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Activate Your Equity Income

Global Equity Enhanced Income Fund
Delivering an equity income portfolio can often result in a tug-of-war between income, capital growth and a balanced portfolio. The Allspring Global Equity Enhanced Income (GEEI) Fund has been designed to overcome this challenge.

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What

The power of three

Sophie Scott, head of International Portfolio Specialists, breaks down the three strategic pillars behind the fund and how they work together to deliver a powerful equity income solution.

Transcript

Sophie Scott: Just as working individuals rely on a regular income, those investing in income-generating strategies deserve an income they can count on. By leveraging dividends from equities and premiums from selling options, our approach seeks to provide a 6% per annum distribution yield paid in equal monthly installments. While the capital value of the equity will vary by having a smooth and targeted yield, this will improve the reliability of the income we deliver to investors, giving investors one less thing to worry about.

Income investing and capital growth doesn't always go hand in hand. While income stocks can provide a reliable and steady income, their relatively stable capital growth can sometimes result in potentially muted total returns. While most equity income portfolios require a dividend from every stock, we're able to invest up to 10% of the portfolio in non-dividend-paying securities, allowing us the potential to identify attractive growth stock opportunities. Combining this with targeting a beta of one to the broad global equity markets, we believe it's possible for investors to achieve income and growth in one portfolio.

Certain sectors and regions can often pay a higher dividend—think utilities versus technology or the UK versus the US. Left unchecked and focusing solely on generating a high yield can potentially result in an unbalanced portfolio subject to style risk, concentration risk, and potentially missing out on growth stock opportunities. Now, our approach is intentionally designed to overcome these risks. We tightly manage our sector and region exposures and explicitly target a balanced factor profile. We believe actively balancing each of these dimensions in our approach enables us to deliver income and capital growth in a well-balanced portfolio.

Targeting high, consistent income plus access to the growth potential of global equities

Enhanced income

Targets a high, consistent yield—6% p.a. (paid monthly)*

Growth potential

Designed to capture the long-term growth potential of global equities

Balanced exposures

Helps mitigate style swings with a global portfolio diversified across factors, regions and sectors

*As of 30 June 2025. A target is indicative only, is not guaranteed and does not take into account fees or charges that will reduce returns.

Why

Take it or leave it: receive regular income or reinvest for long-term growth

The image is a graph titled 'Generating Income Across the Investor Life Cycle.' It plots net worth against age, divided into two phases: Accumulation and Decumulation. In the Accumulation phase, the strategy is 'Leave It'—income is reinvested to compound wealth. In the Decumulation phase, beginning at retirement, the strategy shifts to 'Take It'—income is used to fund retirement living while still aiming to grow wealth. The graph shows net worth rising steadily during Accumulation and slightly declining after retirement.

To learn more, download the paper here.

Why global equities for income and capital growth?

01.

Global opportunity set

Avoid concentration risk with a diversified portfolio

02.

Long-term capital growth

Income investors also need to grow their assets

03.

Robust real returns

Help overcome the impact of inflation

Annualised real returns

High dividend equities deliver robust capital growth in excess of inflation.

7.9% High dividend equities
6.7% No dividend equities
2.9% 10-year Treasuries
0.6% Cash

Sources: Allspring, Bloomberg Finance L.P. and Ken French datase. Based on US monthly data from January 1973 through December 2024. The Ken French database classifies high dividend equities as the top 30% of stocks in terms of dividend yield. Past performance is not a reliable indicator of future results.

How

A diversified approach to income delivery

The image compares equities and options strategies. On the left, under a yellow header labeled 'Equities,' it lists approximately 60–80 equity holdings with two benefits: reliable income from dividends and alpha from active stock selection to support distributions. On the right, under a blue header labeled 'Options,' it lists approximately 15–30 option positions with two benefits: enhanced income from selling call options and use of index options to preserve stock-specific alpha. A gray circle with a plus sign is centered between the two sections, suggesting a combined strategy.

1The fund intends to make consistent monthly income distributions. Capital gains from both equity and option portfolios can be utilized in addition to equity dividends to achieve the target distribution. 2Only partial potential upside is given up in order to preserve long term capital growth.

A monthly distributing fund

For more insight into the fund, including recent distributions and performance, read our product sheet.

View the product sheet

Learn more about the fund:

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

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Key risks

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

Geographic concentration risk: investments concentrated in specific geographic regions and markets may be subject to greater volatility due to economic downturns and other factors affecting the specific geographic regions.

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.

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.

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.

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.

Equity securities risk: these securities fluctuate in value and price in response to factors impacting the issuer of the security as well as general market, economic and political conditions.

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