UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09253
Allspring Funds Trust
(Exact name of registrant as specified in charter)
1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203
(Address of principal executive offices) (Zip code)
Matthew Prasse
Allspring Funds Management, LLC
1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-222-8222
Date of fiscal year end: August 31
Registrant is making a filing for 10 of its series: Allspring Adjustable Rate Government Fund, Allspring Conservative Income Fund, Allspring Core Plus Bond Fund, Allspring Government Securities Fund, Allspring High Yield Bond Fund, Allspring Managed Account CoreBuilder® Shares - Series CP, Allspring Short Duration Government Bond Fund, Allspring Short-Term Bond Plus Fund, Allspring Short-Term High Income Bond Fund and Allspring Ultra Short-Term Income Fund
Date of reporting period: February 29, 2024
ITEM 1. REPORT TO STOCKHOLDERS
Allspring Adjustable Rate Government Fund
Semi-Annual Report
February 29, 2024
The views expressed and any forward-looking statements are as of February 29, 2024, 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 Adjustable Rate Government Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Adjustable Rate Government Fund for the six-month period that ended February 29, 2024. Globally, stocks and bonds generally had positive returns for the period. However, markets were volatile as investors focused on persistently high inflation and the impact of aggressive central bank rate hikes. Riskier assets rallied as investors anticipated an end to the tight monetary policy.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 13.93%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 gained 7.90% while the MSCI EM Index (Net) (USD),3 returned 4.93%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 2.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 gained 1.96%, the Bloomberg Municipal Bond Index6 returned 4.33%, and the ICE BofA U.S. High Yield Index7 gained 6.15%.
Investors remained focused on central bank monetary policies.
As the six-month period began, stocks and bonds both had negative overall returns in September as investors were disappointed by the Federal Reserve’s (Fed’s) determination not to lower interest rates until it has confidence that it has tamed persistently high inflation. As of September, the two primary gauges of U.S. inflation—the annual Core Personal Consumption Expenditures Price Index8 and the Consumer Price Index (CPI)9—both stood at roughly 4%, twice as high as the Fed’s oft-stated 2% target. The month ended with the prospect of yet another U.S. government shutdown, averted at least temporarily but looming later in the year.
October was a tough month for financial markets overall. Key global and domestic indexes all were pushed down by rising geopolitical tensions—particularly the Israel-Hamas conflict—and concerns over the Fed’s “higher for longer” monetary policy. The U.S. 10-year Treasury yield rose above 5% for the first time since 2007. Commodity prices did well as oil prices rallied in response to the prospect of oil supply disruptions from the Middle East. U.S. annualized third quarter gross domestic product (GDP) was estimated at a healthier-than-anticipated 4.9%. China’s GDP indicated surprisingly strong industrial production and retail sales, offset by ongoing weakness in its real estate sector.
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. Returns shown are net of transaction costs beginning on July 1, 2022. You cannot invest directly in an index. Copyright 2024. ICE Data Indices, LLC. All rights reserved.
8
The Core Personal Consumption Expenditures Price Index (PCE) is a measure of prices that people living in the United States, or those buying on their behalf, pay for goods and services. It is sometimes called the core PCE price index, because two categories that can have price swings – food and energy – are left out to make underlying inflation easier to see. You cannot invest directly in an index.
9
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index.
2 | Allspring Adjustable Rate Government Fund
Letter to shareholders (unaudited)
“ In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. ”
In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. Overall annual inflation in the U.S. fell to 3.1% in November while 12-month inflation in the U.K. and eurozone eased to 4.6% and 2.4%, respectively—far below their peak levels of mid-2022. Third quarter annualized U.S. GDP growth was raised to an estimated 5.2% while U.S. job totals rose by just below 200,000 in November, indicating a slight cooling of the labor market. All of this fresh evidence added to confidence for a U.S. soft economic landing, leading to a more buoyant mood heading into winter as the Federal Open Market Committee held rates steady at its December meeting.
The broad year-end rally among stocks and bonds that began in November continued through December as investors became more confident that monetary policy would ease in 2024. Supporting the bubbly market mood were a series of reports confirming lower inflationary trends in the U.S. and Europe. During the period, it appeared more likely that the U.S. economy could achieve a soft landing, cooling enough to lower inflation without the pain of a recession. However, by year-end, an expectations gap developed. Capital markets priced in a total of 1.50 percentage points in federal funds rate cuts in 2024, twice as much as the three cuts of 0.25% hinted at by Fed officials.
Financial market performance was mixed in January 2024 as U.S. stocks had modest gains while non-U.S. equities, particularly those in emerging markets, and fixed income assets were held back by central banker pushback on market optimism over rate cuts. Overall, optimism was supported by indications of a soft landing for the U.S. economy. Key data included a surprisingly strong gain of 353,000 jobs in January, an unemployment rate of just 3.7%, and a rise of just 3.1% in the CPI in January. However, that resilience helped push back expectations of a rate cut in March to a more likely second quarter initial move.
In February, stocks were supported by positive economic data and strong corporate earnings. However, fixed income investments were under pressure as resilient inflation led to lowered expectations on the timing of interest rate cuts. The S&P 500 Index had solid monthly gains along with emerging market equities, which benefited from a rebound in China.
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 a wide variety of mutual funds spanning many asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
Allspring Adjustable Rate Government Fund | 3
Letter to shareholders (unaudited)
|
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. |
4 | Allspring Adjustable Rate Government Fund
This page is intentionally left blank.
Performance highlights (unaudited)
Performance highlights
| The Fund seeks current income consistent with capital preservation. |
| Allspring Funds Management, LLC |
| Allspring Global Investments, LLC |
| Christopher Y. Kauffman, CFA, Michal Stanczyk |
Average annual total returns (%) as of February 29, 2024 |
| | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Administrator Class (ESADX) | | | | | | | | | |
Institutional Class (EKIZX) | | | | | | | | | |
Bloomberg U.S. Aggregate Bond Index3 | | | | | | | | | |
Bloomberg 6-Month Treasury Bill Index4 | | | | | | | | | |
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.
|
| 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. |
| The manager has contractually committed through December 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.74% for Class A, 1.49% for Class C, 0.60% for Administrator Class and 0.46% 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. |
| 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. |
| The Bloomberg 6-Month Treasury Bill Index tracks the performance and attributes of recently issued 6-Month U.S. Treasury bills. The index follows Bloomberg monthly rebalancing conventions. 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. Securities issued by U.S. government agencies or government sponsored entities may not be guaranteed by the U.S. Treasury. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to mortgage-and asset-backed securities risk. The U.S. government guarantee applies to certain underlying securities and not to shares of the Fund. 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 Adjustable Rate Government Fund
Performance highlights (unaudited)
Ten largest holdings (%) as of February 29, 20241 |
FRESB Mortgage Trust, 1.72%, 11-25-2041 | |
| |
| |
| |
| |
| |
| |
FHLMC Multifamily Structured Pass-Through Certificates, 1.48%, 5-25-2051 | |
| |
| |
| Figures represent the percentage of the Fund’s net assets. Holdings are subject to change and may have changed since the date specified. |
Portfolio composition as of February 29, 20241 |
| Figures represent the percentage of the Fund’s long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Adjustable Rate Government Fund | 7
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 September 1, 2023 to February 29, 2024.
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
9-1-2023 | Ending
account value
2-29-2024 | | Annualized net
expense ratio |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by 182 divided by 366 (to reflect the one-half-year period). |
8 | Allspring Adjustable Rate Government Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities: 88.11% | | | | | | |
FHLMC Multifamily Structured Pass-Through Certificates Series KF46 Class A (30 Day Average U.S. SOFR+0.33%)± | | | | | | |
FHLMC Multifamily Structured Pass-Through Certificates Series KF62 Class A (30 Day Average U.S. SOFR+0.59%)± | | | | | | |
FHLMC Multifamily Structured Pass-Through Certificates Series KF85 Class AL (30 Day Average U.S. SOFR+0.41%)± | | | | | | |
FHLMC Multifamily Structured Pass-Through Certificates Series KX04 Class AFL (30 Day Average U.S. SOFR+0.44%)± | | | | | | |
FHLMC Multifamily Structured Pass-Through Certificates Series Q016 Class APT2±± | | | | | | |
FHLMC STRIPS Series 20 Class F±± | | | | | | |
FHLMC STRIPS Series 264 Class F1 (30 Day Average U.S. SOFR+0.66%)± | | | | | | |
FHLMC STRIPS Series 319 Class F1 (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-15 Class A6 (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-16 Class A (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-20 Class A7 (30 Day Average U.S. SOFR+0.41%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-21 Class A (30 Day Average U.S. SOFR+0.47%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-24 Class A (30 Day Average U.S. SOFR+0.41%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-27 Class A (30 Day Average U.S. SOFR+0.41%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-30 Class A7 (30 Day Average U.S. SOFR+0.35%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-35 Class A (30 Day Average U.S. SOFR+0.39%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-48 Class 2A±± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-54 Class 4A±± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-55 Class 1A1 | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-56 Class 3AF (30 Day Average U.S. SOFR+1.11%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-62 Class 1A1 (12 Month Treasury Average+1.20%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-63 Class 1A1 (12 Month Treasury Average+1.20%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-66 Class 2A1±± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-67 Class 1A1C±± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-67 Class 2A1C±± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+1.20%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+1.87%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+1.96%)± | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Adjustable Rate Government Fund | 9
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+1.99%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.03%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.06%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.10%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.16%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.17%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.19%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.19%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.22%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.23%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.23%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.23%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.23%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.23%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.23%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.24%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.24%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.24%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.26%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.26%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.26%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.27%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.27%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.28%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.28%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.28%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.29%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.29%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.31%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.34%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.35%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.35%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.36%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.36%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.36%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.36%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.36%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.37%)± | | | | | | |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Adjustable Rate Government Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.40%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.40%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.40%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.40%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.40%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.40%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.43%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.44%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.47%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.48%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.48%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.48%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.48%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.48%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.49%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.52%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.55%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.60%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.61%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.69%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.84%)± | | | | | | |
FHLMC (11th District COFI+1.25%)± | | | | | | |
FHLMC (11th District COFI+1.25%)± | | | | | | |
FHLMC (11th District COFI+1.25%)± | | | | | | |
FHLMC (11th District COFI+1.28%)± | | | | | | |
FHLMC (11th District COFI+2.57%)± | | | | | | |
FHLMC (12 Month Treasury Average+1.93%)± | | | | | | |
FHLMC (12 Month Treasury Average+2.46%)± | | | | | | |
FHLMC (12 Month Treasury Average+2.52%)± | | | | | | |
FHLMC (3 Year Treasury Constant Maturity+2.40%)± | | | | | | |
FHLMC (3 Year Treasury Constant Maturity+2.44%)± | | | | | | |
FHLMC (3 Year Treasury Constant Maturity+2.84%)± | | | | | | |
FHLMC (30 Day Average U.S. SOFR+0.26%)± | | | | | | |
FHLMC (5 Year Treasury Constant Maturity+2.13%)± | | | | | | |
FHLMC (5 Year Treasury Constant Maturity+2.44%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Adjustable Rate Government Fund | 11
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FHLMC Series 1709 Class FA (10 Year Treasury Constant Maturity+- 0.85%)± | | | | | | |
FHLMC Series 1730 Class FA (10 Year Treasury Constant Maturity+- 0.60%)± | | | | | | |
FHLMC Series 2315 Class FW (30 Day Average U.S. SOFR+0.66%)± | | | | | | |
FHLMC Series 2391 Class EF (30 Day Average U.S. SOFR+0.61%)± | | | | | | |
FHLMC Series 2454 Class SL (30 Day Average U.S. SOFR+7.89%)ı | | | | | | |
FHLMC Series 2461 Class FI (30 Day Average U.S. SOFR+0.61%)± | | | | | | |
FHLMC Series 2464 Class FE (30 Day Average U.S. SOFR+1.11%)± | | | | | | |
FHLMC Series 2466 Class FV (30 Day Average U.S. SOFR+0.66%)± | | | | | | |
FHLMC Series 2538 Class F (30 Day Average U.S. SOFR+0.71%)± | | | | | | |
FHLMC Series 2781 Class FA (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 3067 Class FA (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 3114 Class FT (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 3140 Class GF (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 3146 Class FP (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 3149 Class FB (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 3240 Class FM (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 3284 Class CF (30 Day Average U.S. SOFR+0.48%)± | | | | | | |
FHLMC Series 3286 Class FA (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Adjustable Rate Government Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
FHLMC Series 3311 Class KF (30 Day Average U.S. SOFR+0.45%)± | | | | | | |
FHLMC Series 3312 Class FN (30 Day Average U.S. SOFR+0.33%)± | | | | | | |
FHLMC Series 3436 Class A±± | | | | | | |
FHLMC Series 3684 Class FM (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 3753 Class FA (30 Day Average U.S. SOFR+0.61%)± | | | | | | |
FHLMC Series 3757 Class PF (30 Day Average U.S. SOFR+0.61%)± | | | | | | |
FHLMC Series 3822 Class FY (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FHLMC Series 3827 Class DF (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FHLMC Series 3925 Class FL (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FHLMC Series 3997 Class FQ (30 Day Average U.S. SOFR+0.61%)± | | | | | | |
FHLMC Series 4013 Class QF (30 Day Average U.S. SOFR+0.66%)± | | | | | | |
FHLMC Series 4039 Class FA (30 Day Average U.S. SOFR+0.61%)± | | | | | | |
FHLMC Series 4136 Class DF (30 Day Average U.S. SOFR+0.41%)± | | | | | | |
FHLMC Series 4143 Class KF (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 4248 Class FL (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FHLMC Series 4316 Class JF (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FHLMC Series 4474 Class WF (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 4477 Class FG (30 Day Average U.S. SOFR+0.41%)± | | | | | | |
FHLMC Series 4503 Class FA (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 4515 Class FA (30 Day Average U.S. SOFR+0.48%)± | | | | | | |
FHLMC Series 4624 Class FA (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FHLMC Series 4678 Class AF (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FHLMC Series 4691 Class FA (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 4707 Class FD (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 4754 Class FM (30 Day Average U.S. SOFR+0.41%)± | | | | | | |
FHLMC Series 4779 Class WF (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 4821 Class FA (30 Day Average U.S. SOFR+0.41%)± | | | | | | |
FHLMC Series 4831 Class FD (30 Day Average U.S. SOFR+0.41%)± | | | | | | |
FHLMC Series 4842 Class FA (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 4906 Class WF (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FHLMC Series 4908 Class FA (30 Day Average U.S. SOFR+0.55%)± | | | | | | |
FHLMC Series 4915 Class FE (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FHLMC Series 4921 Class FN (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FHLMC Series 4925 Class WF (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FHLMC Series 4925 Class FY (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FHLMC Series 4933 Class FA (30 Day Average U.S. SOFR+0.61%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FNMA (1 Year Treasury Constant Maturity+1.50%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+1.52%)± | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Adjustable Rate Government Fund | 13
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
FNMA (1 Year Treasury Constant Maturity+1.58%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+1.63%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+1.66%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+1.70%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+1.76%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+1.85%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+1.88%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+1.96%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.03%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.07%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.10%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.10%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.10%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.11%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.12%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.12%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.15%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.17%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.17%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.18%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.18%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.18%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.18%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.18%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.18%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.19%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.19%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.19%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.19%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.19%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.20%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.20%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.21%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.21%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.21%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.21%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.21%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.21%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.21%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.22%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.22%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.22%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.22%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.22%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.22%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.22%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.23%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.24%)± | | | | | | |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Adjustable Rate Government Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.24%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.24%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.24%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.24%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.28%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.29%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.29%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.29%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.29%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.30%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.30%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.31%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.31%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.32%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.32%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.32%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.33%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.35%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.35%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.36%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.37%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.37%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.38%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.40%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.41%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.44%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.46%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.47%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.47%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.49%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.49%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.49%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.50%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.50%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.50%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.50%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.52%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.60%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.64%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.64%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.64%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.70%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.72%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.89%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+3.03%)± | | | | | | |
FNMA (11th District COFI+1.25%)± | | | | | | |
FNMA (11th District COFI+1.25%)± | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Adjustable Rate Government Fund | 15
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
FNMA (11th District COFI+1.26%)± | | | | | | |
FNMA (11th District COFI+1.27%)± | | | | | | |
FNMA (11th District COFI+1.27%)± | | | | | | |
FNMA (11th District COFI+1.29%)± | | | | | | |
FNMA (11th District COFI+1.69%)± | | | | | | |
FNMA (11th District COFI+1.70%)± | | | | | | |
FNMA (11th District COFI+1.82%)± | | | | | | |
FNMA (11th District COFI+1.82%)± | | | | | | |
FNMA (11th District COFI+1.84%)± | | | | | | |
FNMA (11th District COFI+1.90%)± | | | | | | |
FNMA (11th District COFI+1.91%)± | | | | | | |
FNMA (11th District COFI+1.92%)± | | | | | | |
FNMA (11th District COFI+1.93%)± | | | | | | |
FNMA (12 Month Treasury Average+1.21%)± | | | | | | |
FNMA (12 Month Treasury Average+1.73%)± | | | | | | |
FNMA (12 Month Treasury Average+1.75%)± | | | | | | |
FNMA (12 Month Treasury Average+1.83%)± | | | | | | |
FNMA (12 Month Treasury Average+1.85%)± | | | | | | |
FNMA (12 Month Treasury Average+1.85%)± | | | | | | |
FNMA (12 Month Treasury Average+1.89%)± | | | | | | |
FNMA (12 Month Treasury Average+1.90%)± | | | | | | |
FNMA (12 Month Treasury Average+1.96%)± | | | | | | |
FNMA (12 Month Treasury Average+2.07%)± | | | | | | |
FNMA (12 Month Treasury Average+2.08%)± | | | | | | |
FNMA (12 Month Treasury Average+2.11%)± | | | | | | |
FNMA (12 Month Treasury Average+2.36%)± | | | | | | |
FNMA (12 Month Treasury Average+2.48%)± | | | | | | |
FNMA (3 Year Treasury Constant Maturity+2.15%)± | | | | | | |
FNMA (5 Year Treasury Constant Maturity+1.90%)± | | | | | | |
FNMA (5 Year Treasury Constant Maturity+2.43%)± | | | | | | |
FNMA (Federal COFI+2.00%)± | | | | | | |
FNMA (Federal COFI+2.46%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Adjustable Rate Government Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FNMA Series 2001-50 Class BA | | | | | | |
FNMA Series 2001-63 Class FD (30 Day Average U.S. SOFR+0.71%)± | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Adjustable Rate Government Fund | 17
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
FNMA Series 2001-81 Class F (30 Day Average U.S. SOFR+0.66%)± | | | | | | |
FNMA Series 2001-T10 Class A2 | | | | | | |
FNMA Series 2001-T12 Class A4±± | | | | | | |
FNMA Series 2001-T12 Class A2 | | | | | | |
FNMA Series 2001-T8 Class A1 | | | | | | |
FNMA Series 2001-W1 Class AV1 (30 Day Average U.S. SOFR+0.23%)± | | | | | | |
FNMA Series 2001-W3 Class A±± | | | | | | |
FNMA Series 2002-5 Class FD (30 Day Average U.S. SOFR+1.01%)± | | | | | | |
FNMA Series 2002-59 Class F (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2002-66 Class A3±± | | | | | | |
FNMA Series 2002-T12 Class A5±± | | | | | | |
FNMA Series 2002-T12 Class A3 | | | | | | |
FNMA Series 2002-T18 Class A5±± | | | | | | |
FNMA Series 2002-T19 Class A4±± | | | | | | |
FNMA Series 2002-W1 Class 3A±± | | | | | | |
FNMA Series 2002-W4 Class A6±± | | | | | | |
FNMA Series 2003-63 Class A8±± | | | | | | |
FNMA Series 2003-7 Class A2±± | | | | | | |
FNMA Series 2003-T2 Class A1 (30 Day Average U.S. SOFR+0.39%)± | | | | | | |
FNMA Series 2003-W10 Class 2A±± | | | | | | |
FNMA Series 2003-W18 Class 2A±± | | | | | | |
FNMA Series 2003-W2 Class 1A3 | | | | | | |
FNMA Series 2003-W4 Class 5A±± | | | | | | |
FNMA Series 2003-W6 Class 6A±± | | | | | | |
FNMA Series 2003-W8 Class 4A±± | | | | | | |
FNMA Series 2003-W9 Class A (30 Day Average U.S. SOFR+0.23%)± | | | | | | |
FNMA Series 2004-17 Class FT (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2004-T1 Class 2A±± | | | | | | |
FNMA Series 2004-T3 Class 2A±± | | | | | | |
FNMA Series 2004-T3 Class 1A3 | | | | | | |
FNMA Series 2004-W1 Class 3A±± | | | | | | |
FNMA Series 2004-W1 Class 2A2 | | | | | | |
FNMA Series 2004-W12 Class 2A±± | | | | | | |
FNMA Series 2004-W15 Class 3A±± | | | | | | |
FNMA Series 2004-W2 Class 5A | | | | | | |
FNMA Series 2005-25 Class PF (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FNMA Series 2005-W3 Class 3A±± | | | | | | |
FNMA Series 2006-112 Class LF (30 Day Average U.S. SOFR+0.66%)± | | | | | | |
FNMA Series 2006-16 Class FA (30 Day Average U.S. SOFR+0.41%)± | | | | | | |
FNMA Series 2006-44 Class FY (30 Day Average U.S. SOFR+0.68%)± | | | | | | |
FNMA Series 2006-5 Class 1A±± | | | | | | |
FNMA Series 2006-W1 Class 3A±± | | | | | | |
FNMA Series 2007-109 Class PF (30 Day Average U.S. SOFR+0.76%)± | | | | | | |
FNMA Series 2007-4 Class DF (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FNMA Series 2007-86 Class FA (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FNMA Series 2007-95 Class A2 (30 Day Average U.S. SOFR+0.36%)± | | | | | | |
FNMA Series 2008-67 Class FG (30 Day Average U.S. SOFR+1.11%)± | | | | | | |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Adjustable Rate Government Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
FNMA Series 2009-106 Class FA (30 Day Average U.S. SOFR+0.86%)± | | | | | | |
FNMA Series 2009-11 Class FU (30 Day Average U.S. SOFR+1.11%)± | | | | | | |
FNMA Series 2010-54 Class AF (30 Day Average U.S. SOFR+0.67%)± | | | | | | |
FNMA Series 2011-121 Class PF (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FNMA Series 2012-122 Class FM (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2012-47 Class FW (30 Day Average U.S. SOFR+1.81%)± | | | | | | |
FNMA Series 2013-130 Class CF (30 Day Average U.S. SOFR+0.36%)± | | | | | | |
FNMA Series 2013-23 Class LF (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FNMA Series 2014-10 Class CF (30 Day Average U.S. SOFR+0.41%)± | | | | | | |
FNMA Series 2014-49 Class AF (30 Day Average U.S. SOFR+0.43%)± | | | | | | |
FNMA Series 2015-38 Class DF (30 Day Average U.S. SOFR+0.42%)± | | | | | | |
FNMA Series 2015-4 Class FA (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FNMA Series 2016-40 Class AF (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FNMA Series 2016-58 Class FA (30 Day Average U.S. SOFR+0.59%)± | | | | | | |
FNMA Series 2016-62 Class AF (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FNMA Series 2016-64 Class KF (30 Day Average U.S. SOFR+0.58%)± | | | | | | |
FNMA Series 2016-76 Class CF (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FNMA Series 2016-82 Class FM (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2016-87 Class AF (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2017-45 Class FA (30 Day Average U.S. SOFR+0.43%)± | | | | | | |
FNMA Series 2018-39 Class WF (30 Day Average U.S. SOFR+0.41%)± | | | | | | |
FNMA Series 2018-47 Class PC | | | | | | |
FNMA Series 2019-25 Class FA (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FNMA Series 2019-38 Class AF (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2019-42 Class MF (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2019-5 Class FE (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FNMA Series 2019-53 Class FA (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2020-10 Class Q | | | | | | |
FNMA Series 2020-29 Class FA (30 Day Average U.S. SOFR+0.76%)± | | | | | | |
FNMA Series 2021-85 Class EF (30 Day Average U.S. SOFR+0.18%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
GNMA (1 Year Treasury Constant Maturity+1.40%)± | | | | | | |
GNMA (1 Year Treasury Constant Maturity+1.50%)± | | | | | | |
GNMA (1 Year Treasury Constant Maturity+2.00%)± | | | | | | |
GNMA (1 Year Treasury Constant Maturity+2.00%)± | | | | | | |
| | | | | | |
GNMA Series 2004-80 Class FA (U.S. SOFR 1 Month+0.51%)± | | | | | | |
GNMA Series 2006-16 Class DF (U.S. SOFR 1 Month+0.22%)± | | | | | | |
GNMA Series 2008-65 Class FG (U.S. SOFR 1 Month+0.86%)± | | | | | | |
GNMA Series 2008-68 Class FA (U.S. SOFR 1 Month+1.06%)± | | | | | | |
GNMA Series 2009-12 Class FA (U.S. SOFR 1 Month+1.06%)± | | | | | | |
GNMA Series 2009-15 Class FL (U.S. SOFR 1 Month+1.06%)± | | | | | | |
GNMA Series 2009-29 Class FL (U.S. SOFR 1 Month+0.76%)± | | | | | | |
GNMA Series 2009-36 Class FE (U.S. SOFR 1 Month+0.91%)± | | | | | | |
GNMA Series 2009-50 Class FW (U.S. SOFR 1 Month+1.11%)± | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Adjustable Rate Government Fund | 19
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
GNMA Series 2009-52 Class FD (U.S. SOFR 1 Month+1.06%)± | | | | | | |
GNMA Series 2010-25 Class FH (U.S. SOFR 1 Month+0.83%)± | | | | | | |
GNMA Series 2010-79 Class YF (U.S. SOFR 1 Month+0.46%)± | | | | | | |
GNMA Series 2011-117 Class FJ (U.S. SOFR 1 Month+0.98%)± | | | | | | |
GNMA Series 2011-H12 Class FA (U.S. SOFR 1 Month+0.60%)± | | | | | | |
GNMA Series 2011-H17 Class FA (U.S. SOFR 1 Month+0.64%)± | | | | | | |
GNMA Series 2012-124 Class GF (U.S. SOFR 1 Month+0.36%)± | | | | | | |
GNMA Series 2014-44 Class IAƒ | | | | | | |
GNMA Series 2014-H16 Class FL (U.S. SOFR 1 Month+0.58%)± | | | | | | |
GNMA Series 2014-H22 Class FC (U.S. SOFR 1 Month+0.59%)± | | | | | | |
GNMA Series 2015-H23 Class TA (U.S. SOFR 1 Month+0.58%)± | | | | | | |
GNMA Series 2016-H24 Class FD (U.S. SOFR 12 Month+1.02%)± | | | | | | |
GNMA Series 2017-130 Class FH (U.S. SOFR 1 Month+0.41%)± | | | | | | |
GNMA Series 2017-H11 Class FE (U.S. SOFR 12 Month+0.90%)± | | | | | | |
GNMA Series 2018-120 Class FL (U.S. SOFR 1 Month+0.41%)± | | | | | | |
GNMA Series 2018-49 Class FM (U.S. SOFR 1 Month+0.36%)± | | | | | | |
GNMA Series 2018-H07 Class FD (U.S. SOFR 1 Month+0.41%)± | | | | | | |
GNMA Series 2018-H13 Class FC (U.S. SOFR 1 Month+0.41%)± | | | | | | |
GNMA Series 2019-103 Class FG (U.S. SOFR 1 Month+0.56%)± | | | | | | |
GNMA Series 2019-129 Class WF (U.S. SOFR 1 Month+0.51%)± | | | | | | |
GNMA Series 2019-H06 Class FD (U.S. SOFR 1 Month+0.83%)± | | | | | | |
GNMA Series 2019-H09 Class FE (U.S. SOFR 1 Month+0.61%)± | | | | | | |
GNMA Series 2019-H10 Class FB (U.S. SOFR 1 Month+0.71%)± | | | | | | |
GNMA Series 2019-H15 Class FE (U.S. SOFR 1 Month+0.74%)± | | | | | | |
GNMA Series 2020-H12 Class F (U.S. SOFR 1 Month+0.61%)± | | | | | | |
GNMA Series 2020-H19 Class FB (U.S. SOFR 1 Month+0.56%)± | | | | | | |
GNMA Series 2021-H01 Class FC (U.S. SOFR 1 Month+0.51%)± | | | | | | |
GNMA Series 2021-H14 Class FA (30 Day Average U.S. SOFR+0.30%)± | | | | | | |
Total agency securities (Cost $236,597,833) | | | | | | |
Asset-backed securities: 2.21% | | | | | | |
Brazos Education Funding LLC Series 2015-1 Class A (30 Day Average U.S. SOFR+1.11%)144A± | | | | | | |
EFS Volunteer LLC Series 2010-1 Class A2 (90 Day Average U.S. SOFR+1.11%)144A± | | | | | | |
Navient Private Education Refinance Loan Trust Series 2020-GA Class A144A | | | | | | |
Navient Student Loan Trust Series 2021-1A Class A1B (30 Day Average U.S. SOFR+0.71%)144A± | | | | | | |
Nelnet Student Loan Trust Series 2019-4A Class A (U.S. SOFR 1 Month+0.98%)144A± | | | | | | |
SLM Student Loan Trust Series 2003-10A Class A4 (90 Day Average U.S. SOFR+0.93%)144A± | | | | | | |
SLM Student Loan Trust Series 2004-10 Class A7B (90 Day Average U.S. SOFR+0.86%)144A± | | | | | | |
Total asset-backed securities (Cost $5,945,684) | | | | | | |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Adjustable Rate Government Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Corporate bonds and notes: 0.67% | | | | | | |
| | | | | | |
Oil & gas services: 0.67% | | | | | | |
Cal Dive I-Title XI, Inc. | | | | | | |
Total corporate bonds and notes (Cost $1,820,773) | | | | | | |
Non-agency mortgage-backed securities: 5.69% | | | | | | |
Angel Oak Mortgage Trust Series 2020-R1 Class A1144A±± | | | | | | |
CSMC Trust Series 2022-NQM1 Class A1144A±± | | | | | | |
FRESB Mortgage Trust Series 2022-SB94 Class A5H±± | | | | | | |
GS Mortgage-Backed Securities Corp. Trust Series 2020-PJ4 Class A2144A±± | | | | | | |
Imperial Fund Mortgage Trust Series 2022-NQM1 Class A1144A±± | | | | | | |
JP Morgan Mortgage Trust Series 2016-5 Class A1144A±± | | | | | | |
MFA Trust Series 2020-NQM3 Class A1144A±± | | | | | | |
New Residential Mortgage Loan Trust Series 2018-4A Class A1M (U.S. SOFR 1 Month+1.01%)144A± | | | | | | |
New Residential Mortgage Loan Trust Series 2020-RPL1 Class A1144A±± | | | | | | |
OBX Trust Series 2022-NQM1 Class A1144A±± | | | | | | |
Starwood Mortgage Residential Trust Series 2021-2 Class A1144A±± | | | | | | |
Towd Point Mortgage Trust Series 2017-5 Class A1 (U.S. SOFR 1 Month+0.71%)144A± | | | | | | |
Total non-agency mortgage-backed securities (Cost $16,573,482) | | | | | | |
| | | | | |
Short-term investments: 2.13% | | | | | | |
Investment companies: 2.13% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞ | | | | | | |
Total short-term investments (Cost $5,604,942) | | | | | | |
Total investments in securities (Cost $266,542,714) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| Variable rate investment. The rate shown is the rate in effect at period end. |
| Investment in an interest-only security that entitles holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. The rate represents the coupon rate. |
| The coupon of the security is adjusted based on the principal and/or interest payments received from the underlying pool of mortgages as well as the credit quality and the actual prepayment speed of the underlying mortgages. The rate shown is the rate in effect at period end. |
| The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
| The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| The rate represents the 7-day annualized yield at period end. |
The accompanying notes are an integral part of these financial statements.
Allspring Adjustable Rate Government Fund | 21
Portfolio of investments—February 29, 2024 (unaudited)
|
| |
| Federal Home Loan Mortgage Corporation |
| Federal National Mortgage Association |
| Government National Mortgage Association |
| Refinitiv USD IBOR Consumer Cash Fallbacks Term 1-year |
| Refinitiv USD IBOR Consumer Cash Fallbacks Term 1-month |
| Refinitiv USD IBOR Consumer Cash Fallbacks Term 6-month |
| Secured Overnight Financing Rate |
| Separate trading of registered interest and principal securities |
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:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
Futures contracts
| | | | | | |
| | | | | | |
10-Year U.S. Treasury Notes | | | | | | |
Ultra 10-Year U.S. Treasury Notes | | | | | | |
2-Year U.S. Treasury Notes | | | | | | |
5-Year U.S. Treasury Notes | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
22 | Allspring Adjustable Rate Government Fund
Statement of assets and liabilities—February 29, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $260,937,772) | |
Investments in affiliated securities, at value (cost $5,604,942) | |
| |
Cash at broker segregated for futures contracts | |
| |
Principal paydown receivable | |
Receivable for Fund shares sold | |
Receivable for daily variation margin on open futures contracts | |
Prepaid expenses and other assets | |
| |
| |
Payable for Fund shares redeemed | |
| |
| |
Professional fees payable | |
Administration fees payable | |
Payable for daily variation margin on open futures contracts | |
Trustees’ fees and expenses payable | |
| |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
| |
| |
Computation of net asset value and offering price per share | |
| |
Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
| |
Shares outstanding–Class C1 | |
Net asset value per share–Class C | |
Net assets–Administrator Class | |
Shares outstanding–Administrator Class1 | |
Net asset value per share–Administrator Class | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
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 Adjustable Rate Government Fund | 23
Statement of operations—six months ended February 29, 2024 (unaudited)
Statement of operations
| |
| |
Income from affiliated securities | |
| |
| |
| |
| |
| |
| |
| |
| |
Shareholder servicing fees | |
| |
| |
| |
| |
| |
Custody and accounting fees | |
| |
| |
Shareholder report expenses | |
Trustees’ fees and expenses | |
| |
| |
Less: Fee waivers and/or expense reimbursements | |
| |
| |
| |
| |
| |
| |
Realized and unrealized gains (losses) on investments | |
| |
| |
| |
Net realized gains on investments | |
Net change in unrealized gains (losses) on | |
| |
| |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
24 | Allspring Adjustable Rate Government Fund
Statement of changes in net assets
Statement of changes in net assets
|
Six months ended
February 29, 2024 (unaudited) | Year ended August 31, 2023 |
| | | | |
| | | | |
Net realized gains on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to shareholders from | | | | |
Net investment income and net realized gains | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Payment for shares redeemed | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net decrease in net assets resulting from capital share transactions | | | | |
Total decrease in net assets | | | | |
| | | | |
| | | | |
| | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Adjustable Rate Government Fund | 25
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Amount is less than $0.005. |
| 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.
26 | Allspring Adjustable Rate Government Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| 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 August 31, 2022 | |
Year ended August 31, 2021 | |
| Calculated based upon average shares outstanding |
| Amount is less than $0.005. |
| Amount is more than $(0.005). |
| 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 Adjustable Rate Government Fund | 27
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Amount is less than $0.005. |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
28 | Allspring Adjustable Rate Government Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Amount is less than $0.005. |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Adjustable Rate Government Fund | 29
Notes to financial statements (unaudited)
Notes to financial statements
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 Adjustable Rate Government 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.
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 contracts, 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.
Mortgage dollar roll transactions
The Fund may engage in mortgage dollar roll transactions through TBA mortgage-backed securities issued by Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). In a mortgage dollar roll transaction, the Fund sells a mortgage-backed security to a financial institution, such as a bank or broker-dealer and simultaneously agrees to repurchase a substantially similar security from the institution at a later date at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different pre-payment histories. During the roll period, the Fund foregoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future purchase as well as by the earnings on the cash proceeds of the initial sale. Mortgage dollar rolls may be renewed without physical delivery of the securities subject to the contract. The Fund accounts for TBA dollar roll transactions as purchases and sales which, as a result, may increase its portfolio turnover rate.
30 | Allspring Adjustable Rate Government Fund
Notes to financial statements (unaudited)
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status. Paydown gains and losses are included in interest income.
Interest earned on cash balances held at the custodian is recorded as interest income.
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 February 29, 2024, the aggregate cost of all investments for federal income tax purposes was $266,982,745 and the unrealized gains (losses) consisted of:
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 Adjustable Rate Government Fund | 31
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of February 29, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
Corporate bonds and notes | | | | |
Non-agency mortgage-backed securities | | | | |
| | | | |
| | | | |
| | | | |
|
| | | | |
| | | | |
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.
At February 29, 2024, 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:
For the six months ended February 29, 2024, the management fee was equivalent to an annual rate of 0.35% 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
32 | Allspring Adjustable Rate Government Fund
Notes to financial statements (unaudited)
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 |
| |
| |
| |
| |
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 December 31, 2024 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. As of February 29, 2024, the contractual caps are as follows:
Distribution fee
The Trust has adopted a distribution plan for Class C shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended February 29, 2024, Allspring Funds Distributor received $91 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended February 29, 2024.
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 did not have any interfund transactions during the six months ended February 29, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments in U.S. government obligations, excluding short-term securities, for the six months ended February 29, 2024 were $3,565,521 and $1,982,279, respectively.
6.
DERIVATIVE TRANSACTIONS
During the six months ended February 29, 2024, the Fund entered into futures contracts for duration and curve management. The Fund had an average notional amount of $67,072,594 in short futures contracts during the six months ended February 29, 2024.
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.
Allspring Adjustable Rate Government Fund | 33
Notes to financial statements (unaudited)
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended February 29, 2024, there were no borrowings by the Fund under the agreement.
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.
34 | Allspring Adjustable Rate Government Fund
Other information (unaudited)
Other information
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 Adjustable Rate Government 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 100 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 Information†. 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
| | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | | 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. Serves on the Investment Company Institute’s Board of Governors since 2022 and Executive Committee since 2023 as well as the Vice Chairman of the Governing Council of the Independent Directors Council since 2023. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Foundation (non-profit organization). Mr. Ebsworth is a CFA charterholder. | |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
| 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. | |
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). | |
David F. Larcker
(Born 1950) | | 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. | |
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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
†
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 Adjustable Rate Government Fund
Other information (unaudited)
| Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
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. | |
James G. Polisson
(Born 1959) | | 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. | |
Pamela Wheelock
(Born 1959) | Trustee,
since January 2020;
previously Trustee from
January 2018 to
| 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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
Allspring Adjustable Rate Government Fund | 37
Other information (unaudited)
Officers1
| Position held and
length of service | Principal occupations during past five years or longer |
| | 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 Adjustable Rate Government Fund
This page is intentionally left blank.
This page is intentionally left blank.
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-03052024-ylfdacjd 04-24
SAR0356 02-24
Allspring Core Plus Bond Fund
Semi-Annual Report
February 29, 2024
The views expressed and any forward-looking statements are as of February 29, 2024, 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 Core Plus Bond Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Core Plus Bond Fund for the six-month period that ended February 29, 2024. Globally, stocks and bonds generally had positive returns for the period. However, markets were volatile as investors focused on persistently high inflation and the impact of aggressive central bank rate hikes. Riskier assets rallied as investors anticipated an end to the tight monetary policy.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 13.93%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 gained 7.90% while the MSCI EM Index (Net) (USD),3 returned 4.93%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 2.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 gained 1.96%, the Bloomberg Municipal Bond Index6 returned 4.33%, and the ICE BofA U.S. High Yield Index7 gained 6.15%.
Investors remained focused on central bank monetary policies.
As the six-month period began, stocks and bonds both had negative overall returns in September as investors were disappointed by the Federal Reserve’s (Fed’s) determination not to lower interest rates until it has confidence that it has tamed persistently high inflation. As of September, the two primary gauges of U.S. inflation—the annual Core Personal Consumption Expenditures Price Index8 and the Consumer Price Index (CPI)9—both stood at roughly 4%, twice as high as the Fed’s oft-stated 2% target. The month ended with the prospect of yet another U.S. government shutdown, averted at least temporarily but looming later in the year.
October was a tough month for financial markets overall. Key global and domestic indexes all were pushed down by rising geopolitical tensions—particularly the Israel-Hamas conflict—and concerns over the Fed’s “higher for longer” monetary policy. The U.S. 10-year Treasury yield rose above 5% for the first time since 2007. Commodity prices did well as oil prices rallied in response to the prospect of oil supply disruptions from the Middle East. U.S. annualized third quarter gross domestic product (GDP) was estimated at a healthier-than-anticipated 4.9%. China’s GDP indicated surprisingly strong industrial production and retail sales, offset by ongoing weakness in its real estate sector.
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. Returns shown are net of transaction costs beginning on July 1, 2022. You cannot invest directly in an index. Copyright 2024. ICE Data Indices, LLC. All rights reserved.
8
The Core Personal Consumption Expenditures Price Index (PCE) is a measure of prices that people living in the United States, or those buying on their behalf, pay for goods and services. It is sometimes called the core PCE price index, because two categories that can have price swings – food and energy – are left out to make underlying inflation easier to see. You cannot invest directly in an index.
9
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index.
2 | Allspring Core Plus Bond Fund
Letter to shareholders (unaudited)
“ In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. ”
In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. Overall annual inflation in the U.S. fell to 3.1% in November while 12-month inflation in the U.K. and eurozone eased to 4.6% and 2.4%, respectively—far below their peak levels of mid-2022. Third quarter annualized U.S. GDP growth was raised to an estimated 5.2% while U.S. job totals rose by just below 200,000 in November, indicating a slight cooling of the labor market. All of this fresh evidence added to confidence for a U.S. soft economic landing, leading to a more buoyant mood heading into winter as the Federal Open Market Committee held rates steady at its December meeting.
The broad year-end rally among stocks and bonds that began in November continued through December as investors became more confident that monetary policy would ease in 2024. Supporting the bubbly market mood were a series of reports confirming lower inflationary trends in the U.S. and Europe. During the period, it appeared more likely that the U.S. economy could achieve a soft landing, cooling enough to lower inflation without the pain of a recession. However, by year-end, an expectations gap developed. Capital markets priced in a total of 1.50 percentage points in federal funds rate cuts in 2024, twice as much as the three cuts of 0.25% hinted at by Fed officials.
Financial market performance was mixed in January 2024 as U.S. stocks had modest gains while non-U.S. equities, particularly those in emerging markets, and fixed income assets were held back by central banker pushback on market optimism over rate cuts. Overall, optimism was supported by indications of a soft landing for the U.S. economy. Key data included a surprisingly strong gain of 353,000 jobs in January, an unemployment rate of just 3.7%, and a rise of just 3.1% in the CPI in January. However, that resilience helped push back expectations of a rate cut in March to a more likely second quarter initial move.
In February, stocks were supported by positive economic data and strong corporate earnings. However, fixed income investments were under pressure as resilient inflation led to lowered expectations on the timing of interest rate cuts. The S&P 500 Index had solid monthly gains along with emerging market equities, which benefited from a rebound in China.
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 a wide variety of mutual funds spanning many asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
Allspring Core Plus Bond Fund | 3
Letter to shareholders (unaudited)
|
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. |
4 | Allspring Core Plus Bond Fund
This page is intentionally left blank.
Performance highlights (unaudited)
Performance highlights
| The Fund seeks total return, consisting of current income and capital appreciation. |
| Allspring Funds Management, LLC |
| Allspring Global Investments, LLC |
| Christopher Y. Kauffman, CFA, Janet S. Rilling, CFA, CPA, Michael J. Schueller, CFA, Michal Stanczyk, Noah M. Wise, CFA |
Average annual total returns (%) as of February 29, 2024 |
| | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Administrator Class (WIPDX) | | | | | | | | | |
Institutional Class (WIPIX) | | | | | | | | | |
Bloomberg U.S. Aggregate Bond Index4 | | | | | | | | | |
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.
|
| Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the Financial Highlights of this report, which do not include acquired fund fees and expenses. |
| The manager has contractually committed through December 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. |
| 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. |
| The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.–dollar–denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. Loans are subject to risks similar to those associated with other below-investment-grade bond investments, such as risk of greater volatility in value, credit risk (for example, risk of issuer default), and risk that the loan may become illiquid or difficult to price. 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 foreign investment risk, high-yield securities risk, and mortgage- and asset-backed securities risk. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. 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 Core Plus Bond Fund
Performance highlights (unaudited)
Ten largest holdings (%) as of February 29, 20241 |
U.S. Treasury Notes, 4.25%, 1-31-2026 | |
| |
| |
| |
U.S. Treasury Notes, 4.88%, 11-30-2025 | |
U.S. Treasury Notes, 4.00%, 1-31-2029 | |
U.S. Treasury Bonds, 4.38%, 8-15-2043 | |
U.S. Treasury Notes, 3.75%, 12-31-2028 | |
U.S. Treasury Bonds, 3.13%, 5-15-2048 | |
| |
| Figures represent the percentage of the Fund’s net assets. Holdings are subject to change and may have changed since the date specified. |
Portfolio composition as of February 29, 20241 |
| Figures represent the percentage of the Fund’s long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Core Plus Bond Fund | 7
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 September 1, 2023 to February 29, 2024.
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
9-1-2023 | Ending
account value
2-29-2024 | | Annualized net
expense ratio |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by 182 divided by 366 (to reflect the one-half-year period). |
8 | Allspring Core Plus Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities: 29.86% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FHLMC Structured Pass-Through Certificates Series T-42 Class A5 | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-57 Class 2A1±± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-59 Class 2A1±± | | | | | | |
FHLMC Whole Loan Securities Trust Series 2015-SC01 Class 1A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 9
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Core Plus Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.24%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.28%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FNMA Series 2002-T12 Class A3 | | | | | | |
FNMA Series 2003-W14 Class 2A±± | | | | | | |
FNMA Series 2003-W8 Class 4A±± | | | | | | |
FNMA Series 2004-W11 Class 1A3 | | | | | | |
FNMA Series 2004-W15 Class 1A3 | | | | | | |
FNMA Series 2005-W4 Class 3A±± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 11
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
GNMA Series 2008-22 Class XMƒ±± | | | | | | |
Resolution Funding Corp. Principal STRIPS¤ | | | | | | |
| | | | | | |
Total agency securities (Cost $1,764,192,640) | | | | | | |
Asset-backed securities: 9.68% | | | | | | |
ACHM Trust Series 2023-HE2 Class A144A±± | | | | | | |
ACM Auto Trust Series 2023-1A Class A144A | | | | | | |
Aligned Data Centers Issuer LLC Series 2021-1A Class A2144A | | | | | | |
Apidos CLO XXXI Series 2019-31A Class DR (U.S. SOFR 3 Month+3.36%)144A± | | | | | | |
Avis Budget Rental Car Funding AESOP LLC Series 2020-1A Class B144A | | | | | | |
Bain Capital Credit CLO Ltd. Series 2020-2A Class BR (U.S. SOFR 3 Month+1.96%)144A± | | | | | | |
Bastion Funding I LLC Series 2023-1A Class A2144A‡ | | | | | | |
BDS Ltd. Series 2021-FL9 Class B (U.S. SOFR 1 Month+1.81%)144A± | | | | | | |
BHG Securitization Trust Series 2021-A Class B144A | | | | | | |
Blue Bridge Funding LLC Series 2023-1A Class A144A | | | | | | |
Blue Bridge Funding LLC Series 2023-1A Class B144A | | | | | | |
Blue Stream Issuer LLC Series 2023-1A Class A2144A | | | | | | |
Bojangles Issuer LLC Series 2020-1A Class A2144A | | | | | | |
BRSP Ltd. Series 2021-FL1 Class A (U.S. SOFR 1 Month+1.26%)144A± | | | | | | |
Cajun Global LLC Series 2021-1 Class A2144A | | | | | | |
Carlyle Global Market Strategies CLO Ltd. Series 2016-1A Class CR2 (U.S. SOFR 3 Month+3.61%)144A± | | | | | | |
CFMT LLC Series 2021-HB7 Class M2144A±± | | | | | | |
Cologix Data Centers U.S. Issuer LLC Series 2021-1A Class B144A | | | | | | |
CoreVest American Finance Trust Series 2021-3 Class B144A | | | | | | |
CPS Auto Receivables Trust Series 2021-A Class D144A | | | | | | |
DataBank Issuer LLC Series 2024-1A Class A2144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Core Plus Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Asset-backed securities(continued) | | | | | | |
Domino’s Pizza Master Issuer LLC Series 2015-1A Class A2II144A | | | | | | |
Driven Brands Funding, LLC Series 2021-1A Class A2144A | | | | | | |
Dryden 72 CLO Ltd. Series 2019-72A Class CR (U.S. SOFR 3 Month+2.11%)144A± | | | | | | |
Dryden XXVIII Senior Loan Fund Series 2013-28A Class A2LR (U.S. SOFR 3 Month+1.91%)144A± | | | | | | |
DT Auto Owner Trust Series 2021-1A Class C144A | | | | | | |
ECMC Group Student Loan Trust Series 2020-3A Class A1B (30 Day Average U.S. SOFR+1.11%)144A± | | | | | | |
Edsouth Indenture No. 9 LLC Series 2015-1 Class A (30 Day Average U.S. SOFR+0.91%)144A± | | | | | | |
Enterprise Fleet Financing LLC Series 2023-2 Class A3144A | | | | | | |
FIGRE Trust Series 2023-HE1 Class A144A | | | | | | |
FIGRE Trust Series 2023-HE2 Class A144A±± | | | | | | |
FIGRE Trust Series 2023-HE3 Class A144A±± | | | | | | |
FirstKey Homes Trust Series 2021-SFR1 Class A144A | | | | | | |
FirstKey Homes Trust Series 2021-SFR1 Class C144A | | | | | | |
FirstKey Homes Trust Series 2021-SFR2 Class B144A | | | | | | |
Five Guys Holdings, Inc. Series 2023-1A Class A2144A | | | | | | |
Flagship Credit Auto Trust Series 2022-2 Class B144A | | | | | | |
Flexential Issuer Series 2021-1A Class A2144A | | | | | | |
FREED Mortgage Trust Series 2022-HE1 Class A144A | | | | | | |
FREED Mortgage Trust Series 2022-HE1 Class B144A | | | | | | |
FS Rialto Issuer LLC Series 2021-FL3 Class B (U.S. SOFR 1 Month+1.91%)144A± | | | | | | |
GLS Auto Receivables Issuer Trust Series 2021-4A Class B144A | | | | | | |
Golub Capital Partners ABS Funding Series 2024-1A Class A2144A♦%% | | | | | | |
Gracie Point International Funding Series 2023-1A Class B (90 Day Average U.S. SOFR+2.60%)144A± | | | | | | |
Hertz Vehicle Financing LLC Series 2021-1A Class B144A | | | | | | |
Hertz Vehicle Financing LLC Series 2022-1A Class B144A | | | | | | |
Hertz Vehicle Financing LLC Series 2023-2A Class A144A | | | | | | |
Hotwire Funding LLC Series 2023-1A Class A2144A | | | | | | |
ICG U.S. CLO Ltd. Series 2014-1A Class BR2 (U.S. SOFR 3 Month+2.71%)144A± | | | | | | |
Jonah Energy ABS I LLC Series 2022-1 Class A1144A | | | | | | |
Lendmark Funding Trust Series 2021-1A Class A144A | | | | | | |
Mercury Financial Credit Card Master Trust Series 2023-1A Class A144A | | | | | | |
MF1 Ltd. Series 2022-FL8 Class A (U.S. SOFR 1 Month+1.35%)144A± | | | | | | |
MF1 Ltd. Series 2022-FL8 Class C (U.S. SOFR 1 Month+2.20%)144A± | | | | | | |
MF1 Multifamily Housing Mortgage Loan Trust Series 2021- FL5 Class A (U.S. SOFR 1 Month+0.96%)144A± | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 13
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Asset-backed securities(continued) | | | | | | |
Neighborly Issuer LLC Series 2021-1A Class A2144A | | | | | | |
Oak Street Investment Grade Net Lease Fund Series 2020-1A Class A5144A | | | | | | |
Oak Street Investment Grade Net Lease Fund Series 2021-1A Class A3144A | | | | | | |
Octane Receivables Trust Series 2021-1A Class A144A | | | | | | |
Octane Receivables Trust Series 2021-1A Class B144A | | | | | | |
Octane Receivables Trust Series 2022-2A Class A144A | | | | | | |
Octane Receivables Trust Series 2023-1A Class A144A | | | | | | |
Octane Receivables Trust Series 2023-1A Class B144A | | | | | | |
OnDeck Asset Securitization Trust LLC Series 2021-1A Class A144A | | | | | | |
OnDeck Asset Securitization Trust LLC Series 2021-1A Class B144A | | | | | | |
Oxford Finance Credit Fund III LP Series 2024-A Class A2144A | | | | | | |
Pagaya AI Debt Selection Trust Series 2021-HG1 Class A144A | | | | | | |
Pagaya AI Debt Selection Trust Series 2023-1 Class A144A | | | | | | |
Pagaya AI Debt Selection Trust Series 2023-5 Class B144A | | | | | | |
Pagaya AI Debt Selection Trust Series 2023-6 Class B144A | | | | | | |
Parallel Ltd. Series 2021-1A Class D (U.S. SOFR 3 Month+3.71%)144A± | | | | | | |
Pawnee Equipment Receivables LLC Series 2021-1 Class A2144A | | | | | | |
Qdoba Funding LLC Series 2023-1A Class A2144A | | | | | | |
RCKT Mortgage Trust Series 2023-CES3 Class A1A144A±± | | | | | | |
Retained Vantage Data Centers Issuer LLC Series 2023-1A Class A2A144A | | | | | | |
Saluda Grade Alternative Mortgage Trust Series 2023-FIG3 Class A144A±± | | | | | | |
Saluda Grade Alternative Mortgage Trust Series 2023-FIG4 Class A144A±± | | | | | | |
Santander Drive Auto Receivables Trust Series 2020-2 Class D | | | | | | |
Service Experts Issuer LLC Series 2021-1A Class A144A | | | | | | |
Service Experts Issuer LLC Series 2021-1A Class B144A | | | | | | |
ServiceMaster Funding LLC Series 2020-1 Class A2II144A | | | | | | |
Sesac Finance LLC Series 2024-1 Class A2144A | | | | | | |
SLM Student Loan Trust Series 2003-10A Class A4 (90 Day Average U.S. SOFR+0.93%)144A± | | | | | | |
Sound Point CLO Ltd. Series 2013-2RA Class A1 (U.S. SOFR 3 Month+1.21%)144A± | | | | | | |
Sound Point CLO VIII-R Ltd. Series 2015-1RA Class BR (U.S. SOFR 3 Month+1.81%)144A± | | | | | | |
SpringCastle America Funding LLC Series 2020-AA Class A144A | | | | | | |
Starwood Ltd. Series 2022-FL3 Class A (30 Day Average U.S. SOFR+1.35%)144A± | | | | | | |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Core Plus Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Asset-backed securities(continued) | | | | | | |
STORE Master Funding LLC Series 2023-1A Class A1144A | | | | | | |
Taco Bell Funding LLC Series 2021-1A Class A23144A | | | | | | |
TierPoint Issuer LLC Series 2023-1A Class A2144A | | | | | | |
Towd Point Asset Trust Series 2018-SL1 Class A (U.S. SOFR 1 Month+0.71%)144A± | | | | | | |
Towd Point HE Trust Series 2023-1 Class A1A144A | | | | | | |
Towd Point Mortgage Trust Series 2024-CES1 Class A2144A±± | | | | | | |
TRTX Issuer Ltd. Series 2022-FL5 Class A (30 Day Average U.S. SOFR+1.65%)144A± | | | | | | |
Vantage Data Centers Issuer LLC Series 2020-1A Class A2144A | | | | | | |
Venture CLO Ltd. Series 2017-30A Class B (U.S. SOFR 3 Month+1.86%)144A± | | | | | | |
Wendy’s Funding LLC Series 2021-1A Class A2II144A | | | | | | |
Westgate Resorts LLC Series 2022-1A Class C144A | | | | | | |
Wingstop Funding LLC Series 2020-1A Class A2144A | | | | | | |
Zais CLO 6 Ltd. Series 2017-1A Class CR (U.S. SOFR 3 Month+2.91%)144A± | | | | | | |
Zais CLO Ltd. Series 2020-14A Class A1AR (U.S. SOFR 3 Month+1.46%)144A± | | | | | | |
Zaxby’s Funding LLC Series 2021-1A Class A2144A | | | | | | |
Total asset-backed securities (Cost $564,586,205) | | | | | | |
| | | | | |
| | | | | | |
Consumer discretionary: 0.01% | | | | | | |
Hotels, restaurants & leisure: 0.01% | | | | | | |
Royal Caribbean Cruises Ltd.† | | | | | | |
Total common stocks (Cost $527,970) | | | | | | |
| | | | | |
Corporate bonds and notes: 20.97% | | | | | | |
| | | | | | |
| | | | | | |
International Flavors & Fragrances, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Outfront Media Capital LLC/Outfront Media Capital Corp.144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 15
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
CCO Holdings LLC/CCO Holdings Capital Corp.144A | | | | | | |
Charter Communications Operating LLC/Charter Communications Operating Capital | | | | | | |
Charter Communications Operating LLC/Charter Communications Operating Capital | | | | | | |
Charter Communications Operating LLC/Charter Communications Operating Capital | | | | | | |
| | | | | | |
Sirius XM Radio, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Telecommunications: 0.45% | | | | | | |
| | | | | | |
| | | | | | |
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC144A | | | | | | |
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC144A | | | | | | |
| | | | | | |
Consumer, cyclical: 2.96% | | | | | | |
| | | | | | |
American Airlines Pass-Through Trust Series 2017-2 Class B | | | | | | |
British Airways Pass-Through Trust Series 2020-1 Class A144A | | | | | | |
Delta Air Lines Pass-Through Trust Series 2020-1 Class AA | | | | | | |
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd.144A | | | | | | |
United Airlines Pass-Through Trust Series 2023-1 Class A | | | | | | |
| | | | | | |
| | | | | | |
Michael Kors USA, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Auto manufacturers: 1.19% | | | | | | |
Daimler Truck Finance North America LLC144A | | | | | | |
| | | | | | |
Ford Motor Credit Co. LLC | | | | | | |
General Motors Financial Co., Inc. | | | | | | |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Core Plus Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Auto manufacturers(continued) | | | | | | |
Hyundai Capital America144A | | | | | | |
Hyundai Capital America144A | | | | | | |
Hyundai Capital America144A | | | | | | |
Nissan Motor Acceptance Co. LLC144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Warnermedia Holdings, Inc. | | | | | | |
Warnermedia Holdings, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Taylor Morrison Communities, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Genting New York LLC/GENNY Capital, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Macy’s Retail Holdings LLC144A | | | | | | |
PetSmart, Inc./PetSmart Finance Corp.144A | | | | | | |
| | | | | | |
Toys/games/hobbies: 0.12% | | | | | | |
| | | | | | |
Consumer, non-cyclical: 2.04% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Philip Morris International, Inc. | | | | | | |
Philip Morris International, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Commercial services: 0.77% | | | | | | |
Allied Universal Holdco LLC/Allied Universal Finance Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
PECF USS Intermediate Holding III Corp.144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 17
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Commercial services(continued) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Smithfield Foods, Inc.144A | | | | | | |
Healthcare-products: 0.27% | | | | | | |
| | | | | | |
Healthcare-services: 0.19% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Energy Transfer LP (5 Year Treasury Constant Maturity+4.02%)± | | | | | | |
Harvest Midstream I LP144A | | | | | | |
Rockies Express Pipeline LLC144A | | | | | | |
Rockies Express Pipeline LLC144A | | | | | | |
Venture Global LNG, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Bank of America Corp. (U.S. SOFR+1.33%)± | | | | | | |
Bank of America Corp. (U.S. SOFR+1.83%)± | | | | | | |
Bank of America Corp. (U.S. SOFR 3 Month+0.90%)± | | | | | | |
Bank of America Corp. (U.S. SOFR 3 Month+1.84%)± | | | | | | |
Bank of America Corp. Series AA (U.S. SOFR 3 Month+4.16%)ʊ± | | | | | | |
Bank of America Corp. Series N (U.S. SOFR+1.22%)± | | | | | | |
Bank of America Corp. Series RR (5 Year Treasury Constant Maturity+2.76%)ʊ± | | | | | | |
Goldman Sachs Group, Inc. (U.S. SOFR+1.25%)± | | | | | | |
| | | | | | |
JPMorgan Chase & Co. (U.S. SOFR+1.02%)± | | | | | | |
JPMorgan Chase & Co. (U.S. SOFR+1.45%)± | | | | | | |
JPMorgan Chase & Co. (U.S. SOFR+1.75%)± | | | | | | |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Core Plus Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
JPMorgan Chase & Co. (U.S. SOFR+1.85%)± | | | | | | |
JPMorgan Chase & Co. (U.S. SOFR 3 Month+0.70%)± | | | | | | |
JPMorgan Chase & Co. Series KK (5 Year Treasury Constant Maturity+2.85%)ʊ± | | | | | | |
JPMorgan Chase & Co. Series Q (U.S. SOFR 3 Month+3.51%)ʊ± | | | | | | |
Morgan Stanley (U.S. SOFR+1.20%)± | | | | | | |
Morgan Stanley (U.S. SOFR+1.36%)± | | | | | | |
Morgan Stanley (U.S. SOFR+1.59%)± | | | | | | |
Morgan Stanley (U.S. SOFR+1.73%)± | | | | | | |
Morgan Stanley (U.S. SOFR+1.83%)± | | | | | | |
Morgan Stanley (U.S. SOFR+1.88%)± | | | | | | |
National Securities Clearing Corp.144A | | | | | | |
Santander Holdings USA, Inc. (U.S. SOFR+3.28%)± | | | | | | |
U.S. Bancorp (U.S. SOFR+1.56%)± | | | | | | |
U.S. Bancorp (U.S. SOFR+2.26%)± | | | | | | |
Wells Fargo & Co. (U.S. SOFR+1.32%)± | | | | | | |
Wells Fargo & Co. (U.S. SOFR+1.50%)± | | | | | | |
| | | | | | |
Diversified financial services: 1.48% | | | | | | |
| | | | | | |
Blackstone Holdings Finance Co. LLC144A | | | | | | |
Blackstone Holdings Finance Co. LLC144A | | | | | | |
Charles Schwab Corp. Series I (5 Year Treasury Constant Maturity+3.17%)ʊ± | | | | | | |
| | | | | | |
| | | | | | |
Private Export Funding Corp.144A | | | | | | |
Toll Road Investors Partnership II LP Series 1999-B (NPFGC Insured)144A¤ | | | | | | |
Toll Road Investors Partnership II LP Series 1999-B (NPFGC Insured)144A¤ | | | | | | |
Toll Road Investors Partnership II LP Series 1999-B (NPFGC Insured)144A¤ | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Athene Global Funding144A | | | | | | |
Athene Global Funding144A | | | | | | |
Cincinnati Financial Corp. | | | | | | |
Guardian Life Insurance Co. of America144A | | | | | | |
Hill City Funding Trust144A | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 19
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
MetLife, Inc. Series G (5 Year Treasury Constant Maturity+3.58%)ʊ± | | | | | | |
Metropolitan Life Global Funding I144A | | | | | | |
National Life Insurance Co. (3 Month LIBOR+3.31%)144A± | | | | | | |
Northwestern Mutual Life Insurance Co.144A | | | | | | |
OneAmerica Financial Partners, Inc.144A | | | | | | |
PartnerRe Finance B LLC (5 Year Treasury Constant Maturity+3.82%)± | | | | | | |
Prudential Financial, Inc. (5 Year Treasury Constant Maturity+3.16%)± | | | | | | |
Reinsurance Group of America, Inc. | | | | | | |
| | | | | | |
Sammons Financial Group, Inc.144A | | | | | | |
Security Benefit Global Funding144A | | | | | | |
Transatlantic Holdings, Inc. | | | | | | |
| | | | | | |
Investment Companies: 0.03% | | | | | | |
| | | | | | |
| | | | | | |
KKR Group Finance Co. III LLC144A | | | | | | |
KKR Group Finance Co. VIII LLC144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Alexandria Real Estate Equities, Inc. | | | | | | |
Brandywine Operating Partnership LP | | | | | | |
| | | | | | |
| | | | | | |
GLP Capital LP/GLP Financing II, Inc. | | | | | | |
GLP Capital LP/GLP Financing II, Inc. | | | | | | |
GLP Capital LP/GLP Financing II, Inc. | | | | | | |
Invitation Homes Operating Partnership LP | | | | | | |
| | | | | | |
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp.144A | | | | | | |
Omega Healthcare Investors, Inc. | | | | | | |
Omega Healthcare Investors, Inc. | | | | | | |
Omega Healthcare Investors, Inc. | | | | | | |
Piedmont Operating Partnership LP | | | | | | |
Piedmont Operating Partnership LP | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Core Plus Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
Service Properties Trust144A | | | | | | |
| | | | | | |
WEA Finance LLC/Westfield U.K. & Europe Finance PLC144A | | | | | | |
WEA Finance LLC/Westfield U.K. & Europe Finance PLC144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Building materials: 0.09% | | | | | | |
Camelot Return Merger Sub, Inc.144A | | | | | | |
Packaging & containers: 0.13% | | | | | | |
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. | | | | | | |
Clydesdale Acquisition Holdings, Inc.144A | | | | | | |
| | | | | | |
Trucking & leasing: 0.07% | | | | | | |
Penske Truck Leasing Co. LP/PTL Finance Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Basin Electric Power Cooperative144A | | | | | | |
CenterPoint Energy, Inc. (U.S. SOFR+0.65%)± | | | | | | |
Constellation Energy Generation LLC | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Enel Finance America LLC144A | | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 21
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
National Rural Utilities Cooperative Finance Corp. | | | | | | |
NextEra Energy Capital Holdings, Inc. | | | | | | |
| | | | | | |
Oklahoma Gas & Electric Co. | | | | | | |
Southern California Edison Co. | | | | | | |
Southern California Edison Co.%% | | | | | | |
Vistra Operations Co. LLC144A | | | | | | |
Vistra Operations Co. LLC144A | | | | | | |
| | | | | | |
| | | | | | |
Southern California Gas Co. | | | | | | |
Total corporate bonds and notes (Cost $1,219,351,092) | | | | | | |
Foreign corporate bonds and notes: 4.35% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Telecommunications: 0.52% | | | | | | |
British Telecommunications PLC (UK Gilts 5 Year+3.82%)± | | | | | | |
| | | | | | |
| | | | | | |
SES SA (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+3.19%)ʊ± | | | | | | |
| | | | | | |
Telefonaktiebolaget LM Ericsson | | | | | | |
Telefonica Europe BV (EUR Swap Annual (vs. 6 Month EURIBOR) 7 Year+3.35%)ʊ± | | | | | | |
| | | | | | |
Consumer, cyclical: 0.68% | | | | | | |
Auto manufacturers: 0.09% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Auto parts & equipment: 0.05% | | | | | | |
| | | | | | |
Distribution/wholesale: 0.07% | | | | | | |
| | | | | | |
| | | | | | |
888 Acquisitions Ltd.144A | | | | | | |
Allwyn Entertainment Financing U.K. PLC144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
22 | Allspring Core Plus Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Banijay Entertainment SASU144A | | | | | | |
Cirsa Finance International Sarl144A | | | | | | |
International Game Technology PLC144A | | | | | | |
| | | | | | |
| | | | | | |
Consumer, non-cyclical: 0.70% | | | | | | |
| | | | | | |
BAT International Finance PLC | | | | | | |
| | | | | | |
| | | | | | |
Commercial services: 0.28% | | | | | | |
Rentokil Initial Finance BV | | | | | | |
Transurban Finance Co. Pty. Ltd. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Bayer AG (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+3.11%)± | | | | | | |
Bayer AG (EURIBOR ICE Swap Rate 11:00am+2.65%)± | | | | | | |
| | | | | | |
| | | | | | |
Holding companies-divers: 0.05% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
BP Capital Markets PLC (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+3.52%)ʊ± | | | | | | |
Repsol International Finance BV (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+2.77%)ʊ± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
ABN AMRO Bank NV (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+3.90%)ʊ± | | | | | | |
| | | | | | |
Banco de Sabadell SA (EURIBOR ICE Swap Rate 11:00am+2.40%)± | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 23
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
BPER Banca (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+4.08%)± | | | | | | |
CaixaBank SA (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+3.55%)± | | | | | | |
Credit Agricole SA (EURIBOR ICE Swap Rate 11:00am+4.44%)ʊ± | | | | | | |
Deutsche Bank AG (3 Month EURIBOR+2.95%)± | | | | | | |
Intesa Sanpaolo SpA (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+7.19%)ʊ± | | | | | | |
KBC Group NV (EURIBOR ICE Swap Rate 11:00am+4.93%)ʊ± | | | | | | |
Nordea Bank Abp (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+3.00%)ʊ± | | | | | | |
Nykredit Realkredit AS (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+4.57%)ʊ± | | | | | | |
UBS Group AG (EURIBOR ICE Swap Rate 11:00am+4.95%)± | | | | | | |
| | | | | | |
Government securities: 0.06% | | | | | | |
| | | | | | |
Banque Ouest Africaine de Developpement | | | | | | |
| | | | | | |
Engineering & construction: 0.12% | | | | | | |
| | | | | | |
Infrastrutture Wireless Italiane SpA | | | | | | |
| | | | | | |
Packaging & containers: 0.17% | | | | | | |
Canpack SA/Canpack U.S. LLC144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Enel Finance International NV | | | | | | |
Energia Group Roi Financeco DAC144A | | | | | | |
| | | | | | |
Vattenfall AB (UK Gilts 5 Year+1.90%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Thames Water Utilities Finance PLC | | | | | | |
Total foreign corporate bonds and notes (Cost $251,735,328) | | | | | | |
The accompanying notes are an integral part of these financial statements.
24 | Allspring Core Plus Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Foreign government bonds: 3.52% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total foreign government bonds (Cost $205,404,720) | | | | | | |
| | | | | |
Investment companies: 0.36% | | | | | | |
Exchange-traded funds: 0.36% | | | | | | |
SPDR Portfolio High Yield Bond ETF | | | | | | |
Total investment companies (Cost $19,999,987) | | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
DirecTV Financing LLC (U.S. SOFR 1 Month+5.00%)± | | | | | | |
Consumer, cyclical: 0.05% | | | | | | |
| | | | | | |
American Airlines, Inc. (U.S. SOFR 3 Month+4.75%)± | | | | | | |
Mileage Plus Holdings LLC (U.S. SOFR 3 Month+5.25%)± | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 25
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Consumer, non-cyclical: 0.10% | | | | | | |
Commercial services: 0.10% | | | | | | |
Geo Group, Inc. (U.S. SOFR 1 Month+6.88%)± | | | | | | |
MPH Acquisition Holdings LLC (U.S. SOFR 3 Month+4.25%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Asurion LLC (U.S. SOFR 1 Month+3.25%)± | | | | | | |
| | | | | | |
Building materials: 0.01% | | | | | | |
Standard Industries, Inc. (U.S. SOFR 1 Month+2.25%)± | | | | | | |
Total loans (Cost $23,897,262) | | | | | | |
Municipal obligations: 0.10% | | | | | | |
| | | | | | |
| | | | | | |
Will County Community High School District No. 210 Lincoln- Way CAB (AGM Insured)¤ | | | | | | |
| | | | | | |
Metropolitan Pier & Exposition Authority (AGM Insured)¤ | | | | | | |
| | | | | | |
Metropolitan Pier & Exposition Authority Series B CAB¤ | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Commonwealth Financing Authority Pennsylvania Department of Education Series A | | | | | | |
Total municipal obligations (Cost $5,629,392) | | | | | | |
Non-agency mortgage-backed securities: 4.96% | | | | | | |
Agate Bay Mortgage Trust Series 2015-3 Class B3144A±± | | | | | | |
Angel Oak Mortgage Trust Series 2020-4 Class A1144A±± | | | | | | |
Bank Series 2022-BNK44 Class A5±± | | | | | | |
Benchmark Mortgage Trust Series 2022-B33 Class A5 | | | | | | |
Benchmark Mortgage Trust Series 2022-B35 Class A5±± | | | | | | |
BMO Mortgage Trust Series 2023-C4 Class A5±± | | | | | | |
Bunker Hill Loan Depositary Trust Series 2019-3 Class A1144A | | | | | | |
BX Commercial Mortgage Trust Series 2023-VLT3 Class B (U.S. SOFR 1 Month+2.69%)144A± | | | | | | |
BX Trust Series 2019-OC11 Class A144A | | | | | | |
BX Trust Series 2021-ARIA Class A (U.S. SOFR 1 Month+1.01%)144A± | | | | | | |
The accompanying notes are an integral part of these financial statements.
26 | Allspring Core Plus Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Non-agency mortgage-backed securities(continued) | | | | | | |
BX Trust Series 2021-ARIA Class D (U.S. SOFR 1 Month+2.01%)144A± | | | | | | |
BX Trust Series 2022-CLS Class C144A | | | | | | |
BX Trust Series 2024-BIO Class C (U.S. SOFR 1 Month+2.64%)144A± | | | | | | |
Cascade Funding Mortgage Trust Series 2018-RM2 Class A144A±± | | | | | | |
CD Mortgage Trust Series 2017-CD6 Class A5 | | | | | | |
CHNGE Mortgage Trust Series 2022-1 Class A1144A±± | | | | | | |
CHNGE Mortgage Trust Series 2023-3 Class A1144A | | | | | | |
CHNGE Mortgage Trust Series 2023-4 Class A1144A | | | | | | |
COLT Mortgage Loan Trust Series 2022-7 Class A1144A | | | | | | |
COMM Mortgage Trust Series 2015-3BP Class A144A | | | | | | |
CRSO Trust Series 2023-BRND Class A | | | | | | |
CSMC Trust Series 2013-IVR2 Class B4144A±± | | | | | | |
CSMC Trust Series 2014-IVR2 Class A2144A±± | | | | | | |
CSMC Trust Series 2021-AFC1 Class A2144A±± | | | | | | |
CSMLT Trust Series 2015-1 Class B4144A±± | | | | | | |
Deephaven Residential Mortgage Trust Series 2021-3 Class A2144A±± | | | | | | |
Financial Asset Securitization Inc. Series 1997-NAM2 Class B2†±± | | | | | | |
FREMF Mortgage Trust Series 2020-KF76 Class B (30 Day Average U.S. SOFR+2.86%)144A± | | | | | | |
GCAT Trust Series 2019-RPL1 Class A1144A±± | | | | | | |
GS Mortgage Securities Trust Series 2017-GS7 Class A3 | | | | | | |
GS Mortgage Securities Trust Series 2019-GSA1 Class C±± | | | | | | |
GS Mortgage-Backed Securities Corp. Trust Series 2019-PJ2 Class A4144A±± | | | | | | |
Homeward Opportunities Fund Trust Series 2020-2 Class A2144A±± | | | | | | |
Imperial Fund Mortgage Trust Series 2020-NQM1 Class A1144A±± | | | | | | |
Imperial Fund Mortgage Trust Series 2021-NQM1 Class A1144A±± | | | | | | |
Imperial Fund Mortgage Trust Series 2021-NQM2 Class A2144A±± | | | | | | |
Imperial Fund Mortgage Trust Series 2022-NQM3 Class A3144A±± | | | | | | |
JP Morgan Mortgage Trust Series 2013-3 Class B4144A±± | | | | | | |
JP Morgan Mortgage Trust Series 2014-2 Class B4144A±± | | | | | | |
JP Morgan Mortgage Trust Series 2020-1 Class A15144A±± | | | | | | |
JPMBB Commercial Mortgage Securities Trust Series 2013- C15 Class D144A±± | | | | | | |
Med Trust Series 2021-MDLN Class B (U.S. SOFR 1 Month+1.56%)144A± | | | | | | |
MFA Trust Series 2020-NQM3 Class A1144A±± | | | | | | |
MFA Trust Series 2020-NQM3 Class M1144A±± | | | | | | |
MFA Trust Series 2021-NQM1 Class A1144A±± | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 27
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Non-agency mortgage-backed securities(continued) | | | | | | |
MFA Trust Series 2021-NQM1 Class A2144A±± | | | | | | |
MFA Trust Series 2022-NQM2 Class A1144A | | | | | | |
Mill City Mortgage Loan Trust Series 2019-GS1 Class M2144A±± | | | | | | |
Morgan Stanley Bank of America Merrill Lynch Trust Series 2016-C30 Class B±± | | | | | | |
Morgan Stanley Capital I Trust Series 2014-150E Class A144A | | | | | | |
New Residential Mortgage Loan Trust Series 2019-RPL3 Class M1144A±± | | | | | | |
OBX Trust Series 2020-INV1 Class A21144A±± | | | | | | |
OBX Trust Series 2022-NQM7 Class A1144A | | | | | | |
ORL Trust Series 2023-GLKS Class A (U.S. SOFR 1 Month+2.35%)144A± | | | | | | |
RCKT Mortgage Trust Series 2023-CES2 Class A1A144A±± | | | | | | |
Residential Mortgage Loan Trust Series 2020-1 Class M1144A±± | | | | | | |
Residential Mortgage Loan Trust Series 2021-1R Class A2144A±± | | | | | | |
SFAVE Commercial Mortgage Securities Trust Series 2015- 5AVE Class D144A±± | | | | | | |
SG Residential Mortgage Trust Series 2021-1 Class A2144A±± | | | | | | |
Shellpoint Co.-Originator Trust Series 2016-1 Class B2144A±± | | | | | | |
Starwood Mortgage Residential Trust Series 2021-6 Class A1144A±± | | | | | | |
Towd Point Mortgage Trust Series 2015-2 Class 1M2144A±± | | | | | | |
Towd Point Mortgage Trust Series 2017-4 Class A1144A±± | | | | | | |
Towd Point Mortgage Trust Series 2019-4 Class M1144A±± | | | | | | |
Towd Point Mortgage Trust Series 2019-4 Class M2144A±± | | | | | | |
Towd Point Mortgage Trust Series 2020-1 Class A1144A±± | | | | | | |
TRK Trust Series 2021-INV1 Class A2144A±± | | | | | | |
UBS Commercial Mortgage Trust Series 2017-C5 Class A5 | | | | | | |
UBS Commercial Mortgage Trust Series 2018-NYCH Class A (U.S. SOFR 1 Month+0.90%)144A± | | | | | | |
Verus Securitization Trust Series 2021-R3 Class A1144A±± | | | | | | |
Verus Securitization Trust Series 2022-4 Class A1144A | | | | | | |
Total non-agency mortgage-backed securities (Cost $299,475,655) | | | | | | |
U.S. Treasury securities: 14.99% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
28 | Allspring Core Plus Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
U.S. Treasury securities(continued) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total U.S. Treasury securities (Cost $888,805,324) | | | | | | |
Yankee corporate bonds and notes: 7.97% | | | | | | |
| | | | | | |
| | | | | | |
Braskem Netherlands Finance BV144A | | | | | | |
| | | | | | |
Glencore Finance Canada Ltd.144A | | | | | | |
| | | | | | |
| | | | | | |
Alibaba Group Holding Ltd. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Telecommunications: 0.44% | | | | | | |
Colombia Telecomunicaciones SA ESP144A | | | | | | |
| | | | | | |
Rogers Communications, Inc. | | | | | | |
| | | | | | |
| | | | | | |
Consumer, cyclical: 0.88% | | | | | | |
| | | | | | |
Air Canada Pass-Through Trust Series 2020-1 Class C144A | | | | | | |
VistaJet Malta Finance PLC/Vista Management Holding, Inc.144A | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 29
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Auto manufacturers: 0.17% | | | | | | |
Nissan Motor Co. Ltd.144A | | | | | | |
| | | | | | |
Genm Capital Labuan Ltd.144A | | | | | | |
| | | | | | |
| | | | | | |
Royal Caribbean Cruises Ltd.144A | | | | | | |
Royal Caribbean Cruises Ltd.144A%% | | | | | | |
Royal Caribbean Cruises Ltd.144A | | | | | | |
| | | | | | |
Consumer, non-cyclical: 0.42% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Perrigo Finance Unlimited Co. | | | | | | |
Pfizer Investment Enterprises Pte. Ltd. | | | | | | |
Teva Pharmaceutical Finance Netherlands III BV | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
BP Capital Markets PLC (5 Year Treasury Constant Maturity+2.15%)ʊ±%% | | | | | | |
BP Capital Markets PLC (5 Year Treasury Constant Maturity+4.40%)ʊ± | | | | | | |
| | | | | | |
| | | | | | |
Woodside Finance Ltd.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Banco Industrial SA (5 Year Treasury Constant Maturity+4.44%)144A± | | | | | | |
Banco Mercantil del Norte SA (5 Year Treasury Constant Maturity+4.64%)144Aʊ± | | | | | | |
Banco Mercantil del Norte SA (5 Year Treasury Constant Maturity+4.97%)144Aʊ± | | | | | | |
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand (5 Year Treasury Constant Maturity+3.00%)144A± | | | | | | |
The accompanying notes are an integral part of these financial statements.
30 | Allspring Core Plus Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Banco Santander SA (1 Year Treasury Constant Maturity+0.45%)± | | | | | | |
Barclays PLC (U.S. SOFR+2.22%)± | | | | | | |
BBVA Bancomer SA (5 Year Treasury Constant Maturity+4.31%)144A± | | | | | | |
BNP Paribas SA (5 Year Treasury Constant Maturity+3.73%)144Aʊ± | | | | | | |
BNP Paribas SA (5 Year Treasury Constant Maturity+4.90%)144Aʊ± | | | | | | |
Credit Suisse Group AG (U.S. SOFR+1.73%)144A± | | | | | | |
Credit Suisse Group AG (U.S. SOFR+3.70%)144A± | | | | | | |
Danske Bank AS (1 Year Treasury Constant Maturity+1.40%)144A±%% | | | | | | |
Danske Bank AS (1 Year Treasury Constant Maturity+1.75%)144A± | | | | | | |
Federation des Caisses Desjardins du Quebec144A | | | | | | |
HSBC Holdings PLC (U.S. SOFR+0.71%)± | | | | | | |
| | | | | | |
Lloyds Banking Group PLC (5 Year Treasury Constant Maturity+4.82%)ʊ± | | | | | | |
Macquarie Bank Ltd. (5 Year Treasury Constant Maturity+1.70%)144A± | | | | | | |
National Australia Bank Ltd. (5 Year Treasury Constant Maturity+1.70%)144A± | | | | | | |
NatWest Group PLC (1 Year Treasury Constant Maturity+1.50%)± | | | | | | |
| | | | | | |
UBS Group AG (1 Year Treasury Constant Maturity+0.85%)144A± | | | | | | |
UBS Group AG (1 Year Treasury Constant Maturity+2.05%)144A± | | | | | | |
UBS Group AG (5 Year Treasury Constant Maturity+3.40%)144Aʊ± | | | | | | |
Unicredit SpA (5 Year Treasury Constant Maturity+4.75%)144A± | | | | | | |
| | | | | | |
Diversified financial services: 0.29% | | | | | | |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust | | | | | | |
Avolon Holdings Funding Ltd.144A | | | | | | |
| | | | | | |
Unifin Financiera SAB de CV144A† | | | | | | |
| | | | | | |
| | | | | | |
Allianz SE (5 Year Treasury Constant Maturity+3.23%)144A± | | | | | | |
Nippon Life Insurance Co. (5 Year Treasury Constant Maturity+2.60%)144A± | | | | | | |
RenaissanceRe Holdings Ltd. | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 31
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Sompo International Holdings Ltd. | | | | | | |
Swiss Re Finance Luxembourg SA (5 Year Treasury Constant Maturity+3.58%)144A± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Brookfield Finance, Inc.%% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Nationwide Building Society144A | | | | | | |
Government securities: 0.16% | | | | | | |
| | | | | | |
African Export-Import Bank144A | | | | | | |
Banque Ouest Africaine de Developpement144A | | | | | | |
| | | | | | |
| | | | | | |
Engineering & construction: 0.06% | | | | | | |
Cellnex Finance Co. SA144A | | | | | | |
Trucking & leasing: 0.09% | | | | | | |
SMBC Aviation Capital Finance DAC144A | | | | | | |
| | | | | | |
| | | | | | |
Renesas Electronics Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
Comision Federal de Electricidad144A | | | | | | |
Comision Federal de Electricidad144A | | | | | | |
| | | | | | |
Total yankee corporate bonds and notes (Cost $476,756,830) | | | | | | |
Yankee government bonds: 1.54% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
32 | Allspring Core Plus Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Dominican Republic: 0.06% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Corp. Financiera de Desarrollo SA (3 Month LIBOR+5.61%)144A± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 33
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
Total yankee government bonds (Cost $94,327,334) | | | | | | |
| | | | | |
Short-term investments: 5.54% | | | | | | |
Investment companies: 3.81% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞## | | | | | | |
| | | | | |
U.S. Treasury securities: 1.73% | | | | | | |
| | | | | | |
Total short-term investments (Cost $318,475,478) | | | | | | |
Total investments in securities (Cost $6,133,165,217) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| Variable rate investment. The rate shown is the rate in effect at period end. |
| The coupon of the security is adjusted based on the principal and/or interest payments received from the underlying pool of mortgages as well as the credit quality and the actual prepayment speed of the underlying mortgages. The rate shown is the rate in effect at period end. |
| The security is purchased on a when-issued basis. |
| Investment in an interest-only security that entitles holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. The rate represents the coupon rate. |
| The security is issued in zero coupon form with no periodic interest payments. |
| 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. |
| Security is valued using significant unobservable inputs. |
| The security is fair valued in accordance with procedures approved by the Board of Trustees. |
| Non-income-earning security |
| Security is perpetual in nature and has no stated maturity date. The date shown reflects the next call date. |
| All or a portion of this security is segregated as collateral for when-issued securities. |
| 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. |
| Zero coupon security. The rate represents the current yield to maturity. |
The accompanying notes are an integral part of these financial statements.
34 | Allspring Core Plus Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
|
| Assured Guaranty Municipal |
| |
| |
| Capital appreciation bond |
| |
| Euro Interbank Offered Rate |
| Federal Home Loan Mortgage Corporation |
| Federal National Mortgage Association |
| |
| Government National Mortgage Association |
| |
| London Interbank Offered Rate |
| |
| National Public Finance Guarantee Corporation |
| Real estate investment trust |
| Refinitiv USD IBOR Consumer Cash Fallbacks Term 1-year |
| |
| Secured Overnight Financing Rate |
| Separate trading of registered interest and principal securities |
| Tennessee Valley 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:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
Forward foreign currency contracts
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 35
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | | |
| | | | | | |
10-Year U.S. Treasury Notes | | | | | | |
Ultra Long Term U.S. Treasury Bond | | | | | | |
2-Year U.S. Treasury Notes | | | | | | |
5-Year U.S. Treasury Notes | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Ultra 10-Year U.S. Treasury Notes | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
36 | Allspring Core Plus Bond Fund
Statement of assets and liabilities—February 29, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $5,914,322,621) | |
Investments in affiliated securities, at value (cost $218,842,596) | |
| |
Cash at broker segregated for futures contracts | |
Foreign currency, at value (cost $893,934) | |
Receivable for Fund shares sold | |
Receivable for investments sold | |
| |
Unrealized gains on forward foreign currency contracts | |
Receivable for daily variation margin on open futures contracts | |
Principal paydown receivable | |
Prepaid expenses and other assets | |
| |
| |
Payable for when-issued transactions | |
Payable for investments purchased | |
Payable for Fund shares redeemed | |
| |
| |
Payable for daily variation margin on open futures contracts | |
Unrealized losses on forward foreign currency contracts | |
Administration fees payable | |
| |
Trustees’ fees and expenses payable | |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
| |
| |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 37
Statement of assets and liabilities—February 29, 2024 (unaudited)
Statement of assets and liabilities
Computation of net asset value and offering price per share | |
| |
Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
| |
Shares outstanding–Class C1 | |
Net asset value per share–Class C | |
| |
Shares outstanding–Class R61 | |
Net asset value per share–Class R6 | |
Net assets–Administrator Class | |
Shares outstanding–Administrator Class1 | |
Net asset value per share–Administrator Class | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
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.
38 | Allspring Core Plus Bond Fund
Statement of operations—six months ended February 29, 2024 (unaudited)
Statement of operations
| |
| |
Income from affiliated securities | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Shareholder servicing fees | |
| |
| |
| |
| |
| |
Custody and accounting fees | |
| |
| |
Shareholder report expenses | |
Trustees’ fees and expenses | |
| |
| |
Less: Fee waivers and/or expense reimbursements | |
| |
| |
| |
| |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 39
Statement of operations—six months ended February 29, 2024 (unaudited)
Statement of operations
Realized and unrealized gains (losses) on investments | |
Net realized gains (losses) on | |
| |
Foreign currency and foreign currency translations | |
Forward foreign currency contracts | |
| |
| |
Net realized losses on investments | |
Net change in unrealized gains (losses) on | |
| |
Foreign currency and foreign currency translations | |
Forward foreign currency contracts | |
| |
| |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
40 | Allspring Core Plus Bond Fund
Statement of changes in net assets
Statement of changes in net assets
|
Six months ended
February 29, 2024 (unaudited) | Year ended August 31, 2023 |
| | | | |
| | | | |
Net realized losses on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase (decrease) in net assets resulting from operations | | | | |
Distributions to shareholders from | | | | |
Net investment income and net realized gains | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Payment for shares redeemed | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net increase in net assets resulting from capital share transactions | | | | |
Total increase in net assets | | | | |
| | | | |
| | | | |
| | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 41
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| 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.
42 | Allspring Core Plus Bond Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| 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 Core Plus Bond Fund | 43
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
44 | Allspring Core Plus Bond Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Core Plus Bond Fund | 45
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
46 | Allspring Core Plus Bond Fund
Notes to financial statements (unaudited)
Notes to financial statements
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 Core Plus 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.
Equity securities, exchange-traded funds and futures contracts that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee at Allspring Funds Management, LLC (“Allspring Funds Management”).
Forward foreign currency contracts are recorded at the forward rate provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee at 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 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.
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.
Allspring Core Plus Bond Fund | 47
Notes to financial statements (unaudited)
Loans
The Fund may invest in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When the Fund purchases participations, it generally has no rights to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund assumes the credit risk of both the borrower and the lender that is selling the participation. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan and may enforce compliance by the borrower with the terms of the loan agreement. Loans may include fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding. Unfunded loan commitments represent the remaining obligation of the Fund to the borrower. At any point in time, up to the maturity date of the issue, the borrower may demand the unfunded portion. Unfunded amounts, if any, are marked to market and any unrealized gains or losses are recorded in the Statement of Assets and Liabilities.
Forward foreign currency contracts
A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on forward foreign currency contracts. The Fund is subject to foreign currency risk and may be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund’s maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the counterparty.
Futures contracts
Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at a specified price 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 contracts, 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.
Swap contracts
Swap contracts are agreements between the Fund and a counterparty to exchange a series of cash flows over a specified period. Swap agreements are privately negotiated contracts between the Fund that are entered into as bilateral contracts in the over-the-counter market or centrally cleared (“centrally cleared swaps”) with a central clearinghouse.
The Fund entered into centrally cleared swaps. In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP. Upon entering into a centrally cleared swap, the Fund is required to deposit an initial margin with the broker in the form of cash or securities. Securities deposited as initial margin are designated in the Portfolio of Investments and cash deposited is shown as cash segregated for centrally cleared swaps in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). The variation margin is recorded as an unrealized gain (or loss) and shown as daily variation margin receivable (or payable) on centrally cleared swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty are recorded as realized gains (losses) in the Statement of Operations when the contract is closed.
Credit default swaps
The Fund may enter into credit default swaps for hedging or speculative purposes to provide or receive a measure of protection against default on a referenced entity, obligation or index or a basket of single-name issuers or traded indexes. An index credit default swap references all the names in the index, and if a credit event is triggered, the credit event is settled based on that name’s weight in the index. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the protection seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring).
48 | Allspring Core Plus Bond Fund
Notes to financial statements (unaudited)
The Fund may enter into credit default swaps as either the seller of protection or the buyer of protection. If the Fund is the buyer of protection and a credit event occurs, the Fund will either receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. If the Fund is the seller of protection and a credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.
As the seller of protection, the Fund is subject to investment exposure on the notional amount of the swap and has assumed the risk of default of the underlying security or index. As the buyer of protection, the Fund could be exposed to risks if the seller of the protection defaults on its obligation to perform, or if there are unfavorable changes in the fluctuation of interest rates.
By entering into credit default swap contracts, the Fund is exposed to credit risk. In addition, certain credit default swap contracts entered into by the Fund provide for conditions that result in events of default or termination that enable the counterparty to the agreement to cause an early termination of the transactions under those agreements.
Mortgage dollar roll transactions
The Fund may engage in mortgage dollar roll transactions through TBA mortgage-backed securities issued by Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). In a mortgage dollar roll transaction, the Fund sells a mortgage-backed security to a financial institution, such as a bank or broker-dealer and simultaneously agrees to repurchase a substantially similar security from the institution at a later date at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different pre-payment histories. During the roll period, the Fund foregoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future purchase as well as by the earnings on the cash proceeds of the initial sale. Mortgage dollar rolls may be renewed without physical delivery of the securities subject to the contract. The Fund accounts for TBA dollar roll transactions as purchases and sales which, as a result, may increase its portfolio turnover rate.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status. Paydown gains and losses are included in interest income.
Dividend income is recognized on the ex-dividend date.
Interest earned on cash balances held at the custodian is recorded as interest income.
Income dividends and capital gain distributions from investment companies are recorded on the ex-dividend date. Capital gain distributions from investment companies are treated as realized gains.
Distributions to shareholders
Distributions to shareholders are recorded on the ex-dividend date and paid from net investment income monthly and any net realized gains are paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The 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 Core Plus Bond Fund | 49
Notes to financial statements (unaudited)
As of February 29, 2024, the aggregate cost of all investments for federal income tax purposes was $6,135,419,690 and the unrealized gains (losses) consisted of:
As of August 31, 2023, the Fund had capital loss carryforwards which consisted of $186,258,397 in short-term capital losses and $71,518,991 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.
50 | Allspring Core Plus Bond Fund
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of February 29, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Corporate bonds and notes | | | | |
Foreign corporate bonds and notes | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Non-agency mortgage-backed securities | | | | |
| | | | |
Yankee corporate bonds and notes | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Forward foreign currency contracts | | | | |
| | | | |
| | | | |
|
Forward foreign currency contracts | | | | |
| | | | |
| | | | |
Futures contracts and forward foreign currency contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the tables following the Portfolio of Investments. For futures contracts, 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.
At February 29, 2024, 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:
For the six months ended February 29, 2024, the management fee was equivalent to an annual rate of 0.40% of the Fund’s average daily net assets.
Allspring Core Plus Bond Fund | 51
Notes to financial statements (unaudited)
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring 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 |
| |
| |
| |
| |
| |
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 December 31, 2024 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. As of February 29, 2024, the contractual caps are as follows:
Distribution fee
The Trust has adopted a distribution plan for Class C shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended February 29, 2024, Allspring Funds Distributor received $6,184 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended February 29, 2024.
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 did not have any interfund transactions during the six months ended February 29, 2024.
52 | Allspring Core Plus Bond Fund
Notes to financial statements (unaudited)
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six months ended February 29, 2024 were as follows:
6.
DERIVATIVE TRANSACTIONS
During the six months ended February 29, 2024, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio. The Fund also entered into forward foreign currency contracts for economic hedging purposes and entered into swap contracts to hedge risks and/or enhance total returns.
The volume of the Fund’s derivative activity during the six months ended February 29, 2024 was as follows:
Forward foreign currency contracts | |
Average contract amounts to buy | |
Average contract amounts to sell | |
| |
Average notional balance on long futures | |
Average notional balance on short futures | |
| |
| |
The swap transactions may contain provisions for early termination in the event the net assets of the Fund declines below specific levels identified by the counterparty. If these levels are triggered, the counterparty may terminate the transaction and seek payment or request full collateralization of the derivative transactions in net liability positions.
A summary of the location of derivative instruments on the financial statements by primary risk exposure is outlined in the following tables.
Allspring Core Plus Bond Fund | 53
Notes to financial statements (unaudited)
The fair value of derivative instruments as of February 29, 2024 by primary risk type was as follows for the Fund:
| | | |
|
Forward foreign currency contracts | | | |
| | | |
| | | |
|
Forward foreign currency contracts | | | |
| | | |
| | | |
| Amount represents the cumulative unrealized gains (losses) as reported in the table following the Portfolio of Investments. For futures contracts, only the current day’s variation margin as of February 29, 2024 is reported separately on the Statement of Assets and Liabilities. |
The effect of derivative instruments on the Statement of Operations for the six months ended February 29, 2024 was as follows:
| | | | |
Net realized gains (losses) on derivatives |
Forward foreign currency contracts | | | | |
| | | | |
| | | | |
| | | | |
Net change in unrealized gains (losses) on derivatives |
Forward foreign currency contracts | | | | |
| | | | |
| | | | |
| | | | |
For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by counterparty, including any collateral exposure, for OTC derivatives is as follows:
| Gross amounts
of assets in the
Statement of
Assets and
Liabilities | Amounts
subject to
netting
agreements | | |
| | | | |
| | | | |
| Gross amounts
of liabilities in the
Statement of
Assets and
Liabilities | Amounts
subject to
netting
agreements | | |
| | | | |
54 | Allspring Core Plus Bond Fund
Notes to financial statements (unaudited)
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended February 29, 2024, there were no borrowings by the Fund under the agreement.
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 Core Plus Bond Fund | 55
Other information (unaudited)
Other information
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.
56 | Allspring Core Plus 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 100 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 Information†. 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
| | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | | 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. Serves on the Investment Company Institute’s Board of Governors since 2022 and Executive Committee since 2023 as well as the Vice Chairman of the Governing Council of the Independent Directors Council since 2023. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Foundation (non-profit organization). Mr. Ebsworth is a CFA charterholder. | |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
| 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. | |
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). | |
David F. Larcker
(Born 1950) | | 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. | |
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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
†
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 Core Plus Bond Fund | 57
Other information (unaudited)
| Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
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. | |
James G. Polisson
(Born 1959) | | 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. | |
Pamela Wheelock
(Born 1959) | Trustee,
since January 2020;
previously Trustee from
January 2018 to
| 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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
58 | Allspring Core Plus Bond Fund
Other information (unaudited)
Officers1
| Position held and
length of service | Principal occupations during past five years or longer |
| | 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 Core Plus Bond Fund | 59
This page is intentionally left blank.
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-03052024-zv3nerjy 04-24
SAR0059 02-24
Allspring Managed Account
Allspring Managed Account CoreBuilder® Shares – Series CP
Semi-Annual Report
February 29, 2024
The views expressed and any forward-looking statements are as of February 29, 2024, 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 Managed Account | 1
|
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. |
2 | Allspring Managed Account
This page is intentionally left blank.
Performance highlights (unaudited)
Performance highlights
| The Fund seeks total return, consisting of current income and capital appreciation. |
| Allspring Funds Management, LLC |
| Allspring Global Investments, LLC |
| Christopher Y. Kauffman, CFA, Janet S. Rilling, CFA, CPA, Michael J. Schueller, CFA, Michal Stanczyk, Noah M. Wise, CFA |
Average annual total returns (%) as of February 29, 2024 |
| | | | |
| | | | | |
Allspring Managed Account CoreBuilder® Shares - Series CP (WFCPX) | | | | | |
Bloomberg U.S. Aggregate Bond Index2 | | | | | |
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. 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 by calling 1-888-877-9275.
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.
Shares are sold without a front-end sales charge or contingent deferred sales charge.
|
| Based on the Fund’s inception date. |
| Generally, no ordinary fees or expenses are charged to the Fund. Allspring Funds Management, LLC has contractually committed to irrevocably absorb and pay or reimburse all ordinary operating expenses of the Fund, except portfolio transactions or other investment related costs (e.g., commissions), fees payable for services provided by the Fund’s securities lending agent (if any), interest, taxes, leverage expenses and other expenses not incurred in the ordinary course of the Fund’s business. This commitment has an indefinite term. |
| The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.–dollar–denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. Loans are subject to risks similar to those associated with other below-investment-grade bond investments, such as risk of greater volatility in value, credit risk (for example, risk of issuer default), and risk that the loan may become illiquid or difficult to price. 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 foreign investment risk, high-yield securities risk, and mortgage- and asset-backed securities risk. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. Consult the Fund’s prospectus for additional information on these and other risks.
CoreBuilder Shares are a series of investment options within the separately managed accounts advised or subadvised by Allspring Funds Management, LLC. The shares are fee-waived mutual funds that enable certain separately managed account investors to achieve greater diversification than smaller managed accounts might otherwise achieve.
Please remember that shares of the Fund may be purchased only by or on behalf of separately managed account clients where Allspring Funds Management, LLC has an agreement to serve as investment adviser or subadviser to the account with the separately managed account sponsor (typically a registered investment adviser or broker/dealer) or directly with the client.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
4 | Allspring Managed Account
Performance highlights (unaudited)
Ten largest holdings (%) as of February 29, 20241 |
U.S. Treasury Notes, 4.00%, 1-31-2029 | |
| |
U.S. Treasury Notes, 4.25%, 1-31-2026 | |
U.S. Treasury Notes, 4.38%, 11-30-2028 | |
U.S. Treasury Notes, 3.88%, 1-15-2026 | |
| |
| |
U.S. Treasury Notes, 4.00%, 2-15-2034 | |
| |
U.K. Gilts, 3.25%, 1-31-2033 | |
| Figures represent the percentage of the Fund’s net assets. Holdings are subject to change and may have changed since the date specified. |
Credit quality as of February 29, 20241 |
| The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the portfolio with the ratings depicted in the chart are calculated based on the market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of the three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified. |
Effective maturity distribution as of February 29, 20241 |
| Figures represent the percentage of the Fund’s long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Managed Account | 5
Fund expenses (unaudited)
Fund expenses
As a shareholder of the Fund, you incur ongoing costs 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 September 1, 2023 to February 29, 2024.
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
9-1-2023 | Ending
account value
2-29-2024 | | Annualized net
expense ratio |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| Expenses paid is equal to the annualized net expense ratio multiplied by the average account value over the period, multiplied by 182 divided by 366 (to reflect the one-half-year period). |
| Generally, no ordinary fees or expenses are charged to the Fund. Allspring Funds Management, LLC has contractually committed to irrevocably absorb and pay or reimburse all ordinary operating expenses of the Fund, except portfolio transactions or other investment related costs (e.g., commissions), fees payable for services provided by the Fund’s securities lending agent (if any), interest, taxes, leverage expenses and other expenses not incurred in the ordinary course of the Fund’s business. This commitment has an indefinite term. |
6 | Allspring Managed Account
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities: 13.83% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Resolution Funding Corp. Principal STRIPS¤ | | | | | | |
| | | | | | |
| | | | | | |
Total agency securities (Cost $15,643,856) | | | | | | |
Asset-backed securities: 21.14% | | | | | | |
ACHM Trust Series 2023-HE2 Class A144A±± | | | | | | |
Aligned Data Centers Issuer LLC Series 2021-1A Class A2144A | | | | | | |
Auburn CLO Ltd. Series 2017-1A Class A2A (U.S. SOFR 3 Month+1.88%)144A± | | | | | | |
Avis Budget Rental Car Funding AESOP LLC Series 2023-6A Class A144A | | | | | | |
BHG Securitization Trust Series 2021-A Class B144A | | | | | | |
Blue Bridge Funding LLC Series 2023-1A Class A144A | | | | | | |
Blue Bridge Funding LLC Series 2023-1A Class B144A | | | | | | |
Bojangles Issuer LLC Series 2020-1A Class A2144A | | | | | | |
Cajun Global LLC Series 2021-1 Class A2144A | | | | | | |
Carlyle U.S. CLO Ltd. Series 2017-2A Class A2R (U.S. SOFR 3 Month+1.86%)144A± | | | | | | |
CFMT LLC Series 2021-HB7 Class M2144A±± | | | | | | |
Cologix Data Centers U.S. Issuer LLC Series 2021-1A Class B144A | | | | | | |
DataBank Issuer LLC Series 2021-1A Class B144A | | | | | | |
DataBank Issuer LLC Series 2024-1A Class A2144A | | | | | | |
DB Master Finance LLC Series 2021-1A Class A23144A | | | | | | |
Driven Brands Funding, LLC Series 2021-1A Class A2144A | | | | | | |
Dryden 78 CLO Ltd. Series 2020-78A Class A (U.S. SOFR 3 Month+1.44%)144A± | | | | | | |
ECMC Group Student Loan Trust Series 2018-1A Class A (30 Day Average U.S. SOFR+0.86%)144A± | | | | | | |
FIGRE Trust Series 2023-HE1 Class A144A | | | | | | |
FIGRE Trust Series 2023-HE3 Class A144A±± | | | | | | |
Five Guys Holdings, Inc. Series 2023-1A Class A2144A | | | | | | |
Flexential Issuer Series 2021-1A Class A2144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Managed Account | 7
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Asset-backed securities(continued) | | | | | | |
FREED Mortgage Trust Series 2022-HE1 Class B144A | | | | | | |
Golub Capital Partners ABS Funding Series 2024-1A Class A2144A♦%% | | | | | | |
Gracie Point International Funding Series 2023-1A Class B (90 Day Average U.S. SOFR+2.60%)144A± | | | | | | |
Hertz Vehicle Financing LLC Series 2021-1A Class B144A | | | | | | |
Home Partners of America Trust Series 2021-1 Class D144A | | | | | | |
Madison Park Funding XLVI Ltd. Series 2020-46A Class B1R (U.S. SOFR 3 Month+1.91%)144A± | | | | | | |
MF1 Ltd. Series 2021-FL7 Class A (U.S. SOFR 1 Month+1.19%)144A± | | | | | | |
MF1 Ltd. Series 2022-FL8 Class C (U.S. SOFR 1 Month+2.20%)144A± | | | | | | |
| | | | | | |
Neuberger Berman Loan Advisers CLO 25 Ltd. Series 2017-25A Class BR (U.S. SOFR 3 Month+1.61%)144A± | | | | | | |
Oak Street Investment Grade Net Lease Fund Series 2021-1A Class A3144A | | | | | | |
Octagon Investment Partners 30 Ltd. Series 2017-1A Class A1R (U.S. SOFR 3 Month+1.26%)144A± | | | | | | |
Octane Receivables Trust Series 2023-1A Class A144A | | | | | | |
OnDeck Asset Securitization Trust LLC Series 2021-1A Class A144A | | | | | | |
OneMain Financial Issuance Trust Series 2018-2A Class A144A | | | | | | |
Oxford Finance Credit Fund III LP Series 2024-A Class A2144A | | | | | | |
Pagaya AI Debt Selection Trust Series 2021-HG1 Class A144A | | | | | | |
Pagaya AI Debt Selection Trust Series 2023-6 Class B144A | | | | | | |
PFS Financing Corp. Series 2021-A Class A144A | | | | | | |
PFS Financing Corp. Series 2024-B Class A144A | | | | | | |
RCKT Mortgage Trust Series 2023-CES3 Class A1A144A±± | | | | | | |
Retained Vantage Data Centers Issuer LLC Series 2023-1A Class A2A144A | | | | | | |
Saluda Grade Alternative Mortgage Trust Series 2023-FIG3 Class A144A±± | | | | | | |
Service Experts Issuer LLC Series 2021-1A Class B144A | | | | | | |
ServiceMaster Funding LLC Series 2020-1 Class A2II144A | | | | | | |
Sesac Finance LLC Series 2024-1 Class A2144A | | | | | | |
Taco Bell Funding LLC Series 2021-1A Class A23144A | | | | | | |
THL Credit Wind River CLO Ltd. Series 2018-2A Class A2 (U.S. SOFR 3 Month+1.71%)144A± | | | | | | |
Towd Point HE Trust Series 2023-1 Class A1A144A | | | | | | |
Towd Point Mortgage Trust Series 2024-CES1 Class A2144A±± | | | | | | |
TRTX Issuer Ltd. Series 2022-FL5 Class A (30 Day Average U.S. SOFR+1.65%)144A± | | | | | | |
Wendy’s Funding LLC Series 2021-1A Class A2II144A | | | | | | |
Westlake Automobile Receivables Trust Series 2021-1A Class C144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
8 | Allspring Managed Account
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Asset-backed securities(continued) | | | | | | |
Wingstop Funding LLC Series 2020-1A Class A2144A | | | | | | |
Zaxby’s Funding LLC Series 2021-1A Class A2144A | | | | | | |
Total asset-backed securities (Cost $24,010,204) | | | | | | |
Corporate bonds and notes: 19.00% | | | | | | |
| | | | | | |
| | | | | | |
International Flavors & Fragrances, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Outfront Media Capital LLC/Outfront Media Capital Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
CCO Holdings LLC/CCO Holdings Capital Corp.144A | | | | | | |
Charter Communications Operating LLC/Charter Communications Operating Capital | | | | | | |
Charter Communications Operating LLC/Charter Communications Operating Capital | | | | | | |
| | | | | | |
Gray Television, Inc.144A | | | | | | |
Scripps Escrow II, Inc.144A | | | | | | |
Sirius XM Radio, Inc.144A | | | | | | |
| | | | | | |
Consumer, cyclical: 3.27% | | | | | | |
| | | | | | |
American Airlines Pass-Through Trust Series 2017-2 Class B | | | | | | |
American Airlines, Inc./AAdvantage Loyalty IP Ltd.144A | | | | | | |
Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd.144A | | | | | | |
United Airlines Pass-Through Trust Series 2023-1 Class A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Managed Account | 9
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Auto manufacturers: 0.75% | | | | | | |
| | | | | | |
Ford Motor Credit Co. LLC | | | | | | |
Nissan Motor Acceptance Co. LLC144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Warnermedia Holdings, Inc. | | | | | | |
Warnermedia Holdings, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Taylor Morrison Communities, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Macy’s Retail Holdings LLC144A | | | | | | |
NMG Holding Co., Inc./Neiman Marcus Group LLC144A | | | | | | |
PetSmart, Inc./PetSmart Finance Corp.144A | | | | | | |
| | | | | | |
Consumer, non-cyclical: 1.65% | | | | | | |
| | | | | | |
Philip Morris International, Inc. | | | | | | |
Commercial services: 1.09% | | | | | | |
Allied Universal Holdco LLC/Allied Universal Finance Corp.144A | | | | | | |
| | | | | | |
MPH Acquisition Holdings LLC144A | | | | | | |
PECF USS Intermediate Holding III Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Smithfield Foods, Inc.144A | | | | | | |
Healthcare-products: 0.09% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Managed Account
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
Energy Transfer LP (5 Year Treasury Constant Maturity+4.02%)± | | | | | | |
Harvest Midstream I LP144A | | | | | | |
Prairie Acquiror LP144A%% | | | | | | |
Rockies Express Pipeline LLC144A | | | | | | |
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp.144A | | | | | | |
Venture Global LNG, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Morgan Stanley (U.S. SOFR+1.36%)± | | | | | | |
Santander Holdings USA, Inc. (U.S. SOFR+3.28%)± | | | | | | |
U.S. Bancorp (U.S. SOFR+2.26%)± | | | | | | |
Wells Fargo & Co. (U.S. SOFR+1.32%)± | | | | | | |
| | | | | | |
Diversified financial services: 1.77% | | | | | | |
| | | | | | |
Blackstone Holdings Finance Co. LLC144A | | | | | | |
Charles Schwab Corp. Series I (5 Year Treasury Constant Maturity+3.17%)ʊ± | | | | | | |
| | | | | | |
Encore Capital Group, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
AssuredPartners, Inc.144A | | | | | | |
| | | | | | |
Cincinnati Financial Corp. | | | | | | |
Hill City Funding Trust144A | | | | | | |
| | | | | | |
National Life Insurance Co. (3 Month LIBOR+3.31%)144A± | | | | | | |
OneAmerica Financial Partners, Inc.144A | | | | | | |
PartnerRe Finance B LLC (5 Year Treasury Constant Maturity+3.82%)± | | | | | | |
Reinsurance Group of America, Inc. | | | | | | |
| | | | | | |
Transatlantic Holdings, Inc. | | | | | | |
| | | | | | |
| | | | | | |
Brandywine Operating Partnership LP | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Managed Account | 11
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
GLP Capital LP/GLP Financing II, Inc. | | | | | | |
Invitation Homes Operating Partnership LP | | | | | | |
| | | | | | |
Omega Healthcare Investors, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Service Properties Trust144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Building materials: 0.14% | | | | | | |
Camelot Return Merger Sub, Inc.144A | | | | | | |
Packaging & containers: 0.34% | | | | | | |
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. | | | | | | |
Clydesdale Acquisition Holdings, Inc.144A | | | | | | |
| | | | | | |
Trucking & leasing: 0.03% | | | | | | |
Fortress Transportation & Infrastructure Investors LLC144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
AthenaHealth Group, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Enel Finance America LLC144A | | | | | | |
| | | | | | |
| | | | | | |
NextEra Energy Capital Holdings, Inc. | | | | | | |
Oklahoma Gas & Electric Co. | | | | | | |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Managed Account
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Southern California Edison Co. | | | | | | |
Southern California Edison Co.%% | | | | | | |
Vistra Operations Co. LLC144A | | | | | | |
Vistra Operations Co. LLC144A | | | | | | |
Vistra Operations Co. LLC144A | | | | | | |
| | | | | | |
| | | | | | |
Southern California Gas Co. | | | | | | |
Total corporate bonds and notes (Cost $21,445,278) | | | | | | |
Foreign corporate bonds and notes: 10.18% | | | | | | |
| | | | | | |
Forest products & paper: 0.09% | | | | | | |
Ahlstrom Holding 3 OYJ144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Telecommunications: 1.65% | | | | | | |
British Telecommunications PLC (UK Gilts 5 Year+3.82%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
SES SA (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+3.19%)ʊ± | | | | | | |
| | | | | | |
Telefonaktiebolaget LM Ericsson | | | | | | |
Telefonica Europe BV (EUR Swap Annual (vs. 6 Month EURIBOR) 7 Year+3.35%)ʊ± | | | | | | |
| | | | | | |
Consumer, cyclical: 1.29% | | | | | | |
Auto manufacturers: 0.27% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Distribution/wholesale: 0.24% | | | | | | |
| | | | | | |
| | | | | | |
888 Acquisitions Ltd.144A | | | | | | |
Allwyn Entertainment Financing U.K. PLC144A | | | | | | |
Banijay Entertainment SASU144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Managed Account | 13
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Cirsa Finance International Sarl144A | | | | | | |
| | | | | | |
| | | | | | |
Consumer, non-cyclical: 0.84% | | | | | | |
| | | | | | |
BAT International Finance PLC | | | | | | |
Commercial services: 0.29% | | | | | | |
Rentokil Initial Finance BV | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Bayer AG (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+3.11%)± | | | | | | |
Bayer AG (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+3.90%)± | | | | | | |
Bayer AG (EURIBOR ICE Swap Rate 11:00am+2.65%)± | | | | | | |
| | | | | | |
| | | | | | |
Holding companies-divers: 0.25% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
BP Capital Markets PLC (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+3.52%)ʊ± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
ABN AMRO Bank NV (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+3.90%)ʊ± | | | | | | |
| | | | | | |
Banco de Sabadell SA (EURIBOR ICE Swap Rate 11:00am+2.40%)± | | | | | | |
BPER Banca (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+4.08%)± | | | | | | |
CaixaBank SA (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+3.55%)± | | | | | | |
Credit Agricole SA (EURIBOR ICE Swap Rate 11:00am+4.44%)ʊ± | | | | | | |
Deutsche Bank AG (3 Month EURIBOR+2.95%)± | | | | | | |
KBC Group NV (EURIBOR ICE Swap Rate 11:00am+4.93%)ʊ± | | | | | | |
Nordea Bank Abp (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+3.00%)ʊ± | | | | | | |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Managed Account
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Nykredit Realkredit AS (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+4.57%)ʊ± | | | | | | |
UBS Group AG (EURIBOR ICE Swap Rate 11:00am+4.95%)± | | | | | | |
| | | | | | |
| | | | | | |
Assicurazioni Generali SpA | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Engineering & construction: 0.24% | | | | | | |
| | | | | | |
Environmental control: 0.26% | | | | | | |
| | | | | | |
Packaging & containers: 0.34% | | | | | | |
Canpack SA/Canpack U.S. LLC144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Enel Finance International NV | | | | | | |
Energia Group Roi Financeco DAC144A | | | | | | |
| | | | | | |
Vattenfall AB (UK Gilts 5 Year+1.90%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Thames Water Utilities Finance PLC | | | | | | |
Total foreign corporate bonds and notes (Cost $11,750,383) | | | | | | |
Foreign government bonds: 7.35% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Managed Account | 15
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total foreign government bonds (Cost $8,345,527) | | | | | | |
| | | | | |
Investment companies: 0.34% | | | | | | |
Exchange-traded funds: 0.34% | | | | | | |
SPDR Portfolio High Yield Bond ETF | | | | | | |
Total investment companies (Cost $369,983) | | | | | | |
| | | | | |
| | | | | | |
Consumer, cyclical: 0.42% | | | | | | |
| | | | | | |
American Airlines, Inc. (U.S. SOFR 3 Month+4.75%)± | | | | | | |
| | | | | | |
Petco Health & Wellness Co., Inc. (U.S. SOFR 3 Month+3.25%)± | | | | | | |
Consumer, non-cyclical: 0.21% | | | | | | |
Commercial services: 0.21% | | | | | | |
MPH Acquisition Holdings LLC (U.S. SOFR 3 Month+4.25%)± | | | | | | |
| | | | | | |
| | | | | | |
Prairie ECI Acquiror LP (U.S. SOFR 3 Month+4.75%)± | | | | | | |
| | | | | | |
| | | | | | |
Asurion LLC (U.S. SOFR 1 Month+3.25%)± | | | | | | |
Total loans (Cost $1,040,474) | | | | | | |
Non-agency mortgage-backed securities: 9.16% | | | | | | |
Bank Series 2022-BNK44 Class A5±± | | | | | | |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Managed Account
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Non-agency mortgage-backed securities(continued) | | | | | | |
Benchmark Mortgage Trust Series 2022-B33 Class A5 | | | | | | |
Benchmark Mortgage Trust Series 2022-B35 Class A5±± | | | | | | |
BMO Mortgage Trust Series 2023-C4 Class A5±± | | | | | | |
BX Commercial Mortgage Trust Series 2023-VLT3 Class B (U.S. SOFR 1 Month+2.69%)144A± | | | | | | |
BX Trust Series 2019-OC11 Class A144A | | | | | | |
BX Trust Series 2021-ARIA Class D (U.S. SOFR 1 Month+2.01%)144A± | | | | | | |
BX Trust Series 2022-CLS Class C144A | | | | | | |
BX Trust Series 2024-BIO Class C (U.S. SOFR 1 Month+2.64%)144A± | | | | | | |
Cascade Funding Mortgage Trust Series 2018-RM2 Class B144A±± | | | | | | |
CHNGE Mortgage Trust Series 2023-4 Class A1144A | | | | | | |
FREMF Mortgage Trust Series 2019-KF70 Class B (30 Day Average U.S. SOFR+2.41%)144A± | | | | | | |
Imperial Fund Mortgage Trust Series 2021-NQM1 Class A1144A±± | | | | | | |
Imperial Fund Mortgage Trust Series 2021-NQM2 Class A2144A±± | | | | | | |
JP Morgan Mortgage Trust Series 2020-1 Class A15144A±± | | | | | | |
JPMBB Commercial Mortgage Securities Trust Series 2013-C15 Class D144A±± | | | | | | |
MFA Trust Series 2020-NQM3 Class M1144A±± | | | | | | |
MFA Trust Series 2021-NQM1 Class A1144A±± | | | | | | |
New Residential Mortgage Loan Trust Series 2022-NQM1 Class A1144A±± | | | | | | |
OBX Trust Series 2022-NQM7 Class A1144A | | | | | | |
OPG Trust Series 2021-PORT Class B (U.S. SOFR 1 Month+0.83%)144A± | | | | | | |
ORL Trust Series 2023-GLKS Class A (U.S. SOFR 1 Month+2.35%)144A± | | | | | | |
Residential Mortgage Loan Trust Series 2019-3 Class A3144A±± | | | | | | |
SG Residential Mortgage Trust Series 2021-1 Class A2144A±± | | | | | | |
Starwood Mortgage Residential Trust Series 2020-INV1 Class A1144A±± | | | | | | |
Towd Point Mortgage Trust Series 2019-HY3 Class A2 (U.S. SOFR 1 Month+1.41%)144A± | | | | | | |
Towd Point Mortgage Trust Series 2020-4 Class A2144A | | | | | | |
Verus Securitization Trust Series 2021-R3 Class A1144A±± | | | | | | |
Verus Securitization Trust Series 2021-R3 Class A2144A±± | | | | | | |
Total non-agency mortgage-backed securities (Cost $10,552,324) | | | | | | |
U.S. Treasury securities: 18.11% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Managed Account | 17
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
U.S. Treasury securities(continued) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total U.S. Treasury securities (Cost $20,528,302) | | | | | | |
Yankee corporate bonds and notes: 8.26% | | | | | | |
| | | | | | |
| | | | | | |
Braskem Netherlands Finance BV144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Telecommunications: 0.69% | | | | | | |
| | | | | | |
Rogers Communications, Inc. | | | | | | |
| | | | | | |
| | | | | | |
Consumer, cyclical: 0.63% | | | | | | |
| | | | | | |
VistaJet Malta Finance PLC/Vista Management Holding, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Royal Caribbean Cruises Ltd.144A | | | | | | |
Royal Caribbean Cruises Ltd.144A%% | | | | | | |
| | | | | | |
Consumer, non-cyclical: 0.45% | | | | | | |
| | | | | | |
Pfizer Investment Enterprises Pte. Ltd. | | | | | | |
Teva Pharmaceutical Finance Netherlands III BV | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Enbridge, Inc. (5 Year Treasury Constant Maturity+4.42%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Banco Industrial SA (5 Year Treasury Constant Maturity+4.44%)144A± | | | | | | |
Banco Mercantil del Norte SA (5 Year Treasury Constant Maturity+4.64%)144Aʊ± | | | | | | |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Managed Account
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Barclays PLC (U.S. SOFR+2.22%)± | | | | | | |
BBVA Bancomer SA (5 Year Treasury Constant Maturity+4.31%)144A± | | | | | | |
BNP Paribas SA (5 Year Treasury Constant Maturity+3.73%)144Aʊ± | | | | | | |
Danske Bank AS (1 Year Treasury Constant Maturity+1.40%)144A±%% | | | | | | |
| | | | | | |
Lloyds Banking Group PLC (5 Year Treasury Constant Maturity+4.82%)ʊ± | | | | | | |
Macquarie Bank Ltd. (5 Year Treasury Constant Maturity+1.70%)144A± | | | | | | |
National Australia Bank Ltd. (5 Year Treasury Constant Maturity+1.70%)144A± | | | | | | |
UBS Group AG (5 Year Treasury Constant Maturity+3.40%)144Aʊ± | | | | | | |
Unicredit SpA (5 Year Treasury Constant Maturity+4.75%)144A± | | | | | | |
| | | | | | |
Diversified financial services: 0.43% | | | | | | |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust | | | | | | |
| | | | | | |
Unifin Financiera SAB de CV144A† | | | | | | |
| | | | | | |
| | | | | | |
Allianz SE (5 Year Treasury Constant Maturity+3.23%)144A± | | | | | | |
RenaissanceRe Holdings Ltd. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Brookfield Finance, Inc.%% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Comision Federal de Electricidad144A | | | | | | |
Comision Federal de Electricidad144A | | | | | | |
| | | | | | |
Total yankee corporate bonds and notes (Cost $9,502,710) | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Managed Account | 19
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Yankee government bonds: 2.37% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Dominican Republic: 0.30% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total yankee government bonds (Cost $2,719,341) | | | | | | |
| | | | | |
Short-term investments: 1.38% | | | | | | |
Investment companies: 1.38% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞## | | | | | | |
Total short-term investments (Cost $1,564,264) | | | | | | |
Total investments in securities (Cost $127,472,646) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Managed Account
Portfolio of investments—February 29, 2024 (unaudited)
| The security is purchased on a when-issued basis. |
| The security is issued in zero coupon form with no periodic interest payments. |
| The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
| The coupon of the security is adjusted based on the principal and/or interest payments received from the underlying pool of mortgages as well as the credit quality and the actual prepayment speed of the underlying mortgages. The rate shown is the rate in effect at period end. |
| Variable rate investment. The rate shown is the rate in effect at period end. |
| The security is fair valued in accordance with procedures approved by the Board of Trustees. |
| Security is valued using significant unobservable inputs. |
| Security is perpetual in nature and has no stated maturity date. The date shown reflects the next call date. |
| All or a portion of this security is segregated as collateral 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. |
|
| |
| |
| |
| Euro Interbank Offered Rate |
| |
| Federal National Mortgage Association |
| |
| Government National Mortgage Association |
| London Interbank Offered Rate |
| |
| Real estate investment trust |
| Secured Overnight Financing Rate |
| Separate trading of registered interest and principal securities |
| Tennessee Valley 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:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
Forward foreign currency contracts
The accompanying notes are an integral part of these financial statements.
Allspring Managed Account | 21
Portfolio of investments—February 29, 2024 (unaudited)
Forward foreign currency contracts (continued)
Futures contracts
| | | | | | |
| | | | | | |
10-Year U.S. Treasury Notes | | | | | | |
Ultra Long Term U.S. Treasury Bond | | | | | | |
2-Year U.S. Treasury Notes | | | | | | |
5-Year U.S. Treasury Notes | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Ultra 10-Year U.S. Treasury Notes | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
22 | Allspring Managed Account
Statement of assets and liabilities—February 29, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $125,908,382) | |
Investments in affiliated securities, at value (cost $1,564,264) | |
| |
Cash at broker segregated for futures contracts | |
Foreign currency, at value (cost $451,682) | |
Receivable for investments sold | |
| |
Receivable for Fund shares sold | |
Unrealized gains on forward foreign currency contracts | |
Receivable for daily variation margin on open futures contracts | |
| |
Prepaid expenses and other assets | |
| |
| |
Payable for when-issued transactions | |
Payable for investments purchased | |
Payable for Fund shares redeemed | |
| |
Payable for daily variation margin on open futures contracts | |
Unrealized losses on forward foreign currency contracts | |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
| |
| |
Computation of net asset value per share | |
| |
| |
Net asset value per share | |
1 The Fund has an unlimited number of authorized shares.
The accompanying notes are an integral part of these financial statements.
Allspring Managed Account | 23
Statement of operations—six months ended February 29, 2024 (unaudited)
Statement of operations
| |
Interest (net of foreign withholding taxes of $618) | |
Income from affiliated securities | |
| |
| |
| |
Custody and accounting fees | |
| |
| |
Shareholder report expenses | |
Trustees’ fees and expenses | |
| |
| |
Less: Fee waivers and/or expense reimbursements | |
| |
| |
Realized and unrealized gains (losses) on investments | |
Net realized gains (losses) on | |
| |
Foreign currency and foreign currency translations | |
Forward foreign currency contracts | |
| |
| |
Net realized losses on investments | |
Net change in unrealized gains (losses) on | |
| |
Foreign currency and foreign currency translations | |
Forward foreign currency contracts | |
| |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
24 | Allspring Managed Account
Statement of changes in net assets
Statement of changes in net assets
|
Six months ended
February 29, 2024 (unaudited) | Year ended August 31, 2023 |
| | | | |
| | | | |
Net realized losses on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to shareholders from | | | | |
Net investment income and net realized gains | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
Reinvestment of distributions | | | | |
Payment for shares redeemed | | | | |
Net increase in net assets resulting from capital share transactions | | | | |
Total increase in net assets | | | | |
| | | | |
| | | | |
| | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Managed Account | 25
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | |
Net asset value, beginning of period | | | | |
| | | | |
Net realized and unrealized gains (losses) on investments | | | | |
Total from investment operations | | | | |
Distributions to shareholders from | | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
Net asset value, end of period | | | | |
| | | | |
Ratios to average net assets (annualized) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net assets, end of period (000s omitted) | | | | |
| For the period from June 2, 2021 (commencement of operations) to August 31, 2021 |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
| The manager has contractually committed to irrevocably absorb and pay or reimburse all ordinary operating expenses of the Fund, except portfolio transactions or other investment-related costs (e.g., commissions), fees payable for services provided by the Fund’s securities lending agent (if any), interest, taxes, leverage expenses, and other expenses not incurred in the ordinary course of the Fund’s business. This commitment has an indefinite term. |
The accompanying notes are an integral part of these financial statements.
26 | Allspring Managed Account
Notes to financial statements (unaudited)
Notes to financial statements
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 Managed Account CoreBuilder Shares - Series CP (the “Fund”) which is a diversified series of the Trust.
The Fund is a special purpose fund intended to be used in combination with selected individual securities to effectively model institutional-level investment strategies. The Fund is intended to help enable certain separately managed account investors to achieve greater diversification than smaller managed accounts might otherwise achieve.
2.
SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Debt securities are valued at the evaluated bid price provided by an independent pricing service (e.g. taking into account various factors, including yields, maturities, or credit ratings) or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Equity securities, exchange-traded funds and futures contracts that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee at Allspring Funds Management, LLC (“Allspring Funds Management”).
Forward foreign currency contracts are recorded at the forward rate provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee at 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 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.
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
Allspring Managed Account | 27
Notes to financial statements (unaudited)
when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Loans
The Fund may invest in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When the Fund purchases participations, it generally has no rights to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund assumes the credit risk of both the borrower and the lender that is selling the participation. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan and may enforce compliance by the borrower with the terms of the loan agreement. Loans may include fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding. Unfunded loan commitments represent the remaining obligation of the Fund to the borrower. At any point in time, up to the maturity date of the issue, the borrower may demand the unfunded portion. Unfunded amounts, if any, are marked to market and any unrealized gains or losses are recorded in the Statement of Assets and Liabilities.
Forward foreign currency contracts
A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on forward foreign currency contracts. The Fund is subject to foreign currency risk and may be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund’s maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the counterparty.
Futures contracts
Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at a specified price 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 contracts, 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.
Swap contracts
Swap contracts are agreements between the Fund and a counterparty to exchange a series of cash flows over a specified period. Swap agreements are privately negotiated contracts between the Fund that are entered into as bilateral contracts in the over-the-counter market or centrally cleared (“centrally cleared swaps”) with a central clearinghouse.
The Fund entered into centrally cleared swaps. In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP. Upon entering into a centrally cleared swap, the Fund is required to deposit an initial margin with the broker in the form of cash or securities. Securities deposited as initial margin are designated in the Portfolio of Investments and cash deposited is shown as cash segregated for centrally cleared swaps in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). The variation margin is recorded as an unrealized gain (or loss) and shown as daily variation margin receivable (or payable) on centrally cleared swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty are recorded as realized gains (losses) in the Statement of Operations when the contract is closed.
Credit default swaps
The Fund may enter into credit default swaps for hedging or speculative purposes to provide or receive a measure of protection against default on a referenced entity, obligation or index or a basket of single-name issuers or traded indexes. An index credit default swap references all the names in the index, and if a credit event is triggered, the credit event is settled based on that name’s weight in the index. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the protection seller in consideration for a promise from the protection
28 | Allspring Managed Account
Notes to financial statements (unaudited)
seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring).
The Fund may enter into credit default swaps as either the seller of protection or the buyer of protection. If the Fund is the buyer of protection and a credit event occurs, the Fund will either receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. If the Fund is the seller of protection and a credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.
As the seller of protection, the Fund is subject to investment exposure on the notional amount of the swap and has assumed the risk of default of the underlying security or index. As the buyer of protection, the Fund could be exposed to risks if the seller of the protection defaults on its obligation to perform, or if there are unfavorable changes in the fluctuation of interest rates.
By entering into credit default swap contracts, the Fund is exposed to credit risk. In addition, certain credit default swap contracts entered into by the Fund provide for conditions that result in events of default or termination that enable the counterparty to the agreement to cause an early termination of the transactions under those agreements.
Mortgage dollar roll transactions
The Fund may engage in mortgage dollar roll transactions through TBA mortgage-backed securities issued by Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). In a mortgage dollar roll transaction, the Fund sells a mortgage-backed security to a financial institution, such as a bank or broker-dealer and simultaneously agrees to repurchase a substantially similar security from the institution at a later date at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different pre-payment histories. During the roll period, the Fund foregoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future purchase as well as by the earnings on the cash proceeds of the initial sale. Mortgage dollar rolls may be renewed without physical delivery of the securities subject to the contract. The Fund accounts for TBA dollar roll transactions as purchases and sales which, as a result, may increase its portfolio turnover rate.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status. Interest income is recorded net of foreign taxes withheld where recovery of such taxes is not assured. Paydown gains and losses are included in interest income.
Interest earned on cash balances held at the custodian is recorded as interest income.
Income dividends and capital gain distributions from investment companies are recorded on the ex-dividend date. Capital gain distributions from investment companies are treated as realized gains.
Distributions to shareholders
Distributions to shareholders are recorded on the ex-dividend date and paid from net investment income monthly and any net realized gains are paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the period since commencement of operations 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 Managed Account | 29
Notes to financial statements (unaudited)
As of February 29, 2024, the aggregate cost of all investments for federal income tax purposes was $127,512,162 and the unrealized gains (losses) consisted of:
As of August 31, 2023, the Fund had capital loss carryforwards which consisted of $1,339,077 in short-term capital losses and $1,644,880 in long-term capital losses.
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 February 29, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
Corporate bonds and notes | | | | |
Foreign corporate bonds and notes | | | | |
| | | | |
| | | | |
| | | | |
Non-agency mortgage-backed securities | | | | |
| | | | |
Yankee corporate bonds and notes | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Forward foreign currency contracts | | | | |
| | | | |
| | | | |
|
Forward foreign currency contracts | | | | |
| | | | |
| | | | |
Futures contracts and forward foreign currency contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the tables following the Portfolio of Investments. For futures contracts, 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.
30 | Allspring Managed Account
Notes to financial statements (unaudited)
At February 29, 2024, the Fund did not have any transfers into/out of Level 3.
4.
TRANSACTIONS WITH AFFILIATES
The Trust has entered into an investment management contract with 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. The manager is responsible for implementing investment policies and guidelines and for supervising the subadviser, who is responsible for day-to-day portfolio management of the Fund. For providing these services, Allspring Funds Management does not receive a fee from the Fund but is entitled to receive fees from separately managed account sponsors of the wrap-fee programs. Out of these fees, Allspring Funds Management pays Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, for its services as the subadviser to the Fund.
Generally, no ordinary operating fees or expenses are charged to the Fund. Allspring Funds Management has contractually committed to irrevocably absorb and pay or reimburse all ordinary operating expenses of the Fund, except portfolio transactions or other investment-related costs (e.g., commissions), fees payable for services provided by the Fund’s securities lending agent (if any), interest, taxes, leverage expenses, and other expenses not incurred in the ordinary course of the Fund’s business. This commitment has an indefinite term.
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 did not have any interfund transactions during the six months ended February 29, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six months ended February 29, 2024 were as follows:
6.
DERIVATIVE TRANSACTIONS
During the six months ended February 29, 2024, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio. The Fund also entered into forward foreign currency contracts for economic hedging purposes and entered into swap contracts to hedge risks and/or enhance total returns.
The volume of the Fund’s derivative activity during the six months ended February 29, 2024 was as follows:
Forward foreign currency contracts | |
Average contract amounts to buy | |
Average contract amounts to sell | |
| |
Average notional balance on long futures | |
Average notional balance on short futures | |
| |
| |
A summary of the location of derivative instruments on the financial statements by primary risk exposure is outlined in the following tables.
Allspring Managed Account | 31
Notes to financial statements (unaudited)
The fair value of derivative instruments as of February 29, 2024 by primary risk type was as follows for the Fund:
| | | |
|
Forward foreign currency contracts | | | |
| | | |
| | | |
|
Forward foreign currency contracts | | | |
| | | |
| | | |
| Amount represents the cumulative unrealized gains (losses) as reported in the table following the Portfolio of Investments. For futures contracts, only the current day’s variation margin as of February 29, 2024 is reported separately on the Statement of Assets and Liabilities. |
The effect of derivative instruments on the Statement of Operations for the six months ended February 29, 2024 was as follows:
| | | | |
Net realized gains (losses) on derivatives |
Forward foreign currency contracts | | | | |
| | | | |
| | | | |
| | | | |
Net change in unrealized gains (losses) on derivatives |
Forward foreign currency contracts | | | | |
| | | | |
| | | | |
For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by counterparty, including any collateral exposure, for OTC derivatives is as follows:
| Gross amounts
of assets in the
Statement of
Assets and
Liabilities | Amounts
subject to
netting
agreements | | |
| | | | |
| | | | |
| Gross amounts
of liabilities in the
Statement of
Assets and
Liabilities | Amounts
subject to
netting
agreements | | |
| | | | |
| | | | |
32 | Allspring Managed Account
Notes to financial statements (unaudited)
Concentration risk exists when a shareholder owns a large amount of shares of the Fund. A fund with a concentration of ownership may be more affected by the investment activity of those shareholders than would be a fund that does not have any ownership concentration. As of February 29, 2024, Allspring Funds Management or one of its affiliates owned 21% of the Fund.
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 Managed Account | 33
Other information (unaudited)
Other information
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. Shareholder may view the filed Form N-PORT by visiting the SEC website at sec.gov.
34 | Allspring Managed Account
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 100 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 Information†. 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
| | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | | 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. Serves on the Investment Company Institute’s Board of Governors since 2022 and Executive Committee since 2023 as well as the Vice Chairman of the Governing Council of the Independent Directors Council since 2023. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Foundation (non-profit organization). Mr. Ebsworth is a CFA charterholder. | |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
| 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. | |
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). | |
David F. Larcker
(Born 1950) | | 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. | |
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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
†
The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-877-9275 or by visiting the website at allspringglobal.com.
Allspring Managed Account | 35
Other information (unaudited)
| Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
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. | |
James G. Polisson
(Born 1959) | | 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. | |
Pamela Wheelock
(Born 1959) | Trustee,
since January 2020;
previously Trustee from
January 2018 to
| 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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
36 | Allspring Managed Account
Other information (unaudited)
Officers1
| Position held and
length of service | Principal occupations during past five years or longer |
| | 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 Managed Account | 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
Attn: Managed Account Services
P.O. Box 1450
Milwaukee, WI 53201
Website: allspringglobal.com
Telephone: 1-888-877-9275
This report and the financial statements contained herein are submitted for the general information of the shareholder 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 1-888-877-9275 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.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-03052024-ylz2xabn 04-24
SAR4903 02-24
Allspring Conservative Income Fund
Semi-Annual Report
February 29, 2024
The views expressed and any forward-looking statements are as of February 29, 2024, 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 Conservative Income Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Conservative Income Fund for the six-month period that ended February 29, 2024. Globally, stocks and bonds generally had positive returns for the period. However, markets were volatile as investors focused on persistently high inflation and the impact of aggressive central bank rate hikes. Riskier assets rallied as investors anticipated an end to the tight monetary policy.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 13.93%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 gained 7.90% while the MSCI EM Index (Net) (USD),3 returned 4.93%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 2.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 gained 1.96%, the Bloomberg Municipal Bond Index6 returned 4.33%, and the ICE BofA U.S. High Yield Index7 gained 6.15%.
Investors remained focused on central bank monetary policies.
As the six-month period began, stocks and bonds both had negative overall returns in September as investors were disappointed by the Federal Reserve’s (Fed’s) determination not to lower interest rates until it has confidence that it has tamed persistently high inflation. As of September, the two primary gauges of U.S. inflation—the annual Core Personal Consumption Expenditures Price Index8 and the Consumer Price Index (CPI)9—both stood at roughly 4%, twice as high as the Fed’s oft-stated 2% target. The month ended with the prospect of yet another U.S. government shutdown, averted at least temporarily but looming later in the year.
October was a tough month for financial markets overall. Key global and domestic indexes all were pushed down by rising geopolitical tensions—particularly the Israel-Hamas conflict—and concerns over the Fed’s “higher for longer” monetary policy. The U.S. 10-year Treasury yield rose above 5% for the first time since 2007. Commodity prices did well as oil prices rallied in response to the prospect of oil supply disruptions from the Middle East. U.S. annualized third quarter gross domestic product (GDP) was estimated at a healthier-than-anticipated 4.9%. China’s GDP indicated surprisingly strong industrial production and retail sales, offset by ongoing weakness in its real estate sector.
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. Returns shown are net of transaction costs beginning on July 1, 2022. You cannot invest directly in an index. Copyright 2024. ICE Data Indices, LLC. All rights reserved.
8
The Core Personal Consumption Expenditures Price Index (PCE) is a measure of prices that people living in the United States, or those buying on their behalf, pay for goods and services. It is sometimes called the core PCE price index, because two categories that can have price swings – food and energy – are left out to make underlying inflation easier to see. You cannot invest directly in an index.
9
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index.
2 | Allspring Conservative Income Fund
Letter to shareholders (unaudited)
“ In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. ”
In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. Overall annual inflation in the U.S. fell to 3.1% in November while 12-month inflation in the U.K. and eurozone eased to 4.6% and 2.4%, respectively—far below their peak levels of mid-2022. Third quarter annualized U.S. GDP growth was raised to an estimated 5.2% while U.S. job totals rose by just below 200,000 in November, indicating a slight cooling of the labor market. All of this fresh evidence added to confidence for a U.S. soft economic landing, leading to a more buoyant mood heading into winter as the Federal Open Market Committee held rates steady at its December meeting.
The broad year-end rally among stocks and bonds that began in November continued through December as investors became more confident that monetary policy would ease in 2024. Supporting the bubbly market mood were a series of reports confirming lower inflationary trends in the U.S. and Europe. During the period, it appeared more likely that the U.S. economy could achieve a soft landing, cooling enough to lower inflation without the pain of a recession. However, by year-end, an expectations gap developed. Capital markets priced in a total of 1.50 percentage points in federal funds rate cuts in 2024, twice as much as the three cuts of 0.25% hinted at by Fed officials.
Financial market performance was mixed in January 2024 as U.S. stocks had modest gains while non-U.S. equities, particularly those in emerging markets, and fixed income assets were held back by central banker pushback on market optimism over rate cuts. Overall, optimism was supported by indications of a soft landing for the U.S. economy. Key data included a surprisingly strong gain of 353,000 jobs in January, an unemployment rate of just 3.7%, and a rise of just 3.1% in the CPI in January. However, that resilience helped push back expectations of a rate cut in March to a more likely second quarter initial move.
In February, stocks were supported by positive economic data and strong corporate earnings. However, fixed income investments were under pressure as resilient inflation led to lowered expectations on the timing of interest rate cuts. The S&P 500 Index had solid monthly gains along with emerging market equities, which benefited from a rebound in China.
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 a wide variety of mutual funds spanning many asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
Allspring Conservative Income Fund | 3
Letter to shareholders (unaudited)
|
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. |
4 | Allspring Conservative Income Fund
This page is intentionally left blank.
Performance highlights (unaudited)
Performance highlights
| The Fund seeks current income consistent with capital preservation. |
| Allspring Funds Management, LLC |
| Allspring Global Investments, LLC |
| Andrew M. Greenberg, CFA, Anthony J. Melville, CFA, Jeffrey L. Weaver, CFA |
Average annual total returns (%) as of February 29, 2024 |
| | | | | |
| | | | | | |
| | | | | | |
Institutional Class (WCIIX) | | | | | | |
Bloomberg U.S. Aggregate Bond Index4 | | | | | | |
Bloomberg 6-9 Month Treasury Bill Index5 | | | | | | |
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. 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 A2 and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
|
| 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. |
| The manager has contractually committed through December 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.40% for Class A2 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. |
| Historical performance shown for the Class A2 shares prior to their inception reflects the performance of the Institutional Class shares, adjusted to reflect the higher expenses applicable to the Class A2 shares. |
| 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. |
| The Bloomberg 6-9 Month Treasury Bill Index includes all publicly issued zero-coupon U.S. Treasury bills that have a remaining maturity of less than nine months and more than six, are rated investment-grade, and have $250 million or more of outstanding face value. 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 foreign investment risk, mortgage-and asset-backed securities risk, and municipal 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 Conservative Income Fund
Performance highlights (unaudited)
Ten largest holdings (%) as of February 29, 20241 |
Capital One Prime Auto Receivables Trust, 5.20%, 5-15-2026 | |
Bank of America NA, 5.65%, 8-18-2025 | |
Morgan Stanley Bank NA, 5.48%, 7-16-2025 | |
Mercedes-Benz Finance North America LLC, 0.75%, 3-1-2024 | |
American Honda Finance Corp., 4.60%, 4-17-2025 | |
Banque Federative du Credit Mutuel SA, 2.38%, 11-21-2024 | |
JPMorgan Chase & Co., 3.85%, 6-14-2025 | |
Skandinaviska Enskilda Banken AB, 0.65%, 9-9-2024 | |
Bank of Montreal, 1.85%, 5-1-2025 | |
Citibank NA, 5.86%, 9-29-2025 | |
| Figures represent the percentage of the Fund’s net assets. Holdings are subject to change and may have changed since the date specified. |
Portfolio composition as of February 29, 20241 |
| Figures represent the percentage of the Fund’s long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Conservative Income Fund | 7
Fund expenses (unaudited)
Fund expenses
As a shareholder of the Fund, you incur ongoing costs including management fees, shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from September 1, 2023 to February 29, 2024.
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
9-1-2023 | Ending
account value
2-29-2024 | | Annualized net
expense ratio |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by 182 divided by 366 (to reflect the one-half-year period). |
8 | Allspring Conservative Income Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
GNMA Series 2023-H13 Class BA±± | | | | | | |
Total agency securities (Cost $3,217,607) | | | | | | |
Asset-backed securities: 30.25% | | | | | | |
AmeriCredit Automobile Receivables Trust Series 2022-2 Class A2A | | | | | | |
BMW Vehicle Lease Trust Series 2022-1 Class A3 | | | | | | |
BMW Vehicle Lease Trust Series 2023-1 Class A3 | | | | | | |
BMW Vehicle Lease Trust Series 2023-1 Class A2 | | | | | | |
Capital One Prime Auto Receivables Trust Series 2023-1 Class A2 | | | | | | |
CARDS II Trust Series 2021-1A Class A144A | | | | | | |
CarMax Auto Owner Trust Series 2020-4 Class A3 | | | | | | |
CarMax Auto Owner Trust Series 2021-4 Class A3 | | | | | | |
Carvana Auto Receivables Trust Series 2022-P3 Class A2 | | | | | | |
Chase Auto Owner Trust Series 2022-AA Class A2144A | | | | | | |
Chase Auto Owner Trust Series 2023-AA Class A2144A | | | | | | |
Chesapeake Funding II LLC Series 2020-1A Class A1144A | | | | | | |
Daimler Trucks Retail Trust Series 2022-1 Class A2 | | | | | | |
Donlen Fleet Lease Funding 2 LLC Series 2021-2 Class A1 (U.S. SOFR 1 Month+0.44%)144A± | | | | | | |
Enterprise Fleet Financing LLC Series 2024-1 Class A2144A | | | | | | |
Evergreen Credit Card Trust Series 2021-1 Class A144A | | | | | | |
Evergreen Credit Card Trust Series 2022-CRT1 Class B144A | | | | | | |
Evergreen Credit Card Trust Series 2022-CRT2 Class B144A | | | | | | |
Ford Credit Auto Lease Trust Series 2024-A Class A3 | | | | | | |
Ford Credit Auto Owner Trust Series 2022-C Class A2A | | | | | | |
GM Financial Automobile Leasing Trust Series 2022-3 Class A4 | | | | | | |
GM Financial Automobile Leasing Trust Series 2023-1 Class A2A | | | | | | |
Honda Auto Receivables Owner Trust Series 2021-3 Class A3 | | | | | | |
Honda Auto Receivables Owner Trust Series 2021-4 Class A4 | | | | | | |
Honda Auto Receivables Owner Trust Series 2023-1 Class A2 | | | | | | |
Hyundai Auto Lease Securitization Trust Series 2022-A Class A3144A | | | | | | |
Hyundai Auto Receivables Trust Series 2023-A Class A2A | | | | | | |
John Deere Owner Trust Series 2022-B Class A2 | | | | | | |
John Deere Owner Trust Series 2022-C Class A2 | | | | | | |
Mercedes-Benz Auto Lease Trust Series 2023-A Class A2 | | | | | | |
Mercedes-Benz Auto Receivables Trust Series 2022-1 Class A2 | | | | | | |
Nissan Auto Lease Trust Series 2022-A Class A3 | | | | | | |
Nissan Auto Receivables Owner Trust Series 2023-A Class A2A | | | | | | |
Porsche Financial Auto Securitization Trust Series 2023-1A Class A2144A | | | | | | |
Porsche Financial Auto Securitization Trust Series 2023-2A Class A2A144A | | | | | | |
SBNA Auto Lease Trust Series 2023-A Class A2144A | | | | | | |
SBNA Auto Lease Trust Series 2023-A Class A3144A | | | | | | |
Tesla Auto Lease Trust Series 2023-A Class A3144A | | | | | | |
Toyota Auto Receivables Owner Trust Series 2023-A Class A2 | | | | | | |
Toyota Lease Owner Trust Series 2023-A Class A2144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Conservative Income Fund | 9
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Asset-backed securities(continued) | | | | | | |
Venture XXV CLO Ltd. Series 2016-25A Class ARR (U.S. SOFR 3 Month+1.28%)144A± | | | | | | |
Verizon Master Trust Series 2024-1 Class A1A | | | | | | |
World Omni Auto Receivables Trust 2022-D Series 2022-D Class A3 | | | | | | |
World Omni Automobile Lease Securitization Trust Series 2023-A Class A2A | | | | | | |
Total asset-backed securities (Cost $44,898,072) | | | | | | |
Corporate bonds and notes: 39.44% | | | | | | |
| | | | | | |
Forest products & paper: 1.84% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Consumer, cyclical: 7.31% | | | | | | |
Auto manufacturers: 7.31% | | | | | | |
American Honda Finance Corp. Series A | | | | | | |
| | | | | | |
Daimler Truck Finance North America LLC144A | | | | | | |
Hyundai Capital America144A | | | | | | |
Hyundai Capital America144A | | | | | | |
Mercedes-Benz Finance North America LLC144A | | | | | | |
| | | | | | |
Consumer, non-cyclical: 4.66% | | | | | | |
| | | | | | |
| | | | | | |
Philip Morris International, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Bank of New York Mellon Corp. | | | | | | |
Bank of New York Mellon (U.S. SOFR+0.80%)± | | | | | | |
| | | | | | |
JPMorgan Chase & Co. (U.S. SOFR+0.98%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Conservative Income Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Athene Global Funding (U.S. SOFR+0.70%)144A± | | | | | | |
Brighthouse Financial Global Funding (U.S. SOFR+0.76%)144A± | | | | | | |
GA Global Funding Trust (U.S. SOFR+1.36%)144A± | | | | | | |
New York Life Global Funding144A | | | | | | |
Principal Life Global Funding II144A | | | | | | |
Principal Life Global Funding II (U.S. SOFR+0.38%)144A± | | | | | | |
Protective Life Global Funding144A | | | | | | |
| | | | | | |
| | | | | | |
Public Storage Operating Co. (U.S. SOFR+0.47%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Trucking & leasing: 0.78% | | | | | | |
Penske Truck Leasing Co. LP/PTL Finance Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
Hewlett Packard Enterprise Co. | | | | | | |
| | | | | | |
| | | | | | |
CenterPoint Energy, Inc. (U.S. SOFR+0.65%)± | | | | | | |
NextEra Energy Capital Holdings, Inc. | | | | | | |
NextEra Energy Capital Holdings, Inc. | | | | | | |
| | | | | | |
Total corporate bonds and notes (Cost $58,359,031) | | | | | | |
Yankee corporate bonds and notes: 26.37% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Banque Federative du Credit Mutuel SA144A | | | | | | |
Canadian Imperial Bank of Commerce | | | | | | |
Commonwealth Bank of Australia | | | | | | |
| | | | | | |
Federation des Caisses Desjardins du Quebec (U.S. SOFR+0.43%)144A± | | | | | | |
Mitsubishi UFJ Financial Group, Inc. (1 Year Treasury Constant Maturity+1.55%)± | | | | | | |
National Australia Bank Ltd. | | | | | | |
NatWest Markets PLC (U.S. SOFR+0.53%)144A± | | | | | | |
| | | | | | |
| | | | | | |
Skandinaviska Enskilda Banken AB144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Conservative Income Fund | 11
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Sumitomo Mitsui Trust Bank Ltd. (U.S. SOFR+0.44%)144A± | | | | | | |
| | | | | | |
| | | | | | |
UBS AG (U.S. SOFR+0.45%)144A± | | | | | | |
| | | | | | |
Westpac Banking Corp. (U.S. SOFR+0.30%)± | | | | | | |
| | | | | | |
| | | | | | |
Nationwide Building Society144A | | | | | | |
Nationwide Building Society144A | | | | | | |
| | | | | | |
Total yankee corporate bonds and notes (Cost $39,017,941) | | | | | | |
| | | | | |
Short-term investments: 1.89% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total short-term investments (Cost $2,800,424) | | | | | | |
Total investments in securities (Cost $148,293,075) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| The coupon of the security is adjusted based on the principal and/or interest payments received from the underlying pool of mortgages as well as the credit quality and the actual prepayment speed of the underlying mortgages. The rate shown is the rate in effect at period end. |
| The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
| Variable rate investment. The rate shown is the rate in effect at period end. |
|
| Government National Mortgage Association |
| Secured Overnight Financing Rate |
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Conservative Income Fund
Statement of assets and liabilities—February 29, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $148,293,075) | |
| |
| |
Prepaid expenses and other assets | |
| |
| |
Payable for investments purchased | |
| |
Payable for Fund shares redeemed | |
Administration fees payable | |
| |
Trustees’ fees and expenses payable | |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
| |
| |
Computation of net asset value per share | |
| |
Shares outstanding–Class A21 | |
Net asset value per share–Class A2 | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
1 The Fund has an unlimited number of authorized shares.
The accompanying notes are an integral part of these financial statements.
Allspring Conservative Income Fund | 13
Statement of operations—six months ended February 29, 2024 (unaudited)
Statement of operations
| |
| |
Income from affiliated securities | |
| |
| |
| |
| |
| |
| |
Shareholder servicing fees | |
| |
Custody and accounting fees | |
| |
| |
Shareholder report expenses | |
Trustees’ fees and expenses | |
| |
| |
Less: Fee waivers and/or expense reimbursements | |
| |
| |
| |
| |
Realized and unrealized gains (losses) on investments | |
Net realized losses on investments | |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Conservative Income Fund
Statement of changes in net assets
Statement of changes in net assets
|
Six months ended
February 29, 2024 (unaudited) | Year ended August 31, 2023 |
| | | | |
| | | | |
Net realized losses on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to shareholders from | | | | |
Net investment income and net realized gains | | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
| | | | |
| | | | |
| | | | |
Reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
Payment for shares redeemed | | | | |
| | | | |
| | | | |
| | | | |
Net decrease in net assets resulting from capital share transactions | | | | |
Total decrease in net assets | | | | |
| | | | |
| | | | |
| | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Conservative Income Fund | 15
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | |
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gains (losses) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from | | | | | |
| | | | | |
Tax basis return of capital | | | | | |
Total distributions to shareholders | | | | | |
Net asset value, end of period | | | | | |
| | | | | |
Ratios to average net assets (annualized) | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000s omitted) | | | | | |
| For the period from May 29, 2020 (commencement of class operations) to August 31, 2020 |
| Calculated based upon average shares outstanding |
| Amount is less than $0.005. |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Conservative Income Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Tax basis return of capital | | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Amount is less than $0.005. |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Conservative Income Fund | 17
Notes to financial statements (unaudited)
Notes to financial statements
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 Conservative 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 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. Paydown gains and losses are included in interest income.
Interest earned on cash balances held at the custodian is recorded as interest income.
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.
18 | Allspring Conservative Income Fund
Notes to financial statements (unaudited)
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 February 29, 2024, the aggregate cost of all investments for federal income tax purposes was $148,345,401 and the unrealized gains (losses) consisted of:
As of August 31, 2023, the Fund had capital loss carryforwards which consisted of $5,535,905 in short-term capital losses and $1,114,171 in long-term capital losses.
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 February 29, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
Corporate bonds and notes | | | | |
Yankee corporate bonds and notes | | | | |
| | | | |
| | | | |
| | | | |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
At February 29, 2024, 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 Conservative Income Fund | 19
Notes to financial statements (unaudited)
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:
For the six months ended February 29, 2024, 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 0.10% and declining to 0.05% as the average daily net assets of the Fund increase.
Administration fees
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
| Class-level
administration fee |
| |
| |
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 December 31, 2024 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. As of February 29, 2024, the contractual caps are as follows:
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby��Class A2 shares is 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 did not have any interfund transactions during the six months ended February 29, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended February 29, 2024 were $54,554,479 and $50,362,757, respectively.
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
20 | Allspring Conservative Income Fund
Notes to financial statements (unaudited)
requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended February 29, 2024, there were no borrowings by the Fund under the agreement.
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 Conservative Income Fund | 21
Other information (unaudited)
Other information
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.
22 | Allspring Conservative 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 100 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 Information†. 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
| | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | | 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. Serves on the Investment Company Institute’s Board of Governors since 2022 and Executive Committee since 2023 as well as the Vice Chairman of the Governing Council of the Independent Directors Council since 2023. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Foundation (non-profit organization). Mr. Ebsworth is a CFA charterholder. | |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
| 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. | |
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). | |
David F. Larcker
(Born 1950) | | 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. | |
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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
†
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 Conservative Income Fund | 23
Other information (unaudited)
| Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
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. | |
James G. Polisson
(Born 1959) | | 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. | |
Pamela Wheelock
(Born 1959) | Trustee,
since January 2020;
previously Trustee from
January 2018 to
| 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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
24 | Allspring Conservative Income Fund
Other information (unaudited)
Officers1
| Position held and
length of service | Principal occupations during past five years or longer |
| | 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 Conservative Income Fund | 25
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-03052024-a8ms7lf3 04-24
SAR3174 02-24
Allspring Government Securities Fund
Semi-Annual Report
February 29, 2024
The views expressed and any forward-looking statements are as of February 29, 2024, 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 Government Securities Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Government Securities Fund for the six-month period that ended February 29, 2024. Globally, stocks and bonds generally had positive returns for the period. However, markets were volatile as investors focused on persistently high inflation and the impact of aggressive central bank rate hikes. Riskier assets rallied as investors anticipated an end to the tight monetary policy.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 13.93%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 gained 7.90% while the MSCI EM Index (Net) (USD),3 returned 4.93%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 2.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 gained 1.96%, the Bloomberg Municipal Bond Index6 returned 4.33%, and the ICE BofA U.S. High Yield Index7 gained 6.15%.
Investors remained focused on central bank monetary policies.
As the six-month period began, stocks and bonds both had negative overall returns in September as investors were disappointed by the Federal Reserve’s (Fed’s) determination not to lower interest rates until it has confidence that it has tamed persistently high inflation. As of September, the two primary gauges of U.S. inflation—the annual Core Personal Consumption Expenditures Price Index8 and the Consumer Price Index (CPI)9—both stood at roughly 4%, twice as high as the Fed’s oft-stated 2% target. The month ended with the prospect of yet another U.S. government shutdown, averted at least temporarily but looming later in the year.
October was a tough month for financial markets overall. Key global and domestic indexes all were pushed down by rising geopolitical tensions—particularly the Israel-Hamas conflict—and concerns over the Fed’s “higher for longer” monetary policy. The U.S. 10-year Treasury yield rose above 5% for the first time since 2007. Commodity prices did well as oil prices rallied in response to the prospect of oil supply disruptions from the Middle East. U.S. annualized third quarter gross domestic product (GDP) was estimated at a healthier-than-anticipated 4.9%. China’s GDP indicated surprisingly strong industrial production and retail sales, offset by ongoing weakness in its real estate sector.
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. Returns shown are net of transaction costs beginning on July 1, 2022. You cannot invest directly in an index. Copyright 2024. ICE Data Indices, LLC. All rights reserved.
8
The Core Personal Consumption Expenditures Price Index (PCE) is a measure of prices that people living in the United States, or those buying on their behalf, pay for goods and services. It is sometimes called the core PCE price index, because two categories that can have price swings – food and energy – are left out to make underlying inflation easier to see. You cannot invest directly in an index.
9
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index.
2 | Allspring Government Securities Fund
Letter to shareholders (unaudited)
“ In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. ”
In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. Overall annual inflation in the U.S. fell to 3.1% in November while 12-month inflation in the U.K. and eurozone eased to 4.6% and 2.4%, respectively—far below their peak levels of mid-2022. Third quarter annualized U.S. GDP growth was raised to an estimated 5.2% while U.S. job totals rose by just below 200,000 in November, indicating a slight cooling of the labor market. All of this fresh evidence added to confidence for a U.S. soft economic landing, leading to a more buoyant mood heading into winter as the Federal Open Market Committee held rates steady at its December meeting.
The broad year-end rally among stocks and bonds that began in November continued through December as investors became more confident that monetary policy would ease in 2024. Supporting the bubbly market mood were a series of reports confirming lower inflationary trends in the U.S. and Europe. During the period, it appeared more likely that the U.S. economy could achieve a soft landing, cooling enough to lower inflation without the pain of a recession. However, by year-end, an expectations gap developed. Capital markets priced in a total of 1.50 percentage points in federal funds rate cuts in 2024, twice as much as the three cuts of 0.25% hinted at by Fed officials.
Financial market performance was mixed in January 2024 as U.S. stocks had modest gains while non-U.S. equities, particularly those in emerging markets, and fixed income assets were held back by central banker pushback on market optimism over rate cuts. Overall, optimism was supported by indications of a soft landing for the U.S. economy. Key data included a surprisingly strong gain of 353,000 jobs in January, an unemployment rate of just 3.7%, and a rise of just 3.1% in the CPI in January. However, that resilience helped push back expectations of a rate cut in March to a more likely second quarter initial move.
In February, stocks were supported by positive economic data and strong corporate earnings. However, fixed income investments were under pressure as resilient inflation led to lowered expectations on the timing of interest rate cuts. The S&P 500 Index had solid monthly gains along with emerging market equities, which benefited from a rebound in China.
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 a wide variety of mutual funds spanning many asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
Allspring Government Securities Fund | 3
Letter to shareholders (unaudited)
|
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. |
4 | Allspring Government Securities Fund
This page is intentionally left blank.
Performance highlights (unaudited)
Performance highlights
| The Fund seeks current income. |
| Allspring Funds Management, LLC |
| Allspring Global Investments, LLC |
| Christopher Y. Kauffman, CFA, Michal Stanczyk |
Average annual total returns (%) as of February 29, 2024 |
| | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Administrator Class (WGSDX) | | | | | | | | | |
Institutional Class (SGVIX) | | | | | | | | | |
Bloomberg U.S. Aggregate Bond Index3 | | | | | | | | | |
Bloomberg U.S. Aggregate ex Credit | | | | | | | | | |
Bloomberg U.S. Government Intermediate | | | | | | | | | |
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.
|
| 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. |
| The manager has contractually committed through December 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.84% for Class A, 1.59% for Class C, 0.64% 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. |
| 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. |
| The Bloomberg U.S. Aggregate ex Credit Index is composed of the Bloomberg U.S. Government Index and the Bloomberg U.S. Mortgage-Backed Securities Index and includes Treasury issues, agency issues, and mortgage-backed securities. You cannot invest directly in an index. |
| The Bloomberg U.S. Government Intermediate Bond Index is an unmanaged index composed of U.S. government securities with maturities in the 1- to 10-year range, including securities issued by the U.S. Treasury and U.S. government agencies. 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. Securities issued by U.S. government agencies or government-sponsored entities may not be guaranteed by the U.S. Treasury. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to mortgage- and asset-backed securities risk. The U.S. government guarantee applies to certain underlying securities and not to shares of the Fund. 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 Government Securities Fund
Performance highlights (unaudited)
Ten largest holdings (%) as of February 29, 20241 |
| |
U.S. Treasury Notes, 4.25%, 1-31-2026 | |
Resolution Funding Corp. Principal STRIPS, 0.00%, 1-15-2030 | |
| |
| |
Private Export Funding Corp., 0.55%, 7-30-2024 | |
| |
| |
| |
| |
| Figures represent the percentage of the Fund’s net assets. Holdings are subject to change and may have changed since the date specified. |
Portfolio composition as of February 29, 20241 |
| Figures represent the percentage of the Fund’s long positions. Allocations are subject to change and may have changed since the date specified. |
Allspring Government Securities Fund | 7
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 September 1, 2023 to February 29, 2024.
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
9-1-2023 | Ending
account value
2-29-2024 | | Annualized net
expense ratio |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by 182 divided by 366 (to reflect the one-half-year period). |
8 | Allspring Government Securities Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities: 70.09% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FHLMC Multifamily Structured Pass-Through Certificates Series K039 Class A2 | | | | | | |
FHLMC Multifamily Structured Pass-Through Certificates Series K075 Class A2±± | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Government Securities Fund | 9
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
FHLMC Multifamily Structured Pass-Through Certificates Series K153 Class A3±± | | | | | | |
FHLMC Multifamily Structured Pass-Through Certificates Series KF80 Class AS (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FHLMC Multifamily Structured Pass-Through Certificates Series KIR2 Class A1 | | | | | | |
FHLMC Multifamily Structured Pass-Through Certificates Series KW03 Class A1 | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-15 Class A6 (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-35 Class A (30 Day Average U.S. SOFR+0.39%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-42 Class A6 | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-55 Class 2A1±± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-56 Class A4 | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-57 Class 2A1±± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-57 Class 1A1 | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-62 Class 1A1 (12 Month Treasury Average+1.20%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-67 Class 1A1C±± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-67 Class 2A1C±± | | | | | | |
FHLMC Whole Loan Securities Trust Series 2015-SC01 Class 1A | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.13%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.16%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (11th District COFI+1.25%)± | | | | | | |
FHLMC (3 Year Treasury Constant Maturity+2.09%)± | | | | | | |
FHLMC (30 Day Average U.S. SOFR+0.26%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FHLMC Series 2733 Class FB (30 Day Average U.S. SOFR+0.71%)± | | | | | | |
FHLMC Series 3070 Class FT (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 3614 Class QB | | | | | | |
FHLMC Series 3830 Class FD (30 Day Average U.S. SOFR+0.47%)± | | | | | | |
FHLMC Series 4057 Class FN (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 4068 Class FK (30 Day Average U.S. SOFR+0.41%)± | | | | | | |
FHLMC Series 4093 Class FB (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FHLMC Series 4159 Class AF (30 Day Average U.S. SOFR+1.29%)± | | | | | | |
FHLMC Series 4218 Class DF (30 Day Average U.S. SOFR+0.36%)± | | | | | | |
FHLMC Series 4409 Class MA | | | | | | |
FHLMC Series 4620 Class AF (30 Day Average U.S. SOFR+0.55%)± | | | | | | |
FHLMC Series 5198 Class FB (30 Day Average U.S. SOFR+0.25%)± | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Government Securities Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Government Securities Fund | 11
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.19%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.20%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.20%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.21%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.22%)± | | | | | | |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Government Securities Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.24%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.24%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.42%)± | | | | | | |
FNMA (11th District COFI+1.25%)± | | | | | | |
FNMA (11th District COFI+1.26%)± | | | | | | |
FNMA (11th District COFI+1.29%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FNMA Series 2000-T6 Class A2 | | | | | | |
FNMA Series 2001-T10 Class A3 | | | | | | |
FNMA Series 2001-T12 Class A3 | | | | | | |
FNMA Series 2002-5 Class F (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FNMA Series 2002-T1 Class A3 | | | | | | |
FNMA Series 2002-T12 Class A5±± | | | | | | |
FNMA Series 2002-T16 Class A1 | | | | | | |
FNMA Series 2002-T19 Class A1 | | | | | | |
FNMA Series 2002-W4 Class A4 | | | | | | |
FNMA Series 2003-T2 Class A1 (30 Day Average U.S. SOFR+0.39%)± | | | | | | |
FNMA Series 2003-W1 Class 1A1±± | | | | | | |
FNMA Series 2003-W11 Class A1±± | | | | | | |
FNMA Series 2003-W3 Class 1A4±± | | | | | | |
FNMA Series 2003-W5 Class A (1 Month LIBOR+0.11%)± | | | | | | |
FNMA Series 2003-W6 Class 6A±± | | | | | | |
FNMA Series 2003-W6 Class PT4±± | | | | | | |
FNMA Series 2003-W8 Class PT1±± | | | | | | |
FNMA Series 2003-W9 Class A (30 Day Average U.S. SOFR+0.23%)± | | | | | | |
FNMA Series 2004-T1 Class 1A2 | | | | | | |
FNMA Series 2004-W1 Class 2A2 | | | | | | |
FNMA Series 2004-W15 Class 1A3 | | | | | | |
FNMA Series 2005-71 Class DB | | | | | | |
FNMA Series 2006-50 Class BF (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2007-101 Class A2 (30 Day Average U.S. SOFR+0.36%)± | | | | | | |
FNMA Series 2007-W10 Class 2A±± | | | | | | |
FNMA Series 2008-17 Class DP | | | | | | |
FNMA Series 2010-136 Class FA (30 Day Average U.S. SOFR+0.61%)± | | | | | | |
FNMA Series 2011-110 Class FE (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2011-128 Class FK (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FNMA Series 2013-114 Class LM | | | | | | |
FNMA Series 2014-17 Class FE (30 Day Average U.S. SOFR+0.66%)± | | | | | | |
FNMA Series 2014-20 Class TM±± | | | | | | |
FNMA Series 2017-M2 Class A2±± | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Government Securities Fund | 13
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
FNMA Series 2018-M1 Class A2±± | | | | | | |
FNMA Series 2018-M13 Class A2±± | | | | | | |
FNMA Series 2019-M5 Class A2 | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
GNMA Series 2005-23 Class IOƒ±± | | | | | | |
GNMA Series 2006-32 Class XMƒ±± | | | | | | |
GNMA Series 2008-22 Class XMƒ±± | | | | | | |
GNMA Series 2010-158 Class EIƒ | | | | | | |
GNMA Series 2012-H12 Class HD | | | | | | |
GNMA Series 2018-H01 Class BF (U.S. SOFR 1 Month+0.51%)± | | | | | | |
GNMA Series 2019-H06 Class HIƒ±± | | | | | | |
Resolution Funding Corp. Principal STRIPS¤ | | | | | | |
Resolution Funding Corp. Principal STRIPS¤ | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
U.S. International Development Finance Corp. Series AA-1¤ | | | | | | |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Government Securities Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
Vendee Mortgage Trust Series 1995-1 Class 4±± | | | | | | |
Vendee Mortgage Trust Series 1995-2C Class 3A | | | | | | |
Total agency securities (Cost $379,546,903) | | | | | | |
Asset-backed securities: 0.64% | | | | | | |
FirstKey Homes Trust Series 2021-SFR1 Class A144A | | | | | | |
Navient Student Loan Trust Series 2019-2A Class A2 (30 Day Average U.S. SOFR+1.11%)144A± | | | | | | |
Total asset-backed securities (Cost $3,334,770) | | | | | | |
Corporate bonds and notes: 4.05% | | | | | | |
Consumer, non-cyclical: 0.51% | | | | | | |
Commercial services: 0.51% | | | | | | |
Rockefeller Foundation Series 2020 | | | | | | |
| | | | | | |
Diversified financial services: 2.29% | | | | | | |
GTP Acquisition Partners I LLC Series 2015-2 Class A144A | | | | | | |
Private Export Funding Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
American Tower Trust #1144A | | | | | | |
Government securities: 0.49% | | | | | | |
| | | | | | |
Inter-American Development Bank | | | | | | |
International Bank for Reconstruction & Development Series C¤ | | | | | | |
| | | | | | |
Total corporate bonds and notes (Cost $22,344,889) | | | | | | |
Non-agency mortgage-backed securities: 5.17% | | | | | | |
Angel Oak Mortgage Trust Series 2020-4 Class A1144A±± | | | | | | |
Arroyo Mortgage Trust Series 2019-1 Class A1144A±± | | | | | | |
Benchmark Mortgage Trust Series 2018-B1 Class A4 | | | | | | |
Benchmark Mortgage Trust Series 2019-B9 Class A5 | | | | | | |
BRAVO Residential Funding Trust Series 2020-RPL1 Class A1144A±± | | | | | | |
BX Trust Series 2019-OC11 Class A144A | | | | | | |
CD Mortgage Trust Series 2017-CD6 Class A5 | | | | | | |
GCAT Trust Series 2022-HX1 Class A1144A±± | | | | | | |
GS Mortgage Securities Trust Series 2014-GC24 Class A4 | | | | | | |
JPMBB Commercial Mortgage Securities Trust Series 2015-C28 Class A4 | | | | | | |
Legacy Mortgage Asset Trust Series 2020-RPL1 Class A1144A±± | | | | | | |
New Residential Mortgage Loan Trust Series 2020-NQM2 Class A1144A±± | | | | | | |
Starwood Mortgage Residential Trust Series 2021-6 Class A1144A±± | | | | | | |
Towd Point Mortgage Trust Series 2015-2 Class 1M2144A±± | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Government Securities Fund | 15
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Non-agency mortgage-backed securities(continued) | | | | | | |
UBS Commercial Mortgage Trust Series 2017-C5 Class A5 | | | | | | |
Verus Securitization Trust Series 2021-R3 Class A1144A±± | | | | | | |
Total non-agency mortgage-backed securities (Cost $28,108,068) | | | | | | |
U.S. Treasury securities: 12.28% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
U.S. Treasury Principal STRIPS¤ | | | | | | |
| | | | | | |
Total U.S. Treasury securities (Cost $64,935,753) | | | | | | |
| | | | | |
Short-term investments: 10.09% | | | | | | |
Investment companies: 2.01% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞## | | | | | | |
| | | | | |
U.S. Treasury securities: 8.08% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total short-term investments (Cost $50,508,467) | | | | | | |
Total investments in securities (Cost $548,778,850) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| 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 coupon of the security is adjusted based on the principal and/or interest payments received from the underlying pool of mortgages as well as the credit quality and the actual prepayment speed of the underlying mortgages. The rate shown is the rate in effect at period end. |
| The security is purchased on a when-issued basis. |
| Investment in an interest-only security that entitles holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. The rate represents the coupon rate. |
| 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. |
| All or a portion of this security is segregated as collateral 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. |
| Zero coupon security. The rate represents the current yield to maturity. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Government Securities Fund
Portfolio of investments—February 29, 2024 (unaudited)
|
| |
| Federal Home Loan Mortgage Corporation |
| Federal National Mortgage Association |
| Government National Mortgage Association |
| London Interbank Offered Rate |
| Real estate investment trust |
| Refinitiv USD IBOR Consumer Cash Fallbacks Term 1-year |
| Secured Overnight Financing Rate |
| Separate trading of registered interest and principal securities |
| Tennessee Valley 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:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
Futures contracts
| | | | | | |
| | | | | | |
Ultra Long Term U.S. Treasury Bond | | | | | | |
2-Year U.S. Treasury Notes | | | | | | |
5-Year U.S. Treasury Notes | | | | | | |
| | | | | | |
Ultra 10-Year U.S. Treasury Notes | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Government Securities Fund | 17
Statement of assets and liabilities—February 29, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $538,695,735) | |
Investments in affiliated securities, at value (cost $10,083,115) | |
| |
Cash at broker segregated for futures contracts | |
| |
Receivable for Fund shares sold | |
Principal paydown receivable | |
Receivable for daily variation margin on open futures contracts | |
Prepaid expenses and other assets | |
| |
| |
Payable for when-issued transactions | |
Payable for investments purchased | |
Payable for Fund shares redeemed | |
| |
| |
Administration fees payable | |
Payable for daily variation margin on open futures contracts | |
Trustees’ fees and expenses payable | |
| |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
| |
| |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Government Securities Fund
Statement of assets and liabilities—February 29, 2024 (unaudited)
Statement of assets and liabilities
Computation of net asset value and offering price per share | |
| |
Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
| |
Shares outstanding–Class C1 | |
Net asset value per share–Class C | |
Net assets–Administrator Class | |
Shares outstanding–Administrator Class1 | |
Net asset value per share–Administrator Class | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
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 Government Securities Fund | 19
Statement of operations—six months ended February 29, 2024 (unaudited)
Statement of operations
| |
| |
Income from affiliated securities | |
| |
| |
| |
| |
| |
| |
| |
| |
Shareholder servicing fees | |
| |
| |
| |
| |
| |
Custody and accounting fees | |
| |
| |
Shareholder report expenses | |
Trustees’ fees and expenses | |
| |
| |
Less: Fee waivers and/or expense reimbursements | |
| |
| |
| |
| |
| |
| |
Realized and unrealized gains (losses) on investments | |
Net realized gains (losses) on | |
| |
| |
Net realized losses on investments | |
Net change in unrealized gains (losses) on | |
| |
| |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Government Securities Fund
Statement of changes in net assets
Statement of changes in net assets
|
Six months ended
February 29, 2024 (unaudited) | Year ended August 31, 2023 |
| | | | |
| | | | |
Net realized losses on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase (decrease) in net assets resulting from operations | | | | |
Distributions to shareholders from | | | | |
Net investment income and net realized gains | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Payment for shares redeemed | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in net assets resulting from capital share transactions | | | | |
Total increase (decrease) in net assets | | | | |
| | | | |
| | | | |
| | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Government Securities Fund | 21
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Tax basis return of capital | | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| 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.
22 | Allspring Government Securities Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Tax basis return of capital | | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| 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 Government Securities Fund | 23
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Tax basis return of capital | | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
24 | Allspring Government Securities Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Tax basis return of capital | | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Government Securities Fund | 25
Notes to financial statements (unaudited)
Notes to financial statements
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Government Securities 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 contracts, 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.
Mortgage dollar roll transactions
The Fund may engage in mortgage dollar roll transactions through TBA mortgage-backed securities issued by Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). In a mortgage dollar roll transaction, the Fund sells a mortgage-backed security to a financial institution, such as a bank or broker-dealer and simultaneously agrees to repurchase a substantially similar security from the institution at a later date at an agreed upon price. The mortgage-backed securities that are
26 | Allspring Government Securities Fund
Notes to financial statements (unaudited)
repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different pre-payment histories. During the roll period, the Fund foregoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future purchase as well as by the earnings on the cash proceeds of the initial sale. Mortgage dollar rolls may be renewed without physical delivery of the securities subject to the contract. The Fund accounts for TBA dollar roll transactions as purchases and sales which, as a result, may increase its portfolio turnover rate.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status. Paydown gains and losses are included in interest income.
Interest earned on cash balances held at the custodian is recorded as interest income.
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 February 29, 2024, the aggregate cost of all investments for federal income tax purposes was $558,771,175 and the unrealized gains (losses) consisted of:
As of August 31, 2023, the Fund had capital loss carryforwards which consisted of $29,496,556 in short-term capital losses and $15,225,700 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.
Allspring Government Securities Fund | 27
Notes to financial statements (unaudited)
3.
FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
•Level 1—quoted prices in active markets for identical securities
•Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
•Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of February 29, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
Corporate bonds and notes | | | | |
Non-agency mortgage-backed securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
|
| | | | |
| | | | |
Futures contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the tables following the Portfolio of Investments. For futures contracts, 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.
At February 29, 2024, 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
28 | Allspring Government Securities Fund
Notes to financial statements (unaudited)
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:
For the six months ended February 29, 2024, the management fee was equivalent to an annual rate of 0.45% 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 |
| |
| |
| |
| |
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 December 31, 2024 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. As of February 29, 2024, the contractual caps are as follows:
Distribution fee
The Trust has adopted a distribution plan for Class C shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended February 29, 2024, Allspring Funds Distributor received $915 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended February 29, 2024.
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.
Allspring Government Securities Fund | 29
Notes to financial statements (unaudited)
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund did not have any interfund transactions during the six months ended February 29, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six months ended February 29, 2024 were as follows:
6.
DERIVATIVE TRANSACTIONS
During the six months ended February 29, 2024, the Fund entered into futures contracts to manage duration and yield curve exposures. The Fund had an average notional amount of $192,454,736 in long futures contracts and $10,951,802 in short futures contracts during the six months ended February 29, 2024.
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.
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended February 29, 2024, there were no borrowings by the Fund under the agreement.
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.
30 | Allspring Government Securities Fund
Other information (unaudited)
Other information
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 Government Securities Fund | 31
Other information (unaudited)
Board of trustees and officers
Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Allspring family of funds, which consists of 100 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 Information†. 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
| | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | | 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. Serves on the Investment Company Institute’s Board of Governors since 2022 and Executive Committee since 2023 as well as the Vice Chairman of the Governing Council of the Independent Directors Council since 2023. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Foundation (non-profit organization). Mr. Ebsworth is a CFA charterholder. | |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
| 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. | |
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). | |
David F. Larcker
(Born 1950) | | 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. | |
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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
†
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.
32 | Allspring Government Securities Fund
Other information (unaudited)
| Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
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. | |
James G. Polisson
(Born 1959) | | 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. | |
Pamela Wheelock
(Born 1959) | Trustee,
since January 2020;
previously Trustee from
January 2018 to
| 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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
Allspring Government Securities Fund | 33
Other information (unaudited)
Officers1
| Position held and
length of service | Principal occupations during past five years or longer |
| | 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.
34 | Allspring Government Securities Fund
This page is intentionally left blank.
This page is intentionally left blank.
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-03052024-aqxbayg2 04-24
SAR3004 02-24
Allspring High Yield Bond Fund
Semi-Annual Report
February 29, 2024
The views expressed and any forward-looking statements are as of February 29, 2024, 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 Bond Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring High Yield Bond Fund for the six-month period that ended February 29, 2024. Globally, stocks and bonds generally had positive returns for the period. However, markets were volatile as investors focused on persistently high inflation and the impact of aggressive central bank rate hikes. Riskier assets rallied as investors anticipated an end to the tight monetary policy.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 13.93%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 gained 7.90% while the MSCI EM Index (Net) (USD),3 returned 4.93%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 2.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 gained 1.96%, the Bloomberg Municipal Bond Index6 returned 4.33%, and the ICE BofA U.S. High Yield Index7 gained 6.15%.
Investors remained focused on central bank monetary policies.
As the six-month period began, stocks and bonds both had negative overall returns in September as investors were disappointed by the Federal Reserve’s (Fed’s) determination not to lower interest rates until it has confidence that it has tamed persistently high inflation. As of September, the two primary gauges of U.S. inflation—the annual Core Personal Consumption Expenditures Price Index8 and the Consumer Price Index (CPI)9—both stood at roughly 4%, twice as high as the Fed’s oft-stated 2% target. The month ended with the prospect of yet another U.S. government shutdown, averted at least temporarily but looming later in the year.
October was a tough month for financial markets overall. Key global and domestic indexes all were pushed down by rising geopolitical tensions—particularly the Israel-Hamas conflict—and concerns over the Fed’s “higher for longer” monetary policy. The U.S. 10-year Treasury yield rose above 5% for the first time since 2007. Commodity prices did well as oil prices rallied in response to the prospect of oil supply disruptions from the Middle East. U.S. annualized third quarter gross domestic product (GDP) was estimated at a healthier-than-anticipated 4.9%. China’s GDP indicated surprisingly strong industrial production and retail sales, offset by ongoing weakness in its real estate sector.
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. Returns shown are net of transaction costs beginning on July 1, 2022. You cannot invest directly in an index. Copyright 2024. ICE Data Indices, LLC. All rights reserved.
8
The Core Personal Consumption Expenditures Price Index (PCE) is a measure of prices that people living in the United States, or those buying on their behalf, pay for goods and services. It is sometimes called the core PCE price index, because two categories that can have price swings – food and energy – are left out to make underlying inflation easier to see. You cannot invest directly in an index.
9
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index.
2 | Allspring High Yield Bond Fund
Letter to shareholders (unaudited)
“ In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. ”
In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. Overall annual inflation in the U.S. fell to 3.1% in November while 12-month inflation in the U.K. and eurozone eased to 4.6% and 2.4%, respectively—far below their peak levels of mid-2022. Third quarter annualized U.S. GDP growth was raised to an estimated 5.2% while U.S. job totals rose by just below 200,000 in November, indicating a slight cooling of the labor market. All of this fresh evidence added to confidence for a U.S. soft economic landing, leading to a more buoyant mood heading into winter as the Federal Open Market Committee held rates steady at its December meeting.
The broad year-end rally among stocks and bonds that began in November continued through December as investors became more confident that monetary policy would ease in 2024. Supporting the bubbly market mood were a series of reports confirming lower inflationary trends in the U.S. and Europe. During the period, it appeared more likely that the U.S. economy could achieve a soft landing, cooling enough to lower inflation without the pain of a recession. However, by year-end, an expectations gap developed. Capital markets priced in a total of 1.50 percentage points in federal funds rate cuts in 2024, twice as much as the three cuts of 0.25% hinted at by Fed officials.
Financial market performance was mixed in January 2024 as U.S. stocks had modest gains while non-U.S. equities, particularly those in emerging markets, and fixed income assets were held back by central banker pushback on market optimism over rate cuts. Overall, optimism was supported by indications of a soft landing for the U.S. economy. Key data included a surprisingly strong gain of 353,000 jobs in January, an unemployment rate of just 3.7%, and a rise of just 3.1% in the CPI in January. However, that resilience helped push back expectations of a rate cut in March to a more likely second quarter initial move.
In February, stocks were supported by positive economic data and strong corporate earnings. However, fixed income investments were under pressure as resilient inflation led to lowered expectations on the timing of interest rate cuts. The S&P 500 Index had solid monthly gains along with emerging market equities, which benefited from a rebound in China.
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 a wide variety of mutual funds spanning many asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
Allspring High Yield Bond Fund | 3
Letter to shareholders (unaudited)
|
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. |
4 | Allspring High Yield Bond Fund
This page is intentionally left blank.
Performance highlights (unaudited)
Performance highlights
| The Fund seeks total return, consisting of a high level of current income and capital appreciation. |
| Allspring Funds Management, LLC |
| Allspring Global Investments, LLC |
| Chris Lee, CFA, Michael J. Schueller, CFA |
Average annual total returns (%) as of February 29, 2024 |
| | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Administrator Class (EKHYX) | | | | | | | | | |
Institutional Class (EKHIX)3 | | | | | | | | | |
Bloomberg U.S. Universal Bond Index4 | | | | | | | | | |
ICE BofA U.S. High Yield Constrained | | | | | | | | | |
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.
|
| 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. |
| The manager has contractually committed through December 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.92% for Class A, 1.67% for Class C, 0.80% for Administrator Class and 0.53% 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. |
| 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. |
| The Bloomberg U.S. Universal Bond Index is an unmanaged market-value-weighted performance benchmark for the U.S.-dollar-denominated bond market, which includes investment-grade, high-yield, and emerging markets debt securities with maturities of one year or more. You cannot invest directly in an index. |
| The ICE BofA U.S. High Yield Constrained Index is a market-value-weighted index of all domestic and Yankee high-yield bonds, including deferred interest bonds and payment-in-kind securities. Issues included in the index have maturities of one year or more and have a credit rating lower than BBB-/Baa3 but are not in default. The ICE BofA U.S. High Yield Constrained Index limits any individual issuer to a maximum of 2% benchmark exposure. Returns shown are net of transaction costs beginning on July 1, 2022. You cannot invest directly in an index. Copyright 2024. ICE Data Indices, LLC. All rights reserved. |
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. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. Loans are subject to risks similar to those associated with other below-investment-grade bond investments, such as credit risk (for example, risk of issuer default), below-investment grade bond risk (for example, risk of greater volatility in value), and risk that the loan may become illiquid or difficult to price. This fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring High Yield Bond Fund
Performance highlights (unaudited)
Ten largest holdings (%) as of February 29, 20241 |
Geo Group, Inc., 12.20%, 3-23-2027 | |
CoreCivic, Inc., 8.25%, 4-15-2026 | |
Match Group Holdings II LLC, 5.63%, 2-15-2029 | |
CCO Holdings LLC/CCO Holdings Capital Corp., 4.25%, 1-15-2034 | |
CCM Merger, Inc., 6.38%, 5-1-2026 | |
GIP III Stetson I LP, 9.68%, 10-31-2028 | |
Iron Mountain, Inc., 4.50%, 2-15-2031 | |
Sirius XM Radio, Inc., 4.13%, 7-1-2030 | |
Pattern Energy Operations LP/Pattern Energy Operations, Inc., 4.50%, 8-15-2028 | |
PG&E Corp., 5.25%, 7-1-2030 | |
| Figures represent the percentage of the Fund’s net assets. Holdings are subject to change and may have changed since the date specified. |
Credit quality as of February 29, 20241 |
| 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. |
Allspring High Yield Bond Fund | 7
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 September 1, 2023 to February 29, 2024.
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
9-1-2023 | Ending
account value
2-29-2024 | | Annualized net
expense ratio |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by 182 divided by 366 (to reflect the one-half-year period). |
8 | Allspring High Yield Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Corporate bonds and notes: 76.18% | | | | | | |
| | | | | | |
| | | | | | |
SCIH Salt Holdings, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Clear Channel Outdoor Holdings, Inc.144A | | | | | | |
Clear Channel Outdoor Holdings, Inc.144A | | | | | | |
Outfront Media Capital LLC/Outfront Media Capital Corp.144A | | | | | | |
Outfront Media Capital LLC/Outfront Media Capital Corp.144A | | | | | | |
Outfront Media Capital LLC/Outfront Media Capital Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Cablevision Lightpath LLC144A | | | | | | |
Cablevision Lightpath LLC144A | | | | | | |
Match Group Holdings II LLC144A | | | | | | |
Uber Technologies, Inc.144A | | | | | | |
Uber Technologies, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
CCO Holdings LLC/CCO Holdings Capital Corp.144A | | | | | | |
CCO Holdings LLC/CCO Holdings Capital Corp.144A | | | | | | |
CCO Holdings LLC/CCO Holdings Capital Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Directv Financing LLC/Directv Financing Co-Obligor, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Scripps Escrow II, Inc.144A | | | | | | |
Sirius XM Radio, Inc.144A | | | | | | |
Townsquare Media, Inc.144A | | | | | | |
| | | | | | |
Telecommunications: 0.19% | | | | | | |
| | | | | | |
Consumer, cyclical: 13.59% | | | | | | |
| | | | | | |
Hawaiian Airlines Pass-Through Certificates Series 2013-1 Class A | | | | | | |
Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd.144A | | | | | | |
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd.144A | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Bond Fund | 9
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Auto manufacturers: 0.33% | | | | | | |
| | | | | | |
Auto parts & equipment: 0.24% | | | | | | |
Adient Global Holdings Ltd.144A | | | | | | |
Distribution/wholesale: 0.45% | | | | | | |
G-III Apparel Group Ltd.144A | | | | | | |
| | | | | | |
| | | | | | |
Churchill Downs, Inc.144A | | | | | | |
Churchill Downs, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Live Nation Entertainment, Inc.144A | | | | | | |
Live Nation Entertainment, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Taylor Morrison Communities, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Carnival Holdings Bermuda Ltd.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Bath & Body Works, Inc.144A | | | | | | |
Dave & Buster’s, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
LSF9 Atlantis Holdings LLC/Victra Finance Corp.144A | | | | | | |
Macy’s Retail Holdings LLC144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
10 | Allspring High Yield Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Macy’s Retail Holdings LLC144A | | | | | | |
| | | | | | |
NMG Holding Co., Inc./Neiman Marcus Group LLC144A | | | | | | |
PetSmart, Inc./PetSmart Finance Corp.144A | | | | | | |
PetSmart, Inc./PetSmart Finance Corp.144A | | | | | | |
Raising Cane’s Restaurants LLC144A | | | | | | |
Sally Holdings LLC/Sally Capital, Inc. | | | | | | |
| | | | | | |
Consumer, non-cyclical: 10.94% | | | | | | |
Commercial services: 5.26% | | | | | | |
Allied Universal Holdco LLC144A | | | | | | |
Allied Universal Holdco LLC/Allied Universal Finance Corp.144A | | | | | | |
Allied Universal Holdco LLC/Allied Universal Finance Corp.144A | | | | | | |
| | | | | | |
MPH Acquisition Holdings LLC144A | | | | | | |
PECF USS Intermediate Holding III Corp.144A | | | | | | |
Prime Security Services Borrower LLC/Prime Finance, Inc.144A | | | | | | |
| | | | | | |
Sotheby’s/Bidfair Holdings, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Healthcare-services: 4.40% | | | | | | |
Catalent Pharma Solutions, Inc.144A | | | | | | |
CHS/Community Health Systems, Inc.144A | | | | | | |
CHS/Community Health Systems, Inc.144A | | | | | | |
CHS/Community Health Systems, Inc.144A | | | | | | |
| | | | | | |
ModivCare Escrow Issuer, Inc.144A | | | | | | |
Pediatrix Medical Group, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Tenet Healthcare Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Bond Fund | 11
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Energy-alternate sources: 1.51% | | | | | | |
Enviva Partners LP/Enviva Partners Finance Corp.144A | | | | | | |
TerraForm Power Operating LLC144A | | | | | | |
| | | | | | |
| | | | | | |
Aethon United BR LP/Aethon United Finance Corp.144A | | | | | | |
Encino Acquisition Partners Holdings LLC144A | | | | | | |
Hilcorp Energy I LP/Hilcorp Finance Co.144A | | | | | | |
Hilcorp Energy I LP/Hilcorp Finance Co.144A | | | | | | |
Hilcorp Energy I LP/Hilcorp Finance Co.144A | | | | | | |
Hilcorp Energy I LP/Hilcorp Finance Co.144A | | | | | | |
Hilcorp Energy I LP/Hilcorp Finance Co.144A | | | | | | |
Nabors Industries Ltd.144A | | | | | | |
Nabors Industries, Inc.144A | | | | | | |
Nabors Industries, Inc.144A | | | | | | |
Talos Production, Inc.144A | | | | | | |
| | | | | | |
Oil & gas services: 1.71% | | | | | | |
| | | | | | |
Oceaneering International, Inc. | | | | | | |
| | | | | | |
| | | | | | |
Antero Midstream Partners LP/Antero Midstream Finance Corp.144A | | | | | | |
| | | | | | |
CQP Holdco LP/BIP-V Chinook Holdco LLC144A | | | | | | |
CQP Holdco LP/BIP-V Chinook Holdco LLC144A | | | | | | |
| | | | | | |
Energy Transfer LP (5 Year Treasury Constant Maturity+4.02%)± | | | | | | |
| | | | | | |
EnLink Midstream Partners LP | | | | | | |
Harvest Midstream I LP144A | | | | | | |
Hess Midstream Operations LP144A | | | | | | |
| | | | | | |
| | | | | | |
Prairie Acquiror LP144A%% | | | | | | |
Rockies Express Pipeline LLC144A | | | | | | |
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp.144A | | | | | | |
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp.144A | | | | | | |
Venture Global Calcasieu Pass LLC144A | | | | | | |
Venture Global LNG, Inc.144A | | | | | | |
Venture Global LNG, Inc.144A | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
12 | Allspring High Yield Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
Bank of America Corp. Series JJ (U.S. SOFR 3 Month+3.55%)ʊ± | | | | | | |
Bank of America Corp. Series RR (5 Year Treasury Constant Maturity+2.76%)ʊ± | | | | | | |
Citigroup, Inc. Series X (5 Year Treasury Constant Maturity+3.42%)ʊ± | | | | | | |
JPMorgan Chase & Co. Series HH (U.S. SOFR 3 Month+3.13%)ʊ± | | | | | | |
| | | | | | |
Diversified financial services: 3.90% | | | | | | |
| | | | | | |
Nationstar Mortgage Holdings, Inc.144A | | | | | | |
Nationstar Mortgage Holdings, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Oppenheimer Holdings, Inc. | | | | | | |
| | | | | | |
Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc.144A | | | | | | |
United Wholesale Mortgage LLC144A | | | | | | |
United Wholesale Mortgage LLC144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
AssuredPartners, Inc.144A | | | | | | |
BroadStreet Partners, Inc.144A | | | | | | |
HUB International Ltd.144A | | | | | | |
HUB International Ltd.144A | | | | | | |
HUB International Ltd.144A | | | | | | |
| | | | | | |
| | | | | | |
HAT Holdings I LLC/HAT Holdings II LLC144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Service Properties Trust144A | | | | | | |
Starwood Property Trust, Inc.144A | | | | | | |
Starwood Property Trust, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Spirit AeroSystems, Inc.144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Bond Fund | 13
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Aerospace/defense(continued) | | | | | | |
Spirit AeroSystems, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Building materials: 1.47% | | | | | | |
Camelot Return Merger Sub, Inc.144A | | | | | | |
Emerald Debt Merger Sub LLC144A | | | | | | |
| | | | | | |
Hand/machine tools: 1.38% | | | | | | |
Werner FinCo LP/Werner FinCo, Inc.144A | | | | | | |
Werner FinCo LP/Werner FinCo, Inc. (PIK at 5.75%)144A¥ | | | | | | |
| | | | | | |
Machinery-diversified: 1.06% | | | | | | |
Chart Industries, Inc.144A | | | | | | |
Chart Industries, Inc.144A | | | | | | |
TK Elevator U.S. Newco, Inc.144A | | | | | | |
| | | | | | |
Packaging & containers: 1.95% | | | | | | |
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC144A | | | | | | |
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC144A | | | | | | |
Clydesdale Acquisition Holdings, Inc.144A | | | | | | |
Mauser Packaging Solutions Holding Co.144A | | | | | | |
Owens-Brockway Glass Container, Inc.144A | | | | | | |
Sealed Air Corp./Sealed Air Corp. U.S.144A | | | | | | |
| | | | | | |
Trucking & leasing: 0.88% | | | | | | |
Fortress Transportation & Infrastructure Investors LLC144A | | | | | | |
Fortress Transportation & Infrastructure Investors LLC144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
AthenaHealth Group, Inc.144A | | | | | | |
Cloud Software Group, Inc.144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
14 | Allspring High Yield Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Cloud Software Group, Inc.144A | | | | | | |
SS&C Technologies, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Edison International (5 Year Treasury Constant Maturity+3.86%)± | | | | | | |
NextEra Energy Operating Partners LP144A | | | | | | |
NextEra Energy Operating Partners LP144A | | | | | | |
NSG Holdings LLC/NSG Holdings, Inc.144A | | | | | | |
Pattern Energy Operations LP/Pattern Energy Operations, Inc.144A | | | | | | |
| | | | | | |
Sempra (5 Year Treasury Constant Maturity+2.87%)± | | | | | | |
Vistra Corp. (5 Year Treasury Constant Maturity+5.74%)144Aʊ± | | | | | | |
Vistra Operations Co. LLC144A | | | | | | |
Vistra Operations Co. LLC144A | | | | | | |
| | | | | | |
Total corporate bonds and notes (Cost $227,684,367) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Clear Channel Outdoor Holdings, Inc. (U.S. SOFR 3 Month+3.50%)± | | | | | | |
| | | | | | |
DirecTV Financing LLC (U.S. SOFR 1 Month+5.00%)± | | | | | | |
Hubbard Radio LLC (U.S. SOFR 1 Month+4.25%)± | | | | | | |
| | | | | | |
Consumer, cyclical: 1.22% | | | | | | |
| | | | | | |
Mileage Plus Holdings LLC (U.S. SOFR 3 Month+5.25%)± | | | | | | |
SkyMiles IP Ltd. (U.S. SOFR 3 Month+3.75%)± | | | | | | |
| | | | | | |
Auto parts & equipment: 0.14% | | | | | | |
First Brands Group LLC (U.S. SOFR 3 Month+5.00%)± | | | | | | |
| | | | | | |
Carnival Corp. (U.S. SOFR 1 Month+3.00%)± | | | | | | |
| | | | | | |
Petco Health & Wellness Co., Inc. (U.S. SOFR 3 Month+3.25%)± | | | | | | |
Consumer, non-cyclical: 1.87% | | | | | | |
Commercial services: 1.87% | | | | | | |
Geo Group, Inc. (U.S. SOFR 1 Month+6.88%)± | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Bond Fund | 15
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Commercial services(continued) | | | | | | |
MPH Acquisition Holdings LLC (U.S. SOFR 3 Month+4.25%)± | | | | | | |
PECF USS Intermediate Holding III Corp. (U.S. SOFR 1 Month+4.25%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
GIP III Stetson I LP (U.S. SOFR 1 Month+4.25%)± | | | | | | |
Prairie ECI Acquiror LP (U.S. SOFR 3 Month+4.75%)± | | | | | | |
| | | | | | |
| | | | | | |
Diversified financial services: 0.23% | | | | | | |
Resolute Investment Managers, Inc. (U.S. SOFR 3 Month+4.25%)ౠ| | | | | | |
| | | | | | |
Asurion LLC (U.S. SOFR 1 Month+3.25%)± | | | | | | |
Asurion LLC (U.S. SOFR 1 Month+5.25%)± | | | | | | |
| | | | | | |
Total loans (Cost $17,582,433) | | | | | | |
Yankee corporate bonds and notes: 12.80% | | | | | | |
| | | | | | |
| | | | | | |
Braskem Netherlands Finance BV144A | | | | | | |
| | | | | | |
Telecommunications: 0.54% | | | | | | |
| | | | | | |
Consumer, cyclical: 5.54% | | | | | | |
| | | | | | |
Air Canada Pass-Through Trust Series 2020-1 Class C144A | | | | | | |
VistaJet Malta Finance PLC/Vista Management Holding, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Banijay Entertainment SASU144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Royal Caribbean Cruises Ltd.144A | | | | | | |
Royal Caribbean Cruises Ltd.144A | | | | | | |
Royal Caribbean Cruises Ltd.144A%% | | | | | | |
The accompanying notes are an integral part of these financial statements.
16 | Allspring High Yield Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Royal Caribbean Cruises Ltd.144A | | | | | | |
Royal Caribbean Cruises Ltd.144A | | | | | | |
| | | | | | |
Consumer, non-cyclical: 0.37% | | | | | | |
| | | | | | |
Teva Pharmaceutical Finance Netherlands III BV | | | | | | |
| | | | | | |
| | | | | | |
Borr IHC Ltd./Borr Finance LLC144A | | | | | | |
| | | | | | |
Enbridge, Inc. (5 Year Treasury Constant Maturity+4.42%)± | | | | | | |
Northriver Midstream Finance LP144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
BBVA Bancomer SA (5 Year Treasury Constant Maturity+4.21%)144A± | | | | | | |
BNP Paribas SA (5 Year Treasury Constant Maturity+3.73%)144Aʊ± | | | | | | |
HSBC Holdings PLC (USD ICE Swap Rate 11:00am NY 5 Year+3.75%)ʊ± | | | | | | |
Intesa Sanpaolo SpA (5 Year USD Swap Rate+5.46%)144Aʊ± | | | | | | |
UBS Group AG (5 Year Treasury Constant Maturity+3.40%)144Aʊ± | | | | | | |
UBS Group AG (USD SOFR ICE Swap Rate 11:00am NY 5 Year+4.16%)144Aʊ± | | | | | | |
| | | | | | |
Diversified financial services: 1.16% | | | | | | |
Castlelake Aviation Finance DAC144A | | | | | | |
Macquarie Airfinance Holdings Ltd.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Sensata Technologies BV144A | | | | | | |
Sensata Technologies BV144A | | | | | | |
| | | | | | |
Machinery-diversified: 0.25% | | | | | | |
TK Elevator Holdco GmbH144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Bond Fund | 17
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total yankee corporate bonds and notes (Cost $36,802,582) | | | | | | |
| | | | | |
Short-term investments: 5.05% | | | | | | |
Investment companies: 5.05% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞## | | | | | | |
Total short-term investments (Cost $14,716,569) | | | | | | |
Total investments in securities (Cost $296,785,951) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
| Variable rate investment. The rate shown is the rate in effect at period end. |
| The security is purchased on a when-issued basis. |
| Security is perpetual in nature and has no stated maturity date. The date shown reflects the next call date. |
| A payment-in-kind (PIK) security is a security in which the issuer may make interest or dividend payments in cash or additional securities or a combination of both. The rate shown is the rate in effect at period end. |
| Security is valued using significant unobservable inputs. |
| The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| The rate represents the 7-day annualized yield at period end. |
| All or a portion of this security is segregated as collateral for when-issued securities. |
|
| Real estate investment trust |
| Secured Overnight Financing Rate |
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
18 | Allspring High Yield Bond Fund
Statement of assets and liabilities—February 29, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $282,069,382) | |
Investments in affiliated securities, at value (cost $14,716,569) | |
| |
| |
Receivable for Fund shares sold | |
Prepaid expenses and other assets | |
| |
| |
Payable for when-issued transactions | |
Payable for investments purchased | |
Payable for Fund shares redeemed | |
| |
| |
Administration fees payable | |
Trustees’ fees and expenses payable | |
| |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
| |
| |
Computation of net asset value and offering price per share | |
| |
Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
| |
Shares outstanding–Class C1 | |
Net asset value per share–Class C | |
Net assets–Administrator Class | |
Shares outstanding–Administrator Class1 | |
Net asset value per share–Administrator Class | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
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 Bond Fund | 19
Statement of operations—six months ended February 29, 2024 (unaudited)
Statement of operations
| |
| |
Income from affiliated securities | |
| |
| |
| |
| |
| |
| |
| |
| |
Shareholder servicing fees | |
| |
| |
| |
| |
| |
Custody and accounting fees | |
| |
| |
Shareholder report expenses | |
Trustees’ fees and expenses | |
| |
| |
Less: Fee waivers and/or expense reimbursements | |
| |
| |
| |
| |
| |
Realized and unrealized gains (losses) on investments | |
Net realized losses on investments | |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
20 | Allspring High Yield Bond Fund
Statement of changes in net assets
Statement of changes in net assets
|
Six months ended
February 29, 2024 (unaudited) | Year ended August 31, 2023 |
| | | | |
| | | | |
Net realized losses on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to shareholders from | | | | |
Net investment income and net realized gains | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Payment for shares redeemed | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net decrease in net assets resulting from capital share transactions | | | | |
Total decrease in net assets | | | | |
| | | | |
| | | | |
| | | | |
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Bond Fund | 21
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Amount is less than $0.005. |
| Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
| During the year ended August 31, 2020, the Fund received a payment from an affiliate that had an impact of less than 0.005% on total return. |
The accompanying notes are an integral part of these financial statements.
22 | Allspring High Yield Bond Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
| During the year ended August 31, 2020, the Fund received a payment from an affiliate that had a 0.31% impact on the total return. |
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Bond Fund | 23
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
24 | Allspring High Yield Bond Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring High Yield Bond Fund | 25
Notes to financial statements (unaudited)
Notes to financial statements
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 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 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.
Loans
The Fund may invest in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When the Fund purchases participations, it generally has no rights to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund assumes the credit risk of both the borrower and the lender that is selling the participation. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan and may enforce compliance by the borrower with the terms of the loan agreement. Loans may include fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding. Unfunded loan commitments represent the remaining obligation of the Fund to the borrower. At any point in time, up to the maturity date of the issue, the borrower may demand the unfunded portion. Unfunded amounts, if any, are marked to market and any unrealized gains or losses are recorded in the Statement of Assets and Liabilities.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Interest earned on cash balances held at the custodian is recorded as interest income.
26 | Allspring High Yield Bond Fund
Notes to financial statements (unaudited)
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 February 29, 2024, the aggregate cost of all investments for federal income tax purposes was $297,058,163 and the unrealized gains (losses) consisted of:
As of August 31, 2023, the Fund had capital loss carryforwards which consisted of $35,845,406 in short-term capital losses and $35,504,293 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 February 29, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
| | | | |
| | | | |
Corporate bonds and notes | | | | |
| | | | |
Yankee corporate bonds and notes | | | | |
| | | | |
| | | | |
| | | | |
Allspring High Yield Bond Fund | 27
Notes to financial statements (unaudited)
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
At February 29, 2024, the Portfolio had no material 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:
For the six months ended February 29, 2024, the management fee was equivalent to an annual rate of 0.55% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring 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 |
| |
| |
| |
| |
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 December 31, 2024 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. As of February 29, 2024, the contractual caps are as follows:
28 | Allspring High Yield Bond Fund
Notes to financial statements (unaudited)
Distribution fee
The Trust has adopted a distribution plan for Class C shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended February 29, 2024, Allspring Funds Distributor received $756 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended February 29, 2024.
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 did not have any interfund transactions during the six months ended February 29, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended February 29, 2024 were $76,063,980 and $81,115,241, respectively.
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended February 29, 2024, there were no borrowings by the Fund under the agreement.
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 High Yield Bond Fund | 29
Other information (unaudited)
Other information
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 High Yield 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 100 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 Information†. 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
| | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | | 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. Serves on the Investment Company Institute’s Board of Governors since 2022 and Executive Committee since 2023 as well as the Vice Chairman of the Governing Council of the Independent Directors Council since 2023. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Foundation (non-profit organization). Mr. Ebsworth is a CFA charterholder. | |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
| 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. | |
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). | |
David F. Larcker
(Born 1950) | | 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. | |
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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
†
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 Bond Fund | 31
Other information (unaudited)
| Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
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. | |
James G. Polisson
(Born 1959) | | 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. | |
Pamela Wheelock
(Born 1959) | Trustee,
since January 2020;
previously Trustee from
January 2018 to
| 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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
32 | Allspring High Yield Bond Fund
Other information (unaudited)
Officers1
| Position held and
length of service | Principal occupations during past five years or longer |
| | 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 Bond Fund | 33
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-03052024-srpxokn1 04-24
SAR4323 02-24
Allspring Short Duration Government Bond Fund
Semi-Annual Report
February 29, 2024
The views expressed and any forward-looking statements are as of February 29, 2024, 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 Duration Government Bond Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Short Duration Government Bond Fund for the six-month period that ended February 29, 2024. Globally, stocks and bonds generally had positive returns for the period. However, markets were volatile as investors focused on persistently high inflation and the impact of aggressive central bank rate hikes. Riskier assets rallied as investors anticipated an end to the tight monetary policy.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 13.93%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 gained 7.90% while the MSCI EM Index (Net) (USD),3 returned 4.93%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 2.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 gained 1.96%, the Bloomberg Municipal Bond Index6 returned 4.33%, and the ICE BofA U.S. High Yield Index7 gained 6.15%.
Investors remained focused on central bank monetary policies.
As the six-month period began, stocks and bonds both had negative overall returns in September as investors were disappointed by the Federal Reserve’s (Fed’s) determination not to lower interest rates until it has confidence that it has tamed persistently high inflation. As of September, the two primary gauges of U.S. inflation—the annual Core Personal Consumption Expenditures Price Index8 and the Consumer Price Index (CPI)9—both stood at roughly 4%, twice as high as the Fed’s oft-stated 2% target. The month ended with the prospect of yet another U.S. government shutdown, averted at least temporarily but looming later in the year.
October was a tough month for financial markets overall. Key global and domestic indexes all were pushed down by rising geopolitical tensions—particularly the Israel-Hamas conflict—and concerns over the Fed’s “higher for longer” monetary policy. The U.S. 10-year Treasury yield rose above 5% for the first time since 2007. Commodity prices did well as oil prices rallied in response to the prospect of oil supply disruptions from the Middle East. U.S. annualized third quarter gross domestic product (GDP) was estimated at a healthier-than-anticipated 4.9%. China’s GDP indicated surprisingly strong industrial production and retail sales, offset by ongoing weakness in its real estate sector.
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. Returns shown are net of transaction costs beginning on July 1, 2022. You cannot invest directly in an index. Copyright 2024. ICE Data Indices, LLC. All rights reserved.
8
The Core Personal Consumption Expenditures Price Index (PCE) is a measure of prices that people living in the United States, or those buying on their behalf, pay for goods and services. It is sometimes called the core PCE price index, because two categories that can have price swings – food and energy – are left out to make underlying inflation easier to see. You cannot invest directly in an index.
9
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index.
2 | Allspring Short Duration Government Bond Fund
Letter to shareholders (unaudited)
“ In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. ”
In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. Overall annual inflation in the U.S. fell to 3.1% in November while 12-month inflation in the U.K. and eurozone eased to 4.6% and 2.4%, respectively—far below their peak levels of mid-2022. Third quarter annualized U.S. GDP growth was raised to an estimated 5.2% while U.S. job totals rose by just below 200,000 in November, indicating a slight cooling of the labor market. All of this fresh evidence added to confidence for a U.S. soft economic landing, leading to a more buoyant mood heading into winter as the Federal Open Market Committee held rates steady at its December meeting.
The broad year-end rally among stocks and bonds that began in November continued through December as investors became more confident that monetary policy would ease in 2024. Supporting the bubbly market mood were a series of reports confirming lower inflationary trends in the U.S. and Europe. During the period, it appeared more likely that the U.S. economy could achieve a soft landing, cooling enough to lower inflation without the pain of a recession. However, by year-end, an expectations gap developed. Capital markets priced in a total of 1.50 percentage points in federal funds rate cuts in 2024, twice as much as the three cuts of 0.25% hinted at by Fed officials.
Financial market performance was mixed in January 2024 as U.S. stocks had modest gains while non-U.S. equities, particularly those in emerging markets, and fixed income assets were held back by central banker pushback on market optimism over rate cuts. Overall, optimism was supported by indications of a soft landing for the U.S. economy. Key data included a surprisingly strong gain of 353,000 jobs in January, an unemployment rate of just 3.7%, and a rise of just 3.1% in the CPI in January. However, that resilience helped push back expectations of a rate cut in March to a more likely second quarter initial move.
In February, stocks were supported by positive economic data and strong corporate earnings. However, fixed income investments were under pressure as resilient inflation led to lowered expectations on the timing of interest rate cuts. The S&P 500 Index had solid monthly gains along with emerging market equities, which benefited from a rebound in China.
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 a wide variety of mutual funds spanning many asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
Allspring Short Duration Government Bond Fund | 3
Letter to shareholders (unaudited)
|
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. |
4 | Allspring Short Duration Government Bond Fund
This page is intentionally left blank.
Performance highlights (unaudited)
Performance highlights
| The Fund seeks current income consistent with capital preservation. |
| Allspring Funds Management, LLC |
| Allspring Global Investments, LLC |
| Maulik Bhansali, CFA, Jarad Vasquez |
Average annual total returns (%) as of February 29, 2024 |
| | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Administrator Class (MNSGX) | | | | | | | | | |
Institutional Class (WSGIX) | | | | | | | | | |
Bloomberg U.S. Aggregate Bond Index3 | | | | | | | | | |
Bloomberg U.S. 1-3 Year Government | | | | | | | | | |
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.
|
| 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. |
| The manager has contractually committed through December 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.77% for Class A, 1.52% for Class C, 0.37% for Class R6, 0.60% for Administrator Class and 0.42% 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. |
| 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. |
| The Bloomberg U.S. 1–3 Year Government Bond Index is composed of all publicly issued, nonconvertible domestic debt of the U.S. government and its agencies. The index also includes corporate debt guaranteed by the U.S. government. Only notes and bonds with a minimum maturity of 1 year up to a maximum maturity of 2.9 years are included. 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. Securities issued by U.S. government agencies or government-sponsored entities may not be guaranteed by the U.S. Treasury. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to mortgage-and asset-backed securities risk. The U.S. government guarantee applies to certain underlying securities and not to shares of the Fund. 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 Short Duration Government Bond Fund
Performance highlights (unaudited)
Ten largest holdings (%) as of February 29, 20241 |
| |
| |
| |
U.S. Treasury Notes, 4.13%, 2-15-2027 | |
| |
| |
| |
| |
| |
| |
| Figures represent the percentage of the Fund’s net assets. Holdings are subject to change and may have changed since the date specified. |
Portfolio composition as of February 29, 20241 |
| Figures represent the percentage of the Fund’s long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Short Duration Government Bond Fund | 7
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 September 1, 2023 to February 29, 2024.
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
9-1-2023 | Ending
account value
2-29-2024 | | Annualized net
expense ratio |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by 182 divided by 366 (to reflect the one-half-year period). |
8 | Allspring Short Duration Government Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities: 82.34% | | | | | | |
FHLMC STRIPS Series 317 Class F3 (30 Day Average U.S. SOFR+0.63%)± | | | | | | |
FHLMC (30 Day Average U.S. SOFR+2.13%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FHLMC Series 4683 Class EA | | | | | | |
FHLMC Series 5335 Class FB (30 Day Average U.S. SOFR+0.81%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.05%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FNMA Series 2008-7 Class FA (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FNMA Series 2010-111 Class KF (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2012-115 Class DF (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2012-124 Class FE (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FNMA Series 2013-130 Class FD (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2014-74 Class FC (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2016-84 Class FT (30 Day Average U.S. SOFR+0.61%)± | | | | | | |
FNMA Series 2017-112 Class FC (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FNMA Series 2017-30 Class FA (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FNMA Series 2019-33 Class FN (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2019-35 Class FA (30 Day Average U.S. SOFR+0.51%)± | | | | | | |
FNMA Series 2019-49 Class FB (30 Day Average U.S. SOFR+0.59%)± | | | | | | |
FNMA Series 2019-50 Class FA (30 Day Average U.S. SOFR+0.56%)± | | | | | | |
FNMA Series 2020-37 Class DA | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Short Duration Government Bond Fund | 9
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
FNMA Series 2023-37 Class FG (30 Day Average U.S. SOFR+0.41%)± | | | | | | |
FNMA Series 2023-38 Class FC (30 Day Average U.S. SOFR+0.66%)± | | | | | | |
FNMA Series 2023-38 Class FD (30 Day Average U.S. SOFR+0.86%)± | | | | | | |
GNMA Series 2010-167 Class FL (U.S. SOFR 1 Month+0.46%)± | | | | | | |
GNMA Series 2016-167 Class AC | | | | | | |
GNMA Series 2019-125 Class DF (U.S. SOFR 1 Month+0.56%)± | | | | | | |
GNMA Series 2022-107 Class DA | | | | | | |
Total agency securities (Cost $171,373,415) | | | | | | |
Asset-backed securities: 3.89% | | | | | | |
Hyundai Auto Lease Securitization Trust Series 2023-C Class A4144A | | | | | | |
Navient Private Education Refinance Loan Trust Series 2020-GA Class A144A | | | | | | |
Nelnet Student Loan Trust Series 2004-4 Class A5 (90 Day Average U.S. SOFR+0.42%)± | | | | | | |
SFS Auto Receivables Securitization Trust Series 2024-1A Class A4144A | | | | | | |
SoFi Professional Loan Program LLC Series 2020-C Class AFX144A | | | | | | |
Synchrony Card Funding LLC Series 2023-A1 Class A | | | | | | |
T-Mobile U.S. Trust Series 2024-1A Class A144A | | | | | | |
WF Card Issuance Trust Series 2024-A1 Class A%% | | | | | | |
Total asset-backed securities (Cost $8,119,808) | | | | | | |
Non-agency mortgage-backed securities: 3.10% | | | | | | |
Angel Oak Mortgage Trust Series 2020-5 Class A1144A±± | | | | | | |
Bunker Hill Loan Depositary Trust Series 2019-2 Class A1144A | | | | | | |
BX Commercial Mortgage Trust Series 2021-VOLT Class A (U.S. SOFR 1 Month+0.81%)144A± | | | | | | |
Citigroup Commercial Mortgage Trust Series 2014-GC25 Class AAB | | | | | | |
NewRez Warehouse Securitization Trust Series 2021-1 Class A (U.S. SOFR 1 Month+0.86%)144A± | | | | | | |
Verus Securitization Trust Series 2019-4 Class A1144A | | | | | | |
Verus Securitization Trust Series 2019-INV3 Class A1144A±± | | | | | | |
Verus Securitization Trust Series 2021-3 Class A1144A±± | | | | | | |
Total non-agency mortgage-backed securities (Cost $6,613,163) | | | | | | |
U.S. Treasury securities: 8.22% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total U.S. Treasury securities (Cost $16,901,463) | | | | | | |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Short Duration Government Bond Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Short-term investments: 3.29% | | | | | | |
Investment companies: 3.29% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞## | | | | | | |
Total short-term investments (Cost $6,748,552) | | | | | | |
Total investments in securities (Cost $209,756,401) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| Variable rate investment. The rate shown is the rate in effect at period end. |
| 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 coupon of the security is adjusted based on the principal and/or interest payments received from the underlying pool of mortgages as well as the credit quality and the actual prepayment speed of the underlying mortgages. The rate shown is the rate in effect at period end. |
| The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| The rate represents the 7-day annualized yield at period end. |
| All or a portion of this security is segregated as collateral for when-issued securities. |
|
| Federal Home Loan Mortgage Corporation |
| Federal National Mortgage Association |
| Government National Mortgage Association |
| Refinitiv USD IBOR Consumer Cash Fallbacks Term 1-year |
| Secured Overnight Financing Rate |
| Separate trading of registered interest and principal securities |
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:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
Futures contracts
| | | | | | |
| | | | | | |
2-Year U.S. Treasury Notes | | | | | | |
| | | | | | |
Ultra 10-Year U.S. Treasury Notes | | | | | | |
5-Year U.S. Treasury Notes | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Short Duration Government Bond Fund | 11
Statement of assets and liabilities—February 29, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $203,007,849) | |
Investments in affiliated securities, at value (cost $6,748,552) | |
| |
Cash at broker segregated for futures contracts | |
Principal paydown receivable | |
Receivable for investments sold | |
| |
Receivable for Fund shares sold | |
Prepaid expenses and other assets | |
| |
| |
Payable for investments purchased | |
Payable for when-issued transactions | |
Payable for Fund shares redeemed | |
| |
| |
Payable for daily variation margin on open futures contracts | |
Administration fees payable | |
Trustees’ fees and expenses payable | |
| |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
| |
| |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Short Duration Government Bond Fund
Statement of assets and liabilities—February 29, 2024 (unaudited)
Statement of assets and liabilities
Computation of net asset value and offering price per share | |
| |
Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
| |
Shares outstanding–Class C1 | |
Net asset value per share–Class C | |
| |
Shares outstanding–Class R61 | |
Net asset value per share–Class R6 | |
Net assets–Administrator Class | |
Shares outstanding–Administrator Class1 | |
Net asset value per share–Administrator Class | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
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 Duration Government Bond Fund | 13
Statement of operations—six months ended February 29, 2024 (unaudited)
Statement of operations
| |
| |
Income from affiliated securities | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Shareholder servicing fees | |
| |
| |
| |
| |
| |
Custody and accounting fees | |
| |
| |
Shareholder report expenses | |
Trustees’ fees and expenses | |
| |
| |
Less: Fee waivers and/or expense reimbursements | |
| |
| |
| |
| |
| |
| |
Realized and unrealized gains (losses) on investments | |
| |
| |
| |
Net realized losses on investments | |
Net change in unrealized gains (losses) on | |
| |
| |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Short Duration Government Bond Fund
Statement of changes in net assets
Statement of changes in net assets
|
Six months ended
February 29, 2024 (unaudited) | Year ended August 31, 2023 |
| | | | |
| | | | |
Net realized losses on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase (decrease) in net assets resulting from operations | | | | |
Distributions to shareholders from | | | | |
Net investment income and net realized gains | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Payment for shares redeemed | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net decrease in net assets resulting from capital share transactions | | | | |
Total decrease in net assets | | | | |
| | | | |
| | | | |
| | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Short Duration Government Bond Fund | 15
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Amount is less than $0.005. |
| Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Short Duration Government Bond Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| 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 Short Duration Government Bond Fund | 17
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Short Duration Government Bond Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Short Duration Government Bond Fund | 19
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Short Duration Government Bond Fund
Notes to financial statements (unaudited)
Notes to financial statements
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 Duration Government 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 contracts, 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.
Mortgage dollar roll transactions
The Fund may engage in mortgage dollar roll transactions through TBA mortgage-backed securities issued by Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). In a mortgage dollar roll transaction, the Fund sells a mortgage-backed security to a financial institution, such as a bank or broker-dealer and simultaneously agrees to repurchase a substantially similar security from the institution at a later date at an agreed upon price. The mortgage-backed securities that are
Allspring Short Duration Government Bond Fund | 21
Notes to financial statements (unaudited)
repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different pre-payment histories. During the roll period, the Fund foregoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future purchase as well as by the earnings on the cash proceeds of the initial sale. Mortgage dollar rolls may be renewed without physical delivery of the securities subject to the contract. The Fund accounts for TBA dollar roll transactions as purchases and sales which, as a result, may increase its portfolio turnover rate.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status. Paydown gains and losses are included in interest income.
Interest earned on cash balances held at the custodian is recorded as interest income.
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 February 29, 2024, the aggregate cost of all investments for federal income tax purposes was $209,859,110 and the unrealized gains (losses) consisted of:
As of August 31, 2023, the Fund had capital loss carryforwards which consisted of $60,100,653 in short-term capital losses and $67,228,457 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.
22 | Allspring Short Duration Government Bond Fund
Notes to financial statements (unaudited)
3.
FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
•Level 1—quoted prices in active markets for identical securities
•Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
•Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of February 29, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
Non-agency mortgage-backed securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
|
| | | | |
| | | | |
Futures contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the tables following the Portfolio of Investments. For futures contracts, 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.
At February 29, 2024, an agency security with a market value of $4,043,850 was transferred from Level 3 to Level 2 due to an increase in the number of market contributors.
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 Short Duration Government Bond Fund | 23
Notes to financial statements (unaudited)
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:
For the six months ended February 29, 2024, the management fee was equivalent to an annual rate of 0.35% 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 |
| |
| |
| |
| |
| |
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 December 31, 2024 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. As of February 29, 2024, the contractual caps are as follows:
Distribution fee
The Trust has adopted a distribution plan for Class C shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended February 29, 2024, Allspring Funds Distributor received $28 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended February 29, 2024.
24 | Allspring Short Duration Government Bond Fund
Notes to financial statements (unaudited)
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C 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 did not have any interfund transactions during the six months ended February 29, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six months ended February 29, 2024 were as follows:
6.
DERIVATIVE TRANSACTIONS
During the six months ended February 29, 2024, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio. The Fund had an average notional amount of $109,159,277 in long futures contracts and $28,539,000 in short futures contracts during the six months ended February 29, 2024.
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.
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended February 29, 2024, there were no borrowings by the Fund under the agreement.
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 Short Duration Government Bond Fund | 25
Other information (unaudited)
Other information
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.
26 | Allspring Short Duration Government 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 100 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 Information†. 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
| | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | | 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. Serves on the Investment Company Institute’s Board of Governors since 2022 and Executive Committee since 2023 as well as the Vice Chairman of the Governing Council of the Independent Directors Council since 2023. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Foundation (non-profit organization). Mr. Ebsworth is a CFA charterholder. | |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
| 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. | |
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). | |
David F. Larcker
(Born 1950) | | 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. | |
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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
†
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 Duration Government Bond Fund | 27
Other information (unaudited)
| Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
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. | |
James G. Polisson
(Born 1959) | | 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. | |
Pamela Wheelock
(Born 1959) | Trustee,
since January 2020;
previously Trustee from
January 2018 to
| 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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
28 | Allspring Short Duration Government Bond Fund
Other information (unaudited)
Officers1
| Position held and
length of service | Principal occupations during past five years or longer |
| | 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 Duration Government Bond Fund | 29
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-03052024-anz8gf6a 04-24
SAR0932 02-24
Allspring Short-Term Bond Plus Fund
Semi-Annual Report
February 29, 2024
The views expressed and any forward-looking statements are as of February 29, 2024, 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 Bond Plus Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Short-Term Bond Plus Fund for the six-month period that ended February 29, 2024. Globally, stocks and bonds generally had positive returns for the period. However, markets were volatile as investors focused on persistently high inflation and the impact of aggressive central bank rate hikes. Riskier assets rallied as investors anticipated an end to the tight monetary policy.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 13.93%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 gained 7.90% while the MSCI EM Index (Net) (USD),3 returned 4.93%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 2.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 gained 1.96%, the Bloomberg Municipal Bond Index6 returned 4.33%, and the ICE BofA U.S. High Yield Index7 gained 6.15%.
Investors remained focused on central bank monetary policies.
As the six-month period began, stocks and bonds both had negative overall returns in September as investors were disappointed by the Federal Reserve’s (Fed’s) determination not to lower interest rates until it has confidence that it has tamed persistently high inflation. As of September, the two primary gauges of U.S. inflation—the annual Core Personal Consumption Expenditures Price Index8 and the Consumer Price Index (CPI)9—both stood at roughly 4%, twice as high as the Fed’s oft-stated 2% target. The month ended with the prospect of yet another U.S. government shutdown, averted at least temporarily but looming later in the year.
October was a tough month for financial markets overall. Key global and domestic indexes all were pushed down by rising geopolitical tensions—particularly the Israel-Hamas conflict—and concerns over the Fed’s “higher for longer” monetary policy. The U.S. 10-year Treasury yield rose above 5% for the first time since 2007. Commodity prices did well as oil prices rallied in response to the prospect of oil supply disruptions from the Middle East. U.S. annualized third quarter gross domestic product (GDP) was estimated at a healthier-than-anticipated 4.9%. China’s GDP indicated surprisingly strong industrial production and retail sales, offset by ongoing weakness in its real estate sector.
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. Returns shown are net of transaction costs beginning on July 1, 2022. You cannot invest directly in an index. Copyright 2024. ICE Data Indices, LLC. All rights reserved.
8
The Core Personal Consumption Expenditures Price Index (PCE) is a measure of prices that people living in the United States, or those buying on their behalf, pay for goods and services. It is sometimes called the core PCE price index, because two categories that can have price swings – food and energy – are left out to make underlying inflation easier to see. You cannot invest directly in an index.
9
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index.
2 | Allspring Short-Term Bond Plus Fund
Letter to shareholders (unaudited)
“ In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. ”
In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. Overall annual inflation in the U.S. fell to 3.1% in November while 12-month inflation in the U.K. and eurozone eased to 4.6% and 2.4%, respectively—far below their peak levels of mid-2022. Third quarter annualized U.S. GDP growth was raised to an estimated 5.2% while U.S. job totals rose by just below 200,000 in November, indicating a slight cooling of the labor market. All of this fresh evidence added to confidence for a U.S. soft economic landing, leading to a more buoyant mood heading into winter as the Federal Open Market Committee held rates steady at its December meeting.
The broad year-end rally among stocks and bonds that began in November continued through December as investors became more confident that monetary policy would ease in 2024. Supporting the bubbly market mood were a series of reports confirming lower inflationary trends in the U.S. and Europe. During the period, it appeared more likely that the U.S. economy could achieve a soft landing, cooling enough to lower inflation without the pain of a recession. However, by year-end, an expectations gap developed. Capital markets priced in a total of 1.50 percentage points in federal funds rate cuts in 2024, twice as much as the three cuts of 0.25% hinted at by Fed officials.
Financial market performance was mixed in January 2024 as U.S. stocks had modest gains while non-U.S. equities, particularly those in emerging markets, and fixed income assets were held back by central banker pushback on market optimism over rate cuts. Overall, optimism was supported by indications of a soft landing for the U.S. economy. Key data included a surprisingly strong gain of 353,000 jobs in January, an unemployment rate of just 3.7%, and a rise of just 3.1% in the CPI in January. However, that resilience helped push back expectations of a rate cut in March to a more likely second quarter initial move.
In February, stocks were supported by positive economic data and strong corporate earnings. However, fixed income investments were under pressure as resilient inflation led to lowered expectations on the timing of interest rate cuts. The S&P 500 Index had solid monthly gains along with emerging market equities, which benefited from a rebound in China.
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 a wide variety of mutual funds spanning many asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
Allspring Short-Term Bond Plus Fund | 3
Letter to shareholders (unaudited)
|
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. |
4 | Allspring Short-Term Bond Plus Fund
This page is intentionally left blank.
Performance highlights (unaudited)
Performance highlights
| The Fund seeks current income consistent with capital preservation. |
| Allspring Funds Management, LLC |
| Allspring Global Investments, LLC |
| Christopher Y. Kauffman, CFA, Janet S. Rilling, CFA, CPA, Michael J. Schueller, CFA, Michal Stanczyk, Noah M. Wise, CFA |
Average annual total returns (%) as of February 29, 2024 |
| | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Institutional Class (SSHIX) | | | | | | | | | |
Bloomberg U.S. Aggregate Bond Index4 | | | | | | | | | |
Bloomberg U.S. 1-3 Year Government/Credit Bond Index5 | | | | | | | | | |
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 and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
|
| Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the Financial Highlights of this report, which do not include acquired fund fees and expenses. |
| The manager has contractually committed through December 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.61% for Class A, 1.36% for Class C, 0.24% for Class R6 and 0.29% 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. |
| 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. |
| 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. |
| The Bloomberg U.S. 1-3 Year Government/Credit Bond Index is the one- to three-year component of the Bloomberg U.S. Government/Credit Bond Index that includes securities in the Government and Credit Indexes. The Government Index includes Treasuries (that is, public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (that is, publicly issued debt of U.S. government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. government). The Credit Index includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements. You cannot invest directly in an index. |
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring Short-Term Bond Plus Fund
Performance highlights (unaudited)
Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. Loans are subject to risks similar to those associated with other below-investment-grade bond investments, such as credit risk (for example, risk of issuer default), below-investment-grade bond risk (for example, risk of greater volatility in value), and risk that the loan may become illiquid or difficult to price. 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). Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. This fund is exposed to high-yield securities risk and mortgage-and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks.
Allspring Short-Term Bond Plus Fund | 7
Performance highlights (unaudited)
Ten largest holdings (%) as of February 29, 20241 |
U.S. Treasury Notes, 0.38%, 12-31-2025 | |
U.S. Treasury Notes, 1.13%, 1-15-2025 | |
U.S. Treasury Notes, 4.25%, 1-31-2026 | |
U.S. Treasury Notes, 3.25%, 8-31-2024 | |
U.S. Treasury Notes, 5.00%, 8-31-2025 | |
U.S. Treasury Notes, 4.25%, 12-31-2025 | |
| |
| |
Avis Budget Rental Car Funding AESOP LLC, 3.35%, 9-22-2025 | |
Anchorage Capital CLO 6 Ltd., 7.43%, 7-15-2030 | |
| Figures represent the percentage of the Fund’s net assets. Holdings are subject to change and may have changed since the date specified. |
Portfolio composition as of February 29, 20241 |
| Figures represent the percentage of the Fund’s long-term investments. Allocations are subject to change and may have changed since the date specified. |
8 | Allspring Short-Term Bond Plus 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 September 1, 2023 to February 29, 2024.
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
9-1-2023 | Ending
account value
2-29-2024 | | Annualized net
expense ratio |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by 182 divided by 366 (to reflect the one-half-year period). |
Allspring Short-Term Bond Plus Fund | 9
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
FHLMC Multifamily Structured Pass-Through Certificates Series Q004 Class AFL (12 Month Treasury Average+0.74%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-42 Class A6 | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-57 Class 2A1±± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-59 Class 2A1±± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (3 Year Treasury Constant Maturity+2.09%)± | | | | | | |
| | | | | | |
FHLMC Series 2597 Class AE | | | | | | |
FHLMC Series 3735 Class KL | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FNMA (1 Year Treasury Constant Maturity+1.27%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.19%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.28%)± | | | | | | |
| | | | | | |
FNMA Series 2002-T1 Class A4 | | | | | | |
FNMA Series 2002-T12 Class A4 | | | | | | |
FNMA Series 2003-W11 Class A1±± | | | | | | |
FNMA Series 2003-W6 Class 6A±± | | | | | | |
FNMA Series 2003-W6 Class PT4±± | | | | | | |
FNMA Series 2005-84 Class MB | | | | | | |
FNMA Series 2006-W1 Class 2AF2 (30 Day Average U.S. SOFR+0.30%)± | | | | | | |
FNMA Series 2010-37 Class A1 | | | | | | |
FNMA Series 2011-48 Class CN | | | | | | |
| | | | | | |
| | | | | | |
GNMA Series 2005-27 Class PA | | | | | | |
Total agency securities (Cost $17,779,883) | | | | | | |
Asset-backed securities: 14.22% | | | | | | |
ACHM Trust Series 2023-HE2 Class A144A±± | | | | | | |
Anchorage Capital CLO 6 Ltd. Series 2015-6A Class B2RR (U.S. SOFR 3 Month+2.11%)144A± | | | | | | |
Aqua Finance Trust Series 2021-A Class A144A | | | | | | |
Auburn CLO Ltd. Series 2017-1A Class A2A (U.S. SOFR 3 Month+1.88%)144A± | | | | | | |
Avis Budget Rental Car Funding AESOP LLC Series 2019-2A Class A144A | | | | | | |
Avis Budget Rental Car Funding AESOP LLC Series 2020-1A Class B144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Short-Term Bond Plus Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Asset-backed securities(continued) | | | | | | |
BHG Securitization Trust Series 2021-A Class A144A | | | | | | |
BHG Securitization Trust Series 2021-A Class B144A | | | | | | |
Black Diamond CLO Ltd. Series 2017-1A Class A1AR (U.S. SOFR 3 Month+1.31%)144A± | | | | | | |
Bojangles Issuer LLC Series 2020-1A Class A2144A | | | | | | |
BRAVO Residential Funding Trust Series 2021-HE2 Class A1 (30 Day Average U.S. SOFR+0.75%)144A± | | | | | | |
Cajun Global LLC Series 2021-1 Class A2144A | | | | | | |
CFMT LLC Series 2021-AL1 Class B144A | | | | | | |
CIFC Funding Ltd. Series 2018-1A Class A (U.S. SOFR 3 Month+1.26%)144A± | | | | | | |
Commonbond Student Loan Trust Series 2018-BGS Class A1144A | | | | | | |
Contimortgage Home Equity Loan Trust Series 1996-2 Class IOƒ±± | | | | | | |
CPS Auto Receivables Trust Series 2021-A Class D144A | | | | | | |
DataBank Issuer LLC Series 2024-1A Class A2144A | | | | | | |
Domino’s Pizza Master Issuer LLC Series 2015-1A Class A2II144A | | | | | | |
Dryden 72 CLO Ltd. Series 2019-72A Class CR (U.S. SOFR 3 Month+2.11%)144A± | | | | | | |
EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3 (U.S. SOFR 1 Month+1.24%)± | | | | | | |
Exeter Automobile Receivables Trust Series 2021-3A Class C | | | | | | |
FIGRE Trust Series 2023-HE2 Class A144A±± | | | | | | |
FirstKey Homes Trust Series 2021-SFR1 Class C144A | | | | | | |
FirstKey Homes Trust Series 2021-SFR2 Class B144A | | | | | | |
Five Guys Holdings, Inc. Series 2023-1A Class A2144A | | | | | | |
FREED Mortgage Trust Series 2022-HE1 Class A144A | | | | | | |
FS Rialto Issuer LLC Series 2021-FL3 Class B (U.S. SOFR 1 Month+1.91%)144A± | | | | | | |
Hertz Vehicle Financing LLC Series 2021-1A Class A144A | | | | | | |
HGI CRE CLO Ltd. Series 2021-FL1 Class A (U.S. SOFR 1 Month+1.16%)144A± | | | | | | |
HGI CRE CLO Ltd. Series 2021-FL2 Class C (U.S. SOFR 1 Month+1.91%)144A± | | | | | | |
Jonah Energy ABS I LLC Series 2022-1 Class A1144A | | | | | | |
MF1 Ltd. Series 2021-FL7 Class A (U.S. SOFR 1 Month+1.19%)144A± | | | | | | |
MF1 Ltd. Series 2022-FL8 Class A (U.S. SOFR 1 Month+1.35%)144A± | | | | | | |
MF1 Multifamily Housing Mortgage Loan Trust Series 2021-FL5 Class A (U.S. SOFR 1 Month+0.96%)144A± | | | | | | |
| | | | | | |
Navient Private Education Refinance Loan Trust Series 2021-EA Class A144A | | | | | | |
Octane Receivables Trust Series 2021-1A Class A144A | | | | | | |
Octane Receivables Trust Series 2022-2A Class A144A | | | | | | |
Octane Receivables Trust Series 2023-1A Class A144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Bond Plus Fund | 11
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Asset-backed securities(continued) | | | | | | |
Octane Receivables Trust Series 2023-1A Class B144A | | | | | | |
OnDeck Asset Securitization Trust LLC Series 2021-1A Class A144A | | | | | | |
Pagaya AI Debt Selection Trust Series 2021-HG1 Class A144A | | | | | | |
Pagaya AI Debt Selection Trust Series 2023-1 Class A144A | | | | | | |
PFS Financing Corp. Series 2021-A Class A144A | | | | | | |
PFS Financing Corp. Series 2021-A Class B144A | | | | | | |
Prodigy Finance CM2021-1 DAC Series 2021-1A Class A (U.S. SOFR 1 Month+1.36%)144A± | | | | | | |
RCKT Mortgage Trust Series 2023-CES3 Class A1A144A±± | | | | | | |
Service Experts Issuer LLC Series 2021-1A Class A144A | | | | | | |
SLM Student Loan Trust Series 2003-10A Class A4 (90 Day Average U.S. SOFR+0.93%)144A± | | | | | | |
SLM Student Loan Trust Series 2013-1 Class A3 (30 Day Average U.S. SOFR+0.66%)± | | | | | | |
Sound Point CLO VIII-R Ltd. Series 2015-1RA Class AR (U.S. SOFR 3 Month+1.34%)144A± | | | | | | |
Sound Point CLO VIII-R Ltd. Series 2015-1RA Class BR (U.S. SOFR 3 Month+1.81%)144A± | | | | | | |
SpringCastle America Funding LLC Series 2020-AA Class A144A | | | | | | |
Store Master Funding I-VII Series 2018-1A Class A2144A | | | | | | |
THL Credit Wind River CLO Ltd. Series 2013-2A Class AR2 (U.S. SOFR 3 Month+1.26%)144A± | | | | | | |
Towd Point Asset Trust Series 2018-SL1 Class A (U.S. SOFR 1 Month+0.71%)144A± | | | | | | |
Venture XXIX CLO Ltd. Series 2017-29A Class AR (U.S. SOFR 3 Month+1.25%)144A± | | | | | | |
Vibrant CLO VI Ltd. Series 2017-6A Class AR (U.S. SOFR 3 Month+1.21%)144A± | | | | | | |
Zais CLO 6 Ltd. Series 2017-1A Class CR (U.S. SOFR 3 Month+2.91%)144A± | | | | | | |
Total asset-backed securities (Cost $90,510,298) | | | | | | |
| | | | | |
| | | | | | |
Consumer discretionary: 0.01% | | | | | | |
Hotels, restaurants & leisure: 0.01% | | | | | | |
Royal Caribbean Cruises Ltd.† | | | | | | |
Total common stocks (Cost $116,969) | | | | | | |
| | | | | |
Corporate bonds and notes: 27.54% | | | | | | |
| | | | | | |
| | | | | | |
International Flavors & Fragrances, Inc.144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Short-Term Bond Plus Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Charter Communications Operating LLC/Charter Communications Operating Capital | | | | | | |
Telecommunications: 0.24% | | | | | | |
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC144A | | | | | | |
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC144A | | | | | | |
| | | | | | |
Consumer, cyclical: 5.59% | | | | | | |
| | | | | | |
American Airlines Pass-Through Trust Series 2017-2 Class B | | | | | | |
Delta Air Lines, Inc./SkyMiles IP Ltd.144A | | | | | | |
United Airlines Pass-Through Trust Series 2020-1 Class B | | | | | | |
| | | | | | |
| | | | | | |
Michael Kors USA, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Auto manufacturers: 2.38% | | | | | | |
American Honda Finance Corp. | | | | | | |
Daimler Truck Finance North America LLC144A | | | | | | |
Ford Motor Credit Co. LLC | | | | | | |
Hyundai Capital America144A | | | | | | |
Hyundai Capital America144A | | | | | | |
Hyundai Capital America144A | | | | | | |
Nissan Motor Acceptance Co. LLC144A | | | | | | |
| | | | | | |
| | | | | | |
Warnermedia Holdings, Inc. | | | | | | |
Warnermedia Holdings, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Genting New York LLC/GENNY Capital, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Bond Plus Fund | 13
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
Toys/games/hobbies: 0.22% | | | | | | |
| | | | | | |
Consumer, non-cyclical: 2.17% | | | | | | |
| | | | | | |
| | | | | | |
Philip Morris International, Inc. | | | | | | |
| | | | | | |
Commercial services: 0.97% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Healthcare-services: 0.47% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Bank of America Corp. (U.S. SOFR+0.65%)± | | | | | | |
Bank of America Corp. Series N (U.S. SOFR+0.91%)± | | | | | | |
Citigroup, Inc. (U.S. SOFR+1.55%)± | | | | | | |
Goldman Sachs Group, Inc. (U.S. SOFR+0.91%)± | | | | | | |
JPMorgan Chase & Co. (U.S. SOFR+0.49%)± | | | | | | |
JPMorgan Chase & Co. (U.S. SOFR+1.33%)± | | | | | | |
JPMorgan Chase & Co. (U.S. SOFR 3 Month+0.54%)± | | | | | | |
JPMorgan Chase & Co. (U.S. SOFR 3 Month+0.70%)± | | | | | | |
Morgan Stanley (U.S. SOFR+0.56%)± | | | | | | |
Morgan Stanley (U.S. SOFR+1.73%)± | | | | | | |
Morgan Stanley (U.S. SOFR+1.99%)± | | | | | | |
Santander Holdings USA, Inc. (U.S. SOFR+1.38%)± | | | | | | |
Santander Holdings USA, Inc. (U.S. SOFR+2.33%)± | | | | | | |
Truist Financial Corp. (U.S. SOFR+2.05%)± | | | | | | |
U.S. Bancorp (U.S. SOFR+2.02%)± | | | | | | |
Wells Fargo & Co. (U.S. SOFR+1.51%)± | | | | | | |
| | | | | | |
Diversified financial services: 1.94% | | | | | | |
| | | | | | |
Aviation Capital Group LLC144A | | | | | | |
Blackstone Holdings Finance Co. LLC144A | | | | | | |
| | | | | | |
Capital One Financial Corp. | | | | | | |
GTP Acquisition Partners I LLC Series 2015-2 Class A144A | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Short-Term Bond Plus Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Allied World Assurance Co. Holdings Ltd. | | | | | | |
| | | | | | |
Brighthouse Financial Global Funding144A | | | | | | |
Equitable Financial Life Global Funding144A | | | | | | |
Farmers Exchange Capital144A | | | | | | |
GA Global Funding Trust144A | | | | | | |
Guardian Life Global Funding144A | | | | | | |
Metropolitan Life Global Funding I144A | | | | | | |
Minnesota Life Insurance Co.144A | | | | | | |
New York Life Global Funding144A | | | | | | |
Northwestern Mutual Global Funding144A | | | | | | |
| | | | | | |
Protective Life Global Funding144A | | | | | | |
Security Benefit Global Funding144A | | | | | | |
| | | | | | |
Investment Companies: 0.23% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Brandywine Operating Partnership LP | | | | | | |
| | | | | | |
Omega Healthcare Investors, Inc. | | | | | | |
Omega Healthcare Investors, Inc. | | | | | | |
Piedmont Operating Partnership LP | | | | | | |
Prologis Targeted U.S. Logistics Fund LP144A%% | | | | | | |
| | | | | | |
| | | | | | |
Starwood Property Trust, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
WEA Finance LLC/Westfield U.K. & Europe Finance PLC144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Trucking & leasing: 0.93% | | | | | | |
| | | | | | |
| | | | | | |
Penske Truck Leasing Co. LP/PTL Finance Corp.144A | | | | | | |
Penske Truck Leasing Co. LP/PTL Finance Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Bond Plus Fund | 15
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
Alliant Energy Finance LLC144A | | | | | | |
CenterPoint Energy, Inc. (U.S. SOFR+0.65%)± | | | | | | |
Evergy Missouri West, Inc.144A | | | | | | |
National Rural Utilities Cooperative Finance Corp. | | | | | | |
Southern California Edison Co.%% | | | | | | |
Southern California Edison Co.%% | | | | | | |
Vistra Operations Co. LLC144A | | | | | | |
| | | | | | |
Total corporate bonds and notes (Cost $173,218,714) | | | | | | |
Foreign corporate bonds and notes: 1.98% | | | | | | |
| | | | | | |
Telecommunications: 0.32% | | | | | | |
| | | | | | |
SES SA (EUR Swap Annual (vs. 6 Month EURIBOR) 5 Year+3.19%)ʊ± | | | | | | |
| | | | | | |
Consumer, cyclical: 0.71% | | | | | | |
Auto manufacturers: 0.19% | | | | | | |
| | | | | | |
Auto parts & equipment: 0.41% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Cirsa Finance International Sarl144A | | | | | | |
Consumer, non-cyclical: 0.37% | | | | | | |
Commercial services: 0.27% | | | | | | |
Rentokil Initial Finance BV | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Bayer AG (EURIBOR ICE Swap Rate 11:00am+2.65%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Short-Term Bond Plus Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Packaging & containers: 0.24% | | | | | | |
Canpack SA/Canpack U.S. LLC144A | | | | | | |
Total foreign corporate bonds and notes (Cost $13,137,570) | | | | | | |
Foreign government bonds: 2.09% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total foreign government bonds (Cost $13,258,079) | | | | | | |
| | | | | |
Investment companies: 0.55% | | | | | | |
Exchange-traded funds: 0.55% | | | | | | |
iShares 0-5 Year High Yield Corporate Bond ETF | | | | | | |
Total investment companies (Cost $3,310,905) | | | | | | |
| | | | | |
Municipal obligations: 0.11% | | | | | | |
| | | | | | |
| | | | | | |
Indiana Secondary Market for Education Loans, Inc. (U.S. SOFR 1 Month+0.80%)± | | | | | | |
Total municipal obligations (Cost $702,224) | | | | | | |
Non-agency mortgage-backed securities: 7.71% | | | | | | |
Ajax Mortgage Loan Trust Series 2021-E Class A1144A±± | | | | | | |
Angel Oak Mortgage Trust Series 2020-4 Class A1144A±± | | | | | | |
Angel Oak Mortgage Trust Series 2020-R1 Class A1144A±± | | | | | | |
Brean Asset-Backed Securities Trust Series 2021-RM2 Class A144A±± | | | | | | |
Bunker Hill Loan Depositary Trust Series 2019-3 Class A1144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Bond Plus Fund | 17
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Non-agency mortgage-backed securities(continued) | | | | | | |
BX Trust Series 2021-ARIA Class D (U.S. SOFR 1 Month+2.01%)144A± | | | | | | |
BX Trust Series 2024-BIO Class C (U.S. SOFR 1 Month+2.64%)144A± | | | | | | |
Cascade Funding Mortgage Trust Series 2018-RM2 Class A144A±± | | | | | | |
Cascade Funding Mortgage Trust Series 2018-RM2 Class B144A±± | | | | | | |
CHL Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1±± | | | | | | |
COLT Mortgage Loan Trust Series 2020-2 Class A1144A±± | | | | | | |
COMM Mortgage Trust Series 2014-CR14 Class B±± | | | | | | |
CSAIL Commercial Mortgage Trust Series 2016-C5 Class A4 | | | | | | |
CSMC Trust Series 2020-AFC1 Class A3144A±± | | | | | | |
CSMC Trust Series 2021-AFC1 Class A2144A±± | | | | | | |
FWD Securitization Trust Series 2020-INV1 Class A3144A±± | | | | | | |
GCAT Trust Series 2021-NQM1 Class A1144A±± | | | | | | |
GSMPS Mortgage Loan Trust Series 1998-1 Class A144A±± | | | | | | |
Hudsons Bay Simon JV Trust Series 2015-HB10 Class A10144A | | | | | | |
Imperial Fund Mortgage Trust Series 2021-NQM3 Class A1144A±± | | | | | | |
Imperial Fund Mortgage Trust Series 2022-NQM3 Class A3144A±± | | | | | | |
JP Morgan Chase Commercial Mortgage Securities Trust Series 2018-PHH Class A (U.S. SOFR 1 Month+1.26%)144A± | | | | | | |
JP Morgan Mortgage Trust Series 2020-2 Class A7144A±± | | | | | | |
MASTR Adjustable Rate Mortgages Trust Series 2002-3 Class 4A1±± | | | | | | |
Med Trust Series 2021-MDLN Class B (U.S. SOFR 1 Month+1.56%)144A± | | | | | | |
Merrill Lynch Golden National MTGE Asset Backed Certificates Series 1998-GN1 Class M2 | | | | | | |
MFA Trust Series 2020-NQM1 Class A2144A±± | | | | | | |
MFA Trust Series 2021-NQM1 Class A2144A±± | | | | | | |
Morgan Stanley Capital I Trust Series 2014-150E Class A144A | | | | | | |
New Residential Mortgage Loan Trust Series 2018-5A Class A1A144A±± | | | | | | |
New Residential Mortgage Loan Trust Series 2019-6A Class A1B144A±± | | | | | | |
NYMT Loan Trust Series 2022-CP1 Class A1144A | | | | | | |
OBX Trust Series 2019-EXP1 Class 1A3144A±± | | | | | | |
OPG Trust Series 2021-PORT Class B (U.S. SOFR 1 Month+0.83%)144A± | | | | | | |
PKHL Commercial Mortgage Trust Series 2021-MF Class B (U.S. SOFR 1 Month+1.29%)144A± | | | | | | |
RCKT Mortgage Trust Series 2023-CES2 Class A1A144A±± | | | | | | |
Ready Capital Mortgage Trust Series 2019-5 Class A144A | | | | | | |
Residential Mortgage Loan Trust Series 2021-1R Class A2144A±± | | | | | | |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Short-Term Bond Plus Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Non-agency mortgage-backed securities(continued) | | | | | | |
Starwood Mortgage Residential Trust Series 2020-1 Class A3144A±± | | | | | | |
Towd Point Mortgage Trust Series 2017-1 Class A1144A±± | | | | | | |
Towd Point Mortgage Trust Series 2017-4 Class A1144A±± | | | | | | |
Towd Point Mortgage Trust Series 2019-4 Class A1144A±± | | | | | | |
UBS Commercial Mortgage Trust Series 2018-NYCH Class A (U.S. SOFR 1 Month+0.90%)144A± | | | | | | |
Verus Securitization Trust Series 2021-2 Class A1144A±± | | | | | | |
Verus Securitization Trust Series 2021-8 Class A2144A±± | | | | | | |
Verus Securitization Trust Series 2021-R1 Class A2144A±± | | | | | | |
Verus Securitization Trust Series 2021-R3 Class A1144A±± | | | | | | |
Wilshire Funding Corp. Series 1996-3 Class M2±± | | | | | | |
Wilshire Funding Corp. Series 1996-3 Class M3±± | | | | | | |
Wilshire Funding Corp. Series 1998-WFC2 Class M1 (12 Month Treasury Average+2.00%)± | | | | | | |
Total non-agency mortgage-backed securities (Cost $52,353,813) | | | | | | |
U.S. Treasury securities: 30.19% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total U.S. Treasury securities (Cost $189,745,554) | | | | | | |
Yankee corporate bonds and notes: 12.70% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Telecommunications: 0.42% | | | | | | |
Rogers Communications, Inc. | | | | | | |
Consumer, non-cyclical: 0.60% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
BP Capital Markets PLC (5 Year Treasury Constant Maturity+4.04%)ʊ± | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Bond Plus Fund | 19
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Woodside Finance Ltd.144A | | | | | | |
Woodside Finance Ltd.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Banco Santander SA (1 Year Treasury Constant Maturity+0.45%)± | | | | | | |
Banque Federative du Credit Mutuel SA144A | | | | | | |
BNP Paribas SA (U.S. SOFR+1.00%)144A± | | | | | | |
| | | | | | |
Danske Bank AS (1 Year Treasury Constant Maturity+0.55%)144A± | | | | | | |
Danske Bank AS (1 Year Treasury Constant Maturity+2.10%)144A± | | | | | | |
Deutsche Bank AG (U.S. SOFR+1.59%)± | | | | | | |
Federation des Caisses Desjardins du Quebec144A | | | | | | |
Federation des Caisses Desjardins du Quebec144A | | | | | | |
HSBC Holdings PLC (U.S. SOFR+0.71%)± | | | | | | |
HSBC Holdings PLC (U.S. SOFR+1.10%)± | | | | | | |
Intesa Sanpaolo SpA Series XR144A | | | | | | |
Macquarie Group Ltd. (U.S. SOFR+1.07%)144A± | | | | | | |
Mitsubishi UFJ Financial Group, Inc. (1 Year Treasury Constant Maturity+1.08%)± | | | | | | |
Mizuho Financial Group, Inc. (U.S. SOFR 3 Month+1.24%)± | | | | | | |
NatWest Group PLC (1 Year Treasury Constant Maturity+1.10%)± | | | | | | |
Skandinaviska Enskilda Banken AB144A%% | | | | | | |
| | | | | | |
UBS Group AG (1 Year Treasury Constant Maturity+0.85%)144A± | | | | | | |
UBS Group AG (1 Year Treasury Constant Maturity+1.08%)144A± | | | | | | |
UBS Group AG (U.S. SOFR+2.04%)144A± | | | | | | |
| | | | | | |
Diversified financial services: 0.53% | | | | | | |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust | | | | | | |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust144A | | | | | | |
Avolon Holdings Funding Ltd.144A | | | | | | |
| | | | | | |
| | | | | | |
Fairfax Financial Holdings Ltd. | | | | | | |
| | | | | | |
Ontario Teachers’ Cadillac Fairview Properties Trust144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Short-Term Bond Plus Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Scentre Group Trust 1/Scentre Group Trust 2144A | | | | | | |
Government securities: 1.14% | | | | | | |
| | | | | | |
African Export-Import Bank144A | | | | | | |
Banque Ouest Africaine de Developpement144A | | | | | | |
Central American Bank for Economic Integration144A | | | | | | |
| | | | | | |
| | | | | | |
Trucking & leasing: 0.16% | | | | | | |
SMBC Aviation Capital Finance DAC144A | | | | | | |
| | | | | | |
| | | | | | |
Renesas Electronics Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
Total yankee corporate bonds and notes (Cost $80,730,417) | | | | | | |
| | | | | |
Short-term investments: 2.45% | | | | | | |
Investment companies: 2.45% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞## | | | | | | |
Total short-term investments (Cost $15,299,554) | | | | | | |
Total investments in securities (Cost $650,163,980) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| Variable rate investment. The rate shown is the rate in effect at period end. |
| The coupon of the security is adjusted based on the principal and/or interest payments received from the underlying pool of mortgages as well as the credit quality and the actual prepayment speed of the underlying mortgages. The rate shown is the rate in effect at period end. |
| The security is purchased on a when-issued basis. |
| 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. |
| Investment in an interest-only security that entitles holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. The rate represents the coupon rate. |
| Security is valued using significant unobservable inputs. |
| Non-income-earning security |
| Security is perpetual in nature and has no stated maturity date. The date shown reflects the next call date. |
| The security is issued in zero coupon form with no periodic interest payments. |
| All or a portion of this security is segregated as collateral 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.
Allspring Short-Term Bond Plus Fund | 21
Portfolio of investments—February 29, 2024 (unaudited)
|
| |
| |
| |
| Euro Interbank Offered Rate |
| Federal Home Loan Mortgage Corporation |
| Federal National Mortgage Association |
| |
| Government National Mortgage Association |
| |
| Real estate investment trust |
| Refinitiv USD IBOR Consumer Cash Fallbacks Term 1-year |
| Secured Overnight Financing Rate |
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
Forward foreign currency contracts
Futures contracts
| | | | | | |
| | | | | | |
2-Year U.S. Treasury Notes | | | | | | |
| | | | | | |
| | | | | | |
10-Year U.S. Treasury Notes | | | | | | |
5-Year U.S. Treasury Notes | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
22 | Allspring Short-Term Bond Plus Fund
Statement of assets and liabilities—February 29, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $634,864,426) | |
Investments in affiliated securities, at value (cost $15,299,554) | |
| |
Cash at broker segregated for futures contracts | |
Foreign currency, at value (cost $74,481) | |
| |
Receivable for investments sold | |
Receivable for Fund shares sold | |
Unrealized gains on forward foreign currency contracts | |
Prepaid expenses and other assets | |
| |
| |
Payable for when-issued transactions | |
Payable for investments purchased | |
Payable for Fund shares redeemed | |
Cash collateral due to broker for forward foreign currency contracts | |
| |
Administration fees payable | |
Payable for daily variation margin on open futures contracts | |
Unrealized losses on forward foreign currency contracts | |
| |
Trustees’ fees and expenses payable | |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
| |
| |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Bond Plus Fund | 23
Statement of assets and liabilities—February 29, 2024 (unaudited)
Statement of assets and liabilities
Computation of net asset value and offering price per share | |
| |
Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
| |
Shares outstanding–Class C1 | |
Net asset value per share–Class C | |
| |
Shares outstanding–Class R61 | |
Net asset value per share–Class R6 | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
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.
24 | Allspring Short-Term Bond Plus Fund
Statement of operations—six months ended February 29, 2024 (unaudited)
Statement of operations
| |
| |
Income from affiliated securities | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Shareholder servicing fees | |
| |
| |
| |
| |
Custody and accounting fees | |
| |
| |
Shareholder report expenses | |
Trustees’ fees and expenses | |
| |
| |
Less: Fee waivers and/or expense reimbursements | |
| |
| |
| |
Realized and unrealized gains (losses) on investments | |
| |
| |
Foreign currency and foreign currency translations | |
Forward foreign currency contracts | |
| |
Net realized losses on investments | |
Net change in unrealized gains (losses) on | |
| |
Foreign currency and foreign currency translations | |
Forward foreign currency contracts | |
| |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Bond Plus Fund | 25
Statement of changes in net assets
Statement of changes in net assets
|
Six months ended
February 29, 2024 (unaudited) | Year ended August 31, 2023 |
| | | | |
| | | | |
Net realized losses on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to shareholders from | | | | |
Net investment income and net realized gains | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Payment for shares redeemed | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in net assets resulting from capital share transactions | | | | |
Total increase (decrease) in net assets | | | | |
| | | | |
| | | | |
| | | | |
The accompanying notes are an integral part of these financial statements.
26 | Allspring Short-Term Bond Plus Fund
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| 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 Short-Term Bond Plus Fund | 27
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| 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.
28 | Allspring Short-Term Bond Plus Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term Bond Plus Fund | 29
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
30 | Allspring Short-Term Bond Plus Fund
Notes to financial statements (unaudited)
Notes to financial statements
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 Bond Plus Fund (the “Fund”) which is a diversified series of the Trust.
2.
SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Debt securities are valued at the evaluated bid price provided by an independent pricing service (e.g. taking into account various factors, including yields, maturities, or credit ratings) or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Equity securities, exchange-traded funds and futures contracts that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee at Allspring Funds Management, LLC (“Allspring Funds Management”).
Forward foreign currency contracts are recorded at the forward rate provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee at Allspring Funds Management.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management’s process for determining the fair value of the portfolio of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.
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.
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
Allspring Short-Term Bond Plus Fund | 31
Notes to financial statements (unaudited)
risk to the Fund from adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on forward foreign currency contracts. The Fund is subject to foreign currency risk and may be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund’s maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the counterparty.
Futures contracts
Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at a specified price 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 contracts, 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.
Mortgage dollar roll transactions
The Fund may engage in mortgage dollar roll transactions through TBA mortgage-backed securities issued by Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). In a mortgage dollar roll transaction, the Fund sells a mortgage-backed security to a financial institution, such as a bank or broker-dealer and simultaneously agrees to repurchase a substantially similar security from the institution at a later date at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different pre-payment histories. During the roll period, the Fund foregoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future purchase as well as by the earnings on the cash proceeds of the initial sale. Mortgage dollar rolls may be renewed without physical delivery of the securities subject to the contract. The Fund accounts for TBA dollar roll transactions as purchases and sales which, as a result, may increase its portfolio turnover rate.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.Paydown gains and losses are included in interest income.
Dividend income is recognized on the ex-dividend date.
Interest earned on cash balances held at the custodian is recorded as interest income.
Income dividends and capital gain distributions from investment companies are recorded on the ex-dividend date. Capital gain distributions from investment companies are treated as realized gains.
Distributions to shareholders
Distributions to shareholders are recorded on the ex-dividend date and paid from net investment income monthly and any net realized gains are paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
32 | Allspring Short-Term Bond Plus Fund
Notes to financial statements (unaudited)
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 February 29, 2024, the aggregate cost of all investments for federal income tax purposes was $649,723,131 and the unrealized gains (losses) consisted of:
As of August 31, 2023, the Fund had capital loss carryforwards which consisted of $8,694,656 in short-term capital losses and $8,467,072 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 Short-Term Bond Plus Fund | 33
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of February 29, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Corporate bonds and notes | | | | |
Foreign corporate bonds and notes | | | | |
| | | | |
| | | | |
| | | | |
Non-agency mortgage-backed securities | | | | |
| | | | |
Yankee corporate bonds and notes | | | | |
| | | | |
| | | | |
| | | | |
Forward foreign currency contracts | | | | |
| | | | |
| | | | |
|
Forward foreign currency contracts | | | | |
| | | | |
| | | | |
Futures contracts and forward foreign currency contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the table following the Portfolio of Investments. 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.
At February 29, 2024, 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:
For the six months ended February 29, 2024, the management fee was equivalent to an annual rate of 0.35% 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
34 | Allspring Short-Term Bond Plus Fund
Notes to financial statements (unaudited)
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 |
| |
| |
| |
| |
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 December 31, 2024 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. As of February 29, 2024, the contractual caps are as follows:
Distribution fee
The Trust has adopted a distribution plan for Class C shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended February 29, 2024, Allspring Funds Distributor received $544 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended February 29, 2024.
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 did not have any interfund transactions during the six months ended February 29, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six months ended February 29, 2024 were as follows:
Allspring Short-Term Bond Plus Fund | 35
Notes to financial statements (unaudited)
6.
DERIVATIVE TRANSACTIONS
During the six months ended February 29, 2024, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio. The Fund also entered into forward foreign currency contracts for economic hedging purposes.
The volume of the Fund’s derivative activity during the six months ended February 29, 2024 was as follows:
Forward foreign currency contracts | |
Average contract amounts to buy | |
Average contract amounts to sell | |
| |
Average notional balance on long futures | |
Average notional balance on short futures | |
The fair value of derivative instruments as of February 29, 2024 by primary risk type was as follows for the Fund:
| | | |
|
Forward foreign currency contracts | | | |
| | | |
| | | |
|
Forward foreign currency contracts | | | |
| | | |
| | | |
| Amount represents the cumulative unrealized gains (losses) as reported in the table following the Portfolio of Investments. For futures contracts, only the current day’s variation margin as of February 29, 2024 is reported separately on the Statement of Assets and Liabilities. |
The effect of derivative instruments on the Statement of Operations for the six months ended February 29, 2024 was as follows:
| | | |
Net realized gains (losses) on derivatives |
Forward foreign currency contracts | | | |
| | | |
| | | |
Net change in unrealized gains (losses) on derivatives |
Forward foreign currency contracts | | | |
| | | |
| | | |
For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the
36 | Allspring Short-Term Bond Plus Fund
Notes to financial statements (unaudited)
applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by counterparty, including any collateral exposure, for OTC derivatives is as follows:
| Gross amounts
of assets in the
Statement of
Assets and
Liabilities | Amounts
subject to
netting
agreements | | |
| | | | |
| Gross amounts
of liabilities in the
Statement of
Assets and
Liabilities | Amounts
subject to
netting
agreements | | |
| | | | |
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended February 29, 2024, there were no borrowings by the Fund under the agreement.
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 Short-Term Bond Plus Fund | 37
Other information (unaudited)
Other information
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 Short-Term Bond Plus 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 100 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 Information†. 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
| | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | | 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. Serves on the Investment Company Institute’s Board of Governors since 2022 and Executive Committee since 2023 as well as the Vice Chairman of the Governing Council of the Independent Directors Council since 2023. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Foundation (non-profit organization). Mr. Ebsworth is a CFA charterholder. | |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
| 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. | |
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). | |
David F. Larcker
(Born 1950) | | 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. | |
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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
†
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 Bond Plus Fund | 39
Other information (unaudited)
| Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
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. | |
James G. Polisson
(Born 1959) | | 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. | |
Pamela Wheelock
(Born 1959) | Trustee,
since January 2020;
previously Trustee from
January 2018 to
| 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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
40 | Allspring Short-Term Bond Plus Fund
Other information (unaudited)
Officers1
| Position held and
length of service | Principal occupations during past five years or longer |
| | 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 Bond Plus Fund | 41
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-03052024-iqhmxcnm 04-24
SAR3005 02-24
Allspring Short-Term High Income Fund
Semi-Annual Report
February 29, 2024
The views expressed and any forward-looking statements are as of February 29, 2024, 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 High Income Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Short-Term High Income Fund for the six-month period that ended February 29, 2024. Globally, stocks and bonds generally had positive returns for the period. However, markets were volatile as investors focused on persistently high inflation and the impact of aggressive central bank rate hikes. Riskier assets rallied as investors anticipated an end to the tight monetary policy.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 13.93%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 gained 7.90% while the MSCI EM Index (Net) (USD),3 returned 4.93%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 2.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 gained 1.96%, the Bloomberg Municipal Bond Index6 returned 4.33%, and the ICE BofA U.S. High Yield Index7 gained 6.15%.
Investors remained focused on central bank monetary policies.
As the six-month period began, stocks and bonds both had negative overall returns in September as investors were disappointed by the Federal Reserve’s (Fed’s) determination not to lower interest rates until it has confidence that it has tamed persistently high inflation. As of September, the two primary gauges of U.S. inflation—the annual Core Personal Consumption Expenditures Price Index8 and the Consumer Price Index (CPI)9—both stood at roughly 4%, twice as high as the Fed’s oft-stated 2% target. The month ended with the prospect of yet another U.S. government shutdown, averted at least temporarily but looming later in the year.
October was a tough month for financial markets overall. Key global and domestic indexes all were pushed down by rising geopolitical tensions—particularly the Israel-Hamas conflict—and concerns over the Fed’s “higher for longer” monetary policy. The U.S. 10-year Treasury yield rose above 5% for the first time since 2007. Commodity prices did well as oil prices rallied in response to the prospect of oil supply disruptions from the Middle East. U.S. annualized third quarter gross domestic product (GDP) was estimated at a healthier-than-anticipated 4.9%. China’s GDP indicated surprisingly strong industrial production and retail sales, offset by ongoing weakness in its real estate sector.
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. Returns shown are net of transaction costs beginning on July 1, 2022. You cannot invest directly in an index. Copyright 2024. ICE Data Indices, LLC. All rights reserved.
8
The Core Personal Consumption Expenditures Price Index (PCE) is a measure of prices that people living in the United States, or those buying on their behalf, pay for goods and services. It is sometimes called the core PCE price index, because two categories that can have price swings – food and energy – are left out to make underlying inflation easier to see. You cannot invest directly in an index.
9
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index.
2 | Allspring Short-Term High Income Fund
Letter to shareholders (unaudited)
“ In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. ”
In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. Overall annual inflation in the U.S. fell to 3.1% in November while 12-month inflation in the U.K. and eurozone eased to 4.6% and 2.4%, respectively—far below their peak levels of mid-2022. Third quarter annualized U.S. GDP growth was raised to an estimated 5.2% while U.S. job totals rose by just below 200,000 in November, indicating a slight cooling of the labor market. All of this fresh evidence added to confidence for a U.S. soft economic landing, leading to a more buoyant mood heading into winter as the Federal Open Market Committee held rates steady at its December meeting.
The broad year-end rally among stocks and bonds that began in November continued through December as investors became more confident that monetary policy would ease in 2024. Supporting the bubbly market mood were a series of reports confirming lower inflationary trends in the U.S. and Europe. During the period, it appeared more likely that the U.S. economy could achieve a soft landing, cooling enough to lower inflation without the pain of a recession. However, by year-end, an expectations gap developed. Capital markets priced in a total of 1.50 percentage points in federal funds rate cuts in 2024, twice as much as the three cuts of 0.25% hinted at by Fed officials.
Financial market performance was mixed in January 2024 as U.S. stocks had modest gains while non-U.S. equities, particularly those in emerging markets, and fixed income assets were held back by central banker pushback on market optimism over rate cuts. Overall, optimism was supported by indications of a soft landing for the U.S. economy. Key data included a surprisingly strong gain of 353,000 jobs in January, an unemployment rate of just 3.7%, and a rise of just 3.1% in the CPI in January. However, that resilience helped push back expectations of a rate cut in March to a more likely second quarter initial move.
In February, stocks were supported by positive economic data and strong corporate earnings. However, fixed income investments were under pressure as resilient inflation led to lowered expectations on the timing of interest rate cuts. The S&P 500 Index had solid monthly gains along with emerging market equities, which benefited from a rebound in China.
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 a wide variety of mutual funds spanning many asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
Allspring Short-Term High Income Fund | 3
Letter to shareholders (unaudited)
|
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. |
4 | Allspring Short-Term High Income Fund
This page is intentionally left blank.
Performance highlights (unaudited)
Performance highlights
| The Fund seeks total return, consisting of a high level of current income and capital appreciation. |
| Allspring Funds Management, LLC |
| Allspring Global Investments, LLC |
| Chris Lee, CFA, Michael J. Schueller, CFA |
Average annual total returns (%) as of February 29, 2024 |
| | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Administrator Class (WDHYX) | | | | | | | | | |
Institutional Class (STYIX) | | | | | | | | | |
Bloomberg U.S. Universal Bond Index3 | | | | | | | | | |
ICE BofA 1-3 Year BB U.S. Cash Pay High | | | | | | | | | |
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. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
|
| Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the Financial Highlights of this report, which do not include acquired fund fees and expenses. |
| The manager has contractually committed through December 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.81% for Class A, 1.56% for Class C, 0.65% 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. |
| The Bloomberg U.S. Universal Bond Index is an unmanaged market-value-weighted performance benchmark for the U.S.-dollar-denominated bond market, which includes investment-grade, high-yield, and emerging markets debt securities with maturities of one year or more. You cannot invest directly in an index. |
| The ICE BofA 1-3 Year BB U.S. Cash Pay High Yield Index, a subset of the ICE BofA U.S. High Yield Master II Index, tracks the performance of U.S- dollar denominated below investment grade rated corporate debt publicly issued in the U.S. domestic market. This subset includes all securities with a given investment grade rating BB with maturities between one to three years. Returns shown are net of transaction costs beginning on July 1, 2022. You cannot invest directly in an index. Copyright 2024. ICE Data Indices, LLC. All rights reserved |
Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. Loans are subject to risks similar to those associated with other below-investment-grade bond investments, such as credit risk (for example, risk of issuer default), below-investment-grade bond risk (for example, risk of greater volatility in value), and risk that the loan may become illiquid or difficult to price. 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 foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.
|
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring Short-Term High Income Fund
Performance highlights (unaudited)
Ten largest holdings (%) as of February 29, 20241 |
Enact Holdings, Inc., 6.50%, 8-15-2025 | |
CCO Holdings LLC/CCO Holdings Capital Corp., 5.13%, 5-1-2027 | |
Celanese U.S. Holdings LLC, 6.05%, 3-15-2025 | |
Northriver Midstream Finance LP, 5.63%, 2-15-2026 | |
CoreCivic, Inc., 8.25%, 4-15-2026 | |
Dave & Buster’s, Inc., 7.63%, 11-1-2025 | |
Fortress Transportation & Infrastructure Investors LLC, 6.50%, 10-1-2025 | |
Tenet Healthcare Corp., 4.88%, 1-1-2026 | |
Kinetik Holdings LP, 6.63%, 12-15-2028 | |
Air Canada Pass-Through Trust, 10.50%, 7-15-2026 | |
| Figures represent the percentage of the Fund’s net assets. Holdings are subject to change and may have changed since the date specified. |
Credit quality as of February 29, 20241 |
| The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the portfolio with the ratings depicted in the chart are calculated based on the market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of the three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified. |
Effective maturity distribution as of February 29, 20241 |
| Figures represent the percentage of the Fund’s long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Short-Term High Income Fund | 7
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 September 1, 2023 to February 29, 2024.
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
9-1-2023 | Ending
account value
2-29-2024 | | Annualized net
expense ratio |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by 182 divided by 366 (to reflect the one-half-year period). |
8 | Allspring Short-Term High Income Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Corporate bonds and notes: 77.48% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Celanese U.S. Holdings LLC | | | | | | |
| | | | | | |
| | | | | | |
Cleveland-Cliffs, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Outfront Media Capital LLC/Outfront Media Capital Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
CCO Holdings LLC/CCO Holdings Capital Corp.144A | | | | | | |
| | | | | | |
Sirius XM Radio, Inc.144A | | | | | | |
| | | | | | |
Telecommunications: 1.15% | | | | | | |
| | | | | | |
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC144A | | | | | | |
| | | | | | |
Consumer, cyclical: 20.94% | | | | | | |
| | | | | | |
American Airlines, Inc./AAdvantage Loyalty IP Ltd.144A | | | | | | |
| | | | | | |
Hawaiian Airlines Pass-Through Certificates Series 2013-1 Class A | | | | | | |
Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd.144A | | | | | | |
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Michael Kors USA, Inc.144A | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term High Income Fund | 9
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Auto manufacturers: 1.70% | | | | | | |
Ford Motor Credit Co. LLC | | | | | | |
Ford Motor Credit Co. LLC | | | | | | |
Ford Motor Credit Co. LLC | | | | | | |
| | | | | | |
Auto parts & equipment: 1.18% | | | | | | |
Adient Global Holdings Ltd.144A | | | | | | |
Clarios Global LP/Clarios U.S. Finance Co.144A | | | | | | |
Goodyear Tire & Rubber Co. | | | | | | |
| | | | | | |
Distribution/wholesale: 0.99% | | | | | | |
G-III Apparel Group Ltd.144A | | | | | | |
| | | | | | |
| | | | | | |
Churchill Downs, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Live Nation Entertainment, Inc.144A | | | | | | |
SeaWorld Parks & Entertainment, Inc.144A | | | | | | |
Six Flags Theme Parks, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Taylor Morrison Communities, Inc.144A | | | | | | |
Tri Pointe Group, Inc./Tri Pointe Homes, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Carnival Holdings Bermuda Ltd.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Hilton Domestic Operating Co., Inc.144A | | | | | | |
| | | | | | |
MGM Resorts International | | | | | | |
| | | | | | |
| | | | | | |
Bath & Body Works, Inc.144A | | | | | | |
Dave & Buster’s, Inc.144A | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Short-Term High Income Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Penske Automotive Group, Inc. | | | | | | |
PetSmart, Inc./PetSmart Finance Corp.144A | | | | | | |
| | | | | | |
Toys/games/hobbies: 0.06% | | | | | | |
| | | | | | |
Consumer, non-cyclical: 6.66% | | | | | | |
Commercial services: 3.32% | | | | | | |
Allied Universal Holdco LLC/Allied Universal Finance Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
Prime Security Services Borrower LLC/Prime Finance, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Performance Food Group, Inc.144A | | | | | | |
| | | | | | |
Healthcare-services: 2.05% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Energy-alternate sources: 0.33% | | | | | | |
TerraForm Power Operating LLC144A | | | | | | |
| | | | | | |
Aethon United BR LP/Aethon United Finance Corp.144A | | | | | | |
Antero Resources Corp.144A | | | | | | |
Antero Resources Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
Hilcorp Energy I LP/Hilcorp Finance Co.144A | | | | | | |
Nabors Industries, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Oil & gas services: 1.55% | | | | | | |
Archrock Partners LP/Archrock Partners Finance Corp.144A | | | | | | |
Oceaneering International, Inc. | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term High Income Fund | 11
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Oil & gas services(continued) | | | | | | |
USA Compression Partners LP/USA Compression Finance Corp. | | | | | | |
USA Compression Partners LP/USA Compression Finance Corp. | | | | | | |
| | | | | | |
| | | | | | |
Antero Midstream Partners LP/Antero Midstream Finance Corp.144A | | | | | | |
Antero Midstream Partners LP/Antero Midstream Finance Corp.144A | | | | | | |
| | | | | | |
DCP Midstream Operating LP | | | | | | |
EnLink Midstream Partners LP | | | | | | |
EQM Midstream Partners LP | | | | | | |
EQM Midstream Partners LP144A | | | | | | |
Hess Midstream Operations LP144A | | | | | | |
| | | | | | |
Rockies Express Pipeline LLC144A | | | | | | |
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp.144A | | | | | | |
Venture Global LNG, Inc.144A | | | | | | |
Western Midstream Operating LP | | | | | | |
Western Midstream Operating LP | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Citigroup, Inc. Series X (5 Year Treasury Constant Maturity+3.42%)ʊ± | | | | | | |
Diversified financial services: 6.91% | | | | | | |
| | | | | | |
Nationstar Mortgage Holdings, Inc.144A | | | | | | |
Nationstar Mortgage Holdings, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc.144A | | | | | | |
United Wholesale Mortgage LLC144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
HAT Holdings I LLC/HAT Holdings II LLC144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Short-Term High Income Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp.144A | | | | | | |
MPT Operating Partnership LP/MPT Finance Corp. | | | | | | |
| | | | | | |
Starwood Property Trust, Inc.144A | | | | | | |
Starwood Property Trust, Inc.144A | | | | | | |
Starwood Property Trust, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Spirit AeroSystems, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Electrical components & equipment: 1.62% | | | | | | |
WESCO Distribution, Inc.144A%% | | | | | | |
WESCO Distribution, Inc.144A | | | | | | |
| | | | | | |
Environmental control: 0.95% | | | | | | |
| | | | | | |
Machinery-diversified: 0.72% | | | | | | |
TK Elevator U.S. Newco, Inc.144A | | | | | | |
Packaging & containers: 3.10% | | | | | | |
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC144A | | | | | | |
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Mauser Packaging Solutions Holding Co.144A | | | | | | |
Owens-Brockway Glass Container, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Trucking & leasing: 1.77% | | | | | | |
| | | | | | |
Fortress Transportation & Infrastructure Investors LLC144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
ON Semiconductor Corp.144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term High Income Fund | 13
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
NextEra Energy Operating Partners LP144A | | | | | | |
NextEra Energy Operating Partners LP144A | | | | | | |
NextEra Energy Operating Partners LP144A | | | | | | |
NSG Holdings LLC/NSG Holdings, Inc.144A | | | | | | |
Pattern Energy Operations LP/Pattern Energy Operations, Inc.144A | | | | | | |
Vistra Operations Co. LLC144A | | | | | | |
Vistra Operations Co. LLC144A | | | | | | |
| | | | | | |
Total corporate bonds and notes (Cost $1,397,685,615) | | | | | | |
| | | | | |
Investment companies: 0.56% | | | | | | |
Exchange-traded funds: 0.56% | | | | | | |
SPDR Bloomberg Short Term High Yield Bond ETF | | | | | | |
Total investment companies (Cost $9,938,700) | | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
DirecTV Financing LLC (U.S. SOFR 1 Month+5.00%)± | | | | | | |
Consumer, cyclical: 2.12% | | | | | | |
| | | | | | |
Mileage Plus Holdings LLC (U.S. SOFR 3 Month+5.25%)± | | | | | | |
SkyMiles IP Ltd. (U.S. SOFR 3 Month+3.75%)± | | | | | | |
| | | | | | |
Auto parts & equipment: 0.15% | | | | | | |
First Brands Group LLC (U.S. SOFR 3 Month+5.00%)± | | | | | | |
| | | | | | |
Carnival Corp. (U.S. SOFR 1 Month+3.00%)± | | | | | | |
| | | | | | |
Petco Health & Wellness Co., Inc. (U.S. SOFR 3 Month+3.25%)± | | | | | | |
Consumer, non-cyclical: 1.25% | | | | | | |
Commercial services: 0.95% | | | | | | |
Geo Group, Inc. (U.S. SOFR 1 Month+6.88%)± | | | | | | |
Healthcare-services: 0.30% | | | | | | |
Select Medical Corp. (U.S. SOFR 1 Month+3.00%)± | | | | | | |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Short-Term High Income Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
AL NGPL Holdings LLC (U.S. SOFR 3 Month+3.50%)± | | | | | | |
GIP III Stetson I LP (U.S. SOFR 1 Month+4.25%)± | | | | | | |
Prairie ECI Acquiror LP (U.S. SOFR 3 Month+4.75%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Asurion LLC (U.S. SOFR 1 Month+3.25%)± | | | | | | |
| | | | | | |
| | | | | | |
Constellation Renewables LLC (U.S. SOFR 3 Month+2.50%)± | | | | | | |
Total loans (Cost $97,482,342) | | | | | | |
Yankee corporate bonds and notes: 10.74% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Consumer, cyclical: 3.56% | | | | | | |
| | | | | | |
Air Canada Pass-Through Trust Series 2020-1 Class C144A | | | | | | |
Auto parts & equipment: 0.39% | | | | | | |
| | | | | | |
| | | | | | |
International Game Technology PLC144A | | | | | | |
| | | | | | |
| | | | | | |
Royal Caribbean Cruises Ltd.144A | | | | | | |
| | | | | | |
Consumer, non-cyclical: 0.71% | | | | | | |
| | | | | | |
Teva Pharmaceutical Finance Netherlands III BV | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Borr IHC Ltd./Borr Finance LLC144A | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term High Income Fund | 15
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Northriver Midstream Finance LP144A | | | | | | |
| | | | | | |
| | | | | | |
Intesa Sanpaolo SpA (5 Year USD Swap Rate+5.46%)144Aʊ± | | | | | | |
Diversified financial services: 0.68% | | | | | | |
Macquarie Airfinance Holdings Ltd.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Sensata Technologies BV144A | | | | | | |
Packaging & containers: 0.39% | | | | | | |
Trivium Packaging Finance BV144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total yankee corporate bonds and notes (Cost $191,593,040) | | | | | | |
| | | | | |
Short-term investments: 6.15% | | | | | | |
Investment companies: 6.15% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞## | | | | | | |
Total short-term investments (Cost $111,081,519) | | | | | | |
Total investments in securities (Cost $1,807,781,216) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| 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. |
| Security is perpetual in nature and has no stated maturity date. The date shown reflects the next call date. |
| Variable rate investment. The rate shown is the rate in effect at period end. |
| 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 as collateral for when-issued securities. |
|
| Real estate investment trust |
| Secured Overnight Financing Rate |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Short-Term High Income Fund
Portfolio of investments—February 29, 2024 (unaudited)
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term High Income Fund | 17
Statement of assets and liabilities—February 29, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $1,696,699,697) | |
Investments in affiliated securities, at value (cost $111,081,519) | |
| |
| |
Receivable for Fund shares sold | |
Receivable for investments sold | |
Prepaid expenses and other assets | |
| |
| |
Payable for investments purchased | |
Payable for when-issued transactions | |
Payable for Fund shares redeemed | |
| |
Administration fees payable | |
| |
| |
Trustees’ fees and expenses payable | |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
| |
| |
Computation of net asset value and offering price per share | |
| |
Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
| |
Shares outstanding–Class C1 | |
Net asset value per share–Class C | |
Net assets–Administrator Class | |
Shares outstanding–Administrator Class1 | |
Net asset value per share–Administrator Class | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
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.
18 | Allspring Short-Term High Income Fund
Statement of operations—six months ended February 29, 2024 (unaudited)
Statement of operations
| |
| |
Income from affiliated securities | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Shareholder servicing fees | |
| |
| |
| |
| |
| |
Custody and accounting fees | |
| |
| |
Shareholder report expenses | |
Trustees’ fees and expenses | |
| |
| |
Less: Fee waivers and/or expense reimbursements | |
| |
| |
| |
| |
| |
| |
Realized and unrealized gains (losses) on investments | |
Net realized losses on investments | |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term High Income Fund | 19
Statement of changes in net assets
Statement of changes in net assets
|
Six months ended
February 29, 2024 (unaudited) | Year ended August 31, 2023 |
| | | | |
| | | | |
Net realized losses on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to shareholders from | | | | |
Net investment income and net realized gains | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Payment for shares redeemed | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net increase in net assets resulting from capital share transactions | | | | |
Total increase in net assets | | | | |
| | | | |
| | | | |
| | | | |
The accompanying notes are an integral part of these financial statements.
20 | Allspring Short-Term High Income Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| 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 Short-Term High Income Fund | 21
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| 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.
22 | Allspring Short-Term High Income Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Short-Term High Income Fund | 23
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
24 | Allspring Short-Term High Income Fund
Notes to financial statements (unaudited)
Notes to financial statements
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 High 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.
Equity securities and exchange-traded funds that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
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.
Loans
The Fund may invest in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When the Fund purchases participations, it generally has no rights to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund assumes the credit risk of both the borrower and the lender that is selling the participation. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan and may enforce compliance by the borrower with the terms of the loan agreement. Loans may include fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding. Unfunded loan commitments represent the remaining obligation of the Fund to the borrower. At any point in time, up to the maturity date of the issue, the borrower may demand the unfunded portion. Unfunded amounts, if any, are marked to market and any unrealized gains or losses are recorded in the Statement of Assets and Liabilities.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status. Paydown gains and losses are included in interest income.
Allspring Short-Term High Income Fund | 25
Notes to financial statements (unaudited)
Interest earned on cash balances held at the custodian is recorded as interest income.
Income dividends and capital gain distributions from investment companies are recorded on the ex-dividend date. Capital gain distributions from investment companies are treated as realized gains.
Distributions to shareholders
Distributions to shareholders from net investment income 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 February 29, 2024, the aggregate cost of all investments for federal income tax purposes was $1,811,099,201 and the unrealized gains (losses) consisted of:
As of August 31, 2023, the Fund had capital loss carryforwards which consisted of $15,459,703 in short-term capital losses and $44,732,582 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.
26 | Allspring Short-Term High Income Fund
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of February 29, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
| | | | |
| | | | |
Corporate bonds and notes | | | | |
| | | | |
| | | | |
Yankee corporate bonds and notes | | | | |
| | | | |
| | | | |
| | | | |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
At February 29, 2024, 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:
For the six months ended February 29, 2024, the management fee was equivalent to an annual rate of 0.47% 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 |
| |
| |
| |
| |
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
Allspring Short-Term High Income Fund | 27
Notes to financial statements (unaudited)
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 December 31, 2024 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. As of February 29, 2024, the contractual caps are as follows:
Distribution fee
The Trust has adopted a distribution plan for Class C shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended February 29, 2024, Allspring Funds Distributor received $5,622 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended February 29, 2024.
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 did not have any material interfund transactions during the six months ended February 29, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended February 29, 2024 were $561,128,132 and $346,468,977, respectively.
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended February 29, 2024, there were no borrowings by the Fund under the agreement.
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 Short-Term High Income Fund
Other information (unaudited)
Other information
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 Short-Term High Income 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 100 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 Information†. 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
| | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | | 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. Serves on the Investment Company Institute’s Board of Governors since 2022 and Executive Committee since 2023 as well as the Vice Chairman of the Governing Council of the Independent Directors Council since 2023. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Foundation (non-profit organization). Mr. Ebsworth is a CFA charterholder. | |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
| 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. | |
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). | |
David F. Larcker
(Born 1950) | | 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. | |
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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
†
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 Short-Term High Income Fund
Other information (unaudited)
| Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
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. | |
James G. Polisson
(Born 1959) | | 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. | |
Pamela Wheelock
(Born 1959) | Trustee,
since January 2020;
previously Trustee from
January 2018 to
| 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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
Allspring Short-Term High Income Fund | 31
Other information (unaudited)
Officers1
| Position held and
length of service | Principal occupations during past five years or longer |
| | 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 Short-Term High Income Fund
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-03052024-j5i4g2es 04-24
SAR3017 02-24
Allspring Ultra Short-Term Income Fund
Semi-Annual Report
February 29, 2024
The views expressed and any forward-looking statements are as of February 29, 2024, 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 Income Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Allspring Ultra Short-Term Income Fund for the six-month period that ended February 29, 2024. Globally, stocks and bonds generally had positive returns for the period. However, markets were volatile as investors focused on persistently high inflation and the impact of aggressive central bank rate hikes. Riskier assets rallied as investors anticipated an end to the tight monetary policy.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 13.93%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 gained 7.90% while the MSCI EM Index (Net) (USD),3 returned 4.93%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index4 returned 2.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged)5 gained 1.96%, the Bloomberg Municipal Bond Index6 returned 4.33%, and the ICE BofA U.S. High Yield Index7 gained 6.15%.
Investors remained focused on central bank monetary policies.
As the six-month period began, stocks and bonds both had negative overall returns in September as investors were disappointed by the Federal Reserve’s (Fed’s) determination not to lower interest rates until it has confidence that it has tamed persistently high inflation. As of September, the two primary gauges of U.S. inflation—the annual Core Personal Consumption Expenditures Price Index8 and the Consumer Price Index (CPI)9—both stood at roughly 4%, twice as high as the Fed’s oft-stated 2% target. The month ended with the prospect of yet another U.S. government shutdown, averted at least temporarily but looming later in the year.
October was a tough month for financial markets overall. Key global and domestic indexes all were pushed down by rising geopolitical tensions—particularly the Israel-Hamas conflict—and concerns over the Fed’s “higher for longer” monetary policy. The U.S. 10-year Treasury yield rose above 5% for the first time since 2007. Commodity prices did well as oil prices rallied in response to the prospect of oil supply disruptions from the Middle East. U.S. annualized third quarter gross domestic product (GDP) was estimated at a healthier-than-anticipated 4.9%. China’s GDP indicated surprisingly strong industrial production and retail sales, offset by ongoing weakness in its real estate sector.
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. Returns shown are net of transaction costs beginning on July 1, 2022. You cannot invest directly in an index. Copyright 2024. ICE Data Indices, LLC. All rights reserved.
8
The Core Personal Consumption Expenditures Price Index (PCE) is a measure of prices that people living in the United States, or those buying on their behalf, pay for goods and services. It is sometimes called the core PCE price index, because two categories that can have price swings – food and energy – are left out to make underlying inflation easier to see. You cannot invest directly in an index.
9
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. You cannot invest directly in an index.
2 | Allspring Ultra Short-Term Income Fund
Letter to shareholders (unaudited)
“ In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. ”
In November, the market mood turned positive as cooling inflation inspired confidence that central banks could hold off on further rate hikes. Overall annual inflation in the U.S. fell to 3.1% in November while 12-month inflation in the U.K. and eurozone eased to 4.6% and 2.4%, respectively—far below their peak levels of mid-2022. Third quarter annualized U.S. GDP growth was raised to an estimated 5.2% while U.S. job totals rose by just below 200,000 in November, indicating a slight cooling of the labor market. All of this fresh evidence added to confidence for a U.S. soft economic landing, leading to a more buoyant mood heading into winter as the Federal Open Market Committee held rates steady at its December meeting.
The broad year-end rally among stocks and bonds that began in November continued through December as investors became more confident that monetary policy would ease in 2024. Supporting the bubbly market mood were a series of reports confirming lower inflationary trends in the U.S. and Europe. During the period, it appeared more likely that the U.S. economy could achieve a soft landing, cooling enough to lower inflation without the pain of a recession. However, by year-end, an expectations gap developed. Capital markets priced in a total of 1.50 percentage points in federal funds rate cuts in 2024, twice as much as the three cuts of 0.25% hinted at by Fed officials.
Financial market performance was mixed in January 2024 as U.S. stocks had modest gains while non-U.S. equities, particularly those in emerging markets, and fixed income assets were held back by central banker pushback on market optimism over rate cuts. Overall, optimism was supported by indications of a soft landing for the U.S. economy. Key data included a surprisingly strong gain of 353,000 jobs in January, an unemployment rate of just 3.7%, and a rise of just 3.1% in the CPI in January. However, that resilience helped push back expectations of a rate cut in March to a more likely second quarter initial move.
In February, stocks were supported by positive economic data and strong corporate earnings. However, fixed income investments were under pressure as resilient inflation led to lowered expectations on the timing of interest rate cuts. The S&P 500 Index had solid monthly gains along with emerging market equities, which benefited from a rebound in China.
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 a wide variety of mutual funds spanning many asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
Allspring Ultra Short-Term Income Fund | 3
Letter to shareholders (unaudited)
|
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. |
4 | Allspring Ultra Short-Term Income Fund
This page is intentionally left blank.
Performance highlights (unaudited)
Performance highlights
| The Fund seeks current income consistent with capital preservation. |
| Allspring Funds Management, LLC |
| Allspring Global Investments, LLC |
| Christopher Y. Kauffman, CFA, Janet S. Rilling, CFA, CPA, Michael J. Schueller, CFA, Michal Stanczyk, Noah M. Wise, CFA |
Average annual total returns (%) as of February 29, 2024 |
| | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Administrator Class (WUSDX) | | | | | | | | | |
Institutional Class (SADIX) | | | | | | | | | |
Bloomberg U.S. Aggregate Bond Index4 | | | | | | | | | |
Bloomberg Short-Term Government/Corporate Bond Index5 | | | | | | | | | |
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, Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
|
| Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the Financial Highlights of this report, which do not include acquired fund fees and expenses. |
| The manager has contractually committed through December 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.50% for Class A, 0.40% for Class A2, 1.25% for Class C, 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. |
| 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. |
| 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. |
| The Bloomberg Short-Term Government/Corporate Bond Index contains securities that have fallen out of the Bloomberg Government/Credit Bond Index because of the standard minimum one-year-to-maturity constraint. Securities in the Bloomberg Short-Term Government/Corporate Bond Index must have a maturity from 1 up to (but not including) 12 months. You cannot invest directly in an index. |
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring Ultra Short-Term Income Fund
Performance highlights (unaudited)
Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. Loans are subject to risks similar to those associated with other below-investment-grade bond investments, such as credit risk (for example, risk of issuer default), below-investment-grade bond risk (for example, risk of greater volatility in value), and risk that the loan may become illiquid or difficult to price. The use of derivatives may reduce returns and/or increase volatility. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. 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 mortgage-and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks.
Allspring Ultra Short-Term Income Fund | 7
Performance highlights (unaudited)
Ten largest holdings (%) as of February 29, 20241 |
U.S. Treasury Notes, 4.25%, 1-31-2026 | |
SPDR Portfolio Short Term Corporate Bond ETF | |
GA Global Funding Trust, 1.00%, 4-8-2024 | |
SPGN Mortgage Trust, 6.87%, 2-15-2039 | |
Danske Bank AS, 3.77%, 3-28-2025 | |
OPG Trust, 5.92%, 10-15-2036 | |
Palmer Square CLO Ltd., 6.58%, 10-17-2031 | |
Domino’s Pizza Master Issuer LLC, 4.47%, 10-25-2045 | |
Renesas Electronics Corp., 1.54%, 11-26-2024 | |
TRTX Issuer Ltd., 6.97%, 2-15-2039 | |
| Figures represent the percentage of the Fund’s net assets. Holdings are subject to change and may have changed since the date specified. |
Portfolio composition as of February 29, 20241 |
| Figures represent the percentage of the Fund’s long-term investments. Allocations are subject to change and may have changed since the date specified. |
8 | Allspring Ultra Short-Term 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 September 1, 2023 to February 29, 2024.
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
9-1-2023 | Ending
account value
2-29-2024 | | Annualized net
expense ratio |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| | | | |
| | | | |
Hypothetical (5% return before expenses) | | | | |
| Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by 182 divided by 366 (to reflect the one-half-year period). |
Allspring Ultra Short-Term Income Fund | 9
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FHLMC Multifamily Structured Pass-Through Certificates Series Q004 Class AFL (12 Month Treasury Average+0.74%)± | | | | | | |
FHLMC Structured Pass-Through Certificates Series T-42 Class A6 | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.21%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.23%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC (1 Year Treasury Constant Maturity+2.25%)± | | | | | | |
FHLMC Series 3924 Class MF (30 Day Average U.S. SOFR+0.61%)± | | | | | | |
FHLMC Series 4889 Class CD | | | | | | |
FHLMC Series 4938 Class BF (30 Day Average U.S. SOFR+0.61%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.02%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.19%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.20%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.21%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.21%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.22%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.22%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.24%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.24%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.24%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.26%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.28%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.31%)± | | | | | | |
FNMA (1 Year Treasury Constant Maturity+2.36%)± | | | | | | |
FNMA (12 Month Treasury Average+2.05%)± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
FNMA Series 2000-T6 Class A2 | | | | | | |
FNMA Series 2001-T10 Class A3 | | | | | | |
FNMA Series 2001-T12 Class A3 | | | | | | |
FNMA Series 2002-T1 Class A4 | | | | | | |
FNMA Series 2002-W4 Class A6±± | | | | | | |
FNMA Series 2003-W11 Class A1±± | | | | | | |
FNMA Series 2003-W3 Class 1A4±± | | | | | | |
FNMA Series 2007-W2 Class 1A1 (30 Day Average U.S. SOFR+0.43%)± | | | | | | |
FNMA Series 2010-37 Class A1 | | | | | | |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Ultra Short-Term Income Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Agency securities(continued) | | | | | | |
FNMA Series 2013-23 Class LF (30 Day Average U.S. SOFR+0.46%)± | | | | | | |
FNMA Series 2014-19 Class HA | | | | | | |
| | | | | | |
Total agency securities (Cost $15,570,807) | | | | | | |
Asset-backed securities: 20.97% | | | | | | |
ACRES Commercial Realty Ltd. Series 2021-FL2 Class A (U.S. SOFR 1 Month+1.51%)144A± | | | | | | |
Aqua Finance Trust Series 2021-A Class A144A | | | | | | |
BHG Securitization Trust Series 2021-A Class A144A | | | | | | |
Black Diamond CLO Ltd. Series 2017-1A Class A1AR (U.S. SOFR 3 Month+1.31%)144A± | | | | | | |
BRAVO Residential Funding Trust Series 2021-HE2 Class A1 (30 Day Average U.S. SOFR+0.75%)144A± | | | | | | |
Carlyle C17 CLO Ltd. Series C17A Class A1AR (U.S. SOFR 3 Month+1.29%)144A± | | | | | | |
Carlyle Global Market Strategies CLO Ltd. Series 2015-1A Class AR3 (U.S. SOFR 3 Month+1.24%)144A± | | | | | | |
CCG Receivables Trust Series 2022-1 Class A2144A | | | | | | |
CFMT LLC Series 2021-AL1 Class B144A | | | | | | |
CFMT LLC Series 2021-EBO1 Class A144A±± | | | | | | |
CFMT LLC Series 2021-HB7 Class A144A±± | | | | | | |
CIFC Funding Ltd. Series 2018-1A Class A (U.S. SOFR 3 Month+1.26%)144A± | | | | | | |
Commonbond Student Loan Trust Series 2018-BGS Class A1144A | | | | | | |
Domino’s Pizza Master Issuer LLC Series 2015-1A Class A2II144A | | | | | | |
Dryden 30 Senior Loan Fund Series 2013-30A Class AR (U.S. SOFR 3 Month+1.08%)144A± | | | | | | |
Dryden 80 CLO Ltd. Series 2019-80A Class AR (U.S. SOFR 3 Month+1.25%)144A± | | | | | | |
DT Auto Owner Trust Series 2019-4A Class D144A | | | | | | |
ECMC Group Student Loan Trust Series 2020-2A Class A (30 Day Average U.S. SOFR+1.26%)144A± | | | | | | |
Enterprise Fleet Funding LLC Series 2021-1 Class A2144A | | | | | | |
EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3 (U.S. SOFR 1 Month+1.24%)± | | | | | | |
Exeter Automobile Receivables Trust Series 2020-1A Class D144A | | | | | | |
Exeter Automobile Receivables Trust Series 2021-3A Class C | | | | | | |
GLS Auto Receivables Issuer Trust Series 2020-1A Class C144A | | | | | | |
Hertz Vehicle Financing LLC Series 2021-1A Class A144A | | | | | | |
HGI CRE CLO Ltd. Series 2021-FL2 Class A (U.S. SOFR 1 Month+1.11%)144A± | | | | | | |
MF1 Ltd. Series 2021-FL7 Class A (U.S. SOFR 1 Month+1.19%)144A± | | | | | | |
MF1 Ltd. Series 2022-FL8 Class A (U.S. SOFR 1 Month+1.35%)144A± | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Income Fund | 11
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Asset-backed securities(continued) | | | | | | |
MF1 Multifamily Housing Mortgage Loan Trust Series 2021-FL5 Class A (U.S. SOFR 1 Month+0.96%)144A± | | | | | | |
| | | | | | |
Navient Private Education Refinance Loan Trust Series 2018-CA Class A2144A | | | | | | |
Navient Private Education Refinance Loan Trust Series 2021-EA Class A144A | | | | | | |
Navient Student Loan Trust Series 2017-3A Class A3 (30 Day Average U.S. SOFR+1.16%)144A± | | | | | | |
Octagon Investment Partners 30 Ltd. Series 2017-1A Class A1R (U.S. SOFR 3 Month+1.26%)144A± | | | | | | |
Octane Receivables Trust Series 2021-1A Class A144A | | | | | | |
OnDeck Asset Securitization Trust LLC Series 2021-1A Class A144A | | | | | | |
OneMain Direct Auto Receivables Trust Series 2021-1A Class A144A | | | | | | |
Palmer Square CLO Ltd. Series 2013-2A Class A1A3 (U.S. SOFR 3 Month+1.26%)144A± | | | | | | |
PFS Financing Corp. Series 2021-A Class A144A | | | | | | |
Santander Drive Auto Receivables Trust Series 2020-4 Class D | | | | | | |
SLM Student Loan Trust Series 2003-10A Class A4 (90 Day Average U.S. SOFR+0.93%)144A± | | | | | | |
SLM Student Loan Trust Series 2013-1 Class A3 (30 Day Average U.S. SOFR+0.66%)± | | | | | | |
Sound Point CLO VIII-R Ltd. Series 2015-1RA Class AR (U.S. SOFR 3 Month+1.34%)144A± | | | | | | |
SpringCastle America Funding LLC Series 2020-AA Class A144A | | | | | | |
TCI-Symphony CLO Ltd. Series 2016-1A Class AR2 (U.S. SOFR 3 Month+1.28%)144A± | | | | | | |
THL Credit Wind River CLO Ltd. Series 2013-2A Class AR2 (U.S. SOFR 3 Month+1.26%)144A± | | | | | | |
Towd Point Asset Trust Series 2018-SL1 Class A (U.S. SOFR 1 Month+0.71%)144A± | | | | | | |
TRTX Issuer Ltd. Series 2022-FL5 Class A (30 Day Average U.S. SOFR+1.65%)144A± | | | | | | |
U.S. Bank NA Series 2023-1 Class B144A | | | | | | |
Voya CLO Ltd. Series 2017-1A Class A1R (U.S. SOFR 3 Month+1.21%)144A± | | | | | | |
Zais CLO Ltd. Series 2020-14A Class A1AR (U.S. SOFR 3 Month+1.46%)144A± | | | | | | |
Total asset-backed securities (Cost $276,003,749) | | | | | | |
Corporate bonds and notes: 23.50% | | | | | | |
| | | | | | |
| | | | | | |
Celanese U.S. Holdings LLC | | | | | | |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Ultra Short-Term Income Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
Charter Communications Operating LLC/Charter Communications Operating Capital | | | | | | |
Telecommunications: 0.16% | | | | | | |
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC144A | | | | | | |
Consumer, cyclical: 4.64% | | | | | | |
| | | | | | |
Delta Air Lines, Inc./SkyMiles IP Ltd.144A | | | | | | |
U.S. Airways Pass-Through Trust Series 2013-1 Class A | | | | | | |
| | | | | | |
| | | | | | |
Michael Kors USA, Inc.144A | | | | | | |
| | | | | | |
| | | | | | |
Auto manufacturers: 2.12% | | | | | | |
Daimler Truck Finance North America LLC144A | | | | | | |
Ford Motor Credit Co. LLC | | | | | | |
General Motors Financial Co., Inc. | | | | | | |
Hyundai Capital America144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Consumer, non-cyclical: 0.73% | | | | | | |
| | | | | | |
Philip Morris International, Inc. | | | | | | |
| | | | | | |
Bayer U.S. Finance LLC144A | | | | | | |
| | | | | | |
| | | | | | |
Bank of America Corp. (U.S. SOFR+0.65%)± | | | | | | |
Citigroup, Inc. (U.S. SOFR+0.67%)± | | | | | | |
Citigroup, Inc. (U.S. SOFR+0.69%)± | | | | | | |
Goldman Sachs Group, Inc. (U.S. SOFR+0.49%)± | | | | | | |
JPMorgan Chase & Co. (U.S. SOFR+0.49%)± | | | | | | |
JPMorgan Chase & Co. (U.S. SOFR+0.92%)± | | | | | | |
JPMorgan Chase & Co. (U.S. SOFR 3 Month+0.54%)± | | | | | | |
Morgan Stanley (U.S. SOFR+0.56%)± | | | | | | |
Morgan Stanley (U.S. SOFR+1.16%)± | | | | | | |
National Securities Clearing Corp.144A | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Income Fund | 13
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
| | | | | | |
Santander Holdings USA, Inc. (U.S. SOFR+1.38%)± | | | | | | |
U.S. Bancorp (U.S. SOFR+1.88%)± | | | | | | |
| | | | | | |
| | | | | | |
Allied World Assurance Co. Holdings Ltd. | | | | | | |
Athene Global Funding144A | | | | | | |
Brighthouse Financial Global Funding144A | | | | | | |
Equitable Financial Life Global Funding144A | | | | | | |
GA Global Funding Trust144A | | | | | | |
Met Tower Global Funding144A | | | | | | |
Principal Life Global Funding II144A | | | | | | |
Security Benefit Global Funding144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Omega Healthcare Investors, Inc. | | | | | | |
| | | | | | |
WEA Finance LLC/Westfield U.K. & Europe Finance PLC144A | | | | | | |
| | | | | | |
| | | | | | |
Hand/machine tools: 0.41% | | | | | | |
| | | | | | |
Trucking & leasing: 0.78% | | | | | | |
| | | | | | |
Penske Truck Leasing Co. LP/PTL Finance Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
CenterPoint Energy, Inc. (U.S. SOFR+0.65%)± | | | | | | |
National Rural Utilities Cooperative Finance Corp. | | | | | | |
NextEra Energy Operating Partners LP144A | | | | | | |
Oncor Electric Delivery Co. LLC | | | | | | |
Southern California Edison Co.%% | | | | | | |
Vistra Operations Co. LLC144A | | | | | | |
| | | | | | |
Total corporate bonds and notes (Cost $307,544,104) | | | | | | |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Ultra Short-Term Income Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Investment companies: 2.97% | | | | | | |
Exchange-traded funds: 2.97% | | | | | | |
iShares 0-5 Year High Yield Corporate Bond ETF | | | | | | |
SPDR Portfolio Short Term Corporate Bond ETF | | | | | | |
Total investment companies (Cost $39,934,659) | | | | | | |
| | | | | |
Municipal obligations: 0.12% | | | | | | |
| | | | | | |
| | | | | | |
Indiana Secondary Market for Education Loans, Inc. (U.S. SOFR 1 Month+0.80%)± | | | | | | |
Total municipal obligations (Cost $1,563,015) | | | | | | |
Non-agency mortgage-backed securities: 13.85% | | | | | | |
Angel Oak Mortgage Trust Series 2020-4 Class A1144A±± | | | | | | |
Angel Oak Mortgage Trust Series 2020-5 Class A2144A±± | | | | | | |
Angel Oak Mortgage Trust Series 2020-R1 Class A1144A±± | | | | | | |
BRAVO Residential Funding Trust Series 2020-RPL1 Class A1144A±± | | | | | | |
Bunker Hill Loan Depositary Trust Series 2019-2 Class A1144A | | | | | | |
Cascade Funding Mortgage Trust Series 2018-RM2 Class A144A±± | | | | | | |
CHL Mortgage Pass-Through Trust Series 2001-HYB1 Class 1A1±± | | | | | | |
CHL Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1±± | | | | | | |
CHNGE Mortgage Trust Series 2022-2 Class A1144A±± | | | | | | |
Citigroup Global Markets Mortgage Securities VII, Inc. Series 1990-2 Class A±± | | | | | | |
COLT Mortgage Loan Trust Series 2020-2 Class A1144A±± | | | | | | |
COLT Mortgage Loan Trust Series 2021-HX1 Class A1144A±± | | | | | | |
COLT Pass-Through Certificates Series 2021-1R Class A1144A±± | | | | | | |
CSAIL Commercial Mortgage Trust Series 2018-CX12 Class A2 | | | | | | |
CSMC Trust Series 2020-AFC1 Class A3144A±± | | | | | | |
CSMC Trust Series 2021-NQM2 Class A1144A±± | | | | | | |
CSMC Trust Series 2022-NQM1 Class A1144A±± | | | | | | |
Ellington Financial Mortgage Trust Series 2020-1 Class A1144A±± | | | | | | |
Ellington Financial Mortgage Trust Series 2021-1 Class A1144A±± | | | | | | |
GCAT Trust Series 2022-HX1 Class A1144A±± | | | | | | |
GS Mortgage-Backed Securities Trust Series 2020-NQM1 Class A1144A±± | | | | | | |
GSMPS Mortgage Loan Trust Series 1998-1 Class A144A±± | | | | | | |
Imperial Fund Mortgage Trust Series 2020-NQM1 Class A1144A±± | | | | | | |
Imperial Fund Mortgage Trust Series 2021-NQM1 Class A1144A±± | | | | | | |
Imperial Fund Mortgage Trust Series 2021-NQM3 Class A1144A±± | | | | | | |
Imperial Fund Mortgage Trust Series 2022-NQM3 Class A1144A | | | | | | |
JP Morgan Chase Commercial Mortgage Securities Trust Series 2018-PHH Class A (U.S. SOFR 1 Month+1.26%)144A± | | | | | | |
JP Morgan Mortgage Trust Series 2019-7 Class B2A144A±± | | | | | | |
Legacy Mortgage Asset Trust Series 2020-RPL1 Class A1144A±± | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Income Fund | 15
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
Non-agency mortgage-backed securities(continued) | | | | | | |
MASTR Adjustable Rate Mortgages Trust Series 2002-3 Class 4A1±± | | | | | | |
Med Trust Series 2021-MDLN Class A (U.S. SOFR 1 Month+1.06%)144A± | | | | | | |
MFA Trust Series 2020-NQM1 Class A1144A±± | | | | | | |
MFA Trust Series 2020-NQM3 Class A1144A±± | | | | | | |
MFA Trust Series 2021-NQM1 Class A1144A±± | | | | | | |
Mill City Mortgage Loan Trust Series 2017-2 Class A1144A±± | | | | | | |
Mill City Mortgage Loan Trust Series 2018-2 Class A1144A±± | | | | | | |
New Residential Mortgage Loan Trust Series 2021-INV1 Class A6144A±± | | | | | | |
NewRez Warehouse Securitization Trust Series 2021-1 Class A (U.S. SOFR 1 Month+0.86%)144A± | | | | | | |
OBX Trust Series 2020-EXP1 Class 1A8144A±± | | | | | | |
OBX Trust Series 2021-NQM3 Class A1144A±± | | | | | | |
OPG Trust Series 2021-PORT Class A (U.S. SOFR 1 Month+0.60%)144A± | | | | | | |
Ready Capital Mortgage Trust Series 2019-5 Class A144A | | | | | | |
Residential Mortgage Loan Trust Series 2019-2 Class A1144A±± | | | | | | |
Residential Mortgage Loan Trust Series 2021-1R Class A1144A±± | | | | | | |
SPGN Mortgage Trust Series 2022-TFLM Class A (U.S. SOFR 1 Month+1.55%)144A± | | | | | | |
Starwood Mortgage Residential Trust Series 2020-1 Class A3144A±± | | | | | | |
Starwood Mortgage Residential Trust Series 2021-2 Class A1144A±± | | | | | | |
Towd Point Mortgage Trust Series 2017-1 Class A1144A±± | | | | | | |
Towd Point Mortgage Trust Series 2017-4 Class A1144A±± | | | | | | |
Towd Point Mortgage Trust Series 2017-6 Class A1144A±± | | | | | | |
Towd Point Mortgage Trust Series 2018-2 Class A1144A±± | | | | | | |
Towd Point Mortgage Trust Series 2018-3 Class A1144A±± | | | | | | |
TRK Trust Series 2021-INV2 Class A1144A±± | | | | | | |
UBS Commercial Mortgage Trust Series 2018-NYCH Class A (U.S. SOFR 1 Month+0.90%)144A± | | | | | | |
Verus Securitization Trust Series 2019-INV3 Class A1144A±± | | | | | | |
Verus Securitization Trust Series 2020-2 Class A1144A±± | | | | | | |
Verus Securitization Trust Series 2020-INV1 Class A1144A±± | | | | | | |
Verus Securitization Trust Series 2021-1 Class A2144A±± | | | | | | |
Verus Securitization Trust Series 2021-2 Class A1144A±± | | | | | | |
Verus Securitization Trust Series 2021-R3 Class A1144A±± | | | | | | |
Wilshire Funding Corp. Series 1996-3 Class M2±± | | | | | | |
Wilshire Funding Corp. Series 1996-3 Class M3±± | | | | | | |
Wilshire Funding Corp. Series 1998-WFC2 Class M1 (12 Month Treasury Average+2.00%)± | | | | | | |
Total non-agency mortgage-backed securities (Cost $195,950,803) | | | | | | |
U.S. Treasury securities: 5.88% | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Ultra Short-Term Income Fund
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
U.S. Treasury securities(continued) | | | | | | |
| | | | | | |
| | | | | | |
Total U.S. Treasury securities (Cost $76,551,184) | | | | | | |
Yankee corporate bonds and notes: 8.33% | | | | | | |
| | | | | | |
| | | | | | |
Harvest Operations Corp.144A | | | | | | |
Woodside Finance Ltd.144A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Banque Federative du Credit Mutuel SA144A | | | | | | |
| | | | | | |
Danske Bank AS (1 Year Treasury Constant Maturity+1.45%)144A± | | | | | | |
Federation des Caisses Desjardins du Quebec144A | | | | | | |
HSBC Holdings PLC (U.S. SOFR 3 Month+1.47%)± | | | | | | |
Mitsubishi UFJ Financial Group, Inc. (1 Year Treasury Constant Maturity+1.08%)± | | | | | | |
Sumitomo Mitsui Financial Group, Inc. | | | | | | |
UBS Group AG (1 Year Treasury Constant Maturity+1.60%)144A± | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Renesas Electronics Corp.144A | | | | | | |
| | | | | | |
| | | | | | |
Total yankee corporate bonds and notes (Cost $108,654,630) | | | | | | |
| | | | | |
Short-term investments: 23.10% | | | | | | |
Investment companies: 5.26% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞## | | | | | | |
| | | | | |
U.S. Treasury securities: 17.84% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Income Fund | 17
Portfolio of investments—February 29, 2024 (unaudited)
| | | | | |
U.S. Treasury securities(continued) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total short-term investments (Cost $299,472,654) | | | | | | |
Total investments in securities (Cost $1,321,245,605) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| Variable rate investment. The rate shown is the rate in effect at period end. |
| The coupon of the security is adjusted based on the principal and/or interest payments received from the underlying pool of mortgages as well as the credit quality and the actual prepayment speed of the underlying mortgages. The rate shown is the rate in effect at period end. |
| 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. |
| Security is valued using significant unobservable inputs. |
| 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 as collateral for when-issued securities. |
| Zero coupon security. The rate represents the current yield to maturity. |
|
| Federal Home Loan Mortgage Corporation |
| Federal National Mortgage Association |
| Government National Mortgage Association |
| Real estate investment trust |
| Refinitiv USD IBOR Consumer Cash Fallbacks Term 1-year |
| Refinitiv USD IBOR Consumer Cash Fallbacks Term 6-month |
| Secured Overnight Financing Rate |
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
Futures contracts
| | | | | | |
| | | | | | |
10-Year U.S. Treasury Notes | | | | | | |
2-Year U.S. Treasury Notes | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Ultra Short-Term Income Fund
Statement of assets and liabilities—February 29, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $1,253,024,751) | |
Investments in affiliated securities, at value (cost $68,220,854) | |
| |
Cash at broker segregated for futures contracts | |
| |
Receivable for Fund shares sold | |
Principal paydown receivable | |
Receivable for daily variation margin on open futures contracts | |
Prepaid expenses and other assets | |
| |
| |
Payable for when-issued transactions | |
Payable for Fund shares redeemed | |
| |
| |
Administration fees payable | |
Payable for daily variation margin on open futures contracts | |
| |
Trustees’ fees and expenses payable | |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
| |
| |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Income Fund | 19
Statement of assets and liabilities—February 29, 2024 (unaudited)
Statement of assets and liabilities
Computation of net asset value and offering price per share | |
| |
Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
| |
Shares outstanding–Class A21 | |
Net asset value per share–Class A2 | |
| |
Shares outstanding–Class C1 | |
Net asset value per share–Class C | |
Net assets–Administrator Class | |
Shares outstanding–Administrator Class1 | |
Net asset value per share–Administrator Class | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
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.
20 | Allspring Ultra Short-Term Income Fund
Statement of operations—six months ended February 29, 2024 (unaudited)
Statement of operations
| |
| |
Income from affiliated securities | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Shareholder servicing fees | |
| |
| |
| |
| |
| |
| |
Custody and accounting fees | |
| |
| |
Shareholder report expenses | |
Trustees’ fees and expenses | |
| |
| |
Less: Fee waivers and/or expense reimbursements | |
| |
| |
| |
| |
| |
| |
| |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Income Fund | 21
Statement of operations—six months ended February 29, 2024 (unaudited)
Statement of operations
Realized and unrealized gains (losses) on investments | |
Net realized gains (losses) on | |
| |
| |
Net realized losses on investments | |
Net change in unrealized gains (losses) on | |
| |
| |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
22 | Allspring Ultra Short-Term Income Fund
Statement of changes in net assets
Statement of changes in net assets
|
Six months ended
February 29, 2024 (unaudited) | Year ended August 31, 2023 |
| | | | |
| | | | |
Net realized gains (losses) on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to shareholders from | | | | |
Net investment income and net realized gains | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Payment for shares redeemed | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net decrease in net assets resulting from capital share transactions | | | | |
Total decrease in net assets | | | | |
| | | | |
| | | | |
| | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Income Fund | 23
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
24 | Allspring Ultra Short-Term Income Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | |
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gains (losses) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from | | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
Ratios to average net assets (annualized) | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000s omitted) | | | | | |
| For the period from May 29, 2020 (commencement of class operations) to August 31, 2020 |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Income Fund | 25
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| 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 August 31, 2022 | |
Year ended August 31, 2021 | |
| Calculated based upon average shares outstanding |
| 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.
26 | Allspring Ultra Short-Term Income Fund
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Ultra Short-Term Income Fund | 27
(For a share outstanding throughout each period)
| Six months ended
February 29, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
28 | Allspring Ultra Short-Term Income Fund
Notes to financial statements (unaudited)
Notes to financial statements
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 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.
Equity securities, exchange-traded funds and futures contracts that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
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 contracts, 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.
Mortgage dollar roll transactions
The Fund may engage in mortgage dollar roll transactions through TBA mortgage-backed securities issued by Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). In a mortgage dollar roll transaction, the Fund sells a mortgage-backed security to a financial institution, such as a bank or broker-dealer and simultaneously agrees to
Allspring Ultra Short-Term Income Fund | 29
Notes to financial statements (unaudited)
repurchase a substantially similar security from the institution at a later date at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different pre-payment histories. During the roll period, the Fund foregoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future purchase as well as by the earnings on the cash proceeds of the initial sale. Mortgage dollar rolls may be renewed without physical delivery of the securities subject to the contract. The Fund accounts for TBA dollar roll transactions as purchases and sales which, as a result, may increase its portfolio turnover rate.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status. Paydown gains and losses are included in interest income.
Dividend income is recognized on the ex-dividend date.
Interest earned on cash balances held at the custodian is recorded as interest income.
Income dividends and capital gain distributions from investment companies are recorded on the ex-dividend date. Capital gain distributions from investment companies are treated as realized gains.
Distributions to shareholders
Distributions to shareholders from net investment income 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 February 29, 2024, the aggregate cost of all investments for federal income tax purposes was $1,320,922,583 and the unrealized gains (losses) consisted of:
As of August 31, 2023, the Fund had capital loss carryforwards which consisted of $994,541 in short-term capital losses and $23,122,928 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.
30 | Allspring Ultra Short-Term Income Fund
Notes to financial statements (unaudited)
3.
FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
•Level 1—quoted prices in active markets for identical securities
•Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
•Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of February 29, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
Corporate bonds and notes | | | | |
| | | | |
| | | | |
Non-agency mortgage-backed securities | | | | |
| | | | |
Yankee corporate bonds and notes | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
|
| | | | |
| | | | |
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.
At February 29, 2024, 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 Ultra Short-Term Income Fund | 31
Notes to financial statements (unaudited)
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:
For the six months ended February 29, 2024, the management fee was equivalent to an annual rate of 0.24% 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 |
| |
| |
| |
| |
| |
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 December 31, 2024 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. As of February 29, 2024, the contractual caps are as follows:
Distribution fee
The Trust has adopted a distribution plan for Class C shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended February 29, 2024, Allspring Funds Distributor received $716 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended February 29, 2024.
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.
32 | Allspring Ultra Short-Term Income Fund
Notes to financial statements (unaudited)
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund did not have any interfund transactions during the six months ended February 29, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six months ended February 29, 2024 were as follows:
6.
DERIVATIVE TRANSACTIONS
During the six months ended February 29, 2024, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio. The Fund had an average notional amount of $21,287,303 in long futures contracts and $46,749,189 in short futures contracts during the six months ended February 29, 2024.
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.
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended February 29, 2024, there were no borrowings by the Fund under the agreement.
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 Ultra Short-Term Income Fund | 33
Other information (unaudited)
Other information
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.
34 | Allspring Ultra Short-Term 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 100 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 Information†. 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
| | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | | 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. Serves on the Investment Company Institute’s Board of Governors since 2022 and Executive Committee since 2023 as well as the Vice Chairman of the Governing Council of the Independent Directors Council since 2023. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Foundation (non-profit organization). Mr. Ebsworth is a CFA charterholder. | |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
| 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. | |
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). | |
David F. Larcker
(Born 1950) | | 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. | |
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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
†
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 Income Fund | 35
Other information (unaudited)
| Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships |
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. | |
James G. Polisson
(Born 1959) | | 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. | |
Pamela Wheelock
(Born 1959) | Trustee,
since January 2020;
previously Trustee from
January 2018 to
| 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. | |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
# Ms. Freeman will serve as Chair Liaison through June 2024, at which time Ms. Wheelock will assume the role.
36 | Allspring Ultra Short-Term Income Fund
Other information (unaudited)
Officers1
| Position held and
length of service | Principal occupations during past five years or longer |
| | 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 Income 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
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.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-03052024-aqpowlyy 04-24
SAR3006 02-24
ITEM 2. CODE OF ETHICS
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
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 period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12. DISCLOSURES OF SECURITIES LENDING ACTIVITES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 13. EXHIBITS
(a)(1) Not applicable.
(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.
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: April 25, 2024 |
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: April 25, 2024 |
| |
| By: | | /s/Jeremy DePalma |
| | Jeremy DePalma |
| | Treasurer |
|
| Date: April 25, 2024 |
