2023-05-30SpecialtyFunds-RetailProspectus
|
|
Fund |
Institutional
Class |
Allspring
Discovery Innovation Fund (formerly Allspring Specialized Technology
Fund) |
WFTIX |
Allspring
Precious Metals Fund |
EKWYX |
Allspring
Utility and Telecommunications Fund |
EVUYX |
The
U.S. Securities and Exchange Commission (“SEC”) has not approved or disapproved
these securities or passed upon the accuracy or adequacy of this Prospectus.
Anyone who tells you
otherwise is committing a crime.
Discovery
Innovation Fund Summary
Investment
Objective
The
Fund seeks long-term capital appreciation.
Fees
and Expenses
These
tables are intended to help you understand the various costs and expenses you
will pay if you buy, hold and sell shares
of the Fund.
|
|
Shareholder
Fees (fees paid directly from your investment)
|
|
|
|
Maximum
sales charge (load) imposed on purchases (as a percentage of
offering price) |
None |
Maximum
deferred sales charge (load) (as a percentage of offering price) |
None |
|
|
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
|
|
|
Management
Fees |
0.80% |
Distribution
(12b-1) Fees |
0.00% |
Other
Expenses |
0.18% |
Total
Annual Fund Operating Expenses |
0.98% |
Fee
Waivers |
(0.08)% |
Total
Annual Fund Operating Expenses After Fee Waivers1
|
% |
1. |
The
Manager has contractually committed through July
31, 2024,
to waive fees and/or reimburse expenses to the extent necessary
to
cap Total Annual Fund Operating Expenses After Fee Waiver at 0.90%
for Institutional
class. Brokerage commissions, stamp duty fees,
interest, taxes, acquired fund fees and expenses (if any), and
extraordinary expenses are excluded from the expense cap. 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. |
Example
of Expenses
The
example below is intended to help you compare the costs of investing in the Fund
with the costs of investing in other
funds. The example assumes a $10,000 initial investment, 5% annual total return,
and that fees and expenses remain
the same as in the tables above. To the extent that the Manager is waiving fees
or reimbursing expenses, the example
assumes that such waiver or reimbursement will only be in place through the date
noted above. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
|
|
|
After:
|
|
1
Year |
$92 |
3
Years |
$304 |
5
Years |
$534 |
10
Years |
$1,194 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs and may result in
higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the example,
affect the Fund’s performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 117%
of
the average value of its portfolio.
Principal
Investment Strategies
Under
normal circumstances, we invest:
■ |
at
least 80% of the Fund’s net assets in equity securities;
and |
■ |
up
to 25% of the Fund’s total assets in equity securities of foreign issuers,
including up to 15% of the Fund’s total assets
in equity securities of emerging markets issuers, directly or through ADRs
and similar
investments. |
Under
normal circumstances, we invest primarily in equity securities of companies of
any market capitalization that we believe
offer the potential for capital growth and are relevant to the Fund’s investment
theme of innovation. We believe that
companies relevant to this theme are those that derive a portion of their
revenue from technology products or services,
which we believe offers companies attractive opportunities for future growth
through technological innovation.
In selecting from this universe, we seek to identify companies that have, among
other characteristics, the ability
to develop or benefit from new products, services, or technological advancements
that disrupt, or are expected to
disrupt, existing markets or processes. We believe such companies can foster
technological advancements to maximize
efficiencies, establish pricing advantages, gain market share from competitors,
and benefit from changes in demographic,
lifestyle, or environmental trends. We believe innovation found in companies on
the “right side of change”
is often mispriced in today’s public equity markets and is a frequent signal or
anomaly that we seek to exploit through
our investment process. These companies will generally be part of the following
industries or sectors: computer,
software, communications equipment and services, internet retail,
semi-conductor, health care, pharmaceuticals,
biotechnology, defense and aerospace, energy equipment and services,
nanotechnology, electric manufacturing
services, transaction and payment processing services, information technology or
communication services.
We
may also invest in equity securities of foreign issuers, including emerging
market issuers, through ADRs and similar investments.
In order to capture opportunities from the broadening impact of innovation, we
do not limit the fund’s exposure
to any single industry or sector. We may invest in any sector, and at times the
Fund may emphasize one or more
particular sectors, and because we retain the flexibility to invest in a
relatively small number of stocks, the Fund is also
considered to be non-diversified. The Fund will invest at least 25% of the
Fund’s assets in the technology sector.
We
seek to identify companies that have the prospect for strong sales and earnings
growth rates, that enjoy a competitive
advantage (for example, dominant market share) and that we believe have
effective management with a history
of making investments that are in the best interests of shareholders (for
example, companies with a history of earnings
and sales growth that are in excess of total asset growth). We pay particular
attention to how management teams
allocate capital in order to drive future cash flow. In addition to meeting with
management, we take a surround-the-company
approach by surveying a company’s vendors, distributors, competitors and
customers to obtain multiple
perspectives that help us make better investment decisions. Portfolio holdings
are continuously monitored for changes
in fundamentals. Price objectives are determined based on industry-specific
valuation methodologies, including
relative price-to-earnings multiples, price-to-book value, operating profit
margin trends, enterprise value to EBITDA
(earnings before interest, taxes, depreciation and amortization) and free cash
flow yield. The team seeks a favorable
risk/reward relationship to fair valuation, which we define as the value of the
company (i.e., our price target for
the stock) relative to where the stock is currently
trading.
Principal
Investment Risks
An
investment in the Fund may lose money, is
not a deposit of a bank or its affiliates, is not insured or guaranteed by
the
Federal Deposit Insurance Corporation or any other governmental
agency,
and is primarily subject to the risks briefly
summarized below.
Market
Risk.
The values of, and/or the income generated by, securities held by the Fund may
decline due to general market
conditions or other factors, including those directly involving the issuers of
such securities. Securities markets are
volatile and may decline significantly in response to adverse issuer,
regulatory, political, or economic developments.
Different sectors of the market and different security types may react
differently to such developments.
Equity
Securities Risk.
The values of equity securities may experience periods of substantial price
volatility and may decline
significantly over short time periods. In general, the values of equity
securities are more volatile than those of debt
securities. Equity securities fluctuate in value and price in response to
factors specific to the issuer of the security, such
as management performance, financial condition, and market demand for the
issuer’s products or services, as well
as factors unrelated to the fundamental condition of the issuer, including
general market, economic and political conditions.
Different parts of a market, industry and sector may react differently to
adverse issuer, market, regulatory, political,
and economic developments.
Technology
Sector Risk.
A Fund that concentrates its investments in the technology sector may be more
susceptible to
financial, economic or market events impacting the technology sector than a fund
that invests its assets more broadly.
Specifically, such investments may experience greater volatility due to rapid
product cycles and significant competitive
pressures, and products or processes may become obsolete at a faster pace than
for other companies.
Non-Diversification
Risk.
A Fund that is considered “non-diversified” under the 1940 Act is more
vulnerable to market or
economic events impacting issuers of individual portfolio securities than a
“diversified” fund. Default by the issuer of an
individual security in such a Fund’s portfolio may have a greater negative
effect on the Fund’s return or net asset value
than it would on the return or net asset value of a “diversified”
fund.
Emerging
Markets Risk.
Emerging market securities typically present even greater exposure to the risks
described under
“Foreign Investment Risk” and may be particularly sensitive to global economic
conditions. Emerging market securities
are also typically less liquid than securities of developed countries and could
be difficult to sell, particularly during
a market downturn.
Foreign
Investment Risk.
Foreign investments may be subject to lower liquidity, greater price volatility
and risks related to
adverse political, regulatory, market or economic developments. Foreign
investments may involve exposure to changes
in foreign currency exchange rates and may be subject to higher withholding and
other taxes.
Growth/Value
Investing Risk.
Securities that exhibit growth or value characteristics tend to perform
differently and shift
into and out of favor with investors depending on changes in market and economic
sentiment and conditions.
Management
Risk.
Investment decisions, techniques, analyses or models implemented by a
Fund’s manager or sub-adviser
in seeking to achieve the Fund’s investment objective may not produce expected
returns, may cause the Fund’s
shares to lose value or may cause the Fund to underperform other funds with
similar investment objectives.
Smaller
Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more
volatile and
less liquid than those of larger companies.
Performance
The
following information provides some indication of the risks of investing in the
Fund by showing changes in the Fund’s
performance from year to year.
The Fund’s average annual total returns are compared to the performance of one
or
more indices. Past
performance before and after taxes is no guarantee of future
results.
Current month-end performance
is available on the Fund’s website at www.allspringglobal.com.
|
|
|
Calendar
Year Total Returns for Institutional Class as of 12/31 each
year1,
2 |
|
Highest
Quarter: June
30,
2020 |
|
Lowest
Quarter: June
30,
2022 |
|
Year-to-date
total return
as of June
30,
2023
is +21.86% |
|
|
|
|
|
|
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
10
Year |
Institutional
Class (before taxes) |
10/31/2016
|
-38.37% |
10.40% |
15.38% |
Institutional
Class (after taxes on distributions) |
10/31/2016
|
-41.37% |
5.61% |
11.63% |
Institutional
Class (after taxes on distributions and the
sale of Fund Shares) |
10/31/2016
|
-20.42% |
8.17% |
12.34% |
S&P
500 Index (reflects no deduction for fees, expenses,
or taxes)3
|
|
-% |
% |
% |
Russell
3000® Growth Index (reflects no deduction for
fees, expenses, or taxes) |
|
-28.97% |
10.45% |
13.75% |
1. |
The
Fund changed its principal investment strategy on September 6, 2022.
Performance shown prior to this date reflects the Fund’s previous
investment strategy. |
2. |
Historical
performance shown for the Institutional Class shares prior to their
inception reflects the performance of the Administrator
Class shares, and is not adjusted to reflect the Institutional Class
expenses. If these expenses had been included, returns
for the Institutional Class shares would be
higher. |
3. |
The
Fund has changed its primary benchmark from the Russell 3000®
Growth Index to the S&P 500 Index to more accurately reflect
the
revised strategy of the Fund. |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect
the impact of state, local or foreign taxes.
Actual
after-tax returns depend on an investor’s tax situation and may differ
from those shown, and after-tax returns shown are not relevant to tax-exempt
investors or investors who hold their
Fund shares through tax-deferred arrangements, such as 401(k) Plans or
Individual Retirement
Accounts.
Fund
Management
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Michael
T. Smith,
Portfolio Manager/2022 Christopher
J. Warner, CFA,
Portfolio Manager/2022 |
Purchase
and Sale of Fund Shares
Institutional
Class shares are generally available through intermediaries for the
accounts of their customers and directly to
institutional investors and individuals. Institutional investors may include
corporations; private banks and trust companies;
endowments and foundations; defined contribution, defined benefit and other
employer sponsored retirement
plans; institutional retirement plan platforms; insurance companies; registered
investment advisor firms; bank
trusts; 529 college savings plans; family offices; and funds of funds, including
those managed by Allspring
Funds Management.
In general, you can buy or sell shares of the Fund online or by mail, phone or
wire, on any day the New York
Stock Exchange is open for regular trading. You also may buy and sell shares
through a financial professional.
|
|
Minimum
Investments |
To
Buy or Sell Shares |
Minimum
Initial Investment Institutional
Class: $1 million (this amount may be reduced
or eliminated for certain eligible investors)
Minimum
Additional Investment Institutional
Class: None |
Mail:
Allspring
Funds P.O.
Box 219967 Kansas
City, MO 64121-9967 Online:
www.allspringglobal.com Phone
or Wire:
1-800-222-8222 Contact
your financial professional. |
Tax
Information
Any
distributions you receive from the Fund may be taxable as ordinary income or
capital gains, except when your investment
is in an IRA, 401(k) or other tax-advantaged investment plan. However,
subsequent withdrawals from such a tax-advantaged
investment plan may be subject to federal income tax. You should consult your
tax adviser about your specific
tax situation.
Payments
to Intermediaries
If
you purchase a Fund through an intermediary, the Fund and its related companies
may pay the intermediary for the sale
of Fund shares and related services. These payments may create a conflict of
interest by influencing the intermediary
and your financial professional to recommend the Fund over another investment.
Consult your financial professional
or visit your intermediary’s website for more information.
Precious
Metals Fund Summary
Investment
Objective
The
Fund seeks long-term capital appreciation.
Fees
and Expenses
These
tables are intended to help you understand the various costs and expenses you
will pay if you buy, hold and sell shares
of the Fund.
|
|
Shareholder
Fees (fees paid directly from your investment)
|
|
|
|
Maximum
sales charge (load) imposed on purchases (as a percentage of offering
price) |
None |
Maximum
deferred sales charge (load) (as a percentage of offering
price) |
None |
|
|
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
|
|
|
Management
Fees |
0.65% |
Distribution
(12b-1) Fees |
0.00% |
Other
Expenses |
0.21% |
Total
Annual Fund Operating Expenses |
0.86% |
Fee
Waivers |
(0.07)% |
Total
Annual Fund Operating Expenses After Fee Waivers1
|
% |
1. |
The
Manager has contractually committed through July
31, 2024,
to waive fees and/or reimburse expenses to the extent necessary
to
cap Total Annual Fund Operating Expenses After Fee Waiver at 0.79%
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 cap. 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. |
Example
of Expenses
The
example below is intended to help you compare the costs of investing in the Fund
with the costs of investing in other
funds. The example assumes a $10,000 initial investment, 5% annual total return,
and that fees and expenses remain
the same as in the tables above. To the extent that the Manager is waiving fees
or reimbursing expenses, the example
assumes that such waiver or reimbursement will only be in place through the date
noted above. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
|
|
|
After:
|
|
1
Year |
$81 |
3
Years |
$267 |
5
Years |
$470 |
10
Years |
$1,054 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs and may result in
higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the example,
affect the Fund’s performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 9%
of the
average value of its portfolio.
Principal
Investment Strategies
Under
normal circumstances, we invest:
■ |
at
least 80% of the Fund’s net assets in investments related to precious
metals; |
■ |
any
amount of the Fund’s total assets in equity securities of foreign issuers,
including ADRs and similar
investments; |
■ |
up
to 40% of the Fund’s total assets in emerging market equity securities;
and |
■ |
up
to 25% of the Fund’s total assets, at the time of purchase, in debt
securities linked to precious metals and common
or preferred stocks of subsidiaries of the Fund that invest directly or
indirectly in precious metals and minerals. |
The
Fund may invest in foreign securities, including ADRs and similar investments,
which are typically denominated in non-U.S.
currencies, and may also invest in U.S. securities. While we may invest in
precious metals companies domiciled
in any jurisdiction in the world, the Fund may concentrate its investments in a
limited number of countries.
We
invest principally in investments related to precious metals across all market
capitalizations. These investments include
equity securities of a wholly owned subsidiary of the Fund set up in the Cayman
Islands that may invest directly in
precious metals or minerals. We define precious metals companies as those that
are engaged in, or which receive at least
50% of their revenues from the exploration, development, mining, processing, or
dealing in gold or other precious metals
and minerals, including, but not limited to, silver, platinum, and diamonds. We
concentrate the Fund’s investments
in the precious metals sector, and because we retain the flexibility to invest
in a relatively small number of stocks,
the Fund is also considered to be
non-diversified.
Primary
emphasis is placed on precious metals related companies. The Fund’s investment
process takes a disciplined approach
to risk management through top-down macroeconomic analysis and bottom-up stock
selection. Among the macroeconomic
influences considered include: geopolitical risks, the relative strength of the
U.S. dollar, jewelry demand,
inflation expectations, the seasonality of gold, investment demand and relative
valuation levels for the precious
metals universe. From a bottom-up perspective, management looks for higher
quality precious metals companies
that are positioned to improve their relative value over time. We continually
review the investments of the portfolio.
Among the factors which may influence the reduction of a position are: the
achievement of a valuation target,
the deterioration in the underlying fundamentals of the business, or the
identification of more attractive investment
opportunity.
Principal
Investment Risks
An
investment in the Fund may lose money, is
not a deposit of a bank or its affiliates, is not insured or guaranteed by
the
Federal Deposit Insurance Corporation or any other governmental
agency,
and is primarily subject to the risks briefly
summarized below.
Market
Risk.
The values of, and/or the income generated by, securities held by the Fund may
decline due to general market
conditions or other factors, including those directly involving the issuers of
such securities. Securities markets are
volatile and may decline significantly in response to adverse issuer,
regulatory, political, or economic developments.
Different sectors of the market and different security types may react
differently to such developments.
Equity
Securities Risk.
The values of equity securities may experience periods of substantial price
volatility and may decline
significantly over short time periods. In general, the values of equity
securities are more volatile than those of debt
securities. Equity securities fluctuate in value and price in response to
factors specific to the issuer of the security, such
as management performance, financial condition, and market demand for the
issuer’s products or services, as well
as factors unrelated to the fundamental condition of the issuer, including
general market, economic and political conditions.
Different parts of a market, industry and sector may react differently to
adverse issuer, market, regulatory, political,
and economic developments.
Precious
Metals Sector Risk.
A Fund that concentrates its investments in the precious metals sector is more
vulnerable to
adverse market, economic, regulatory, political or other developments affecting
the precious metals sector than a fund
that invests its assets more broadly. Specifically, such investments are subject
to fluctuation in the prices of gold and
other precious metals due to monetary and political developments and resource
availability and demand.
Foreign
Investment Risk.
Foreign investments may be subject to lower liquidity, greater price volatility
and risks related to
adverse political, regulatory, market or economic developments. Foreign
investments may involve exposure to changes
in foreign currency exchange rates and may be subject to higher withholding and
other taxes.
Non-Diversification
Risk.
A Fund that is considered “non-diversified” under the 1940 Act is more
vulnerable to market or
economic events impacting issuers of individual portfolio securities than a
“diversified” fund. Default by the issuer of
an
individual security in such a Fund’s portfolio may have a greater negative
effect on the Fund’s return or net asset value
than it would on the return or net asset value of a “diversified”
fund.
Debt
Securities Risk.
Debt securities are subject to credit risk and interest rate risk. Credit risk
is the possibility that the issuer
or guarantor of a debt security may be unable, or perceived to be unable or
unwilling, to pay interest or repay principal
when they become due. In these instances, the value of an investment could
decline and the Fund could lose money.
Credit risk increases as an issuer’s credit quality or financial strength
declines. Interest rate risk is the possibility that
interest rates will change over time. When interest rates rise, the value of
debt securities tends to fall. The longer the
terms of the debt securities held by a Fund, the more the Fund is subject to
this risk. If interest rates decline, interest
that the Fund is able to earn on its investments in debt securities may also
decline, which could cause the Fund to
reduce the dividends it pays to shareholders, but the value of those securities
may increase. Very low or negative interest
rates may magnify interest rate risk.
Emerging
Markets Risk.
Emerging market securities typically present even greater exposure to the risks
described under
“Foreign Investment Risk” and may be particularly sensitive to global economic
conditions. Emerging market securities
are also typically less liquid than securities of developed countries and could
be difficult to sell, particularly during
a market downturn.
Geographic
Emphasis Risk.
A Fund that invests a significant portion of its assets in one country or
geographic region will
be more vulnerable than a fund that invests its assets more broadly to the
economic, financial, political or other developments
affecting that country or region. Such developments may have a significant
impact on the Fund’s investment
performance causing such performance to be more volatile than the investment
performance of a more geographically
diversified fund.
Growth/Value
Investing Risk.
Securities that exhibit growth or value characteristics tend to perform
differently and shift
into and out of favor with investors depending on changes in market and economic
sentiment and conditions.
Management
Risk.
Investment decisions, techniques, analyses or models implemented by a
Fund’s manager or sub-adviser
in seeking to achieve the Fund’s investment objective may not produce expected
returns, may cause the Fund’s
shares to lose value or may cause the Fund to underperform other funds with
similar investment objectives.
Smaller
Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more
volatile and
less liquid than those of larger companies.
Subsidiary
Risk.
The value of a Fund’s investment in its Cayman Islands subsidiary may be
adversely impacted by the risks
associated with the delivery, storage, maintenance and possible illiquidity of
the precious metals or minerals in which
the subsidiary invests, as well as by custody and transaction costs associated
with the subsidiary’s investments. In
addition, changes in the laws or regulations of the United States or the Cayman
Islands, under which the Fund and the
subsidiary, respectively, are organized, could result in the inability of the
Fund or the subsidiary to continue to operate
as described in the prospectus and could negatively affect the Fund and its
shareholders.
Performance
The
following information provides some indication of the risks of investing in the
Fund by showing changes in the Fund’s
performance from year to year.
The Fund’s average annual total returns are compared to the performance of one
or
more indices. Past
performance before and after taxes is no guarantee of future
results.
Current month-end performance
is available on the Fund’s website at www.allspringglobal.com.
|
|
|
Calendar
Year Total Returns for Institutional Class as of 12/31 each
year |
|
Highest
Quarter: June
30,
2020 |
|
Lowest
Quarter: June
30,
2013 |
|
Year-to-date
total return
as of June
30,
2023
is +6.54% |
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2022 |
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
10
Year |
Institutional
Class (before taxes) |
2/29/2000
|
-7.44% |
4.86% |
-2.95% |
Institutional
Class (after taxes on distributions) |
2/29/2000
|
-7.76% |
4.60% |
-3.13% |
Institutional
Class (after taxes on distributions and the sale of
Fund Shares) |
2/29/2000
|
-3.95% |
3.84% |
-2.14% |
FTSE
Gold Mines Index (reflects no deduction for fees, expenses,
or taxes) |
|
-12.84% |
4.61% |
-3.19% |
S&P
500 Index (reflects no deduction for fees, expenses, or
taxes)
|
|
-18.11% |
9.42% |
12.56% |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect
the impact of state, local or foreign taxes.
Actual
after-tax returns depend on an investor’s tax situation and may differ
from those shown, and after-tax returns shown are not relevant to tax-exempt
investors or investors who hold their
Fund shares through tax-deferred arrangements, such as 401(k) Plans or
Individual Retirement
Accounts.
Fund
Management
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Michael
Bradshaw, CFA,
Portfolio Manager/2007 Oleg
Makhorine,
Portfolio Manager/2012 |
Purchase
and Sale of Fund Shares
Institutional
Class shares are generally available through intermediaries for the
accounts of their customers and directly to
institutional investors and individuals. Institutional investors may include
corporations; private banks and trust companies;
endowments and foundations; defined contribution, defined benefit and other
employer sponsored retirement
plans; institutional retirement plan platforms; insurance companies; registered
investment advisor firms; bank
trusts; 529 college savings plans; family offices; and funds of funds, including
those managed by Allspring
Funds Management.
In general, you can buy or sell shares of the Fund online or by mail, phone or
wire, on any day the New York
Stock Exchange is open for regular trading. You also may buy and sell shares
through a financial professional.
|
|
Minimum
Investments |
To
Buy or Sell Shares |
Minimum
Initial Investment Institutional
Class: $1 million (this amount may be reduced
or eliminated for certain eligible investors)
Minimum
Additional Investment Institutional
Class: None |
Mail:
Allspring
Funds P.O.
Box 219967 Kansas
City, MO 64121-9967 Online:
www.allspringglobal.com Phone
or Wire:
1-800-222-8222 Contact
your financial professional. |
Tax
Information
Any
distributions you receive from the Fund may be taxable as ordinary income or
capital gains, except when your investment
is in an IRA, 401(k) or other tax-advantaged investment plan. However,
subsequent withdrawals from such a tax-advantaged
investment plan may be subject to federal income tax. You should consult your
tax adviser about your specific
tax situation.
Payments
to Intermediaries
If
you purchase a Fund through an intermediary, the Fund and its related companies
may pay the intermediary for the sale
of Fund shares and related services. These payments may create a conflict of
interest by influencing the intermediary
and your financial professional to recommend the Fund over another investment.
Consult your financial professional
or visit your intermediary’s website for more information.
Utility
and Telecommunications Fund Summary
Investment
Objective
The
Fund seeks total return, consisting of current income and capital
appreciation.
Fees
and Expenses
These
tables are intended to help you understand the various costs and expenses you
will pay if you buy, hold and sell shares
of the Fund.
|
|
Shareholder
Fees (fees paid directly from your investment)
|
|
|
|
Maximum
sales charge (load) imposed on purchases (as a percentage of offering
price) |
None |
Maximum
deferred sales charge (load) (as a percentage of offering
price) |
None |
|
|
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
|
|
|
Management
Fees |
0.65% |
Distribution
(12b-1) Fees |
0.00% |
Other
Expenses |
0.17% |
Total
Annual Fund Operating Expenses |
0.82% |
Fee
Waivers |
(0.10)% |
Total
Annual Fund Operating Expenses After Fee Waivers1
|
% |
1. |
The
Manager has contractually committed through July
31, 2024,
to waive fees and/or reimburse expenses to the extent necessary
to
cap Total Annual Fund Operating Expenses After Fee Waiver at 0.72%
for Institutional
class. Brokerage commissions, stamp duty fees,
interest, taxes, acquired fund fees and expenses (if any), and
extraordinary expenses are excluded from the expense cap. 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. |
Example
of Expenses
The
example below is intended to help you compare the costs of investing in the Fund
with the costs of investing in other
funds. The example assumes a $10,000 initial investment, 5% annual total return,
and that fees and expenses remain
the same as in the tables above. To the extent that the Manager is waiving fees
or reimbursing expenses, the example
assumes that such waiver or reimbursement will only be in place through the date
noted above. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
|
|
|
After:
|
|
1
Year |
$74 |
3
Years |
$252 |
5
Years |
$445 |
10
Years |
$1,004 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs and may result in
higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the example,
affect the Fund’s performance. During the most recent fiscal year, the Fund’s
portfolio turnover rate was 4%
of the
average value of its portfolio.
Principal
Investment Strategies
Under
normal circumstances, we invest:
■ |
at
least 80% of the Fund’s net assets in common, preferred and convertible
preferred stocks of utility and telecommunications
companies; |
■ |
up
to 20% of the Fund’s net assets in dividend-paying equity securities of
non-utility and non-telecommunications companies; |
■ |
up
to 25% of the Fund’s total assets in equity securities of foreign issuers,
including ADRs and similar investments; and |
■ |
up
to 10% of the Fund’s total assets in emerging market equity
securities. |
We
invest principally in securities of utility and telecommunications companies
across all market capitalizations. Utility companies
may include, for example, companies that provide basic services such as water,
sewage, electricity generation,
transmission and distribution, and the transmission and distribution of natural
gas. Telecommunication companies
may include, for example, cable and satellite companies, interactive media
providers, communication equipment
manufacturers and providers, telecommunication services companies,
telecommunication REITs, and providers
of broadcasting services. We may also invest in equity securities of foreign
issuers including ADRs and similar investments,
which may be deemed either foreign or domestic issues. We concentrate the Fund’s
investments in the utility
and telecommunications sectors, and because we retain flexibility to invest in a
relatively small number of stocks, the
Fund is also considered to be non-diversified. Relative to its concentration
policy, the Fund’s allocations to utility and
telecommunications companies may fluctuate over time, and may at times favor
either utilities or telecommunications
companies. For hedging purposes, the Fund may use derivative strategies such as
buying or writing
put and call options, meaning that the Fund sells an option to another party
giving that party the right to either sell
a stock to (put) or buy a stock from (call) the Fund at a predetermined price in
the future.
We
consider similar factors when analyzing utility and telecommunications companies
as those from other sectors. We focus
on dividend-paying companies that we expect to pay and increase dividends
consistently. Our process applies a rigorous
analytical methodology to all of our investment decisions, which might include
the following analyses of a company
and its stock: cash flow analysis, debt levels, discipline of company
management, relative and absolute valuation
levels, and dividend yield. In selecting companies, we begin with a screen of a
broad universe of equity securities
that looks first, but not exclusively, at dividend yield, dividend growth
potential and market capitalization. In addition,
a review of company fundamentals, such as valuation, earnings growth and
financial condition, helps the portfolio
managers to focus on companies with dividends that appear reasonably sustainable
with potential for moderate
dividend growth. We regularly review the investments of the portfolio and may
sell a portfolio holding when there
is deterioration in the underlying fundamentals of the business, dividend growth
is no longer expected or there is the
possibility of a dividend cut, the stock price reflects full or overvaluation,
it has achieved its valuation target, or we have
identified a more attractive investment
opportunity.
Principal
Investment Risks
An
investment in the Fund may lose money, is
not a deposit of a bank or its affiliates, is not insured or guaranteed by
the
Federal Deposit Insurance Corporation or any other governmental
agency,
and is primarily subject to the risks briefly
summarized below.
Market
Risk.
The values of, and/or the income generated by, securities held by the Fund may
decline due to general market
conditions or other factors, including those directly involving the issuers of
such securities. Securities markets are
volatile and may decline significantly in response to adverse issuer,
regulatory, political, or economic developments.
Different sectors of the market and different security types may react
differently to such developments.
Equity
Securities Risk.
The values of equity securities may experience periods of substantial price
volatility and may decline
significantly over short time periods. In general, the values of equity
securities are more volatile than those of debt
securities. Equity securities fluctuate in value and price in response to
factors specific to the issuer of the security, such
as management performance, financial condition, and market demand for the
issuer’s products or services, as well
as factors unrelated to the fundamental condition of the issuer, including
general market, economic and political conditions.
Different parts of a market, industry and sector may react differently to
adverse issuer, market, regulatory, political,
and economic developments.
Utility
and Telecommunications Sector Risk.
A Fund that concentrates its investments in the utility and telecommunications
sectors is more vulnerable to adverse market, economic, regulatory, political or
other developments
affecting the utility and telecommunications sectors than a fund that invests
its assets more broadly. Specifically,
such investments are subject to unique risks such as decreases in the demand for
utility company products
and services, increased competition resulting from deregulation, and rising
energy costs, among others.
Non-Diversification
Risk.
A Fund that is considered “non-diversified” under the 1940 Act is more
vulnerable to market or
economic events impacting issuers of individual portfolio securities than a
“diversified” fund. Default by the issuer of an
individual security in such a Fund’s portfolio may have a greater negative
effect on the Fund’s return or net asset value
than it would on the return or net asset value of a “diversified”
fund.
Convertible
Securities Risk.
A convertible security has characteristics of both equity and debt securities
and, as a result,
is exposed to risks that are typically associated with both types of securities.
The market value of a convertible security
tends to decline as interest rates increase but also tends to reflect changes in
the market price of the common stock
of the issuing company.
Debt
Securities Risk.
Debt securities are subject to credit risk and interest rate risk. Credit risk
is the possibility that the issuer
or guarantor of a debt security may be unable, or perceived to be unable or
unwilling, to pay interest or repay principal
when they become due. In these instances, the value of an investment could
decline and the Fund could lose money.
Credit risk increases as an issuer’s credit quality or financial strength
declines. Interest rate risk is the possibility that
interest rates will change over time. When interest rates rise, the value of
debt securities tends to fall. The longer the
terms of the debt securities held by a Fund, the more the Fund is subject to
this risk. If interest rates decline, interest
that the Fund is able to earn on its investments in debt securities may also
decline, which could cause the Fund to
reduce the dividends it pays to shareholders, but the value of those securities
may increase. Very low or negative interest
rates may magnify interest rate risk.
Derivatives
Risk.
The use of derivatives, such as futures, options and swap agreements, can lead
to losses, including those
magnified by leverage, particularly when derivatives are used to enhance return
rather than mitigate risk. Certain derivative
instruments may be difficult to sell when the portfolio manager believes it
would be appropriate to do so, or the
other party to a derivative contract may be unwilling or unable to fulfill its
contractual obligations.
Emerging
Markets Risk.
Emerging market securities typically present even greater exposure to the risks
described under
“Foreign Investment Risk” and may be particularly sensitive to global economic
conditions. Emerging market securities
are also typically less liquid than securities of developed countries and could
be difficult to sell, particularly during
a market downturn.
Foreign
Investment Risk.
Foreign investments may be subject to lower liquidity, greater price volatility
and risks related to
adverse political, regulatory, market or economic developments. Foreign
investments may involve exposure to changes
in foreign currency exchange rates and may be subject to higher withholding and
other taxes.
Growth/Value
Investing Risk.
Securities that exhibit growth or value characteristics tend to perform
differently and shift
into and out of favor with investors depending on changes in market and economic
sentiment and conditions.
High
Yield Securities Risk.
High yield securities and unrated securities of similar credit quality (commonly
known as “junk
bonds”) are considered speculative and have a much greater risk of default or of
not returning principal and their values
tend to be more volatile than higher-rated securities with similar
maturities.
Management
Risk.
Investment decisions, techniques, analyses or models implemented by a
Fund’s manager or sub-adviser
in seeking to achieve the Fund’s investment objective may not produce expected
returns, may cause the Fund’s
shares to lose value or may cause the Fund to underperform other funds with
similar investment objectives.
Options
Risk.
A Fund that purchases options, which are a type of derivative, is subject to the
risk of a loss of premiums without
offsetting gains. A Fund that writes options receives a premium that may be
small relative to the loss realized in the
event of adverse changes in the value of the underlying
instruments.
Real
Estate Securities Risk.
Real estate securities are subject to risks from decreases in the values of
underlying real estate
assets and the income derived from such assets, changes in interest rates,
issuer management, macroeconomic developments,
government regulation and social and economic trends. The value of certain real
estate securities may also
be affected by local, regional and general market
conditions.
Smaller
Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more
volatile and
less liquid than those of larger
companies.
Performance
The
following information provides some indication of the risks of investing in the
Fund by showing changes in the Fund’s
performance from year to year.
The Fund’s average annual total returns are compared to the performance of one
or
more indices. Past
performance before and after taxes is no guarantee of future
results.
Current month-end performance
is available on the Fund’s website at www.allspringglobal.com.
|
|
|
Calendar
Year Total Returns for Institutional Class as of 12/31 each
year |
|
Highest
Quarter: March
31,
2019 |
|
Lowest
Quarter: March
31,
2020 |
|
Year-to-date
total return
as of June
30,
2023
is -4.46% |
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2022 |
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
10
Year |
Institutional
Class (before taxes) |
2/28/1994
|
-3.16% |
8.94% |
9.69% |
Institutional
Class (after taxes on distributions) |
2/28/1994
|
-5.56% |
6.12% |
7.98% |
Institutional
Class (after taxes on distributions and the sale of
Fund Shares) |
2/28/1994
|
-0.15% |
6.86% |
7.77% |
S&P
500 Utilities Index (reflects no deduction for fees, expenses,
or taxes) |
|
1.57% |
9.58% |
11.09% |
S&P
500 Index (reflects no deduction for fees, expenses, or
taxes)
|
|
-18.11% |
9.42% |
12.56% |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect
the impact of state, local or foreign taxes.
Actual
after-tax returns depend on an investor’s tax situation and may differ
from those shown, and after-tax returns shown are not relevant to tax-exempt
investors or investors who hold their
Fund shares through tax-deferred arrangements, such as 401(k) Plans or
Individual Retirement
Accounts.
Fund
Management
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Kent
Newcomb, CFA,
Portfolio Manager / 2019 Jack
Spudich, CFA,
Portfolio Manager / 2019 |
Purchase
and Sale of Fund Shares
Institutional
Class shares are generally available through intermediaries for the
accounts of their customers and directly to
institutional investors and individuals. Institutional investors may include
corporations; private banks and trust companies;
endowments and foundations; defined contribution, defined benefit and other
employer sponsored retirement
plans; institutional retirement plan platforms; insurance companies; registered
investment advisor firms; bank
trusts; 529 college savings plans; family offices; and funds of funds, including
those managed by Allspring
Funds Management.
In general, you can buy or sell shares of the Fund online or by mail, phone or
wire, on any day the New York
Stock Exchange is open for regular trading. You also may buy and sell shares
through a financial professional.
|
|
Minimum
Investments |
To
Buy or Sell Shares |
Minimum
Initial Investment Institutional
Class: $1 million (this amount may be reduced
or eliminated for certain eligible investors)
Minimum
Additional Investment Institutional
Class: None |
Mail:
Allspring
Funds P.O.
Box 219967 Kansas
City, MO 64121-9967 Online:
www.allspringglobal.com Phone
or Wire:
1-800-222-8222 Contact
your financial professional. |
Tax
Information
Any
distributions you receive from the Fund may be taxable as ordinary income or
capital gains, except when your investment
is in an IRA, 401(k) or other tax-advantaged investment plan. However,
subsequent withdrawals from such a tax-advantaged
investment plan may be subject to federal income tax. You should consult your
tax adviser about your specific
tax situation.
Payments
to Intermediaries
If
you purchase a Fund through an intermediary, the Fund and its related companies
may pay the intermediary for the sale
of Fund shares and related services. These payments may create a conflict of
interest by influencing the intermediary
and your financial professional to recommend the Fund over another investment.
Consult your financial professional
or visit your intermediary’s website for more information.
Details
About the Funds
Discovery
Innovation Fund
Investment
Objective
The
Fund seeks long-term capital appreciation.
The
Fund’s Board of Trustees can change this investment objective without a
shareholder vote.
Principal
Investment Strategies
Under
normal circumstances, we invest:
■ |
at
least 80% of the Fund’s net assets in equity securities;
and |
■ |
up
to 25% of the Fund’s total assets in equity securities of foreign issuers,
including up to 15% of the Fund’s total assets
in equity securities of emerging markets issuers, directly or through ADRs
and similar investments. |
Under
normal circumstances, we invest primarily in equity securities of companies of
any market capitalization that we believe
offer the potential for capital growth and are relevant to the Fund’s investment
theme of innovation. We believe that
companies relevant to this theme are those that derive a portion of their
revenue from technology products or services,
which we believe offers companies attractive opportunities for future growth
through technological innovation.
In selecting from this universe, we seek to identify companies that have, among
other characteristics, the ability
to develop or benefit from new products, services, or technological advancements
that disrupt, or are expected to
disrupt, existing markets or processes. We believe such companies can foster
technological advancements to maximize
efficiencies, establish pricing advantages, gain market share from competitors,
and benefit from changes in demographic,
lifestyle, or environmental trends. We believe innovation found in companies on
the “right side of change”
is often mispriced in today’s public equity markets and is a frequent signal or
anomaly that we seek to exploit through
our investment process. These companies will generally be part of the following
industries or sectors: computer,
software, communications equipment and services, internet retail,
semi-conductor, health care, pharmaceuticals,
biotechnology, defense and aerospace, energy equipment and services,
nanotechnology, electric manufacturing
services, transaction and payment processing services, information technology or
communication services.
We
may also invest in equity securities of foreign issuers, including emerging
market issuers, through ADRs and similar investments.
In order to capture opportunities from the broadening impact of innovation, we
do not limit the fund’s exposure
to any single industry or sector. We may invest in any sector, and at times the
Fund may emphasize one or more
particular sectors, and because we retain the flexibility to invest in a
relatively small number of stocks, the Fund is also
considered to be non-diversified. The Fund will invest at least 25% of the
Fund’s assets in the technology sector.
We
seek to identify companies that have the prospect for strong sales and earnings
growth rates, that enjoy a competitive
advantage (for example, dominant market share) and that we believe have
effective management with a history
of making investments that are in the best interests of shareholders (for
example, companies with a history of earnings
and sales growth that are in excess of total asset growth). We pay particular
attention to how management teams
allocate capital in order to drive future cash flow. In addition to meeting with
management, we take a surround-the-company
approach by surveying a company’s vendors, distributors, competitors and
customers to obtain multiple
perspectives that help us make better investment decisions. Portfolio holdings
are continuously monitored for changes
in fundamentals. Price objectives are determined based on industry-specific
valuation methodologies, including
relative price-to-earnings multiples, price-to-book value, operating profit
margin trends, enterprise value to EBITDA
(earnings before interest, taxes, depreciation and amortization) and free cash
flow yield. The team seeks a favorable
risk/reward relationship to fair valuation, which we define as the value of the
company (i.e., our price target for
the stock) relative to where the stock is currently trading.
We
may actively trade portfolio securities, which may lead to higher transaction
costs that may affect the Fund’s performance.
In addition, active trading of portfolio securities may lead to higher taxes if
your shares are held in a taxable
account.
The
Fund may hold some of its assets in cash or in money market instruments,
including U.S. Government obligations, shares
of other funds and repurchase agreements, or make other short-term investments
for purposes of maintaining liquidity
or for short-term defensive purposes when we believe it is in the best interests
of the shareholders to do so. During
such periods, the Fund may not achieve its objective.
Principal
Investment Risks
The
Fund is primarily subject to the risks mentioned below.
These
and other risks could cause you to lose money in your investment in the Fund and
could adversely affect the Fund’s
net asset value and total return. These risks are described in the “Description
of Principal Investment Risks” section.
Precious
Metals Fund
Investment
Objective
The
Fund seeks long-term capital appreciation.
The
Fund’s Board of Trustees can change this investment objective without a
shareholder vote.
Principal
Investment Strategies
Under
normal circumstances, we invest:
■ |
at
least 80% of the Fund’s net assets in investments related to precious
metals; |
■ |
any
amount of the Fund’s total assets in equity securities of foreign issuers,
including ADRs and similar investments; |
■ |
up
to 40% of the Fund’s total assets in emerging market equity securities;
and |
■ |
up
to 25% of the Fund’s total assets, at the time of purchase, in debt
securities linked to precious metals and common
or preferred stocks of subsidiaries of the Fund that invest directly or
indirectly in precious metals and minerals. |
The
Fund may invest in foreign securities, including ADRs and similar investments,
which are typically denominated in non-U.S.
currencies, and may also invest in U.S. securities. While we may invest in
precious metals companies domiciled
in any jurisdiction in the world, the Fund may concentrate its investments in a
limited number of countries.
We
invest principally in investments related to precious metals across all market
capitalizations. These investments include
equity securities of a wholly owned subsidiary of the Fund set up in the Cayman
Islands that may invest directly in
precious metals or minerals. We define precious metals companies as those that
are engaged in, or which receive at least
50% of their revenues from the exploration, development, mining, processing, or
dealing in gold or other precious metals
and minerals, including, but not limited to, silver, platinum, and diamonds. We
concentrate the Fund’s investments
in the precious metals sector, and because we retain the flexibility to invest
in a relatively small number of stocks,
the Fund is also considered to be non-diversified.
Primary
emphasis is placed on precious metals related companies. The Fund’s investment
process takes a disciplined approach
to risk management through top-down macroeconomic analysis and bottom-up stock
selection. Among the macroeconomic
influences considered include: geopolitical risks, the relative strength of the
U.S. dollar, jewelry demand,
inflation expectations, the seasonality of gold, investment demand and relative
valuation levels for the precious
metals universe. From a bottom-up perspective, management looks for higher
quality precious metals companies
that are positioned to improve their relative value over time. We continually
review the investments of the portfolio.
Among the factors which may influence the reduction of a position are: the
achievement of a valuation target,
the deterioration in the underlying fundamentals of the business, or the
identification of more attractive investment
opportunity.
We
may actively trade portfolio securities, which may lead to higher transaction
costs that may affect the Fund’s performance.
In addition, active trading of portfolio securities may lead to higher taxes if
your shares are held in a taxable
account.
The
Fund may hold some of its assets in cash or in money market instruments,
including U.S. Government obligations, shares
of other funds and repurchase agreements, or make other short-term investments
for purposes of maintaining liquidity
or for short-term defensive purposes when we believe it is in the best interests
of the shareholders to do so. During
such periods, the Fund may not achieve its objective.
Principal
Investment Risks
The
Fund is primarily subject to the risks mentioned below.
These
and other risks could cause you to lose money in your investment in the Fund and
could adversely affect the Fund’s
net asset value, yield and total return. These risks are described in the
“Description of Principal Investment Risks”
section.
Utility
and Telecommunications Fund
Investment
Objective
The
Fund seeks total return, consisting of current income and capital
appreciation.
The
Fund’s Board of Trustees can change this investment objective without a
shareholder vote.
Principal
Investment Strategies
Under
normal circumstances, we invest:
■ |
at
least 80% of the Fund’s net assets in common, preferred and convertible
preferred stocks of utility and telecommunications
companies; |
■ |
up
to 20% of the Fund’s net assets in dividend-paying equity securities of
non-utility and non-telecommunications companies; |
■ |
up
to 25% of the Fund’s total assets in equity securities of foreign issuers,
including ADRs and similar investments; and |
■ |
up
to 10% of the Fund’s total assets in emerging market equity
securities. |
We
invest principally in securities of utility and telecommunications companies
across all market capitalizations. Utility companies
may include, for example, companies that provide basic services such as water,
sewage, electricity generation,
transmission and distribution, and the transmission and distribution of natural
gas. Telecommunication companies
may include, for example, cable and satellite companies, interactive media
providers, communication equipment
manufacturers and providers, telecommunication services companies,
telecommunication REITs, and providers
of broadcasting services. We may also invest in equity securities of foreign
issuers including ADRs and similar investments,
which may be deemed either foreign or domestic issues. We concentrate the Fund’s
investments in the utility
and telecommunications sectors, and because we retain flexibility to invest in a
relatively small number of stocks, the
Fund is also considered to be non-diversified. Relative to its concentration
policy, the Fund’s allocations to utility and
telecommunications companies may fluctuate over time, and may at times favor
either utilities or telecommunications
companies. For hedging purposes, the Fund may use derivative strategies such as
buying or writing
put and call options, meaning that the Fund sells an option to another party
giving that party the right to either sell
a stock to (put) or buy a stock from (call) the Fund at a predetermined price in
the future.
We
consider similar factors when analyzing utility and telecommunications companies
as those from other sectors. We focus
on dividend-paying companies that we expect to pay and increase dividends
consistently. Our process applies a rigorous
analytical methodology to all of our investment decisions, which might include
the following analyses of a company
and its stock: cash flow analysis, debt levels, discipline of company
management, relative and absolute valuation
levels, and dividend yield. In selecting companies, we begin with a screen of a
broad universe of equity securities
that looks first, but not exclusively, at dividend yield, dividend growth
potential and market capitalization. In addition,
a review of company fundamentals, such as valuation, earnings growth and
financial condition, helps the portfolio
managers to focus on companies with dividends that appear reasonably sustainable
with potential for moderate
dividend growth. We regularly review the investments of the portfolio and may
sell a portfolio holding when there
is deterioration in the underlying fundamentals of the business, dividend growth
is no longer expected or there is the
possibility of a dividend cut, the stock price reflects full or overvaluation,
it has achieved its valuation target, or we have
identified a more attractive investment opportunity.
We
may actively trade portfolio securities, which may lead to higher transaction
costs that may affect the Fund’s performance.
In addition, active trading of portfolio securities may lead to higher taxes if
your shares are held in a taxable
account.
The
Fund may hold some of its assets in cash or in money market instruments,
including U.S. Government obligations, shares
of other funds and repurchase agreements, or make other short-term investments
for purposes of maintaining liquidity
or for short-term defensive purposes when we believe it is in the best interests
of the shareholders to do so. During
such periods, the Fund may not achieve its objective.
Principal
Investment Risks
The
Fund is primarily subject to the risks mentioned below.
These
and other risks could cause you to lose money in your investment in the Fund and
could adversely affect the Fund’s
net asset value, yield and total return. These risks are described in the
“Description of Principal Investment Risks”
section.
Description
of Principal Investment Risks
Understanding
the risks involved in fund investing will help you make an informed decision
that takes into account your risk
tolerance and preferences. The risks that are most likely to have a material
effect on a particular Fund as
a whole are
called “principal risks.” The principal risks for each Fund
have been previously identified and are described below (in alphabetical
order). Additional information about the principal risks is included in the
Statement of Additional Information.
Convertible
Securities Risk.
A convertible security has characteristics of both equity and debt securities
and, as a result,
is exposed to risks that are typically associated with both types of securities.
The market value of a convertible security
tends to decline as interest rates increase but also tends to reflect changes in
the market price of the common stock
of the issuing company. A convertible security is also exposed to the risk that
an issuer is unable to meet its obligation
to make dividend or interest and principal payments when due as a result of
changing financial or market conditions.
In the event of a liquidation of the issuer, holders of a convertible security
would generally be paid only after
holders of any senior debt obligations. A Fund may be forced to convert a
convertible security before it would otherwise
choose to do so, which may decrease the Fund’s return.
Debt
Securities Risk.
Debt securities are subject to credit risk and interest rate risk. Credit risk
is the possibility that the issuer
or guarantor of a debt security may be unable, or perceived to be unable or
unwilling, to pay interest or repay principal
when they become due. In these instances, the value of an investment could
decline and the Fund could lose money.
Credit risk increases as an issuer’s credit quality or financial strength
declines. The credit quality of a debt security
may deteriorate rapidly and cause significant deterioration in the Fund’s net
asset value. Interest rate risk is the possibility
that interest rates will change over time. When interest rates rise, the value
of debt securities tends to fall. The
longer the terms of the debt securities held by a Fund, the more the Fund is
subject to this risk. If interest rates decline,
interest that the Fund is able to earn on its investments in debt securities may
also decline, which could cause the
Fund to reduce the dividends it pays to shareholders, but the value of those
securities may increase. Some debt securities
give the issuers the option to call, redeem or prepay the securities before
their maturity dates. If an issuer calls,
redeems or prepays a debt security during a time of declining interest rates,
the Fund might have to reinvest the proceeds
in a security offering a lower yield, and therefore might not benefit from any
increase in value as a result of declining
interest rates. Very low or negative interest rates may magnify interest rate
risk. Changing interest rates, including
rates that fall below zero, may have unpredictable effects on markets, may
result in heightened market volatility
and may detract from Fund performance to the extent the Fund is exposed to such
interest rates. Interest rate changes
and their impact on the Fund and its share price can be sudden and
unpredictable. Changes in market conditions
and government policies may lead to periods of heightened volatility in the debt
securities market, reduced liquidity
Fund investments and an increase in Fund redemptions.
Derivatives
Risk.
The use of derivatives, such as futures, options and swap agreements, presents
risks different from, and
possibly greater than, the risks associated with investing directly in
traditional securities. The use of derivatives can lead
to losses because of adverse movements in the price or value of the derivatives’
underlying assets, indexes or rates
and the derivatives themselves, which may be magnified by certain features of
the derivatives. These risks are heightened
when derivatives are used to enhance a Fund’s return or as a substitute for a
position or security, rather than
solely to hedge (or mitigate) the risk of a position or security held by the
Fund. The success of a derivative strategy will
be affected by the portfolio manager’s ability to assess and predict market or
economic developments and their impact
on the derivatives’ underlying assets, indexes or reference rates, as well as
the derivatives themselves. Certain derivative
instruments may become illiquid and, as a result, may be difficult to sell when
the portfolio manager believes it
would be appropriate to do so. Certain derivatives create leverage, which can
magnify the impact of a decline in the value
of their underlying assets, indexes or reference rates, and increase the
volatility of the Fund’s net asset value. Certain
derivatives (e.g., over-the-counter swaps) are also subject to the risk that the
counterparty to the derivative contract
will be unwilling or unable to fulfill its contractual obligations, which may
cause a Fund to lose money, suffer delays
or incur costs arising from holding or selling an underlying asset. Changes in
laws or regulations may make the use
of derivatives more costly, may limit the availability of derivatives, or may
otherwise adversely affect the use, value or
performance of derivatives.
Emerging
Markets Risk.
Emerging market securities typically present even greater exposure to the risks
described under
“Foreign Investment Risk” and may be particularly sensitive to global economic
conditions. For example, emerging
market countries are typically more dependent on exports and are, therefore,
more vulnerable to recessions in
other countries. Emerging markets tend to have less developed legal and
financial systems and a smaller market capitalization
than markets in developed countries. Some emerging markets are subject to
greater political instability. Additionally,
emerging markets may have more volatile currencies and be more sensitive than
developed markets to a
variety
of economic factors, including inflation. Emerging market securities are also
typically less liquid than securities of
developed countries and could be difficult to sell, particularly during a market
downturn.
Equity
Securities Risk.
The values of equity securities may experience periods of substantial price
volatility and may decline
significantly over short time periods. In general, the values of equity
securities are more volatile than those of debt
securities. Equity securities fluctuate in value and price in response to
factors specific to the issuer of the security, such
as management performance, financial condition, and market demand for the
issuer’s products or services, as well
as factors unrelated to the fundamental condition of the issuer, including
general market, economic and political conditions.
Investing in equity securities poses risks specific to an issuer, as well as to
the particular type of company issuing
the equity securities. For example, investing in the equity securities of small-
or mid-capitalization companies can
involve greater risk than is customarily associated with investing in stocks of
larger, more-established companies. Different
parts of a market, industry and sector may react differently to adverse issuer,
market, regulatory, political, and economic
developments. Negative news or a poor outlook for a particular industry or
sector can cause the share prices of
securities of companies in that industry or sector to decline. This risk may be
heightened for a Fund that invests a substantial
portion of its assets in a particular industry or sector.
Foreign
Investment Risk.
Foreign investments may be subject to lower liquidity, greater price volatility
and risks related to
adverse political, regulatory, market or economic developments. Foreign
companies may be subject to significantly higher
levels of taxation than U.S. companies, including potentially confiscatory
levels of taxation, thereby reducing the earnings
potential of such foreign companies. Foreign investments may involve exposure to
changes in foreign currency
exchange rates. Such changes may reduce the U.S. dollar value of the
investments. Foreign investments may be
subject to additional risks, such as potentially higher withholding and other
taxes, and may also be subject to greater
trade settlement, custodial, and other operational risks than domestic
investments. Certain foreign markets may
also be characterized by less stringent investor protection and disclosure
standards.
Geographic
Emphasis Risk.
A Fund that invests a significant portion of its assets in one country or
geographic region will
be more vulnerable than a fund that invests its assets more broadly to the
economic, financial, political or other developments
affecting that country or region. Such developments may have a significant
impact on the Fund’s investment
performance causing such performance to be more volatile than the investment
performance of a more geographically
diversified fund.
High
Yield Securities Risk.
High yield securities and unrated securities of similar credit quality (commonly
known as “junk
bonds”) are considered speculative and have a much greater risk of default (or
in the case of bonds currently in default,
of not returning principal) and their values tend to be more volatile than
higher-rated securities with similar maturities.
Additionally, these securities tend to be less liquid and more difficult to
value than higher-rated securities.
Growth/Value
Investing Risk.
Securities that exhibit certain characteristics, such as growth characteristics
or value characteristics,
tend to perform differently and shift into and out of favor with investors
depending on changes in market
and economic sentiment and conditions. As a result, a Fund’s performance may at
times be worse than the performance
of other mutual funds that invest more broadly or in securities that exhibit
different characteristics.
Management
Risk.
Investment decisions, techniques, analyses or models implemented by a Fund’s
manager or sub-adviser
in seeking to achieve the Fund’s investment objective may not produce the
returns expected, may cause the
Fund’s shares to lose value or may cause the Fund to underperform other funds
with similar investment objectives.
Market
Risk.
The values of, and/or the income generated by, securities held by a Fund may
decline due to general market
conditions or other factors, including those directly involving the issuers of
such securities. Securities markets are
volatile and may decline significantly in response to adverse issuer,
regulatory, political, or economic developments.
Different sectors of the market and different security types may react
differently to such developments. Political,
geopolitical, natural and other events, including war, terrorism, trade
disputes, government shutdowns, market
closures, inflation, natural and environmental disasters, epidemics, pandemics
and other public health crises and
related events have led, and in the future may lead, to economic uncertainty,
decreased economic activity, increased
market volatility and other disruptive effects on U.S. and global economies and
markets. Such events may have
significant adverse direct or indirect effects on a Fund and its investments. In
addition, economies and financial markets
throughout the world are becoming increasingly interconnected, which increases
the likelihood that events or conditions
in one country or region will adversely impact markets or issuers in other
countries or regions.
Non-Diversification
Risk.
A Fund that is considered “non-diversified” under the 1940 Act may invest a
greater percentage
of its assets in the securities of a single issuer than a fund that is
considered “diversified” (a “diversified” investment
company, with respect to 75% of its total assets, is not generally permitted to
invest more than 5% of such assets
in the securities of a single issuer or own more than 10% of an issuer’s
outstanding voting securities). A non-diversified
fund is therefore more vulnerable to market or economic events impacting issuers
of individual
portfolio
securities than a “diversified” fund. Default by the issuer of an individual
security in such a Fund’s portfolio may
have a greater negative effect on the Fund’s returns or net asset value than a
similar default in a diversified portfolio.
A non-diversified fund’s performance may be disproportionately impacted by the
performance of relatively few
securities.
Options
Risk.
A Fund that purchases options, which are a type of derivative, is subject to the
risk that gains, if any, realized
on the position, will be less than the amount paid as premiums to the writer of
the option. A Fund that writes options
receives a premium that may be small relative to the loss realized in the event
of adverse changes in the value of
the underlying instruments. A Fund that writes covered call options gives up the
opportunity to profit from any price increase
in the underlying security above the option exercise price while the option is
in effect. Options may be more volatile
than the underlying instruments. In addition, there may at times be an imperfect
correlation between the movement
in values of options and their underlying securities, and there may at times not
be a liquid secondary market for
certain options.
Precious
Metals Sector Risk.
A Fund that concentrates its investments in securities related to precious
metals may be more
susceptible to financial, economic or market events impacting the precious
metals sector. In particular, the precious
metals sector is subject to fluctuation in the prices of gold and other precious
metals due to monetary and political
developments such as economic cycles, the devaluation of currency, changes in
inflation or expectations about
inflation in various countries, interest rates, metal sales by governments or
other entities, government regulation, and
resource availability and demand.
Real
Estate Securities Risk.
Investments in real estate securities are subject to factors affecting the real
estate industry and
may fluctuate more than the value of a portfolio that consists of securities of
companies in a broader range of industries.
Factors affecting real estate values include the supply of real property in
particular markets, overbuilding, changes
in zoning laws, casualty or condemnation losses, delays in completion of
construction, changes in real estate values,
changes in operations costs and property taxes, levels of occupancy, adequacy of
rent to cover operating costs,
possible environmental liabilities, regulatory limitations on rent, fluctuations
in rental income, increased competition
and other risks related to local and regional market conditions. The value of
real-estate related investments
also may be affected by changes in interest rates, macroeconomic developments,
and social and economic
trends. For instance, during periods of declining interest rates, certain REITs
may hold mortgages that the mortgagors
elect to prepay, which prepayment may reduce the yield on securities issued by
those REITs. Some REITs have
relatively small market capitalizations, which can tend to increase the
volatility of the market price of their securities.
REITs are subject to the risk of fluctuations in income from underlying real
estate assets, their inability to manage
effectively the cash flows generated by those assets, prepayments and defaults
by borrowers, and their failure to
qualify for the special tax treatment granted to REITs under the Internal
Revenue Code of 1986, as amended, or to maintain
their exemption from investment company status under the 1940 Act.
Smaller
Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more
volatile and
less liquid than those of larger companies. Smaller companies may have no or
relatively short operating histories, limited
financial resources or may have recently become public companies. Some of these
companies have aggressive capital
structures, including high debt levels, or are involved in rapidly growing or
changing industries and/or new technologies.
Subsidiary
Risk.
The value of a Fund’s investment in its Cayman Islands subsidiary may be
adversely impacted by the risks
associated with the delivery, storage, maintenance and possible illiquidity of
the precious metals or minerals in which
the subsidiary invests, as well as by custody and transaction costs associated
with the subsidiary’s investments. In
addition, changes in the laws or regulations of the United States or the Cayman
Islands, under which the Fund and the
subsidiary, respectively, are organized, could result in the inability of the
Fund or the subsidiary to continue to operate
as described in the prospectus and could negatively affect the Fund and its
shareholders.
Technology
Sector Risk.
A Fund that concentrates its investments in the technology sector may be more
susceptible to
financial, economic or market events impacting the technology sector than a fund
that invests its assets more broadly.
In particular, technology company stocks can be subject to abrupt or erratic
price movements and have been volatile
due to the rapid pace of product change and development affecting such
companies. Technology companies are
subject to significant competitive pressures, such as new market entrants,
aggressive pricing, and competition for market
share, and the potential for falling profit margins. These companies also face
the risks that new services, equipment
and technologies will not be accepted by consumers or businesses, or will become
rapidly obsolete. These factors
can affect the profitability of technology companies and, as a result, the value
of their securities.
Utility
and Telecommunications Sector Risk.
A Fund that concentrates its investments in the utility and telecommunications
sectors may be more susceptible to financial, economic or market events
impacting those
sectors.
In particular, investments in the utility and telecommunications sectors include
unique risks such as decreases in
the demand for utility company products and services, increased competition
resulting from deregulation, and rising energy
costs, among others. These developments also could cause utility companies to
reduce the dividends they pay on
their stock, potentially decreasing the dividends the Fund pays.
Telecommunications companies and products, like technology
companies and products generally, are highly dependent on innovation and
expansion of existing technologies,
as well as intense pricing competition and industry consolidation. Investments
in companies in energy-related
industries can be significantly affected by (often rapid) changes in supply of,
or demand for, various natural
resources. They may also be affected by changes in energy prices, international
political and economic developments,
energy conservation, the success of exploration projects, changes in commodity
prices, and tax and other
government regulations (including possible imposition of a windfall profit tax
or similar tax).
Portfolio
Holdings Information
A
description of the Allspring
Funds’ policies and procedures with respect to disclosure of the Fund portfolio
holdings is
available in the Fund
Statement of Additional Information.
Pricing Fund
Shares
A Fund’s net
asset value (“NAV”) is the value of a single share. The NAV is calculated as of
the close of regular trading on the
New York Stock Exchange (“NYSE”) (generally 4:00 p.m. Eastern time) on each day
that the NYSE is open, although a Fund
may deviate from this calculation time under unusual or unexpected
circumstances.
The NAV is calculated
separately for each class of shares of a multiple-class Fund. The most recent
NAV for each class of a Fund is available
at allspringglobal.com. To calculate the NAV of a Fund’s
shares, the Fund’s
assets are valued and totaled, liabilities
are subtracted, and the balance, called net assets, is divided by the number of
shares outstanding. The price at
which a purchase or redemption request is processed is based on the next NAV
calculated after the request is received
in good order. Generally, NAV is not calculated, and purchase and redemption
requests are not processed, on days
that the NYSE is closed for trading; however, under unusual or unexpected
circumstances, a Fund
may elect to remain
open even on days that the NYSE is closed or closes early. To the extent
that a Fund’s
assets are traded in various
markets on days when the Fund
is closed, the value of the Fund’s
assets may be affected on days when you are unable
to buy or sell Fund
shares. Conversely, trading in some of a Fund’s
assets may not occur on days when the Fund
is
open.
With
respect to any portion of a Fund’s
assets that may be invested in other mutual funds, the value of
the Fund’s
shares is
based on the NAV of the shares of the other mutual funds in which
the Fund
invests. The valuation methods used by mutual
funds in pricing their shares, including the circumstances under which they will
use fair value pricing and the effects
of using fair value pricing, are included in the prospectuses of such funds. To
the extent a Fund
invests a portion of
its assets in non-registered investment vehicles, the Fund’s
interests in the non-registered vehicles are fair valued at NAV.
With
respect to a Fund’s
assets invested directly in securities, the Fund’s
investments are generally valued at current market
prices. Equity securities, options and futures are generally valued at the
official closing price or, if none, the last reported
sales price on the primary exchange or market on which they are listed (closing
price). Equity securities that are
not traded primarily on an exchange are generally valued at the quoted bid price
obtained from a broker-dealer.
Debt
securities are valued at the evaluated bid price provided by an independent
pricing service or, if a reliable price is not
available, the quoted bid price from an independent broker-dealer.
We
are required to depart from these general valuation methods and use fair value
pricing methods to determine the values
of certain investments if we believe that the closing price or the quoted bid
price of a security, including a security
that trades primarily on a foreign exchange, does not accurately reflect its
current market value as of the time a Fund
calculates its NAV. The closing price or the quoted bid price of a security may
not reflect its current market value
if, among other things, a significant event occurs after the closing price or
quoted bid price are made available, but
before the time as of which a Fund
calculates its NAV, that materially affects the value of the security. We use
various
criteria, including a systemic evaluation of U.S. market moves after the close
of foreign markets, in deciding whether
a foreign security’s market price is still reliable and, if not, what fair
market value to assign to the security. In addition,
we use fair value pricing to determine the value of investments in securities
and other assets, including illiquid
securities, for which current market quotations or evaluated prices from a
pricing service or broker-dealer are not
readily available.
The
fair value of a Fund’s
securities and other assets is determined in good faith pursuant to policies and
procedures adopted
by the Fund’s
Board of Trustees. Pursuant to such policies and procedures, the Board has
appointed the Manager
as the Fund’s valuation designee (the “Valuation Designee”) to perform all fair
valuations of the Fund’s portfolio
investments, subject to the Board’s oversight. As the Valuation Designee, the
Manager has established procedures
for its fair valuation of the Fund’s portfolio investments. These procedures
address, among other things, determining
when market quotations are not readily available or reliable and the
methodologies to be used for determining
the fair value of investments, as well as the use and oversight of third-party
pricing services for fair valuation.
In light of the judgment involved in making fair value decisions, there can be
no assurance that a fair value assigned
to a particular security is accurate or that it reflects the price that the
Fund could
obtain for such security if it were
to sell the security at the time as of which fair value pricing is determined.
Such fair value pricing may result in NAVs
that are higher or lower than NAVs based on the closing price or quoted bid
price. See the Statement of Additional
Information for additional details regarding the determination of
NAVs.
Management
of the Funds
The
Manager
Allspring
Funds Management, LLC (“Allspring
Funds Management”), headquartered at 1415 Vantage Park Drive, 3rd Floor,
Charlotte, NC 28203, provides advisory
and Fund level administrative services to the Funds
pursuant to an investment
management agreement (the “Management Agreement”). Allspring
Funds Management is 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. Allspring Funds Management is a
registered investment adviser that provides
advisory services for registered mutual funds, closed-end funds and other funds
and accounts.
Allspring
Funds Management is responsible for implementing the investment objectives and
strategies of the Funds.
Allspring
Funds Management’s investment professionals review and analyze the Fund
performance, including relative to
peer funds, and monitor the Fund
compliance with their
investment objectives and strategies. Allspring
Funds Management
is responsible for reporting to the Board on investment performance and other
matters affecting the Funds.
When appropriate, Allspring
Funds Management recommends to the Board enhancements to Fund features,
including
changes to Fund investment objectives, strategies and policies. Allspring
Funds Management also communicates
with shareholders
and intermediaries about Fund performance and features.
Allspring
Funds Management is also responsible for providing Fund-level
administrative services to the Funds,
which include,
among others, providing such services in connection with the Fund
operations; developing and implementing procedures
for monitoring compliance with regulatory requirements and compliance with
the Fund
investment objectives,
policies and restrictions; and providing any other Fund-level
administrative services reasonably necessary for
the operation of the Funds,
other than those services that are provided by the Fund transfer
and dividend disbursing agent,
custodian and fund accountant.
To
assist Allspring
Funds Management in implementing the investment objectives and strategies of the
Funds,
Allspring
Funds
Management may contract with one or more sub-advisers to provide day-to-day
portfolio management services to
the Funds.
Allspring
Funds Management employs a team of investment professionals who identify and
recommend the
initial hiring of any sub-adviser and oversee and monitor the activities of any
sub-adviser on an ongoing basis. Allspring
Funds Management retains overall responsibility for the investment activities of
the Funds.
A
discussion regarding the basis for the Board’s approval of
the Management
Agreement and any applicable sub-advisory
agreements for each Fund is
available in the Fund’s semi-annual
report for the period ended September
30th.
For each Fund’s
most recent fiscal year end, the management
fee paid to Allspring
Funds Management pursuant to the Management
Agreement, net of any applicable waivers and reimbursements, was as
follows:
|
|
Management
Fees Paid |
|
As
a % of average daily net assets |
Discovery
Innovation Fund |
0.76% |
Precious
Metals Fund |
0.58% |
Utility
and Telecommunications Fund |
0.56% |
The
Sub-Adviser and Portfolio Managers
The
following sub-adviser
and portfolio
managers provide day-to-day portfolio management services to the Funds. These
services include making purchases and sales of securities and other investment
assets for the Funds,
selecting
broker-dealers, negotiating brokerage commission rates and maintaining portfolio
transaction records. The sub-adviser is
compensated for their
services by Allspring
Funds Management from the fees Allspring
Funds Management receives
for its services as manager
to the Funds.
The Statement of Additional Information provides additional
information about the portfolio
managers’ compensation, other accounts managed by the portfolio
managers
and the portfolio
managers’ ownership of securities in the Funds.
Allspring
Global Investments, LLC
(“Allspring Investments”) is a registered investment adviser located
at 1415 Vantage Park
Drive, 3rd Floor, Charlotte, NC 28203. Allspring Investments, an affiliate of
Allspring Funds Management and
wholly
owned subsidiary of Allspring Global Investments Holdings, LLC, is a
multi-boutique asset management firm committed
to delivering superior investment services to institutional clients, including
mutual funds.
|
|
Michael
Bradshaw, CFA Precious
Metals Fund |
Mr.
Bradshaw joined Allspring Investments or one of its predecessor firms in
2006,
where he currently serves as a Senior Portfolio Manager for the Precious
Metals
team. |
Oleg
Makhorine Precious
Metals Fund |
Mr.
Makhorine joined Allspring Investments or one of its predecessor firms in
2005,
where he currently serves as a Portfolio Manager for the Special Global
Equity
and Precious Metals teams. |
Kent
Newcomb, CFA Utility
and Telecommunications
Fund |
Mr.
Newcomb joined Allspring Investments or one of its predecessor firms in
2018,
where he currently serves as a Portfolio Manager for the Rising Dividend
Equity
team. Prior to 2018, Mr. Newcomb worked at Wells
Fargo Advisors or an affiliate
since 2009. |
Michael
T. Smith, CFA Discovery
Innovation Fund |
Mr.
Smith joined Allspring Investments or one of its predecessor firms in
2000, where
he currently serves as a Managing Director and Lead Portfolio Manager of
the
Discovery Growth Equity team. |
Jack
Spudich, CFA Utility
and Telecommunications
Fund |
Mr.
Spudich joined Allspring Investments or one of its predecessor firms in
2018,
where he currently serves as a Portfolio Manager and team leader for the
Rising
Dividend Equity team. Prior to 2018, Mr. Spudich was employed by Wells
Fargo
Advisors since 2009. |
Christopher
J. Warner, CFA Discovery
Innovation Fund |
Mr.
Warner joined Allspring Investments or one its predecessor firms in 2007,
where
he currently serves as a Portfolio Manager for the Discovery Growth
Equity
team. |
Multi-Manager
Arrangement
The Funds
and Allspring
Funds Management have obtained an exemptive order from the SEC that
permits Allspring
Funds
Management, subject to Board approval, to select certain sub-advisers and enter
into or amend sub-advisory agreements
with them, without obtaining shareholder approval. The SEC order extends to
sub-advisers that are not otherwise
affiliated with Allspring
Funds Management or the Funds,
as well as sub-advisers that are wholly-owned subsidiaries
of Allspring
Funds Management or of a company that wholly owns Allspring
Funds Management. In addition,
the SEC staff, pursuant to no-action relief, has extended multi-manager relief
to any affiliated sub-adviser, such
as affiliated sub-advisers that are not wholly-owned subsidiaries of
Allspring
Funds Management or of a company that
wholly owns Allspring
Funds Management, provided certain conditions are satisfied (all such
sub-advisers covered by
the order or relief, “Multi-Manager Sub-Advisers”).
As
such, Allspring
Funds Management, with Board approval, may hire or replace Multi-Manager
Sub-Advisers for each Fund
that is eligible to rely on the order or relief. Allspring
Funds Management, subject to Board oversight, has the responsibility
to oversee Multi-Manager Sub-Advisers and to recommend their hiring, termination
and replacement. If a new
sub-adviser is hired for a Fund pursuant to the order or relief, the Fund is
required to notify shareholders within 90 days.
The Funds are
not required to disclose the individual fees that Allspring
Funds Management pays to a Multi-Manager
Sub-Adviser.
Account
Information
Share
Class Eligibility
Institutional
Class shares are generally available through intermediaries for the accounts of
their customers and directly to
institutional investors and individuals. Institutional investors may include
corporations; private banks; trust companies;
endowments and foundations; defined contribution, defined benefit and other
employer sponsored retirement
plans; institutional retirement plan platforms; insurance companies; registered
investment advisor firms; bank
trusts; 529 college savings plans; family offices; and funds of funds, including
those managed by Allspring
Funds Management.
The following investors may purchase Institutional Class shares and are not
subject to a minimum initial investment
amount except as noted below:
■ |
Employee
benefit plan programs; |
■ |
Broker-dealer
managed account or wrap programs that charge an asset-based
fee; |
■ |
Registered
investment adviser mutual fund wrap programs or other accounts that charge
a fee for advisory, investment,
consulting or similar services; |
■ |
Private
bank and trust company managed accounts or wrap programs that charge an
asset-based fee; |
■ |
Internal
Revenue Code Section 529 college savings plan
accounts; |
■ |
Funds
of funds, including those advised by Allspring
Funds Management; |
■ |
Endowments,
non-profits, and charitable organizations who invest a minimum initial
investment amount of $500,000 in
a Fund; |
■ |
Any
other institutions or customers of intermediaries who invest a minimum
initial investment amount of $1 million in
a Fund; |
■ |
Individual
investors who invest a minimum initial investment amount of $1 million
directly in a Fund; |
■ |
Certain
investors and related accounts as detailed in the Statement of Additional
Information; |
■ |
Investors
purchasing shares through an intermediary, acting solely as a broker on
behalf of its customers, that holds such
shares in an omnibus account and charges investors a transaction based
commission outside of the Fund. In order
to offer Fund shares, an intermediary must have an agreement with the
Fund’s distributor authorizing the use of
the share class within this type of
platform; |
■ |
Current
and retired employees, directors/trustees and officers
of: |
• |
Allspring
Funds (including any predecessor funds); |
• |
Allspring
Global Investments Holdings, LLC and its affiliates;
and |
• |
family
members (spouse, domestic partner, parents, grandparents, children,
grandchildren and siblings(including step
and in-law)) of any of the foregoing; and |
• |
a
Fund’s sub-adviser(s), but only for the Fund(s) for which such sub-adviser
provides investment advisory services. |
Eligibility
requirements for Institutional Class shares may be modified or discontinued at
any time.
Your
Fund may offer other classes of shares in addition to those offered through this
Prospectus. You may be eligible to invest
in one or more of these other classes of shares. Each share class bears varying
expenses and may differ in other features.
Consult your financial professional for more information regarding a Fund’s
available share classes.
The
information in this Prospectus is not intended for distribution to, or use by,
any person or entity in any non-U.S. jurisdiction
or country where such distribution or use would be contrary to any law or
regulation, or which would subject
Fund shares to any registration requirement within such jurisdiction or
country.
Share
Class Features
The
table below summarizes the key features of the share class offered through this
Prospectus. Please note that if you purchase
shares through an intermediary that acts as a broker on your behalf, you may be
required to pay a commission
to your intermediary in an amount determined and separately disclosed to you by
the intermediary. Consult
your financial professional for further details.
|
|
|
|
Institutional
Class |
Front-End
Sales Charge |
|
None |
Contingent
Deferred Sales Charge (“CDSC”) |
|
None |
Ongoing
Distribution (“12b-1”) Fees |
|
None |
Information
regarding sales charges, breakpoint levels, reductions and waivers is also
available free of charge on our website
at www.allspringglobal.com.
You may wish to discuss your choice of share class with your financial
professional.
Compensation
to Financial Professionals and Intermediaries
In
addition to dealer reallowances and payments made by certain classes
of each
Fund for distribution and shareholder servicing,
the Fund’s manager, the distributor or their affiliates make additional payments
(“Additional Payments”) to certain
financial professionals and intermediaries for selling shares and providing
shareholder services, which include broker-dealers
and 401(k) service providers and record keepers. These Additional Payments,
which may be significant, are
paid by the Fund’s manager, the distributor or their affiliates, out of their
revenues, which generally come directly or indirectly
from Fund fees.
In
return for these Additional Payments, each
Fund’s manager and distributor expect the Fund to receive certain marketing
or servicing considerations that are not generally available to mutual funds
whose sponsors do not make such
payments. Such considerations are expected to include, without limitation,
placement of the Fund on a list of mutual
funds offered as investment options to the intermediary’s clients (sometimes
referred to as “Shelf Space”); access
to the intermediary’s financial professionals; and/or the ability to assist in
training and educating the intermediary’s
financial professionals.
The
Additional Payments may create potential conflicts of interest between an
investor and a financial professional or intermediary
who is recommending or making available a particular mutual fund over other
mutual funds. Before investing,
you should consult with your financial professional and review carefully any
disclosure by the intermediary as to
what compensation the intermediary receives from mutual fund sponsors, as well
as how your financial professional is
compensated.
The
Additional Payments are typically paid in fixed dollar amounts, based on the
number of customer accounts maintained
by an intermediary, or based on a percentage of sales and/or assets under
management, or a combination of
the above. The Additional Payments are either up-front or ongoing or both and
differ among intermediaries. In a given
year, Additional Payments to an intermediary that is compensated based on its
customers’ assets typically range between
0.02% and 0.25% of assets invested in a Fund by the intermediary’s customers.
Additional Payments to an intermediary
that is compensated based on a percentage of sales typically range between 0.10%
and 0.25% of the gross
sales of a Fund attributable to the financial intermediary.
More
information on the FINRA member firms that have received the Additional Payments
described in this section is available
in the Statement of Additional Information, which is on file with the SEC and is
also available on the Allspring
Funds
website at www.allspringglobal.com.
Buying
and Selling Fund Shares
For
more information regarding buying and selling Fund shares, please visit
www.allspringglobal.com.
You may buy (purchase)
and sell (redeem) Fund shares as follows:
|
|
|
|
Opening
an Account |
Adding
to an Account or Selling Fund Shares |
Through
Your Financial Professional |
Contact
your financial
professional.
Transactions
will be subject to the terms
of your account with your intermediary. |
Contact
your financial professional.
Transactions
will be subject to the terms of
your account with your intermediary. |
Through
Your Retirement Plan |
Contact
your retirement plan administrator.
Transactions
will be subject to the terms
of your retirement plan account. |
Contact
your retirement plan administrator.
Transactions
will be subject to the terms of
your retirement plan account. |
|
|
|
|
Opening
an Account |
Adding
to an Account or Selling Fund Shares |
Online |
New
accounts cannot be opened online.
Contact your financial professional
or retirement plan administrator,
or refer to the section on
opening an account by mail. |
Visit
www.allspringglobal.com.
Online
transactions are limited to a maximum
of $100,000. You may be eligible
for an exception to this maximum.
Please call Investor Services at
1-800-222-8222 for more information. |
By
Telephone |
Call
Investor Services at 1-800-222-8222.
Available
only if you have another Allspring
Fund account with your bank
information on file. |
Call
Investor Services at 1-800-222-8222.
Redemption
requests may not be made by
phone if the address on your account was
changed in the last 15 days. In this event,
you must request your redemption
by mail. For joint accounts, telephone
requests generally require only
one of the account owners to call unless
you have instructed us otherwise. |
By
Mail |
Complete
an account application and
submit it according to the instructions
on the application.
Account
applications are available online
at www.allspringglobal.com
or by
calling Investor Services at 1-800-222-8222. |
Send
the items required under “Requests
in Good Order” below to:
Regular
Mail Allspring
Funds P.O.
Box 219967 Kansas
City, MO 64121-9967
Overnight
Only Allspring
Funds 430
W 7th Street STE 219967 Kansas
City, MO 64105-1407 |
Requests
in “Good Order”.
All purchase and redemption requests must be received in “good order.” This
means that a request
generally must include:
■ |
The
Fund name(s), share class(es) and account
number(s); |
■ |
The
amount (in dollars or shares) and type (purchase or redemption) of the
request; |
■ |
If
by mail, the signature of each registered owner as it appears in the
account application; |
■ |
For
purchase requests, payment of the full amount of the purchase request (see
“Payment” below); and |
■ |
Any
supporting legal documentation that may be
required. |
Purchase
and redemption requests in good order will be processed at the next NAV
calculated after the Fund’s transfer agent
or an authorized intermediary1
receives your request. If your request is not received in good order, additional
documentation
may be required to process your transaction. We reserve the right to waive any
of the above requirements.
1. |
The
Fund’s shares may be purchased through an intermediary that has entered
into a dealer agreement with the Fund’s distributor. The
Fund has approved the acceptance of a purchase or redemption request
effective as of the time of its receipt by such an authorized
intermediary or its designee, as long as the request is received by one of
those entities prior to the Fund’s closing time. These
intermediaries may charge transaction fees. We reserve the right to adjust
the closing time in certain circumstances. |
Payment.
Payment for Fund shares may be made as follows:
|
|
By
Wire |
Purchases
into a new or existing account may be funded by using the following
wire
instructions:
State
Street Bank & Trust Boston,
MA Bank
Routing Number: ABA 011000028 Wire
Purchase Account: 9905-437-1 Attention:
Allspring
Funds (Name
of Fund, Account Number and any applicable share class) Account
Name: Provide your name as registered on the Fund account or as
included
in your account application. |
By
Check |
Make
checks payable to Allspring
Funds. |
|
|
By
Exchange |
Identify
an identically registered Allspring
Fund account from which you wish to exchange
(see “Exchanging Fund Shares” below for restrictions on
exchanges). |
By
Electronic Funds Transfer (“EFT”) |
Additional
purchases for existing accounts may be funded by EFT using your
linked
bank account. |
All
payments must be in U.S. dollars, and all checks and EFTs must be drawn on U.S.
banks. You will be charged a $25.00
fee for every check or EFT that is returned to us as unpaid.
Form
of Redemption Proceeds.
You may request that your redemption proceeds be sent to you by check, by EFT
into a linked
bank account, or by wire to a linked bank account. Please call Investor Services
at 1-800-222-8222 regarding the requirements
for linking bank accounts or for wiring funds. Under normal circumstances, we
expect to meet redemption
requests either by using uninvested cash or cash equivalents or by using the
proceeds from the sale of portfolio
securities, at the discretion of the portfolio manager(s). The Allspring
Funds may also borrow through a bank line
of credit for the purpose of meeting redemption requests, although we do not
expect to draw funds from this source
on a regular basis. In lieu of making cash payments, we reserve the right to
determine in our sole discretion, including
under stressed market conditions, whether to satisfy one or more redemption
requests by making payments in
securities. In such cases, we may meet all or part of a redemption request by
making payment in securities equal in value
to the amount of the redemption payable to you as permitted under the 1940 Act,
and the rules thereunder, in which
case the redeeming shareholder should expect to incur transaction costs upon the
disposition of any securities received.
Timing
of Redemption Proceeds.
We normally will send out redemption proceeds within one business day after we
accept
your request to redeem. We reserve the right to delay payment for up to seven
days. If you wish to redeem shares
purchased by check, by EFT or through the Automatic Investment Plan within seven
days of purchase, you may be
asked to resubmit your redemption request if your payment has not yet cleared.
Payment of redemption proceeds may
be delayed for longer than seven days under extraordinary circumstances or as
permitted by the SEC in order to protect
remaining shareholders. Such extraordinary circumstances are discussed further
in the Statement of Additional Information.
Retirement
Plans and Other Products.
If you purchased shares through a packaged investment product or retirement
plan,
read the directions for redeeming shares provided by the product or plan. There
may be special requirements that
supersede or are in addition to the requirements in this
Prospectus.
Exchanging
Fund Shares
Exchanges
between two funds involve two transactions: (1) the redemption of shares of one
fund; and (2) the purchase of
shares of another. In general, the same rules and procedures described under
“Buying and Selling Fund Shares” apply
to exchanges. There are, however, additional policies and considerations you
should keep in mind while making or
considering an exchange:
■ |
In
general, exchanges may be made between like share classes of any fund in
the Allspring
Funds complex offered to
the general public for investment (i.e., a fund not closed to new
accounts), with the following exceptions: (1) Class A
shares of non-money market funds may also be exchanged for Service Class
shares of any retail or government money
market fund; (2) Service Class shares may be exchanged for Class A shares
of any non-money market fund; and
(3) no exchanges are allowed into institutional money market
funds. |
■ |
If
you make an exchange between Class A shares of a money market fund or
Class A2 or Class A shares of a non-money
market fund, you will buy the shares at the public offering price of the
new fund, unless you are otherwise
eligible to buy shares at NAV. |
■ |
Same-fund
exchanges between share classes are permitted subject to the following
conditions: (1) the shareholder must
meet the eligibility guidelines of the class being purchased in the
exchange; (2) exchanges out of Class A and Class
C shares would not be allowed if shares are subject to a CDSC; and (3) for
non-money market funds, in order to exchange
into Class A shares, the shareholder must be able to qualify to purchase
Class A shares at NAV based on current
Prospectus guidelines. |
■ |
An
exchange request will be processed on the same business day, provided that
both funds are open at the time the request
is received. If one or both funds are closed, the exchange will be
processed on the following business day. |
■ |
You
should carefully read the Prospectus for the Fund into which you wish to
exchange. |
■ |
Every
exchange involves redeeming fund shares, which may produce a capital gain
or loss for tax purposes. |
■ |
If
you are making an initial investment into a fund through an exchange, you
must exchange at least the minimum |
|
initial
investment amount for the new fund, unless your balance has fallen below
that amount due to investment performance. |
■ |
If
you are making an additional investment into a fund that you already own
through an exchange, you must exchange
at least the minimum subsequent investment amount for the fund you are
exchanging into. |
■ |
Class
A and Class C share exchanges will not trigger a CDSC. The new shares
received in the exchange will continue to
age according to the original shares’ CDSC schedule and will be charged
the CDSC applicable to the original shares
upon redemption. |
Generally,
we will notify you at least 60 days in advance of any changes in the above
exchange policies.
Frequent
Purchases and Redemptions of Fund Shares
Allspring
Funds reserves the right to reject any purchase or exchange order for any
reason. If a shareholder redeems $20,000
or more (including redemptions that are part of an exchange transaction) from a
Covered Fund (as defined below),
that shareholder is “blocked” from purchasing shares of that Covered Fund
(including purchases that are part of
an exchange transaction) for 30 calendar days after the redemption.
Excessive
trading by Fund shareholders can negatively impact a Fund and its long-term
shareholders in several ways, including
disrupting Fund investment strategies, increasing transaction costs, decreasing
tax efficiency, and diluting the
value of shares held by long-term shareholders. Excessive trading in Fund shares
can negatively impact a Fund’s long-term
performance by requiring it to maintain more assets in cash or to liquidate
portfolio holdings at a disadvantageous
time. Certain Funds may be more susceptible than others to these negative
effects. For example, Funds
that have a greater percentage of their investments in non-U.S. securities may
be more susceptible than other Funds
to arbitrage opportunities resulting from pricing variations due to time zone
differences across international financial
markets. Similarly, Funds that have a greater percentage of their investments in
small company securities may be
more susceptible than other Funds to arbitrage opportunities due to the less
liquid nature of small company securities.
Both types of Funds also may incur higher transaction costs in liquidating
portfolio holdings to meet excessive
redemption levels. Fair value pricing may reduce these arbitrage opportunities,
thereby reducing some of the
negative effects of excessive trading.
Allspring
Funds, other than the Adjustable Rate Government Fund, Conservative Income Fund,
Ultra Short-Term Income
Fund and Ultra Short-Term Municipal Income Fund (“Ultra-Short Funds”) and the
money market funds, (the “Covered
Funds”).
The Covered Funds are not designed to serve as vehicles for frequent trading.
The Covered Funds actively
discourage and take steps to prevent the portfolio disruption and negative
effects on long-term shareholders that
can result from excessive trading activity by Covered Fund shareholders. The
Board has approved the Covered Funds’
policies and procedures, which provide, among other things, that Allspring
Funds Management may deem trading
activity to be excessive if it determines that such trading activity would
likely be disruptive to a Covered Fund by
increasing expenses or lowering returns. In this regard, the Covered Funds take
steps to avoid accommodating frequent
purchases and redemptions of shares by Covered Fund shareholders. Allspring
Funds Management monitors available
shareholder trading information across all Covered Funds on a daily basis. If a
shareholder redeems $20,000 or
more (including redemptions that are part of an exchange transaction) from a
Covered Fund, that shareholder is “blocked”
from purchasing shares of that Covered Fund (including purchases that are part
of an exchange transaction) for
30 calendar days after the redemption. This policy does not apply
to:
■ |
Dividend
reinvestments; |
■ |
Systematic
investments or exchanges where the financial intermediary
maintaining the shareholder account identifies
the transaction as a systematic redemption or purchase at the time of the
transaction; |
■ |
Rebalancing
transactions within certain asset allocation or “wrap” programs where the
financial intermediary maintaining
a shareholder account is able to identify the transaction as part of an
asset allocation program approved by
Allspring
Funds Management; |
■ |
Rebalancing
transactions by an institutional client of Allspring
Funds Management or its affiliate following a model
portfolio
offered by Allspring
Funds Management or its
affiliate; |
■ |
Transactions
initiated by a “fund of funds” or Section 529 Plan into an underlying fund
investment; |
■ |
Permitted
exchanges between share classes of the same
Fund; |
■ |
Certain
transactions involving participants in employer-sponsored retirement
plans, including: participant withdrawals
due to mandatory distributions, rollovers and hardships, withdrawals of
shares acquired by participants through
payroll deductions, and shares acquired or sold by a participant in
connection with plan loans; and |
■ |
Purchases
below $20,000 (including purchases that are part of an exchange
transaction). |
The
money market funds and the Ultra-Short Funds.
Because the money market funds and Ultra-Short Funds are often used
for short-term investments, they are designed to accommodate more frequent
purchases and redemptions than the
Covered Funds. As a result, the money market funds and Ultra-Short Funds do not
anticipate that frequent purchases
and redemptions, under normal circumstances, will have significant adverse
consequences to the money market
funds or Ultra-Short Funds or their shareholders. Although the money market
funds and Ultra-Short Funds do not
prohibit frequent trading, Allspring
Funds Management will seek to prevent an investor from utilizing the
money market
funds and Ultra-Short Funds to facilitate frequent purchases and redemptions of
shares in the Covered Funds in contravention
of the policies and procedures adopted by the Covered Funds.
All
Allspring
Funds.
In addition, Allspring
Funds Management reserves the right to accept purchases, redemptions
and exchanges
made in excess of applicable trading restrictions in designated accounts held by
Allspring
Funds Management or
its affiliate that are used at all times exclusively for addressing operational
matters related to shareholder
accounts, such as testing of account functions, and are maintained at low
balances that do not exceed specified
dollar amount limitations.
In
the event that an asset allocation or “wrap” program is unable to implement the
policy outlined above, Allspring
Funds
Management may grant a program-level exception to this policy. A
financial intermediary relying on the exception
is required to provide Allspring
Funds Management with specific information regarding its program and
ongoing
information about its program upon request.
A
financial intermediary through whom you may purchase shares of the Fund may
independently attempt to identify excessive
trading and take steps to deter such activity. As a result, a financial
intermediary may on its own limit or permit
trading activity of its customers who invest in Fund shares using standards
different from the standards used by Allspring
Funds Management and discussed in this Prospectus. Allspring
Funds Management may permit a financial intermediary
to enforce its own internal policies and procedures concerning frequent trading
rather than the policies set
forth above in instances where Allspring
Funds Management reasonably believes that the intermediary’s policies
and
procedures effectively discourage disruptive trading activity. If you purchase
Fund shares through a financial intermediary,
you should contact the intermediary for more information about whether and how
restrictions or limitations
on trading activity will be applied to your account.
Account
Policies
Advance
Notice of Large Transactions.
We strongly urge you to make all purchases and redemptions of Fund shares
as
early in the day as possible and to notify us or your intermediary at least one
day in advance of transactions in Fund shares
in excess of $1 million. This will help us to manage the Funds most effectively.
When you give this advance notice,
please provide your name and account number.
Householding.
To help keep Fund expenses low, a single copy of a Prospectus or shareholder
report may be sent to shareholders
of the same household. If your household currently receives a single copy of a
Prospectus or shareholder report
and you would prefer to receive multiple copies, please call Investor Services
at 1-800-222-8222 or contact your financial
professional.
Retirement
Accounts.
We offer a variety of retirement account types for individuals and small
businesses. There may be
special distribution requirements for a retirement account, such as required
distributions or mandatory Federal income
tax withholdings. For more information about the retirement accounts listed
below, including any distribution requirements,
call Investor Services at 1-800-222-8222. For retirement accounts held directly
with a Fund, certain fees may
apply including an annual account maintenance fee.
The
retirement accounts available for individuals and small businesses
are:
■ |
Individual
Retirement Accounts, including Traditional IRAs and Roth
IRAs. |
■ |
Small
business retirement accounts, including Simple IRAs and SEP
IRAs. |
Small
Account Redemptions.
We reserve the right to redeem accounts that have values that fall below a
Fund’s minimum
initial investment amount due to shareholder redemptions (as opposed to market
movement). Before doing so,
we will give you approximately 60 days to bring your account value above the
Fund’s minimum initial investment amount.
Please call Investor Services at 1-800-222-8222 or contact your financial
professional for further details.
Transaction
Authorizations.
We may accept telephone, electronic, and clearing agency transaction
instructions from anyone
who represents that he or she is a shareholder and provides reasonable
confirmation of his or her identity.
Neither
we nor Allspring
Funds will be liable for any losses incurred if we follow such instructions we
reasonably believe to
be genuine. For transactions through our website, we may assign personal
identification numbers (PINs) and you will need
to create a login ID and password for account access. To safeguard your account,
please keep these credentials confidential.
Contact us immediately if you believe there is a discrepancy on your
confirmation statement or if you believe
someone has obtained unauthorized access to your online access
credentials.
Identity
Verification.
We are required by law to obtain from you certain personal information that will
be used to verify your
identity. If you do not provide the information, we will not be able to open
your account. In the rare event that we are
unable to verify your identity as required by law, we reserve the right to
redeem your account at the current NAV of the
Fund’s shares. You will be responsible for any losses, taxes, expenses, fees, or
other results of such a redemption.
Right
to Freeze Accounts, Suspend Account Services or Reject or Terminate an
Investment.
We reserve the right, to the
extent permitted by law and/or regulations, to freeze any account or suspend
account services when we have received
reasonable notice (written or otherwise) of a dispute between registered or
beneficial account owners or when
we believe a fraudulent transaction may occur or has occurred. Additionally, we
reserve the right to reject any purchase
or exchange request and to terminate a shareholder’s investment, including
closing the shareholder’s account.
Distributions
The
Discovery Innovation Fund and the Precious Metals Fund generally makes
distributions of any net investment income and
any realized net capital gains at least annually. The Utility and
Telecommunications Fund generally makes distributions
of any net investment income quarterly and any realized
net capital gains at least annually. Please contact your
institution for distribution options. Remember, distributions have the effect of
reducing the NAV per share by the amount
distributed.
We
offer the following distribution options. To change your current option for
payment of distributions, please call Investor
Services at 1-800-222-8222.
■ |
Automatic
Reinvestment Option—Allows you to use distributions to buy new shares of
the same class of the Fund that
generated the distributions. The new shares are purchased at NAV generally
on the day the distribution is paid. This
option is automatically assigned to your account unless you specify
another option. |
■ |
Check
Payment Option—Allows you to receive distributions via checks mailed to
your address of record or to another
name and address which you have specified in written instructions. A
Medallion Guarantee may also be required.
If checks remain uncashed for six months or are undeliverable by the Post
Office, we will reinvest the distributions
at the earliest date possible, and future distributions will be
automatically reinvested. |
■ |
Bank
Account Payment Option—Allows you to receive distributions directly in a
checking or savings account through
EFT. The bank account must be linked to your Allspring
Fund account. Any distribution returned to us due to an
invalid banking instruction will be sent to your address of record by
check at the earliest date possible, and future distributions
will be automatically reinvested. |
■ |
Directed
Distribution Purchase Option—Allows you to buy shares of a different
Allspring
Fund of the same share class.
The new shares are purchased at NAV generally on the day the distribution
is paid. In order to use this option, you
need to identify the Fund and account the distributions are coming from,
and the Fund and account to which the
distributions are being directed. You must meet any required minimum
investment amounts in both Funds prior to
using this option. |
You
are eligible to earn distributions beginning on the business day after the
Fund’s transfer agent or an authorized intermediary
receives your purchase request in good order.
Other
Information
Taxes
The
following discussion regarding federal income taxes is based on laws that were
in effect as of the date of this Prospectus
and summarizes only some of the important federal income tax considerations
affecting the Fund and you as
a shareholder. It does not apply to foreign or tax-exempt shareholders or those
holding Fund shares through a tax-advantaged
account, such as a 401(k) Plan or IRA. This discussion is not intended as a
substitute for careful tax planning.
You should consult your tax adviser about your specific tax situation. Please
see the Statement of Additional Information
for additional federal income tax information.
The
Fund elected to be treated, and intends to qualify each year, as a regulated
investment company (“RIC”) under the Internal
Revenue Code of 1986, as amended. A RIC is not subject to tax at the corporate
level on income and gains from
investments that are distributed in a timely manner to shareholders. However,
the Fund’s failure to qualify as a RIC would
result in corporate level taxation, and consequently, a reduction in income
available for distribution to you as a shareholder.
We
will pass on to a Fund’s shareholders substantially all of the Fund’s net
investment income and realized net capital gains,
if any. Distributions from a Fund’s ordinary income and net short-term capital
gains, if any, generally will be taxable
to you as ordinary income. Distributions from a Fund’s net long-term capital
gains, if any, generally will be taxable
to you as long-term capital gains. If you are an individual and meet certain
holding period requirements with respect
to your Fund shares, you may be eligible for reduced tax rates on qualified
dividend income, if any, distributed by
the Fund.
Corporate
shareholders may be able to deduct a portion of their distributions when
determining their taxable income.
Individual
taxpayers are subject to a maximum tax rate of 37% on ordinary income and a
maximum tax rate on long-term
capital gains and qualified dividends of 20%. For U.S. individuals with income
exceeding $200,000 ($250,000
if married and filing jointly), a 3.8% Medicare contribution tax will apply on
“net investment income,” including
interest, dividends, and capital gains. Corporations are subject to tax on all
income and gains at a tax rate of 21%.
However, a RIC is not subject to tax at the corporate level on income and gains
from investments that are distributed
in a timely manner to shareholders.
Distributions
from a Fund normally will be taxable to you when paid, whether you take
distributions in cash or automatically
reinvest them in additional Fund shares. Following the end of each year, we will
notify you of the federal income
tax status of your distributions for the year.
If
you buy shares of a Fund shortly before it makes a taxable distribution, your
distribution will, in effect, be a taxable return
of part of your investment. Similarly, if you buy shares of a Fund when it holds
appreciated securities, you will receive
a taxable return of part of your investment if and when the Fund sells the
appreciated securities and distributes the
gain. The Fund has built up, or has the potential to build up, high levels of
unrealized appreciation.
Your
redemptions (including redemptions in-kind) and exchanges of Fund shares
ordinarily will result in a taxable capital
gain or loss, depending on the amount you receive for your shares (or are deemed
to receive in the case of exchanges)
and the amount you paid (or are deemed to have paid) for them. Such capital gain
or loss generally will be long-term
capital gain or loss if you have held your redeemed or exchanged Fund shares for
more than one year at the time
of redemption or exchange. In certain circumstances, losses realized on the
redemption or exchange of Fund shares
may be disallowed.
When
you receive a distribution from a Fund or redeem shares, you may be subject to
backup withholding.
Financial
Highlights
The
following tables are intended
to help you understand a Fund’s financial performance for the past five years
(or since inception,
if shorter). Certain information reflects financial results for a single Fund
share. Total returns represent the rate
you would have earned (or lost) on an investment in each
Fund (assuming reinvestment of all distributions). The information
in the following tables has
been derived from the Fund
financial statements
which have
been audited by KPMG
LLP, the Funds’ independent registered public accounting firm, whose report,
along with each
Fund’s financial statements,
is also included in each
Fund’s annual report, a copy of which is available upon request.
Discovery
Innovation Fund
For
a share outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended March 31 |
Institutional
Class |
|
2023 |
|
2022 |
|
2021 |
|
2020 |
|
2019 |
Net
asset value, beginning of period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Net
investment loss |
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gains (losses) on investments
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders from |
|
|
|
|
|
|
|
|
|
|
Net
realized gains |
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Total
return |
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
Net
investment loss |
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
1 |
Calculated
based upon average shares outstanding |
Precious
Metals Fund
For
a share outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended March 31 |
Institutional
Class |
|
2023 |
|
2022 |
|
2021 |
|
2020 |
|
2019 |
Net
asset value, beginning of period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gains (losses) on investments
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders from |
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Total
return |
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate2
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
1 |
Calculated
based upon average shares outstanding |
2 |
Portfolio
turnover rate includes the purchases and sales transactions of its
wholly-owned subsidiary. |
Utility
and Telecommunications Fund
For
a share outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended March 31 |
Institutional
Class |
|
2023 |
|
2022 |
|
2021 |
|
2020 |
|
2019 |
Net
asset value, beginning of period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gains (losses) on investments
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders from |
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Net
realized gains |
|
|
|
|
|
|
|
|
|
|
Total
distributions to shareholders |
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Total
return |
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
|
FOR
MORE INFORMATION
More
information on a Fund is available free upon request, including
the following documents:
Statement
of Additional Information (“SAI”) Supplements
the disclosures made by this Prospectus. The
SAI, which has been filed with the SEC, is incorporated
by reference into this Prospectus and therefore
is legally part of this Prospectus.
Annual/Semi-Annual
Reports Provide
financial and other important information, including
a discussion of the market conditions and
investment strategies that significantly affected Fund
performance over the reporting period.
To
obtain copies of the above documents or for more information
about Allspring
Funds, contact us:
By
telephone: Individual
Investors: 1-800-222-8222 Retail
Investment Professionals: 1-888-877-9275 Institutional
Investment Professionals: 1-800-260-5969 |
By
mail: Allspring
Funds P.O.
Box 219967 Kansas
City, MO 64121-9967
Online: www.allspringglobal.com
From
the SEC: Visit
the SEC’s Public Reference Room in Washington, DC
(phone 1-202-551-8090 for operational information
for the SEC’s Public Reference Room) or the
SEC’s website at sec.gov.
To
obtain information for a fee, write or email:SEC’s
Public Reference Section100
“F” Street, NEWashington,
DC 20549-0102[email protected]The
Allspring
Funds are distributed byAllspring
Funds Distributor, LLC, a member of
FINRA. |
|
|
©
2023
Allspring Global Investments Holdings, LLC. All rights
reserved. |
PRO4715
08-23 ICA
Reg. No. 811-09253 |