Allspring Active ETFs
Take advantage of Allspring’s long-standing experience and expertise, now captured in actively managed ETFs.
To ETF, or not to ETF...
Are active ETFs right for you?
Whether you are seeking enhanced tax benefits, intraday trading capabilities, cost efficiency, portfolio customization, holdings transparency, active management, or other qualities in an investment, fortunately, you have choice.
Options can include investing in mutual funds, separately managed accounts (SMAs), exchange-traded funds (ETFs), and more, which can make choosing the right option challenging. Which investment type is right for you? We’re here to help.
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Our portfolio managers share their thoughts on what makes Allspring's fixed income ETFs stand out.
Transcript
Janet Rilling: I'm excited to share that Allspring proudly entered the ETF market with the launch of three actively managed fixed income ETFs. Each of the funds provides access to successful active strategies now available with all the potential advantages of an ETF. The Allspring Core Plus ETF offers access to one of our flagship fixed income strategies. APLU uses the same investment process, the same research, and the same seasoned Plus Fixed Income management team as our mutual fund, separate accounts, and SMA (separately managed account), which have combined assets of more than $10 billion. APLU offers greater choice for our clients, delivering our Core Plus strategy in a cost-effective, tax-efficient, transparent, and liquid investment vehicle. So, what makes APLU stand out? First of all, APLU is a foundational fixed income strategy that leverages all our best global ideas within specific parameters. The fund is managed by our Plus Fixed Income team of 19 investment professionals with 25 years of average industry experience. From our perspective, there are three key differentiators that make APLU stand out. The first is a six-month outlook. We do this because we think it's better to identify turning points in the market by looking ahead 2 to 3 quarters, rather than a much longer 3- to 5-year outlook. We invest with more conviction when we look around the corner and stay nimble, rather than trying to predict a whole market cycle. The second key differentiator is our use of multiple levers to drive the portfolio returns. The ETF employs a measured approach of investing by allocating at least 65% of the portfolio to the U.S. Aggregate or Core sectors and may invest up to 35% in the non-benchmark or Plus sectors. This allows us to cast a wider net as we look across global fixed income opportunities, meaning we don't have to overly emphasize any single lever or exposure. Our last differentiator is our unbiased approach. We don't want to be anchored or have biases built into the portfolio. Rather, we want to move to where we see value and not get stuck in any one position. The portfolio is intended to thrive in many different types of market environments, seeking diversified sources of alpha, and creating a steadier return stream for investors. So, if you're seeking more from your core bond exposure, then the Allspring Core Plus ETF may be right for you.
Transcript
Brandon Kanz: I'm excited to share that we recently launched one of Galliard's flagship strategies as an ETF: the Allspring Broad Market Core Bond ETF. We understand that investors want choice and we're happy to bring Galliard's rich history of active fixed income investing to market in a new way. Galliard is a subsidiary of Allspring with more than $80 billion in assets under management. For 29 years, we have focused exclusively on institutional fixed income investing. In our view, there are three main attributes of the firm that have helped drive our success. First is our firm's experience and expertise. We bring the lessons learned from almost three decades of managing fixed income portfolios for large institutions across numerous market cycles. Second is our foundation of a consistent investment approach. We've utilized this time-tested investment philosophy throughout our history. Third is our focus on building broadly diversified portfolios that deliver solid, risk-adjusted returns for our clients. A hallmark of our style is to think like a lender and invest in a diverse mix of high-quality securities, focusing on both income and downside protection. Simply put, AFIX combines all that Galliard has to offer: our resources, our research, our investment philosophy, and our management team with the cost and tax efficiencies, daily transparency, and intraday liquidity of an ETF. There are three combinations of the strategy that we believe make AFIX stand out. First, we use fundamental research and relative value analysis as cornerstones of our investment decision making. We emphasize high-quality securities across various fixed income sectors, including corporates, mortgage-backed securities, and asset-backed securities. And finally, we utilize a disciplined value investing process with broad diversification and an emphasis on risk control. So, if you are seeking institutional-quality core bond exposure in an ETF, then the Allspring Broad Market Core Bond ETF may be right for you.
Transcript
Noah Wise: At Allspring, we continually look for ways to provide our clients with greater choice. The offering of three long standing and successful active bond strategies, now available as ETFs, is a great example of this effort. In essence, the Allspring Income Plus ETF uses the same resources and the same research from the same seasoned Plus Fixed Income management team that exists in our mutual fund, which has been around for more than a decade. AINP is a new offering for investors to access our Income Plus strategy but delivering it in a vehicle known for its unique combination of benefits including cost and tax efficiencies, daily transparency, and intraday liquidity. So, what makes AINP stand out? First of all, the strategy targets attractive income and risk-adjusted returns by being truly global and diversified, dynamically allocating capital throughout the global fixed income universe. The fund is managed by our Plus Fixed Income team of 19 investment professionals with 25 years of average industry experience to effectively manage active multi-sector fixed income strategies. Beyond that, there are three key differentiators of AINP to consider. The first is a six-month outlook. We do this because we think it's better to identify turning points in the market by looking ahead a couple of quarters, rather than 3 to 5 years. We can invest with more conviction when we look around the corner and stay nimble, rather than trying to predict a whole market cycle. The second key differentiator is our use of multiple levers to drive portfolio returns. AINP uses tactical positioning along the curve with a flexible target duration between 0 and 6 years. It has broad flexibility to invest across global markets without required sector minimums. Our focus on using multiple levers means we don't need to overly emphasize any single lever or keep any static exposures. Our last differentiator is the use of an unbiased approach. We don't want to be anchored or have biases built in the portfolio. Rather, we want to move to where we see value in the market and not get stuck in one particular position. If you're seeking a globally diversified bond strategy with enhanced income potential, AINP may be right for you.
Our ETFs offer access to Allspring’s active capabilities combined with the added advantages of an ETF.
Featured insights
Insight
Bonds Be Nimble, Bonds Be QuickTwo of Allspring’s fixed income teams provide examples of how they have exploited pricing inefficiencies through thorough credit research and careful portfolio management.
Janet Rilling, head of Allspring’s Plus Fixed Income Team, was named by Morningstar again in 2023 as one of the top female portfolio managers in the U.S.
Joseph Dore, Allspring’s head of International Consultant Relations, goes around the globe with senior portfolio managers Sarah Harrison and Noah Wise from the Plus Fixed Income team, talking about why now is an exciting time to be a global multi-sector fixed income investor.
Many bond investors have been awaiting the perfect “Goldilocks” moment to take advantage of yields before they fall. Based on data covering the past 30 years, we believe currently attractive yields are worth considering now.
It is possible that an active trading market for ETF shares will not develop, which may hurt your ability to buy or sell shares, particularly in times of market stress. Shares may trade at a premium or discount to their net asset value in the secondary market. These variations may be greater when markets are volatile or subject to unusual conditions. There can be no assurance that active trading markets for the shares will develop or be maintained by market makers or authorized participants. Shares of the ETFs are not redeemable with the ETF other than in creation unit aggregations. Instead, investors must buy or sell the ETF shares in the secondary market at market price (not net asset value) through a broker-dealer. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and may receive less than net asset value when selling. Investing involves risk, including the possible loss of principal. Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the fund and its share price can be sudden and unpredictable. High yield securities and junk bonds have a greater risk of default and tend to be more volatile than higher-rated securities with similar maturities. Mortgage- and asset-backed securities may decline in value and become less liquid when defaults on the underlying mortgages or asset occur and may become volatile in periods of rising interest rates. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. Consult the fund’s prospectus for additional information on these and other risks.