Follow the Insight
Riding the Curve
Riding the curve allows fixed income investors to generate diversified returns across the yield curve and up and down the rating spectrum. Over time, higher income has typically resulted in better risk-adjusted returns for fixed income investors.
Our record
Our track record is evidence of our progress
97%
Of representative fixed income composite assets are outperforming (gross)
Relative to their corresponding representative benchmarks over the 5-year period**
90%
Of representative fixed income composite assets are outperforming (net)
Relative to their corresponding representative benchmarks over the 5-year period**
76%
Of our U.S. fixed income mutual funds
Have at least one share class with a 4- or 5-star Overall Morningstar Rating***
Data as of 30-Sep-24. Past performance is not indicative of future results.
**Source: Allspring. Figures represent the aggregate percentage of accounts in the Allspring Taxable and Municipal Fixed Income composites that outperformed their corresponding benchmarks over the 5-year period ending on September 30, 2024. The calculation is based on an aggregate of 65 Institutional and 3 Managed Account Composites with a 5-year track record grouped by business segment (“Allspring Composites”) shown gross/net of fees. Net performance of the Allspring Composites is calculated by deducting the highest model fee applicable to the product, which may be lower than the fees available to retail clients. Certain of the outperformance shown relates to institutional strategies that are not available to retail clients. Calculations are based on monthly performance data for each category. Money market composites, bond ladder composites and composites managed by Galliard Capital Management are excluded from the calculation. Please note that percentage of composite asset figures provided only includes discretionary assets and have been adjusted to eliminate duplication of reporting across multiple composites. Performance will vary if different time periods are used. Data shown is intended to reflect the percentage of accounts in the Allspring Composites that outperformed compared to their respective benchmarks and does not reflect actual returns achieved by any particular account. Not all strategies or products represented by the Allspring Composites are available or appropriate for all investors. Percentage outperformance does not suggest that outperformance was significant, and in some cases, may be de minimis. Furthermore, outperformance does not suggest that performance was positive, and investors may have lost money.
***Source: Morningstar. Weighted average of the 3-, 5-,10- year (if applicable) ratings, is based on risk-adjusted returns. Figures as of 30-Sep-24 (excludes money market, variable trust, closed-end, and collective investment trust funds). Percentage based on rankings of qualified funds that have a Morningstar ranking.
The end of an era
U.S. fixed income investors have reached the end of “higher for longer.” The Fed cut rates by 50 basis points (bps; 100 bps equals 1.00%) in September. Markets moved to price in their expectations for the path of rates, leading the yield on the 6-month Treasury bill below 5%. The yield fell 46 bps that month.
U.S. bond investors outperformed the money market average
In October 2022, bond yields rose above 5% for the first time in 14 years. Since then, the lure of low volatility and attractive yields offered by U.S. Treasury bills and money market funds has resulted in opportunity costs for fixed income investors.
Participate in intermediate-term core plus returns with Core Plus Bond Fund
Allspring Core Plus portfolio management team
Consistent, experienced team
- 25 years average industry experience
- 21 years average firm tenure
- $30 billion team assets under management
- $10 billion in team assets managing multisector bond strategies
Sector specialist model
Dedicated sector specialist portfolio managers engage in primary research and partner with traders and credit research analysts to uncover opportunities and unlock relative value
Flat organizational structure
- The same team members define and implement portfolio strategy
- Portfolio managers are engaged in the markets and close to the portfolio
Source: Allspring, figures as of 30-Sep-24 unless otherwise noted
Follow our insights
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.
George Bory discusses the intersection of politics and finance, the impact of previous U.S. election results on U.S. and global bonds, and the importance of economic fundamentals in post-election fixed income outcomes.
Summer Edition
Macro Matters provides a concise, comprehensive look at macroeconomic themes that matter to clients.
As we reach the middle of 2024, where do our experts think you should focus portfolios given shifting rate expectations, sticky inflation, and global uncertainties? Follow the insight to find out more.
Allspring's investment experts discuss what they believe is ahead for the rest of 2024 and beyond.
Podcast
Still T-bill and Chill?Jeff Weaver, CFA, head of Allspring’s Global Liquidity Solutions team, and George Bory, CFA, chief investment strategist for Allspring Fixed Income, discuss recent Fed (U.S. Federal Reserve) activity, new money fund liquidity requirements, and allocating investments at the front end of the curve.
Amidst a backdrop of diverging growth and inflation trends driving central bank policy, three strategies for global investors remain as relevant today as they were in the beginning of the year.
George Bory, Chief Investment Strategist for Fixed Income, interviews Noah Wise, Senior Portfolio Manager for the Plus Fixed Income team. The pair discuss how the Fed may react to stickier inflation, a potential market impact of the impending U.S. election, and benefits of diversifying your fixed income portfolio.
The municipal bond market is highly fragmented and inefficient, often making it difficult for individual investors to effectively transact. Learn how institutions can offer a better experience for investors who leverage their capabilities.
Recent performance in the fixed income markets has brought tax-loss harvesting into sharper focus. Read why harvesting losses now may help investors mitigate tax erosion and enhance overall wealth.
The Morningstar Rating™ for funds, or star rating, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar risk-adjusted return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% 3-year rating for 36-59 months of total returns, 60% 5-year rating/40% 3-year rating for 60-119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all three rating periods. The Morningstar Rating is for this class only; other classes may have different performance characteristics. Past performance is no guarantee of future results.
Some of Morningstar’s proprietary calculations, including the Morningstar Rating™, are not customarily calculated based on adjusted historical returns. However, for new share classes/channels, Morningstar may calculate an extended-performance Morningstar Rating. The extended performance is calculated by adjusting the historical total returns of the oldest share class of a fund to reflect the fee structure of the younger share class/channel, attaching this data to the younger share class’s performance record, and then compounding the adjusted plus actual monthly returns into the extended-performance Morningstar risk-adjusted return for the 3-, 5-, and 10-year time periods. The Morningstar risk-adjusted returns are used to determine the extended-performance Morningstar Rating. The extended-performance Morningstar Rating for this fund does not affect the retail fund data published by Morningstar, as the bell curve distribution on which the ratings are based includes only funds with actual returns. The Overall Morningstar Rating for multi-share funds is based on actual performance only or extended performance only. Once the share class turns three years old, the Overall Morningstar Rating will be based on actual ratings only. The Overall Morningstar Rating for multi-share variable annuities is based on a weighted average of any ratings that are available.
While the inclusion of pre-inception data in the form of extended performance can provide valuable insight into the probable long-term behavior of newer share classes of a fund, investors should be aware that an adjusted historical return can provide only an approximation of that behavior. For example, the fee structures of a retail share class will vary from that of an institutional share class, as retail shares tend to have higher operating expenses and sales charges. These adjusted historical returns are not actual returns. The underlying investments in the share classes used to calculate the pre-performance string likely will vary from the underlying investments held in the fund after inception. Calculation methodologies used by Morningstar may differ from those applied by other entities, including the fund itself.
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