Investing

Explore the Climate Transition Global Equity Opportunity

A diversified global equity portfolio positioned for the transition to a decarbonised economy.

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What

Designed to deliver both financial and climate outcomes

Part of Allspring’s US$4.5 billion climate transition suite, Allspring (Lux) Worldwide Fund—Climate Transition Global Equity Fund is a diversified global equity portfolio with a dual objective of targeting long-term capital appreciationexcess returns versus the MSCI ACWIand reaching net zero by 2050.

We believe that identifying climate transition winners does not mean solely investing in the low-carbon companies of today, but rather in companies that should win in a low-carbon world of tomorrow.

We use forward-looking transition pathway assessments to identify these companies, helping reduce risk and capture opportunities presented by the transition to a decarbonised economy.

Our approach blends quantitative tools with fundamental insights designed to deliver both financial and climate outcomes in a core global equity portfolio.

Why

Our Climate Transition Global Equity investment approach seeks to:

01. Drive returns through an innovative bottom-up stock selection approach combining the best of quantitative models with fundamental insights

02. Mitigate risks and capture opportunities by investing in climate transition winners

03. Deliver consistent returns through an explicit focus on avoiding unintended risks

04. Provide a well-diversified core global equity portfolio designed to avoid style biases

Climate investing: A track record of delivering returns

This bar chart compares performance of Allspring Climate Transition Global Equity Fund and the MSCI ACWI as at 31 March 2024, over different three different time periods: Year-to-date performance for the fund as 12.73% versus 8.20% for the index; 1 year performance for the fund as 31.89% versus 23.22% for the index; and annualised returns since the fund inception on 20 July 2021 of 9.33% versus 5.29% for the index.

This table compares calendar year returns for the Allspring Climate Transition Global Equity Fund and the MSCI ACWI. The first column shows year-to-date performance as at 31 March 2024 for the fund as 12.73% versus 8.20% for the index; in 2023 the fund returned 26.97% versus 22.20% for the index; in 2022 -17.14% for the fund versus -18.36% for the index; in 2021 (since launch on 20 July 2021) the fund returned 7.23% versus 6.47% for the index.

This table compares calendar year returns for the Allspring Climate Transition Global Equity Fund and the MSCI ACWI. The first column shows year-to-date performance as at 31 March 2024 for the fund as 12.73% versus 8.20% for the index; in 2023 the fund returned 26.97% versus 22.20% for the index; in 2022 -17.14% for the fund versus -18.36% for the index; in 2021 (since launch on 20 July 2021) the fund returned 7.23% versus 6.47% for the index.

Source: Allspring, Bloomberg Finance L.P., as of 31 March 2024. Data shown is for Allspring (Lux) Worldwide Fund—Climate Transition Global Equity Fund Class I USD. Prior to 21 May 2024, the fund was named Allspring (Lux) Worldwide Fund—2 Degree Global Equity Fund. The Fund uses the MSCI ACWI as a reference for selecting investments and for performance comparison. The investments of the fund may deviate significantly from the components of and their respective weightings in the benchmark. The benchmark index is not consistent with the environmental or social characteristics promoted by the sub-fund. ¹For the period 20 July 2021 to 31 December 2021. Performance calculations are net of all applicable fees and are calculated on a NAV-to-NAV basis (with income reinvested). Performance shown is for class and currency indicated and returns may increase/decrease as a result of currency fluctuations.

Peer group percentile ranking*

6th

Percentile

Year to date

1st

Percentile

Over one year

3rd

Percentile

Since inception on 20 July 2021

*Source: Morningstar. Data shown is for Allspring (Lux) Worldwide Fund—Climate Transition Global Equity Fund Class I USD (formerly Allspring (Lux) Worldwide Fund—2 Degree Global Equity Fund) as at 31 March 2024. The Morningstar absolute ranking is based on the fund’s total return rank relative to all funds that have the same category for the same time period. Morningstar rankings do not include the effect of sales charges. Past performance is not a reliable indicator of future results.

How
Our approach to climate equity investing

Header: Investment process. 01. Identify attractive stocks: Using a quantitative model powered by contextualisation that allows for a more robust assessment. 02. Select climate transition winners: Applying forward-looking transition pathway assessments that look beyond the status quo. 03. Build the portfolio: Leveraging macro mapping risk tools and deep fundamental insights to improve return consistency.

Who

Allspring Systematic Edge

Founded on research

Research is at the core of our investment insights and holistically integrated across the platform.

Specialised insight

We deliver specialised insight into portfolio construction techniques and diversified philosophies to help provide targeted outcomes.

Continuous innovation

Striving to deliver the best outcomes to clients fosters a culture of continuous evolution.

Outcome-based capabilities centered on investor needs

Alpha

We aim to deliver alpha across all market environments through a variety of different benchmark-relative strategies.

Outcomes

We pursue compelling performance through exposure to a particular investment theme or outcome.

Alternatives

We seek diversification or protection in the form of liquid alternatives through an array of strategies.

The Systematic Edge platform in numbers
US$30.7bn Assets under advisement
69 Investment professionals globally

Learn more about the fund

Visit the fund page for performance, deeper investment details, and fund documents.

Also in our climate transition suite—fixed income funds. Learn more:

Cloud-topped mountain peaks surround an aqua blue lake.
Climate Transition Fixed Income Solutions
A fundamental approach driven by deep research and leveraging our proprietary ESGiQ & Climate Transition Framework.
Contact Us

We look forward to helping you with your investment needs

 

Key risks

Currency risk: Currency exchange rates may fluctuate significantly over short periods of time and can be affected unpredictably by intervention (or the failure to intervene) by relevant governments or central banks, or by currency controls or political developments.

ESG risk: Applying an ESG screen for security selection may result in lost opportunity in a security or industry resulting in possible underperformance relative to peers. ESG screens are dependent on third-party data and errors in the data may result in the incorrect inclusion or exclusion of a security.

Smaller-company securities risk: Securities of companies with smaller market capitalisations tend to be more volatile and less liquid than securities of larger companies.

Global investment risk: Securities of certain jurisdictions may experience more rapid and extreme changes in value and may be affected by uncertainties such as international political developments, currency fluctuations and other developments in the laws and regulations of countries in which an investment may be made.

Emerging market risk: Emerging markets may be more sensitive than more mature markets to a variety of economic factors and may be less liquid than markets in the developed world.

Leverage risk: The use of certain types of financial derivative instruments may create leverage which may increase share price volatility.

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