2023-10-24TaxableFixedIncomeFunds-Retail-January
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Prospectus January
1, 2024 |
Taxable
Fixed Income Funds
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|
Fund |
Class
R6 |
Allspring
Core Plus Bond Fund |
STYJX |
Allspring
Short Duration Government Bond Fund |
MSDRX |
Allspring
Short-Term Bond Plus Fund |
SSTYX |
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.
Core
Plus Bond Fund Summary
Investment
Objective
The
Fund seeks total return, consisting of current income and capital
appreciation.
Fees
and Expenses
These
tables are intended to help you understand the various costs and expenses you
will pay if you buy, hold and sell shares
of the Fund.
|
|
Shareholder
Fees (fees paid directly from your investment)
|
|
|
|
Maximum
sales charge (load) imposed on purchases (as a percentage of offering
price) |
None |
Maximum
deferred sales charge (load) (as a percentage of offering
price) |
None |
|
|
|
|
|
Management
Fees |
0.41% |
Distribution
(12b-1) Fees |
0.00% |
Other
Expenses |
0.05% |
Acquired
Fund Fees and Expense |
0.01% |
Total
Annual Fund Operating Expenses |
0.47% |
Fee
Waivers |
(0.16)% |
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 December
31, 2024,
to waive fees and/or reimburse expenses to the extent necessary
to cap Total Annual Fund Operating Expenses After Fee Waiver at
0.30%
for Class
R6. Brokerage commissions, stamp duty
fees, interest, taxes, acquired fund fees and expenses (if any), and
extraordinary expenses are excluded from the expense cap. Prior
to or after the commitment expiration date, the cap may be increased or
the commitment to maintain the cap may be terminated
only with the approval of the Board of
Trustees. |
Example
of Expenses
The
example below is intended to help you compare the costs of investing in the Fund
with the costs of investing in other
funds. The example assumes a $10,000 initial investment, 5% annual total return,
and that fees and expenses remain
the same as in the tables above. To the extent that the Manager is waiving fees
or reimbursing expenses, the example
assumes that such waiver or reimbursement will only be in place through the date
noted above. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
|
|
|
After:
|
|
1
Year |
$32 |
3
Years |
$135 |
5
Years |
$247 |
10
Years |
$576 |
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 254%
of
the average value of its portfolio.
2 |
|
Taxable
Fixed Income Funds |
Principal
Investment Strategies
Under
normal circumstances, we invest:
■ |
at
least 80% of the Fund’s net assets in debt
securities; |
■ |
up
to 35% of the Fund’s total assets in debt securities that are below
investment-grade;
and |
■ |
up
to 25% of the Fund’s total assets in debt securities of foreign issuers,
including emerging markets issuers and debt
securities denominated in foreign
currencies. |
We
invest principally in debt securities, including corporate, mortgage- and
asset-backed securities, bank loans, foreign
sovereign debt, supranational agencies, and U.S. Government obligations. These
securities may have fixed, floating
or variable rates and may include debt securities of both domestic and foreign
issuers. We invest in both investment-grade
and below investment-grade debt securities (often called “high yield” securities
or “junk bonds”), including
unrated securities, as well as securities that are in default at the time of
purchase.
We
may invest in debt securities of foreign issuers, including emerging markets
issuers, denominated in any currency. We
may seek to add yield by having exposures to a variety of credits, mortgages,
and higher yielding countries and currencies.
We may also use futures and swap agreements to manage risk or to enhance return.
We may enter into currency-related
transactions through derivative instruments, including currency and cross
currency forwards. The use of
derivative currency transactions is intended to allow the Fund to manage, hedge
or reduce a foreign currency-specific
risk exposure of a portfolio security or its denominated currency or to obtain
net long exposure to selected
currencies for the purpose of generating income or additional
returns.
While
we may purchase securities of any maturity or duration, under normal
circumstances, we expect to maintain an overall
portfolio dollar-weighted average effective duration that is within 1 year of
that of the Fund’s benchmark. The Fund’s
benchmark, the Bloomberg U.S. Aggregate Bond Index, had a duration of
6.81 years, as of November 30, 2021. “Dollar-Weighted
Average Effective Duration” is an aggregate measure of the sensitivity of a
fund’s fixed income portfolio
securities to changes in interest rates. As a general matter, the price of a
fixed income security with a longer effective
duration will fluctuate more in response to changes in interest rates than the
price of a fixed income security with
a shorter effective duration.
We
start our investment process with a top-down, macroeconomic outlook to determine
portfolio duration and yield curve
positioning as well as industry, sector and credit quality allocations.
Macroeconomic factors considered may include,
among others, the pace of economic growth, employment conditions, corporate
profits, inflation, monetary and
fiscal policy, as well as the influence of international economic and financial
conditions. Within these parameters, we
then apply rigorous credit research to select individual securities that we
believe can add value from income and/or the
potential for capital appreciation. Our credit research may include an
assessment of an issuer’s general financial condition,
its competitive positioning and management strength, as well as industry
characteristics and other factors including
an assessment of environmental, social and governance (ESG) factors that are
deemed to have material business
and/or financial risk. The ESG factors utilized in the fund’s investment process
may change over time, some factors
may not be relevant with respect to all issuers and may or may not be
determinative in the security selection process. We
may sell a security due to changes in credit characteristics or outlook, as well
as changes in portfolio strategy
or cash flow needs. A security may also be sold and replaced with one that
presents a better value or risk/reward
profile.
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.
Debt
Securities Risk.
Debt securities are subject to credit risk and interest rate risk. Credit risk
is the possibility that the issuer
or guarantor of a debt security may be unable, or perceived to be unable or
unwilling, to pay interest or repay principal
when they become due. In these instances, the value of an investment could
decline and the Fund could lose money.
Credit risk increases as an issuer’s credit quality or financial strength
declines. Interest rate risk is the possibility that
interest rates will change over time. When interest rates rise, the value of
debt securities tends to fall. The longer the
terms of the debt securities held by a Fund, the more the Fund is subject to
this risk. If interest rates decline, interest
that the Fund is able to earn on its investments in debt securities may also
decline, which could cause the Fund
Taxable
Fixed Income Funds
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|
3 |
to
reduce the dividends it pays to shareholders, but the value of those securities
may increase. Very low or negative interest
rates may magnify interest rate risk.
Derivatives
Risk.
The use of derivatives, such as futures, options and swap agreements, can lead
to losses, including those
magnified by leverage, particularly when derivatives are used to enhance return
rather than mitigate risk. Certain derivative
instruments may be difficult to sell when the portfolio manager believes it
would be appropriate to do so, or the
other party to a derivative contract may be unwilling or unable to fulfill its
contractual obligations.
Emerging
Markets Risk.
Emerging market securities typically present even greater exposure to the risks
described under
“Foreign Investment Risk” and may be particularly sensitive to global economic
conditions. Emerging market securities
are also typically less liquid than securities of developed countries and could
be difficult to sell, particularly during
a market downturn.
Foreign
Currency Contracts Risk.
A Fund that enters into forwards or other foreign currency contracts, which are
a type
of derivative, is subject to the risk that the portfolio manager may be
incorrect in his or her judgment of future exchange
rate changes.
Foreign
Investment Risk.
Foreign investments may be subject to lower liquidity, greater price volatility
and risks related to
adverse political, regulatory, market or economic developments. Foreign
investments may involve exposure to changes
in foreign currency exchange rates and may be subject to higher withholding and
other taxes.
Futures
Contracts Risk.
A Fund that uses futures contracts, which are a type of derivative, is subject
to the risk of loss caused
by unanticipated market movements. In addition, there may at times be an
imperfect correlation between the movement
in the prices of futures contracts and the value of their underlying instruments
or indexes, and there may at times
not be a liquid secondary market for certain futures
contracts.
High
Yield Securities Risk.
High yield securities and unrated securities of similar credit quality (commonly
known as “junk
bonds”) are considered speculative and have a much greater risk of default or of
not returning principal and their values
tend to be more volatile than higher-rated securities with similar
maturities.
Loan
Risk.
Loans may be unrated, less liquid and more difficult to value than traditional
debt securities. The highly leveraged
capital structure of the borrowers in such transactions may make such loans
especially vulnerable to adverse changes
in financial, economic or market conditions. A Fund may be unable to sell loans
at a desired time or price. The Fund
may also not be able to control amendments, waivers or the exercise of any
remedies that a lender would have under
a direct loan and may assume liability as a
lender.
Management
Risk.
Investment decisions, techniques, analyses or models implemented by a
Fund’s manager or sub-adviser
in seeking to achieve the Fund’s investment objective may not produce expected
returns, may cause the Fund’s
shares to lose value or may cause the Fund to underperform other funds with
similar investment objectives.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities may decline in value and become
less liquid when defaults on the underlying mortgages or assets occur and may
exhibit additional volatility in periods
of rising interest rates. Rising interest rates tend to extend the duration of
these securities, making them more sensitive
to changes in interest rates than instruments with fixed payment schedules. When
interest rates decline or are low,
the prepayment of mortgages or assets underlying such securities can reduce a
Fund’s returns.
Swaps
Risk.
Depending on their structure, swap agreements and options to enter into swap
agreements (“swaptions”), both
of which are types of derivatives, may increase or decrease a Fund’s exposure to
long- or short-term interest rates, foreign
currency values, mortgage-backed securities, corporate borrowing rates, or
credit events or other reference points
such as security prices or inflation rates.
U.S.
Government Obligations Risk.
U.S. Government obligations may be adversely impacted by changes in interest
rates,
and securities issued or guaranteed by U.S. Government agencies or
government-sponsored entities may not be backed
by the full faith and credit of the U.S. Government. U.S. Government obligations
may be adversely affected by a default
by, or decline in the credit quality, of the U.S.
Government.
4 |
|
Taxable
Fixed Income 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 before and after taxes 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 R6 as of 12/31 each year1
|
|
Highest
Quarter: June
30,
2020 |
|
Lowest
Quarter: June
30,
2022 |
|
Year-to-date
total return
as of September
30, 2023
is -0.19% |
|
|
|
|
|
|
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
10
Year |
Class
R6 |
10/31/2016
|
-13.71% |
1.10% |
2.27% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction
for fees, expenses, or taxes) |
|
-13.01% |
0.02% |
1.06% |
1. |
Historical
performance shown for the Class R6 shares prior to their inception
reflects the performance of the Institutional Class shares,
and includes the higher expenses applicable to the Institutional Class
shares. If these expenses had not been included, returns
for the Class R6 shares would be
higher. |
Taxable
Fixed Income Funds
|
|
5 |
Fund
Management
|
|
|
Manager |
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
Allspring Funds
Management, LLC |
Allspring
Global Investments, LLC |
Christopher
Y. Kauffman, CFA,
Portfolio Manager
/ 2015 Janet
S. Rilling, CFA, CPA,
Portfolio Manager
/ 2008 Michael
J. Schueller, CFA,
Portfolio Manager
/ 2017 Michal
Stanczyk,
Portfolio Manager / 2021 Noah
M. Wise, CFA,
Portfolio Manager / 2015 |
Purchase
and Sale of Fund Shares
Class
R6 shares generally are available only to certain retirement plans, including:
401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans,
and non-qualified deferred compensation
plans. Class R6 shares also are generally available only to retirement plans
where plan level or omnibus accounts
are held on the books of the Fund. Class R6 shares also are available to funds
of funds including those managed
by Allspring
Funds Management. Class R6 shares generally are not available to retail accounts
but may be offered
through intermediaries for the accounts of their customers to certain
institutional and fee-based investors, and in
each case, only if a dealer agreement is in place with Allspring
Funds Distributor, LLC to offer Class R6 shares.
|
Institutions
Purchasing Fund Shares |
Minimum
Initial Investment Class
R6: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment Class
R6: None (intermediaries may require different minimum additional
investment amounts) |
Tax
Information
By
investing in a Fund through a tax-deferred retirement account, you will not be
subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts
remain in the tax-deferred account.
Distributions
taken from retirement plan accounts generally are taxable as ordinary income.
For special rules concerning
tax-deferred retirement accounts, including applications, restrictions, tax
advantages, and potential sales charge
waivers, contact your investment professional. To determine if a retirement plan
may be appropriate for you and
to obtain further information, consult your tax adviser.
6 |
|
Taxable
Fixed Income Funds |
Short
Duration Government Bond Fund Summary
Investment
Objective
The
Fund seeks to provide current income consistent with capital
preservation.
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 |
0.35% |
Distribution
(12b-1) Fees |
0.00% |
Other
Expenses |
0.10% |
Total
Annual Fund Operating Expenses |
0.45% |
Fee
Waivers |
(0.08)% |
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 December
31, 2024,
to waive fees and/or reimburse expenses to the extent necessary
to cap Total Annual Fund Operating Expenses After Fee Waiver at
0.37%
for Class
R6. Brokerage commissions, stamp duty
fees, interest, taxes, acquired fund fees and expenses (if any), and
extraordinary expenses are excluded from the expense cap. Prior
to or after the commitment expiration date, the cap may be increased or
the commitment to maintain the cap may be terminated
only with the approval of the Board of
Trustees. |
Example
of Expenses
The
example below is intended to help you compare the costs of investing in the Fund
with the costs of investing in other
funds. The example assumes a $10,000 initial investment, 5% annual total return,
and that fees and expenses remain
the same as in the tables above. To the extent that the Manager is waiving fees
or reimbursing expenses, the example
assumes that such waiver or reimbursement will only be in place through the date
noted above. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
|
|
|
After:
|
|
1
Year |
$38 |
3
Years |
$136 |
5
Years |
$244 |
10
Years |
$559 |
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 350%
of
the average value of its portfolio.
Taxable
Fixed Income Funds
|
|
7 |
Principal
Investment Strategies
Under
normal circumstances, we invest:
■ |
at
least 90% of the Fund’s net assets in U.S. Government obligations;
and |
■ |
up
to 10% of the Fund’s net assets in non-government mortgage- and
asset-backed
securities. |
We
invest principally in U.S. Government obligations, including debt securities
issued or guaranteed by the U.S. Treasury,
U.S. Government agencies or government-sponsored entities. We will purchase only
securities that are rated, at
the time of purchase, within the two highest rating categories assigned by a
Nationally Recognized Statistical Ratings
Organization, or are deemed by us to be of comparable quality. As part of our
investment strategy, we may enter
into mortgage dollar rolls. While we may purchase securities of any
maturity or duration, under normal circumstances,
we expect the portfolio’s overall dollar-weighted average effective duration to
be less than that of a 3-year
U.S. Treasury note. “Dollar-Weighted Average Effective Duration” is an aggregate
measure of the sensitivity of a fund’s
fixed income portfolio securities to changes in interest rates. As a general
matter, the price of a fixed income security
with a longer effective duration will fluctuate more in response to changes in
interest rates than the price of a fixed
income security with a shorter effective
duration.
We
invest in debt securities that we believe offer competitive returns and are
undervalued, offering additional income and/or
price appreciation potential, relative to other debt securities of similar
credit quality and interest rate sensitivity. As
part of our investment strategy, we invest in mortgage-backed securities
guaranteed by U.S. Government agencies that
we believe will sufficiently outperform U.S. Treasuries. We may sell a security
that has achieved its desired return or if
we believe the security or its sector has become overvalued. We may also sell a
security if a more attractive opportunity
becomes available or if the security is no longer attractive due to its risk
profile or as a result of changes in the
overall market environment.
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.
Debt
Securities Risk.
Debt securities are subject to credit risk and interest rate risk. Credit risk
is the possibility that the issuer
or guarantor of a debt security may be unable, or perceived to be unable or
unwilling, to pay interest or repay principal
when they become due. In these instances, the value of an investment could
decline and the Fund could lose money.
Credit risk increases as an issuer’s credit quality or financial strength
declines. Interest rate risk is the possibility that
interest rates will change over time. When interest rates rise, the value of
debt securities tends to fall. The longer the
terms of the debt securities held by a Fund, the more the Fund is subject to
this risk. If interest rates decline, interest
that the Fund is able to earn on its investments in debt securities may also
decline, which could cause the Fund to
reduce the dividends it pays to shareholders, but the value of those securities
may increase. Very low or negative interest
rates may magnify interest rate risk.
U.S.
Government Obligations Risk.
U.S. Government obligations may be adversely impacted by changes in interest
rates,
and securities issued or guaranteed by U.S. Government agencies or
government-sponsored entities may not be backed
by the full faith and credit of the U.S. Government. U.S. Government obligations
may be adversely affected by a default
by, or decline in the credit quality, of the U.S.
Government.
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.
8 |
|
Taxable
Fixed Income 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 R6 as of 12/31 each year1
|
|
Highest
Quarter: March
31,
2020 |
|
Lowest
Quarter: March
31,
2022 |
|
Year-to-date
total return
as of September
30, 2023
is +1.42% |
|
|
|
|
|
|
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
10
Year |
Class
R6 |
11/30/2012
|
-5.59% |
0.29% |
0.52% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction
for fees, expenses, or taxes) |
|
-13.01% |
0.02% |
1.06% |
Bloomberg
U.S. 1-3 Year Government Bond Index (reflects
no deduction for fees, expenses, or taxes) |
|
-3.81% |
0.74% |
0.66% |
1. |
Historical
performance shown for the Class R6 shares prior to their
inception reflects the performance of the Institutional Class shares,
and includes the higher expenses applicable to
the Institutional Class shares. If these expenses had not been
included, returns
for the Class R6 shares would be
higher. |
Taxable
Fixed Income Funds
|
|
9 |
Fund
Management
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
Allspring Funds
Management,
LLC |
Allspring
Global Investments,
LLC |
Maulik
Bhansali, CFA,
Portfolio Manager/2017 Jarad
Vasquez,
Portfolio Manager/2017 |
Purchase
and Sale of Fund Shares
Class
R6 shares generally are available only to certain retirement plans, including:
401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans,
and non-qualified deferred compensation
plans. Class R6 shares also are generally available only to retirement plans
where plan level or omnibus accounts
are held on the books of the Fund. Class R6 shares also are available to funds
of funds including those managed
by Allspring
Funds Management. Class R6 shares generally are not available to retail accounts
but may be offered
through intermediaries for the accounts of their customers to certain
institutional and fee-based investors, and in
each case, only if a dealer agreement is in place with Allspring
Funds Distributor, LLC to offer Class R6 shares.
|
Institutions
Purchasing Fund Shares |
Minimum
Initial Investment Class
R6: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment Class
R6: None (intermediaries may require different minimum additional
investment amounts) |
Tax
Information
By
investing in a Fund through a tax-deferred retirement account, you will not be
subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts
remain in the tax-deferred account.
Distributions
taken from retirement plan accounts generally are taxable as ordinary income.
For special rules concerning
tax-deferred retirement accounts, including applications, restrictions, tax
advantages, and potential sales charge
waivers, contact your investment professional. To determine if a retirement plan
may be appropriate for you and
to obtain further information, consult your tax adviser.
10 |
|
Taxable
Fixed Income Funds |
Short-Term
Bond Plus Fund Summary
Investment
Objective
The
Fund seeks current income consistent with capital
preservation.
Fees
and Expenses
These
tables are intended to help you understand the various costs and expenses you
will pay if you buy, hold and sell shares
of the Fund.
|
|
Shareholder
Fees (fees paid directly from your investment)
|
|
|
|
Maximum
sales charge (load) imposed on purchases (as a percentage of offering
price) |
None |
Maximum
deferred sales charge (load) (as a percentage of offering
price) |
None |
|
|
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
|
|
|
Management
Fees |
0.35% |
Distribution
(12b-1) Fees |
0.00% |
Other
Expenses |
0.08% |
Acquired
Fund Fee Expense |
0.01% |
Total
Annual Fund Operating Expenses |
0.44% |
Fee
Waivers |
(0.19)% |
Total
Annual Fund Operating Expenses After Fee Waivers1
|
% |
1. |
The
Manager has contractually committed through December
31, 2024,
to waive fees and/or reimburse expenses to the extent necessary
to cap Total Annual Fund Operating Expenses After Fee Waiver at
0.24%
for Class
R6. Brokerage commissions, stamp duty
fees, interest, taxes, acquired fund fees and expenses (if any), and
extraordinary expenses are excluded from the expense cap. Prior
to or after the commitment expiration date, the cap may be increased or
the commitment to maintain the cap may be terminated
only with the approval of the Board of
Trustees. |
Example
of Expenses
The
example below is intended to help you compare the costs of investing in the Fund
with the costs of investing in other
funds. The example assumes a $10,000 initial investment, 5% annual total return,
and that fees and expenses remain
the same as in the tables above. To the extent that the Manager is waiving fees
or reimbursing expenses, the example
assumes that such waiver or reimbursement will only be in place through the date
noted above. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
|
|
|
After:
|
|
1
Year |
$26 |
3
Years |
$122 |
5
Years |
$227 |
10
Years |
$536 |
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 79%
of
the average value of its portfolio.
Taxable
Fixed Income Funds
|
|
11 |
Principal
Investment Strategies
Under
normal circumstances, we invest:
■ |
at
least 80% of the Fund’s net assets in debt
securities; |
■ |
up
to 25% of the Fund’s total assets in debt securities of foreign issuers;
and |
■ |
up
to 25% of the Fund’s total assets in below investment-grade debt
securities. |
We
invest principally in debt securities. We may invest in a variety of debt
securities, including corporate, mortgage- and
asset-backed securities, bank loans and U.S. Government obligations. These
securities may have fixed, floating or variable
rates. We invest in both investment-grade and below investment-grade
debt securities (often called “high yield securities”
or “junk bonds”) and may also invest in debt securities of foreign issuers. As
part of our below investment-grade
debt securities investment strategy, we will generally invest in securities that
are rated at least BB by Standard
& Poor’s or Ba by Moody’s, or an equivalent quality rating from another
Nationally Recognized Statistical Ratings
Organization, or are deemed by us to be of comparable quality. We may
also invest in derivatives, such as futures,
currency forwards, and credit default swap indices (“CDX”), for duration and
yield curve management, to gain or
hedge currency exposure, to control risk or to enhance return. While we may
purchase securities of any maturity, under
normal circumstances, we expect the Fund’s dollar-weighted average effective
maturity to be three years or less. In
addition, while we may purchase securities of any duration, under normal
circumstances, we expect the Fund’s dollar-weighted
average effective duration to be three years or less. “Dollar-Weighted Average
Effective Maturity” is a measure
of the average time until the final payment of principal and interest is due on
fixed income securities in the Fund’s
portfolio. “Dollar-Weighted Average Effective Duration” is an aggregate measure
of the sensitivity of a fund’s fixed
income portfolio securities to changes in interest rates. As a general matter,
the price of a fixed income security with
a longer effective duration will fluctuate more in response to changes in
interest rates than the price of a fixed income
security with a shorter effective duration.
We
employ a top-down macroeconomic outlook to determine the portfolio’s duration,
yield curve positioning, credit quality and
sector allocation. Macroeconomic factors considered may include, among others,
the pace of economic growth,
employment conditions, corporate profits, inflation, monetary and fiscal policy,
as well as the influence of international
economic and financial conditions. In combination with our top-down
macroeconomic approach, we employ
a bottom-up process of fundamental securities analysis to determine the specific
securities for investment. Elements
of this evaluation may include credit research, duration measurements,
historical yield spread relationships, volatility
trends, mortgage refinance rates, as well as other factors. Our credit analysis
may consider an issuer’s general financial
condition, its competitive position and its management strategies, as well as
industry characteristics and other
factors including an assessment of environmental, social and governance (ESG)
factors that are deemed to have material
business and/or financial risk. The ESG factors utilized in the fund’s
investment process may change over time, some
factors may not be relevant with respect to all issuers and may or may not be
determinative in the security selection
process. We may sell a security due to changes in credit
characteristics or outlook, as well as changes in portfolio
strategy or cash flow needs. A security may also be sold and replaced with one
that presents a better value or risk/reward
profile.
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.
Debt
Securities Risk.
Debt securities are subject to credit risk and interest rate risk. Credit risk
is the possibility that the issuer
or guarantor of a debt security may be unable, or perceived to be unable or
unwilling, to pay interest or repay principal
when they become due. In these instances, the value of an investment could
decline and the Fund could lose money.
Credit risk increases as an issuer’s credit quality or financial strength
declines. Interest rate risk is the possibility that
interest rates will change over time. When interest rates rise, the value of
debt securities tends to fall. The longer the
terms of the debt securities held by a Fund, the more the Fund is subject to
this risk. If interest rates decline, interest
that the Fund is able to earn on its investments in debt securities may also
decline, which could cause the Fund to
reduce the dividends it pays to shareholders, but the value of those securities
may increase. Very low or negative interest
rates may magnify interest rate risk.
12 |
|
Taxable
Fixed Income Funds |
Derivatives
Risk.
The use of derivatives, such as futures, options and swap agreements, can lead
to losses, including those
magnified by leverage, particularly when derivatives are used to enhance return
rather than mitigate risk. Certain derivative
instruments may be difficult to sell when the portfolio manager believes it
would be appropriate to do so, or the
other party to a derivative contract may be unwilling or unable to fulfill its
contractual obligations.
Foreign
Currency Contracts Risk.
A Fund that enters into forwards or other foreign currency contracts, which are
a type
of derivative, is subject to the risk that the portfolio manager may be
incorrect in his or her judgment of future exchange
rate changes.
Foreign
Investment Risk.
Foreign investments may be subject to lower liquidity, greater price volatility
and risks related to
adverse political, regulatory, market or economic developments. Foreign
investments may involve exposure to changes
in foreign currency exchange rates and may be subject to higher withholding and
other taxes.
Futures
Contracts Risk.
A Fund that uses futures contracts, which are a type of derivative, is subject
to the risk of loss caused
by unanticipated market movements. In addition, there may at times be an
imperfect correlation between the movement
in the prices of futures contracts and the value of their underlying instruments
or indexes, and there may at times
not be a liquid secondary market for certain futures
contracts.
High
Yield Securities Risk.
High yield securities and unrated securities of similar credit quality (commonly
known as “junk
bonds”) are considered speculative and have a much greater risk of default or of
not returning principal and their values
tend to be more volatile than higher-rated securities with similar
maturities.
Loan
Risk.
Loans may be unrated, less liquid and more difficult to value than traditional
debt securities. The highly leveraged
capital structure of the borrowers in such transactions may make such loans
especially vulnerable to adverse changes
in financial, economic or market conditions. A Fund may be unable to sell loans
at a desired time or price. The Fund
may also not be able to control amendments, waivers or the exercise of any
remedies that a lender would have under
a direct loan and may assume liability as a
lender.
Management
Risk.
Investment decisions, techniques, analyses or models implemented by a
Fund’s manager or sub-adviser
in seeking to achieve the Fund’s investment objective may not produce expected
returns, may cause the Fund’s
shares to lose value or may cause the Fund to underperform other funds with
similar investment objectives.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities may decline in value and become
less liquid when defaults on the underlying mortgages or assets occur and may
exhibit additional volatility in periods
of rising interest rates. Rising interest rates tend to extend the duration of
these securities, making them more sensitive
to changes in interest rates than instruments with fixed payment schedules. When
interest rates decline or are low,
the prepayment of mortgages or assets underlying such securities can reduce a
Fund’s returns.
Swaps
Risk.
Depending on their structure, swap agreements and options to enter into swap
agreements (“swaptions”), both
of which are types of derivatives, may increase or decrease a Fund’s exposure to
long- or short-term interest rates, foreign
currency values, mortgage-backed securities, corporate borrowing rates, or
credit events or other reference points
such as security prices or inflation rates.
U.S.
Government Obligations Risk.
U.S. Government obligations may be adversely impacted by changes in interest
rates,
and securities issued or guaranteed by U.S. Government agencies or
government-sponsored entities may not be backed
by the full faith and credit of the U.S. Government. U.S. Government obligations
may be adversely affected by a default
by, or decline in the credit quality, of the U.S.
Government.
Taxable
Fixed Income 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 before and after taxes 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 R6 as of 12/31 each year1
|
|
Highest
Quarter: June
30,
2020 |
|
Lowest
Quarter: March
31,
2022 |
|
Year-to-date
total return
as of September
30, 2023
is +2.86% |
|
|
|
|
|
|
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
10
Year |
Class
R6 |
7/31/2018
|
-4.71% |
1.51% |
1.43% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction
for fees, expenses, or taxes) |
|
-13.01% |
0.02% |
1.06% |
Bloomberg
U.S. 1-3 Year Government/Credit Bond Index
(reflects no deduction for fees, expenses, or taxes)
|
|
-3.69% |
0.92% |
0.88% |
1. |
Historical
performance shown for the Class R6 shares prior to their inception
reflects the performance of the Institutional Class shares,
and includes the higher expenses applicable to the Institutional Class
shares. If these expenses had not been included, returns
for the Class R6 shares would be
higher. |
14 |
|
Taxable
Fixed Income Funds |
Fund
Management
|
|
|
Manager
|
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
Allspring Funds
Management, LLC |
Allspring
Global Investments, LLC |
Christopher
Y. Kauffman, CFA,
Portfolio Manager/2010 Janet
S. Rilling, CFA, CPA,
Portfolio Manager/2020 Michael
J. Schueller, CFA,
Portfolio Manager/2019 Michal
Stanczyk,
Portfolio Manager/2021 Noah
M. Wise, CFA,
Portfolio Manager/2013 |
Purchase
and Sale of Fund Shares
Class
R6 shares generally are available only to certain retirement plans, including:
401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans,
and non-qualified deferred compensation
plans. Class R6 shares also are generally available only to retirement plans
where plan level or omnibus accounts
are held on the books of the Fund. Class R6 shares also are available to funds
of funds including those managed
by Allspring
Funds Management. Class R6 shares generally are not available to retail accounts
but may be offered
through intermediaries for the accounts of their customers to certain
institutional and fee-based investors, and in
each case, only if a dealer agreement is in place with Allspring
Funds Distributor, LLC to offer Class R6 shares.
|
Institutions
Purchasing Fund Shares |
Minimum
Initial Investment Class
R6: Eligible investors are not subject to a minimum initial investment
(intermediaries may require different minimum
investment amounts)
Minimum
Additional Investment Class
R6: None (intermediaries may require different minimum additional
investment amounts) |
Tax
Information
By
investing in a Fund through a tax-deferred retirement account, you will not be
subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts
remain in the tax-deferred account.
Distributions
taken from retirement plan accounts generally are taxable as ordinary income.
For special rules concerning
tax-deferred retirement accounts, including applications, restrictions, tax
advantages, and potential sales charge
waivers, contact your investment professional. To determine if a retirement plan
may be appropriate for you and
to obtain further information, consult your tax adviser.
Taxable
Fixed Income Funds
|
|
15 |
Details
About the Funds
Core
Plus Bond Fund
Investment
Objective
The
Fund seeks total return, consisting of current income and capital
appreciation.
The
Fund’s Board of Trustees can change this investment objective without a
shareholder vote.
Principal
Investment Strategies
Under
normal circumstances, we invest:
■ |
at
least 80% of the Fund’s net assets in debt
securities; |
■ |
up
to 35% of the Fund’s total assets in debt securities that are below
investment-grade; and |
■ |
up
to 25% of the Fund’s total assets in debt securities of foreign issuers,
including emerging markets issuers and debt
securities denominated in foreign
currencies. |
We
invest principally in debt securities, including corporate, mortgage- and
asset-backed securities, bank loans, foreign
sovereign debt, supranational agencies, and U.S. Government obligations. These
securities may have fixed, floating
or variable rates and may include debt securities of both domestic and foreign
issuers. We invest in both investment-grade
and below investment-grade debt securities (often called “high yield” securities
or “junk bonds”), including
unrated securities, as well as securities that are in default at the time of
purchase.
We
may invest in debt securities of foreign issuers, including emerging markets
issuers, denominated in any currency. We
may seek to add yield by having exposures to a variety of credits, mortgages,
and higher yielding countries and currencies.
We may also use futures and swap agreements to manage risk or to enhance return.
We may enter into currency-related
transactions through derivative instruments, including currency and cross
currency forwards. The use of
derivative currency transactions is intended to allow the Fund to manage, hedge
or reduce a foreign currency-specific
risk exposure of a portfolio security or its denominated currency or to obtain
net long exposure to selected
currencies for the purpose of generating income or additional
returns.
While
we may purchase securities of any maturity or duration, under normal
circumstances, we expect to maintain an overall
portfolio dollar-weighted average effective duration that is within 1 year of
that of the Fund’s benchmark. The Fund’s
benchmark, the Bloomberg U.S. Aggregate Bond Index, had a duration of
6.81 years, as of November 30, 2021. “Dollar-Weighted
Average Effective Duration” is an aggregate measure of the sensitivity of a
fund’s fixed income portfolio
securities to changes in interest rates. As a general matter, the price of a
fixed income security with a longer effective
duration will fluctuate more in response to changes in interest rates than the
price of a fixed income security with
a shorter effective duration.
We
start our investment process with a top-down, macroeconomic outlook to determine
portfolio duration and yield curve
positioning as well as industry, sector and credit quality allocations.
Macroeconomic factors considered may include,
among others, the pace of economic growth, employment conditions, corporate
profits, inflation, monetary and
fiscal policy, as well as the influence of international economic and financial
conditions. Within these parameters, we
then apply rigorous credit research to select individual securities that we
believe can add value from income and/or the
potential for capital appreciation. Our credit research may include an
assessment of an issuer’s general financial condition,
its competitive positioning and management strength, as well as industry
characteristics and other factors including
an assessment of environmental, social and governance (ESG) factors that are
deemed to have material business
and/or financial risk. The ESG factors utilized in the fund’s investment process
may change over time, some factors
may not be relevant with respect to all issuers and may or may not be
determinative in the security selection process. We
may sell a security due to changes in credit characteristics or outlook, as well
as changes in portfolio strategy
or cash flow needs. A security may also be sold and replaced with one that
presents a better value or risk/reward
profile.
We
may actively trade portfolio securities, which may lead to higher transaction
costs that may affect the Fund’s performance.
In addition, active trading of portfolio securities may lead to higher taxes if
your shares are held in a taxable
account.
The
Fund may hold some of its assets in cash or in money market instruments,
including U.S. Government obligations, shares
of other funds and repurchase agreements, or make other short-term investments
for purposes of maintaining liquidity
or for short-term defensive purposes when we believe it is in the best interests
of the shareholders to do so. During
such periods, the Fund may not achieve its objective.
16 |
|
Taxable
Fixed Income Funds |
Principal
Investment Risks
The
Fund is primarily subject to the risks mentioned below.
These
and other risks could cause you to lose money in your investment in the Fund and
could adversely affect the Fund’s
net asset value, yield and total return. These risks are described in the
“Description of Principal Investment Risks”
section.
Taxable
Fixed Income Funds
|
|
17 |
Short
Duration Government Bond Fund
Investment
Objective
The
Fund seeks to provide current income consistent with capital
preservation.
The
Fund’s Board of Trustees can change this investment objective without a
shareholder vote.
Principal
Investment Strategies
Under
normal circumstances, we invest:
■ |
at
least 90% of the Fund’s net assets in U.S. Government obligations;
and |
■ |
up
to 10% of the Fund’s net assets in non-government mortgage- and
asset-backed securities. |
We
invest principally in U.S. Government obligations, including debt securities
issued or guaranteed by the U.S. Treasury,
U.S. Government agencies or government-sponsored entities. We will purchase only
securities that are rated, at
the time of purchase, within the two highest rating categories assigned by a
Nationally Recognized Statistical Ratings
Organization, or are deemed by us to be of comparable quality. As part of our
investment strategy, we may enter
into mortgage dollar rolls. While we may purchase securities of any
maturity or duration, under normal circumstances,
we expect the portfolio’s overall dollar-weighted average effective duration to
be less than that of a 3-year
U.S. Treasury note. “Dollar-Weighted Average Effective Duration” is an aggregate
measure of the sensitivity of a fund’s
fixed income portfolio securities to changes in interest rates. As a general
matter, the price of a fixed income security
with a longer effective duration will fluctuate more in response to changes in
interest rates than the price of a fixed
income security with a shorter effective duration.
We
invest in debt securities that we believe offer competitive returns and are
undervalued, offering additional income and/or
price appreciation potential, relative to other debt securities of similar
credit quality and interest rate sensitivity. As
part of our investment strategy, we invest in mortgage-backed securities
guaranteed by U.S. Government agencies that
we believe will sufficiently outperform U.S. Treasuries. We may sell a security
that has achieved its desired return or if
we believe the security or its sector has become overvalued. We may also sell a
security if a more attractive opportunity
becomes available or if the security is no longer attractive due to its risk
profile or as a result of changes in the
overall market environment.
We
may actively trade portfolio securities, which may lead to higher transaction
costs that may affect the Fund’s performance.
In addition, active trading of portfolio securities may lead to higher taxes if
your shares are held in a taxable
account.
The
Fund may hold some of its assets in cash or in money market instruments,
including U.S. Government obligations, shares
of other funds and repurchase agreements, or make other short-term investments
for purposes of maintaining liquidity
or for short-term defensive purposes when we believe it is in the best interests
of the shareholders to do so. During
such periods, the Fund may not achieve its objective.
Principal
Investment Risks
The
Fund is primarily subject to the risks mentioned below.
These
and other risks could cause you to lose money in your investment in the Fund and
could adversely affect the Fund’s
net asset value, yield and total return. These risks are described in the
“Description of Principal Investment Risks”
section.
18 |
|
Taxable
Fixed Income Funds |
Short-Term
Bond Plus Fund
Investment
Objective
The
Fund seeks current income consistent with capital preservation.
The
Fund’s Board of Trustees can change this investment objective without a
shareholder vote.
Principal
Investment Strategies
Under
normal circumstances, we invest:
■ |
at
least 80% of the Fund’s net assets in debt
securities; |
■ |
up
to 25% of the Fund’s total assets in debt securities of foreign issuers;
and |
■ |
up
to 25% of the Fund’s total assets in below investment-grade debt
securities. |
We
invest principally in debt securities. We may invest in a variety of debt
securities, including corporate, mortgage- and
asset-backed securities, bank loans and U.S. Government obligations. These
securities may have fixed, floating or variable
rates. We invest in both investment-grade and below investment-grade
debt securities (often called “high yield securities”
or “junk bonds”) and may also invest in debt securities of foreign issuers. As
part of our below investment-grade
debt securities investment strategy, we will generally invest in securities that
are rated at least BB by Standard
& Poor’s or Ba by Moody’s, or an equivalent quality rating from another
Nationally Recognized Statistical Ratings
Organization, or are deemed by us to be of comparable quality. We may
also invest in derivatives, such as futures,
currency forwards, and credit default swap indices (“CDX”), for duration and
yield curve management, to gain or
hedge currency exposure, to control risk or to enhance return. While we may
purchase securities of any maturity, under
normal circumstances, we expect the Fund’s dollar-weighted average effective
maturity to be three years or less. In
addition, while we may purchase securities of any duration, under normal
circumstances, we expect the Fund’s dollar-weighted
average effective duration to be three years or less. “Dollar-Weighted Average
Effective Maturity” is a measure
of the average time until the final payment of principal and interest is due on
fixed income securities in the Fund’s
portfolio. “Dollar-Weighted Average Effective Duration” is an aggregate measure
of the sensitivity of a fund’s fixed
income portfolio securities to changes in interest rates. As a general matter,
the price of a fixed income security with
a longer effective duration will fluctuate more in response to changes in
interest rates than the price of a fixed income
security with a shorter effective duration.
We
employ a top-down macroeconomic outlook to determine the portfolio’s duration,
yield curve positioning, credit quality and
sector allocation. Macroeconomic factors considered may include, among others,
the pace of economic growth,
employment conditions, corporate profits, inflation, monetary and fiscal policy,
as well as the influence of international
economic and financial conditions. In combination with our top-down
macroeconomic approach, we employ
a bottom-up process of fundamental securities analysis to determine the specific
securities for investment. Elements
of this evaluation may include credit research, duration measurements,
historical yield spread relationships, volatility
trends, mortgage refinance rates, as well as other factors. Our credit analysis
may consider an issuer’s general financial
condition, its competitive position and its management strategies, as well as
industry characteristics and other
factors including an assessment of environmental, social and governance (ESG)
factors that are deemed to have material
business and/or financial risk. The ESG factors utilized in the fund’s
investment process may change over time, some
factors may not be relevant with respect to all issuers and may or may not be
determinative in the security selection
process. We may sell a security due to changes in credit
characteristics or outlook, as well as changes in portfolio
strategy or cash flow needs. A security may also be sold and replaced with one
that presents a better value or risk/reward
profile.
We
may actively trade portfolio securities, which may lead to higher transaction
costs that may affect the Fund’s performance.
In addition, active trading of portfolio securities may lead to higher taxes if
your shares are held in a taxable
account.
The
Fund may hold some of its assets in cash or in money market instruments,
including U.S. Government obligations, shares
of other funds and repurchase agreements, or make other short-term investments
for purposes of maintaining liquidity
or for short-term defensive purposes when we believe it is in the best interests
of the shareholders to do so. During
such periods, the Fund may not achieve its objective.
Taxable
Fixed Income Funds
|
|
19 |
Principal
Investment Risks
The
Fund is primarily subject to the risks mentioned below.
These
and other risks could cause you to lose money in your investment in the Fund and
could adversely affect the Fund’s
net asset value, yield and total return. These risks are described in the
“Description of Principal Investment Risks”
section.
20 |
|
Taxable
Fixed Income Funds |
Description
of Principal Investment Risks
Understanding
the risks involved in fund investing will help you make an informed decision
that takes into account your risk
tolerance and preferences. The risks that are most likely to have a material
effect on a particular Fund as
a whole are
called “principal risks.” The principal risks for each Fund
have been previously identified and are described below (in alphabetical
order). Additional information about the principal risks is included in the
Statement of Additional Information.
Debt
Securities Risk.
Debt securities are subject to credit risk and interest rate risk. Credit risk
is the possibility that the issuer
or guarantor of a debt security may be unable, or perceived to be unable or
unwilling, to pay interest or repay principal
when they become due. In these instances, the value of an investment could
decline and the Fund could lose money.
Credit risk increases as an issuer’s credit quality or financial strength
declines. The credit quality of a debt security
may deteriorate rapidly and cause significant deterioration in the Fund’s net
asset value. Interest rate risk is the possibility
that interest rates will change over time. When interest rates rise, the value
of debt securities tends to fall. The
longer the terms of the debt securities held by a Fund, the more the Fund is
subject to this risk. If interest rates decline,
interest that the Fund is able to earn on its investments in debt securities may
also decline, which could cause the
Fund to reduce the dividends it pays to shareholders, but the value of those
securities may increase. Some debt securities
give the issuers the option to call, redeem or prepay the securities before
their maturity dates. If an issuer calls,
redeems or prepays a debt security during a time of declining interest rates,
the Fund might have to reinvest the proceeds
in a security offering a lower yield, and therefore might not benefit from any
increase in value as a result of declining
interest rates. Very low or negative interest rates may magnify interest rate
risk. Changing interest rates, including
rates that fall below zero, may have unpredictable effects on markets, may
result in heightened market volatility
and may detract from Fund performance to the extent the Fund is exposed to such
interest rates. Interest rate changes
and their impact on the Fund and its share price can be sudden and
unpredictable. Changes in market conditions
and government policies may lead to periods of heightened volatility in the debt
securities market, reduced liquidity
Fund investments and an increase in Fund redemptions.
Derivatives
Risk.
The use of derivatives, such as futures, options and swap agreements, presents
risks different from, and
possibly greater than, the risks associated with investing directly in
traditional securities. The use of derivatives can lead
to losses because of adverse movements in the price or value of the derivatives’
underlying assets, indexes or rates
and the derivatives themselves, which may be magnified by certain features of
the derivatives. These risks are heightened
when derivatives are used to enhance a Fund’s return or as a substitute for a
position or security, rather than
solely to hedge (or mitigate) the risk of a position or security held by the
Fund. The success of a derivative strategy will
be affected by the portfolio manager’s ability to assess and predict market or
economic developments and their impact
on the derivatives’ underlying assets, indexes or reference rates, as well as
the derivatives themselves. Certain derivative
instruments may become illiquid and, as a result, may be difficult to sell when
the portfolio manager believes it
would be appropriate to do so. Certain derivatives create leverage, which can
magnify the impact of a decline in the value
of their underlying assets, indexes or reference rates, and increase the
volatility of the Fund’s net asset value. Certain
derivatives (e.g., over-the-counter swaps) are also subject to the risk that the
counterparty to the derivative contract
will be unwilling or unable to fulfill its contractual obligations, which may
cause a Fund to lose money, suffer delays
or incur costs arising from holding or selling an underlying asset. Changes in
laws or regulations may make the use
of derivatives more costly, may limit the availability of derivatives, or may
otherwise adversely affect the use, value or
performance of derivatives.
Emerging
Markets Risk.
Emerging market securities typically present even greater exposure to the risks
described under
“Foreign Investment Risk” and may be particularly sensitive to global economic
conditions. For example, emerging
market countries are typically more dependent on exports and are, therefore,
more vulnerable to recessions in
other countries. Emerging markets tend to have less developed legal and
financial systems and a smaller market capitalization
than markets in developed countries. Some emerging markets are subject to
greater political instability. Additionally,
emerging markets may have more volatile currencies and be more sensitive than
developed markets to a variety
of economic factors, including inflation. Emerging market securities are also
typically less liquid than securities of
developed countries and could be difficult to sell, particularly during a market
downturn.
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.
Taxable
Fixed Income Funds
|
|
21 |
Foreign
Investment Risk.
Foreign investments may be subject to lower liquidity, greater price volatility
and risks related to
adverse political, regulatory, market or economic developments. Foreign
companies may be subject to significantly higher
levels of taxation than U.S. companies, including potentially confiscatory
levels of taxation, thereby reducing the earnings
potential of such foreign companies. Foreign investments may involve exposure to
changes in foreign currency
exchange rates. Such changes may reduce the U.S. dollar value of the
investments. Foreign investments may be
subject to additional risks, such as potentially higher withholding and other
taxes, and may also be subject to greater
trade settlement, custodial, and other operational risks than domestic
investments. Certain foreign markets may
also be characterized by less stringent investor protection and disclosure
standards.
Futures Contracts
Risk.
A Fund that uses futures contracts, which are a type of derivative, is subject
to the risk of loss caused
by unanticipated market movements. In addition, there may at times be an
imperfect correlation between the movement
in the prices of futures contracts and the value of their underlying instruments
or indexes, and there may at times
not be a liquid secondary market for certain futures contracts.
High
Yield Securities Risk.
High yield securities and unrated securities of similar credit quality (commonly
known as “junk
bonds”) are considered speculative and have a much greater risk of default (or
in the case of bonds currently in default,
of not returning principal) and their values tend to be more volatile than
higher-rated securities with similar maturities.
Additionally, these securities tend to be less liquid and more difficult to
value than higher-rated securities.
Loan
Risk.
Loans may be unrated, less liquid and more difficult to value than traditional
debt securities. Loans may be made
to finance highly leveraged corporate operations or acquisitions. The highly
leveraged capital structure of the borrowers
in such transactions may make such loans especially vulnerable to adverse
changes in financial, economic or
market conditions. Loans generally are subject to restrictions on transfer, and
only limited opportunities may exist to sell
such loans in secondary markets. As a result, a Fund may be unable to sell loans
at a desired time or price. If the Fund
acquires only an assignment or a participation in a loan made by a third party,
the Fund may not be able to control
amendments, waivers or the exercise of any remedies that a lender would have
under a direct loan and may assume
liability as a lender.
Management
Risk.
Investment decisions, techniques, analyses or models implemented by a Fund’s
manager or sub-adviser
in seeking to achieve the Fund’s investment objective may not produce the
returns expected, may cause the
Fund’s shares to lose value or may cause the Fund to underperform other funds
with similar investment objectives.
Market
Risk.
The values of, and/or the income generated by, securities held by a Fund may
decline due to general market
conditions or other factors, including those directly involving the issuers of
such securities. Securities markets are
volatile and may decline significantly in response to adverse issuer,
regulatory, political, or economic developments.
Different sectors of the market and different security types may react
differently to such developments. Political,
geopolitical, natural and other events, including war, terrorism, trade
disputes, government shutdowns, market
closures, inflation, natural and environmental disasters, epidemics, pandemics
and other public health crises and
related events have led, and in the future may lead, to economic uncertainty,
decreased economic activity, increased
market volatility and other disruptive effects on U.S. and global economies and
markets. Such events may have
significant adverse direct or indirect effects on a Fund and its investments. In
addition, economies and financial markets
throughout the world are becoming increasingly interconnected, which increases
the likelihood that events or conditions
in one country or region will adversely impact markets or issuers in other
countries or regions.
Mortgage-
and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities are subject to risk of default on
the
underlying mortgages or assets, particularly during periods of economic
downturn. Defaults on the underlying mortgages
or assets may cause such securities to decline in value and become less liquid.
Rising interest rates tend to extend
the duration of these securities, making them more sensitive to changes in
interest rates than instruments with fixed
payment schedules. As a result, in a period of rising interest rates, these
securities may exhibit additional volatility.
When interest rates decline or are low, borrowers may pay off their mortgage or
other debts sooner than expected,
which can reduce the returns of a Fund. Funds that may enter into mortgage
dollar roll transactions are subject
to the risk that the market value of the securities that are required to be
repurchased in the future may decline below
the agreed upon repurchase price. They also involve the risk that the party to
whom the securities are sold may become
insolvent, limiting a Fund’s ability to repurchase securities at the agreed upon
price.
Swaps
Risk.
Depending on their structure, swap agreements and options to enter into swap
agreements (“swaptions”), both
of which are types of derivatives, may increase or decrease a Fund’s exposure to
long- or short-term interest rates, foreign
currency values, mortgage-backed securities, corporate borrowing rates, or
credit events or other reference points
such as security prices or inflation rates.
U.S.
Government Obligations Risk.
U.S. Government obligations may be adversely impacted by changes in interest
rates,
and securities issued or guaranteed by U.S. Government agencies or
government-sponsored entities may not be
22 |
|
Taxable
Fixed Income Funds |
backed
by the full faith and credit of the U.S. Government. If a government-sponsored
entity is unable to meet its obligations
or its creditworthiness declines, the performance of a Fund that holds
securities issued or guaranteed by the
entity will be adversely impacted. U.S. Government obligations may be adversely
affected by a default by, or decline
in the credit quality, of the U.S. Government.
Portfolio
Holdings Information
A
description of the Allspring
Funds’ policies and procedures with respect to disclosure of the Funds’ portfolio
holdings is
available in the Funds’
Statement of Additional Information.
Pricing Fund
Shares
A Fund’s net
asset value (“NAV”) is the value of a single share. The NAV is calculated as of
the close of regular trading on the
New York Stock Exchange (“NYSE”) (generally 4:00 p.m. Eastern time) on each day
that the NYSE is open, although a Fund
may deviate from this calculation time under unusual or unexpected
circumstances.
The NAV is calculated
separately for each class of shares of a multiple-class Fund. The most recent
NAV for each class of a Fund is available
at allspringglobal.com. To calculate the NAV of a Fund’s
shares, the Fund’s
assets are valued and totaled, liabilities
are subtracted, and the balance, called net assets, is divided by the number of
shares outstanding. The price at
which a purchase or redemption request is processed is based on the next NAV
calculated after the request is received
in good order. Generally, NAV is not calculated, and purchase and redemption
requests are not processed, on days
that the NYSE is closed for trading; however, under unusual or unexpected
circumstances, a Fund
may elect to remain
open even on days that the NYSE is closed or closes early. To the extent
that a Fund’s
assets are traded in various
markets on days when the Fund
is closed, the value of the Fund’s
assets may be affected on days when you are unable
to buy or sell Fund
shares. Conversely, trading in some of a Fund’s
assets may not occur on days when the Fund
is
open.
With
respect to any portion of a Fund’s
assets that may be invested in other mutual funds, the value of
the Fund’s
shares is
based on the NAV of the shares of the other mutual funds in which
the Fund
invests. The valuation methods used by mutual
funds in pricing their shares, including the circumstances under which they will
use fair value pricing and the effects
of using fair value pricing, are included in the prospectuses of such funds. To
the extent a Fund
invests a portion of
its assets in non-registered investment vehicles, the Fund’s
interests in the non-registered vehicles are fair valued at NAV.
With
respect to a Fund’s
assets invested directly in securities, the Fund’s
investments are generally valued at current market
prices. Equity securities, options and futures are generally valued at the
official closing price or, if none, the last reported
sales price on the primary exchange or market on which they are listed (closing
price). Equity securities that are
not traded primarily on an exchange are generally valued at the quoted bid price
obtained from a broker-dealer.
Debt
securities are valued at the evaluated bid price provided by an independent
pricing service or, if a reliable price is not
available, the quoted bid price from an independent broker-dealer.
We
are required to depart from these general valuation methods and use fair value
pricing methods to determine the values
of certain investments if we believe that the closing price or the quoted bid
price of a security, including a security
that trades primarily on a foreign exchange, does not accurately reflect its
current market value as of the time a Fund
calculates its NAV. The closing price or the quoted bid price of a security may
not reflect its current market value
if, among other things, a significant event occurs after the closing price or
quoted bid price are made available, but
before the time as of which a Fund
calculates its NAV, that materially affects the value of the security. We use
various
criteria, including a systemic evaluation of U.S. market moves after the close
of foreign markets, in deciding whether
a foreign security’s market price is still reliable and, if not, what fair
market value to assign to the security. In addition,
we use fair value pricing to determine the value of investments in securities
and other assets, including illiquid
securities, for which current market quotations or evaluated prices from a
pricing service or broker-dealer are not
readily available.
The
fair value of a Fund’s
securities and other assets is determined in good faith pursuant to policies and
procedures adopted
by the Fund’s
Board of Trustees. Pursuant to such policies and procedures, the Board has
appointed the Manager
as the Fund’s valuation designee (the “Valuation Designee”) to perform all fair
valuations of the Fund’s portfolio
investments, subject to the Board’s oversight. As the Valuation Designee, the
Manager has established procedures
for its fair valuation of the Fund’s portfolio investments. These procedures
address, among other things, determining
when market quotations are not readily available or reliable and the
methodologies to be used for
Taxable
Fixed Income Funds
|
|
23 |
determining
the fair value of investments, as well as the use and oversight of third-party
pricing services for fair valuation.
In light of the judgment involved in making fair value decisions, there can be
no assurance that a fair value assigned
to a particular security is accurate or that it reflects the price that the
Fund could
obtain for such security if it were
to sell the security at the time as of which fair value pricing is determined.
Such fair value pricing may result in NAVs
that are higher or lower than NAVs based on the closing price or quoted bid
price. See the Statement of Additional
Information for additional details regarding the determination of
NAVs.
24 |
|
Taxable
Fixed Income Funds |
Management
of the Funds
The
Manager
Allspring
Funds Management, LLC (“Allspring
Funds Management”), headquartered at 1415 Vantage Park Drive, 3rd Floor,
Charlotte, NC 28203, provides advisory
and Fund level administrative services to the Funds
pursuant to an investment
management agreement (the “Management Agreement”). Allspring
Funds Management is a wholly owned subsidiary
of Allspring Global Investments Holdings, LLC, a holding company indirectly
owned by certain private funds of
GTCR LLC and Reverence Capital Partners, L.P. Allspring Funds Management is a
registered investment adviser that provides
advisory services for registered mutual funds, closed-end funds and other funds
and accounts.
Allspring
Funds Management is responsible for implementing the investment objectives and
strategies of the Funds.
Allspring
Funds Management’s investment professionals review and analyze the 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 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 |
Core
Plus Bond Fund |
0.25% |
Short
Duration Government Bond Fund |
0.30% |
Short-Term
Bond Plus Fund |
0.26% |
Taxable
Fixed Income Funds
|
|
25 |
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 manager
to the Funds.
The Statement of Additional Information provides additional
information about the portfolio
managers’ compensation, other accounts managed by the portfolio
managers
and the portfolio
managers’ ownership of securities in the Funds.
Allspring
Global Investments, LLC
(“Allspring Investments”) is a registered investment adviser located
at 1415 Vantage Park
Drive, 3rd Floor, Charlotte, NC 28203. Allspring Investments, an affiliate of
Allspring Funds Management and wholly
owned subsidiary of Allspring Global Investments Holdings, LLC, is a
multi-boutique asset management firm committed
to delivering superior investment services to institutional clients, including
mutual funds.
|
|
Maulik
Bhansali, CFA Short
Duration Government Bond
Fund |
Mr.
Bhansali joined Allspring Investments in 2001, where he currently serves
as a Senior
Portfolio Manager and co-head of the Core Fixed Income
team. |
Christopher
Y. Kauffman, CFA Core
Plus Bond Fund Short-Term
Bond Plus Fund |
Mr.
Kauffman joined Allspring Investments or one of its affiliate firms in
2003, where
he currently serves as a Senior Portfolio Manager for the Plus Fixed
Income team. |
Janet
S. Rilling, CFA, CPA Core
Plus Bond Fund Short-Term
Bond Plus Fund |
Ms.
Rilling joined Allspring Investments or one of its predecessor firms in
1995, where
she currently serves as a Senior Portfolio Manager and head of the Plus
Fixed
Income team. |
Michael
J. Schueller, CFA Core
Plus Bond Fund Short-Term
Bond Plus Fund |
Mr.
Schueller joined Allspring Investments or one of its predecessor firms in
2000,
where he currently serves as a Senior Portfolio Manager for the Plus Fixed
Income
team. |
Michal
Stanczyk Core
Plus Bond Fund Short-Term
Bond Plus Fund |
Mr.
Stanczyk joined Allspring Investments or one of its predecessor firms in
2007,
where he currently serves as a Portfolio Manager for the Plus Fixed
Income
team. |
Jarad
Vasquez Short
Duration Government Bond
Fund |
Mr.
Vasquez joined Allspring Investments or one of its predecessor firms in
2007,
where he currently serves as a Senior Portfolio Manager and co-head of
the
Core Fixed Income team. |
Noah
M. Wise, CFA Core
Plus Bond Fund Short-Term
Bond Plus Fund |
Mr.
Wise joined Allspring Investments or one
of its predecessor firms in 2008, where
he currently serves as a Senior Portfolio Manager for the Plus Fixed
Income team. |
Multi-Manager
Arrangement
The Funds
and Allspring
Funds Management have obtained an exemptive order from the SEC that
permits Allspring
Funds
Management, subject to Board approval, to select certain sub-advisers and enter
into or amend sub-advisory agreements
with them, without obtaining shareholder approval. The SEC order extends to
sub-advisers that are not otherwise
affiliated with Allspring
Funds Management or the Funds,
as well as sub-advisers that are wholly-owned subsidiaries
of Allspring
Funds Management or of a company that wholly owns Allspring
Funds Management. In addition,
the SEC staff, pursuant to no-action relief, has extended multi-manager relief
to any affiliated sub-adviser, such
as affiliated sub-advisers that are not wholly-owned subsidiaries of
Allspring
Funds Management or of a company that
wholly owns Allspring
Funds Management, provided certain conditions are satisfied (all such
sub-advisers covered by
the order or relief, “Multi-Manager Sub-Advisers”).
As
such, Allspring
Funds Management, with Board approval, may hire or replace Multi-Manager
Sub-Advisers for each Fund
that is eligible to rely on the order or relief. Allspring
Funds Management, subject to Board oversight, has the responsibility
to oversee Multi-Manager Sub-Advisers and to recommend their hiring, termination
and replacement. If a new
sub-adviser is hired for a Fund pursuant to the order or relief, the Fund is
required to notify shareholders within 90 days.
The Funds are
not required to disclose the individual fees that Allspring
Funds Management pays to a Multi-Manager
Sub-Adviser.
26 |
|
Taxable
Fixed Income Funds |
Account
Information
Share
Class Eligibility
Class
R6 shares are generally available for employer sponsored retirement and benefit
plans and through intermediaries
for the accounts of their customers to certain institutional and fee-based
investors, and in each case, only
if a dealer agreement is in place with Allspring
Funds Distributor, LLC to offer Class R6 shares. The following investors
may purchase Class R6 shares:
■ |
Employer
sponsored retirement plans held in plan level or omnibus accounts,
including but not limited to: 401(k) plans,
457 plans, profit sharing and money purchase pension plans, defined
benefit plans, target benefit plans and non-qualified
deferred compensation plans; |
■ |
Employee
benefit plan programs; |
■ |
Broker-dealer
managed account or wrap programs that charge an asset-based fee where
omnibus accounts are held on
the books of the Fund; |
■ |
Registered
investment adviser mutual fund wrap programs or other accounts that charge
a fee for advisory, investment,
consulting or similar services where omnibus accounts are held on the
books of the Fund; |
■ |
Private
bank and trust company managed accounts or wrap programs that charge an
asset-based fee; |
■ |
Funds
of funds, including those managed by Allspring
Funds Management; |
■ |
Institutional
investors purchasing shares through an intermediary where omnibus accounts
are held on the books of the
Fund including trust departments, insurance companies, foundations, local,
city, and state governmental institutions,
private banks, endowments, non-profits, and charitable
organizations; |
■ |
Investors
purchasing shares through an intermediary, acting solely as a broker on
behalf of its customers, that holds such
shares in an omnibus account and charges investors a transaction based
commission outside of the Fund. In order
to offer Fund shares, an intermediary must have an agreement with the
Fund’s distributor authorizing the use of
the share class within this type of
platform. |
The
information in this Prospectus is not intended for distribution to, or use by,
any person or entity in any non-U.S. jurisdiction
or country where such distribution or use would be contrary to any law or
regulation, or which would subject
Fund shares to any registration requirement within such jurisdiction or
country.
Share
Class Features
The
table below summarizes the key features of the share class offered through this
Prospectus. Please note that if you purchase
shares through an intermediary that acts as a broker on your behalf, you may be
required to pay a commission
to your intermediary in an amount determined and separately disclosed to you by
the intermediary. Consult
your financial professional for further details.
|
|
|
|
Class
R6 |
Initial
Sales Charge |
|
None |
Contingent
Deferred Sales Charge (“CDSC”) |
|
None |
Ongoing
Distribution (“12b-1”) Fees |
|
None |
Compensation
to Financial Professionals and Intermediaries
No
compensation is paid to intermediaries from Fund assets on sales of Class R6
shares or for related services. Class R6
shares do not carry sales commissions or pay Rule 12b-1 fees, or make payments
to intermediaries to assist in, or in connection
with, the sale of Fund shares. Neither the manager, the distributor nor their
affiliates make any type of administrative
or service payments to intermediaries in connection with investments in Class R6
shares.
Taxable
Fixed Income Funds
|
|
27 |
Buying
and Selling Fund Shares
Eligible
retirement plans may make Class
R6 shares available to plan participants by contacting certain
intermediaries that
have dealer agreements with the distributor. These entities may impose
transaction charges. Plan participants may purchase
shares through their retirement plan’s administrator or record-keeper by
following the process outlined in the terms
of their plan.
Redemption
requests received by a retirement plan’s administrator or record-keeper from the
plan’s participants will be processed
according to the terms of the plan’s account with its intermediary. Plan
participants should follow the process
for selling fund shares outlined in the terms of their plan.
Requests
in “Good Order”.
All purchase and redemption requests must be received in “good order.” This
means that a request
generally must include:
■ |
The
Fund name(s), share class(es) and account
number(s); |
■ |
The
amount (in dollars or shares) and type (purchase or redemption) of the
request; |
■ |
For
purchase requests, payment of the full amount of the purchase request;
and |
■ |
Any
supporting legal documentation that may be
required. |
Purchase
and redemption requests in good order will be processed at the next NAV
calculated after the Fund’s transfer agent
or an authorized intermediary1
receives your request. If your request is not received in good order, additional
documentation
may be required to process your transaction. We reserve the right to waive any
of the above requirements.
1. |
The
Fund’s shares may be purchased through an intermediary that has entered
into a dealer agreement with the Fund’s distributor. The
Fund has approved the acceptance of a purchase or redemption request
effective as of the time of its receipt by such an authorized
intermediary or its designee, as long as the request is received by one of
those entities prior to the Fund’s closing time. These
intermediaries may charge transaction fees. We reserve the right to adjust
the closing time in certain circumstances. |
Timing
of Redemption Proceeds.
We normally will send out redemption proceeds within one business day after we
accept
your request to redeem. We reserve the right to delay payment for up to seven
days. Payment of redemption proceeds
may be delayed for longer than seven days under extraordinary circumstances or
as permitted by the SEC in order
to protect remaining shareholders. Such extraordinary circumstances are
discussed further in the Statement of Additional
Information.
Exchanging
Fund Shares
Exchanges
between two funds involve two transactions: (1) the redemption of shares of one
fund; and (2) the purchase of
shares of another. In general, the same rules and procedures described under
“Buying and Selling Fund Shares” apply
to exchanges. There are, however, additional policies and considerations you
should keep in mind while making or
considering an exchange:
■ |
In
general, exchanges may be made between like share classes of any fund in
the Allspring
Funds complex offered to
the general public for investment (i.e., a fund not closed to new
accounts), with the following exceptions: (1) Class A
shares of non-money market funds may also be exchanged for Service Class
shares of any retail or government money
market fund; (2) Service Class shares may be exchanged for Class A shares
of any non-money market fund; and
(3) no exchanges are allowed into institutional money market
funds. |
■ |
If
you make an exchange between Class A shares of a money market fund or
Class A2 or Class A shares of a non-money
market fund, you will buy the shares at the public offering price of the
new fund, unless you are otherwise
eligible to buy shares at NAV. |
■ |
Same-fund
exchanges between share classes are permitted subject to the following
conditions: (1) the shareholder must
meet the eligibility guidelines of the class being purchased in the
exchange; (2) exchanges out of Class A and Class
C shares would not be allowed if shares are subject to a CDSC; and (3) for
non-money market funds, in order to exchange
into Class A shares, the shareholder must be able to qualify to purchase
Class A shares at NAV based on current
Prospectus guidelines. |
■ |
An
exchange request will be processed on the same business day, provided that
both funds are open at the time the request
is received. If one or both funds are closed, the exchange will be
processed on the following business day. |
■ |
You
should carefully read the Prospectus for the Fund into which you wish to
exchange. |
■ |
Every
exchange involves redeeming fund shares, which may produce a capital gain
or loss for tax purposes. |
■ |
If
you are making an initial investment into a fund through an exchange, you
must exchange at least the minimum initial
investment amount for the new fund, unless your balance has fallen below
that amount due to investment performance. |
28 |
|
Taxable
Fixed Income Funds |
■ |
If
you are making an additional investment into a fund that you already own
through an exchange, you must exchange
at least the minimum subsequent investment amount for the fund you are
exchanging into. |
■ |
Class
A and Class C share exchanges will not trigger a CDSC. The new shares
received in the exchange will continue to
age according to the original shares’ CDSC schedule and will be charged
the CDSC applicable to the original shares
upon redemption. |
Generally,
we will notify you at least 60 days in advance of any changes in the above
exchange policies.
Frequent
Purchases and Redemptions of Fund Shares
Allspring
Funds reserves the right to reject any purchase or exchange order for any
reason. If a shareholder redeems $20,000
or more (including redemptions that are part of an exchange transaction) from a
Covered Fund (as defined below),
that shareholder is “blocked” from purchasing shares of that Covered Fund
(including purchases that are part of
an exchange transaction) for 30 calendar days after the redemption.
Excessive
trading by Fund shareholders can negatively impact a Fund and its long-term
shareholders in several ways, including
disrupting Fund investment strategies, increasing transaction costs, decreasing
tax efficiency, and diluting the
value of shares held by long-term shareholders. Excessive trading in Fund shares
can negatively impact a Fund’s long-term
performance by requiring it to maintain more assets in cash or to liquidate
portfolio holdings at a disadvantageous
time. Certain Funds may be more susceptible than others to these negative
effects. For example, Funds
that have a greater percentage of their investments in non-U.S. securities may
be more susceptible than other Funds
to arbitrage opportunities resulting from pricing variations due to time zone
differences across international financial
markets. Similarly, Funds that have a greater percentage of their investments in
small company securities may be
more susceptible than other Funds to arbitrage opportunities due to the less
liquid nature of small company securities.
Both types of Funds also may incur higher transaction costs in liquidating
portfolio holdings to meet excessive
redemption levels. Fair value pricing may reduce these arbitrage opportunities,
thereby reducing some of the
negative effects of excessive trading.
Allspring
Funds, other than the Adjustable Rate Government Fund, Conservative Income Fund,
Ultra Short-Term Income
Fund and Ultra Short-Term Municipal Income Fund (“Ultra-Short Funds”) and the
money market funds, (the “Covered
Funds”).
The Covered Funds are not designed to serve as vehicles for frequent trading.
The Covered Funds actively
discourage and take steps to prevent the portfolio disruption and negative
effects on long-term shareholders that
can result from excessive trading activity by Covered Fund shareholders. The
Board has approved the Covered Funds’
policies and procedures, which provide, among other things, that Allspring
Funds Management may deem trading
activity to be excessive if it determines that such trading activity would
likely be disruptive to a Covered Fund by
increasing expenses or lowering returns. In this regard, the Covered Funds take
steps to avoid accommodating frequent
purchases and redemptions of shares by Covered Fund shareholders. Allspring
Funds Management monitors available
shareholder trading information across all Covered Funds on a daily basis. If a
shareholder redeems $20,000 or
more (including redemptions that are part of an exchange transaction) from a
Covered Fund, that shareholder is “blocked”
from purchasing shares of that Covered Fund (including purchases that are part
of an exchange transaction) for
30 calendar days after the redemption. This policy does not apply
to:
■ |
Dividend
reinvestments; |
■ |
Systematic
investments or exchanges where the financial intermediary
maintaining the shareholder account identifies
the transaction as a systematic redemption or purchase at the time of the
transaction; |
■ |
Rebalancing
transactions within certain asset allocation or “wrap” programs where the
financial intermediary maintaining
a shareholder account is able to identify the transaction as part of an
asset allocation program approved by
Allspring
Funds Management; |
■ |
Rebalancing
transactions by an institutional client of Allspring
Funds Management or its affiliate following a model
portfolio
offered by Allspring
Funds Management or its
affiliate; |
■ |
Transactions
initiated by a “fund of funds” or Section 529 Plan into an underlying fund
investment; |
■ |
Permitted
exchanges between share classes of the same
Fund; |
■ |
Certain
transactions involving participants in employer-sponsored retirement
plans, including: participant withdrawals
due to mandatory distributions, rollovers and hardships, withdrawals of
shares acquired by participants through
payroll deductions, and shares acquired or sold by a participant in
connection with plan loans; and |
■ |
Purchases
below $20,000 (including purchases that are part of an exchange
transaction). |
Taxable
Fixed Income Funds
|
|
29 |
The
money market funds and the Ultra-Short Funds.
Because the money market funds and Ultra-Short Funds are often used
for short-term investments, they are designed to accommodate more frequent
purchases and redemptions than the
Covered Funds. As a result, the money market funds and Ultra-Short Funds do not
anticipate that frequent purchases
and redemptions, under normal circumstances, will have significant adverse
consequences to the money market
funds or Ultra-Short Funds or their shareholders. Although the money market
funds and Ultra-Short Funds do not
prohibit frequent trading, Allspring
Funds Management will seek to prevent an investor from utilizing the
money market
funds and Ultra-Short Funds to facilitate frequent purchases and redemptions of
shares in the Covered Funds in contravention
of the policies and procedures adopted by the Covered Funds.
All
Allspring
Funds.
In addition, Allspring
Funds Management reserves the right to accept purchases, redemptions
and exchanges
made in excess of applicable trading restrictions in designated accounts held by
Allspring
Funds Management or
its affiliate that are used at all times exclusively for addressing operational
matters related to shareholder
accounts, such as testing of account functions, and are maintained at low
balances that do not exceed specified
dollar amount limitations.
In
the event that an asset allocation or “wrap” program is unable to implement the
policy outlined above, Allspring
Funds
Management may grant a program-level exception to this policy. A
financial intermediary relying on the exception
is required to provide Allspring
Funds Management with specific information regarding its program and
ongoing
information about its program upon request.
A
financial intermediary through whom you may purchase shares of the Fund may
independently attempt to identify excessive
trading and take steps to deter such activity. As a result, a financial
intermediary may on its own limit or permit
trading activity of its customers who invest in Fund shares using standards
different from the standards used by Allspring
Funds Management and discussed in this Prospectus. Allspring
Funds Management may permit a financial intermediary
to enforce its own internal policies and procedures concerning frequent trading
rather than the policies set
forth above in instances where Allspring
Funds Management reasonably believes that the intermediary’s policies
and
procedures effectively discourage disruptive trading activity. If you purchase
Fund shares through a financial intermediary,
you should contact the intermediary for more information about whether and how
restrictions or limitations
on trading activity will be applied to your account.
Account
Policies
Advance
Notice of Large Transactions.
We strongly urge you to make all purchases and redemptions of Fund shares
as
early in the day as possible and to notify us or your intermediary at least one
day in advance of transactions in Fund shares
in excess of $1 million. This will help us to manage the Funds most effectively.
When you give this advance notice,
please provide your name and account number.
Householding.
To help keep Fund expenses low, a single copy of a Prospectus or shareholder
report may be sent to shareholders
of the same household. If your household currently receives a single copy of a
Prospectus or shareholder report
and you would prefer to receive multiple copies, please call Investor Services
at 1-800-222-8222 or contact your intermediary.
Transaction
Authorizations.
We may accept telephone, electronic, and clearing agency transaction
instructions from anyone
who represents that he or she is a shareholder and provides reasonable
confirmation of his or her identity. Neither
we nor Allspring
Funds will be liable for any losses incurred if we follow such instructions we
reasonably believe to
be genuine. For transactions through our website, we may assign personal
identification numbers (PINs) and you will need
to create a login ID and password for account access. To safeguard your account,
please keep these credentials confidential.
Contact us immediately if you believe there is a discrepancy on your
confirmation statement or if you believe
someone has obtained unauthorized access to your online access
credentials.
Identity
Verification.
We are required by law to obtain from you certain personal information that will
be used to verify your
identity. If you do not provide the information, we will not be able to open
your account. In the rare event that we are
unable to verify your identity as required by law, we reserve the right to
redeem your account at the current NAV of the
Fund’s shares. You will be responsible for any losses, taxes, expenses, fees, or
other results of such a redemption.
Right
to Freeze Accounts, Suspend Account Services or Reject or Terminate an
Investment.
We reserve the right, to the
extent permitted by law and/or regulations, to freeze any account or suspend
account services when we have received
reasonable notice (written or otherwise) of a dispute between registered or
beneficial account owners or when
we believe a fraudulent transaction may occur or has occurred. Additionally, we
reserve the right to reject any purchase
or exchange request and to terminate a shareholder’s investment, including
closing the shareholder’s account.
30 |
|
Taxable
Fixed Income Funds |
Distributions
Short
Duration Government Bond Fund generally declares distributions of any net
investment income daily, and pays such
distributions monthly. Core Plus Bond Fund and Short-Term Bond Plus Fund
generally declare distributions of any net
investment income monthly, and pay such distributions monthly. For Core Plus
Bond Fund and Short-Term Bond Plus
Fund, the amount distributed in any given period may be less than the amount
earned in that period or more than the
amount earned in that period if it includes amounts earned in a previous period
but retained for later distribution. The
Funds generally make distributions of any realized net capital gains annually.
Please note that 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.
Taxable
Fixed Income Funds
|
|
31 |
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.
32 |
|
Taxable
Fixed Income 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 Fund’s
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.
Core
Plus Bond Fund
For
a share outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended August 31 |
Class
R6 |
|
2023 |
|
2022 |
|
2021 |
|
2020 |
|
2019 |
Net
asset value, beginning of period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gains (losses) on investments
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders from |
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Net
realized gains |
|
|
|
|
|
|
|
|
|
|
Total
distributions to shareholders |
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Total
return |
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
1 |
Calculated
based upon average shares outstanding |
Taxable
Fixed Income Funds
|
|
33 |
Short
Duration Government Bond Fund
For
a share outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended August 31 |
Class
R6 |
|
2023 |
|
2022 |
|
2021 |
|
2020 |
|
2019 |
Net
asset value, beginning of period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gains (losses) on investments
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders from |
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Total
return |
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
1 |
Calculated
based upon average shares outstanding |
Short-Term
Bond Plus Fund
For
a share outstanding throughout each period
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended August 31 |
Class
R6 |
|
2023 |
|
2022 |
|
2021 |
|
2020 |
|
2019 |
Net
asset value, beginning of period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gains (losses) on investments
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders from |
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Net
realized gains |
|
|
|
|
|
|
|
|
|
|
Total
distributions to shareholders |
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
Total
return |
|
|
|
|
|
|
|
|
|
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
Supplemental
data |
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000s omitted) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
1 |
Calculated
based upon average shares outstanding |
34 |
|
Taxable
Fixed Income 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. |
|
|
©
2024
Allspring Global Investments Holdings, LLC. All rights
reserved. |
PRO4689
01-24 ICA
Reg. No. 811-09253 |