2022-04-13DynamicTargetFunds-Ac
Target
Date Retirement Funds
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|
Fund |
Class
R4 |
|
Allspring
Dynamic Target Today Fund |
WDYYX |
|
Allspring
Dynamic Target 2015 Fund |
WDTYX |
|
Allspring
Dynamic Target 2020 Fund |
WDTGX |
|
Allspring
Dynamic Target 2025 Fund |
WDTLX |
|
Allspring
Dynamic Target 2030 Fund |
WDTQX |
|
Allspring
Dynamic Target 2035 Fund |
WDTVX |
|
Allspring
Dynamic Target 2040 Fund |
WTDEX |
|
Allspring
Dynamic Target 2045 Fund |
WTDJX |
|
Allspring
Dynamic Target 2050 Fund |
WTDOX |
|
Allspring
Dynamic Target 2055 Fund |
WTDTX |
|
Allspring
Dynamic Target 2060 Fund |
WTDZX |
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.
Dynamic
Target Today Fund Summary
Investment
Objective
The Fund
seeks total return over time, consistent with its strategic target
allocation.
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 |
|
|
|
|
|
Management
Fees |
0.10% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
1.80% |
|
Acquired
Fund Fees and Expenses |
0.10% |
|
Total
Annual Fund Operating Expenses |
2.00% |
|
Fee
Waivers |
(1.71)% |
|
Total
Annual Fund Operating Expenses After Fee Waivers2
|
% |
| 1. |
Expenses
have been adjusted as necessary from amounts incurred during the Fund’s
most recent fiscal year to reflect current fees and
expenses.
|
| 2. |
The
Manager has contractually committed through June
30, 2024, to
waive fees and/or reimburse expenses to the extent necessary to
cap Total Annual Fund Operating Expenses After Fee Waivers at 0.29%
for Class
R4. 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 |
$30 |
|
3
Years |
$283 |
|
5
Years |
$749 |
|
10
Years |
$2,040 |
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 101%
of the
average value of its portfolio.
| 2 |
|
Target
Date Retirement Funds |
Principal
Investment Strategies
The equity
Underlying Funds are each intended to provide exposure to a specific market
segment. Those segments include
U.S. large- and small-capitalization companies, international (non-U.S.)
developed and emerging markets, and real
estate. The U.S. large- and small-capitalization companies, international
developed markets and emerging markets allocations
each seek to add value above their respective broad market index, by employing a
systematic, rules based methodology
designed to build a portfolio of stocks that provides exposure to factors (or
characteristics) commonly tied to a
stock’s potential for enhanced risk-adjusted returns relative to the market.
Those factors include, but are not limited to,
value, quality, momentum, size, and low volatility. The real estate allocation
invests in real estate investment trusts
(REITs) and is managed to replicate the performance of the Dow Jones U.S. Select
REIT index, a float-adjusted market-capitalization
weighted index designed to serve as a proxy for direct real estate
investment.
The fixed
income Underlying Funds provide diversified exposure across a wide range of
market sectors, including U.S. Government
obligations (including Treasury inflation-protected securities, or TIPS),
investment grade corporate bonds, below
investment grade bonds (commonly known as “high yield bonds” or “junk bonds”),
other U.S. bond sectors (including
mortgage- and asset-backed securities), and emerging markets foreign issues. The
inflation-protected Treasury
and intermediate-term government allocations will be managed to replicate the
performance of the Bloomberg
U.S. Treasury Inflation-Linked 1-10 Year Bond Index and the Bloomberg U.S.
Government Intermediate Bond Index,
respectively, each a traditional market-capitalization weighted index designed
to provide diversified exposure to their
respective allocation.
The
investment grade corporate bond allocation will be managed to replicate the
performance of the Bloomberg U.S. Corporate
Bond Index. The below investment grade bond allocation will be managed to
replicate the performance of the
Bloomberg U.S. High Yield 2% Issuer Capped Bond Index. The U.S. aggregate bond
ex-corporate allocation, which includes
mortgage- and asset-backed securities, will be managed to replicate the
performance of the Bloomberg U.S. Aggregate
ex- Corporate Index, a traditional market-capitalization weighted index designed
to provide diversified exposure to
the allocation. The emerging markets bond allocation will be managed to
replicate the performance of the JP Morgan
EMBI Global Diversified Index, an index that deviates from a traditional market
capitalization weighting to provide
more robust diversification across its constituent
countries.
The “Today”
designation in the Fund’s name is meant to indicate that the Fund is primarily
designed for investors either in
retirement and/or currently withdrawing funds from their investments. The Fund
does not decrease its equity holdings in
an attempt to become increasingly conservative over time, but rather maintains a
strategic target allocation to equity
and fixed income securities (including money market instruments) in the weights
of 40% and 60%, respectively.
The Fund
will incorporate a derivatives overlay strategy that contains three specific
risk management components: 1.) Tactical
Asset Allocation (TAA) Overlay, 2.) Volatility Management Overlay (VMO), and 3.)
Tail Risk Management (TRM). 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
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, 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. The VMO
seeks to keep the Fund’s short-term volatility in-line with its strategic
long-term target. The VMO uses quantitative
inputs and strives to decrease the portfolio’s effective equity exposure when
projected equity market volatility
is higher than average, and increasing the portfolio’s effective equity exposure
when projected equity market volatility
is lower than average. The VMO may increase exposures to a given asset class
under certain market conditions
while decreasing exposure during others.
3. 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.
| Target
Date Retirement Funds
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|
3 |
At any
point, as a result of the utilization of the futures overlay and changes
otherwise implemented by the portfolio managers,
there may be significant divergences between the effective asset allocation of
the Fund and its strategic target
allocation.
At their
discretion, the Fund’s portfolio managers may make changes to the Fund’s asset
allocation.
Portfolio
Asset Allocation
The
following table provides the Fund’s target allocations to various underlying
portfolios as of July 1, 2022.
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Allspring
Factor Enhanced U.S. Large Cap Equity
Portfolio |
|
Allspring
Factor Enhanced International Equity
Portfolio |
|
Allspring
Factor Enhanced U.S. Small Cap Equity
Portfolio |
|
Allspring
U.S. REIT Portfolio |
|
Allspring
Factor Enhanced Emerging Markets Equity
Portfolio |
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|
|
|
Allspring
Bloomberg US Aggregate ex-Corporate
Portfolio |
|
Allspring
Investment Grade Corporate Bond
Portfolio |
|
Allspring
Strategic Retirement Bond Portfolio (includes both TIPs & Intermediate
Government
Bond allocations) |
|
Allspring
Emerging Markets Bond
Portfolio |
|
Allspring
High Yield Corporate Bond
Portfolio |
|
| 1. |
Target
allocations may total more or less than 100% due to
rounding. |
| 4 |
|
Target
Date Retirement Funds |
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.
Target
Date Fund Risk. A Target
Date Fund cannot provide assurance that an investor’s investment in the Fund
will provide
income at, and through the years following, the target year in the Fund’s name
in amounts adequate to meet the
investor’s financial goals. In addition, the Fund is subject to the risk that
its strategy will not eliminate investment volatility
that could reduce the amount of funds available for an investor who begins to
withdraw funds or expects to retire
close to or in the Fund’s target year.
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, 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.
Underlying
Funds Risk. The risks
associated with a Fund include the risks related to each Underlying Fund in
which the Fund
invests.
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
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”) 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.
| Target
Date Retirement Funds
|
|
5 |
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.
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 and regional 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.
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.
| 6 |
|
Target
Date Retirement Funds |
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 is no guarantee of future results. Current
month-end performance is available on the Fund’s
website at allspringglobal.com.
|
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|
Calendar
Year Total Returns for Class R4 as of 12/31 each year
|
|
|
Highest
Quarter:
June
30,
2020 |
|
Lowest
Quarter:
March
31,
2020 |
|
Year-to-date
total return
as of March
31,
2022 is
-7.02% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2021 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
Since
inception |
|
Class
R4 |
11/30/2015
|
8.28% |
8.25% |
7.36% |
|
S&P
Target Date Retirement Income Index (reflects no
deduction for fees, expenses, or taxes)1
|
|
% |
% |
% |
|
Dynamic
Target Today Blended Index (reflects no deduction
for fees, expenses, or taxes)2
|
|
% |
- |
- |
| 1. |
The
S&P Target Date Index is designed as a benchmark for multi-asset class
portfolios with risk profiles that become more conservative
over time, corresponding to the target retirement date. This index is
representative of the investment opportunity available
to investors for the target date horizon, with asset class exposures
driven by a survey of available target date funds for that horizon.
You cannot invest directly in an
index. |
| 2. |
Source:
Allspring Funds Management, LLC. The Dynamic Target Blended Index is
designed as a benchmark for multi-asset class portfolios
with risk profiles that become more conservative over time, corresponding
to the target retirement date. The index weightings
among the major asset classes are adjusted annually. The inception date of
the index is September 21, 2018. You cannot
invest directly in an
index. |
| Target
Date Retirement Funds
|
|
7 |
Fund
Management
|
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
|
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Kandarp
R. Acharya, CFA, FRM,
Portfolio Manager / 2015
Petros
N. Bocray, CFA, FRM,
Portfolio Manager / 2016
Travis
L. Keshemberg, CFA, CIPM, FRM,
Portfolio Manager
/ 2022 |
Purchase
and Sale of Fund Shares
Class
R4 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
R4 shares also are generally available only to retirement plans where
plan level or omnibus accounts
are held on the books of the Fund. Class
R4 shares generally are not available to retail
accounts.
|
|
Institutions
Purchasing Fund Shares |
|
Minimum
Initial Investment
Class
R4: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment
Class
R4: 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.
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.
| 8 |
|
Target
Date Retirement Funds |
Dynamic
Target 2015 Fund Summary
Investment
Objective
The Fund
seeks total return over time, consistent with its strategic target
allocation.
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 |
|
|
|
|
|
Management
Fees |
0.10% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
1.93% |
|
Acquired
Fund Fees and Expenses |
0.10% |
|
Total
Annual Fund Operating Expenses |
2.13% |
|
Fee
Waivers |
(1.84)% |
|
Total
Annual Fund Operating Expenses After Fee Waivers2
|
% |
| 1. |
Expenses
have been adjusted as necessary from amounts incurred during the Fund’s
most recent fiscal year to reflect current fees and
expenses.
|
| 2. |
The
Manager has contractually committed through June
30, 2024, to
waive fees and/or reimburse expenses to the extent necessary to
cap Total Annual Fund Operating Expenses After Fee Waivers at 0.29%
for Class
R4. 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 |
$30 |
|
3
Years |
$298 |
|
5
Years |
$792 |
|
10
Years |
$2,158 |
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 97%
of the
average value of its portfolio.
| Target
Date Retirement Funds
|
|
9 |
Principal
Investment Strategies
The equity
Underlying Funds are each intended to provide exposure to a specific market
segment. Those segments include
U.S. large- and small-capitalization companies, international (non-U.S.)
developed and emerging markets, and real
estate. The U.S. large- and small-capitalization companies, international
developed markets and emerging markets allocations
each seek to add value above their respective broad market index, by employing a
systematic, rules based methodology
designed to build a portfolio of stocks that provides exposure to factors (or
characteristics) commonly tied to a
stock’s potential for enhanced risk-adjusted returns relative to the market.
Those factors include, but are not limited to,
value, quality, momentum, size, and low volatility. The real estate allocation
invests in real estate investment trusts
(REITs) and is managed to replicate the performance of the Dow Jones U.S. Select
REIT index, a float-adjusted market-capitalization
weighted index designed to serve as a proxy for direct real estate
investment.
The fixed
income Underlying Funds provide diversified exposure across a wide range of
market sectors, including U.S. Government
obligations (including Treasury inflation-protected securities, or TIPS),
investment grade corporate bonds, below
investment grade bonds (commonly known as “high yield bonds” or “junk bonds”),
other U.S. bond sectors (including
mortgage- and asset-backed securities), and emerging markets foreign issues. The
inflation-protected Treasury
and intermediate-term government allocations will be managed to replicate the
performance of the Bloomberg
U.S. Treasury Inflation-Linked 1-10 Year Bond Index and the Bloomberg U.S.
Government Intermediate Bond Index,
respectively, each a traditional market-capitalization weighted index designed
to provide diversified exposure to their
respective allocation.
The
investment grade corporate bond allocation will be managed to replicate the
performance of the Bloomberg U.S. Corporate
Bond Index. The below investment grade bond allocation will be managed to
replicate the performance of the
Bloomberg U.S. High Yield 2% Issuer Capped Bond Index. The U.S. aggregate bond
ex-corporate allocation, which includes
mortgage- and asset-backed securities, will be managed to replicate the
performance of the Bloomberg U.S. Aggregate
ex- Corporate Index, a traditional market-capitalization weighted index designed
to provide diversified exposure to
the allocation. The emerging markets bond allocation will be managed to
replicate the performance of the JP Morgan
EMBI Global Diversified Index, an index that deviates from a traditional market
capitalization weighting to provide
more robust diversification across its constituent
countries.
The Fund is
primarily designed for investors expecting to retire and/or begin withdrawing
funds around its target date of 2015. As
the Fund’s time horizon to its target date shortens, it generally replaces some
of its equity holdings with fixed
income holdings in an attempt to reduce market risk and thereby become more
conservative in its asset allocation.
This reallocation occurs according to a predetermined “glide path,” which was
developed based on long-term
capital market return expectations, actuarial assumptions about life expectancy
and retirement, and assumptions
about investors’ risk tolerance. The reallocation continues as the Fund’s target
year approaches and for the first
ten years afterward. The Fund’s target year of 2015 serves as a guide to the
risk profile of the Fund, and your decision to
invest in a Allspring Dynamic Target Date Fund with a particular target year and
risk profile depends on your individual
risk tolerance, among other factors.
The Fund
will not reach its lowest strategic target allocation to equities until ten
years past the Fund’s target year. During the
ten-year period after the Fund’s target year, the Fund’s asset allocation will
increasingly resemble that of the Allspring
Dynamic Target Today Fund and at the end of the ten-year period, we will likely
combine it with the Allspring Dynamic
Target Today Fund.
The Fund
will incorporate a derivatives overlay strategy that contains three specific
risk management components: 1.) Tactical
Asset Allocation (TAA) Overlay, 2.) Volatility Management Overlay (VMO), and 3.)
Tail Risk Management (TRM). 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
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, 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.
| 10 |
|
Target
Date Retirement Funds |
2. The VMO
seeks to keep the Fund’s short-term volatility in-line with its strategic
long-term target. The VMO uses quantitative
inputs and strives to decrease the portfolio’s effective equity exposure when
projected equity market volatility
is higher than average, and increasing the portfolio’s effective equity exposure
when projected equity market volatility
is lower than average. The VMO may increase exposures to a given asset class
under certain market conditions
while decreasing exposure during others.
3. 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.
At any
point, as a result of the utilization of the futures overlay and changes
otherwise implemented by the portfolio managers,
there may be significant divergences between the effective asset allocation of
the Fund and its strategic target
allocation.
The glide
path (as of the date of this prospectus) is detailed in the chart below. The
glide path visual depicts the strategic
equity allocation of the Allspring Dynamic Target Date Funds over time. At their
discretion, the Fund’s portfolio managers
may make changes to the Fund’s glide path and asset
allocation.
| Target
Date Retirement Funds
|
|
11 |
Portfolio
Asset Allocation
The
following table provides the Fund’s target allocations to various underlying
portfolios as of July 1, 2022.
|
|
|
|
|
|
|
|
Allspring
Factor Enhanced U.S. Large Cap Equity
Portfolio |
|
Allspring
Factor Enhanced International Equity
Portfolio |
|
Allspring
Factor Enhanced U.S. Small Cap Equity
Portfolio |
|
Allspring
U.S. REIT Portfolio |
|
Allspring
Factor Enhanced Emerging Markets Equity
Portfolio |
|
|
|
|
Allspring
Bloomberg US Aggregate ex-Corporate
Portfolio |
|
Allspring
Investment Grade Corporate Bond
Portfolio |
|
Allspring
Strategic Retirement Bond Portfolio (includes both TIPs & Intermediate
Government
Bond allocations) |
|
Allspring
Emerging Markets Bond
Portfolio |
|
Allspring
High Yield Corporate Bond
Portfolio |
|
| 1. |
Target
allocations may total more or less than 100% due to
rounding. |
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.
Target
Date Fund Risk. A Target
Date Fund cannot provide assurance that an investor’s investment in the Fund
will provide
income at, and through the years following, the target year in the Fund’s name
in amounts adequate to meet the
investor’s financial goals. In addition, the Fund is subject to the risk that
its strategy will not eliminate investment volatility
that could reduce the amount of funds available for an investor who begins to
withdraw funds or expects to retire
close to or in the Fund’s target year.
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, 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.
Underlying
Funds Risk. The risks
associated with a Fund include the risks related to each Underlying Fund in
which the Fund
invests.
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.
| 12 |
|
Target
Date Retirement Funds |
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
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”) 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.
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.
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 and regional 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.
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.
| Target
Date Retirement Funds
|
|
13 |
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 is no guarantee of future results. Current
month-end performance is available on the Fund’s
website at allspringglobal.com.
|
|
|
|
Calendar
Year Total Returns for Class R4 as of 12/31 each year
|
|
|
Highest
Quarter:
June
30,
2020 |
|
Lowest
Quarter:
March
31,
2020 |
|
Year-to-date
total return
as of March
31,
2022 is
-7.41% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2021 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
Since
inception |
|
Class
R4 |
11/30/2015
|
10.12% |
9.19% |
8.17% |
|
S&P
Target Date 2015 Index (reflects no deduction for
fees, expenses, or taxes)1
|
|
% |
% |
% |
|
Dynamic
Target 2015 Blended Index (reflects no deduction
for fees, expenses, or taxes)2
|
|
% |
- |
- |
| 1. |
The
S&P Target Date Index is designed as a benchmark for multi-asset class
portfolios with risk profiles that become more conservative
over time, corresponding to the target retirement date. This index is
representative of the investment opportunity available
to investors for the target date horizon, with asset class exposures
driven by a survey of available target date funds for that horizon.
You cannot invest directly in an
index. |
| 2. |
Source:
Allspring Funds Management, LLC. The Dynamic Target Blended Index is
designed as a benchmark for multi-asset class portfolios
with risk profiles that become more conservative over time, corresponding
to the target retirement date. The index weightings
among the major asset classes are adjusted annually. The inception date of
the index is September 21, 2018. You cannot
invest directly in an
index. |
| 14 |
|
Target
Date Retirement Funds |
Fund
Management
|
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
|
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Kandarp
R. Acharya, CFA, FRM,
Portfolio Manager / 2015
Petros
N. Bocray, CFA, FRM,
Portfolio Manager / 2016
Travis
L. Keshemberg, CFA, CIPM, FRM,
Portfolio Manager
/ 2022 |
Purchase
and Sale of Fund Shares
Class
R4 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
R4 shares also are generally available only to retirement plans where
plan level or omnibus accounts
are held on the books of the Fund. Class
R4 shares generally are not available to retail
accounts.
|
|
Institutions
Purchasing Fund Shares |
|
Minimum
Initial Investment
Class
R4: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment
Class
R4: 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.
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.
| Target
Date Retirement Funds
|
|
15 |
Dynamic
Target 2020 Fund Summary
Investment
Objective
The Fund
seeks total return over time, consistent with its strategic target
allocation.
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 |
|
|
|
|
|
Management
Fees |
0.10% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
1.61% |
|
Acquired
Fund Fees and Expenses |
0.10% |
|
Total
Annual Fund Operating Expenses |
1.81% |
|
Fee
Waivers |
(1.52)% |
|
Total
Annual Fund Operating Expenses After Fee Waivers2
|
% |
| 1. |
Expenses
have been adjusted as necessary from amounts incurred during the Fund’s
most recent fiscal year to reflect current fees and
expenses.
|
| 2. |
The
Manager has contractually committed through June
30, 2024, to
waive fees and/or reimburse expenses to the extent necessary to
cap Total Annual Fund Operating Expenses After Fee Waivers at 0.29%
for Class
R4. 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 |
$30 |
|
3
Years |
$262 |
|
5
Years |
$685 |
|
10
Years |
$1,866 |
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 92%
of the
average value of its portfolio.
| 16 |
|
Target
Date Retirement Funds |
Principal
Investment Strategies
The equity
Underlying Funds are each intended to provide exposure to a specific market
segment. Those segments include
U.S. large- and small-capitalization companies, international (non-U.S.)
developed and emerging markets, and real
estate. The U.S. large- and small-capitalization companies, international
developed markets and emerging markets allocations
each seek to add value above their respective broad market index, by employing a
systematic, rules based methodology
designed to build a portfolio of stocks that provides exposure to factors (or
characteristics) commonly tied to a
stock’s potential for enhanced risk-adjusted returns relative to the market.
Those factors include, but are not limited to,
value, quality, momentum, size, and low volatility. The real estate allocation
invests in real estate investment trusts
(REITs) and is managed to replicate the performance of the Dow Jones U.S. Select
REIT index, a float-adjusted market-capitalization
weighted index designed to serve as a proxy for direct real estate
investment.
The fixed
income Underlying Funds provide diversified exposure across a wide range of
market sectors, including U.S. Government
obligations (including Treasury inflation-protected securities, or TIPS),
investment grade corporate bonds, below
investment grade bonds (commonly known as “high yield bonds” or “junk bonds”),
other U.S. bond sectors (including
mortgage- and asset-backed securities), and emerging markets foreign issues. The
inflation-protected Treasury
and intermediate-term government allocations will be managed to replicate the
performance of the Bloomberg
U.S. Treasury Inflation-Linked 1-10 Year Bond Index and the Bloomberg U.S.
Government Intermediate Bond Index,
respectively, each a traditional market-capitalization weighted index designed
to provide diversified exposure to their
respective allocation.
The
investment grade corporate bond allocation will be managed to replicate the
performance of the Bloomberg U.S. Corporate
Bond Index. The below investment grade bond allocation will be managed to
replicate the performance of the
Bloomberg U.S. High Yield 2% Issuer Capped Bond Index. The U.S. aggregate bond
ex-corporate allocation, which includes
mortgage- and asset-backed securities, will be managed to replicate the
performance of the Bloomberg U.S. Aggregate
ex- Corporate Index, a traditional market-capitalization weighted index designed
to provide diversified exposure to
the allocation. The emerging markets bond allocation will be managed to
replicate the performance of the JP Morgan
EMBI Global Diversified Index, an index that deviates from a traditional market
capitalization weighting to provide
more robust diversification across its constituent
countries.
The Fund is
primarily designed for investors expecting to retire and/or begin withdrawing
funds around its target date of 2020. As
the Fund’s time horizon to its target date shortens, it generally replaces some
of its equity holdings with fixed
income holdings in an attempt to reduce market risk and thereby become more
conservative in its asset allocation.
This reallocation occurs according to a predetermined “glide path,” which was
developed based on long-term
capital market return expectations, actuarial assumptions about life expectancy
and retirement, and assumptions
about investors’ risk tolerance. The reallocation continues as the Fund’s target
year approaches and for the first
ten years afterward. The Fund’s target year of 2020 serves as a guide to the
risk profile of the Fund, and your decision to
invest in a Allspring Dynamic Target Date Fund with a particular target year and
risk profile depends on your individual
risk tolerance, among other factors.
The Fund
will not reach its lowest strategic target allocation to equities until ten
years past the Fund’s target year. During the
ten-year period after the Fund’s target year, the Fund’s asset allocation will
increasingly resemble that of the Allspring
Dynamic Target Today Fund and at the end of the ten-year period, we will likely
combine it with the Allspring Dynamic
Target Today Fund.
The Fund
will incorporate a derivatives overlay strategy that contains three specific
risk management components: 1.) Tactical
Asset Allocation (TAA) Overlay, 2.) Volatility Management Overlay (VMO), and 3.)
Tail Risk Management (TRM). 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
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, 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.
| Target
Date Retirement Funds
|
|
17 |
2. The VMO
seeks to keep the Fund’s short-term volatility in-line with its strategic
long-term target. The VMO uses quantitative
inputs and strives to decrease the portfolio’s effective equity exposure when
projected equity market volatility
is higher than average, and increasing the portfolio’s effective equity exposure
when projected equity market volatility
is lower than average. The VMO may increase exposures to a given asset class
under certain market conditions
while decreasing exposure during others.
3. 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.
At any
point, as a result of the utilization of the futures overlay and changes
otherwise implemented by the portfolio managers,
there may be significant divergences between the effective asset allocation of
the Fund and its strategic target
allocation.
The glide
path (as of the date of this prospectus) is detailed in the chart below. The
glide path visual depicts the strategic
equity allocation of the Allspring Dynamic Target Date Funds over time. At their
discretion, the Fund’s portfolio managers
may make changes to the Fund’s glide path and asset
allocation.
| 18 |
|
Target
Date Retirement Funds |
Portfolio
Asset Allocation
The
following table provides the Fund’s target allocations to various underlying
portfolios as of July 1, 2022.
|
|
|
|
|
|
|
|
Allspring
Factor Enhanced U.S. Large Cap Equity
Portfolio |
|
Allspring
Factor Enhanced International Equity
Portfolio |
|
Allspring
Factor Enhanced U.S. Small Cap Equity
Portfolio |
|
Allspring
U.S. REIT Portfolio |
|
Allspring
Factor Enhanced Emerging Markets Equity
Portfolio |
|
|
|
|
Allspring
Bloomberg US Aggregate ex-Corporate
Portfolio |
|
Allspring
Investment Grade Corporate Bond
Portfolio |
|
Allspring
Strategic Retirement Bond Portfolio (includes both TIPs & Intermediate
Government
Bond allocations) |
|
Allspring
Emerging Markets Bond
Portfolio |
|
Allspring
High Yield Corporate Bond
Portfolio |
|
| 1. |
Target
allocations may total more or less than 100% due to
rounding. |
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.
Target
Date Fund Risk. A Target
Date Fund cannot provide assurance that an investor’s investment in the Fund
will provide
income at, and through the years following, the target year in the Fund’s name
in amounts adequate to meet the
investor’s financial goals. In addition, the Fund is subject to the risk that
its strategy will not eliminate investment volatility
that could reduce the amount of funds available for an investor who begins to
withdraw funds or expects to retire
close to or in the Fund’s target year.
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.
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, 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.
Underlying
Funds Risk. The risks
associated with a Fund include the risks related to each Underlying Fund in
which the Fund
invests.
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.
| Target
Date Retirement Funds
|
|
19 |
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
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”) 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.
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.
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 and regional 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.
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.
| 20 |
|
Target
Date Retirement Funds |
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 is no guarantee of future results. Current
month-end performance is available on the Fund’s
website at allspringglobal.com.
|
|
|
|
Calendar
Year Total Returns for Class R4 as of 12/31 each year
|
|
|
Highest
Quarter:
June
30,
2020 |
|
Lowest
Quarter:
March
31,
2020 |
|
Year-to-date
total return
as of March
31,
2022 is
-7.67% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2021 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
Since
inception |
|
Class
R4 |
11/30/2015
|
11.82% |
10.06% |
8.98% |
|
S&P
Target Date 2020 Index (reflects no deduction for
fees, expenses, or taxes)1
|
|
% |
% |
% |
|
Dynamic
Target 2020 Blended Index (reflects no deduction
for fees, expenses, or taxes)2
|
|
% |
- |
- |
| 1. |
The
S&P Target Date Index is designed as a benchmark for multi-asset class
portfolios with risk profiles that become more conservative
over time, corresponding to the target retirement date. This index is
representative of the investment opportunity available
to investors for the target date horizon, with asset class exposures
driven by a survey of available target date funds for that horizon.
You cannot invest directly in an
index. |
| 2. |
Source:
Allspring Funds Management, LLC. The Dynamic Target Blended Index is
designed as a benchmark for multi-asset class portfolios
with risk profiles that become more conservative over time, corresponding
to the target retirement date. The index weightings
among the major asset classes are adjusted annually. The inception date of
the index is September 21, 2018. You cannot
invest directly in an
index. |
| Target
Date Retirement Funds
|
|
21 |
Fund
Management
|
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
|
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Kandarp
R. Acharya, CFA, FRM,
Portfolio Manager / 2015
Petros
N. Bocray, CFA, FRM,
Portfolio Manager / 2016
Travis
L. Keshemberg, CFA, CIPM, FRM,
Portfolio Manager
/ 2022 |
Purchase
and Sale of Fund Shares
Class
R4 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
R4 shares also are generally available only to retirement plans where
plan level or omnibus accounts
are held on the books of the Fund. Class
R4 shares generally are not available to retail
accounts.
|
|
Institutions
Purchasing Fund Shares |
|
Minimum
Initial Investment
Class
R4: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment
Class
R4: 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.
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.
| 22 |
|
Target
Date Retirement Funds |
Dynamic
Target 2025 Fund Summary
Investment
Objective
The Fund
seeks total return over time, consistent with its strategic target
allocation.
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 |
|
|
|
|
|
Management
Fees |
0.10% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
0.97% |
|
Acquired
Fund Fees and Expenses |
0.11% |
|
Total
Annual Fund Operating Expenses |
1.18% |
|
Fee
Waivers |
(0.89)% |
|
Total
Annual Fund Operating Expenses After Fee Waivers2
|
% |
| 1. |
Expenses
have been adjusted as necessary from amounts incurred during the Fund’s
most recent fiscal year to reflect current fees and
expenses.
|
| 2. |
The
Manager has contractually committed through June
30, 2024, to
waive fees and/or reimburse expenses to the extent necessary to
cap Total Annual Fund Operating Expenses After Fee Waivers at 0.29%
for Class
R4. 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 |
$30 |
|
3
Years |
$193 |
|
5
Years |
$472 |
|
10
Years |
$1,269 |
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 89%
of the
average value of its portfolio.
| Target
Date Retirement Funds
|
|
23 |
Principal
Investment Strategies
The equity
Underlying Funds are each intended to provide exposure to a specific market
segment. Those segments include
U.S. large- and small-capitalization companies, international (non-U.S.)
developed and emerging markets, and real
estate. The U.S. large- and small-capitalization companies, international
developed markets and emerging markets allocations
each seek to add value above their respective broad market index, by employing a
systematic, rules based methodology
designed to build a portfolio of stocks that provides exposure to factors (or
characteristics) commonly tied to a
stock’s potential for enhanced risk-adjusted returns relative to the market.
Those factors include, but are not limited to,
value, quality, momentum, size, and low volatility. The real estate allocation
invests in real estate investment trusts
(REITs) and is managed to replicate the performance of the Dow Jones U.S. Select
REIT index, a float-adjusted market-capitalization
weighted index designed to serve as a proxy for direct real estate
investment.
The fixed
income Underlying Funds provide diversified exposure across a wide range of
market sectors, including U.S. Government
obligations (including Treasury inflation-protected securities, or TIPS),
investment grade corporate bonds, below
investment grade bonds (commonly known as “high yield bonds” or “junk bonds”),
other U.S. bond sectors (including
mortgage- and asset-backed securities), and emerging markets foreign issues. The
inflation-protected Treasury
and intermediate-term government allocations will be managed to replicate the
performance of the Bloomberg
U.S. Treasury Inflation-Linked 1-10 Year Bond Index and the Bloomberg U.S.
Government Intermediate Bond Index,
respectively, each a traditional market-capitalization weighted index designed
to provide diversified exposure to their
respective allocation.
The
investment grade corporate bond allocation will be managed to replicate the
performance of the Bloomberg U.S. Corporate
Bond Index. The below investment grade bond allocation will be managed to
replicate the performance of the
Bloomberg U.S. High Yield 2% Issuer Capped Bond Index. The U.S. aggregate bond
ex-corporate allocation, which includes
mortgage- and asset-backed securities, will be managed to replicate the
performance of the Bloomberg U.S. Aggregate
ex- Corporate Index, a traditional market-capitalization weighted index designed
to provide diversified exposure to
the allocation. The emerging markets bond allocation will be managed to
replicate the performance of the JP Morgan
EMBI Global Diversified Index, an index that deviates from a traditional market
capitalization weighting to provide
more robust diversification across its constituent
countries.
The Fund is
primarily designed for investors expecting to retire and/or begin withdrawing
funds around its target date of 2025. As
the Fund’s time horizon to its target date shortens, it generally replaces some
of its equity holdings with fixed
income holdings in an attempt to reduce market risk and thereby become more
conservative in its asset allocation.
This reallocation occurs according to a predetermined “glide path,” which was
developed based on long-term
capital market return expectations, actuarial assumptions about life expectancy
and retirement, and assumptions
about investors’ risk tolerance. The reallocation continues as the Fund’s target
year approaches and for the first
ten years afterward. The Fund’s target year of 2025 serves as a guide to the
risk profile of the Fund, and your decision to
invest in a Allspring Dynamic Target Date Fund with a particular target year and
risk profile depends on your individual
risk tolerance, among other factors.
The Fund
will not reach its lowest strategic target allocation to equities until ten
years past the Fund’s target year. During the
ten-year period after the Fund’s target year, the Fund’s asset allocation will
increasingly resemble that of the Allspring
Dynamic Target Today Fund and at the end of the ten-year period, we will likely
combine it with the Allspring Dynamic
Target Today Fund.
The Fund
will incorporate a derivatives overlay strategy that contains three specific
risk management components: 1.) Tactical
Asset Allocation (TAA) Overlay, 2.) Volatility Management Overlay (VMO), and 3.)
Tail Risk Management (TRM). 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
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, 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.
| 24 |
|
Target
Date Retirement Funds |
2. The VMO
seeks to keep the Fund’s short-term volatility in-line with its strategic
long-term target. The VMO uses quantitative
inputs and strives to decrease the portfolio’s effective equity exposure when
projected equity market volatility
is higher than average, and increasing the portfolio’s effective equity exposure
when projected equity market volatility
is lower than average. The VMO may increase exposures to a given asset class
under certain market conditions
while decreasing exposure during others.
3. 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.
At any
point, as a result of the utilization of the futures overlay and changes
otherwise implemented by the portfolio managers,
there may be significant divergences between the effective asset allocation of
the Fund and its strategic target
allocation.
The glide
path (as of the date of this prospectus) is detailed in the chart below. The
glide path visual depicts the strategic
equity allocation of the Allspring Dynamic Target Date Funds over time. At their
discretion, the Fund’s portfolio managers
may make changes to the Fund’s glide path and asset
allocation.
| Target
Date Retirement Funds
|
|
25 |
Portfolio
Asset Allocation
The
following table provides the Fund’s target allocations to various underlying
portfolios as of July 1, 2022.
|
|
|
|
|
|
|
|
Allspring
Factor Enhanced U.S. Large Cap Equity
Portfolio |
|
Allspring
Factor Enhanced International Equity
Portfolio |
|
Allspring
Factor Enhanced U.S. Small Cap Equity
Portfolio |
|
Allspring
Factor Enhanced Emerging Markets Equity
Portfolio |
|
Allspring
U.S. REIT Portfolio |
|
|
|
|
Allspring
Bloomberg US Aggregate ex-Corporate
Portfolio |
|
Allspring
Investment Grade Corporate Bond
Portfolio |
|
Allspring
Strategic Retirement Bond Portfolio (includes both TIPs & Intermediate
Government
Bond allocations) |
|
Allspring
Emerging Markets Bond
Portfolio |
|
Allspring
High Yield Corporate Bond
Portfolio |
|
| 1. |
Target
allocations may total more or less than 100% due to
rounding. |
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.
Target
Date Fund Risk. A Target
Date Fund cannot provide assurance that an investor’s investment in the Fund
will provide
income at, and through the years following, the target year in the Fund’s name
in amounts adequate to meet the
investor’s financial goals. In addition, the Fund is subject to the risk that
its strategy will not eliminate investment volatility
that could reduce the amount of funds available for an investor who begins to
withdraw funds or expects to retire
close to or in the Fund’s target year.
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.
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, 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.
Underlying
Funds Risk. The risks
associated with a Fund include the risks related to each Underlying Fund in
which the Fund
invests.
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.
| 26 |
|
Target
Date Retirement Funds |
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
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”) 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.
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.
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 and regional 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.
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.
| Target
Date Retirement Funds
|
|
27 |
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 is no guarantee of future results. Current
month-end performance is available on the Fund’s
website at allspringglobal.com.
|
|
|
|
Calendar
Year Total Returns for Class R4 as of 12/31 each year
|
|
|
Highest
Quarter:
June
30,
2020 |
|
Lowest
Quarter:
March
31,
2020 |
|
Year-to-date
total return
as of March
31,
2022 is
-7.84% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2021 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
Since
inception |
|
Class
R4 |
11/30/2015
|
13.66% |
11.12% |
9.85% |
|
S&P
Target Date 2025 Index (reflects no deduction for
fees, expenses, or taxes)1
|
|
% |
% |
% |
|
Dynamic
Target 2025 Blended Index (reflects no deduction
for fees, expenses, or taxes)2
|
|
% |
- |
- |
| 1. |
The
S&P Target Date Index is designed as a benchmark for multi-asset class
portfolios with risk profiles that become more conservative
over time, corresponding to the target retirement date. This index is
representative of the investment opportunity available
to investors for the target date horizon, with asset class exposures
driven by a survey of available target date funds for that horizon.
You cannot invest directly in an
index. |
| 2. |
Source:
Allspring Funds Management, LLC. The Dynamic Target Blended Index is
designed as a benchmark for multi-asset class portfolios
with risk profiles that become more conservative over time, corresponding
to the target retirement date. The index weightings
among the major asset classes are adjusted annually. The inception date of
the index is September 21, 2018. You cannot
invest directly in an
index. |
| 28 |
|
Target
Date Retirement Funds |
Fund
Management
|
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
|
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Kandarp
R. Acharya, CFA, FRM,
Portfolio Manager / 2015
Petros
N. Bocray, CFA, FRM,
Portfolio Manager / 2016
Travis
L. Keshemberg, CFA, CIPM, FRM,
Portfolio Manager
/ 2022 |
Purchase
and Sale of Fund Shares
Class
R4 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
R4 shares also are generally available only to retirement plans where
plan level or omnibus accounts
are held on the books of the Fund. Class
R4 shares generally are not available to retail
accounts.
|
|
Institutions
Purchasing Fund Shares |
|
Minimum
Initial Investment
Class
R4: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment
Class
R4: 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.
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.
| Target
Date Retirement Funds
|
|
29 |
Dynamic
Target 2030 Fund Summary
Investment
Objective
The Fund
seeks total return over time, consistent with its strategic target
allocation.
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 |
|
|
|
|
|
Management
Fees |
0.10% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
1.03% |
|
Acquired
Fund Fees and Expenses |
0.12% |
|
Total
Annual Fund Operating Expenses |
1.25% |
|
Fee
Waivers |
(0.96)% |
|
Total
Annual Fund Operating Expenses After Fee Waivers2
|
% |
| 1. |
Expenses
have been adjusted as necessary from amounts incurred during the Fund’s
most recent fiscal year to reflect current fees and
expenses.
|
| 2. |
The
Manager has contractually committed through June
30, 2024, to
waive fees and/or reimburse expenses to the extent necessary to
cap Total Annual Fund Operating Expenses After Fee Waivers at 0.29%
for Class
R4. 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 |
$30 |
|
3
Years |
$200 |
|
5
Years |
$496 |
|
10
Years |
$1,336 |
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 84%
of the
average value of its portfolio.
| 30 |
|
Target
Date Retirement Funds |
Principal
Investment Strategies
The equity
Underlying Funds are each intended to provide exposure to a specific market
segment. Those segments include
U.S. large- and small-capitalization companies, international (non-U.S.)
developed and emerging markets, and real
estate. The U.S. large- and small-capitalization companies, international
developed markets and emerging markets allocations
each seek to add value above their respective broad market index, by employing a
systematic, rules based methodology
designed to build a portfolio of stocks that provides exposure to factors (or
characteristics) commonly tied to a
stock’s potential for enhanced risk-adjusted returns relative to the market.
Those factors include, but are not limited to,
value, quality, momentum, size, and low volatility. The real estate allocation
invests in real estate investment trusts
(REITs) and is managed to replicate the performance of the Dow Jones U.S. Select
REIT index, a float-adjusted market-capitalization
weighted index designed to serve as a proxy for direct real estate
investment.
The fixed
income Underlying Funds provide diversified exposure across a wide range of
market sectors, including U.S. Government
obligations (including Treasury inflation-protected securities, or TIPS),
investment grade corporate bonds, below
investment grade bonds (commonly known as “high yield bonds” or “junk bonds”),
other U.S. bond sectors (including
mortgage- and asset-backed securities), and emerging markets foreign issues. The
inflation-protected Treasury
and intermediate-term government allocations will be managed to replicate the
performance of the Bloomberg
U.S. Treasury Inflation-Linked 1-10 Year Bond Index and the Bloomberg U.S.
Government Intermediate Bond Index,
respectively, each a traditional market-capitalization weighted index designed
to provide diversified exposure to their
respective allocation.
The
investment grade corporate bond allocation will be managed to replicate the
performance of the Bloomberg U.S. Corporate
Bond Index. The below investment grade bond allocation will be managed to
replicate the performance of the
Bloomberg U.S. High Yield 2% Issuer Capped Bond Index. The U.S. aggregate bond
ex-corporate allocation, which includes
mortgage- and asset-backed securities, will be managed to replicate the
performance of the Bloomberg U.S. Aggregate
ex- Corporate Index, a traditional market-capitalization weighted index designed
to provide diversified exposure to
the allocation. The emerging markets bond allocation will be managed to
replicate the performance of the JP Morgan
EMBI Global Diversified Index, an index that deviates from a traditional market
capitalization weighting to provide
more robust diversification across its constituent
countries.
The Fund is
primarily designed for investors expecting to retire and/or begin withdrawing
funds around its target date of 2030. As
the Fund’s time horizon to its target date shortens, it generally replaces some
of its equity holdings with fixed
income holdings in an attempt to reduce market risk and thereby become more
conservative in its asset allocation.
This reallocation occurs according to a predetermined “glide path,” which was
developed based on long-term
capital market return expectations, actuarial assumptions about life expectancy
and retirement, and assumptions
about investors’ risk tolerance. The reallocation continues as the Fund’s target
year approaches and for the first
ten years afterward. The Fund’s target year of 2030 serves as a guide to the
risk profile of the Fund, and your decision to
invest in a Allspring Dynamic Target Date Fund with a particular target year and
risk profile depends on your individual
risk tolerance, among other factors.
The Fund
will not reach its lowest strategic target allocation to equities until ten
years past the Fund’s target year. During the
ten-year period after the Fund’s target year, the Fund’s asset allocation will
increasingly resemble that of the Allspring
Dynamic Target Today Fund and at the end of the ten-year period, we will likely
combine it with the Allspring Dynamic
Target Today Fund.
The Fund
will incorporate a derivatives overlay strategy that contains three specific
risk management components: 1.) Tactical
Asset Allocation (TAA) Overlay, 2.) Volatility Management Overlay (VMO), and 3.)
Tail Risk Management (TRM). 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
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, 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.
| Target
Date Retirement Funds
|
|
31 |
2. The VMO
seeks to keep the Fund’s short-term volatility in-line with its strategic
long-term target. The VMO uses quantitative
inputs and strives to decrease the portfolio’s effective equity exposure when
projected equity market volatility
is higher than average, and increasing the portfolio’s effective equity exposure
when projected equity market volatility
is lower than average. The VMO may increase exposures to a given asset class
under certain market conditions
while decreasing exposure during others.
3. 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.
At any
point, as a result of the utilization of the futures overlay and changes
otherwise implemented by the portfolio managers,
there may be significant divergences between the effective asset allocation of
the Fund and its strategic target
allocation.
The glide
path (as of the date of this prospectus) is detailed in the chart below. The
glide path visual depicts the strategic
equity allocation of the Allspring Dynamic Target Date Funds over time. At their
discretion, the Fund’s portfolio managers
may make changes to the Fund’s glide path and asset
allocation.
| 32 |
|
Target
Date Retirement Funds |
Portfolio
Asset Allocation
The
following table provides the Fund’s target allocations to various underlying
portfolios as of July 1, 2022.
|
|
|
|
|
|
|
|
Allspring
Factor Enhanced U.S. Large Cap Equity
Portfolio |
|
Allspring
Factor Enhanced International Equity
Portfolio |
|
Allspring
Factor Enhanced U.S. Small Cap Equity
Portfolio |
|
Allspring
Factor Enhanced Emerging Markets Equity
Portfolio |
|
Allspring
U.S. REIT Portfolio |
|
|
|
|
Allspring
Bloomberg US Aggregate ex-Corporate
Portfolio |
|
Allspring
Investment Grade Corporate Bond
Portfolio |
|
Allspring
Emerging Markets Bond
Portfolio |
|
Allspring
High Yield Corporate Bond
Portfolio |
|
Allspring
Strategic Retirement Bond Portfolio (includes both TIPs & Intermediate
Government
Bond allocations) |
|
| 1. |
Target
allocations may total more or less than 100% due to
rounding. |
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.
Target
Date Fund Risk. A Target
Date Fund cannot provide assurance that an investor’s investment in the Fund
will provide
income at, and through the years following, the target year in the Fund’s name
in amounts adequate to meet the
investor’s financial goals. In addition, the Fund is subject to the risk that
its strategy will not eliminate investment volatility
that could reduce the amount of funds available for an investor who begins to
withdraw funds or expects to retire
close to or in the Fund’s target year.
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.
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, 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.
Underlying
Funds Risk. The risks
associated with a Fund include the risks related to each Underlying Fund in
which the Fund
invests.
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.
| Target
Date Retirement Funds
|
|
33 |
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
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”) 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.
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.
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 and regional 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.
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.
| 34 |
|
Target
Date Retirement Funds |
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 is no guarantee of future results. Current
month-end performance is available on the Fund’s
website at allspringglobal.com.
|
|
|
|
Calendar
Year Total Returns for Class R4 as of 12/31 each year
|
|
|
Highest
Quarter:
June
30,
2020 |
|
Lowest
Quarter:
March
31,
2020 |
|
Year-to-date
total return
as of March
31,
2022 is
-8.00% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2021 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
Since
inception |
|
Class
R4 |
11/30/2015
|
14.75% |
12.15% |
10.70% |
|
S&P
Target Date 2030 Index (reflects no deduction for
fees, expenses, or taxes)1
|
|
% |
% |
% |
|
Dynamic
Target 2030 Blended Index (reflects no deduction
for fees, expenses, or taxes)2
|
|
% |
- |
- |
| 1. |
The
S&P Target Date Index is designed as a benchmark for multi-asset class
portfolios with risk profiles that become more conservative
over time, corresponding to the target retirement date. This index is
representative of the investment opportunity available
to investors for the target date horizon, with asset class exposures
driven by a survey of available target date funds for that horizon.
You cannot invest directly in an
index. |
| 2. |
Source:
Allspring Funds Management, LLC. The Dynamic Target Blended Index is
designed as a benchmark for multi-asset class portfolios
with risk profiles that become more conservative over time, corresponding
to the target retirement date. The index weightings
among the major asset classes are adjusted annually. The inception date of
the index is September 21, 2018. You cannot
invest directly in an
index. |
| Target
Date Retirement Funds
|
|
35 |
Fund
Management
|
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
|
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Kandarp
R. Acharya, CFA, FRM,
Portfolio Manager / 2015
Petros
N. Bocray, CFA, FRM,
Portfolio Manager / 2016
Travis
L. Keshemberg, CFA, CIPM, FRM,
Portfolio Manager
/ 2022 |
Purchase
and Sale of Fund Shares
Class
R4 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
R4 shares also are generally available only to retirement plans where
plan level or omnibus accounts
are held on the books of the Fund. Class
R4 shares generally are not available to retail
accounts.
|
|
Institutions
Purchasing Fund Shares |
|
Minimum
Initial Investment
Class
R4: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment
Class
R4: 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.
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.
| 36 |
|
Target
Date Retirement Funds |
Dynamic
Target 2035 Fund Summary
Investment
Objective
The Fund
seeks total return over time, consistent with its strategic target
allocation.
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 |
|
|
|
|
|
Management
Fees |
0.10% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
1.11% |
|
Acquired
Fund Fees and Expenses |
0.12% |
|
Total
Annual Fund Operating Expenses |
1.33% |
|
Fee
Waivers |
(1.04)% |
|
Total
Annual Fund Operating Expenses After Fee Waivers2
|
% |
| 1. |
Expenses
have been adjusted as necessary from amounts incurred during the Fund’s
most recent fiscal year to reflect current fees and
expenses.
|
| 2. |
The
Manager has contractually committed through June
30, 2024, to
waive fees and/or reimburse expenses to the extent necessary to
cap Total Annual Fund Operating Expenses After Fee Waivers at 0.29%
for Class
R4. 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 |
$30 |
|
3
Years |
$209 |
|
5
Years |
$523 |
|
10
Years |
$1,413 |
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 81%
of the
average value of its portfolio.
| Target
Date Retirement Funds
|
|
37 |
Principal
Investment Strategies
The equity
Underlying Funds are each intended to provide exposure to a specific market
segment. Those segments include
U.S. large- and small-capitalization companies, and international (non-U.S.)
developed and emerging markets. The U.S.
large- and small-capitalization companies, international developed markets and
emerging markets allocations each seek
to add value above their respective broad market index, by employing a
systematic, rules based methodology
designed to build a portfolio of stocks that provides exposure to factors (or
characteristics) commonly tied to a
stock’s potential for enhanced risk-adjusted returns relative to the market.
Those factors include, but are not limited to,
value, quality, momentum, size, and low
volatility.
The fixed
income Underlying Funds provide diversified exposure across a wide range of
market sectors, including U.S. Government
obligations, investment grade corporate bonds, below investment grade bonds
(commonly known as “high yield
bonds” or “junk bonds”), other U.S. bond sectors (including mortgage- and
asset-backed securities), and emerging
markets foreign issues. The investment grade corporate bond allocation will be
managed to replicate the performance
of the Bloomberg U.S. Corporate Bond Index. The below investment grade bond
allocation will be managed to
replicate the performance of the Bloomberg U.S. High Yield 2% Issuer Capped Bond
Index. The U.S. aggregate
bond ex-corporate allocation, which includes mortgage- and asset-backed
securities, will be managed to replicate
the performance of the Bloomberg U.S. Aggregate ex- Corporate Index, a
traditional market-capitalization weighted
index designed to provide diversified exposure to the allocation. The emerging
markets bond allocation will be managed
to replicate the performance of the JP Morgan EMBI Global Diversified Index, an
index that deviates from a traditional
market capitalization weighting to provide more robust diversification across
its constituent countries.
The Fund is
primarily designed for investors expecting to retire and/or begin withdrawing
funds around its target date of 2035. As
the Fund’s time horizon to its target date shortens, it generally replaces some
of its equity holdings with fixed
income holdings in an attempt to reduce market risk and thereby become more
conservative in its asset allocation.
This reallocation occurs according to a predetermined “glide path,” which was
developed based on long-term
capital market return expectations, actuarial assumptions about life expectancy
and retirement, and assumptions
about investors’ risk tolerance. The reallocation continues as the Fund’s target
year approaches and for the first
ten years afterward. The Fund’s target year of 2035 serves as a guide to the
risk profile of the Fund, and your decision to
invest in a Allspring Dynamic Target Date Fund with a particular target year and
risk profile depends on your individual
risk tolerance, among other factors.
The Fund
will not reach its lowest strategic target allocation to equities until ten
years past the Fund’s target year. During the
ten-year period after the Fund’s target year, the Fund’s asset allocation will
increasingly resemble that of the Allspring
Dynamic Target Today Fund and at the end of the ten-year period, we will likely
combine it with the Allspring Dynamic
Target Today Fund.
The Fund
will incorporate a derivatives overlay strategy that contains three specific
risk management components: 1.) Tactical
Asset Allocation (TAA) Overlay, 2.) Volatility Management Overlay (VMO), and 3.)
Tail Risk Management (TRM). 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
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, 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. The VMO
seeks to keep the Fund’s short-term volatility in-line with its strategic
long-term target. The VMO uses quantitative
inputs and strives to decrease the portfolio’s effective equity exposure when
projected equity market volatility
is higher than average, and increasing the portfolio’s effective equity exposure
when projected equity market volatility
is lower than average. The VMO may increase exposures to a given asset class
under certain market conditions
while decreasing exposure during others.
3. 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
| 38 |
|
Target
Date Retirement Funds |
exposure
using futures. This component also systematically takes hedge profit by reducing
downside protection after a severe
portfolio decline.
At any
point, as a result of the utilization of the futures overlay and changes
otherwise implemented by the portfolio managers,
there may be significant divergences between the effective asset allocation of
the Fund and its strategic target
allocation.
The glide
path (as of the date of this prospectus) is detailed in the chart below. The
glide path visual depicts the strategic
equity allocation of the Allspring Dynamic Target Date Funds over time. At their
discretion, the Fund’s portfolio managers
may make changes to the Fund’s glide path and asset
allocation.
| Target
Date Retirement Funds
|
|
39 |
Portfolio
Asset Allocation
The
following table provides the Fund’s target allocations to various underlying
portfolios as of July 1, 2022.
|
|
|
|
|
|
|
|
Allspring
Factor Enhanced U.S. Large Cap Equity
Portfolio |
|
Allspring
Factor Enhanced International Equity
Portfolio |
|
Allspring
Factor Enhanced U.S. Small Cap Equity
Portfolio |
|
Allspring
Factor Enhanced Emerging Markets Equity
Portfolio |
|
Allspring
U.S. REIT Portfolio |
|
|
|
|
Allspring
Bloomberg US Aggregate ex-Corporate
Portfolio |
|
Allspring
Investment Grade Corporate Bond
Portfolio |
|
Allspring
High Yield Corporate Bond
Portfolio |
|
Allspring
Emerging Markets Bond
Portfolio |
|
Allspring
Strategic Retirement Bond Portfolio (includes both TIPs & Intermediate
Government
Bond allocations) |
|
| 1. |
Target
allocations may total more or less than 100% due to
rounding. |
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.
Target
Date Fund Risk. A Target
Date Fund cannot provide assurance that an investor’s investment in the Fund
will provide
income at, and through the years following, the target year in the Fund’s name
in amounts adequate to meet the
investor’s financial goals. In addition, the Fund is subject to the risk that
its strategy will not eliminate investment volatility
that could reduce the amount of funds available for an investor who begins to
withdraw funds or expects to retire
close to or in the Fund’s target year.
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.
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, 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.
Underlying
Funds Risk. The risks
associated with a Fund include the risks related to each Underlying Fund in
which the Fund
invests.
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.
| 40 |
|
Target
Date Retirement Funds |
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
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”) 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.
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.
Smaller
Company Securities Risk. Securities
of companies with smaller market capitalizations tend to be more volatile
and less
liquid than those of larger companies.
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.
| Target
Date Retirement Funds
|
|
41 |
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 is no guarantee of future results. Current
month-end performance is available on the Fund’s
website at allspringglobal.com.
|
|
|
|
Calendar
Year Total Returns for Class R4 as of 12/31 each year
|
|
|
Highest
Quarter:
June
30,
2020 |
|
Lowest
Quarter:
March
31,
2020 |
|
Year-to-date
total return
as of March
31,
2022 is
-8.23% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2021 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
Since
inception |
|
Class
R4 |
11/30/2015
|
15.35% |
12.80% |
11.24% |
|
S&P
Target Date 2035 Index (reflects no deduction for
fees, expenses, or taxes)1
|
|
% |
% |
% |
|
Dynamic
Target 2035 Blended Index (reflects no deduction
for fees, expenses, or taxes)2
|
|
% |
- |
- |
| 1. |
The
S&P Target Date Index is designed as a benchmark for multi-asset class
portfolios with risk profiles that become more conservative
over time, corresponding to the target retirement date. This index is
representative of the investment opportunity available
to investors for the target date horizon, with asset class exposures
driven by a survey of available target date funds for that horizon.
You cannot invest directly in an
index. |
| 2. |
Source:
Allspring Funds Management, LLC. The Dynamic Target Blended Index is
designed as a benchmark for multi-asset class portfolios
with risk profiles that become more conservative over time, corresponding
to the target retirement date. The index weightings
among the major asset classes are adjusted annually. The inception date of
the index is September 21, 2018. You cannot
invest directly in an
index. |
| 42 |
|
Target
Date Retirement Funds |
Fund
Management
|
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
|
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Kandarp
R. Acharya, CFA, FRM,
Portfolio Manager / 2015
Petros
N. Bocray, CFA, FRM,
Portfolio Manager / 2016
Travis
L. Keshemberg, CFA, CIPM, FRM,
Portfolio Manager
/ 2022 |
Purchase
and Sale of Fund Shares
Class
R4 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
R4 shares also are generally available only to retirement plans where
plan level or omnibus accounts
are held on the books of the Fund. Class
R4 shares generally are not available to retail
accounts.
|
|
Institutions
Purchasing Fund Shares |
|
Minimum
Initial Investment
Class
R4: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment
Class
R4: 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.
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.
| Target
Date Retirement Funds
|
|
43 |
Dynamic
Target 2040 Fund Summary
Investment
Objective
The Fund
seeks total return over time, consistent with its strategic target
allocation.
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 |
|
|
|
|
|
Management
Fees |
0.10% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
1.19% |
|
Acquired
Fund Fees and Expenses |
0.12% |
|
Total
Annual Fund Operating Expenses |
1.41% |
|
Fee
Waivers |
(1.12)% |
|
Total
Annual Fund Operating Expenses After Fee Waivers2
|
% |
| 1. |
Expenses
have been adjusted as necessary from amounts incurred during the Fund’s
most recent fiscal year to reflect current fees and
expenses.
|
| 2. |
The
Manager has contractually committed through June
30, 2024, to
waive fees and/or reimburse expenses to the extent necessary to
cap Total Annual Fund Operating Expenses After Fee Waivers at 0.29%
for Class
R4. 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 |
$30 |
|
3
Years |
$219 |
|
5
Years |
$551 |
|
10
Years |
$1,493 |
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 77%
of the
average value of its portfolio.
| 44 |
|
Target
Date Retirement Funds |
Principal
Investment Strategies
The equity
Underlying Funds are each intended to provide exposure to a specific market
segment. Those segments include
U.S. large- and small-capitalization companies, and international (non-U.S.)
developed and emerging markets. The U.S.
large- and small-capitalization companies, international developed markets and
emerging markets allocations each seek
to add value above their respective broad market index, by employing a
systematic, rules based methodology
designed to build a portfolio of stocks that provides exposure to factors (or
characteristics) commonly tied to a
stock’s potential for enhanced risk-adjusted returns relative to the market.
Those factors include, but are not limited to,
value, quality, momentum, size, and low
volatility.
The fixed
income Underlying Funds provide diversified exposure across a wide range of
market sectors, including U.S. Government
obligations, investment grade corporate bonds, below investment grade bonds
(commonly known as “high yield
bonds” or “junk bonds”), other U.S. bond sectors (including mortgage- and
asset-backed securities), and emerging
markets foreign issues. The investment grade corporate bond allocation will be
managed to replicate the performance
of the Bloomberg U.S. Corporate Bond Index. The below investment grade bond
allocation will be managed to
replicate the performance of the Bloomberg U.S. High Yield 2% Issuer Capped Bond
Index. The U.S. aggregate
bond ex-corporate allocation, which includes mortgage- and asset-backed
securities, will be managed to replicate
the performance of the Bloomberg U.S. Aggregate ex- Corporate Index, a
traditional market-capitalization weighted
index designed to provide diversified exposure to the allocation. The emerging
markets bond allocation will be managed
to replicate the performance of the JP Morgan EMBI Global Diversified Index, an
index that deviates from a traditional
market capitalization weighting to provide more robust diversification across
its constituent countries.
The Fund is
primarily designed for investors expecting to retire and/or begin withdrawing
funds around its target date of 2040. As
the Fund’s time horizon to its target date shortens, it generally replaces some
of its equity holdings with fixed
income holdings in an attempt to reduce market risk and thereby become more
conservative in its asset allocation.
This reallocation occurs according to a predetermined “glide path,” which was
developed based on long-term
capital market return expectations, actuarial assumptions about life expectancy
and retirement, and assumptions
about investors’ risk tolerance. The reallocation continues as the Fund’s target
year approaches and for the first
ten years afterward. The Fund’s target year of 2040 serves as a guide to the
risk profile of the Fund, and your decision to
invest in a Allspring Dynamic Target Date Fund with a particular target year and
risk profile depends on your individual
risk tolerance, among other factors.
The Fund
will not reach its lowest strategic target allocation to equities until ten
years past the Fund’s target year. During the
ten-year period after the Fund’s target year, the Fund’s asset allocation will
increasingly resemble that of the Allspring
Dynamic Target Today Fund and at the end of the ten-year period, we will likely
combine it with the Allspring Dynamic
Target Today Fund.
The Fund
will incorporate a derivatives overlay strategy that contains three specific
risk management components: 1.) Tactical
Asset Allocation (TAA) Overlay, 2.) Volatility Management Overlay (VMO), and 3.)
Tail Risk Management (TRM). 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
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, 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. The VMO
seeks to keep the Fund’s short-term volatility in-line with its strategic
long-term target. The VMO uses quantitative
inputs and strives to decrease the portfolio’s effective equity exposure when
projected equity market volatility
is higher than average, and increasing the portfolio’s effective equity exposure
when projected equity market volatility
is lower than average. The VMO may increase exposures to a given asset class
under certain market conditions
while decreasing exposure during others.
3. 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
| Target
Date Retirement Funds
|
|
45 |
exposure
using futures. This component also systematically takes hedge profit by reducing
downside protection after a severe
portfolio decline.
At any
point, as a result of the utilization of the futures overlay and changes
otherwise implemented by the portfolio managers,
there may be significant divergences between the effective asset allocation of
the Fund and its strategic target
allocation.
The glide
path (as of the date of this prospectus) is detailed in the chart below. The
glide path visual depicts the strategic
equity allocation of the Allspring Dynamic Target Date Funds over time. At their
discretion, the Fund’s portfolio managers
may make changes to the Fund’s glide path and asset
allocation.
| 46 |
|
Target
Date Retirement Funds |
Portfolio
Asset Allocation
The
following table provides the Fund’s target allocations to various underlying
portfolios as of July 1, 2022.
|
|
|
|
|
|
|
|
Allspring
Factor Enhanced U.S. Large Cap Equity
Portfolio |
|
Allspring
Factor Enhanced International Equity
Portfolio |
|
Allspring
Factor Enhanced U.S. Small Cap Equity
Portfolio |
|
Allspring
Factor Enhanced Emerging Markets Equity
Portfolio |
|
Allspring
U.S. REIT Portfolio |
|
|
|
|
Allspring
Bloomberg US Aggregate ex-Corporate
Portfolio |
|
Allspring
Investment Grade Corporate Bond
Portfolio |
|
Allspring
Emerging Markets Bond
Portfolio |
|
Allspring
High Yield Corporate Bond
Portfolio |
|
Allspring
Strategic Retirement Bond Portfolio (includes both TIPs & Intermediate
Government
Bond allocations) |
|
| 1. |
Target
allocations may total more or less than 100% due to
rounding. |
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.
Target
Date Fund Risk. A Target
Date Fund cannot provide assurance that an investor’s investment in the Fund
will provide
income at, and through the years following, the target year in the Fund’s name
in amounts adequate to meet the
investor’s financial goals. In addition, the Fund is subject to the risk that
its strategy will not eliminate investment volatility
that could reduce the amount of funds available for an investor who begins to
withdraw funds or expects to retire
close to or in the Fund’s target year.
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.
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, 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.
Underlying
Funds Risk. The risks
associated with a Fund include the risks related to each Underlying Fund in
which the Fund
invests.
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.
| Target
Date Retirement Funds
|
|
47 |
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
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”) 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.
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.
Smaller
Company Securities Risk. Securities
of companies with smaller market capitalizations tend to be more volatile
and less
liquid than those of larger companies.
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.
| 48 |
|
Target
Date Retirement Funds |
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 is no guarantee of future results. Current
month-end performance is available on the Fund’s
website at allspringglobal.com.
|
|
|
|
Calendar
Year Total Returns for Class R4 as of 12/31 each year
|
|
|
Highest
Quarter:
June
30,
2020 |
|
Lowest
Quarter:
March
31,
2020 |
|
Year-to-date
total return
as of March
31,
2022 is
-8.47% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2021 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
Since
inception |
|
Class
R4 |
11/30/2015
|
16.25% |
12.98% |
11.39% |
|
S&P
Target Date 2040 Index (reflects no deduction for
fees, expenses, or taxes)1
|
|
% |
% |
% |
|
Dynamic
Target 2040 Blended Index (reflects no deduction
for fees, expenses, or taxes)2
|
|
% |
- |
- |
| 1. |
The
S&P Target Date Index is designed as a benchmark for multi-asset class
portfolios with risk profiles that become more conservative
over time, corresponding to the target retirement date. This index is
representative of the investment opportunity available
to investors for the target date horizon, with asset class exposures
driven by a survey of available target date funds for that horizon.
You cannot invest directly in an
index. |
| 2. |
Source:
Allspring Funds Management, LLC. The Dynamic Target Blended Index is
designed as a benchmark for multi-asset class portfolios
with risk profiles that become more conservative over time, corresponding
to the target retirement date. The index weightings
among the major asset classes are adjusted annually. The inception date of
the index is September 21, 2018. You cannot
invest directly in an
index. |
| Target
Date Retirement Funds
|
|
49 |
Fund
Management
|
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
|
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Kandarp
R. Acharya, CFA, FRM,
Portfolio Manager / 2015
Petros
N. Bocray, CFA, FRM,
Portfolio Manager / 2016
Travis
L. Keshemberg, CFA, CIPM, FRM,
Portfolio Manager
/ 2022 |
Purchase
and Sale of Fund Shares
Class
R4 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
R4 shares also are generally available only to retirement plans where
plan level or omnibus accounts
are held on the books of the Fund. Class
R4 shares generally are not available to retail
accounts.
|
|
Institutions
Purchasing Fund Shares |
|
Minimum
Initial Investment
Class
R4: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment
Class
R4: 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.
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.
| 50 |
|
Target
Date Retirement Funds |
Dynamic
Target 2045 Fund Summary
Investment
Objective
The Fund
seeks total return over time, consistent with its strategic target
allocation.
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 |
|
|
|
|
|
Management
Fees |
0.10% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
1.34% |
|
Acquired
Fund Fees and Expenses |
0.13% |
|
Total
Annual Fund Operating Expenses |
1.57% |
|
Fee
Waivers |
(1.28)% |
|
Total
Annual Fund Operating Expenses After Fee Waivers2
|
% |
| 1. |
Expenses
have been adjusted as necessary from amounts incurred during the Fund’s
most recent fiscal year to reflect current fees and
expenses.
|
| 2. |
The
Manager has contractually committed through June
30, 2024, to
waive fees and/or reimburse expenses to the extent necessary to
cap Total Annual Fund Operating Expenses After Fee Waivers at 0.29%
for Class
R4. 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 |
$30 |
|
3
Years |
$236 |
|
5
Years |
$604 |
|
10
Years |
$1,642 |
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 73%
of the
average value of its portfolio.
| Target
Date Retirement Funds
|
|
51 |
Principal
Investment Strategies
The equity
Underlying Funds are each intended to provide exposure to a specific market
segment. Those segments include
U.S. large- and small-capitalization companies, and international (non-U.S.)
developed and emerging markets. The U.S.
large- and small-capitalization companies, international developed markets and
emerging markets allocations each seek
to add value above their respective broad market index, by employing a
systematic, rules based methodology
designed to build a portfolio of stocks that provides exposure to factors (or
characteristics) commonly tied to a
stock’s potential for enhanced risk-adjusted returns relative to the market.
Those factors include, but are not limited to,
value, quality, momentum, size, and low
volatility.
The fixed
income Underlying Funds provide diversified exposure across a wide range of
market sectors, including U.S. Government
obligations, investment grade corporate bonds, below investment grade bonds
(commonly known as “high yield
bonds” or “junk bonds”), other U.S. bond sectors (including mortgage- and
asset-backed securities), and emerging
markets foreign issues. The investment grade corporate bond allocation will be
managed to replicate the performance
of the Bloomberg U.S. Corporate Bond Index. The below investment grade bond
allocation will be managed to
replicate the performance of the Bloomberg U.S. High Yield 2% Issuer Capped Bond
Index. The U.S. aggregate
bond ex-corporate allocation, which includes mortgage- and asset-backed
securities, will be managed to replicate
the performance of the Bloomberg U.S. Aggregate ex- Corporate Index, a
traditional market-capitalization weighted
index designed to provide diversified exposure to the allocation. The emerging
markets bond allocation will be managed
to replicate the performance of the JP Morgan EMBI Global Diversified Index, an
index that deviates from a traditional
market capitalization weighting to provide more robust diversification across
its constituent countries.
The Fund is
primarily designed for investors expecting to retire and/or begin withdrawing
funds around its target date of 2045. As
the Fund’s time horizon to its target date shortens, it generally replaces some
of its equity holdings with fixed
income holdings in an attempt to reduce market risk and thereby become more
conservative in its asset allocation.
This reallocation occurs according to a predetermined “glide path,” which was
developed based on long-term
capital market return expectations, actuarial assumptions about life expectancy
and retirement, and assumptions
about investors’ risk tolerance. The reallocation continues as the Fund’s target
year approaches and for the first
ten years afterward. The Fund’s target year of 2045 serves as a guide to the
risk profile of the Fund, and your decision to
invest in a Allspring Dynamic Target Date Fund with a particular target year and
risk profile depends on your individual
risk tolerance, among other factors.
The Fund
will not reach its lowest strategic target allocation to equities until ten
years past the Fund’s target year. During the
ten-year period after the Fund’s target year, the Fund’s asset allocation will
increasingly resemble that of the Allspring
Dynamic Target Today Fund and at the end of the ten-year period, we will likely
combine it with the Allspring Dynamic
Target Today Fund.
The Fund
will incorporate a derivatives overlay strategy that contains three specific
risk management components: 1.) Tactical
Asset Allocation (TAA) Overlay, 2.) Volatility Management Overlay (VMO), and 3.)
Tail Risk Management (TRM). 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
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, 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. The VMO
seeks to keep the Fund’s short-term volatility in-line with its strategic
long-term target. The VMO uses quantitative
inputs and strives to decrease the portfolio’s effective equity exposure when
projected equity market volatility
is higher than average, and increasing the portfolio’s effective equity exposure
when projected equity market volatility
is lower than average. The VMO may increase exposures to a given asset class
under certain market conditions
while decreasing exposure during others.
3. 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
| 52 |
|
Target
Date Retirement Funds |
exposure
using futures. This component also systematically takes hedge profit by reducing
downside protection after a severe
portfolio decline.
At any
point, as a result of the utilization of the futures overlay and changes
otherwise implemented by the portfolio managers,
there may be significant divergences between the effective asset allocation of
the Fund and its strategic target
allocation.
The glide
path (as of the date of this prospectus) is detailed in the chart below. The
glide path visual depicts the strategic
equity allocation of the Allspring Dynamic Target Date Funds over time. At their
discretion, the Fund’s portfolio managers
may make changes to the Fund’s glide path and asset
allocation.
| Target
Date Retirement Funds
|
|
53 |
Portfolio
Asset Allocation
The
following table provides the Fund’s target allocations to various underlying
portfolios as of July 1, 2022.
|
|
|
|
|
|
|
|
Allspring
Factor Enhanced U.S. Large Cap Equity
Portfolio |
|
Allspring
Factor Enhanced International Equity
Portfolio |
|
Allspring
Factor Enhanced U.S. Small Cap Equity
Portfolio |
|
Allspring
Factor Enhanced Emerging Markets Equity
Portfolio |
|
Allspring
U.S. REIT Portfolio |
|
|
|
|
Allspring
Bloomberg US Aggregate ex-Corporate
Portfolio |
|
Allspring
Investment Grade Corporate Bond
Portfolio |
|
Allspring
Emerging Markets Bond
Portfolio |
|
Allspring
High Yield Corporate Bond
Portfolio |
|
Allspring
Strategic Retirement Bond Portfolio (includes both TIPs & Intermediate
Government
Bond allocations) |
|
| 1. |
Target
allocations may total more or less than 100% due to
rounding. |
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.
Target
Date Fund Risk. A Target
Date Fund cannot provide assurance that an investor’s investment in the Fund
will provide
income at, and through the years following, the target year in the Fund’s name
in amounts adequate to meet the
investor’s financial goals. In addition, the Fund is subject to the risk that
its strategy will not eliminate investment volatility
that could reduce the amount of funds available for an investor who begins to
withdraw funds or expects to retire
close to or in the Fund’s target year.
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.
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, 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.
Underlying
Funds Risk. The risks
associated with a Fund include the risks related to each Underlying Fund in
which the Fund
invests.
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.
| 54 |
|
Target
Date Retirement Funds |
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
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”) 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.
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.
Smaller
Company Securities Risk. Securities
of companies with smaller market capitalizations tend to be more volatile
and less
liquid than those of larger companies.
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.
| Target
Date Retirement Funds
|
|
55 |
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 is no guarantee of future results. Current
month-end performance is available on the Fund’s
website at allspringglobal.com.
|
|
|
|
Calendar
Year Total Returns for Class R4 as of 12/31 each year
|
|
|
Highest
Quarter:
June
30,
2020 |
|
Lowest
Quarter:
March
31,
2020 |
|
Year-to-date
total return
as of March
31,
2022 is
-8.44% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2021 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
Since
inception |
|
Class
R4 |
11/30/2015
|
17.45% |
13.32% |
11.70% |
|
S&P
Target Date 2045 Index (reflects no deduction for
fees, expenses, or taxes)1
|
|
% |
% |
% |
|
Dynamic
Target 2045 Blended Index (reflects no deduction
for fees, expenses, or taxes)2
|
|
% |
- |
- |
| 1. |
The
S&P Target Date Index is designed as a benchmark for multi-asset class
portfolios with risk profiles that become more conservative
over time, corresponding to the target retirement date. This index is
representative of the investment opportunity available
to investors for the target date horizon, with asset class exposures
driven by a survey of available target date funds for that horizon.
You cannot invest directly in an
index. |
| 2. |
Source:
Allspring Funds Management, LLC. The Dynamic Target Blended Index is
designed as a benchmark for multi-asset class portfolios
with risk profiles that become more conservative over time, corresponding
to the target retirement date. The index weightings
among the major asset classes are adjusted annually. The inception date of
the index is September 21, 2018. You cannot
invest directly in an
index. |
| 56 |
|
Target
Date Retirement Funds |
Fund
Management
|
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
|
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Kandarp
R. Acharya, CFA, FRM,
Portfolio Manager / 2015
Petros
N. Bocray, CFA, FRM,
Portfolio Manager / 2016
Travis
L. Keshemberg, CFA, CIPM, FRM,
Portfolio Manager
/ 2022 |
Purchase
and Sale of Fund Shares
Class
R4 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
R4 shares also are generally available only to retirement plans where
plan level or omnibus accounts
are held on the books of the Fund. Class
R4 shares generally are not available to retail
accounts.
|
|
Institutions
Purchasing Fund Shares |
|
Minimum
Initial Investment
Class
R4: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment
Class
R4: 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.
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.
| Target
Date Retirement Funds
|
|
57 |
Dynamic
Target 2050 Fund Summary
Investment
Objective
The Fund
seeks total return over time, consistent with its strategic target
allocation.
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 |
|
|
|
|
|
Management
Fees |
0.10% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
1.65% |
|
Acquired
Fund Fees and Expenses |
0.13% |
|
Total
Annual Fund Operating Expenses |
1.88% |
|
Fee
Waivers |
(1.59)% |
|
Total
Annual Fund Operating Expenses After Fee Waivers2
|
% |
| 1. |
Expenses
have been adjusted as necessary from amounts incurred during the Fund’s
most recent fiscal year to reflect current fees and
expenses.
|
| 2. |
The
Manager has contractually committed through June
30, 2024, to
waive fees and/or reimburse expenses to the extent necessary to
cap Total Annual Fund Operating Expenses After Fee Waivers at 0.29%
for Class
R4. 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 |
$30 |
|
3
Years |
$270 |
|
5
Years |
$709 |
|
10
Years |
$1,930 |
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 68%
of the
average value of its portfolio.
| 58 |
|
Target
Date Retirement Funds |
Principal
Investment Strategies
The equity
Underlying Funds are each intended to provide exposure to a specific market
segment. Those segments include
U.S. large- and small-capitalization companies, and international (non-U.S.)
developed and emerging markets. The U.S.
large- and small-capitalization companies, international developed markets and
emerging markets allocations each seek
to add value above their respective broad market index, by employing a
systematic, rules based methodology
designed to build a portfolio of stocks that provides exposure to factors (or
characteristics) commonly tied to a
stock’s potential for enhanced risk-adjusted returns relative to the market.
Those factors include, but are not limited to,
value, quality, momentum, size, and low
volatility.
The fixed
income Underlying Funds provide diversified exposure across a wide range of
market sectors, including U.S. Government
obligations, investment grade corporate bonds, below investment grade bonds
(commonly known as “high yield
bonds” or “junk bonds”), other U.S. bond sectors (including mortgage- and
asset-backed securities), and emerging
markets foreign issues. The investment grade corporate bond allocation will be
managed to replicate the performance
of the Bloomberg U.S. Corporate Bond Index. The below investment grade bond
allocation will be managed to
replicate the performance of the Bloomberg U.S. High Yield 2% Issuer Capped Bond
Index. The U.S. aggregate
bond ex-corporate allocation, which includes mortgage- and asset-backed
securities, will be managed to replicate
the performance of the Bloomberg U.S. Aggregate ex- Corporate Index, a
traditional market-capitalization weighted
index designed to provide diversified exposure to the allocation. The emerging
markets bond allocation will be managed
to replicate the performance of the JP Morgan EMBI Global Diversified Index, an
index that deviates from a traditional
market capitalization weighting to provide more robust diversification across
its constituent countries.
The Fund is
primarily designed for investors expecting to retire and/or begin withdrawing
funds around its target date of 2050. As
the Fund’s time horizon to its target date shortens, it generally replaces some
of its equity holdings with fixed
income holdings in an attempt to reduce market risk and thereby become more
conservative in its asset allocation.
This reallocation occurs according to a predetermined “glide path,” which was
developed based on long-term
capital market return expectations, actuarial assumptions about life expectancy
and retirement, and assumptions
about investors’ risk tolerance. The reallocation continues as the Fund’s target
year approaches and for the first
ten years afterward. The Fund’s target year of 2050 serves as a guide to the
risk profile of the Fund, and your decision to
invest in a Allspring Dynamic Target Date Fund with a particular target year and
risk profile depends on your individual
risk tolerance, among other factors.
The Fund
will not reach its lowest strategic target allocation to equities until ten
years past the Fund’s target year. During the
ten-year period after the Fund’s target year, the Fund’s asset allocation will
increasingly resemble that of the Allspring
Dynamic Target Today Fund and at the end of the ten-year period, we will likely
combine it with the Allspring Dynamic
Target Today Fund.
The Fund
will incorporate a derivatives overlay strategy that contains three specific
risk management components: 1.) Tactical
Asset Allocation (TAA) Overlay, 2.) Volatility Management Overlay (VMO), and 3.)
Tail Risk Management (TRM). 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
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, 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. The VMO
seeks to keep the Fund’s short-term volatility in-line with its strategic
long-term target. The VMO uses quantitative
inputs and strives to decrease the portfolio’s effective equity exposure when
projected equity market volatility
is higher than average, and increasing the portfolio’s effective equity exposure
when projected equity market volatility
is lower than average. The VMO may increase exposures to a given asset class
under certain market conditions
while decreasing exposure during others.
3. 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
| Target
Date Retirement Funds
|
|
59 |
exposure
using futures. This component also systematically takes hedge profit by reducing
downside protection after a severe
portfolio decline.
At any
point, as a result of the utilization of the futures overlay and changes
otherwise implemented by the portfolio managers,
there may be significant divergences between the effective asset allocation of
the Fund and its strategic target
allocation.
The glide
path (as of the date of this prospectus) is detailed in the chart below. The
glide path visual depicts the strategic
equity allocation of the Allspring Dynamic Target Date Funds over time. At their
discretion, the Fund’s portfolio managers
may make changes to the Fund’s glide path and asset
allocation.
| 60 |
|
Target
Date Retirement Funds |
Portfolio
Asset Allocation
The
following table provides the Fund’s target allocations to various underlying
portfolios as of July 1, 2022.
|
|
|
|
|
|
|
|
Allspring
Factor Enhanced U.S. Large Cap Equity
Portfolio |
|
Allspring
Factor Enhanced International Equity
Portfolio |
|
Allspring
Factor Enhanced U.S. Small Cap Equity
Portfolio |
|
Allspring
Factor Enhanced Emerging Markets Equity
Portfolio |
|
Allspring
U.S. REIT Portfolio |
|
|
|
|
Allspring
Bloomberg US Aggregate ex-Corporate
Portfolio |
|
Allspring
Investment Grade Corporate Bond
Portfolio |
|
Allspring
Emerging Markets Bond
Portfolio |
|
Allspring
High Yield Corporate Bond
Portfolio |
|
Allspring
Strategic Retirement Bond Portfolio (includes both TIPs &
Intermediate
Government Bond
allocations) |
|
| 1. |
Target
allocations may total more or less than 100% due to
rounding. |
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.
Target
Date Fund Risk. A Target
Date Fund cannot provide assurance that an investor’s investment in the Fund
will provide
income at, and through the years following, the target year in the Fund’s name
in amounts adequate to meet the
investor’s financial goals. In addition, the Fund is subject to the risk that
its strategy will not eliminate investment volatility
that could reduce the amount of funds available for an investor who begins to
withdraw funds or expects to retire
close to or in the Fund’s target year.
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.
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, 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.
Underlying
Funds Risk. The risks
associated with a Fund include the risks related to each Underlying Fund in
which the Fund
invests.
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.
| Target
Date Retirement Funds
|
|
61 |
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
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”) 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.
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.
Smaller
Company Securities Risk. Securities
of companies with smaller market capitalizations tend to be more volatile
and less
liquid than those of larger companies.
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.
| 62 |
|
Target
Date Retirement Funds |
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 is no guarantee of future results. Current
month-end performance is available on the Fund’s
website at allspringglobal.com.
|
|
|
|
Calendar
Year Total Returns for Class R4 as of 12/31 each year
|
|
|
Highest
Quarter:
December
31, 2020 |
|
Lowest
Quarter:
March
31,
2020 |
|
Year-to-date
total return
as of March
31,
2022 is
-8.59% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2021 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
Since
inception |
|
Class
R4 |
11/30/2015
|
18.45% |
13.50% |
11.85% |
|
S&P
Target Date 2050 Index (reflects no deduction for
fees, expenses, or taxes)1
|
|
% |
% |
% |
|
Dynamic
Target 2050 Blended Index (reflects no deduction
for fees, expenses, or taxes)2
|
|
% |
- |
- |
| 1. |
The
S&P Target Date Index is designed as a benchmark for multi-asset class
portfolios with risk profiles that become more conservative
over time, corresponding to the target retirement date. This index is
representative of the investment opportunity available
to investors for the target date horizon, with asset class exposures
driven by a survey of available target date funds for that horizon.
You cannot invest directly in an
index. |
| 2. |
Source:
Allspring Funds Management, LLC. The Dynamic Target Blended Index is
designed as a benchmark for multi-asset class portfolios
with risk profiles that become more conservative over time, corresponding
to the target retirement date. The index weightings
among the major asset classes are adjusted annually. The inception date of
the index is September 21, 2018. You cannot
invest directly in an
index. |
| Target
Date Retirement Funds
|
|
63 |
Fund
Management
|
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
|
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Kandarp
R. Acharya, CFA, FRM,
Portfolio Manager / 2015
Petros
N. Bocray, CFA, FRM,
Portfolio Manager / 2016
Travis
L. Keshemberg, CFA, CIPM, FRM,
Portfolio Manager
/ 2022 |
Purchase
and Sale of Fund Shares
Class
R4 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
R4 shares also are generally available only to retirement plans where
plan level or omnibus accounts
are held on the books of the Fund. Class
R4 shares generally are not available to retail
accounts.
|
|
Institutions
Purchasing Fund Shares |
|
Minimum
Initial Investment
Class
R4: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment
Class
R4: 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.
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.
| 64 |
|
Target
Date Retirement Funds |
Dynamic
Target 2055 Fund Summary
Investment
Objective
The Fund
seeks total return over time, consistent with its strategic target
allocation.
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 |
|
|
|
|
|
Management
Fees |
0.10% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
1.58% |
|
Acquired
Fund Fees and Expenses |
0.13% |
|
Total
Annual Fund Operating Expenses |
1.81% |
|
Fee
Waivers |
(1.52)% |
|
Total
Annual Fund Operating Expenses After Fee Waivers2
|
% |
| 1. |
Expenses
have been adjusted as necessary from amounts incurred during the Fund’s
most recent fiscal year to reflect current fees and
expenses.
|
| 2. |
The
Manager has contractually committed through June
30, 2024, to
waive fees and/or reimburse expenses to the extent necessary to
cap Total Annual Fund Operating Expenses After Fee Waivers at 0.29%
for Class
R4. 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 |
$30 |
|
3
Years |
$262 |
|
5
Years |
$685 |
|
10
Years |
$1,866 |
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 68%
of the
average value of its portfolio.
| Target
Date Retirement Funds
|
|
65 |
Principal
Investment Strategies
The equity
Underlying Funds are each intended to provide exposure to a specific market
segment. Those segments include
U.S. large- and small-capitalization companies, and international (non-U.S.)
developed and emerging markets. The U.S.
large- and small-capitalization companies, international developed markets and
emerging markets allocations each seek
to add value above their respective broad market index, by employing a
systematic, rules based methodology
designed to build a portfolio of stocks that provides exposure to factors (or
characteristics) commonly tied to a
stock’s potential for enhanced risk-adjusted returns relative to the market.
Those factors include, but are not limited to,
value, quality, momentum, size, and low
volatility.
The fixed
income Underlying Funds provide diversified exposure across a wide range of
market sectors, including U.S. Government
obligations, investment grade corporate bonds, below investment grade bonds
(commonly known as “high yield
bonds” or “junk bonds”), other U.S. bond sectors (including mortgage- and
asset-backed securities), and emerging
markets foreign issues. The investment grade corporate bond allocation will be
managed to replicate the performance
of the Bloomberg U.S. Corporate Bond Index. The below investment grade bond
allocation will be managed to
replicate the performance of the Bloomberg U.S. High Yield 2% Issuer Capped Bond
Index. The U.S. aggregate
bond ex-corporate allocation, which includes mortgage- and asset-backed
securities, will be managed to replicate
the performance of the Bloomberg U.S. Aggregate ex- Corporate Index, a
traditional market-capitalization weighted
index designed to provide diversified exposure to the allocation. The emerging
markets bond allocation will be managed
to replicate the performance of the JP Morgan EMBI Global Diversified Index, an
index that deviates from a traditional
market capitalization weighting to provide more robust diversification across
its constituent countries.
The Fund is
primarily designed for investors expecting to retire and/or begin withdrawing
funds around its target date of 2055. As
the Fund’s time horizon to its target date shortens, it generally replaces some
of its equity holdings with fixed
income holdings in an attempt to reduce market risk and thereby become more
conservative in its asset allocation.
This reallocation occurs according to a predetermined “glide path,” which was
developed based on long-term
capital market return expectations, actuarial assumptions about life expectancy
and retirement, and assumptions
about investors’ risk tolerance. The reallocation continues as the Fund’s target
year approaches and for the first
ten years afterward. The Fund’s target year of 2055 serves as a guide to the
risk profile of the Fund, and your decision to
invest in a Allspring Dynamic Target Date Fund with a particular target year and
risk profile depends on your individual
risk tolerance, among other factors.
The Fund
will not reach its lowest strategic target allocation to equities until ten
years past the Fund’s target year. During the
ten-year period after the Fund’s target year, the Fund’s asset allocation will
increasingly resemble that of the Allspring
Dynamic Target Today Fund and at the end of the ten-year period, we will likely
combine it with the Allspring Dynamic
Target Today Fund.
The Fund
will incorporate a derivatives overlay strategy that contains three specific
risk management components: 1.) Tactical
Asset Allocation (TAA) Overlay, 2.) Volatility Management Overlay (VMO), and 3.)
Tail Risk Management (TRM). 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
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, 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. The VMO
seeks to keep the Fund’s short-term volatility in-line with its strategic
long-term target. The VMO uses quantitative
inputs and strives to decrease the portfolio’s effective equity exposure when
projected equity market volatility
is higher than average, and increasing the portfolio’s effective equity exposure
when projected equity market volatility
is lower than average. The VMO may increase exposures to a given asset class
under certain market conditions
while decreasing exposure during others.
3. 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
| 66 |
|
Target
Date Retirement Funds |
exposure
using futures. This component also systematically takes hedge profit by reducing
downside protection after a severe
portfolio decline.
At any
point, as a result of the utilization of the futures overlay and changes
otherwise implemented by the portfolio managers,
there may be significant divergences between the effective asset allocation of
the Fund and its strategic target
allocation.
The glide
path (as of the date of this prospectus) is detailed in the chart below. The
glide path visual depicts the strategic
equity allocation of the Allspring Dynamic Target Date Funds over time. At their
discretion, the Fund’s portfolio managers
may make changes to the Fund’s glide path and asset
allocation.
| Target
Date Retirement Funds
|
|
67 |
Portfolio
Asset Allocation
The
following table provides the Fund’s target allocations to various underlying
portfolios as of July 1, 2022.
|
|
|
|
|
|
|
|
Allspring
Factor Enhanced U.S. Large Cap Equity
Portfolio |
|
Allspring
Factor Enhanced International Equity
Portfolio |
|
Allspring
Factor Enhanced U.S. Small Cap Equity
Portfolio |
|
Allspring
Factor Enhanced Emerging Markets Equity
Portfolio |
|
Allspring
U.S. REIT Portfolio |
|
|
|
|
Allspring
Bloomberg US Aggregate ex-Corporate
Portfolio |
|
Allspring
Investment Grade Corporate Bond
Portfolio |
|
Allspring
Emerging Markets Bond
Portfolio |
|
Allspring
High Yield Corporate Bond
Portfolio |
|
Allspring
Strategic Retirement Bond Portfolio (includes both TIPs &
Intermediate
Government Bond
allocations) |
|
| 1. |
Target
allocations may total more or less than 100% due to
rounding. |
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.
Target
Date Fund Risk. A Target
Date Fund cannot provide assurance that an investor’s investment in the Fund
will provide
income at, and through the years following, the target year in the Fund’s name
in amounts adequate to meet the
investor’s financial goals. In addition, the Fund is subject to the risk that
its strategy will not eliminate investment volatility
that could reduce the amount of funds available for an investor who begins to
withdraw funds or expects to retire
close to or in the Fund’s target year.
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.
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, 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.
Underlying
Funds Risk. The risks
associated with a Fund include the risks related to each Underlying Fund in
which the Fund
invests.
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.
| 68 |
|
Target
Date Retirement Funds |
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
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”) 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.
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.
Smaller
Company Securities Risk. Securities
of companies with smaller market capitalizations tend to be more volatile
and less
liquid than those of larger companies.
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.
| Target
Date Retirement Funds
|
|
69 |
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 is no guarantee of future results. Current
month-end performance is available on the Fund’s
website at allspringglobal.com.
|
|
|
|
Calendar
Year Total Returns for Class R4 as of 12/31 each year
|
|
|
Highest
Quarter:
December
31, 2020 |
|
Lowest
Quarter:
March
31,
2020 |
|
Year-to-date
total return
as of March
31,
2022 is
-8.43% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2021 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
Since
inception |
|
Class
R4 |
11/30/2015
|
18.42% |
13.56% |
11.90% |
|
S&P
Target Date 2055 Index (reflects no deduction for
fees, expenses, or taxes)1
|
|
% |
% |
% |
|
Dynamic
Target 2055 Blended Index (reflects no deduction
for fees, expenses, or taxes)2
|
|
% |
- |
- |
| 1. |
The
S&P Target Date Index is designed as a benchmark for multi-asset class
portfolios with risk profiles that become more conservative
over time, corresponding to the target retirement date. This index is
representative of the investment opportunity available
to investors for the target date horizon, with asset class exposures
driven by a survey of available target date funds for that horizon.
You cannot invest directly in an
index. |
| 2. |
Source:
Allspring Funds Management, LLC. The Dynamic Target Blended Index is
designed as a benchmark for multi-asset class portfolios
with risk profiles that become more conservative over time, corresponding
to the target retirement date. The index weightings
among the major asset classes are adjusted annually. The inception date of
the index is September 21, 2018. You cannot
invest directly in an
index. |
| 70 |
|
Target
Date Retirement Funds |
Fund
Management
|
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
|
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Kandarp
R. Acharya, CFA, FRM,
Portfolio Manager / 2015
Petros
N. Bocray, CFA, FRM,
Portfolio Manager / 2016
Travis
L. Keshemberg, CFA, CIPM, FRM,
Portfolio Manager
/ 2022 |
Purchase
and Sale of Fund Shares
Class
R4 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
R4 shares also are generally available only to retirement plans where
plan level or omnibus accounts
are held on the books of the Fund. Class
R4 shares generally are not available to retail
accounts.
|
|
Institutions
Purchasing Fund Shares |
|
Minimum
Initial Investment
Class
R4: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment
Class
R4: 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.
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.
| Target
Date Retirement Funds
|
|
71 |
Dynamic
Target 2060 Fund Summary
Investment
Objective
The Fund
seeks total return over time, consistent with its strategic target
allocation.
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 |
|
|
|
|
|
Management
Fees |
0.10% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
1.70% |
|
Acquired
Fund Fees and Expenses |
0.13% |
|
Total
Annual Fund Operating Expenses |
1.93% |
|
Fee
Waivers |
(1.64)% |
|
Total
Annual Fund Operating Expenses After Fee Waivers2
|
% |
| 1. |
Expenses
have been adjusted as necessary from amounts incurred during the Fund’s
most recent fiscal year to reflect current fees and
expenses.
|
| 2. |
The
Manager has contractually committed through June
30, 2024, to
waive fees and/or reimburse expenses to the extent necessary to
cap Total Annual Fund Operating Expenses After Fee Waivers at 0.29%
for Class
R4. 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 |
$30 |
|
3
Years |
$276 |
|
5
Years |
$725 |
|
10
Years |
$1,976 |
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 68%
of the
average value of its portfolio.
| 72 |
|
Target
Date Retirement Funds |
Principal
Investment Strategies
The equity
Underlying Funds are each intended to provide exposure to a specific market
segment. Those segments include
U.S. large- and small-capitalization companies, and international (non-U.S.)
developed and emerging markets. The U.S.
large- and small-capitalization companies, international developed markets and
emerging markets allocations each seek
to add value above their respective broad market index, by employing a
systematic, rules based methodology
designed to build a portfolio of stocks that provides exposure to factors (or
characteristics) commonly tied to a
stock’s potential for enhanced risk-adjusted returns relative to the market.
Those factors include, but are not limited to,
value, quality, momentum, size, and low
volatility.
The fixed
income Underlying Funds provide diversified exposure across a wide range of
market sectors, including U.S. Government
obligations, investment grade corporate bonds, below investment grade bonds
(commonly known as “high yield
bonds” or “junk bonds”), other U.S. bond sectors (including mortgage- and
asset-backed securities), and emerging
markets foreign issues. The investment grade corporate bond allocation will be
managed to replicate the performance
of the Bloomberg U.S. Corporate Bond Index. The below investment grade bond
allocation will be managed to
replicate the performance of the Bloomberg U.S. High Yield 2% Issuer Capped Bond
Index. The U.S. aggregate
bond ex-corporate allocation, which includes mortgage- and asset-backed
securities, will be managed to replicate
the performance of the Bloomberg U.S. Aggregate ex- Corporate Index, a
traditional market-capitalization weighted
index designed to provide diversified exposure to the allocation. The emerging
markets bond allocation will be managed
to replicate the performance of the JP Morgan EMBI Global Diversified Index, an
index that deviates from a traditional
market capitalization weighting to provide more robust diversification across
its constituent countries.
The Fund is
primarily designed for investors expecting to retire and/or begin withdrawing
funds around its target date of 2060. As
the Fund’s time horizon to its target date shortens, it generally replaces some
of its equity holdings with fixed
income holdings in an attempt to reduce market risk and thereby become more
conservative in its asset allocation.
This reallocation occurs according to a predetermined “glide path,” which was
developed based on long-term
capital market return expectations, actuarial assumptions about life expectancy
and retirement, and assumptions
about investors’ risk tolerance. The reallocation continues as the Fund’s target
year approaches and for the first
ten years afterward. The Fund’s target year of 2060 serves as a guide to the
risk profile of the Fund, and your decision to
invest in a Allspring Dynamic Target Date Fund with a particular target year and
risk profile depends on your individual
risk tolerance, among other factors.
The Fund
will not reach its lowest strategic target allocation to equities until ten
years past the Fund’s target year. During the
ten-year period after the Fund’s target year, the Fund’s asset allocation will
increasingly resemble that of the Allspring
Dynamic Target Today Fund and at the end of the ten-year period, we will likely
combine it with the Allspring Dynamic
Target Today Fund.
The Fund
will incorporate a derivatives overlay strategy that contains three specific
risk management components: 1.) Tactical
Asset Allocation (TAA) Overlay, 2.) Volatility Management Overlay (VMO), and 3.)
Tail Risk Management (TRM). 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
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, 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. The VMO
seeks to keep the Fund’s short-term volatility in-line with its strategic
long-term target. The VMO uses quantitative
inputs and strives to decrease the portfolio’s effective equity exposure when
projected equity market volatility
is higher than average, and increasing the portfolio’s effective equity exposure
when projected equity market volatility
is lower than average. The VMO may increase exposures to a given asset class
under certain market conditions
while decreasing exposure during others.
3. 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
| Target
Date Retirement Funds
|
|
73 |
exposure
using futures. This component also systematically takes hedge profit by reducing
downside protection after a severe
portfolio decline.
At any
point, as a result of the utilization of the futures overlay and changes
otherwise implemented by the portfolio managers,
there may be significant divergences between the effective asset allocation of
the Fund and its strategic target
allocation.
The glide
path (as of the date of this prospectus) is detailed in the chart below. The
glide path visual depicts the strategic
equity allocation of the Allspring Dynamic Target Date Funds over time. At their
discretion, the Fund’s portfolio managers
may make changes to the Fund’s glide path and asset
allocation.
| 74 |
|
Target
Date Retirement Funds |
Portfolio
Asset Allocation
The
following table provides the Fund’s target allocations to various underlying
portfolios as of July 1, 2022.
|
|
|
|
|
|
|
|
Allspring
Factor Enhanced U.S. Large Cap Equity
Portfolio |
|
Allspring
Factor Enhanced International Equity
Portfolio |
|
Allspring
Factor Enhanced U.S. Small Cap Equity
Portfolio |
|
Allspring
Factor Enhanced Emerging Markets Equity
Portfolio |
|
Allspring
U.S. REIT Portfolio |
|
|
|
|
Allspring
Bloomberg US Aggregate ex-Corporate
Portfolio |
|
Allspring
Investment Grade Corporate Bond
Portfolio |
|
Allspring
Emerging Markets Bond
Portfolio |
|
Allspring
High Yield Corporate Bond
Portfolio |
|
Allspring
Strategic Retirement Bond Portfolio (includes both TIPs &
Intermediate
Government Bond
allocations) |
|
| 1. |
Target
allocations may total more or less than 100% due to
rounding. |
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.
Target
Date Fund Risk. A Target
Date Fund cannot provide assurance that an investor’s investment in the Fund
will provide
income at, and through the years following, the target year in the Fund’s name
in amounts adequate to meet the
investor’s financial goals. In addition, the Fund is subject to the risk that
its strategy will not eliminate investment volatility
that could reduce the amount of funds available for an investor who begins to
withdraw funds or expects to retire
close to or in the Fund’s target year.
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.
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, 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.
Underlying
Funds Risk. The risks
associated with a Fund include the risks related to each Underlying Fund in
which the Fund
invests.
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.
| Target
Date Retirement Funds
|
|
75 |
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
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”) 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.
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.
Smaller
Company Securities Risk. Securities
of companies with smaller market capitalizations tend to be more volatile
and less
liquid than those of larger companies.
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.
| 76 |
|
Target
Date Retirement Funds |
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 is no guarantee of future results. Current
month-end performance is available on the Fund’s
website at allspringglobal.com.
|
|
|
|
Calendar
Year Total Returns for Class R4 as of 12/31 each year
|
|
|
Highest
Quarter:
December
31, 2020 |
|
Lowest
Quarter:
March
31,
2020 |
|
Year-to-date
total return
as of March
31,
2022 is
-8.32% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2021 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
Since
inception |
|
Class
R4 |
11/30/2015
|
18.57% |
13.49% |
11.87% |
|
S&P
Target Date 2055 Index (reflects no deduction for
fees, expenses, or taxes)1
|
|
% |
% |
% |
|
S&P
Target Date 2060+ Index (reflects no deduction for
fees, expenses, or taxes)1,2
|
|
% |
% |
- |
|
Dynamic
Target 2060 Blended Index (reflects no deduction
for fees, expenses, or taxes)3
|
|
% |
- |
- |
| 1. |
The
S&P Target Date Index is designed as a benchmark for multi-asset class
portfolios with risk profiles that become more conservative
over time, corresponding to the target retirement date. This index is
representative of the investment opportunity available
to investors for the target date horizon, with asset class exposures
driven by a survey of available target date funds for that horizon.
You cannot invest directly in an
index. |
| 2. |
The
inception date of the index is May 31,
2016. |
| 3. |
Source:
Allspring Funds Management, LLC. The Dynamic Target Blended Index is
designed as a benchmark for multi-asset class portfolios
with risk profiles that become more conservative over time, corresponding
to the target retirement date. The index weightings
among the major asset classes are adjusted annually. The inception date of
the index is September 21, 2018. You cannot
invest directly in an
index. |
| Target
Date Retirement Funds
|
|
77 |
Fund
Management
|
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
|
Allspring
Funds Management,
LLC |
Allspring
Global Investments,
LLC |
Kandarp
R. Acharya, CFA, FRM,
Portfolio Manager / 2015
Petros
N. Bocray, CFA, FRM,
Portfolio Manager / 2016
Travis
L. Keshemberg, CFA, CIPM, FRM,
Portfolio Manager
/ 2022 |
Purchase
and Sale of Fund Shares
Class
R4 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
R4 shares also are generally available only to retirement plans where
plan level or omnibus accounts
are held on the books of the Fund. Class
R4 shares generally are not available to retail
accounts.
|
|
Institutions
Purchasing Fund Shares |
|
Minimum
Initial Investment
Class
R4: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment
Class
R4: 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.
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.
| 78 |
|
Target
Date Retirement Funds |
Details
About the Funds
Dynamic
Target Date Funds
Investment
Objective
Each Fund
seeks total return over time, consistent with its strategic target
allocation.
Each Fund’s
Board of Trustees can change these investment objectives without a shareholder
vote.
Principal
Investment Strategies
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.
Each Fund
is a fund of funds that invests in various master portfolios (“Underlying
Funds”), which in turn, invest in a combination
of securities to gain exposure to equity and fixed income asset classes. Each
Fund, except the Dynamic Target
Today Fund, gradually reduces its potential market risk exposures over time by
generally re-allocating its assets among these
asset classes, consistent with increasingly conservative strategic target
allocations. The Dynamic Target Today Fund
does not decrease its equity holdings in an attempt to become increasingly
conservative over time, but rather
maintains a strategic target allocation to equity and fixed income securities
(including money market instruments)
in the weights of 40% and 60%, respectively.
The equity
Underlying Funds are each intended to provide exposure to a specific market
segment. Those segments include
U.S. large- and small-capitalization companies, international (non-U.S.)
developed and emerging markets, and real
estate. The U.S. large- and small-capitalization companies, international
developed markets and emerging markets allocations
each seek to add value above their respective broad market index, by employing a
systematic, rules based methodology
designed to build a portfolio of stocks that provides exposure to factors (or
characteristics) commonly tied to a
stock’s potential for enhanced risk-adjusted returns relative to the market.
Those factors include, but are not limited to,
value, quality, momentum, size, and low volatility. The real estate allocation
invests in real estate investment trusts
(REITs) and is managed to replicate the performance of the Dow Jones U.S. Select
REIT index, a float-adjusted market-capitalization
weighted index designed to serve as a proxy for direct real estate investment.
Currently, only the Dynamic
Target Today Fund, the Dynamic Target 2015 Fund, the Dynamic Target 2020 Fund,
the Dynamic Target 2025 Fund and
the Dynamic Target 2030 Fund have an allocation to real estate. Each remaining
Fund is expected to add a real estate
allocation as it moves along the glide path.
The fixed
income Underlying Funds provide diversified exposure across a wide range of
market sectors, including U.S. Government
obligations (including Treasury inflation-protected securities, or TIPS),
investment grade corporate bonds, below
investment grade bonds (commonly known as “high yield bonds” or “junk bonds”),
other U.S. bond sectors (including
mortgage- and asset-backed securities), and emerging markets foreign issues. The
inflation-protected Treasury
and intermediate-term government allocations will be managed to replicate the
performance of the Bloomberg
U.S. Treasury Inflation-Linked 1-10 Year Bond Index and the Bloomberg U.S.
Government Intermediate Bond Index,
respectively, each a traditional market-capitalization weighted index designed
to provide diversified exposure to their
respective allocation. Currently, only the Dynamic Target Today Fund, the
Dynamic Target 2015 Fund, the Dynamic
Target 2020 Fund, the Dynamic Target 2025 Fund and the Dynamic Target 2030 Fund
have inflation-protected Treasury
and intermediate-term government allocations. Each remaining Fund is expected to
add such allocations as it moves along
the glide path.
The
investment grade corporate bond allocation will be managed to replicate the
performance of the Bloomberg U.S. Corporate
Bond Index. The below investment grade bond allocation will be managed to
replicate the performance of the
Bloomberg U.S. High Yield 2% Issuer Capped Bond Index. The U.S. aggregate bond
ex-corporate allocation, which includes
mortgage- and asset-backed securities, will be managed to replicate the
performance of the Bloomberg U.S. Aggregate
ex- Corporate Index, a traditional market-capitalization weighted index designed
to provide diversified exposure to
the allocation. The emerging markets bond allocation will be managed to
replicate the performance of the JP Morgan
EMBI Global Diversified Index, an index that deviates from a traditional market
capitalization weighting to provide
more robust diversification across its constituent countries.
With
respect to the Dynamic Target Today Fund, the “Today” designation in the Fund’s
name is meant to indicate that the Fund is
primarily designed for investors either in retirement and/or currently
withdrawing funds from their investments.
Each other Fund is primarily designed for investors expecting to retire and/or
begin withdrawing funds
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around the
target year designated in the Fund’s name. As the Fund’s time horizon to its
target date shortens, it generally
replaces some of its equity holdings with fixed income holdings in an attempt to
reduce market risk and thereby
become more conservative in its asset allocation. This reallocation occurs
according to a predetermined “glide path,”
which was developed based on long-term capital market return expectations,
actuarial assumptions about life expectancy
and retirement, and assumptions about investors’ risk tolerance. The
reallocation continues as the Fund’s target year
approaches and for the first ten years afterward. The Fund’s target year serves
as a guide to the risk profile of the
Fund, and your decision to invest in a Allspring Dynamic Target Date Fund with a
particular target year and risk profile
depends on your individual risk tolerance, among other factors.
Each Fund,
except the Dynamic Target Today Fund, will not reach its lowest strategic target
allocation to equities until ten years
past the Fund’s target year. During the ten-year period after the Fund’s target
year, the Fund’s asset allocation will
increasingly resemble that of the Dynamic Target Today Fund and at the end of
the ten-year period, we will likely combine it
with the Dynamic Target Today Fund.
Each Fund
will incorporate a derivatives overlay strategy that contains three specific
risk management components: 1.) Tactical
Asset Allocation (TAA) Overlay, 2.) Volatility Management Overlay (VMO), and 3.)
Tail Risk Management (TRM).
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
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, 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. The VMO
seeks to keep the Fund’s short-term volatility in-line with its strategic long
term target. The VMO uses quantitative
inputs and strives to decrease the portfolio’s effective equity exposure when
projected equity market volatility
is higher than average, and increasing the portfolio’s effective equity exposure
when projected equity market volatility
is lower than average. The VMO may increase exposures to a given asset class
under certain market conditions
while decreasing exposure during others.
3. 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.
At any
point, as a result of the utilization of the futures overlay and changes
otherwise implemented by the portfolio managers,
there may be significant divergences between the effective asset allocation of
the Fund and its strategic target
allocation.
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Principal
Investment Risks
The
principal value of an investor’s investment in a Fund is not guaranteed at any
time, including in the target year designated
in the Fund’s name. In addition, each Fund is primarily subject to the risks
mentioned below to the extent that each
Fund is exposed to these risks depending on its asset allocation and target
year:
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.
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81 |
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
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, 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
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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”) 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.
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, 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
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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.
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.
Target
Date Fund Risk. A Target
Date Fund cannot provide assurance that an investor’s investment in the Fund
will provide
income at, and through the years following, the target year in the Fund’s name
in amounts adequate to meet the
investor’s financial goals. This risk is greater for an investor who begins to
withdraw a portion or all of his or her investment
in the Fund significantly before or after the Fund’s target year. In addition,
the Fund is subject to the risk that its
strategy will not eliminate investment volatility that could reduce the amount
of funds available for an investor who begins
to withdraw funds or expects to retire close to or in the Fund’s target
year.
Underlying
Funds Risk. The risks
associated with a Fund include the risks related to each Underlying Fund in
which the Fund
invests. To the extent that an Underlying Fund actively trades its securities,
the Fund will experience the consequences
of a higher-than-average portfolio turnover rate, such as increased trading
expenses and higher short-term
capital gains. Investments in the Fund result in your incurring higher expenses
than if you were to invest directly in
the Underlying Funds in which the Fund invests.
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.
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Portfolio
Holdings Information
A
description of the Allspring
Funds’ policies and procedures with respect to disclosure of the Allspring
Funds’ portfolio
holdings is available in the Funds’
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.
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. 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.
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85 |
Management
of the Funds
The
Manager
Allspring
Funds Management, LLC (“Allspring
Funds Management”), headquartered at 525 Market Street, San Francisco,
CA 94105, 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 Funds’
performance, including relative to peer
funds, and monitor the Funds’
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 Funds’
operations; developing and implementing
procedures for monitoring compliance with regulatory requirements and compliance
with the Funds’
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 Funds’ 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 August
31st.
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 |
|
Dynamic
Target Today Fund |
0.00% |
|
Dynamic
Target 2015 Fund |
0.00% |
|
Dynamic
Target 2020 Fund |
0.00% |
|
Dynamic
Target 2025 Fund |
0.00% |
|
Dynamic
Target 2030 Fund |
0.00% |
|
Dynamic
Target 2035 Fund |
0.00% |
|
Dynamic
Target 2040 Fund |
0.00% |
|
Dynamic
Target 2045 Fund |
0.00% |
|
Dynamic
Target 2050 Fund |
0.00% |
|
Dynamic
Target 2055 Fund |
0.00% |
|
Dynamic
Target 2060 Fund |
0.00% |
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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 its
services by Allspring
Funds Management from the fees Allspring
Funds Management receives
for its services as investment 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 525
Market Street, San
Francisco, CA 94105. 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 |
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. Prior to joining Allspring Investments, Mr. Acharya led the
Advanced
Analytics and Quantitative Research Group at Wells Fargo Wealth
Management,
where he also led the development and implementation of quantitative
tactical allocation models as a member of the firm’s Asset Allocation
Committee. |
|
Petros
N. Bocray, CFA, FRM |
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.
Prior to joining the Multi-Asset Solutions team, he held a similar role
with the
Quantitative Strategies group at Allspring Investments where he co-managed
several
of the team’s portfolios. |
|
Travis
L. Keshemberg, CFA, CIPM,
FRM |
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. |
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.
| Target
Date Retirement Funds
|
|
87 |
Account
Information
Share
Class Eligibility
Class R4
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 R4 shares also are generally available only to retirement plans
where plan level or omnibus accounts
are held on the books of the Fund. Class R4 shares generally are not available
to retail accounts.
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 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.
|
|
|
|
|
Class
R4 |
|
Initial
Sales Charge |
|
None |
|
Contingent
Deferred Sales Charge (CDSC) |
|
None |
|
Ongoing
Distribution (12b-1) Fees |
|
None |
|
Shareholder
Servicing Fee |
|
0.10% |
Compensation
to Financial Professionals and Intermediaries
Shareholder
Servicing Plan
Each Fund
has adopted a shareholder servicing plan (“Servicing Plan”). The Servicing Plan
authorizes the Fund to enter into
agreements with the Fund’s distributor, manager, or any of their affiliates to
provide or engage other entities to provide
certain shareholder services, including establishing and maintaining shareholder
accounts, processing and verifying
purchase,
redemption and exchange transactions, and providing such other shareholder
liaison or related services as
may reasonably be requested. Under the Servicing Plan, fees are paid up to the
following amounts:
|
|
|
|
Fund
|
|
Class
R4 |
|
Dynamic
Target Today Fund |
|
0.10% |
|
Dynamic
Target 2015 Fund |
|
0.10% |
|
Dynamic
Target 2020 Fund |
|
0.10% |
|
Dynamic
Target 2025 Fund |
|
0.10% |
|
Dynamic
Target 2030 Fund |
|
0.10% |
|
Dynamic
Target 2035 Fund |
|
0.10% |
|
Dynamic
Target 2040 Fund |
|
0.10% |
|
Dynamic
Target 2045 Fund |
|
0.10% |
|
Dynamic
Target 2050 Fund |
|
0.10% |
|
Dynamic
Target 2055 Fund |
|
0.10% |
|
Dynamic
Target 2060 Fund |
|
0.10% |
Additional
Payments 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
| 88 |
|
Target
Date Retirement Funds |
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 allspringglobal.com.
Buying
and Selling Fund Shares
Eligible
retirement plans may make Class
R4 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. |
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. |
| Target
Date Retirement Funds
|
|
89 |
|
|
|
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. |
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
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.
| 90 |
|
Target
Date Retirement Funds |
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, 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.
| Target
Date Retirement Funds
|
|
91 |
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.
| 92 |
|
Target
Date Retirement Funds |
Distributions
The Funds
generally make distributions of any investment income, and any realized net
capital gains at least annually. Please
contact your institution for distribution options. Please note, distributions
have the effect of reducing the NAV per share
by the amount distributed.
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.
| Target
Date Retirement Funds
|
|
93 |
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.
| 94 |
|
Target
Date Retirement Funds |
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 Funds’
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.
Dynamic
Target Today Fund
For a share
outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended February 28 |
|
Year
ended May 31 |
|
Class
R4 |
|
2022 |
|
2021 |
|
20201
|
|
20192
|
|
2018 |
|
2017 |
|
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
return3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
| * |
Ratios
include net expenses allocated from the affiliated Master Portfolios which
were as follows:
Year
ended February 28,
2022 0.08%
Year
ended February 28,
2021 0.08%
Year
ended February 29,
2020 0.11%
Year
ended February 28, 20192
0.11% |
| ^
|
Ratios
do not include net expenses allocated from the affiliated Master
Portfolios. Including annualized net expenses allocated from the
affiliated Master Portfolios,
the expense ratios would be increased by the following
amounts:
Year
ended May 31, 2018
0.10%
Year
ended May 31, 2017
0.10% |
| 2 |
For
the nine months ended February 28, 2019. The Fund changed its fiscal year
end from May 31 to February 28, effective February 28,
2019. |
| 3 |
Returns
for periods of less than one year are not
annualized. |
| 4 |
Portfolio
turnover rate is calculated by multiplying the Fund’s ownership percentage
in each respective affiliated Master Portfolio by the corresponding
affiliated
Master Portfolio’s purchases and sales. These purchase and sale amounts
are aggregated with any direct purchases and sales and included in the
portfolio
turnover calculation. |
| Target
Date Retirement Funds
|
|
95 |
Dynamic
Target 2015 Fund
For a share
outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended February 28 |
|
Year
ended May 31 |
|
Class
R4 |
|
2022 |
|
2021 |
|
20201
|
|
20192
|
|
2018 |
|
2017 |
|
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
return3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
| * |
Ratios
include net expenses allocated from the affiliated Master Portfolios which
were as follows:
Year
ended February 28,
2022 0.08%
Year
ended February 28,
2021 0.09%
Year
ended February 29,
2020 0.12%
Year
ended February 28, 20192
0.11% |
| ^
|
Ratios
do not include net expenses allocated from the affiliated Master
Portfolios. Including annualized net expenses allocated from the
affiliated Master Portfolios,
the expense ratios would be increased by the following
amounts:
Year
ended May 31, 2018
0.09%
Year
ended May 31, 2017
0.10% |
| 2 |
For
the nine months ended February 28, 2019. The Fund changed its fiscal year
end from May 31 to February 28, effective February 28,
2019. |
| 3 |
Returns
for periods of less than one year are not
annualized. |
| 4 |
Portfolio
turnover rate is calculated by multiplying the Fund’s ownership percentage
in each respective affiliated Master Portfolio by the corresponding
affiliated
Master Portfolio’s purchases and sales. These purchase and sale amounts
are aggregated with any direct purchases and sales and included in the
portfolio
turnover calculation. |
| 96 |
|
Target
Date Retirement Funds |
Dynamic
Target 2020 Fund
For a share
outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended February 28 |
|
Year
ended May 31 |
|
Class
R4 |
|
2022 |
|
2021 |
|
20201
|
|
20192
|
|
2018 |
|
2017 |
|
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
return3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
| * |
Ratios
include net expenses allocated from the affiliated Master Portfolios which
were as follows:
Year
ended February 28,
2022 0.09%
Year
ended February 28,
2021 0.09%
Year
ended February 29,
2020 0.12%
Year
ended February 28, 20192
0.11% |
| ^
|
Ratios
do not include net expenses allocated from the affiliated Master
Portfolios. Including annualized net expenses allocated from the
affiliated Master Portfolios,
the expense ratios would be increased by the following
amounts:
Year
ended May 31, 2018
0.09%
Year
ended May 31, 2017
0.10% |
| 2 |
For
the nine months ended February 28, 2019. The Fund changed its fiscal year
end from May 31 to February 28, effective February 28,
2019. |
| 3 |
Returns
for periods of less than one year are not
annualized. |
| 4 |
Portfolio
turnover rate is calculated by multiplying the Fund’s ownership percentage
in each respective affiliated Master Portfolio by the corresponding
affiliated
Master Portfolio’s purchases and sales. These purchase and sale amounts
are aggregated with any direct purchases and sales and included in the
portfolio
turnover calculation. |
| Target
Date Retirement Funds
|
|
97 |
Dynamic
Target 2025 Fund
For a share
outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended February 28 |
|
Year
ended May 31 |
|
Class
R4 |
|
2022 |
|
2021 |
|
20201
|
|
20192
|
|
2018 |
|
2017 |
|
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
return3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
| * |
Ratios
include net expenses allocated from the affiliated Master Portfolios which
were as follows:
Year
ended February 28,
2022 0.10%
Year
ended February 28,
2021 0.10%
Year
ended February 29,
2020 0.12%
Year
ended February 28, 20192
0.12% |
| ^
|
Ratios
do not include net expenses allocated from the affiliated Master
Portfolios. Including annualized net expenses allocated from the
affiliated Master Portfolios,
the expense ratios would be increased by the following
amounts:
Year
ended May 31, 2018
0.09%
Year
ended May 31, 2017
0.10% |
| 2 |
For
the nine months ended February 28, 2019. The Fund changed its fiscal year
end from May 31 to February 28, effective February 28,
2019. |
| 3 |
Returns
for periods of less than one year are not
annualized. |
| 4 |
Portfolio
turnover rate is calculated by multiplying the Fund’s ownership percentage
in each respective affiliated Master Portfolio by the corresponding
affiliated
Master Portfolio’s purchases and sales. These purchase and sale amounts
are aggregated with any direct purchases and sales and included in the
portfolio
turnover calculation. |
| 98 |
|
Target
Date Retirement Funds |
Dynamic
Target 2030 Fund
For a share
outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended February 28 |
|
Year
ended May 31 |
|
Class
R4 |
|
2022 |
|
2021 |
|
20201
|
|
20192
|
|
2018 |
|
2017 |
|
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
return4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
| * |
Ratios
include net expenses allocated from the affiliated Master Portfolios which
were as follows:
Year
ended February 28,
2022 0.10%
Year
ended February 28,
2021 0.10%
Year
ended February 29,
2020 0.13%
Year
ended February 28, 20192
0.12% |
| ^
|
Ratios
do not include net expenses allocated from the affiliated Master
Portfolios. Including annualized net expenses allocated from the
affiliated Master Portfolios,
the expense ratios would be increased by the following
amounts:
Year
ended May 31, 2018
0.09%
Year
ended May 31, 2017
0.10% |
| 2 |
For
the nine months ended February 28, 2019. The Fund changed its fiscal year
end from May 31 to February 28, effective February 28,
2019. |
| 3 |
Calculated
based upon average shares outstanding |
| 4 |
Returns
for periods of less than one year are not
annualized. |
| 5 |
Portfolio
turnover rate is calculated by multiplying the Fund’s ownership percentage
in each respective affiliated Master Portfolio by the corresponding
affiliated
Master Portfolio’s purchases and sales. These purchase and sale amounts
are aggregated with any direct purchases and sales and included in the
portfolio
turnover calculation. |
| Target
Date Retirement Funds
|
|
99 |
Dynamic
Target 2035 Fund
For a share
outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended February 28 |
|
Year
ended May 31 |
|
Class
R4 |
|
2022 |
|
2021 |
|
20201
|
|
20192
|
|
2018 |
|
2017 |
|
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
return3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
| * |
Ratios
include net expenses allocated from the affiliated Master Portfolios which
were as follows:
Year
ended February 28,
2022 0.11%
Year
ended February 28,
2021 0.11%
Year
ended February 29,
2020 0.14%
Year
ended February 28, 20192
0.13% |
| ^
|
Ratios
do not include net expenses allocated from the affiliated Master
Portfolios. Including annualized net expenses allocated from the
affiliated Master Portfolios,
the expense ratios would be increased by the following
amounts:
Year
ended May 31, 2018
0.09%
Year
ended May 31, 2017
0.10% |
| 2 |
For
the nine months ended February 28, 2019. The Fund changed its fiscal year
end from May 31 to February 28, effective February 28,
2019. |
| 3 |
Returns
for periods of less than one year are not
annualized. |
| 4 |
Portfolio
turnover rate is calculated by multiplying the Fund’s ownership percentage
in each respective affiliated Master Portfolio by the corresponding
affiliated
Master Portfolio’s purchases and sales. These purchase and sale amounts
are aggregated with any direct purchases and sales and included in the
portfolio
turnover calculation. |
| 100 |
|
Target
Date Retirement Funds |
Dynamic
Target 2040 Fund
For a share
outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended February 28 |
|
Year
ended May 31 |
|
Class
R4 |
|
2022 |
|
2021 |
|
20201
|
|
20192
|
|
2018 |
|
2017 |
|
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
return3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
| * |
Ratios
include net expenses allocated from the affiliated Master Portfolios which
were as follows:
Year
ended February 28,
2022 0.11%
Year
ended February 28,
2021 0.12%
Year
ended February 29,
2020 0.14%
Year
ended February 28, 20192
0.13% |
| ^
|
Ratios
do not include net expenses allocated from the affiliated Master
Portfolios. Including annualized net expenses allocated from the
affiliated Master Portfolios,
the expense ratios would be increased by the following
amounts:
Year
ended May 31, 2018
0.09%
Year
ended May 31, 2017
0.10% |
| 2 |
For
the nine months ended February 28, 2019. The Fund changed its fiscal year
end from May 31 to February 28, effective February 28,
2019. |
| 3 |
Returns
for periods of less than one year are not
annualized. |
| 4 |
Portfolio
turnover rate is calculated by multiplying the Fund’s ownership percentage
in each respective affiliated Master Portfolio by the corresponding
affiliated
Master Portfolio’s purchases and sales. These purchase and sale amounts
are aggregated with any direct purchases and sales and included in the
portfolio
turnover calculation. |
| Target
Date Retirement Funds
|
|
101 |
Dynamic
Target 2045 Fund
For a share
outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended February 28 |
|
Year
ended May 31 |
|
Class
R4 |
|
2022 |
|
2021 |
|
20201
|
|
20192
|
|
2018 |
|
2017 |
|
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
return3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
| * |
Ratios
include net expenses allocated from the affiliated Master Portfolios which
were as follows:
Year
ended February 28,
2022 0.12%
Year
ended February 28,
2021 0.12%
Year
ended February 29,
2020 0.15%
Year
ended February 28, 20192
0.13% |
| ^
|
Ratios
do not include net expenses allocated from the affiliated Master
Portfolios. Including annualized net expenses allocated from the
affiliated Master Portfolios,
the expense ratios would be increased by the following
amounts:
Year
ended May 31, 2018
0.09%
Year
ended May 31, 2017
0.10% |
| 2 |
For
the nine months ended February 28, 2019. The Fund changed its fiscal year
end from May 31 to February 28, effective February 28,
2019. |
| 3 |
Returns
for periods of less than one year are not
annualized. |
| 4 |
Portfolio
turnover rate is calculated by multiplying the Fund’s ownership percentage
in each respective affiliated Master Portfolio by the corresponding
affiliated
Master Portfolio’s purchases and sales. These purchase and sale amounts
are aggregated with any direct purchases and sales and included in the
portfolio
turnover calculation. |
| 102 |
|
Target
Date Retirement Funds |
Dynamic
Target 2050 Fund
For a share
outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended February 28 |
|
Year
ended May 31 |
|
Class
R4 |
|
2022 |
|
2021 |
|
20201
|
|
20192
|
|
2018 |
|
2017 |
|
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
return4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
| * |
Ratios
include net expenses allocated from the affiliated Master Portfolios which
were as follows:
Year
ended February 28,
2022 0.12%
Year
ended February 28,
2021 0.13%
Year
ended February 29,
2020 0.15%
Year
ended February 28, 20192
0.13% |
| ^
|
Ratios
do not include net expenses allocated from the affiliated Master
Portfolios. Including annualized net expenses allocated from the
affiliated Master Portfolios,
the expense ratios would be increased by the following
amounts:
Year
ended May 31, 2018
0.09%
Year
ended May 31, 2017
0.10% |
| 2 |
For
the nine months ended February 28, 2019. The Fund changed its fiscal year
end from May 31 to February 28, effective February 28,
2019. |
| 3 |
Calculated
based upon average shares outstanding |
| 4 |
Returns
for periods of less than one year are not
annualized. |
| 5 |
Portfolio
turnover rate is calculated by multiplying the Fund’s ownership percentage
in each respective affiliated Master Portfolio by the corresponding
affiliated
Master Portfolio’s purchases and sales. These purchase and sale amounts
are aggregated with any direct purchases and sales and included in the
portfolio
turnover calculation. |
| Target
Date Retirement Funds
|
|
103 |
Dynamic
Target 2055 Fund
For a share
outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended February 28 |
|
Year
ended May 31 |
|
Class
R4 |
|
2022 |
|
2021 |
|
20201
|
|
20192
|
|
2018 |
|
2017 |
|
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
return3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
| * |
Ratios
include net expenses allocated from the affiliated Master Portfolios which
were as follows:
Year
ended February 28,
2022 0.12%
Year
ended February 28,
2021 0.13%
Year
ended February 29,
2020 0.15%
Year
ended February 28, 20192
0.13% |
| ^
|
Ratios
do not include net expenses allocated from the affiliated Master
Portfolios. Including annualized net expenses allocated from the
affiliated Master Portfolios,
the expense ratios would be increased by the following
amounts:
Year
ended May 31, 2018
0.09%
Year
ended May 31, 2017
0.10% |
| 2 |
For
the nine months ended February 28, 2019. The Fund changed its fiscal year
end from May 31 to February 28, effective February 28,
2019. |
| 3 |
Returns
for periods of less than one year are not
annualized. |
| 4 |
Portfolio
turnover rate is calculated by multiplying the Fund’s ownership percentage
in each respective affiliated Master Portfolio by the corresponding
affiliated
Master Portfolio’s purchases and sales. These purchase and sale amounts
are aggregated with any direct purchases and sales and included in the
portfolio
turnover calculation. |
| 104 |
|
Target
Date Retirement Funds |
Dynamic
Target 2060 Fund
For a share
outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended February 28 |
|
Year
ended May 31 |
|
Class
R4 |
|
2022 |
|
2021 |
|
20201
|
|
20192
|
|
2018 |
|
2017 |
|
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
return3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
| * |
Ratios
include net expenses allocated from the affiliated Master Portfolios which
were as follows:
Year
ended February 28,
2022 0.12%
Year
ended February 28,
2021 0.13%
Year
ended February 29,
2020 0.15%
Year
ended February 28, 20192
0.13% |
| ^
|
Ratios
do not include net expenses allocated from the affiliated Master
Portfolios. Including annualized net expenses allocated from the
affiliated Master Portfolios,
the expense ratios would be increased by the following
amounts:
Year
ended May 31, 2018
0.09%
Year
ended May 31, 2017
0.10% |
| 2 |
For
the nine months ended February 28, 2019. The Fund changed its fiscal year
end from May 31 to February 28, effective February 28,
2019. |
| 3 |
Returns
for periods of less than one year are not
annualized. |
| 4 |
Portfolio
turnover rate is calculated by multiplying the Fund’s ownership percentage
in each respective affiliated Master Portfolio by the corresponding
affiliated
Master Portfolio’s purchases and sales. These purchase and sale amounts
are aggregated with any direct purchases and sales and included in the
portfolio
turnover calculation. |
| Target
Date Retirement Funds
|
|
105 |
Index
Providers
Bloomberg
Index Services Limited (“BISL”), an unaffiliated third-party service provider,
serves as index provider for the Bloomberg
U.S. Aggregate ex-Corporate Index, Bloomberg U.S. Corporate Bond Index,
Bloomberg U.S. High Yield 2% Issuer
Capped Bond Index, Bloomberg U.S. Treasury Inflation-Linked 1-10 Year index, and
Bloomberg U.S. Government Intermediate
Bond Index.
J.P. Morgan
Securities, LLC, an unaffiliated third-party service provider, serves as index
provider for the JP Morgan EMBI Global
Diversified Index.
S&P Dow
Jones Indices LLC, an unaffiliated third-party service provider, serves as index
provider for the Dow Jones U.S. Select REIT
Index.
BLOOMBERG®
is a trademark and service mark of Bloomberg Finance L.P. Bloomberg Finance L.P.
and its affiliates, including
BISL (collectively, “Bloomberg”), or Bloomberg’s licensors own all proprietary
rights in the “Bloomberg US Aggregate
ex-Corporate Index.”
Bloomberg
is not the issuer or producer of the Allspring Bloomberg US Aggregate
ex-Corporate Portfolio and Bloomberg
has no responsibilities, obligations or duties to investors in the Allspring
Bloomberg US Aggregate ex-Corporate
Portfolio. The Bloomberg U.S. Aggregate ex-Corporate Index is licensed for use
by Allspring Funds Management,
LLC as the investment adviser of the Allspring Bloomberg US Aggregate
ex-Corporate Portfolio. The only relationship
of Bloomberg with Allspring Funds Management, LLC in respect of the Bloomberg
U.S. Aggregate ex-Corporate
Index is the licensing of the Bloomberg U.S. Aggregate ex- Corporate Index,
which is determined, composed
and calculated by BISL, or any successor thereto, without regard to Allspring
Funds Management, LLC or the
Allspring Bloomberg US Aggregate ex-Corporate Portfolio or the shareholders of
the Allspring Bloomberg US Aggregate
ex-Corporate Portfolio.
Investors
acquire the Allspring Bloomberg US Aggregate ex-Corporate Portfolio from
Allspring Funds Distributor, LLC and
investors neither acquire any interest in the Bloomberg U.S. Aggregate
ex-Corporate Index nor enter into any relationship
of any kind whatsoever with Bloomberg upon making an investment in the Allspring
Bloomberg US Aggregate
ex-Corporate Portfolio. The Allspring Bloomberg US Aggregate ex-Corporate
Portfolio is not sponsored, endorsed,
sold or promoted by Bloomberg. Bloomberg makes no representation or warranty,
express or implied, regarding
the advisability of investing in the Allspring Bloomberg US Aggregate
ex-Corporate Portfolio or the advisability
of investing in securities generally or the ability of the Bloomberg U.S.
Aggregate ex-Corporate Index to track
corresponding or relative market performance. Bloomberg has not passed on the
legality or suitability of the Allspring
Bloomberg US Aggregate ex-Corporate Portfolio with respect to any person or
entity. Bloomberg is not responsible
for and has not participated in the determination of the timing of, prices at,
or quantities of the Allspring Bloomberg
US Aggregate ex-Corporate Portfolio to be issued. Bloomberg has no obligation to
take the needs of Allspring
Funds Management, LLC or the shareholders of the Allspring Bloomberg US
Aggregate ex-Corporate Portfolio or any
other third party into consideration in determining, composing or calculating
the Bloomberg US Aggregate ex-Corporate
Index. Bloomberg has no obligation or liability in connection with
administration, marketing or trading of the
Allspring Bloomberg US Aggregate ex-Corporate Portfolio.
The
licensing agreement between Allspring Funds Management, LLC and Bloomberg is
solely for the benefit of Allspring
Funds Management, LLC and Bloomberg and not for the benefit of the shareholders
of the Allspring Bloomberg
US Aggregate ex-Corporate Portfolio, investors or other third
parties.
BLOOMBERG
SHALL HAVE NO LIABILITY TO THE ISSUER, INVESTORS OR OTHER THIRD PARTIES FOR THE
QUALITY, ACCURACY
AND/OR COMPLETENESS OF THE BLOOMBERG U.S. AGGREGATE EX-CORPORATE INDEX OR ANY
DATA INCLUDED
THEREIN OR FOR INTERRUPTIONS IN THE DELIVERY OF THE BLOOMBERG U.S. AGGREGATE
EX-CORPORATE INDEX.
BLOOMBERG MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY
THE ISSUER, THE
INVESTORS OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE BLOOMBERG US
AGGREGATE EX-CORPORATE
INDEX OR ANY DATA INCLUDED THEREIN. BLOOMBERG MAKES NO EXPRESS OR IMPLIED
WARRANTIES,
AND EACH HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR
PURPOSE OR USE WITH RESPECT TO THE BLOOMBERG U.S. AGGREGATE EX-CORPORATE INDEX
OR ANY DATA
INCLUDED THEREIN. BLOOMBERG RESERVES THE RIGHT TO CHANGE THE METHODS OF
CALCULATION OR PUBLICATION,
OR TO CEASE THE CALCULATION OR PUBLICATION OF THE BLOOMBERG U.S. AGGREGATE
EX-CORPORATE
INDEX, AND BLOOMBERG SHALL NOT BE LIABLE FOR ANY MISCALCULATION OF OR ANY
INCORRECT, DELAYED OR
INTERRUPTED PUBLICATION WITH RESPECT TO THE BLOOMBERG U.S. AGGREGATE
EX-CORPORATE INDEX.
BLOOMBERG SHALL NOT BE LIABLE FOR ANY DAMAGES, INCLUDING, WITHOUT LIMITATION,
ANY SPECIAL, INDIRECT OR
CONSEQUENTIAL DAMAGES, OR ANY LOST PROFITS, EVEN IF ADVISED OF THE POSSIBILITY
OF SUCH,
| 106 |
|
Target
Date Retirement Funds |
RESULTING
FROM THE USE OF THE BLOOMBERG U.S. AGGREGATE EX-CORPORATE INDEX OR ANY DATA
INCLUDED THEREIN OR
WITH RESPECT TO THE ALLSPRING BLOOMBERG US AGGREGATE EX-CORPORATE
PORTFOLIO.
None of the
information supplied by Bloomberg and used in this publication may be reproduced
in any manner without the prior
written permission of Bloomberg.
| Target
Date Retirement Funds
|
|
107 |
| 108 |
|
Target
Date Retirement Funds |
| Target
Date Retirement Funds
|
|
109 |
| 110 |
|
Target
Date Retirement Funds |
|
|
|
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:
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. |
|
|
|
©
2022
Allspring Global Investments Holdings, LLC. All rights
reserved. |
072DT4R/P807R4
www.allspringglobal.com |
