2023-10-24TaxableFixedIncomeFunds-Retail-January
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Prospectus
January
1, 2024 |
Taxable
Fixed Income Funds
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Fund |
Administrator
Class |
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Allspring
Adjustable Rate Government Fund |
ESADX |
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Allspring
Core Plus Bond Fund |
WIPDX |
|
Allspring
Government Securities Fund |
WGSDX |
|
Allspring
High Yield Bond Fund |
EKHYX |
|
Allspring
Short Duration Government Bond Fund |
MNSGX |
|
Allspring
Short-Term High Income Fund |
WDHYX |
|
Allspring
Ultra Short-Term Income Fund |
WUSDX |
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.
Adjustable
Rate Government 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.
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Shareholder
Fees (fees paid directly from your investment)
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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 |
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|
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
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|
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|
Management
Fees |
0.35% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
0.45% |
|
Total
Annual Fund Operating Expenses |
0.80% |
|
Fee
Waivers |
(0.20)% |
|
Total
Annual Fund Operating Expenses After Fee Waivers1
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% |
| 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
0.60%
for Administrator
Class. Brokerage commissions, stamp
duty fees, interest, taxes, acquired fund fees and expenses (if any), and
extraordinary expenses are excluded from the expense
cap. Prior to or after the commitment expiration date, the cap may be
increased or the commitment to maintain the cap may
be terminated only with the approval of the Board of
Trustees. |
Example
of Expenses
The
example below is intended to help you compare the costs of investing in the Fund
with the costs of investing in other
funds. The example assumes a $10,000 initial investment, 5% annual total return,
and that fees and expenses remain
the same as in the tables above. To the extent that the Manager is waiving fees
or reimbursing expenses, the example
assumes that such waiver or reimbursement will only be in place through the date
noted above. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
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After:
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1
Year |
$61 |
|
3
Years |
$235 |
|
5
Years |
$424 |
|
10
Years |
$971 |
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 12%
of
the average value of its portfolio.
| 2 |
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Taxable
Fixed Income Funds |
Principal
Investment Strategies
Under
normal circumstances, we invest:
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■ |
at
least 80% of the Fund’s net assets in mortgage-backed and asset-backed
securities issued or guaranteed by U.S. Government
agencies or government-sponsored entities, that have interest rates that
reset at periodic intervals;
and |
|
■ |
up
to 20% of the Fund’s total assets in obligations that pay fixed interest
rates. |
We
invest principally in mortgage-backed securities (including collateralized
mortgage obligations (CMOs)) and asset-backed
securities issued or guaranteed by U.S. Government agencies or
government-sponsored entities. Under normal
circumstances, we expect to maintain an average credit quality rating for the
portfolio equivalent to the highest rating
available from a Nationally Recognized Statistical Ratings Organization (NRSRO).
In the event that a NRSRO assigns
U.S. sovereign debt a rating below its highest rating, we expect to maintain an
average credit quality rating that is
equivalent to the average rating assigned to U.S. sovereign debt. We
may also use futures for duration and yield curve
management. As part of our mortgage-backed securities investment strategy, we
may enter into dollar roll transactions.
Under normal circumstances, the dollar-weighted average reset period of the
adjustable rate securities held
by the Fund will not exceed one year.
We
employ a top-down, macroeconomic outlook to determine the portfolio’s duration,
yield curve positioning, issuer selection
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 select the specific
securities for investment. Elements
of this evaluation may include the effect of changing principal prepayments,
interest rate and yield spread volatility,
and the impact of changes in the level and shape of the yield curve on a
security’s value. We may sell a security
based on how we expect these factors to affect a security’s value relative to
its indicated sales price 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.
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.
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.
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
| Taxable
Fixed Income Funds
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3 |
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.
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.
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.
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.
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Calendar
Year Total Returns for Administrator Class as of 12/31 each
year |
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Highest
Quarter:
June
30,
2020 |
|
Lowest
Quarter:
March
31,
2020 |
|
Year-to-date
total return
as of September
30, 2023
is +3.39% |
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Average
Annual Total Returns for the periods ended
12/31/2022 |
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Inception
Date
of Share
Class |
1
Year |
5
Year |
10
Year |
|
Administrator
Class (before taxes) |
7/30/2010
|
-0.36% |
1.14% |
0.79% |
|
Administrator
Class (after taxes on distributions) |
7/30/2010
|
-1.33% |
0.43% |
0.26% |
|
Administrator
Class (after taxes on distributions and the
sale of Fund Shares) |
7/30/2010
|
0.00% |
0.60% |
0.39% |
|
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction
for fees, expenses, or taxes) |
|
-13.01% |
0.02% |
1.06% |
|
Bloomberg
6-Month Treasury Bill Index (reflects no deduction
for fees, expenses, or taxes) |
|
1.26% |
1.37% |
0.91% |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect
the impact of state, local or foreign taxes.
Actual
after-tax returns depend on an investor’s tax situation and may differ
from those shown, and after-tax returns shown are not relevant to tax-exempt
investors or investors who hold their
Fund shares through tax-deferred arrangements, such as 401(k) Plans or
Individual Retirement
Accounts.
| 4 |
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Taxable
Fixed Income Funds |
Fund
Management
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Manager |
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
|
Allspring Funds
Management,
LLC |
Allspring
Global Investments,
LLC |
Christopher
Y. Kauffman, CFA,
Portfolio Manager / 2008
Michal
Stanczyk,
Portfolio Manager / 2015 |
Purchase
and Sale of Fund Shares
Administrator
Class shares are generally available through intermediaries for the
accounts of their customers and directly
to institutional investors and individuals. Institutional investors may include
corporations; private banks and trust
companies; endowments and foundations; defined contribution, defined benefit and
other employer sponsored retirement
plans; institutional retirement plan platforms; insurance companies; registered
investment advisor firms; bank
trusts; 529 college savings plans; family offices; and funds of funds, including
those managed by Allspring
Funds Management.
In general, you can buy or sell shares of the Fund online or by mail, phone or
wire, on any day the New York
Stock Exchange is open for regular trading. You also may buy and sell shares
through a financial professional.
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Minimum
Investments |
To
Buy or Sell Shares |
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Minimum
Initial Investment
Administrator
Class: $1 million (this amount may be reduced or eliminated for
certain
eligible investors)
Minimum
Additional Investment
Administrator
Class: None |
Mail:
Allspring
Funds
P.O.
Box 219967
Kansas
City, MO 64121-9967
Online:
allspringglobal.com
Phone
or Wire:
1-800-222-8222
Contact
your financial professional. |
Tax
Information
Any
distributions you receive from the Fund may be taxable as ordinary income or
capital gains, except when your investment
is in an IRA, 401(k) or other tax-advantaged investment plan. However,
subsequent withdrawals from such a tax-advantaged
investment plan may be subject to federal income tax. You should consult your
tax adviser about your specific
tax situation.
Payments
to Intermediaries
If
you purchase a Fund through an intermediary, the Fund and its related companies
may pay the intermediary for the sale
of Fund shares and related services. These payments may create a conflict of
interest by influencing the intermediary
and your financial professional to recommend the Fund over another investment.
Consult your financial professional
or visit your intermediary’s website for more information.
| Taxable
Fixed Income Funds
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5 |
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 |
0.37% |
|
Acquired
Fund Fees and Expense |
0.01% |
|
Total
Annual Fund Operating Expenses |
0.79% |
|
Fee
Waivers |
(0.18)% |
|
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
0.60%
for Administrator
Class. Brokerage commissions, stamp
duty fees, interest, taxes, acquired fund fees and expenses (if any), and
extraordinary expenses are excluded from the expense
cap. Prior to or after the commitment expiration date, the cap may be
increased or the commitment to maintain the cap may
be terminated only with the approval of the Board of
Trustees. |
Example
of Expenses
The
example below is intended to help you compare the costs of investing in the Fund
with the costs of investing in other
funds. The example assumes a $10,000 initial investment, 5% annual total return,
and that fees and expenses remain
the same as in the tables above. To the extent that the Manager is waiving fees
or reimbursing expenses, the example
assumes that such waiver or reimbursement will only be in place through the date
noted above. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
|
|
|
|
|
After:
|
|
|
1
Year |
$62 |
|
3
Years |
$234 |
|
5
Years |
$421 |
|
10
Years |
$961 |
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.
| 6 |
|
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
|
|
7 |
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.
| 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 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 Administrator Class as of 12/31 each
year |
|
|
Highest
Quarter:
June
30,
2020 |
|
Lowest
Quarter:
June
30,
2022 |
|
Year-to-date
total return
as of September
30, 2023
is -0.42% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2022 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
10
Year |
|
Administrator
Class (before taxes) |
7/30/2010
|
-13.95% |
0.82% |
2.04% |
|
Administrator
Class (after taxes on distributions) |
7/30/2010
|
-14.93% |
-0.52% |
0.83% |
|
Administrator
Class (after taxes on distributions and the
sale of Fund Shares) |
7/30/2010
|
-8.24% |
0.14% |
1.07% |
|
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction
for fees, expenses, or taxes) |
|
-13.01% |
0.02% |
1.06% |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect
the impact of state, local or foreign taxes.
Actual
after-tax returns depend on an investor’s tax situation and may differ
from those shown, and after-tax returns shown are not relevant to tax-exempt
investors or investors who hold their
Fund shares through tax-deferred arrangements, such as 401(k) Plans or
Individual Retirement
Accounts.
| Taxable
Fixed Income Funds
|
|
9 |
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
Administrator
Class shares are generally available through intermediaries for the
accounts of their customers and directly
to institutional investors and individuals. Institutional investors may include
corporations; private banks and trust
companies; endowments and foundations; defined contribution, defined benefit and
other employer sponsored retirement
plans; institutional retirement plan platforms; insurance companies; registered
investment advisor firms; bank
trusts; 529 college savings plans; family offices; and funds of funds, including
those managed by Allspring
Funds Management.
In general, you can buy or sell shares of the Fund online or by mail, phone or
wire, on any day the New York
Stock Exchange is open for regular trading. You also may buy and sell shares
through a financial professional.
|
|
|
Minimum
Investments |
To
Buy or Sell Shares |
|
Minimum
Initial Investment
Administrator
Class: $1 million (this amount may be reduced or eliminated for
certain
eligible investors)
Minimum
Additional Investment
Administrator
Class: None |
Mail:
Allspring
Funds
P.O.
Box 219967
Kansas
City, MO 64121-9967
Online:
allspringglobal.com
Phone
or Wire:
1-800-222-8222
Contact
your financial professional. |
Tax
Information
Any
distributions you receive from the Fund may be taxable as ordinary income or
capital gains, except when your investment
is in an IRA, 401(k) or other tax-advantaged investment plan. However,
subsequent withdrawals from such a tax-advantaged
investment plan may be subject to federal income tax. You should consult your
tax adviser about your specific
tax situation.
Payments
to Intermediaries
If
you purchase a Fund through an intermediary, the Fund and its related companies
may pay the intermediary for the sale
of Fund shares and related services. These payments may create a conflict of
interest by influencing the intermediary
and your financial professional to recommend the Fund over another investment.
Consult your financial professional
or visit your intermediary’s website for more information.
| 10 |
|
Taxable
Fixed Income Funds |
Government
Securities Fund Summary
Investment
Objective
The
Fund seeks current income.
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 |
0.45% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
0.40% |
|
Total
Annual Fund Operating Expenses |
0.85% |
|
Fee
Waivers |
(0.21)% |
|
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
0.64%
for Administrator
Class. Brokerage commissions, stamp
duty fees, interest, taxes, acquired fund fees and expenses (if any), and
extraordinary expenses are excluded from the expense
cap. Prior to or after the commitment expiration date, the cap may be
increased or the commitment to maintain the cap may
be terminated only with the approval of the Board of
Trustees. |
Example
of Expenses
The
example below is intended to help you compare the costs of investing in the Fund
with the costs of investing in other
funds. The example assumes a $10,000 initial investment, 5% annual total return,
and that fees and expenses remain
the same as in the tables above. To the extent that the Manager is waiving fees
or reimbursing expenses, the example
assumes that such waiver or reimbursement will only be in place through the date
noted above. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
|
|
|
|
|
After:
|
|
|
1
Year |
$65 |
|
3
Years |
$250 |
|
5
Years |
$451 |
|
10
Years |
$1,029 |
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 152%
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 U.S. Government obligations and
repurchase agreements collateralized by U.S.
Government obligations;
and |
|
■ |
up
to 20% of the Fund’s net assets in non-government investment-grade debt
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. These securities may
have fixed, floating or variable
rates and also include mortgage-backed securities. As part of our
mortgage-backed securities investment strategy,
we may enter into dollar rolls. We may also use futures for duration and yield
curve management.
We
employ a top-down, macroeconomic outlook to determine the portfolio’s duration,
yield curve positioning and sector
allocation. Macroeconomic factors considered may include, among others, the pace
of economic growth, employment
conditions, 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 select the specific securities for investment. Elements
of this evaluation may include duration
measurements, historical yield spread relationships, volatility trends, mortgage
refinance rates, as well as other
factors. We may sell a security due to changes in our 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.
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.
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.
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.
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
| 12 |
|
Taxable
Fixed Income Funds |
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.
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 Administrator Class as of 12/31 each
year |
|
|
Highest
Quarter:
March
31,
2020 |
|
Lowest
Quarter:
March
31,
2022 |
|
Year-to-date
total return
as of September
30, 2023
is -1.95% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2022 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
10
Year |
|
Administrator
Class (before taxes) |
4/8/2005
|
-12.98% |
-0.47% |
0.46% |
|
Administrator
Class (after taxes on distributions) |
4/8/2005
|
-13.60% |
-1.23% |
-0.31% |
|
Administrator
Class (after taxes on distributions and the
sale of Fund Shares) |
4/8/2005
|
-7.67% |
-0.65% |
0.04% |
|
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction
for fees, expenses, or taxes) |
|
-13.01% |
0.02% |
1.06% |
|
Bloomberg
U.S. Aggregate ex Credit Index (reflects no
deduction for fees, expenses, or taxes) |
|
-12.05% |
-0.20% |
0.70% |
|
Bloomberg
U.S. Government Intermediate Bond Index
(reflects no deduction for fees, expenses, or taxes)
|
|
-7.73% |
0.46% |
0.69% |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect
the impact of state, local or foreign taxes.
Actual
after-tax returns depend on an investor’s tax situation and may differ
from those shown, and after-tax returns shown are not relevant to tax-exempt
investors or investors who hold their
Fund shares through tax-deferred arrangements, such as 401(k) Plans or
Individual Retirement
Accounts.
| Taxable
Fixed Income Funds
|
|
13 |
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
Michal
Stanczyk,
Portfolio Manager / 2017 |
Purchase
and Sale of Fund Shares
Administrator
Class shares are generally available through intermediaries for the
accounts of their customers and directly
to institutional investors and individuals. Institutional investors may include
corporations; private banks and trust
companies; endowments and foundations; defined contribution, defined benefit and
other employer sponsored retirement
plans; institutional retirement plan platforms; insurance companies; registered
investment advisor firms; bank
trusts; 529 college savings plans; family offices; and funds of funds, including
those managed by Allspring
Funds Management.
In general, you can buy or sell shares of the Fund online or by mail, phone or
wire, on any day the New York
Stock Exchange is open for regular trading. You also may buy and sell shares
through a financial professional.
|
|
|
Minimum
Investments |
To
Buy or Sell Shares |
|
Minimum
Initial Investment
Administrator
Class: $1 million (this amount may be reduced or eliminated for
certain
eligible investors)
Minimum
Additional Investment
Administrator
Class: None |
Mail:
Allspring
Funds
P.O.
Box 219967
Kansas
City, MO 64121-9967
Online:
allspringglobal.com
Phone
or Wire:
1-800-222-8222
Contact
your financial professional. |
Tax
Information
Any
distributions you receive from the Fund may be taxable as ordinary income or
capital gains, except when your investment
is in an IRA, 401(k) or other tax-advantaged investment plan. However,
subsequent withdrawals from such a tax-advantaged
investment plan may be subject to federal income tax. You should consult your
tax adviser about your specific
tax situation.
Payments
to Intermediaries
If
you purchase a Fund through an intermediary, the Fund and its related companies
may pay the intermediary for the sale
of Fund shares and related services. These payments may create a conflict of
interest by influencing the intermediary
and your financial professional to recommend the Fund over another investment.
Consult your financial professional
or visit your intermediary’s website for more information.
| 14 |
|
Taxable
Fixed Income Funds |
High
Yield Bond Fund Summary
Investment
Objective
The
Fund seeks total return, consisting of a high level of current income
and capital appreciation.
Fees
and Expenses
These
tables are intended to help you understand the various costs and expenses you
will pay if you buy, hold and sell shares
of the Fund.
|
|
|
Shareholder
Fees (fees paid directly from your investment)
|
|
|
|
|
|
Maximum
sales charge (load) imposed on purchases (as a percentage of offering
price) |
None |
|
Maximum
deferred sales charge (load) (as a percentage of offering
price) |
None |
|
|
|
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
|
|
|
|
|
Management
Fees |
0.55% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
0.42% |
|
Total
Annual Fund Operating Expenses |
0.97% |
|
Fee
Waivers |
(0.17)% |
|
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
0.80%
for Administrator
Class. Brokerage commissions, stamp
duty fees, interest, taxes, acquired fund fees and expenses (if any), and
extraordinary expenses are excluded from the expense
cap. Prior to or after the commitment expiration date, the cap may be
increased or the commitment to maintain the cap may
be terminated only with the approval of the Board of
Trustees. |
Example
of Expenses
The
example below is intended to help you compare the costs of investing in the Fund
with the costs of investing in other
funds. The example assumes a $10,000 initial investment, 5% annual total return,
and that fees and expenses remain
the same as in the tables above. To the extent that the Manager is waiving fees
or reimbursing expenses, the example
assumes that such waiver or reimbursement will only be in place through the date
noted above. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
|
|
|
|
|
After:
|
|
|
1
Year |
$82 |
|
3
Years |
$292 |
|
5
Years |
$520 |
|
10
Years |
$1,174 |
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 53%
of
the average value of its portfolio.
| Taxable
Fixed Income Funds
|
|
15 |
Principal
Investment Strategies
Under
normal circumstances, we invest:
|
■ |
at
least 80% of the Fund’s net assets in debt securities that are
below-investment grade;
and |
|
■ |
up
to 10% of the Fund’s total assets in equity securities, including common
and preferred
stocks. |
We
invest principally in below investment-grade debt securities (often called “high
yield” securities or “junk bonds”) of corporate
issuers. These include traditional corporate bonds as well as convertible bonds.
These securities may have fixed,
floating or variable rates. We may invest in below investment-grade debt
securities of any credit quality. The average
credit quality of the Fund’s portfolio is expected to be equivalent to B or
higher based on the credit ratings assigned
to underlying securities by Moody’s, Standard & Poor’s, from other
Nationally Recognized Statistical Ratings Organizations,
or our credit quality assessment of the underlying securities. We expect the
Fund’s average effective duration
to generally be within 1.0 year of the benchmark’s duration. We may also use
futures for duration and yield curve
management. We may invest up to 15% of the Fund’s total assets in leveraged
loans. We may invest up to 10% of the
Fund’s total assets in equity securities, including common and preferred stocks.
The criteria and investment process
used to select equity securities is substantially similar to those used to
select non-investment grade debt securities.
We seek out companies that we believe have strong fundamental and valuation
attributes, including companies
that reorganized and emerged or are expected to emerge from bankruptcy. We may
invest in equity securities
of companies of any size.
Securities
in the Fund’s portfolio may be issued by domestic or foreign issuers (including
foreign governments), and may
include securities of emerging markets issuers. The Fund may invest up to 10% of
the Fund’s total assets in foreign currency-denominated
fixed income securities issued by foreign or domestic
issuers.
We
use security selection, comprehensive research and tactical portfolio management
to capitalize on opportunities in rapidly
evolving credit markets. Our investment process features tactical levers,
including security selection, sector reviews,
our proprietary RADS calibration tool, and macro insights, and a 6-month horizon
to seize market opportunities,
identify relative value, and construct a diversified portfolio. As part of our
investment process, an assessment
of environmental, social and governance (ESG) factors that are deemed to have
material business and/or financial
risk may be considered alongside other relevant factors, which may include but
are not limited to financial data
and metrics, pricing information, issue characteristics and issue structure. 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. Our credit standards
checklist, ESG assessment, and timely recommendations
are integral to our underwriting and generating best ideas. We regularly review
sectors to assess industry
fundamentals and relative valuation to generate sector thesis and targeted
sector weights. Our proprietary RADS
Calibration tool divides the high yield market into quadrants based on spread
and duration, and helps us connect investment
ideas to tactical levers, and to ensure individual investments contribute to key
portfolio objectives. We develop
investment themes harnessing macro and fundamental insights developed from
across the Allspring Fixed Income
Platform. We employ a 6-month horizon to identify bonds with spread tightening
catalysts and anticipate market
inflection points. We seek diversified sources of alpha and to capitalize on
mispriced risk in the leverage finance markets.
We
regularly review the investments of the portfolio and may sell a portfolio
holding when it has achieved its valuation target,
there is deterioration in the underlying fundamentals of the business, or we
have identified a more attractive investment
opportunity.
Principal
Investment Risks
An
investment in the Fund may lose money, is
not a deposit of a bank or its affiliates, is not insured or guaranteed by
the
Federal Deposit Insurance Corporation or any other governmental
agency,
and is primarily subject to the risks briefly
summarized below.
Market
Risk.
The values of, and/or the income generated by, securities held by the Fund may
decline due to general market
conditions or other factors, including those directly involving the issuers of
such securities. Securities markets are
volatile and may decline significantly in response to adverse issuer,
regulatory, political, or economic developments.
Different sectors of the market and different security types may react
differently to such developments.
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
| 16 |
|
Taxable
Fixed Income Funds |
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.
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.
Convertible
Securities Risk.
A convertible security has characteristics of both equity and debt securities
and, as a result,
is exposed to risks that are typically associated with both types of securities.
The market value of a convertible security
tends to decline as interest rates increase but also tends to reflect changes in
the market price of the common stock
of the issuing company.
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.
Equity
Securities Risk.
The values of equity securities may experience periods of substantial price
volatility and may decline
significantly over short time periods. In general, the values of equity
securities are more volatile than those of debt
securities. Equity securities fluctuate in value and price in response to
factors specific to the issuer of the security, such
as management performance, financial condition, and market demand for the
issuer’s products or services, as well
as factors unrelated to the fundamental condition of the issuer, including
general market, economic and political conditions.
Different parts of a market, industry and sector may react differently to
adverse issuer, market, regulatory, political,
and economic developments.
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.
Growth/Value
Investing Risk.
Securities that exhibit growth or value characteristics tend to perform
differently and shift
into and out of favor with investors depending on changes in market and economic
sentiment and conditions.
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.
| Taxable
Fixed Income Funds
|
|
17 |
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 Administrator Class as of 12/31 each
year |
|
|
Highest
Quarter:
March
31,
2019 |
|
Lowest
Quarter:
June
30,
2022 |
|
Year-to-date
total return
as of September
30, 2023
is +5.60% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2022 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
10
Year |
|
Administrator
Class (before taxes) |
4/14/1998
|
-11.18% |
0.97% |
3.12% |
|
Administrator
Class (after taxes on distributions) |
4/14/1998
|
-12.99% |
-0.75% |
1.26% |
|
Administrator
Class (after taxes on distributions and the
sale of Fund Shares) |
4/14/1998
|
-6.60% |
0.04% |
1.58% |
|
Bloomberg
U.S. Universal Bond Index (reflects no deduction
for fees, expenses, or taxes) |
|
-12.99% |
0.18% |
1.33% |
|
ICE
BofA U.S. High Yield Constrained Index (reflects no
deduction for fees, expenses, or taxes) |
|
-11.16% |
2.11% |
3.94% |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect
the impact of state, local or foreign taxes.
Actual
after-tax returns depend on an investor’s tax situation and may differ
from those shown, and after-tax returns shown are not relevant to tax-exempt
investors or investors who hold their
Fund shares through tax-deferred arrangements, such as 401(k) Plans or
Individual Retirement
Accounts.
| 18 |
|
Taxable
Fixed Income Funds |
Fund
Management
|
|
|
|
Manager |
Sub-Adviser |
Portfolio
Manager, Title/Managed Since |
|
Allspring Funds
Management, LLC |
Allspring
Global Investments, LLC |
Chris
Lee, CFA,
Portfolio Manager / 2021
Michael
J. Schueller, CFA,
Portfolio Manager/
2021 |
Purchase
and Sale of Fund Shares
Administrator
Class shares are generally available through intermediaries for the
accounts of their customers and directly
to institutional investors and individuals. Institutional investors may include
corporations; private banks and trust
companies; endowments and foundations; defined contribution, defined benefit and
other employer sponsored retirement
plans; institutional retirement plan platforms; insurance companies; registered
investment advisor firms; bank
trusts; 529 college savings plans; family offices; and funds of funds, including
those managed by Allspring
Funds Management.
In general, you can buy or sell shares of the Fund online or by mail, phone or
wire, on any day the New York
Stock Exchange is open for regular trading. You also may buy and sell shares
through a financial professional.
|
|
|
Minimum
Investments |
To
Buy or Sell Shares |
|
Minimum
Initial Investment
Administrator
Class: $1 million (this amount may be reduced or eliminated for
certain
eligible investors)
Minimum
Additional Investment
Administrator
Class: None |
Mail:
Allspring
Funds
P.O.
Box 219967
Kansas
City, MO 64121-9967
Online:
allspringglobal.com
Phone
or Wire:
1-800-222-8222
Contact
your financial professional. |
Tax
Information
Any
distributions you receive from the Fund may be taxable as ordinary income or
capital gains, except when your investment
is in an IRA, 401(k) or other tax-advantaged investment plan. However,
subsequent withdrawals from such a tax-advantaged
investment plan may be subject to federal income tax. You should consult your
tax adviser about your specific
tax situation.
Payments
to Intermediaries
If
you purchase a Fund through an intermediary, the Fund and its related companies
may pay the intermediary for the sale
of Fund shares and related services. These payments may create a conflict of
interest by influencing the intermediary
and your financial professional to recommend the Fund over another investment.
Consult your financial professional
or visit your intermediary’s website for more information.
| Taxable
Fixed Income Funds
|
|
19 |
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 |
|
|
|
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 |
0.42% |
|
Total
Annual Fund Operating Expenses |
0.77% |
|
Fee
Waivers |
(0.17)% |
|
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
0.60%
for Administrator
Class. Brokerage commissions, stamp
duty fees, interest, taxes, acquired fund fees and expenses (if any), and
extraordinary expenses are excluded from the expense
cap. Prior to or after the commitment expiration date, the cap may be
increased or the commitment to maintain the cap may
be terminated only with the approval of the Board of
Trustees. |
Example
of Expenses
The
example below is intended to help you compare the costs of investing in the Fund
with the costs of investing in other
funds. The example assumes a $10,000 initial investment, 5% annual total return,
and that fees and expenses remain
the same as in the tables above. To the extent that the Manager is waiving fees
or reimbursing expenses, the example
assumes that such waiver or reimbursement will only be in place through the date
noted above. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
|
|
|
|
|
After:
|
|
|
1
Year |
$61 |
|
3
Years |
$229 |
|
5
Years |
$411 |
|
10
Years |
$938 |
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.
| 20 |
|
Taxable
Fixed Income Funds |
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.
| Taxable
Fixed Income Funds
|
|
21 |
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 Administrator Class as of 12/31 each
year |
|
|
Highest
Quarter:
March
31,
2020 |
|
Lowest
Quarter:
March
31,
2022 |
|
Year-to-date
total return
as of September
30, 2023
is +1.13% |
|
|
|
|
|
|
|
Average
Annual Total Returns for the periods ended
12/31/2022 |
|
|
Inception
Date
of Share
Class |
1
Year |
5
Year |
10
Year |
|
Administrator
Class (before taxes) |
12/18/1992
|
-5.72% |
0.06% |
0.30% |
|
Administrator
Class (after taxes on distributions) |
12/18/1992
|
-6.49% |
-0.76% |
-0.46% |
|
Administrator
Class (after taxes on distributions and the
sale of Fund Shares) |
12/18/1992
|
-3.38% |
-0.28% |
-0.10% |
|
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% |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect
the impact of state, local or foreign taxes.
Actual
after-tax returns depend on an investor’s tax situation and may differ
from those shown, and after-tax returns shown are not relevant to tax-exempt
investors or investors who hold their
Fund shares through tax-deferred arrangements, such as 401(k) Plans or
Individual Retirement
Accounts.
| 22 |
|
Taxable
Fixed Income Funds |
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
Administrator
Class shares are generally available through intermediaries for the
accounts of their customers and directly
to institutional investors and individuals. Institutional investors may include
corporations; private banks and trust
companies; endowments and foundations; defined contribution, defined benefit and
other employer sponsored retirement
plans; institutional retirement plan platforms; insurance companies; registered
investment advisor firms; bank
trusts; 529 college savings plans; family offices; and funds of funds, including
those managed by Allspring
Funds Management.
In general, you can buy or sell shares of the Fund online or by mail, phone or
wire, on any day the New York
Stock Exchange is open for regular trading. You also may buy and sell shares
through a financial professional.
|
|
|
Minimum
Investments |
To
Buy or Sell Shares |
|
Minimum
Initial Investment
Administrator
Class: $1 million (this amount may be reduced or eliminated for
certain
eligible investors)
Minimum
Additional Investment
Administrator
Class: None |
Mail:
Allspring
Funds
P.O.
Box 219967
Kansas
City, MO 64121-9967
Online:
allspringglobal.com
Phone
or Wire:
1-800-222-8222
Contact
your financial professional. |
Tax
Information
Any
distributions you receive from the Fund may be taxable as ordinary income or
capital gains, except when your investment
is in an IRA, 401(k) or other tax-advantaged investment plan. However,
subsequent withdrawals from such a tax-advantaged
investment plan may be subject to federal income tax. You should consult your
tax adviser about your specific
tax situation.
Payments
to Intermediaries
If
you purchase a Fund through an intermediary, the Fund and its related companies
may pay the intermediary for the sale
of Fund shares and related services. These payments may create a conflict of
interest by influencing the intermediary
and your financial professional to recommend the Fund over another investment.
Consult your financial professional
or visit your intermediary’s website for more information.
| Taxable
Fixed Income Funds
|
|
23 |
Short-Term
High Income Fund Summary
Investment
Objective
The
Fund seeks total return, consisting of a high level of current income and
capital appreciation.
Fees
and Expenses
These
tables are intended to help you understand the various costs and expenses you
will pay if you buy, hold and sell shares
of the Fund.
|
|
|
Shareholder
Fees (fees paid directly from your investment)
|
|
|
|
|
|
Maximum
sales charge (load) imposed on purchases (as a percentage of offering
price) |
None |
|
Maximum
deferred sales charge (load) (as a percentage of offering
price) |
None |
|
|
|
Annual
Fund Operating Expenses (expenses that you pay each year as a percentage
of the value of your investment)
|
|
|
|
|
Management
Fees |
0.47% |
|
Distribution
(12b-1) Fees |
0.00% |
|
Other
Expenses |
0.37% |
|
Acquired
Fund Fees and Expense |
0.01% |
|
Total
Annual Fund Operating Expenses |
0.85% |
|
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
0.65%
for Administrator
Class. Brokerage commissions, stamp
duty fees, interest, taxes, acquired fund fees and expenses (if any), and
extraordinary expenses are excluded from the expense
cap. Prior to or after the commitment expiration date, the cap may be
increased or the commitment to maintain the cap may
be terminated only with the approval of the Board of
Trustees. |
Example
of Expenses
