 | 1,100,000 | 1,132,505 | ||
Wisconsin Center District Appropriation Milwaukee Arena Project | 4.00 | 12-15-2033 | 920,000 | 946,853 | ||
Wisconsin Center District Appropriation Milwaukee Arena Project | 4.00 | 12-15-2034 | 2,000,000 | 2,055,060 | ||
Wisconsin Center District Appropriation Milwaukee Arena Project | 5.00 | 12-15-2023 | 550,000 | 554,136 | ||
Wisconsin Center District Appropriation Milwaukee Arena Project | 5.00 | 12-15-2026 | 85,000 | 88,932 | ||
Wisconsin Center District Appropriation Milwaukee Arena Project | 5.00 | 12-15-2032 | 85,000 | 89,273 | ||
Wisconsin Dells CDA Tax Incremental District No. 2 | 4.00 | 3-1-2026 | 440,000 | 438,036 | ||
Wisconsin Dells CDA Tax Incremental District No. 2 | 5.00 | 3-1-2024 | 100,000 | 100,532 | ||
Wisconsin Dells CDA Tax Incremental District No. 2 | 5.00 | 3-1-2025 | 210,000 | 212,741 | ||
Wisconsin Dells CDA Tax Incremental District No. 3 Series B | 3.35 | 3-1-2026 | 530,000 | 516,780 | ||
Wisconsin Housing & EDA Series A AMT | 4.05 | 12-1-2049 | 800,000 | 734,648 | ||
Wisconsin Housing & EDA WHPC Madison Pool Project-2017 Obligated Group Series A | 4.55 | 7-1-2037 | 165,000 | 168,716 | ||
The accompanying notes are an integral part of these consolidated financial statements.
16 | Allspring Wisconsin Tax-Free Fund
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Housing revenue (continued) | ||||||
Wisconsin Housing & EDA WHPC Madison Pool Project-2017 Obligated Group Series A | 4.70 % | 7-1-2047 | $ | 2,300,000 | $2,312,945 | |
Wisconsin Housing & EDA WHPC Madison Pool Project-2017 Obligated Group Series A | 4.85 | 7-1-2052 | 3,000,000 | 3,023,096 | ||
Wisconsin Housing & EDA Home Ownership Revenue Series Eø | 4.00 | 9-1-2035 | 1,850,000 | 1,850,000 | ||
Wisconsin Housing & EDA Housing Revenue Series A | 3.38 | 5-1-2057 | 635,000 | 480,044 | ||
Wisconsin Housing & EDA Housing Revenue Series A | 3.40 | 11-1-2032 | 2,450,000 | 2,418,147 | ||
Wisconsin Housing & EDA Housing Revenue Series A | 3.95 | 11-1-2038 | 2,000,000 | 1,971,352 | ||
Wisconsin Housing & EDA Housing Revenue Series A | 5.75 | 11-1-2043 | 1,240,000 | 1,242,134 | ||
Wisconsin Housing & EDA Housing Revenue Series A AMT | 4.63 | 11-1-2037 | 10,000 | 10,004 | ||
Wisconsin Housing & EDA Housing Revenue Series B (Department of Housing and Urban Development Insured)øø | 0.40 | 5-1-2045 | 1,375,000 | 1,355,947 | ||
Wisconsin Housing & EDA Housing Revenue Series C | 3.88 | 11-1-2035 | 1,100,000 | 1,089,630 | ||
Wisconsin Housing & EDA Housing Revenue Series C (Department of Housing and Urban Development Insured)øø | 0.61 | 11-1-2042 | 2,900,000 | 2,802,052 | ||
Wisconsin Housing & EDA Housing Revenue Series C (Department of Housing and Urban Development Insured) | 0.80 | 5-1-2025 | 275,000 | 261,386 | ||
Wisconsin Housing & EDA Housing Revenue Series C (Department of Housing and Urban Development Insured) | 0.85 | 11-1-2025 | 320,000 | 300,735 | ||
Wisconsin Housing & EDA Housing Revenue Series C (Department of Housing and Urban Development Insured) | 0.95 | 5-1-2026 | 205,000 | 190,521 | ||
Wisconsin Housing & EDA Housing Revenue Series C (Department of Housing and Urban Development Insured) | 1.00 | 11-1-2026 | 330,000 | 303,962 | ||
Wisconsin Housing & EDA Housing Revenue Series C (Department of Housing and Urban Development Insured) | 1.20 | 5-1-2027 | 310,000 | 283,404 | ||
Wisconsin Housing & EDA Housing Revenue Series C (Department of Housing and Urban Development Insured) | 1.35 | 11-1-2027 | 345,000 | 314,504 | ||
49,348,129 | ||||||
Miscellaneous revenue: 6.53% | ||||||
Appleton RDA Fox Cities Performing Arts Center, Inc. Series B (Associated Bank N.A. LOC)ø | 4.55 | 6-1-2036 | 1,500,000 | 1,500,000 | ||
Milwaukee RDA (NPFGC Insured) | 4.00 | 8-1-2023 | 1,500,000 | 1,500,529 | ||
Wisconsin Center District (AGM Insured)¤ | 0.00 | 12-15-2030 | 295,000 | 223,812 | ||
Wisconsin Center District (AGM Insured) | 5.25 | 12-15-2023 | 600,000 | 603,010 | ||
Wisconsin Center District (AGM Insured) | 5.25 | 12-15-2027 | 1,005,000 | 1,070,619 | ||
Wisconsin Center District Series A (NPFGC Insured)¤ | 0.00 | 12-15-2027 | 100,000 | 84,909 | ||
Wisconsin Center District Series A CAB (BAM Insured)¤ | 0.00 | 12-15-2033 | 2,985,000 | 1,974,310 | ||
Wisconsin Center District Series C CAB (AGM Insured)¤ | 0.00 | 12-15-2028 | 1,075,000 | 885,496 | ||
Wisconsin Center District Series C CAB (AGM Insured)¤ | 0.00 | 12-15-2030 | 1,095,000 | 830,758 | ||
Wisconsin Center District Series D CAB (AGM Insured)¤ | 0.00 | 12-15-2045 | 2,250,000 | 775,648 | ||
9,449,091 | ||||||
Tax revenue: 3.24% | ||||||
Southeast Wisconsin Professional Baseball Park District (NPFGC Insured)¤ | 0.00 | 12-15-2025 | 200,000 | 185,100 | ||
Southeast Wisconsin Professional Baseball Park District (NPFGC Insured)¤ | 0.00 | 12-15-2027 | 250,000 | 218,835 | ||
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Wisconsin Tax-Free Fund | 17
Portfolio of investments—June 30, 2023
Interest rate | Maturity date | Principal | Value | |||
Tax revenue (continued) | ||||||
Southeast Wisconsin Professional Baseball Park District Series A (NPFGC Insured) | 5.50 % | 12-15-2023 | $ | 1,600,000 | $1,615,443 | |
Southeast Wisconsin Professional Baseball Park District Series A (NPFGC Insured) | 5.50 | 12-15-2026 | 2,435,000 | 2,557,610 | ||
Warrens CDA | 3.70 | 11-1-2029 | 132,418 | 114,018 | ||
4,691,006 | ||||||
Utilities revenue: 0.34% | ||||||
PFA Duke Energy Progress LLC Series A-1øø | 3.30 | 10-1-2046 | 500,000 | 497,116 | ||
111,702,785 | ||||||
Total municipal obligations (Cost $149,721,377) | 142,532,541 | |||||
Total investments in securities (Cost $149,721,377) | 98.50 % | 142,532,541 | ||||
Other assets and liabilities, net | 1.50 | 2,167,979 | ||||
Total net assets | 100.00 % | $144,700,520 | ||||
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
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 purchased on a when-issued basis. |
¤ | The security is issued in zero coupon form with no periodic interest payments. |
± | Variable rate investment. The rate shown is the rate in effect at period end. |
## | All or a portion of this security is segregated for when-issued securities. |
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
Abbreviations: | |
AGM | Assured Guaranty Municipal |
AMT | Alternative minimum tax |
BAM | Build America Mutual Assurance Company |
CAB | Capital appreciation bond |
CDA | Community Development Authority |
EDA | Economic Development Authority |
GO | General obligation |
HEFA | Health & Educational Facilities Authority |
LOC | Letter of credit |
NPFGC | National Public Finance Guarantee Corporation |
PFA | Public Finance Authority |
RDA | Redevelopment Authority |
SIFMA | Securities Industry and Financial Markets Association |
TTFA | Transportation Trust Fund Authority |
The accompanying notes are an integral part of these consolidated financial statements.
18 | Allspring Wisconsin Tax-Free Fund
Statement of assets and liabilities—June 30, 2023
Financial statements
Statement of assets and liabilities
Assets | |
Investments in unaffiliated securities, at value (cost $149,721,377) | $142,532,541 |
Cash | 408,452 |
Receivable for interest | 1,495,635 |
Receivable for investments sold | 1,008,626 |
Receivable for Fund shares sold | 88,376 |
Prepaid expenses and other assets | 52,907 |
Total assets | 145,586,537 |
Liabilities | |
Payable for Fund shares redeemed | 525,754 |
Payable for when-issued transactions | 254,487 |
Dividends payable | 35,417 |
Administration fees payable | 14,856 |
Management fee payable | 4,021 |
Distribution fee payable | 2,250 |
Trustees’ fees and expenses payable | 365 |
Accrued expenses and other liabilities | 48,867 |
Total liabilities | 886,017 |
Total net assets | $144,700,520 |
Net assets consist of | |
Paid-in capital | $152,455,930 |
Total distributable loss | (7,755,410 ) |
Total net assets | $144,700,520 |
Computation of net asset value and offering price per share | |
Net assets–Class A | $63,819,546 |
Shares outstanding–Class A1 | 6,228,827 |
Net asset value per share–Class A | $10.25 |
Maximum offering price per share – Class A2 | $10.73 |
Net assets–Class C | $3,275,838 |
Shares outstanding–Class C1 | 319,742 |
Net asset value per share–Class C | $10.25 |
Net assets–Institutional Class | $77,605,136 |
Shares outstanding–Institutional Class1 | 7,573,279 |
Net asset value per share–Institutional Class | $10.25 |
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.
Allspring Wisconsin Tax-Free Fund | 19
Statement of operations—year ended June 30, 2023
Statement of operations
Investment income | |
Interest | $4,506,634 |
Expenses | |
Management fee | 580,798 |
Administration fees | |
Class A | 102,980 |
Class C | 6,263 |
Institutional Class | 61,510 |
Shareholder servicing fees | |
Class A | 160,809 |
Class C | 9,762 |
Distribution fee | |
Class C | 29,287 |
Custody and accounting fees | 10,988 |
Professional fees | 76,893 |
Registration fees | 57,368 |
Shareholder report expenses | 31,961 |
Trustees’ fees and expenses | 24,207 |
Other fees and expenses | 5,549 |
Total expenses | 1,158,375 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (147,041 ) |
Class A | (101,172 ) |
Class C | (5,751 ) |
Net expenses | 904,411 |
Net investment income | 3,602,223 |
Realized and unrealized gains (losses) on investments | |
Net realized losses on investments | (351,448 ) |
Net change in unrealized gains (losses) on investments | (631,165 ) |
Net realized and unrealized gains (losses) on investments | (982,613 ) |
Net increase in net assets resulting from operations | $2,619,610 |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Wisconsin Tax-Free Fund
Statement of changes in net assets
Statement of changes in net assets
Year ended June 30, 2023 | Year ended June 30, 2022 | |||
Operations | ||||
Net investment income | $3,602,223 | $3,147,668 | ||
Net realized losses on investments | (351,448 ) | (185,821 ) | ||
Net change in unrealized gains (losses) on investments | (631,165 ) | (14,929,330 ) | ||
Net increase (decrease) in net assets resulting from operations | 2,619,610 | (11,967,483 ) | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class A | (1,550,191 ) | (1,413,674 ) | ||
Class C | (64,430 ) | (58,669 ) | ||
Institutional Class | (1,987,602 ) | (1,850,887 ) | ||
Total distributions to shareholders | (3,602,223 ) | (3,323,230 ) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class A | 830,358 | 8,500,421 | 620,159 | 6,828,863 |
Class C | 48,932 | 499,056 | 91,176 | 995,979 |
Institutional Class | 3,512,825 | 35,892,624 | 3,238,533 | 35,149,888 |
44,892,101 | 42,974,730 | |||
Reinvestment of distributions | ||||
Class A | 140,005 | 1,428,594 | 116,034 | 1,267,180 |
Class C | 6,178 | 63,028 | 5,293 | 57,878 |
Institutional Class | 190,938 | 1,948,520 | 166,521 | 1,819,075 |
3,440,142 | 3,144,133 | |||
Payment for shares redeemed | ||||
Class A | (1,188,206 ) | (12,060,116 ) | (1,100,996 ) | (11,868,079 ) |
Class C | (143,631 ) | (1,472,432 ) | (175,453 ) | (1,884,410 ) |
Institutional Class | (3,789,836 ) | (38,595,680 ) | (3,600,905 ) | (38,548,690 ) |
(52,128,228 ) | (52,301,179 ) | |||
Net decrease in net assets resulting from capital share transactions | (3,795,985 ) | (6,182,316 ) | ||
Total decrease in net assets | (4,778,598 ) | (21,473,029 ) | ||
Net assets | ||||
Beginning of period | 149,479,118 | 170,952,147 | ||
End of period | $144,700,520 | $149,479,118 | ||
The accompanying notes are an integral part of these financial statements.
Allspring Wisconsin Tax-Free Fund | 21
Financial highlights
Financial highlights
(For a share outstanding throughout each period)
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class A | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.30 | $11.28 | $11.12 | $11.04 | $10.74 |
Net investment income | 0.25 | 0.20 | 0.21 | 0.25 | 0.29 |
Net realized and unrealized gains (losses) on investments | (0.05 ) | (0.97 ) | 0.16 | 0.08 | 0.30 |
Total from investment operations | 0.20 | (0.77 ) | 0.37 | 0.33 | 0.59 |
Distributions to shareholders from | |||||
Net investment income | (0.25 ) | (0.20 ) | (0.21 ) | (0.25 ) | (0.29 ) |
Net realized gains | 0.00 | (0.01 ) | 0.00 | (0.00 )1 | 0.00 |
Total distributions to shareholders | (0.25 ) | (0.21 ) | (0.21 ) | (0.25 ) | (0.29 ) |
Net asset value, end of period | $10.25 | $10.30 | $11.28 | $11.12 | $11.04 |
Total return2 | 1.95 % | (6.93 )% | 3.37 % | 3.05 % | 5.56 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.95 % | 0.92 % | 0.92 % | 0.95 % | 0.94 % |
Net expenses | 0.70 % | 0.69 % | 0.68 % | 0.69 % | 0.70 % |
Net investment income | 2.41 % | 1.79 % | 1.88 % | 2.24 % | 2.66 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 12 % | 10 % | 24 % | 8 % |
Net assets, end of period (000s omitted) | $63,820 | $66,388 | $76,836 | $81,173 | $84,924 |
1 | Amount is less than $0.005. |
2 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
22 | Allspring Wisconsin Tax-Free Fund
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Class C | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.30 | $11.28 | $11.12 | $11.04 | $10.74 |
Net investment income | 0.17 | 0.11 | 0.13 | 0.17 1 | 0.21 |
Net realized and unrealized gains (losses) on investments | (0.05 ) | (0.97 ) | 0.16 | 0.08 | 0.30 |
Total from investment operations | 0.12 | (0.86 ) | 0.29 | 0.25 | 0.51 |
Distributions to shareholders from | |||||
Net investment income | (0.17 ) | (0.11 ) | (0.13 ) | (0.17 ) | (0.21 ) |
Net realized gains | 0.00 | (0.01 ) | 0.00 | (0.00 )2 | 0.00 |
Total distributions to shareholders | (0.17 ) | (0.12 ) | (0.13 ) | (0.17 ) | (0.21 ) |
Net asset value, end of period | $10.25 | $10.30 | $11.28 | $11.12 | $11.04 |
Total return3 | 1.18 % | (7.64 )% | 2.58 % | 2.27 % | 4.78 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.70 % | 1.66 % | 1.67 % | 1.70 % | 1.69 % |
Net expenses | 1.45 % | 1.45 % | 1.45 % | 1.45 % | 1.45 % |
Net investment income | 1.65 % | 1.02 % | 1.12 % | 1.49 % | 1.92 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 12 % | 10 % | 24 % | 8 % |
Net assets, end of period (000s omitted) | $3,276 | $4,204 | $5,496 | $5,842 | $6,687 |
1 | Calculated based upon average shares outstanding |
2 | Amount is less than $0.005. |
3 | Total return calculations do not include any sales charges. |
The accompanying notes are an integral part of these financial statements.
Allspring Wisconsin Tax-Free Fund | 23
Financial highlights
(For a share outstanding throughout each period)
Year ended June 30 | |||||
Institutional Class | 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of period | $10.30 | $11.28 | $11.12 | $11.04 | $10.74 |
Net investment income | 0.27 | 0.22 | 0.23 | 0.27 | 0.31 |
Net realized and unrealized gains (losses) on investments | (0.05 ) | (0.97 ) | 0.16 | 0.08 | 0.30 |
Total from investment operations | 0.22 | (0.75 ) | 0.39 | 0.35 | 0.61 |
Distributions to shareholders from | |||||
Net investment income | (0.27 ) | (0.22 ) | (0.23 ) | (0.27 ) | (0.31 ) |
Net realized gains | 0.00 | (0.01 ) | 0.00 | (0.00 )1 | 0.00 |
Total distributions to shareholders | (0.27 ) | (0.23 ) | (0.23 ) | (0.27 ) | (0.31 ) |
Net asset value, end of period | $10.25 | $10.30 | $11.28 | $11.12 | $11.04 |
Total return | 2.13 % | (6.78 )% | 3.54 % | 3.23 % | 5.75 % |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.62 % | 0.59 % | 0.59 % | 0.62 % | 0.61 % |
Net expenses | 0.52 % | 0.52 % | 0.52 % | 0.52 % | 0.52 % |
Net investment income | 2.59 % | 1.96 % | 2.04 % | 2.40 % | 2.85 % |
Supplemental data | |||||
Portfolio turnover rate | 15 % | 12 % | 10 % | 24 % | 8 % |
Net assets, end of period (000s omitted) | $77,605 | $78,887 | $88,620 | $68,230 | $43,978 |
1 | Amount is less than $0.005. |
The accompanying notes are an integral part of these financial statements.
24 | Allspring Wisconsin Tax-Free Fund
Notes to financial statements
Notes to financial statements
1.
ORGANIZATION
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Wisconsin Tax-Free Fund (the “Fund”) which is a non-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.
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.
Investments which are not valued using any of 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.
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.
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 and 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 received 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.
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.
Allspring Wisconsin Tax-Free Fund | 25
Notes to financial statements
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, 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 June 30, 2023, the aggregate cost of all investments for federal income tax purposes was $149,734,132 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $667,104 |
Gross unrealized losses | (7,868,695 ) |
Net unrealized losses | $(7,201,591 ) |
As of June 30, 2023, the Fund had capital loss carryforwards which consist of $74,440 in short-term capital losses and $468,154 in long-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.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2023:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Municipal obligations | $0 | $142,532,541 | $0 | $142,532,541 |
Total assets | $0 | $142,532,541 | $0 | $142,532,541 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the year ended June 30, 2023, the Fund did not have any transfers into/out of Level 3.
26 | Allspring Wisconsin Tax-Free Fund
Notes to financial statements
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 | 0.400 % |
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 year ended June 30, 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 a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.20% 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 | 0.15 % |
Class C | 0.15 |
Institutional Class | 0.08 |
Prior to June 30, 2023, the class-level administration fee for Class A and Class C was 0.16% of the average daily net assets of each respective class.
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 October 31, 2023 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 June 30, 2023, the contractual expense caps are as follows:
EXPENSE RATIO CAPS | |
Class A | 0.70 % |
Class C | 1.45 |
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.
Allspring Wisconsin Tax-Free Fund | 27
Notes to financial statements
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 year ended June 30, 2023, Allspring Funds Distributor received $834 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the year ended June 30, 2023.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C 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. Pursuant to these procedures, the Fund had $2,000,000, $10,010,000 and $0 in interfund purchases, sales and net realized gains (losses), respectively, during the year ended June 30, 2023.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended June 30, 2023 were $20,732,602 and $23,472,897, 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 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 year ended June 30, 2023, there were no borrowings by the Fund under the agreement.
7.
DISTRIBUTIONS TO SHAREHOLDERS
The tax character of distributions paid during the years ended June 30, 2023 and June 30, 2022 were as follows:
Year ended June 30 | ||
2023 | 2022 | |
Ordinary income | $0 | $18,479 |
Tax-exempt income | 3,602,223 | 3,147,668 |
Long-term capital gain | 0 | 157,083 |
As of June 30, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | Unrealized losses | Capital loss carryforward |
$24,192 | $(7,201,591 ) | $(542,594 ) |
8.
CONCENTRATION RISK
The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state or territory of the U.S. Therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt fund. As of the end of the period, the Fund’s investments were concentrated in the state of Wisconsin.
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.
28 | Allspring Wisconsin Tax-Free Fund
Report of independent registered public accounting firm
To the Shareholders of the Fund and Board of Trustees
Allspring Funds Trust:
Allspring Funds Trust:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Allspring Wisconsin Tax-Free Fund (the Fund), one of the funds constituting Allspring Funds Trust, including the portfolio of investments, as of June 30, 2023, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of June 30, 2023, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have not been able to determine the specific year that we began serving as the auditor of one or more Allspring Funds investment companies; however, we are aware that we have served as the auditor of one or more Allspring Funds investment companies since at least 1955.
Boston, Massachusetts
August 25, 2023
Allspring Wisconsin Tax-Free Fund | 29
Other information (unaudited)
Other information
Tax information
Pursuant to Section 852 of the Internal Revenue Code, 100% of distributions paid from net investment income is designated as exempt-interest dividends for the fiscal year ended June 30, 2023.
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 1-866-259-3305, 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 Wisconsin Tax-Free 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 |
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 |
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.
Allspring Wisconsin Tax-Free 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 |
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 Wisconsin Tax-Free Fund
Other information (unaudited)
Officers1
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 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 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 Wisconsin Tax-Free Fund | 33
Other information (unaudited)
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 15-17, 2023 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Wisconsin Tax-Free Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2023, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
The Board noted that it initially approved the Advisory Agreements at a Board meeting held in May 2021, each for a two-year term, in advance of the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC,1 a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. (the “Transaction”). The Trustees also noted that, while they did not specifically consider the continuation of the Advisory Agreements in 2022 as a result of the two-year term that was approved in 2021, the Trustees received and considered certain information at a Board meeting held in April 2022 that was applicable to the Advisory Agreements, including an overview and financial review of the Allspring Global Investments business, information regarding certain ancillary agreements that were approved by the Board at the April 2022 Board meeting, and comparative data regarding Fund fees and expenses.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2023. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business. The Board also considered information about retention arrangements with respect to key personnel of Allspring Global Investments that were put in place in connection with the Transaction. The Board took into account information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the Transaction under a transition services agreement and the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
1
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
34 | Allspring Wisconsin Tax-Free Fund
Other information (unaudited)
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, and Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2022. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Class A shares) was higher than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was higher than the investment performance of its benchmark index, the Bloomberg Municipal Bond Index, for the one-year period under review, that the investment performance of the Fund was in range of the investment performance of its benchmark index for the three-year period under review and that the investment performance of the Fund was lower than the investment performance of its benchmark index for the five- and ten-year periods under review.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than the sum of these average rates for the Fund’s expense Groups for all share classes.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Allspring Wisconsin Tax-Free Fund | 35
Other information (unaudited)
Profitability
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and differences in how Allspring Global Investments calculates its pre-tax profit metric versus the methodology used when Allspring Funds Management was part of Wells Fargo. It was noted that the impact of such differences had only minor impact on the financial results presented. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses and differences in how Allspring Global Investments calculates its pre-tax profit metric versus the methodology used when Allspring Funds Management was part of Wells Fargo. It was noted that the impact of such differences had only minor impact on the financial results presented. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser and fees earned in the past by Allspring Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund complex’s securities lending collateral.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
36 | Allspring Wisconsin Tax-Free Fund
Other information (unaudited)
Liquidity risk management program
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that operate as money market funds), including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund’s investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the “Council”) composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 16-17, 2023, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2022 through December 31, 2022 (the “Reporting Period”). The Report noted significant liquidity events impacting the Funds related to extended foreign market holidays as well as the difficulty of trading and settlement of most Russia-related securities due to sanctions activity. The Report noted that there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage the Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
Allspring Wisconsin Tax-Free Fund | 37
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
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-07102023-rfnboufg 08-23
AR3328 06-23
AR3328 06-23
ITEM 2. CODE OF ETHICS
(a) As of the end of the period covered by the report, Allspring Funds Trust has adopted a code of ethics that applies to its President and Treasurer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
(c) During the period covered by this report, there were no amendments to the provisions of the code of ethics adopted in Item 2(a) above.
(d) During the period covered by this report, there were no implicit or explicit waivers to the provisions of the code of ethics adopted in Item 2(a) above.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of Allspring Funds Trust has determined that Isaiah Harris is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Harris is independent for purposes of Item 3 of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a), (b), (c), (d) The following table presents aggregate fees billed in each of the last two fiscal years for services rendered to the Registrant by the Registrant’s principal accountant. These fees were billed to the registrant and were approved by the Registrant’s audit committee.
| Fiscal | Fiscal | |||||||
| year ended | year ended | |||||||
| June 30, 2023 | June 30, 2022 | |||||||
Audit Fees | $ | 719,430 | $ | 696,040 | ||||
Audit-Related Fees | — | — | ||||||
Tax Fees (1) | 33,240 | 32,455 | ||||||
All Other Fees | — | — | ||||||
|
|
|
| |||||
| $ | 752,670 | $ | 728,495 | |||||
| (1) | Tax fees consist of fees for tax compliance, tax advice, tax planning and excise tax. |
(e) The Chair of the Audit Committees is authorized to pre-approve: (1) audit services for the mutual funds of Allspring Funds Trust; (2) non-audit tax or compliance consulting or training services provided to the Funds by the independent auditors (“Auditors”) if the fees for any particular engagement are not anticipated to exceed $50,000; and (3) non-audit tax or compliance consulting or training services provided by the Auditors to a Fund’s investment adviser and its controlling entities (where pre-approval is required because the engagement relates directly to the operations and financial reporting of the Fund) if the fee to the Auditors for any particular engagement is not anticipated to exceed $50,000. For any such pre-approval sought from the Chair, Management shall prepare a brief description of the proposed services.
If the Chair approves of such service, he or she shall sign the statement prepared by Management. Such written statement shall be presented to the full Committees at their next regularly scheduled meetings.
(f) Not applicable.
3
(g) Not applicable.
(h) Not applicable.
(i) Not applicable.
(j) Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. INVESTMENTS
A Portfolio of Investments for the series of Allspring Funds Trust is included as part of the report to shareholders filed under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.
ITEM 11. CONTROLS AND PROCEDURES
(a) The President and Treasurer have concluded that the Allspring Funds Trust disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the registrant is made known to them by the appropriate persons based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.
(b) There were no significant changes in the registrant’s internal control 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.
4
ITEM 12. DISCLOSURES OF SECURITIES LENDING ACTIVITES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 13. EXHIBITS
| (a)(1) | Code of Ethics. | |
| (a)(2) | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| (a)(3) | Not applicable. | |
| (a)(4) | Not applicable. | |
| (b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
5
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: August 28, 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.
| Allspring Funds Trust | ||
| By: | /s/ Andrew Owen | |
| Andrew Owen | ||
| President | ||
| Date: August 28, 2023 | ||
| By: | /s/Jeremy DePalma | |
| Jeremy DePalma | ||
| Treasurer | ||
| Date: August 28, 2023 | ||