2023-08-28RealReturn-Retail
|
|
|
|
Prospectus
December
1, 2023 |
|
|
|
Fund |
Class
R6 |
|
Allspring
Real Return Fund |
IPBJX |
The
U.S. Securities and Exchange Commission (“SEC”) and the Commodity Futures
Trading Commission have 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.
Real
Return Fund Summary
Investment
Objective
The
Fund seeks returns that exceed the rate of inflation over the
long-term.
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
Fees1
|
% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
0.26% |
|
Total
Annual Fund Operating Expenses2
|
% |
|
Fee
Waivers |
(0.31)% |
|
Total
Annual Fund Operating Expenses After Fee Waivers3
|
% |
| 1. |
Includes
the fees charged by the Manager for providing advisory services to the
master portfolio in which the Fund invests substantially
all of its assets. |
| 2. |
Includes
other expenses allocated from the master portfolio in which the Fund
invests. |
| 3. |
The
Manager has contractually committed through September
30, 2025,
to waive fees and/or reimburse expenses to the extent necessary
to cap Total Annual Fund Operating Expenses After Fee Waivers at
0.40%
for Class
R6. Brokerage commissions, stamp duty
fees, interest, taxes, acquired fund fees and expenses (if any) from funds
in which the underlying affiliated master portfolios and
funds invest and from money market funds, and extraordinary expenses are
excluded from the expense cap. All other acquired fund
fees and expenses from the affiliated master portfolios and funds are
included in 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 |
$41 |
|
3
Years |
$163 |
|
5
Years |
$332 |
|
10
Years |
$822 |
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 22%
of
the average value of its portfolio.
Principal
Investment Strategies
Under
normal circumstances, we invest:
|
■ |
up
to 70% of the Fund’s total assets in debt
securities; |
|
■ |
up
to 70% of the Fund’s total assets in equity securities;
and |
|
■ |
up
to 25% of the Fund’s net assets in
commodities. |
The
Fund is a feeder fund that invests substantially all of its assets in the Real
Return Portfolio, a master portfolio with a substantially
identical investment objective and substantially similar investment strategies.
We may invest in additional master
portfolios, in other Allspring Funds, or directly in a portfolio of
securities.
We
utilize an active allocation strategy to diversify the portfolio across various
investments, assets and sectors, in an attempt
to generate a real return (a return in excess of the rate of inflation) over an
economic cycle, consistent with an appropriate
level of risk. We dynamically allocate investments to various broad asset
classes across debt, equity and commodities
based on our assessment of changing economic, global market, industry, and
issuer conditions.
We
may invest up to 70% of the Fund’s total assets in debt securities including but
not limited to, inflation-indexed debt securities,
corporate-issued debt, mortgage- and asset-backed securities, bank loans and
government obligations. These
securities may have fixed, floating or variable rates. We may invest up to 10%
of the Fund’s total assets in below investment-grade
debt securities, often called “high yield securities” or “junk bonds”. We do not
manage the portfolio to
a specific maturity or duration. We may use futures contracts to manage or
adjust duration and yield curve exposure,
as well as to manage risk or to enhance
return.
We
may invest up to 70% of the Fund’s total assets in equity securities, including
but not limited to, common stock, preferred
stock and real estate investment trusts (“REITs”), of domestic and foreign
issuers of any market capitalization. We
may invest in derivatives, such as futures and swaps, that have similar economic
or financial characteristics of any security
described above.
We
may invest up to 25% of the Fund’s net assets in the common or preferred stock
of a subsidiary of the Fund that typically
invests directly or indirectly in commodity-linked derivatives such as commodity
forwards, commodity futures,
commodity swaps, swaps on commodity futures and other commodity-linked
derivative securities; it may also invest
in all other securities allowed in the Fund. These holdings may contribute more
than 25% of the Fund’s risk allocation.
The
Fund will incorporate a derivatives overlay strategy that contains three
specific risk management components: 1.) Tactical
Asset Allocation (TAA) Overlay, 2.) Tail Risk Management (TRM) and 3.) Real
Return Overlay (RRO). Together these
strategies will allow the Fund to attempt to manage short-term volatility,
mitigate risk and/or improve returns under
certain market conditions. To execute this overlay strategy, the Fund (either
directly or through its subsidiary in the
case of commodity exposure) invests in long and/or short positions in
exchange-traded futures and/or currency forward
contracts across a variety of asset classes, which include, but are not limited
to, stocks, bonds, commodities, and
currencies.
Principal
Investment Risks
Because
the Fund invests substantially all of its assets in a master portfolio with a
substantially identical investment objective
and substantially similar investment strategies, the following principal risks
include those risks that result from
the Fund’s investment in the master portfolio. In this section, references to
the Fund should be read to include the Fund
and the master portfolio, as appropriate.
The
Fund’s performance will not correlate perfectly with that of the master
portfolio due to the impact of the Fund’s fees
and expenses and to the timing and magnitude of cash flows into and out of the
Fund, which will create cash balances
that cause the Fund’s performance to deviate from the performance of the master
portfolio.
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.
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.
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.
Inflation-Indexed
Debt Securities Risk.
The principal value of an inflation-indexed debt security is periodically
adjusted according
to the rate of inflation and, as a result, the value of a Fund’s yield and
return will be affected by changes in the
rate of inflation.
Subsidiary
Risk.
The value of a Fund’s investment in its Cayman Islands subsidiary may be
adversely impacted by the risks
associated with the underlying derivatives investments of the subsidiary. 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.
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.
Foreign
Currency Contracts Risk.
A Fund that enters into forwards or other foreign currency contracts, which are
a type
of derivative, is subject to the risk that the portfolio manager may be
incorrect in his or her judgment of future exchange
rate changes.
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.
Futures
Contracts Risk.
A Fund that uses futures contracts, which are a type of derivative, is subject
to the risk of loss caused
by unanticipated market movements. In addition, there may at times be an
imperfect correlation between the
movement
in the prices of futures contracts and the value of their underlying instruments
or indexes, and there may at times
not be a liquid secondary market for certain futures
contracts.
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.
Loan
Risk.
Loans may be unrated, less liquid and more difficult to value than traditional
debt securities. The highly leveraged
capital structure of the borrowers in such transactions may make such loans
especially vulnerable to adverse changes
in financial, economic or market conditions. A Fund may be unable to sell loans
at a desired time or price. The Fund
may also not be able to control amendments, waivers or the exercise of any
remedies that a lender would have under
a direct loan and may assume liability as a
lender.
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.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities may decline in value and become
less liquid when defaults on the underlying mortgages or assets occur and may
exhibit additional volatility in periods
of rising interest rates. Rising interest rates tend to extend the duration of
these securities, making them more sensitive
to changes in interest rates than instruments with fixed payment schedules. When
interest rates decline or are low,
the prepayment of mortgages or assets underlying such securities can reduce a
Fund’s returns.
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.
Swaps
Risk.
Depending on their structure, swap agreements and options to enter into swap
agreements (“swaptions”), both
of which are types of derivatives, may increase or decrease a Fund’s exposure to
long- or short-term interest rates, foreign
currency values, mortgage-backed securities, corporate borrowing rates, or
credit events or other reference points
such as security prices or inflation rates.
U.S.
Government Obligations Risk.
U.S. Government obligations may be adversely impacted by changes in interest
rates,
and securities issued or guaranteed by U.S. Government agencies or
government-sponsored entities may not be backed
by the full faith and credit of the U.S. Government. U.S. Government obligations
may be adversely affected by a default
by, or decline in the credit quality, of the U.S.
Government.
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 Class R6 as of 12/31 each year1
|
|
|
Highest
Quarter:
June
30,
2020 |
|
Lowest
Quarter:
June
30,
2013 |
|
Year-to-date
total return
as of September
30, 2023
is +0.37% |
|
|
|
|
|
|
|
|
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
10
Year |
|
Class
R6 |
10/31/2016
|
-9.86% |
2.38% |
1.53% |
|
Russell
3000® Index (reflects no deduction for fees, expenses,
or taxes) |
|
-19.21% |
8.79% |
12.13% |
|
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction
for fees, expenses, or taxes) |
|
-13.01% |
0.02% |
1.06% |
|
Real
Return Blended Index (reflects no deduction for fees,
expenses, or taxes)2
|
|
-% |
% |
% |
|
Russell
1000® Index (reflects no deduction for fees, expenses,
or taxes) |
|
-19.13% |
9.13% |
12.37% |
|
Bloomberg
U.S. TIPS Index (reflects no deduction for fees,
expenses, or taxes) |
|
-11.85% |
2.11% |
1.12% |
| 1. |
Historical
performance shown for the Class R6 shares prior to
their inception reflects the performance of the Administrator Class
shares,
and is not adjusted to reflect Class R6 expenses. If
these expenses had been included, returns for Class R6 would be
higher. |
| 2. |
Effective
December 1, 2023, the Fund will change its benchmark to the Real Return
Blended Index which is comprised of 40% Russell
1000®
Index, 35% Bloomberg U.S. Treasury Inflation Protected Securities (TIPS)
Index and 25% Bloomberg U.S. Aggregate Bond
Index. The new benchmark better aligns with the Fund’s new
strategy. |
Fund
Management
|
|
|
|
Manager
|
Sub-Adviser1
|
Portfolio
Manager, Title/Managed Since1
|
|
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Kandarp
R. Acharya,
CFA, FRM, Portfolio Manager / 2014
Petros
N. Bocray, CFA,
FRM, Portfolio Manager / 2016
Travis
L. Keshemberg,
CFA, CIPM, FRM, Portfolio Manager
/ 2022 |
|
Allspring
Funds Management,
LLC |
Allspring
Global Investments
(UK) Limited |
Rushabh Amin,
Portfolio Manager / 2023
Matthias Scheiber,
CFA, Portfolio
Manager / 2023 |
| 1. |
The
sub-adviser and portfolio managers listed above are the sub-adviser and
portfolio managers of the master portfolio in which the
Fund invests substantially all of its assets. The Fund itself does not
have a sub-adviser or portfolio managers. |
Purchase
and Sale of Fund Shares
Class
R6 shares generally are available only to certain retirement plans, including:
401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans,
and non-qualified deferred compensation
plans. Class R6 shares also are generally available only to retirement plans
where plan level or omnibus accounts
are held on the books of the Fund. Class R6 shares also are available to funds
of funds including those managed
by Allspring
Funds Management. Class R6 shares generally are not available to retail accounts
but may be offered
through intermediaries for the accounts of their customers to certain
institutional and fee-based investors, and in
each case, only if a dealer agreement is in place with Allspring
Funds Distributor, LLC to offer Class R6 shares.
|
|
Institutions
Purchasing Fund Shares |
|
Minimum
Initial Investment
Class
R6: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment
Class
R6: None (intermediaries may require different minimum additional
investment amounts) |
Tax
Information
By
investing in a Fund through a tax-deferred retirement account, you will not be
subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts
remain in the tax-deferred account.
Distributions
taken from retirement plan accounts generally are taxable as ordinary income.
For special rules concerning
tax-deferred retirement accounts, including applications, restrictions, tax
advantages, and potential sales charge
waivers, contact your investment professional. To determine if a retirement plan
may be appropriate for you and
to obtain further information, consult your tax adviser.
Real
Return Fund
Investment
Objective
The
Fund seeks returns that exceed the rate of inflation over the
long-term.
The
Fund’s Board of Trustees can change this investment objective without a
shareholder vote.
Principal
Investment Strategies
Under
normal circumstances, we invest:
|
■ |
up
to 70% of the Fund’s total assets in debt
securities; |
|
■ |
up
to 70% of the Fund’s total assets in equity securities;
and |
|
■ |
up
to 25% of the Fund’s net assets in
commodities. |
The
Fund is a feeder fund that invests substantially all of its assets in the Real
Return Portfolio, a master portfolio with a substantially
identical investment objective and substantially similar investment strategies.
We may invest in additional master
portfolios, in other Allspring Funds, or directly in a portfolio of
securities.
We
utilize an active allocation strategy to diversify the portfolio across various
investments, assets and sectors, in an attempt
to generate a real return (a return in excess of the rate of inflation) over an
economic cycle, consistent with an appropriate
level of risk. We dynamically allocate investments to various broad asset
classes across debt, equity and commodities
based on our assessment of changing economic, global market, industry, and
issuer conditions.
We
may invest up to 70% of the Fund’s total assets in debt securities including but
not limited to, inflation-indexed debt securities,
corporate-issued debt, mortgage- and asset-backed securities, bank loans and
government obligations. These
securities may have fixed, floating or variable rates. We may invest up to 10%
of the Fund’s total assets in below investment-grade
debt securities, often called “high yield securities” or “junk bonds”. We do not
manage the portfolio to
a specific maturity or duration. We may use futures contracts to manage or
adjust duration and yield curve exposure,
as well as to manage risk or to enhance return.
We
may invest up to 70% of the Fund’s total assets in equity securities, including
but not limited to, common stock, preferred
stock and real estate investment trusts (“REITs”), of domestic and foreign
issuers of any market capitalization. We
may invest in derivatives, such as futures and swaps, that have similar economic
or financial characteristics of any security
described above.
We
may invest up to 25% of the Fund’s net assets in the common or preferred stock
of a subsidiary of the Fund that typically
invests directly or indirectly in commodity-linked derivatives such as commodity
forwards, commodity futures,
commodity swaps, swaps on commodity futures and other commodity-linked
derivative securities; it may also invest
in all other securities allowed in the Fund. These holdings may contribute more
than 25% of the Fund’s risk allocation.
The
Fund will incorporate a derivatives overlay strategy that contains three
specific risk management components: 1.) Tactical
Asset Allocation (TAA) Overlay, 2.) Tail Risk Management (TRM) and 3.) Real
Return Overlay (RRO). Together these
strategies will allow the Fund to attempt to manage short-term volatility,
mitigate risk and/or improve returns under
certain market conditions. To execute this overlay strategy, the Fund (either
directly or through its subsidiary in the
case of commodity exposure) invests in long and/or short positions in
exchange-traded futures and/or currency forward
contracts across a variety of asset classes, which include, but are not limited
to, stocks, bonds, commodities, and
currencies.
1.
The TAA Overlay seeks to improve the Fund’s risk return profile through the
tactical use of futures and/or currency forward
contracts. The TAA Overlay uses qualitative and quantitative inputs to guide
equity and fixed income exposures
in the Fund. The TAA Overlay may increase exposures to a given asset class under
certain market conditions while
decreasing exposure during others.
2. TRM is a
quantitatively driven, structured hedging component developed to help reduce
portfolio losses during severe market downturns. TRM will only seek to decrease
market exposure under certain market conditions. When a portfolio breaches a
certain value on the downside, downside protection (or hedge) may be added to
decrease market exposure using futures. This component also systematically takes
hedge profit by reducing downside protection after a severe portfolio
decline.
3.
The RRO seeks to improve the Fund’s risk return profile using derivative
(futures, forwards, swaps, and options). RRO uses
multiple components that focuses on qualitative and quantitative signals that
capture the level, breath and persistence
of inflation and will look to provide upside returns in inflationary
environments while providing downside protection
when market shocks increase correlation amongst diversified
assets.
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.
Master/Feeder
Structure
The Fund
is a feeder fund in a master/feeder structure. In this structure, a feeder fund
invests substantially all of its assets
in a master portfolio of Allspring Master Trust whose investment objective and
strategies are consistent with the feeder
fund’s investment objective and strategies. Through this structure, a feeder
fund can enhance its investment opportunities
and reduce its expenses by sharing the costs and benefits of a larger pool of
assets. Master portfolios offer
their shares to feeder funds, funds-of-funds and other master portfolios rather
than directly to the public. Certain administrative
and other fees and expenses are charged to both the feeder fund and the master
portfolio. The services provided
and fees charged to a feeder fund are in addition to and not duplicative of the
services provided and fees charged
to the master portfolio.
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 the
Fund and indirectly, the principal risk factors for the master portfolio(s)
in which the Fund invests, 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.
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.
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
Currency Contracts Risk.
A Fund that enters into forwards or other foreign currency contracts, which are
a type
of derivative, is subject to the risk that the portfolio manager may be
incorrect in his or her judgment of future exchange
rate changes. The Fund’s gains from positions in foreign currency contracts may
accelerate and/or lead to recharacterization
of the Fund’s income or gains and its distributions to shareholders. The Fund’s
losses from such positions
may also lead to recharacterization of the Fund’s income and its distributions
to shareholders and may cause a
return of capital to Fund shareholders.
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.
Futures Contracts
Risk.
A Fund that uses futures contracts, which are a type of derivative, is subject
to the risk of loss caused
by unanticipated market movements. In addition, there may at times be an
imperfect correlation between the movement
in the prices of futures contracts and the value of their underlying instruments
or indexes, and there may at times
not be a liquid secondary market for certain futures contracts.
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.
Inflation-Indexed
Debt Securities Risk.
The principal value of an inflation-indexed debt security is periodically
adjusted according
to the rate of inflation and, as a result, a Fund’s yield and return will be
affected by changes in the rate of inflation.
If the reference inflation index rate falls, the principal value of an
inflation-indexed debt security will decline, which
will cause the value of the Fund’s shares and the amount of interest payable on
such security to be reduced.
Loan
Risk.
Loans may be unrated, less liquid and more difficult to value than traditional
debt securities. Loans may be made
to finance highly leveraged corporate operations or acquisitions. The highly
leveraged capital structure of the borrowers
in such transactions may make such loans especially vulnerable to adverse
changes in financial, economic or
market conditions. Loans generally are subject to restrictions on transfer, and
only limited opportunities may exist to sell
such loans in secondary markets. As a result, a Fund may be unable to sell loans
at a desired time or price. If the Fund
acquires only an assignment or a participation in a loan made by a third party,
the Fund may not be able to control
amendments, waivers or the exercise of any remedies that a lender would have
under a direct loan and may assume
liability as a lender.
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.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities are subject to risk of default on
the
underlying mortgages or assets, particularly during periods of economic
downturn. Defaults on the underlying mortgages
or assets may cause such securities to decline in value and become less liquid.
Rising interest rates tend to extend
the duration of these securities, making them more sensitive to changes in
interest rates than instruments with fixed
payment schedules. As a result, in a period of rising interest rates, these
securities may exhibit additional volatility.
When interest rates decline or are low, borrowers may pay off their mortgage or
other debts sooner than expected,
which can reduce the returns of a Fund. Funds that may enter into mortgage
dollar roll transactions are subject
to the risk that the market value of the securities that are required to be
repurchased in the future may decline below
the agreed upon repurchase price. They also involve the risk that the party to
whom the securities are sold may become
insolvent, limiting a Fund’s ability to repurchase securities at the agreed upon
price.
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 underlying derivatives investments of the subsidiary. 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.
Swaps
Risk.
Depending on their structure, swap agreements and options to enter into swap
agreements (“swaptions”), both
of which are types of derivatives, may increase or decrease a Fund’s exposure to
long- or short-term interest rates, foreign
currency values, mortgage-backed securities, corporate borrowing rates, or
credit events or other reference points
such as security prices or inflation rates.
U.S.
Government Obligations Risk.
U.S. Government obligations may be adversely impacted by changes in interest
rates,
and securities issued or guaranteed by U.S. Government agencies or
government-sponsored entities may not be backed
by the full faith and credit of the U.S. Government. If a government-sponsored
entity is unable to meet its obligations
or its creditworthiness declines, the performance of a Fund that holds
securities issued or guaranteed by the
entity will be adversely impacted. U.S. Government obligations may be adversely
affected by a default by, or decline
in the credit quality, of the U.S. Government.
Portfolio
Holdings Information
A
description of the Allspring
Funds’ policies and procedures with respect to disclosure of the Fund’s portfolio
holdings is
available in the Fund’s
Statement of Additional Information.
Pricing Fund
Shares
A
Fund’s 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.
If
a Fund invests substantially all of its investable assets in one or more master
portfolios, the value of the Fund’s shares is
based on the valuation of the Fund’s interests in such master portfolios. The
following describes the pricing policies of
the master portfolios, as well as the policies that a Fund will use with respect
to any portion of the Fund’s assets invested
directly in securities. References in this section to a Fund should also be
considered references to the master portfolios.
A 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 at the time as of
which a Fund calculates the value of its holdings. 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
but before the time as of which a Fund calculates the value of its
holdings 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. 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 valuations that are higher or lower than valuations
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 Fund
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 Fund.
Allspring
Funds Management’s investment professionals review and analyze the Fund’s
performance, including relative to
peer funds, and monitor the Fund’s
compliance with its
investment objectives and strategies. Allspring
Funds Management
is responsible for reporting to the Board on investment performance and other
matters affecting the Fund.
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 Fund,
which include,
among others, providing such services in connection with the Fund’s
operations; developing and implementing
procedures for monitoring compliance with regulatory requirements and compliance
with the Fund’s
investment
objectives, policies and restrictions; and providing any
other Fund-level
administrative services reasonably necessary
for the operation of the Fund,
other than those services that are provided by the Fund’s transfer
and dividend disbursing
agent, custodian and fund accountant.
To
assist Allspring
Funds Management in implementing the investment objectives and strategies of the
Fund,
Allspring
Funds
Management may contract with one or more sub-advisers to provide day-to-day
portfolio management services to
the Fund.
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 Fund.
A
discussion regarding the basis for the Board’s approval of
the Management
Agreement and any applicable sub-advisory
agreements for the Fund is
available in the Fund’s annual
report for the period ended May
31st.
For the 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 |
|
Real
Return Fund1
|
0.31% |
| 1. |
Reflects
the fees charged by Allspring Funds Management for providing investment
advisory services to the master portfolio in which
the Fund invests substantially all of its
assets. |
As
long as a Fund continues to invest, as it does today, substantially all of its
assets in a single master portfolio, the Fund
pays Allspring Funds Management an investment management fee only for Fund-level
administrative services. Allspring
Funds Management receives a fee for advisory services from the master portfolio
in which the Fund invests. If a
Fund were to change its investment structure so that it begins to invest
substantially all of its assets in two or more master
portfolios, Allspring Funds Management would be entitled to receive an increased
investment management fee covering
both asset allocation services and Fund-level administrative
services.
The
Sub-Advisers and Portfolio Managers
The
following sub-advisers
and Portfolio
Managers provide day-to-day portfolio management services to the Fund. These
services include making purchases and sales of securities and other investment
assets for the Fund,
selecting
broker-dealers, negotiating brokerage commission rates and maintaining portfolio
transaction records. With respect
to the Real
Return Fund, the Allspring Global Investments’ portfolio managers named below
are the members of
the Multi-Asset Solutions team who are primarily responsible for the oversight
of the Fund. These portfolio managers establish
and monitor the strategic and tactical allocations for the Fund and focus on
cash flow management, portfolio construction,
investment strategy selection, and risk management. The sub-advisers are
compensated for their
services
by Allspring
Funds Management from the fees Allspring
Funds Management receives for its services as Manager
to the Fund.
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 Fund.
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.
|
|
|
Kandarp
R. Acharya, CFA, FRM
Real
Return Portfolio |
Mr.
Acharya joined Allspring Investments or one of its predecessor firms in
2013,
where he currently serves as a Senior Portfolio Manager for the
Multi-Asset
Solutions team. |
|
Petros
N. Bocray, CFA, FRM
Real
Return Portfolio |
Mr.
Bocray joined Allspring Investments or one of its predecessor firms in
2006, where
he currently serves as a Portfolio Manager for the Multi-Asset Solutions
team. |
|
Travis
L. Keshemberg, CFA, CIPM,
FRM
Real
Return Portfolio |
Mr.
Keshemberg joined Allspring Investments in 2016, where he currently serves
as
a Portfolio Manager for the Multi-Asset Solutions team. Prior to joining
Allspring
Investments, Mr. Keshemberg was a Director of Research at Allspring
Funds
Management, LLC. |
Allspring
Global Investments (UK) Limited
(“Allspring (UK)”), is a registered investment adviser located at Bow Bells
House,
6th Floor, 1 Bread Street, London, EC4M 9BE. Allspring UK, an affiliate of
Allspring Funds Management and wholly
owned subsidiary of Allspring Global Investments Holdings, LLC, provides
investment advisory services to banking
or thrift institutions, investment companies, pension and profit sharing plans,
corporations, and state or municipal
government entities.
|
|
|
Rushabh Amin
Real
Return Portfolio |
Mr.
Amin joined Allspring (UK) or one of its predecessor firms in 2019, where
he currently
serves as a Portfolio Manager for the Multi-Asset Solutions team. Prior
to
joining Allspring (UK), Mr. Amin was an Analyst in the
Multi-Asset and Marco team
at Aviva Investors. |
|
Matthias
Scheiber, CFA
Real
Return Portfolio |
Mr.
Schelber joined Allspring (UK) or one of its predecessor firms in 2018,
where he
currently serves as Head of the Multi-Asset Solutions
team. |
Multi-Manager
Arrangement
The Fund
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 Fund,
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 Fund is
not required to disclose the individual fees that Allspring
Funds Management pays to a Multi-Manager
Account
Information
Share
Class Eligibility
Class
R6 shares are generally available for employer sponsored retirement and benefit
plans and through intermediaries
for the accounts of their customers to certain institutional and fee-based
investors, and in each case, only
if a dealer agreement is in place with Allspring
Funds Distributor, LLC to offer Class R6 shares. The following investors
may purchase Class R6 shares:
|
■ |
Employer
sponsored retirement plans held in plan level or omnibus accounts,
including but not limited to: 401(k) plans,
457 plans, profit sharing and money purchase pension plans, defined
benefit plans, target benefit plans and non-qualified
deferred compensation plans; |
|
■ |
Employee
benefit plan programs; |
|
■ |
Broker-dealer
managed account or wrap programs that charge an asset-based fee where
omnibus accounts are held on
the books of the Fund; |
|
■ |
Registered
investment adviser mutual fund wrap programs or other accounts that charge
a fee for advisory, investment,
consulting or similar services where omnibus accounts are held on the
books of the Fund; |
|
■ |
Private
bank and trust company managed accounts or wrap programs that charge an
asset-based fee; |
|
■ |
Funds
of funds, including those managed by Allspring
Funds Management; |
|
■ |
Institutional
investors purchasing shares through an intermediary where omnibus accounts
are held on the books of the
Fund including trust departments, insurance companies, foundations, local,
city, and state governmental institutions,
private banks, endowments, non-profits, and charitable
organizations; |
|
■ |
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. |
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.
|
|
|
|
|
Class
R6 |
|
Initial
Sales Charge |
|
None |
|
Contingent
Deferred Sales Charge (“CDSC”) |
|
None |
|
Ongoing
Distribution (“12b-1”) Fees |
|
None |
Compensation
to Financial Professionals and Intermediaries
No
compensation is paid to intermediaries from Fund assets on sales of Class R6
shares or for related services. Class R6
shares do not carry sales commissions or pay Rule 12b-1 fees, or make payments
to intermediaries to assist in, or in connection
with, the sale of Fund shares. Neither the manager, the distributor nor their
affiliates make any type of administrative
or service payments to intermediaries in connection with investments in Class R6
shares.
Buying
and Selling Fund Shares
Eligible
retirement plans may make Class
R6 shares available to plan participants by contacting certain
intermediaries that
have dealer agreements with the distributor. These entities may impose
transaction charges. Plan participants may purchase
shares through their retirement plan’s administrator or record-keeper by
following the process outlined in the terms
of their plan.
Redemption
requests received by a retirement plan’s administrator or record-keeper from the
plan’s participants will be processed
according to the terms of the plan’s account with its intermediary. Plan
participants should follow the process
for selling fund shares outlined in the terms of their plan.
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; |
|
■ |
For
purchase requests, payment of the full amount of the purchase request;
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. |
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. 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.
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 intermediary.
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
Fund declares distributions of any net investment income quarterly,
and pays such distributions quarterly. The Fund
generally makes distributions of any realized net capital gains annually. Please
note, distributions have the effect of
reducing the NAV per share by the amount distributed.
Quarterly
distributions for the Fund, if any, are generally calculated by using a
distribution rate which is determined in part
by the yield to maturity of the inflation-indexed securities within the
portfolio plus an applied estimate of inflation, less
Fund expenses. The net investment income received from securities in which the
Fund invests fluctuates on a monthly
basis in connection with changes in the monthly inflation rate as determined by
the Consumer Price Index (“CPI”),
which at times can be negative. Due to large fluctuations in the CPI which may
occur on a month-to-month basis,
the Fund may use an estimate of inflation to reduce the volatility of these
distributions and to reduce the risk of making
a distribution to Fund shareholders that is sourced in part of paid-in capital.
This estimate is adjusted periodically
as the inflation environment changes and based on the actual income earned by
the Fund.
We
understand that certain inflation-protected bond funds in the industry may
utilize a similar approach to the distribution
of net investment income while others may distribute income based on actual
month-to-month changes in the
CPI, which would result in a greater number of periods where a distribution is
not made to shareholders.
Other
Information
Taxes
By
investing in the Fund through a tax-deferred retirement account, you will not be
subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts
remain in the tax-deferred account.
Distributions taken from retirement plan accounts generally are taxable as
ordinary income. For special rules concerning
tax-deferred retirement accounts, including applications, restrictions, tax
advantages, and potential sales charge
waivers, contact your investment professional. To determine if a retirement plan
may be appropriate for you and
to obtain further information, consult your tax advisor. Please see the
Statement of Additional Information for additional
federal income tax information.
Financial
Highlights
The
following table is 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 the
Fund (assuming reinvestment of all distributions). The information
in the following table has
been derived from the Fund’s
financial statement
which has
been audited by KPMG
LLP, the Fund’s
independent registered public accounting firm, whose report, along
with the
Fund’s financial statement,
is also included in the
Fund’s annual report, a copy of which is available upon request.
Real
Return Fund
For
a share outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended May 31 |
|
Class
R6 |
|
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 rate2
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
| * |
Ratios
include net expenses allocated from the affiliated Master Portfolio which
were as follows: |
|
|
|
|
|
|
|
Year
ended May 31, 2023 |
0.39% |
|
|
|
Year
ended May 31, 2022 |
0.39% |
|
|
|
Year
ended May 31, 2021 |
0.39% |
|
|
|
Year
ended May 31, 2020 |
0.39% |
|
|
|
Year
ended May 31, 2019 |
0.39% |
| 1 |
Calculated
based upon average shares outstanding |
| 2 |
Portfolio
turnover rate is calculated by multiplying the affiliated Master
Portfolio’s percentage of the Fund’s total investment in securities at the
end of the period
by the affiliated Master Portfolio’s portfolio turnover
rate. |
|
|
|
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. |
PRO4690
12-23
ICA
Reg. No. 811-09253 |
